Agenda, regular meeting — Indian Wells City Council, April 16, 2026 (part 2 of 6)

Council Meeting Agenda- April 16, 2026
City of Indian Wells
Fiscal Policies and Procedures Manual
• These business types are included on solicitation lists • These business types are solicited whenever they are deemed eligible as potential sources.
• Dividing procurement transactions into separate procurements to permit maximum participation by these business types.
• Establishing delivery schedules (for example the percentage of an order to be delivered by a given date of each month) that encourage participation by these business types.
• Utilitzing organizations such as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce • Requiring a contractor under a Federal award to apply this section to subcontracts.

Domestic Preferences for Procurements.

As appropriate and to the extent consistent with law, the City should, to the greatest extent practicable under a Federal award, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this Section must be included in all sub -awards, including all contracts and purchase orders for work or products under this award.

For purposes of this Section:
• "Produced in the United States" means, for iron and steel products, all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States.
• "Manufactured products" means items and construction materials composed in whole or part of non-ferrous metals such as aluminum; plastics and polymer -based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, optical fiber; and lumber.

Procurement of Recovered Materials.

For procurements covered under these procedures, the City and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. In accordance with these requirements, the City shall only procure items designated in the guidelines of the Environmental Protection Agency 38

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Council Meeting Agenda- April 16, 2026
City of Indian Wells
Fiscal Policies and Procedures Manual
(EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. This requirement applies to purchases of items when the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeds $10,000.

The City and its contractors should, to the greatest extent practicable and consistent with law, purchase, acquire, or use products and services that can be reused, refurbished, or recycled; contain recycled content, are biobased, or are energy and water efficient; and are sustainable. This may include purchasing compostable items and other products and services that reduce the use of single -use plastic products. See Executive Order 14057, section 101, Policy.

Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment.

The City shall not allow contractors to contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system or as critical technology as part of any system funded under this contract. As described in Public Law 115-232, section 889, covered telecommunications equipment is produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities).

See 2 CFR §200.216.

Costs
The following Section outlines the allowable costs for grants, contracts, and sub -awards.

The policy is justified by the requirement of the Code of Federal Regulations (CFR) Title 2 Grants and Agreements, Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, commonly known as Uniform Grant Guidance (UGG). It provides the essential criteria to determine direct allowable and indirect allocable costs on federally funded programs regardless of the funding agency sponsoring them. The City shall adhere to the UGG Administrative Requirements as updated.

Payment- Generally, the City receives payments of federal award funds on a reimbursement basis. In some cases, the City may receive an advance of federal grant funds.
• Reimbursements
39

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Council Meeting Agenda- April 16, 2026
City of Indian Wells
Fiscal Policies and Procedures Manual
o The City will request reimbursement for actual expenditures incurred under federal grants at least quarterly or more often as deemed appropriate. o Reimbursement requests will be submitted with appropriate documentation and signed by the City's designated representative. All reimbursements are based on actual disbursements, not on obligations.
o The City will maintain supporting documentation of federal expenditures (invoices, payroll records) and make such documentation available to awarding agencies upon request.
• Advances
o When the City receives advance payments of federal grant funds, it must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass -through entity and the disbursement of those funds on allowable costs of the applicable federal program. (2 CFR 200.305) o To the extent available, the City will disburse funds from program income (including repayments to a revolving fund), rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting additional cash payments. (2 CFR 200.305)
o The City will maintain advance payments of federal awards in insured, interest -bearing accounts whenever not precluded by the Federal award grant guidance or when exceptions per 2 CFR 200.305(8) do not apply. The City may retain annual interest amounts of up to $500 for administrative expenses. Any additional interest earned on Federal advance payments deposited in interest -bearing accounts must be remitted annually to the Department of Health and Human Services Payment Management System (PMS) through an electronic medium using an Automated Clearing House (ACH) network or a Fedwire Funds Service payment. [2 CFR 200.305(9)] Allowable Costs - 2 CFR, part 200, subpart E, Cost Principles identifies direct and indirect costs that can be charged to federal awards; it also identifies those costs that cannot be charged to grant agreements and are considered unallowable expenses. The City adopts the five tests provided by this regulation to determine the allowability of costs applied to federally funded services:
• Reasonability: For a cost to be considered reasonable, it must be necessary for the fulfillment of the grant objective, acquired by means consistent with federal and state laws and regulations and consistent with City policies and practices. 40

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Council Meeting Agenda- April 16, 2026
City of Indian Wells
Fiscal Policies and Procedures Manual
• Allocability: A cost is allocable to a program if the goods/services involved are charged in accordance with the relative benefits received by that program. To be considered allocable, a cost must be incurred solely to advance the work under the sponsored program or benefit both the sponsored program and other programs of the City in proportions that can be approximated through the use of the City cost allocation methods not to exceed the limit imposed by the grant agreements.
• Consistency: Similar costs are treated as direct or Facilities and Administration (F & A) costs when incurred in like circumstances. Costs generally charged as a direct cost to a sponsored program should not be included as F&A costs on other projects when incurred for the same purposes. Where the City treats a particular type of cost as a direct cost of sponsored programs, all costs incurred for the same purpose in like circumstances shall be treated as direct costs of all other activities of the City.
• Limitation: Cost must conform to any limitations or exclusions in the sponsored agreement.
• Documentation: Cost must be adequately documented.

Expenditures must be aligned with approved budgeted items. Any deviation from the approved award budget will require prior approval from the awarding Agency. Allowability of costs will be determined prior to obligating and spending federal funds on a proposed good or service. State and City rules or policies must also be considered. Whichever allowability requirements are stricter will govern whether a cost is allowable.

Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards per 2 CFR 200.403:
• Be necessary and reasonable for the Federal award's performance and be allocable under these principles.
• Conform to any limitations or exclusions set forth in these principles or the Federal award as to types or amount of cost items.
• Be consistent with policies and procedures that apply uniformly to the City's federally financed and other activities.
• Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct cost if any other cost incurred for the same purpose in the circumstances has been allocated to the Federal award as an indirect cost. 41

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Council Meeting Agenda- April 16, 2026
City of Indian Wells
Fiscal Policies and Procedures Manual
• Not be included as a cost or used to meet cost sharing or matching requirements of any other federally financed program in the current or a prior period. Also, reference § 200.306, Cost sharing or matching, paragraph (b). • Be adequately documented. Also, reference §§ 200.300, Statutory and national policy requirements, through 200.309, period of performance, of 200 CFR Part 200.

Direct Costs - Direct costs can be explicitly identified with a particular award. Costs that can be directly assigned to an activity with high accuracy will be directly imputed to that activity. Identification with the grant rather than the nature of the goods and services involved is the determining factor in distinguishing direct from indirect F&A costs of grant agreements. Examples of some of the costs charged directly include:
• Personnel salaries/fringe benefits
• Capital expenditures
• Software
• Consultants
• Equipment
• Materials and supplies
Facilities and Administrative Costs (Indirect/Overhead Costs) - Costs incurred for common or joint objectives that cannot be explicitly identified with a sponsored program are treated as indirect costs. Examples of indirect costs include:
• Utilities
• Maintenance and operation
• Building and equipment expenses
• Administrative costs
Most grant agreements include a percentage of the direct cost to cover these charges, known as the Facilities and Administrative Cost Rate (F&A), which refer to individual grant agreement guidelines for indirect cost rates. Federal regulations limit instances where administrative costs can be charged directly to grants and contracts. An exception may 42

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Council Meeting Agenda- April 16, 2026
City of Indian Wells
Fiscal Policies and Procedures Manual
be made if there is extensive use of such expenses, the expenses have been appropriately justified/documented in the grant/contract proposal, and they have been approved as a direct cost by the appropriate federal Agency.

Examples below list the types of expenses that are generally not allowable as a direct cost:
• Administrative and clerical salaries and wages
• Printing and copying costs
• Office supplies
• Postage and mail
• Telephone and internet

15. Cash Receipts
Checks and cash received should be given to the Finance Department with a specific description and the proper account coding on the day received. City employees should not hold cash and checks overnight. The cash register maintains a $100 change drawer.

The register is closed out daily and stored in the City's vault.

City funds shall be deposited upon the aggregate receipt of $50,000 in cash and checks.

A deposit is required on the last day of each month, regardless of the funds collected.

The deposit and reconciliation of funds shall be conducted under the internal control procedures established by the Finance Department. The Finance Department will prepare and deliver the deposit to the bank.

16. Billing for Services
The Finance Department shall invoice individuals and companies for services rendered or damage to City property. In cases where a permit fee or deposit is required, the payment shall be made before the issuance of said permit or performance of other City services.

If the payment on an invoice is not received after 30 days, a delinquent notice shall be mailed requesting immediate payment. Those invoices remaining unpaid after 90 days may be referred to collections. When payment is received, a copy of the receipt shall be attached to the invoice. The receipt and applicable backup are filed in the revenue file for the appropriate vendor.
43

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Council Meeting Agenda- April 16, 2026
City of Indian Wells
Fiscal Policies and Procedures Manual

17. Refundable Deposits
Deposits or disbursements of refundable deposits shall be directed by the appropriate Department requiring the deposit. All refundable deposits shall be placed in the Special Deposits Fund upon receipt. A "Refundable Deposit" form must be completed and submitted to the Finance Department staff responsible for receipting the deposit. The form will be validated upon receipt of monies. The Finance Department shall reconcile the Special Deposits Fund every quarter. The Finance Department shall notify the appropriate Department of the status and aging of refundable deposits held by the City.

18. Claims and Demands Upon the City
Claims against the City seeking money or damages are governed by the Government Claims Act (Government Code sections 810 to 998.3) and Chapter 3.20 of the City's Municipal Code. For such claims received by the City under $25,000, but not subject to coverage by the California Joint Powers Insurance Authority, the City Manager is authorized to handle the claim, including, among other things, reviewing the claim for sufficiency and rejecting, accepting, or settling the claim. 44

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Council Meeting Agenda- April 16, 2026

INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: Public Works Department
Prepared by: Dina Purvis, Public Works Director
Subject: Fiscal Year 2026-27 Road Maintenance and Rehabilitation Account Funding Allocation

RECOMMENDED
ACTION:

Council ADOPTS Resolution approving the Fiscal Year 2026-27 Road Maintenance and Rehabilitation Account Funding Allocation; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060 & 15061.

DISCUSSION:

Background:

In April 2017, California Governor Jerry Brown signed Senate Bill 1 (SB 1), known also as the Road Repair and Accountability Act of 2017, creating a new funding source to address the needs of California's transportation system. SB 1 created an account, the Road Maintenance and Rehabilitation Account (RMRA), where increases in the newly implemented per gallon fuel excise taxes and existing portions of diesel fuel sales taxes and vehicle registration fees would be deposited. Collectively, these RMRA funds are to be continuously appropriated on a monthly basis and apportioned by formula to cities and counties for road maintenance, rehabilitation, and safety needs. The first apportionment began in mid -January 2018.

Funding:

According to a report published by California City Finance, the City of Indian Wells (City) is estimated to receive an approximate total of $136,421 in Fiscal Year 2026/2027. (Attachment 2).

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Council Meeting Agenda- April 16, 2026
RMRA Program Requirements and Use of Funds:

Similar to the Highway Users Tax Account (HUTA) use rules, RMRA funds must be used for projects that include the following:
• Road maintenance and rehabilitation;
• Safety projects;
• Railroad grade separations;
• Complete streets components (including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects); and
• Traffic control devices
RMRA funds may also be utilized by cities and counties towards match requirements for state or federal funds for eligible projects.

Furthermore, SB 1 contains non -obligatory language that encourages the use of RMRA funds to incorporate the following additional project elements (to the extent possible and cost-effective):
• Use of advanced material recycling techniques that reduce greenhouse gas emissions and reduce maintenance costs of local streets and roads; • Incorporate automotive technologies and infrastructure -to -vehicle communications for autonomous vehicle systems;
• Promote resiliency to impacts of climate change, fires, floods, sea level rise; and • Incorporate complete street elements that improve quality and safety for all users of transportation facilities.

Jurisdictions with an average Pavement Condition Index (PCI) of 80 or higher may allocate RMRA funds toward transportation priorities beyond standard maintenance. In 2021, Bucknam Infrastructure Group, Inc. assessed the citywide PCI at 75.3. Following the 2022 Highway 111 and Local Streets paving projects, the PCI improved to 78. By October 2023, after completion of the second phase of Highway 111 rehabilitation and additional local street paving, the score rose to 85.1. A subsequent August 2025 assessment following the most recent Local Streets Paving Project established a current PCI of 89, which exceeds the required threshold.

Maintenance of Effort:

The Road Repair and Accountability Act contains a local agency maintenance of effort (MOE) requirement that applies to funds allocated through the RMRA. The MOE requirement ensures that the new RMRA funds do not replace existing levels of city general revenue spending on streets and roads and affirms the City is committed to maintaining the same level of services already being provided after receiving funds.

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Council Meeting Agenda- April 16, 2O26
To receive RMRA funds for Fiscal Year (FY) 2026/2027, the City must maintain general fund spending for street, road, and highway purposes at no less than average of FY 2009/2010, FY 2010/2011, and FY 2011/2012. If the City fails to meet this requirement in a given year, it may make it up with additional expenditures the following year.

According to the California City Finance's unofficial estimates, the City's MOE is $1,836,481 (Attachment 3).

Fiscal Year 2026/2027 Annual Project List:

Cities and counties must submit a project list pursuant to an adopted budget to the California Transportation Commission (CTC) prior to receiving RMRA funds in a fiscal year.

The project list must include a description, location, proposed schedule of completion, and estimated useful life of the improvement for each proposed project. According to the guidelines adopted by the CTC in August 2018, "after submittal of the project list to the Commission, in the event a city or county elects to make changes to the project list pursuant to the statutory provision noted above, formal notification of the Commission is not required."
The RMRA requires that a city or county submit to the CTC an annual report of project completion to receive RMRA funds. The report must include descriptions of all projects for which RMRA funds were expended including (as with the submittal of the preceding project listing) a description, location, proposed schedule of completion, and estimated useful life of the improvement for each proposed project.

This fiscal year staff is recommending the following project list from the City's Capital Improvement Program (CIP) for RMRA funding; the Local Roads and Streets Program, as presented in the attached resolution (Attachment No. 1).

Local Roads and Streets Program
Project Description: This project will support the City's Pavement Management Program (PMP). The City's PMP identifies the street for scheduled slurry seal as a preventative maintenance to extend its useful life. The process includes crack cleaning and sealing, slurry seal application and restriping. This project will utilize rubberized polymer modified slurry for this maintenance work.

Project Location: Fairway (from Eldorado to Indian Wells Lane), Camino Del Rey (from Shoshone to end of cul-de-sac), Reina Ct., Tecopa Circle, Cochise Way, Miami Cir., Via Serena, Calle Tranquilidad & portion of Indian Wells Lane.

Project Cost Allocation: $225,289

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Council Meeting Agenda- April 16, 2026
Proposed Schedule of Completion:The proposed project will start in FY 25/26 and complete construction by December 2026.

Estimated Useful Life: The estimated life span is estimated to be equal to or greater than 10 years without major repair work required.

The proposed resolution is expected to be acceptable as confirmation that the project list is in fact included in our CIP budget pursuant to a decision made at a regular public meeting. The projects identified in this proposed list are in the proposed FY 26/27 CIP.

FISCAL IMPACT:

In Fiscal Year 2026-27, the City is anticipating receiving an estimated $136,421 in RMRA funds which will support the funding of the Capital Improvement Plan's annual asphalt program. The project identified is currently proposed projects in the FY 2026/27 CIP program.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that this resolution is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a "project" as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. Resolution

2. Projected Fiscal Year Revenues

3. Estimated Maintenance of Effort

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Council Meeting Agenda- April 16, 2026
ATTACHMENT # 1
RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIAN

WELLS, CALIFORNIA, ADOPTING A PROJECT FOR FISCAL YEAR
2026-2027 FUNDED BY SB 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi -modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; and
WHEREAS, the City, will receive an estimated $136,421 in RMRA funding in Fiscal Year 2026-2027 from SB 1; and
WHEREAS, this is the tenth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a public process to ensure public input into our community's transportation priorities/the project list; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high -priority and cost-effective projects that also meet the community's priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets and roads throughout the City this year and hundreds of similar projects into the future; and
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City's streets and roads are in a "good" condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a "excellent" condition; and

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City of Indian Wells
Resolution No. 2026 -

Page 2 ends

WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting -edge technology, materials and practices, will have significant positive co -benefits statewide.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIAN WELLS RESOLVES AS FOLLOWS:

1. The foregoing recitals are true and correct.

2. The project will be funded in -part or solely with fiscal year 2026-2027 Road Maintenance and Rehabilitation Account revenues:

Project Location: Fairway (from Eldorado to Indian Wells Lane), Camino Del Rey (from Shoshone to end of cul-de-sac), Reina Ct., Tacopa Circle, Cochise Way, Miami Cir., Via Serena & portion of Indian Wells Lane.

Project Cost Allocation: $225,289
Proposed Schedule of Completion: The proposed project will start in FY 25/26 and complete construction by December 2026.

Estimated Useful Life: The estimated life span is estimated to be equal to or greater than 8 years without major repair work required

3. The Capital Improvement Program budget for fiscal year 2026-27 includes RMRA funding to be appropriated for the aforementioned program.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIAN WELLS RESOLVES AS FOLLOWS:

SECTION 1. The City Council ADOPTS this Resolution approving the fiscal year 2026/2027 road maintenance and rehabilitation account funding allocation.

SECTION 2. This Resolution shall take effect upon adoption.

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City of Indian Wells
Resolution No. 2026 -

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PASSED, APPROVED, AND ADOPTED by the City Council of the City of Indian Wells, California, at a regular meeting held on this 16th day of April 2026.

DR. TOPER TAYLOR
MAYOR
CERTIFICATION FOR RESOLUTION NO. 2026-
I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California, DO HEREBY CERTIFY that the whole number of members of the City Council is five (5) and, that the above and foregoing Resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Indian Wells on the 16th day of April 2026 by the following vote:

AYES:

NOES:

ATTEST: APPROVED AS TO FORM:

ANGELICA AVILA

CITY CLERK

TODD LEISHMAN FOR

BEST BEST & KRIEGER

CITY ATTORNEY

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Local Streets and Roads - Projected Revenues
Based on State Dept of Finance statewide r
Estimated January 2026

PLACER COUNTY
AUBURN
COLFAX

LINCOLN
LOOMIS

ROCKLIN

ROSEVILLE
County of Placer
Total Cities & County: Placer

PLUMAS COUNTY

PO RTO LA
County of Plumas
2025-26
Hwy Users Tax
Account
Road Nhtnc
Rehab Acct
TOTAL
401,570 364,354
Council Meeting Agenda- April 16, 2026
2026-27
Hwy Users Tax
Account
Road Nhtnc
Rehab Acct
TOTAL
765,924 408,876
117,221 65,377
64,316 52,905
386,282 795,158
1,571,707 1,442,912 3,014,619
201,497 180,152
56,089 121,466
1,600,638
1,529,751 3,130,389
381,649 205,109
2,105,201 1,936,551 4,041,752
4,548,121 4,194,662 8,742,783
15,342,259
24,234,671
12,455,628
20,627,164
27,797,887
44,861,835
214,005 55,869
190,994 396,104
2,144,029 2,053,098 4,197,128
4,632,226 4,447,108 9,079,334
15,596,311 13,205,242 28,801,553
24,652,566 21,868,565 46,521,131
269,874 215,058
2,943,845 2,957,686 5,901,531
59,232 274,289
2,981,212 3,135,688 6,116,900
Total City & County: Plumas 3,157,850 3,013,555 6,171,405 3,196,270 3,194,920 6,391,190

RI VERSI DE COUNTY

BANNING

BEAUMONT
BLYTHE

CALI M ESA

CANYON LAKE

CATHEDRAL CITY

COACH ELLA
CORONA

DESERT HOT SPRINGS

EASTVALE
HEMET

INDIAN WELLS
INDIO

JURUPA VALLEY

LAKE ELSINORE

LA QUINTA

MENIFEE

MORENO VALLEY

M U RRI ETA
NORCO

PALM DESERT

PALM SPRINGS
PERRIS
January 2026
925,206 845,554 1,770,760
1,721,190 1,580,217 3,301,407
546,241 496,974 1,043,215
322,457 290,964 613,421 328,295 308,475 636,770
324,346 292,711 617,057 330,219 310,327 640,546
942,170 896,442 1,838,612
1,752,894 1,675,318 3,428,212
556,212 526,883 1,083,095
1,490,592 1,366,982 2,857,575 1,518,018 1,449,251 2,967,269 1,281,105 1,174,656 2,455,761
4,569,999 4,212,208
1,304,672 1,245,350 2,550,022
8,782,208 4,654,508
962,785 880,304 1,843,088
2,010,003 1,847,282 3,857,285
2,643,524 2,433,102 5,076,625
144,954 128,676 273,631
4,465,711 9,120,219
980,446 933,283 1,913,729
2,047,064 1,958,457 4,005,521
2,692,339 2,579,533 5,271,871
147,536 136,421 283,956
2,660,839 2,449,113 5,109,953 2,709,975 2,596,508 5,306,483 3,046,543 2,803,463 5,850,006
2,124,028 1,952,722 4,076,750
1,121,172 1,026,765 2,147,937
3,315,235 3,051,924 6,367,159
6,048,721 5,579,587 11,628,309
3,214,290 2,958,579 6,172,869
772,914 704,730 1,477,644
1,500,009 1,375,689 2,875,698
1,283,738 1,177,090
2,337,453 2,150,077 4,487,530 2,380,590 2,279,475 4,660,064 3,102,788 2,972,184 6,074,972
2,163,205 2,070,242 4,233,447
1,141,772 1,088,559 2,230,331
3,376,465 3,235,597 6,612,062
6,160,663 5,915,383 12,076,046
3,273,647 3,136,635 6,410,282
787,053 747,142 1,534,196
1,527,609 1,458,482 2,986,091
2,460,829 1,307,354
1,247,931 2,555,285
Ca(iforvtiaCityFivtavtce.covvt
ATTACHMENT #2

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Maintenance of Effort - General Fund for Streets & Roads c , �c �i ril 16, 2026 Road Maintenance and Rehabilitation Account •er Streets & Hw s Code Sec 2036 1 revised est: 08/ 07/ 201 7
Streets and Roads Annual Report - Reported General Fund for Street Purposes FY2009-10
FY2010-11 FY2011-12 Average Adjustment RMRA M.O.E.

PLACER COUNTY
AUBURN
COLFAX

LINCOLN
LOOMIS

ROCKLIN

ROSEVILLE

PLUMAS COUNTY

PO RTO LA

RIVERSIDE COUNTY

BANNING

BEAUMONT

B LYTH E

CALIMESA

CANYON LAKE

CATHEDRAL CITY

COACHELLA
CORONA

DESERT HOT SPRINGS
EASTVALE (inc. 1 Oct 2010)
HEMET

INDIAN WELLS
INDIO
JURUPA VALLEY (inc. 1 July

LAKE ELSINORE

LA QUINTA
M=
618,097
0 0
0 161,531
4,262,137
552,860
0 0
0 513,070
6,038,474
307,564
1,176
0 0
628,776
6,835,903
146,671 184,184
492,840
392
0 0
434,459
5,712,171
128,542 153,132
316,181
0 261,196
77,232
41,009
1,033,190
1,802,424
3,424,971
435,933
n/a
18,924
1,075,582
4,648,594
n/a
1,198,185
2,798,095
0 38,587
586,825
1,076,032
64,501
26,318
574,077
2,375,264
2,989,106
369,337
see notes below
1,115,139
2,075,668
see notes below
1,367,576
1,031,556
0 492,840
392
0 0
434,459
5,712,171
153,132
133,164
1,552,970
445,295
0 25,798
1,080,111
1,929,366
2,986,573
370,783
see notes below
0 3,318,722
2,383,136
see notes below
1,165, 691
1,590,929
0 162,644
713,265
594,174
47,244
31,042
895,793
2,035,685
3,133, 550
392,018
59,787
9,462
1,836,481
3,035,799
0 1,243,817
1,806,860
0 4
4 162,644
713,265
594,174
47,244
31,042
895,793
2,035,685
3,133,550
392,018
59,787
9,462
1,836,481
3,035,799
0 1,243,817
1,806,860
0 MORENO VALLEY

MURRIETA
NORCO

PALM DESERT

PALM SPRINGS
PERRIS

RANCHO MIRAGE

RIVERSIDE

SAN JACINTO

TEM ECU LA
1,600,807
785,317
78,660
5,346,951
4,243,162
235,180
1,815,441
18, 039,443
543,637
3,228,915
1,506,617
1,510,212
26,269
4,688,794
4,274,880
907,323
3,458,223
17,447,014
735,080
2,875,767
2,119,479
1,660,517
12,036
4,566,328
4,578,581
307,663
3,506,707
17, 333, 720
730,303
2,854,016
1,742,301
1,318,682
38,988
4,867,358
4,365,541
483,389
2,926,790
17, 606, 726
669,673
2,986,233
1,742,301
1,318,682
38,988
4,867,358
4,365,541
483,389
2,926,790
17,606,726
669,673
2,986,233
UPDATED 7 August 2017
CaliforvtiaCityFivtay.ce.cowx
ATTACHMENT #3
Pa g e p14 50 an 7723

Council Meeting Agenda- April 16, 2026

INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: City Manager Department
Prepared by: Angelica Avila, City Clerk
Subject: Planning Commission Vacancy Appointment
RECOMMENDED ACTIONS:

Council APPROVES the recommendation of the Council Ad Hoc Committee to appoint James Lee to the Planning Commission to fill the vacancy created by the resignation of Commissioner Glenn Schubert, with a term ending December 2027, in accordance with Council policy; and
FINDS the action exempt from California Environmental Quality Act (CEQA) review under CEQA guidelines section 15061(b)(3).

DISCUSSION
The Planning Commission consists of residents appointed to serve two-year terms aligned with the calendar year. On March 27th, 2026, Commissioner Glenn Schubert formally resigned from the Planning Commission, creating a vacancy on the Planning Commission with a term ending on December 31, 2027.

Consistent with Council policy, Committee and Commission applications are retained for six (6) months following the recruitment and appointment process and may be used to fill unexpected vacancies. The most recent Planning Commission recruitment concluded in October 2025, with appointments made by the Council in November 2025. Accordingly, applications from the 2025 recruitment period remain valid through May 2026.

The Council Ad Hoc Committee consisting of Mayor Pro Tem Penna and Council Member Whitman conducted interviews between September 20 and October 30, 2025. Based on those interviews and subsequent review, the Ad Hoc Committee met to consider filling the Planning Commission vacancy by reviewing the existing applications on file. Based on the review, the Ad Hoc Committee recommends James Lee to fill the current vacancy on the Planning Commission.

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Council Meeting Agenda- April 16, 2026
FISCAL IMPACT:

There is no fiscal impact.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

The action is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act ("CEQA") Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly; and that the action is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. (14 CCR 15061(b)(3).)

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Council Meeting Agenda- April 16, 2026

INDIAN WELLS CITY COUNCIL
April 16, 2025
To: City Council
From: City Manager Department
Prepared by: Angelica Avila, City Clerk
Subject: Annual Recruitment and Interview Schedule for Committee Vacancies

RECOMMENDED
ACTIONS:

Council APPROVES the annual recruitment and interview schedule and designates Councilmember Bruce Whitman to serve on the Ad -Hoc Interview Committee for the Joslyn Senior Center Board; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

DISCUSSION:

This year, ten appointments are under consideration across the City's Boards and Commissions. Pursuant to Council Policy (Attachment No. 1), four (4) seats are eligible for reappointment to two-year terms ending June 30, 2028. Members eligible for reappointment are required to submit a new application and participate in the interview process.

In addition, five (5) residents are termed out: two (2) from the Community Activities Committee, one (1) from the Golf Resort Advisory Committee, and one (1) from the Joslyn Senior Center Board. There is also one (1) vacancy on the Community Activities Committee due to a resignation. Grants -in -Aid Committee member James Lee is recommended for appointment to the Planning Commission. Upon Council approval, this appointment will create a vacancy on the Grants -in -Aid Committee. Committee Member Term Status:
ommitte
Community Activities
Committee
Golf Resort Advisory
Committee
Member Name
Tricia Cole
Dawn Swajian
Vacancy
Gordon Johnson
Robert Fry
Jim Kent
Termed out
Termed out
Resignation
Termed out
1 term left
1 term left

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Council Meeting Agenda- April 16, 2026
Grants In Aid Committee
Josl n Senior Center Board
Susan Paresky
Dan Miller
Tyler Shigenaga
Vacancy (James Lee)
Linda Blank
Termed out
1 term left
1 term left
Remainder of term
Termed out
The annual vacancies are noticed in the Desert Sun in early April. In addition, email notifications are sent to the community concerning the committee vacancies and a link to the application with committee descriptions are posted on the City's website. The application process begins on April 17, 2026, and the deadline to apply is on Wednesday April 30, 2026, at 5:00 p.m.

The Council implemented Ad -hoc Interview Committees to review applications and conduct interviews with the applicants. The Council Ad -hoc Interview Committees ("Committee") consist of one or two Council Members who are assigned to that committee as the liaison or if there are no Councilmember representation on such Committees, the Council shall designate Councilmembers at a public meeting. Mayor Pro Tem Penna serves as the Council liaison for Community Activities Committee and Grants In Aid Committee. Mayor Taylor and Councilmember Whitman serve on the Golf Resort Advisory Committee.

Staff recommend the Council designate Councilmember Whitman on the Committee for the Joslyn Senior Center Board.

Each Committees will conduct in person interviews between May 4 through May 29, 2026. The Committees shall forward appointment recommendations to the City Clerk no later than June 10, 2026. The recommendations are to be proposed for approval at the second Council meeting in June.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

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Council Meeting Agenda- April 16, 2026

INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: City Manager Department
Prepared by: Christopher Freeland, City Manager
Subject: Summary of 2026 Strategic Planning and Goal Setting Session for the City, Housing Authority, and Golf Resort RECOMMENDED ACTIONS:

Council RECEIVES and FILES the summary of 2026 Strategic Planning and Goal Setting Session for the City, Housing Authority, and Golf Resort; and FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

BACKGROUND:

On March 17, 2026, the City Council and Housing Authority conducted their Annual Strategic Planning Session. This report summarizes the priorities established by the City Council and Housing Authority at that session.

Strategic planning allows the City Council to set directions for where an organization is going over the next year or more, how it is going to get there, and how it knows if the goals were reached or not. This is the City's "Game Plan." The focus of a strategic plan is to outline the goals of the City Council and Housing Authority for the benefit of the community/organization over a period (one, three, or five years is recommended). Goals - based planning starts with a focus on the organization's vision and/or values, then selects projects and programs to meet and achieve the goals, analyzes the resources needed and available, and finally determines who will do what and by when. Goal setting has the following benefits:
• A better understanding by citizens and staff of the City Council's plans as a single governing body for the future of the City of Indian Wells. • Focusing on priorities and initiatives that will yield the greatest benefit to the community.
• Formal adoption of City Council Goals provide staff with directions to plan and organize resources efficiently and effectively to ensure timely completion of goals. • Identify funding priorities and appropriations for transparent and efficient use of City and Housing Authority funds.

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• Goals are established to allow flexibility to meet changing needs of the community. • Focus and accountability of City staff in achieving City Council Goals. • Creating a sense of direction and purpose, fostering trust and goodwill with residents and stakeholders.

DISCUSSION:

As part of the 2026 Strategic Planning Session, the City Council/Housing Authority received an update on the finances of the City and Housing Authority, the five-year Capital Improvement Program, and Golf Resort operations. In addition, the City Council and Housing Authority provided directions on numerous City/Housing Authority goals, projects, and programs, as summarized below.

Financial Status for the City and Housing Authority
The City Council and Housing Authority were provided an update on the financial status of the City, including:
• A strong cash reserve,
• A conservative projected General Fund surplus of over $65.7 million over the next ten years,
• Repayment of former redevelopment agency loans to the City of $5.6 million over the next two years,
• Grant funds awarded in last few years ($22.9 million) with $27.4 million under consideration, and
• Fourth consecutive year of operational profitability for the Indian Wells Golf Resort Moving forward, staff will continue the following:
• Continue the Council Policy of reserving $2 million annually for long-term capital replacements.
• Continue the Council Policy of maintaining a fully funded pension program. • Maintain a General Fund Reserve of 70% of the General Fund operating budget.

Further discussion on the City's budget for Fiscal Year 2026-2027 will occur at the Budget Study Session on May 13, 2026.

Summary of Approved Goals, Projects, and Programs
The City Council and Housing Authority approved goals from the 2026 Strategic Planning and Goal Setting Session are provided in the attachment (Attachment No. 1).

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FISCAL IMPACT:

This staff report is informational only. Any fiscal impact from the various goals, projects and programs are to be addressed separate from this report.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that the ordinance is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a "project" as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. Attachment No. 1 -Summary of Indian Wells' 2026 Strategic Planning Goals

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ATTACHMENT #1
Summary of Indian Wells' 2026 Strategic Planning Goals
Housing Authority
• Address Regional Housing Needs Assessment-RHNA (Develop Strategies to Extend Affordability Covenants at Indian Wells and Mountain View Villas) Time Frame: Next 12 Months
Responsible Departments: Community Development, City Manager's Office, and Finance
Housing Authority instructed staff to begin developing strategies to extend the covenants for both Indian Wells (expiring in 2031) and Mountain View (expiring in 2036) Villas. As covenants expire, it is common for affordable units to convert to market -rate units due to financial profitability. The Housing Authority wishes to keep units affordable and seek opportunities to gain RHNA credit for doing so. • Develop New Housing Units in the Community
Time Frame: Next 1-3 Years
Responsible Department: Community Development
Housing Authority instructed staff to continue efforts to add new affordable units in the community at the vacant property located at the corner of Miles and Warner Trail (Lissoy Opportunity Parcel).
• Development of Housing Element for the 7t" Cycle
Time Frame: Next 1-3 Years
Responsible Department: Community Development
Housing Authority has instructed staff to monitor legislation and take the necessary steps to prepare for the Housing Element 7th Cycle, which will begin next year. The 7th Cycle will include updates on the City's progress to add affordable units to the community.

City of Indian Wells Goals

1. Goal #1 -Safeguarding the Community
• Adopt Projects and Programs that Reduce Citywide ISO Rating from 2 to 1 Time Frame: Next 12 Months
Responsible Departments: City Manager's Office
Assigned Committee: Public Safety Committee

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Council instructed staff to work closely with the Public Safety Committee to examine further opportunities to seek out opportunities to further reduce the City's ISO rating from a 2 to a 1.
• Partner with Cove Communities to Implement Sheriff Drone Program Time Frame: Next 12 Months
Responsible Departments: City Manager's Office
Assigned Committee: Public Safety Committee
Council instructed staff to work closely with the Public Safety Committee and Cove Communities, which are examining the use of drones as a first responder tool for the Sheriff's Department.
• Expand Resident CERT Program with Cove Communities
Time Frame: Next 12 Months
Responsible Departments: City Manager's Office
Assigned Committee: Public Safety Committee
Council instructed staff to work closely with the Public Safety Committee and Cove Communities to expand resident participation and training in the Community Emergency Response Team (CERT) program. The CERT program offers a consistent, nationwide approach to volunteer training and organization that first responders can rely on during disaster situations, allowing them to focus on more complex tasks. • Develop a Cellular Master Plan
Time Frame: Next 12 Months
Responsible Departments: City Manager's Office
Assigned Committee: Public Safety Committee
City Council instructed staff to develop a cellular master plan to address gaps in cellular coverage in the community that create a public safety matter. Council has this as a discussion item on its May 15th agenda.
• Upgrade Emergency Operations Center
Time Frame: 1 to 3 Years
Responsible Departments: City Manager's Office
Assigned Committee: Public Safety Committee
Council instructed staff to seek out funding from State or federal programs to rebuild and rehabilitate the City's Emergency Operations Center.

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2. Fiscal Responsibility and Sustainability
• Continue Proactive Pursuit of County, State, and Federal Funding Time Frame: Ongoing
Responsible Departments: All Departments
The City has been highly successful in obtaining grant funds to save Indian Wells taxpayers millions of dollars on city projects. Council instructed staff to continue these efforts.
• Update Sponsorship Policy
Time Frame: Next 12 Months
Responsible Departments: Finance Department
Assigned Committee: Finance Committee
The Council has requested a review of its Sponsorship Policy and the organizations that are funded during the May 13th Budget Study Session. • Expand Cove Communities Project Partnerships to Expand Fiscal Efficiencies
Time Frame: Ongoing
Responsible Departments: All Departments
Council instructed staff to continue efforts to partner with the Cove Communities on projects to save the City time and money on projects (e.g., pavement projects), services (e.g., medical billing), or other programs offered by the cities (e.g., public safety and emergency preparedness). have been discussing the past couple of months.
•
Initiate a Government Efficiency and Organization/ Improvement Study Time Frame: Next 12 Months
Responsible Departments: City Manager's Office and Finance Department Assigned Committee: Finance Committee
Council instructed the Finance Committee to take the lead on determining the need and financial costs of an organizational efficiency study, based on proposals from consultants to conduct the study, and provide a recommendation to the City Council.

The initial steps of this study have begun with a complete overhaul of employee job descriptions.

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3. Goal #3 -Encourage Development and Tourism
• Continue Discussions with Renaissance Esmerelda on Expansion of their Resort
Time Frame: Next 12 Months
Responsible Departments: City Manager's Office
With the construction of the Players Course redesign completed, Renaissance Esmerelda is interested in expanding their operations on the former Hole 18 of the course. Council has instructed staff to continue discussion with Renaissance to sale the City's easement interest to Renaissance.
• Explore Opportunities to Attract & Activate the Tennis Garden for New Events and Activities
Time Frame: Next 12 Months
Responsible Departments: City Manager's Office
Assigned Committee: Ad hoc Committee (Taylor and Penna) Over the years, the Tennis Garden has hosted concerts, outdoor basketball games, art shows, and much more. Discuss opportunities with the Tennis Garden to attract and host other events throughout the year.
• Process Entitlements for Cocun Resort Development
Time Frame: Next 12 Months
Responsible Departments: All Departments
Council directed staff to continue processing the entitlements for the Cocun Resort planned for the corner of Miles and Highway 111, including the preparation of a development agreement.
• Process Entitlements for East Side of Miles at Highway 111 Time Frame: Next 1-3 Years
Responsible Departments: All Departments
Owners of the property of the proposed Cocun Resort also purchased the land on the east side of Miles and Highway 111. Council instructed staff to work diligently with the developer on their entitlement package once it is prepared for review. • Identify Potential Locations for New Tourist Attractions in the Community Time Frame: Next 1-3 Years
Responsible Departments: All Departments

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City of Indian Wells is a tourist destination. Council instructed staff to work with the City Council, Troon, and other stakeholders to identify new tourist attractions (e.g., golf and/or tennis museum, Indian Wells Preservation Foundation facility, original Indian Well, etc.) that are innovative and encourage visitors to travel to Indian Wells. • Explore Sister City Opportunities
Time Frame: Next 1-3 Years
Responsible Departments: City Manager's Department
Council instructed staff to seek out sister city opportunities to promote tourism in Indian Wells. Council discussion included a possible relationship with a community in Canada.

4. Goal #4 -Investing in Infrastructure and Amenities
• Examine Opportunities to Expand Non -Potable Water Use in the Community
Time Frame: Next 12 Months
Responsible Departments: Public Works Department
Over the past few years, California implemented drought restrictions and legislation to reduce water use for landscaping purposes. Council instructed staff to examine opportunities to address the City's non -potable water needs, but also to reach out to local homeowner associations to see how they can also benefit from utilizing non - potable water for their landscaping. Outreach includes meetings with the Coachella Valley Water District on opportunities and limitations to accessing non -potable water. • Continue Advancing Various Public Infrastructure Projects Time Frame: Next 12 Months
Responsible Departments: Public Works Department
At the 2024 Strategic Planning Session, Council authorized the advancement of several capital infrastructure projects (e.g., Whitewater Channel improvements, Safer Streets, Eisenhower Veteran Memorial, and landscaping improvements along Highway 111).

Council authorized the continuance of these projects.
• Rehabilitation/Redesign of the Indian Wells Lane Fountains Time Frame: Next 1-3 Years
Responsible Departments: Public Works and Community Development Departments Council instructed staff to examine costs to rehabilitate the current fountains and to work with Grand Hyatt and Renaissance to determine if there is interest in rehabilitating or redesigning the fountains. Project may include a public art component.

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Council Meeting Agenda- April 16, 2026
• Conduct a Review of Recently Slurred Streets to Evaluate Need to Repave Time Frame: Next 12 Months
Responsible Departments: Public Works Department
Last summer, numerous streets in Indian Wells were slurred, rather than repaved.

The slurry did not harden as expected, impacting the aesthetics of the project. Council asked staff to review and evaluate the streets where slurry was applied and make recommendations.
• Connect Water Wells at the Golf Resort to the Solar System Time Frame: Next 12 Months
Responsible Departments: Public Works Department/Troon
The solar project at the Golf Resort is complete. Council asked staff to evaluate connecting the water well pumps to the solar project.

5. Goal #5 -Enhancing the Quality of Life
• Develop New Park Site(s)
Time Frame: Next 1-3 Years
Responsible Departments: City Manager's Office
For the past few years, Council has expressed a desire to add park space in the community to address demand for pickleball courts, a dog park, and other recreational activities. The City has identified 34 acres at the corner of Miles and Warner Trail as a potential park site. Staff continues to seek other park sites in the community as well. • Develop New Public Art Installations in Indian Wells
Time Frame: 1-3 Years
Responsible Departments: Community Development/Public Works Examine opportunities to install public art in the community (e.g., Golf Resort, Fairway Park, perhaps as part of the fountain redesign at Indian Wells Lane. • Update City's Website
Time Frame: 12 months
Responsible Departments: City Manager's Office
In 2025, Council requested an update to the City's website, making it more user- friendly, incorporating new technology, and utilizing the City's newly adopted branding.

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Council Meeting Agenda- April 16, 2026
• Develop a Plan to Celebrate the City's 60th Anniversary in 2027 Time Frame: Next 12 months
Responsible Departments: City Manager's Office
Assigned Committee: Community Activities Committee
Founded in 1967, the City of Indian Wells is to celebrate its 60 Anniversary of incorporation in 2027. Council instructed staff to begin developing a plan to celebrate the City's 60th Anniversary, with the assistance of the Community Activities Committee.

This discussion includes the possible development of a book celebrating Indian Wells' history.
• Review of Tennis Ticket Allocation Policies
Time Frame: 12 months
Responsible Departments: City Manager's Office
Each year, the City provides residents with thousands of tickets to attend the BNP Paribas tennis tournament. Tickets include access to the City suites, general admission on Indian Wells Day, and Stadium 1 tickets. Council has requested a review of the ticket distribution policies to determine whether changes are warranted. • Fairway Park Shade
Time Frame: 12 months
Responsible Departments: City Manager's Office
Last year, Council requested that shade underneath the seating within the park be examined. The thought is to incorporate shade structures, utilizing public art and/or trees, to enhance the park.

6. Various Other City Goals and Programs
• Advocate to regiona/, county, state, and federal legislators and agencies to address public health and economic/tourism impacts of Coachella Valley Air Quality (Dust) resulting from Tropical Storm Hilary Time Frame: Next 12 months
Responsible Departments: City Manager's Office
Assigned Committee: Ad hoc Committee (Taylor and Sanders) Windblown dust has become more prevalent in the Coachella Valley and many associate the increase in poor air quality with Tropical Storm Hillary. Dust particles pose a threat to the community's public health and our regional economy. Council has instructed staff to work with the ad hoc committee to advocate to regional, county,

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state, and federal officials to study the air quality of the Coachella Valley and provide recommendations to protect our communities.
• Complete a Municipal Code Update
Time Frame: Next 1 to 3 Years
Responsible Departments: All Departments
Assigned Committee: Ad hoc Committee (Taylor and Sanders) The City adopted a General Plan Update, which necessitates a comprehensive zoning code update. In addition, staff and legal counsel recommend a review of other provisions of the City's Municipal Code in need of an update. An ad hoc committee was formed to assist in the review process.
• Flight Path Change Into Palm Springs Airport
Time Frame: Next 12 months
Responsible Departments: City Manager's Office
In June 2025, the Federal Aviation Administration (FAA) changed the flight path into Palm Springs Airport. This flight path change has put the path right over Indian Wells, generating a significant number of flights and noise over Indian Wells. • Revisit CVLink in or Around Indian We//s
Time Frame: Next 1-3 years
Responsible Departments: City Manager's Office
CV Link is a 40 -mile transportation corridor and recreation pathway through the Coachella Valley for pedestrians, bicyclists, and low -speed electric vehicles. Currently, CV Link ends on the western border of the City near Palm Desert High School and on the east side of the community at Washington and Hwy 111. Due to concerns of CV Link coming through Indian Wells, voters approved a ballot measure in 2016, that requires voter approval to allow any portion of CV Link to be located within the city.

There has been interest on the Council to revisit CVLink in or around Indian Wells, connecting the segments that border our community.

Indian Wells Golf Resort
• Grand Opening Celebration for Celebrity Course
Time Frame: Next 1-3 years
Responsible Departments: City Manager's Office and Troon Assigned Committee: Golf Resort Advisory and Community Activities Committees Council instructed staff to work closely with Troon to develop a celebration for the grand opening of the new Celebrity Course in Fall 2027. In addition, the Council wishes

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for the Golf Resort Advisory and Community Activity Committees to be involved in the planning of the event.
• Review of Equitable Access to Booking of Resident Golf Rounds Time Frame: Next 12 Months
Responsible Departments: City Manager's Office and Finance Earlier this year, the Council reviewed the history of the resident golf benefit, its rate structure, its usage, and more. During the meeting, the Council requested a review of equitable access to booking of resident golf rounds. This process is occurring now. • Bring a Major Go/f Tournament to the Indian Wells Golf Resort Time Frame: Next 12 Months
Responsible Departments: City Manager's Office and Troon Assigned Committee: Ad hoc Committee (Taylor and Sanders) City Council instructed staff to gather information on costs, both positive and negative impacts, and any other aspects of hosting a major tournament before any commitment is made. An ad hoc committee was formed to assist staff and Troon in this process.
• Hire Design Consultants for Various Capital Improvements Time Frame: Next 12 Months
Responsible Departments: Public Works and Troon
City Council instructed staff to move forward with consultants to assist in the design of a banquet kitchen, any recommended improvements to the pavilion, addition of a parking lot on the former Hole 18 of the Players Course, upgrades to Shots in the Night, public art in Kestrel, and installation of a legacy wall outside of the pro shop. • Seek Out Opportunities to Activate the Celebrity Ballroom Time Frame: Next 12 Months
Responsible Departments: City Manager's Office and Troon Assigned Committee: Golf Resort Advisory Committee
City Council instructed staff and Troon to explore opportunities for activating the Celebrity Ballroom that can increase tourism in the community (e.g., immersive golf or tennis experience). Council delegated the review to the Golf Resort Advisory Committee to aid in developing new uses.

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INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: City Manager Department
Prepared by: Eric Ceja, Assistant City Manager
Yessica Prieto, Emergency Services Coordinator
Subject:

Memorandum of Understanding between the Cities of Indian Wells, Palm Desert, and Rancho Mirage for Cove
Communities Community Emergency Response Team
Training Course
RECOMMENDED ACTIONS:

Council APPROVES Memorandum of Understanding (MOU) with the City of Palm Desert and City of Rancho Mirage for Cove Communities Community Emergency Response Team Training Course; and
AUTHORIZES the City Manager to execute an MOU for the same; and FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3).

BACKGROUND:

Community Emergency Response Team (CERT) programs have long served as a foundational element of emergency preparedness throughout Riverside County. Within the Cove Communities - Indian Wells, Palm Desert, and Rancho Mirage - each city has historically operated its own CERT training program. Although independently managed, these programs have shared a unified mission: to strengthen community resilience by equipping residents with basic disaster -response skills that enable them to support themselves, their families, and their neighborhoods during emergencies.

While each city's program has been effective, maintaining separate instructors, equipment, training schedules, and administrative processes has required each city to individually sustain similar operational structures. Recognizing the potential benefits of regional coordination, the Cove Communities Services Commission initiated discussions in 2025 to identify opportunities for shared services and improve alignment across the three cities.

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At the October 22, 2025, Cove Communities meeting, staff presented several potential areas for collaboration, including the development of a joint CERT training program serving Indian Wells, Palm Desert, and Rancho Mirage. The Commission supported continued exploration of these concepts and encouraged staff to formalize a collaborative framework.

Building on this direction, representatives from all three cities met throughout January and February 2026 to outline a shared operational framework, establish program goals, and define roles and responsibilities for a unified COVE CERT program. Through this coordinated approach, the cities aim to enhance community preparedness, reduce duplication of efforts, and promote consistent training standards across the region.

By working together, the cities are positioned to deliver a more efficient and effective CERT program, one that strengthens regional resilience and better prepares residents to respond to and recover from disasters.

Advisory Committee and Commission Recommendations:

This topic was previously discussed at multiple Public Safety Committees, resulting in the City Council adopting a strategic planning goal to expand emergency service planning in Indian Wells and partner with Cove Communities (e.g., Palm Desert and Rancho Mirage) on CERT training and other mutual aid programs.

CITY COUNCIL STRATEGIC GOAL:

On April 17, 2025, the City Council directed staff to increase emergency preparedness efforts within the community and expand the Cove Communities partnership to provide mutual aid and training.

OPTIONS:

The following options are available to the City Council:

1. Approve the MOU as presented.

2. Deny entering into the MOU; or

3. Provide alternative direction.

FISCAL IMPACT:

There is no additional cost for implementing this MOU. CERT training is currently budgeted in the FY 2025-2026 and 2026-2027 budget years. Partnering with the Cove Communities on CERT training is likely to reduce the City's annual expenditure on CERT training.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

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The action is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act ("CEQA') Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly; and that the action is nonetheless exempt from the requirements of CEQA in that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. (15061(b)(3).)
ATTACHMENTS:

1. Memorandum of Understanding

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ATTACHMENT #1

MEMORANDUM OF UNDERSTANDING

BY AND BETWEEN

THE CITY OF INDIAN WELLS, THE CITY OF RANCHO MIRAGE

AND THE CITY OF PALM DESERT

FOR COVE COMMUNITY EMERGENCY RESPONSE TEAM

TRAINING COURSE
This Memorandum of Understanding ("MOU") is made and effective as of April 16, 2026, between the CITY OF INDIAN WELLS, a municipal corporation, the CITY OF RANCHO MIRAGE, a municipal corporation, and the CITY OF PALM DESERT, a municipal corporation, hereinafter collectively referred to as the "PARTIES" and which may be individually referenced as a "PARTY."

1. PURPOSE
This MOU outlines a cooperative relationship between the PARTIES to implement a combined Community Emergency Response Team ("CERT") training program hereinafter referred to as "COVE CERT."

2. BACKGROUND
Each of the PARTIES have operated independent CERT training programs for their respective cities. In October 2025, during a Cove Communities Services Commission meeting, the PARTIES entered into discussions to collaborate on sharing CERT program resources. In January and February 2026, the PARTIES entered into discussions to establish the operational framework, goals, and obligations for the establishment of COVE CERT. The PARTIES acknowledge the value of CERT as it promotes community preparedness and will result in a more resilient community in the face of disaster.

3. AUTHORITIES
The PARTIES are each authorized to organize, mobilize, coordinate, and direct personnel and resources for the establishment of COVE CERT.

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Notice shall be effective upon personal delivery or mailing to the addresses listed herein.
c) Continuation Among Remaining Parties. In the event any PARTY terminates its participation in this MOU pursuant to subsection (b) above, such termination shall not affect the validity or enforceability of this MOU as between the remaining PARTIES. The remaining PARTIES shall continue to be bound by all terms and conditions of this MOU, and all rights, obligations, and benefits set forth herein shall remain in full force and effect among them.
d) Automatic Termination. Notwithstanding subsection (c), this MOU shall automatically terminate in its entirety if, following the withdrawal of any PARTY or PARTIES, only one (1) PARTY remains. Such automatic termination shall become effective upon the effective date of the withdrawal that reduces the number of PARTIES to one.
e) Reallocation of Obligations. Upon the withdrawal of any PARTY, the remaining PARTIES may, by mutual written agreement, modify the terms of this MOU to reallocate responsibilities, resources, or obligations as necessary to ensure the continued effective operation of the cooperative relationship established herein.

Any such modification shall be executed in accordance with Section 9(a) of this MOU.

5. AREAS OF AGREEMENT AND METHODS OF COOPERATION
In order to establish a cooperative relationship between the PARTIES to establish and run COVE CERT, the PARTIES agree to the following roles and responsibilities:

Shared Responsibilities

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a) The PARTIES will work collaboratively to run at least two (2) CERT Basic courses per calendar year based on the availability of the lead instructor. The PARTIES may elect to work collaboratively to run a CERT Refresher course they deem appropriate at any time.
b) The PARTIES will brand and advertise upcoming COVE CERT sessions using unified messaging which clearly identifies upcoming sessions as "Cove Communities CERT" and naming all PARTIES as sponsoring agencies. The PARTIES will use their individual advertising and marketing channels to advertise upcoming COVE CERT sessions. All certificates issued to graduating students will follow the aforementioned criteria with all of the PARTIES listed as program managers for COVE CERT.
c) The PARTIES will decide on a case -by -case basis who will be responsible for setting up the registration process and compiling the class roster for an upcoming session. The PARTIES may elect to set up shared account with a suitable service provider that can facilitate this process. All PARTIES shall have access to the complete record of registrations and certifications issued pursuant to any COVE CERT session, regardless of whether only one of the PARTIES is facilitating the registration process or not.
d) The PARTIES agree to purchase similarly equipped CERT bags at their own expense for students who principally reside within their respective jurisdiction. In the event a student does not principally reside within any of the PARTY cities, then bags will be distributed from an individual PARTY inventory in alphabetical rotation:

INDIAN WELLS, PALM DESERT, RANCHO MIRAGE with the rotation persisting across sessions.
e) The PARTIES agree to provide qualified personnel, usually their designated Disaster Services Coordinator, or equivalent, to provide supplemental instruction and logistical support throughout the duration of any COVE CERT session. The PARTIES will ensure their assigned personnel will provide the principal instruction on at least one of the required training modules. The assigned personnel will support the class by preparing training equipment, props, and supplies so they are ready when needed and by assisting with one-on-one instruction during hands-on exercises and group activities.

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f) The PARTIES will prepare a suitable WAIVER OF LIABILITY for the mutual benefit of all PARTIES that must be executed by every student participating in COVE CERT. All the PARTIES shall receive facsimile copies of the waivers for their records.

Individual Responsibilities
g) The CITY OF RANCHO MIRAGE shall furnish, maintain, and secure a trailer (the "TRAILER") to contain all the durable equipment that is necessary to run a CERT class, and shall be responsible for the delivery and removal of the trailer from the training location. Subject to available space, the CITY OF RANCHO MIRAGE agrees to allow the PARTIES to store relevant CERT equipment in the TRAILER and to allow PARTIES access to the TRAILER at reasonable times that are mutually convenient.
h) The CITY OF PALM DESERT shall provide a suitably equipped training location capable of housing up to 40 students in an indoor classroom style setting, an adjacent outdoor training space, basic sanitation facilities, and a space to securely park the TRAILER for the duration of any CERT session.
i) The CITY OF RANCHO MIRAGE shall coordinate the recruitment and participation of the lead instructor and is generally responsible for establishing the daily agenda and pacing for each CERT session. The PARTIES agree to pay an equal share of the total fees due directly to the instructor for the performance of their duties. j) The CITY OF INDIAN WELLS shall furnish coffee and water for all the students for each day a COVE CERT session is held.

6. CONTACT INFORMATION
a) Refer to Attachment A.

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employees, agents, or subcontractors, shall not without written authorization from the PARTIES' City Manager or unless requested by the PARTIES' City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this MOU or relating to any project or property located within the PARTIES' City. Response to a subpoena or court order shall not be considered "voluntary", provided PARTIES give City sufficient advance notice of such court order or subpoena.

8. INDEMNIFICATION AND INSURANCE
a) Each PARTY shall maintain, at its sole cost and expense, insurance coverage as set forth below throughout the term of this Memorandum of Understanding (MOU):
b) Each PARTY shall maintain Workers' Compensation Insurance as required by the laws of the State of California, including statutory limits, and Employer's Liability Insurance with limits of not less than One Million Dollars ($1,000,000.00) per accident for bodily injury by accident and One Million Dollars ($1,000,000.00) per employee for bodily injury by disease, in accordance with California Labor Code Section 3700.
c) Each PARTY shall provide General Liability Insurance Commercial general liability insurance covering claims for bodily injury, personal injury, property damage, and contractual liability with a minimum limit of $1,000,000 per occurrence and $2,000,000 general aggregate, covering all activities and responsibilities described in this MOU.
d) Each PARTY shall provide Automobile Liability Insurance Coverage with a combined single limit of not less than $1,000,000 per accident, covering all owned, hired, and non -owned vehicles used in connection with the performance of this MOU.
e) Each PARTY shall provide Additional Insured endorsements and Each PARTY shall name every other PARTY, their officers, officials, employees, agents, and volunteers as additional insureds under their respective General Liability and Automobile Liability policies.
f) Each PARTY shall provide Primary and Non -Contributory endorsements to the General Liability and Automobile Liability policies. All required insurance shall be

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j)
primary and non-contributory with respect to any insurance or self-insurance maintained by the other PARTIES and its officers, officials, employees, agents, and volunteers.
g)
Each PARTY shall provide a waiver of subrogation endorsement to the General Liability and Automobile Liability policies in favor of each other PARTY, including their governing body or council, boards and commissions, officers, agents, volunteers, and employees. Proof of such waiver shall be provided upon request. h) In recognition of the advisory, planning, and coordination functions being provided under this MOU, each PARTY shall maintain Professional Liability Insurance (Errors and Omissions) covering actual or alleged negligent acts, errors, or omissions arising out of the performance of professional services under this MOU.

Coverage shall be maintained with limits of not less than One Million Dollars ($1,000,000.00) per claim and in the aggregate, and shall extend for a minimum of three (3) years following the termination of this MOU. i) Each PARTY shall furnish evidence of the above coverages upon request, and shall ensure that such coverage remains in force throughout the duration of this MOU or any longer period required herein.

Each Policy shall include a Notice of Cancellation. All insurance policies required under this MOU shall provide that the insurer shall give each other PARTY not less than thirty (30) days' advance written notice of any cancellation, termination, or material change in coverage
k) Each PARTY (the "Indemnifying PARTY") agrees to indemnify, defend, and hold harmless the other PARTY or PARTIES, and their respective officers, officials, employees, agents, boards, commissions, and volunteers (collectively, the "Indemnified Parties"), from and against any and all claims, demands, losses, liabilities, damages, injuries, costs, and expenses (including reasonable attorney's fees and costs of litigation) arising out of, relating to, or resulting from, including any allegations of, the acts, errors, omissions, breach, negligence or willful misconduct of the respective Indemnifying PARTY, its officers, officials, employees, agents, or volunteers in connection with the performance of its obligations under this MOU, including but not limited to bodily injury or damage to property.

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I) This indemnification obligation shall not apply to any claims, damages, or liabilities arising from the sole or active negligence, or willful misconduct of the Indemnified Parties.
m) These indemnification obligations shall survive the expiration or termination of this MOU, and shall remain in full force and effect as to any claims or liabilities arising from acts or omissions occurring during the term of this MOU.

9. MISCELLANEOUS PROVISIONS
a) Amendments. This MOU may be modified or amended only by a written document duly executed by all parties hereto.
b) In the event of any dispute, claim, or controversy arising out of or relating to this MOU, the PARTIES agree to first make a good faith effort to resolve the matter through informal discussions between designated representatives. If the dispute is not resolved within thirty (30) calendar days of initial notice, any PARTY may initiate non -binding mediation before a mutually agreed -upon mediator. If mediation fails to resolve the matter, any legal action must be filed exclusively in the Superior Court of the State of California, County of Riverside, and governed by the laws of the State of California.
c) Each PARTY shall bear its own attorneys' fees and legal costs regardless of the outcome of any dispute, and no PARTY shall be entitled to recover such fees or costs from any other PARTY, whether by contract, statute, or other legal authority. d) All notices, demands, requests, or approvals, including any change in mailing address, to be given under the terms of this MOU shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first class mail, addressed as set forth in Attachment A hereto. e) This MOU may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument.

The PARTIES agree that the use of electronic signatures is authorized and binding, including, without limitation, signatures delivered by electronic mail in PDF format or through a reputable electronic signature service shall be deemed to have the same legal effect as a manual signature.

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f) Each PARTY is responsible for their respective employee costs, including pay and benefits, support, and travel, and nothing herein shall be deemed as creating joint employment. Each PARTY is also responsible for supervising and managing its personnel until this MOU is activated. No PARTY will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by another PARTY to perform any services described in this MOU.

The PARTIES acknowledge and agree no PARTY shall be monetarily compensated under this MOU unless reimbursement is available due to an emergency or disaster declaration or proclamation. In the event reimbursement is available, claims will be submitted through applicable procedures and subject to the applicable laws, rules, and regulations.
h) Because this MOU is being entered into for the provision of emergency support services in the event of a disaster or emergency that causes activation and the need for said services to be provided to a PARTY EOC, the activating PARTY may seek County, State, and/or Federal financial assistance for this MOU. Therefore, the parties shall comply with the terms and conditions set forth in the Federal Contract Provisions and Orders of Loca, State, and Federal Officials. g)

10. Authority to Execute Non -Substantive Amendments
a) Any PARTY City Manager is authorized to enter an amendment on behalf of their City to make the following non -substantive modifications to the agreement: (a) name changes, (b) extension of time, (c) non -monetary changes in scope of work, or (d) agreement termination.

IN WITNESS WHEREOF, the PARTIES hereto have caused this MOU to be executed the day and year set forth below.

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CITY OF INDIAN WELLS CITY OF PALM DESERT
By: By:

Chris Freeland, City Manager Chris Escobedo, City Manager ATTEST: ATTEST:

By: By:

Angelica Avila, City Clerk Anthony J. Mejia, City Clerk APPROVED AS TO FORM: APPROVES AS TO FORM:

By: By:

Todd Leishman, City Attorney

CITY OF RANCHO MIRAGE
By:

Isaiah Hagerman, City Manager
ATTEST:

By:

Kristie Ramos, City Clerk

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APPROVED AS TO FORM:

By:

Colin Kirkpatrick, City Attorney

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ATTACHMENT A
Party Contact Information and Primary Points of Contact The primary points of contact in each PARTY will be responsible for the implementation of the MOU in their respective PARTY, coordinating activities between parties, and responding to questions regarding this MOU. In the event that the primary point of contact is no longer able to serve, a new contact will be designated, and the other parties will provide written notice of the change. When Attachment A is updated in writing, the revised Attachment A shall be inserted into this MOU and the MOU does not need to be signed again.

Agency Point of Contact
City of Indian Wells
Contact
Title
Office Phone
Cell Phone
E-mail
City of Palm Desert
Contact
Daniel Hurtado
Title
Public Safety Coordinator
Office Phone
760-776-6414
Cell Phone
760-238-2578
E-mail
[email protected]

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City of Rancho Mirage
Contact
Brian Kephart
Title
Emergency Manager
Office Phone
760-324-4511 ext. 296
Cell Phone
760-275-3753
E-mail
[email protected]

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INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: City Manager Department
Prepared by: Eric Ceja, Assistant City Manager
Yessica Prieto, Emergency Services Coordinator
Subject: Memorandum of Understanding with the City of Palm Desert and City of Rancho Mirage for Sharing of Emergency Management Resources
RECOMMENDED ACTIONS:

Council APPROVES a Memorandum of Understanding (MOU) with the City of Palm Desert and City of Rancho Mirage for sharing emergency management resources; and AUTHORIZES the City Manager to execute an MOU for the same; and FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3).

BACKGROUND:

In September 2025, the City of Indian Wells and the City of Palm Desert entered into a Memorandum of Understanding (MOU) to support shared emergency management resources. The agreement was created to enhance regional coordination, improve access to resources, and strengthen the operational capabilities of both jurisdictions during emergency preparedness, response, and recovery activities.

Since that time, the City of Rancho Mirage has expressed interest in joining the existing partnership to further expand regional collaboration. As each city continues to maintain its own dedicated Emergency Services Coordinator (ESC), the value of coordinated planning and shared resources has become increasingly evident. Emergencies and large- scale incidents rarely adhere to jurisdictional boundaries, making cross -city cooperation essential for effective response.

The updated MOU establishes a formal framework for mutual aid support among Indian Wells, Palm Desert, and Rancho Mirage. Key elements include coordinated access to each city's ESC, shared use of facilities and equipment during emergency operations, and joint participation in training, exercises, and preparedness initiatives. The structure

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strengthens operational readiness while ensuring consistency in emergency management practices across the three cities.

In addition to improving regional resilience, the partnership creates opportunities for cost efficiencies. Joint training, such as Community Emergency Response Team (CERT) courses, reduces the need for duplicate staffing, equipment, and instructional resources.

By combining efforts, the participating cities can offer high -quality preparedness programs to a broader group of residents while lowering overall program costs.

Advisory Committee Recommendations:

In 2025, Commissioners at the Cove Communities Services Commission also expressed interest in identifying opportunities for enhanced regional coordination among the three cities. At the October 22, 2025, meeting, staff presented potential focus areas, including joint CERT training and sharing of emergency management resources between Indian Wells, Palm Desert, and Rancho Mirage. The Commission supported continued exploration of these concepts and encouraged staff to formalize a collaborative framework.

CITY COUNCIL STRATEGIC GOAL:

During the April 17, 2025, City Council Strategic Planning Session, the City Council directed staff to increase emergency preparedness efforts within the community and expand Cove Communities partnership to provide mutual aid and training.

OPTIONS:

The City Council can:

1. Approve the MOU as presented.

2. Deny entering into the MOU; or

3. Provide alternative direction.

FISCAL IMPACT:

There is no additional financial requirement associated with this MOU.

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CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

1. Memorandum of Understanding

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ATTACHMENT #1

MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF INDIAN WELLS, THE CITY OF RANCHO MIRAGE

AND THE CITY OF PALM DESERT

FOR SHARING OF EMERGENCY MANAGEMENT RESOURCES
This Memorandum of Understanding ("MOU") is made and effective as of [ENTER DATE], between the City of Indian Wells, a municipal corporation, the City of Rancho Mirage, a municipal corporation, and the City of Palm Desert, hereinafter collectively referred to as the "PARTIES."

1. PURPOSE
This MOU outlines a cooperative relationship between the PARTIES to share emergency management personnel, facilities, operational functions, and technology during significant events.

2. BACKGROUND
Each of the PARTIES has a threat and hazard landscape that may create or exacerbate multiple catastrophic scenarios, which could potentially require emergency management support from each other. The PARTIES will augment existing emergency plans to include a detailed procedure for the activation and effectuation of this MOA.

In October 2025, during the Cove Communities Services Commission, the CITY OF INDIAN WELLS, the CITY OF RANCHO MIRAGE, and the CITY OF PALM DESERT entered into discussions to collaborate on sharing emergency management services, including CERT program facilities, operational functions, personnel, and technology, during significant events and unplanned extended absences of emergency management personnel by either PARTY. All CITIES face flood, wildfire, and earthquake threats, which may necessitate operating emergency management functions from a location outside their respective city limits. The PARTIES recognize that an alternate Emergency Operations Center (EOC) and additional emergency management services situated outside of their jurisdictions are essential to ensuring public safety functions are carried out reliably under all circumstances during emergencies or disasters.

Furthermore, the PARTIES agree that redundancy in emergency management personnel, facilities, operational functions, and technology is critical for maintaining effective disaster response, recovery, and continuity of operations.

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3. AUTHORITIES
The PARTIES are each authorized to organize, mobilize, coordinate, and direct disaster response activities, both public and private, during a disaster. Such authority is granted by the California Emergency Services Act, the State of California Emergency Plan, the State of California Master Mutual Aid Agreement, the County of Riverside and Riverside County Operational Area Emergency Operations Plan, the Riverside County Operational Area Agreement, and the Emergency Operations Plan for the PARTIES.

4. TERM
a) This MOU shall commence on the final date of approval by the PARTIES and the execution hereof by their respective authorized leadership and shall remain in effect until terminated.
b) Voluntary Termination. This MOU may be terminated by any PARTY with or without cause by providing sixty (60) days' written notice to the other PARTY(IES). Notice shall be effective upon personal delivery or mailing to the addresses listed herein.
c) Continuation Among Remaining Parties. In the event any PARTY terminates its participation in this MOU pursuant to subsection (b) above, such termination shall not affect the validity or enforceability of this MOU as between the remaining PARTIES. The remaining PARTIES shall continue to be bound by all terms and conditions of this MOU, and all rights, obligations, and benefits set forth herein shall remain in full force and effect among them.
d) Automatic Termination. Notwithstanding subsection (c), this MOU shall automatically terminate in its entirety if, following the withdrawal of any PARTY or PARTIES, and only one (1) PARTY remains. Such automatic termination shall become effective upon the effective date of the withdrawal that reduces the number of PARTIES to one.
e) Reallocation of Obligations. Upon the withdrawal of any PARTY, the remaining PARTIES may, by mutual written agreement, modify the terms of this MOU to reallocate responsibilities, resources, or obligations as necessary to ensure the continued effective operation of the cooperative relationship established herein.

Any such modification shall be executed in accordance with Section 9(a) of this MOU.

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5. AREAS OF AGREEMENT AND METHODS OF COOPERATION
In order to establish a cooperative relationship between the PARTIES to share emergency management personnel, facilities, operational functions, and technology, the PARTIES agree to the following roles and responsibilities:
a) Allow 24 -hour -a -day temporary use of a suitable, available facility for 10-14 days to operate as an alternate EOC until the primary EOC can be used, the threat is mitigated, or a permanent alternate EOC is established. Possible locations include the host PARTY(IES) EOC, conference rooms, or any other suitable space as determined by the host PARTY(IES) staff. It is understood by all PARTIES that this agreement is based on the availability of suitable space at the time of the request and its continued availability, including, but not limited to, an emergency requiring a PARTY to activate its EOC, as well as normal day-to-day operations and pre -scheduled events.
b) Subject to availability and the uninterrupted continuation of each City's essential governmental operations, each PARTY agrees to permit each other PARTY reasonable use of designated rooms (including conference rooms, restroom and breakroom access) office spaces, tables and chairs, and suitable parking areas for the purposes outlined in this Agreement. Such use shall be scheduled and coordinated in advance to avoid interference with the host City's operations or obligations to third parties.
c) Access to computers, telephones, and Wi-Fi may be provided at the host PARTY(IES) discretion, provided such resources are available and not otherwise committed to essential functions or prior obligations.
d) The host PARTY reserves the right to designate certain areas, equipment, or facilities as restricted or "off limits" at any time and for any reason, including but not limited to operational necessity, maintenance, security, or safety concerns. e) Allow the impacted/evacuated population to shelter in the PARTY -designated shelter for 10-14 days, 24 hours a day. All PARTIES understand that this agreement is based on the availability of suitable space at the time of the request and its continued availability for the anticipated duration of its use. All PARTIES' community members can populate shelter locations at the same time.

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j)
f) Serve as a redundant emergency Alert and Warning point of contact, which will have authority, upon request, to send emergency Alert and Warning messages on the other PARTIES' behalf.
g) The CITY OF PALM DESERT agrees to provide up to eighty (80) total hours of emergency management support, specifically from its Disaster Preparedness Coordinator or equivalent, to each of the CITY OF INDIAN WELLS and the CITY OF RANCHO Mirage during an Emergency Operations Center (EOC) activation, provided that the CITY OF PALM DESERT's own EOC is not activated or impacted at the time of request.
h) The CITY OF INDIAN WELLS agrees to provide up to eighty (80) total hours of emergency management support, specifically from its Disaster Preparedness Coordinator or equivalent, to each of the CITY OF PALM DESERT and the CITY OF RANCHO Mirage during an Emergency Operations Center (EOC) activation, provided that the CITY OF INDIAN WELL's own EOC is not activated or impacted at the time of request.
i) The CITY OF RANCO MIRAGE agrees to provide up to eighty (80) total hours of emergency management support, specifically from its Disaster Preparedness Coordinator or equivalent, to each of the CITY OF INDIAN WELLS and the CITY OF PALM DESERT Mirage during an Emergency Operations Center (EOC) activation, provided that the CITY OF RANCHO MIRAGE's own EOC is not activated or impacted at the time of request.

For the purposes of this MOU, "impacted" shall mean that the host City is experiencing, responding to, or actively preparing for any incident, emergency, or event —whether natural, technological, or human -caused —that requires:
- Partial or full activation of its EOC;
- Significant engagement or redirection of emergency management personnel or resources;
- Coordination with County, State, or Federal emergency agencies; or - Internal response measures that would materially affect the City's ability to provide nonessential personnel to outside jurisdictions.

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k) Determination of whether the host City is "impacted" shall be made at its sole discretion, based on the reasonable judgment of the City Manager or their designee, considering the City's operational readiness and public safety responsibilities.

I) Pre -designate contacts. (See Attachment A)
m) Participate in periodic emergency training and drills implementing this MOU, at a date and time agreed upon by all PARTIES.
n) Upon activation of this MOU, the responding PARTY agrees to temporarily assign its designated emergency management personnel —specifically the Disaster Preparedness Coordinator or equivalent —to support the requesting PARTY's Emergency Operations Center (EOC) operations. During this temporary assignment, the designated personnel shall pause their routine or non - emergency duties for their home jurisdiction to focus on fulfilling the responsibilities outlined in this agreement.
o) This reassignment is intended to ensure clear operational focus and accountability during emergency response support. It does not constitute a merger of either PARTY's emergency management structure, nor does it create a joint EOC or joint employment. Each CITY shall retain independent authority and operational control over its own emergency response activities. p) The responding PARTY shall have sole discretion to determine whether it has the capacity to reassign personnel under this MOU, based on its own operational needs and emergency status.
q) If an activation of any level is required for the responding PARTY's own Emergency Operations Center (EOC), the requesting PARTY shall immediately release the assigned emergency management personnel from duty and facilitate their prompt return to their home jurisdiction to resume their primary emergency responsibilities.

6. CONTACT INFORMATION
a) Refer to Attachment A.

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7. RELEASE OF INFORMATION
a) All information gained by the PARTIES in the performance of this MOU shall be considered confidential and shall not be released by either PARTY without the City's prior written authorization, except as may be required by law, including but not limited to the California Public Records Act. The PARTIES, its officers, employees, agents, or subcontractors, shall not without written authorization from the PARTIES' City Manager or unless requested by the PARTIES' City Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this MOU or relating to any project or property located within the PARTIES' City. Response to a subpoena or court order shall not be considered "voluntary" provided PARTIES give City notice of such court order or subpoena.

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e) Each PARTY shall provide Additional Insured and Each PARTY shall name the other PARTY, its officers, officials, employees, agents, and volunteers as additional insureds under its General Liability and Automobile Liability policies. f) Each PARTY shall provide Primary and Non -Contributory wording. All required insurance shall be primary and non-contributory with respect to any insurance or self-insurance maintained by the other PARTY and its officers, officials, employees, agents, and volunteers
Each PARTY shall provide a waiver of subrogation endorsement in favor of the other PARTY, including its governing body or council, boards and commissions, officers, agents, volunteers, and employees. Proof of such waiver shall be provided upon request.
g)
h) In recognition of the advisory, planning, and coordination functions being provided under this MOU, each PARTY shall maintain Professional Liability Insurance (Errors and Omissions) covering actual or alleged negligent acts, errors, or omissions arising out of the performance of professional services under this MOU. Coverage shall be maintained with limits of not less than One Million Dollars ($1,000,000.00) per claim and in the aggregate, and shall extend for a minimum of three (3) years following the termination of this MOU. i) Each PARTY shall furnish evidence of the above coverages upon request, and shall ensure that such coverage remains in force throughout the duration of this MOU.
j)
Each PARTY (the "Indemnifying PARTY") agrees to indemnify, defend, and hold harmless the other PARTY or PARTIES, and their respective officers, officials, employees, agents, boards, commissions, and volunteers (collectively, the "Indemnified Parties"), from and against any and all claims, demands, losses, liabilities, damages, injuries, costs, and expenses (including reasonable attorney's fees and costs of litigation) arising out of, relating to, or resulting from the acts, errors, omissions, breach, negligence or willful misconduct of the respective Indemnifying PARTY, its officers, officials, employees, agents, or volunteers in connection with the performance of its obligations under this MOU, including but not limited to bodily injury or damage to property. k) Each Policy shall include a Notice of Cancellation. All insurance policies required under this MOU shall provide that the insurer shall give the other PARTY not less

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than thirty (30) days' advance written notice of any cancellation, termination, or material change in coverage
I) This indemnification obligation shall not apply to any claims, damages, or liabilities arising from the sole or active negligence, or willful misconduct of the Indemnified Parties.
m) These indemnification obligations shall survive the expiration or termination of this MOU, and shall remain in full force and effect as to any claims or liabilities arising from acts or omissions occurring during the term of this MOU.

9. MISCELLANEOUS PROVISIONS
a) Amendments. This MOU may be modified or amended only by a written document duly executed by all parties hereto.
b) In the event of any dispute, claim, or controversy arising out of or relating to this MOU, the PARTIES agree to first make a good faith effort to resolve the matter through informal discussions between designated representatives. If the dispute is not resolved within thirty (30) calendar days of initial notice, any PARTY may initiate non -binding mediation before a mutually agreed -upon mediator. If mediation fails to resolve the matter, any legal action must be filed exclusively in the Superior Court of the State of California, County of Riverside, and governed by the laws of the State of California.
c) Each PARTY shall bear its own attorneys' fees and legal costs regardless of the outcome of any dispute, and no PARTY shall be entitled to recover such fees or costs from any other PARTY, whether by contract, statute, or other legal authority. d) All indemnification obligations under this MOU shall survive its termination or expiration and remain in effect for any claims arising from acts or omissions that occurred during the term of this MOU.
e) All notices, demands, requests, or approvals, including any change in mailing address, to be given under the terms of this MOU shall be given in writing, and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first class mail, addressed as set forth in Attachment A hereto.

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f) This MOU may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. The PARTIES agree that the use of electronic signatures is authorized and binding, including, without limitation, signatures delivered by electronic mail in PDF format or through a reputable electronic signature service shall be deemed to have the same legal effect as a manual signature.

Each PARTY is responsible for their respective employee costs, including pay and benefits, support, and travel, and nothing herein shall be deemed as creating joint employment. Each PARTY is also responsible for supervising and managing its personnel until this MOU is activated. No PARTY will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by another PARTY to perform any services described in this MOU.
h) The PARTIES acknowledge and agree no PARTY shall be monetarily compensated under this MOU unless reimbursement is available due to an emergency or disaster declaration or proclamation. In the event reimbursement is available, claims will be submitted through applicable procedures and subject to the applicable laws, rules, and regulations.
i) Because this MOU is being entered into for the provision of emergency support services in the event of a disaster or emergency that causes activation and the need for said services to be provided to a PARTY EOC, the activating PARTY may seek County, State, and/or Federal financial assistance for this MOU.

Therefore, the parties shall comply with the terms and conditions set forth in the Federal Contract Provisions and Orders of Loca, State, and Federal Officials. g)

10. Authority to Execute Non -Substantive Amendments
a) Any PARTY's City Manager is authorized to enter an amendment on behalf of their City to make the following non -substantive modifications to the agreement:
(a) name changes, (b) extension of time, (c) non -monetary changes in scope of work, and/or (d) agreement termination.

IN WITNESS WHEREOF, the PARTIES hereto have caused this MOU to be executed the day and year set forth below.

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CITY OF INDIAN WELLS CITY OF PALM DESERT
By: By:

Chris Freeland, City Manager Chris Escobedo, City Manager ATTEST: ATTEST:

By: By:

Angelica Avila, City Clerk Anthony J. Mejia, City Clerk APPROVED AS TO FORM: APPROVES AS TO FORM:

By: By:

Todd Leishman, City Attorney

CITY OF RANCHO MIRAGE
By:

Isaiah Hagerman, City Manager
ATTEST:

By:

Kristie Ramos, City Clerk
APPROVED AS TO FORM:

By:

Colin Kirkpatrick, City Attorney

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ATTACHMENT "A"
Party Contact Information and Primary Points of Contact The primary points of contact in each PARTY will be responsible for the implementation of the MOU in their respective PARTY, coordinating activities between parties, and responding to questions regarding this MOU. In the event that the primary point of contact is no longer able to serve, a new contact will be designated, and the other parties will provide written notice of the change. When Attachment A is updated in writing, the revised Attachment A shall be inserted into this MOU and the MOU does not need to be signed again.

Relationship Manager Contact
The Relationship Manager is the person that works with the partner organization in developing and executing the MOU.

Riverside County Fire Department / CAL Fire
Contact
Mike Beverlin
Title
Deputy Chief — Eastern Operations
Cell Phone
(951) 591-9769
E-mail
[email protected]
Riverside County Sheriff's Department
Contact
Jason Sexton
Title
Captain — Palm Desert Station
Office Phone
760-836-1600
Cell Phone
E-mail
[email protected]
Riverside County Emergency Management
Contact
Yessica Prieto
Title
Emergency Services Coordinator

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Cell Phone
951-505-0598
E-mail
[email protected]
Operational Contact
The Operational Contact is the person each organization will call to initiate the disaster response activities as defined in this MOU.

City of Indian Wells Emergency Management
Contact
Eric Ceja
Title
Assistant City Manager
Office Phone
760-834-7780
Cell Phone
E-mail
[email protected]
City of Palm Desert Emergency Management
Contact
Daniel Hurtado
Title
Public Safety Coordinator
Office Phone
760-776-6414
Cell Phone
760-238-2578
E-mail
[email protected]
City of Rancho Mirage Emergency Management
Contact
Brian Kephart
Title
Emergency Manager
Office Phone
760-324-4511 EXT 296

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Cell Phone
760-275-3753
E-mail
[email protected]

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INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Supplemental Appropriation for Motorcycle Replacement and Repair

RECOMMENDED
ACTIONS:

Council APPROVES a supplemental Appropriation in an amount not to exceed $50,000 from the General Fund to fund the potential replacement of a Sheriff Department motorcycle; and
AUTHORIZES staff to evaluate repair options for the damaged motorcycle and proceed with the most cost-effective solution, including repair, replacement, or reassignment as a reserve unit; and
FINDS that the proposed enhancements are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

BACKGROUND:

The Indian Wells Sheriff Department (Riverside County Sheriff) utilizes a motorcycle unit to support traffic enforcement, special event operations, and community safety initiatives.

The motorcycle unit provides mobility, visibility, and operational flexibility that is not achievable with standard patrol vehicles.

On April 6, 2026, the motor deputy was involved in a traffic collision while operating a City -issued motorcycle. The deputy sustained minor injury. The motorcycle, a 2023 BMW model with approximately 20,000 miles, sustained visible damage and is currently out of service pending further evaluation.

DISCUSSION:

The extent of damage to the motorcycle is not fully known at this time. Preliminary observations indicate damage to exterior components, including fairings, and potential impacts to internal systems. To determine the full scope of repair, the motorcycle will be

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transported to an authorized BMW service provider for a comprehensive inspection and repair estimate.

Upon receipt of the repair estimate, staff will evaluate whether the repair is financially appropriate or whether replacement is the more cost-effective option. If repair is pursued, the motorcycle may be returned to service or retained as a reserve unit, depending on operational needs and condition.

Given the specialized nature of police motorcycles and extended procurement timelines, staff recommend initiating funding for a replacement unit concurrently. Current estimates indicate a replacement motorcycle will cost approximately $50,000, with an anticipated build and delivery timeframe of six to eight months.

To maintain operational readiness during this period, the Police Department is evaluating an existing reserve motorcycle to confirm that it is roadworthy and suitable for temporary deployment.

In addition, the Police Department is assessing the condition of the involved deputy's safety equipment, including helmet, boots, and protective clothing, to determine if replacement is necessary. Any required equipment replacement will be managed within existing departmental budgets or brought forward if additional funding is required.

The California Highway Patrol (CHP) collision report is pending. Upon completion, staff will evaluate any potential insurance recovery or claims process.

OPTIONS:

Council has the following options:

1. Approve the Supplemental Appropriation and authorize staff to proceed with repair evaluation and replacement planning.

2. Decline to appropriate funds at this time and defer action pending a finalized repair estimate.

3. Provide an alternative direction.

FISCAL IMPACT:

A Supplemental Appropriation in an amount not to exceed $50,000 is requested from the General Fund to fund the potential replacement of the motorcycle.

This appropriation provides flexibility to address the situation in a timely manner, given the uncertainty of repair costs and the extended procurement timeline for replacement units.

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Final costs will depend on the outcome of the repair estimate. If repair is determined to be the most cost-effective option, total expenditure may be lower than the requested appropriation. If replacement is pursued, the appropriation ensures funding is available to initiate procurement without delay.

An insurance claim has been filed with the California Joint Powers Insurance Authority (CJPIA) related to this incident. Staff will work with CJPIA to evaluate cost recovery. Any reimbursement received will offset the City's costs.

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INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Celebrity Course Rehabilitation Funding Agreement RECOMMENDED ACTIONS:

Council AUTHORIZES a Funding Agreement with Troon Golf to complete the rehabilitation of the Celebrity Course; and
APPROVES a Supplemental Appropriation of $880,000 from the Indian Wells Golf Resort Fund to fund initial design costs; and
APPROVES and AUTHORIZES the City Manager and City Attorney to finalize and execute all necessary agreements between the City and Troon Golf; and FINDS that the proposed enhancements are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

BACKGROUND:

The Indian Wells Golf Resort (IWGR) includes two 18 -hole championship golf courses:
the Clive Clark -designed Celebrity Course (opened November 2006) and the John Fought - designed Players Course (opened November 2007). Commonly referred to as "Beauty and the Beast," these courses have received national recognition as a premier municipal golf destination.

Through prior Council meetings and Strategic Planning discussions, the City Council identified the need to rehabilitate both facilities. In fall 2024, Council approved an agreement with Troon Golf to serve as the City's representative for the redesign and rehabilitation of the Players Course, which reopened in November 2025.

Troon Golf was selected based on its extensive experience managing and consulting on more than 750 golf properties worldwide. Its team provides expertise in construction management, agronomy, and course design, and successfully managed the Players Course rehabilitation on behalf of the City.

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The next phase of this long-term asset strategy is the rehabilitation of the Celebrity Course in 2027.

DISCUSSION:

The Celebrity Course is now approximately 20 years old and is experiencing expected wear across critical infrastructure, including irrigation systems, greens, bunkers, and tee boxes. Desert conditions place significant stress on turf and irrigation systems, accelerating deterioration and increasing ongoing maintenance demands.

From an agronomic perspective, aging greens can develop layering, compaction, and inconsistent root zones, which negatively impact drainage, firmness, and ball roll. Tee boxes often experience compaction and thinning turf coverage, reducing their ability to recover from daily play. Bunkers lose proper shape, sand consistency, and drainage performance, affecting both playa bility and maintenance efficiency.

Advancements in golf course design and agronomy over the past two decades now allow for improved turf performance, water efficiency, and long-term durability. Modern irrigation systems provide precise water application through centralized controls, moisture sensors, and improved distribution uniformity —resulting in healthier turf conditions with less water usage.

The proposed rehabilitation is focused on restoring and modernizing the core playing surfaces of the course. Improvements will primarily include reconstruction of greens and tee complexes, bunker renovation and drainage improvements, irrigation system replacement, and updated landscape enhancements consistent with the original course design intent. The project does not expand the course footprint or introduce new amenities, but instead restores the course to current industry standards.

The Celebrity Course is a nationally ranked golf facility that consistently commands premium greens fees due to its quality and reputation. These improvements are not intended to generate new revenue, but to preserve the course's existing standard of play and market position. Maintaining these standards is essential to sustaining demand, protecting pricing, and supporting the City's tourism -based economy.

The rehabilitation will occur in two phases:

Phase 1— Design and Pre -Construction
Troon will serve as the City's owner's representative and construction manager, and coordinate the engagement of the original course architect, Clive Clark, along with specialized consultants to prepare detailed site plans, irrigation design, and landscape improvements. Design professionals, including the course architect and specialty consultants, will contract directly with Troon as part of its project management

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responsibilities. As part of this role, Troon will solicit competitive bids from qualified contractors and oversee the procurement process, subject to City Council approval of the final project scope and budget. Upon completion of design, Troon will solicit competitive bids from qualified construction firms. Design professionals, including the course architect and specialty consultants, will contract directly with Troon as part of its project management responsibilities.

During Phase 1, golf course architect Clive Clark will present the proposed design to the Golf Resort Advisory Committee. The Committee will review the design in the context of playability, agronomic performance, operational efficiency, and overall alignment with the Golf Resort's long-term strategic vision. The Committee's role is advisory in nature and is intended to provide technical and user -based input to inform policy decisions.

Following this review, Mr. Clark will present the proposed design, along with any recommendations from the Golf Resort Advisory Committee, directly to the City Council for consideration. The City Council retains full and final authority over all aspects of the project, including the scope, design, budget, and timing, and may approve, modify, or reject any proposal prior to advancing to the bidding and construction phases.

Phase 2 — Construction (Future Council Action)
Troon will present bid results and project scope to the City Council for review and approval. The Council will retain full discretion to proceed with construction based on final costs and public input. Upon Council approval, Troon will manage contractor selection and oversee construction activities, while the City maintains oversight through approval authority, project monitoring, and regular reporting.

CITY COUNCIL STRATEGIC GOAL:

The completion of the rehabilitation of the Celebrity Course is an approved 2026 City Council Strategic Planning Goal.

OPTIONS:

Council has the following options:

1. Approve the Funding Agreement with Troon Golf and a Supplemental Appropriation in the amount of $880,000, including an $80,000 contingency for design and pre -construction services.

2. Decline to proceed with the rehabilitation at this time.

3. Provide an alternative direction.

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FISCAL IMPACT:

The estimated cost for the initial design phase is $880,000, including an $80,000 contingency, funded by the Indian Wells Golf Resort Fund. Final construction costs will be determined following completion of design and competitive bidding and will be presented to the City Council for consideration at a future meeting.

The Funding Agreement includes a project management fee payable to Troon equal to

0.5% of total project costs, inclusive of design and construction, which is consistent with industry standards for construction management services.

Design and pre -construction costs will be reimbursed to Troon on a progress basis in accordance with the terms of the Funding Agreement and subject to City review and approval of all invoices.

Funding for this project has been previously identified and will be formally presented to the City Council upon completion of the bidding process. The proposed funding plan provides $16.6 million and reflects prior Council direction, including the use of up to 20% of the ongoing General Fund surplus. The City Council retains full discretion to adjust funding sources and amounts during its review and approval of the final project budget.

The table below provides the proposed funding sources for capital construction:

Indian Wells Golf Resort
Funding by Source
Source
Amount Description
1 Golf Fund
$ 4,033,000 Beginning cash balanceFY2025-26
2 General Fund SJrplus
2,180,000 Council SJrplus Allocation for FY2024-25- Paid III y2025 3 Hotel Partner
3,000,000 Economic Development
4 Golf F bsort 3irpl us
130,000 FY2025-26 after Capital surplus (esti mated - Wi I I stay in fund) 5 FY2026-27 FOPS
3,000,000 80%Loan Fbpayment(will be paid July2026)
6 General Fund SrpI us
1,350,000 Council S rplusAlIocationforFY2025-26 (estimated paid inJuly2026) 7 FY2027-28 FOPS
1,440,000 80%Loan Fepayment (will be paid July2027)
8Golf FasortSirplus
130,000 FY2026-27 after Capital surplus(estimated- WIIstayinFund) 9 General Fund SrpI us
1,350,000 CounciI airpl us A I ocati on for FY2026-27 (estimated paid in July2027) $ 16, 613,000
An analysis of revenue impacts associated with the temporary closure of the Celebrity Course, along with any operational adjustments and expenditure shifts, will be incorporated into the Golf Resort's FY 2026-27 budget review to ensure full transparency of financial impacts.

As this project represents the rehabilitation of an existing asset, there is no direct or incremental return on investment (ROI) in the traditional sense. The project does not

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introduce new revenue streams; rather, it preserves the Celebrity Course's existing revenue -generating capacity.

This investment is best understood as protecting an existing revenue stream rather than generating a new one.

The Celebrity Course is a nationally ranked facility that attracts golfers willing to pay premium rates, contributing to golf operations revenue and supporting broader tourism activity within the City. Maintaining this level of quality is critical to sustaining current greens fee revenue, protecting the City's investment in its largest asset, and ensuring continued demand from regional and national markets.

In addition, modernization of the irrigation system is expected to reduce ongoing operating costs. Advances in irrigation technology allow for more precise water application, improved system efficiency, and reduced water loss. These improvements are expected to lower water consumption, reduce energy usage associated with pumping, and decrease maintenance costs over time, partially offsetting the long-term cost of the rehabilitation.

Troon and staff will also pursue available irrigation rebates and other funding opportunities to help reduce the overall project cost.

ATTACHMENTS:

1. Agreement with Troon Golf for Celebrity Course Rehabilitation

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ATTACHMENT #1
INDIAN WELLS RESORT 2026 CELEBRITY COURSE RENOVATION

FUNDING AGREEMENT
This Indian Wells Resort 2026 Celebrity Course Renovation Funding Agreement ("Funding Agreement"), effective April , 2026 (the "Effective Date"), is between the City of Indian Wells, a California municipal corporation and charter city ("City") and Troon Golf, L.L.C., a Delaware limited liability company ("Troon"), whose address is 15044 N. Scottsdale Road, Suite 300, Scottsdale, Arizona, 85254, with respect to the following:

Recitals
A. The City and Troon entered into a Golf Course Management Agreement, effective September 7, 2023 ("Management Agreement").1 Under the Management Agreement, Troon manages the City's Golf Resort. In that role, Troon sometimes oversees capital replacements and major capital improvements.

B. The City and Troon desire to undertake a redesign and refurbishment of the City's Celebrity Course at the Indian Wells Golf Resort (the "Celebrity Course"). The City has engaged Clive Clarke Design ("Clive Clarke") to provide a preliminary design and budget estimate for the Celebrity Course refurbishment, and Clive Clarke and other design professionals will contract directly with Troon for the redesign services (the "Design Services"). Following completion of the preliminary design and receipt of bids from qualified contractors, the parties intend to seek final approval from the City Council for the construction phase of the project.

C. Troon has expertise in golf -course construction projects, and Troon has offered to manage and oversee the design process, solicit bids from qualified designers, engineers, and contractors, and, upon City Council approval, oversee construction of the Celebrity Course refurbishment (the "Renovation Project"). Given Troon's expertise and familiarity with the Golf Resort and Celebrity Course, the City desires to use Troon to manage and oversee the Renovation Project.

D. The parties therefore desire to enter into this Funding Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby acknowledged, it is mutually understood and agreed by City and Troon as follows:

Terms and Conditions

1. Incorporation of Recitals; Documents. The parties hereby agree that the above recitals are true and correct and are therefore incorporated into this Funding Agreement. The Management

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Agreement is hereby incorporated into this Funding Agreement and governs the Renovation Project, except to the extent that there is any conflict between this Funding Agreement and the Management Agreement regarding the Renovation Project, in which case this Funding Agreement governs. The City Council must approve any material change in the scope of work, the project budget, or the Substantial Completion Date or Final Completion Date. Troon will provide the City with project updates at least twice a month and will include City representatives in weekly project meetings.

2. Design Phase; Preliminary Budget Estimate. Prior to soliciting construction bids, Troon will provide a preliminary design and project budget estimate for the Celebrity Course refurbishment (the "Preliminary Design Budget Estimate"). The Preliminary Design Budget Estimate will provide sufficient information and scope to prepare bid documents and proceed with the competitive bidding process. The City and Troon will endeavor to have the Preliminary Design Budget Estimate available for presentation to the City Council at its April 16, 2026 meeting, or such other meeting date as the City and Troon may agree. Clive Clarke and all other required design professionals will contract directly with Troon for the Design Services. The City will reimburse Troon for all reasonable design fees and related costs incurred by Troon in connection with the Design Services, subject to the City's prior written approval of any design fees or costs in excess of the amount included in the approved project budget. Troon will forward all design invoices to the City within one week of receipt and will certify that each invoice is accurate and proper.

3. Construction Phase; City Council Approval. Following completion of the Preliminary Design Budget Estimate and receipt of competitive construction bids, Troon will present the bid results and proposed project budget to the City Council for final approval. Construction of the Renovation Project shall not commence until the City Council has provided written approval of the project budget and scope. Upon City Council approval, and subject to Funding as set forth herein, Troon will manage, oversee and contract with selected contractors ("Contractor") for the Renovation Project, including, but not limited to, all labor, materials, equipment, tools, utility services, and transportation, in accordance with all local, state, and federal laws and regulations, as well as coordinating with the staff of City to arrange the required inspection of the Renovation Project including all costs and expenses therefor. City may, but is not obligated to, monitor the contracting process, and may, but is not obligated to, assist Troon as the City deems appropriate.

4. Award of Contracts. Troon will exercise due diligence in contracting the Contractors for construction and installation of the Renovation Project by the Substantial Completion Date and Final Completion Date (as defined herein). Troon is solely responsible for securing appropriate bids and awarding contracts for construction and installation of the Renovation Project. Troon will obtain bids from qualified and properly licensed, insured, and bonded contractors reasonably approved by City for construction of the Renovation Project. The City will not charge for inspections or permits. In the event Troon is unable to successfully enter into contracts with contractors to complete the Renovation Project on the terms described herein, this Agreement shall be immediately void and have no legal effect and both parties shall be excused from performing the obligations contained herein.

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5. Bonds.
(a) Before construction of the Renovation Project starts, Troon will cause each construction Contractor to provide Troon with a faithful performance bond and a payment bond (and accompanying multiple obligee rider) substantially in the form set forth in Exhibit A, in an amount equal to no less than 100 percent of the total cost of that Contractor's portion of the Renovation Project. The bonds must be provided by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, authorized to do business in the State of California and reasonably satisfactory to the City. The faithful performance and payment bonds must also expressly list Troon and City as dual -obligees thereunder. For the avoidance of doubt, Troon has no obligation to obtain a bond for its services under this Funding Agreement.
(b) In lieu of the bonding requirements in Section 5(a), each design professional engaged by Troon in connection with the Renovation Project, including Clive Clarke and any engineer, landscape architect, or other consultant, will be required to maintain professional liability (errors and omissions) insurance in amounts reasonably satisfactory to the City and consistent with the insurance requirements of the Management Agreement. Troon will ensure that the City is named as an additional insured on each such policy to the extent permitted by the applicable insurer.

6. Renovation Project Completion Dates; Contractor Remedies for Delay. (a) Through its contracts with the Contractors, Troon will require the Contractors to substantially complete their respective portions of the Project on or before dates to be determined by the parties upon City Council approval of the construction budget ("Substantial Completion Date") and to complete all remaining punch -list items within 30 days thereafter ("Final Completion Date"). Time is of the essence in this Funding Agreement, and Troon will ensure that time is expressly stated to be of the essence in its contracts with the Contractors.
(b) Troon will include in the golf course renovation construction contract a specific grassing completion date. In the event the golf course renovation Contractor fails to complete all required grassing by the specified grassing completion date, such Contractor shall, at no additional cost to the City or Troon, install sod on all portions of the golf course not yet grassed by that date. The parties acknowledge that sod typically reaches a playable condition within approximately 30 days of installation, and this remedy is intended to ensure that the Celebrity Course is available for play on schedule regardless of seeding delays. This grassing completion requirement applies only to the golf course renovation contract and not to any other contracts for work on the Renovation Project, including but not limited to lake dredging and landscaping contracts.

7. Construction Costs and Project Management Fee.

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(a) Project Management Fee. In addition to reimbursement of Troon's actual out-of- pocket expenses, the City will pay Troon a project management fee equal to one-half of one percent (0.5%) of the total project cost, inclusive of design fees and construction costs (the "Project Management Fee"). The Project Management Fee shall be due and payable upon acceptance of the completed Renovation Project by the City. (b) Expense Reimbursement. City will reimburse Troon for Troon's actual, documented expenses incurred in connection with the Renovation Project, including but not limited to design fees paid to Clive Clarke and other consultants, bidding costs, and project oversight costs ("Expense Reimbursement"). Any single expense item in excess of 0,000.00 must be pre -approved in writing by the City Manager. City will pay the Expense Reimbursement to Troon upon acceptance of the completed Renovation Project, or on such progress schedule as the parties may mutually agree.
(c) Travel Expenses. City will reimburse Troon for Troon's actual, reasonable travel expenses incurred by Troon's personnel in connection with oversight and management of the Renovation Project, not to exceed 0,000.00 in the aggregate ("Travel Expense Cap").

Troon will document all travel expenses and submit them to the City in accordance with the invoice procedures in Section 7(e). City will pay travel expense reimbursements to Troon upon acceptance of the completed Renovation Project, or on such progress schedule as the parties may mutually agree.
(d) Design Professional Contingency. In addition to reimbursement of actual design fees, the City will make available a design professional contingency in the amount of 0,000.00 (the "Design Contingency") to cover unforeseen design -related costs, scope adjustments, and miscellaneous design expenses arising during the Design Phase. Troon may draw on the Design Contingency only with the prior written approval of the City Manager for each draw. Any unused portion of the Design Contingency shall remain with the City upon completion of the Design Phase.
(e) Construction Costs. City will fund the actual design and construction costs of completing the Renovation Project, subject to any authorized change orders ("Funding Agreement Price"), as approved by the City Council. Troon has no obligation to fund or pay the Contractors using its own funds for material or services for the Renovation Project.

Any increase in material or other construction costs must be approved by the City through the change -order process described in this Funding Agreement. Troon waives any right to reimbursement for the Renovation Project except as contained in this Funding Agreement. (f) Additional Costs. Any additional costs for consultation or for landscaping beyond the scope of the project or other costs beyond the Funding Agreement Price must be authorized in writing by the City Manager before they are incurred by a contractor engaged by Troon.

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(g) Accurate Invoices. Within one week of Troon's receipt of an invoice from any Contractor for material or a service for the Renovation Project, Troon will forward the invoice to the City. By sending an invoice to the City, Troon certifies that the invoice is accurate and proper, and that the invoiced material or service is in accordance with the approved plans. Troon will, through its contracts with the Contractors, ensure that the Contractors will provide to Troon and the City any document or information in the Contractor's possession or under the Contractor's control that the City may reasonably request with regard to the Renovation Project. Additionally, Troon will require the Contractors to provide Troon and the City with labor and material releases from all contractors performing work on, or furnishing materials for, the Renovation Project prior to final payment by City.
(h) Funds Transfer. The City will review each invoice submitted by Troon and if there is no dispute as to the accuracy of the invoice, it will transfer the invoiced amount to a new special -projects account for the Golf Resort (to which Troon will have access) within five business days of receipt. If Troon or the City disputes the accuracy of an invoice, Troon will give the Contractor written notice of the dispute as soon as practicable. Thereafter, Troon will meet and confer with the Contractor in good faith within five days of the notice to resolve the dispute.

8. Billings; Records. Troon will maintain complete and accurate records with respect to all costs and expenses pertaining to this Funding Agreement. All such records must be clearly identifiable. Troon will allow a representative of City, during normal business hours, to examine, audit, and make transcripts or copies of such records and any other documents, proceedings, and activities related to the Funding Agreement for a period of three years from the termination of this Funding Agreement.

9. Differing Site Conditions.
(a) A Differing Site Condition for purposes of this Funding Agreement means any of the following conditions:
(i) Material that the Contractor demonstrates may be hazardous waste, as defined in section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law;
(ii) Subsurface or latent physical conditions at the Renovation Project site differing from those indicated in the approved plans; or
(iii) Unknown physical conditions at the Renovation Project site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the approved plans. (b) By contract, Troon will ensure that the Contractor notifies Troon and the City within seven calendar days of discovering a Differing Site Condition. City and Troon will promptly investigate the conditions, and if the City finds that the conditions do constitute a Differing Site Condition that causes a decrease or increase in the Contractor's cost of, or

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time required for, performance of any part of the Renovation Project, the City may issue a change order under the procedures described in this Funding Agreement. (c) If a dispute arises between the Contractor and Troon or City as to whether conditions constitute a Differing Site Condition that causes a decrease or increase in Contractor's cost of, or time required for, performance of any part of the Renovation Project, Troon will by contract ensure that the Contractor must use commercially reasonable efforts to proceed with all work to be performed to complete the Renovation Project as soon as possible.

10. Change Orders.
(a) All changes to the project scope, cost, or timing, including compensation increases and time extensions, must be through a written change order in accordance with this Section.

Troon will by contract ensure that no dispute, disagreement, or failure of the parties to reach agreement on the terms of a change order relieves the Contractor from the obligation to proceed with performance of the work promptly and expeditiously. (b) The Funding Agreement Price may not be modified except in the event of the following circumstances:
(i) The City directs and authorizes a change which is related solely to City discretionary changes (the foregoing excludes changes resulting from the acts, omissions or other conduct of Troon);
(ii) Differing Site Conditions encountered by Contractor; (iii) Changes are directed by a governmental agency with jurisdiction over the Renovation Project or portions thereof, that could not have been reasonably foreseen or anticipated by Contractor prior to entering into the construction agreement;
(iv) Changes are necessitated by amendment to or enactment of applicable federal, state, or local laws that could not have been reasonably anticipated or foreseen by Troon prior to entering into this Funding Agreement; or (v) Changes resulting from emergencies not caused, in whole or in part, by an act, omission, or other conduct of Troon or its employees, agents, or representatives. (c) No extension of the Substantial Completion Date or Final Completion Date is allowed unless, and then only to the extent that, the delay is related to one of the circumstances set forth above and extends the critical path beyond the respective Completion Date. Troon will by contract ensure that liability to the Contractor for delays for which the City or Troon is responsible is limited to only an extension of time unless such delays were unreasonable under the circumstances.
(d) City may direct changes in the Renovation Project by delivering a written directive to Troon, which Troon will forward to the Contractor. Troon will by contract ensure that: (i) to the extent that a work directive results in a change to compensation or time, the Contractor must request a change order within seven calendar days of the written directive; (ii) notwithstanding issuance of a work directive, the Contractor's failure to timely request a change order constitutes a waiver by the Contractor of any adjustment to compensation or time extension for work performed under the directive; (iii) the City is not liable to the Contractor for work performed or omitted by Contractor or Troon in reliance on verbal

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orders; and (iv) the City may order changes in the work by a unilateral change order setting forth City's determination of the reasonable additions or savings in the contract price or contract time.
(e) Troon will by contract require the Contractor to accompany each request for a change order with detailed supporting documentation, including but not limited to payroll records, invoices, schedules, and any other documentation requested by City for the purpose of determining the additional costs or the impact of any delay. Nothing herein prevents the parties from agreeing to a lump sum cost.

11. Standard of Care; Safety. Troon will ensure that the contracts with the Contractors require the following:
(a) All work on the Renovation Project is performed in substantial compliance with the approved plans and this Funding Agreement subject to modifications approved by Troon and City, and that all work is performed in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals and contractors in the same discipline in the State of California. For clarity, in accordance with standard practices in golf -course development, and given the aesthetic and design components inherent in such projects, the Project will be developed in substantial compliance with the approved plans, though not necessarily in exact compliance. Neither Troon nor the City will authorize the golf -course designer to implement any design modification that would increase either the contract price or the project duration unless the change was first approved in writing by both Troon and the City.
(b) All employees and subcontractors working on the Renovation Project must have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform such work on the Renovation Project, and all such licenses and approvals must be maintained throughout the term of their work on the Renovation Project. (c) Each Contractor will execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the work, each Contractor must at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. (d) Any employee who is determined by Troon or the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Renovation Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform his or her work in a manner acceptable to the City, must be promptly removed from the Renovation Project.

12. Control and Payment of Subordinates; Independent Contractor. All work on the Renovation Project must be performed under Troon's supervision. Troon and the Contractors will each determine the means, methods and details of performing its work subject to the requirements of this Funding Agreement. The City retains Troon on an independent -contractor basis and not as an employee. Troon will by contract ensure that the Contractors perform work as independent contractors and not as employees of the City. Any additional person performing

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work under this Funding Agreement on behalf of Troon or the Contractors is also not an employee of City, and must at all times be under the exclusive direction and control of Troon or the Contractors. All wages, salaries and other amounts due such personnel in connection with their performance of work under this Funding Agreement and as required by law must be paid by Troon or the Contractors. Such entities are responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. For the avoidance of doubt, Troon's role in the Renovation Project is that of a project manager and not a general contractor.

13. Regular Reporting. Troon will provide the City with a status report of the Renovation Project at least twice a month.

14. Inspection and Transfer of Renovation Project. City may inspect and test the Renovation Project. City must have access to the Renovation Project site at all times to conduct any tests or inspections. Troon will require its employees, contractors and agents to comply with all instructions given by the City during inspection of the Renovation Project. Any deficiency in the Renovation Project must be corrected by the applicable Contractor at its sole cost and expense.

Upon completion of the Renovation Project to the satisfaction of the City, the Renovation Project must be presented to the City for acceptance. The City will accept the Renovation Project if it determines that it was constructed in accordance with the approved plans, all unconditional waivers and releases of mechanics' liens have been provided, and that all other requirements of this Funding Agreement have been satisfied. Upon acceptance of the Renovation Project, Troon will assign to City all of Troon's rights and remedies, including warranties, as set forth in the contract documents with the Contractors to complete the Renovation Project.

15. Liability for Renovation Project Prior to Acceptance. Until acceptance of the Renovation Project by City, Troon will by contract ensure that the Contractors remain solely responsible for all damage to the Renovation Project, regardless of cause, and for all damages or injuries to any person or property at the work site, except damage or injury due to the sole or active negligence or willful misconduct of the City, its agents or employees.

16. Guarantee. Troon will by contract ensure the following:
(a) That the Contractors guarantee all work and materials for the Renovation Project to be free from all defects due to faulty materials or workmanship for a period of one year after the date of the acceptance of the Renovation Project by City. (b) That the Contractors will repair or remove and replace any and all such work, together with any other work that may be displaced in so doing, that is found to be defective in workmanship or materials within the one-year period, without any expense whatsoever to the City.
(c) That if any Contractor fails to comply with the above -mentioned provisions within 30 days after being notified in writing (or in cases of emergency, immediately), City is

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authorized to proceed to have the defects remedied and made good at the sole cost and expense of that Contractor, who must be contractually bound to pay the costs and charges therefor immediately upon demand. Such action by the City will not relieve the Contractor of the guarantee required by this section. This section does not, in any way, limit the liability of the Contractor or any other party for any latent and patent design or construction defect in the work that is subsequently discovered by City.

17. Record Drawings. Troon will by contract require that the construction Contractors provide the City with one copy of accurate record drawings showing as -built conditions prior to acceptance of the Renovation Project by the City.

18. Labor/Prevailing Wages. Troon will by contract ensure that construction Contractors are aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., and the implementing regulations promulgated thereunder (collectively, "Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements if it is determined that the Renovation Project is a "public works" project under the Prevailing Wage Laws. Troon will by contract ensure that the construction Contractors and each of their subcontractors hired to construct the Renovation Project comply with all applicable requirements of the Prevailing Wage Laws. Troon will by contract require that the construction Contractors defend, indemnify, and hold Troon and the City and its officials, officers, employees, and agents free and harmless from any claim or liability including, without limitation, damages, penalties, attorneys' fees and court costs, arising from any Contractor's failure or alleged failure to comply with these provisions of the Labor Code, including the Prevailing Wage Laws.

19. Indemnification. Troon will by contract ensure that the Contractors indemnify, defend, and hold harmless Troon and the City and its officials, officers, employees, agents and volunteers.

For the avoidance of doubt, Troon has no indemnity obligations to the City, except as to its own negligence. Nothing in this Funding Agreement limits Troon's indemnity obligations under the Management Agreement.

20. Insurance.
(a) Troon will by contract require all persons performing construction work on the Renovation Project, including the construction Contractors, their subcontractors, and suppliers, to procure and maintain, at their expense, until full and adequate completion of the Renovation Project, insurance against claims for injuries to persons or damages to property which may arise out of or in connection with the performance of their work or that of their agents, representatives, employees or subcontractors, pursuant to the insurance requirements in the Management Agreement.
(b) Troon will by contract require each design professional engaged in connection with the Renovation Project to maintain professional liability (errors and omissions) insurance in amounts reasonably satisfactory to the City. Troon will use commercially reasonable

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efforts to ensure that the City is named as an additional insured on each such policy to the extent permitted by the applicable insurer.
(c) For the avoidance of doubt, Troon is not required to procure or maintain insurance specific to the Renovation Project, except that Troon will obtain builder's risk insurance as a Project cost, contingent on the City giving prior written approval of the associated expense. Nothing in this Funding Agreement limits Troon's insurance obligations under the Management Agreement.

21. Third -Party Beneficiary. City will not be a party to any contract between Troon and the Contractors, but Troon must include a short statement in each of its contracts indicating that the City is an expressly intended third -party beneficiary.

22. Termination. If either party defaults in the performance of any of its obligations under this Funding Agreement, or materially breaches any of the provisions of this Funding Agreement, the other party has the option to terminate this Funding Agreement giving 30 -day prior written notice to the defaulting party.

23. Integration. This Funding Agreement represents the entire understanding of City and Troon as to those matters contained herein, and supersedes and cancels any prior oral or written understanding, promises, or representations with respect to those matters covered hereunder.

24. Assignment. In no event may Troon assign or transfer any portion of this Funding Agreement without the prior express written consent of City, which consent may be given or withheld in City's sole discretion.

SIGNATURE PAGE TO INDIAN WELLS RESORT 2026 CELEBRITY COURSE

RENOVATION FUNDING AGREEMENT
IN WITNESS WHEREOF, the parties have executed this Funding Agreement as of the dates set forth below.

TROON GOLF, LLC, the City of INDIAN WELLS,
a Delaware limited liability company a California municipal corporation By: By:

Name:

Its:

Name:

Its:

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Date: Date:

ATTESTED TO:

By:

City Clerk
Approved as to Form:

Best Best & Krieger LLP
By:

City Attorney
1 Capitalized terms in this Funding Agreement have the same meaning as in the Management Agreement, unless otherwise indicated.

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EXHIBIT A

FORM OF PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the Troon Golf, LLC (hereinafter referred to as "Troon") has awarded to (hereinafter referred to as the "Contractor") an agreement for (hereinafter referred to as the "Project").

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated (hereinafter referred to as "Contract Documents"), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by the Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of the Contract Documents.

NOW, THEREFORE, we, , the undersigned Contractor and
as Surety, a corporation organized and duly authorized
to transact business under the laws of the State of California, are held and firmly bound unto the Troon in the sum of DOLLARS, (), the sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the Troon, its officers and agents, as stipulated in the Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a condition precedent to the satisfactory completion of the Project, unless otherwise provided for in the Contract Documents, the guarantee obligation shall hold good for a period of one (1) year after the acceptance of the work by Troon, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect Troon from loss or damage resulting from or caused by defective materials or faulty workmanship the above obligation in penal sum thereof shall remain in full force and effect. However, anything in this

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paragraph to the contrary notwithstanding, the obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit Troon's rights or the Contractor or Surety's obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees including reasonable attorney's fees, incurred by Troon in enforcing such obligation.

Whenever Contractor shall be, and is declared by Troon to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at Troon's option:

1. Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or

2. Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and Troon, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable.

3. Permit Troon to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable.

Surety expressly agrees that Troon may reject any contractor or subcontractor that may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.

Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if Troon, when declaring the Contractor in default, notifies Surety of Troon's objection to Contractor's further participation in the completion of the Project.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract to be performed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of Contract, including but not limited to the provisions of Sections 2819 and 2845 of the California Civil Code.

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IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of 20 CONTRACTOR/PRINCIPAL
Name
By
SURETY:

By:

Attorney -In -Fact
Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached.

The rate of premium on this bond is per thousand. The total amount of premium charges, .
(The above must be filled in by corporate attorney.)

THIS IS A REQUIRED FORM
Any claims under this bond may be addressed to:
(Name and Address of Surety)
(Name and Address of Agent or Representative for service of process in California, if different from above)

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(Telephone number of Surety and Agent or Representative for service of process in California)

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FORM OF PAYMENT BOND (LABOR AND MATERIALS)
KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the Troon Golf, LLC (hereinafter designated as the "Troon"), has awarded to hereinafter designated as the "Principal," a contract for the work described as follows: Contract No. (the "Project"); and WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated (hereinafter referred to as "Contract Documents"), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and as Surety, are held and firmly bound unto the Troon in the penal sum of Dollars O lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Revenue and Taxation Code Section 18663, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the Troon in such suit, including reasonable attorneys' fees, court costs, expert witness fees and investigation expenses.

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This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100 so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or the Troon and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Civil Code Section 9100, and has not been paid the full amount of his claim.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract to be performed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of Contract, including but not limited to, the provisions of Sections 2819 and 2845 of the California Civil Code.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of 20 (Corporate Seal)
Contractor/Principal
By
Title
(Corporate Seal)
Surety

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By:

Attorney -in -Fact
(Attach Attorney -in -Fact Certificate) Title

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INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Shots in the Night Profit Center Enhancement — Artificial Turf Conversion
RECOMMENDED ACTIONS:

Council AUTHORIZES a Funding Agreement with Troon Golf to serve as the City's owner's representative to oversee design and construction of the Shots in the Night improvements; and
APPROVES improvements to the Shots in the Night profit center, including conversion of the existing putting course to an artificial turf facility; and APPROVES a Supplemental Appropriation of $800,000 from the Indian Wells Golf Resort Fund for design and construction; and
APPROVES and AUTHORIZES the City Manager and City Attorney to finalize and execute all necessary agreements between the City and Troon Golf; and FINDS that the proposed enhancements are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

BACKGROUND:

In September 2022, the City Council approved enhancements to the Shots in the Night entertainment program to expand the Indian Wells Golf Resort's (IWGR) revenue base beyond traditional golf operations.

Shots in the Night has matured into one of the Golf Resort's most efficient revenue - generating programs, consistently producing strong revenues and operating margins.

Recent performance reflects annual revenues of approximately $736,000 to $790,000, with net operating income ranging from approximately $295,000 to $410,000.

The current putting experience relies on an aging laser -based system that is no longer fully operational and cannot be maintained, as the original vendor is no longer in business.

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As a result, the existing system limits both functionality and the long-term growth potential of the program.

DISCUSSION:

Next Evolution of the Profit Center
The proposed project represents the next phase in the evolution of the Shots in the Night program. The existing system will be replaced with a modern artificial turf putting course designed to operate during both daytime and nighttime hours, transforming the facility from a time -limited attraction into a full -day revenue -generating amenity.

This transition significantly expands the program's utilization and revenue potential by allowing IWGR to activate the space throughout the day for resort guests, public play, corporate and group events, and family -oriented programming, while also increasing food and beverage activity associated with the venue.

The scope of the project includes demolition of the existing putting system and construction of a new artificial turf putting course facility of approximately 16,000 to 25,000 square feet. Improvements will include the installation of engineered base materials, high -quality artificial putting surfaces, and the shaping of greens, contours, and play features to create a golf -oriented experience. Additional elements include fringe and bunker -style features, new cups and pins, and integration with the existing entertainment and food and beverage areas.

Artificial turf systems provide consistent playing conditions and durability under high traffic, while significantly reducing maintenance requirements compared to natural turf systems. This results in improved playability, increased operational reliability, and reduced long-term operating costs.

Consistent with the City's approach on the Celebrity Course rehabilitation project, the City will enter into an agreement with Troon Golf to serve as the owner's representative. In this role, Troon will coordinate design development, oversee construction planning and execution, solicit competitive bids from qualified contractors, and provide overall project management to ensure alignment with operational goals and long-term facility performance.

Collectively, these improvements position Shots in the Night as a more versatile and scalable entertainment amenity, aligned with the Golf Resort's strategy to diversify revenue streams and enhance the overall guest experience.

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OPTIONS:

Council has the following options:

1. Approve the project and associated funding agreement with Troon Golf.

2. Decline to proceed with improvements.

3. Provide an alternative direction.

FISCAL IMPACT:

The estimated project cost, based on current proposals and planning -level estimates, is $800,000 and requires a supplemental appropriation. Conversion to an artificial turf facility is expected to reduce ongoing operating costs associated with natural turf maintenance. These savings include reductions in labor, water use, chemicals, seed, and general maintenance, totaling approximately $40,000 in annual savings.

Funding for this project has been previously identified. The proposed funding plan provides $16.6 million and reflects prior Council direction, including the use of up to 20% of the ongoing General Fund surplus. The City Council retains full discretion to adjust funding sources and amounts during its review and approval of the final project budget.

The table below provides the proposed funding sources for capital construction:

Indian Wells Golf Resort
Funding by Source
Source
Amount
Description
1 Golf Fund
$ 4,033,000
Beginning cash balance FY 2025-26
2 General Fund Surplus
2,180,000
Council Surplus Allocation for FY2024-25- Paid July 2025 3 Hotel Partner
3,000,000
Economic Development
4 Golf Resort Surplus
130,000
FY 2025-26 after Capital surplus (estimated - Will stay in fund) 5 FY2026-27ROPS
3,000,000
80% Loan Repayment (will be paid July 2026)
6 General Fund Surplus
1,350,000
Council Surplus Allocation for FY 2025-26 (estimated paid in July 2026) 7 FY2027-28 ROPS
1,440,000
80% Loan Repayment (will be paid July2027)
8 Golf Resort Surplus
130,000
FY 2026-27 after Capital surplus (estimated - Will stay in Fund) 9 General Fund Surplus
1,350,000
Council Surplus Allocation for FY 2026-27 (estimated paid in July 2027) $ 16,613,000
The primary financial benefit of this project is increased revenue from expanded utilization. The Shots in the Night program currently generates approximately $750,000 in annual revenue, operating primarily during evening hours. The proposed improvements will allow the facility to operate during both daytime and nighttime periods, effectively increasing available operating hours and expanding the types of programming the space can support.

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Staff's estimated revenue growth range of 25% to 40% is based on three factors. • First, the ability to activate the facility during daytime hours introduces a new revenue window that does not currently exist.
• Second, the upgraded artificial turf putting course provides a more traditional and intuitive golf experience, which is expected to broaden appeal to resort guests, group events, and casual users compared to the existing laser -based system. • Third, the improved facility is better suited for corporate events, hotel partnerships, and group bookings, which historically generate higher per -visit spending and increased food and beverage activity.

Based on these combined factors extended operating hours, improved product quality, and increased event -driven demand —staff believes a 25% to 40% increase in annual revenue represents a reasonable and conservative planning range.

Based on the program's historical performance, which reflects an approximate 30% flow - through on revenue, this increase is expected to generate incremental net operating income of approximately $57,000 to $90,000 annually. When combined with operating cost savings, the total annual financial benefit is estimated to range from approximately $97,000 to $130,000.

Based on these assumptions, the project is expected to achieve a payback period of approximately five to nine years. This analysis is conservative and does not include additional upside from expanded event bookings, increased food and beverage sales, or potential premium pricing opportunities associated with the enhanced facility.

Overall, this project converts an already successful program into a full -day revenue - generating asset while improving operational efficiency and long-term revenue capacity.

Troon and staff will also seek a Coachella Valley Water District Turf Rebate which may provide up to $2 per square feet for the removal of irrigated turf (Approximately 17,000 square feet).

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INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Special Event Pavilion Kitchen Design and Planning Agreement
RECOMMENDED ACTIONS:

Council AUTHORIZES a Funding Agreement with Troon Golf to oversee the design and planning of improvements to the Special Event Pavilion, including a new banquet/service kitchen; and
APPROVES a Supplemental Appropriation of $75,000 from the Indian Wells Golf Resort Fund for design and pre -construction services; and
APPROVES and AUTHORIZES the City Manager and City Attorney to finalize and execute all necessary agreements between the City and Troon Golf; and FINDS that the proposed enhancements are exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

BACKGROUND:

The Indian Wells Golf Resort (IWGR) Special Event Pavilion is a key component of the City's hospitality and event operations, supporting weddings, tournaments, corporate events, and community functions. The facility plays an important role in enhancing the overall guest experience and reinforcing Indian Wells as a premier destination.

During recent Strategic Planning discussions, the City Council identified improvements to the Pavilion —specifically the addition of a functional banquet/service kitchen —as a priority to enhance operations, improve service levels, and support the venue's long-term viability.

The existing Pavilion operates with limited back -of -house functionality, requiring temporary or supplemental food service arrangements. Currently, food is prepared in Kestrel's kitchen and transferred to the pavilion for special events. This constraint limits

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operational efficiency, increases event setup complexity, and restricts the Pavilion's ability to fully meet market expectations for high -quality event venues.

To advance this Council goal, the City requested proposals for professional design services to evaluate options, prepare conceptual and schematic designs, and establish a clear path forward for future construction.

DISCUSSION:

The proposed project includes the design and planning of improvements to the Special Event Pavilion, with a primary focus on the addition of a banquet/service kitchen and supporting back -of -house enhancements.

Consistent with prior IWGR capital projects, Troon Golf will serve as the City's owner's representative, coordinating design professionals, managing the design process, and ensuring alignment with operational needs and industry best practices.

Troon has developed preliminary estimates for the design phase based on industry experience and initial project scoping. As part of this process, Troon will engage qualified design professionals and coordinate the development of conceptual and schematic plans necessary to define the project.

The project will follow a two-step process, consistent with the City's approach to other IWGR capital improvements:

Step 1 — Design and Pre -Construction (Current Action)
The City will fund design and planning services to develop conceptual and schematic plans, refine project scope, and prepare the project for formal bidding. As part of this phase, Troon will conduct a competitive procurement process to solicit bids from qualified contractors and establish accurate construction costs.

Step 2 — Construction (Future Council Action)
Upon completion of design and receipt of bids, staff will return to the City Council with detailed project costs, scope, and implementation options. The Council will retain full discretion to approve, modify, or decline the project based on final information and public input.

This phased approach ensures that the Council has complete cost transparency and control prior to committing construction funding.

This project is not intended to generate new revenue, but to improve guest experience, increase operational efficiency, elevate service delivery, and maintain the Pavilion's competitiveness as a regional event venue. The addition of a dedicated service kitchen is

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expected to streamline event operations, reduce reliance on temporary infrastructure, improve staff workflow, and create a more consistent service standard across all events.

CITY COUNCIL STRATEGIC GOAL:

The completion of a banquet kitchen design at the Special Event Pavillion is an approved 2026 City Council Strategic Planning Goal.

OPTIONS:

Council has the following options:

1. Approve the agreement with Troon Golf and the associated Supplemental Appropriation to proceed with design and planning services.

2. Decline to proceed with the design effort at this time.

3. Provide an alternative direction.

FISCAL IMPACT:

The estimated cost for the design and planning phase is $75,000, based on preliminary project scoping and industry benchmarks. A Supplemental Appropriation of $75,000 from the Indian Wells Golf Resort Fund is required to fund these design services. This initial appropriation funds only the design and pre -construction phase of the project. No construction funding is included or authorized at this time.

The table below provides the proposed funding sources for capital construction:

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As this phase is limited to planning and design, there is no direct or measurable return on investment (ROI). Instead, this effort advances a City Council strategic priority and positions the City to make a fully informed decision once final project costs are established through a competitive bidding process.

Upon completion of design and receipt of formal bids, staff will return to the City Council for consideration of construction funding, at which time the full financial impact of the project will be evaluated.

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INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Annual Levy and Engineer's Report for the Indian Wells Street Lighting District No. 2000-1 for Fiscal Year 2026-27 RECOMMENDED ACTIONS:

Council OPENS the Public Hearing, takes any public testimony, CLOSES the Public Hearing; and
ADOPTS Resolution approving the annual levy and ordering the levy and collection of assessments of the Indian Wells Street Lighting District No. 2000-1 for Fiscal Year 2026- 27; and
ORDERS the Indian Wells Street Lighting District No. 2000-1 levy to be placed on the Fiscal Year 2026-27 Riverside County tax roll; and
FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

BACKGROUND:

Each year, the City Council conducts a public hearing to review and take action on the costs associated with operating and maintaining the Indian Wells Street Lighting District No. 2001-01. This hearing ensures transparency, fiscal accountability, and compliance with applicable legal and regulatory requirements. The Engineer's Report, attached to this staff report, provides a detailed budget outlining the total projected expenditures, anticipated revenues, and the scope of maintenance services required to sustain the District's street lighting infrastructure at optimal levels.

The City is responsible for levying the annual lighting and maintenance assessment in accordance with the Landscape and Lighting Act of 1972 and the procedural requirements established under Proposition 218. These assessments ensure that property owners within the District contribute proportionally to the costs of maintaining street lighting services that enhance public safety, visibility, and overall neighborhood aesthetics.

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The Indian Wells Street Lighting District No. 2001-01 encompasses a defined geographic area, extending from the southwest corner of Fred Waring Drive and Warner Trail, continuing through Blackfoot Drive, Dakota Trail, Arapahoe Vista, and Elkhorn Trail. The District was originally part of Riverside County's County Service Area 121 (CSA 121), which was established to provide street lighting services to a portion of the Village area.

Following the City's annexation of this area, CSA 121 was detached, and the Indian Wells Street Lighting District No. 2001-01 was formally created to ensure continued management and funding for street lighting services within the annexed region. The City remains responsible for administering and collecting the annual assessments necessary to sustain these operations, ensuring compliance with state -mandated assessment district requirements.

FISCAL IMPACT:

There is no direct fiscal impact on the City's General Fund, as the revenues generated from the annual levy are designated exclusively for the operation and maintenance of the Indian Wells Street Lighting District No. 2001-01. These funds are segregated from the City's discretionary revenues and are recorded in a dedicated Special Revenue Fund to ensure compliance with governmental accounting standards and assessment district regulations.

The annual levy for the District is $47.74 per assessed parcel, an amount that remains unchanged from the prior fiscal year. The City anticipates collecting a total of $2,339 in revenue from forty-nine assessed parcels within the District. These funds are restricted for use solely within the District and are allocated to cover essential expenses, including street lighting maintenance, electricity costs, and operational expenditures necessary to ensure the continued functionality and reliability of the District's lighting infrastructure.

By maintaining a self-sustaining funding structure, the District can operate without imposing any financial burden on the City's General Fund while preserving public safety and visibility within the assessed area.

OPTIONS:

1. Approve the annual levy for the Indian Wells Street Lighting District No. 2000-01 for Fiscal Year 2026-27.

2. Decide against approving the annual levy.

3. Provide alternative instructions to staff.

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CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that the ordinance is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a "project" as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. Resolution- Approval of Engineer Report and Ordering the Levy

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ATTACHMENT #1
RESOLUTION NO. 2026-_

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIAN WELLS,

CALIFORNIA, AMENDING AND/OR APPROVING THE FINAL ANNUAL
LEVY REPORT FOR STREET LIGHTING DISTRICT NO. 2000-1 FOR THE FISCAL YEAR 2026-27 AND ORDERING THE LEVY AND COLLECTION OF

ASSESSMENTS RELATED THERETO
WHEREAS, the City Council of the City of Indian Wells, California (the "City Council") has, by previous resolutions, ordered the preparation of the Engineer's Annual Levy Report (the "Report") for said district known and designated as:

Indian Wells Street Lighting District No. 2000-1
(the "District") pursuant to the provisions of Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (the "Act"); and
WHEREAS, there has now been presented to this City Council the Report as required by Chapter 3, Section 22623 of said Act and as previously directed by resolution; and WHEREAS, the District and the associated assessments are in compliance with the provisions of California Constitution Articles XIIIC and XIIID; and WHEREAS, this City Council has carefully examined and reviewed the Report as presented (or amended) and is satisfied with each and all the items and documents as set forth therein and is satisfied that the levy has been spread in accordance with the benefits received from the improvements, operation, maintenance, and services to be performed as set forth in said Report; and
WHEREAS, the City Council has by previous resolutions -initiated proceedings, approved the Report that describes the assessments against parcels of land within the District, and declared its intention to levy assessments for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027 pursuant to the provisions of the Act to pay the costs and expenses of operating, maintaining, and servicing street lighting and appurtenant facilities located within the District; and
WHEREAS, Willdan Financial (the "Engineer") selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the Council the Report in connection with the proposed levy and collection of assessments upon eligible parcels of land within District, and the City Council has approved such Report; and WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027 to pay the costs and expenses of operating, maintaining, and servicing street lighting and appurtenant facilities located within public places in the City; and

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WHEREAS, the City and its legal counsel have found that these assessments comply with applicable provisions of Section XIIID of the California State Constitution.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT AS FOLLOWS:

SECTION 1. The above recitals are all true and correct.

SECTION 2. The Report as presented or amended is hereby approved and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 3. The City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the report and any amendments directed by the City Council and final approval of the Report as presented or amended.

SECTION 4. Following notice duly given, the City Council has held a full and fair Public Hearing regarding the District, the levy and collection of assessments, the Report prepared in connection therewith, and considered all oral and written statements, protests and communications made or filed by interested persons regarding these matters.

SECTION 5. Based upon its review (and amendments, as applicable) of the Report, a copy of which has been presented to the City Council and which has been ordered to be filed with the City Clerk, the City Council hereby finds and determines that:
i) the land within the District will receive special benefit by the operation, maintenance, and servicing of street lighting and appurtenant facilities located in public places within the boundaries of the District; and
ii) the District includes all of the lands so benefited; and iii) the net amount to be assessed upon the lands within the District in accordance with the fee for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027 is apportioned by formula and method which fairly distributes the net amount among all eligible parcels in proportion to the estimated benefits to be received by each parcel from the improvements and services.

SECTION 6. The City Council hereby ORDERS the improvements which are briefly described as follows: The maintenance, servicing and operation of the street lighting and appurtenant facilities located in public places within the boundary of the District. Maintenance means the furnishing of services and material for the ordinary and usual maintenance, operation and servicing of the street lighting and appurtenant facilities, including repair, removal or replacement of all or part of any of the streetlights or appurtenant facilities.

Servicing means the furnishing of electricity for the lighting and operation of the street lighting and appurtenant facilities. The Report describes all new improvements or substantial changes in existing improvements.

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SECTION 7. The County Auditor of the County of Riverside shall enter on the County Assessment Roll opposite each eligible parcel of land the amount of levy so apportioned by the formula and method outlined in the Report, and such levies shall be collected at the same time and in the same manner as the County taxes are collected pursuant to Chapter 4, Article 2, Section 22646 of the Act. After collection by the County, the net amount of the levy shall be paid to the City Treasurer.

SECTION 8. The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund known as "City of Indian Wells Street Lighting District No. 2000-1," and such money shall be expended only for the maintenance, operation and servicing of the street lighting and appurtenant facilities as described in Section 6.

SECTION 9. The adoption of this Resolution constitutes the District levy for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027.

SECTION 10. The City Clerk or their designate is hereby AUTHORIZED and DIRECTED to file the levy with the County Auditor upon adoption of this Resolution pursuant to Chapter 4, Article 1, Section 22641 of the Act.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Indian Wells, California, at a regular meeting held on this 16th day of April 2026.

DR. TOPER TALYOR
MAYOR

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CERTIFICATION FOR RESOLUTION NO. 2026-
I, Angelica Avila, City Clerk of the City Council of the City of Indian Wells, California DO HEREBY CERTIFY that the whole number of the members of the City Council is five (5); that the above and foregoing resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Indian Wells the 16th day of April 2026, by the following vote:

AYES:

NOES:

ATTEST: APPROVED AS TO FORM:

ANGELICA AVILA

CITY CLERK

TODD LEISHMAN FOR

BEST BEST & KRIEGER

CITY ATTORNEY

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Exhibit "A"

INDIAN WELLS
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.35001800.755.6864
F 951.587.35101888.326.6864
Property Tax Information Line
T.866.807.6864
www.willdan.com
City of Indian Wells
Street Lighting District No. 2000-1
2026/2027 ENGINEER'S REPORT
Intent Meeting: March 5, 2026
Public Hearing: April 16, 2026

WWILLDAN

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ENGINEER'S REPORT AFFIDAVIT
Street Lighting District No. 2000-1
City of Indian Wells
Riverside County, State of California
This Report describes the District 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 Indian Wells
By:

Chonney Gano, Project Manager
District Administration Services
By:

Tyrone Peter
P. E. # C 81888

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TABLE OF CONTENTS
I. OVERVIEW 1
//. DESCRIPTION OF THE DISTRICT
A. DISTRICT BOUNDARY
B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
C. IMPROVEMENTS WITHIN THE DISTRICT
///. METHOD OF APPORTIONMENT
A. GENERAL
B. PROPOSITION 218 BENEFIT ANALYSIS
C. BENEFIT ANALYSIS
D. METHODOLOGY

IV DISTRICT BUDGETS
A. DESCRIPTION OF BUDGET ITEMS
B. FISCAL YEAR 2026/2027 DISTRICT BUDGET

APPENDIXA - DISTRICT BOUNDARY MAPS
APPENDIX B - 2026/2027 ASSESSMENT ROLL
2 2
2 3
4 4
4 5
6 7
7 9
10 12

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I. OVERVIEW
The City of Indian Wells (the "City") annually levies and collects special assessments in order to provide and maintain the improvements within the Indian Wells Street Lighting District No. 2000-1 (the "District"). The boundary of the District includes Tract 21650 and Tract 3292-R, which consists of a portion of Riverside County Service Area (the "CSA") No. 121 that was annexed to the City as "Indian Wells Annexation No. 13" by order of Resolution No. 2000-12 of the City of Indian Wells City Council (the "City Council") on March 16, 2000. The annexation authorized the City to continue levying assessments previously approved and authorized to be levied by CSA 121 in order to continue street lighting services previously provided by that CSA and now provided by the City. The District was formed on October 2000 and provides a mechanism to continue levying assessments for street lighting services within the boundaries of the District. The District assessments described in this Engineer's Report (the "Report") are prepared and levied annually pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "1972 Act") and Article XIIID of the California Constitution (the "Article") which was enacted with the passage of Proposition 218 in November 1996.

This Report describes the District, any changes to the District, and the proposed assessments for Fiscal Year 2026/2027. The assessments are based on the City's estimate of the annual costs to maintain the improvements that provide direct and special benefits to properties within the District. The improvements within the District, the corresponding costs, and the annual levy are budgeted. The assessment includes expenditures, deficits, surpluses, revenue, and reserve funds.

For the purposes of this Report, the word "parcel" refers to an individual property assigned its own Assessor's Parcel Number (the "APN") by the Riverside County Assessor's Office. The Riverside County (the "County") Auditor/Controller uses the APN and specific Fund Numbers to identify properties assessed for special district benefit assessments on the tax roll.

Following consideration of the public comments and written protests at a noticed public hearing, 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 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 County Auditor/Controller and included on the property tax roll for each benefiting parcel in Fiscal Year 2026/2027. 2026/2027 Street Lighting District No. 2000-1 Page 1

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11. DESCRIPTION OF THE DISTRICT
A. DISTRICT BOUNDARY
The boundaries of the District include Tract 21650 and Tract 3292-R, which consists of the portion of Riverside County Service Area No. 121 that was annexed into the City as "Indian Wells Annexation No. 13" by order of Resolution No. 2000- 12 of the City Council on March 16, 2000.

The District's boundaries are comprised of the streets and parcels that are located within the territory that is defined as the area South of Fred Waring Drive between Elkhorn Trail and Warner Trail; North of Arapahoe Drive between Elkhorn Drive and Dakota Trail; and North of Blackfoot Drive between Dakota Trail and Warner Trail.

B. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to this proposed 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. • The acquisition of any existing improvement otherwise authorized pursuant to this section.

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• Compensation payable to 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.

C. IMPROVEMENTS WITHIN THE DISTRICT
The improvements for the District may be generally described as follows: the operation, maintenance and servicing of the street lighting and appurtenant facilities located in public places within the boundary of the District. "Maintenance" means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the street lighting and appurtenant facilities, including repair, removal or replacement of the streetlights or appurtenant facilities. "Servicing" means the furnishing of electricity for the lighting and operation of the street lighting and appurtenant facilities.

Plans and specifications for the improvements are on file in the office of the City Clerk and the City Engineer where they are available for public inspection. 2026/2027 Street Lighting District No. 2000-1 Page 3

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1/VWI LLDAN
III. METHOD OF APPORTIONMENT
A. GENERAL
Pursuant to the 1972 Act and the provisions of Proposition 218, the costs of the District are apportioned by a formula or method, which fairly distributes the net amount to be assessed among the assessable parcels in proportion to the special benefits to be received by each such parcel from the improvements. Proposition 218, approved by the voters in November 1996, requires the agency to separate the general benefit from special benefit, whereas only special benefits are assessable.

Each parcel within the District receives special benefits from the improvements due to the close proximity of the lighting improvements to each parcel. The proposed assessments are at the same rate as those imposed by the County under the CSA. Since the assessments are not new, not increased, and are for street lighting, they are currently exempt from the procedures and approval process of Proposition 218.

B. PROPOSITION 218 BENEFIT ANALYSIS
In conjunction with the provisions of the 1972 Act, the Article addresses several key criteria for the levy of assessments, notably:

Section 2(d) of the Article defines District as follows:
"District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property -related service";
Section 2(i) the Article defines Special Benefit as follows:
"Special benefit" means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.

General enhancement of property value does not constitute "special benefit." Section 4(a) the Article defines proportional special benefit assessments as follows:
"An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be 2026/2027 Street Lighting District No. 2000-1 Page 4

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imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel."
This District was formed to establish and provide for the improvements that enhance the presentation of the surrounding properties and developments. These improvements will directly benefit the parcels to be assessed within the District.

The assessments and method of apportionment is based on the premise that the assessments will be used to construct and install landscape and lighting improvements within the existing District as well as provide for the annual maintenance of those improvements, and the assessment revenues generated by District will be used solely for such purposes.

The costs of the proposed improvements have been identified and allocated to properties within the District based on special benefit. The improvements to be provided by this District and for which properties will be assessed have been identified as an essential component and local amenity that provides a direct reflection and extension of the properties within the District which the property owners and residents have expressed a high level of support.

The method of apportionment (method of assessment) set forth in the Report is based on the premise that each assessed property receives special benefits from the landscape and lighting improvements within the District, and the assessment obligation for each parcel reflects that parcel's proportional special benefits as compared to other properties that receive special benefits.

To identify and determine the proportional special benefit to each parcel within the District, it is necessary to consider the entire scope of the improvements provided as well as the properties that benefit from those improvements. The improvements and the associated costs described in this Report, have been carefully reviewed and have been identified and allocated based on a benefit rationale and calculations that proportionally allocate the net cost of only those improvements determined to be of special benefit to properties within the District. The various public improvements and the associated costs have been identified as either "general benefit" (not assessed) or "special benefit".

C. BENEFIT ANALYSIS
The improvements associated with the District are part of the overall development plan for these parcels and were specifically installed for the benefit and development of the parcels. The benefit of street lighting conferred upon the parcels within the District includes the convenience, safety, and security of properties, improvements and goods. Specifically:

1. Enhanced deterrence of crime — an aid to police protection.

2. Increased nighttime safety on roads and highways.
2026/2027 Street Lighting District No. 2000-1 Page 5

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3. Improved visibility of pedestrians and motorists.

4. Improved ingress and egress to and from property.

5. Reduced vandalism, damage to improvements or property, and acts.

6. Improved traffic circulation and reduced nighttime accidents property loss.

7. Increased promotion of business during nighttime hours in commercial properties.

D. METHODOLOGY
other criminal
and personal
the case of
The cost to provide maintenance and services of the improvements within the District is fairly and equitably distributed among each assessable parcel based upon the estimated special benefits received by each parcel.

The District is comprised of single-family residential parcels with the exception of two parcels identified as common areas or public property. The residential lots receive the same special benefit from the improvements due to their similarity in size and use and their similar proximity to the improvements. Therefore, each assessable lot is assessed an equal amount.

For Fiscal Year 2026/2027, the assessment rate will be the total balance to levy divided by the number of assessable residential lots.

The assessed lots or parcels of real property within the District are listed on the Assessment Roll, which is provided as Appendix B of this report. The Assessment Roll provides a listing of the assessable parcels and their respective assessment for Fiscal Year 2026/2027. The specific lines and dimensions of the parcels are more particularly described on the County Assessor's Parcel Map, which is on file in the Office of the Riverside County Assessor and by reference is made a part of this Report.

The maximum assessment rate for the District is the same as the rate approved under the CSA ($47.74 per parcel) and is to be used for the same purpose — maintaining and servicing the existing streetlights within the District. As part of the annexation process of this unincorporated area to the City, it was detached from the CSA. However, the annexation process specifically allowed the City to continue the imposition of these assessments for street lighting purposes. 2026/2027 Street Lighting District No. 2000-1 Page 6

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IV. DISTRICT BUDGETS
A. DESCRIPTION OF BUDGET ITEMS
The following section describes the services and costs that are funded through the District and are shown in the District Budget.

Maintenance Costs
Labor, Material and Equipment— Includes labor, material and equipment required to properly maintain and service the street lighting and appurtenant facilities within the District. The improvements within the District will be maintained and serviced on a regular basis by the City. The specific maintenance operations required for the District, and the frequency thereof, are to be determined by City Staff.

Utilities
Electric — The furnishing of electricity for the operation of the landscaping and appurtenant facilities.

Capita! Replacement Costs
Repairs — Unforeseen repairs not normally included in the yearly maintenance cost. This may include repair of damage due to vandalism or weather.

Upgrades — Planned upgrades of the improvements that provide a direct benefit to the District may also be included in capital replacement costs. Examples of upgrades are additional street lighting facilities and/or renovating existing street lighting facilities.

Reserves
Operating Reserves — Reserves to be accumulated for maintenance services for the first six months of each Fiscal Year until tax monies become available for maintenance costs.

Administrative Services
City Staff — The cost of City Staff's efforts in coordinating the maintenance and servicing of the improvements, responding to public concerns, and levying and collecting the assessments. This includes reimbursement for time spent by Finance and Accounting, the City Attorney, the City Manager, and the Public Works Staff.
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Professional Services — The cost of contracting with professionals to provide services specific to the levy of assessments and annual administration of the District.

County Administration Fees
Assessment Collection — The fees charged by the County to place the assessments on the property tax rolls and collect the assessments from property owners.

Carryover/(Deficit) Prior Year
Available Funds — Any funds that are not expended in the prior Fiscal Year shall be included to offset maintenance costs in the current Fiscal Year. If the total funds in any Fiscal Year are insufficient to offset maintenance costs, a loan from other City funds shall be a deficit of the District and shall be included and repaid as the costs and assessments for the subsequent Fiscal Year.

Assessable Lots
Current and Planned Lots — Any subdivided residential lots and parcels planned for subdivision into residential lots within the District. 2026/2027 Street Lighting District No. 2000-1 Page 8

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B. FISCAL YEAR 2026/2027 DISTRICT BUDGET

BUDGET ITEM
AMOUNT
Direct Costs
$100
1,600
109
0 Maintenance- Labor, Material and Equipment
Utilities — Electric
Capital Replacement Costs - Repairs and Upgrades
Reserves - Operating Reserves
Direct Costs Subtotal
Administrative Costs
$1,809
$200
320
10 Administrative Services - City Staff
Administrative Services - Professional Services
County Administration Fees — Assessment Collection
Administrative Costs Subtotal
Fiscal Year 2026/2027 Assessment
$530
Total Direct and Administrative Costs
$2,339
Carryover (Deficit) Prior Years — Available Funds
0 Balance to Levy (1)
$2,339
Assessable Lots — Current and Planned Lots
49 Annual Assessment Per Parcel
$47.74
Balance to Levy rounded to the nearest dollar
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APPENDIXA - DISTRICT BOUNDARY MAPS
The Boundary Diagrams for the original districts have previously been submitted to the Clerk of the City in the format required under the 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 Maps of Riverside County for the year in which this Report was prepared and is incorporated by reference and made part of this Report.
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CITY OF INDIAN WELLS
PROPOSED STREET LIGHTING DISTRICT NO. 2000-1

FRED WARING DRIVE
ES

A PORTION OF THE

RIVERSIDE COUNTY
SERVICE AREA NO. 121

PROPOSED DISTRICT
hOUNDARy
2026/2027 Street Lighting District No. 2000-1 Page 11

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APPENDIX B - 2026/2027 ASSESSMENT ROLL
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Assessor 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 assessment numbers 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 assessment numbers 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 assessment numbers will be based on the method of apportionment and levy amount approved in this Report by the City Council.
2026/2027 Street Lighting District No. 2000-1 Page 12

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Assessment Roll
Assessor's Parcel Fiscal Year 2026/2027
Number 0'1 Assessment Amounts
633-324-001
633-324-002
633-324-003
633-324-004
633-324-005
633-324-006
633-324-007
633-324-008
633-324-009
633-324-010
633-324-011
633-324-012
633-324-013
633-324-014
633-324-015
633-324-016
633-324-017
633-324-018
633-700-001
633-700-002
633-700-003
633-700-004
633-700-005
633-700-006
633-700-007
633-700-008
633-700-009
633-700-010
633-700-011
633-700-012
633-700-013
633-700-014
633-700-015
633-700-021
633-700-022
633-700-023
633-700-024
633-700-025
633-700-026
633-700-027
633-700-028
633-700-029
633-700-030
633-700-031
$47.74

47.74 47.74

47.74 2026/2027 Street Lighting District No. 2000-1 Page 13

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2026/2027
Assessor's Parcel
Number (1)
Fiscal Year 2026/2027
Assessment Amounts
633-700-032 (2)
633-700-033
633-700-034
633-700-035
633-700-036
633-700-037

0.00 47.74

47.74 47.74

47.74 47.74
Total Assessment
$2,339.26
J Parcel 633-300-007 split to parcels 633-324-001 through 633-324-018 in Fiscal Year 2021/2022.
)2) Parcel 633-700-032 is an open space parcel owned by the Village at Indian Wells Homeowner Association and thus is not assessed as the benefit is shared by the residents within the development_ Street Lighting District No. 2000-1

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INDIAN WELLS CITY COUNCIL
April 16, 2026
To: City Council
From: Finance Department
Prepared by: Kevin McCarthy, City Finance Director
Subject: Final Annual Levy Report for Landscape and Lighting District No. 91-1 for the Fiscal Year 2026-27 and Ordering the Levy and Collection of Assessments
RECOMMENDED ACTIONS:

Council OPENS the Public Hearing, takes any public testimony, CLOSES the Public Hearing; and
ADOPTS Resolution approving collection of assessments for the Fiscal Year 2026-27 for the Landscape and Lighting District No. 91-1; and
ORDERS the Landscape and Lighting District No. 91-1 levy to be placed on the Fiscal Year 2026-27 Riverside County tax roll.

FINDS the project to be exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15060.

BACKGROUND:

Each year, the City Council conducts a public hearing to review and take action on the costs associated with the operation and maintenance of the City's landscape and lighting maintenance districts. This process ensures transparency, fiscal accountability, and compliance with applicable assessment district regulations. As part of this annual review, the Engineer's Report, attached to this staff report, provides a comprehensive budget detailing anticipated revenues, expenditures, and planned maintenance activities for the landscape and lighting maintenance districts.

The City administers the levies for the citywide Landscape and Lighting Maintenance District No. 91-1 (LLMD), which was established to provide funding for the ongoing maintenance and enhancement of public landscaping and lighting infrastructure. The LLMD encompasses seventeen active districts along the Highway 111 corridor. Of these, the City directly manages operations in twelve districts, ensuring that public spaces are maintained to established standards, while the remaining five districts are maintained by their respective homeowners' associations. These assessments fund essential services,

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including irrigation system upkeep, tree and shrub maintenance, streetlight operations, and other improvements that enhance public safety and community aesthetics.

FISCAL IMPACT:

There is no direct fiscal impact on the City, as the revenues generated from the annual levy are explicitly designated for the operation of the District and do not affect the City's General Fund. The preliminary levy amounts to operate the LLMD for Fiscal Year 2026-27, per the Engineer's Report, are as follows:

Zone Description
Annual
Maximum Levy Prior Year Proposed Increase
Allowed per EDU Levy per EDU Levy per EDU (Decrease)
Al Eldorado $ 272.52
A2 Montecito/Stardust 573.30
A3 Casa Dorado (A Pass -through District) 263.23
A5B The Cove (A Pass -through District) 408.05
A8 Indian Wells Golf Resort 785.30
A11A Hwy. 111 & Club Drive 380.51
A11C Club Drive 246.92
C The Colony 4,712.04
D Colony Cove Estates 13,546.75
E Desert Horizons (A Pass -through District) 896.95
A19 Mountain Gate 1,436.71
A20 Mountain Gate Estates 1,397.58
A21 Villagio 2,940.64
A22 Vaidya 1,105.54
A23 Montelena 1,579.46
A25 Sundance (A Pass -through District) 1,732.25
A26 Province (A Pass -through District) $ 1,814.91
$ 242.38
556.06
254.26
395.77
762.06
321.47
239.03
1,150.62
1,163.69
865.06
993.63
1,060.76
1,295.64
596.20
1,246.01
1,276.08
$ 1,639.11
$ 271.83
573.02
263.18
407.85
785.12
380.18
246.29
1,244.37
1,267.33
896.45
1,101.63
1,166.12
1,402.02
698.13
1,364.06
1,387.19
$ 1,751.89
$ 29.45

16.96 8.92

12.08 23.06

58.71 7.26

93.75 103.64

31.39 108.00
105.36
106.38
101.93
118.05
111.11
$ 112.78
The total projected cost to operate the Landscape and Lighting Maintenance Districts (LLMD) for Fiscal Year 2026-27 is $2,081,360. This budget encompasses all maintenance, repair, and operational expenses necessary to uphold the established service levels for landscaping, irrigation, lighting, and related infrastructure within the districts. These costs include labor, materials, utility expenses, and contractual services required to maintain public spaces in accordance with City standards and regulatory requirements.

To support the operation of these districts, the City allocates $127,480 to eight designated landscape districts that provide a direct public benefit, ensuring that key public areas receive adequate maintenance and enhancements that contribute to the overall aesthetic and environmental quality of the City.

District reserves will contribute $82,435 toward the total expenditures, drawing from previously collected funds set aside for maintenance and contingency purposes. The remaining $1,871,444 will be funded through assessments levied on property owners within the respective districts. These assessments are calculated based on the proportional benefit

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received by each property and are collected in accordance with the provisions of the Landscape and Lighting Act of 1972.

OPTIONS:

1. Approve the annual levy for Landscape and Lighting District No. 91-1 for Fiscal Year 2026-27.

2. Decide against approving the annual levy.

3. Provide alternative instructions for staff.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA):

This action has been reviewed per the authority and criteria contained in the California Environmental Quality Act (CEQA), the State and local CEQA Guidelines, and the City's environmental regulations. The City, acting as the Lead Agency, determined that the ordinance is not subject to CEQA pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines, because it will not result in a direct or reasonably foreseeable indirect physical change to the environment as there is no possibility that the action would result in a significant environmental impact, and because it does not constitute a "project" as defined in Section 15378 of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.

ATTACHMENTS:

1. Resolution- Approval of the Engineer Report and Ordering the Levy

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ATTACHMENT #1
RESOLUTION 2026-_

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIAN WELLS,

CALIFORNIA, AMENDING AND/OR APPROVING THE FINAL ANNUAL

LEVY REPORT SETTING FORTH LANDSCAPE AND LIGHTING DISTRICT NO. 91-1 FOR FISCAL YEAR 2026-27 AND ORDERING THE LEVY AND

COLLECTION OF ASSESSMENTS RELATED THERETO
WHEREAS, the City Council of the City of Indian Wells, California (the "City Council") has by previous resolutions, ordered the preparation of the Engineer's Annual Levy Report (the "Report") for said district known and designated as:

Indian Wells Landscape and Lighting District No. 91-1
(the "District") pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (the "Act"); and
WHEREAS, the Indian Wells Landscape and Lighting District No. 91-1 contains the following Zones: (A1) Eldorado; (A2) Rancho Palmeras Estates APN 634-04; (A3) Tract Nos. 2752, 3097 and 4853; (A5B) a sub -zone within A5A "The Cove"; (A8) three (3) parcels south of Coachella Valley Stormwater Channel along Hwy 111 east of Eldorado Drive; (A11A) Highway 111 South at Club Dr.; (A11C) Club Dr. eight (8) parcels; (D) Parcel Map No. 26494; (C) the Colony; (E) north of Highway 111 west of Eldorado Drive, east of Cook Street and south of Whitewater River Channel; (A19) Mountain Gate Tract No. 26595; (A20) Mountain Gate Tract No. 27747-1; (A21) Villagio Tract No. 29502; (A22) Vaidya Tract No. 27747; (A23) Montelena Tract No. 31200, (A25) Sundance Tract No. 27104, (A26) Province Tract No. 32880; and WHEREAS, there has now been presented to this City Council the Report as required by Chapter 3, Section 22623 of said Act and as previously directed by resolution; and WHEREAS, the proposed District assessments to be levied for Fiscal Year 2026-27, do not exceed the amount approved by the property owners and adopted by the City Council and are therefore in compliance with the provisions of California Constitution Article and XIIID; and WHEREAS, this City Council has examined and reviewed the Report as presented (or amended) and is satisfied with each and all the items and documents as set forth therein and is satisfied that the levy has been spread in accordance with the benefits received from the improvements, operation, maintenance, and services to be performed as set forth in said Report; and
WHEREAS, the City Council has, by previous resolutions, initiated proceedings, approved the Report that describes the assessments against parcels of land within the District, and declared its intention to levy assessments for the Fiscal Year commencing July 1, 2026 and ending June 30, 2027 pursuant to the provisions of the Act to pay the costs and expenses of operating, maintaining, and servicing landscaping, lighting and appurtenant facilities located within the District and its Zones; and
WHEREAS, Willdan Financial (the "Engineer") selected by the City Council has prepared and filed with the City Clerk, and the City Clerk has presented to the Council, the Report in

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connection with the proposed levy and collection of assessments upon eligible parcels of land within the District, and the City Council has approved such Report; and WHEREAS, the City Council desires to levy and collect assessments against parcels of land within the District for the Fiscal Year commencing July 1, 2026, and ending June 30, 2027, to pay the costs and expenses of operating, maintaining, and servicing landscaping, lighting, and appurtenant facilities located within public places in the City; and WHEREAS, the City and its legal counsel have found that these assessments comply with applicable provisions of Section XIIID of the California State Constitution.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT AS FOLLOWS:

SECTION 1. The above recitals are all true and correct.

SECTION 2. The Report, as presented or amended, is hereby APPROVED and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 4. Following notice duly given, the City Council has held a full and fair Public Hearing regarding the District, the levy and collection of assessments, the Report prepared in connection therewith, and considered all oral and written statements, protests, and communications made or filed by interested persons regarding these matters.

SECTION 5. Based upon its review (and amendments, as applicable) of the Report, a copy of which has been presented to the City Council and which has been ordered to be filed with the City Clerk, the City Council hereby FINDS and DETERMINES that:
i) the land within the District will receive special benefit by the operation, maintenance, and servicing of improvements located in public places within the boundaries of the District; and
ii) the District includes all the lands so benefited; and iii) the net amount to be assessed upon the lands within the District in accordance with the fee for the Fiscal Year commencing July 1, 2026, and ending June 30, 2027 is apportioned by a formula and method which fairly distributes the net amount among all eligible parcels in proportion to the estimated benefits to be received by each parcel from the improvements and services.

SECTION 6. The City Council hereby ORDERS the proposed improvements to be made, which improvements are briefly described as follows: The maintenance, servicing, and operation of the landscape improvements and capital replacements that include planting

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materials such as turf, ground cover, trees and shrubs, automatic sprinkler systems, lighting and drainage systems, and all appurtenant materials for the ordinary and usual maintenance, operation, and servicing of the landscaping, lighting, and appurtenant facilities, including repair, 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 means the furnishing of water for the irrigation of the landscaping and electricity for both the landscaping and lighting, and the maintenance of any of the appurtenant facilities.

SECTION 8. The City Treasurer shall deposit all money representing assessments collected by the County for the District to the credit of a fund known as "City of Indian Wells Landscape and Lighting District No. 91-1," and such money shall be expended only for the maintenance, operation, and servicing of the landscaping, lighting, and appurtenant facilities as described in Section 6.

SECTION 9. The adoption of this Resolution constitutes the District levy for the Fiscal Year commencing July 1, 2026, and ending June 30, 2027.

SECTION 10. The City Clerk or the designate of the City Council is hereby AUTHORIZED and DIRECTED to file the levy with the County Auditor upon adoption of this Resolution pursuant to Chapter 4, Article 1, Section 22641 of the Act.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Indian Wells, California, at a regular meeting held on this 16th day of April 2026.

DR. TOPER TAYLOR
MAYOR

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AYES:

NOES:

ATTEST: APPROVED AS TO FORM:

ANGELICA AVILA

CITY CLERK

TODD LEISHMAN FOR

BEST BEST & KRIEGER

CITY ATTORNEY

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EXHIBIT "A"

INDIAN WELLS
27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500 1800.755.6864
F 951.587.3510 1888.326.6864
Property Tax Information Line
T.866.807.6864
www.willdan.com
City of Indian Wells
Landscape and Lighting District
No. 91-1
2026/2027 ENGINEER'S REPORT
Intent Meeting: March 5, 2026
Public Hearing: April 16, 2O26

VS/WI LLDAN

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ENGINEER'S REPORT AFFIDAVIT
Landscape and Lighting District No. 91-1
City of Indian Wells
Riverside County, State of California
This Report describes the District and all relevant zones 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 Indian Wells
By:

Chonney Gano, Project Manager
District Administration Services
By:

Tyrone Peter
P. E. # C 81888

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TABLE OF CONTENTS
/. OVERVIEW
A. INTRODUCTION
B. HISTORICAL BACKGROUND AND LEGISLATION
//, DESCRIPTION OF THE DISTRICT
2 3
A. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT 3
B. IMPROVEMENTS WITHIN THE DISTRICT 4
C. DISTRICT ZONE BOUNDARIES AND SPECIFIC AREAS OF IMPROVEMENT 5 ///. METHOD OF APPORTIONMENT 8
A. PROPOSITION 218 BENEFIT ANALYSIS
B. DISTRICT BENEFIT
C. METHODOLOGY
D. DEFINITIONS
E. INFLATION FACTOR
/V DISTRICT BUDGETS
8 9
10 11
13 14
A. DESCRIPTION OF BUDGET ITEMS
B. PERSONNEL OVERHEAD
C. DISTRICT BUDGETS

APPENDIX A - DISTRICT ASSESSMENT DIAGRAM
14 15
17 23
APPENDIX B - 2026/2027 PRELIMINARY ASSESSMENT ROLL 24

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1. OVERVIEW
A. INTRODUCTION
The City of Indian Wells (the "City"), annually levies and collects special assessments in order to provide and maintain the improvements within the City of Indian Wells Landscape and Lighting District No. 91-1 (the "District"). The District was formed in 1991 through the consolidation of several individual landscape and lighting maintenance districts within the City. The District includes the original districts as separate benefit zones and sub -zones (the "Zones"). In Fiscal Year 1997/1998, the District assessments were presented to the property owners and approved through a protest ballot proceeding in compliance with the provisions of Proposition 218. The District assessments described in this report are prepared and levied annually pursuant to the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the "1972 Act") and Article XIIID of the California Constitution (the "Article") which was enacted with the passage of Proposition 218 in November 1996.

The Engineer's Report (the "Report") describes the District; any changes to the District, and the proposed assessments for Fiscal Year 2026/2027. The assessments are based on the City's estimate of revenues and expenses to maintain the improvements that provide direct and special benefits to properties within the District and Zones. The improvements within the District and the corresponding costs and the annual levy are budgeted and assessed for each separate Zone, including all expenditures, deficits, surpluses, revenues, and reserves.

For the purposes of this Report, the word "parcel" refers to an individual property assigned its own Assessor's Parcel Number ("APN") by the Riverside County (the "County") Assessor's Office. The County Auditor/Controller uses APNs and specific Fund Numbers to identify properties assessed for special district benefit assessments on the tax roll.

Following consideration of all public comments and written protests at a noticed public hearing, the City Council of Indian Wells (the "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 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 County Auditor/Controller and included on the property tax roll for each benefiting parcel in Fiscal Year 2026/2027.
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B. HISTORICAL BACKGROUND AND LEGISLATION
Pursuant to the 1972 Act, the Council annually conducts a public hearing to accept property owner and public comments and testimony, to review the Report and approve the annual assessments to be levied on the County tax roll for that Fiscal Year. All assessments approved by the Council have been prepared in accordance with the 1972 Act and are in full compliance with the provisions of the Article.

In Fiscal Year 1997/1998 the improvements provided by the District, the costs associated with those improvements and the properties benefiting from those improvements, were closely reviewed and evaluated. Specific modifications were made to the District in response to the substantive and procedural requirements of the Article. The existing zones were reviewed for compliance and all applicable assessments were confirmed through property owner ballots. Changes to the District included:
• Revision of the assessment methodology in some zones. • Boundary modifications were made to Zone Al to more accurately reflect the benefit received.
• Zones A6 -Sandpiper; A9 -Chateau Estates; A11 B -The Plaza at Club Drive; and Al2 -Painted Cove were eliminated. The improvements in these zones were considered non-public improvements and could no longer be assessed. • Zone A11C-Club Drive was established to apportion the benefit for the maintenance of the eligible improvements along Club Drive south of Highway 111.

The assessments and method of apportionment described in this Report utilize commonly accepted assessment engineering practices and have been established pursuant to the 1972 Act and the provisions of the Article. All new or increased assessments will be subject to the substantive and procedural requirements of the Article Section 4. Property owner ballot proceedings are not required if the proposed assessments are less than or equal to the maximum assessment rate previously approved for each of the various Zones within the District. 2026/2027 Landscape and Lighting District No. 91-1 Page 2

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11. DESCRIPTION OF THE DISTRICT
A. IMPROVEMENTS AUTHORIZED BY THE 1972 ACT
As applicable or may be applicable to this proposed 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. • 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 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.
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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.

B. IMPROVEMENTS WITHIN THE DISTRICT
The facilities and improvements which have been constructed within the District and which will be maintained and serviced using assessments generally include:

Landscaping and Appurtenant Facilities, including, but not limited to, landscaping, planting, shrubbery, trees, irrigation systems, hardscape fixtures, sidewalk maintenance resulting from landscape growth, and appurtenant facilities in public rights -of -way, parkways and dedicated easements within the boundaries of said District.

Lighting and Appurtenant Facilities, including, but not limited to, poles, fixtures, bulbs, conduits, conductors, equipment including guys, anchors, posts and pedestals, metering devices, and appurtenant facilities as required to provide lighting in public rights -of -way, parkways, and dedicated easements within the boundaries of said District.

In Zones A3, A5B, E, A25 and A26 the improvements are serviced and maintained by the Homeowners Associations (the "HOA") acting as Agents of the City. The funds collected for the maintenance and servicing of the improvements in these Zones are passed -through to the respective Agent that contracts for the actual maintenance. The Funds received from the County less the administration costs are passed through immediately to the HOA for Zones A3, A5B, E, A25 and A26 and thus there is no need to hold a reserve fund. In all other Zones within the District, the City utilizes the services of landscape maintenance contractors for all regularly scheduled maintenance. The costs associated with all improvements in each Zone are collected through annual assessments from each parcel receiving special benefits. The funds collected for each Zone are dispersed and used for only the services and operation provided to that Zone.
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WWI
C. DISTRICT ZONE BOUNDARIES AND SPECIFIC AREAS OF

IMPROVEMENT
Zone Al
Zone A2
Zone A3
EI Dorado — Zone Al consists of those parcels in Tracts 10262 and 10863 that front EI Dorado Drive between Highway 111 and Fairway Drive. These parcels receive special benefits from the landscaped medians along EI Dorado Drive. Parcels that use EI Dorado Drive as the main access way to their properties are included in this Zone.

Montecito/Stardust — Zone A2 contains all parcels within the Montecito/Stardust development (Rancho Palmeras Estates Unit No. 3). This zone consists of residential properties on Montecito Drive and Stardust Lane west of Rancho Palmeras Drive. The parcels receive special benefits from improvements within the parkway along Rancho Palmeras Drive, adjacent to the development, and the landscaped entryway to the
development, on Stardust Lane and Montecito Drive.

Casa Dorado — Zone A3 consists of all the parcels in Tracts 2752, 3097, and 4853 that are at the southeast corner of Highway 111 and Rancho Palmeras Drive. These parcels are part of a HOA. The HOA, acting as an Agent of the City, contracts for landscape maintenance. The District collects assessments from parcels within the Zone to reimburse the HOA for the contracted maintenance. These parcels receive special benefits from improvements along the frontage on the south side of Highway 111, from Rancho Palmeras Drive to the project's eastern boundary, a distance of approximately 1,300 feet.

Zone A5B Cook Street/The Cove — Zone A5B is the development known as "The Cove", and all parcels within the Zone are part of a HOA.

The HOA, acting as an Agent of the City, contracts for landscape maintenance of the entrance to the Cove on Cook Street. The ❑istrict collects assessments from parcels within the Zone to reimburse the HOA for the contracted maintenance. Parcels in the Cove receive direct and special benefits from these improvements.
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Zone A8
Entrance to Indian Wells Golf Resort — Zone A8 consists of three parcels south of the Coachella Valley Stormwater Channel along Highway 111 and east of EI Dorado Drive. These three parcels are the Hyatt Grand Champions of Indian Wells, the Renaissance Esmeralda Hotel, and the parcel owned by the City of Indian Wells. These parcels receive special benefit from the landscaping along the north side of Highway 111, west of Eldorado Drive, to the east side of the Renaissance Esmeralda Hotel. The parcels also receive special benefits from the improvements on Indian Wells Lane leading to the Hyatt Grand Champion and Renaissance Esmeralda Hotel.

ZoneA11A Highway 111 South, at Club Drive — Zone A11A contains parcels located immediately south of Highway 111 near Indian Wells Lane and Club Drive including but not limited to the Miramonte Resort, the Indian Wells Country Club, and the Indian Wells Resort Hotel. These parcels receive special benefits from the parkway landscaping improvements on the south side of Highway 111 between Indian Wells Lane and Club Drive.

Zone A11 C Club Drive —Zone A11 C consists of all parcels along Club Drive between Highway 111 and Sandpiper. These parcels are part of Zone A11 A, but receive additional special benefits from landscaped parkways along Club Drive not associated with other parcels in Zone A11 A.

Zone C
Zone D
Zone E
The Colony — Zone C lies generally south of Highway 111 and west of Manitou Drive and includes all parcels within Tract 24625, commonly known as "The Colony". These parcels
receive special benefits from landscaped parkways along Highway 111 adjacent to the development.

Colony Cove Estates —Zone D lies generally south of Highway 111 and east of Club Drive and includes all parcels within Tract 26494. These parcels receive special benefits from landscaped parkways along Highway 111 adjacent to the development.

Desert Horizons —Zone E lies generally north of Highway 111; west of EI Dorado Drive; east of Cook Street; and south of Fred Waring Drive (44th Street) and the Whitewater River Channel.

This Zone includes only parcels within the Desert Horizons Country Club gated community. These parcels are part of a HOA. The HOA, acting as an Agent of the City, contracts for landscape maintenance. The District collects assessments from 2026/2027 Landscape and Lighting District No. 91-1 Page 6

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parcels within the Zone to reimburse the HOA for the contracted maintenance. Parcels within the Zone receive special benefits from improvements within the easements and public rights -of - way that surround the perimeter of the gated community. The improvements include the parkways along Highway 111, EI Dorado Drive, Cook Street, Fred Waring Drive, and Whitewater River Channel.

Zone A19 Mountain Gate — Zone A19 is generally located south of Highway 111 and east of Manitou Drive and includes all parcels within Tract 26595 known as the Mountain Gate Development.

Parcels within this Zone receive special benefits from
landscaped improvements associated with the development located in the parkway on the south side of Highway 111 adjacent to the development.

Zone A20 Mountain Gate Estates — Zone A20 lies generally south of Highway 111 and east of Manitou Drive and includes all parcels within Tract27747-1 known as the Mountain Gate Development.

Parcels within this Zone receive special benefits from
landscaped improvements associated with the development located in the parkway on the south side of Highway 111 adjacent to the development.

Zone A21 Villaggio — Zone A21 lies generally south of Highway 111 and west of Mountain Gate Drive and includes all parcels within Tract 29502 known as the Villaggio. Parcels within this Zone receive special benefits from landscaped improvements
associated with the development located in the parkway on the south side of Highway 111 adjacent to the development.

Zone A22 Vaidya — Zone A22 lies generally on the south side of Highway 111 and east of Manitou Drive and includes parcels within Tract 27747 known as Vaidya. Parcels within this Zone receive special benefits from landscaped improvements associated with the development.

Zone A23
Montelena — Zone A23 lies generally on the southeast corner of Highway 111 and EI Dorado Drive. Parcels within this Zone receive special benefits from landscaped improvements and includes parcels within Tract 31200 known as Montelena
associated with the development. The landscaping
improvements for this District include the entry to the Montelena tract on east side of EI Dorado Drive and along the south side of Highway 111.
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Zone A25
Sundance — Zone A25 lies generally on the south of Highway 111, west of EI Dorado Drive, east of Camino de Dorado and includes parcels within Tract 27104. Parcels within this Zone receive special benefits from landscaped improvements
associated with the development. The landscaping
improvements for this District include the entry to the Sundance tract on west side of EI Dorado Drive and along the south side of Highway 111.

Zone A26 Province — Zone A26 lies generally on the southeast corner of Cook Street and Highway 111. Parcels within this Zone receive special benefits from landscaped improvements such as
landscaping, ornamental structures and appurtenant structures and includes parcels within Tract 32880 known as Province associated with the development.
111. METHOD OF APPORTIONMENT
A. PROPOSITION 218 BENEFIT ANALYSIS
In conjunction with the provisions of the 1972 Act, the Article addresses several key criteria for the levy of assessments, notably:

Section 2(d) of the Article defines District as follows:
"District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property -related service."
Section 2(i) of the Article defines Special Benefit as follows:
"Special benefit" means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.

General enhancement of property value does not constitute "special benefit." Section 4(a) of the Article defines proportional special benefit assessments as follows:
"An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be 2026/2027 Landscape and Lighting District No. 91-1 Page 8

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imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel."
This District was formed to establish and provide for the improvements that enhance the presentation of the surrounding properties and developments. These improvements will directly benefit the parcels to be assessed within the District.

B. DISTRICT BENEFIT
The costs of the District are apportioned by a formula or method, which fairly distributes the net amount to be assessed among all assessable parcels in proportion to the special benefits to be received by each such parcel from the improvements. Improvements maintained by the District that are considered to provide general benefit (in whole and in part), are funded by the City and not included in the annual assessments. Property owners are assessed for special benefits only.
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Each parcel within the District receives special benefits from the improvements due to the close proximity of the landscaping, masonry wall, and lighting improvements to each parcel. The improvements provide added beautification and aesthetic value to each developed property and property owner and an enhanced quality of life within the subdivision. In areas along Highway 111, where the property has not been developed, the City pays for parkway maintenance out of the general fund. As development occurs, it is anticipated that the City will continue to require perimeter landscape maintenance along Highway 111 to be maintained by the individual developments.

The major arterials are the entryways into the City and provide beautification to the entire City. The City enjoys a reputation for beauty, and the parkway landscape improvements along major arterials enhance that reputation and provide an amount of benefit to all parcels in the City. This amount of benefit is estimated at 10% of the total benefit, and the City will contribute 10% of the landscaping costs to specified zones (A3, A5B, A8, A11 A, C, D, E, and A20) that contain improvements along Highway 111.

C. METHODOLOGY
Pursuant to the 1972 Act and the provisions of the Article, the costs of the District are apportioned by a formula or method, which fairly distributes the net amount to be assessed among all assessable parcels in proportion to the special benefits to be received by each such parcel from the improvements. Improvements maintained by the District that are considered to provide general benefit (in whole and in part), are funded by the City and not included in the annual assessments.

Property owners are assessed for special benefits only.

Each parcel within the District receives special benefits from the improvements due to the close proximity of the landscaping, masonry wall, and lighting improvements to each parcel. The improvements provide added beautification and aesthetic value to each developed property and property owner and an enhanced quality of life within the subdivision. In areas along Highway 111, where the property has not been developed, the City pays for parkway maintenance out of the general fund. As development occurs, it is anticipated that the City will continue to require perimeter landscape maintenance along Highway 111 to be maintained by the individual developments.

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A summary of Equivalent Benefit Unit ("EBU") rates for all Zones except A19 -A26 is shown in the table below:

EQUIVALENT BENEFIT UNIT (EBU) FORMULA
Land Use
Single Family Res. (SFR)
Vacant SFR Lot
Non -Residential
Vacant
Golf Courses
Benefit Unit Factor
(BUF)

1.00 0.30

6.00 1.80

0.90 Parcel EBU
1 EBU/Unit

0.30 EBU/Unit

6.0 EBU/Acre

1.80 EBU/Acre

0.90 EBU/Acre
The following formula is used to calculate each parcel's EBU (proportional benefit).

BUF x (Acres or Units) = Parcel EBU
i.e. For Land Use Vacant — (3.70 acres x 1.80 BUF = 6.66 Parcel EBU) For Zones A19 -A26, each parcel is assigned 1 EBU regardless of development status.

The total number of Equivalent Benefit Units ("EBUs") is the sum of all individual EBUs applied to the parcels within each zone that receives special benefit from the improvements. A levy per EBU (Levy Rate) for the zone is established by taking the total cost of the improvements and dividing that amount by the total number of EBUs of all parcels benefiting from the improvements. This Rate is then applied back to each parcel's individual EBU to determine the parcel's proportionate benefit and assessment obligation for the improvements.

Total Balance to Levy ! Total EBUs = Levy Rate per EBU
Levy Rate per EBU x Parcel EBU = Parcel Levy Amount
D. DEFINITIONS
For Zones A19 -A26, each parcel is assigned 1 EBU regardless of development status.

Single Family Residential (SFR). Parcels zoned for single-family residential uses are assessed 1 EBU per benefit unit. Parcels designated as SFR land -use will be assessed 1 EBU per benefit unit.

Non -Residential. In converting non-residential properties to EBUs, the factor used is a typical standard single-family residential lot area within the City of Indian Wells and the number of lots that could be subdivided into an acre of land. All properties that are developed for non-residential uses are therefore assigned 6 EBUs per 2026/2027 Landscape and Lighting District No. 91-1 Page 11

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acre and include commercial, industrial, church, school, and other non-residential uses except golf courses.

Vacant. Conceptually, vacant properties within the district which have development potential receive special benefits from the improvements due to the increase in desirability of the parcels; usually, the special benefits are seen as being less than that of a developed parcel and often the value of the land is compared to the total value of a developed parcel to achieve a benefit ratio.

Therefore, vacant property will be assessed 30% of a developed property.

Vacant Single -Family Residential Lots. Parcels that are individual subdivided vacant residential lots are assessed at 30% of the developed single-family residential lot and are assigned 0.3 EBUs per parcel. This reduction in EBUs is based upon the reduced special benefits received by undeveloped parcels until such time as they are developed.

Vacant Non -Subdivided Parcels. Vacant parcels that are not subdivided are assigned EBUs on the basis of parcel size. The parcels will be assessed at the rate of 30% of the developed equivalency. Therefore, vacant non -subdivided property is assessed 6 x 30% = 1.8 EBU per acre.

Recreational/Golf Course Property. Recreational/golf course property closely resembles vacant property in that it has large land areas comprised of mostly park- like open space and only a few buildings, if any. However, because golf courses do not have the development potential that vacant land has and the value of the property is less, golf course property receives less special benefits than vacant property. Therefore, recreational/golf course property is assessed at 50% of a vacant property, or 1.8 x 50% = 0.90 EBU per acre.

Public Property. Public property, which is developed and used for residential or business purposes will be assessed the same as private property with the same use. Vacant public property will be assessed as vacant private property.

Exempt. Excepted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights -of -way, public greenbelts, and parkways. Also exempted from assessment would be utility rights -of -way, common areas (such as in condominium complexes), landlocked parcels, and small parcels vacated by the City as these parcels have little or no value and therefore do not benefit from the improvements.
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E. INFLATION FACTOR
For All Zones Except for Zones A19 —A23 and A26 — By approval of the Council, the maximum assessment rate that may be levied for each EBU may be increased in each year by the greater of the change in the Consumer Price Index ("CPI") for All Urban Consumers for the Los Angeles -Riverside -Orange County Area from January to January or three percent (3.00%). As of January 2018, the Bureau of Labor Statistics ("BLS") split the Los Angeles -Riverside -Orange County Area for All Urban Consumers to the Los Angeles -Long Beach -Anaheim Area and Riverside -San Bernardino -Ontario Area for All Urban Consumers. Currently, the District uses the Riverside -San Bernardino -Ontario CPI index to compute the CPI difference each year. Each Fiscal Year, the Engineer shall compute the percentage difference between the CPI from January to January or three percent (3.00%). Such assessment adjustments shall not be considered an increased in assessment. A proposed assessment that exceeds the adjusted maximum assessment rate will require property owner balloting approval before the increase may be imposed.

For Fiscal Year 2026/2027 the change in January CPI for the Riverside -San Bernardino -Ontario Area is 3.24% therefore the maximum assessment rate will be adjusted by 3.24%.

For Zones A19 — A23 and A26 by approval of the Council, the maximum assessment rate levied that may be levied for each EBU may be increased in each year (beginning with Fiscal Year 2000/2001 for A19, Fiscal Year 2001/2002 for A20 and A21, Fiscal Year 2004/2005 for A22 and A23, and Fiscal Year 2007/2009 for A26) by the CPI percentage difference for February of each year to the previous February for All Urban Consumers for the Los Angeles -Riverside -Orange County Area. As of January 2018, the BLS split the Los Angeles -Riverside -Orange County Area for All Urban Consumers to the Los Angeles -Long Beach -Anaheim Area and Riverside -San Bernardino -Ontario Area for All Urban Consumers. The February percentage difference no longer exists. Currently, the District uses the Riverside - San Bernardino -Ontario CPI index to compute the CPI difference each year. The Engineer shall compute the percentage difference between the CPI for January of each year and the CPI for the previous January and shall then adjust the existing assessment amount not to exceed such percentage for the following Fiscal Year.

Such assessment adjustments shall not be considered an increased in assessment. A proposed assessment that exceeds the adjusted maximum assessment rate will require property owner balloting approval before the increase may be imposed.

For Fiscal Year 2026/2027, the maximum assessment rate for Zones A19 -A23 and A26 will be adjusted by the Riverside -San Bernardino -Ontario Area January change in CPI of 3.24%.
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IV. DISTRICT BUDGETS
A. DESCRIPTION OF BUDGET ITEMS
The following section describes the services and costs that are funded through the District and shown in the District Budgets.

Maintenance Costs - Includes all contracted labor, material and equipment required to properly maintain the improvements within the District and Zones. The improvements include street lighting; fencing; planting materials; hardscape; irrigation, lighting, and drainage systems; tree trimming; sidewalks; graffiti removal; entry monuments and ornamental structures; water features; and associated appurtenant facilities within the District. In Zones A3, A5B, E, A25, and A26 the improvements are serviced and maintained by an association or property manager acting as an Agent of the City. In all other Zones the City utilizes the services of landscape maintenance contractors for all regularly scheduled maintenance. All improvements within the District will be maintained and serviced on a regular basis.

Landscape Water and Electric - The furnishing of water and electricity required for the operation and maintenance of the landscaped areas and facilities.

Capital Replacement Costs/Renovation - This may include repairs that are unforeseen and not normally included in the yearly maintenance cost. Repairs may include replacement or refurbishing of damaged amenities due to vandalism, storms, die off, and frost. Planned upgrades of the improvements that provide a direct benefit to the district/zone could also be included in capital replacement/renovation costs. Examples of upgrades include planned replacement of plant materials and/or renovation of irrigation or lighting systems that are necessary or requested by property owners.

Personnel/Overhead - The cost to all particular departments and staff of the City for providing the coordination of District services, operations and maintenance of the improvements, response to public concerns and education, and procedures associated with the levy and collection of assessments.

Professional Fees - These are the costs of contracting with professionals to provide services specific to the levy administration, county administration fee, and county per parcel fee. Professional levy administration includes preparation of the Report, resolutions, and levy submittal to the County. These fees can also include any additional administrative, legal, or engineering services specific to the District such as the cost to prepare and mail notices of the public meeting and hearing.

County administration fee is the actual cost to the District for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number. County per parcel fee is the cost to the District for the County to 2026/2027 Landscape and Lighting District No. 91-1 Page 14

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collect assessments on the property tax bills. This charge is based on a per assessment basis and is in addition to the County Administration Fee.

Reserve Fund - The Reserve Fund reflects funds being added or deleted from the Reserve Account for the current Fiscal Year. The Reserve Account provides for collection by the District of funds to operate the District from the time period of July 1 (Beginning of the Fiscal Year) through January when the County provides the City with the first installment of assessments collected from the property tax bills.

The Reserve Account reduces the need for the City to transfer funds from non - district accounts to pay for District charges during the first seven (7) months of the Fiscal Year.

City Contribution - Any funds added to the District or Zone account by the City from the City's General Fund Account.

Balance to Levy - This is the total amount to be levied to the parcels within the District for the current Fiscal Year. The Balance to Levy represents the sum of the Total Direct and Administration Costs, plus any revenue adjustments resulting from the Reserve Fund, Beginning Balance, City Contributions, Other Revenue Sources, or Capital Improvement Fund. This dollar amount represents the total funds to be collected from the parcels through assessments on the property tax bills.

Total Equivalent Benefit Unit (EBU) - The Equivalent Benefit Unit (EBU) is a numeric value calculated for each parcel based on the parcel's land use and size.

The EBU shown in the District Budgets represent the sum total of all individual parcel EBUs that receive benefit from the improvements for that Zone. Please refer to Section I I I fora more detailed explanation of the Method of Apportionment.

Maximum Levy per EBU — This is the rate per EBU approved by property owners in Fiscal Year 1997/1998 adjusted for inflation as described in the Method of Apportionment.

B. PERSONNEL OVERHEAD
Personnel overhead costs are set forth in the following table. The Finance Department's administrative costs have been budgeted at $7,795 for Fiscal Year 2026/2027. These costs include, but are not limited to, time spent by Finance Personnel on budgets, payment of bills, and working with consultants to ensure the levy is placed on County tax rolls. Total Public Works costs for Fiscal Year 2026/2027 have been budgeted at $28,502. These costs include, but are not limited to, time spent by Public Works Personnel on everyday inspections of landscaping, replacement of light bulbs and broken sprinklers, electrical maintenance, and monitoring of landscaping workers to make sure grass is maintained and weeds are clear.
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FINANCE
Accounting Technician I
70 $65.33
$4,573
Assistant Finance Director
30 $107.41
3,222
Total Finance
100
$7,795

PUBLIC WORKS
Public Works Supervisor
140
$78.43
$10,980
Maintenance Worker 11
260
$46.89
12,191
Public Works Admin Asst
40 $62.82
2,513
Public Works Director
20 $140.87
2,817
Total Public Works
460
$28,502
Grand Total
560
$36,297
',Loaded Hourly Rate Includes benefits and salary.

Totals may not he due to rounding.
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C. DISTRICT BUDGETS
TABLE II - 2026/2027 DISTRICT BUDGETS
Zone Description
Al (1)
EL
DORADO
A2 (1)
MONTECITOf

STARDUST
A3 (2)
CASA
DORADO

DIRECT COSTS
Contracted Maintenance Costs
$40,000
$17,000
$30,650
Utilities - Landscape Water & Electric
16,000
9,150
0 Maintenance Materials
38,200
3,400
0 Direct Subtotal
$94,200
$29,550
$30,650

ADMNISTRATION COSTS
Administrative Personnel Overhead
$459
$459
$459
Public Works Personnel Overhead
1,677
1,677
1,677
Professional Fees
2,426
404
809
Admin. Subtotal
$4,561
$2,539
$2,944
Total Direct and Admin. Costs
$98,761
$32,089
$33,594

CITY CONTRIBUTIONS AND OPERATING SUBSIDIES
Reserve Fund Contribution
$0
$0
$0
Annual City Operating Contribution
0 0
(3,065)
City of Indian Wells Contribution and Subsidy Subtotal
$0
$0
($3,065)
Remaining Balance to Levy

DISTRICT STATISTICS
$98,761
$32,089
$30,529
Total Parcels
378
59 123
Total Parcels Levied
372
56 116
Total Equivalent Benefit Unit (EBU)
363.32

56.00 116.00
FY 2026/2027 Levy Rate per EBU (projected)
$271.83
$573.02
$263.18
FY 202612027 Maximum Levy per EBU Allowed
$273.1663
$574.6586
$263.8546
Maximum Allowable Assessment
$99,246
$32,181
$30,607
FY 2025/2026 Applied Levy Rate per EBU
$242.38
$556.06
$254.26
FY 2025/2026 Maximum Levy per EBU Allowed
$264.5821
$556.6000
$255.5630

FUND BALANCE INFORMATION
Beginning Reserve Balance 2026 (estimated)
$112,152
$33,629
N/A
Reserve Fund Collection/(Deduction)
0 0
N/A
Ending Reserve Fund Balance 6/30/2027
$112,152
$33,629
$0
Mnimum 50% operating reserve Balance
$49,381
$16,045
$16,797
') City Contribution = Exempt due to no public benefit findings per original Engineer's Report. 2) City Contribution = Minimum of 10% of Direct Total Costs 'Totals may not tie due to rounding.

Note: The Applied Levy Rate is rounded to the nearest even penny. 2026/2027 Landscape and Lighting District No. 91-1 Page 17

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April 16, 2026