Indio City Council
June 15, 2022

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Article XIIIB of the State Constitution............................................................................................................25 Articles XIIIC and XIIID of the State Constitution.........................................................................................25 Proposition 62 ..................................................................................................................................................26 Proposition 1A .................................................................................................................................................27 Proposition 22 ..................................................................................................................................................27 Proposition 26 ..................................................................................................................................................27 Possible Future Initiatives................................................................................................................................28 TAX MATTERS..................................................................................................................................................28 CERTAIN LEGAL MATTERS ..........................................................................................................................30 ABSENCE OF LITIGATION .............................................................................................................................30 UNDERWRITING ..............................................................................................................................................30 RATING ..............................................................................................................................................................30 MUNICIPAL ADVISOR.....................................................................................................................................31 CONTINUING DISCLOSURE...........................................................................................................................31 FINANCIAL STATEMENTS OF THE CITY....................................................................................................31 MISCELLANEOUS ............................................................................................................................................31 APPENDIX A THE CITY OF INDIO ........................................................................................................A-1 APPENDIX B SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS............................................B-1

APPENDIX C ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2021...........................................................................C-1 APPENDIX D PROPOSED FORM OF BOND COUNSEL OPINION ....................................................D-1 APPENDIX E FORM OF CONTINUING DISCLOSURE AGREEMENT ..............................................E-1 APPENDIX F BOOK-ENTRY ONLY SYSTEM .....................................................................................F-1

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OFFICIAL STATEMENT
$__________*

INDIO PUBLIC FINANCING AUTHORITY
LEASE REVENUE BONDS, SERIES 2022B

INTRODUCTION
General
This Official Statement (which includes the cover page, inside cover page and the appendices hereto) (the “Official Statement”), provides certain information concerning the sale and delivery of $__________ * aggregate principal amount of Indio Public Financing Authority (Lease Revenue Bonds, Series 2022B (the “Series 2022B Bonds”).

The net proceeds of the sale of the Series 2022B Bonds will be used to (i) refund the outstanding Indio Public Financing Authority Lease Revenue Refunding Bonds, Series 2012 (Public Capital Improvements) (the “2012 Bonds”); (ii) finance the costs of the acquisition, construction and installation of certain capital improvements of the City of Indio (the “City”), as described herein, (iii) fund a Reserve Fund for the Series 2022B Bonds, and (iv) pay the costs incurred in connection with the issuance of the Series 2022B Bonds. See “SOURCES AND USES OF FUNDS” herein.

The Series 2022B Bonds are equally and ratably payable from base rental payments (the “Base Rental Payments”) to be made by the City for the right to use certain real property (as further described under the caption “THE PROPERTY”) (the “Property”) pursuant to a Lease Agreement, dated as of _____ 1, 2022 (the “Lease Agreement”), between the City, as lessee, and the Indio Public Financing Authority (the “Authority”), as lessor.

The Series 2022B Bonds will be issued pursuant to an Indenture, dated as of _____ 1, 2022 (the “Indenture”), by and among the Authority, the City and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”). Pursuant to the Indenture, the Authority may issue additional bonds (the “Additional Bonds”) payable from the Base Rental Payments on a parity with the Series 2022B Bonds (the Series 2022B Bonds and any such Additional Bonds being collectively referred to as the “Bonds”).

Pursuant to a Ground Lease, dated as of _____ 1, 2022 (the “Ground Lease”), by and between the City and the Authority, the City has leased the Property to the Authority. The Authority has subleased the Property to the City under the Lease Agreement. The Lease Agreement obligates the City to make Base Rental Payments to the Authority.

The Trustee and the Authority have entered into an Assignment Agreement, dated as of _____ 1, 2022, pursuant to which the Authority has assigned to the Trustee for the benefit of the Bond Owners substantially all of the Authority’s right, title and interest in and to the Ground Lease and the Lease Agreement, including its rights to receive the Base Rental Payments due under the Lease Agreement and to enforce any remedies in the event of a default under the Lease Agreement by the City.

The City will covenant under the Lease Agreement to take such action as may be necessary to include all Rental Payments, which are comprised of Base Rental Payments and Additional Rental Payments (which include taxes and assessments affecting the Property, administrative costs of the Authority relating to the Property, fees and expenses of the Trustee and other amounts payable under the Lease Agreement), due under * Preliminary, subject to change.

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the Lease Agreement as a separate line item in its annual budgets and to make the necessary annual appropriations therefor, subject to abatement as described herein.

Base Rental Payments are subject to complete or partial abatement in the event and to the extent that there is substantial interference with the City’s right to use and occupy the Property or any portion thereof.

See “RISK FACTORS—Abatement.” Abatement of Base Rental Payments under the Lease Agreement, to the extent that payment is not made from alternative sources as set forth below, would result in all Bond Owners receiving less than the full amount of principal of and interest on the Bonds. To the extent that proceeds of insurance are available, Base Rental Payments (or a portion thereof) may be made from such proceeds of insurance during periods of abatement.

The Series 2022B Bonds are special obligations of the Authority, payable solely from Base Rental Payments and the other assets pledged therefor under the Indenture. Neither the faith and credit nor the taxing power of the Authority, the City or the State of California (the “State”), or any political subdivision thereof, is pledged to the payment of the Series 2022B Bonds. The Authority has no power to tax.

The obligation of the City to make the Base Rental Payments does not constitute a debt of the City, the State or of any political subdivision thereof within the meaning of any constitutional or statutory debt limit or restriction, and does not constitute an obligation for which the City or the State is obligated to levy or pledge any form of taxation or for which the City or the State has levied or pledged any form of taxation.

The City has agreed to provide, or cause to be provided, to the Municipal Securities Rulemaking Board for purposes of Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission certain annual financial information and operating data and, in a timely manner, notice of certain listed events. These covenants have been made in order to assist the Underwriters in complying with SEC Rule 15c2-12(b)(5). See “CONTINUING DISCLOSURE” herein for a description of the specific nature of the annual report and notices of listed events and a summary description of the terms of the disclosure agreement pursuant to which such reports are to be made.

U.S. Bank Trust Company, National Association, Los Angeles, California, will act as Trustee with respect to the Series 2022B Bonds. The Series 2022B Bonds will be issued subject to the approval as to their legality by Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, Bond Counsel. Certain legal matters will be passed upon for the City and the Authority by the City Attorney of the City of Indio and by Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, Disclosure Counsel. Certain legal matters will be passed upon for the Underwriters by Norton Rose Fulbright US LLP, Los Angeles, California. The City’s financial statements for the fiscal year ended June 30, 2021 included as Appendix C hereto have been audited by Lance, Soll & Lunghard, LLP (the “Auditor”). See APPENDIX C—“ ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2021” herein. The Auditor has not undertaken to update the audited financial statements of the City or its report or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in this Official Statement.

Certain events could affect the ability of the City to make the Base Rental Payments when due. See “RISK FACTORS” for a discussion of certain factors that should be considered, in addition to other matters set forth herein, in evaluating an investment in the Series 2022B Bonds.

COVID-19 Related Impacts on the City
The coronavirus respiratory disease (“COVID-19”) pandemic has adversely impacted the City and the local economy in various ways. Since mid-March 2020, based on guidance and directives from the State and public health agencies, the City has undergone varying degrees of closure and limited reopening of City public

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buildings and businesses such as retail, logistics and manufacturing, offices and limited personal services. See the caption “—CITY FINANCIAL INFORMATION—Impacts of COVID-19” in Appendix A for more information with respect to the financial and other impacts of COVID-19 on the City. See also “CERTAIN RISK FACTORS — Impacts of Coronavirus on the City.”
Bondholders’ Risks
Certain events could affect the ability of the City to make the Base Rental Payments when due. See “RISK FACTORS” for a discussion of certain factors that should be considered, in addition to other matters set forth herein, in evaluating an investment in the Series 2022B Bonds.

The presentation of information, including tables of receipt of revenues, is intended to show recent historical information and, except for a budget discussion for Fiscal Year 2022-23, is not intended to indicate future or continuing trends in the financial position or other affairs of the City. No representation is made that past experience, as it might be shown by such financial and other information, will necessarily continue or be repeated in the future. See APPENDIX A for financial and operating information related to the City.

Additional Bonds
On the date of issuance of the Series 2022B Bonds, the City also expects to enter into a separate Lease Agreement with the Authority in connection with the issuance by the Authority of the Indio Public Financing Authority Lease Revenue Bonds, Series 2022A (the “Series 2022A Bonds”). The Series 2022A Bonds are being issued for the purposes of financing the City’s proposed Public Safety Campus Project. See the caption “THE CITY HALL AND LIBRARY PROJECT” and the caption “CITY FINANCIAL INFORMATION— Long-Term Liabilities” in APPENDIX A hereto. The lease payments made in connection with the Series 2022A Bonds do not secure the Series 2022B Bonds and are not available to pay debt service on the Series 2022B Bonds. Furthermore, the properties leased under the Lease Agreement with respect to the Series 2022A Bonds are different from those subject to the Ground Lease and the Lease Agreement.

Other Information in this Official Statement
The summaries or references to the Indenture, the Lease Agreement, the Ground Lease, the Assignment Agreement and other documents, agreements and statutes referred to herein, and the description of the Series 2022B Bonds included in this Official Statement, do not purport to be comprehensive or definitive, and such summaries, references and descriptions are qualified in their entireties by reference to each such document or statute. All capitalized terms used in this Official Statement (unless otherwise defined herein) which are defined in the Indenture or the Lease Agreement shall have the meanings set forth therein, some of which are summarized in APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS.” THE SERIES 2022B BONDS
General
The Series 2022B Bonds will be issued in fully registered form without coupons in denominations of $5,000 or any integral multiple thereof. The Series 2022B Bonds will be dated as of and bear interest (calculated on the basis of a 360-day year comprised of twelve 30-day months) from the dated date thereof at the rates set forth on the inside cover page hereof. Interest on the Series 2022B Bonds will be paid semiannually on May 1 and November 1 (each, an “Interest Payment Date”) of each year, commencing [November 1, 2022].

Interest on the Series 2022B Bonds will be payable from the Interest Payment Date next preceding the date of authentication thereof unless (i) a Series 2022B Bond is authenticated on or before an Interest Payment Date and after the close of business on the fifteenth day of the month next preceding such Interest Payment

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Date, whether or not such day is a Business Day (the “Record Date”), in which event it will bear interest from such Interest Payment Date, (ii) a Series 2022B Bond is authenticated on or before the first Record Date, in which event interest thereon will be payable from the dated date thereof, or (iii) interest on any Series 2022B Bond is in default as of the date of authentication thereof, in which event interest thereon will be payable from the date to which interest has been paid in full, payable on each Interest Payment Date. Interest will be paid in lawful money of the United States on each Interest Payment Date to the Persons in whose names the ownership of the Series 2022B Bonds is registered on the Registration Books at the close of business on the immediately preceding Record Date, except as provided below. Interest will be paid by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date or by wire transfer to Owners of more than $1,000,000 in principal amount of Series 2022B Bonds who have provided account information and wiring instructions satisfactory to the Trustee.

The principal of the Series 2022B Bonds will be payable in lawful money of the United States of America upon presentation and surrender thereof upon maturity or earlier redemption at the Office of the Trustee. The Series 2022B Bonds will be subject to redemption as set forth herein.

Registration, Transfers and Exchanges
The Series 2022B Bonds will be issued as fully registered bonds, registered in the name of Cede & Co. as nominee of DTC, and will be available to actual purchasers of the Series 2022B Bonds (the “Beneficial Owners”) in the denominations set forth above, under the book-entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants (as defined in Appendix F) as described herein.

Beneficial Owners will not be entitled to receive physical delivery of the Series 2022B Bonds. See “THE SERIES 2022B BONDS—Book-Entry Only System.”
Redemption
Extraordinary Redemption from Condemnation Award or Insurance Proceeds. The Series 2022B Bonds shall be subject to redemption, in whole or in part, on any date, in denominations of $5,000 or any integral multiple thereof, from and to the extent of: (i) Net Insurance Proceeds received with respect to all or a portion of the Property, deposited by the Trustee in the Redemption Fund pursuant to the Indenture, and (ii) eminent domain proceeds received pursuant to the Lease Agreement, at a Redemption Price equal to the principal amount of the Series 2022B Bonds to be redeemed, plus accrued interest thereon to the date of redemption, without premium.

Optional Redemption. The Series 2022B Bonds maturing on or after November 1, 20__, are subject to optional redemption, in whole or in part, on any date on or after November 1, 20__, in denominations of $5,000 or any integral multiple thereof, from and to the extent of prepaid Base Rental Payments paid pursuant to the Lease Agreement, at a Redemption Price equal to the principal amount of the Series 2022B Bonds to be redeemed, plus accrued interest thereon to the date of redemption, without premium.

Mandatory Sinking Fund Redemption. The Series 2022B Bonds with a stated maturity on November 1, 20__ (the “Term Bonds”) are subject to mandatory sinking fund redemption in part (by lot) on each November 1 on and after November 1, 20__, in integral multiples of $5,000 at a Redemption Price equal to the principal amount thereof plus accrued interest to the date fixed for redemption, without premium, in accordance with the following schedule:

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Redemption Date
(November 1)
Principal
Amount
$
*
* Final Maturity.

In the event of a partial optional redemption or extraordinary mandatory redemption of any of the Term Bonds, each of the remaining mandatory sinking fund payments for such Term Bonds will be reduced, as nearly as practicable, on a pro rata basis in the amount of $5,000 or any integral multiple thereof as directed by an Authorized City Representative.

Selection of Bonds for Redemption. Whenever provision is made in the Indenture for the redemption of less than all of the Bonds, the Trustee shall select the Bonds to be redeemed from all Bonds not previously called for redemption (a) with respect to any optional redemption of Bonds of a Series, among maturities of Bonds of such Series as directed in a Written Request of the Authority provided to the Trustee at least 30 but no more than 60 days prior to the date of such redemption, (b) with respect to any redemption from and to the extent of any insurance proceeds or condemnation award received with respect to all or a portion of the Property and the corresponding provision of any Supplemental Indenture pursuant to which Additional Bonds are issued, among maturities of all Series of Bonds on a pro rata basis as nearly as practicable, as directed in a Written Request of the Authority provided to the Trustee at least 30 but no more than 60 days prior to the date of such redemption, and (c) with respect to any other redemption of Additional Bonds, among maturities as provided in the Supplemental Indenture pursuant to which such Additional Bonds are issued, and by lot among Bonds of the same Series with the same maturity in any manner which the Trustee in its sole discretion deems appropriate and fair. For purposes of such selection, all Bonds will be deemed to be comprised of separate $5,000 denominations and such separate denominations will be treated as separate Bonds which may be separately redeemed.

Notice of Redemption. Notice of redemption shall be given by the Trustee, not less than 20 nor more than 60 days prior to the redemption date (i) as to Series 2022B Bonds not registered in the name of a Securities Depository or its nominee, to the respective Owners of the Series 2022B Bonds designated for redemption at their addresses appearing on the Registration Books, (ii) as to Series 2022B Bonds registered in the name of a Securities Depository or its nominee, to such Securities Depository for such Series 2022B Bonds, and (iii) the Information Services. Notice of redemption to the Owners pursuant to (i) above shall be given by mail at their addresses appearing on the Registration Books, or any other method agreed upon by such Owner and the Trustee. Notice of redemption to the Securities Depositories pursuant to (ii) above and the Information Services pursuant to (iii) above shall be given by electronically secure means, or any other method agreed upon by such entities and the Trustee.

Such notice will state the date of the notice, the redemption date, the redemption place and the Redemption Price and shall designate the CUSIP numbers, the Series 2022B Bond numbers and the maturity or maturities (except in the event of redemption of all of the Series 2022B Bonds of such maturity or maturities in whole) of the Series 2022B Bonds to be redeemed, and will require that such Series 2022B Bonds be then surrendered at the principal corporate trust office of the Trustee for redemption at the Redemption Price, giving notice also that further interest on such Series 2022B Bonds will not accrue from and after the date fixed for redemption. Neither the failure to receive any notice so given, nor any defect in such notice, will affect the validity of the proceedings for the redemption of the Series 2022B Bonds or the cessation of accrual of interest thereon from and after the date fixed for redemption.

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With respect to any notice of optional redemption of the Series 2022B Bonds, such notice may state that such redemption is conditional upon the receipt by the Trustee, on or prior to the date fixed for such redemption, of moneys sufficient to pay the principal of, premium if any, and interest on the Series 2022B Bonds to be redeemed and upon other conditions set forth therein and that, if such money has not been so received or such other conditions have not been satisfied, said notice is of no force and effect and the Trustee is not required to redeem such Series 2022B Bonds. If any condition stated in the redemption notice for an optional redemption have not been satisfied on or prior to the redemption date: (i) the redemption notice will be of no force and effect, (ii) the Authority will not be required to redeem such Series 2022B Bonds, (iii) the redemption will not be made, and (iv) the Trustee will within a reasonable time thereafter give notice to the persons in the manner in which the conditional redemption notice was given that such condition or conditions were not met and that the redemption was canceled.

Partial Redemption of Bonds. Upon surrender of any Bonds redeemed in part only, the Authority will execute and the Trustee will authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of the same Series in authorized denominations equal in aggregate principal amount representing the unredeemed portion of the Bonds surrendered.

Effect of Notice of Redemption. Notice having been given as aforesaid, and moneys for the Redemption Price, and the interest to the applicable date fixed for redemption, having been set aside in the Redemption Fund, the Bonds will become due and payable on said date, and, upon presentation and surrender thereof at the principal corporate trust office of the Trustee, said Bonds will be paid at the Redemption Price thereof, together with interest accrued and unpaid to said date.

If, on said date fixed for redemption, moneys for the Redemption Price of all the Bonds to be redeemed, together with interest to said date, will be held by the Trustee so as to be available therefor on such date, and, if notice of redemption thereof has been given as aforesaid and not canceled, then, from and after said date, interest on said Bonds will cease to accrue and become payable. All moneys held by or on behalf of the Trustee for the redemption of Bonds will be held in trust for the account of the Owners of the Bonds so to be redeemed without liability to such Owners for interest thereon. All Bonds paid at maturity or redeemed prior to maturity pursuant to the provisions of the Indenture will be canceled upon surrender thereof and destroyed.

Book-Entry Only System
DTC will act as securities depository for the Series 2022B Bonds. The Series 2022B Bonds will be issued as fully-registered bonds registered in the name of Cede & Co. (DTC’s partnership nominee). One fully-registered Series 2022B Bond will be issued for each maturity of the Series 2022B Bonds, each in the initial aggregate principal amount of such maturity, and will be deposited with DTC. See APPENDIX F— “BOOK-ENTRY ONLY SYSTEM.”
SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS Pledge of Revenues
The Series 2022B Bonds are equally and ratably payable from and secured by Base Rental Payments and certain amounts on deposit in the Base Rental Payment Fund, the Interest Fund, the Capitalized Interest Fund, the Principal Fund and the Redemption Fund established under the Indenture. Base Rental Payments will be payable by the City from any and all legally available funds, however, the City expects that its General Fund will be the primary source of funds to make Base Rental Payments. See “RISK FACTORS” and APPENDIX A—THE CITY OF INDIO for a description of such available funds and the potential risks associated with the availability of such funds to make Base Rental Payments. The City covenants in the Lease Agreement to take such action as may be necessary to include all Base Rental Payments and Additional Rental

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Payments due under the Lease Agreement in its annual budgets and to make the necessary annual appropriations therefor.

The Authority, pursuant to the Assignment Agreement, has assigned to the Trustee for the benefit of the Bond Owners all of the Authority’s right, title and interest in and to the Ground Lease and the Lease Agreement, including, without limitation, its right to receive Base Rental Payments to be paid by the City under and pursuant to the Lease Agreement; provided that, the Authority will retain the rights to indemnification, to give approvals and consents under the Lease Agreement and the Ground Lease and to payment or reimbursement of its reasonable costs and expenses under the Lease Agreement. The City will pay Base Rental Payments directly to the Trustee, as assignee of the Authority. See “—Base Rental Payments” below. Pursuant to the Indenture, the Authority may issue Additional Bonds payable from the Base Rental Payments on a parity with the Series 2022B Bonds. See APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—THE INDENTURE—ISSUANCE OF BONDS; APPLICATION OF PROCEEDS—Conditions for the Issuance of Additional Bonds” and “—Procedure for the Issuance of Additional Bonds.”
Subject only to the provisions of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth in the Indenture, all of the Base Rental Payments and any other amounts (including proceeds of the sale of the Bonds) held in the Base Rental Payment Fund, the Interest Fund, the Capitalized Interest Fund, the Principal Fund and the Redemption Fund are pledged by the Authority pursuant to the Indenture to secure the payment of the principal of and interest on the Bonds in accordance with their terms, the provisions of the Indenture and the Act. Said pledge constitutes a first lien on such assets.

The Bonds are special obligations of the Authority, payable solely from Base Rental Payments and the other assets pledged therefor under the Indenture. Neither the faith and credit nor the taxing power of the Authority, the City or the State, or any political subdivision thereof, is pledged to the payment of the Bonds. The Authority has no power to tax.

Base Rental Payments
Rental Payments (defined in the Lease Agreement as collectively, the Base Rental Payments and the Additional Rental Payments) will be paid by the City to the Authority for and in consideration of the right to use and occupy the Property and in consideration of the continued right to the quiet use and enjoyment thereof during each Rental Period for which such Rental Payments are to be paid. Each Base Rental Payment will be deposited with the Trustee no later than the 25th day of the month next preceding each Interest Payment Date (the “Base Rental Deposit Date”) on which such Base Rental Payment is due. All Base Rental Payments will be paid directly by the City to the Trustee, and if received by the Authority at any time will be transferred by the Authority to the Trustee within one Business Day after the receipt thereof. All Base Rental Payments received by the Trustee will be deposited by the Trustee in the Base Rental Payment Fund.

Pursuant to the Indenture, on the Business Day immediately preceding each Interest Payment Date and on the Business Day immediately preceding each Principal Payment Date, the Trustee will transfer amounts in the Base Rental Payment Fund as are necessary to the Interest Fund and the Principal Fund to provide for the payment of and the interest on and principal of the Series 2022B Bonds.

The Base Rental due under the Lease Agreement is calculated to be sufficient to pay the principal of and interest on the Series 2022B Bonds. The debt service schedules for the Series 2022B Bonds are set forth below under the heading “DEBT SERVICE SCHEDULE.”
The obligation of the City to make the Base Rental Payments does not constitute a debt of the City, the State or of any political subdivision thereof within the meaning of any constitutional or statutory debt limit or restriction, and does not constitute an obligation for which the City or the State is

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obligated to levy or pledge any form of taxation or for which the City or the State has levied or pledged any form of taxation.

Additional Rental Payments
For the right to use and occupy the Property, the Lease Agreement requires the City to pay, as Additional Rental payments thereunder, in addition to the Base Rental Payments, such amounts as shall be required for the payment of the following:
(i) All taxes and assessments of any type or nature charged to the Authority or the City or affecting the Property or the respective interests or estates of the Authority or the City therein. (ii) All reasonable administrative costs of the Authority relating to the Property including, but without limiting the generality of the foregoing, salaries, wages, fees and expenses, compensation and indemnification of the Trustee payable by the Authority under the Indenture, fees of auditors, accountants, attorneys or engineers, and all other necessary and reasonable administrative costs of the Authority or charges required to be paid by it in order to maintain its existence or to comply with the terms of the Indenture or the Lease Agreement or to defend the Authority and its members, officers, agents and employees.
(iii) Insurance premiums for all insurance required pursuant to the Lease Agreement. (iv) Any amounts with respect to the Lease Agreement or the Bonds required to be rebated to the federal government in accordance with section 148(f) of the Internal Revenue Code of 1986. (v) All other payments required to be paid by the City under the provisions of the Lease Agreement or the Indenture.

Amounts constituting Additional Rental Payments payable under the Lease Agreement will be paid by the City directly to the person or persons to whom such amounts are payable. The City will pay all such amounts when due or at such later time as such amounts may be paid without penalty or, in any other case, within 60 days after notice in writing from the Trustee to the City stating the amount of Additional Rental Payments then due and payable and the purpose thereof.

Abatement
Base Rental Payments and Additional Rental Payments are paid by the City in each Rental Period for and in consideration of the right to use and occupy the Property. Except as otherwise specifically provided in the Lease Agreement, during any period in which, by reason of material damage to, or destruction or condemnation of, the Property, or any defect in title to the Property, there is substantial interference with the City’s right to use and occupy any portion of the Property, Rental Payments are subject to abatement proportionately, and the City waives the benefits of Civil Code Sections 1932(1), 1932(2) and 1933(4) and any and all other rights to terminate the Lease Agreement by virtue of any such interference, and the Lease Agreement will continue in full force and effect. The amount of such abatement will be agreed upon by the City and the Authority; provided, however, that the Rental Payments due for any Rental Period may not exceed the annual fair rental value of that portion of the Property available for use and occupancy by the City during such Rental Period. Any such abatement will continue for the period commencing with the date of interference resulting from such damage, destruction, condemnation or title defect and, with respect to damage to or destruction of the Property, ending when such use and occupancy is restored. In the event of abatement, the term of the Lease Agreement will be extended until the date upon which (i) all Bonds shall be fully paid, or provision therefor made in accordance with the Indenture, or (ii) the Indenture shall be discharged by its terms and all Rental Payments shall have been paid in full. Notwithstanding the foregoing, the term of the Lease Agreement will in no event be extended ten years beyond November 1, 20__. The Trustee cannot terminate

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the Lease Agreement in the event of such substantial interference. Abatement of Base Rental Payments and Additional Rental Payments is not an event of default under the Lease Agreement and does not permit the Trustee to take any action or avail itself of any remedy against the City. See APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—THE LEASE AGREEMENT—RENTAL PAYMENTS— Rental Abatement.”
Notwithstanding the foregoing, to the extent that moneys are available for the payment of Rental Payments due under the Lease Agreement in any of the funds and accounts established under the Indenture (including as a result of the availability of insurance proceeds), such Rental Payments will not be abated as provided above but, rather, will be payable by the City as a special obligation payable solely from said funds and accounts.

Substitution, Addition and Removal of Property
The Authority and the City may amend the Lease Agreement to substitute alternate property for any portion of the Property, to release a portion of the Property from the Lease Agreement or to add additional property to the encumbrance of the Lease Agreement, upon compliance with all of the conditions set forth in the Lease Agreement and described below. After a substitution or release, the portion of the Property for which the substitution or release has been effected will be released from the leasehold encumbrance of the Lease Agreement.

The Lease Agreement provides that there will be no reduction in or abatement of the Base Rental Payments due from the City thereunder as a result of such substitution, release or addition. Any such substitution, release or addition is subject to the following specific conditions precedent to such substitution, release or addition:
(a) a Written Certificate of the City to the effect that the Property, as constituted after such substitution, release or addition: (i) has an annual fair rental value at least equal to the maximum Base Rental Payments payable by the City in any Rental Period, and (ii) has a useful life in excess of the final maturity of any Outstanding Bonds.
(b) with respect to any substituted or added property, the City obtains or causes to be obtained a CLTA or ALTA title insurance policy or policies with respect to the Property (as such term will be defined after such substitution or addition) that when taken together with other title insurance policies covering the Property, will be in an amount at least equal to the aggregate principal amount of any Outstanding Bonds, of the type and with the endorsements described in the Lease Agreement; and (c) the City, the Authority and the Trustee execute, and the City causes to be recorded with the County of Riverside Recorder, any document necessary to reconvey to the City the portion of the Property being released and to include any substituted or added real property in the description of the Property contained in the Lease Agreement and in the Ground Lease.

As described further under the captions “THE CITY HALL AND LIBRARY PROJECT” and “THE PROPERTY,” a portion of the Property under the Ground Lease and the Lease Agreement consists of the City Hall and Library Project, a portion of the costs of the acquisition, construction and installation of which the net proceeds of the Series 2022B Bonds are expected to finance. Construction on the City Hall and Library Project is expected to begin in early 2023. The Lease Agreement provides that, upon completion of construction of the City Hall and Library Project, the City may release the portions of the Property other than the City Hall and Library Project and the related real property upon which the City Hall and Library Project are located from the Ground Lease and the Lease Agreement, subject to certain requires under the Lease Agreement. After such release, the City Hall and Library Project and the related real property upon which the City Hall and Library Project is located will constitute the Property leased under the Ground Lease and the Lease Agreement.

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See APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—THE LEASE AGREEMENT—NO CONSEQUENTIAL DAMAGES; USE OF THE PROPERTY; SUBSTITUTION OR RELEASE—Substitution or Release of, or Addition to, the Property.” Action on Default
Should the City default under the Lease Agreement, the Trustee, as assignee of the Authority under the Lease Agreement, may terminate the Lease Agreement and recover certain damages from the City, or may retain the Lease Agreement and hold the City liable for all Base Rental Payments thereunder on an annual basis, and will have the right to re-enter and re-let the Property. In the event such re-letting occurs, the City would be liable for any resulting deficiency in Base Rental Payments. See “RISK FACTORS—Limited Recourse on Default; No Acceleration of Base Rental.”
For purposes of certain actions of Bond Owners under the Indenture and the Lease Agreement, such as certain consents and amendments and the direction of remedies following default, Bond Owners do not act alone and may not control such matters to the extent such matters are not supported by the requisite number of the Owners of all Bonds.

In the event of a default under the Lease Agreement there is no right under any circumstances to accelerate the Base Rental Payments or otherwise declare any Base Rental Payments not then in default to be immediately due and payable. There is no right under the Indenture to accelerate debt service payments on the Bonds in the event of a default under the Indenture or the Lease Agreement.

For a description of the events of default and permitted remedies of the Trustee (as assignee of the Authority) contained in the Lease Agreement and the Indenture, see APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—THE LEASE AGREEMENT—DEFAULTS AND REMEDIES” and “—THE INDENTURE—DEFAULT AND LIMITATIONS OF LIABILITY.”
Reserve Fund
The Indenture establishes a Reserve Fund and a Series 2022B Bonds Account therein, which is required to be maintained in an amount equal to $________ (the “Reserve Fund Requirement”). Moneys in the Series 2022B Bonds Account of the Reserve Fund will be held in trust as a reserve for the payment when due of all debt service payments on the Series 2022B Bonds. See APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—THE INDENTURE—SECURITY FOR THE BONDS; FLOW OF FUNDS—Flow of Funds.”
Additional Bonds
Pursuant to the Indenture, the Authority may issue Additional Bonds payable from the Base Rental Payments on a parity with the outstanding Bonds upon satisfaction of certain conditions, including, but not limited to, the following:
(a) The Authority shall be in compliance with all agreements, conditions, covenants and terms contained in the Indenture, in the Lease Agreement and in the Ground Lease required to be observed or performed by it;
(b) The City shall be in compliance with all agreements, conditions, covenants and terms contained in the Indenture, in the Lease Agreement and in the Ground Lease required to be observed or performed by it; and
(c) The Ground Lease and the Lease Agreement shall have been amended, to the extent necessary, (i) so as to increase the Base Rental Payments payable by the City thereunder by an aggregate

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amount equal to the principal of and interest on such Additional Bonds, payable at such times and in such manner as may be necessary to provide for the payment of the principal of and interest on such Additional Bonds; provided, however, that no such amendment shall be made such that the sum of Base Rental Payments, including any increase in the Base Rental Payments as a result of such amendment, plus Additional Rental Payments, in any Rental Period shall be in excess of the annual fair rental value of the Property after taking into account the use of the proceeds of any Additional Bonds issued in connection therewith (evidence of the satisfaction of such condition shall be made by a Written Certificate of the City); and (ii) to include provisions for the prepayment of Base Rental Payments attributable to such Additional Bonds.

Notwithstanding satisfaction of the other conditions to the issuance of Additional Bonds set forth in the Indenture, no such issuance may occur if (1) an event of default (within the meaning of the Lease Agreement) (or any event which, once all notice or grace periods have passed, would constitute such event of default) exists unless such event of default shall be cured upon such execution or issuance or (2) the Reserve Fund is not fully funded at the Reserve Requirement.

See APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—THE INDENTURE—ISSUANCE OF BONDS; APPLICATION OF PROCEEDS—Conditions for the Issuance of Additional Bonds” and “—Procedure for the Issuance of Additional Bonds.” Insurance
General. The Lease Agreement requires that the City maintain certain insurance coverages on the Property for loss due to property damage, title defect, loss of use and other liability as described below. Under the Lease Agreement, the City may self-insure for the coverages required under the captions “Property Insurance,” “General Liability Insurance,” and “Workers’ Compensation Insurance.” The City self-insures up to certain amounts and purchases additional coverage from commercial carriers as described in Appendix A hereto under “INFORMATION REGARDING THE CITY OF INDIO — Risk Management.” Property Insurance. The Lease Agreement requires the City to maintain or cause to be maintained fire, lightning and special extended coverage insurance (which includes coverage for vandalism and malicious mischief, but need not include coverage for earthquake damage) on all improvements constituting any part of the Property, which with respect to any portion of the Property for which initial construction of improvements thereon has not been completed, initially may be in the form of a builder’s risk policy providing coverage in an amount not less than the construction costs expended for such projects and, if no builder’s risk policy is in effect in an amount not less than 100% of the replacement cost of such improvements. Such property insurance required to be maintained pursuant to the Lease Agreement may be subject to a deductible in an amount not to exceed $500,000. The City does not currently maintain insurance coverage for earthquake damage on the Property subject to the Ground Lease and the Lease Agreement, other than for the City Council chambers, which are located on a portion of the property on which the existing City Hall is located. See the caption “THE PROPERTY.”
General Liability Insurance. The Lease Agreement requires the City to maintain or cause to be maintained a standard commercial general liability insurance policy or policies in protection of the City, the Authority and their respective members, officers, agents and employees. Said policy or policies shall provide for indemnification of said parties against direct or contingent loss or liability for damages for bodily and personal injury, death or property damage occasioned by reason of the use or ownership of the Property. Said policy or policies shall provide coverage in the minimum liability limits of $1,000,000 for personal injury or death of each person and $3,000,000 for personal injury or deaths of two or more persons in a single accident or event, and in a minimum amount of $500,000 for damage to property (subject to a deductible clause of not to exceed $100,000) resulting from a single accident or event. Such commercial general liability and property damage insurance may, however, be in the form of a single limit policy in the amount of $3,000,000 covering all such risks.

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Rental Interruption Insurance. The Lease Agreement requires the City to maintain rental interruption insurance to cover the Authority’s loss, total or partial, of Base Rental Payments resulting from the loss, total or partial, of the use of any part of the Property as a result of any of the hazards covered by the casualty insurance described above under “— Property Insurance,” in an amount sufficient at all times to pay an amount not less than the product of two times the maximum amount of Base Rental Payments scheduled to be paid during any Rental Period. The City is not permitted to self-insure its obligation to maintain rental interruption insurance.

Workers’ Compensation Insurance. The City is also required to maintain or cause to be maintained workers’ compensation insurance issued by a responsible carrier authorized under the laws of the State to insure employers against liability for compensation under the California Labor Code, or any act enacted as an amendment or supplement thereto or in lieu thereof, such workers’ compensation insurance to cover all persons employed by the City in connection with the Property and to cover full liability for compensation under any such act.

Title Insurance. The City shall provide, at its own expense, one or more CLTA or ALTA title insurance policies for the Property, in the aggregate amount of not less than the initial aggregate principal amount of the Bonds. Said policy or policies shall insure (a) the fee interest of the City in the Property, (b) the Authority’s ground leasehold estate in the Property under the Ground Lease, and (c) the City’s leasehold estate under the Lease in the Property, subject only to Permitted Encumbrances. All Net Insurance Proceeds received under said policy or policies shall be deposited with the Trustee and applied as provided in the Indenture. So long as any of the Bonds remain Outstanding, each policy of title insurance obtained pursuant to the Indenture or the Lease Agreement or required thereby shall provide that all proceeds thereunder shall be payable to the Trustee for the benefit of the Bond Owners.

See APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—THE LEASE AGREEMENT—INSURANCE.”

SOURCES AND USES OF FUNDS
The sources and uses of funds with respect to the Series 2022B Bonds are shown below.

Sources
Principal Amount of Series 2022B Bonds $
Plus Original Issue Premium
Total Sources $
Uses
Project Fund $
Escrow Fund
Underwriter’s Discount
Costs of Issuance(1)
Total Uses $
(1) Includes legal, municipal advisory, rating agency, printing fees and other miscellaneous costs of issuance.

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DEBT SERVICE SCHEDULE
Following is the annual schedule of debt service due with respect to the Series 2022B Bonds:

Fiscal Year Interest Principal Total
Total

THE REFUNDING PLAN
General
Pursuant to the Indenture, the Authority will deliver a portion of the proceeds of the Series 2022B Bonds to the Trustee to transfer to U.S. Bank Trust Company, National Association, acting as escrow agent (the “Escrow Agent”), for deposit in an escrow fund (the “Escrow Fund”) established under the Escrow Agreement, dated as of _____ 1, 2022, by and among the Authority, the City and the Escrow Agent (the “Escrow Agreement”). Proceeds of the Series 2022B Bonds and other moneys held in the Escrow Fund to refund the 2012 Bonds will be held in cash and used to pay the regularly scheduled debt service on the 2012 Bonds on November 1, 2022 and to refund the outstanding 2012 Bonds maturing after November 1, 2022 on November 1, 2022. Amounts in the Escrow Fund will be irrevocably pledged to secure, when due, the payment of the principal of, interest and premium due with respect to the 2012 Bonds and will not be available to pay debt service on the Series 2022B Bonds.

Verification
Upon issuance of the Series 2022B Bonds, Causey Demgen & Moore P.C, Denver, Colorado, as verification agent, will deliver a report on the mathematical accuracy of certain computations based upon certain information and assertions provided to it by the Underwriters relating to: (a) the adequacy of amounts in the Escrow Fund to pay when due the regularly scheduled debt service on the 2012 Bonds on November 1, 2022 and to refund the outstanding 2012 Bonds maturing after November 1, 2022 on November 1, 2022; and

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(b) the computations of yield of the Series 2022B Bonds which support Bond Counsel’s opinion that the interest on the Series 2022B Bonds is excluded from gross income for federal income tax purposes.

THE CITY HALL AND LIBRARY PROJECT
The project to be financed from a portion of the proceeds of the Series 2022B Bonds consists of the City’s proposed new City Hall and City Library (the “City Hall and Library Project”), as described below. As described below and under the caption “THE PROPERTY,” the City Hall and Library Project and the related real property upon which the proposed new City Hall and City Library Project are located is part of the Property leased under the Ground Lease and the Lease Agreement.

The City Hall and Library Project consists of the design, construction and furnishing of an approximately 37,000 square foot, three-story City Hall and an approximately 6,500 square foot new Library building, adjacent to a remodeled 2,300 sq ft building (total of approximately 8,800 for the new Library).

These two new facilities will be located near their current locations at 100 Civic Center Mall (Assessor’s Parcel Numbers 611-173-012, 611-173-020, and 611-212-041). The City Hall will house the Administrative departments of the City, including the City Manager’s Office, City Attorney’s Office, the City Clerk’s Office, the Finance Department, Public Works and Engineering, Human Resources, Risk Management, Information Technology, Community Development, Economic Development, and the Housing Authority. City Hall will also include a multi-purpose City Council Chambers. The Library will be a state-of-the art learning center that will complement the nearby expanding campus on the College of the Desert. Both facilities will include new parking, landscaping and lighting.

In May 2022, the City hired Tilden-Coil Constructors to serve as the construction manager for the City Hall and Library Project pursuant to a construction manager multi-prime contract. Under the construction manager multi-prime contract, Tilden-Coil will oversee the design and construction of the City Hall and Library Project, working with the City’s architect, Holt Architecture, and contractors to review plans, invoices and change orders. The City will enter into contracts directly with an architect and various contractors for the design and construction of the City Hall and Library Project.

The total cost of the City Hall and Library Project is expected to be approximately $55 million. The City currently expects to contribute approximately $1.6 million (primarily for design and other soft costs) to the City Hall and Library Project from available funds.. The design phase of the City Hall and Library Project is currently underway, and construction on the City Hall and Library Project is expected to begin in early 2023, with completion currently expected in late 2024 or early 2025.

As described further under the caption “THE PROPERTY,” both the existing City Hall and the proposed new City Hall and City Library are included in the Property subject to the Ground Lease and the Lease Agreement. The City will continue to occupy the existing City Hall building until the City Hall and Library Project is complete, at which point the existing City Hall building will be demolished. Following the City receiving beneficial use and occupancy of the City Hall and Library Project, the various portions of the Property other than the City Hall and Library Project will be released from the Ground Lease and the Lease Agreement, and the City Hall and Library Project and the related real property upon which the City Hall and Library Project is located will constitute the Property eased under the Ground Lease and the Lease Agreement.

On the date of issuance of the Series 2022B Bonds, the City also expects to enter into a separate Lease Agreement with the Authority in connection with the issuance by the Authority of the Indio Public Financing Authority Lease Revenue Bonds, Series 2022A (the “Series 2022A Bonds”). The Series 2022A Bonds are being issued for the purposes of financing the City’s proposed Public Safety Campus Project. See the caption Long-Term Liabilities” in APPENDIX A hereto. The lease payments made in connection with the Series 2022A Bonds do not secure the Series 2022B Bonds and are not available to pay debt service on the Series 2022B Bonds. Furthermore, the properties leased under the Lease Agreement with respect to the Series 2022A Bonds are different from those subject to the Ground Lease and the Lease Agreement.

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THE PROPERTY
The Property leased under the Ground Lease and the Lease Agreement are described below. No additional property is being added to the property leased under the Ground Lease and the Lease Agreement in connection with the issuance of the Series 2022B Bonds.

A portion of the Property under the Ground Lease and the Lease Agreement consists of the City Hall and Library Project, a portion of the costs of the acquisition, construction and installation of which the net proceeds of the Series 2022B Bonds are expected to finance. As described above under the caption “THE CITY HALL AND LIBRARY PROJECT,” the City Hall and Library Project is expected to begin in early 2023. The Lease Agreement provides that, upon completion of construction of the City Hall and Library Project, the City may release the portions of the Property other than the City Hall and Library Project and the related real property upon which the City Hall and Library Project is located from the Ground Lease and the Lease Agreement, subject to certain requires under the Lease Agreement. After such release, the City Hall and Library Project and the related real property upon which the City Hall and Library Project is located will constitute the Property leased under the Ground Lease and the Lease Agreement. See APPENDIX B— “SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—THE LEASE AGREEMENT—NO CONSEQUENTIAL DAMAGES; USE OF THE PROPERTY; SUBSTITUTION OR RELEASE— Substitution or Release of, or Addition to, the Property.” A description of each of the other properties consisting of the Property initially leased under the Ground Lease and the Lease Agreement are described below.

Fire Station Number 4. The Fire Station Number 4 property, also known as the Shadow Hills Fire Station, is comprised of approximately 1.83 acres located at southeast corner of 40th Avenue and Madison Street in the City. The 7,056 square-foot fire station was constructed on this property in 2007. In connection with the issuance of the Series 2022B Bonds, the City obtained an appraisal of the Fire Station Number 4 property which reported a value of $3,800,000.

Fire Station Number 5. The Fire Station Number 5 property, also known as the Terra Lago Fire Station is comprised of approximately 2.0 acres located at 42900 Golf Center Parkway in the City. The 7,210 square-foot fire station was constructed on this property in 2008. In connection with the issuance of the Series 2022B Bonds, the City obtained an appraisal of the Fire Station Number 5 property which reported a value of $4,005,000.

Senior Center Building. The Senior Center is located on 1.71 acres at 45700 Aladdin Street in the City. The Senior Center is a 16,500 square foot building that provide a gathering place for seniors age 50 and over, dedicated to enhance and dignify the quality of the lives of the City’s culturally diverse aging population.

The City estimates the value of the Senior Center Building to be approximately $8.5 million.

North Jackson Park. The North Jackson Park comprises 7.58 acres located at 43200 Towne Street in the City. The land comprising North Jackson Park was acquired by the City through two different purchases in 1955 and 2000. Park improvements were constructed between 2002 through 2009 and include two full- size lighted baseball fields, two full-size lighted tennis courts and one full-size basketball court. The City estimates the value of North Jackson Park to be approximately $3.2 million.

Indio Sports Park. The Indio Sports Park site is comprised of approximately 53 acres and 12 assessor’s parcels of land. There are two major parcels, which encompass approximately 30.99 acres and 7.73 acres, respectively, and the two major parcels are subject to the Ground Lease and the Lease Agreement. The remaining ten minor Indio Sports Park parcels are not subject to the Ground Lease and the Lease Agreement.

In connection with the issuance of the Series 2022B Bonds, the City obtained an appraisal of the Indio Sports Park which reported a value of $5,880,000.

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Miles Avenue Park and South Jackson Park. The land comprising Miles Avenue Park and South Jackson Park was acquired by the City through four different purchases in 1981, 1999, 2000 and 2005. Miles Avenue Park is comprised of approximately 10.6 acres. South Jackson Park is comprised of approximately

24.21 acres. These parks are improved with playground equipment, barbeque areas, restrooms and other park amenities, as well as a soccer park facility at South Jackson Park. The park improvements were constructed between 2002 and 2007. The City estimates the value of Miles Avenue Park to be approximately $1.8 million and South Jackson Park to be approximately $8.3 million.

Teen Center. The Indio Teen Center is a 12,519 square foot building originally constructed in 2008.

The Indio Teen Center runs a free city-run after school program open to 8th -12th grade students located at 81- 678 Avenue 46. The Indio Teen Center offers a Game Room, a TV Room, Boxing Gym, Recording Studio, a Multimedia Lounge, a Kitchen, and a Large Multipurpose Room; plus daily educational and recreational programming. Programs change monthly, but always include some basic life skills training, including culinary arts. The City estimates the value of the Teen Center to be approximately $6.2 million.

Police Department Building. The Indio Police Department Building is a 14,700 square foot building originally constructed in 1978 and located at 46800 Jackson Street. The City estimates the value of the Police Department Building to be approximately $6.4 million.

Indio Performing Arts Center. The Indio Performing Arts Center is a 23,000 square foot facility originally constructed in 1945, with a main hall, the Expo Hall; three separate theaters that are approximately 2,200 square feet each: Village Theatre, Cabaret Theatre, and the Old Towne Playhouse; two conference rooms; bar and kitchen preparation area, as well as parking. The Village Theatre can show movies and the Old Towne Playhouse has a stage for theater and music productions. There are five restrooms and a large dressing room area. The City estimates the value of the Indio Performing Arts Center $5.1 million.

City Hall. The existing City Hall is an approximately 10,000 square foot building originally constructed in 1974 and located at 100 Civic Center Mall. The City estimates the value of City Hall to be approximately $7.8 million. As described under the caption “THE CITY HALL AND LIBRARY PROJECT,” the existing City will continue to utilize the existing City Hall building until the City Hall and Library Project is completed, at which point the existing City Hall will be demolished.

Berger Building. The Berger Building is an approximately 24,000 square foot building located at 44700 Palm Street. The City estimates the value of the Berger Building to be approximately $8.3 million.

Burr Street Park. Burr Street Park is an improved two-acre community park on 6.19 acres located at 42811 Burr Street, providing playground equipment and basketball courts. The City estimates the value of Burr Street Park to be approximately $4.0 million.

THE AUTHORITY
The Authority was established pursuant to Article 1 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code and a Joint Exercise of Powers Agreement, dated as of April 1, 1992, by and between the City and the Redevelopment Agency of the City of Indio (the “Former Redevelopment Agency”), as amended by that certain First Supplemental Agreement to Joint Exercise of Powers Agreement, dated as of August 3, 2012, by and among the City, the Successor Agency to the Redevelopment Agency to the City of Indio, as successor to the Former Redevelopment Agency (the “Successor Agency”), and the Housing Authority of the City of Indio (the “Housing Authority). Pursuant to the First Supplemental Agreement to Joint Exercise of Powers Agreement, the Housing Authority was added to as a member to the Authority and the Successor Agency withdrew from the Authority. The governing commission of the Authority is comprised of all of the individuals who currently are members of the City Council of the City. The Authority is qualified to assist in the financing of certain public improvements and to issue the Series 2022B Bonds under the Bond Law. The Authority has no taxing power. The Authority and

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the City are each separate and distinct legal entities, and the debts and obligations of each such entity are not debts or obligations of the other entity

THE CITY
The City was incorporated in 1930 and encompasses approximately 33 square miles. The City is the geographic mid-point of both Riverside County (the “County”). It is located about 125 miles east of the center of the Los Angeles region, 75 miles north of the California-Baja California Mexican border and 30 miles southeast of Palm Springs and its neighboring communities (including Indian Wells, La Quinta and Palm Desert to the west and Coachella and Mecca to the east).

Known as the “City of Festivals,” the City hosts multiple annual festivals, such as the Coachella Valley Music and Arts Festival (known as the Coachellafest), the Stagecoach Country Music Festival, Riverside County Fair & Date Festival, Palm Springs Kennel Club Dog Show, Southwest Arts Festival, Indio International Tamale Festival, collectively drawing more than one million people to the City annually. The City’s ability to draw and host worldwide festivals is based on being home to the Riverside County Fairgrounds and the adjoining Empire Polo Club Grounds and Eldorado Polo Club Grounds (site of the Coachellafest), which are large-scale, outdoor entertainment venues unique to the City within the Coachella Valley.

The City is the largest city, by population, in the Coachella Valley, a sub-region located in eastern Riverside County. The City is a center for business, government and entertainment within the region. Other cities in the Coachella Valley include Palm Springs, Palm Desert, Rancho Mirage, Indian Wells, La Quinta, Cathedral City, Desert Hot Springs and Coachella. The Coachella Valley is a premium golf region with many well-known golf courses (including PGA West, Indian Wells Country Club, the Quarry at La Quinta and many others), as well as hotels and resorts, gated retirement communities. Significant industries in the Coachella Valley include leisure, tourism, agriculture, wind farming, construction, Indian gaming, mining and entertainment.

For more detailed financial and demographic information regarding the City see APPENDIX ATHE CITY OF INDIO. A copy of the financial statements of the City for the fiscal year ended June 30, 2021 is attached hereto as Appendix C which should be read in its entirety. See APPENDIX C—“ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2021.”

RISK FACTORS
The following factors, along with the other information in this Official Statement, should be considered by potential investors in evaluating the purchase of the Series 2022B Bonds. However, they do not purport to be an exhaustive listing of risks and other considerations which may be relevant to an investment in the Series 2022B Bonds. In addition, the order in which the following factors are presented is not intended to reflect the relative importance of any such risks.

General Considerations – Security for the Series 2022B Bonds The Series 2022B Bonds are special obligations of the Authority, payable solely from Base Rental Payments and the other assets pledged under the Indenture. Neither the faith and credit nor the taxing power of the Authority, the City or the State, or any political subdivision thereof, is pledged to the payment of the Series 2022B Bonds. The Authority has no taxing power.

The obligation of the City to make the Base Rental Payments does not constitute a debt of the City or the State or of any political subdivision thereof within the meaning of any constitutional or statutory debt limit

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or restriction, and does not constitute an obligation for which the City or the State is obligated to levy or pledge any form of taxation or for which the City or the State has levied or pledged any form of taxation.

Although the Lease Agreement does not create a pledge, lien or encumbrance upon the funds of the City, the City is obligated under the Lease Agreement to pay the Base Rental Payments and Additional Rental Payments from any source of legally available funds and the City has covenanted in the Lease Agreement that it will take such action as may be necessary to include all Base Rental Payments and Additional Rental Payments due under the Lease Agreement in its annual budgets and to make necessary annual appropriations for all such Rental Payments, subject to abatement. The City is currently liable and may become liable on other obligations payable from general revenues. See “CITY FINANCIAL INFORMATION—Indebtedness” in APPENDIX A hereto.

The City has the capacity to enter into other obligations which may constitute additional charges against its revenues. To the extent that additional obligations are incurred by the City, the funds available to make Base Rental Payments may be decreased. In the event the City’s revenue sources are less than its total obligations, the City could choose to fund other activities before making Base Rental Payments and other payments due under the Lease Agreement. The same result could occur if, because of California Constitutional limits on expenditures, the City is not permitted to appropriate and spend all of its available revenues. However, the City’s appropriations have never exceeded the limitation on appropriations under Article XIIIB of the State Constitution. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS—Article XIIIB of the State Constitution.” Abatement
In the event of substantial interference with the City’s right to use and occupy any portion of the Property by reason of damage to, or destruction or condemnation of the Property, or any defects in title to the Property, Base Rental Payments will be subject to abatement. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS—Abatement.” In the event that all or a portion of the Property, if damaged or destroyed by an insured casualty, could not be replaced during the period of time in which proceeds of the City’s rental interruption insurance will be available in lieu of Base Rental Payments, plus the period for which funds are available from the funds and accounts established under the Indenture, or in the event that casualty insurance proceeds are insufficient to provide for complete repair or replacement of such portion of the Property or redemption of the Series 2022B Bonds, there could be insufficient funds to make payments to Owners in full.

It is not always possible to predict the circumstances under which abatement of rental may occur. In addition, there is no statute, case or other law specifying how such an abatement of rental should be measured.

For example, it is not clear whether fair rental value is established as of commencement of the lease or at the time of the abatement. If the latter, it may be that the value of the Property is substantially higher or lower than its value at the time of issuance of the Series 2022B Bonds. Abatement, therefore, could have an uncertain and material adverse effect on the security for and payment of the Series 2022B Bonds.

If damage, destruction, title defect or eminent domain proceedings with respect to the Property results in abatement of the Base Rental Payments related to such Property and if such abated Base Rental Payments, if any, together with moneys from rental interruption or use and occupancy insurance (in the event of any insured loss due to damage or destruction), and eminent domain proceeds, if any, are insufficient to make all payments of principal and interest with respect to the Series 2022B Bonds during the period that the Property is being replaced, repaired or reconstructed, then all or a portion of such payments of principal and interest may not be made. Under the Lease Agreement and the Indenture, no remedy is available to the Series 2022B Bond Owners for nonpayment under such circumstances.

As described above under “THE CITY HALL AND LIBRARY PROJECT” and “THE PROPERTY,” the new civic center building is that is under construction is part of the Property. The City has determined that

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the fair rental value of the balance of the Property is sufficient such that, in the event construction of the civic center building is not completed, there would not be an abatement of Base Rental Payments under the Lease Agreement.

Natural Disasters and Climate Change
General. The occurrence of any natural disaster in the City, including, without limitation, fire, windstorm, drought, earthquake, landslide, mudslide or flood, could have an adverse material impact on the economy within the City, its General Fund and the revenues available for the payment of Base Rental Payments. The occurrence of natural disasters in the City could result in substantial damage to the City and the Property which, in turn, could substantially reduce General Fund revenues and affect the ability of the City to make Base Rental Payments or cause an abatement in Base Rental Payments. Reduced ability to pay Base Rental Payments could affect the payment of the principal of and interest on the Series 2022B Bonds. The City maintains liability insurance and property casualty insurance (for losses other than from seismic events) for the Property. See the caption “CITY FINANCIAL INFORMATION—Risk Management” in Appendix A hereto. However, there can be no assurance that specific losses will be covered by insurance or, if covered, that claims will be paid in full by the applicable insurers.

Seismic Activity. According to the Safety Element of the City’s General Plan, there are three major, known faults located in the County: the San Andreas, San Jacinto, and Elsinore faults. The San Andreas and San Jacinto are two of California’s most active faults. Several properties within the City and its sphere of influence are directly impacted by the southernmost section of the San Andreas fault and/or secondary faults and fractures. These faults pose geologic and seismic hazards in the form of earthquakes, fault rupture, liquefaction, and landslides. The most recent earthquake along this stretch of the fault occurred more than 300 years ago leading scientists to suggest that it has accumulated a substantial amount of tectonic stress and is likely to produce a large (7 to 8 magnitude) earthquake in the near future.

Flooding. The City’s Local Hazards Mitigation Plan (the “LHMP”) identified flooding as having above average severity and above average probability. Portions of the City are located within the 100-year floodplain, including the northwest portion of the City, north of the I-10 Freeway, and within the Whitewater River. Some isolated areas within the northwestern and southwestern portion of the City fall within the 500- year floodplain. No portion of the Property subject to the Ground Lease and the Lease Agreement are within a 100-year flood plan.

Climate Change. Climate change caused by human activities may have adverse effects on the City.

Climate change can also result in more variable weather patterns, which can lead to longer and more severe droughts as well as increased risk of flooding. Projections of the impacts of global climate change on the City are complex and depend on many factors that are outside the City’s control. The various scientific studies that forecast the amount and timing of adverse impacts of climate change are based on assumptions contained in such studies, but actual events may vary materially. Also, the scientific understanding of climate change and its effects continues to evolve. Accordingly, the City is unable to forecast with certainty when adverse impacts of climate change will occur or the extent of such impacts. The City expects to continue to consider the effects of climate change in its own planning and to participate in regional planning initiatives. While the impacts of climate change may be mitigated by the City’s past and future investment in adaptation strategies, the City can give no assurance about the net effects of those strategies and whether the City will be required to take additional adaptive mitigation measures. Particular potential impacts of climate change on the City include worsening air quality, increased flooding, and heatwaves.

Hazardous Substances
The City knows of no existing hazardous substances which require remedial action on or near the Property. However, it is possible such substances do currently or potentially exist and that the City is not aware of them.

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Owners and operators of real property may be required by law to remedy conditions of the property relating to releases or threatened releases of hazardous substances. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as “CERCLA” or the “Superfund Act,” is the most well-known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance whether or not the owner (or operator) has anything to do with creating or handling the hazardous substance. Further, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling it. All of these possibilities could significantly and adversely affect the operations and finances of the City, may result in the reduction in the assessed value of property, and therefor property tax revenue.

Cybersecurity
The City, like many other public and private entities, relies on a large and complex technology environment to conduct its operations. As a recipient and provider of personal, private, or sensitive information, the City is subject to multiple cyber threats including, but not limited to, hacking, viruses, malware and other attacks on computer and other sensitive digital networks and systems. Entities or individuals may attempt to gain unauthorized access to the City’s digital systems for the purposes of misappropriating assets or information or causing operational disruption and damage. The City has adopted various policies regarding cybersecurity, including policies with respect to appropriate use and of email and technology, as well as the handling of sensitive personally identifiable information. To date, the City has not experienced an attack on its computer operating systems which resulted in a breach of its cybersecurity systems that are in place. However, no assurances can be given that the City’s efforts to manage cyber threats and attacks will be successful or that any such attack will not materially impact the operations or finances of the City. See “CITY FINANCIAL INFORMATION—Risk Management” in Appendix A hereto for more information with respect to the City’s cybersecurity insurance coverage.

Impacts of Coronavirus on City
The COVID-19 pandemic significantly impacted state and local economies, and City revenues.

Although the impacts of the pandemic are abating, any resurgence of the pandemic could materially adversely impact the City’s financial condition.

Substitution, Addition and Removal of Property; Additional Bonds The Authority and the City may amend the Lease Agreement to substitute alternate real property for any portion of or add additional real property to the Property or to release a portion of the Property from the Lease Agreement, upon compliance with all of the conditions set forth in the Lease Agreement. After a substitution or release, the portion of the Property for which the substitution or release has been effected will be released from the leasehold encumbrance of the Lease Agreement. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS―Substitution, Addition and Removal of Property.” Moreover, the Authority may issue Additional Bonds secured by Base Rental Payments which are increased from current levels.

Although the Lease Agreement requires, among other things, that the Property, as constituted after such substitution or release, have an annual fair rental value at least equal to the maximum Base Rental Payments payable by the City in any Rental Period, it does not require that such Property have an annual fair rental value equal to the annual fair rental value of the Property at the time of substitution or release. Thus, a portion of the Property could be replaced with less valuable real property, or could be released altogether.

Such a replacement or release could have an adverse impact on the security for the Series 2022B Bonds, particularly if an event requiring abatement of Base Rental Payments were to occur subsequent to such substitution or release. See APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—

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THE LEASE AGREEMENT—NO CONSEQUENTIAL DAMAGES; USE OF THE PROPERTY; SUBSTITUTION OR RELEASE—Substitution or Release of, or Addition to, the Property.” The Indenture requires, among other things, that upon the issuance of Additional Bonds, the Ground Lease and the Lease Agreement will be amended, to the extent necessary, so as to increase the Base Rental Payments payable by the City thereunder by an aggregate amount equal to the principal of and interest on such Additional Bonds; provided, however, that no such amendment will be made such that the sum of Base Rental Payments, including any increase in the Base Rental Payments as a result of such amendment, plus Additional Rental Payments, in any Rental Period is in excess of the annual fair rental value of the Property after taking into account the use of the proceeds of any Additional Bonds issued in connection therewith.

Limited Recourse on Default; No Acceleration of Base Rental Failure by the City to make Base Rental Payments or other payments required to be made under the Lease Agreement, or failure to observe and perform any other terms, covenants or conditions contained in the Lease Agreement or in the Indenture for a period of 30 days or such additional time as is reasonable required to correct any such default after notice by the Authority to the City, constitute events of default under the Lease Agreement and permit the Trustee or the Authority to pursue any and all remedies available. In the event of a default, notwithstanding anything in the Lease Agreement or in the Indenture to the contrary, there is no right under any circumstances to accelerate the Base Rental Payments or otherwise declare any Base Rental Payments not then in default to be immediately due and payable, nor do the Authority or the Trustee have any right to re-enter or re-let the Property except as described in the Lease Agreement.

The enforcement of any remedies provided in the Lease Agreement and the Indenture could prove both expensive and time consuming. If the City defaults on its obligation to make Base Rental Payments with respect to the Property, the Trustee, as assignee of the Authority, may retain the Lease Agreement and hold the City liable for all Base Rental Payments thereunder on an annual basis and enforce any other terms or provisions of the Lease Agreement to be kept or performed by the City.

Alternatively, the Authority or the Trustee may terminate the Lease Agreement, retake possession of the Property and proceed against the City to recover damages pursuant to the Lease Agreement. Due to the specialized nature of the Property or any property substituted therefor pursuant to the Lease Agreement and the restrictions on its use, no assurance can be given that the Trustee will be able to re-let the Property so as to provide rental income sufficient to make all payments of principal of, interest and premium, if any, on the Series 2022B Bonds when due, and the Trustee is not empowered to sell the Property for the benefit of the Owners of the Series 2022B Bonds. See “THE PROPERTY—Westborough Park and Fire Station #64” for a description of certain additional limitations on the use of such property. Any suit for money damages would be subject to limitations on legal remedies against cities in California, including a limitation on enforcement of judgments against funds needed to serve the public welfare and interest. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS” and APPENDIX B—“SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS—THE LEASE AGREEMENT—DEFAULTS AND REMEDIES.” Limitations on Remedies Available; Bankruptcy
The enforceability of the rights and remedies of the Owners and the obligations of the City may become subject to the following: the federal bankruptcy code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors’ rights generally, now or hereafter in effect; usual equitable principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the Federal Constitution; and the reasonable and necessary exercise, in certain exceptional situations, of the police power inherent in the sovereignty of the State of California and its governmental bodies in the interest of servicing a significant and legitimate public purpose.

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Under Chapter 9 of the United States Bankruptcy Code (Title 11, United States Code) (the “Bankruptcy Code”), which governs bankruptcy proceedings of public entities such as the City, no involuntary bankruptcy petition may be filed against a public entity. However, upon satisfaction of certain prerequisite conditions, a voluntary bankruptcy petition may be filed by the City. The filing of a bankruptcy petition results in a stay against enforcement of remedies under agreements to which the bankrupt entity is a party. A bankruptcy filing by the City could thus limit remedies under the Lease Agreement. A bankruptcy debtor may choose to assume or reject executory contracts and leases, such as the Lease Agreement. In the event of rejection of a lease by debtor lessee, the leased property is returned to the lessor and the lessor has a claim for a limited amount of the resulting damages.

Under the Indenture, the Trustee holds a security interest in the Base Rental Payments for the benefit of the Owners of the Bonds, but such security interest arises only when the Base Rental Payments are actually received by the Trustee following payment by the City. The Property is not subject to a security interest, mortgage or any other lien in favor of the Trustee for the benefit of Owners. In the event of a bankruptcy filed by the City and the subsequent rejection of the Lease Agreement by the City, the Authority would recover possession of the Property and the Trustee, as assignee of the Authority, would have a claim for damages against the City. The Trustee’s claim would constitute a secured claim only to the extent of Revenues in the possession of the Trustee; the balance of such claim would be unsecured.

Bankruptcy proceedings would subject the Owners of the Series 2022B Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently entail risks of delay, limitation, or modification of their rights with respect to the Series 2022B Bonds. In a bankruptcy case, the amount recovered by Owners of the Series 2022B Bonds could be affected by whether the Lease Agreement is determined to be a “true lease” or a loan or other financing arrangement (a “financing lease”), and the Owners’ recovery could be reduced in either case. If the Lease Agreement is determined by the bankruptcy court to constitute a “true lease” (rather than a financing lease), the City could choose not to perform under the Lease Agreement by rejecting it and the claim of the Owners could be substantially limited pursuant to Section 365 of the Bankruptcy Code to a fraction of the scheduled amount of Base Rental Payments, and that reduced claim amount could be impaired as an unsecured claim under a plan of adjustment. If a bankruptcy court were to treat the Lease Agreement as a financing lease then, under a plan of adjustment, the priority, payment terms, collateral, payment dates, payment sources, covenants and other terms or provisions of the Lease Agreement and the Series 2022B Bonds may be altered. Such a plan could be confirmed even over the objections of the Trustee and the Owners, and without their consent. For example, the amount of the Base Rental Payments from the City might be substantially reduced because of the power of the bankruptcy court under the Bankruptcy Code to adjust secured claims to the value of their collateral, which, as described above, could be limited to the Base Rental Payments held by the Trustee. In addition there can be a substantial disparity in treatment based on the nature of the Property. Whether the Lease Agreement is characterized by the bankruptcy court as a true lease or a financing lease, either scenario could result in the Owners not receiving the full amount of the principal and interest due on the Series 2022B Bonds.

The opinions of counsel, including Bond Counsel, delivered in connection with the issuance of the Series 2022B Bonds will be so qualified. Bankruptcy proceedings, or the exercising of powers by the federal or state government, if initiated, could subject the Owners to judicial discretion and interpretation of their rights in bankruptcy or otherwise and consequently may entail risks of delay, limitation, or modification of their rights.

Possible Insufficiency of Insurance Proceeds
The Lease Agreement obligates the City to keep in force various forms of insurance, subject to deductibles, for repair or replacement of the Property in the event of damage, destruction or title defects, subject to certain exceptions. The Authority and the City make no representation as to the ability of any insurer to fulfill its obligations under any insurance policy obtained pursuant to the Lease Agreement, and no assurance can be given as to the adequacy of any such insurance to fund necessary repair or replacement or to

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pay principal of and interest on the Series 2022B Bonds when due. In addition, certain risks, such as earthquakes and floods, are not required to be insured under the Lease Agreement, and therefore, are not carried by the City. See “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS— Insurance.”
Loss of Tax Exemption
As discussed under the heading “TAX MATTERS,” the interest on the Series 2022B Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of delivery of the Series 2022B Bonds, as a result of acts or omissions of the Authority or the City in violation of their covenants in the Indenture and the Lease Agreement. Should such an event of taxability occur, the Series 2022B Bonds would not be subject to a special redemption and would remain Outstanding until maturity or until redeemed under the redemption provisions contained in the Indenture.

No Liability of Authority to the Owners
Except as expressly provided in the Indenture, the Authority will not have any obligation or liability to the Owners of the Series 2022B Bonds with respect to the payment when due of the Base Rental Payments by the City, or with respect to the performance by the City of other agreements and covenants required to be performed by it contained in the Lease Agreement or the Indenture, or with respect to the performance by the Trustee of any right or obligation required to be performed by it contained in the Indenture.

Dependence on State for Certain Revenues
On January 10, 2022, the Governor released his proposed budget for fiscal year 2022-23. In the Governor’s proposed budget, General Fund revenues and transfers for fiscal year 2022-23 were projected at $195.7 billion; a decrease of $1.0 billion, or 0.5 percent, compared with a revised estimate of $196.7 billion for fiscal year 2021-22. General Fund expenditures for fiscal year 2022-23 are projected at $213.1 billion, an increase of $3.1 billion compared with a revised estimate of $210.0 billion for fiscal year 2021-22.

The State acknowledges that risks to the State’s general fund include ongoing challenges related to the COVID-19 pandemic and significant unfunded liabilities of the two main retirement systems managed by state entities, the California Public Employees’ Retirement System and the California State Teachers’ Retirement System. The State’s revenues (particularly the personal income tax) can be volatile and correlate to overall economic conditions. There can be no assurances that the State will not face fiscal stress and cash pressures again, or that other changes in the State or national economies will not materially adversely affect the financial condition of the State.

The City cannot predict the extent of any budgetary problems the State will encounter in future fiscal years, and it is not clear what measures would be taken by the State to balance its budget, as required by law.

In addition, the City cannot predict the impact that State budgets will have on the City’s finances and operations, or what actions will be taken in the future by the State Legislature and the Governor to deal with changing State revenues and expenditures. Current and future State budgets will be affected by international, national and State economic conditions and other factors over which the City has no control.

While the City is not substantially reliant on the State’s finances, a number of the City’s revenues are collected and dispersed by the State (such as sales tax and motor-vehicle license fees) or allocated in accordance with State law (most importantly, property taxes). Therefore, State budget decisions can have an impact on City finances. In the event of a material economic downturn in the State, there can be no assurance that any resulting revenue shortfalls to the State will not reduce revenues to local governments (including the City) or shift financial responsibility for programs to local governments as part of the State’s efforts to address any such related State financial difficulties.

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See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS—Proposition 1A” and “—Proposition 22” below.

CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS Principal of and interest on the Series 2022B Bonds are payable from Base Rental Payments made from the City’s General Fund. See the caption “SECURITY AND SOURCES OF PAYMENT FOR THE SERIES 2022B BONDS.” Articles XIIIA, XIIIB, XIIIC and XIIID of the State Constitution, Propositions 62, 111, 218, 1A and 22, and certain other provisions of law discussed below are included in this Official Statement to describe the potential effect of these Constitutional and statutory measures on the ability of the City to levy taxes and spend tax proceeds for operating and other purposes.

Article XIIIA of the State Constitution
On June 6, 1978, State voters approved Proposition 13, which added Article XIIIA to the State Constitution. Article XIIIA, as amended, limits the amount of any ad valorem tax on real property to 1% of the full cash value thereof, except that additional ad valorem taxes may be levied to pay debt service: (i) on indebtedness approved by the voters prior to December 1, 1978; (ii) on bonded indebtedness approved by a two-thirds vote on or after December 1, 1978, for the acquisition or improvement of real property; or (iii) bonded indebtedness incurred by a school district, community college district or county office of education for the construction, reconstruction, rehabilitation or replacement of school facilities, including the furnishing and equipping of school facilities or the acquisition or lease of real property for school facilities, approved by 55% of the voters voting on the proposition. Article XIIIA defines full cash value to mean “the county assessor’s valuation of real property as shown on the 1975-76 tax bill under “full cash value,” or thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” This full cash value may be increased at a rate not to exceed 2% per year to account for inflation.

Article XIIIA has subsequently been amended to permit reduction of the “full cash value” base in the event of declining property values caused by damage, destruction or other factors, including a general economic downturn, to provide that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged or destroyed in a disaster, and in other minor or technical ways.

Legislation Implementing Article XIIIA
Legislation has been enacted and amended a number of times since 1978 to implement Article XIIIA.

Under current law, local agencies are no longer permitted to levy directly any property tax (except to pay voter-approved indebtedness). The 1% property tax is automatically levied by counties and distributed according to a formula among taxing agencies.

Increases in assessed valuation resulting from reappraisals of property due to new construction, change in ownership or from the 2% annual adjustment are allocated among the various jurisdictions in the “taxing area” based upon their respective “situs.” Any such allocation made to a local agency continues as part of its allocation in future years.

All taxable property is shown at full cash value on the tax rolls. Consequently, the tax rate is expressed as $1 per $100 of taxable value. All taxable property value included in this Official Statement is shown at 100 percent of taxable value (unless noted differently) and all tax rates reflect the $1 per $100 of taxable value.

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Article XIIIB of the State Constitution
In addition to the limits that Article XIIIA imposes on property taxes that may be collected by local governments, certain other revenues of the State and most local governments are subject to an annual “appropriations limit” imposed by Article XIIIB which effectively limits the amount of such revenues that such entities are permitted to spend. Article XIIIB, approved by the voters in June 1979, was modified substantially by Proposition 111 in 1990. The appropriations limit of each government entity applies to “proceeds of taxes,” which consist of tax revenues and the investment proceeds thereof, State subventions and certain other funds, including proceeds from regulatory licenses, user charges or other fees to the extent that such proceeds exceed “the cost reasonably borne by such entity in providing the regulation, product or service.” “Proceeds of taxes” excludes tax refunds and some benefit payments such as unemployment insurance. No limit is imposed on the appropriation of funds which are not “proceeds of taxes,” such as reasonable user charges or fees, and certain other non-tax funds. Article XIIIB also does not limit appropriation of local revenues to pay debt service on bonds existing or authorized as of October 1, 1979, or subsequently authorized by the voters, appropriations required to comply with mandates of courts or the federal government, appropriations for qualified capital outlay projects, and appropriation by the State of revenues derived from any increase in gasoline taxes and motor vehicle weight fees above January 1, 1990 levels. The appropriations limit may also be exceeded in case of emergency; however, the appropriations limit for the next three years following such emergency appropriation must be reduced to the extent by which it was exceeded, unless the emergency arises from civil disturbance or natural disaster declared by the Governor, and the expenditure is approved by two-thirds of the legislative body of the local government.

The State and each local government entity has its own appropriations limit. Each year, the limit is adjusted to allow for changes, if any, in the cost of living, the population of the jurisdiction, and any transfer to or from another government entity of financial responsibility for providing services. Proposition 111 requires that each local government’s actual appropriations be tested against its limit every two years.

If the aggregate “proceeds of taxes” for the preceding two-year period exceeds the aggregate limit, the excess must be returned to the agency’s taxpayers through tax rate or fee reductions over the following two years.

The City’s appropriations have never exceeded the limitation on appropriations under Article XIIIB.

Articles XIIIC and XIIID of the State Constitution
On November 5, 1996, State voters approved Proposition 218, known as the “Right to Vote on Taxes Act.” Proposition 218 adds Articles XIIIC and XIIID to the State Constitution and contains a number of interrelated provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments and property-related fees and charges. The interpretation and application of Proposition 218 will ultimately be determined by the courts with respect to a number of the matters discussed below, and it is not possible at this time to predict with certainty the outcome of such determination.

Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes of the City (such as Measure W) require a majority vote, and taxes for specific purposes, even if deposited in the City’s General Fund, require a two-thirds vote. The voter approval requirements of Proposition 218 reduce the flexibility of the City to raise revenues for the General Fund, and no assurance can be given that the City will be able to impose, extend or increase such taxes in the future to meet increased expenditure needs.

Article XIIID also adds several provisions making it generally more difficult for local agencies to levy and maintain property-related fees, charges, and assessments for municipal services and programs, such as hearings and stricter and more individualized benefit requirements and findings. These provisions include, among other things: (i) a prohibition against assessments which exceed the reasonable cost of the proportional

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special benefit conferred on a parcel; (ii) a requirement that assessments must confer a “special benefit,” as defined in Article XIIID, over and above any general benefits conferred; (iii) a majority protest procedure for assessments which involves the mailing of notice and a ballot to the record owner of each affected parcel, a public hearing and the tabulation of ballots weighted according to the proportional financial obligation of the affected party; and (iv) a prohibition against fees and charges which are used for general governmental services, including police, fire or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. If the City is unable to continue to collect revenues of this nature, the services and programs funded with these revenues would have to be curtailed and/or the City’s General Fund might have to be used to support them. The City is unable to predict whether or not in the future it will be able to continue all existing services and programs funded by fees, charges and assessments in light of Proposition 218 or, if these services and programs are continued, which amounts (if any) would be used from the City’s General Fund to continue to support such activities.

Article XIIIC also removes limitations on the initiative power in matters of reducing or repealing local taxes, assessments, fees or charges. This extension of the initiative power is not limited to taxes imposed on or after November 6, 1996, the effective date of Proposition 218, and could result in retroactive repeal or reduction in any existing taxes, assessments, fees and charges, subject to overriding federal constitutional principles relating to the impairments of contracts. Legislation implementing Proposition 218 provides that the initiative power provided for in Proposition 218 “shall not be construed to mean that any owner or beneficial owner of a municipal security, purchased before or after (the effective date of Proposition 218) assumes the risk of, or in any way consents to, any action by initiative measure that constitutes an impairment of contractual rights” protected by the United States Constitution. However, no assurance can be given that the voters of the City will not, in the future, approve an initiative or initiatives which reduce or repeal local taxes, assessments, fees or charges currently comprising a substantial part of the City’s General Fund.

Although a portion of the City’s General Fund revenues are derived from taxes purported to be governed by Proposition 218, all of such taxes were imposed in accordance with the requirements of Proposition 218. No assurance can be given that the voters of the City will not, in the future, approve an initiative or initiatives which reduce or repeal local taxes, assessments, fees or charges which support the City’s General Fund.

Proposition 62
Proposition 62 was adopted by the voters at the November 4, 1986, general election and: (a) requires that any new or higher taxes for general governmental purposes imposed by local governmental entities such as the City be approved by a two-thirds vote of the governmental entity’s legislative body and by a majority vote of the voters of the governmental entity voting in an election on the tax; (b) requires that any special tax (defined as taxes levied for other than general governmental purposes) imposed by a local governmental entity be approved by a two-thirds vote of the voters of the governmental entity voting in an election on the tax; (c) restricts the use of revenues from a special tax to the purposes or for the service for which the special tax was imposed; (d) prohibits the imposition of ad valorem taxes on real property by local governmental entities except as permitted by Article XIIIA; (e) prohibits the imposition of transaction taxes and sales taxes on the sale of real property by local governmental entities; and (f) requires that any tax imposed by a local governmental entity on or after July 1, 1985, be ratified by a majority vote of the voters voting in an election on the tax within two years of the adoption of the initiative or be terminated by November 15, 1988.

On September 28, 1995, the California Supreme Court, in the case of Santa Clara County Local Transportation Authority v. Guardino, upheld the constitutionality of Proposition 62. In this case, the court held that a countywide sales tax of one-half of one percent was a special tax that, under Section 53722 of the Government Code, required a two-thirds voter approval. Because the tax received an affirmative vote of only

54.1%, this special tax was found to be invalid. The decision did not address the question of whether or not it should be applied retroactively.

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Following the California Supreme Court’s decision upholding Proposition 62, several actions were filed challenging taxes imposed by public agencies since the adoption of Proposition 62, which was passed in November 1986. On June 4, 2001, the California Supreme Court released its decision in one of these cases, Howard Jarvis Taxpayers Association v. City of La Habra, et al. In this case, the court held that a public agency’s continued imposition and collection of a tax is an ongoing violation, upon which the statute of limitations period begins anew with each collection. The court also held that, unless another statute or constitutional rule provided differently, the statute of limitations for challenges to taxes subject to Proposition 62 is three years. Accordingly, a challenge to a tax subject to Proposition 62 may only be made for those taxes received within three years of the date the action is brought.

The City has not experienced any substantive adverse financial impact as a result of the passage of Proposition 62.

Proposition 1A
Proposition 1A was approved by the voters at the November 2, 2004 election. Proposition 1A amended the State Constitution to, among other things, reduce the Legislature’s authority over local government revenue sources by placing restrictions on the State’s access to local governments’ property, sales, and vehicle license fee revenues as of November 3, 2004. Beginning with Fiscal Year 2008-09, the State may borrow up to eight percent of local property tax revenues, but only if the Governor proclaims such action is necessary due to a severe State fiscal hardship, and two–thirds of both houses of the Legislature approves the borrowing. The amount borrowed is required to be paid back within three years. The State also will not be able to borrow from local property tax revenues for more than two fiscal years within a period of 10 fiscal years. In addition, the State cannot reduce the local sales tax rate or restrict the authority of local governments to impose or change the distribution of the statewide local sales tax.

Many of the provisions of Proposition 1A have been superseded by Proposition 22 enacted in November 2010 and described below.

Proposition 22
On November 2, 2010, the voters of the State approved Proposition 22, known as “The Local Taxpayer, Public Safety, and Transportation Protection Act” (“Proposition 22”). Proposition 22, among other things, broadens the restrictions established by Proposition 1A. While Proposition 1A permits the State to appropriate or borrow local property tax revenues on a temporary basis during times of severe financial hardship, Proposition 22 amends Article XIII of the State Constitution to prohibit the State from appropriating or borrowing local property tax revenues under any circumstances. The State can no longer borrow local property tax revenues on a temporary basis even during times of severe financial hardship. Proposition 22 also prohibits the State from appropriating or borrowing proceeds derived from any tax levied by a local government solely for the local government’s purposes. Furthermore, Proposition 22 restricts the State’s ability to redirect redevelopment agency property tax revenues to school districts and other local governments and limits uses of certain other funds although this provision no longer has any meaningful impact given the statewide dissolution of redevelopment agencies. Proposition 22 is intended to stabilize local government revenue sources by restricting the State government’s control over local revenues. The City cannot predict whether Proposition 22 will have a beneficial effect on the City’s financial condition.

Proposition 26
On November 2, 2010, State voters also approved Proposition 26. Proposition 26 amends Article XIIIC of the State Constitution to expand the definition of “tax” to include “any levy, charge, or exaction of any kind imposed by a local government” except the following: (a) a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege;

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(b) a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (c) a charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof; (d) a charge imposed for entrance to or use of local government property, or the purchase, rental or lease of local government property; (e) a fine, penalty or other monetary charge imposed by the judicial branch of government or a local government as a result of a violation of law; (f) a charge imposed as a condition of property development; and (g) assessments and property-related fees imposed in accordance with the provisions of Article XIIID. Proposition 26 provides that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity. The City does not believe that Proposition 26 will adversely affect its General Fund revenues.

Possible Future Initiatives
Articles XIIIA, XIIIB, XIIIC and XIIID and Propositions 218, 111, 62, 1A, 22 and 26 were each adopted as measures that qualified for the ballot pursuant to the State’s initiative process. From time to time other initiative measures could be adopted, further affecting revenues of the City or the City’s ability to expend revenues. The nature and impact of these measures cannot be anticipated by the City.

TAX MATTERS
In the opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, Bond Counsel, under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest (and original issue discount) on the Series 2022B Bonds is excluded from gross income for federal income tax purposes, and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals. In the further opinion of Bond Counsel, interest (and original issue discount) on the Series 2022B Bonds is exempt from State of California personal income tax.

The difference between the issue price of a Series 2022B Bond (the first price at which a substantial amount of the Series 2022B Bonds of a maturity is to be sold to the public) and the stated redemption price at maturity with respect to the Series 2022B Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to the Beneficial Owner of the Series 2022B Bond before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by the Beneficial Owner of a Series 2022B Bond will increase the Beneficial Owner’s basis in the applicable Series 2022B Bond. In the opinion of Bond Counsel, the amount of original issue discount that accrues to the Beneficial Owner of a Series 2022B Bond is excluded from the gross income of such Beneficial Owner for federal income tax purposes, and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals. In the opinion of Bond Counsel, the amount of original issue discount that accrues to the Beneficial Owner of a Series 2022B Bond is exempt from State of California personal income tax.

Bond Counsel’s opinion as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the Series 2022B Bonds is based upon certain representations of fact and certifications made by the Authority, the City and others and is subject to the condition that the Authority and the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the “Code”), that must be satisfied subsequent to the issuance of the Series 2022B Bonds to assure that interest (and original issue discount) on the Series 2022B Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause the interest (and original issue

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discount) on the Series 2022B Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Series 2022B Bonds. The Authority and the City will covenant to comply with all such requirements.

The amount by which a Beneficial Owner’s original basis for determining loss on sale or exchange in the applicable Series 2022B Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable bond premium, which must be amortized under Section 171 of the Code; such amortizable bond premium reduces the Beneficial Owner’s basis in the applicable Series 2022B Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes.

The basis reduction as a result of the amortization of bond premium may result in a Beneficial Owner realizing a taxable gain when a Series 2022B Bond is sold by the Beneficial Owner for an amount equal to or less (under certain circumstances) than the original cost of the Series 2022B Bond to the Beneficial Owner.

Purchasers of the Series 2022B Bonds should consult their own tax advisors as to the treatment, computation and collateral consequences of amortizable bond premium.

Bond Counsel’s opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. Bond Counsel has not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. The Indenture, the Lease Agreement and the Tax Certificate relating to the Series 2022B Bonds permit certain actions to be taken or to be omitted if a favorable opinion of a bond counsel is provided with respect thereto. Bond Counsel expresses no opinion as to the effect on the exclusion from gross income for federal income tax purposes of interest (or original issue discount) on any Series 2022B Bond if any such action is taken or omitted based upon the advice of counsel other than Bond Counsel.

Although Bond Counsel will render an opinion that interest (and original issue discount) on the Series 2022B Bonds is excluded from gross income for federal income tax purposes provided that the Authority and the City continue to comply with certain requirements of the Code, the ownership of the Series 2022B Bonds and the accrual or receipt of interest (and original issue discount) with respect to the Series 2022B Bonds may otherwise affect the tax liability of certain persons. Bond Counsel expresses no opinion regarding any such tax consequences. Accordingly, before purchasing any of the Series 2022B Bonds, all potential purchasers should consult their tax advisors with respect to collateral tax consequences relating to the Series 2022B Bonds.

The Internal Revenue Service (the “IRS”) has initiated an expanded program for the auditing of tax- exempt bond issues, including both random and targeted audits. It is possible that the Series 2022B Bonds will be selected for audit by the IRS. It is also possible that the market value of the Series 2022B Bonds might be affected as a result of such an audit of the Series 2022B Bonds (or by an audit of similar bonds). No assurance can be given that in the course of an audit, as a result of an audit, or otherwise, Congress or the IRS might not change the Code (or interpretation thereof) subsequent to the issuance of the Series 2022B Bonds to the extent that it adversely affects the exclusion from gross income of interest (and original issue discount) on the Series 2022B Bonds or their market value.

SUBSEQUENT TO THE ISSUANCE OF THE SERIES 2022B BONDS THERE MIGHT BE

FEDERAL, STATE, OR LOCAL STATUTORY CHANGES (OR JUDICIAL OR REGULATORY

CHANGES TO OR INTERPRETATIONS OF FEDERAL, STATE, OR LOCAL LAW) THAT AFFECT THE FEDERAL, STATE, OR LOCAL TAX TREATMENT OF THE SERIES 2022B BONDS INCLUDING THE

IMPOSITION OF ADDITIONAL FEDERAL INCOME OR STATE TAXES BEING IMPOSED ON OWNERS OF TAX-EXEMPT STATE OR LOCAL OBLIGATIONS, SUCH AS THE SERIES 2022B BONDS. THESE CHANGES COULD ADVERSELY AFFECT THE MARKET VALUE OR LIQUIDITY OF THE SERIES 2022B BONDS. NO ASSURANCE CAN BE GIVEN THAT SUBSEQUENT TO THE ISSUANCE OF THE SERIES 2022B BONDS STATUTORY CHANGES WILL NOT BE INTRODUCED

OR ENACTED OR JUDICIAL OR REGULATORY INTERPRETATIONS WILL NOT OCCUR HAVING THE EFFECTS DESCRIBED ABOVE. BEFORE PURCHASING ANY OF THE SERIES 2022B BONDS,

ALL POTENTIAL PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS REGARDING

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POSSIBLE STATUTORY CHANGES OR JUDICIAL OR REGULATORY CHANGES OR

INTERPRETATIONS, AND THEIR COLLATERAL TAX CONSEQUENCES RELATING TO THE SERIES 2022B BONDS.

The form of Bond Counsel’s proposed opinion with respect to the Series 2022B Bonds is attached hereto in Appendix D.

CERTAIN LEGAL MATTERS
The validity of the Series 2022B Bonds and certain other legal matters are subject to the approving opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, Bond Counsel. Stradling Yocca Carlson & Rauth, a Professional Corporation, is also acting as Disclosure Counsel for the City. A complete copy of the proposed form of Bond Counsel opinion is contained in Appendix D hereto. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement. Bond Counsel and Disclosure Counsel will receive compensation from the City contingent upon the sale and delivery of the Series 2022B Bonds. From time to time, Bond Counsel represents the Underwriters on matters unrelated to the Series 2022B Bonds. Certain legal matters will be passed upon for the Underwriters by Norton Rose Fulbright US LLP. Counsel to the Underwriter will receive compensation contingent upon the issuance of the Series 2022B Bonds.

ABSENCE OF LITIGATION
To the best knowledge of the City and the Authority, there is no action, suit or proceeding pending or threatened either restraining or enjoining the execution or delivery of the Series 2022B Bonds, the Lease Agreement, the Ground Lease or the Indenture, or in any way contesting or affecting the validity of the foregoing or any proceedings of the Authority or the City taken with respect to any of the foregoing.

UNDERWRITING
The Series 2022B Bonds are being purchased by Piper Sandler & Co., as representative of Stifel, Nicolaus & Company, Incorporated (collectively, the “Underwriters”). The Underwriters will purchase the Series 2022B Bonds from the Authority at an aggregate purchase price of $__________ (representing the principal amount of the Series 2022B Bonds, plus original issue premium of $__________ and less an Underwriters’ discount of $__________). The purchase agreement relating to the Series 2022B Bonds provides that the Underwriters will purchase all of the Series 2022B Bonds if any are purchased. The obligation to make such purchase is subject to certain terms and conditions set forth in such purchase agreement, the approval of certain legal matters by counsel and certain other conditions.

The initial offering prices that are stated on the inside front cover page of this Official Statement may be changed from time to time by the Underwriters. The Underwriters may offer and sell the Series 2022B Bonds to certain dealers (including dealers depositing Series 2022B Bonds into investment trusts), dealer banks, banks acting as agent and others at prices lower than said public offering prices.

RATING
S&P Global Ratings, a Standard & Poor’s Financial Services LLC business (“S&P”) has assigned a rating of “____” to the Series 2022B Bonds. Such rating reflects only the views of S&P and any desired explanation of the significance of such rating should be obtained from S&P. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance such rating will continue for any given period of time or that such rating will not be revised downward or withdrawn entirely by the rating agency, if in the judgment of such rating agency, circumstances so warrant. Any such downward revision or withdrawal of the rating may have an adverse effect on the market price of the Series 2022B Bonds. None of the Authority, the City or the Underwriters has

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undertaken any responsibility either to bring to the attention of the owners of the Series 2022B Bonds a proposed change in or withdrawal of the rating or to oppose any such proposed revision or withdrawal.

MUNICIPAL ADVISOR
Fieldman, Rolapp & Associates, Inc., Irvine, California (the “Municipal Advisor”), served as municipal advisor to the Authority and the City with respect to the sale of the Series 2022B Bonds. The Municipal Advisor will receive compensation contingent upon the sale and delivery of the Series 2022B Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement.

The Municipal Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities.

CONTINUING DISCLOSURE
The City has covenanted for the benefit of the Owners of the Series 2022B Bonds to provide annually certain financial information and operating data relating to the Series 2022B Bonds and the City (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. For a complete listing of items of information which will be provided in each Annual Report and further description of the City’s undertaking with respect to the Annual Report and certain enumerated events, see APPENDIX E—“FORM OF CONTINUING DISCLOSURE AGREEMENT.” The Annual Report is to be provided by the City not later than nine months following the end of the City’s fiscal year (which presently ends on June 30), commencing with the report for the fiscal year ending June 30, 2022 and due March 31, 2023. The Annual Report will be filed by the City with the Municipal Securities Rulemaking Board. These covenants have been made in order to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2- 12(b)(5) (the “Rule”).
[Within the last five years, __________.] [TO BE UPDATED]

FINANCIAL STATEMENTS OF THE CITY
Included herein as Appendix C is the Annual Comprehensive Financial Report of the City for the Fiscal Year ended June 30, 2021, together with the report thereon dated January 4, 2022 of Lance, Soll & Lunghard, LLP, certified public accountants (the “Auditor”). The Auditor has not undertaken to update the audited financial statements of the City or its report or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in this Official Statement, and no opinion is expressed by the Auditor with respect to any event subsequent to its report dated February 21, 2022.

MISCELLANEOUS
References are made herein to certain documents and reports which are brief summaries thereof which do not purport to be complete or definitive and reference is made to such documents and reports for full and complete statements of the contents thereof. Copies of the Indenture, the Lease Agreement, the Ground Lease and other documents are available, upon request, and upon payment to the City of a charge for copying, mailing and handling, from the City Clerk at the City of Indio, 100 Civic Center Mall, Indio, California 92201.

Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the Authority or the City and the purchasers or Owners of any of the Series 2022B Bonds.

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The execution and delivery of this Official Statement have been duly authorized by the Authority and the City.

INDIO PUBLIC FINANCING AUTHORITY
By:

Executive Director

CITY OF INDIO
By:

City Manager

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APPENDIX A

THE CITY OF INDIO

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APPENDIX B

SUMMARY OF THE PRINCIPAL LEGAL DOCUMENTS
The following is a brief summary of the provisions of the Indenture, the Ground Lease, the Lease Agreement and the Assignment Agreement. This summary is not intended to be definitive, and Owners of the Series 2022B Bonds should refer to the documents for the complete text thereof. Copies of the documents summarized herein are available from the City.

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APPENDIX C

ANNUAL COMPREHENSIVE FINANCIAL REPORT
OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2021

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APPENDIX D

PROPOSED FORM OF BOND COUNSEL OPINION
_____, 2022
Indio Public Financing Authority
Indio, California
Re:$__________ Indio Public Financing Authority Lease Revenue Bonds, Series 2022B Ladies and Gentlemen:

We have acted as bond counsel to the Indio Public Financing Authority (the “Authority”) in connection with the issuance by the Authority of $__________ Indio Public Financing Authority Lease Revenue Bonds, Series 2022B (the “Bonds”), pursuant to the provisions of Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the California Government Code (the “Bond Law”), and pursuant to an Indenture, dated as of _____ 1, 2022 (the “Indenture”), by and among the Authority, the City of Indio (the “City”) and U.S. Bank Trust Company, National Association, as Trustee. The Bonds will be principally secured by lease payments to be made by the City pursuant to a Lease Agreement, dated as of _____ 1, 2022 (the “Lease”), by and between the Authority and the City. We have examined the law and such certified proceedings and other documents, agreements, opinions and matters as we deem necessary to render this opinion. This opinion is based on current statutory and constitutional law and published court decisions as of the date hereof. Capitalized terms used herein and not otherwise defined shall have the meaning ascribed thereto in the Indenture.

As to questions of fact material to our opinion, we have relied upon representations of the Authority contained in the Indenture and in the certified proceedings and certifications of public officials and others furnished to us, without undertaking to verify the same by independent investigation.

We have assumed the genuineness of all documents and signatures presented to us, the authenticity of documents submitted as originals and the conformity to originals of documents submitted as copies. We have not undertaken to verify independently, and have assumed, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions contained in the opinions referred to in the preceding paragraphs of this opinion. Furthermore, we have assumed compliance with all covenants and agreements contained in the Indenture, the Lease and the Ground Lease. We call attention to the fact that the rights and obligations under the Bonds, the Indenture, the Lease, the Ground Lease, the Assignment Agreement and the Tax Certificate may be limited by bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors’ rights, by the application of equitable principles and the exercise of judicial discretion in appropriate cases and by the limitations on legal remedies against cities and public agencies in the State of California.

Based upon the foregoing we are of the opinion, under existing law, as follows:

1. The Authority is a joint exercise of powers authority duly organized and validly existing under the laws of the State of California with the full power to enter into the Indenture and the Lease, to perform the agreements on its part contained therein and to issue the Bonds.

2. The Indenture and the Lease have each been duly authorized, executed and delivered by the Authority and the Indenture and the Lease constitute the valid and binding obligations of the Authority

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enforceable against the Authority in accordance with their respective terms. The Indenture creates a valid pledge of the Base Rental Payments and other moneys pledged under the Indenture, subject to the provisions of the Indenture.

3. The Indenture and the Lease have each been duly authorized, executed and delivered by the City and the Indenture and the Lease constitute the valid and binding obligations of the City enforceable against the City in accordance with their respective terms.

4. The Bonds have been duly and validly authorized by the Authority and are legal, valid and binding limited obligations of the Authority, enforceable in accordance with their terms and the terms of the Indenture. The Bonds are limited obligations of the Authority payable solely from the Base Rental Payments and other moneys pledged under the Indenture as provided in the Indenture, but are not a debt of the City, the State of California or any other political subdivision thereof within the meaning of any constitutional or statutory limitation, and, neither the faith and credit nor the taxing power of the City, the State of California, or any of its political subdivisions is pledged for the payment thereof. The Authority has no taxing power.

5. Under existing statutes, regulations, rulings and judicial decisions, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals.

6. Interest (and original issue discount) on the Bonds is exempt from personal income taxes imposed in the State of California.

7. The difference between the issue price of a Bond (the first price at which a substantial amount of the Bonds of a maturity is to be sold to the public) and the stated redemption price at maturity with respect to such Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Bond Owner before receipt of cash attributable to such excludable income. The amount of original issue discount deemed received by a Bond Owner will increase the Bond Owner’s basis in the applicable Bond. Original issue discount that accrues to the Bond Owner is excluded from the gross income of such owner for federal income tax purposes, is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals (as described in paragraph 5 above) and is exempt from State of California personal income tax.

8. The amount by which a Bond Owner’s original basis for determining loss on sale or exchange in the applicable Bond (generally the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable Bond premium which must be amortized under Section 171 of the Internal Revenue Code of 1986, as amended (the “Code”); such amortizable Bond premium reduces the Bond Owner’s basis in the applicable Bond (and the amount of tax-exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of Bond premium may result in a Bond Owner realizing a taxable gain when a Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Owner.

The opinions expressed in paragraphs (5) and (7) above as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the Bonds are subject to the condition that the Authority and the City comply with all requirements of the Code, that must be satisfied subsequent to the issuance of the Bonds to assure that such interest (and original issue discount) will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause interest (and original issue discount) on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The Authority and the City have covenanted to comply with all such requirements. Except as set forth in paragraphs (5), (6), (7) and (8) above, we express no opinion as to any tax consequences related to the Bonds.

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Certain requirements and procedures contained or referred to in the Indenture, the Lease and Tax Certificate may be changed, and certain actions may be taken, under the circumstances and subject to the terms and conditions set forth in the Indenture, the Lease and Tax Certificate, upon the advice or with the approving opinion of counsel nationally recognized in the area of tax-exempt obligations. We express no opinion as to the effect on the exclusion of interest on the Bonds from gross income for federal income tax purposes on and after the date on which any such change occurs or action is taken upon the advice or approval of counsel other than Stradling Yocca Carlson & Rauth, a Professional Corporation.

Our opinion is limited to matters governed by the laws of the State of California and federal law. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction.

The opinions expressed herein are based upon an analysis of existing statutes, regulations, rulings and judicial decisions and cover certain matters not directly addressed by such authorities. We call attention to the fact that the foregoing opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether such actions or events are taken (or not taken) or do occur (or do not occur). Our engagement with respect to the Bonds terminates upon their issuance, and we disclaim any obligation to update the matters set forth herein.

We express no opinion herein with respect to any indemnification, contribution, choice of law, choice of forum, penalty or waiver provisions contained in the Bonds, the Indenture, the Lease, the Ground Lease or the Assignment Agreement; nor do we express any opinion with respect to the state or quality of title to any of the real or personal property described in the Lease or the Ground Lease, or the accuracy or sufficiency of the description contained therein, or the remedies available to enforce liens on, any such property contained therein.

We express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, nor do we express any opinion with respect to the state or quality of title to any of the real or personal property described in the Indenture or the Lease, or the accuracy or sufficiency of the description of any such property contained therein. We expressly disclaim any duty to advise the Owners of the Bonds with respect to the matters contained in the Official Statement and any other offering material relating to the Bonds.

We have not made or undertaken to make an investigation of the state of title to any of the real property described in the Lease or of the accuracy or sufficiency of the description of such property contained therein, and we express no opinion with respect to such matters.

Respectfully submitted,

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APPENDIX E

FORM OF CONTINUING DISCLOSURE AGREEMENT
This Continuing Disclosure Agreement, dated as of ________, 2022 (the “Disclosure Agreement”) is by and between the City of Indio (the “City”) and Willdan Financial Services (the “Dissemination Agent”), in connection with the issuance of the Indio Public Financing Authority’s (the “Authority”) $___________ Lease Revenue Bonds, Series 2022B (the “Bonds”).

WHEREAS, the Bonds are being issued pursuant to an Indenture, dated as of _____ 1, 2022 (the “Indenture”), by and among the Authority, the City and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”).

WHEREAS, the Bonds are payable from the base rental payments to be made by the City under the Lease Agreement, dated as of _____ 1, 2022 (the “Lease Agreement”), between the City, as lessee, and the Authority, as lessor; and
WHEREAS, this Disclosure Agreement is being entered into by the City for the benefit of the Owners and Beneficial Owners of the Bonds and in order to assist the Underwriters in complying with the Rule (defined below).

NOW, THEREFORE, the City and the Dissemination Agent agree as follows:

SECTION 1. Definitions. In addition to the definitions set forth in the Indenture, which apply to any capitalized term used in this Disclosure Agreement unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” shall mean any Annual Comprehensive Financial Report provided by the City pursuant to, and as described in, Sections 2 and 3 of this Disclosure Agreement. “Beneficial Owner” shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes.
“Disclosure Representative” shall mean the City Manager of the City, the Director of Finance of the City, or their designee, or such other officer or employee as the City shall designate in writing from time to time.
“Dissemination Agent” shall mean Willdan Financial Services, or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation. “Financial Obligation” means a (a) debt obligation; (b) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (c) guarantee of (a) or (b). The term “Financial Obligation” shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. “Listed Events” shall mean any of the events listed in Section 4(a) and (b) of this Disclosure Agreement.
“MSRB” shall mean the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule,

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or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” shall mean the Official Statement relating to the Bonds, dated _________, 2022. “Repository” shall mean the Electronic Municipal Market Access system of the Municipal Securities Rulemaking Board, which can be found at http://emma.msrb.org. “Rule” shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. “State” shall mean the State of California.
“Underwriters” shall mean the original Underwriters of the Bonds required to comply with the Rule in connection with the offering of the Bonds.

SECTION 2. Provision of Annual Reports.
(a) The City shall, or shall cause the Dissemination Agent, not later than nine months following the end of the City’s fiscal year (which presently ends on June 30) (the “Annual Report Date”), commencing with the report for the fiscal year ending June 30, 2022 due March 31, 2023, provide to the MSRB an Annual Report which is consistent with the requirements of Section 3 of this Disclosure Agreement. The Annual Report shall be provided to the MSRB in an electronic format as prescribed by the MSRB and shall be accompanied by identifying information as prescribed by the MSRB. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 3 of this Disclosure Agreement; provided that the audited financial statements of the City may be submitted separately from and later than the balance of the Annual Report if they are not available by the date required above for the filing of the Annual Report.

The Annual Report shall be provided at least annually notwithstanding any fiscal year longer than 12 calendar months. The City’s fiscal year is currently effective from July 1 to the immediately succeeding June 30 of the following year. The City will promptly notify the MSRB and the Dissemination Agent (if other than the City) of a change in the fiscal year dates. The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by it hereunder. The Dissemination Agent may conclusively rely upon such certification of the City and shall have no duty or obligation to review such Annual Report. (b) If by five (5) Business Days prior to the Annual Report Date, the Dissemination Agent (if other than the City) has not received a copy of the Annual Report, the Dissemination Agent shall notify the City of such non-receipt.
(c) If the Dissemination Agent is unable to verify that an Annual Report has been provided to the MSRB by the Annual Report Date, the Dissemination Agent shall provide in a timely manner to the MSRB (with a copy to the Trustee and the Underwriters) a notice, in substantially the form attached as Exhibit A. (d) Unless the City has done so pursuant to Section 3(a) above, the Dissemination Agent (if other than the City) shall:
(i) determine each year prior to the Annual Report Date the then-applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and

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(ii) if the Dissemination Agent is other than the City, file a certificate with the City to the effect that the Annual Report has been provided pursuant to this Disclosure Agreement, stating, to the extent it can confirm such filing of the Annual Report, the date it was provided.

SECTION 3. Content of Annual Reports. The City’s Annual Report shall contain or include by reference the following:
(a) The City’s audited financial statements, prepared in accordance with generally accepted auditing standards for municipalities in the State of California. If the City’s audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 2(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.
(b) Numerical and tabular information for the immediately preceding Fiscal Year of the type contained in Appendix A to the Official Statement, in the following charts and tables: Tables 8 (General Fund Balance Sheet), 9 (Statement of Revenues, Expenditures and Changes in General Fund Balance), 11 (Tax Revenues by Source), 15 (Assessed Value of Taxable Property) and 16 (Top Ten Taxpayers Based on Assessed Value).

Financial information relating to the City referenced in this Section 3 may be updated from time to time, and such updates may involve displaying data in a different format or table or eliminating data that is no longer available.

Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which have been submitted to the MSRB or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB. The City shall clearly identify each such other document so included by reference.

SECTION 4. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 4, the City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds in a timely manner not more than ten (10) business days after the event:

1. Principal and interest payment delinquencies;

2. Unscheduled draws on debt service reserves reflecting financial difficulties;

3. Unscheduled draws on credit enhancements reflecting financial difficulties;

4. Substitution of credit or liquidity providers, or their failure to perform;

5. Issuance by the Internal Revenue Service of proposed or final determination of taxability or of a Notice of Proposal Issue (IRS Form 5701-TEB);

6. Tender Offers;

7. Defeasances;

8. Rating changes;

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9. Bankruptcy, insolvency, receivership or similar proceedings; and Note: For the purposes of the event identified in subparagraph (9), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person.

10. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties.
(b) Pursuant to the provisions of this Section 4, the City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material, in a timely manner not more than ten (10) business days after occurrence:

1. unless described in Section 4(a)(5), adverse tax opinions or other material notices or determinations by the Internal Revenue Service with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds;

2. modifications to the rights of Bondholders;

3. bond calls;

4. release, substitution or sale of property securing repayment of the Bonds;

5. non-payment related defaults;

6. the consummation of a merger, consolidation, or acquisition involving the City or the Authority or the sale of all or substantially all of the assets of the City or the Authority, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms;

7. appointment of a successor or additional trustee or the change of the name of a trustee; and

8. incurrence of a Financial Obligation of the obligated person, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect Bond Owners.
(c) If the City determines that knowledge of the occurrence of a Listed Event under subsection (b) would be material under applicable federal securities laws, and if the Dissemination Agent is other than the City, the City shall promptly notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to file a notice of such occurrence with the MSRB in an electronic format as prescribed by the MSRB in a timely manner not more than ten (10) Business Days after the event. (d) If the City determines that the Listed Event under subsection (b) would not be material under applicable federal securities laws and if the Dissemination Agent is other than the City, the City shall so notify the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence.

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(e) The City hereby agrees that the undertaking set forth in this Disclosure Agreement is the responsibility of the City and, if the Dissemination Agent is other than the City, the Dissemination Agent shall not be responsible for determining whether the City’s instructions to the Dissemination Agent under this Section 5 comply with the requirements of the Rule.

SECTION 5. Identifying Information for Filings with the MSRB. All documents provided to the MSRB under this Disclosure Agreement shall be accompanied by identifying information as prescribed by the MSRB.

SECTION 6. Termination of Reporting Obligation. The obligations of the City, the Trustee and the Dissemination Agent under this Disclosure Agreement shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 4(c).

SECTION 7. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the form or content of any notice or report prepared by the City pursuant to this Disclosure Agreement. The Dissemination Agent may resign by providing thirty days written notice to the City and the Trustee. The Dissemination Agent shall not be responsible for the content of any report or notice prepared by the City and shall have no duty to review any information provided to it by the City. The Dissemination Agent shall have no duty to prepare any information report nor shall the Dissemination Agent be responsible for filing any report not provided to it by the City in a timely manner and in a form suitable for filing.

SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Agreement, the City may amend this Disclosure Agreement, and any provision of this Disclosure Agreement may be waived, provided that, in the opinion of nationally recognized bond counsel, such amendment or waiver is permitted by the Rule; provided, the Dissemination Agent shall have first consented to any amendment that modifies or increases its duties or obligations hereunder. In the event of any amendment or waiver of a provision of this Disclosure Agreement, the City shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Listed Event under Section 4(c), and (ii) the Annual Report for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles.

SECTION 9. Additional Information. Nothing in this Disclosure Agreement shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Agreement or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Agreement. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Agreement, the City shall have no obligation under this Disclosure Agreement to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.

SECTION 10. Default. In the event of a failure of the City to comply with any provision of this Disclosure Agreement, any Owners or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City

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to comply with its obligations under this Disclosure Agreement. A default under this Disclosure Agreement shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Agreement in the event of any failure of the City to comply with this Disclosure Agreement shall be an action to compel performance.

No Bond Owner or Beneficial Owner may institute such action, suit or proceeding to compel performance unless they shall have first delivered to the City satisfactory written evidence of their status as such, and a written notice of and request to cure such failure, and the City shall have refused to comply therewith within a reasonable time.

SECTION 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Agreement, and the City agrees, to the extent permitted by law, to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorney’s fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful misconduct. The Dissemination Agent shall also be entitled to any further protections and limitations from liability afforded to the Trustee under the Indenture as if such provisions were fully set forth herein. The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. In performing its duties hereunder, the Dissemination Agent shall not be deemed to be acting in any fiduciary capacity for the City, the Bond Owners, or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.

SECTION 12. Notices. Any notices or communications to or among any of the parties to this Disclosure Agreement may be given as follows:

City: City of Indio
100 Civic Center Mall
Indio, California 92201
Attention: City Manager
Dissemination Agent: Willdan Financial Services
27368 Via Industria, Suite 200
Temecula, California 92590
Attention: Federal Compliance Group
SECTION 13. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of the City, the Dissemination Agent, if any, the Underwriters and Owners and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.

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SECTION 14. Signature. This Disclosure Agreement has been executed by the undersigned on the date hereof, and such signature binds the City to the undertaking herein provided.

CITY OF INDIO
By:

City Manager
WILLDAN FINANCIAL SERVICES, as Dissemination
Agent
By:

Authorized Officer

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EXHIBIT A

NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD

OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: Indio Public Financing Authority
Name of Issue: Indio Public Financing Authority Lease Revenue Bonds, Series 2022B Date of Issuance: ___________, 2022
NOTICE IS HEREBY GIVEN that the City of Indio (the “City”) has not provided an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Agreement, dated as of ________, 2022, by and between the City and Willdan Financial Services. [The City anticipates that the Annual Report will be filed by __________.]
Dated: __________
[DISSEMINATION AGENT]
By: _______________________

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APPENDIX F

BOOK-ENTRY ONLY SYSTEM
The information in this section concerning DTC and DTC’s book-entry only system has been obtained from sources that the Authority believes to be reliable, but the Authority takes no responsibility for the completeness or accuracy thereof. The following description of the procedures and record keeping with respect to beneficial ownership interests in the Series 2022B Bonds, payment of principal, premium, if any, accreted value and interest on the Series 2022B Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the Series 2022B Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC.

1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the Series 2022B Bonds (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each maturity of the Securities in the aggregate principal amount of such maturity, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.

2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has an S&P Global Ratings highest rating: “AA+.” The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org..

3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records.

Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued.

4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an

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authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners.

In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

6. Redemption notices shall be sent to DTC. If less than all of the Securities within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.

7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Authority as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).

8. Principal, redemption price and interest payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Authority or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Paying Agent, or the Authority, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal, redemption price and interest payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Authority or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

9. If applicable, a Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to tender/remarketing agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to tender/remarketing agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Securities to tender/remarketing agent’s DTC account.

10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the Authority or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered.

11. The Authority may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC.

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City Council
June 15, 2022

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Kevin H. Snyder, Dir. Of Community Development Subject: Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Planning Commission Approval of the Boulders West, LLC. Design Review (Case No.

DR 22 -02-495) to allow a 65,000 square foot warehouse located on the southwest corner of Avenue 45 and Golf Center Parkway, and find the Project exempt from environmental review pursuant to Section 15332 of the CEQA Guidelines.

RECOMMENDATION:

Planning the upholding appeal for request and denying 10293, No. Resolution Adopt the Commission's action on May 11, 2022, conditionally approving Design Review (DR 22-02-495) for the development and design of a 65,000 square foot warehouse located on the southwest corner of Avenue 45 and Golf Center Parkway (Assessor Parcel Numbers 611-340-051, 611-340-052 and 611- 340-053).

SUMMARY:

On May 11, 2022, the Planning Commission voted 3 -0, with two Commissioners absent, to adopt Resolution No. 2024 (Attachment 2), approving Design Review Case No. DR 22 -02-495 for the development and design of a 65,000 square foot warehouse located at the so uthwest corner of Avenue 45 and Golf Center Parkway (Assessor Parcel Numbers 611-340-051, 611-340-052 and 611- 340-053) and finding the project is categorically exempt from the California Environmental Quality Act (Class 32). Supporters The Appellant, Allia is (SAFER), Responsibility for Environmental nce appealing the Planning Commission's decision, requesting the City Council deny DR 22 -02-495 and the associated CEQA exemption for the Project, and direct staff to prepare an Initial Study for the Project.

BACKGROUND INFORMATION:

Section 159.325(L) of the City of Indio Municipal Code requires Design Review for all structures within the Industrial Park (IP) Zoning District. The Applicant received a Design Review approval from the Planning Commission on May 11, 2022, to construct a 65,000 square foot tilt-up concrete warehouse building consisting of 8,000 square feet of office space, approval of building architecture, site plan, parking, circulation, and landscaping across three (3) separate, vacant parcels. Th e proposal is conditioned on the requirement that a Lot Line Merger will be facilitated to authorize development across the three parcels. Pursuant to the provisions of Sections 159.905 through 159.909 of the Indio Municipal Code, the City Council will con duct the required public hearing and consider whether to uphold or overturn the May 11, 2022 decision of the Planning Commission pertaining to the aforementioned entitlement application.

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PUBLIC HEARING NOTICE:

A public hearing notice for the appeal public hearings before the City Council was published on June 5, 2022 in La Prensa Hispana, and notices were mailed to the appellant and property owners within a 300-foot radius of the project site on June 1, 2022.

GROUNDS FOR APPEAL:

In the appeal petit ion submitted on May 23, 2022 (Attachment 4), SAFER, the appellant, objects to the Planning Commission's decision to find the Project exempt from the California Environmental Quality Act (CEQA) Guidelines pursuant to Section 15332. SAFER concludes that "t he City of Indio (“City”) cannot rely on the Class 32 (In -fill Development) Categorical Exemption because the City’s conclusions that the Project will not have significant adverse environmental impacts on biological resources and air quality are unsupporte d by evidence in the record." Further, SAFER argued the Exemption "is inapplicable because (1) the Class 32 exemption does not apply on its face, and (2) the unusual circumstances exception to the exemption applies. Since the Project is not exempt from CEQA, an initial study must be prepared to determine the appropriate level of CEQA review required." On page 6 -7 of the appeal petition, the appellant further states the Class 32(b) mandatory findings cannot be made, as the record does not show the Project wi ll not have a significant impact on air quality and biological resources. Staff previously performed a thorough review of the Project and it's consistency with the Class 32 Exemption, that is discussed below.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The City of Indio Planning Commission has determined the Project is categorically exempt from the requirements of the CEQA (Public Resources Code 21000 et seq.) and the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.) for the foregoing reasons: The Project is categorically exempt from environmental review pursuant to CEQA Guidelines Section 15332 (In-Fill Development Projects). The Class 32 exemption consists of projects characterized as in-fill development meeting the con ditions described as follows, and described in the approved staff report and spoken into the record from the May 11, 2022 Planning Commission meeting:

A. (CEQA Guidelines Section 15332(a)): The project is consistent with the applicable general plan desig nation and all applicable general plan policies as well as with applicable zoning designation and regulations:

The proposed project is within the Workplace and Employment District (WEP) land use designation pursuant to the 2040 General Plan adopted September 18, 2019. The WEP designation “provides an area for a wide variety of employment -generating activity, includ ing office, industrial and light manufacturing, research and development and supportive commercial.” Under the WEP designation primary allowed land uses include light industrial, manufacturing, office, research and development, live/work. The proposed project is a warehouse, which is allowable primary use under the WEP land use designation. In addition, the General Plan also refers to the Flex Spaces (LU-10.3) “to expand the number of flex facilities on land designated as Workplace and Employment to accommo date technology, light manufacturing, and service tenants and diversify the City’s economic base.” The warehouse is speculative, and no known tenants have been identified. However, the design of the facility will allow for a diverse range of tenants. Furthermore, the warehouse is principally permitted in the Industrial Park (IP) zoning designation. Additionally, the City certified and adopted an EIR for the 2040 General Plan. The uses under the WEP designation were fully contemplated and assessed under EIR. Therefore, it can be found that the project is consistent with the environmental analysis

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B. (CEQA Guidelines Section 15332(b)): The proposed Project occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses:

The project site is located within the City of Indio across three (3) parcels totaling approximately 3.84 acre, and is consistent with the required less than five (5) acres qualification requirements. The subject site is surrounded by properties developed with existing suburban land uses and public street rights- of-ways. Existing commercial/industrial buildings bound the project site to the north, west, south and vacant land to the east. These are all uses associated with an urbanized setting CEQA defines a qualified urban use as “…any residential, commercial, public institutional, transit or transportation facility, or retail use, or any combination of those uses.” Therefore, the proposed development occurs within the City of Indio City limits, on a project site of no more than five acres substantially surrounded by urban uses.

C. (CEQA Guidelines Section 15332(c)): The Project site has no value as habitat for endangered rare or threatened species:

The project site is on a vacant lot adjacent to improved land. According to the applicant, the project site was previously graded in 2003 -2004. The project site is surrounded by urban development and contains no sensitive habitat or habitat for special status species. Staff has visited the site and identified n ative shrubbery including creosote bush and non -native, invasive species including tamarisk. This is not classified as rare, endangered or threatened species. Additionally, this site was classified as Urban and Rural Developed land under Figure 4.4-1 - Existing Vegetation Communities and Land Cover Types mapped in the General Plan EIR (Attachment 5), and is not located within any identified conservation areas as shown in Figure 4.4 -4 - Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP) identified in the General Plan EIR (Attachment 6). Thus, the project site has been previously disturbed, has been reviewed for biological sensitivity under the General Plan EIR mapping efforts, and therefore has no value for endangered, rare or threatened species.

D. (CEQA Guidelines Section 15332(d)): Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality:

Traffic: The City’s Consulting Traffic Engineer has reviewed the proposed parki ng and circulation within the Project site and has required the following: (1) the driveway throat depth to the site drive aisle shall be a minimum of 50’ from the curb face on Avenue 45.; and (2) a “No Pedestrian Crossing – Use Crosswalk” sign shall be installed where the project walkway joins the sidewalk on Golf Center Parkway. The City of Indio has adopted the County of Riverside's Transportation Analysis Guidelines for Vehicle Miles Traveled (VMT). Pursuant to these Guidelines, warehouse (unrefrigerated) buildings with area less than or equal to 208,000 SF" are "presumed to cause a less -than-significant impact," and can be screened out from further environmental analysis. The proposed warehouse is 65,000 square feet in size; therefore, it can be determined the project will have a less-than-significant impact.

The Project is consistent with the General Plan; therefore, there are no anticipated traffic impacts that were not already evaluated under the General Plan 2040 Workplace and Employment District (WEP) designation.

Noise: The Project site is projected to have 50-65 Exterior Noise Level (Community Noise Equivalent Level (CNEL)) according to the City’s General Plan 2040 EIR under 4.12.1.5 Noise/Land Use

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Air Quality: The Project is located within the South Coast Air Basin (SCAB), which is under the jurisdiction of the South Coast Air Quality Management District (SCAQMD), the local air pollution control district. The SCAQMD is responsible for administering the Air Quality Management Plan (AQMP) for the SCAB, which is a comprehensive air pollution control program for attaining State and federal ambient air quality standards. Pursuant to Section 162.630 Dust Control Requirement, the contractor/permittee conducting any earth -moving operation shall be responsible for controlling dust and blowing sand at all times in a manner acceptable to the Director of Public Works. In addition, in order to comply with SCAQMD, all construction sites in the City of Indio need a Dust Control Plan called a Fugitive Dust Control Plan (PM10). Additionally, under the City’s adopted VMT thresholds, a warehouse use of 208,000 square feet is equivalent to 2,995 total MTCO2e which is under the SCAQMD threshold of 3,000 MT CO2e/year. This project is smaller than 208,000 square feet; therefore, it can be presumed to cause a less than significant impact. No additional modeling is required to assess air emissions sinc e the Project has been found to have a less than significant impact on air emissions when compared to the adopted standards. The Project is conditioned to comply with these requirements.

Water Quality: The Project site is located within the Valley Sanitary District (VSD) service boundary.

VSD will provide the wastewater collection and treatment services for the proposed project. The project is conditioned to comply with all Local, State and Federal regulations and guidelines. In addition, the Preliminary Water Management Plan (WQMP) for the Project was reviewed by the Engineering Division. Furthermore, Pursuant to Section 55.25(F), prior to the issuance of any building or grading permit for the construction of new development or redevelopment, a Water Qua lity Management Plan (WQMP) and Storm Water Pollution Prevention Plan (SWPPP) must be submitted and approved.

E. (CEQA Guidelines Section 15332(e)): The Project site can be adequately served by all required utilities and public services:

The site has domestic water availability on both the Golf Center and Avenue 45 frontage. The site has sanitary sewer available on both the Golf Center and Avenue 45 frontage, as well as in an existing sewer easement located on the west side of the property. The site has access to electrical power from the Imperial Irrigation District along both the Golf Center and Avenue 45 frontage. The site plan has been designed to store all stormwater runoff within the site, so there is no need for access to a public storm drainage. The site has access to communication facilities. The site can be adequately served by Police and Fire Services. Therefore, the site can be served by all required utilities and public services.

Section 15300.2(a, b, c, d, e, f):

The site is located in a n area designated by the City to support the light industrial use that is being proposed. The proposed use has been contemplated under the Workplace and Employment land use district, which fully assessed the impacts of warehouses, and other light industrial uses under the General Plan EIR. The property is surrounded by industrial uses to the south, west, and east, and commercial uses directly to the north. It is not located in an particularly sensitive environment; it does not present a cumulative impact, a s all projects in the area have undergone the appropriate environmental review in order to obtain approval from the appropriate decision making body and appropriate mitigation has been required for projects identified as having a significant impacts on the environment. Due to the discussion and analysis above, evidence has been presented to confirm the

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1112 of 1168 Project will not have a significant effect on the environment, as there are no unusual circumstances that apply to the subject site, nor the proposed use; it is not located within a scenic highway; it is not listed on a hazardous waste site pursuant to Section 65962.5 of the Government Code; and it will not cause a substantial adverse change in the significance of a historical resource.

Conclusion: The proposed Project has been reviewed for consistency with the requirements of the CEQA guidelines. Staff has determined that the Project is exempt from further environmental review pursuant to Section 15332 (In-fill Development Projects) for the reasons described above. Therefore, staff recommends the City Council review staff’s determination of exemption, and based on its own independent judgement, concur in staff’s determination of exemption under CEQA and conclude that no further environmental review is required, and none of the exceptions to the exemptions pursuant to Section 15300.2 (Exceptions) exist.

GENERAL PLAN:

The General Plan 2040 designates the subject property under the Workplace and Employment (WEP) District. The WEP designation “provides an area for a wide variety of employment-generating activity, including office, industrial and light manufacturing, research and development and supportive commercial.” industr light designation the WEP include land allowed Primary uses under ial, manufacturing, office, research and development, live/work. The project site is located within the I-10 Employment Corridor under the General Plan 2040 Subareas. This subarea encourages the siting of light industrial, manufacturing, and logistics uses within the corridor that creates employment/job opportunities. The proposed Project is a speculative warehouse, which is allowable primary use under the WEP land use designation. Policy LU -10.1 requires the design of WEP facilities “to be urban in character with compact buildings sited at or near front lot lines, provide a high percentage of lot coverage, and building facades and entrances directly facing the street. Buildings should have a high degree of transparency and visibility. Parking lots and large setbacks shall not dominate the frontage of the Workplace and Employment Districts.” The proposed warehouse consists of a modern façade, with a large mezzanine on the northeast face of the building. The building will dominate approximately 40% of the 3.85 -acre Project area, and will contain primary entrances directly facing Golf Center Parkway and Avenue 45. In addition, the General Plan also refers to the Flex Spaces (LU -10.3) “to expand as Em and Workplace designated number on facilities flex of the land to ployment accommodate technology, light manufacturing, and service tenants and diversify the City’s economic base.” The proposed warehouse is speculative; however, the design of the facility would allow multiple users and flexibility for tenants with des ignated office space, grade level and high dock loading spaces, and ample parking spaces. Therefore, the Project is consistent with the City’s General Plan 2040 and all applicable General Plan policies.

Conclusion: As described above, staff concludes tha t the project is consistent with the goals and policies of the 2040 General Plan WEP land use designation.

ZONING CODE

The Project Site is located within the Industrial Park (IP) Zoning District. Pursuant to Section 159.321 (Q) of the Indio Municipal Code, warehousing is principally permitted in the IP Zoning District. Sections 159.325 (L) of the City of Indio Municipal Code requires Design Review for all structures within the IP Zoning District. Pursuant to Section 159.726 (Findings) of the Indio Municipal Code, the Planning Commission shall make the following findings before granting approval for Design Review 22-02-495:

a) That the proposed location of the use is in accord with the objectives of this title and the purpose of the district in which the site is located;

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Evidence for Finding a: The Project site is located within the Industrial Park (IP) Zoning District. The purpose of the IP Zoning District is to permit more intensive types of industrial operations and facilities.

The allowed uses under the IP Zone include but are not limited warehousing and storage. The location of the proposed warehouse is principally permitted in the IP Zone, and therefore is in accord with the objectives and purposes of Title XV of the Indio Municipal Code and Section 159.320 et seq.

b) That the proposed location of the use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety, or welfare, or be materially injurious to properties or improvements in the vicinity;

Evidence for Finding b: The zoning regulations of the City are adopted to protect, promote and enhance the public health, safety and general welfare. The recommended conditions of approval require development in accordance with the approved site plan, elevations, floor plan and landscape plan, which allows the City to protect and promote the public health, safe ty and general welfare by reviewing all proposals and regulating approval. All structures, landscaping, sidewalks, parking lot surfacing, and all other improvements within the Project will be required as a condition of approval to be continually maintained in good condition and repair including the replacement of all dead or dying landscape material with new landscape material. In addition, handicapped parking spaces are required for common parking areas, and an approved fire sprinkler system is required. T he overall access and circulation of the subject site and building addition has been reviewed and approved by the City’s Consulting Traffic Engineer and Indio Fire Department. The Applicant will also be conditioned to provide a water system capable of deli vering enough water for the Fire Department’s use in an emergency, in addition to Fire Department access, sprinklers, etc. These conditions and others protect the public health, safety and general welfare. Pursuant to Section 159.730 of the Indio Municipal Code, approved design reviews are valid for two (2) years and shall otherwise automatically expire (unless extended), which ensures timely oversight of public health, safety or welfare concerns and prevents any material injury to properties or improvements in the vicinity.

c) That the proposed use will comply with each of the applicable provisions of this title, except for approved conditional use permits, variances or adjustments;

Evidence for Finding c: The Applicant is not requesting approval of an y variances or adjustments as part of the proposed entitlements. The specific improvements related to the proposed Project will be reviewed and approved by the City staff and outside agencies during the plan check and building permit process. The following findings identify the applicable code standards of the Industrial Park (IP) Zoning District as discussed in the following:

Setbacks:

The General Development Standards for the IP District require a minimum street frontage setback of twenty (20) feet. The proposed project front setback is 72 feet. The IP District requires minimum rear setback shall be twenty (20) feet where abutting a residentially zoned property, otherwise no setback is required. The proposed project is not abutting a residentially zoned property. The proposed project rear setback is 33 feet. Finally, the IP District requires a minimum side setback of twenty (20) feet where abutting a residentially zoned property, otherwise no setback is required. The proposed project is not abutting a residentially zoned property. The proposed project side setback is a minimum 39 feet (south side setback).

Site Plan/Architecture:

The proposed warehouse is a one -story building with exterior design typical of modern industrial buildings. The footprint of the warehouse covers 59,000 square feet ground area. A 6,000 square foot

AGENDA ITEM #9.5
Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1114 of 1168 mezzanine is proposed on the east side of the building. The 15 foot tall mezzanine features a stairway and elevator to access an outdoor area fronting Golf Center Parkway. An overhang is featured over the mezzanine outdoor area, with a white hue color. The proposed building has a total height of 30 feet and eight inches, which is under the permitted maximum height of thirty-five (35) feet allowed by the IP District standards. The proposed building will be painted primarily with grey color and contain glass exterior windows with a tint of blue hue. Trash enclosures will be located along the northwest portion of the building. Additionally, the proposed warehouse will contain seven (7) loading docks to accommodate distribution of materials for future tenants with product distribution requirements, or delivery of materials to the site. Air conditioning units will be roof-mounted and screened visually.

Landscaping:

Section 159.325 (F) requires all setbacks shall be landscaped, or otherwise treated, consistent with surrounding development. The Applicant has submitted a conceptual landscape plan for the Project.

The proposed conceptual landscape plan shows landscape on all setbacks with drought tolerant trees such as Mulga (Acacia Aneura), Shoestring acacia (Acacia stenophylla), and Mexican fan palm (Washingtonia robusta). Proposed shrubbery include bougainvillea, Senna (Cassia Nemophila), and Ocotillo (Fouquieria splendens). Landscaping will also incorporate crushed rock colored “Desert Gold” as groundcover, crushed rock colored “Copper Canyon”, and boulders of various sizes colored “Desert Sand”. The Applicant will be required as a condition of approval to submit a final landscape plan including plant materials and an irrigation system to the Planning Division for review and approval during the plan check process.

Access/Circulation and Parking:

The site plan shows two (2) shared driveways: 1) off of Golf Center Parkway, and 2) off of Avenue 45 (existing). These shared driveways will provide ingress/egress to the project site. The project has been conditioned to inclu de full off -site street improvements for both of these streets, including driveways, sidewalks, street lights, and storm drain systems along the property frontage prior to issuance of a Certificate of Occupancy. Section 159.656, the City’s Parking Schedule, requires “One space per each 500 square feet of floor area” for warehouses. The proposed project will require a minimum of 146 parking spaces. The applicant has identified 158 spaces, including ADA spaces, which exceeds the required parking. In addition, for industrial buildings larger than 40,001 square feet, three (3) loading spaces are required. The project will contain seven (7) loading spaces, including three (3) high loading docks and four (4) ground level loading docks.

Exterior Lighting:

Section 159.653 (I) of the City of Indio Municipal Code states that “the equivalent of one- foot candle illumination shall be provided throughout the parking area. All lighting shall be on a time -clock or photo-sensor system. Lighting used to illuminate parking areas shall be designed and located to confine direct rays to the premises. No spillover or bleeding of light beyond the property line or into the sky shall be permitted. Light standards shall be a maximum of twenty -four (24) feet in height in nonresidential areas and twenty (20) feet in height in residential areas. Illumination shall not include low pressure sodium or similar lighting techniques.” The applicant is required to submit a lighting plan as a condition of approval.

Signage:

No signage has bee n submitted for preliminary review, or is planned at this stage of development.

The Project has been conditioned to require a sign permit for any new proposed signs. All new signage is subject to review and final approval by the Community Development Director as set forth in Chapter 150.015 of the Indio Municipal Code.

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1115 of 1168 d) That the proposed use complies with the goals, objectives, and policies of the city's general plan;

Evidence for Finding d: The WEP designation “provides an area for a wide variety of employment- generating activity, including office, industrial and light manufacturing, research and development and supportive commercial.” Under the WEP designation primary allowed land uses include light industrial, manufacturing, office, research and de velopment, live/work. The proposed project is a speculative warehouse building with designated office space. This is an allowable primary use under the WEP land use designation. In addition, the General Plan also encourages Flex Spaces (LU-10.3) “to expand the number of flex facilities on land designated as Workplace and Employment to accommodate technology, light manufacturing, and service tenants and diversify the City’s economic base.” The proposed warehouse is speculative; however, the design of the facility would allow multiple users and flexibility for tenants. Therefore, the Project is consistent with the City’s General Plan 2040 and applicable policies. Furthermore, the proposed warehouse is permitted in the Industrial Park zone.

Therefore, the propo sed design and layout of the project site will support the Workplace and Employment District (WEP) General Plan designation and the proposed use complies with the goals, objectives, and policies of the General Plan 2040.

Conclusion: Staff concludes that the project is consistent with the goals and policies of the 2040 General Plan WEP land use designation. The warehouse will occupy land that is currently vacant, and support infrastructure that would comply with the overall purpose of the WEP designation.

RECOMMENDATION:

Adopt Resolution No. 10293 denying the request for appeal and upholding the Planning Commission's action on May 11, 2022, conditionally approving Design Review (DR 22 -02-495) for the architecture, site plan, parking, circulation and pr eliminary landscaping for the Boulders West LLC project for a 65,000 square foot warehouse located on the southwest corner of Avenue 45 and Golf Center Parkway (Assessor Parcel Numbers 611 -340-051, 611-340-052 and 611-340-053), and determining that the project is exempt from the California Environmental Quality Act pursuant to Guidelines Section 15332 (Class 32 - Infill Development).

ATTACHMENTS:

Attachment 1 - Resolution No. 10293
Attachment 2 - Resolution No. 2024
Attachment 3 - Vicinity Map
Attachment 4 - Petition of Appeal Application
Attachment 5 - Figure 4.4-1 Vegetation and Land Cover
Attachment 6 - Figure 4.4-3 CVMSHCP Conservation Areas
Attachment 7 - Boulders West LLC Design Plan Set

APPROVAL(S):

Kevin H. Snyder, Dir. Of Community Development Approved - 09 Jun 2022 Roxanne Diaz, City Attorney Approved - 09 Jun 2022
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 09 Jun 2022 Bryan H. Montgomery, City Manager Approved - 09 Jun 2022

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RESOLUTION NO. 10293

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA,

DENYING THE APPEAL BY SUPPORTERS ALLIANCE FOR ENVIRONMENTAL

RESPSONSIBILITY, AND UPHOLDING THE PLANNING COMMISSION'S ACTION ON MAY 11, 2022, CONDITIONALLY APPROVING DESIGN REVIEW (DR 22-02-495) FOR

THE ARCHITECTURE, SITE PLAN, PARKING, CIRCULATION AND PRELIMINARY LANDSCAPING FOR THE BOULDERS WEST LLC PROJECT FOR A 65,000 SQUARE FOOT WAREHOUSE LOCATED ON THE SOUTHWEST CORNER OF AVENUE 45 AND GOLF CENTER PARKWAY (ASSESSOR PARCEL NUMBERS 611-340-051, 611- 340-052 AND 611 -340-053), AND DETERMINING THAT THE PROJECT IS EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO GUIDELINES SECTION 15332 (CLASS 32 - INFILL DEVELOPMENT).

WHEREAS, on February 24, 2022, the Applicant, Boulders West, LLC (Matthew V. Johnson, Managing Member) submitted an application for Design Review for a proposed 65,000 square foot warehouse and associated parking, landscaping, circulation and architecture; and,
WHEREAS, the Project Site is located on the southwest corner of Avenue 45 and Golf Center Parkway (Assessor Parcel Numbers 611-340-051, 611-340-052 and 611 - 340-053); and,

WHEREAS, the Project is within the Industrial Park (IP) Zoning District regulated by the Section 159.320 of the Indio Municipal Code, and has a General Plan 2040 land use designation of Workplace and Employment District (WEP); and,

WHEREAS, a notice of a public hearing was conducted in accordance with Section 159.905 of the Indio Municipal Code inclusive of the pu blication on April 29, 2022, of a legal public hearing notice in the Desert Sun the City’s newspaper of record, and mailing of a public hearing notice to a certified list of property owners within 300 feet of the subject properties on April 27, 2022; and,

WHEREAS, on May 11, 2022, the Planning Commission held a duly noticed public hearing to consider the application for the Design Review during which evidence, both written and oral, including the staff report and supporting documents was presented at said hearing, and the Planning Commission voted 3-0, with two Commissioners absent, to adopt Resolution No. 2024, approving Design Review Case No. DR 22-02-495 for the development and design of a 65,000 square foot warehouse located at the southwest corner of Avenue 45 and Golf Center Parkway (Assessor Parcel Numbers 611 -340-051, 611-340-052 and 611-340-053) and finding the project is categorically exempt from the California Environmental Quality Act (Class 32); and,

WHEREAS, on May 23, 2022, the Appellant, Supporters Alliance for Environmental Responsib ility (SAFER), submitted a petition of appeal, appealing the

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1118 of 1168 Planning Commission's decision, requesting the City Council deny DR 22-02-495 and the associated CEQA exemption for the Project, and direct staff to prepare a n Initial Study for the Project; and,

WHEREAS, pursuant to Indio Municipal Code Section 159.905 et seq., the Appellant timely appealed the decision of the Planning C ommission to the City Council.

A notice of public hearing before the City Council for the June 15, 2022 agenda was published on June 5, 2022 in La Pre nsa Hispana, and notices were mailed to the Appellant and property owners within a 300-foot radius of the project site on June 1, 2022; and,
WHEREAS, on June 15, 2022 the City Council held a duly noticed public hearing to consider the appeal of the May 11, 2022 Planning Commission’s decision to conditionally approve Design Review 22-02-495, during which evidence, both written and oral, including the staff report and supporting documents were presented. At the conclusion of the public hearing and following discussion the City Council approved this Resolution to reject the appeal and uphold the Planning Commission’s action to conditionally approve Design Review 22 -02-495 subject to the Class 32 CEQA Guidelines.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, HEREBY RESOLVES, FINDS AND DETERMINES AS FOLLOWS:

SECTION 1. The City Council hereby specifically finds that all of the facts set forth in the recitals of this Resolution are true and correct, are incorporated into this Resolution by reference and constitute a material part of this Resolution.

SECTION 2. The City Council, based upon the evidence presented at the hearing, including the staff report, and based upon its independent review, finds that Design Review (DR 22-02-495) is categorically exempt from the requirements of the California Environmental Quality Act (“CEQA”) (Cal. Pub. Res. Code, § 21000 et seq.) and the State CEQA Guidelines (the “Guidelines”) (14 Cal . Code Regs. § 15000 et seq.). The Project qualifies under the Class 32 categorical exemption set forth in CEQA Guidelines Section 15332 because:

(a) The proposed Project is consistent with the Workplace and Employment (WEP) land use designation under the General Plan 2040, and all applicable General Plan policies, the Industrial Park (IP) zoning district and applicable regulations;

(b) The proposed development occurs within the City’s limits on a project site of no more than five acres (3.84 acres) substantially surrounded by urban uses .

The subject site is surrounded by properties developed with existing, suburban land uses and public street rights -of-ways. Existing commercial/industrial buildings bound the project site to the north, west, south and east. These are all uses associated with an urbanized setting CEQA defines a qualified urban use as “…any residential, commercial, public institutional, transit or transportation facility, or retail use, or any combination of those uses.”

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1119 of 1168 Therefore, the proposed development occurs within the City of Indio City limits, on a project site of no more than five acres substantially surrounded by urban uses;

(c) The proposed Project site has no value as habitat for endangered, rare or threatened species and is classified as Urban and Rural Developed land under Existing Vegetation Communities and Land Cover Types mapped in the General Plan EIR; and not located within any identified conservation areas mapped within the Coachella V alley Multiple Species Habitat Conservation Plan (CVMSHCP) identified in the General Plan EIR. Thus, the project site has been previously disturbed, has been reviewed for biological sensitivity under the General Plan EIR mapping efforts, and therefore has no value for endangered, rare or threatened species;

(d) Approval of the proposed Project would not result in any significant effects relating to traffic, noise, air quality, or water quality for the following reasons:

i) Traffic: The City’s Consulting Traffic Engineer has reviewed the proposed parking and circulation within the Project site and has required the following: (1) the driveway throat depth to the site drive aisle shall be a minimum of 50’ from the curb face on Avenue 45.; and (2) a “No Pedestrian Crossing – Use Crosswalk” sign shall be installed where the project walkway joins the sidewalk on Golf Center Parkway. The City of Indio has adopted the County of Riverside's Transportation Analysis Guidelines for Vehicle Miles Traveled (VMT). Pursuant to these Guidelines, warehouse (unrefrigerated) buildings with an area less than or equal to 208,000 SF" are "presumed to cause a less -than-significant impact," and can be screened out from further environmental analysis. The proposed warehouse is 65,000 square feet in size; therefore, it can be determined the project will have a less -than-significant impact. The Project is consistent with the General Plan; therefore, there are no anticipated traffic impacts that were not already evaluated under the General Plan 2040 Workplace and Employment District (WEP) designation.

ii) Noise: The Project site is projected to have 50 -65 Exterior Noise Level (Community Noise Equivalent Level (CNEL)) according to the City’s General Plan 2040 EIR under 4.12.1.5 Noise/Land Use Compatibility Standards, which is within the “acceptable” noise range for commercial, industrial and maintenance/repair.

iii) Air Quality: The Project is located within the South Coast Air Basin (SCAB), which is under the jurisdiction of the South Coast Air Quality Management District (SCAQMD), the local air pollution control district. The SCAQMD is responsible for administering the Air Quality

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1120 of 1168 Management Plan (AQMP) for the SCAB, which is a comprehensive air pollution control program f or attaining State and federal ambient air quality standards. Pursuant to Section 162.630 Dust Control Requirement, the contractor/permittee conducting any earth-moving operation shall be responsible for controlling dust and blowing sand at all times in a manner acceptable to the Director of Public Works.

In addition, in order to comply with SCAQMD, all construction sites in the City of Indio need a Dust Control Plan called a Fugitive Dust Control Plan (PM10). Additionally, under the City’s adopted VMT thresholds, a warehouse use of 208,000 square feet is equivalent to 2,995 total MTCO2e which is under the SCAQMD threshold of 3,000 MT CO2e/year. This project is smaller than 208,000 square feet; therefore, it can be presumed to cause a less than significant impact. No additional modeling is required to assess air emissions since the Project has been found to have a less than significant impact on air emissions when compared to the adopted
standards. The Project is conditioned to comply with these requirements.

iv) Water Quality: The Project site is located within the Valley Sanitary District (VSD) service boundary. VSD will provide the wastewater collection and treatment services for the proposed project. The project is conditioned to comply with all Local, State and Federal regulations and guidelines. In addition, the Preliminary Water Management Plan (WQMP) for the Project was reviewed by the Engineering Division. Furthermore, Pursuant to Section 55.25(F), prior to the issuance of any building or grading permit f or the construction of new development or redevelopment, a Water Quality Management Plan (WQMP) and Storm Water Pollution Prevention Plan (SWPPP) must be submitted and approved.

(e) The proposed Project site can be adequately served by all required utilities and public services.

(f) None of the exceptions to the exemptions pursuant to Section 15300.2 of the CEQA Guidelines exist for the following reasons: The site is located in an area designated by the City to support the light industrial use that is being proposed.

The proposed use has been contemplated under the Workplace and Employment land use district, which fully assessed the impacts of warehouses, and other light industrial uses under the General Plan EIR. The property is surrounded by industrial uses to the south, west, and east, and commercial uses directly to the north. It is not located in an particularly sensitive environment; it does not present a cumulative impact, as all projects in the area have undergone the appropriate environmental review in order to obtain approval from the appropriate decision making body and appropriate mitigation has been required for projects identified as having a significant impacts on the

AGENDA ITEM #9.5
Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1121 of 1168 environment. Due to the discussion and analysis above, evidence has been presented to confirm the Project will not have a significant effect on the environment, as there are no unusual circumstances that apply to the subject site, nor the proposed use; it is not located within a scenic highway; it is not listed on a hazardous waste site pursuant to Section 65962.5 of the Government Code; and it will not cause a substantial adverse change in the significance of a historical resource.

SECTION 3. Based upon the evidence presented at the hearing, including the staff report, the City Council hereby finds:

1. The Project site is located within the Industrial Park (IP) Zoning District. The purpose of the IP Zoning District is to permit more intensive types of industrial operations and facilities. The allowed uses under the IP Zone include but are not limited warehousing and storage. The location of the proposed warehouse is principally permitted in the IP Zone, and therefore is in accord wit h the objectives and purposes of Title XV of the Indio Municipal Code and Section 159.320 et seq.

2. The zoning regulations of the City are adopted to protect, promote and enhance the public health, safety and general welfare. The recommended conditions of approval require development in accordance with the approved site plan, elevations, floor plan and landscape plan, which allows the City to protect and promote the public health, safety and general welfare by reviewing all proposals and regulating approva l. All structures, landscaping, sidewalks, parking lot surfacing, and all other improvements within the Project will be required as a condition of approval to be continually maintained in good condition and repair including the replacement of all dead or d ying landscape material with new landscape material. In addition, handicapped parking spaces are required for common parking areas, and an approved fire sprinkler system is required. The overall access and circulation of the subject site and building addit ion has been reviewed and approved by the City’s Consulting Traffic Engineer and Indio Fire Department. The Applicant will also be conditioned to provide a water system capable of delivering enough water for the Fire Department’s use in an emergency, in addition to Fire Department access, sprinklers, etc. These conditions and others protect the public health, safety and general welfare. Pursuant to Section 159.730 of the Indio Municipal Code, approved design reviews are valid for two (2) years and shall otherwise automatically expire (unless extended), which ensures timely oversight of public health, safety or welfare concerns and prevents any material injury to properties or improvements in the vicinity.

3. The Proposed use will comply with each of the applic able provisions of Title XV (Land Usage) in the Indio Municipal Code. Pursuant to Ind io Municipal Code Section 159.321 (Q) is principally permitted within the Industrial Park (IP) zoning district. The Applicant will be required to submit a separate applica tion for review and approval of a sign permit. The proposed signage will be required to comply with the approved signage requirements of the Indio Municipal Code. There are

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1122 of 1168 no approved variances or adjustments nor are they being considered as part of this analysis. Therefore, the Proposed Use conforms to this criterion and the approval of this Proposed Use will include conditions of approval to ensure compliance.

4. The WEP designation “provides an area for a wide variety of employment - generating activity, including office, industrial and light manufacturing, research and development and supportive commercial.” Under the WEP designation primary allowed land uses include light industrial, manufacturing, office, research and development, live/work. The propos ed project is a speculative warehouse building with designated office space. This is an allowable primary use under the WEP land use designation. In addition, the General Plan also encourages Flex Spaces (LU-10.3) “to expand the number of flex facilities o n land designated as Workplace and Employment to accommodate technology, light manufacturing, and service tenants and diversify the City’s economic base.” The proposed warehouse is speculative; however, the design of the facility would allow multiple users and flexibility for tenants. Therefore, the proposed design and layout of the project site will support the Workplace and Employment District (WEP) General Plan designation and the proposed use complies with the goals, objectives, and policies of the General Plan 2040.

SECTION 4. Based on the foregoing, the City Council hereby denies the appeal and upholds the Planning Commission action on May 11, 2022, and approves Design Review (DR 22-02-495) subject to the following conditions of approval. The Applicant shall demonstrate compliance to ALL conditions of approval, listed in Resolution. Failure to demonstrate compliance to these conditions of approval may result in the delay of the Proposed Use or the res cinding of the City of Indio’s project approval. Where the term “Applicant” is used in any condition of approval, this term shall apply also to the Property owner, any developer, or any successor in interest of the Applicant. It is the Applicant’s or Applicant’s successor in interest responsibility to fully comply with the conditions of approval, unless subsequently modified in accordance with the City’s required processes and procedures. The relevant City department or division or outside agency is noted in parentheses in the event that there are questions or additional information needed regarding a condition of approval.

A. General Conditions of Approval:

These conditions, as applicable and when necessary, shall be complied with no later than the issuance of Certificate of Occupancy, unless otherwise specified:

1. Where the term “Applicant” is used herein, this term shall apply also to the Property owner, any developer, or any successor in interest of the Applicant. (Planning Division)

2. The Design Review (DR 22-02-495) approval granted by this Resolution shall be valid for twenty-four (24) months from Planning Commission the date of approval; unless prior to the expiration of the two years, a building permit is issued and construction is

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3. In the event of any court action or proceeding challenging the approval of this resolution or otherwise challenging the approval of Design Review ( DR 22-02-495), the Applicant shall defend, at its own expense, the action or proceeding. In addition, the Applicant shall reimburse the City for the City's cost of de fending any such court action or proceeding. The Applicant shall also pay any award of costs, expenses and fees that the court having jurisdiction over such challenge makes in favor of any challenger and against the City. The Applicant shall cooperate with the City in any such defense as the City may reasonably request and may not resolve such challenge without the agreement of the City. In the event the Applicant fails or refuses to reimburse the City for its cost to defend any challenge, the City shall ha ve the right, among other remedies, to revoke this approval. In order to ensure compliance with this condition, within twenty (20) days after notification by the City of the filing of any claim, action or proceeding to attack, set aside, void or annul the approval of this Design Review, the Applicant shall deposit with the City cash or other security in the amount of ten thousand dollars ($10,000), satisfactory in form to the City Attorney, guaranteeing indemnification or reimbursement to the City of all co sts related to any action triggering the obligations of this condition. If the City is required to draw on that cash or security to indemnify or reimburse itself for such costs, the Applicant shall restore the deposit to its original amount within thirty ( 30) calendar days after notice from the City. Additionally, if at any time the City Attorney determines that an additional deposit is necessary to secure the obligations of this section, the Applicant shall provide such additional security within thirty (30) calendar days of notice from the City Attorney. The City shall promptly notify the Applicant of any claim, action or proceeding within the scope of this condition. (Planning Division)

4. The Applicant shall cause to be recorded against the subject site these and all related conditions of approval with the Riverside County Recorder. (Planning Division)

5. The Applicant shall, within 30 days after approval of this Resolution, submit to the Community Development Director its written consent to all of the conditi ons of approval contained in this Resolution without amendment. (Planning Division)

6. The Applicant shall deliver to the Community Development Department a cashier’s check, money order or other acceptable form of payment made payable to the Riverside County Clerk in the amount of $50.00 to cover the County administrative fee to enable the City of Indio to file the CEQA Notice of Exemption pursuant to the California Code of Regulations Section 15062. (Planning Division)

7. All Conditions of Approval shall be provided on a full-size sheet as part of the construction plan set. All notes and specifications as shown on the plans shall be

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1124 of 1168 considered Conditions of Approval. If there is a conflict between the approved plans and the Conditions of Approval, the Conditions of Approval shall prevail. (Planning Division)

8. The Applicant shall ensure that all development shall occur substantially as shown on the site plan, floor plans, elevations, and la ndscape plans on file with the Community Development Director. (Planning Division)

9. The Applicant shall submit a sign application and fee to the Planning Division for review and approval prior to the issuance of a sign permit. (Planning Division)

10. Trash/recycling enclosures shall be of adequate size to contain and view obscure containers and materials therein. (Planning Division)

11. Trash/recycling enclosures shall be constructed of decorative block or concrete and shall match the surrounding buildings in color and texture. Solid metal gates painted to match the enclosure shall be required. All gates shall be post mounted. (Planning Division)

12. The location of trash/recycling enclosures shall not conflict with circulation or parking conditions on site. A condition shall not be created where a parked vehicle will obstruct access to an enclosure nor where a disposal truck will obstruct parked vehicles. (Planning Division)

13. The Applicant shall provide a lighting plan to the Community Development Department (Planning Services) and the Police Department for review and approval. Any outdoor lighting shall be hooded or shielded to prevent either spillage of lumens or reflections into the sky pursuant to the Indio Municipal Code. (Planning Services)

14. The Applicant shall comply with the landscaping requirements outlined in Section 159.666 of the Indio Municipal Code. (Planning Division)

15. The driveway throat depth to the site drive aisle shall be a minimum of 50’ from the curb face on Avenue 45. (Engineering Services)

16. A “No Pedestrian Crossing – Use Crosswalk” sign shall be installed where the project walkway joins the sidewalk on Golf Center Parkway. (Engineering Services) Fire Prevention Office

17. Fire Hydrants and Fire Flow : Provide one copy of the water system plans to show there exist fire hydrant(s) capable of delivering the minimum fire flow, per CFC Appendix B Table B105.1, within 400 feet to all portions around the proposed structure. Minimum fire hydrant location and spacing shall comply with the CFC and NFPA 14.

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18. Fire Department Access : Provide a site plan for fire apparatus access roads and signage. Access roads shall be provided to within 150 feet to all portions of all buildings and shall have an unobstructed width of not less than 24 feet. The construction of the access roads shall be all weather and capable of sustaining 75,000 lbs. over two axels for commercial developments and residential tract developments (CFC 503.1.1. and 503.2.1 as amended by the City of Indio).

19. Traffic Calming Devices: Requests for installation of traffic calming designs/devices on fire apparatus access roads are prohibited unless submitted and approved by the Office of the Fire Marshal (CFC 503.4.1)

20. Construction Permits Fire Department Review : Submittal of construction plans to the Office of the Fire Marshal for development, construction, installation and operational use permitting will be required. Final fire and life safety conditions will be addressed when the Office of the Fire Marshal reviews these plans. These conditions will be based on occupancy, use, California Building Code, California Fire Code, and related codes, which are in effect at the time of building plan submittal.

21. Phased Construction Access: If construction is phased, each phase shall provide approved access for fire protection prior to any construction. (CFC 503.1)

22. Fire Sprinkler Systems: All structures 3,600 square feet or larger, regardless of occupancy type, will be required to install a NFPA 13 fire sprinkler system (CFC 903.2 and NFPA 13) as amended by the City of Indio.

For non -combustible canopies 3600 square feet or larger, an Alternative Methods and Materials application can be submitted to the Office of the Fire Marshal for review to eliminate the fire sprinkler requirement.

23. Fire Alarm and Detection System : A water flow monitoring system and/or a fire alarm system will be required in all buildings (CFC 903.4, CFC 907.2, and NFPA 72)

24. Knox Box and Gate Access: Buildings shall be provided with a Knox Box. The Knox Box shall be installed in an accessible loca tion approved by the Office of the Fire Marshal, six feet from grade. All electronically operated gates shall be provided with Knox key switches and automatic sensors for access. The minimum gate width is 14 feet (CFC 506.1)

25. Commercial Addressing: All commercial buildings shall display street numbers in a prominent location on the address side and additional locations as required.

Commercial buildings less than 25 feet in height require 12 inch numerals, buildings over 25 feet in height require 24 inch numerals. (CFC 505.1 and Riverside County Fire Department Standard #07-01)

Imperial Irrigation District

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26. IID will not begin any studies, engineering or estimate costs to provide electrical service to project, until the applicant submits a customer project application (available for download at http://www.iid.com/home/showdocument?id=12923) and detailed loading information, panel sizes, project schedule and estimated in­ service date.

Applicant shall bear all costs associated with providing electrical service to the project, including but not limited to the construction of a distribution backbone feeder and line extensions, underground conduit and the re­ configuration of distribution lines and upgrades, as well as applicable permits, zoning changes, landscaping (if required by the City) and rights -of-way and easements. However, based on the preliminary information provided to the IID, the district can accommodate the power requirements of the project by extending a distribution backbone feeder (conduit and cable) from existing facilities to the project site, including the frontage of the parcel.

27. The district's ability to provide service is based on current conditions, which may be impacted by future development in the area. It is important to note that a detailed and final study will be developed once a customer project application and loading calculations are received. This detailed information will allow IID to perform an accurate assessment and provide a full report of any potential impacts and mitigation measures. The conditions of service could change as a result of the additional studies.

28. Underground infrastructure that includes trenching, conduits, pull boxes, switch boxes, transformers, commercial meter panels, and pads should be installed following IID approved plans and within the public utility easement or a dedicated easement if applicable. Physical field installation of underground infrastructures should be verified and approved by an IID inspector prior to cable installati on as per IID Developer's Guide (available for download at the district website
https://www.iid.com/home/showdocument?id=14229).

29. IID Regulations governing line extensions can be found at:

No. 2 (http://www.iid.com/home/showdocument?id=2540),
No. 13 (http://www.iid.com/home/showdocument?id=2553),
No.15 (http://www.iid.com/home/showdocument?id=2555),
No. 20 (http://www.iid.com/home/showdocument?id=2560) and No. 23 (https://www.iid.com/home/showdocument?id=17897).

30. For additional information regarding electrical service for the project, the applicant should be advised to contact the IID Energy - La Quinta Division Customer Operations, 81-600 Avenue 58 La Quinta, CA 92253, at (760) 398 -5841 and speak with the project development planner assigned to the area.

31. It is important to note that IID's policy is to extend its electrical facilities only to those projects that have obtained the approval of a city or county planning commission and such other governmental authority or decision-making body having jurisdiction over said developments.

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32. The applicant will be required to provide rights -of-way and easements for any power line extensions and overhead or underground infrastructure needed to serve the project.

33. Any construction or operation on IID property or within its existing and proposed right of way or easements including but not limited to: surface improvements such as proposed new streets, driveways, parking lots, landscape; and all water, sewer, storm water, or any ot her above ground or underground utilities; will require an encroachment permit, or encroachment agreement (depending on the circumstances). A copy of the IID encroachment permit application and instructions for its completion are available at https://www.iid.com/about-iid/department- directory/real-estate. The IID Real Estate Section should be contacted at (760) 339 - 9239 for additional information regarding encroachment permits or agreements.

34. Relocation of existing IID facilities to accommodate the project or to accommodate street widening improvements imposed by the City will be deemed customer­ driven and all costs, as well as securing of rights of way and easements for relocated facilities, shall be borne by the applicant.

35. Any new, relocated, modified or reconstructed IID facilities required for and by the project (which can include but is not limited to electrical utility substations, electrical transmission and distribution lines, etc.) need to be included as part of the land use permitting action's CEQA and/or NEPA documentation, environmental impact analysis and mitigation. Failure to do so will result in postponement of any construction and/or modification of ID facilities until such time as the environmental doc umentation is amended and environmental impacts are fully mitigated. Any mitigation necessary as a result of the construction, relocation and/or upgrade of IID facilities is the responsibility of the applicant/developer.

36. Dividing a project into two or mor e pieces and evaluating each piece in a separate environmental document (Piecemealing or Segmenting), rather than evaluating the whole of the project in one environmental document, is explicitly forbidden by CEQA, because dividing a project into a number o f pieces would allow a Lead Agency to minimize the apparent environmental impacts of a project by evaluating individual pieces separately, each of which may have a less -than-significant impact on the environment, but which together may result in a signific ant impact. Segmenting a project may also hinder developing comprehensive mitigation strategies. In general, if an activity or facility is necessary for the operation of a project, or necessary to achieve the project objectives, or a reasonably foreseeable consequence of approving the project, then it should be considered an integral project component that should be analyzed within the environmental analysis. The project description should include all project components, including those that will have to be approved by responsible agencies. The State CEQA Guidelines define a project under CEQA as "the whole of the action" that may result either directly or indirectly in physical changes to the environment. This broad definition is intended to provide the max imum protection of the environment. CEQA case law has established general principles on project

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1128 of 1168 segmentation for different project types. For a project requiring construction of offsite infrastructure, the offsite infrastructure must be included in the project description. San Joaquin Raptor/Wildlife Rescue Center v. County of Stanislaus (1994) 27 Cal.App. 4th 713.

37. Applicant should be advised that landscaping can be dangerous if items are planted too close to IID's electrical equipment. In the event of an outage, or equipment failure, it is vital that 110 personnel have immediate and safe access to its equipment to make the needed repairs. For public safety, and that of the electrical workers, it is important to adhere to standards that limit landscaping ar ound electrical facilities. IID landscaping guidelines are available at https://www.iid.com/energy/vegetation- management.

Indio Water Authority (IWA)

38. Office building will require its own domestic water meter with back flow assembly.

39. IWA requires a separate water meter with back flow assembly for landscape irrigation.

40. All new meter boxes shall be polymer with a 2” radio read port per IWA standards.

41. The applicant shall coordinate fire service with Indio Fire Department.

42. The applicant shall complete the Landscape Documentation Package in accordance with the Water Efficient Landscape Development Standards Ordinance No. 1684.

43. Developer shall pay all applicable fees; submit forms and agreements per IWA development procedural guidelines for final plan approval.

Coachella Valley Water District (CVWD)

44. This area is designated Zone X on Federal Flood Insurance rate maps, which are in effect at this time by the Federal Emergency Management Agency (FEMA). Flood protection measures for local drainage and regional flood shall comply with California Drainage Law and provide that storm wate r flows are received onto and discharged from this property in a manner that is reasonably compatible with predevelopment conditions.

45. The applicant shall require 100 percent on -site retention of the incremental increase of runoff from the 100-year storm.

46. The project lies within the East Whitewater River Sub basin Area of Benefit.

Groundwater production within the area of benefit is subject to a replenishment assessment in accordance with the State Water Code. Any entity producing more than 25 acre-feet of water during any year from one or more wells must equip the well(s)

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1129 of 1168 with a water-measuring device. A CVWD Water Production Metering Agreement is required to provide Coachella Valley Water District (CVWD) staff with the authority to regularly read and maintain this water-measuring device.

47. The Sustainable Groundwater Management Act (SGMA) is a law requiring that groundwater basins are managed to achieve sustainability. In accordance with the SGMA, CVWD submitted the Coachella Valley Water Management Pla n as an alternative to a Groundwater Sustainability Plan (Alternative Plan) for the Indio Sub basin. On July 17, 2019, the Department of Water Resources (DWR) sent a notification approving the Alternative Plan. The goal of the Alternative Plan is to reliably meet current and future water demands in a cost -effective and sustainable manner. This development lies within the Indio Sub basin and will contribute to the total water demand in the sub basin. The elements and actions described in the Alternative Plan shall be incorporated into the design, construction, and operation of this development to reduce its negative impact on the Indio Sub basin.

Valley Sanitary District

48. The Owner/Developer’s engineer should meet with VSD staff and discuss proposed sewer main connections and requirements prior to design.

49. Generally, the sewer main lateral and connection to the District’s sewer main are normally considered private and owned by the Owner(s) of the property. The Owner(s) are responsible for the maintenance and repair of this sewer main lateral.

50. The proposed project will comply with all VSD and other agency standards and requirements.

51. The proposed project will be subject to all terms and conditions of the State of California mandated pre-treatment regulations.

52. Improvements in the public right of way will require bonding by the Owner/Developer and installation by a licensed underground contractor.

53. The proposed project is subject to the local effluent requirements of Valley Sanitary District's (VSD) Resolution 2008-998; local discharge limits, and conformance with the Valley Sanitary District Sewer Use and Construction Ordinance 2010-118.

54. Prior to issuance of a Building Permit, the applicant shall provide VSD with both civil and architectural drawings of the b uilding and site improvements for review and approval.

55. Prior to issuance of a Building Permit, VSD will only issue sewer construction and connection permits after plan approval, the payment of all sewer related fees and the submittal of required documents that will be provided to the Owner/Developer at the time of plan approval.

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Public Works/Engineering
B. Prior to Issuance of a Grading Permit:

1. Applicant shall comply with National Pollution Discharge Elimination System (NPDES) requirements per state regulations, contact information is as follows:

California Regional Water Quality Control Board (RWQCB), Colorado River Basin Region,
73-720 Fred Waring Drive #100
Palm Desert, CA 92260
(760) 346-7491
www.waterboards.ca.gov/coloradoriver

2. Applicant shall submit PM10 (Dust Control) implementation plans for City approval.

3. Applicant shall submit a Water Quality Management Plan for City approval prior to the issuance of any grading permit.

4. Applicant shall submit for City approval the following items:
a. Precise grading plans – shall inc lude the street address for each lot and building foot print
b. Rough grading plans
c. Soils report
d. Hydrology Report

5. Retaining walls shall be required at elevation differences greater than 12 inches between lots throughout the project and in relation to adjacent boundary properties (if applicable) unless otherwise approved by the City Engineer.

6. Applicant shall use Riverside County Flood Control District standards and submit local on-site and regional hydrology, hydraulic stor m calculations for City review and approval.

7. Applicant shall provide on -site storm water retention basin(s) or system(s) designed to the satisfaction of the City Engineer. Each retention basin shall include a sufficient number of underground vert ical drywells, Maxwell Plus or equivalent, designed to eliminate standing wate r in the basin. The retention basin(s) or system(s) shall be sized to retain all post-development storm water runoff within the limits of the project based on a 1 00-year storm event of 24 -hour duration and shall completely drain/percolate any storm event within 72 hours. All upstream runoff from adjacent properties that has historically been directed onto the proposed project may be considered to pass through the project with the exception of historical retention that occurred on-site. The retention basin shall be designed, per Standard Plan No. 130. with a maximum depth of 5 feet (with a one foot minimum freeboard) and maximu m side slopes of 3:1 and shall not be used for purposes other than for the coll ection of storm water, nuisance water and well blow-off water.

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8. The design of the project lot pads, str eet improvements and the storm drainage improvements shall be design coordinated with all adjacent projects or properties to the satisfaction of the City Engineer.

9. All grading and pad elevations will be subjec t to approval of the Community Development Director and the City Engin eer based on grading plans and additional information to be submitted during plan check.

C. Prior to Issuance of a Certificate of Occupancy:

1. Applicant shall:
a. Dispose of all concrete and asphalt removals from the proposed project to an approved recyclable site.
b. Applicant shall provide City of Indio Public Works Department with a copy of receipt showing tonnage for the disposal of recyclable concrete and asphalt. c. Dispose of all material removals from the proposed project to an approved disposal site.

2. Applicant shall submit landscape and irrigation plans for City approval.

3. Applicant shall submit for City approval the following items:
a. Street improvement plans
b. Streetlight plans

4. Applicant shall construct full off-site street improvements on the following street:
a. Avenue 45, south half street improvements along the property frontage. b. Golf Center Parkway , west half street improvements along the property frontage.

5. The improvements shall include construction of, sidewalk, streetlights, and storm drain system (catch basins, storm drain pipe, etc.), along the property frontage.

6. All off-site street improvements including energizing of street lights and installation of irrigation and landscaping along:
a. Avenue 45 and Golf Center Parkway shall be constructed and accepted by the City prior to issuance of a temporary or permanent certificate of occupancy.

7. A lot merger combining lots known as Assessor’s Parcel Numbers (APN) 611-340- 151, 611-340-052, and 611-340-053 shall be recorded. Applicant shall submit to the Community Development Department for review and approval a Lot Merger application with an application fee and all required materials. After approval of the merger by the City, a Notice of Merger shall be filed and recorded with the Riverside County Recorder.

8. Applicant shall obtain an encroachment permi t prior to starting any street improvements within public right-of-way.

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9. Applicant shall remove existing driveway along Avenue 45, and replace it per City of Indio Standard Plan No. 130 to comply with American with Disabilities Act (ADA) requirements.

10. The proposed project shall comply with American with Disabilities Act ( ADA) requirements.

11. All improvements shall comply with City standards, requirements and policies.

Applicant is required to construct all transition and missing links between existing and proposed improvements.

12. Applicant shall crack seal existing pavement along the property frontage of Golf Center Parkway and apply a Type II rubberized slurry seal along with the re- striping of the road.

13. Applicant shall remove and replace any damaged or broken asphalt concrete pavement, concrete curb/gutter and sidewalk on Avenue 45 and Golf Center Parkway along the project’s property frontage

Indio Water Authority (IWA)

14. Prior to water service activation, all water infrastructure in the final approved plans must be constructed and must have a Council approved Water Agreement and Easement if applicable.

15. Prior to the issuance of a landscape water meter, the applicant must have a complete set of landscape plans signed and approved by the IWA.

D. During Construction

1. Manholes and cleanouts located in paved areas shall be raised to grade and collars and/or traffic rated boxes provided per Valley Sanitary District standards.

SECTION 5. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED, and ADOPTED this 15th day of June 2022, by the following vote, to wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

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WAYMOND FERMON, MAYOR
ATTEST:

CYNTHIA HERNANDEZ, CMC

CITY CLERK

APPROVED AS TO FORM:

ROXANNE DIAZ, CITY ATTORNEY

ATTEST:

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RESOLUTION NO. 2024

RESOLUTION OF THE PLANNING CO MMISSION OF THE CITY OF

INDIO, CALIFORNIA, CONDITIONALLY APPROVING DESIGN REVIEW (DR 22-02-495) FOR THE DEVELOPMENT AND DESIGN OF A 65,0 00

SQUARE FOOT WAREHOUS E LOCATED AT THE SOUTHWEST
CORNER OF AVENUE 45 AND GOLF CENTER PARKWAY (ASSESSOR
PARCEL NUMBERS 611-340-051, 611-340-052 and 611- 340-053) AND

FINIDNG THE PROJECT IS CATEGORICALLY EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CLASS 32).

WHEREAS, on February 24, 2022, the Applicant, Boulders West, LLC (Matthew V. Johnson, Managing Member) submitted an application for Design Review for a proposed 65,000 square foot warehouse and associated parking, landscaping, circulation and architecture; and
WHEREAS, the Project Site is located on the southwest corner of Avenue 45 and Golf Center Parkway (Assessor Parcel Numbers 611-340-051, 611-340-052 and 611- 340-053); and,

WHEREAS, the Project is within the Industrial Park (IP) Zoning District regulated by the Section 159.320 of the Indio Municipal Code, and has a General Plan 2040 land use designation of Workplace and Employment District (WEP); and,

WHEREAS, notice of a public hearing was conducted in accordance with Section 159.905 of the Indio Municipal Code inclusive of the publication on April 29, 2022, of a legal public hearing notice in the Desert Sun the City’s newspaper of record, and mailing of a public hearing notice to a certified list of property owners within 300 feet of the subject properties on April 27, 2022; and,

WHEREAS, on May 11, 2022, the Planning Commission held a duly noticed public hearing to consider the application for the Design Review during which evidence, both written and oral, including the staff report and supporting documents was presented at said hearing.

NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF INDIO, CALIFORNIA, HEREBY RESOLVES, FINDS AND DETERMINES AS FOLLOWS:

SECTION 1. The Planning Commission hereby specifically finds that all of the facts set forth in the recitals of this Resolution are true and correct.

SECTION 2. The proposed P roject would involve the construction of a 65,000 square foot warehouse within the Industrial Park (IP) zoning district and Workplace and Employment (WEP) land use designation.

DocuSign Envelope ID: 4E54CDE6-2856-41BD-8C44-1879F8E02705

AGENDA ITEM #9.5
Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1135 of 1168 The Planning Commission, based upon the evidence presented at the hearing, including the staff report, and based upon its independent review, finds that Design Review (DR 22-02-495) is categorically exempt from the requirements of the California Environmental Quality Act (“CEQA”) (Cal. Pub. Res. Code, § 21000 et seq.) and the State CEQA Guidelines (the “Guidelines”) (14 Cal. Code Regs. § 15000 et seq.). The Project qualifies under the Class 32 categorical exemption set forth in CEQA Guidelines Section 15332 because: (a) the proposed Project is consistent with the General Plan land use designation and all applicable General Plan policies, the zoning designation, and applicable regulations, (b) the proposed development occurs within the City’s limits on a project site of no more than five acres (3.84 acres) substantially surrounded by urban uses, (c) the proposed Project site has no value as habitat for endangered, rare or threatened species, (d) approval of the proposed Project would not result in any significant effects relating to traffic, noise, air quality, or water quality, and (e) the proposed Project site can be adequately served by all required utilities and public services.

SECTION 3. Based upon the evidence presented at the hearing, including the staff report, the Planning Commission hereby finds:

1. The Project site is located within the Industrial Park (IP) Zoning District. The purpose of the IP Zoning District is to permit more intensive types of industrial operations and facilities. The allowed uses under the IP Zone include but are not limited warehousing and storage. The location of the proposed warehouse is principally permitted in the IP Zone, and therefore is in accord with the objectives and purposes of Title XV of the Indio Municipal Code and Section 159.320 et seq.

2. The zoning regulations of the City are adopted to protect, promote and enhance the public health, safety and general welfare. The recommended conditions of approval require development in accordance with the approved site plan, elevations, floor plan and l andscape plan, which allows the City to protect and promote the public health, safety and general welfare by reviewing all proposals and regulating approval. All structures, landscaping, sidewalks, parking lot surfacing, and all other improvements within the Project will be required as a condition of approval to be continually maintained in good condition and repair including the replacement of all dead or dying landscape material with new landscape material. In addition, handicapped parking spaces are required for common parking areas, and an approved fire sprinkler system is required. The overall access and circulation of the subject site and building addition has been reviewed and approved by the City’s Consulting Traffic Engineer and Indio Fire Department. The Applicant will also be conditioned to provide a water system capable of delivering enough water for the Fire Department’s use in an emergency, in addition to Fire Department access, sprinklers, etc. These conditions and others protect the public health, safety and general welfare. Pursuant to Section 159.730 of the Indio Municipal Code, approved design reviews are valid for two (2) years and shall otherwise automatically expire (unless extended), which ensures timely DocuSign Envelope ID: 4E54CDE6-2856-41BD-8C44-1879F8E02705

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3. The Proposed use will comply with each of the applicable provisions of Title XV (Land Usage) in the Indio Municipal Code. P ursuant to Indio Municipal Cod e Section 159.321 (Q) is principally permitted within the Industrial Park (IP) zoning district. The Applicant will be required to submit a separate application for review and approval of a sign permit. The proposed signage will be required to comply with the approved signage requirements of the Indio Municipal Code. There are no approved variances or adjustments nor are they being considered as part of this analysis. Therefore, the P roposed Use conforms to this criterion and the approval of this Proposed Use will include conditions of approval to ensure compliance.

4. The WEP designation “provides an area for a wide variety of employment - generating activity, including office, industrial and light manufacturing, research and development and supportive commercial.” Under the WEP designation primary allowed land uses include light industrial, manufacturing, office, research and development, live/work. The proposed project is a speculative warehouse building with designated office space. This is an allowable primary use under the WEP land use designation. In addition, the General Plan also encourages Flex Spaces (LU-10.3) “to expand the number of flex facilities on land designated as Workplace and Employment to accommodate technology, light manufacturing, and service tenants and diversify the City’s economic base.” The proposed warehouse is speculative; however, the design of the facility would allow multiple users and flexibility for tenants. Therefore, the proposed design and layout of the project site will support the Workplace and Employment District (WEP) General Plan designation and the proposed use complies with the goals, objectives, and policies of the General Plan 2040.

SECTION 4. Based on the foregoing, the Planning Commission hereby approves Design Review (DR 22 -02-495) subject to the following conditions of approval. The Applicant shall demonstrate compliance to ALL conditions of approval, listed in Resolution. Failure to demonstrate compliance to these conditions of approval may result in the delay of the Proposed Use or the rescinding of the City of Indio’s project approval.

Where the term “Applicant” is used in any condition of approval, this term shall apply also to the Property owner, any developer, or any successor in interest of the Applicant. It is the Applicant’s or Applicant’s successor in interest responsibility to fully comply with the conditions of approval, unless subsequently modified in accordance with the City’s required processes and procedures. The relevant City department or division or outside agency is noted in parentheses in the event that there are questions or additional information needed regarding a condition of approval.

A. General Conditions of Approval:

These conditions, as applicable and when necessary, shall be complied with no later than the issuance of Certificate of Occupancy, unless otherwise specified:

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1. Where the term “Applicant” is used herein, this term shall apply also to the Property owner, any developer, or any successor in interest of the Applicant. (Planning Division)

2. The Design Review (DR 22-02-495) approval granted by this Resolution shall be valid for twenty-four (24) months from Planning Commission the date of approval; unless prior to the expiration of the two years, a building permit is issued and construction is commenced and diligently pursued toward completion on the S ite which was the subject of the application, or a certificate of occupancy is issued; otherwise, this permit will automatically expire unless an extension of time has been granted as specified in Section 159.760 of the City of I ndio Municipal Code. Prior to the expiration of the permit, the Applicant may request a 12-month time extension by filing an application with the Planning Commission. (Planning Division)

3. In the event of any court action or proceeding challenging the approv al of this resolution or otherwise challenging the approval of Design Review ( DR 22-02-495), the Applicant shall defend, at its own expense, the action or proceeding. In addition, the Applicant shall reimburse the City for the City's cost of defending any such court action or proceeding. The Applicant shall also pay any award of costs, expenses and fees that the court having jurisdiction over such challenge makes in favor of any challenger and against the City. The Applicant shall cooperate with the City i n any such defense as the City may reasonably request and may not resolve such challenge without the agreement of the City. In the event the Applicant fails or refuses to reimburse the City for its cost to defend any challenge, the City shall have the right, among other remedies, to revoke this approval. In order to ensure compliance with this condition, within twenty (20) days after notification by the City of the filing of any claim, action or proceeding to attack, set aside, void or annul the approval of this Design Review, the Applicant shall deposit with the City cash or other security in the amount of ten thousand dollars ($10,000), satisfactory in form to the City Attorney, guaranteeing indemnification or reimbursement to the City of all costs related to any action triggering the obligations of this condition. If the City is required to draw on that cash or security to indemnify or reimburse itself for such costs, the Applicant shall restore the deposit to its original amount within thirty (30) calendar days after notice from the City. Additionally, if at any time the City Attorney determines that an additional deposit is necessary to secure the obligations of this section, the Applicant shall provide such additional security within thirty (30) calendar days of notice from the City Attorney. The City shall promptly notify the Applicant of any claim, action or proceeding within the scope of this condition. (Planning Division)

4. The Applicant shall cause to be recorded against the subject site these and all related conditions of approval with the Riverside County Recorder. (Planning Division)

5. The Applicant shall, within 30 days after approval of this Resolution, submit to the Community Development Director its written consent to all of the conditions of approval contained in this Resolution without amendment. (Planning Division) DocuSign Envelope ID: 4E54CDE6-2856-41BD-8C44-1879F8E02705

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6. The Applicant shall deliver to the Community Development Department a cashier’s check, money order or other acceptable form of payment made payable to the Riverside County Clerk in the amount of $50.00 to cover the County administrative fee to enable the City of Indio to file the CEQA Notice of Exemption pursuant to the California Code of Regulations Section 15062. (Planning Division)

7. All Conditions of Approval shall be provided on a full-size sheet as part of the construction plan set. All notes and specifications as shown on the plans shall be considered Conditions of Approval. If there is a conflict between the approved plans and the Conditions of Approval, the Conditions of Approval shall prevail. (Planning Division)

8. The Applicant shall ensure that all development shall occur substantially as shown on the site plan, floor plans, elevations, and landscape plans on file with the Community Development
Director. (Planning Division)

9. The Applicant shall submit a sign application and fee to the Planning Division for review and approval prior to the issuance of a sign permit. (Planning Division)

10. Trash/recycling enclosures shall be of adequate size to contain and view obscure containers and materials therein. (Planning Division)

11. Trash/recycling enclosures shall be constructed of decorative block or concrete and shall match the surrounding buildings in color and texture. Solid metal gates painted to match the enclosure shall be required. All gates shall be post mounted. (Planning Division)

12. The location of trash/recycling enclosures shall not conflict with circulation or parking conditions on site. A condition shall not be created where a parked vehicle will obstruct access to an enclosure nor where a disposal truck will obstruct parked vehicles. (Planning Division)

13. The Applicant shall provide a lighting plan to the Community Development Department (Planning Services) and the Police Department for review and approval. Any outdoor lighting shall be hooded or shielded to prevent either spillage of lumens or reflections into the sky pursuant to the Indio Municipal Code. (Planning Services)

14. The Applicant shall comply with the landscaping requirements outlined in Section 159.666 of the Indio Municipal Code. (Planning Division)

15. The driveway throat depth to the site drive aisle shall be a minimum of 50’ from the curb face on Avenue 45. (Engineering Services)

16. A “No Pedestrian Crossing – Use Crosswalk” sign shall be installed where the project walkway joins the sidewalk on Golf Center Parkway. (Engineering Services) Fire Prevention Office
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17. Fire Hydrants and Fire Flow : Provide one copy of the water system plans to show there exist fire hydrant(s) capable of delivering the minimum fire flow, per CFC Appendix B Table B105.1, within 400 feet to all portions around the proposed structure. Minimum fire hydrant location and spacing shall comply with the CFC and NFPA 14.

18. Fire Department Access: Provide a site plan for fire apparatus access roads and signage. Access roads shall be provided to within 150 feet to all portions of all buildings and shall have an unobstructed width of not less than 24 feet. The construction of the access roads shall be all weather and capable of sustaining 75,000 lbs. over two axels for commercial developments and residential tract developments (CFC 503.1.1. and 503.2.1 as amended by the City of Indio).

19. Traffic Calming Devices: Requests for installation of traffic calming designs/devices on fire apparatus access roads are prohibited unless submitted and approved by the Office of the Fire Marshal (CFC 503.4.1)

20. Construction Permits Fire Department Review : Submittal of construction plans to the Office of the Fire Marshal for development, construction, installation and operational use permitting will be required. Final fire and life safety conditions will be addressed when the Office of the Fire Marshal reviews these plans. These conditions will be based on occupancy, use, California Building Code, California Fire Code, and related codes, which are in effect at the time of building plan submittal.

21. Phased Construction Access: If construction is phased, each phase shall provide approved access for fire protection prior to any construction. (CFC 503.1)

22. Fire Sprinkler Systems: All structures 3,600 square feet or larger, regardless of occupancy type, will be required to install a NFPA 13 fire sprinkler system (CFC 903.2 and NFPA 13) as amended by the City of Indio.

For non- combustible canopies 3600 square feet or larger, an Alternative Methods and Materials application can be submitted to the Office of the Fire Marshal for review to eliminate the fire sprinkler requirement.

23. Fire Alarm and Detection System : A water flow monitoring system and/or a fire alarm system will be required in all buildings (CFC 903.4, CFC 907.2, and NFPA 72)

24. Knox Box and Gate Access: Buildings shall be provided with a Knox Box. The Knox Box shall be installed in an accessible location approved by the Office of the Fire Marshal, six feet from grade. All electronically operated gates shall be provided with Knox key switches and automatic sensors for access. The minimum gate width is 14 feet (CFC 506.1)

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25. Commercial Addressing: All commercial buildings shall display street numbers in a prominent location on the address side and additional locations as required.

Commercial buildings less than 25 feet in height require 12 inch numerals, buildings over 25 feet in height require 24 inch numerals. (CFC 505.1 and Riverside County Fire Department Standard #07-01)

Imperial Irrigation District

26. IID will not begin any studies, engineering or estimate costs to provide electrical service to project, until the applicant submits a customer project application (available for download at http://www.iid.com/home/showdocument?id=12923 ) and detailed
loading information, panel sizes, project schedule and estimated in - s ervice date.

Applicant shall bear all costs associated with providing electrical service to the project, including but not limited to the construction of a distribution backbone feeder and line extensions, underground conduit and the re
- c
onfiguration of distribution lines and
upgrades, as well as applicable permits, zoning changes, landscaping (if required by the City) and rights -of-way and easements. However, based on the preliminary information provided to the IID, the district can accommodate the power requirements of the project by extending a distribution backbone feeder (conduit and cable) from existing facilities to the project site, including the frontage of the parcel.

27. The district's ability to provide service is based on current conditions, which may be impacted by future development in the area. It is important to note that a detailed and final study will be developed once a customer project application and loading calculations are received. This detailed information will allow IID to perform an accurate assessment and provide a full report of any potential impacts and mitigation measures. The conditions of service could change as a result of the additional studies.

28. Underground infrastructure that includes trenching, conduits, pull boxes, switch boxes, transformers, commercial meter panels, and pads should be installed following IID approved plans and within the public utility easement or a dedicated easement if applicable. Physical field installation of underground infrastructures should be verified and approved by an IID inspector prior to cable installation as per IID Developer's Guide (available for download at the district website
https://www.iid.com/home/showdocument?id=14229
).

29. IID Regulations governing line extensions can be found at:

No. 2 (http://www.iid.com/home/showdocument?id=2540
),
No. 13 (http://www.iid.com/home/showdocument?id=2553),
No.15 (http://www.iid.com/home/showdocument?id=2555),
No. 20 (http://www.iid.com/home/showdocument?id=2560) and No. 23 ( https://www.iid.com/home/showdocument?id=17897).

30. For additional information regarding electrical service for the project, the applicant should be advised to contact the IID Energy - La Quinta Division Customer DocuSign Envelope ID: 4E54CDE6-2856-41BD-8C44-1879F8E02705

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31. It is important to note that IID's policy is to extend its electrical facilities only to those projects that have obtained the approval of a city or county planning commission and such other governmental authority or decision-making body having jurisdiction over said developments.

32. The applicant will be required to provide rights -of-way and easements for any power line extensions and overhead or underground infrastructure needed to serve the project.

33. Any construction or operation on IID property or within its existing and proposed right of way or easements including but not limited to: surface improvements such as proposed new streets, driveways, parking lots, landscape; and all water, sewer, storm water, or any other above ground or underground utilities; will require an encroachment permit, or encroachment agreement (depending on the circumstances). A copy of the IID encroachment permit application and instructions for its completion are available at
https://www.iid.com/about-iid/department-
directory/real-estate. T he IID Real Estate Section should be contacted at (760) 339- 9239 for additional information regarding encroachment permits or agreements.

34. R
elocation of existing IID facilities to accommodate the project or to accommodate street widening improvements imposed by the City will be deemed customer - dr iven
and all costs, as well as securing of rights of way and easements for relocated facilities, shall be borne by the applicant.

35. A
ny new, relocated, modified or reconstructed IID facilities required for and by the project (which can include but is not limited to electrical utility substations, electrical transmission and distribution lines, etc.) need to be included as part of the land use permitting action's CEQA and/or NEPA documentation, environmental impact analysis and mitigation. Failure to do so will result in postponement of any construction and/or modification of ID facilities until such time as the environmental documentation is amended and environmental impacts are fully mitigated. Any mitigation necessary as a result of the construction, relocation and/or upgrade of IID facilities is the responsibility of the applicant/developer.

36. Dividing a project into two or more pieces and evaluating each piece in a separate environmental document (Piecemealing or Segmenting), rather than evaluating the whole of the project in one environmental document, is explicitly forbidden by CEQA, because dividing a project into a number of pieces would allow a Lead Agency to minimize the apparent environmental impacts of a project by evaluating individual pieces separately, each of which may have a less -than-significant impact on the environment, but which together may result in a significant impact. Segmenting a project may also hinder developing comprehensive mitigation strategies. In general, if an activity or facility is necessary for the operation of a project, or necessary to achieve DocuSign Envelope ID: 4E54CDE6-2856-41BD-8C44-1879F8E02705

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1142 of 1168 the project objectives, or a reasonably foreseeable consequence of approving the project, then it should be considered an integral project component that should be analyzed within the environmental analysis. The project description should include all project components, including those that will have to be approved by responsible agencies. The State CEQA Guidelines define a project under CEQA as "the whole of the action" that may result either directly or indirectly in physical changes to the environment. This broad definition is intended to provide the max imum protection of the environment. CEQA case law has established general principles on project segmentation for different project types. For a project requiring construction of offsite infrastructure, the offsite infrastructure must be included in the project description. San Joaquin Raptor/Wildlife Rescue Center v. County of Stanislaus (1994) 27 Cal.App. 4th 713.

37. Applicant should be advised that landscaping can be dangerous if items are planted too close to IID's electrical equipment. In the event of an outage, or equipment failure, it is vital that 110 personnel have immediate and safe access to its equipment to make the needed repairs. For public safety, and that of the electrical workers, it is important to adhere to standards that limit landscaping ar ound electrical facilities. IID landscaping guidelines are available at
https://www.iid.com/energy/vegetation-
management.

Indio Water Authority (IWA)

38. Office building will require its own domestic water meter with back flow assembly.

39. IWA requires a separate water meter with back flow assembly for landscape irrigation.

40. All new meter boxes shall be polymer with a 2” radio read port per IWA standards.

41. The applicant shall coordinate fire service with Indio Fire Department.

42. The applicant shall complete the Landscape Documentation Package in accordance with the Water Efficient Landscape Development Standards Ordinance No. 1684.

43. Developer shall pay all applicable fees; submit forms and agreements per IWA development procedural guidelines for final plan approval.

Coachella Valley Water District (CVWD)

44. This area is designated Zone X on Federal Flood Insurance rate maps, which are in effect at this time by the Federal Emergency Management Agency (FEMA). Flood protection measures for local drainage and regional flood shall comply with California Drainage Law and provide that storm water flows are received onto and discharged from this property in a manner that is reasonably compatible with predevelopment conditions.

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45. The applicant shall require 100 percent on- site retention of the incremental increase of runoff from the 100-year storm.

46. The project lies within the East Whitewater River Sub basin Area of Benefit.

Groundwater production within the area of benefit is subject to a replenishment assessment in accordance with the State Water Code. Any entity producing more than 25 acre-feet of water during any year from one or more wells must equip the well(s) with a water-measuring device. A CVWD Water Production Metering Agreement is required to provide Coachella Valley Water District (CVWD) staff with the authority to regularly read and maintain this water-measuring device.

47. The Sustainable Groundwater Management Act (SGMA) is a law requiring that groundwater basins are managed to achieve sustainability. In accordance with the SGMA, CVWD submitted the Coachella Valley Water Management Plan as an alternative to a Groundwater Sustainability Plan (Alternative Plan) for the Indio Sub basin. On July 17, 2019, the Department of Water Resources (DWR) sent a notification approving the Alternative Plan. The goal of the Alternative Plan is to reliably meet current and future water demands in a cost -effective and sustainable manner. This development lies within the Indio Sub basin and will contribute to the total water demand in the sub basin. The elements and actions described in the Alternative Plan shall be incorporated into the design, construction, and operation of this development to reduce its negative impact on the Indio Sub basin.

Valley Sanitary District

48. The Owner/Developer’s engineer should meet with VSD staff and discuss proposed sewer main connections and requirements prior to design.

49. Generally, the sewer main lateral and connection to the District’s sewer main are normally considered private and owned by the Owner(s) of the property. The Owner(s) are responsible for the maintenance and repair of this sewer main lateral.

50. The proposed project will comply with all VSD and other agency standards and requirements.

51. The proposed project will be subject to all terms and conditions of the State of California mandated pre-treatment regulations.

52. Improvements in the public right of way will require bonding by the Owner/Developer and installation by a licensed underground contractor.

53. The proposed project is subject to the local effluent requirements of Valley Sanitary District's (VSD) Resolution 2008-998; local discharge limits, and conformance with the Valley Sanitary District Sewer Use and Construction Ordinance 2010-118.

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54. Prior to issuance of a Building Permit, the applicant shall provide VSD with both civil and architectural drawings of the building and site improvements for review and approval.

55. Prior to issuance of a Building Permit, VSD will only issue sewer construction and connection permits after plan approval, the payment of all sewer related fees and the submittal of required documents that will be provided to the Owner/Developer at the time of plan approval.

Public Works/Engineering
B. Prior to Issuance of a Grading Permit:

1. Applicant shall comply with National Pollution Discharge Elimination System (NPDES) requirements per state regulations, contact information is as follows:

California Regional Water Quality Control Board (RWQCB), Colorado River Basin Region,
73-720 Fred Waring Drive #100
Palm Desert, CA 92260
(760) 346-7491
www.waterboards.ca.gov/coloradoriver

2. Applicant shall submit PM10 (Dust Control) implementation plans for City approval.

3. Applicant shall submit a Water Quality Management Plan for City approval prior to the issuance of any grading permit.

4. Applicant shall submit for City approval the following items:
a. Precise grading plans – shall inc lude the street address for e ach lot and building foot print
b. Rough grading plans
c. Soils report
d. Hydrology Report

5. Retaining walls shall be required at elevation differences greater than 12 inches between lots throughout the project and in relation to adjacent boundary properties (if applicable) unless otherwise approved by the City Engineer.

6. Applicant shall use Riverside County Flood Control District standards and submit local on-site and regional hydrology, hydraulic stor m calculations for City review and approval.

7. Applicant shall provide on- site storm water retention basin(s) or system(s) designed to the satisfaction of the City Engineer. Each retention basin shall include a sufficient number of underground vert ical drywells, Maxwell Plus or equivalent, designed to eliminate standing water in the basin. The retention basin(s) or system(s) shall be sized to retain all post-development storm water runoff within the limits of the project DocuSign Envelope ID: 4E54CDE6-2856-41BD-8C44-1879F8E02705

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Resolution No. 10293 - Consideration of the Appeal of May 11, 2022 Plann... Page 1145 of 1168 based on a 100 -year storm event of 24 -hour duration and shall completely drain/percolate any storm event within 72 hours. All upstream runoff from adjacent properties that has historically been directed onto the proposed project may be considered to pass through the project with the exception of historical retention that occurred on-site. The retention basin shall be designed, per Standard Plan No. 130. with a maximum depth of 5 feet (with a one foot minimum freeboard) and maximu m side slopes of 3:1 and shall not be used for purposes other than for the coll ection of storm water, nuisance water and well blow-off water.

8. The design of the project lot pads, str eet improvements and the storm drainage improvements shall be design coordinated with all adjacent projects or properties to the satisfaction of the City Engineer.

9. All grading and pad elevations will be subject to approval of the Community Development Director and the City Engineer based on grading plans and additional information to be submitted during plan check.

C. Prior to Issuance of a Certificate of Occupancy:

1. Applicant shall:
a. Dispose of all concrete and asphalt removals from the proposed project to an approved recyclable site.
b. Applicant shall provide City of Indio Public Works Department with a copy of receipt showing tonnage for the disposal of recyclable concrete and asphalt. c. Dispose of all material removals from the proposed project to an approved disposal site.

2. Applicant shall submit landscape and irrigation plans for City approval.

3. Applicant shall submit for City approval the following items:
a. Street improvement plans
b. Streetlight plans

4. Applicant shall construct full off-site street improvements on the following street:
a. Avenue 45, south half street improvements along the property frontage. b. Golf Center Parkway, west half street improvements along the property frontage.

5. The improvements shall include construction of, sidewalk, streetlights, and storm drain system (catch basins, storm drain pipe, etc.), along the property frontage.

6. All off-site street improvements including energizing of street lights and installation of irrigation and landscaping along:
a. Avenue 45 and Golf Center Parkway shall be constructed and accepted by the City prior to issuance of a temporary or permanent certificate of occupancy.

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7. A lot merger combining lots known as Assessor’s Parcel Numbers (APN) 611-340- 151, 611-340-052, and 611-340-053 shall be recorded. Applicant shall submit to the Community Development Department for review and approval a Lot Merger application with an application fee and all required materials. After approval of the merger by the City, a Notice of Merger shall be filed and recorded with the Riverside County Recorder.

8. Applicant shall obtain an encroachment permit prior to starting any street improvements within public right-of-way.

9. Applicant shall remove existing driveway along Avenue 45, and replace it per City of Indio Standard Plan No. 130 to comply with American with Disabilities Act (ADA) requirements.

10. The proposed project shall comply with American with Disabilities Act ( ADA) requirements.

11. All improvements shall comply with City standards, requirements and policies.

Applicant is required to construct all transition and missing links between existing and proposed improvements.

12. Applicant shall crack seal existing pavement along the property frontage of Golf Center Parkway and apply a Type II rubberized slurry seal along with the re- striping of the road.

13. Applicant shall remove and replace any damaged or broken asphalt concrete pavement, concrete curb/gutter and sidewalk on Avenue 45 and Golf Center Parkway along the project’s property frontage

Indio Water Authority (IWA)

14. Prior to water service activation, all water infrastructure in the final approved plans must be constructed and must have a Council approved Water Agreement and Easement if applicable.

15. Prior to the issuance of a landscape water meter, the applicant must have a complete set of landscape plans signed and approved by the IWA.

D. During Construction

1. Manholes and cleanouts located in paved areas shall be raised to grade and collars and/or traffic rated boxes provided per Valley Sanitary District standards.

SECTION 5. The Planning Commission Secretary shall certify to the passage, approval, and adoption of this Resolution.

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