Indio City Council
March 15, 2023

AGENDA ITEM #10.8
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City of Indio 2022 General Plan Annual Progress Report

 Provide lectures,
seminars, and
training on green
building based on
guide and training
material
emphasizing
desert conditions
and opportunities.

56 Residential transfer of
title energy
disclosures. Establish
an energy disclosure
program to be
performed prior to
sale or other transfer
of title. Disclosures
should provide
prospective owners
with recommendations
for retrofit measures
to be given to the
buyer prior to transfer
of title.

High Planning,
Sustainability
Coordinator
Short Pending
57 Low-income
weatherization
assistance program.

Partner with Imperial
Irrigation District and
SoCal Gas to
aggressively promote
existing programs that
provide financial
assistance to low-
income households
for weatherization
improvements and
heating, ventilation,
and air conditioning
(HVAC) tune-ups.

High Sustainability
Coordinator
Ongoing Ongoing

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City of Indio 2022 General Plan Annual Progress Report

# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

58 Solar financing.

Formalize and
implement a protocol
to promote installation
of solar panels by
continuing to support
Indio’s Ygrene and
HERO Program and
by distributing
information on actual
savings achieved by
PV systems.

High Sustainability
Coordinator
Short Pending
59 Landscape and water
conservation
ordinance. Adopt the
Coachella Valley
Model Water Efficient
Landscape
Ordinance.

High Planning,
Public Works
Short Complete
60 Greywater Ordinance.

Study and adopt an
ordinance allowing
greywater systems
that redirect water
from washbasins,
showers, and tubs.

Planning,
Public Works
Pending
61 Zoning and
implementation
ordinances. Regularly
review and update
zoning and building
codes to enable
innovative
sustainability
measures, including
implementation of the
following:
 Permit approval
streaming for
renewable energy
or energy
upgrades
High Planning,
Public Works,
Sustainability
Coordinator
Ongoing Complete

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 Greywater capture
and reuse systems
 Wind generation
on residential and
commercial
buildings Electric
vehicle
infrastructure
requirements
 Green building
performance
standards, such as
those to achieve
Net Zero goals
 Dark Sky
Ordinance

62 Heritage trees.

Identify heritage trees
that should be
preserved. Trees on
this list shall only be
removed when a
public interest served
by removal outweighs
the interest in
preservation and
heritage status.

Medium Community
Services,
Planning
Ongoing Pending
63 Agricultural study.

Develop a study of
sound agricultural
practices that
addresses surface
and groundwater
contamination,
particulate emissions
from agricultural
operations, minimal
soil erosion, and the
buildup of salts in
soils. Based on the
study, create
brochures available to
the agricultural
community.

Low Community
Services
Short Pending

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City of Indio 2022 General Plan Annual Progress Report

# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

64 Historic resources
program. Establish a
program and identify
potential funding
sources to facilitate
the preservation and
maintenance of
identified historic
resources. Ensure
that any proposed
changes to such
landmarks are
appropriate to the
historic character of
the original structure.

Medium Planning Short Pending

65 Historic resources
design guidelines.

Prepare and adopt
design guidelines that
contribute to the
creation of a
distinctive character
for each subarea
based on important
historic/cultural
resources within each
subarea.

Medium Planning Short Pending

Infrastructure and Public Facilities Implementation Programs

# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

66 Plan consistency.

Following adoption of
the General Plan,
review the existing
utility master plans
and make changes to
ensure consistency
with the General Plan.

High Public Works Short Complete
67 City ordinances.

Update the existing
City code and
High Public Works,
Planning
Short Underway

AGENDA ITEM #10.8
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City of Indio 2022 General Plan Annual Progress Report

ordinances to reflect
current requirements
and GP policies for
water, sewer, and
storm drainage
requirements and
policies. This should
include low impact
development practices
which improve water
quality and promote
groundwater
recharge, increase on-
site infiltration.

68 Groundwater
management plan.

Complete the
Groundwater
Management Plan, as
required by State law.

Oversee the
completion of the Plan
and provide materials
and resources as
needed.

Medium Public Works Short Complete
# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

69 Solid waste diversion.

Establish a waste
diversion plan with in
a minimum diversion
rate of 75% of solid
waste generated from
landfills.

High Public Works Short Underway
70 Multifamily recycling.

Establish a protocol to
expand outreach and
technical assistance
to multifamily
buildings to increase
recycling in
accordance with
AB341.

Medium Public Works Short Pending

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City of Indio 2022 General Plan Annual Progress Report

71 Green purchasing.

Implement a “green
purchasing” program
that minimize impacts
to the environment
from production to
disposal. The program
should address
product stewardship
and producer
responsibility.

Medium City Manger Short Pending
Food share programs.

In conjunction with
community partners
and neighborhood
organizations, explore
and pilot food share
programs reduce food
waste.

Low Planning,
Public Works
Medium Pending

Event waste diversion.

Require recycling and
food waste diversion
at special events,
including City-hosted
events.

High Public Works Short Pending
# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

72 Neighborhood clean-
up program. In
coordination with the
Housing and
Development Services
Department, host
community and
neighborhood clean-
up program, tree
planting, and other
beautification
programs.

Low Planning,
Public Works
Short Ongoing
73 Development impact
fees. Adopt nexus-
based impact fees
that mitigate the cost
of providing
High Planning,
Public Works
Ongoing Complete

AGENDA ITEM #10.8
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City of Indio 2022 General Plan Annual Progress Report

infrastructure and
public facilities to
serve new
development. Address
infrastructure
improvements that are
necessitated by new
development –
including water,
sewer, stormwater,
and utilities. Seek
additional funding
mechanisms as
necessary.

74 Sewer and stormwater
user fees. Update
existing user fees for
sewer and stormwater
to fund needed
system upgrades and,
to the extent feasible,
allow for waste water
recycling and
stormwater capture for
beneficial use.

Medium Planning Medium Complete

Safety Implementation Programs

# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

75 Plan consistency.

Following adoption of
the General Plan,
review the existing
hazard mitigation and
emergency operations
plans and make
changes to ensure
consistency with the
General Plan.

High Emergency
Services
Coordinator
Ongoing Pending
76 California building
codes. As new
versions of the
California Building
Standards Code (CCR
Title 24, published
Medium Building &
Safety, Public
Works
Ongoing Complete

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City of Indio 2022 General Plan Annual Progress Report

triennially) are
released, adopt and
enforce the most
recent codes.

Specifically, to
minimize damage
from earthquakes and
other geologic activity,
implement the most
recent State and
seismic requirements
for structural design of
new development and
redevelopment.

# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

77 Develop city
standards and
guidelines. The City
shall develop
standards and
guidelines and require
their use in new
construction to
provide the greatest
possible protection for
human life and
property in areas
where there is a high
risk of seismic or
geologic hazard
occurrence. This
could include
requirements for
geotechnical reports
and seismic safety
plans and setbacks for
new construction,
among others.

Medium Planning Short Complete
78 Maintain GIS
database. Maintain
the City’s Geographic
Information System
(GIS) database to
assist hazard
planning, including:

High Planning,
Public Works
Ongoing Pending

AGENDA ITEM #10.8
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City of Indio 2022 General Plan Annual Progress Report

 Critical facilities
 Vulnerable
populations
 Infrastructure

79 Critical facility
insurance coverage.

Document current City
insurance coverage
on critical City
facilities. Collect all
costs associated with
mitigation from a
disaster and operating
costs as required by
Federal funding
eligibility.

High Emergency
Services
Coordinator`
Short Ongoing

# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

80 Residential disaster
response plans.

Establish a program
that requires all
residential
associations over 100
homes to establish a
disaster response
plan and practice the
plan regularly.

Establish a disaster
response drill/exercise
schedule requirement
and practice annually.

Low Ongoing

Low Emergency
Services
Coordinator,
Planning
Ongoing Ongoing
81 Emergency
management.

Establish an
ordinance for anti-
price gouging, on call
debris management
contractors, and pre-
identified mass care
shelter locations.

Low Emergency
Services
Coordinator
Short Pending

AGENDA ITEM #10.8
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City of Indio 2022 General Plan Annual Progress Report

82 Community
Emergency Response
Team (CERT
newsletter. Regularly
publish a CERT
newsletter.

Low Emergency
Services
Coordinator

Short Pending
83 Reduce fire hazards.

Amend the Municipal
Code to include weed
abatement/brush
management
regulations to reduce
fire hazards and
ensure adequate
coordination between
planning and fire
issues.

Medium Planning,
Emergency
Services
Coordinator
Short Pending
# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

84 Hazard impact
assessment. Hire a
consultant to conduct
a Hazards Impact
Assessment for City of
Indio that will identify
losses to revenue,
and recovery time
objectives for
businesses and the
City.

Medium Emergency
Services
Coordinator
Medium Pending
85 Disaster mitigation
funding. Consider
applying for Mitigation
grant funding
opportunities before a
disaster (Stafford Act
Section 404) and
prepare as much as
possible for mitigation
projects after a
disaster (Stafford Act
Section 406).

Typically private
property is not eligible,
but there may be
other funding
Medium Emergency
Services
Coordinator
Ongoing Ongoing

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City of Indio 2022 General Plan Annual Progress Report

opportunities for
HOAs, etc.

86 Hazardous mitigation
training course.

Implement an 8-hour
hazardous mitigation
basic training course
requirement for new
hires of the City of
Indio.

Low Emergency
Services
Coordinator
Short Pending
87 Climate vulnerability
assessment.

Complete a climate
vulnerability
assessment
consistent with the
requirements of SB
379 at the time of the
next Housing Element
update.

High Planning,
Emergency
Services
Coordinator

Complete

Noise Implementation Programs

# DESCRIPTION PRIORITY RESPONSIBILITY TIME
FRAME

PROEJCT
STATUS

88 Special events noise
mitigation program.

Continue to monitor
Special Events noise
levels and seeks ways
to mitigate for least
neighborhood
disruption, including in
the Major Music
Festival Overlay Zone.

High Planning,
Public Works
Ongoing Ongoing
89 Noise ordinance.

Amend the noise
ordinance to include
day and nighttime
noise level limits and
to specifically protect
noise sensitive land
uses during overnight
hours.

High Planning Short Pending

AGENDA ITEM #10.8
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City of Indio 2022 General Plan Annual Progress Report

90 Airport overlay. Adopt
an overlay zone, as
part of the Noise
Ordinance or
separately, for lands
that fall within the
airport influence area
of the Bermuda Dunes
Airport.

Medium Planning Medium Pending
91 Construction noise
limits. Review the
hours of allowed
construction activity to
ensure they effectively
lead to compliance
within the limits
(maximum noise
levels, hours and days
of allowed activity)
established in the
City’s noise
regulations.

Medium Planning Short Ongoing
92 Noise studies.

Require submittal of
applicable technical
reports prepared by
qualified professionals
as part of the
development review
process. Depending
on the location, size,
or type of
development
proposed, technical
reports could be
required, including a
noise impact analysis.

High Planning Ongoing Ongoing

AGENDA ITEM #10.8
Receive and Accept: The City of Indio General Plan 2022 Annual Progress ... Page 266 of 345 City of Indio
City Council
March 15, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: Agreement between the City of Indio and NAPA Auto Parts, DBA Desert Area Corporation to provide repair parts, supplies and other needed services and materials for the City

RECOMMENDATION:

Approve the Agreement between the City of Indio and NAPA Auto Pa rts, DBA Desert Area Corporation to provide repair parts, supplies and other needed services and materials for the City in the amount up to $1,000,000 per fiscal year, for up to five (5) years, and an additional $360,000 as annual flat fee, paid monthly at $30,000 per month for a total of $1,360,000 per year; in the form finalized and approved by the City Manager and the City Attorney.

SUMMARY:

The current agreement with NAPA Auto Parts, DBA Desert Area Corporation has expired. The agreement is needed to continue on with providing the City of Indio’s Fleet Services Division and other City Departments and Divisions with the needed repair parts and services that are critical in maintaining the City’s Fleet and Warehouse operations.

BACKGROUND INFORMATION:

The City of Indio’s Fleet Services Division currently provides maintenance, repairs and support to over 360 pieces of equipment for the City, along with Warehouse operations for the City.

The City has contracted with NAPA to provide needed repair parts, supplies and services. The current agreement has expired and Staff desires to continue with contracting these services that will result in an estimated cost savings of 2,248 man-hours per year as staff can remain on task with maintaining and repairing equipment and not researching or procuring needed parts and/or services. This reduces purchase of incorrect parts and increases the City’s return on parts and core returns. Along with the termination of the collective warehouse function for the City and the Indio Water Authority, Fleet Services will continue to partner with NAPA to supply needed cleaning supplies, toiletries, office supplies, building maintenance supplies and materials, along with other needed supplies, materials and parts for the City. This will give staff the ability to continue a timely and cost-effective procurement of these needed items. The proposed agreement is for a three -year term with two one -year extensions, in addition to a partial year from March 2023 to June 30, 2023, and will renew annually on July 1 of each year. The City Council is requested to approve the agreement in the form finalized and approved by the City Manager and City Attorney.

NAPA’s Integrated Business Solutions (IBS) program brings the substantial combined corporate assets of Genuine Parts Company’s family of supply and distribution enterprises, company and small- AGENDA ITEM #10.9
Agreement between the City of Indio and NAPA Auto Parts, DBA Desert Area... Page 267 of 345 business independent stores along with extensive experience into play in 30+ years of running successful on -site and offsite vendor managed inventory operations with government fleet and warehousing facilities.

NAPA utilizes their own resources and strategic partnerships with numerous addition al local and national resources. Currently, NAPA’s IBS program provides parts, service and expertise necessary to provide a reliable and complete “dedicated” on -site source of repair parts and services for Sourcewell members in addition to the following:

• Achieve a significant reduction in administrative procedures; • Reduce transactional costs through centralized billing across multiple vendors; • Deliver increase in on-demand parts availability;
• Drive increases in fleet technician performance;
• Reduce vehicle downtime in fleet operations;
• Eliminate obsolete parts and shrinkage costs through efficient parts room management technologies;
• Significantly reduce the cost of parts and warehouse inventory ownership; and • Provide a turn-key sourcing solution service that will enable government agencies to operate the repair and warehouse facilities more efficiently, resulting in savings of funds through cost avoidance.

NAPA has more than 380 active vendor managed parts warehousing partnership locations across the United States and Canada. With their 30+ years of experience in operating these integrated supply operations NAPA can provide some key added-value help to a government fleet organization.

The City’s Municipal Code 33.116 Purchasing Policies and Guidelines (paragraph 4 section C) allows for cooperative purchasing with other public jurisdictions. Accordingly, staff has reviewed the recent request for bids for similar services conducted by the Sourcewell, formally known as the National Joint Powers Alliance (NJPA). Sourcewell has awarded a contract to NAPA (Contract # 032521 -GPC) for automotive and truck replacement parts and tires with related equipment, accessories and services.

This contract runs through May 19, 202 5. This national cooperative contract allows states, counties, cities, school districts and other state agencies and non-profit organizations to start purchasing parts with the program today without going out to bid. Fleet Services staff has reviewed the specifications from Sourcewell and verified that this current agreement will fulfill the City’s needs.

Therefore, the City will utilize the cooperative purchasing procedures set forth by Sourcewell to enter into this agreement with NAPA Auto Parts, DBA Desert Area Corporation who was the successful bidder for Sourcewell.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$500,000 In current year budget: Yes
Current FY General
Fund Impact:
$0 Budget adjustment: N/A
Next FY Financial
Impact:
$1,360,000 Strategic Objective:

Source of funds: Various Fund-Org-Object
Reference:

N/A

Additional Financial Details:

AGENDA ITEM #10.9
Agreement between the City of Indio and NAPA Auto Parts, DBA Desert Area... Page 268 of 345 Approval of this agreement will have no additional costs incurred to the general fund and will benefit the City. The previous agreement with NAPA was based on an option, which allowed NAPA to receive a set 10% profit of all purchases procured by NAPA. The new agreement establishes a flat monthly fee of $30,000, regardless of the items purchased, and the cost. NAPA Auto Parts, DBA Desert Area Corporation will continue to provide at their cost, three (3) full-time employees and a supervisor.

APPROVAL(S):

Timothy Wassil, Public Works Director Approved - 06 Mar 2023 Steven Graham, City Attorney Approved - 08 Mar 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 08 Mar 2023 Bryan H. Montgomery, City Manager Approved - 08 Mar 2023

AGENDA ITEM #10.9
Agreement between the City of Indio and NAPA Auto Parts, DBA Desert Area... Page 269 of 345 City of Indio
City Council
March 15, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Samantha Lopez, Finance Manager
Subject: Independent auditor's report and the City's Annual Comprehensive Financial report for fiscal year 2021-22.

RECOMMENDATION:

Receive and file the City of Indio Annual Comprehensive Financial Report for the year ended June 30, 2022.

SUMMARY:

The City is required to have an independent auditor conduct a financial audit each year. For the fiscal year ended June 30, 2022, the firm of Lance, Soll & Lunghard LLP conducted the audit. It is the opinion of Lance, Soll & Lunghard LLP that the City’s an nual financial reports present fairly, in all material respects, the financial position of the City; and that the reports are in conformity with accounting principles generally accepted in the United States.

BACKGROUND INFORMATION:

The Annual Comprehensi ve Financial Report (ACFR) is a set of government financial statements prepared by City staff that comply with Governmental Accounting Standards Board (GASB) regulations and standards. The financial statements have been audited and validated by the accounting firm Lance, Soll & Lunghard LLP (LSL) to be in compliance with GASB requirements.

Unlike the City’s budget, which shows where resources are to be spent in the future, the ACFR contains financial results as of the end of the fiscal year. In order to provide a wide range of facts and figures, the ACFR is composed of three sections: Introductory, Financial, and Statistical. Overall, the ACFR provides a comprehensive picture of the City’s financial condition, contains a comparison of the annual budget pla n to actual expenditures, and includes information on municipal operating activities. Incorporated into the ACFR is information on all City funds on the accrual basis of accounting, which recognizes amounts owed by the City but not paid at the end of the f iscal year as well as amounts due to the City but not received by the end of the fiscal year. The ACFR provides information which is used by credit rating companies such as Fitch Ratings Inc. and Standard and Poor’s to determine the City’s fiscal integrity and bond (credit) rating.

Within the Financial Section of the ACFR, beginning on page five, Management’s Discussion and Analysis (MD&A) provides and overview of the City’s financial activities. As reported in the financial section of the ACFR, the City’s net position totaled $577.6 million on June 30, 2022, a year-over-year increase of $26.8 million, an increase of about five percent. Fund balance for the General Fund totaled AGENDA ITEM #11.1
Independent auditor's report and the City's Annual Comprehensive Financi... Page 270 of 345 $83.3 million, up $29.6 million from the year before. From that total, $15 mill ion represents the City’s set aside in case of emergency.

Annually, each ACFR is presented to the Government Finance Officers Association (GFOA), which conducts a review of local government ACFRs and upon review, awards their Certificate of Achievement A ward for Excellence in Financial Reporting to those local governments that are in compliance with their ACFR accounting standards of preparation. Last year, the City earned the GFOA award for “Outstanding Financial Reporting” for the fifteenth successive y ear. The Fiscal Year 2021- 22 ACFR has been submitted to the GFOA and staff anticipates earning the award for the sixteenth consecutive year.

The ACFR can be reviewed on the City's website. Attached are three documents prepared by LSL:

Auditor’s Communication Letter (Attachment 1), Auditor’s Report on Internal Controls (Attachment 2), and the Appropriation Limit Report (Attachment 3).

The Auditor’s Communication Letter (Attachment 1) reflects auditor conclusions concerning the City’s accounting policies and procedures. The Communication Letter confirms that all the information enclosed within the City’s financial statements is true and accurate and that all the required information has been disclosed. The letter is also used to communicate concerns and s uggestions noted during the audit.

The Auditor’s Report on Internal Controls (Attachment 2) expresses LSL’s opinion on the effectiveness of City internal controls over financial reporting. In order to form a basis for expressing an opinion, the auditor must plan and perform the audit to obtain appropriate evidence that is sufficient to obtain reasonable assurance about whether material weaknesses exist.

The Appropriations Limit Report (Attachment 3) confirms that the City met state regulations limiting the level of appropriations sourced from tax revenue. Specifically, LSL reviewed the City’s worksheet used to determine the state required annual appropriations limit, as required by Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative) and determined that City tax revenue did not exceed the appropriations limit set by statute. Financial limitations can be placed on a City when the amount of tax revenue exceeds the calculated appropriation limit.

ATTACHMENTS:
1) City of Indio Audit Communication Letter
2) City of Indio Report on IC
3) City of Indio AUP

APPROVAL(S):

Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 08 Mar 2023 Steven Graham, City Attorney Approved - 08 Mar 2023
Bryan H. Montgomery, City Manager Approved - 08 Mar 2023

AGENDA ITEM #11.1
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1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
February 24, 2023

To the Honorable Mayor and Members of the City Council
City of Indio, California

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Indio, California (the City) for the year ended June 30, 2022. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated April 28, 2022. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters

Qualitative Aspects of Significant Accounting Practices

Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 11 to the financial statements, the District changed its accounting policies related to leases by adopting Statement of Governmental Accoun ting Standards (GASB Statement) No. 87, Leases. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Statement of Net Position. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial stat ements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Management’s estimates of its net pension liability and net other post-employment benefits (OPEB) liability are based on actuarial valuation specialist assumptions. We evaluated the key factors and assumptions used to develop the net pension liability and net OPEB liability in determining that they are reasonable in relation to the fina ncial statements taken as a whole.

The financial statement disclosures are neutral, consistent, and clear.

Significant or Unusual Transactions

Management is responsible for the policies and practices used t o account for significant or unusual transactions. No significant unusual transactions have occurred during fiscal year 2021-2022.

Difficulties Encountered in Performing the Audit

We encountered no significant difficulties in dealing with mana gement in performing and completing our audit.

AGENDA ITEM #11.1
Independent auditor's report and the City's Annual Comprehensive Financi... Page 272 of 345

To the Honorable Mayor and Members of the City Council
City of Indio, California

Corrected and Uncorrected Misstatements

Professional standards require u s to accumulate all known and l ikely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We are pleased to report that no such misstatements were identified during the course of our audit.

Disagreements with Management

For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such dis agreements arose during the course of our audit.

Management Representations

We have requested certain representations from management that are included in the management representation letter dated February 24, 2023.

Management Consultations with Other Independent Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain sit uations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine t hat the consultant has all the r elevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues

We generally discuss a variety of matters, including the signif icant events or transactions that occurred during the year, business conditions affecting the City and bus iness plans and strategies that may affect the risks of material misstate ments, the application of account ing principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters

We applied certain limited procedures to the management’s discu ssion and analysis, the budgetary comparison schedules for the General Fund and the American Resc ue Plan Act fund, and the required pension and other post-employment benefits schedules, as listed in the Annual Comprehensive Financial Report’s table of contents, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedu res consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on combining statements, individual f und statements and budget schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not ch anged from the prior period, and the information is appropriate and complete in relation to our audi t of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

AGENDA ITEM #11.1
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To the Honorable Mayor and Members of the City Council
City of Indio, California

We were not engaged to report on introduction and statistical s ections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, w e do not express an opinion or provide any assurance on it.

The following new Governmental Accounting Standards Board (GASB) pronouncements were effective for fiscal year 2021-2022 audit:

GASB Statement No. 87, Leases.

GASB Statement No. 89, Accounting for Interest Cost Incurr ed before the End of a Construction Period.

GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans.

The following GASB pron ouncements are effect ive in the followin g fiscal years’ audits and should be reviewed for proper implementation by management:

Fiscal year 2023

GASB Statement No. 91, Conduit Debt Obligations.

GASB Statement No. 94, Public-Private and Public-Public Part nerships and Availability Payment Arrangement.

GASB Statement No. 96, Subscription-Based Information Technology Arrangements.

Fiscal year 2024

GASB Statement No. 99, Omnibus 2022.

GASB Statement No. 100, Accounting Changes and Error Corrections.

Fiscal year 2025

GASB Statement No. 101, Compensated Absences.

Restriction on Use

This information is intended solely for the use of City Council and management of the City of Indio and is not intended to be, and should not be, used by anyone other than these specified parties.

Very truly yours,

Brea, California

AGENDA ITEM #11.1
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1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL

OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS

To the Honorable Mayor and Members of the City Council
City of Indio, California

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the fin ancial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Indio, California (the “City”), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Ci ty’s basic financial statements, and have issued our report thereon dated February 24, 2023.

Report on Internal Control over Financial Reporting

In planning and performing our audit of the financial statement s, we considered the City’s internal control over financial reporting (internal control) as a basis for desi gning audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that ther e is a reasonable possibility t hat a material misstatement of the entity’s financial statements will not be prevented, or detected and cor rected, on a timely basis. A significant deficiency is a deficiency, or a combinati on of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal c ontrol was for the limited purpo se described in the first paragraph of this section and was not designed to i dentify all deficiencies in internal control that might be material weaknesses or, significant defic iencies. Given these limitation s, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Cit y’s financial statements are free from material misstatement, we performed tests of its compliance wit h certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on complian ce with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are require d to be reported under Government Auditing Standards.

AGENDA ITEM #11.1
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To the Honorable Mayor and Members of the City Council
City of Indio, California

Purpose of this Report

The purpose of this report is solely to describe the scope of o ur testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report i s an integral part of an audit p erformed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Acc ordingly, this communication is not suitable for any other purpose.

Brea, California
February 24, 2023

AGENDA ITEM #11.1
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203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON

PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS

To the Honorable Mayor and Members of the City Council
City of Indio, California

We have performed the procedures enumerated below on the accomp anying Appropriations Limit Worksheet No. 6 (or other alternat ive computation) of the City of Indio, California (the City), for the year ended June 30, 2023. These procedures are the responsibility of the City, which were agreed to by the City and the League of California Cities (as presented in t he publication entitled Agreed-Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed solely to assist the City in meet ing the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City’s manag ement is responsible for the Appropriations Limit Worksheet No. 6 (or other alternative computation).

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of recomputing th e Appropriations Limit Worksh eet No. 6 (or other alternative computation). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whet her the procedures performed are appropriate for their purposes.

The procedures performed and our findings were as follows:

1. We obtained the completed Worksheets No. 1 through No. 7 (or other alternative computations) and compared the limit and annual adjustment factors included in th ose worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Worksheet No. 6, w e multiplied line A, last year's limit, by line D, ratio of change and compared the resulting amount to line E, this year's limit.

Finding: No exceptions were noted as a result of our procedures.

3. We compared the current year information presented in the ac companying Appropriations Limit Worksheet No. 6 to the other worksheets described in No. 1 above.

Finding: No exceptions were noted as a result of our procedures.

4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.

Finding: No exceptions were noted as a result of our procedures.

AGENDA ITEM #11.1
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To the Honorable Mayor and Members of the City Council
City of Indio, California

We were engaged by the City to perform this agreed-upon procedu res engagement and conducted our engagement in accordance with attestation standards established by the AICPA. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the ac companying Appropriations Limit Worksheet No. 6 (or other alternative computation). Accordingly , we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our o ther ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information of the City Council and management of the City of Indio and is not intended to be, and should not be, use d by anyone other than these specified parties.

Brea, California
August 11, 2022

AGENDA ITEM #11.1
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CITY OF INDIO, CALIFORNIA
FISCAL YEAR 2022-2023

APPROPRIATIONS LIMIT CALCULATION

A. 2021-2022 APPROPRIATIONS LIMIT: $ 135,920,112

B. 2022-2023 CHANGE IN PER CAPITA
PERSONAL INCOME: 7.55%

C. 2022-2023 CHANGE IN POPULATION: 0.31%

D. RATIO OF CHANGE (1.07 55 X 1.0031): X 1.0788

E. 2022-2023 APPROPRIATIONS LIMIT: $ 146,630,617
($135,920,112 x 1.0788)

AGENDA ITEM #11.1
Independent auditor's report and the City's Annual Comprehensive Financi... Page 279 of 345 City of Indio
City Council
March 15, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Kevin H. Snyder, Dir. Of Community Development Subject: Professional Services Agreement with Dudek for Sphere of Influence Services in the amount of $96,342.50 to obtain a Sphere of Influence designation for certain real properties south of Avenue 50, north of Avenue 52, east of Jackson Street and west of Calhoun Street

RECOMMENDATION:

If the Council desires to bring this area into its formal Sphere of Influence and eventually annex it, approve Professional Services Agreement with Dudek for Sphere of Influence Services in the amount of $96,342.50 to obtain a Sphere of Influence designation for certain real properties south of Avenue 50, north of Avenue 52, east of Jackson Street and west of Calhoun Street and authorize the City Manager and City Attorney to execute said Agreement

SUMMARY:

Professional Services Agreement with Dudek for Sphere of Influence Modification Services in the amount of $96,342.50 to modify the City of Indio's Sphere of Influence to include certain real properties south of Avenue 50, north of Avenue 52, east of Jackson Street and west of Calhoun Street

BACKGROUND INFORMATION:

For the last several years, the City has been in discussions with residents, property owners, the Riverside Local Agency Formation Commission (LAFCO) Board and staff and the City of Coachella regarding the regulatory status of approximately 231 acres of land between the Cities of Indio and Coachella. These properties are located south of Avenue 50, north of Avenue 52, east of Jackson Street and west of Calhoun Street (Attachment 1). These proper ties are currently in unincorporated Riverside County, are subject to the regulatory authorities of Riverside County and are not located within a designated Sphere of Influence. A sphere of influence is a plan for the probable ultimate physical boundaries and service area of a local government agency as determined by a Local Agency Formation Commission (LAFCO). An area must have a prior Sphere of Influence designation in order to be considered for potential annexation. Annexation is the process whereby citi es extend their municipal services, voting privileges and taxing authority to a new territory through an expansion of City limits. Staff understands that the City of Coachella is preparing a proposal to bring this area into the City of Coachella's sphere of influence.

Based on efforts to date, staff believes a finding can be made that it is in the best interest of the City's public health, safety and welfare to pursue the designation of the aforementioned 231 acres as a City of Indio Sphere of Influence area. However, if the Council feels the area is best served by the County AGENDA ITEM #11.2
Professional Services Agreement with Dudek for Sphere of Influence Servi... Page 280 of 345 and eventually the City of Coachella, then we should not proceed with the professional services described below.

Staff has obtained a proposal for professional services from Dudek that has demonstrated experience in conducting the required tasks and studies that are necessary to obtain a Sphere of Influence designation from Riverside LAFCO. Staff is only seeking Council authorization for Phase I services from Dudek as specified in Attachment 2. Potential Phase II services would be a separate future consideration item by the City Council.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$25,000 In current year budget: Yes
Current FY General
Fund Impact:
$25,000 Budget adjustment: No
Next FY Financial
Impact:
$71,342.50 Strategic Objective: Community Outreach
Source of funds: General Fund Fund-Org-Object
Reference:
1012182 521064

ALTERNATIVES:

Make the determination not to proceed with Sphere of Influence application and not approve this professional services agreement with Dudek.

ATTACHMENTS:

Attachment1_Sphere of Influence ModificationMap
Attachment2_Dudek_SphereofInfluenceModification_ProposalBudget

APPROVAL(S):

Steven Graham, City Attorney Approved - 07 Mar 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 08 Mar 2023 Bryan H. Montgomery, City Manager Approved - 08 Mar 2023

AGENDA ITEM #11.2
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AGENDA ITEM #11.2
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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-1 Cover Letter
February 15, 2023
Kevin Snyder, AICP
Community Development Director
City of Indio
100 Civic Center Mall
Indio, CA 92201
Subject: Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio
Dear Mr. Snyder:

Dudek is please to submit this proposal to assist the City of Indio to provide the enclosed work program for planning and consulting services for Area 3 (Project Area) within the City of Indio, and the associated Environmental Documentation needed.

Sincerely,
__________________________________
Asha Bleier
Practice Director – Planning & Urban Design
Asha Bleier is authorized to sign on behalf of Dudek.

AGENDA ITEM #11.2
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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-2 Phase I – Pre-Annexation
Project Understanding
Dudek understands that the City is interested in annexing 148.5 acres of unincorporated County land into City boundaries. The potential annexed land is referenced by the City as ‘Area 3” and will be referenced as the “Project Area”. No construction or other development is proposed by the City or private development with this annexation and pre-zoning.

Task 1 Project Management
Laurie Grover will serve as the day-to-day project manager and primary point of contact throughout the duration of the project. Dudek’s approach to project management includes clear and timely communication, managing adherence to the scope, keeping the progression of work on schedule, cost controls, and risk management.

Dudek prides itself on integrating a fundamental focus on high-quality work and meeting both client and project goals and objectives. Ms. Grover and key Dudek staff (such as outreach professionals and CEQA analysts), will lead weekly virtual meetings with City staff. The meetings will ensure objectives and milestones are being achieved. When requested, and at strategic points in the project, Dudek can add additional meetings to the schedule to increase communication and collaboration. For these meetings, Dudek will prepare agendas with input from City staff. Meeting minutes will be taken during meetings and provided to the project team with next steps and action items outlined for both Dudek and the City as needed. Dudek assumes that the annexation process will take approximately twelve (12) months to complete. While Dudek will work in earnest to keep the schedule within this timeframe, we cannot account for measures outside of our control.

Kickoff Meeting
Within thirty (30) days of the execution of the contract, Dudek will work with the City to schedule a virtual kickoff meeting. The purpose of the kickoff meeting is to align expectations, share aspirations, establish relationships, and set up the outreach strategy for success. Dudek will prepare a meeting agenda and include any items requested by the City. The kickoff meeting will introduce key team members and clarify roles, lines of communication, and review processes as well as a review of the scope of work and the schedule. The kickoff meeting will also serve as an opportunity for the City to update Dudek on work completed to date and any potential issues that might arise regarding public engagement and the pre-annexation process. The Kickoff meeting will also include a discussion on data needs. Dudek will request all relevant information pertaining to the site, feedback from past stakeholder engagement activities, public service provider information, among other data needs at the kickoff meeting. Within one (1) week of the kickoff meeting, Dudek will provide meeting minutes and action items to the City.

Data Needs
City needs to provide all relevant information pertaining to site, past engagement and feedback,

Deliverables:
 Attendance at virtual kickoff meeting material including agenda, presentation, minutes, and action items
 Monthly invoices and progress reports

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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-3 Task 2 General Plan Amendment and Pre-Zoning
Dudek will lead the General Plan amendment process for the project area. The area is currently designated as Rural Community - Estate Density Residential (RC-EDR), which includes a Building Intensity Range of a 2-acre minimum, and can include single family detached residences on large parcels of 2 to 5 acres. This use also allows for limited agriculture, and intensive equestrian and animal keeping uses are expected and encouraged. The goal of the General Plan Amendment would be to convert Area 3 into the Desert Estates General Plan Land Use designation (implemented by the Desert Estates Transition-3 (DET-3) zone). The Desert Estates designation applies to semi-rural areas of the city and is intended to conserve natural features while providing low-intensity residential neighborhood development for single-family, detached homes at a density of up to three dwelling units per acre.

In addition to the General Plan Amendment, Dudek recommends pre-zoning the identified project area in compliance with the city’s Unified Development Code1 Chapter 6.06.02. Pre-Zoning. Pre-zoning efforts will focus on transitioning the project area’s zoning classification to DET-3, as mentioned above.

As part of the General Plan Amendment, Dudek will prepare the appropriate text edits to include as part of the General Plan amendment process. Similarly, Dudek will finalize and package all documentation for public hearings and adoption, including the Final General Plan Land Use Diagram and the corresponding Official Zoning Map, and a formal presentation. Dudek assumes attendance by up to two (2) Senior Dudek staff at up to one (1) Planning Commission hearing and one (1) City Council hearing.

Deliverables
• Draft and final General Plan language to be inserted into the General Plan document (word) • PowerPoint presentations for one (1) Planning Commission adoption hearing and for one (1) City Council adoption hearing. Dudek assumes in-person attendance and presentations provided by up to two (2) Senior Dudek staff.
• Draft and Final General Plan Land Use Diagram (electronic copy) • Draft and Final Official Zoning Map (electronic copy) Assumptions
• As defined in code (6.06.02.D Notification of the Board of Supervisors), Dudek assumes that the city will notify the Riverside Board of Supervisors of the proposed application of the pre-zoning process prior to submitting an application to LAFCO.
• Dudek assumes one level of review for each draft deliverable. • Dudek assumes that City staff will prepare any associated staff reports needed for each public hearing. • Dudek will coordinate with the City to ensure that proper City review is provided throughout this process according to Chapter 6.02.04, Summary of Review Authorities for Decisions and Appeals.

1 Unified Development Code, Effective 10.22.22. https://www.indio.org/home/showpublisheddocument/3314/638046229914700000

AGENDA ITEM #11.2
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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-4 Task 3 Geographic Information Systems
Dudek will perform GIS tasks related to the pre-annexation of Area 3. This will include creating updated maps of the project area with APNs, existing utilities, roadway networks, and other data layers as appropriate. This initial mapping exercise will provide visual aids to be used and referenced in Task 2 General Plan Amendment and Pre- Zoning, Task 4 Public Engagement, and Task 5 Preliminary Steps for LAFCO Application. Specific boundary descriptions and mapping requirements per the LAFCO annexation application is outlined in Phase II, Task 3 Application Preparation.

Task 4 Public Engagement
Building off past public outreach efforts in the project area, Dudek will support the City in hosting up to two (2) in- person or virtual public meetings to inform residents, businesses, and stakeholders of the overall annexation process. Public meetings are a key task in the annexation process to build trust with the community, demonstrate transparency in governance, and help provide a smoother transition in the annexation process. From our experience, public outreach helps reduce any unanticipated concerns from interested parties or community groups.

Dudek will work with the City staff to develop appropriate workshop formats for each of the two (2) public meetings. Workshops could include informational presentations, open houses with informal discussions, or other formats to be discussed with the City. Dudek will support the development of presentations and public outreach materials in coordination with City staff to communicate the project’s need, timeline, ways to provide input, and other relevant information.

To increase public awareness of this effort, Dudek will also create and distribute a mailer to addresses within a 100 ft. buffer of the project area. The mailer will provide information about pre-annexation, timeline, and contact information.

Deliverables
• PowerPoint presentations for one (1) Planning Commission adoption hearing and for one (1) City Council adoption hearing. Dudek assumes in-person attendance and presentations provided by up to two (2) Senior Dudek staff.

• Draft and Final mailer, outreach boards and materials (print and electronic copies).

Assumptions
• If additional outreach is needed beyond what is described in this scope Dudek will submit a scope and fee augment.
• Dudek assumes one level of review for the draft mailer, draft outreach boards, and other outreach materials.

Task 5 Preliminary Steps for LAFCO Application
At the appropriate time, Dudek will identify the preliminary steps and actions needed prior to submitting a LAFCO annexation application, and supplemental application for a Sphere of Influence Amendment. Based off Dudek’s knowledge and experience, we recommend pursuing the following pre-annexation steps before moving to Phase II:

Task 5.1 Pre-Application Meeting

AGENDA ITEM #11.2
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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-5 Provided resolution by City Council, Dudek will set up an initial in-person or virtual meeting with the LAFCO executive officer. The meeting will include a discussion on the annexation proposal, identify potential political, financial, or procedural “red flags,” and understand the local LAFCO’s application requirements. Similarly, Dudek will attend up to seven (7) meetings with City staff and any affected special districts and agencies (including County, water, sewer, electric, fire, police, and school districts) to agree upon a taxation scheme and need property tax transfers, and service and utility coverage. A taxation agreement is needed prior to the issuance of a certificate of filing by the LAFCO executive officer. Based on best practice, annexation attempts can oftentimes fail if the affected city and county cannot reach agreement on a property tax split. Having this discussion early may help set the stage for future agreement and is highly recommended. A property tax exchange agreement could be explored as part of this pre-application discussion. Dudek suggests that this meeting take place either before or concurrent to CEQA preparation.

Dudek will support up to eight (8) total virtual or in-person pre-application meetings with the LAFCO executive office, and affected agencies and special districts. Dudek will provide City staff with an agenda and any supporting meeting materials, such as maps. Dudek assumes attendance of up to one (1) Senior Dudek staff at each of the eight (8) pre-application meetings.

Task 5.2 Pre-Application Checklist and Memo
In preparation for filing the LAFCO annexation application, Dudek will provide a checklist of what additional steps are needed to move the process forward. Dudek will perform a detailed review of the Riverside LAFCO Application Packet and produce an annotated checklist of what future information and services are needed and what information has already been collected to date. Additionally, Dudek will prepare a Memo outlining the Annexation process including a schedule for completion. The memo will set clear expectations of what is needed for Phase II and how long we can expect the process to take.

Deliverables
• Pre-application meeting agenda, and any supporting meeting materials. • Detailed pre-application checklist and Memo.
• Meeting support for up to eight (8) one-hour pre-application meetings including agendas.

Assumptions
• Dudek assumes that the City will pass a Resolution of Application prior to LAFCO Application submittal. • Dudek staff has scoped travel for one (1) Senior Dudek staff to attend up to three (3) in-person meetings out of the eight (8) total pre-application meetings. For the remaining meetings, Dudek can attend virtually.

Dudek will work with the City to identify which in-person meetings, if any, Dudek should attend. • City staff may decide to hold additional meetings with the affected special districts and agencies. Dudek will not attend or support these meetings unless the agreed upon scope of services and fees are amended accordingly.

Task 6 Compliance with California Environmental Quality Act (CEQA) Dudek understands that the project area(s) are currently designated as “Estate Density Residential” in the County’s General Plan, and the project area (s) would be redesignated to “Desert Estates” which is a similar rural residential use. Further, Dudek understands that there is no actual development proposed at this time, rather, the project would only consider the potential change of land use between the County and City. Based on Dudek’s understanding

AGENDA ITEM #11.2
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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-6 of the proposed pre -zoning and annexation, we anticip ate that the [insert project name] would not result in significant, unavoidable adverse impacts to the physical environment. Therefore, our approach includes preparation of an Initial Study (IS)/Mitigated Negative Declaration (MND) to address potential environmental impacts associated with the proposed project. Although not anticipated, if the findings of the IS conclude that the project could result in significant adverse impacts to the physical environment, Dudek will discuss with the City and provide a scope of services to complete an Environmental Impact Report (EIR).

Mitigated Negative Declaration
Project Description
Dudek will develop a project description that summarizes the key components of the proposed project, with particular focus on any specific physical projects that are identified as part of the goals, policies, implementation measures, and programs within the elements. The project description will document the range and types of construction activities that may occur as part of the City’s implementation of the Housing and Safety and Environmental Justice Elements.

Preparation of the Administrative Draft IS/MND
Dudek will utilize Appendix G of the CEQA Guidelines as well as City guidance to ensure that all necessary information and analysis is included in the IS/MND. Each section will provide a description of the relevant physical conditions and regulatory requirements; assess the project’s impacts; and identify appropriate, feasible, and effective mitigation measures, as needed. All impact analyses will include substantiating documentation to support all responses and conclusions, including the inclusion of concise tables and high-quality figures. All resources utilized in the preparation of the IS/MND and a list of preparers will be cited i n respective sections of the document. Dudek will compare the environmental baseline conditions with the anticipated implementation of the proposed pre-annexation actions to identify any potential physical environmental impacts associated with the project. Because it is our understanding that the project would not result in physical effects on the environment, no specific technical studies are anticipated or proposed to be prepared; rather, the analysis will focus on qualitative discussions of potential effects. Where necessary, Dudek will incorporate feasible mitigation measures to reduce potentially adverse impacts to a less-than-significant level.

We will submit the administrative draft IS/MND to City staff for review and make any final changes and revisions to the administrative draft IS/MND as requested by City staff.

Deliverables:
• Electronic Microsoft Word copy of administrative draft IS/MND to City staff Assumptions:
• Dudek will respond to one round of consolidated comments from the City on the administrative draft IS/MND.
• AB 52 government-to-government consultation will be handled by the City. Dudek will provide a template AB 52 notification letter to interested Native American tribes.

Public Review Draft IS/MND
Upon receipt of comments from the City on the Draft IS/MND, Dudek will prepared a revised IS/MND to address comments and questions raised by the City. It is our expectation that this revised administrative draft IS/MND submittal will address all prior comments and, thus, will serve as the version for circulation of public review. Therefore, this subsequent submittal to City staff will include both a redline strikeout/underline version of the IS/MND, as well as a clean, compiled PDF.

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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-7 Dudek will handle production and distribution of the draft IS/MND for 30-day public review period. Dudek recommends that the IS/MND be posted on the City’s website for interested parties to access during the public review period. Dudek will also prepare the Notice of Intent (NOI) to Adopt an MND, Notice of Completion (NOC), and project summary for submittal to the State Clearinghouse (SCH). Dudek will post the NOI with the County Clerk and provide a date stamped copy for the City’s administrative record as proof of posting. Dudek will also mail a hard copy of the NOI to all contacts included in the City’s distribution list. Dudek will work with the City to prepare the distribution list for the IS/MND. The distribution list would include all appropriate state and local agencies, Native American tribes, service providers, and interested parties. Dudek will also prepare the notices and mailings for SB 18 and AB 52 compliance.

Deliverables:
• Electronic Microsoft Word copy each of the draft and final distribution list to City staff • Electronic Microsoft Word and PDF copy each of the NOI and public review draft IS/MND to City staff • Three hard copies of NOI and public review draft IS/MND to City staff • One hard copy of the NOC form for the SCH
Assumptions:
• Attendance will not be necessary at a public meeting for the draft IS/MND. • The revised administrative draft IS/MND submittal will satisfactorily address all prior City comments. • No hard copies of the draft MND will be submitted to SCH. • The City will post a notice in the local newspaper, if desired.

Final Environmental Analysis
The following sections will make up the final MND, which will be attached to the draft IS/MND. Dudek assumes two electronic rounds of review/comments/revisions between the City and Dudek, with comments provided to Dudek in Microsoft Word format. Dudek recommends the final MND be made available on the City’s website.

Responses to Comments
After the public circulation period closes, Dudek will review comments received on the draft document and consult with the City regarding any substantive comments. If war ranted, Dudek will prepare written responses to substantive comments and/or a memo discussing the public comments. Although responses to comments on a draft IS/MND are not required (other than requirements relative to state agencies), this approach is intended to assist the decision makers by providing them a full understanding of the public’s concerns, if any. The budget for this task assumes that Dudek would respond to no more than 15 individual comments (one comment letter may contain multiple individual comments) received during the public review period for the IS/MND.

Revisions to the Draft IS/MND
If applicable, a discussion of any revisions made to the draft IS/MND, based on comments received during the public review period, will be included in the final MND.

Mitigation Monitoring and Reporting Plan (MMRP)
Assuming mitigation is required, an MMRP in table format will be included in the final MND. The MMRP will outline all mitigation measures from the IS/MND, including, at a minimum, the implementing agency, enforcement agency, monitoring frequency, and compliance.

Deliverables:
• Electronic Microsoft Word copy of final MND and MMRP to City

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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-8 • Three hard copies of final MND to City
• Three CDs containing the final MND, draft IS/MND, and all technical appendices to City Assumptions:
• Dudek will respond to one round of comments from the City for the final MND.

CEQA Compliance
Dudek will prepare and file the Notice of Determination (NOD) with the County Clerk and SCH within 5 days of approval of the MND. The City will be responsible to providing a check for review fees required by the California Department of Fish and Wildlife. This fee is required at the time the NOD is filed.

Deliverables:
• One electronic copy each of the draft and final NOD to the City Phase II – Full Annexation
Task 1 Project Management
Laurie Grover will serve as the day-to-day project manager and primary point of contact throughout the duration of the project. Ms. Grover and key Dudek staff (such as surveyors and GIS analysts), will lead weekly virtual meetings with City staff. The meetings will ensure objectives and milestones are being achieved. When requested, and at strategic points in the project, Dudek can add additional meetings to the schedule to increase communication and collaboration. For these meetings, Dudek will prepare agendas with input from City staff. Meeting minutes will be taken during meetings and provided to the project team with next steps and action items outlined for both Dudek and the City as needed.

Kickoff Meeting
Within thirty (30) days of the execution of the contract, Dudek will work with the City to schedule a virtual kickoff meeting. The purpose of the kickoff meeting is to align expectations, share aspirations, establish relationships, and set up a clear pathway forward to finalize and file the annexation application. Dudek will prepare a meeting agenda and include any items requested by the City. The kickoff meeting will introduce key team members and clarify roles, lines of communication, and review processes as well as a review of the scope of work and the schedule. The kickoff meeting will also serve as an opportunity for the City to update Dudek on work completed to date and any potential issues that might arise. The Kickoff meeting should include discussion of the Pre- Application checklist compiled during Phase I, and will identify next steps and an associated timeline of when items should be reviewed and ultimately completed for inclusion in the LAFCO application. The Kickoff meeting will also include a discussion on data needs. Dudek will build off the data request needs from Phase I and should there be additional needs, will use this time to request any relevant project information. Within one (1) week of the kickoff meeting, Dudek will provide meeting minutes and action items to the City.

Deliverables
• Virtual kickoff meeting agenda, and any supporting meeting materials. • Additional data needs request.

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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-9

Task 2 LAFCO Meetings
Dudek understands that for a clear and effective annexation process, early and often interaction with the local LAFCO chapter is necessary. Building off the interaction and relationship building established in Phase I, Task 5.1 Pre-Application Meeting, Dudek will facilitate up to six (6) half-hour (30 minutes), virtual working meetings with LAFCO staff to ensure that the appropriate amount of detail and documentation is provided throughout the application process and to help answer questions along the way. For these meetings, Dudek will work with City staff to identify specific questions to discuss with LAFCO staff. Dudek will provide an internal agenda for each of the six (6) meetings. Additionally, Dudek will attend one (1) additional in-person meeting with LAFCO staff prior to application submittal. It is estimated that the full LAFCO application process (Phase II), barring any major disagreements between affected parties or stakeholders, will take up to 12 months. This, of course, depends on the project’s scope and level of impact which is yet to be determined.

Deliverables
• Internal agendas for up to six (6) half-hour (30 minutes) working meetings with LAFCO • Attendance at up to six (6) virtual half-hour (30 minutes), virtual working meetings with LAFCO • Attendance at one (1) in-person meeting with LAFCO staff Task 3 Application Preparation
As a whole, the LAFCO annexation process involves a multi-pronged, straightforward process. While the steps are clear and defined, navigating the process may be an art and typically involves multiple parties: the proponent of the application for annexation (in this case, the City of Indio), the affected County (in this case, Riverside County) and the local LAFCO authority.

Task 3.1 Application Preparation
Dudek will be responsible for compiling the City’s application for filing. The application will include the following materials:
•
Section A Initiation— A Resolution of Application by the City of Indio requesting the Riverside Local Agency Formation Commission to take proceedings for the change of organization. A sample resolution can be found on the Riverside LAFCO website, Application Packet: https://lafco.o rg/wp- content/uploads/documents/application-materials/APPLICATION_PACKET-COMPLETE_1pdf • Section B Application Form—The LAFCO application form. • Section C Plan of Service – Each proposal for a change of organization must be accompanied by a Plan of Services. The Plan of Services will build off the previous Phase I work and will further detail the plans of services needed. At a minimum, the Plan will include the type, level, range, timing, and financing of services to be extended, including requirements for infrastructure or other public facilities. Dudek will coordinate with City staff to obtain information and will compile a Plan of Services accordingly.

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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-10 • Section D Boundary Description -- LAFCO requires a sound boundary description that is acceptable to the surveying profession. Dudek’s surveying and GIS staff hold current and valid State of California licenses as Registered Surveyors or Registered Civil Engineers and will prepare a boundary description and map that adhere to the standards for Geographic Descriptions and Maps from the State Board of Equalization.

Dudek’s professional staff will follow the format and style required by the Riverside LAFCO application process. See Task 3.4 Boundary Description and Mapping for deliverables and assumptions. • Section E CEQA Compliance – Dudek will include the environmental documentation prepared as part of Phase I.
• Section F Fiscal Impact Report– Seeing as Area 3 is in excess of 100 acres, a Fiscal Impact Report is required. See Task 3.5 Fiscal Impact Analysis for a full scope of services per LAFCO requirements. • Section G Illustrative Maps—Dudek’s GIS team will prepare Assessor maps and other appropriate Exhibits as detailed in the Riverside LAFCO Application package, or through coordination with LAFCO staff. • Section H Fees (see assumptions below)
• Section I Sphere of Influence Amendment Supplemental Application – Since the proposed project area is outside of the City’s SOI, the City will need to complete a supplemental application. Dudek will assist the City in compiling this additional analysis per Riverside LAFCO requirements. • Section J Contribution Disclosure -- Anyone who is involved with any annexation to be considered by the Commission and who has made a contribution of more than $250 in the past twelve months to any member of the Commission must disclose the Commission member to whom the contribution was made and the matter of consideration with which they are involved. If applicable, Dudek will collect this information from City staff.

Deliverables
• Pre-application meeting agenda, and any supporting meeting materials (electronic copies) • Detailed pre-application completed checklist (electronic copy) • Draft and Final Application materials (per Riverside LAFCO requirements outlined above; electronic copies)
Assumptions
• The City will be responsible for all application, filing, and protest (if applicable) fees as described in the most current Riverside LAFCO application process. See Section H, Fees (https://lafco.org/wp- content/uploads/documents/application-materials/APPLICATION_PACKET-COMPLETE_1pdf) for the most recent fees as of January 2023.
• Dudek assumes that the City will be responsible for providing materials associated with Section A, Section H, and Section J as outlined above. The City will provide Dudek with the appropriate electronic or printed materials (excluding the fees associated with Section H) to include in the electronic submittal package.

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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-11 Task 3.2 Application Review and Approval
Prior to filing the application, City Council will review and approve the Application materials and provide a Resolution of Application. Dudek will finalize and package all documentation for public hearings and adoption, and a formal presentation. Dudek assumes attendance by up to two (2) Senior Dudek staff at up to one (1) Planning Commission hearing and one (1) City Council hearing.

Deliverables
• PowerPoint presentations for one (1) Planning Commission adoption hearing and for one (1) City Council adoption hearing. Dudek assumes in-person attendance and presentations provided by up to two (2) Senior Dudek staff.

Assumptions
• Dudek assumes that City staff will prepare any associated staff reports needed for each public hearing. • This scope does not include resources to support the protest process should the city’s application be denied for whatever reason. Should a protest take place, the City would have the option to augment Dudek’s existing contract, in good faith.

Task 3.3 Application Filing and LAFCO Review
Once all application materials have been prepared and approved per Task 3.2 Application Review and Approval, Dudek staff will support the City in filing the application. Dudek will provide all required components to the City as outlined in this scope.

Deliverables
• One (1) one-hour coordination meeting with the City to compile all files electronically for submittal.

Assumptions
• The City will be responsible for all application, filing, and protest (if applicable) fees as described in the most current Riverside LAFCO application process. See Section H, Fees ( https://lafco.org/wp-
content/uploads/documents/application-materials/APPLICATION_PACKET-COMPLETE_1pdf) for th e most recent fees as of January 2023.

Task 3.4 Boundary Description and Mapping
Dudek will provide survey and mapping services to satisfy the requirements of Section D and Section G outlined above.

Deliverables
• Draft and final project area boundary description (electronic copy) • Draft and final project area map and up to two (2) mapping exhibits (electronic copy).

Assumptions
• Dudek assumes two levels of review for each draft deliverable.

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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-12 Task 3.5 Fiscal Impact Analysis
Dudek will partner with Pro Forma Advisors to develop the Fiscal Impact Analysis. Pro Forma will prepare the Fiscal Impact Report (FIR) described in detail in the following section. The plan for this assignment can be described as a collaborative approach, in which Pro Forma will work closely with the City of Indio (City) and Riverside County (County) staff to identify key data sources for the model and define the methodology to be used in the fiscal impact model. The objective of our collaborative approach is to ensure that the City and County staff is familiar and comfortable with the sources required to drive the fiscal impact model and the methodology embedded in the model.

According to the LAFCO application, the FIR is needed to assess the impact on the affected agencies under two scenarios. First, a fiscal analysis of the annexation area as if it were to remain unincorporated. This FIR includes the net cost of all services provided by the County (both countywide and municipal services) through build-out.

Second, the FIR will determine the net cost of those County services assuming the planning area is annexed to the City. The impact of the annexation itself is the difference between these two scenarios. The detailed steps that we plan to follow in our work plan are described in the following section.

Project Orientation and Budget Data Collection

1. Collect economic studies and recent fiscal analysis (if any) for review.

2. Collect the most recent County and City budgets and tax data applicable to the analysis, including:
a. Property tax distribution and applicable pre-existing agreements (tax rate area and distribution) b. Special tax rates and distribution factors (sales/use, utility users, etc.) c. Any existing special fees including infrastructure, development mitigation, etc. d. Existing special assessments

Interview Departments
Based on our experience, we understand that fiscal analysis rarely follows a “one size fits all” approach, even in areas that follow similar regulatory frameworks and broad fiscal policies. It is important to understand the functions, responsibilities, and cost allocation methods of each major service providing department:

1. Pro Forma will interview key service providing departments, as needed, such as Police, Fire, Maintenance Services, Parks and Recreation, and others as applicable.

2. Pro Forma will consult with the City and County’s Finance department to understand fixed and variable costs to derive “net costs” that need to be covered by discretionary revenues.

3. Pro Forma will interview any other relevant agencies to understand specific development related issues that may affect the analysis.

Collect Current and Proposed Land Use Information

1. Collect relevant real estate market information to estimate reasonable build out timing by land use.

2. Pro Forma will utilize the current land use inventory in the base (existing land use or no change) and annex alternatives to illustrate buildout conditions to derive the net incremental change for the planning scenarios.

Consolidate Cost and Revenue Drivers

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Planning, Consulting, and Preparing the Environmental Documentation Services for the Annexation of Area 3, City of Indio A-13

1. Estimate increment in population, dwelling units, and employment by land use and developed acreage in the County and City.

2. Estimate major service demand distribution by land use type (fire, public safety, etc.)

3. Collect relevant real estate market information to develop a matrix of land values by type of use.

4. Estimate values of other revenue sources based on current pro rata share of population, employment, dwelling units, “Equivalent” dwelling units, lane miles, park acres or developed acreage as applicable.

5. Estimate expenditure volumes based on pro rata share of population, employment, and dwelling units under each planning scenario.

Prepare Special Models for Selected Cost and Revenue Items Although Pro Forma will project most of the cost and revenue items using a series of “demand drivers” and pro- rata shares as described above, a number of key line items will be calculated by developing special models. For illustrative purposes, these would include (as applicable):

1. Property Taxes – Pro Forma will develop a property tax revenue calculation model that takes into account:
a. Proposition 13 limitations
b. Appreciation and turnover rates

2. Sales Taxes – Pro Forma typically allocates taxable sales growth to growth in retail market segments in the market area, as opposed to merely allocating a value to each retail parcel. This methodology accounts for market conditions, competitive environment, potential recapture of leakage, and “cannibalization” of existing retail development, and paints a clearer picture in terms of “net” impacts.

3. The potential capture of retail expenditures under each scenario will vary depending upon variety of retail capacity.

4. Fire Services – Since fire costs are typically “stair-stepped” depending on existing service capacity, and future incremental station needs, these will be calculated separately based on our discussions with the respective Fire departments that may provide future service to the planning area.

5. Others as applicable.

Model Net Fiscal Impacts
Pro Forma will configure the fiscal impact model to reflect the relevant General Fund structure, revenue sources, land use information, existing level of service, and associated municipal costs for the City and County. The fiscal impact model will be used to calculate incremental fiscal costs and revenues under both planning scenarios. The model will be the basis of the FIR that will be delivered in connection with the County’s LAFCO application.

Deliverables
• List of data needs from the City and County, including economic studies, recent fiscal analyses, budgets, tax data, etc.

• Final Fiscal Impact Report (electronic copy)

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City of Indio
P223073 (Annexation Projects)

DUDEK FEE ESTIMATE
01/26/2023
Project Team Role:

Project
Director/Environm
ental Specialist IV Specialist IV GIS Analyst IV Analyst II Survey Lead Senior Specialist
III Specialist IV
Team Member: Asha Bleier Laurie Grover Danielle Berger GIS Analyst IV Grant Sles Survey Lead Sean Kilkenny Chelsea
Ohanesian
Billable Rate: $265.00 $175.00 $175.00 $165.00 $105.00 $185.00 $225.00 $175.00 Hours Fee Task 1 Pre-Annexation

1.1 Project Management 10 30 10 10 18 78 $15,050.00 $15,050.00

1.2 GPA and PreZoning 1 15 60 76 $9,190.00 $455.00 $9,645.00

1.3 GIS 1 20 21 $3,565.00 $3,565.00

1.4 Public Engagement 1 20 40 20 81 $12,865.00 $955.00 $13,820.00

1.5 Preliminary Steps for LAFCO Application 1 15 8 8 32 $5,130.00 $682.50 $5,812.50

1.6 CEQA

1.6.1 Administrative Draft 60 134 194 $36,950.00 $36,950.00

1.6.2 Public Review Draft 10 25 35 $6,625.00 $6,625.00

1.6.3 Final Mitigated Negative Declaration 10 15 25 $4,875.00 $4,875.00 Subtotal Task 1 14 80 58 20 88 90 192 542 $94,250.00 $2,092.50 $96,342.50 Task 2 Full Annexation (Area 3)

2.1 Project Management 6 80 30 10 126 $21,890.00 $21,890.00

2.2 LAFCO Meetings 5 40 40 10 95 $16,375.00 $227.50 $16,602.50

2.3 Application Preparation 5 80 80 100 100 365 $57,525.00 250 $50,312.50 $1,455.00 $109,292.50

2.4 CEQA 8 8 $1,800.00 $1,800.00
Subtotal Task 2 16 200 70 80 120 100 8 594 $97,590.00 $1,682.50 $149,585.00 Total Hours 30 280 128 100 208 100 98 192 1136 250
Total $7,950.00 $49,000.00 $22,400.00 $16,500.00 $21,840.00 $18,500.00 $22,050.00 $33,600.00 $191,840.00 $50,312.50 $3,775.00 $245,927.50 Percent of Hours (Base) 3% 25% 11% 9% 18% 9% 9% 17%

OTHER DIRECT

COSTS TOTAL FEE
Pro Forma
Dudek Labor Hours and Rates Subconsultant Fees
TOTAL
DUDEK
HOURS

DUDEK LABOR
COSTS
General Services
Dudek Project Budget Created 3/6/20236:14 PM Page 1 of 1

AGENDA ITEM #11.2
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City Council
March 15, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Kevin H. Snyder, Dir. Of Community Development Subject: Urgency Ordinance No. 1791, an interim measure imposing a moratorium on the self new of operation construction, establishment use, or -storage facilities, mini -storage facilities and recreational vehicle storage facilities within the City of Indio

RECOMMENDATION:

Waive full reading of Urgency Ordinance No. 1791 , request the City Clerk to read the Ordinance by title only and adopt Urgency Ordinance No.1791 adopting an interim measure imposing a moratorium on the use, construction, establishment or operation of new self -storage facilities, mini -storage facilities and recreational vehicle storage facilities within the City of Indio

SUMMARY:

Urgency Ordinance No. 1791, an interim measure imposing a moratorium on the use, construction, establishment or operation of new self-storage facilities, mini-storage facilities and recreational vehicle storage facilities within the City of Indio

BACKGROUND INFORMATION:

California Government Code Section 65858.a specifies the provisions under which a legislative body can enact a moratorium on the use, construction, establishment or operation of certain land uses when the legislative body believes there is a threat to the public health, safety and welfare of a community. Specifically this Section states: "Without following the procedures otherwise required prior to the adoption of a zoning ordinance, the legislative body of a county, city, including a charter city, or city and county, to protect the public safety, health, and welfare, may adopt as an urgency measure an interim ordinance prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the l egislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time. That urgency measure shall require a four-fifths vote of the legislative body for adoption. The interim ordinance shall be of no further force and effect 45 days from its date of adoption. After notice pursuant to Section 65090 and public hearing, the legislative body may extend the interim ordinance for 10 months and 15 days and subsequently extend the interim ordinance for one year. Any extension shall also require a four-fifths vote for adoption. Not more than two extensions may be adopted."

On December 12, 2022 Planning Commission requested Community Development Department staff to research and present findings on stor age facilities within the City of Indio. As identified by the Commission, these storage facilities include indoor/outdoor mini -storage also known as self -storage or mini -storage facilities and/or indoor/outdoor recreational vehicle (RV) storage facilities. The AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 297 of 345 Commission requested that staff provide information on the current number of permitted storage facilities in the City, the number of facilities that have been entitled but not constructed, the number of inquiries within the last year regarding these t ypes of facilities and the number of facilities bordering the City of Indio in the Cities of Coachella, La Quinta, Palm Desert, and unincorporated Bermuda Dunes.

On January 11, 2023, Community Development Department staff presented as an agendized discussion item to the Planning Commission the results of the requested research. The following is a summary of staff findings:

The presence of fifteen (15) existing and active facilities in the City The total of four (4) pending additional facilities currently going through the City’s land use entitlement approval processes.

The total of three (3) facilities that have received land use entitlement approvals and are pending required engineering or building approvals.

The receipt of nine (9) inquiries regarding p otential additional storage facilities within the City during 2022.

The current market focus on the City for these types of facilities and the limited number of current facilities outside the City inclusive of two (2) facilities in the City of Coachella, three (3) facilities in the City of La Quinta, three (3) facilities in the City of Palm Desert and one (1) facility in unincorporated Bermuda Dunes.

The limited economic benefit of such facilities in terms of property tax generation, sales tax generation and employment generation.

The current limited supply of light industrial and heavily industrial zoned lands within the City and the potential loss of future economic opportunity for the City through the continued absorption and utilization of this limited land supply for self -storage facilities, mini-storage facilities and recreational vehicle storage facilities

At the conclusion of its discussion on this matter on January 11, the Commission directed staff to agendize this topic as an action item for the January 25, 2023 agenda so that it could consider a potential recommendation to the City Council on possible next steps. At the January 11 meeting, the Commission also asked if there was any market demand information available. Staff contacted The Rancon Group who is developing a self-storage facility in the City and had offered to provide the City with a copy of its market study (attached). At its January 25 meeting, the Commission did not discuss this item instead directing staff to place it on the action portion of the February 8, 2023 meeting agenda for discussion and potential action.

During the Commission's public discussions regarding these facilities, the Commission received two (2) public comments. One speaker, Polo Doria, is with Lee and Associates, a commercial land brokerage firm who encouraged the Commission to not recommend a moratorium. The other speaker was Dan Long, The Rancon Group, who discussed the market forces behind his company's decision to build a facility in the City, but do not specify a viewpoint on potential actions that the Commission could consider.

Staff iden tified the following options that the Commission could take action on relative to these facilities:

Option 1 - Commission take no actions and no changes are made to current zoning regulations for indoor/outdoor mini-storage (also known as self-storage) facilities and/or indoor/outdoor recreational vehicle (RV) storage facilities within the municipal limits of the City of Indio

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 298 of 345 Option 2 - Commission take no action and direct staff to prepare additional information for future discussion on topics identified by the Planning Commission regarding current zoning regulations for indoor/outdoor self-storage or mini -storage facilities and/or indoor/outdoor recreational vehicle (RV) storage facilities within the municipal limits of the City of Indio Option 3 - Commission recommend to the City Council that there be amendments to the City's Unified Development Code to prohibit new indoor/outdoor self -storage or mini -storage facilities and/or indoor/outdoor recreational vehicle (RV) storage facilities within the municipal limits of the City of Indio Option 4 - Commission recommend to the City Council that there be amendments to the City's Unified Development Code to Amend to limit the number or location or concentration of indoor/outdoor self - storage or mini -storage fa cilities and/or indoor/outdoor recreational vehicle (RV) storage facilities within the municipal limits of the City of Indio
Option 5 - Commission recommend to the City Council the adoption of a moratorium consistent with statutory provisions to allow the Council, Commission and staff further time to analyze the regulation of mini indoor/outdoor -self as (also storage known -indoor/outdoor facilities storage) and/or recreational vehicle (RV) storage facilities within the municipal limits of the City of Indio while not allowing any new applications for these facilities during the effective period of the moratorium

At the conclusion of its discussion on February 8, the Planning Commission on a 5 -0 motion vote recommended to the City the adoption of a moratorium consistent with statutory provisions.

The City Council's decision to adopt the Urgency Ordinance would need to be by at least a four-fifths (4/5) vote. The Urgency Ordinance would if adopted by the City Council would establish a moratorium that would be immediately in effect. Thereafter for a period of forty -five (45) days, no approvals may be made or issued by the City, its officers or employees of any applications for a use permit, variance, building permit, business license or any other applicable entitlement or permit, for the use of any land within the City or the construction, establishment or operation of self -storage facilities, mini -storage facilities and recreational vehicle storage facilities For the period of this Ordinance, or any extension thereof, a self-storage facilities, mini-storage facilities and recreational vehicle storage facilities shall be considered a prohibited use in any zoning district of the City and neither the City Council nor City staff shall approve any use permit, license , certificate of occupancy, zoning code or general plan amendment authorizing the use of any land within the City as self -storage facilities, mini -storage facilities and recreational vehicle storage facilities.

The Ordinance specifies that self -storage facilities, mini -storage facilities and recreational vehicle storage facilities shall mean any building, equipment, facility or any other type of structure erected, placed, located or maintained that provides for t he storage of private and personal real property, vehicles and equipment. The Urgency Ordinance also specifies that the moratorium shall not be interpreted as affecting the use or operation of any:

• Legally existing self -storage facilities, mini -storage facilities and recreational vehicle storage facilities in the Cityor
• Self-storage facilities, mini-storage facilities and recreational vehicle storage facilities that have not yet been completed but which are subject to:
o A vesting tentative map; or
o Development agreement; or
o For which a building permit has been issued and in good faith reliance on such issuance substantial work has been completed and substantial liabilities incurred.

The City Council's ena ctment of the moratorium recommended by the Planning Commission would provide the opportunity for the City Council, the Planning Commission, community members, staff and interested parties to engage in thoughtful and factual policy discussions on the appro priate land use

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 299 of 345 regulations for these facilities. During the effective period of the moratorium, the City would be able to effectively manage the public health, safety and welfare concerns identified by the Planning Commission by limiting applications for a use permit, variance, building permit, business license or any other applicable entitlement or permit, for the use of any land within the City or the construction, establishment or operation of self -storage facilities, mini -storage facilities and recreat ional vehicle storage facilities.

The Urgency Ordinance directs that the City Manager or designee shall prepare the report required by paragraph (d) of California Government Code Section 65858 describing the measures taken to alleviate the condition which led to adoption of this Ordinance for presentation to the City Council no later than ten (10) days prior to the expiration of this Ordinance. At this time, the Council may consider extending the moratorium for up to a maximum period of 10 months and 15 days.

The Community Development Di rector has determined that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) an d 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and it prevents changes in the environment pending the completion of the contemplated municipal code review.

ATTACHMENTS:

Attachment 1_UrgencyOrdinanceNo.1791
Attachment2_Map_Storage Facility Study
Attachment3_List_Storage Facility Study 22-23
Attachment4_TheRanconGroup_Self Storage Market Study
Attachment5_ModifiedUrgencyOrdinanceNo1791

APPROVAL(S):

Steven Graham, City Attorney Approved - 07 Mar 2023
Bryan H. Montgomery, City Manager Approved - 08 Mar 2023

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 300 of 345

1 ORDINANCE NO. 1791

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF INDIO,

CALIFORNIA, ADOPTING AN INTERIM MEASURE IMPOSING A MORATORIUM ON

THE USE, CONSTRUCTION, ESTABLISHMENT OR OPERATION OF NEW SELF-

STORAGE FACILITIES, MINI-STORAGE FACILITIES AND RECREATIONAL VEHICLE

STORAGE FACILITIES WITHIN THE CITY OF INDIO
WHEREAS, pursuant to the City of Indio’s police power, the City Council of the City of Indio ("City Council") has the authority to enact and enforce ordinances and regulations for the public peace, morals and welfare of the City and its residents; and WHEREAS, California Government Code Section 65858 provides that, without following the procedures otherwise required prior to the adoption of a zoning ordinance and for the purpose of protecting the public safety, health and welfare, the City Council may adopt, as an urgency measure, an interim ordinance prohibiting any uses which may be in conflict with “a contemplated general plan, specific plan, or zoning proposal that the City Council, planning commission or the planning department is considering or studying or intends to study within a reasonable time”; and
WHEREAS, the Planning Commission for the City of Indio recommended on February 8, 2023 on a 5 to 0 motion the enactment of a moratorium on self-storage facilities, mini - storage facilities and recreational vehicle storage facilities following prior discussions on the land use and economic development implications of such facilities at duly advertised public meetings relative to the land use and economic development vision, goals and policies of the City of Indio General Plan 2040 adopted on September 18, 2019; and WHEREAS, the City Council is concerned that self-storage facilities, mini -storage facilities and recreational vehicle storage facilities may be incompatible with the public health and safety of Indio and the City Council bel ieves that careful consideration and thorough study of potential regulations pertaining to these facilities is required; and WHEREAS, to address community concerns regarding the planned proliferation of self- storage facilities, mini -storage facilities and recreational vehicle storage facilities , it is necessary for the City Council study the potential impacts such uses may have on the public health, safety and welfare; and
WHEREAS, based on the foregoing and those matters determined at the meeting at which this Ordinance is introduced and adopted, the City Council finds the use, construction, establishment and/or operation of self-storage facilities, mini -storage facilities and recreational vehicle storage facilities would pose a cur rent and immediate threat to the public health, safety or welfare, and that a temporary moratorium is thus necessary; and
WHEREAS, this Ordinance is an interim urgency ordinance adopted pursuant to the authority granted to the City by Government Code Section 65858 and is for the immediate

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 301 of 345

2 preservation of the public health, safety and welfare. The facts constituting the urgency are:

1. The City is concerned with the public nuisance caused by self-storage facilities, mini-storage facilities and recreational vehi cle storage facilities , involving the following:

a. The presence of fifteen (15) existing and active facilities in the City b. The total of four (4) pending additional facilities currently going through the City’s land use entitlement approval processes.
c. The total of three (3) facilities that have received land use entitlement approvals and are pending required engineering or building approvals. d. The receipt of nine (9) inquiries regarding potential additional storage facilities within the City during 2022.
e. The current market focus on the City for these types of facilities and the limited number of current facilities outside the City inclusive of two (2) facilities in the City of Coachella, three (3) facilities in the City of La Quinta, three (3) facilities in the City of Palm Desert and one (1) facility in unincorporated Bermuda Dunes.
f. The limited economic benefit of such facilities in terms of property tax generation, sales tax generation and employment generation. g. The current limited supply of light industrial and heavily industrial zoned lands within the City and the potential loss of future economic opportunity for the City through the continued absorption and utilization of this limited land supply for self-storage facilities, mini -storage facilities and recreational vehicle storage facilities.

2. The City Council desires to investigate and study the impacts of self-storage facilities, mini-storage facilities and recreational vehicle storage facilities; and

3. Absent the adoption of this Ordinan ce, the use, construction, establishment or operation of self-storage facilities, mini -storage facilities and recreational vehicle storage facilities in the City may pose a serious threat to public health and safety, introducing incompatible land uses to existing neighborhoods or in close proximity thereto; and

4. Absent the adoption of this Ordinance, the number and location of self-storage facilities, mini -storage facilities and recreational vehicle storage facilities may increase the burden upon City services; and

5. As a result, it is necessary to establish a temporary, forty-five (45) day moratorium on the use, construction, establishment and/or operation of self-storage facilities, mini-storage facilities and recreational vehicle storage facilities in the City, pending completion of the City's study of the potential impacts; and

AGENDA ITEM #11.3
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3 6. In addition, it is necessary to prohibit, as a public nuisance, the use of any structure for self-storage facilities, mini -storage facilities and recreational vehicle stora ge facilities for the duration of this Ordinance, or any extension thereof; and WHEREAS, the City Council determines, by at least a four -fifths (4/5) vote, that this urgency ordinance is a matter of City -wide importance, is a reasonable and necessary measure designed for the immediate preservation and protection of the public health, safety or welfare of the community, and is in accord with the public purposes and provisions of applicable State and local laws and requirements.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES ORDAIN AS FOLLOWS:

SECTION 1. CEQA.

The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and it prevents changes in the environment pending the completion of the contemplated municipal code review.

SECTION 2. INCORPORATION.

The recitals and statements of fact set forth in t he preamble to this Ordinance are true and correct, constitute a substantive part of this Ordinance, and are incorporated herein by this reference. Based on those facts, the City Council finds, determines and declares that this Ordinance is necessary as an emergency measure for the immediate preservation of the public peace, health or safety pursuant to, and as authorized by, Section 65858(a) of the California Government Code. Accordingly, this Ordinance shall become effective immediately upon adoption.

SECTION 3. DIRECTION; DEFINITION.

It is necessary to establish a temporary, forty -five (45) day moratorium on the use, construction, establishment and/or operation of new self-storage facilities, mini -storage facilities and recreational vehicle storage facilities pending completion of the City's study of the potential impacts and regulation of such, and possible amendments to the City's zoning ordinance and related provisions of the Indio Municipal Code to ensure that adequate development standards and i mplementation regulations are in effect prior to permitting such within the City of Indio. To that end, the City Manager is directed to analyze the appropriateness of self-storage facilities, mini -storage facilities and recreational vehicle storage facilities within the city limits of the City of Indio, including but not limited to, the desirability, appropriateness and effectiveness of development standards and regulatory controls.

AGENDA ITEM #11.3
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4 For purposes of this Ordinance, self-storage facilities, mini -storage faci lities and recreational vehicle storage facilities shall mean any building, equipment, facility or any other type of structure erected, placed, located or maintained that provides for the storage of private and personal real property, vehicles and equipment.

This moratorium shall not be interpreted as affecting the use or operation of any:

1. Legally existing self-storage facilities, mini -storage facilities and recreational vehicle storage facilities in the City; or

2. Self-storage facilities, mini -storage facilities and recreational vehicle storage facilities that have not yet been completed but which are subject to:
a. A vesting tentative map; or
b. Development agreement; or
c. For which a building permit has been issued and in good faith reliance on such issuance substantial work has been completed and substantial liabilities incurred.

SECTION 4. MORATORIUM ESTABLISHED.

In accordance with the authority granted to the City of Indio by California Government Code Section 65858 and for the reasons set forth herein above, commencing as of the effective date of this Ordinance and continuing thereafter for a period of forty -five (45) days, no approvals may be made or issued by the City, its officers or employees of any applications for a use permit, variance, building permit, business license or any other applicable entitlement or permit, for the use of any land within the City or the construction, establishment or operation of self-storage facilities, mini-storage facilities and recreational vehicle storage facilities For the period of this Ordinance, or any extension thereof, a self- storage facilities, mini-storage facilities and recreational vehicle storage facilities shall be considered a prohibited use in any zoning district of the City and neither the City Council nor City staff shall approve any use permit, license, certificate of occupancy, zoning code or general plan amendment authorizing the use of any land within the City as self-storage facilities, mini-storage facilities and recreational vehicle storage facilities.

SECTION 5. PROHIBITION.

No person shall commence , construct, establish, or operate any self-storage facilities, mini-storage facilities and recreational vehicle storage facilities , as defined in this Ordinance, within the City limits of the City of Indio during the period this Ordinance is in effect.

SECTION 6. VIOLATION A PUBLIC NUSIANCE.

The construction, establishment or operation of any self-storage facilities, mini -storage facilities and recreational vehicle storage facilities as defined in this Ordinance, within the city limits of the City of Indio during the period this Ordinance is in effect is declared to be a public nuisance and poses a current and immediate threat to the public health, safety and welfare. No property in any zone of the City is to be used for purposes of a self-

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 304 of 345

5 storage facilities, mini -storage facilities and recreational vehicle storage facilities during the period this Ordinance is in effect. The use of any property for such purpose shall be a public nuisance. A violation of this Ordinance shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of the City, create a cause of action for injunctive relief as well a s any other available civil remedies. Additionally, any person that violates this Ordinance may be subject to the City's applicable administrative remedies.

SECTION 7. SEVERABILITY.

The City Council of the City of Indio hereby declares that should any section, paragraph, sentence, phrase, term or word of this Ordinance be declared for any reason to be invalid; it is the intent of the City Council that it would have adopted all other portions of this Ordinance independent of the elimination here from of any such portion as may be declared invalid. If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions o f this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sen tence, clause or phrase had been declared invalid or unconstitutional.

SECTION 8. REPORT.

The City Manager is authorized and directed to prepare the report required by paragraph (d) of California Government Code Section 65858 describing the measures taken to alleviate the condition which led to adoption of this Ordinance for presentation to the City Council no later than ten (10) days prior to the expiration of this Ordinance.

SECTION 9. EFFECTIVE DATE; FOUR-FIFTHS VOTE REQUIRED.

This Ordinance shall become effective immediately upon adoption if adopted by at least a four-fifths (4/5) vote of the total members of the City Council and shall be in effect for forty-five (45) days from the date of adoption, unless extended by the City Council as provided in California Government Code Section 65858.

SECTION 10. PUBLICATION.

The City Clerk shall certify to the passa ge of this Ordinance and shall cause this Ordinance or a summary thereof to be printed once within fifteen (15) days after its adoption in a newspaper of general circulation, published and circulated in the City of Indio.

PASSED, APPROVED AND ADOPTED this 15th day of March, 2023.

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 305 of 345

6 OSCAR ORTIZ
MAYOR

ATTEST:

CYNTHIA HERNANDEZ, CMC

CITY CLERK

APPROVED AS TO FORM:

STEVEN GRAHAM

CITY ATTORNEY

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 306 of 345 ge 9
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5 PRIMESTORAGEINDIOLlASP-INDIOIISELFSTORASAFEGUARDSELFSTORACPA VILIONRVSTORAGESTORQUESTINDIO/JACl<10 SELFSTORAGE11 STORQUESTINDIO/DR12 BENLORVSTORAGE13 SHIELDSSTORAGE14 STORAMERICA15 CRUISINGCONESLLC16 EXTRASPACESTORAGE17 INDIOPALMSRVSTORAG18 INDIOSELFSTORAGE1920 STORQUESTSELFSTORA(STORQUESTSELFSTORA(22 EXTRASPACESTORAGE3 LIFESTORAGE4 LIFESTORAGE25 EXTRASPACESTORAGE26 SECURITYPUBLICSTORA(27 LUXTORRV28 COACHELLASELFSTORAG29 PotentialSelfStorageFacil30 PotentialSelfStorageFacil31 ENTERSPRISESELFSTORI32 PotentialSelfStorageFacil33 WESTCOASTSTORAGEFl34 PotentialSelfStorageFacil35 PotentialSelfStorageFacil —lO-<03OX2cm9—l>2Uin-4[U
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36 RANCHRVANDSELFSTOI37 PotentialSelfStorageFacilStorageFacilities.Active(24)0Inquiry(6).Planning-Approved(4).Planning-Pending(3)DCityBoundary I7LLC-CoachellaValleyStorage\ ’
_C.GELLC-ASTORAGEPLACESELLCISONIARREONe

ORAGESESE

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ...Page 307 of 345 Name of Storage Facility Address City Type of Storage Zone Designation Status 760 TOWING LLC 83700 INDIO BLVD Indio Outdoor Storage Heavy Industrial (IH) Active A STORAGE PLACE-INDIO LLC - Coachella Valley Storage 46148 MARILYN ST Indio Self Storage Highway 111 Specific Plan (NG) Active AAA STORAGE OF INDIO 82521 MARKET ST Indio Self Storage Heavy Industrial (IH) Active ALL INSIDE RV STORAGE 84401 CABAZON CENTER DR Indio Outdoor Storage Heavy Industrial (IH) Active ASP-INDIO II SELF STORAGE LLC - A STORAGE PLACE 83050 AVENUE 45 Indio Self Storage Light Industrial (IL) Active PRIME STORAGE INDIO LLC 42925 MADISON ST Indio Self Storage Light Industrial (IL) Active SAFEGUARD SELF STORAGE LLC 80166 HIGHWAY 111 Indio Self Storage Highway 111 Specific Plan (NG) Active STORQUEST INDIO / JACKSON 42625 JACKSON ST Indio Self Storage Regional Commercial (RC) Active PAVILION RV STORAGE 84350 CABAZON RD Indio Self Storage Heavy Industrial (IH) Active SELF STORAGE 45800 FLOWER ST Indio Self Storage Highway 111 Specific Plan (NG) Active STORQUEST INDIO / DR CARREON 83614 DR CARREON Indio Self Storage Light Industrial (IL) Active BENLO RV STORAGE 84420 CABAZON RD Indio RV Storage Heavy Industrial (IH) Active SHIELDS STORAGE 47550 SHIELDS RD Indio RV Storage Mixed Use Neighborhood (MUN) Active STORAMERICA 43421 MONROE ST Indio Self Storage Neighborhood Center (NC) Active TOYBOX RV BOAT AND STORAGE 41700 JACKSON ST Indio RV Storage Suburban Neighborhood-8 (SN-8) Active EXTRA SPACE STORAGE 82815 AVENUE 42 Indio Self Storage Light Industrial (IL) Planning - Approved CRUISING CONES LLC 612-110-041 Indio RV Storage Heavy Industrial (IH) Planning - Pending INDIO PALMS RV STORAGE 45755 COMMERCE ST Indio RV Storage Heavy Industrial (IH) Planning - Approved INDIO SELF STORAGE 610-030-001 Indio Self Storage Light Industrial (IL) Planning - Approved RANCH RV AND SELF STORAGE 83734 DR CARREON Indio Self Storage Light Industrial (IL) Planning - Approved WEST COAST STORAGE FACILITIES 612-130-008 Indio RV Storage Light Industrial (IL) Planning - Pending ENTERSPRISE SELF STORAGE 611-410-065, 066, 067, 068, 070, 071, 072, 075 Indio RV Storage Heavy Industrial (IH) Planning - Pending STORQUEST SELF STORAGE 47350 DUNE PALMS ROAD La Quinta Self Storage Active STORQUEST SELF STORAGE 79315 HWY 111 La Quinta Self Storage Active EXTRA SPACE STORAGE 46600 ADAMS ST La Quinta Self Storage Active EXTRA SPACE STORAGE 78265 COUNTRY CLUB Bermuda Dunes Self Storage Active LIFE STORAGE 40050 HARRIS LANE Palm Desert Self Storage Active LIFE STORAGE 39700 GARAND LN Palm Desert Self Storage Active SECURITY PUBLIC STORAGE 39505 BERKEY DR Palm Desert Self Storage Active COACHELLA SELF STORAGE & RV 49901 OATES LN Coachella Self Storage Active LUXTOR RV 49751 OATES LN Coachella RV Storage & Service Active Potential Self Storage Facility 691-190-040 Indio Self Storage Regional Commercial (RC) Inquiry Potential Self Storage Facility 691-070-017 Indio Self Storage Light Industrial (IL) Inquiry Potential Self Storage Facility 691-120-011 Indio Outdoor RV Storage Sun City PMP Inquiry Potential Self Storage Facility 610-270-076 Indio Self Storage Light Industrial (IL) Inquiry Potential Self Storage Facility 611-410-030 Indio Warehouse Self Storage Heavy Industrial (IH) Inquiry Potential Self Storage Facility 606-060-002 Indio Garage Storage Light Industrial (IL) Inquiry

OUTSIDE OF INDIO

PENDING FACILITIES
Recent Inquired Locations

AGENDA ITEM #11.3
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II.

MARKETANALYSISFORAPROPOSEDSELF-STORAGEPROJECTONAN8.25-ACRESITEININDIO PreliminaryReport,1746September232021

SUBJECTSITEANDPROPOSEDPROJECT
.Thoughthesiteisonalowtrafficvolumestreet,itwillbene?tfromvisitorstotheadjacentStorQuestfacility,whichhasanestablishedimage.DoctorCarreonBlvdhasdirectlinkstoHwy111onthewestandeast.Hwy111linkstotheI-10FreewayviaGolfCenterParkwayjusttothenorthofthesite.Thecurrentplanenvisionsl50.000SF:ofnetrentablespace,withtwoperimeterbuildingsandalargecentralbuilding.ThesitewillalsoaccommodateRVstorage.

COMPETITION
GiventhelocationofthesiterelativetotheI-10Freewayandothermajorroads,thecompetitivemarketarea(CMA)iscomprisedofanoblongshapeasshowninExhibitA.TheTablelsummaryindicatesthatthereare11facilitiesintheCMAthatcomprise69l,l00SFofnetrentablespace,withanaveragesizeof62,827SFperproject.Theestimatedoverallspacevacancyfactorisanexceptionallylow0.8%indicatingthatmostprojectsareessentiallyfull.Noneoftheseisnewenoughtoassessaninitialrent-uprate,butthenearzerovacancyfactorindicatesaverystrongmarket.Table2illustratesthewidespectrumofrentsforeachsizecategoryandthatmostunitsaredrive-ups.Thistablealsoprovidesaveragerent/SFnumbersforeachsizeandcondition.Premiumsfordrive-upsandclimate-controlledunitscannotbecalculatedduetotheverysmallsample.Previousstudieshaveidenti?edapremiumof15%fordrive-upconditions.Itisalsotrue,however,thatsomeuserspreferground?oorconditionsduetoaperceptionthattheyarecleaner. 4540CampusDrive,Suite100,NewponBeach,CA.92660— 949-733-9993,[email protected]!

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7. 10.
ll.

13. 14.

15. 16.

17. 18.

19. 20.

Inpreviousstudies,Ialsoidenti?edanaveragepremiumof35%:forclimate-controlledspace.Duetothelackofground?oorrents,theclimate—controlledpremiummustbecomparedtodrive-upconditions.Givena15%premiumfordrive-ups.thenetpremiumforclimate-controlledspacecomparedtodrive-upsis20%.TheTable3graphillustratestherelativerentpositioningforeachproject.ThisgraphshowsthatAStoragePlace#6andPrimeStorageareatthehighendoftherentspectrum,whileStorAmerica#5isatthelowend.Thisgraphalsoprovidesanindicationofthewidespreadfromlowtohighrentsforallsizecategories,witharangefrom32%forlOx25sto95%for5x15’sandanaverageof61%.Theseradicalswingsinrentsillustratethefactthatrentsaretypicallysetonadailybasisdependingontheamountofspaceininventoryforanygivensize.Inthiscase,thelimitednumberofunitsavailableresultsindistortedrates.Thus,rentsshouldbeviewedasapproximateindicatorsofpotential,notabsolutes.Also.mid-pointrentsaremorereliableindicatorsofachievablerents,sincetheytendtocancelthe“outliers.”.AveragerentsbyspacesizeshowninTable4indicateadeclineof$0.12/SFforeachIOSFofsizeincreasefromthe5x10to10x10and$0.03/SFfrom10x10to10x15.Thisrelationshipistypicalforasuburbanmarketandsuggestsrobustdemandforlargerspacetypes.The"spacepro?le“fortheCMAshowninTable5indicatesthatthe5x10&10x10sizesarepredominantintermsofunits,whilethel0x10’sandl0x20’sdominateintermsofspace.Thesearenormalrelationshipsforasuburbanmarket.Vacancydatabyspacesizeillustratesthatthelargerunitsexperienceahighervacancyfactor.Thisisatypicalandismostlikelyskewedduetotheverylimitedinventoryofavailableunits.TheschematicabsorptionmodelpresentedinTable6showsthatfrom2001through2007anaverageof48,000SFofnewspaceperyearwasabsorbed.Aftersevenyearsofnonewspace,themarketabsorbedanother53,000SFduring2015and2016.Ithasnowbeenanother?veplusyearswithoutnewspaceintheCMA.Thelackofnewspace,coupledwiththeexceptionallylowvacancyfactor.provideastrongindicationofpent-updemand.MyinvestigationofprojectscurrentlyplannedforfuturedevelopmentintheCMArevealedthatthereisoneasshowninTable7.StorQuestwilldevelopaprojectof50.000SFnetrentablespaceonthenorthsideoftheI—l0FreewayatthenorthernfringeoftheCMA.DependingontheactualdevelopmenttimingforStorQuest,itislikelythatitwouldenterthemarketbeforetheproposedproject.Thistimingandthefringelocationsuggestthatitscompetitivein?uencewillbeminimal.Giventheindustryfocusonself-storageandthelowvacancyfactoritispossiblethatanotherprojectcouldenterthemarketatsometimeduringtheinitialrent-upperiodfortheproposedproject. l\)

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III.

1. 5;)

10. ll.

12. 13.

MARKETDEMAND
ThedemographicsummaryshowninTable8indicatesapopulationbaseof128,400,withaprojectedincreaseto141,000by2026.Thisexpressesa2%growthratecomparedto1%forCalifornia.ThishigherrateisduetotheamplevacantlandintheCMAforfutureresidentialdevelopment.Thus.thisareaiswheremostofthefuturegrowthoftheCoachellaValleywilloccur.Thepercentageofownerhouseholdsat62%iswellabovetheaverageof56%forCalifornia,butthemedianincomeof$45,100issubstantiallybelow$67,100forthestate.Thelargeamountofsecondhomes/homeownerssigni?cantlyskewsthisnumbertoahigheramount.Thelargepercentageofhouseholdsinthe35to54groupispositive,sincethisgroupisinthepeakyearsofacquiringhousehold,businessandrecreationalgoods.Similarly,the55+groupishighlypositivesincemostareinamove-downmode;thus,inneedofstorageforitemsnolongerinuse.Theforegoingfactorsarefavorableforself-storagedemandandsuggestafocusonlargersizes.Table9indicatesthatmostoftheprojectsreceivesomemarketsupportfromoutsidetheCMA.Thepercapitausefactorat3.74SFderivedfromTable9iswellunderthestateat5.53SF.Thislowpercapitasupportstheconclusionrelativetopent-updemandandaneedforadditionalspaceintheCMA.Thelong-termtrendforpercapitahasaverageda4%:annualincrease.Recentreadingshavebeenlower,indicatingthata3%rateshouldbeamorereasonablepredictorofthefuturetrend.Thecombinationofagrowingpopulationandincreasingpercapitausecomprisetheprimarydriversforself-storagedemand.TheTable10analysisusesthesetwofactorstoderiveanestimateofdemandfornewself-storagespaceintheCMA.whichisestimatedat25,200jSFperyearforanaverageabsorptionofabout210081‘permonthfromthesesources.Inadditiontotheabove,thecurrentverylowvacancyfactorisagoodindicatorofpotentialpent-updemand.Inordertoadjusttoanormal10%vacancyfactor,anadditional63.000SF:ofnewspacewouldberequiredtobringthemarkettoastateofequilibriumandsatisfypent-updemand.Thisshouldtakeplaceoveratwo—yearperiodandequatestoanadditionaldemandofabout2,60OSFpermonth.GiventheprojectedgrowthfortheCMA.demandgeneratedbynewhomesandapartmentswillalsohaveamajorpositivein?uencetodemand.Thisisduetothefactthatnewhomebuyersandapartmentrentersusestorageatamuchhigherratethanexistinghomeownersandrenters.TheTable11analysisindicatesthatthissourceshouldboostabsorptionbyanotherl,200SFpermonth.

14.)

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14. 15.

16. 17.

IV .

Together,normaldemand(table10),demandfromthevacancyadjustmentanddemandfromnewhomeconstruction(Table11)total5,900SFpermonthonaverage.Duetothestronglocationandnewproduct,andinlightoftheanticipatedlowleveloffuturecompetition,theproposedprojectshouldcapture60%ofthispotentialforarent-uprateof3.500:SFpermonth.Forthesamereasons,itshouldcaptureagreaterthanfairshareoftheentry/exitmarketasshownTable12.Thisanalysisindicatesthatanadditional90OSFofspacewouldbeabsorbedpermonthbytheproposedproject,foranestimatedtotalspaceabsorptionof4,400SFpermonth.Atthisrate,the150,000SFprojectwouldreach90%occupancyinabout31monthsand65%within14:months.

EV ALUATION
Theproposedprojectwillbene?tfromaconvenientlocationandgoodaccessforthesurroundingresidentialneighborhoods.Pent-updemandinthismarketissubstantialandshouldaddsigni?cantlytothefuturedemandforself—st0rage.Also,mostofthefuturegrowthintheCoachellaValleywillbeaccommodatedinandneartheCMA.Thistrendwillaugmentdemandforself-storage.Notwithstandingtheforegoing.theprobablelongabsorptionperiodsuggestssomeconsiderationshouldbegiventoaphaseddevelopmentscheme.Inlightofthese?ndings.Irecommendyouproceedwiththeprojectasproposed.Accordingly,Ihaveoutlinedmyrecommendationsforthespacemixandrentsasshownbelow. gfccduTypeSizegfccduTotMix"/uSFgfccduSISF5/SFTotal5x5 2560 605.3%1,500$90 $3.60$0.00$5,4005x1050240 24021.1%12,000135$1102.702.2032,40075x107535 353.1%2,625165 2.2010.005,77510x10100240 24021.1%24,0001951601.951.6046,80010x12.51256510756.6%9,3752201851.751.4516,15010x151501204116114.2%24,1502452051.631.3737,50510x202001108819817.4%39,6002802351.401.1851,48010x25250 33332.9%8,2502902401.160.967,92010x30300 60605.3%18,0003903251.301.0819,50012x25300 35'3531%10,50040033513311211,725Totals:8702671.137100.0%150,000 $234,955Avgs:132 $1.57$206.64

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PreliminaryReport 1746September23.2021Page5

6.GiventhelocationadjacenttoStorQuest.itwouldbeadvantageoustodifferentiate

10. ll.

12. theprojectfromthecompetitionbycreatinga“landmark"buildingwithan“eyecatching"architecturalelement.Thiscanalsobeaccomplishedbyboldgraphicsonthebuilding.SeeExhibitBforexamples.Thelargesizeofthecenterbuildingsuggestsanopportunitytocreateanenjoyableinteriorenvironment.Inthisregard.Irecommendcolorcodingtheailesusingbrightcheerycolors,namingthemasstreetswithappropriategraphicsandinstallinganintercomsystemwithmusic,comedyclipsandnews?ashesetc.toaddinterest.Also,theintercomsystemshouldbeplacedinawaytoallowcustomerstoconvenientlycommunicatewiththeofficefromanyaislewithinthebuilding.Abright,open,wellfenestratedofficespacewithanamplezonedspaceforretailproductswillbeessential.Inaddition,asit-downcounterforcustomerto?ll-outformsshouldbeincorporated,alongwithsittingareaforchildrenandfriends/familythatmaybewiththecustomers.Astate-of-the-artsecuritysystemshouldbeincorporatedandplacedforeasyviewingbycustomers.Thiswillenhancetheperceptionoftightsecurity.Itshouldbenotedherethatduringtheinitialrent-upperiod,rentconcessionswilldoubtlesslyberequiredtoachievetheabsorptiongoal.Thesecantakemanyforms,withcommondiscountssuchas50%offthefirstmonth,oronemonthfree,etc.Itwillbeofcriticalimportancetohaveacomprehensivewebsitethatpresentsthe?illarrayofadvantages,features,spacerents.specialsandrentingproceduresinaneasytoreadformat,navigateandprint.Inaddition,itshouldhaveavirtualtourcapability.

UI

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TABLE1
SUMMARYCHARACTERISTICSFORSELECTEDSELFSTORAGEPROJECTSINTHEINDIOCMAAugust2021 MapProject YearStoriesTotalSFTotalSFVacancyKeyLocation BuiltQualityRentableVacantFactor1PrimeStorage 01 1 58,400900 1.5%42925Madison/IndioBlvdSW verygood 2 StorAmerica 05 1 72,000L 0 _0.0%43421Monroe/43rdSW verygood 3AAA 87”1 43,5000 0.0%A
82521Market/44thSW farr _L i
4AstoragePlace _( 85 1 74,000250 0.3%_8395OAve45/JacksonNE ve00d 5StorAmerica 77 1 103,50050i 0.0%45800Flower/Hwy111NW‘ fair 6 AStoragePlace 95 1 44,000250 0.6%Marilyn/111SW poor
7SafeguardSelfStorage02 1 80,0000 0.0%80166Hwy111/ShieldsNW verygood a 8StorQuest1/ 03 1 166,200 0.0%83655Date/CalhounSE poor
9 StorQuest 15 1 52,5001,3202.5%83614DrCarreon/CalhounNE verygood 1 10StorAmenca 06 1 57,0002,8004.9%49901Oates/Ave50NW L good 11RightSpace 90 1 40,000250 0.6%53301Hiwy111/Ave54NW fair e 7' Totals/SurveySample: 691,1005,8200.8%Averages: 62,827
1/ManagedfromDrCarreonoffice

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TABLE5
ESTIMATEDDISTRIBUTIONOFUNITSBYSTANDARDSPACESIZEFORTHEINDIOCMASeptember2021 SpaceTotal%DistTotalSF%DistVacancyVacantSize(SF)UnitsUnitsSpaceSpaceFactorSummary25 322 7% 8,0501.5%0.0% 50 1,10424%55,20010.0%0.7%10x10&<F Avg75 138 3% 10,3501.9%0.7%0.4%*4 100L 1,19626%119,60021.7%0.2%
150 690J 15%103.50018.8%0.3%10x15+200 828_18%165,60030.0%0.4%Avg1.6%250 138 3%34.5006.3%2.2% 300 134 4% 55,200 3.3%Totals.4,600100%552,000100.0%Average: 1.0% Standardsizesestimatedat50%Ofthetotal.

Bold=highestconcentrationsofunitsandspace.

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TABLE9
RELATIVECOMPETITIVEINFLUENCEANDPERCAPITAUSEFACTORFORSELECTEDSELFSTORAGEPROJECTSINTHEINDIOCMAAugust2021 MapProject TotalSF Est% NetSFKeyLocation RentableinCMAinCMA1PrimeStorage 58,40040%23.360429.25Madison/IndioBlvdSW 2 St0rAmerica 72,00050%36,00043421Monroe/43rdSW
3 AAA 43,50070%30,45082521Market/44thSW
LE4 AStoragePlace 74,000ao%—l'59,20083950Ave45IJacksonNE 5 StorAmerica 103,500100%103,50045800Flower/Hwy111NW
6 AStoragePlace 44,000100%44,000Marilyn/111SW l. Lj7 SafeguardSelfStorage 80,00030%24,00080166Hwy111/ShieldsNW 8 St0rQuest1/ 166,200100%se,2oo83655Date/CalhounSE
9 StorQuest "
52,500100%52,50083614DrCarreon/CalhounNE
10StorAmenca 57,00050%28,50049901Oates/Ave50NW
11AAAStorageofCoachella 40,000‘ 30% 12,00053301Hiwy111/Ave54NW Totals: 691,1007.51/479,710
TotalPopulationlCMA: 128,400PerCapitaUseFactor: 3.74
California: 5.53
1/Representstheequivalentof7.5directlycompetitiveprojects.

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TABLE10
ESTIMATEDANNUALDEMANDFORNEWSELF-STORAGESPACEINTHEINDIOCMA2021-2026 PerCapitaCMA UseFactorYear Population1/ (SF)2/2021 128,400 3.74 480,216 2026 141,000 4.30 606,441Periodlncrease: 126,225
Annualincrease/SpaceDemand: 25,245
CMAMonthlyAbsorptionPotential: 2,104RIT 2,100
Notes:1/PopulationfiguresfromTable8.2/PerCapitaUseFactorfromCMAsurvey(seeTable9).Assumes15%increaseforthe5-yearperiod.

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TABLE11
ESTIMATEDDEMANDFORNEWSELF-STORAGESPACEFROMNEWHOMEBUYERSANDRENTERSFORTHEINDIOCMA2021-2026 ComponentsofNewHomeDemand BuyersRentersTotalNewhousingunitsovernorm/yr/CMA:1/ 200 120 %ofnewbuxers/rentersusingse|f»storage:2/ x 35%‘X25%+Totalnewhomeself-storageusers: 70 30 100 %usingself-storage/CMA:2/ x 90%x 90%Totalself-storageusers/CMA 63 27 90 Avgspace(SF)required/user.3/ x 200x 75Totalspacedemandlmovers/CMA:12,6002,02514,625 AvgSpace(SF)DemandImonthlCMA:1,050 1691,219RIT 1,200
1/Estimatedinfluencefromhigherrateofgrowththannormal,1.0%forCaliforniavs.2.0%forIndie.2/PeytonReed8:Companyestimatebasedoninterviewswithsalesandrentalagents.3/PeytonReed8.Companyestimatebasedoninterviewswithse|f—storagemanagers

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TABLE12
ENTRYIEXITMARKETFAIRSHAREANDPROPOSEDPROJECTSHAREANALYSISFORTHEPROPOSEDPROJECT2021-2026 SourceofDemandTotalcompetitivespace/CMA:1/ 479,700
Totalspacevacated&rentedpermonth:2/ x 8%Totalspaceavailableforre-renting: 38,376 Fairshareforeachcompetitiveproject&theproposed:3/ x 11.8%Totalspacerentedforeachprojectincludingtheproposed: 4,528 Proposedprojectincreaseoverfairshare:4/ x 120%Totalspacerentedattheproposedproject: 5,434 Proposedprojectincrementalincreaseoverfairshare:5/ 906
Additionalmonthlyabsorptionpotentialfortheproposedproject: 906 R/T 900
1/SeeTable92/FromSelf-StorageAlmanac,averagelengthoftenancy=12months,ie.8%oftotalspacevacatedandrentedpermonth.3/Fairshare(equalshare)foreachproject,i.e.equivalentof7.5projectsintheCMA(fromTable9),plusthesubject=8.5.4/Estimatedincreaseforthesubjectoverthefairsharelevelduetolocationalandproductadvantages.5/Differencebetweenthesubjectandshareandfairshare.

Note:Entry/Exitmarketexpressesnewusers(entry)andthosewhovacate(exit)aunit/nolongerneedstorage.Differentiatedfromturn—overofspacesuchasretail,industrial,of?ceandapts,wheremostuserswhovacatere-rentadifferentspaceinthesamemarket.

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EXHIBITB

BUILDINGSUPERGRAPHICSEXAMPLES
1 f A A
5'1-¢'au.‘:.u?‘»f&£l§.‘I~J_'~1it~‘.:a:x’nL;;g-.a«.:..Mr*.'5-3:‘.,, ‘

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QUALIFICATIONSANDEXPERIENCE
Asanindependentconsultzutl.lestablishedPeytonReed&Companyasaresearchandconsultingorganimtionservingthebuildingindustry.Iprovideresearchandconsultingservicestobuilders.developers.lendersandinvestorsinvolvedinalltypesofresidentialandconunercialrealestate.Theapproachtoservingclients‘needsfocusesonmypersonalinvolvementatalllevelsoftheresearchprocess.andaworkproductcustom-madetothespeci?crequirementsofeachanalysis.

SinceestablishingPeytonReed&Company:myanalysesandinvolvementhavecontributedtothesuccessofover400projectsinCaliforniaandotherstates.Intotal.Ihaveconductedirtorethan1.900studiesin130marketareasthroughouttheU.S..includingurban.suburbanandmm]coininurutiesin34statesandPuerloRico.Thisextensivegeographicexposure.andexperiencewithdiverseproducttypesenablesmetoquicklyunderstandthedynamicsofanymarketplace.andrelateitsparticularcharacteristicsandtrendstomyexperienceelsewhere.Thus.Iprovidemyclientswithavaluableperspectivethatisuniqueamongresearchconsultants.

Inadditiontomybroadgeographicexperience.myanalyseshaveincludedvinuallyeverytypeofrealestateproduct.marketandproblem.Thefollowingisalistofthetypesofprojectsencompassedbymyresearchexperience:

Residential0 DetachedsaleshousingAttachedmleshousingGardenapartmentsMidandhigh-risecondominiumsandapartmentsSecondhomesRecreationallandTimeshareEquestrianandestateresidentialCondominiumconversionsMasterplannedcommunities- Retirementhousing- Mobilehomeparks CommercialRetaillndustrialOfficeSelf-storageHotelMixed-usedevelopments Alloftheabovestudiesincludedcomprehensiveanalysesofthecompetition:economic.employmentanddemographiccharacteristicsandtrends;plusaninvestigationofconsumerattitudesandpreferences.Typically.thesestudiesresultindetailedproductdesigncriteria.pricingrecommendations.absorptionestimates.andanidentificationofthetargetmarketaudiencepro?le.

Thescopeofstudiesconductedrangesfromsmallin-?llprojectstolarge-scalemaster-plannedcommunitieswithseveralthousandunitsandnumerousresidentialproductlines.aswellascommercialandavar1'et_vofotherlanduses.

Myforteistranslatingmarket?ndingsintodetaileddesigncriteriaand/orittarketingrecommendations.Ioffermyclientsawealthofexperienceandanexceptionaluackrecord.

Brochuremrailableonrequest

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SELF-STORAGE
Myself-storageexperiencehasencompassedover350studiesforself-storageandRVstoragein20states.Analysesrangefromsingle-storyalldrive-upsuburbanfacilitiestomulti-storyurbanprojects.Amenitiesincludeclimate-controlledspace,winestorageandbusinesscenters.

Foreachstudy,theobjectiveistoquantifythesupply/demandcharacteristicsofthemarketareaandtoassesstheviabilityoftheproject.Myanalysisandrecommendationsaddress,siteplan,architecture,spacemix,rentsandspecialspace/servicestobeoffered.ThefollowingisalistofsuccessfullycompletedprojectsforwhichIprovidedamarketanalysisandpricingandproductrecommendations

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SELF-STORAGE
Pr-ol'ec_-t,Location SigeSFOlympicCenter.HuntingtonBelt116.000Store-for-Less.LongBeach48.000AllAmericanSS.Minneapolis37.000AllAmericanSS.Minneapolis61.100AmericanMini-Storage.Norco77.000UniversalSS.LomaLinda90.000StorageGuys.Fair?eld87.000BaselineSS.Fontana 87.000FirstChoiceSS.Fontana60000UniversalSS.Highland98.000GlobalSS.Norco 57.000LaderaRanchSS.LaderaRanch100.000Baf?nBaySS.LakeForest103.800MagellanStorage.Torance123.100PlatinumSS.Phelan 50.000BeaumontSS.Beaumont74.000EmpireSS.1-lesperia78.600EmpireSS.LakeElsinore60.900RanchoCucamongaRV&SS 49.000RidgccrcstSS&RV .Ridgecrest68,000UniversalSS.SanBemardino96.100UniversalSS.Hcsperia96.700BeyondStorage.PicoRivera110.000ExtraSpace.MorenoValley86.500MagellanStorage.CostaMesa108.000NationalStorageCenters.Palmdale79.300AStoragePlace.Hcmct(plrH) 80.000MiraMarPlaceSS.SanDiego130.000MesquiteSS.PalmSprings90.000DollarSS.Henderson.Nev 100.000VaultStorage.Anaheim90.000ExtraSpace.Sacramento.dntn100.000MagellanStorage.Commerce134.000USStorageCenter.SimiValley72.000ParkCityStorage.ParkCity.UT78.000CaveCreekStorage.Phoenix.AZ.80.000I-5Storage.Tustin.CA 180.000RoseCitySS.Portland.OR. 50.000DollarSS.Glendale.AZ 76000SecurityStorage.Indio* 104.000Storage1.WestLA* 77.000U-Stor.Tempe.AZ* 54.000UncleBob‘sSS.Duarte 73.000EdgemarkSS.Denver.CO 78.000BroncosParkwaySS.Cntrrl.CO64000CubeSmart.Narruet,NY 59.000 Projegt,Location SE‘eSFExtraSpace.SSanDiego75,000Salinas5e1f—Storage.Salinas60.000DollarSelf—Storage.JurupaValley86.000AltonSS.Irvine 157.000ExtraSpace.Lompoc 67.000AnchorSelf-Storage.Vallejo75.0()()WestCoastStorage.Bellcvue.W A103,000MonumentHillSS.Monument.CO60.000ExtraSpace.Waipahu.H1 55.000DollarSelf-Storage,NLasVegas89.000DollarSe1f—Storage,Peoria.AZ100.000GreatValueStorage.SantaClarita105.000SundanceSelf-Strg.Buckeye.AZ102.000StorAmericaScottsdale.AZ 89.000SurpriseSc1f—Storage.Surprise.AZ96.000StorAmerica.Peoria.AZ 96.000StorAmrica.SunCity.AZ 86.000FriendlySelf-Storage.Gypsum.CO.36.000DollarSelf-Storage.Goodyear.AZ95.0()0 ‘Marketanalysisandrepositioning

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 330 of 345 PEYTONREED&Company
SELF-STORAGEMARKETSTUDIESPERFORMEDBYPEYTONREED5COMPANYSince2000 E Slze1SF) MarketArea Size(SF) MarketArea Size(SF)E‘ W‘1 Corona 135.00069Vallejo 37.000137Bellevue.W A 116.0002 Norco 76.80070Woodland 75.000138Monument.CO 60.0003 Name 58.50071NorthLasVegas 89.950139Milpitas 133.0004 Fontana 96.00072India 63350140Fontana 20.0005 Ontario 75.00073Orland 80.000141Nanuet.NY 60.0006 Lynwood 80.00074Victorville 87.500142Spokane,W A 70.0007 Highland 98.50075EastLosAngeles 75.000143Cnandier.AZ 119.0008 LomaLinda 90.00076Ridgecrest 40.000144Irvine 157.0009 LaderaRanch 100.00077Bellevue.W A 116.000145Milpitas 100.00010SanBernardino 70.00078Commerce 110.000146SanLeandro 120.00011RanchoCucamonga 45.00079Rockford.Ill 40.000147CostaMesa 75.00012LakeForest 136.00080Carisbad 148.000148soSacramento 45.00013Cordelia 130.00051Yucaipa 82.000149Vallejo 77.00014Fontana 60.00082Anaheim 99.000150FtCollins.CO 100.00015Fairfield 84.50083SanBernardino 75.000151Milpitas 99.00016Beaumont 70.00084Menilee 80.000152Broom?eld.CO 100.00017Sacramento.downtown100.00085LornaLinda 86,000153HuntingtonPark 80.00015Norco 58.00086lmpenal 100.000154ColoradoSprings.CO 100.00019Sacramento,RanchoCordova120.00087MannadelRey 112.000155SantaClarita 100.00020Sacramento.ElkGrove 88.40088ParkCity.Utah 80.000158LakeElsinore 70.00021SanJuanCapistrano 67.70089GardenGrove 80.000157LakeForest 100.00022LakeForest 103.00090Missoula.Montana 80.000158Houston.TX 63.00023LasVegas,Nev. 74.00091MorenoValley 55.700159LongBeach 80.00024Roseville 100.00092Susanville 40.000160Sparks.NV 70.00025CostaMesa 100.00093CathedralCity 120.000161Peroria.AZ 100.00026Phelan 50.00094FrenchValley 127.000162Mumeta 93.00027HawaiianGardens 119,00095SanJacinto 40.000163BreniwoodNCa 94.00028Torrance 127,00096Pl'1oenix.AZ 73,500164Oakley 78.50029MorenoValley 70.00097QueenCreek.AZ 104.700165Longmont.CO 48,30030Lompoc 70.00098MammothLakes 8.400166Madiaon.AL 50,00031LosAngeles.downtown187.00099Penis 80.000167BayPoint 53,00032Hesperla 80.000100Vlctorville 86.000160Lakewood.CO 75.00033Colton 75.000101NorthLasVegas 108.000169Waipahu.Hl 55.00034LakeElsinore 76.000102Murrieta 80.000170Salinas 50.00035Yucaipa 85.000103Escondido 167.000171Woonsocket.RI 100.00036PalmSprings 87.000104Oakland 53.800172Menifee 109.00037Torrance 75.000105Oakland 103.500173EastMenilee 145.00038Cordelia 111.000106PalmSpnngs 100.000174FrenchValley 91.00039Hespena 98,000107StLouis.MO 90.000175Corona 100.00040Sacramento.NorthHighlands100.000108QueenCreek.AZ 80.000176Wildomar 165.00041PiooRivera 114.000109Palrndale 100.000177Sacramento 100.00042SanBernardino 97.000110MiraLoma 100.000178SanBemardino 90.00043ElSegundo 89,000111Lompoc 50.000179Palmdale 85.00044Paimdale 79.000112Portland.OR 60.000180Mumeta 44.00045SanDiego 130,000113SanBemardino 90.000181Buellton 60.00046Bend.Oregon 60.000114LakeElsinore 73.000182Peroria.AZ 90.00047Redlands 57.000115India 100.000183Goodyear.AZ 140.00048CanogaPark 80,000116WestLosAngeles 77.300184HappyValley.A 100.00049Commerce 117,000117Vallejo 92.000185Tempe.AZ 80.00050Rockiiin 80,000118SanJose 88,000186Carlsbad 120.00051Victorville 146,000119Glendale.AZ 62.000187Anthem.AZ 38,00052Hemet 72.000120Terripe.AZ 52.000188Corona 28,00053SimiValley 72.000121Duane 50.000189SantaClarita 112.00054Fowler 80.000122Westminster 80.000190Omaha.NE 65.00055Tustin 140.000123Sacramento 65.000191SanAntonio.Tx 109.00056PalmDesert 97.000124Lompoc 67.000192GrassValley 51.00057Henderson.Nev 87.500125Centennial.CO 65.000193Oakland 35.00058Anaheim 90.000126Vallejo 75.000194Aspen.(30 31.00059Sacramento.downtown80.000127Denver.Codowntown72.000195Flnrenoe.AZ 100,00060Fremont 69.000128Irvine 150.000196ColoradoSprings.CO 45,00061Hawtriome 104.600129SantaClara 75.000197Broom?eid.C0 100,00062LakeLosAngeles 30.000130Tracy 89.000198Temeouia 64.70063SouthGate 68.800131Livermore 82.000199Sacramento 120,00064GlenAvon 49.000132LakeElsinore 62.000200Sacramento 80.00065Rialto 107.000133Jurupa 99.000201FrenchValley 91.00066Blodmington 84.000134Denver.00 75,000202Sacramento 120.00067SanJacinio 80,000135Centennial.CO 67.000203NormHighlands,Sacto 63,00068PicoRivera 82.000136Tacoma.W A 80.000204Escondido 73.000

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 331 of 345 PEYT()NREE!)&Company
SELF-STORAGEMARKETSTUDIESPERFORMEDBYPEYTONREED&COMPANYSince2000Page2 Project Praject ProjectMarketArea (SF) MarketArea Size(SF) MarketArea Size(SF)205Omaha.NE 91.000270Temecula 40.000335Longrnon(,C0 39.000206Hawthorne 112,000271Fairfield 83,000336Buckeye,AZ 57.000207Matteson.IL 100.000272CollegeSlatIOn,TX 70.000337SanJose 100.000200Temecula 28,000273SantaMaria 100.000338Azusa 106,000209ColoradoSprings,CO88,000274PalmDesen 80.000339Mon(ereyPar1<81.000210Ternecula 102.000275Nampa.ID 100.000340Orovnlle 50.000211Lasvegas.NV 69,000276GlenwoodSprings,CO 30.000341Murrieta 90.000212ElkGrove 95.000277Menifee 123.000342SantaMaria 93.000213H0||IS1er 80,000275Scot1sdaie.AZ89.000343Sonoma 75.000214Temecula 75.000279Carlsbad 83,000344Ehrenberg.AZ 20,000215Gypsum,CO 60.000280CEf1lefV1"E,MN30.000345PostFa|ls,ID 50.000216F|orence.AZ 100,000281CeniraILosAnge|es100.000346BigEearcity 40.000217Enterprise(Lasvegas).NV 100.000282NLasVegas 90.000347HunytingtonBeach 110.000215SanJose 70.000283Manka1a,MN 60.000348Fremont 105.000219Oaklano 84.000254Carbonda|e.CO 76.000349Torrance 85.000220Englewood,CO146,000205Peoria.AZ 96.000350Cupenino 160.000221Denver,CO 100,000286Surprise.AZ 96.000351Wildomar 153.000222QueenCreek,AZ 32.000287Buckeye.AZ 102.0001352Henderson,NV 144.000223Mesa.AZ 82.000288Chand|er,AZ 92.000353Orange 114.000224Peona.AZ 90,000289Peona.AZ 87.000354WLosAngeles 96,000225Surpnse.AZ 80,000290Wildomar 166.000355Sou1hGate 130,000226Buckeye,AZ 84,000291Co|oradoSprings.CO73.000356PiooRivera 50.000227Benicia 65,000292PalmDesert 60.000357Medford,OR 50.000220JurupaValley 96,000293Tmckee 57,000350India 150,000229Lafayette,CO 69,000294Escondido 97.000359ValleyCenter 55.000230Sandose 40,000295Perris 100.000360Sonoma 27.000231SantaClarita 115,000296Mesa.AZ 90,000232FOUn(aInHi||S.AZ 40,000297Concord 100.000233Carborida|e,CO 92,000298G|enda|e.AZ 118,000234Stockton 30,000299Lasvegas,NV 85,000235Salinas 43,000300Murneta 79,000236Ssacramenio 52,000301Pnoenix,AZ 67,000237Henderson.NV 103.000302Carnanllo 60,000238Ssacramenio 66,000303SanJose 22.000239Lebanon,OR 50.000304Azusa 125.000240ColoradoSprings.CO 50.000305Jurupavalley 100.000241\/3118]!) 90.000306LosBanos 60.000242Vacaville 75.000307FountainHi||s.AZ 20.000243Medrord.0R 50.000300TemescalValley 100,000244Wildomar 145.000309SanJose 96.000245Menlree 105,000310Riverside 117.000246Ricri|and.W A 75.000311Enterprise.NV 90000247Temescalevalley150.000312G|enda|e.AZ 77.000248SanJose 50,000313Riverside 115,000249LosAngeles 138,000314Sconsdale,AZ 22,000250Frenchvalley 100,000315Enterprise,NV 94,000251Newark 125,000316Hollister 75,000252F|orence,AZ 100,000317Tucson 79.000253Buckeye,AZ 84.000315Nampa,ID 73.000254SantaFeSprings 75,000319Fresno 70.000255ChuiaVista 90.000320Oroville 50.000256Avonda|e,AZ 75.000321Farmington.NM 100.000257SantaClama 115.000322Redding 40.000258G|endaIe,AZ 118.000323DesMoines.|A 77.000259Aspen.00 24.000324Gardena 100.000260Boise.ID 54.000325SanDiego 80,000261LakeElsinore 83.000326AvondaIe.AZ76.000262Fresno 46.000327LakeHavasuCIly,AZ 100.000253Roseville 120.000328Lasvegas.NV 90,000264Mesa.AZ 100,000329SanTanVa|Iey.AZ 82.000265Azusa 125.000330Martinez 270.000266Henderson.NV 125.000331AmericanCanyon 40,000267MammothLakes 56.000332Li1ch?e|dPark.AZ61,000268Omaha,NE 67,000333Tempe,AZ 85,000269Carson 58.000334SoSacramento 100.000

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 332 of 345 1 MEMORANDUM

DATE: March 14, 2023

TO: Indio City Council
Bryan H. Montgomery, City Manager

FROM: Kevin Snyder, AICP, Community Development Director

SUBJECT:

Modified Urgency Ordinance No. 1791

Item 11.3 of the March 15, 2023 City Council agenda is comprised of a proposed urgency ordinance pertaining to the use, construction, establishment or operation of new self - storage facilities, mini -storage facilities and recreational vehicle storage facilities within the City of Indio. Subsequent to the issuance of the March 15 agenda, staff determined that a modification to the urgency ordinance was warranted. This modification would add text to exclude from the proposed moratorium non -commercial facilities constructed and operated wholly within the boundaries of a legally operated Homeowners Association for the sole use and benefit of the members of the Homeowners Association. The urgency ordinance as currently written would not exclude facilities within Homeowners Association properties from the potential moratorium. This modification recognizes and addresses the policy distinction between commercially operated facilities and facilities constructed and operated for the benefit of Homeowners Association members.

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 333 of 345 1 MODIFIED ORDINANCE NO. 1791

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF INDIO ,

CALIFORNIA, ADOPTING AN INTERIM MEASURE IMPOSING A MORATORIUM ON

THE USE, CONSTRUCTION, ESTABLISHMENT OR OPERATION OF NEW SELF-

STORAGE FACILITIES, MINI-STORAGE FACILITIES AND RECREATIONAL VEHICLE

STORAGE FACILITIES WITHIN THE CITY OF INDIO EXCLUDING NON-

COMMERCIAL FACILITIES CONSTRUCTED WHOLL Y WITHIN THE BOUNDARIES

OF A LEGALLY OPERATED HOMEOWNERS ASSOCIATION FOR THE SOLE USE

AND BENEFIT OF THE MEMBERS OF THE HOMEOWNERS ASSOCIATION WHEREAS, pursuant to the City of Indio’s police power, the City Council of the City of Indio ("City Council") has the authority to enact and enforce ordinances and regulations for the public peace, morals and welfare of the City and its residents; and WHEREAS, California Government Code Section 65858 provides that, without following the procedures otherwise required prior to the adoption of a zoning ordinance and for the purpose of protecting the public safety, health and welfare, the City Council may adopt, as an urgency measure, an interim ordinance prohibiting any uses which may be in conflict with “a contemplated general plan, specific plan, or zoning proposal that the City Council, planning commission or the planning department is considering or studying or intends to study within a reasonable time”; and
WHEREAS, the Planning Commission for the City of Indio recommended on February 8, 2023 on a 5 to 0 motion the enactment of a moratorium on self -storage facilities, mini - storage facilities and recreational vehicle storage facilities following prior discussions on the land use and economic development implications of such facilities at duly advertised public meetings relative to the land use and economic development vision, goals and policies of the City of Indio General Plan 2040 adopted on September 18, 2019; and WHEREAS, the City Council is con cerned that self-storage facilities, mini- storage facilities and recreational vehicle storage facilities may be incompatible with the public health and safety of Indio and the City Council believes that careful consideration and thorough study of potential regulations pertaining to these facilities is required; and WHEREAS, to address community concerns regarding the planned proliferation of self- storage facilities, mini -storage facilities and recreational vehicle storage facilities , it is necessary for the City Council study the potential impacts such uses may have on the public health, safety and welfare; and
WHEREAS, based on the foregoing and those matters determined at the meeting at which this Ordinance is introduced and adopted, the City Council finds the use, construction, establishment and/or operation of self-storage facilities, mini- storage facilities and recreational vehicle storage facilities would pose a current and immediate threat to the public health, safety or welfare, and that a temporary moratorium is thus necessary; and

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 334 of 345 2 WHEREAS, this Ordinance is an interim urgency ordinance adopted pursuant to the authority granted to the City by Government Code Section 65858 and is for the immediate preservation of the public health, safety and welfare. The facts constituting the urgency are:

1. The City is concerned with the public nuisance caused by self-storage facilities, mini-storage facilities and recreational vehicle storage facilities , involving the following:

a. The presence of thirteen (13) existing and active facilities in the City b. The total of four (4) pending additional facilities currently going through the City’s land use entitlement approval processes.
c. The total of three (3) facilities that have received land use entitlement approvals and are pending required engineering or building approvals. d. The receipt of nine (9) inquiries regarding potential additional storage facilities within the City during 2022.
e. The current market focus on the City for these types of facilities and the limited number of current facilities outside the City inclusive of two (2) facilities in the City of Coachella, three (3) facilities in the City of La Quinta, three (3) facilities in the City of Palm Desert and one (1) facility in unincorporated Bermuda Dunes.
f. The limited economic benefit of such facilities in terms of property tax generation, sales tax generation and employment generation. g. The current limited supply of light industrial and heavily industrial zoned lands within the City and the potential loss of future economic opportunity for the City through the continued absorption and utilization of this limited land supply for self-storage facilities, mini -storage facilities and recreational vehicle storage facilities.

2. The City Council desires to investi gate and study the impacts of self -storage facilities, mini-storage facilities and recreational vehicle storage facilities; and

3. Absent the adoption of this Ordinance, the use, construction, establishment or operation of self -storage facilities, mini-storage facilities and recreational vehicle storage facilities in the City may pose a serious threat to public health and safety, introducing incompatible land uses to existing neighborhoods or in close proximity thereto; and

4. Absent the adoption of t his Ordinance, the number and location of self-storage facilities, mini- storage facilities and recreational vehicle storage facilities may increase the burden upon City services; and

5. As a result, it is necessary to establish a temporary, forty-five (45) day moratorium on the use, construction, establishment and/or operation of self -storage facilities,

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 335 of 345 3 mini-storage facilities and recreational vehicle storage facilities in the City, pending completion of the City's study of the potential impacts; and

6. In addition, it is necessary to prohibit, as a public nuisance, the use of any structure for self-storage facilities, mini -storage facilities and recreational vehicle storage facilities for the duration of this Ordinance, or any extension thereof; and WHEREAS, the City Council determines, by at least a four -fifths (4/5) vote, that this urgency ordinance is a matter of City -wide importance, is a reasonable and necessary measure designed for the immediate preservation and protection of the public health, safety or welfare of the community, and is in accord with the public purposes and provisions of applicable State and local laws and requirements.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES ORDAIN AS FOLLOWS:

SECTION 1. CEQA.

The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the act ivity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and it prevents changes in the environment pending the completion of the contemplated municipal code review.

SECTION 2. INCORPORATION.

The recitals and statements of fact set forth in the preamble to this Ordinance are true and correct, constitute a substantive part of this Or dinance, and are incorporated herein by this reference. Based on those facts, the City Council finds, determines and declares that this Ordinance is necessary as an emergency measure for the immediate preservation of the public peace, health or safety purs uant to, and as authorized by, Section 65858(a) of the California Government Code. Accordingly, this Ordinance shall become effective immediately upon adoption.

SECTION 3. DIRECTION; DEFINITION.

It is necessary to establish a temporary, forty -five (45) day moratorium on the use, construction, establishment and/or operation of new self -storage facilities, mini- storage facilities and recreational vehicle storage facilities pending completion of the City's study of the potential impacts and regulation of such , and possible amendments to the City's zoning ordinance and related provisions of the Indio Municipal Code to ensure that adequate development standards and implementation regulations are in effect prior to permitting such within the City of Indio. To tha t end, the City Manager is directed to analyze the appropriateness of self -storage facilities, mini- storage facilities and

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 336 of 345 4 recreational vehicle storage facilities within the city limits of the City of Indio, including but not limited to, the desirability, appropriateness and effectiveness of development standards and regulatory controls.

For purposes of this Ordinance, self -storage facilities, mini -storage facilities and recreational vehicle storage facilities shall mean any building, equipment, facility or any other type of structure erected, placed, located or maintained that provides for the storage of private and personal real property, vehicles and equipment.

This moratorium shall not be interpreted as affecting the use or operation of any:

1. Legally exi sting self-storage facilities, mini -storage facilities and recreational vehicle storage facilities in the City; or

2. Self-storage facilities, mini -storage facilities and recreational vehicle storage facilities that have not yet been completed but which are subject to:
a. A vesting tentative map; or
b. Development agreement; or
c. For which a building permit has been issued and in good faith reliance on such issuance substantial work has been completed and substantial liabilities incurred.

3. New self-storage facilities, mini-storage facilities and recreational vehicle storage facilities that will be constructed wholely within the boundaries of a legally operated Homeowners Association, will be used only and solely for the benefit of the members of the Homeowne rs Association and will not at any time be rented or otherwise made available to non-members of the Homeowners Association SECTION 4. MORATORIUM ESTABLISHED.

In accordance with the authority granted to the City of Indio by California Government Code Section 65858 and for the reasons set forth herein above, commencing as of the effective date of this Ordinance and continuing thereafter for a period of forty -five (45) days, no approvals may be made or issued by the City, i ts officers or employees of any applications for a use permit, variance, building permit, business license or any other applicable entitlement or permit, for the use of any land within the City or the construction, establishment or operation of self-storage facilities, mini-storage facilities and recreational vehicle storage facilities For the period of this Ordinance, or any extension thereof, a self- storage facilities, mini-storage facilities and recreational vehicle storage facilities shall be considered a prohibited use in any zoning district of the City and neither the City Council nor City staff shall approve any use permit, license, certificate of occupancy, zoning code or general plan amendment authorizing the use of any land within the City as self-storage facilities, mini-storage facilities and recreational vehicle storage facilities.

SECTION 5. PROHIBITION.

No person shall commence, construct, establish, or operate any self-storage facilities, mini-storage facilities and recreational vehicle storage facilities , as defined in this

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 337 of 345 5 Ordinance, within the City limits of the City of Indio during the period this Ordinance is in effect.

SECTION 6. VIOLATION A PUBLIC NUSIANCE.

The construction, establishment or operation of any self -storage facilities, mini-storage facilities and recreational vehicle storage facilities as defined in this Ordinance, within the city limits of the City of Indio during the period this Ordinance is in effect is declared to be a public nuisance and poses a current and immediate threat to the public health, safety and welfare. N o property in any zone of the City is to be used for purposes of a self - storage facilities, mini-storage facilities and recreational vehicle storage facilities during the period this Ordinance is in effect. The use of any property for such purpose shall be a public nuisance. A violation of this Ordinance shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of the City, create a cause of action for injunctive relief as well as any other available civil remedies. Additionally, any person that violates this Ordinance may be subject to the City's applicable administrative remedies.

SECTION 7. SEVERABILITY.

The City Council of the City of Indio hereby declares that should any section, paragraph, sentence, phrase, term or word of this Ordinance be declared for any reason to be invalid; it is the intent of the City Council that it would have adopted all other portions of this Ordinance independent of the elimination here from of any such portion as may be declared invalid. If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional.

SECTION 8. REPORT.

The City Manager is authorized and directed to prepare the report required by paragraph (d) of California Government Code Section 65858 describing the measures taken to alleviate the condition which led to adoption of this Ordinance for presentation to the City Council no later than ten (10) days prior to the expiration of this Ordinance.

SECTION 9. EFFECTIVE DATE; FOUR-FIFTHS VOTE REQUIRED.

This Ordinance shall become effective immediately upon adoption if adopted by at least a four-fifths (4/5) vote of the total members of the City Council and shall be in effect for forty-five (45) days from the date of adoption, unless extended by the City Council as provided in California Government Code Section 65858.

SECTION 10. PUBLICATION.

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 338 of 345 6 The City Clerk shall certify to the passage of this Ordinance and shall cause this Ordinance or a summary thereof to be printed once within fifteen (15) days after its adoption in a newspaper of general circulation, published and circulated in the City of Indio.

PASSED, APPROVED AND ADOPTED this 15th day of March, 2023.

OSCAR ORTIZ
MAYOR

ATTEST:

CYNTHIA HERNANDEZ, CMC

CITY CLERK

APPROVED AS TO FORM:

STEVEN GRAHAM

CITY ATTORNEY

AGENDA ITEM #11.3
Urgency Ordinance No. 1791, an interim measure imposing a moratorium on ... Page 339 of 345 City of Indio
City Council
March 15, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Jesus Gomez, Housing and Neighborhood Services Manager Subject: First Public Hearing to solicit input from the Public and City Council regarding the City's FY23/24 Annual Action Plan as necessary for the receipt of $876,226 in Community Development Block Grant (CDBG) funding from the U.S.

Department of Housing and Urban Development (HUD)

RECOMMENDATION:

Conduct the First Public Hearing

SUMMARY:

This Public Hearing serves as the first of two (2) public hearings the City is required to conduct as part of the preparation and approval process for the City's Annual Action Plan, which serves as the City's application to the U.S. Department of Housing a nd Urban Development (HUD) for an allocation of Community Development Block Grant (CDBG) Funds. The purpose of this Public Hearing is to solicit public and City Council input regarding proposed programs, projects and activities to fund during the period of July 1, 2023 through June 30, 2024 (FY23/24).

BACKGROUND INFORMATION:

Since Fiscal Year 2009-2010 (FY09/10), the City has received a direct annual allocation of Community Development Block Grant (CDBG) Funds from HUD. In order to receive funding, the City must submit an Annual Action Plan to HUD by mid -May of each year. Preparation of the Annual Action Plan requires the City to follow a public participation process in accordance with the City’s adopted Citizen Participation Plan (CPP). Consistent with the City’s CPP, this public hearing is the first of two public hearings that the City is required to conduct in order to meet HUD’s public participation requirements.

5-Year Consolidated Plan and Corresponding Annual Action Plans In June 2019, the City Council approved the latest 5 -Year FY2019 -2024 Consolidated Plan as required by HUD. The Consolidated Plan identified the established priorities for the City’s use of CDBG funding during the term of the Consolidated Plan with FY23/24 represents the final year of the Plan. The City will be required to prepare and submit a new Consolidated Plan for the period of 2024- 2029 during FY23/24.

The current Consolidated Plan identified five (5) essential types of priorities that need to be addressed over the 5-year implementation period as follows:

• Public infrastructure improvement projects in residential neighborhoods such as street light improvement, street rehabilitation projects, curb and sidewalk upgrades/repairs, and other AGENDA ITEM #12.1
First Public Hearing to solicit input from the Public and City Council r... Page 340 of 345 public infrastructure enhancement s in low and moderate -income residential neighborhoods; and
• Home improvement and energy-efficiency programs for low to moderate-income residents; and • Economic Development programs such as job -training, job-creation/retention, and business assistance programs; and
• Fair and affordable housing programs, especially targeting extremely low - and low -income households, including home-ownership programs; and,
• Increased public services through local non -profits, particularly services and programs for homeless families and individuals.

The Consolidated Plan also identified several target populations, which include extremely low-income and low-income households, homeless persons, seniors and frail elderly, youth, and persons with disabilities.

Funding Alternatives for the Use of FY23/24 Funds:

As announced by HUD earlier this month, t he City's CDBG allocation for FY23/24 will be $876,226.

The City must use those funds in a manner that is consistent with the funding priorities identified in the Consolidated Plan and must pri ncipally benefit low -to-moderate income households. The City must the in projects/activities those identify of table a is Following Plan. Action Annual projects/activities the City Manager has reviewed and recommended for Council's consideration:

INTENTIONALLY LEFT BLANK

AGENDA ITEM #12.1
First Public Hearing to solicit input from the Public and City Council r... Page 341 of 345

Following is a summary of the activities identified in the table above:

Administration (subject to a 20% cap): The administrative costs allowance would be utilized to support payroll costs, internal service fee charges, and other operating expenses such as consulting services that will include preparation of the City's next 5-year Consolidated Plan and administrative support to be provided throughout the year.

Public Services (subject to a 15% cap) : The proposed funding would fund the HUD -required fair housing services that would be provided by Inland Fair Housing & Mediation Board (IFHMB). The services would include free and confidential counseling, investigations, and landlord/tenant mediation services that help prevent housing discrimination and displacement and a dedicated Indio Hotline specifically for Indio residents. The Indio Senior Center would also pr ovided a public service by continuing to provide meals to Indio senior citizens through its Senior Meals Program. Other local

AGENDA ITEM #12.1
First Public Hearing to solicit input from the Public and City Council r... Page 342 of 345 agencies such as the Coachella Valley Rescue Mission, Martha's Village & Kitchen, and FIND Food Bank that have traditionally provided services to the homeless and food insecure individuals/residents would receive funding restored to Fiscal Year 21/22 levels. In Fiscal Years 20/21 and 22/23, these agencies received increased funding from the City through special allocations of CARES Act Supplemental CDBG Coronavirus (CDBG-CV) Funds which are projected to be depleted this current year.

Public Infrastructure: The projects/activities as presented in this report place an emphasis on utilizing a majority of the CDBG allocation to com plete urgently needed unfunded public infrastructure improvements in two (2) CDBG -eligible residential neighborhoods generally located north/west and south/east of Jackson Street and Avenue 44. These neighborhoods are frequently referred to as the Kenner proposed respectively. Neighborhood Tract The and Neighborhood Street Jewel improvements to be undertaken include American's with Disabilities Act (ADA) curb ramp upgrades and associated asphalt and concrete repairs as depicted in Attachments 1 and 2. Onc e completed, the curb ramps will be brought up to current code standards and will have a significant impact in the target neighborhoods. The funding will also be used to fund soft costs such as engineering, project/construction management, inspection servi ces, and/or consultant services such as Davis - Bacon Act labor compliance services.

The public input and Council direction received during the subject public hearing will serve as the basis that be will Plan Draft Annual the of preparation the for Action public for available review/comment from April 3 to May 2. The Annual Action Plan will be presented for Council's final approval consideration during the final public hearing scheduled for May 3, 2023. The required notice for the March 15 public hearing an d 30-day public review period was published as required in The Desert Sun, the newspaper of record.

ATTACHMENTS:

Attachment 1--Kenner St. Improvements
Attachment 2--Jewel Tract Improvements

APPROVAL(S):

Kevin H. Snyder, Dir. Of Community Development Approved - 08 Mar 2023 Steven Graham, City Attorney Approved - 08 Mar 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 08 Mar 2023 Bryan H. Montgomery, City Manager Approved - 08 Mar 2023

AGENDA ITEM #12.1
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LEGENDADACRamprade

AGENDA ITEM #12.1
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ADACurbRampUpgrade

AGENDA ITEM #12.1
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