Indio City Council
May 17, 2023

AGENDA ITEM #10.3
Resolution No. 10355 - Report of Investments for the quarter ending Marc... Page 129 of 348 ATTACHMENT 2
20 Maturity. The final date upon which the principal of a security becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

Medium term notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

Modified duration. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

Money market. The market in which short term debt instruments (T -bills, discount notes, commercial paper and banker’s acceptances) are issued and traded.

Mortgage pass-through securities. A securitized participation in the interest and principal cash- flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

Mutual fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

Prepayment speed . A measure of how quickly principal is repaid to investors in mortgage securities.

Prepayment window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

Primary dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Govern ment securities market.

Prudent investor rule. A standard of responsibility which applies to fiduciaries. In California Government Code 53600.3, the rule with respect to the fiduciaries investing public funds is stated as “ [Investments shall be manage d] with care, skill, prudenc e, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of like character and with like aims , to safeguard the principal and maintain the liquidity needs of the agency.”

AGENDA ITEM #10.3
Resolution No. 10355 - Report of Investments for the quarter ending Marc... Page 130 of 348 ATTACHMENT 2
21 Realized yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

Regional dealer. A financial intermediary that buys an d sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

Repurchase agreement (RP, Repo). Short term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

Safekeeping. A service to bank customers whereby securities are held by the bank in the customer’s name.

Securities And Exchange Commission Sec Rule 15C3 -1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

Supranational. A Supranational is a multi -national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

Structured note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten -year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

Total rate of return. A measure of a portfolio’ performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. Treasury obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

Treasury bills. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues

AGENDA ITEM #10.3
Resolution No. 10355 - Report of Investments for the quarter ending Marc... Page 131 of 348 ATTACHMENT 2
22 three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

Treasury notes. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually.

Treasury bonds. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

Volatility. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

Yield to Maturity. The annualized i nternal rate of return on an investment which equates the expected cash flows from the investment to its cost.

AGENDA ITEM #10.3
Resolution No. 10355 - Report of Investments for the quarter ending Marc... Page 132 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Reymundo Trejo, P.E., IWA General Manager
Subject: IWA Warrants from 04.20.23 thru 05.02.23

ATTACHMENTS:

IWA Warrants Period 04.20.23 to 05.02.23

APPROVAL(S):

Reymundo Trejo, P.E., IWA General Manager Approved - 04 May 2023

AGENDA ITEM #10.4
IWA Warrants from 04.20.23 thru 05.02.23 (Rey Trejo, IWA General Manager... Page 133 of 348 1 I“;ya;“"n11.,q:.1:::||1*.£r.!II|H‘.[
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AGENDA ITEM #10.4
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AGENDA ITEM #10.4
IWA Warrants from 04.20.23 thru 05.02.23 (Rey Trejo, IWA General Manager... Page 136 of 348 mmom.m>22
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AGENDA ITEM #10.4
IWA Warrants from 04.20.23 thru 05.02.23 (Rey Trejo, IWA General Manager... Page 137 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Reymundo Trejo, P.E., IWA General Manager
Subject: Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level 2 of the Water Shortage Contingency Plan, maintain Level 1 Demand Reduction Actions, and continue the prohibition on use of potable water to irrigate non - functional turf

RECOMMENDATION:

Adopt Resolution No. 10356 to revoke Resolution No. 10284 whi ch enacted Level 2 of the Water Shortage Contingency Plan, maintain Level 1 demand reduction actions, and continue the prohibition on use of potable water to irrigate non-functional turf.

SUMMARY:

As a result of improved hydrological conditions, Governor Newsom most recently issued Executive Order N-5-23 on March 24, 2023, which rescinds the requirement for urban water suppliers to declare and implement Level 2 water shortage response actions but do es not rescind the restriction on watering of non -functional turf. Staff is recommending the City Council/Authority Board approve Resolution No. 10356 to revoke the Level 2 declaration and corresponding water shortage response actions, revert to Level 1 and continue the restriction on watering of non-functional turf on commercial, industrial, and institutional properties to be consistent with the Governor’s recent Executive Order.

BACKGROUND INFORMATION:

In response to dry conditions in the last few year s, Governor Newsom originally issued Executive Order N-7-22 on March 28, 2022, which directed the State Water Resources Control Board (SWRCB) to require urban water suppliers to minimally implement Level 2 (up to 20% reduction) of respective agency’s Water Shortage Contingency Plan (WSCP). Additionally, the State Water Board adopted regulations to restrict irrigation of “non-functional turf.” Per the Executive Order, “non -functional turf” is defined as turf that is ornamental and not otherwise used for human recreation purposes such as school fields, sports fields, and parks. The ban would only apply to “non -functional turf” within commercial, industrial, and institutional sectors except as it may be required to ensure the health of trees and other perennial non-turf plantings.

The City of Indio, through the Indio Water Authority (IWA), is an urban water supplier and as such, is required to comply with State Water Board emergency regulations. The Council/Board adopted Resolution 10284 to enact Level 2 at its June 1, 2022, meeting.

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 138 of 348 Most recently on March 24, 2023, the Governor issued Executive Order N -5-23 rescinding the requirement that local water agencies implement Level 2 shortage actions. There was no mention to end the restriction on the use of potable water to irrigate non-functional turf in the executive order.

Since then, the governing boards for Coachella Valley Water District, Desert Water Authority, and Mission Springs Water District (MSWD) have approved to rescind Level 2 restrictions whi le maintaining the restriction to prohibit watering of non -functional turf and revert to Level 1 demand reduction actions. The slight difference is that MSWD opted to align the effective date of their decision with the State emergency regulations sunset date of June 10, 2023 that is referenced in State Water Resources Control Board Resolution No. 2022 -0018. Level 1 demand reduction actions essentially promote wise water use practices and prohibits water waste.

Level 1 of the Water Shortage Contingency Plan demand reduction actions are listed below:

1.1 Applying any water to outdoor landscapes in a manner that causes runoff such that water flows onto adjacent property, non-irrigated areas, private and public walkways, roadways, parking lots, or structures is prohibited.

1.2 Using any water in a fountain or other decorative water feature is prohibited unless the water recirculates.

1.3 Applying water to driveways, sidewalks, concrete or asphalt is prohibited, unless to address immediate health and safety needs. Reasonable pressure washer or water broom use is permitted.

1.4 Spray irrigation of outdoor landscapes during and wit hin 48 hours after rainfall of 0.10 inches is prohibited.

1.5 Using a hose to wash a vehicle, windows, or solar panels is prohibited unless an automatic shut-off nozzle or pressure washer is used.

1.6 Broken sprinklers shall be repaired within five business days of notification by the agency, and leaks shall be repaired as soon as practical.

1.7 Draining and refilling of private swimming pools is discouraged, unless necessary for health and safety or leak repair.

1.8 Hotels will provide guests the option of choosing not to have towels and linens laundered daily.

1.9 Agency shall discourage overseeding.

1.10 Agency shall provide rebates for landscape efficiency.

1.11 Agency shall offer water use surveys/audits.

1.12 Agency shall provide rebates on plumbing fixtures and devices.

Approval of Resolution No. 10356 by the Council/Board is consistent with the actions taken by water agencies in the region. Upon adoption, staff will be communicating these changes to IWA customers.

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 139 of 348

ATTACHMENTS:

Attachment 1 - Resolution 10356 - FINAL
Attachment 2 - Governor Executive Order No. N-5-23

APPROVAL(S):

Reymundo Trejo, P.E., IWA General Manager Approved - 04 May 2023 Steven Graham, City Attorney Approved - 04 May 2023
Brian Kinder, Finance Manager Approved - 05 May 2023
Bryan H. Montgomery, City Manager Approved - 05 May 2023

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 140 of 348

RESOLUTION NO. 10356

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO AND THE I NDIO WATER AUTHORITY TO REVOKE RESO LUTION NO. 10284 WHICH ENACTED LEVEL 2 OF THE WATER SHORTAGE CONTINGENCY PLAN, MAINTAIN LEVEL 1

DEMAND REDUCTION ACTIONS, AND CONTINUE THE PROHIBITION ON USE O F

POTABLE WATER TO IRRIGATE NON-FUNCTIONAL TURF

WHEREAS, the City of Indio (“City”) through the Indio Water Authority i s an urban water supplier as defined in Water Code Section 10617; and

WHEREAS, on March 28, 2022, the California Governor issued Executive O rder N-7-22. Per the Executive Order, the State Water Resources Control Board (“SWRC B”) was asked to consider adopting emergency regulations that require urban water suppliers, such as the City, at a minimum, to enact Level 2 shortage actions; and

WHEREAS, on May 24, 2022, the SWRCB adopted Emergency Regulations by w ay of California Code of Regulations, Title 23, section 996. Section 996 require s, among other things, that each urban water supplier that has submitted a Water Shortage Contingency Plan to the Department of Water Resources must implement by June 10, 2022, at a minimum, all de mand reductions actions identified in the supplier’s water shortage contingency plan for a Level 2 sh ortage. Pursuant to Water Code Section 1058.5, emergency regulations adopted by the SWRCB may remain i n effect for up to one year and are deemed to be repealed immediately upon a finding by the SWRCB that due to changed conditions, it is no longer necessary for the regulation to remain in effect; and

WHEREAS, on June 16, 2021, the City approved Ordinance No. 1762, which adopted the Water Shortage Contingency Plan (“Plan”). On June 1, 2022, the City a pproved Resolution No. 10284 to adopt and implement Level 2 Demand Reduction Actions as outlined in t he Plan and as required by SWRCB’s Emergency Regulations. Pursuant to the Plan, during a Level 2 shortage, the Demand Reductions Actions under Level 1 are in effect along with the Demand Reductions Actions under Level 2; and

WHEREAS, on March 24, 2023, the Governor issued Executive Order N-5-23. Among other things, the Executive Order ends the requirement that local water agenc ies implement Level 2 shortage actions.

Nothing in the Executive Order impacts the existing ban on the use of potable water to irrigate “non- functional turf” in the commercial, industrial, and institutional sectors; and WHEREAS, as a result of Executive Order N-5-23 and the lifting of the requirement for Level 2 shortage actions, the City desires to: (1) revoke the Level 2 D emand Reduction Actions under the City’s Water Shortage Contingency Plan; (2) keep Level 1 Demand Reduct ion Actions in place; and (3) bring forward into this Resolution the existing ban on the use of potable water to irrigate non-functional turf.

NOW, THEREFORE, THE CITY COUNCIL AND THE INDIO WATER AUTHORITY BOARD DO HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The above recitals, and each of them, are true and correct; an d

Section 2. The City hereby declares that current conditions do not requi re a Level 2 Shortage declaration and consistent with Executive Order N-5-23, the Cit y is no longer required to declare a Level 2 water shortage nor implement all Level 2 Demand Reduction Actions set forth in the Plan; and

Section 3. The City hereby rescinds all Level 2 Demand Reduction Actio ns as set forth in Table 4 of the Plan; and

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 141 of 348

2 Section 4. The City hereby maintains in place all Level 1 Demand Reduct ion Actions as set forth in Table 4 of the Plan, as follows:

1.1 Applying any water to outdoor landscapes in a manner that c auses runoff such that water flows onto adjacent property, non-irrigated areas, private and public walkways, roadways, parking lots, or structures is prohibited.

1.2 Using any water in a fountain or other decorative water fea ture is prohibited, unless the water recirculates.

1.3 Applying water to driveways, sidewalks, concrete or asphal t is prohibited, unless to address immediate health and safety needs. Reasonable pressure washer o r water broom use is permitted.

1.4 Spray irrigation of outdoor landscapes during and within 4 8 hours after rainfall of 0.10 inches is prohibited.

1.5 Using a hose to wash a vehicle, windows, or solar panels i s prohibited unless an automatic shut-off nozzle or pressure washer is used.

1.6 Broken sprinklers shall be repaired within five business d ays of notification by agency, and leaks shall be repaired as soon as practical.

1.7 Draining and refilling of private swimming pools is discou raged, unless necessary for health and safety or leak repair.

1.8 Hotels will provide guests the option of choosing not to h ave towels and linens laundered daily.

1.9 Agency shall discourage overseeding.

1.10 Agency shall provide rebates for landscape efficiency.

1.11 Agency shall offer water use surveys/audits.

1.12 Agency shall provide rebates on plumbing fixtures and devices.

Section 5. The use of potable water is prohibited for the irrigation of no n-functional turf at commercial, industrial, and institutional sites as defined by S WRCB Resolution No. 2022-0018, except where such irrigation may be permitted by Section 996; and

Section 6. This Resolution shall become effective upon date of adoption; and

Section 7 . The City Clerk and Board Secretary shall certify to the adopt ion of this resolution.

PASSED, APPROVED AND ADOPTED this 17th day of May, 2023.

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 142 of 348

3 ___________________________

OSCAR ORTIZ

MAYOR/PRESIDENT

ATTEST:

________________________________

CYNTHIA HERNANDEZ

CITY CLERK/SECRETARY

APPROVED AS TO FORM:

________________________________

STEVEN GRAHAM

CITY ATTORNEY/GENERAL COUNSEL

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 143 of 348

EXECUTIVE DEPARTMENT

STATE OF CALIFORNIA
EXECUTIVE ORDER N-5-23
WHEREAS on April 21, 2021, May 10, 2021, July 8, 2021, and October 19, 2021, I proclaimed States of Emergency to exist due to drought conditions; and WHEREAS the multi-year nature of the current drought, which began three years after the record-setting drought of 2012-2016, continues to have significant, immediate impacts on communities across California with vulnerable water supplies, farms that rely on irrigation to grow food and fiber, and fish and wildlife that rely on stream flows and cool water; and
WHEREAS the March 3, 2023, snow survey conducted by the Department of Water Resources and partner agencies found that most regions of the Sierra Nevada are above average for snow water content, and some regions are nearing record amounts of snow, and snow and rain has fallen across many regions of the state since then, with more precipitation forecasted; and WHEREAS improved conditions have helped rehabilitate surface water supplies, but have not abated the severe drought conditions that remain in some parts of the State, including the Klamath River basin and the Colorado River basin, and many groundwater basins throughout the State remain depleted from overreliance and successive multi-year droughts; and WHEREAS continued action by the State is needed to address ongoing consequences of the drought emergency, including groundwater supply shortages, domestic well failures, and drought-related harm to native fishes in the Klamath River and Clear Lake watersheds; and
WHEREAS the drought emergency has required a dynamic and flexible response from the State, and several provisions in my prior Proclamations and Orders have been terminated or superseded already, specifically Paragraphs 4 and 8 of my State of Emergency Proclamation dated April 21, 202l, Paragraphs 2, 4, and 7 of my State of Emergency Proclamation dated May 10, 2021, Paragraphs 3, 4, 5, 6, and 10 of my State of Emergency Proclamation dated July 8, 2021, and Paragraph 9 of Executive Order N-7-22; and WHEREAS improved conditions warrant an even more targeted State response to the ongoing drought emergency and certain provisions in my State of Emergency Proclamations dated April 21, 202 l, May 10, 2021, July 8, 2021, and October 19, 2021, and in Executive Orders N-10-21, N-7-22, and N-3-23 provide authority that is no longer needed to mitigate the effects of the drought conditions or direct actions by state agencies, departments, and boards that have already been completed; and
WHEREAS notwithstanding the rescission of certain emergency authorities for emergency drinking water action, state agencies have existing legal authority and funding to continue expedited work to advance the human right to water, and state agencies will continue all ongoing drought resilience planning work, including through coordination with loca l agencies and tribes; and

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 144 of 348 WHEREAS next winter's hydrology is uncertain and the most efficient way to preserve the State's improved surface water supplies is for Californians to continue their ongoing efforts to make conservation a way of life; and WHEREAS to protect public health and safety, it is critical the State take certain immediate actions without undue delay to prepare for and mitigate the effects of the drought conditions, and under Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this Order would prevent, hinder, or delay the mitigation of the effects of the drought conditions.

NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, including the California Emergency Services Act, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:

IT IS HEREBY ORDERED THAT:
l . The orders and provisions contained in my State of Emergency Proclamations dated April 21, 2021, May 10, 2021, July 8, 2021, and October 19, 2021, and Executive Orders N-7-22 (March 28, 2022), N-3- 23 (February 13, 2023), and N-4-23 (March l 0, 2023), remain in full force and effect, except as modified by those Proclamations and Orders and herein. State agencies shall continue to implement all directions from those Proclamations and Orders and accelerate implementation where feasible.

2. The following provisions of my State of Emergency Proclamation dated April 21, 2021, are terminated:
a. Paragraph 2;
b. Paragraphs 5-7; and
c. Paragraphs 9-14.

3. The following provisions of my State of Emergency Proclamation dated May l 0, 2021, are terminated:
a. Paragraph 1;
b. Paragraph 3;
c. Paragraph 5; and
d. Paragraphs 9-10.

4. The following provisions of my State of Emergency Proclamation dated July 8, 2021, are terminated:
a. Paragraph 2;
b. Paragraphs 7-8, except those portions of paragraph 7 withdrawing provisions of prior orders;
c. Paragraphs 11-12.

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 145 of 348

5. The following provisions of my State of Emergency Proclamation dated October 19, 2021, are terminated:
a. Paragraph 2;
b. Paragraphs 4-5;
c. Paragraph 8; and
d. Paragraph 10.

6. The following provisions of Executive Order N-10-21 are terminated:
a. Paragraph 1; and
b. Paragraph 3

7. The following provisions of Executive Order N-7-22 are terminated:
a. Paragraphs 1-3;
b. Paragraph 6; and
c. Paragraphs 14-15.

8. The following provisions of Executive Order N-3-23 are terminated:
a. Paragraph 1; and
b. Paragraph 3, except those portions of the paragraph
withdrawing provisions of prior orders.

9. Paragraph 6 of my State of Emergency Proclamation dated May 10, 2021, and Paragraph 9 of my State of Emergency Proclamation dated July 8, 2021, are withdrawn and replaced with the following text:

To ensure critical instream flows for species protection in the Klamath River and Clear Lake watersheds, the State Water Resources Control Board (Water Board) and Department of Fish and Wildlife shall evaluate the minimum instream flows and other actions needed to protect salmon, steelhead, the Clear Lake Hitch, and other native fishes in critical streams systems in these watersheds and work with water users, tribes, and other parties on voluntary measures to implement those actions. To the extent voluntary actions are not sufficient, the Water Board, in coordination with the Department of Fish and Wildlife, shall consider emergency regulations to establish minimum instream flows to mitigate the effects of the drought conditions. For purposes of state agencies carrying out or approving any actions contemplated by this paragraph, Public Resources Code, Division 13 (commencing with Section 21000) and regulations adopted pursuant to that Division are suspended. Nothing in this Paragraph affects or limits the validity of actions already taken in the Klamath and Clear Lake watersheds or ongoing under Paragraph 6 of my State of Emergency Proclamation dated May 10, 2021, or Paragraph 9 of my State of Emergency Proclamation dated July 8, 2021 .

IT IS FURTHER ORDERED that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order.

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 146 of 348 This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.

IN WITNESS WHEREOF I have hereunto set
my hand and caused the Great Seal of the
State of California to be affixed this 24th
day of March 2023.
overnor of California
ATTEST:

SHIRLEY N. WEBER, PH.D.

Secretary of State

AGENDA ITEM #10.5
Resolution No. 10356 to revoke Resolution No. 10284 which enacted Level ... Page 147 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Carl S. Morgan, Dir. Of Economic Development Subject: Approval of a Commercial Lease Agreement with Angelica Trujillo dba True Awakening Studio located at 45110 Oasis Street.

RECOMMENDATION:

Approval of a Commercial Lease Agreement with Angelica Trujillo doing business as (dba) True Awakening Studio.

SUMMARY:

Downtown Indio is in the middle of a renaissance with 18 new projects under construction or planned to start in the near future. With over $200 million in public and private investments coming to Downtown, which include Indio Taproom, Italica, Ga binos Creperie, Desert Beer, Co, Little Street Music Hall, College of the Desert campus expansion and Child Development Center, and over 110 mixed-use apartment units. The proposed lease is consistent with this long-range planning document and will stimulate new investment, create new jobs and generate additional sales tax revenues for the community.

BACKGROUND INFORMATION:

The proposed lease with Angelica Trujillo dba True Awakening Studio represents another business choosing to invest in Downtown Indio . True Awakening Studio seeks to lease 45110 Oasis Street, which accounts for approximately 1,260 square feet of space. True Awakening Studio will be moving into Downtown Indio from its current location in Coachella.

On March 8, 2023, the City Council a uthorized staff to negotiate a lease of the city -owned property located at 45110 Oasis Street consisting of 1,260 square feet.

In terms of the General Plan, the property on Smurr Street is within the Downtown Specific Plan zoned Downtown-Core (DT-C) characterized by lively, pedestrian-oriented retail and restaurant uses. Goal ED-7 of the General Plan states that an economic development goal is to have “A City with the destination hospitality, retail, and entertainment opportunities to meet the needs of v isitors and residents.” Additional restaurant hospitality uses will conform to such a goal as part of the City's economic development strategy. Accordingly, the proposed lease is consistent with the General Plan and staff recommends that the City Council find that the lease of the property is in conformance with the General Plan.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 148 of 348

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$40,000 In current year budget: Yes
Current FY General
Fund Impact:
$0 Budget adjustment: No
Next FY Financial
Impact:
$0 Strategic Objective: Downtown & Hwy 111
Revitalization
Source of funds: ARPA Fund-Org-Object
Reference:
241

Additional Financial Details:

The salient terms of the Building Lease Agreement are as follows:

Premises: The building is located at 45110 Oasis Street (Attachment 2). The property consists of a one-story building of approximately 1,260 square feet.

Permitted Use of Premises: The Premises shall open and be used solely for the operation of retail record store to be open a minimum of 6 days a week.

Lease Term: The term of the Agreement is five (5) years.

Rent Commencement Date: Six months from when the Landlord delivers the keys to the tenant.

Rent: The rent shall be $630.00 per calendar month during the Term, prorated for any partial calendar month in the Term.

Security Deposit: Tenant shall pay the Security Deposit of $3,000 to Landlord on the date Tenant signs and delivers a counterpart of this Lease to Landlord.

Condition of Premises: Tenant is accepting the Premises in their current “as -is” condition, without representation or warranty, express or implied. Tenant Improvements: The first is the Tenant’s initial improvements that are paid for by the Tenant with their own capital. The second type of improvements are those paid for with the tenant improvement allowance. All tena nt improvements are subject to review and approval by the City.

Prevailing Wages: In making the tenant improvements, the Tenant shall comply with the prevailing wage laws.

Possessory Interest Taxes and Utilities: Tenant shall be responsible for the pay ment of all real property taxes on Tenant’s possessory interest and all charges for gas, electricity, telephone service, water, sewer service, trash removal, and other utilities and services furnished to the Property during the Term.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 149 of 348 Tenant Improvement A llowance: Landlord is providing the Tenant with a tenant improvement allowance of Forty Thousand Dollars ($38,000) that will be utilized for the actual costs of design and construction of certain Improvements.

ATTACHMENTS:

Attachment 1 Lease - True Awakening
Attachment 2 Property Location Map

APPROVAL(S):

Carl S. Morgan, Dir. Of Economic Development Approved - 11 May 2023 Steven Graham, City Attorney Approved - 11 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 12 May 2023 Bryan H. Montgomery, City Manager Approved - 12 May 2023

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 150 of 348

CITY OF INDIO COMMERCIAL LEASE AGREEMENT
SINGLE-TENANT – 45110 OASIS STREET
This Commercial Lease Agreement (“Lease”), dated the 17 rd day of May, 2023, for reference purposes only, is made by and between the CITY OF INDIO, a California municipal corporation (“Landlord”), and ANGELICA TRUJILLO, a sole proprietor, doing business as “TRUE AWAKENING STUDIO” (“Tenant”). Landlord and Tenant are sometimes referred to in this Lease individually as a “Party”, and collectively as “Parties.”

ARTICLE I
PREMISES; EFFECTIVE DATE; TERM; DUE DILIGENCE PERIOD; MONTHLY RENT; DEPOSIT; USE; TENANT IMPROVEMENTS;

1.1 Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, in accordance with the terms and conditions of this Lease, space within a building located at 45110 Oasis Street, approximately located as shown by the shaded area and arrow on Exhibit “A” entitled “Lease Plan” (“Premises”).

1.2 Effective Date. This Lease shall not become effective until it has been approved by the governing body of Landlord and executed by the Parties.

1.3 Term. The lease term shall commence on May 17, 2023 (“Commencement Date”) and continue for a period of five (5) years and shall expire on May 17, 2028 (“Expiration Date”) unless terminated earlier pursuant to provisions herein. Upon mutual written consent, Parties have the option to renew the lease. The length of such renewal term shall be negotiated by the Parties, and the monthly rental amount for that renewal term shall be 3-5% above the monthly rental amount in the preceding lease year.

1.4Due Diligence Period. Notwithstanding anything herein to the contrary, Tenant shall have a period of one hundred eighty (180) days from the Effective Date of the Lease (“Due Diligence Period”) to conduct due diligence activities, including making all Tenant Improvements, conducting any inspections, testing, investigations, studies, obtaining of permits, variances and approvals that are reasonably necessary to build and operate the Premises as a Day Spa. Tenant shall have a right of access to the Premises during the Due Diligence Period. Tenant acknowledges that all of the terms and conditions of this Lease shall apply during the Due Diligence Period, including, without limitation, the insurance and indemnification requirements herein. Tenant shall promptly repair any and all damage to the Premises caused by the inspections, testing, investigations, and studies permitted by this Section. Should Tenant be unable to obtain Permits within the Due Diligence Period, parties may extend the Due Diligence Period by written amendment to this Lease.

1.5 Monthly Rent. Tenant shall pay to Landlord, commencing on November 17, 2023, Monthly Rent in the amount of Five Hundred Eighty Dollars ($580). Monthly Rent shall be paid in the matter specified in Section 3.1 of this Lease, entitled “Payment of Rent.”

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 151 of 348 2 1.6 Security Deposit. Tenant shall deposit with Landlord a security deposit for the Premises in the amount of Three Thousand Dollars ($3,000) (“Deposit”). The Deposit shall be subject to the terms and conditions contained in Section 3.3 of this Lease.

1.7 Permitted Use. Tenant agrees to use the Premises for the following purpose(s), and for no other purpose: Day Spa.

1.8Tenant Improvements. Landlord shall grant to Tenant an allowance of up to Thirty Eight Thousand Dollars ($38,000) (“Tenant Improvement Allowance”) for the construction of improvements, as set forth in the Schedule of Performance in Exhibit “C,” attached hereto and incorporated herein (“Tenant Improvements”), as follows:

A. 20 Percent: Seven Thousand Six Hundred Dollars ($7,600) upon the issuance of building permits.

B. 60 Percent: An amount not to exceed Twenty Two Thousand Eight Hundred Dollars ($22,800) upon receipt by Landlord of “adequate documentation” of Tenant’s expenses for Tenant Improvements, not to be paid more often than monthly.

C. 20 Percent: Seven Thousand Eight Hundred Dollars ($7,600) upon thirty (30) days of opening, provided all lien releases are in place and are approved by Landlord in its sole and absolute discretion.

As used in subsection B above, “adequate documentation” of Tenant’s expenses for the construction of the Tenant Improvements shall consist of signed invoices and/or receipts from vendors, contractors, and/or subcontractors for services, product, and/or supplies rendered/provided, or to be rendered/provided with respect to the construction of the Tenant Improvements.)

1.9 Schedule of Performance. Tenant’s Schedule of Performance identifies the Tenant Improvements and provides the timeline for Tenant to complete the improvements to the Premises and is attached hereto as Exhibit “C.” If Tenant does not meet the Schedule of Performance, Landlord shall provide a notice of default to Tenant and Tenant shall have thirty (30) calendar days to perform or to demonstrate significant progress to Landlord in the performance milestone. Tenant shall not be considered in default of said performance due to any force majeure. If Tenant fails to cure said default, then Landlord reserves the right to terminate the Lease upon provision of a final notice of default.

20. Prevailing Wages. In making any approved Tenant Improvements, Tenant shall comply with all applicable laws, including prevailing wage laws (California Labor Code Sections 1720 et seq.), and shall defend, indemnify and hold Landlord harmless from and against any and all claims by any third parties, including but not limited to, contractors and subcontractors for prevailing wages.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 152 of 348 3 ARTICLE II
CONDITION OF PREMISES; DELIVERY OF PREMISES

2.1 Condition of Premises. Tenant has examined the Premises and agrees to take possession of the Premises in an “as is” condition. Tenant hereby acknowledges: (a) that it has been advised to satisfy itself with respect to the condition of the Premises (including but not limited to the electrical and fire sprinkler systems, security, environmental aspects, seismic and earthquake requirements, and compliance with the Americans with Disabilities Act), and applicable zoning, municipal, county, state and federal laws, ordinances and regulations and any covenants or restrictions of record (collectively “Applicable Laws”) and the present and future suitability of the Premises for Tenant’s intended use; (b) that Tenant has made such investigation as it deems necessary with reference to such matters, is satisfied with reference thereto, and assumes all responsibility therefore as the same relate to Tenant’s occupancy of the Premises and/or the terms of this Lease; and (c) that neither Landlord, nor any of Landlord’s agents, has made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease.

As required by California Civil Code No 1938, an ADA Survey has not been conducted by a Certified Access Specialist for the Premises. A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, Landlord may not prohibit Tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of Tenant, if requested by Tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.

2.2 Delivery of Premises. Landlord agrees to use its best commercially reasonable efforts to deliver possession of the Premises to Tenant by the Commencement Date of this Lease, as specified in Section 1.3. If, despite said efforts, Landlord is unable to deliver possession as agreed, Landlord shall not be subject to any liability therefore, nor shall such failure affect the validity of this Lease. Tenant shall not, however, be obligated to provide Monthly Rent or perform any other obligations under this Lease, until it receives possession of the Premises. If possession is not delivered within thirty (30) calendar days after the Commencement Date, Tenant may, by notice in writing after the end of such thirty (30) calendar day period, cancel this Lease and the Parties shall be discharged from all obligations hereunder.

2.3 Landlord Access. Landlord, and its authorized agents, representatives, and employees, may enter the Premises at any time in case of emergency, and otherwise at reasonable hours, with advanced written notice to: (i) inspect the Premises; (ii) exhibit the Premises to prospective purchasers, lenders, insurers or tenants; (iii) determine whether Tenant is complying with all its obligations hereunder; (iii) take possession due to any uncured, material breach of this Lease in the manner provided herein; (iv) perform any covenants of Tenant which Tenant fails to perform; and (v) repair, alter, or improve the Premises or any portion of the Premises, and may for such purposes erect, use and maintain scaffolding, pipes, conduits, and other structures in and through the Premises where reasonably required by the nature of the work

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 153 of 348 4 to be performed; provided, however, that all such work shall be done as promptly as reasonably possible and so as to cause as little interference with the operation of Tenant’s business as reasonably possible. Tenant hereby waives any claim for damages, including but not limited to interference with business, lost profits, and any other incidental or consequential damages of any sort whatsoever, for any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises or any other loss occasioned by such entry.

Landlord shall at all times have and retain a key with which to unlock all of the doors in or about the Premises (excluding Tenant’s vaults, safes, and similar areas designated in writing by Tenant in advance); and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency in order to obtain entry to the Premises, and any entry to the Premises obtained by Landlord by any of said means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into or detainer of the Premises or an eviction, actual or constructive, of Tenant from the Premises or any portion thereof. No provision of this Lease shall be construed as obligating Landlord to perform any repairs, alterations, or improvements except as otherwise expressly agreed to be performed by Landlord in this Lease.

2.4 Vehicle Parking. Intentionally Omitted.

ARTICLE III
PAYMENT OF MONTHLY RENT; SECURITY DEPOSIT; LATE CHARGES

3.1Payment of Rent. Monthly Rent shall be paid in advance on or before the first calendar day of each month during the Term. If the Term commences on a calendar day other than that first calendar day of the month or ends on a calendar day other than that last calendar day of a calendar month, then Monthly Rent will be appropriately prorated by Landlord based on the actual number of calendar days in such month. If the Term commences on a calendar day other than the first calendar day of a calendar month, then the prorated Monthly Rent for such month shall be paid on or before the first calendar day of the Term. Monthly Rent shall be paid to Landlord without written notice or demand, and without offset, in lawful money of the United States of America at Landlord' s address, or to such other address as Landlord may from time to time designate in writing.

3.2Rent Adjustment and Improvements. Omitted.

3.3Security Deposit. If Tenant defaults with respect to any provision of this Lease, including but not limited to the provisions related to the payment of Monthly Rent, Landlord may use, apply, or retain all or any part of the Deposit for the payment of rent, any other sum in default, or for the payment of any other amount Landlord may spend or become obligated to spend by reason of Tenant' s default, or to compensate Landlord for any other loss or damage Landlord may suffer by reason of Tenant' s default. If any portion of the Deposit is so used, applied, or retained, Tenant shall with five (5) calendar days after written demand deposit cash with the Landlord in an amount sufficient to restore the Deposit to its original amount. Landlord shall not be required to keep the Deposit separate from its general funds, and Tenant shall not be entitled to any interest earned on the Deposit. The Deposit shall not be deemed a limitation on

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 154 of 348 5 Landlord' s damages or a payment of liquidated damages or a payment of rent due for the last month of the Term.

A. Tenant specifically waives the provisions of California Civil Code Section 1950 which provides that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant, or to claim the Premises. Landlord and Tenant agree that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other foreseeable or unforeseeable loss or damage caused by the act or omissions of Tenant or Tenant's officers, agents, employees, independent contractors, or otherwise.

B. If Tenant faithfully and timely performs every provision of this Lease to be performed by it, the Deposit or balance of the Deposit shall be returned to Tenant within sixty (60) calendar days after the expiration of the Term. Landlord may deliver the funds deposited under this Lease by Tenant to the purchaser of the Premises in the event that the Premises is sold, and after such time, Landlord shall have no further liability to Tenant with respect to the Deposit.

3.4Late Charges. Tenant hereby acknowledges that late payment by Tenant of the Monthly Rent or any other sums due under this Lease will cause Landlord to incur costs not contemplated by this Lease. Such costs include, but are not limited to, processing and accounting charges and late charges which may be imposed upon Landlord by the terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of Monthly Rent or any other sums due from Tenant under this Lease, shall not be paid within ten (10) days after the time set forth in this Lease for payment thereof, Tenant shall thereupon pay to Landlord a late charge equal to ten percent (10%) of the overdue amount. Landlord and Tenant agree that this late charge represents a reasonable sum considering all of the circumstances existing on the date of this Lease, including the relationship of the sum to the loss to Landlord that could be reasonably anticipated by such nonpayment by Tenant and the anticipation that proof of actual damages sustained by Landlord would be costly or inconvenient to determine. Landlord and Tenant agree that such late charge shall in no event constitute a waiver of Tenant's default with respect to such overdue amount, nor prevent Landlord from exercising any of the other rights and remedies available to Landlord at law, in equity, or under this Lease. Landlord, at its option, may deem any such overdue amounts and/ or late charges so unpaid to be owing, nonpayment of which shall, in addition to any other rights and remedies available to Landlord, give rise to those rights and remedies of Landlord set forth in Section 12.2 of this Lease.

ARTICLE IV
USE; COMPLIANCE WITH LAWS; NON-DISCRIMINATION

4.1 Use. The Premises shall be used only for the purposes set forth in Section 1.7 and purposes incidental to that use and in accordance with the General Rules and Regulations attached hereto as Exhibit “B.” Tenant shall use the Premises in a careful, safe, and proper manner and shall not use the Premises for any disreputable business or purpose. Tenant shall not use or permit the Premises to be used or occupied for any purpose or in any manner prohibited by any applicable law, ordinance order, rule, regulation, or other governmental requirement.

Tenant shall not commit waste or suffer or permit waste to be committed in, on, or about the

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 155 of 348 6 Premises. Tenant shall conduct its business and control its employees, agents, and invitees in such a manner so as not to create a nuisance or a risk of fire or other hazard, or that would violate, suspend, void, or increase the rate of fire or liability or any other insurance of any kind at any time carried by Landlord upon the Premises.

4.2 Signs. Any signs to be installed by Tenant shall be subject to the prior written approval of Landlord and shall be installed by a sign contractor approved by Landlord. All required permits for signs shall only be obtained by the approved sign contractor who shall also be responsible for compliance with all applicable codes. Tenant shall be responsible for payment of all sign costs including installation costs, permits and costs to repair the Premises resulting from the installation or removal of such sign.

4.3 Compliance with Laws. Tenant shall comply with all applicable laws, ordinances, orders, rules, regulations, and other governmental requirements relating to the use, condition, or occupancy of the Premises. The judgment of any court of competent jurisdiction or the admission of Tenant in a proceeding brought against it by any governmental entity that Tenant has violated any such governmental requirement shall be conclusive as between the Landlord and the Tenant and shall constitute grounds for declaration of default, material breach, forfeiture, and termination of this Lease by Landlord.

4.4 Compliance with Environmental Laws. Tenant and the Premises shall remain in compliance with all applicable laws, ordinances, orders, rules and regulations regulating, relating to, or imposing liability of standards of conduct concerning any Hazardous Materials, or pertaining to occupational health or industrial hygiene, occupational or environmental conditions on, under, or about the Premises, as now or may at any later time be in effect, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”) [42 USC Section 9601 et seq.]; the Resource Conservation and Recovery Act of 1976 (“RCRA”) [42 USC Section 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act (“FWPCA”) [33 USC Section 1251 et seq.]; the Toxic Substances Control Act (“TSCA”) [15 USC Section 2601 et seq.]; the Hazardous Materials Transportation Act (“HMTA”) [49 USC Section 1801 et seq.]; the Insecticide, Fungicide, Rodenticide Act [7 USC Section 6901 et seq.] the Clean Air Act [42 USC Section 7401 et seq.]; the Safe Drinking Water Act [42 USC Section 300f et seq.]; the Solid Waste Disposal Act [42 USC Section 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 USC Section 101 et seq.] the Emergency Planning and Community Right to Know Act [42 USC Section 11001 et seq.]; the Occupational Safety and Health Act [29 USC Section 655 and 657]; the California Underground Storage of Hazardous Substances Act [H & S C Section 25288 et seq.]; the California Hazardous Substances Account Act [H & S C Section 25300 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [H & S C Section 24249.5 et seq.] the Porter-Cologne Water Quality Act [Water Code Section 13000 et seq.] together with any amendments of or regulations promulgated under the statutes cited above and any other federal, state or local law, ordinance, order, rule or regulation now in effect or later enacted that pertains to occupational health or industrial hygiene, and only to the extent the occupational health or industrial hygiene laws, ordinances, or regulations relate to hazardous substances on, under, or about the Premises, or the regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater, surface water, or land use (“Environmental Laws”).

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 156 of 348 7 A. Tenant shall immediately notify Landlord in writing and provide copies upon receipt of all written complaints, claims, citations, demands, inquiries, reports, or notices relating to the condition of the Premises or compliance with Environmental Laws. Tenant shall promptly cure and have dismissed with prejudice and of those actions and proceedings to the satisfaction of Landlord. Tenant shall keep the Premises free of any lien imposed pursuant to and Environmental Law.

B. For the purpose of Section 4.4, the term “Hazardous Materials” shall include, without limitation, substances defined as “hazardous substances,” “hazardous materials,” “toxic substances,” “hazardous wastes,” “extremely hazardous wastes,” or “restricted hazardous wastes,” or stated to be known to cause cancer or reproductive toxicity, under any Environmental Law. Tenant shall not permit to occur any release, generation, manufacture, storage, treatment, transportation, or disposal of any Hazardous Materials. Tenant shall promptly notify Landlord in writing if Tenant has or acquires notice or knowledge that any Hazardous Materials have been or are threatened to be released, discharged, disposed of, transported, or stored on, in, under, or from the Premises; and if any Hazardous Materials are found on the Premises, Tenant, at its sole cost and expense, shall immediately take such action as is necessary to detain the spread of and remove the Hazardous Material to the complete satisfaction of Landlord and the appropriate governmental authorities.

C. Landlord shall, at Landlord’s sole cost and expense, have the right at all reasonable times and from time to time to conduct environmental audits of the Premises, and Tenant shall cooperate in the conduct of those audits.

D. If Tenant fails to comply with the forgoing covenants pertaining to Hazardous Materials, Landlord may cause the removal (or other cleanup acceptable to Landlord) of any Hazardous Materials from the Premises. The costs of Hazardous Materials removal and any other cleanup (including transportation and storage costs) will be owing under this Lease, whether or not a court has ordered the cleanup, and those costs will become due and payable on demand by the Landlord. Tenant shall give Landlord, its agents and employees, access to the Premises to remove or otherwise cleanup any Hazardous materials. Landlord, however, has no affirmative obligation to remove or otherwise cleanup any Hazardous Materials, and this Lease shall not be construed as creating any such obligation.

E. For any Hazardous Material brought on site due to Tenant’s occupancy, Tenant shall indemnify, defend (with counsel reasonably acceptable to Landlord and at Tenant’s sole cost), and hold Landlord and Landlord’s elected and appointed officials, officers, employees, agents, successors and assigns free and harmless from and against all losses, liabilities, obligations, penalties, claims, litigation, demands, defenses, costs, judgments, suits, proceedings, damages (including consequential damages), disbursements or expenses of any kind (including attorneys’ and experts’ fees and expenses and fees and expenses incurred in investigating, defending or prosecuting any litigation, claim or proceeding) that may at any time be imposed upon, incurred by, or asserted or awarded against Landlord in connection or arising out of: (i) any Hazardous Material on, in, under or affecting all or any portion of the Premises, (ii) any violation or claim of violation of any Environmental Law by Tenant; or (iii) the

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 157 of 348 8 imposition of any lien for the recovery of costs for environmental cleanup or other response costs relating to the release or threatened release of Hazardous Materials on, in, under or affecting all or any portion of the Premises. Tenant’s indemnification shall survive the expiration and termination of this Lease.

4.5 Non-Discrimination. Tenant herein covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through it, and this Lease is made and accepted upon and subject to the requirement that there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, genetic information, gender, gender identity, gender expression, marital status, age, national origin, or ancestry, in the leasing, use, occupancy, tenure, or enjoyment of the Premises, nor shall the Tenant itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of Tenants, sub-tenants, or vendees in the Premises herein leased.

ARTICLE V

TAXES AND UTILITIES

5.1 Possessory Interest Tax/Property Taxes. Tenant recognizes and understands that this Lease may create a possessory interest subject to taxation and that Tenant may be subject to the payment of taxes levied on such interest. Tenant shall pay all taxes including without limitation any possessory interest, real estate and personal property taxes and assessments assessed, levied, confirmed or imposed during the Term of this Lease, whether or not now customary or within the contemplation of Landlord and Tenant: (i) upon, measured by or reasonably attributable to the cost or value of Tenant’s equipment, furniture, fixtures and other personal property located in the Premises, or by the cost or value of the leasehold improvements made in or to the Premises by or for Tenant, regardless of whether title to the improvements is in Tenant or Landlord; (ii) upon or with respect to the possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any portion of the Premises; (iii) upon the Premises and all personal property, furniture, fixtures and equipment, and all replacements, improvements, or additions to them, whether owned by Landlord or Tenant; and (iv) upon this transaction or any document to which Tenant is a party creating or transferring and interest or an estate in the Premises.

5.2 Utilities. Tenant shall pay the appropriate suppliers for all water, gas, power, electricity, light, heat, telephone, facsimile, internet, and other utilities and communications services used by Tenant on the Premises during the Term, including the taxes thereon, whether or not the services are billed directly to Tenant. Tenant shall procure, or cause to be procured, without cost to Landlord, any and all necessary permits, licenses, or other authorizations required for the lawful and proper installation and maintenance upon the Premises of wires, pipes, conduits, tubes and other equipment and appliances for use in supplying any of the services to and upon the Premises. Landlord, upon request of Tenant, shall at the sole expense and liability of Tenant, join with Tenant in any application required for obtaining and continuing any of the services.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 158 of 348 9 ARTICLE VI
INSURANCE; INDEMNIFICATION; WAIVER AND RELEASE

6.1 Minimum Insurance Requirements. Tenant, at its sole cost and expense, commencing on the date Tenant is given access to the Premises, and continuing during the Term, shall procure, pay for, and thereafter keep in full force and effect the following types of insurance, in at least the amounts and in the forms specified below:

A. Commercial General Liability (CGL) with limits no less than Two Million Dollars ($2,000,000.00) per occurrence basis including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than Two Million Dollars ($2,000,000) per occurrence. Tenant shall maintain in force liability insurance, at all times during the term of this Lease and any renewal or extension thereof, which shall insure and indemnify Landlord, the City Council and each member thereof, and every officer and employee of Landlord against liability or financial loss resulting from any suits, claims or actions brought by any person or persons and from all costs and expense of litigation brought against Landlord, the City Council and every member thereof for any injury to persons and/or damage to property in, on or about the Premises by reason of the use or occupation by Tenant or by any other person or persons of the Premises and the activities of Tenant.

B. A policy or policies of Workers Compensation insurance in the amount required by the State of California.

C. Property Insurance against all risk of loss at full replacement cost with no coinsurance penalty provision at Tenant’s cost and expense, shall be obtained and at all times during the term hereof maintain in effect covering (1) all improvements included in the Premises; (ii) Tenant’s trade fixtures, furnishings, equipment, and inventory of merchandise located in the Premises; and (2) all alterations, additions, and changes made in or to the Premises during the term of this Lease at Tenant’s expense, providing protection to the extent of not less than one hundred percent (100%) of the insurable value of all said items against any peril included under insurance industry practices in the jurisdiction of the Premises within the classification “fire and extended coverage,” together with insurance against vandalism, malicious mischief, and sprinkler leakage or other sprinkler damage, if sprinklers are installed, and including “use and occupancy” and/or “business interruption” coverage. Tenant hereby waives any and all rights of recovery against Landlord for any loss occurring to such items on account of fire or other casualty, and the aforesaid policies of insurance shall contain appropriate provision recognizing this release by Tenant and waiving all right of subrogation by the insurance carrier. The proceeds of such insurance, so long as this Lease remains in effect, shall be used to repair or replace the items so insured in the event of loss on account of fire or other casualty.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 159 of 348 10 D. Automobile Liability: Covering any auto, or if Tenant has no owned autos, hired, and non-owned autos, with limits no less than the amount required by law per accident for bodily injury and property damage.

E. Plate Glass Insurance: Plate glass insurance covering all plate glass on the Premises at full replacement value; provided that Tenant shall be permitted to self-insure plate glass insurance.

F. Insurance covering all of Tenant’s Improvements and Tenant’s Alterations, in an amount not less than their full replacement value from time to time, including replacement cost endorsement, providing protection against any peril included within the classification Fire and Extended Coverage, sprinkler damage, vandalism, malicious mischief and such other additional perils as covered in an “all risks” standard insurance policy. Any policy proceeds shall be used for the repair or replacement of the property damaged or destroyed unless this Lease shall cease and terminate under the provisions of Article 14.

G. Business Interruption Insurance: Commercially reasonable business interruption insurance.

6.2 Delivery of Evidence of Tenant’s Insurance. Each such insurance policy or certificate thereof shall be delivered to Landlord by Tenant on or before the effective date of such policy and thereafter Tenant shall deliver to Landlord renewal policies or certificates at least thirty (30) calendar days prior to the expiration dates of the expiring policies. In the event that Tenant shall fail to insure or shall fail to furnish Landlord the evidence of such insurance as required by Article VI, Landlord may from time to time acquire (without any obligation to do so) such insurance for the benefit of Tenant or Landlord or both of them for a period not exceeding one (1) year, and any premium paid by Landlord shall be recoverable from Tenant. Tenant’s compliance with the provisions of Article VI shall in no way limit Tenant’s liability under any of the other provisions of this Lease. Landlord may at any time, and from time to time, inspect and/or copy any and all insurance policies required by this Lease.

6.3 Other Insurance Requirements. The insurance to be acquired and maintained by Tenant shall be with companies admitted to do business in the State of California and companies of Best’s Rating Guide of A or better. Tenant shall deliver to Landlord, prior to taking possession of the Premises, a certificate of insurance evidencing the existence of the policies required hereunder, and such certificate shall certify that the policy:

A. Names Landlord and any other entities designated by Landlord as additional insureds under the Commercial General Liability policy; B. Shall not be canceled or altered without thirty (30) calendar day’s prior written notice to Landlord;
C. Insures performance of Tenant’s indemnity set forth in this Lease;

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 160 of 348 11 D. Provide that no act or omissions of Tenant shall affect or limit the obligations of the insurer with respect to other insureds or including Landlord; E. Include all waiver of subrogation rights endorsements necessary to affect the provisions below; and
F. Provide that the commercial general liability policy and the coverage provided shall be primary, that Landlord although an additional insured, shall nevertheless be entitled to recovery under such policy for any damage to Landlord by reasons of acts or omissions of Tenant, and that coverage carried by Landlord shall be noncontributory with respect to policies carried by Tenant.

6.4 Mutual Waiver of Subrogation. The Parties hereto release each other and their respective authorized employees, agents, and representatives, from any and all claims, demands, loss, expense, or injury to any person, or to the Premise or to personal property, including, but not limited to, furnishings, fixtures or equipment located therein, caused by or resulting from perils, events, or happenings which are the subject of insurance in force at the time of such loss.

Each Party shall cause each insurance policy obtained by it to provide that the insurer waives all right of recovery by way of subrogation against either party in connection with any damage covered by any policy. Neither Party shall be liable to the other for any damage caused by fire or any of the risks insured against under any insurance policy in effect as required by this Lease.

6.5 No Ownership. Nothing contained in Article VI shall be construed as creating or implying the existence of: (i) any ownership by Tenant of any fixtures, additions, alterations, or improvements in or to the Premises, or (ii) any right on Tenant’s part to make any addition, alteration, or improvement in or to the Premises.

6.6 Indemnity. Tenant agrees, except as to the sole negligence or willful misconduct of Landlord, to fully indemnify, defend, and hold Landlord, its elected and appointed officials, officers, employees, agents, successors and assigns, free and harmless from any and all third- party claims, liability, loss, damage, costs, or expenses, including attorney fees, resulting from Tenant’s occupation or use of the Premises, specifically including, without limitation, any claim of liability, loss or damage arising by reason of:

A. The death or injury of any person or persons, including Tenant or any person who is an employee, agent, guest, or customer of Tenant, or by reason of the damage or destruction of any property, including property owned by Tenant or any person who is an employee, agent, guest, or customer of Tenant, and caused or allegedly caused by either the condition of the Premises, or some act or omission of Tenant or of some agent, contractor, employee, servant, guest, or customer of Tenant on the Premises; B. Any work performed on the Premises or materials furnished to the Premises at the instruction or request of Tenant; and

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 161 of 348 12 C. Tenant’s failure to perform any provision of this Lease, or to comply with any requirement of local, state, or federal law or any requirement imposed on Tenant or the Premises by any duly authorized governmental agency or political subdivision.

6.7 Waiver and Release. Tenant waives and releases all claims against Landlord, its employees, and agents with respect to the matters for which Landlord has disclaimed liability pursuant to the provisions of this Lease. In addition, Tenant agrees that Landlord, its elected and appointed officials, employees, agents, successors and assigns shall not be liable for any loss, injury, death, or damage (including consequential damages) to persons, property, or Tenant’s business occasioned by theft; acts of God; public enemy; injunction; riot; strike; insurrection; war; terrorism; court order; order of governmental body or authority; earthquake; fire; explosion; falling objects; water; rain; snow; leak or flow of water, or by dampness or from the breakage, leakage, obstruction, or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning, or light fixtures; or from construction, repair, or alteration of the Premises; or from any acts or omissions of any visitor of the Premises; or from any cause beyond Landlord’s control.

ARTICLE VII
REPAIRS AND MAINTENANCE; ALTERATIONS

7.1 Tenant Obligations. Tenant shall maintain in good condition and repair, the entirety of the Premises (except that portion of Premises to be maintained by Landlord under Section 9.2 below), including the Improvements and all Fixtures, and the HVAC systems, as well as the landscaping and all parking areas (collectively “Premises Systems”). Notwithstanding the foregoing, in case of complete HVAC failure or breakage that is beyond repair as documented by a third-party professional, Landlord and Tenant shall equally pay for the replacement of the HVAC system with Landlord and Tenant each paying 50% of the cost. In such case, Tenant shall obtain at least three bids, with Landlord having final approval of the contactor for such work.

7.2 Alterations. Tenant shall not make any alterations, improvements or additions in, on or about any of the Premises, without first obtaining Landlord’s prior written consent.

A. All alterations, improvements, or additions in, on or about the Premises, whether temporary or permanent in character, shall immediately become Landlord’s property and at the expiration of the Term of this Lease shall remain on the Premises without compensation to Tenant.

B. By notice given to Tenant no less than ninety (90) calendar days prior to the expiration of the Term of this Lease, Landlord may require that any alterations, improvements, or additions in, on or about the Premises be removed by Tenant. In that event, Tenant shall remove the alterations, improvements or additions at Tenant’s sole cost and expense and shall restore the Premises to the condition in which the Premises was before the alterations, improvements, and additions were made, reasonable wear and tear accepted.

7.3 Mechanic’s Liens. Tenant shall pay or cause to be paid all costs and charges for:
(i) work done by Tenant or caused to be done by Tenant, in or to the Premises, and (ii) all

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 162 of 348 13 materials furnished for or in connection with such work. Tenant shall indemnify the Landlord against and hold the Landlord and the Premises free, clear and harmless of and from any liens or claims of liens arising out of any work performed, materials furnished, or obligations incurred by the Tenant, and Tenant shall be responsible for the removal of any such liens and all costs to remove same. Failure to remove any such liens within thirty (30) calendar days of written request by Landlord shall constitute a default of this Lease. At its election, but without having any obligation to do so, the Landlord may pay such liens not so removed by the Tenant and the amount expended by Landlord shall be paid by Tenant within fifteen (15) calendar days after delivery of a statement for the expense.

7.4 Landlord Obligations. Landlord shall repair, maintain in good and tenantable condition and replace, as necessary, the roof, exterior walls and structural components of the Premises (including the structural floor) and all meters, pipes, conduits, equipment (excluding heating, ventilation and air conditioning equipment), components and facilities that supply the Premises with utilities (except as the appropriate utility company has assumed these duties); provided however that Landlord shall not be required to make repairs necessitated by reason of any acts or omissions of Tenant, including negligence or willful misconduct of Tenant or anyone claiming under Tenant, by reason of the failure of Tenant to perform or observe any conditions or agreements of this Lease, or by reason of improvements made by Tenant or anyone claiming under Tenant. Notwithstanding the foregoing, in case the Premises requires a new roof for the entirety of the building as documented by a third-party professional, Landlord and Tenant shall equally pay for the replacement roof with Landlord and Tenant each paying 50% of the cost. In such case, Tenant shall obtain at least three bids, with Landlord having final approval of the contractor for such work.

ARTICLE VIII
DAMAGE AND DESTRUCTION; CONDEMNATION

8.1 Damage or Destruction of Premises. Unless as the result of negligence or intentional unlawful act of Tenant, if during the term of this Lease, any portion of the Premises shall be damaged by fire or other catastrophic cause, so as to render such portion of the Premises untenable, the obligations under this Lease may be suspended while such portion of the Premises remains untenable. In the event of such damage, Tenant shall give Landlord notice of such untenable conditions and the Landlord shall elect in its sole discretion, whether to repair the Premises or to cancel this Lease with respect thereto. It shall notify Tenant in writing of its election within thirty (30) calendar days after service of notice by Tenant. In the event that Landlord elects not to repair the Premises or portion thereof, this Lease shall be deemed canceled as of the date the damage occurred with respect to the applicable portion(s).

8.2 Condemnation. If all or any part of the Premises shall be condemned or taken as a result of the exercise of the power of eminent domain, including any conveyance or assignment in lieu of any condemnation or taking, this Lease shall terminate as to the part so taken as of the date of taking, and in the case of a partial taking, either Landlord or Tenant shall have the right to terminate this Lease as to the balance of the Premises by notice to the other within thirty (30) calendar days after the date of such taking; provided, however, that a condition to the exercise by Tenant of such right to terminate shall be that the portion of the Premises taken shall be of such

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 163 of 348 14 extent and nature as substantially to handicap, impede or impair Tenant’s use of the balance of the Premises. In any event, Landlord shall be entitled to any and all compensation, damages, income, rent, awards and any interest therein whatsoever which may be paid or made in connection therewith, and Tenant shall have no claim against Landlord for the bonus value of any unexpired Term of this Lease or otherwise; provided, however, that nothing herein shall prevent Tenant from pursuing a separate award against the taking entity, specifically for its relocation expenses or for the taking of any personal property or trade fixtures belonging to Tenant, so long as such separate award to Tenant does not diminish any award otherwise due Landlord as a result of such condemnation or taking.

ARTICLE IX
ASSIGNMENT; SUBLETTING; PROCESSING

9.1 Assignment and Subletting. Tenant shall not assign, mortgage, pledge, encumber, or hypothecate this Lease or any interest herein (directly, indirectly, voluntarily, or involuntarily, by operation of law, or otherwise) or sublet the Premises or any part thereof, or permit the use of the Premises by anyone other than Tenant without the prior written consent of Landlord first being obtained. If Tenant is a corporation, a limited liability company or a partnership, the transfer (as a consequence of a single transaction or any number of separate transactions) of fifty percent (50%) or more of the beneficial ownership interest of the voting stock of Tenant issued and outstanding as of the date hereof, the membership interests in Tenant or the partnership interests in Tenant, as the case may be, shall constitute an assignment hereunder for which such consent is required. Further, Tenant shall not assign this Lease or sublet the Premises or any portion thereof to any corporation which controls, is controlled by or is under common control with Tenant, or to any corporation resulting from merger or consolidation with Tenant, or to any person or entity which acquires all the assets as a going concern of the business of Tenant that is being conducted on the Premises, without the prior written consent of Landlord. Any of the foregoing acts without such consent shall be void and, at the sole option of Landlord, constitute an Event of Default entitling Landlord to terminate this Lease and to exercise all other remedies available to Landlord under this Lease and at law.

A. In the event that Tenant should desire to sublet the Premises or any part thereof, or assign this Lease, Tenant shall provide Landlord with written notice of such desire at least sixty (60) calendar days in advance of the proposed effective date of such subletting or assignment. Such notice shall include: (i) the name of the proposed subtenant or assignee; (ii) the nature of business to be conducted by the proposed subtenant or assignee in the Premises; (iii) the terms and conditions of the proposed assignment or sublease including but not limited to a detailed description of all compensation in cash or otherwise which Tenant would be entitled to receive in connection with such assignment or sublease; and (iv) the most recent financial statements or other financial information concerning the proposed subtenant or assignee as Landlord may require. At any time within thirty (30) calendar days following receipt of Tenant’s notice, Landlord may by written notice to Tenant elect to: (i) terminate this Lease as to the space affected by the proposed subletting or assignment, as of the effective date of the proposed subletting or assignment; (ii) consent to the proposed subletting of the Premises or assignment of this Lease; or (iii) disapprove of the proposed subletting or assignment. Landlord may elect to terminate this Lease as to the space affected by the proposed assign or subletting in its sole and

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 164 of 348 15 absolute discretion. If Landlord does not elect to terminate this Lease, however, Landlord shall not unreasonably withhold its consent to a proposed subletting or assignment.

B. Subject to obtaining Landlord’s consent in accordance with the requirements of Section 9.1, in order for any assignment or sublease to be binding on Landlord, Tenant must deliver to Landlord, promptly after execution thereof, an executed copy of such sublease or assignment whereby the subtenant or assignee shall expressly assume all obligations of Tenant under this Lease as to the portion of the Premises subject to such assignment or sublease. Any purported sublease or assignment will be of no legal force or effect unless and until the proposed sublease has been consented to, in writing, by Landlord and a fully executed copy thereof has been received by Landlord.

C. Regardless of Landlord’s consent, no subletting or assignment shall release Tenant or any guarantor of Tenant, of its or their obligations, or alter the primary liability of Tenant and its guarantor(s), if any, to provide Monthly Rent and to perform all other obligations to be performed by Tenant hereunder. The acceptance of payments by Landlord from any other person shall not be deemed to be a waiver by Landlord of any provision hereof.

Consent to one assignment or subletting shall not be deemed consent to any subsequent or further assignment, subletting, hypothecation or third party use or occupancy. In the event of default by any assignee or successor of Tenant in the performance of any of the terms of this Lease, Landlord may proceed directly against Tenant and/or its guarantor(s), if any, without the necessity of exhausting remedies against said assignee or successor. Landlord may consent to subsequent assignments or subletting of this Lease or amendments or modifications to this Lease with assignees of Tenant, without notifying Tenant and/or its guarantor(s), if any, or any successor of Tenant, and without obtaining its or their consent thereto and such action shall not relieve Tenant and/or its guarantor(s), if any, or any successor of Tenant of liability under this Lease.

D. Landlord shall have the unconditional right to sell, encumber, pledge, convey, transfer, and/or assign any and all of its rights and obligations under the Lease without the consent of or notice to Tenant or any guarantor(s) of Tenant’s obligations hereunder.

9.2 Processing Fee. Tenant agrees to pay Landlord an administrative fee of One Thousand Dollars ($1,000.00) and an additional amount for reasonable attorney’s fees incurred in conjunction with the processing and document review of any requested transfer, assignment, subletting, license, or concession agreement, change of ownership, mortgage or hypothecation of the Lease or Tenant' s interest in and to the Premises

ARTICLE X
HOLDING OVER; SALE OF PREMISES; TERMINATION

10.1 No Right to Holdover. Tenant has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. If, without objection by Landlord, Tenant holds possession of the Premises after expiration of the Term, Tenant shall become a Tenant from month-to-month upon the terms herein specified, except that the monthly rent shall equal to one hundred and fifty percent (150%) of the monthly rent payable by Tenant

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 165 of 348 16 at the expiration of the Term. In addition, Tenant shall continue to pay all other amounts due to Landlord hereunder. Each Party shall give the other notice at least one (1) month prior to the date of termination of such monthly tenancy of its intention to terminate such tenancy. If, after objection by Landlord thereto, Tenant holds possession of the Premises after expiration of the Term, Tenant shall constitute a Tenant at sufferance and without in any way waiving the wrongful holding over of the Premises by Tenant, Landlord shall be entitled to receive for each month or portion thereof during which Tenant wrongfully holds over at the Premises monthly rent equal to two hundred percent (200%) of the monthly rent payable by Tenant at the expiration of the Term together with all other amounts otherwise due to Landlord hereunder.

Landlord' s receipt of increased monthly rent under this Section 10.1 shall not constitute an extension of the Term nor shall it constitute a waiver of Tenant' s wrongful holding over and shall not prejudice any other rights or remedies available to Landlord under this Lease or by law.

10.2 Sale of Premises. In the event Landlord, or any successor owner of the Premises, shall sell or convey the Premises, all liabilities and obligations on the part of the Landlord, or such successor owner, under this Lease accruing thereafter shall terminate, and thereupon all such liabilities and obligations shall be binding upon the new owner. Tenant agrees to attorn to such new owner.

10.3Early Termination of Tenancy. Notwithstanding any provision of this Lease to the contrary, Landlord reserves the right, in its sole and absolute discretion, and independent of whether or not Tenant may or may not be in default of this Lease, to terminate this Lease at any time by providing sixty (60) days advance written notice to Tenant of such termination. In such event, Tenant shall immediately surrender the Premises to Landlord. If Tenant fails to do so, Landlord may, without notice and without prejudice to any other remedy Landlord may have, enter upon and take possession of the Premises and expel or remove Tenant and its effects without being liable to prosecution or any claim for damages therefore. Tenant shall owe Landlord for all loss and damages which Landlord may suffer by reason of such failure of Tenant to vacate.

10.4No Relocation Assistance. Tenant acknowledges that Tenant may be displaced from the Premises, but Tenant hereby agrees that Landlord shall have no obligation to Tenant under the California Relocation Assistance and Real Premises Acquisition statutes and guidelines. Tenant, after diligent review and consideration of possible impacts, hereby waives and forever releases Landlord, including its successors, officers, employees, attorneys, agents, representatives and anyone else acting on Landlord’s behalf, of and from any and all claims, demands, actions or causes of action, obligations, liabilities, or claims for further compensation, known or unknown, based upon or relating to the California Relocation Assistance and Real Premises Acquisition statutes and guidelines and Landlord’s subsequent use and development of the Premises, or Tenant’s displacement therefrom. By such release, Tenant expressly waives its rights pursuant to California Civil Code Section 1542 which provides: “A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”

ARTICLE XI

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 166 of 348 17 SUBORDINATION; ESTOPPEL CERTIFICATES

11.1 Subordination. This Lease and the rights of Tenant hereunder are subject and subordinate to any ground or underlying lease and the lien of the holder of or beneficiary under a mortgage or deed of trust which now or in the future encumbers the Premises and to any and all advances made thereunder, and interest thereon, and all modifications, renewals, supplements, consolidations and replacements thereof. Tenant agrees that any ground or underlying landlord or lender may at its option, unilaterally elect to subordinate in whole or in part, such ground or underlying lease or the lien of such mortgage or deed or trust to this Lease. Such subordination or priority of this Lease, as the case may be, shall be effective without the necessity of executing any further instrument or agreement to effect such subordination or priority; provided, however, that Tenant agrees to execute, acknowledge, and deliver to Landlord upon demand any and all instruments required by Landlord or any such ground or underlying Landlord or lender evidencing the subordination or priority of this Lease, as the case may be. Tenant hereby irrevocably appoints Landlord as its agent and attorney-in-fact to execute, acknowledge, and deliver any such instruments in the name of and on behalf of Tenant if Tenant fails to so execute, acknowledge and deliver such instruments within ten (10) calendar days after written request therefore.

11.2 Estoppel Certificates. At any time and from time to time, Tenant shall execute, acknowledge and deliver to Landlord, within five (5) calendar days after request by Landlord, a certificate certifying, among other things: (i) that this Lease is unmodified and in full force and effect (or, if there have been modifications, that this Lease is in full force and effect, as modified, and stating the date and nature of each modification); (ii) the date, if any, to which monthly rent (if applicable) and other sums payable hereunder have been paid; (iii) that no notice has been received by Tenant of any default which has not been cured except as to defaults specified in said certificate; and (iv) such other matters as reasonably may be requested by Landlord.

ARTICLE XII
DEFAULT; REMEDIES; DISPUTE RESOLUTION

12.1 Default; Breach.

A. Default. A “Default” by Tenant is defined as a failure by Tenant to observe, comply with, or perform any of terms, covenants, conditions, or rules applicable to Tenant under this Lease, and shall include but not be limited to:
(1) Failure to provide the Monthly Rent set forth in Section 1.5 or other amounts owing pursuant to the terms of this Lease.
(2) Vacation or abandonment of the Premises or a disruption in services for a period time exceeding five (5) calendar days.
(3) Failure by Tenant to provide Landlord with reasonable evidence of insurance required under this Lease.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 167 of 348 18 (4) Failure by Tenant to timely deliver to Landlord any instrument or assurances required pursuant to this Lease, including an estoppel certificate pursuant to Section

11.2 of this Lease.
(5) Failure by Tenant to provide Landlord with reasonable written evidence (in duly executed original form, if applicable) of compliance with Applicable Requirements and Applicable Laws when requested.
(6) Occurrence of any of the following events: (i) the making by Tenant of any general arrangement or assignment for the benefit of creditors; (ii) Tenant’s becoming a “debtor” as defined in 11 U.S. Code Section 101 or any successor statute thereto (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or (iv) the attachment, execution, or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged within thirty (30) days; provided, however, in the event that any provision of this Subparagraph 12.1(A)(6) is contrary to any applicable law, such provision shall be of no force or effect, and shall not affect the validity of the remaining provisions. (7) Failure of Tenant to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of one (1) calendar day following written notice thereof by or on behalf of Landlord to Tenant. (8) Tenant making or furnishing any warranty, representation, or statement to Landlord in connection with this Lease, or any other agreement made by Tenant for the benefit of Landlord, which is or was false or misleading in any material respect when made or furnished. (9) Assignment or sublease of this Lease or any portion of the Premises, or attempt to assign or sublease this Lease or any portion of the Premises, by Tenant in violation of Section 9.1.
(10) Tenant committing waste on the Premises.
(11) Failure of Tenant to timely complete the Tenant Improvements in accordance with Exhibit “C.”
(12) Failure of Tenant to otherwise perform, satisfy, or abide by any of the terms, covenants, conditions, or provisions of this Lease.

B. Breach. In the event that Tenant is in Default of this Lease, Landlord shall notify Tenant in writing of the nature of the Default and of the corrective action to be taken. If corrective action is not commenced within ten (10) business days after receipt of written notice and not completed within thirty (30) days thereafter, or longer, if Tenant is diligently pursing

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 168 of 348 19 corrective action, such failure by Tenant shall constitute a “Breach,” and Landlord may pursue those remedies set forth in Section 12.2.

12.2 Remedies. On the occurrence of Tenant’s Breach of this Lease, Landlord shall have the right to pursue any one or more of the following remedies in addition to any other remedies now or later available to Landlord, either in law or equity, which remedies shall not be exclusive, but shall instead be cumulative: (i) remove all persons and property from the Premises and repossess same, in which case any and all of Tenant’s property that Landlord removes from the Premises may be stored in a public warehouse or elsewhere at the cost of, and for the account of, Tenant; or (ii) allow Tenant to remain in full possession and control of the Premises.

A. If Landlord chooses to repossess the Premises, then this Lease will automatically terminate in accordance with the provisions of California Civil Code Section 1951.

In the event of such termination of the Lease, Landlord may recover from Tenant:
(1) The worth at the time of award of the unpaid rent which had been earned at the time of termination, including interest at the maximum rate allowed by law;
(2) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of the award exceeds the amount of such rental loss that Tenant proves could have been reasonably avoided, including interest at the maximum rate allowed by law; (3) The worth at the time of award of the amount by which the unpaid rent for the balance of the Term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; and (4) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant' s failure to perform its obligations under this Lease or which, in the ordinary course of things, would be likely to result therefrom.

B. “The worth at the time of the award,” as used in Section 12.2(A) shall be computed by allowing interest at the maximum rate allowed by law. “The worth at the time of the award” shall be computed by discounting the amount at the discount rate of the Federal Reserve Bank at the time of the award, plus one percent (1%).

C. Tenant shall be liable immediately to Landlord for all costs Landlord incurs in reletting the Premises, including, without limitation, lost rents, eviction costs, attorney's fees, brokers' commissions, expenses of remodeling the Premises required by the re-letting, and like costs. Re-letting can be for a period shorter or longer than the remaining Term. Tenant shall pay to Landlord the rent due under this Lease on the dates the rent is due, unless Landlord notifies Tenant that Landlord elects to terminate this Lease. After Tenant's Default and for as long as Landlord does not terminate Tenant's right to possession of the Premises, if Tenant obtains Landlord's consent, Tenant shall have the right to assign its interest in this Lease, or

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 169 of 348 20 sublet all or a portion of the Premises, but Tenant shall not be released from liability or its obligations under this Lease. Landlord's consent to a proposed assignment or subletting shall be as required in Section 9.1.

D. If Landlord elects to re-let the Premises, then any rent that Landlord receives from re-letting shall be applied to the payment of: (i) first, any indebtedness from Tenant to Landlord other than rent due from Tenant; (ii) second, all costs incurred by Landlord in re-letting, including costs for maintenance; and (iii) third, Rent due and unpaid under this Lease.

E. After deducting the payments referred to in Section 12.2, any sum remaining from any rent that Landlord receives from re-letting shall be held by Landlord and applied in payment of future rent as rent becomes due under this Lease. In no event shall Tenant be entitled to any excess rent received by Landlord. If, on the date rent is due under this Lease, the rent received from any re-letting is less than the rent due on that date, then Tenant shall pay to Landlord, in addition to the remaining rent due, all costs which Landlord incurred in re-letting, including without limitation maintenance, that remain after applying the rent received from the re-letting, as provided in Section 12.2.

12.3 Continuation after Breach. Even though Tenant has breached this Lease and/or abandoned the Premises, this Lease shall continue in full force and effect for so long as Landlord does not terminate Tenant’s right to possession as provided in Section 12.2 above, and Landlord may enforce all its rights and remedies under this Lease. In such event, Landlord may exercise all of the rights and remedies of a Landlord under California Civil Code Section 1951.4, or any successor statute. Acts of maintenance or preservation or efforts to re-let the Premises or the appointment of a receiver upon initiative of Landlord to protect Landlord’s interest under this Lease shall not constitute a termination of Tenant’s right to possession.

12.4 Other Relief. In the event of re-entry or taking possession of the Premises, Landlord shall have the right but not the obligation to remove all or any part of the trade fixtures, furnishings, equipment, and personal property located in the Premises and to place the same in storage at a public warehouse at the expense and risk of Tenant or to sell such property in accordance with applicable law. The remedies provided for in this Lease are in addition to any other remedies available to Landlord at law or in equity, by statute or otherwise. Any amounts so expended by Landlord shall be immediately payable by Tenant.

12.5 Landlord's Right to Cure Default. All agreements and provisions to be performed by Tenant under any of the terms of this Lease shall be at its sole cost and expense. If Tenant shall fail to perform any other act on its part to be performed hereunder and such failure shall not be cured within the applicable cure period provided for herein, if any, Landlord may, but shall not be obligated so to do, and without waiving or releasing Tenant from any obligations of Tenant, make any such payment or perform any such other act on Tenant's part to be made or performed as provided in this Lease. All sums so paid by Landlord and all necessary incidental costs shall be on Tenant's account and shall be payable to Landlord on demand.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 170 of 348 21 12.6 Dispute Resolution. Any dispute arising out of or relating to this Lease, or breach thereof, shall be first submitted to the senior management of each Party for resolution during a thirty (30) calendar day dispute resolution period. Notice must be in writing and served pursuant to Section 13.1 herein. The foregoing dispute resolution period shall run concurrently with any notice and cure periods provided for herein.

ARTICLE XIII

GENERAL PROVISIONS

13.1 Attorneys’ Fees. Should any action or proceeding be commenced by Landlord to enforce the provisions provided in this Lease, or should any litigation be commenced between the parties to this Lease concerning said Property, this Lease, or the rights and duties of either in relation thereto, the prevailing party in such litigation shall be entitled, in addition to such other relief as may be granted as the result of said litigation, to a reasonable sum for its attorneys’ fees.

13.2Notice. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail, return receipt requested, telegraphed, delivered or sent by telex, telecopy or cable and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if mailed, three (3) business calendar days after the date of posting by the United States post office, (iii) if given by telegraph or cable, one (1) business calendar day after the date delivered to the telegraph company with charges prepaid.

To Landlord: To Tenant:

City of Indio Angelica Trujillo
100 Civic Center Mall 51075 Frederick Street Apt 213
Indio, CA 92201 Coachella, CA 92236
Attn: City Manager

A. Notice of change of address shall be given by written notice in the manner detailed in this Section. Rejection or other refusal to accept, or the inability to deliver because of changed address of which no notice was given, shall be deemed to constitute receipt of the notice, demand, request or communication sent.

B. Tenant hereby agrees that service of notice in accordance with the terms of this Lease shall be in lieu of the methods of service specified in Section 1161 of the California Code of Civil Procedure Section 1161. The provisions of California Code of Civil Procedure Section 1013(a), extending the time within which a right may be exercised or an act may be done, shall not apply to a notice given pursuant to this Lease.

13.3 Tenant Reports. On the fifteenth (15th) day of each calendar month, during the Term hereof, Tenant shall submit to Landlord a statement in writing certified to be correct (if Tenant is a corporation, the statement shall be certified by an officer of the corporation, by an officer of Tenant) as to total gross sales, from all sources, for the proceeding calendar month.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 171 of 348 22 13.4 Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

13.5 Captions. Any captions to, or headings of, the sections or subsections of this Lease are solely for the convenience of the parties hereto, are not a part of this Lease, and shall not be used for the interpretation or determination of the validity of this Lease or any provision hereof.

13.6 Amendment of Agreement. The terms of this Lease may not be modified or amended except by an instrument in writing executed by each of the Parties hereto.

13.7 Waiver. The waiver by Landlord or Tenant of any agreement, condition, or provision herein contained shall not be deemed to be a waiver of any subsequent breach of the same or any other agreement, condition or provision herein contained, nor shall any custom or practice which may grow up between the Parties in the administration of the terms hereof be construed to waive or to lessen the right of Landlord or Tenant to insist upon the performance by Tenant or Landlord in strict accordance with said terms. The subsequent acceptance of any payment hereunder by Landlord shall not be deemed to be a waiver of any breach by Tenant of any agreement, condition or provision of this Lease, other than the failure of Tenant to pay the particular amount so accepted. Specifically, Landlord may accept any payment from Tenant and apply same to any amount owing hereunder notwithstanding any stated intent or instruction on the part of Tenant to the contrary and without waiving or compromising any claim that such payment was less than the payment actually due from Tenant.

13.8 No Merger. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not work as a merger, and shall, at the option of Landlord, terminate all or any existing subleases or sub-tenancies, or may, at the option of Landlord, operate as an assignment to it of any or all such subleases or sub-tenancies.

13.9 Applicable Law. This Lease shall be governed by and construed in accordance with the laws of the State of California.

13.10 Fees and Other Expenses. Except as otherwise provided herein, each of the Parties shall pay its own fees and expenses in connection with this Lease, including any permit or license fees which Tenant may be required to obtain pursuant to its occupancy.

13.11 Authority to Execute Agreement. Landlord and Tenant represent and warrant that the individuals who have signed this Lease have the legal power, right and authority to enter into this Lease so as to bind each Party for whom they sign to perform as provided herein.

13.12 Successors and Assigns. This Lease shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. Tenant shall be responsible for the acts or omissions of its subtenant(s), if any.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 172 of 348 23 13.13 Incorporation of Exhibits. Each of the Exhibits to this Lease are incorporated by reference as though fully set forth herein.

13.14 Entire Agreement. This Lease supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between Tenant and Landlord as to the subject matter hereof. No subsequent agreement, representation, or promise made by either Party hereto, or by or to any employees or agents of either Party shall be of any effect unless it is in writing and executed by the party to be bound thereby. (Signatures on following page)

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 173 of 348 IN WITNESS WHEREOF, the Parties hereto have executed this Lease as of the calendar day and year written below.

LANDLORD:

CITY OF INDIO, a California
municipal corporation
By: ____________________________
Bryan H. Montgomery
City Manager

Date: __________________________
ATTEST:

By: _____________________________
Sabdi Sanchez
City Clerk

Date: ___________________________
APPROVED AS TO FORM:

By: ____________________________
Steven P. Graham
City Attorney
TENANT:

Angelica Trujillo, a sole proprietor, doing
business as “True Awakening Studio”
By: ____________________________
Angelica Trujillo
Sole Proprietor
Date: ___________________________

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 174 of 348 2 EXHIBIT “A”
Premises/Lease Plan
(Attachment 2)

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 175 of 348 3 EXHIBIT “B”
General Rules and Regulations

1. All floor areas of the Premises (including vestibules, entrances and air returns), doors, fixtures, windows, and plate glass shall be maintained by Tenant, in a clean, safe and good condition.

2. All trash, refuse and waste materials shall be stored in adequate containers, approved by Landlord and regularly removed from the Premises. These containers shall not be visible to the general public and shall not constitute a health or fire hazard or nuisance to any tenant. In the event that any tenant shall fail to remedy such a health or fire hazard or nuisance within five (5) days after written notice by Landlord, Landlord may remedy and/or correct such health or fire hazard or nuisance at the expense of Tenant. Tenant must obtain a separate temporary dumpster to receive its move-in merchandising debris, and construction debris from any tenant improvements or alterations. Should it be necessary for Landlord to have Tenant's solid or liquid rubbish cleaned up, the cost for such cleaning shall be charged back to Tenant along with an administrative fee of fifteen per cent (15%).

3. No portion of the Premises shall be used for lodging purposes. No cooking is allowed on the Premises unless Tenant is a restaurant.

4. Neither sidewalks nor walkways shall be used to display, store or place any merchandise, equipment or devices, except in connection with sidewalk sales held with Landlord's prior written approval in each instance.

5. No public telephone, newsstand, shoeshine stand, refreshment, vending or other coin operated machine shall be installed or placed on the sidewalk or walkway area adjacent to the Premises or on the Common Facilities without Landlord's prior written approval in each instance. No public telephones are allowed within or outside of the Premises (other than Landlord provided public telephones).

6. No person or persons shall use the Premises, or any part thereof, for conducting therein a second-hand store, auction, distress or fire sale or bankruptcy sale, or "going out of business" sale or "lost our lease" sale, without Landlord's prior written consent in each instance.

7. No portion of the Premises shall be used for the storage of any merchandise, materials or other properties, other than those reasonably necessary for the operation of Tenant's business.

Landlord may, from time to time, inspect the Premises to ensure compliance with the foregoing provisions.

8. No display areas of the Premises shall be left vacant, and Tenant shall not black out or otherwise obstruct the windows of the Premises, without Landlord's prior written consent. Signs in the windows may be limited and must be approved by the Landlord in writing.

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Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 176 of 348 4 9. Landlord shall have the absolute right to enter upon the Premises to perform such cleaning and clearing of the pipes and drains servicing the Premises (including roto-rooter service), and any grease traps and exhaust systems servicing the Premises, as Landlord shall deem necessary.

10. The sidewalks, exits and entrances shall not be obstructed by Tenant or used by it for any purpose other than for ingress to and egress from the Premises.

11. Tenant shall not alter any lock or install any new or additional locks or any bolts on any door of the Premises without the prior written consent of Landlord (except as to safes and vaults of the Tenant). Installation of floor safes will require prior written approval by Landlord and must remain with the Premises at termination.

12. The toilet rooms and urinals, wash bowls and other apparatus therein shall not be used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be placed therein. The expense of any breakage, stoppage or damage resulting from the violation of this rule shall be borne by the Tenant who, or whose employees, invitees, contractors or agents, shall have caused it.

13. Except as to normal pictures and furnishings, Tenant shall not mark, drive nails, screw or drill into the partitions, woodwork or plaster or in any way deface the Premises or any part thereof. No boring, cutting or stringing of wires shall be permitted except with the prior written consent of Landlord and as Landlord may direct. Tenant shall not lay linoleum tile, carpet or other similar floor covering so that the same shall be affixed to the floor of the Premises in any manner except as approved by Landlord. The expense of repairing any damage resulting from a violation of this rule or removal of any floor covering shall be borne by Tenant.

14. Tenant shall not use, keep or permit to be used or kept, any noxious gas or substance in the Premises, or permit or suffer the Premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the Premises by reason of noise, odors, and/or vibrations, or interfere in any way with other tenants or those having business therein. Tenant shall not make or permit to be made any loud or disturbing noises or disturb or interfere with neighbors’ use and enjoyment of their property, whether by the use of any musical instrument, radio, television, video or audio recording, shouting, or in any other manner. Tenant shall not throw anything out of doors.

15. Tenant shall not use or keep in the Premises any kerosene, gasoline or flammable or combustible fluid or material, or use any method of heating or air conditioning other than that supplied or permitted by Landlord.

16. Landlord will direct electricians as to where and how electrical, telephone, television and cable wires are to be introduced to the Premises. No boring or cutting for wires will be allowed without the prior consent of Landlord. The location of telephone call boxes and other office equipment in the Premises shall be subject to the approval of Landlord. All such consents and approvals by the Landlord must be in writing.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 177 of 348 5 17. Tenant shall be responsible for assuring that doors to the Premises are not left unlocked during non-business hours, except while moving furniture or other items in or out of the Premises.

18. Landlord reserves the right to exclude or expel from the Premises any person who, in the judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or is violating the rules and regulations of the Premises.

19. The requirements of Tenant will be attended to only upon application to Landlord’s designated property manager. Employees of Landlord shall have no obligation to perform any work for Tenant or do anything outside their regular duties for Tenant unless under special instructions from Landlord, and no employee shall have any obligation to admit any person (Tenant or otherwise) to any office of Landlord without specific instruction from Landlord.

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 178 of 348 6 EXHIBIT “C”
Schedule of Performance
To be included prior to execution of the agreement

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 179 of 348 Attachment 2
Property Location Map
(45110 Oasis Street)

AGENDA ITEM #10.6
Approval of a Commercial Lease Agreement with Angelica Trujillo dba True... Page 180 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Carl S. Morgan, Dir. Of Economic Development Subject: Approval of the Downtown Ambassador Program to enhance hospitality and safety in downtown Indio.

RECOMMENDATION:

Approve the Downtown Ambassador Program to enhance hospitality and safety in downtown Indio.

SUMMARY:

The Downtown Indio Ambassadors program is a proactive approach designed to enhance the vibrancy and vitality of Downtown Indio to ensure a welcoming and safe environment for visitors, residents, and businesses. The program aims to improve the overall downt own experience by providing assistance, guidance, and maintenance to achieve a clean and attractive downtown area.

The Downtown Indio Ambassadors will serve as knowledgeable guides, an extra layer of safety, and hospitality ambassadors for the Downtown community.

BACKGROUND INFORMATION:

Downtown Indio is in the middle of a renaissance, with 18 new projects under construction or planned to start in the near future. Over $200 million in public and private investments coming to Downtown, which include Indio Taproom, Italica, Gabinos Creperie, Desert Beer, Co, Little Street Music Hall, College of the Desert campus expansion and Child Development Center, over 110 mixed -use apartment units, and more. Maintaining a clean and safe downtown is imperative to the suc cess of Downtown Indio. Having knowledgeable and helpful Ambassaors will help add an extra layer of security and act as the eye and ears of Downtown.

The program will provide numerous benefits, including:

Enhanced Visitor Experience : The ambassadors wi ll act as attentive and welcoming hosts for visitors to enhance the downtown experience. As they will serve as the eyes and ears of downtown Indio, they will be readily available to provide assistance and valuable information, ensuring visitors have an enjoyable and memorable time.

Improved Safety and Security : The presence of the Downtown Indio Ambassadors will actively counteract any misconceptions about downtown safety by creating a reassuring environment for customers and visitors. Through the implementation of the "see something, say something" technique, the ambassadors will proactively address any issues that may arise and swiftly bring in the appropriate resources to resolve them in real-time. By taking swift action and maintaining a vigilant presence, the AGENDA ITEM #10.7
Approval of the Downtown Ambassador Program to enhance hospitality and s... Page 181 of 348 ambassadors will help instill a sense of safety and security, dispelling any negative perceptions about downtown Indio.

Clean and Attractive Downtown: The ambassadors' efforts in cleanliness and maintenance will help keep downtown Indio clean, attractive, and inviting to visitors and residents alike. This will contribute to the overall image and reputation of Downtown and create a positive impression for visitors and businesses.

Community Engagement : The ambassadors will serve as a resource to br idge the community, fostering positive experiences and building relationships with Downtown visitors. Their engagement with promote improvement, for opportunities community help will stakeholders local identify participation, and build a sense of pride and ownership in downtown Indio.

The downtown Indio Ambassadors program is a collaborative effort between the City of Indio and local stakeholders, including businesses, property owners, and community organizations. The program will be administered by the C ity of Indio and operated by a team of trained ambassadors who will be responsible for fulfilling the following duties:

Visitor Assistance : The ambassadors will be the face of downtown Indio and provide visitors a friendly and welcoming presence. They wi ll offer information, directions, and recommendations on local businesses, attractions, events, and services. They will also assist with wayfinding, parking, and provide general assistance to visitors to enhance their overall experience in downtown.

Community Engagement : The ambassadors will foster positive relationships with downtown businesses, property owners, residents, and other stakeholders. They will act as liaisons between the community and the City of Indio, addressing concerns, providing fee dback, and gathering input on ways to improve the downtown experience. The ambassadors will also promote downtown events, activities, and initiatives to encourage community participation and engagement.

Safety and Security: The ambassadors will patrol the downtown area and maintain a visible presence to deter crime, vandalism, and other safety concerns. They will report any suspicious activities or incidents to Indio Police Department.

Cleanliness and Maintenance: The ambassadors will help maintain a clean and attractive downtown by performing tasks such as litter pick up, sidewalk sweeping, graffiti removal, and reporting maintenance issues to the Public Works department. They will also work closely with non -profit organizations to coordinate efforts in keeping downtown Indio clean and well-maintained.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
0 In current year budget: N/A
Current FY General
Fund Impact:
0 Budget adjustment:

Next FY Financial
Impact:
200,000 Strategic Objective: Downtown & Hwy 111
Revitalization
Source of funds: General Fund Fund-Org-Object
Reference:
1011175-540003

AGENDA ITEM #10.7
Approval of the Downtown Ambassador Program to enhance hospitality and s... Page 182 of 348 Additional Financial Details:

The initial funding for the Downtown Indio Ambassador Program will be provided through a financial commitment from the City of Indio. In addition to the initial funding from the City of Indio, the Downtown Indio Ambassador Program will seek to create self-sustaining revenues through the operation of various events and activities. These events, such as Food Truck Fridays, Second Saturday, and Farmers Market, among others, will be designed to attract visitors, increase foot traffic in the downtown area, and generate revenue through sponsorships, advertising sales, and other means. The program will also explore opportunities for membership dues, grants, and donations to support its operations further.

The Downtown Indio Ambassador Program will be supported initially by the General Fund, but there are other future sources that could be available, including the creation of an Economic Development Corporation (EDC), and a business and property-based Business Improvement District (BID).

The Economic Development Corporation (EDC) would promote economic growth and development in the downtown area of Indio. The EDC would work to attract and retain businesses, create job opportunities, and stimulate economic activity in the downtown district. The EDC will also actively seek out grants, sponsorships, and other funding opportunities to support the Downtown Indio Ambassador Program and its initiatives.

The Business Improvement District (BID) would be a special assessment district formed by local businesses and property owners in the Downtown. The BID would work to improve the overall business environment, enhance the physical appearance of the downtown area, and promote economic vitality. The BID would collect assessments from businesses and property owners within its boundaries, and these funds will be used to support the Downtown Indio Ambassador Program and its operations.

The creation of an EDC and BID would provide additional financial resources to support the Downtown Indio Ambassador Program's initiatives, including the recruitment and training of ambassadors, event planning and coordination, marketing and advertising efforts, and other program-related expenses. These funding sources could play a critical role in ensuring the sustainability and success of the program as it works to create a welcoming and vibrant downtown environment in Indio.

ATTACHMENTS:

Downtown Ambassador Program

APPROVAL(S):

Carl S. Morgan, Dir. Of Economic Development Approved - 09 May 2023 Steven Graham, City Attorney Approved - 10 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 11 May 2023 Bryan H. Montgomery, City Manager Approved - 11 May 2023

AGENDA ITEM #10.7
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AGENDA ITEM #10.7
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Purpose:

The downtown Indio Ambassadors program is a proac�ve approach designed to enhance the vibrancy and vitality of downtown Indio to ensure a welcoming and safe environment for visitors, residents, and businesses. The program aims to improve the overall downtown experience by providing assistance, guidance, and maintenance to achieve a clean and atrac�ve downtown area. The downtown Indio Ambassadors will serve as knowledgeable guides, an extra layer of safety, and hospitality ambassadors for the downtown community.

Program Overview:

The downtown Indio Ambassadors program is a collabora�ve effort between the City of Indio and local stakeholders, including businesses, property owners, and community organiza�ons.

The program will be administered by the City of Indio (Chamber or EDC) and operated by a team of trained ambassadors who will be responsible for fulfilling the following du�es:

1. Visitor Assistance: The ambassadors will be the face of downtown Indio and provide visitors a friendly and welcoming presence. They will offer informa�on, direc�ons, and recommenda�ons on local businesses, atrac�ons, events, and services. They will also assist with wayfinding, parking, and provide general assistance to visitors to enhance their overall experience in downtown.

2. Community Engagement: The ambassadors will foster posi�ve rela�onships with downtown businesses, property owners, residents, and other stakeholders. They will act as liaisons between the community and the City of Indio, addressing concerns, providing feedback, and gathering input on ways to improve the downtown experience. The ambassadors will also promote downtown events, ac�vi�es, and ini�a�ves to encourage community par�cipa�on and engagement.

3. Safety and Security: The ambassadors will patrol the downtown area and maintain a visible presence to deter crime, vandalism, and other safety concerns. They will report any suspicious ac�vi�es or incidents to Indio Police Department.

4. Cleanliness and Maintenance: The ambassadors will help maintain a clean and atrac�ve downtown by performing tasks such as liter pick up, sidewalk sweeping, graffi� removal, and repor�ng maintenance issues to the Public Works department. They will also work closely with non-profit organiza�ons to coordinate efforts in keeping downtown Indio clean and well-maintained.

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Program Benefits:

The downtown Indio Ambassadors program will provide numerous benefits to the downtown community, including:

1. Enhanced Visitor Experience: The ambassadors will act as aten�ve and welcoming hosts for visitors to enhance the downtown experience. As they will serve as the eyes and ears of downtown Indio, they will be readily available to provide assistance and valuable informa�on, ensuring visitors have an enjoyable and memorable �me.

2. Improved Safety and Security: The presence of the Downtown Indio Ambassadors will ac�vely counteract any misconcep�ons about downtown safety by crea�ng a reassuring environment for customers and visitors. Through the implementa�on of the "see something, say something" technique, the ambassadors will proac�vely address any issues that may arise and swi�ly bring in the appropriate resources to resolve them in real-�me. By taking swi� ac�on and maintaining a vigilant presence, the ambassadors will help ins�ll a sense of safety and security, dispelling any nega�ve percep�ons about downtown Indio.

3. Clean and Atrac�ve Downtown: The ambassadors' efforts in cleanliness and maintenance will help keep downtown Indio clean, atrac�ve, and invi�ng to visitors and residents alike. This will contribute to the overall image and reputa�on of downtown and create a posi�ve impression for visitors and businesses.

4. Community Engagement: The ambassadors will serve as a resource to bridge the community, fostering posi�ve experiences and building rela�onships with downtown visitors. Their engagement with local stakeholders will help iden�fy opportuni�es for improvement, promote community par�cipa�on, and build a sense of pride and ownership in downtown Indio.

Funding:

The downtown Indio Ambassador Program will be supported by various funding sources, including the crea�on of an Economic Development Corpora�on (EDC), and a business and property-based Business Improvement District (BID).

The ini�al funding for the Downtown Indio Ambassador Program will be provided through a financial commitment from the City of Indio. In addi�on to the ini�al funding from the City of Indio, the Downtown Indio Ambassador Program will seek to create self-sustaining revenues through the opera�on of various events and ac�vi�es. These events, such as Food Truck Fridays, Second Saturday, and Farmers Market, among others, will be designed to atract visitors, increase foot traffic in the downtown area, and generate revenue through sponsorships, adver�sing sales, and other means. The program will also explore opportuni�es for membership dues, grants, and dona�ons to support its opera�ons further.

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The Economic Development Corpora�on (EDC) will be established to promote economic growth and development in the downtown area of Indio. The EDC will work to atract and retain businesses, create job opportuni�es, and s�mulate economic ac�vity in the downtown district.

The EDC will also ac�vely seek out grants, sponsorships, and other funding opportuni�es to support the Downtown Indio Ambassador Program and its ini�a�ves.

The Business Improvement District (BID) will be a special assessment district formed by local businesses and property owners in the downtown area. The BID will work to improve the overall business environment, enhance the physical appearance of the downtown area, and promote economic vitality. The BID will collect assessments from businesses and property owners within its boundaries, and these funds will be used to support the Downtown Indio Ambassador Program and its opera�ons.

The crea�on of an EDC and BID will provide addi�onal financial resources to support the Downtown Indio Ambassador Program's ini�a�ves, including the recruitment and training of ambassadors, event planning and coordina�on, marke�ng and adver�sing efforts, and other program-related expenses. These funding sources will play a cri�cal role in ensuring the sustainability and success of the program as it works to create a welcoming and vibrant downtown environment in Indio.

Program Implementa�on:

The Downtown Indio Ambassadors program will be implemented in the following steps:

1. Establish a clear chain of command and repor�ng structure for the Downtown Ambassador program to ensure smooth implementa�on and coordina�on among team members.

2. Assign ambassadors to specific shi�s, loca�ons, or tasks based on their strengths and exper�se to op�mize their effec�veness in providing assistance and maintaining a clean and safe downtown environment.

3. Provide ambassadors with the necessary resources, tools, and uniforms to carry out their du�es effec�vely, such as uniforms, hats, name badges, radios, and cleaning supplies.

4. Implement regular performance evalua�ons and feedback sessions to monitor the progress and performance of Downtown Ambassadors, recognize their achievements, and address any areas that need improvement.

5. Foster strong partnerships and collabora�ons with local businesses, law enforcement, and other stakeholders to create a cohesive and collabora�ve approach to downtown revitaliza�on efforts.

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6. Con�nuously evaluate the effec�veness of the Downtown Ambassador program through feedback from the community, data collec�on, and performance metrics, and make necessary adjustments to improve its impact on downtown revitaliza�on goals.

By implemen�ng a robust recruitment and training program, the Downtown Ambassador program can ensure that ambassadors are equipped with the necessary skills, knowledge, and resources to serve as guides and maintain safety, and cleanliness in the downtown area, contribu�ng to the overall success of downtown revitaliza�on efforts.

Metrics for Downtown Ambassador Program Success:

1. Customer Sa�sfac�on: Measure the sa�sfac�on level of downtown visitors, residents, and businesses through regular surveys or feedback. This can include ra�ngs and feedback on the Downtown Ambassadors' helpfulness, friendliness, responsiveness and overall sa�sfac�on with the program's services.

2. Safety Incidents: Track the number and types of safety incidents or issues reported or resolved by Downtown Ambassadors, such as vandalism, the�, or other criminal ac�vi�es. This can help gauge the program’s effec�veness in maintaining a safe downtown environment.

3. Cleanliness Standards: Monitor the cleanliness and �diness of the downtown area by measuring the frequency and effec�veness of cleaning ac�vi�es performed by Downtown Ambassadors, such as liter removal, graffi� removal, and maintenance of public ameni�es. This can be assessed through regular inspec�ons and repor�ng.

4. Business Engagement: Evaluate the level of engagement and collabora�on between Downtown Ambassadors and local businesses, such as the frequency of interac�ons, feedback from businesses, and involvement in business-related events or ini�a�ves. This can help gauge the program's effec�veness in fostering posi�ve rela�onships with the business community.

5. Community Percep�on: Monitor the percep�on of the Downtown Ambassador program within the local community through public feedback, media coverage, and social media sen�ment analysis. This can help assess the program's reputa�on, public image, and overall community support.

6. Program Efficiency: Track the efficiency and effec�veness of the program's opera�ons, such as the number of shi�s covered, areas patrolled, or tasks completed by Downtown Ambassadors, and assess their ability to meet established targets or goals.

7. Cost-Benefit Analysis: Conduct a cost-benefit analysis of the Downtown Ambassador program, including the program's budget, staffing costs, and other associated expenses, compared to the tangible benefits achieved, such as increased visitor traffic, business revenues, and community sa�sfac�on.

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Regular monitoring and analysis of these metrics provide valuable insights into the success and impact of the Downtown Ambassador program, helping to iden�fy areas of improvement, measure progress toward program goals, and demonstrate the program's value to stakeholders and the community.

AGENDA ITEM #10.7
Approval of the Downtown Ambassador Program to enhance hospitality and s... Page 189 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: Resolution No. 10357 adopting a list of projects to be funded by Senate Bill 1, Road Repair and Accountability Act of 2017; and make a determination that the action is exempt from further environmental review pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act.

RECOMMENDATION:

Adopt Resolution No. 10357 adopting a list of projects to be funded by Senate Bill 1, Road Repair and Accountability Act of 2017; and make a determination that the action is exempt from fur ther environmental review pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act.

SUMMARY:

The Road Repair and Accountability Act of 2017 increased local streets and roads funds allocated through Road the through taxes from allocating funds Tax Account Users Highway the by Maintenance and Rehabilitation Account (RMRA). In accordance with the updated guidelines adopted by the California Transportation Commission on March 24, 2021, all proposed projects to receive funding must be included in a resolution adopted by the City Council.

BACKGROUND INFORMATION:

On April 28, 2017, the Governor signed S enate Bill 1 (SB 1) (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017. To address basic road maintenance, rehabilitation and critical safety needs on both the state highway and local streets and roads system, SB 1 increases the per gallon fuel excise taxes; increases diesel fuel sales taxes and vehicle registration fees; and provides for inflationary adjustments to tax rates in future years.

Since November 1, 2017, the State Controller has deposited various portions of this new funding into the newly created RMRA. A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to the Streets and Highways Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.

Cities and Counties receiving RMRA funds must comply with all relevant federal and state laws, regulations, policies, and procedures. The main requirements for the progra m are codified in Streets and Highways Code (“SHC”) Sections 2032.5, 2034, 2036, 2037, and 2038 and below are a few of the included requirements:

AGENDA ITEM #10.8
Resolution No. 10357 adopting a list of projects to be funded by Senate ... Page 190 of 348 • Submit to the California Transportation Commission a list of projects proposed to be funded with these funds . All projects proposed to receive funding must be included in a resolution adopted by the City Council pursuant to the updated guidelines issued by the California Transportation Commission on March 24, 2021 [SHC 2034(a)(1)].

• The list of projects must in clude a description and the location of each proposed project, a proposed the of life useful the estimated completion, project’s the for schedule and improvement [SHC 2034(a)(1)].

Per the guidelines, staff updated the Capital Improvement Program to list eligible projects to receive the RMRA funding. Staff recommends adopting the resolution in Attachment 1, which incorporates projects prioritized under the City’s Pavement Management Plan.

ATTACHMENTS:

Attachment 1

APPROVAL(S):

Timothy Wassil, Public Works Director Approved - 09 May 2023 Steven Graham, City Attorney Approved - 10 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 11 May 2023 Bryan H. Montgomery, City Manager Approved - 11 May 2023

AGENDA ITEM #10.8
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RESOLUTION NO. 10357

AGENDA ITEM #10.8
Resolution No. 10357 adopting a list of projects to be funded by Senate ... Page 192 of 348 RESOLUTION NO. 10357

RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 20 23-24 FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017

WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi -modal transportation funding shortfalls statewide; and

WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and

WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and

WHEREAS, the City, will receive an estimated $ 2,203,488 in RMRA funding in Fiscal Year 2023-24 from SB 1; and

WHEREAS, this is the seventh year in whi ch the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling publ ic that would not have otherwise been possible without SB 1; and

WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and

WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and

WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets/roads and add active transportation infrastructure throughout the City this year and hundreds of similar projects into the future; and

WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in a “fair” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “satisfactory” condition; and

AGENDA ITEM #10.8
Resolution No. 10357 adopting a list of projects to be funded by Senate ... Page 193 of 348 WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting -edge technology, materi als and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City of Indio, State of California, as follows:

Section 1. All of the recitals above are true and correct and are incorporated herein as if set forth in full.

Section 2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2023-24 Road Maintenance and Rehabilitation Account revenues:

Project Title: Fiscal Year 2023/2024 Citywide Pavement Rehabilitation Project Description: Pavement Rehabilitation and Repair along the following segments:

Project Location: Indio Boulevard between Madison Street and Highway 111.

Estimated Project Schedule: Start (07/23) – Completion (06/24) Estimated Project Useful Life: 5-10 Years

Section 3. This resolution shall take effect immediately upon its adoption.

Section 4. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED AND ADOPTED this 17th day of May, 2023.

________________________

OSCAR ORTIZ, MAYOR

ATTEST:

_________________________

CYNTHIA HERNANDEZ, CMC

CITY CLERK

AGENDA ITEM #10.8
Resolution No. 10357 adopting a list of projects to be funded by Senate ... Page 194 of 348 APPROVED AS TO FORM:

________________________________

STEVEN GRAHAM, CITY ATTORNEY

AGENDA ITEM #10.8
Resolution No. 10357 adopting a list of projects to be funded by Senate ... Page 195 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: Resolution No. 10358 approving the quitclaim of a Public Utility Easement (PUE) within lots 11 and 12 of Tract Map No. 32339 (Bravo Collection), previously dedicated to the City of Indio by Stonefield Indio 100, LLC, the original developer

RECOMMENDATION:

That the City Council adopt Resolution No. 10358 approving the quitclaim of a Public Utility Easement (PUE) within lots 11 and 12 of Tract Map No. 32339 (Bravo Collection), previously dedicated to the City of Indio by Stonefield Indio 100, LLC, the original developer.

SUMMARY:

Bravo Collection is a development of Bravo Collection LLC, located on the northwest corner of Madison Street and Avenue 50. The Public Utility Easement (PUE) within lots 11 and 12 of Tract Map No. 32339 was dedicated and recorded to allow for Public Utilities to use. The Public Utility Easement (PUE) is no longer needed. Therefore, Bravo Collection LLC, requested and staff hereby recommends for the City Council to authorize relinquishing City of Indio interest on the Public Utility Easement (PUE) within parcels 11 and 12 of Tract Map No. 32339 and cause the release to be recorded with the County of Riverside Recorder’s Office.

BACKGROUND INFORMATION:

Bravo Collection LLC, purchased the remaining undeveloped lots within Tract Map No. 32339. Tract Map no. 3 2339 was recorded on May 24, 2006, by the Stonefield Indio 100, LLC, the original developer. Since the Public Utility Easement has not being used by any public utility companies, except for a storm drain line that exist within the easement and will be mai ntained by the developer.

Therefore The Public Utility Easement can be released to the developer Bravo Collection LLC.

The Public Utility Easement is shown on Tract Map No. 32339 within lots 11 and 12. The description of the Public Utility Easement to be released are further described in Attachment 1.

ATTACHMENTS:

Attachment 1
Atttachment 2

APPROVAL(S):

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Timothy Wassil, Public Works Director Approved - 09 May 2023 Steven Graham, City Attorney Approved - 10 May 2023
Samantha Lopez, Finance Manager Approved - 11 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 11 May 2023

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LEGAL DESCRIPTION AND MAP

AGENDA ITEM #10.9
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LEGAL DESCRIPTION FOR
10 FOOT WIDE PRIVATE DRAINAGE EASEMENT

Said Drainage Easement across the southeasterly 10 feet of Lots 11 and 12 of Tract Map 32339, recorded as Document 2006- 0377318 as Book 403, Pages 57 through 61, with County Recorders office of the County of Riverside, in the State of California, said 10-foot strip being more completely described as follows:

Beginning at the southeast corner of Lot 12 of said Tract 32339; thence radially N75`14’58’W a distance of 10.00 feet to a point on the northwesterly line of said 10 foot easement designated herein as “Point A”; thence parallel with the Northwesterly line of the All American Canal as shown on said Map 32339 southerly to an intersection with the south line of said Lot 12, and northeaste rly to the intersection with the east line of said Lot 11

END DESCRIPTION

AGENDA ITEM #10.9
Resolution No. 10358 approving the quitclaim of a Public Utility Easemen... Page 199 of 348 The Altum GroupEngineeringPlanningEnvironmentalt. 760.346.4750 TheAltumGroup.com f. 760.340.008944-600 Village Court, Suite 100, Palm Desert, CA 92260SurveyEXHIBIT "B" - PLATPOR LOTS 11 AND 12TRACT MAP NO. 32339MB 403/57-61 EXHIBIT "B"
LOT 12TRACT MAP NO. 32339MB 403/57-61
SE 1/4 SEC 33
LOT 11T5S, R7E, SBM
LOT G
LEGEND
LOT 10 LOT A
AVENUE 50

ALL AMERICAN CANAL

ROCK WOOD COURTLOT C
10 FOOT WIDE PRIVATE DRAINAGE EASEMENT

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ATTACHMENT 2
RESOLUTION NO. 10358

APPROVING THE QUITCLAIM

AGENDA ITEM #10.9
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2 RESOLUTION NO. 10358

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO,

CALIFORNIA, APPROVING THE QUITCLAIM OF P UBLIC UTILITY

EASTMENT PREVIOUSLY DEDICATED TO THE CITY OF INDIO BY
STONEFIELD INDIO 100, LLC

WHEREAS, a public utility easement (“Easement”) was granted by Stonefield Indio 100, LLC to the City of Indio by Tract Map No. 32339 and was recorded with the County of Riverside Recorder’s Office on May 24, 2006; and

WHEREAS, on May 18, 2006, the City Council of Indio authorized the acceptance of Tract Map No. 32339 Showing the Public Utility Easement, which was subsequently recorded with the County of Riverside Recorder’s Office; and

WHEREAS, the lack of use of the aforementioned PUE and the City of Indio desires to re-convey to the developer, Bravo Collection LLC, the PUE shown on lots 11 & 12 of Tract Map No. 32339 with a Quitclaim Deed , for the continued use as private drainage easement to be maintained by Bravo Collection, LLC.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES HEREBY FIND AND RESOLVE AS FOLLOWS:

Section 1. The City Council hereby finds that all of the facts set forth in the recitals of this resolution are true, correct, and are incorporated herein.

Section 2. The City Council finds and declares that the Public Utility Easement shown on lots 11 & 12 of Tract Map No. 32339 is no longer necessary for its intended public utility easement use and hereby quitclaims to the underlying owner, Bravo Collection LLCfor the continued use as a private drainage easement to be maintained by Bravo Collection, LLC.

Section 3. The City Council hereby approves the Quitclaim Deed attached herein as Exhibit A and hereby authorizes the City Manager to execute said deed and transmit to the County of Riverside Recorder’s Office for recordation.

Section 4. The City Council hereby au thorizes the City Manager to take any and all actions required to effectuate the provisions of this Resolution.

Section 5. This Resolution shall be effective upon adoption.

Section 6. The City Clerk shall certify to the adoption of this Resolution.

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3 PASSED, APPROVED AND ADOPTED this 17th day of May, 2023.

_____________________________________

OSCAR ORTIZ, MAYOR

ATTEST:

________________________________

CYNTHIA HERNANDEZ, CMC

CITY CLERK

APPROVED AS TO FORM:

________________________________

STEVE GRAHAM, CITY ATTORNEY

AGENDA ITEM #10.9
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4 EXHIBIT A

AGENDA ITEM #10.9
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5 RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:

CITY OF INDIO
100 Civic Center Mall
Indio, California 92201
Attn: City Clerk

10 feet PUE within lots 11 and 12
of Tract Map No. 32339
[Space Above For Recorder’s Use Only]

Grantor declares that this Quitclaim Deed is exempt from Recording Fees pursuant to California Government Code Sections 6103 AND 27383. Documentary Transfer Tax is $0; conveyance for no consideration.

QUITCLAIM DEED

FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the City of Indio (“Grantor”), hereby conveys to the Bravo Collection LLC City of Indio (“ Grantee”), without representation or warranty, express, or implied, all of Grantor’s right, title and interest (if any) in, under and to: (i) that certain land located in the City of Indio, County of Riverside County, State o f California, described on Exhibit “A” attached hereto, and (ii) the improvements thereon.

Dated as of: May 17, 2023

GRANTOR: City of Indio

By:

Bryan H. Montgomery
City Manager

AGENDA ITEM #10.9
Resolution No. 10358 approving the quitclaim of a Public Utility Easemen... Page 205 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: Construction contract with Granite Construction Company in an amount not- to-exceed $360,999 for Shields Road (Project No. ST1202), and make a determination that the action is exempt from further environmental review pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act.

RECOMMENDATION:

Approve the project plans and specifications for Shields Road (Project No. ST1202); award a construction contract to Granite Construction Company in an amount not -to-exceed $360,999; and making a determination that the action is exempt from further envi ronmental review pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act.

SUMMARY:

On April 25, 2023, staff received and opened seven (7) construction bids for Shields Road (Project No. Granite that determined diligence, due staff analysis bid thorough After ST1202). and Construction Company is the lowest responsible bidder per the bid opening.

BACKGROUND INFORMATION:

The project is located on Shields Road between Highway 111 and Avenue 48 with the road gap closure between Highway 111 and Martinique Avenue. The specific scope of work includes constructing a roadway to make Shields Road continuous. Work will include grading, installing asphalt concrete, aggregate base, construct curb and gutter, sidewalk, and striping.

The project was advertised on April 5, 2023. The City received and opened bids on April 25, 2023.

A total of seven (7) sealed bids were received. A summary of the bids received is provided below.

Proposer Name Location Total Bid
Granite Construction Company Indio, CA $360,999.00
Universal Construction Engineering Palm Desert, CA $391,598.85 Jacobsson Engineering Construction, Inc. Thousand Palms, CA $391,990.00 ATP General Engineering Contractors San Diego, CA $467,898.00 Vance Corporation Beaumont, CA $468,852.50
MDB General Engineering, Inc. Irvine, CA $494,042.00
Hardy & Harper, Inc. Lake Forrest, CA $574,000.00

AGENDA ITEM #10.10
Construction contract with Granite Construction Company in an amount not... Page 206 of 348

Public Works staff examined the submissions, and after a careful review of the project requirements and bid documents, staff determined that the lowest responsible bidder is Granite Construction Company. The company is appropriately licensed and qualified to perform the work within the project specifications. Staff recommends awarding the contract to Granite Construction Company.

The Engineer’s construction cost estimate was $432,018.00.

The City Engineer has reviewed the bid documents for the project and in his opinion, the project bid documents are reasonable and meet professional engineering standards. Therefore, the City Engineer recommends that the City Council also approve the project bid documents, which are on file in the Department of Public Works. Construction is scheduled to take place from June 2023 to September 2023.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$90,250 In current year budget: Yes
Current FY General
Fund Impact:
$0 Budget adjustment: No
Next FY Financial
Impact:
$270,749 Strategic Objective:

Source of funds: ARPA Fund-Org-Object
Reference:
241-523006

Additional Financial Details:

The City will be using ARPA Funds that was set aside for the construction of the roadway to make Shields Road continuous, per the approved FY 22/23 Capital Improvement budget and will be also available in next year’s budget.

ATTACHMENTS:

Attachment 1 - Project Location Map

APPROVAL(S):

Timothy Wassil, Public Works Director Approved - 09 May 2023 Steven Graham, City Attorney Approved - 10 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 11 May 2023 Bryan H. Montgomery, City Manager Approved - 11 May 2023

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PROJECT LOCATION MAP

AGENDA ITEM #10.10
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COUNCIL MEETING DATE
NWE
E N G I N E E R I N G S E R V I C E SLEGENDPROJECT LOCATIONCITY BORDERMAY 17, 2023V I C I N I T Y M A P S

NOT TO SCALE
JEFFERSON STAVENUE 48MARTINIQUE AVEYOUNGS LN
SHIELDS RDHWY 111BUNKER LNHWY 111

AGENDA ITEM #10.10
Construction contract with Granite Construction Company in an amount not... Page 209 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: Purchase of a Tymco Model 600 Sweeper, in the amount of $485,233.39; and make a determination that the action is not a Project, therefore exempt from further environmental review pursuant to Section 15378(b)(1) (Purchase of Supplies) of the California Environmental Quality Act.

RECOMMENDATION:

Approve the pu rchase of a Tymco Model 600 Sweeper in the amount of $485,233.39; and make a determination that the action is not a Project, therefore exempt from further environmental review pursuant to Section 15378(b)(1) (Purchase of Supplies) of the California Environmental Quality Act.

SUMMARY:

Currently, the City of Indio has two (2) active street sweepers and, as the City has a greater need and demand for continued street sweeping, this additional street sweeper will give the Public Works Department’s Street Maintenance Division the capability to meet this increasing demand. Staff is seeking approval to purchase the Tymco Model 600 Sweeper by utilizing the Sourcewell contract with Tymco, thereby allowing the City to take advantage of the price negotiated by Sourcewell in order to purchase the street sweeper. Sourcewell is a self -sustaining government organization and has over 40 years of dedicated service helping government, education and nonprofit agencies operate more efficiently through a variety of solutions, such as contract purchasing solutions, technology solutions, and regional programs and services. Delivery of the street sweeper is nine months upon issuance of the purchase order.

BACKGROUND INFORMATION:

The City of Indio Public Works Department’s Street Maintenance Division staff perfo rm a wide array of repair and maintenance operations throughout the City of Indio, to its facilities and infrastructure.

This additional street sweeper will give the Public Works Department’s Street Maintenance Division staff the needed equipment to mainta in established sweeping routes and sweeping schedules throughout the City. This additional street sweeper will also give Fleet Services the opportunity to maintain the City’s other two (2) active sweepers without affecting current street sweeping routes and schedules.

Staff prepared specifications for the street sweeper and had sought bids from various vendors. Two (2) bids were submitted as follows:

Bidder's Name Business Location Initial Quote
Tymco Pomona, CA $485,233.39
AGENDA ITEM #10.11
Purchase of a Tymco Model 600 Sweeper, in the amount of $485,233.39; and... Page 210 of 348 Bidder's Name Business Location Initial Quote
Haaker La Verne, CA $517,121.48

With this additional street sweeper, staff will be making their overall day more productive and cost effective, as they will have the capabilities to maintain our commitment to our street sweeping routes and schedules, along with the ability to responding to emergency clean up needs and weather related clean up necessities.

This additional unit will also meet all regulatory requirements set forth by the California Air Resources Board (CARB) and the South Coast Air Quality Management District (SCAQMD).

Anticipated delivery of the street sweeper is nine months upon issuance of the purchase order.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$0 In current year budget: N/A
Current FY General
Fund Impact:
$0 Budget adjustment: N/A
Next FY Financial
Impact:
$485,233.39 Strategic Objective:

Source of funds: Vehicle/Equip replacement funds
(General Fund) Fund-Org-Object
Reference:
603-555003

Additional Financial Details:

The cost of the purchase in the amount of $485,233.39 will be paid for through the Vehicle and Equipment (Internal Service) Replacement Fund 603-555003 in FY 2023/24.

ATTACHMENTS:

Attachment 1

APPROVAL(S):

Timothy Wassil, Public Works Director Approved - 09 May 2023 Steven Graham, City Attorney Approved - 10 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 11 May 2023 Bryan H. Montgomery, City Manager Approved - 11 May 2023

AGENDA ITEM #10.11
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QUOTES

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AGENDA ITEM #10.11
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City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Carl S. Morgan, Dir. Of Economic Development Subject: 1) Approval of Purchase and Sale Agreement with Black Diamond Pools and Design for property located at the north/west corner of Smurr Street and Wilson Avenue (Assessor Parcel Number 611 -222-015) in the not to exceed the amount of $530,000 plus title and escrow costs and other related expenses not to exceed $15,000, and finding conformity with the General Plan and determining that the project qualifies for the common sense exemption pursuant to Section 15061 (b)(3) as it can be seen with certainty that the re is no possibility that the activity in question may have a significant effect on the environment and that any future development of the subject properties will be required to be in conformance with the Program Final Environmental Impact Report (PFEIR) f or the Downtown Specific Plan certified by the Indio City Council on April 15, 2020; and 2) Authorize the City Manager to execute all documents necessary to complete the sale.

RECOMMENDATION:
1) Approval of Purchase and Sale Agreement with Black Diamon d Pools and Design for property located at the north/west corner of Smurr Street and Wilson Avenue (Assessor Parcel Number 611 - 222-015) in the not to exceed the amount of $530,000 plus title and escrow costs and other related expenses not to exceed $15,000, and finding conformity with the General Plan and determining that the project qualifies for the common sense exemption pursuant to Section 15061 (b)(3) as it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment and that any future development of the subject properties will be required to be in conformance with the Program Final Environmental Impact Report (PFEIR) for the Downtown Specific Plan certified by the Indio City Council on April 15, 2020; and 2) Authorize the City Manager to execute all documents necessary to complete the sale.

SUMMARY:

The subject property is comprised of one parcel (APN 611 -222-015) consisting of one single -family home and two additional units behind the single-family home at the north/west corner of Smurr Street and Wilson Avenue. The purchase price for the parcel is $ 530,000, and 50% of the standard escrow closing costs and fees are estimated to be approximately $15,000. The property will be required to be delivered empty “with no tenants” following a 60-day escrow. Staff recommends the purchase of this property in ord er to facilitate the future development of the entire half block. The Indio Housing Authority owns two properties and the City of Indio owns two properties on this block. The acquisition of this property will position the city to issue a Request for Propos al from housing developers to assemble and develop the entire half block.

AGENDA ITEM #10.12
1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 218 of 348 BACKGROUND INFORMATION:

As a part of the city’s strategic plan, city council allocated funds to acquire certain key properties in Downtown. Staff contacted several property owners to see if they had an interest in selling their property.

General Plan Conformity: The property falls within Downtown (DT) under the City of Indio General Plan 2040 characterized as supporting lively, thriving Downtown area by accommodating multi-story, mixed-use buildings at higher intensifies. Also providing for vertical and horizontal mixed -use development. Goal LU-9.1 of the General Plan states that a development goal within the public realm is to “Establish Downtown Indio as a regional destination with a mix of uses that draw visitors from the Coachella Valley. Encourage a broad mix of uses that creates an inviting, active, and dynamic Downtown, including: Local- and regional- serving retail and services, cultural and institutional uses, educational u ses and facilities, small local -serving office uses, residential buildings to increase housing diversity and units, and innovative public spaces and parks.”

The purchase of this property would allow for the opportunity for the City to facilitate the fut ure development of the entire half block, continuing the improvement of Downtown. The use of the property is consistent with the General Plan and staff recommends that the City Council find that the use of the property is in conformance with the General Plan.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$545,000 In current year budget: Yes
Current FY General
Fund Impact:
$545,000 Budget adjustment: No
Next FY Financial
Impact:
$0 Strategic Objective: Downtown & Hwy 111
Revitalization
Source of funds: General Fund Fund-Org-Object
Reference:
1011190-551003

Additional Financial Details:
$530,000 plus escrow costs and other related expenses $15,000. It is estimated the total cost to the City will not exceed $545,000.

ATTACHMENTS:

Attachment 1 Property Location Map
Attachment 2 Purchase and Sale Agreement (45791 SMURR STREET)

APPROVAL(S):

Carl S. Morgan, Dir. Of Economic Development Approved - 11 May 2023 Steven Graham, City Attorney Approved - 11 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 12 May 2023 Bryan H. Montgomery, City Manager Approved - 12 May 2023

AGENDA ITEM #10.12
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Property Location Map
(611-222-015)
= Subject Property

AGENDA ITEM #10.12
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BETWEEN THE CITY OF INDIO AND BLACK DIAMOND POOLS & DESIGN (45791 SMURR STREET)
This Purchase and Sale Agreement (“Agreement”) is entered into this ____ day of ____________________, 20__ (“Effective Date”), by and between THE CITY OF INDIO, a California municipal corporation (“Buyer”) and BLACK DIAMOND POOLS & DESIGN, a California corporation (“Seller”). In consideration of the mutual covenants and agreements, the parties agree to the following terms and conditions:

ARTICLE I

AGREEMENT OF SALE

1.1Buyer’s Status. Buyer is a public entity with the power to acquire real and personal property for public uses and purposes. Buyer is engaged in property acquisition for a public use.

1.2Property. Seller owns certain real property located 45791 Smurr Street, Indio, California, bearing Assessor Parcel No. 611-222-015 (“Property”), more particularly described in the legal description and on the plat attached hereto and marked as Exhibit “A” and incorporated herein by reference.

1.3Agreement of Purchase and Sale. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, upon the terms and for the considerations set forth in this Agreement, the fee interest in the Property.

1.4Incomplete Legal Description. If the legal description of the Property is not complete or is inaccurate, this Agreement shall not be invalid, and the legal description shall be completed or corrected to meet the requirements of the Title Company to issue a title policy hereinafter described.

1.5Other Grants. It is agreed that Seller, or its successors in interest, will not grant an interest in the Property, or any part thereof, including, but not limited to, a fee simple interest, easements, or any other conveyances and/or construct improvements or make changes upon, or to, the Property during the period between the Effective Date and the Close of Escrow, as such term is defined below.

1.6Possession. Seller agrees that the Property will be available to Buyer, vacant and unoccupied, upon the Close of Escrow, unless otherwise specified herein.

1.7Compensation. This Agreement is intended to be a resolution of all elements of “Just Compensation” to which Seller may be entitled and such other elements of damage, benefits, and assistance as are authorized by law. The parties desire by this Agreement to provide the terms and conditions for the purchase and sale of the Property.

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1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 221 of 348 2 1.8Compensatory Laws. Seller hereby acknowledges that Seller, or its tenants, may be eligible to receive compensation, damages, and/or relocation benefits and assistance pursuant to the following: The Constitution of the State of California (Article I, Section 19), the Eminent Domain Law (California Code of Civil Procedure Section 1230.010, et seq.), the California Relocation Assistance Act (California Government Code Section 7260, et seq.), implementing rules and regulations (Title 25, California Code of Regulations) and/or local, state or federal ordinances, statutes, rules, regulations and decisional laws (collectively “Compensatory Laws”). Any such compensation and benefits are provided for in this Agreement.

1.9Tax-Deferred Exchange. Seller may use the proceeds from the sale of the Property to effect one or more tax deferred exchanges under Internal Revenue Code §§ 1031 or 1033. Buyer agrees to accommodate Seller in effecting such tax-deferred exchange. Seller shall have the right, expressly reserved herein, to elect such tax-deferred exchange at any time before the Close of Escrow. Seller and Buyer agree, however, that consummation of the purchase and sale of the Property is not conditioned on such exchange. If Seller elects to make a tax- deferred exchange, Buyer agrees to execute such additional escrow instructions, deeds, documents, agreements, or instruments to effect this exchange, provided that Buyer shall incur no additional costs, expenses, or liabilities in this transaction as a result of or in connection with this exchange. Seller agrees to hold Buyer harmless from any liability, damages, or costs, including reasonable attorney fees, that may arise from Buyer's participation in such exchange.

1.10Due Diligence. Buyer shall have forty-five (45) days from the Effective Date (“Contingency Date”) to perform, in its sole discretion, its due diligence review of the condition of Property and all other matters concerning the Property, including without limitation, economic, financial, and accounting matters relating to or affecting the Property or its value, and the physical and environmental condition of the Property. Prior to the Contingency Date, Buyer shall have made such inquiries, communicated with local, state, and federal government agencies as it sees fit, retained such consultants, and taken such actions as Buyer deems necessary or appropriate to enter into this Agreement. On or before the Contingency Date, Buyer shall deliver written notice to Seller accepting the Property or terminating this Agreement. If Buyer fails to give such notice on or before the Contingency Date, Buyer shall be deemed to have accepted the Property and proceed with this Agreement.

ARTICLE II

PURCHASE PRICE, TITLE AND ESCROW

2.1Purchase Price. Buyer shall pay to the Seller the sum of Five Hundred Thirty Thousand Dollars ($530,000) (“Purchase Price”). Seller acknowledges and agrees that any liens due shall be paid out of the Purchase Price. The Purchase Price shall represent full and complete compensation pursuant to Compensatory Laws for the rights and interests being acquired herein by Buyer, including, without limitation, real property, fixtures and equipment, loss of business goodwill, relocation assistance and such other compensation, damages and benefits as may be permitted by law. The Purchase Price shall be payable to Seller in immediately available funds in accordance with the provisions and requirements of this Agreement.

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1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 222 of 348 3 2.2Just Compensation. Payment of the Purchase Price and compensation under this Agreement shall be deemed Just Compensation and shall include fair market value, damages of whatever kind or nature arising out of Buyer's acquisition of Seller’s interest in realty, improvements, fixtures and equipment, and business interests including, without limitation, loss of business goodwill, loss of rent, bonus value, loss of inventory, equipment, patronage, and loss of opportunities.

2.3Escrow. Buyer and Seller shall open an escrow (“Escrow”) with Corinthian Title & Escrow (“Escrow Holder”) within five (5) business days after the Effective Date by depositing a copy of this executed Agreement (or copies of executed counterparts of this Agreement) with Escrow Holder and requesting that an escrow be opened. This Agreement shall constitute escrow instructions. The parties shall execute such further instructions as Escrow Holder reasonably requires in order to clarify the duties and responsibilities of Escrow Holder. In the event of any conflict between the terms and conditions of this Agreement and such further escrow instructions, the terms and conditions of this Agreement shall control. The Escrow Instructions shall not conflict with, amend, or supersede any provision of this Agreement.

2.4Escrow Trust Accounts. All funds received in the Escrow shall be deposited in an escrow trust account specifically opened for this transaction, and all disbursements shall be made by check or, at the option of Buyer, wire transfer of Escrow Holder from such account.

Escrow Holder shall deposit all of Buyer’s money into an interest-bearing account with all interest accruing to Buyer until the Close of Escrow. At the option of Buyer, said interest may be used toward the Purchase Price.

2.5Conduct of Escrow. Escrow Holder is hereby authorized and instructed to conduct the Escrow in accordance with this Agreement, the Escrow Instructions, and applicable law, including any reporting requirements of the State of California and the Internal Revenue Service.

2.6Condition of Title.

2.6.1 Within five (5) business days after the Effective Date, Seller shall deliver to Buyer a copy of a current standard coverage preliminary title report issued by Corinthian Title & Escrow (“Title Company”) showing the condition of title to the Property, accompanied by copies of all documents referred to in the report (collectively, “PTR”).

2.6.2 Buyer shall have forty-five (45) days following the Effective Date within which to deliver to Seller written notice of Buyer’s disapproval or conditional approval of title as shown on the PTR (“Disapproved Exceptions”). Buyer’s failure to provide the notice on or before such date shall constitute Buyer’s approval of the condition of title as shown on the PTR.

2.6.3 If Buyer timely notifies Seller of its Disapproved Exceptions, Seller shall notify Buyer in writing on or before the fifty-fifth (55th) day after the Effective Date that:
(a) Seller has removed the Disapproved Exceptions from title (or met Buyer’s conditions for approval of a title exception); or (b) Seller is covenanting to do so as of or before Closing; or (c) Seller will not remove (or will not meet the conditions of approval of)

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1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 223 of 348 4 specified Disapproved Exceptions. Failure to address Disapproved Exceptions in any notice, or failure to give such a notice, shall constitute Seller’s statement that it will not remove or otherwise address the Disapproved Exceptions.

2.6.4 If Seller does not remove or covenant to remove (or does not meet or covenant to meet) the conditions of approval of any Disapproved Exceptions, Buyer shall have the right to terminate this Agreement on or before the Contingency Date or to waive its objection to the Disapproved Exceptions in question and proceed to Closing as Buyer’s sole and exclusive remedy. Buyer’s failure to provide written notice of termination on or before the Contingency Date shall constitute Buyer’s waiver of its disapproval of the Disapproved Exceptions. In the case of Buyer’s waiver (or deemed waiver) of Disapproved Exceptions, Seller shall have no obligation to remove or otherwise address the Disapproved Exceptions from title and such waived Disapproved Exceptions shall be deemed approved.

2.6.5 In this Agreement, the term “Permitted Exceptions” means: (a) installments of general and special real property taxes and assessments not then delinquent, (b) any encumbrance arising from the acts or omissions of Buyer, (c) any liens due to Buyer or affiliated or related agencies (“Buyer’s Liens”), and (d) any other exception showing on the PTR other than the Disapproved Exceptions that Seller removes or covenants to remove.

2.6.6 At Closing, Buyer shall receive a CLTA Owner’s Coverage Policy of Title Insurance (“Title Policy”), together with all endorsements requested by Buyer, issued by the Title Company, in the amount of the Purchase Price. The Title Policy shall show title to the Property vested in the Buyer free and clear of all liens, encumbrances, assessments, and taxes. Any exceptions to title representing monetary liens or encumbrances are hereby disapproved by Buyer, and Escrow Holder is hereby authorized and instructed to cause the reconveyance of any such monetary exceptions at or prior to the Close of Escrow. If a supplemental report is issued prior to the Close of Escrow which shows new matters, Buyer reserves the right to request any new matters removed from the Title Policy, in accordance with the provisions of this Section 2.6.

2.7Reports, Studies, and Agreements. Within fifteen (15) calendar days of the Effective Date, Seller will provide Buyer with copies of any reports, studies, maps or agreements affecting the Property, if any, in Seller’s possession, including but not limited to geotechnical and soils reports, surveys, environmental reports, flood hazard or earthquake seismic studies and other reports, studies, maps or agreements affecting the Property, to the extent Seller has any such copies.

ARTICLE III

CLOSING

3.1Closing. Subject to the satisfaction of any contingencies described herein, Escrow Holder shall close this Escrow by recording the deed(s) and other documents required to be recorded and by disbursing the funds and documents in accordance with this Agreement and the Escrow Instructions.

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1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 224 of 348 5 3.2Closing Date. Escrow shall close on or before sixty (60) days following the Effective Date (“Close of Escrow”). If the Escrow is not in a condition to close by the Close of Escrow, any party who is not then in default, upon notice in writing to the Escrow Holder and the other party, may demand the return of their documents and/or money and cancellation of the Escrow. Unless objected to in writing within ten (10) days from the receipt of the notice of cancellation, Escrow will automatically be canceled. Notwithstanding the foregoing, Escrow may be extended upon mutual agreement of the parties for such time the parties deem necessary to effectuate the intent of the parties.

3.3Closing Documents.

3.3.1 Seller, prior to the Close of Escrow, shall deliver to Escrow Holder each of the following items, the delivery of each of which shall be a condition to the performance by Buyer of its obligations under this Agreement:
(a) a grant deed conveying the Property to Buyer, subject only to Permitted Exceptions;
(b) executed Federal and State nonforeign affidavits with respect to Seller;
(b) all additional documents, instruments which may be
reasonably necessary for the Close of Escrow and to
consummate the sale of the Property in accordance with the terms of this Agreement;
(c) all sums that Seller is required under this Agreement to deliver to Escrow Holder; and
(d) written acknowledgement pursuant to Section 3.9 that the Property is vacant and unoccupied.

3.3.2 Buyer, prior to the Close of Escrow, shall deliver to Escrow Holder each of the following items, the delivery of each of which shall be a condition to the performance by Seller of its obligations under this Agreement:
(a) the Purchase Price to be paid to Seller; and
(b) all additional documents and instruments which may be reasonably necessary for the Close of Escrow and to
consummate the sale of the Property in accordance with the terms of this Agreement.

3.3.3 Since Buyer is a public entity, pursuant to California Government Code Section 27281, Escrow Holder must secure from Buyer and attach to any deed a certificate of

AGENDA ITEM #10.12
1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 225 of 348 6 acceptance executed by Buyer or its authorized employees, officers, or agents prior to the recording of any deed.

3.4 Conditions to the Close of Escrow. Buyer’s obligation to proceed with the transaction contemplated by this Agreement is subject to the satisfaction of all of the following conditions precedent, which are for Buyer’s benefit and may be waived only by Buyer:

3.4.1 Seller shall have performed all agreements to be performed by Seller hereunder, including a walk-through as set forth Section 3.9 that confirms that the Property is vacant;

3.4.2 As of the Closing Date, there shall have been no adverse changes in the physical condition of, or title to, the Property;

3.4.3 Title Company shall have issued or shall have committed to issue the Title Policy to Buyer for the amount of the Purchase Price showing fee title to the Property to be vested in Buyer, subject only to the title exceptions in the preliminary report.

Escrow Holder, upon notice by Buyer of a failure of a condition shall promptly return to Buyer all funds (and all interest accrued thereon) and documents deposited by Buyer in escrow and to return to Seller all documents deposited by Seller in Escrow.

3.4Mortgages and Deeds of Trust. Any and all monies payable under this Agreement, up to and including the total amount of unpaid principal and interest on any note secured by a mortgage or deed of trust, or other security instrument if any, shall, upon demand, be made payable to the mortgagee or beneficiary entitled thereunder; and such mortgagee or beneficiary shall be required to furnish Buyer with good and sufficient receipt showing said monies were credited against the indebtedness secured by said mortgage, deed of trust, or other security instrument. Escrow Holder shall notify the Title Company of such payments and secure and cause any necessary full or partial conveyances to be prepared, signed, and recorded as required by the Title Company to eliminate any such encumbrances or exceptions from the Title Policy issued pursuant to this Agreement.

3.5Taxes and Other Liens. Escrow Holder is authorized and instructed to comply with the following tax proration procedures:

3.5.1 Payment of Unpaid Taxes: Pay and charge Seller for any unpaid delinquent taxes and/or any penalties and interest thereon, and for any delinquent or non- delinquent assessments or bonds against the Property subject to the provisions of Section

2.1 above.

3.5.2 Tax Proration: For purposes of tax proration, Escrow Holder will apportion all current taxes at “the date of apportionment” for public agency acquisitions as defined in California Revenue and Taxation Code Section 5082. Since possession is being granted pursuant to this Agreement at the Close of Escrow that date will be the “date of apportionment.”

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1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 226 of 348 7 3.5.3 Ad Valorem Taxes: Seller understands and agrees pursuant to California Revenue and Taxation Code Section 5083 that when property is acquired by Buyer (a public entity) that any lien on the property for ad valorem taxes is extinguished as a matter of law upon the final acquisition of the property and the lien immediately transfers and attaches to the proceeds constituting the Purchase Price.

3.5.4 No Cancellation of Unpaid Taxes and Penalties: Subject to the provisions of Section 2.1 above, Seller understands and agrees pursuant to California Revenue and Taxation Code Section 5084 that no cancellation shall be made of all or any portion of any unpaid taxes or any penalties or costs levied for prior tax years that constitute a lien at the time of acquisition of the Property. Such unpaid taxes, penalties, and costs shall be paid through Escrow, or if unpaid for any reason, shall be transferred to the unsecured tax roll pursuant to Section 5090 of the California Revenue and Taxation Code and are collectible solely from Seller.

3.5.5 Proration of Current Taxes: From the date that tax information is available, that portion of the current taxes and any penalties and costs that are allocable during Seller’s ownership of the Property up to and including the date of apportionment, if unpaid, shall be paid through Escrow. If such taxes are not paid, Buyer shall not in any event be responsible or liable for such taxes and such taxes shall be transferred to the unsecured roll and be solely collectable from Seller.

3.5.6 Notice to County Tax Collector: Buyer shall be solely responsible for providing notice of this acquisition to the County Tax Collector and to any public entities, whose taxes are not collected by the County Tax Collector but who at this time exercise the right of assessment and taxation pursuant to California Revenue and Taxation Code Section 5091.

3.5.7 Liens: Subject to the provisions of Sections 2.1 and 2.6 above, any and all liens assessed against the Property shall be deducted from and paid out of the Purchase Price.

3.6Title and Escrow Costs. Seller shall pay all the costs for a CLTA standard form title policy, one-half of the escrow fees, and all recording costs incurred herein, all reconveyance fees, trustees fees, or forwarding fees, and prepayment charges for any full or partial reconveyance or full or partial release of any mortgage or deed of trust. Buyer shall be responsible for one-half the escrow fees, the additional cost for an ALTA owner’s title policy and associated costs if obtained by Buyer. The parties acknowledge that Buyer is exempt from the payment of documentary.

3.7Brokerage Commission. Rosa Rodriguez (License No. 01212897) (“Broker”) is the broker of record for Buyer and Seller and has been engaged in the transaction contemplated by this Agreement. Seller shall be responsible for, and pay, the brokerage commission of the Broker and shall indemnify, defend, protect, and hold harmless the Buyer, from and against all claims arising from or in connection with communications or agreements with any agent, broker, finder, or similar person or entity in connection with the transaction described herein.

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1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 227 of 348 8 3.8Closing Statement. Each of the parties hereto hereby authorizes and instructs Escrow Holder to release a copy of such party’s closing statement to the other party, the purpose being to provide full disclosure to the other party of all disbursements made on behalf of such party.

3.9Walk-Through. Three (3) business days prior to the Close of Escrow, Seller and Buyer shall walk-through the Property to ensure that the Property is vacant and free of tenants and/or occupants. Prior to the walk-through, Seller shall have vacated the Property, and there shall be no tenants on, or occupancy of, the Property. If following the walk-through, the Property is acceptable to Buyer, Buyer shall provide written notice to Seller, acknowledging such. If following the walk-through, the Property is not acceptable to Buyer, Buyer may terminate this Agreement pursuant to Article VIII. Seller shall be responsible for, and pay, relocation costs of any tenant or occupant, if applicable, and shall indemnify, defend, protect, and hold harmless the Buyer, from and against all claims arising from or in connection with Seller’s eviction and/or removal of any tenants and/or occupants or in connection with the transaction described herein.

ARTICLE IV

RIGHT OF ENTRY AND DAMAGE TO PROPERTY

4.1Right of Entry. After Seller’s execution of this Agreement by the parties, and during Escrow, Seller grants to Buyer, its agents, employees or nominees, the right to enter into and upon the Property for the purpose of conducting soil, environmental and engineering studies, and such further engineering, grading, archeological, geological, or survey work as may be required for the preparation by Buyer of its development plans for the Property. Buyer shall give Seller reasonable notice of such entry and shall not unreasonably interfere with any occupant’s use of the Property or any of Seller’s other operations on the Property. Buyer shall keep the Property free and clear of any liens or encumbrances that may arise out of Buyer’s inspection of and activities on the Property. All costs, expenses, liabilities or charges incurred in or related to the performance of any and all of such studies and work on the Property, the preparation by Buyer of any plans or maps for the development or use of the Property, and the cost of filing, recording reports, plans, maps, or other documents related thereto shall be at the sole cost and expense of and shall by paid by Buyer. Buyer hereby agrees to repair any damage done to the Property by Buyer, its agents, employees, servants, nominees, or assigns, and Buyer shall restore the Property to the same or similar condition as existed on the date of Buyer first exercised this right of entry, if this transaction is terminated. Buyer shall not have any such obligation if Escrow closes and title to the Property vests in Buyer. The right to enter the Property shall be co- extensive with the period during which Escrow is open, or any extension thereof.

4.2Material Change, Destruction or Damage. The closing of this Escrow is contingent upon the fact that no material change shall have occurred with respect to the Property that has not been approved in writing by Buyer. For purposes of this Agreement, a “material change” shall be a change, not caused by action or inaction on the part of Buyer, its agents, employees, servants, nominees, or assigns in the status of the use, occupancy, tenants, or condition of the Property that occurs subsequent to the Effective Date of this Agreement. In the event there is a material change to the Property after the Effective Date, Buyer may purchase the

AGENDA ITEM #10.12
1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 228 of 348 9 Property with a credit against the Purchase Price otherwise due hereunder equal to the amount of any insurance proceeds actually collected by Seller prior to the Close of Escrow as a result of any such material change. Seller agrees to maintain a casualty insurance policy with respect to the Property in full force and effect until the Close of Escrow.

ARTICLE V

WAIVER AND RELEASE

5.1Acknowledgment of Full Benefits. By execution of this Agreement, Seller, on behalf of itself and its heirs, executors, administrators, successors and assigns, hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by the Buyer, and Seller hereby expressly and unconditionally waives any and all claims for damages, improvements, relocation assistance benefits, severance damages, interest, loss of goodwill, claims for inverse condemnation or unreasonable pre-condemnation conduct, or any other compensation or benefits, other than as already expressly provided for in this Agreement, it being understood that this is a complete and full settlement of all acquisitions claims, liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the Property.

5.2Acknowledgment of Just Compensation. The parties acknowledge and agree that the consideration paid to Seller shall be deemed the fair market value and total amount of “Just Compensation” for the Property. Seller, on behalf of itself and its heirs, executors, administrators, successors and assigns, hereby fully releases Buyer, its successors, agents, representatives, and assigns, and all other persons and associations, known or unknown, from all claims and causes of action by reason of any damage which has been sustained, or may be sustained, as a result of Buyer’s efforts to acquire the Property or to construct works of improvement thereon, or any preliminary steps thereto.

5.3Waiver and Release. The parties hereby acknowledge that they have had the opportunity to speak with or have been advised by an attorney and are familiar with the provisions of California Civil Code section 1542, which provides as follows:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH

THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS

OR HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,

WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
Seller and Buyer each acknowledges that it may have sustained damage, loss, costs, or expenses which are presently unknown and unsuspected, and such damage, loss, costs, or expenses which may have been sustained, may give rise to additional damage, loss, costs, or expenses in the future. Nevertheless, Seller and Buyer each hereby acknowledges that this Agreement has been negotiated and agreed upon in light of that situation, and hereby expressly waives any and all rights which they may have under California Civil Code Section 1542, or under any statute or common law or equitable principal of similar effect. This waiver shall not supersede any of the provisions of this Agreement or the rights of the parties hereto to enforce this Agreement in law

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1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 229 of 348 10 or equity.

5.4Waivers. Seller hereby waives the right to further and greater compensation and to have the adequacy of compensation determined in a court of law or equity, by a judge or a jury. Seller understands and knowingly agrees that this waiver shall extend to constitutional claims of whatever kind or nature that may be brought under the California and United States Constitutions and the federal civil rights statutes including, without limitation, claims arising under 42 U.S.C. Section 1983. Seller hereby further waives the right to raise affirmative defenses and to attack by way of answer, complaint or collaterally, the Buyer’s right to acquire the property for public uses and purposes. These acknowledgments, waivers, and releases shall survive the Close of Escrow.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

6.1Seller Representations, Warranties and Covenants. Seller hereby represents, warrants, and covenants to Buyer as of the date of this Agreement, and upon the Close of Escrow, as follows, all of which shall survive the Close of Escrow, unless otherwise stated below:

6.1.1 Authority: Seller is the owner of the Property and has the full right, power and authority to sell, convey and transfer the Property to Buyer as provided herein, and to perform Seller’s obligations hereunder. The person signing this Agreement and any documents and instruments in connection herewith on behalf of Seller has full power and authority to do so.

6.1.2 Bankruptcy: There are no attachments, assignments for the benefit of creditors, receiverships, conservatorships or voluntary or involuntary proceedings in bankruptcy or any other debtor relief actions contemplated by Seller or filed by Seller, or to the best of Seller’s knowledge, pending in any current judicial or administrative proceeding against Seller. Further, Seller has no notice or knowledge that any tenant of the Property is the subject of a bankruptcy proceeding.

6.1.3 Other Agreements: Seller has not entered into any other written contracts or agreements for the sale or transfer of any portion of the Property.

6.1.4 Condition of Property: Seller warrants and covenants, through Close of Escrow, that through the date possession is made available to Buyer, the Property shall be maintained in the same condition as upon the Effective Date of this Agreement.

6.1.5 Violation of Codes: Other than code violations, if any, to be paid out of the Purchase Price, Seller warrants that Seller has no actual knowledge of any notice of any violations of city, county, state, federal, building, zoning, fire, health codes or ordinances, or other governmental regulations filed or issued against the Property. Seller further warrants that it has no actual knowledge of any aspect or condition of the Property which violates applicable laws, rules, regulations, codes, or covenants, conditions or

AGENDA ITEM #10.12
1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 230 of 348 11 restrictions, or of improvements or alterations made to the Property without a permit where one was required, or of any unfulfilled order or directive of any applicable governmental agency, or of any casualty insurance company that any work, investigation, remediation, repair, maintenance or improvement is to be performed on the Property.

6.1.6 Zoning Changes: Intentionally deleted.

6.1.7 Geologic Condition: Seller represents that it has no actual knowledge of surface cracking or subsidence or other geologic condition in the immediate vicinity of the Property that would have a material adverse effect on Buyer’s acquisition of the Property. Further, Seller has no actual knowledge of any report prepared by any governmental agency relating to such geologic conditions as to the Property or the proximate area around the Property.

6.1.8 Maintenance of the Property: Except as provided in other provisions hereof dealing with destruction, damage or loss, Seller shall maintain the Property until the Close of Escrow in its present condition, ordinary wear and tear excepted.

6.1.9 Changes in Agreements: Prior to Close of Escrow, Seller will not violate or modify, orally or in writing, any existing lease or other agreement, or create any new leases or other agreements affecting the Property without Buyer’s prior written consent.

6.1.10 Possessory Rights: Seller warrants that no one will, at the Close of Escrow, have any right to possession of the Property, except as disclosed by this Agreement, or otherwise in writing to Buyer.

6.1.11 Mechanics’ Liens: To Seller’s actual knowledge there are no unsatisfied mechanic’s or materialman’s lien rights concerning the Property.

6.1.12 Actions: To the best of Seller’s knowledge, no actions suits, or proceedings are pending or threatened before any governmental department, commission, board, bureau, agency, court, or instrumentality that would affect the Property or the right to occupy or utilize the Property, which has not been disclosed to Buyer.

6.1.13 Notice of Changes: Seller will promptly notify Buyer in writing of any material change affecting the Property that becomes known to Seller prior to the Close of Escrow.

The material truth and accuracy of the foregoing representations and warranties shall be a condition of Buyer’s obligations hereunder. At least five (5) calendar days prior to the Close of Escrow, Seller shall notify Buyer of any facts or circumstances which are contrary to the foregoing representations and warranties.

ARTICLE VII
BUYER’S REPRESENTATIONS AND WARRANTIES

AGENDA ITEM #10.12
1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 231 of 348 12 7.1Buyer’s Representations and Warranties. Buyer hereby represents, warrants, and covenants to Seller as of the date of this Agreement, and upon the Close of Escrow, as follows:

7.1.1 Authority: Buyer is a municipal corporation and has the full power and authority to enter into and carry out the agreements contained in, and the transactions contemplated by this Agreement. The persons signing this Agreement and any documents and instruments in connection herewith on behalf of Buyer have full power and authority to do so.

7.1.2 Bankruptcy: There are no attachments, assignments for the benefit of creditors, receiverships, conservatorships or voluntary or involuntary proceedings in bankruptcy or any other debtor relief actions contemplated by Buyer or filed by Buyer, or to the best of Buyer’s knowledge, pending in any current judicial or administrative proceeding against Buyer.

7.1.3 Ratification: This Agreement is subject to the approval by the City Council of the City of Indio. In the event the City Council fails to approve this Agreement, there shall be no liability on the part of the Buyer and this Agreement shall be of no force and effect.

The material truth and accuracy of the foregoing representations and warranties shall be a condition of Seller’s obligations hereunder. At least five (5) calendar days prior to the Close of Escrow, Buyer shall notify Seller of any facts or circumstances which are contrary to the foregoing representations and warranties.

ARTICLE VIII

DEFAULT AND TERMINATION

8.1Default. A party shall be deemed in default hereunder if it fails to meet, comply with, or perform any covenant, agreement, or obligation on its part required within the time limits and in the manner required in this Agreement for any reason other than a default by the other party hereunder or termination of this Agreement prior to Close of Escrow.

8.2Opportunity to Cure. No act, failure to act, event or circumstance which might be deemed to be a default by either party shall be deemed to be a default under any of the provisions of this Agreement, unless and until, notice thereof is first given by the non-defaulting party to the party alleged to be in default and said party fails to cure the alleged default within fifteen (15) calendar days in the case of a non-monetary default, or five (5) calendar days in the case of a monetary default.

8.3Termination upon Default. After notice and an opportunity to cure, if the defaulting party fails to cure the default, the non-defaulting party may terminate this acquisition by giving written notice to the defaulting party and the Escrow Holder. Upon receipt of the notice to terminate, the Escrow Holder shall immediately cancel the Escrow and return all money and/or documents to the respective party.

AGENDA ITEM #10.12
1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 232 of 348 13 8.4Buyer’s Termination. If Buyer exercises its rights under this Agreement to terminate this acquisition, Buyer shall provide written notice to the Seller and Escrow Holder.

Upon receipt of said notice, Escrow Holder shall immediately cancel the Escrow and return all money and/or documents to the respective party. Upon receipt of said notice, Escrow Holder shall immediately cancel the Escrow and return all money and/or documents to the respective party.

8.5Seller’s Termination. Seller may not terminate or rescind this Agreement unless such termination or rescission is in writing to Buyer, and Buyer has in writing agreed to such termination or rescission, which agreement shall not be unreasonably withheld and may not be withheld in the case of Buyer’s breach of its obligation to timely close the transactions contemplated under this Agreement.

ARTICLE IX

MUTUAL AGREEMENTS

9.1Studies. Seller hereby authorizes Buyer, its agents, employees, contractors, and representatives, at Buyer’s sole cost and expense, to conduct such necessary cultural, environmental phase I, lead base paint and asbestos studies as Buyer may require. In connection with such studies, Seller hereby grants to Buyer, its agents, employees, contractors, and representatives, a right of entry as more specifically set forth in Section 4.1 above.

9.2CEQA Compliance. Buyer and Seller understand, acknowledge, and agree that Buyer’s future use of the Property is conditioned upon compliance with the California Environmental Quality Act (“CEQA”). (14 Cal. Code Regs. §15004(b)(2)(A))

9.3Soil Inspection. Subject to Section 4.1, Buyer shall have the right to obtain a soil test report concerning the Property. Said report shall be obtained at Buyer’s discretion and expense. Buyer shall indemnify and hold Seller harmless from any liability arising from Buyer’s soils investigation and keep the property free from any liens, including mechanics liens, arising from persons or agents authorized to perform such soils investigation on behalf of Buyer.

9.4Abandonment of Personal Property. Unless special arrangements have been made by the parties, any personal property left on the Property at the Close of Escrow shall be deemed abandoned and the property of the Buyer. Seller shall reimburse Buyer upon receipt from Buyer of an invoice evidencing the cost of said removal, less any offsets, if any. Seller agrees that Buyer may dispose of the personal property without notice to the Seller and without sale at a public auction. Seller expressly waives the requirements of California Civil Code Section 1980, et seq., relating to the disposition of personal property remaining on the premises at the termination of a tenancy, and to the extent applicable, the provisions of California Code of Civil Procedure Section 1174.

9.5Other Agreements Affecting Property. Seller and Buyer have made this Agreement upon the belief that there are no other agreements except this Agreement which will affect the Property beyond the Close of Escrow. If Seller determines that such agreements exist

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1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 233 of 348 14 which are not revealed herein, Seller shall provide Buyer with a copy immediately upon Seller’s learning of its existence. Buyer may thereafter, prior to the Close of Escrow, either terminate this acquisition or modify the offered Purchase Price. After Close of Escrow, Seller shall be liable to Buyer for any damage or expense including reasonable attorney’s fees and costs incurred by Buyer by reason of such undisclosed agreements.

ARTICLE X

HAZARDOUS SUBSTANCES

10.1Hazardous Substances Disclosure. The Property is subject to a disclosure as designated under Section 25359.7 of the Health and Safety Code, whereby Sellers are required to disclose if there are any hazardous substances, as defined in Health and Safety Code Section 25316, et seq., located on or beneath the property or adjacent thereto. It is understood and agreed between Buyer and Seller that closing of this Escrow is subject to and contingent upon receipt and approval of a written disclosure by Buyer. Said review and approval will not be unreasonably withheld or delayed by Buyer.

10.2Hazardous Substances. Seller represents and warrants that it does not have actual knowledge of the existence or prior existence of any hazardous substances on the Property. In addition, Seller has no actual knowledge of the existence or prior existence of any above or below ground storage tank or tanks on the Property.

10.3Hazardous Substance Conditions Report. Buyer has obtained a Hazardous Substance Conditions report(s) or other environmental studies concerning the Property and relevant adjoining properties. Such report(s) has been obtained at Buyer’s discretion and expense. Seller has no knowledge of any hazardous substance condition report that was prepared by any other person or entity including any governmental agency.

10.4Hazardous Substance Defined. A “Hazardous Substance” for purposes of this Agreement shall mean and refer to any (a) hazardous or toxic wastes, materials or substances or chemicals and other pollutants or contaminants which are or become regulated by applicable local, state, regional and/or federal orders, ordinances, statutes, rules, regulations (as interpreted by judicial and administrative decisions) and laws, (b) asbestos, asbestos-containing materials or urea formaldehyde, (c) polychlorinated biphenyls, (d) flammable, explosive, corrosive or radioactive materials, (e) medical waste and biochemical, (f) gasoline, diesel, petroleum or petroleum by-products, (g) lead-based paint or (h) any substance set forth in Health and Safety Code Section 25316, et seq., or whose nature and/or quality of existence, use, manufacture or effect, render it subject to federal, state or local regulation, investigation, remediation or removal as potentially injurious to public health or welfare. A “Hazardous Substance Condition” for purposes of this Agreement is defined as the existence on, under or relevantly adjacent to the Property or a Hazardous Substance that would or could require remediation and/or removal under applicable federal, state or local law.

10.5Hazardous Substances Indemnity. Seller expressly agrees, but expressly

AGENDA ITEM #10.12
1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 234 of 348 15 subject to the limitation set forth in Section 6.2 of this Agreement, to indemnify, defend, and hold Buyer, and its respective officials, officers, employees, agents, successors and assigns, harmless from and against any claim, action, liability, loss, damage, entry, judgment, order, lien, encumbrance, and costs and expenses that, foreseeable or unforeseeably, directly or indirectly, arises from, or is in any way related to, the existence, release, treatment, use, generation, transportation, storage, or disposal in, on, under, to, or from the Property of any Hazardous Substances. For the purposes of this section, “costs and expenses” include, but are not limited to, the cost of any necessary, ordered, adjudicated, or otherwise required remediation or removal of Hazardous Substances, any cost of repair of improvements on the Property or adjacent property necessitated by or related to the remediation or removal of Hazardous Substances, the cost of any tests, samples, studies, investigations, or other preparation reasonably undertaken in preparation or furtherance of remediation or removal of Hazardous Substances, and the cost of preparing plans for the remediation or removal of Hazardous Substances. Notwithstanding the foregoing, Seller expressly agrees to, at its sole expense, and with legal counsel of Buyer’s choice, defend the Buyer and its respective officials, officers, employees, agents, successors and assigns in any action in which the Buyer or its respective officials, officers, employees, agents, successors and assigns become or may become involved as a result of the existence, release, treatment, use, generation, transportation, storage, or disposal in, on, under to, or from the Property of any Hazardous Substances. Seller’s obligations under this section shall survive the Close of Escrow.

ARTICLE XI

MISCELLANEOUS

11.1Exhibits. All Exhibits attached hereto are a part of this Agreement for all purposes and are incorporated herein.

11.2Assignment. Neither this Agreement nor any rights under this Agreement may be assigned by any party without the prior written consent of the other party.

11.3Binding Effect. This Agreement shall be binding upon and inure to the benefit of Seller and Buyer, and their respective successors, heirs, agents and permitted assigns.

11.4Captions. The captions, headings, and arrangements used in this Agreement are for convenience only and do not in any way affect, limit, amplify, or modify the terms and provisions hereof.

11.5Number and Gender of Words. Whenever herein the singular number is used, the same shall include the plural where appropriate, and words of any gender shall include each other gender where appropriate.

11.6Governing Law and Venue. The laws of the State of California shall govern the validity, construction, enforcement, and interpretation of this Agreement. All claims, disputes and other matters in question arising out of or relating to this Agreement, or the breach thereof, shall be decided by proceedings instituted and litigated in the state court in the County of Riverside, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county.

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11.8Notices. All notices, requests, demands and other communication given or required to be given hereunder shall be in writing and sent by first class United States or certified mail, postage prepaid, return receipt requested, or sent by a nationally recognized courier service such as Federal Express for overnight delivery, duly addressed to the parties as follows:

To Seller: Black Diamond Pools & Design
40644 Carter Lane
Bermuda Dunes, CA 92203
Attention: Frank J. Celedon
To Buyer: City of Indio
100 Civic Center Mall
Indio, CA 92201
Attention: City Clerk
Delivery of any notice or other communication hereunder shall be deemed made on the date indicated in the return receipt or courier’s records as the date of delivery or as the date of first attempted delivery, if sent by mail or courier service. Any party may change its address for purposes of this Section by giving notice to the other party and to Escrow Holder as herein provided.

11.9Entirety. This Agreement embodies the entire agreement between the parties and supersedes all prior written or oral agreements and understandings, if any, between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or understandings, oral or written, between the parties hereto, relating to the subject matter contained in this Agreement which are not fully expressed herein.

11.10Severability. If any of the provisions of this Agreement, or its application to any party or circumstance, is held to be illegal, invalid, or unenforceable under present or future laws, such provision shall be fully severable. This Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part of this Agreement and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Agreement. In lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as a part of this Agreement, a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible to make such provision legal, valid, and enforceable.

11.11Further Acts. In addition to the acts and deeds recited herein and contemplated and performed, executed and/or delivered by Sellers and Buyer, Sellers and Buyer agree to perform, execute and/or deliver or cause to be performed, executed and/or delivered at the Close of Escrow or after the Close of Escrow any and all such further acts, deeds, and assurances as may be necessary to consummate the transactions contemplated herein.

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11.13Time of the Essence. It is expressly agreed by the parties hereto that time is of the essence with respect to each and every provision of this Agreement.

11.14Waiver of Covenants, Conditions or Remedies. The waiver by one party of the performance of any covenant, condition or promise, or of the time for performing any act under this Agreement shall not invalidate this Agreement nor shall it be considered a waiver by such party of any other covenant, condition or promise, or of the time for performing any other act required under this Agreement. The exercise of any remedy provided in this Agreement shall not be a waiver of any other remedy provided by law, and the provisions of this Agreement for any remedy shall not exclude any other remedies unless they are expressly excluded.

11.15Nondiscrimination. The parties shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical or mental disability, medical conditions, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, genetic information, gender, gender identity, gender expression, sex, sexual orientation, or military or veterans status in connection with the performance of this Agreement. The parties further agree to conform to the requirements of the Americans with Disabilities Act in the performance of this Agreement.

11.16Date of Agreement. The date of the Agreement as used in this Agreement shall refer to the date this Agreement is signed and approved by the governing body of Buyer, as first set forth above. It is understood and agreed that no employee, officer or director(s) of Buyer has any authority to bind the Buyer, which is a public entity, except upon prior approval by the governing body of Buyer.

11.17Counterparts. This Agreement may be executed in a number of identical counterparts. If so executed, each of such counterparts shall, collectively, constitute one original agreement. In making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

11.18Agreement Not to Lease. Seller agrees not to rent, lease, license or allow any person to take possession of the Property or any portion of the Property or building or structure located thereon, other than those parties that may be residing in the Property as of the Effective Date.

11.19 Enforcement of Agreement by Buyer. It is agreed that the rights granted to Buyer by Seller hereunder are of a special and unique kind and character, and that, if there is a breach by Seller of any material provision of this Agreement, Buyer would not have any adequate remedy at law. It is expressly agreed, therefore, that Buyer’s rights hereunder may be enforced by an action for specific performance and such other equitable or legal relief as is

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1) Approval of Purchase and Sale Agreement with Black Diamond Pools and ... Page 237 of 348 18 provided under the laws of the State of California.

11.20Third Parties. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person, other than the parties hereto and their successors and assigns, any rights or remedies under or by reason of this Agreement.

11.21Attorneys’ Fees. In any action between Buyer and Seller seeking enforcement of any of the terms and provisions of this Agreement, the prevailing party in such action shall be awarded, in addition to damages, injunctive or other relief, its reasonable costs and expenses, not limited to taxable costs, reasonable attorneys’ fees and reasonable fees of expert witnesses. [SIGNATURES ON FOLLOWING PAGE.]

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“Buyer” “Seller”

CITY OF INDIO BLACK DIAMOND POOLS & DESIGN,
a California corporation
By______________________________ By:__________________________ City Manager Name:

Title:

Attested to:

By:___________________________
Name:

By______________________________ Title:

City Clerk
Approved as to form:

By:____________________________
City Attorney

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LEGAL DESCRIPTION

AGENDA ITEM #10.12
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City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Kevin H. Snyder, Dir. Of Community Development Subject: A Professional Services Agreement with Dudek for Sphere of Influence Services in the amount of $85,000 to incorporate certain real properties located adjacent to the southeast corner of Avenue 50 and Jackson Street into the City of Indio's Sphere of Influence and budget adjustments.

RECOMMENDATION:

Authorize the City Manager to execute a Professional Services Agreement with Dudek for Sphere of Influence Services in the amount of $85,000 to incorporate certain real properties located adjacent to the southeast corner of Avenue 50 and Jackson Street into the City of Indio's Sphere of Influence and authorize the Finance Department to make the necessary budget adjustments as reflected in the Financial Summary Section of the Agenda Report

SUMMARY:

Professional Services Agreement with Dudek for Sphere of Influence Services in the amount of $85,000 to to incorporate certain real properties located adjacent to the southeast corner of Avenue 50 and Jackson Street into the City of Indio's Sphere of Influence

BACKGROUND INFORMATION:

In March 2023, the City Council approved a Professional Services Agreement with Dudek to assist the City in modifying the City's Sphere of Influence to include 231 acres of land between the Cities of Indio and Coachella that are currently not within a City designated Sphere of Influence. These properties are located south of Avenue 50, north of Avenue 52, east of Jackson Street and west of Calhoun Street. A sphere of influence is a plan for the probable ultimate physical boun daries 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 cities extend their municipal services, voting privileges and taxing authority to a new territory through an expansion of City limits.

Subsequent to the March 2023 Council action, staff has determined that it would be in the best interest of the City's public health, safety and welfare to pursue the incorporation of an additional 35.92 acres of certain real properties located north of the aforementioned 231 acres into the City of Indio's Sphere of Influence. These properties are currently located within the City of Coachella's Sphere of Influence.

However, theses properties can be served by the Indio Water Authority and are located adjacent to the Avenue 50/Jackson Street intersection with properties that are within the City of Indio's municipal boundaries on the northeastern, northwestern and southwestern portions of the intersection.

AGENDA ITEM #10.13
A Professional Services Agreement with Dudek for Sphere of Influence Ser... Page 241 of 348 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 reclassification from Coachella to Indio for the aforementioned 35.92 acres. The proposal is attached.

If approved, the City Manager and City Attorney would prepare a PSA using the City's standard template and execute based on the proposal attached and the not to exceed authorized by the City Council.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$15,000 In current year budget: No
Current FY General
Fund Impact:
$15,000 Budget adjustment: Yes
Next FY Financial
Impact:
$70,000 Strategic Objective: Community Outreach
Source of funds: General Fund Contingency Fund-Org-Object Reference:
1011190-591003

Additional Financial Details:

Funding for this agreement will be sourced from contingency funds established as part of the adopted FY 22/23 budget. The following budget adjustments move appropriations from the contingency account to the budget unit managing the contract.

Decrease appropriations:
1011190-591003 Approp. for Contingencies $85,000

Increase appropriations:
1012182-521064 Other Professional Services $85,000

ATTACHMENTS:

Attachment1_Sphere of InfluenceIncorporationMap
Attachment2_PSA_ScopeofWorkCostEstimate

APPROVAL(S):

Steven Graham, City Attorney Approved - 11 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 12 May 2023 Bryan H. Montgomery, City Manager Approved - 12 May 2023

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A Professional Services Agreement with Dudek for Sphere of Influence Ser... Page 254 of 348 Planning, Consulting, and Preparing the Environmental Documentation Services for Sphere of Influence Modifications, City of Indio A-1 Cover Letter
May 10, 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 Sphere of Influence Modification Services for City of Indio
Dear Mr. Snyder:

Dudek is pleased to submit this proposal to assist the City of Indio and provide the enclosed work program for planning and consulting services for a Sphere of Influence modification, and the associated environmental documentation needed.

Si
ncerely,
__________
________________________
Asha Bleier
Practice Director
Asha Bleier is authorized to sign on behalf of Dudek.

Exhibit A

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Planning, Consulting, and Preparing the Environmental Documentation Services for Sphere of Influence Modifications, City of Indio A-2

Project Understanding
Dudek understands that the City of Indio (City) is interested in a Sphere of Influence (SOI) modification for approximately 35.92 acres within the City of Coachella’s SOI, referred to herein as the “project area”. The project area is currently within the City of Coachella’s SOI, identified in Figure 1 as the pink cross-hatched are in the northern section of Area 3. The APNs for the project area are: 77925001, 779250002, 779250003, 77925004, 779250005, 779250006, 779250007, 779250008, 779250009, 779250010, 779250011, 779250012, 779250013, 779250014, 779250015, 779250016, 779250017, 779250018, and 779250019. The services outlined below identify the technical steps needed to bring the area into the City of Indio’s SOI in accordance with California Government Code Section 56425, and Riverside Local Agency Formation Commission (LAFCO) requirements.

Figure 1

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Planning, Consulting, and Preparing the Environmental Documentation Services for Sphere of Influence Modifications, City of Indio A-3 Task 1 Project Management
Danielle Berger 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. Berger and key Dudek staff (such as outreach professionals and CEQA analysts), will lead bi-weekly virtual meetings with City staff and other City consultants throughout the duration of the project.

Dudek assumes that the SOI modification process will take nine (9) months to complete. The meetings will ensure objectives and milestones are achieved. When requested, and at strategic points in the project, Dudek can add additional meetings to the schedule to increase communication and collaboration. Dudek will prepare agendas with input from City staff for each bi-weekly meeting. 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. While Dudek will work in earnest to keep the schedule within the identified 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 an virtual kickoff meeting. The purpose of the kickoff meeting is to align expectations, 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 may arise regarding public engagement. 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 community engagement, and feedback.

Deliverables:
 Virtual kickoff meeting materials include agenda, presentation, minutes, and action items  Monthly invoices and progress reports
 Eighteen (18) half-hour (30 minutes) bi-weekly project team virtual meetings Task 2 Sphere of Influence Modification Documentation
Dudek will lead the collection, preparation, and organization of documentation in support of the SOI modification for the project area. Dudek understands that the project area is currently designated as “Estate Density Residential” in the County’s General Plan; but is included in the City of Coachella’s SOI as “General Neighborhood” and was analyzed as part of the City of Coachella General Plan Update. The “General Neighborhood” land use category provides a for both single family and multi-family residential land uses with a density range of 7 DU/ac to 25 du/ac, with a target of 12 du/ac average for new project. Dudek understands the City would maintain a similar ”General Neighborhood”-type use. The goal of the SOI modification would be to transfer the project area from the City of Coachella’s SOI to the City of Indio’s SOI.

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Planning, Consulting, and Preparing the Environmental Documentation Services for Sphere of Influence Modifications, City of Indio A-4 As part of the SOI modification process for the project area, Dudek will collect, prepare, and organize documentation in a clear and orderly manner to be presented to Riverside LAFCO in accordance with State of California Government Code 56425. Documentation, per Appendix I of the Riverside LAFCO application package, will include:
(1) The present and planned land uses in the area, including agricultural and open-space lands. (2) The present and probable need for public facilities and services in the area. (3) The present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide.
(4) The existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency.
(5) The present and probable need for those public facilities or services related to sewers, municipal and industrial water, or structural fire protection services of any disadvantaged unincorporated communities within the existing SOI.

Dudek will finalize and package all documentation for LAFCO, Riverside County meetings, public hearings and other special meetings, as necessary.

Dudek assumes attendance of up to two (2) Senior Dudek staff at up to one (1) Planning Commission hearing and one (1) City Council hearing.

Deliverables
• Supporting documentation for SOI modification as per State of California Government Code 56425 • 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 the city will notify the Riverside Board of Supervisors and the City of Coachella of the proposed SOI modification prior to submitting an application to Riverside LAFCO. • Dudek assumes that City staff will prepare any associated staff reports needed for each public hearing. • This scope does not include preparation or attendance for City of Coachella meetings. It is assumed that the City staff and other City consultants will attend such meetings.

• Dudek will coordinate with the City to ensure that proper City review is provided throughout this process according to the City’s Unified Development Code Chapter 6.02.04, Summary of Review Authorities for Decisions and Appeals, as applicable.

Task 3 Geographic Information Systems
Dudek will perform GIS tasks related to the SOI modification for the project area. This will include creating updated maps of the project area with APNs, existing utilities, roadway networks, and other data layers as

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A Professional Services Agreement with Dudek for Sphere of Influence Ser... Page 258 of 348 Planning, Consulting, and Preparing the Environmental Documentation Services for Sphere of Influence Modifications, City of Indio A-5 appropriate. This mapping exercise will provide visual aids to be used and referenced in Task 1 Sphere of Influence Modification Documentation, Task 4 Public Engagement, and Task 6 Compliance with CEQA.

Deliverables
• Project area map (PDF)
Task 4 Public Engagement
Building off past public outreach efforts conducted by the City within proximity to the project area, Dudek will support the City in hosting up to two (2) in-person or virtual public meetings to discuss with residents, businesses, and stakeholders the overall SOI modification process. Public meetings are a key task in the process to build trust with the community, demonstrate transparency in governance, and help provide a smoother transition in the formal 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 workshops 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.

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 the SOI modification process, timeline, and contact information.

Deliverables
• PowerPoint presentations for up to two (2) public meetings. Dudek assumes in-person or virtual attendance, as appropriate, by up to two (2) Senior Dudek staff.

Assumptions
• If additional outreach is needed beyond what is described in this scope Dudek will submit a scope and fee a
ugment.
• Dudek assumes one (1) level of review for the draft mailer, draft outreach boards, and other outreach m
aterials.
• Public meetings will be held in conjunction with other planned public meetings for time and cost savings a
nd efficiencies.

Task 5 LAFCO and Other Agencies Meetings
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 SOI modification proposal, identify potential political, financial, or procedural “red flags,” and understand the local LAFCO’s supplemental application requirements. Dudek will attend up to ten (10) meetings with City staff and any affected special districts and agencies (including County, water, sewer, electric, fire, police, and school 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 ten (10) meetings.

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• Attendance at up to ten (10) meetings with LAFCO and other agencies, as relevant.

Assumptions
• If additional meetings are needed beyond what is described in this scope Dudek will submit a scope and fee augment.

Task 6 Compliance with California Environmental Quality Act Dudek understands that the project area is currently designated as “Estate Density Residential” in the County’s General Plan; but is included in the City of Coachella’s SOI as “General Neighborhood” and was analyzed as part of the City of Coachella General Plan Update per the Final Program EIR (SCH # 2009021007). The “General Neighborhood” land use category provides a for both single family and multi-family residential land uses with a density range of 7 DU/ac to 25 du/ac, with a target of 12 du/ac average for new project. Dudek understands the City would maintain a similar ”General Neighborhood”-type use; thus, it is expected that Dudek may rely in part on the previous programmatic environmental coverage afforded under the City of Coachella General Plan PEIR.

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 of the proposed pre-zoning and annexation, we anticipate that the Sphere of Influence modification project] 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 differences that may occur under the City’s proposed Sphere designations for the subject sites compared to the existing County General Plan land use and zoning, as well as the intensity and density of development anticipated by the City of Coachella as part of Coachella’s 2015 General Plan Update EIR which included the parcels within Coachella’s SOI. Further, Dudek will work to appropriate describe the proposed service and utility providers for the subject parcels. While a Municipal Services Review (MSR) was recently completed for the area to the south of the project site, the subject parcels were not included in the recent MSR but we understand these parcels can be served by the City. Dudek will work with the City to confirm the City’s utilities and services can effectively sere the subject site.

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 in 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

AGENDA ITEM #10.13
A Professional Services Agreement with Dudek for Sphere of Influence Ser... Page 260 of 348 Planning, Consulting, and Preparing the Environmental Documentation Services for Sphere of Influence Modifications, City of Indio A-7 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 prepare 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.

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 (3) hard copies of NOI and public review draft IS/MND to City staff • One (1) 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.

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A Professional Services Agreement with Dudek for Sphere of Influence Ser... Page 261 of 348 Planning, Consulting, and Preparing the Environmental Documentation Services for Sphere of Influence Modifications, City of Indio A-8 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 warranted, 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 as an Errata.

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 • Three (3) hard copies of final MND to City
• Three (3) CDs containing the final MND, draft IS/MND, and all technical appendices to City Assumptions
• Dudek will respond to one (1) 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 (1) electronic copy each of the draft and final NOD to the City Task 7 Fiscal Impact Analysis
Dudek will prepare a high-level Fiscal Impact Analysis. The plan for this assignment will be to assess fiscal and economic data from the City of Indio (City), Riverside County (County), and City of Coachella The objective of our collaborative approach is to identify whether the SOI modification will have any adverse impacts to the affected jurisdiction (City of Coachella).

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Planning, Consulting, and Preparing the Environmental Documentation Services for Sphere of Influence Modifications, City of Indio A-9 Deliverables
• List of data needs from the City, County, and City of Coachella including economic studies, recent fiscal analyses, budgets, tax data, etc.
• Final Fiscal Impact Analysis (electronic copy)
Task 8 Application Review and Submittal
As a whole, the LAFCO SOI modification 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 modification (in this case, the City of Indio), the affected jurisdiction (in this case, City of Coachella), the County of Riverside, and the local LAFCO authority.

Prior to filing the application, City Council will provide a Resolution of Application to include within the application submittal. Once all application materials have been prepared and approved per Task 2 Sphere of Influence Modification Documentation, 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/wpcontent/uploads/documents/application-materials/APPLICATION_PACKET- COMPLETE_1pdf) for the most recent fees as of May 2023. • This scope does not include resources to support the protest process should the city’s application be denied for whatever reason. Should a protest occur, the City would have the option to augment Dudek’s existing contract, in good faith.

AGENDA ITEM #10.13
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City of Indio
P223073 (SOI Mod)

DUDEK FEE ESTIMATE
5/10/2023
Project Team Role: Project Director Specialist IV Specialist IV GIS Analyst IV Analyst II Senior Specialist III Specialist IV Team Member: Asha Bleier Laurie Grover Danielle Berger GIS Analyst IV Grant Sles Sean Kilkenny Chelsea
Ohanesian
Billable Rate: $265.00 $175.00 $175.00 $165.00 $105.00 $225.00 $175.00 Task 1 Project Management 2 10 30 12 5 5 64 $10,790.00 $10,790.00 Task 2 SOI Mod Documentation 1 15 20 40 76 $10,590.00 $10,590.00 Task 3 GIS 1 10 11 $1,915.00 $1,915.00
Task 4 Public Engagement 1 4 20 8 33 $5,305.00 $970.00 $6,275.00 Task 5 LAFCO and Other Agency Meetings 1 15 15 31 $5,515.00 $5,515.00 Task 6 CEQA
Administrative Draft 40 100 140 $26,500.00 $26,500.00
Public Review Draft 5 25 30 $5,500.00 $5,500.00
Final Mitigated Negative Declaration 5 15 20 $3,750.00 $3,750.00 Task 7 Fiscal Impact Analysis 0 $0.00 $12,500.00 $12,500.00 Task 8 Application Review and Submittal 1 4 4 9 $1,665.00 $1,665.00 Total 7 48 89 10 60 55 145 414 $71,530.00 $13,470.00 $85,000.00

OTHER DIRECT

COSTS TOTAL FEE
Dudek Labor Hours and Rates
TOTAL
DUDEK
HOURS

DUDEK LABOR
COSTS
Dudek Project Budget Created 5/10/202312:19 PM Page 1 of 1 Exhibit B

AGENDA ITEM #10.13
A Professional Services Agreement with Dudek for Sphere of Influence Ser...Page 264 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Ian Cozens, Director of Information Technology Subject: First Amendment to professional services agreement between the City of Indio and AVI-SPL, LLC for audio-visual systems in the new Dispatch Center to increase total compensation by $22,082.75 to not to exceed $679,861.31.

RECOMMENDATION:

Approve the first amendment to the professional services agreement between the City of Indio and AVI-SPL to increase the total compensation by $22,082.75 from $657,778.56 to an amount not to exceed $679,861.31.

SUMMARY:

When AVI-SPL was reviewing the part list with one if its suppliers it was noted that eight (8) 2 -Port Xtendpoint Transmitters that were specified in the original design were inadvertently left out of the final proposal. The transmitters are required for the dispatch stations to receive audio and video from the new Dispatch audio-visual systems. The total cost of the eight transmitters is $22,082.75.

BACKGROUND INFORMATION:

In September of 2022, the IT Department along with staff from the Police Departmen t reached out to vendors to design the audio-visual aspects of the new Police Department Dispatch Center. In January of 2023 the team of IT and Police staff finalized the designs and selected AVI-SPL, LLC as the preferred design. At the February 15th, 2023, Council awarded the Professional Services Agreement between the City of Indio and AVI-SPL

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$0 In current year budget: N/A
Current FY General
Fund Impact:
$0 Budget adjustment: No
Next FY Financial
Impact:
$22,082.75 Strategic Objective: Public Safety
Source of funds: 2022 Bond Funds Fund-Org-Object
Reference:
331-553005

ATTACHMENTS:

Amendment No 1 to PSA

AGENDA ITEM #10.14
First Amendment to professional services agreement between the City of I... Page 265 of 348 APPROVAL(S):

Ian Cozens, Director of Information Technology Approved - 11 May 2023 Steven Graham, City Attorney Approved - 11 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 12 May 2023 Bryan H. Montgomery, City Manager Approved - 12 May 2023

AGENDA ITEM #10.14
First Amendment to professional services agreement between the City of I... Page 266 of 348 00091753.1

FIRST AMENDMENT TO

AGREEMENT

BY AND BETWEEN

THE CITY OF INDIO

A CALIFORNIA MUNICIPAL CORPORATION

AND

AVI-SPL

A FLORIDA LLC

DATED: MAY 17TH, 2023

Form Approved 2/17/2023

FIRST AMENDMENT TO AGREEMENT

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This Amendment to the professional services agreement for purchase, installation, and configuration of audio-visual equipment is made and entered into as of this 17th day of May 2023, by and between the City of Indio (“City”), a California municipal corporation and AVI-SPL a Florida limited liability company (“Consultant”). City and Consultant are sometimes hereinafter referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. City and Consultant entered into an agreement entitled “Professional Services Agreement for the Purchase, Installation, and Configuration of Equipment for Indio Police Department Dispatch Center ” dated February 15, 2023 (“Agreement”) for the purpose of retaining services of Consultant to provide purchase, installation, and configuration of audio-visual equipment.

B. The Parties desire to amend the Agreement to increase the not -to exceed compensation amount.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the promises made and recited herein, the Parties do hereby enter into this Amendment which modifies and amends the Agreement as follows:

1. AMENDMENT. The Agreement is hereby modified and amended as follows:

1.1 COMPENSATION, Section 4 of the Agreement is hereby amended to increase by an amount of $22,082.75 from $657,778.56 to an amount not to exceed $679,861.31.

City agrees to compensate Consultant, and Consultant agrees to accept in full satisfaction for the services required by this Agreement, six hundred seventy-nine thousand eight hundred sixty-one dollars and thirty-one cents, $679,861.31. Said Consideration shall constitute reimbursement of Consultant’s fees for the services and equipment as well as the actual cost of any staff time, other direct or indirect costs or fees, including the work of employees, consultants, and subcontractors, equipment, materials, and supplies necessary to provide the service (including all labor, materials, delivery, tax, assembly, and installation, as applicable). In no event shall the Consultant by paid more than $679,861.31 (which includes expenses and additional services (if any) during the term of this Agreement.

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2. MANDATORY INVOICE INFORMATION/NOTICES.

Consultant shall notify the City in writing whenever it has reason to believe that the costs the Consultant expects to incur under this Agreement in the following sixty (60) days, when added to all costs previously incurred, will exceed eighty percent (80%) of the Not to Exceed Amount specified herein. As part of the notification, the Consultant shall provide the City with a revised estimate of the total cost of performing this Agreement.

On invoices submitted to the City, Consultant shall identify at the top of the first page, the Agreement’s not to exceed amount , the total amount billed to date, the services rendered during the billing period, and the amount due for the stat ement invoice for which reimbursement is sought in the statement invoice.

3. REMAINDER UNCHANGED. Except as specifically modified and amended in this Amendment, the Agreement remains in full force and effect and binding upon the Parties.

4. INTEGRATION. This Amendment consists of pages 1 through 3, inclusive, which constitute the entire understanding and agreement of the Parties and supersedes all negotiations or previous agreements, including written or verbal communications between the Parties with respect to all or any part of the transaction discussed in this Amendment.

5. SEVERABILITY. If any portion of this Amendment is declared invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

6. EFFECTIVE DATE. This Amendment shall not become effective until the date it has been executed by the appropriate authorities of the City and Consultant.

7. APPLICABLE LAW. The laws of the State of California shall govern the interpretation and enforcement of this Amendment.

8. REFERENCES. All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this Amendment. [SIGNATURE PAGE FOLLOWS]

AGENDA ITEM #10.14
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IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to the Agreement on the date and year first written above.

CITY OF INDIO
___________________________
Bryan H. Montgomery
City Manager
ATTEST:

CITY CLERK

By: ___________________________
Cynthia Hernandez
City Clerk
APPROVED AS TO FORM:

CITY ATTORNEY

By: ____________________________
Steven Graham
City Attorney

CONSULTANT
By:

Steve Benjamin
Executive Vice President

AGENDA ITEM #10.14
First Amendment to professional services agreement between the City of I... Page 270 of 348 Proposal Prepared For
10775 Business Center Drive
Suite 150
Cypress, CA 90630
(714) 799-7166
Fax: (714) 799-7616
www.avispl.com
Indio Police Department
Indio Police Dispatch AV
[email protected]
Prepared by: Jourdan Finch
Proposal no: 407607-11, CR-001

AVI-SPL LLC
Proposal #: 407607-11, CR-001 / Job #: 410I-23-23197 Contract #: OMNIA_2019.0015

AGENDA ITEM #10.14
First Amendment to professional services agreement between the City of I... Page 271 of 348 * ANY and all applicable taxes will be included upon invoicing Investment Summary
Indio Police Department
46-800 Jackson Street
Indio, CA 92201-6099
Valid Until: 05/22/2023
407607-11, CR-001Proposal #:
04/21/2023Date Prepared:

Jourdan FinchPrepared By:Lori BrownPrepared For:

Total $22,082.75
$1,669.27Tax
$20,413.48Subtotal
Due to global semiconductor ("chip") shortages and supply chain disruptions pricing quoted in this proposal may change.

Installation schedules are subject to current (daily) product availability and may be delayed or postponed.

Total Equipment Cost $19,077.36
Includes cable, connectors, hardware, switches, relays, terminal blocks, panels, etc., to ensure complete and operational system
Professional Integration Services $0.00
Includes engineering, project management, CAD, on-site installation and wiring, coordination and supervision, testing, checkout, owner training, etc. performed on the Owner's premises. Also includes all fabrication, modification, assembly, rack wiring, programming, warranties, etc., some performed at AVI-SPL Direct Costs $0.00
Includes non equipment or labor costs, such as travel expenses, per diem, lift and vehicle rentals General & Administrative $0.00
Includes all G & A expenses: vehicle mileage, shipping and insurance, as applicable Services - Room Support and Maintenance $1,087.24
Includes post-installation support and maintenance options selected for installed rooms Services - Device Maintenance $248.88
Includes post-installation maintenance options selected for installed devices This Entire Document and all information (including drawings, specifications and designs) presented by AVI-SPL LLC are the property of AVI-SPL LLC or its affiliate. Proprietary information provided to potential customers, clients or agents is for the sole purpose of demonstrating solutions delivery capabilities and shall be held in confidence. These Materials may not be copied, distributed or disclosed in any way without the sole written permission of an authorized representative of AVI-SPL. © Copyright AVI-SPL LLC. All Rights Reserved

AVI-SPL LLC
Proposal #: 407607-11, CR-001 / Job #: 410I-23-23197 Contract #: OMNIA_2019.0015

AGENDA ITEM #10.14
First Amendment to professional services agreement between the City of I... Page 272 of 348 Buyer Authorized Signatory Title
DateBuyer Authorized Signatory Name
Buyer Authorized Signature
Buyer Acceptance
Buyer Legal Entity
Terms and Conditions
Billing and Payment Terms
This Proposal together with AVI-SPL’s General Terms and Conditions and the applicable Addendum(a) located here and incorporated herein by this reference (collectively the “Agreement”) constitutes the entire agreement between AVI-SPL LLC (“Seller”, “AVI-SPL”, “we”, “us”, “our”) and the buyer/customer identified in the Proposal (“Buyer”, “Customer”, “Client”, “you”, “your”) with respect to its subject matter and supersedes all prior and contemporaneous agreements, representations and understandings of the Parties, written or oral. By signing below, issuing a valid purchase order for the Services and/or Products specified herein or receiving the Products and/or Services specified herein, whichever occurs first, Buyer acknowledges it has read and agrees to the terms of this Agreement. This Agreement shall not be binding upon Seller until accepted by Buyer as set forth in this Agreement and the earlier of Seller’s confirmation in writing of Buyer’s order and Seller’s performance under the applicable Proposal. Any terms and conditions contained in Buyer’s purchase order or any other Buyer-provided documents related to this transaction shall have no effect and are hereby rejected. Notwithstanding anything herein to the contrary, if a master services agreement signed by both Parties is in effect covering the sale of the Services and/or Products that are the subject of this Proposal, the terms and conditions of said agreement shall prevail to the extent they conflict or are inconsistent with this Agreement.

Unless otherwise agreed in writing by Buyer and Seller in the Proposal, the total Proposal price, excluding the price for Stand-alone Services (as defined in this section), shall be billed as follows, subject to continuing credit approval: 50% down payment at time of order, 40% upon delivery at Seller; 10% upon project completion and Buyer sign-off or first beneficial use, whichever occurs first, payable net 30 from Buyer’s receipt of invoice. For purposes of this Agreement, “Stand- alone Services” means any Services not attached to an installation project. Billing and payment terms for Stand-alone Services are set forth in the applicable Service Addendum(a). Unless otherwise specified in the Proposal, Products are sold F.O.B. origin-Buyer to pay all shipping charges. If this Proposal covers Products or Services for more than one system, room, suite, or location, for purposes of payment in accordance with payment terms stated on the face hereof each room, suite, or location shall be treated as if the subject of a separate sale and payment made accordingly. Unless otherwise specified in the Proposal, all pricing and amounts are in US Dollars and all billing and payment shall be made in US Dollars.

Link to AVI-SPL Terms and Conditions: https://avispl.com/terms-of-use/ This Entire Document and all information (including drawings, specifications and designs) presented by AVI-SPL LLC are the property of AVI-SPL LLC or its affiliate. Proprietary information provided to potential customers, clients or agents is for the sole purpose of demonstrating solutions delivery capabilities and shall be held in confidence. These Materials may not be copied, distributed or disclosed in any way without the sole written permission of an authorized representative of AVI-SPL. © Copyright AVI-SPL LLC. All Rights Reserved

AVI-SPL LLC
Proposal #: 407607-11, CR-001 / Job #: 410I-23-23197 Contract #: OMNIA_2019.0015 City of Indio
Bryan H. Montgomery
City Manager

AGENDA ITEM #10.14
First Amendment to professional services agreement between the City of I... Page 273 of 348 Equipment List
Room Support and Maintenance
Device Maintenance
Room Summary - Dispatch Floor System
Elite Maintenance Services - Room; 12-months $1,087.24
Description QtyMfg Extended PriceModel Unit Price
8RGB SPECTRUM RGBXP102TX $19,077.36TRANSMITTER, 2-PORT XTENDPOINT $2,384.67 $19,077.36Subtotal
Description Months QtyMfg Extended PriceModel Unit Price 12 4RGB SPECTRUM RGBWARCATLINX23 $248.88WARRANTY, EXTENDED 2 YEAR, CAT- LINX 2(QUOTE REQ)
$62.22
$248.88Subtotal
This Entire Document and all information (including drawings, specifications and designs) presented by AVI-SPL LLC are the property of AVI-SPL LLC or its affiliate. Proprietary information provided to potential customers, clients or agents is for the sole purpose of demonstrating solutions delivery capabilities and shall be held in confidence. These Materials may not be copied, distributed or disclosed in any way without the sole written permission of an authorized representative of AVI-SPL. © Copyright AVI-SPL LLC. All Rights Reserved

AVI-SPL LLC
Proposal #: 407607-11, CR-001 / Job #: 410I-23-23197 Contract #: OMNIA_2019.0015

AGENDA ITEM #10.14
First Amendment to professional services agreement between the City of I... Page 274 of 348 City of Indio
City Council
May 17, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Carl S. Morgan, Dir. Of Economic Development Subject: Establish the Indio Economic Development Corporation (IEDC) to support the economic development of the City of Indio and authorize the City Manager and the for documents necessary finalize to create Attorney City and formation of the Indio Economic Development Corporation, and bring those back for final approval by th e Council. The IEDC will be an independent non - profit entity that aims to attract new businesses, retain existing ones, and create job opportunities in the City of Indio.

RECOMMENDATION:

Establish the Indio Economic Development Corporation (IEDC) to support the economic development of the City of Indio and authorize the City Manager and City Attorney to create and finalize necessary documents for the formation of the Indio Economic Development Corporation, and bring those back for final approval by the Council. The IEDC will be an independent non-profit entity that aims to attract new businesses, retain existing ones, and create job opportunities in the City of Indio.

SUMMARY:

The proposed Indio Economic Development Corporation (IEDC) is aimed at creating a more robust local economy by fostering business development and investment in the City of Indio. The IEDC would be a public -private partnership that would focus on attracting new businesses, supporting existing businesses, and providing resources and assistance to entrepreneurs. The IEDC would be governed by a board of directors that includes representatives from the city government and local business community. The initial funding for the IEDC would come from a combination of city funds and private donations. The approval of the IEDC would signal the City's commitment to economic development and its willingness to work collaboratively with the private sector to create a vibran t and sustainable local economy.

BACKGROUND INFORMATION:

The Indio Economic Development Corporation (IEDC) would be a dedicated organization that focuses on the economic development needs of the City of Indio, aiming to foster growth and prosperity by attracting new businesses, industries, and investments to the City. By doing so, the IEDC will create job opportunities, generate increased tax revenue, and improve the quality of life for residents. Below are specific benefits that an IEDC would bring:

•Attracting new businesses: A strong IEDC can attract new businesses to Indio, particularly in key industries like technology, healthcare, and advanced manufacturing. By creating a favorable business environment, the IEDC can make Indio an attractive location for businesses to invest in.

AGENDA ITEM #11.1
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•Fostering and Supporting Entrepreneurship: The IEDC can facilitate collaboration between organizations, institutions, and corporations to foster a supportive environment for local businesses and start-ups.

•Promoting real estate developments: The IEDC supports Indio's cultural vibrancy and small business vitality by attracting new residents to the City. The IEDC works with developers and property owners to bring quality projects to Indio, providing assistance throughout th e entire process, from project conception to completion.

•Job creation: The attraction of new businesses and investments can help create new job opportunities for residents, reducing unemployment rates and boosting the local economy.

•Increased tax reven ue: The relocation of new businesses and industries to Indio will increase the City's tax base, bringing in essential revenue to support city services and infrastructure.

•Regional collaboration: The IEDC can work collaboratively with neighboring cities a nd counties to create regional economic development strategies that can help leverage resources and create more opportunities for businesses and investors.

•Community development: The IEDC can facilitate community development through the acquisition, retention, disposal, and utilization of land in a manner that meets the current and future needs of residents and prioritizes community benefit and wellbeing.

The IEDC would be a powerful tool for economic growth and prosperity, helping create new jobs, attract new businesses and investments, and increase tax revenue. By working collaboratively with businesses, community leaders, and policymakers, the IEDC will build a strong, sustainable economy that benefits the residents in the City.

Proposed Governing Board

It is proposed that the property and affairs of the Corporation be managed and controlled by a board consisting of seven (7) directors, subject to the restrictions imposed by law, the Articles of Incorporation, and these Bylaws as follows:

a. One (1) member of the City Council for the City of Indio, as selected by the City Council. b. The then-current City Manager or Designee for the City of Indio. c. Two (2) members selected by the Cabazon Band of Cahuilla Indians d. Three (3) at-large members selected by the first four members of the EDC board representing:
• One (1) representative from the top 25 sales tax-producing businesses, • One (1) representative from the top transient occupancy tax producers, and • One (1) representative from the top entertainment business (Goldenvoice Entertainment)

APPROVAL(S):

Carl S. Morgan, Dir. Of Economic Development Approved - 10 May 2023 Steven Graham, City Attorney Approved - 10 May 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 11 May 2023