Indio City Council
June 21, 2023

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 125 of 680 2 Section 2.The form of the Joint Powers Agreement, on file with the City Clerk, is hereby approved, and the Mayor of the City (or in his absence, the Mayor Pro Tem), or the City Manager or his designee (collectively, the “Authorized Officers”), are each hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Joint Powers Agreement in substantially said form, with such changes, insertions and omissions therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.

Section 3.The officers, employees and agents of the City are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this resolution. All actions heretofore taken by the officers, employees and agents of the City with respect to the transactions set forth above are hereby approved, confirmed and ratified.

Section 4.Unless otherwise defined herein, all terms used herein and not otherwise defined shall have the meanings given such terms in the Joint Powers Agreement unless the context otherwise clearly requires.

Section 5.This resolution shall take effect immediately upon its passage.

PASSED, APPROVED AND ADOPTED this 21st day of June, 2023. ____________________________

OSCAR ORTIZ
MAYOR
ATTEST:
________________________________

SABDI SANCHEZ, CMC

CITY CLERK ADMINISTRATOR

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 126 of 680 Stradling Yocca Carlson & Rauth
Draft of 6/1/23
4856-1616-1105v9/200973-0003
_________________________________________________________________________________

JOINT EXERCISE OF POWERS AGREEMENT
by and between

CITY OF INDIO
and

IMPERIAL IRRIGATION DISTRICT
creating the

INDIO ELECTRIC FINANCING AUTHORITY
______ __, 2023
_________________________________________________________________________________

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 127 of 680 4856-1616-1105v9/200973-0003

JOINT EXERCISE OF POWERS AGREEMENT
THIS AGREEMENT, dated _____, 2023, by and between the CITY OF INDIO, a municipal corporation and general law city duly organized and existing under and by virtue of the Constitution and laws of the State of California (“Indio”), and the IMPERIAL IRRIGATION DISTRICT, an irrigation district that is duly organized and existing under and by virtue of the laws of the State of California, including but not limited to Division 11 of the Water Code (“IID”).

DECLARATION OF PURPOSE
A. Chapter 5 of Division 7 of Title 1 of the California Government Code (the “Act”) authorizes Indio and IID to create a joint exercise of powers entity which has the power to exercise any powers common to Indio and IID and to exercise additional powers granted to it under the Act.

This Agreement creates such an agency, which shall be known as the Indio Electric Financing Authority (the “Authority”) for the purposes and to exercise the powers described herein.

B. Indio and IID each have the power under the Constitution and laws of the State to furnish electrical power and to procure, construct, own, operate, maintain and/or lease facilities to supply such electrical power.

C. Indio and IID desire to create the Authority for the purposes of procuring, designing, financing, constructing, owning, operating and maintaining energy system improvements, system efficiency and reliability improvements and energy service enhancements in order to facilitate the provision and enhancement of electrical service within the territorial boundaries of Indio, and Indio and IID each desire to use any and every power common to them, and any other powers reasonably necessary and appropriate, to accomplish such purposes.

D. This Agreement does not legally bind or otherwise commit the Authority or the Members to participate in or otherwise proceed with the acquisition, design, construction or operation of any Project (as defined herein). The Members will comply with the California Environmental Quality Act (“CEQA”), as applicable, prior to proceeding with the acquisition, design, construction or operation of any Project.

E. Establishing and joining the Authority are administrative and organizational actions that will not result in a direct physical change in the environment or a reasonably foreseeable indirect change to the environment, and thus is not a project as defined by CEQA Guidelines section 15378(b)(5).

Now, therefore, Indio and IID agree as follows:

TERMS OF AGREEMENT
Section 1. Definitions. Unless the context otherwise requires, the terms defined in this Section 1 shall for all purposes of this Agreement have the meanings herein specified. “Act” shall mean Articles 1 through 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code (commencing with Section 6500), as amended or supplemented from time to time.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 128 of 680 2 4856-1616-1105v9/200973-0003
“Agreement” shall mean this Joint Exercise of Powers Agreement, as it may be amended from time to time, creating the Authority.
“Authority” shall mean the Indio Electric Financing Authority created by this Agreement. “Board” or “Board of Directors” shall mean the governing board of the Authority. “Bonds” shall mean bonds, notes, commercial paper and any other evidences of indebtedness of the Authority authorized and issued pursuant to the Act, and any indebtedness issued or incurred by the Authority pursuant to any act supplementary to the Act, including, but not limited to, refunding bonds authorized and issued pursuant to Article 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California. “Brown Act” shall mean the Ralph M. Brown Act (Chapter 9 of Part 1 of Division 2 of Title 5 of the California Government Code), or any successor legislation hereafter enacted. “Budget” shall have the meaning ascribed to such term in Section 14(a) of this Agreement. “Business Day” shall mean a day which is not a Saturday, Sunday or legal holiday on which banking institutions in the State are closed.
“Disputing Party” shall have the meaning ascribed to such term in Section 19(a). “Indenture” shall mean each indenture, trust agreement, resolution or other such instrument pursuant to which Bonds are issued.
“Members” shall mean Indio and IID.
“Notice of Dispute” shall have the meaning ascribed to such term in Section 19(a). “Project” or “Projects” shall mean the energy system improvements, system efficiency and reliability improvements and energy service enhancements or other facilities necessary and appropriate for carrying out the purposes of this Agreement and the applicable Project Agreement, and as further specified in such Project Agreement.
“Project Agreement” shall mean an agreement substantially in the form attached hereto as Exhibit A between the Authority and IID, or a successor thereto, entered into for a Project that, among other things, will identify the Project (or any subcomponents of such Project, if applicable), establish the scope of the Project, establish the ownership of the components of the Project, the terms of the lease of equipment, property or all or a portion of the Project, if applicable, to IID, define the responsibilities of the Authority and IID with respect to the design, acquisition, and construction, and the obligation of IID to operate, maintain and repair such Project in accordance with this Agreement, and provides for the interconnection of such Project into IID’s electrical system. “Servicing Agreement” shall mean the agreement substantially in the form attached hereto as Exhibit B between the Authority and IID, or any successor to IID, pursuant to which IID will agree to collect on behalf of, and remit to, the Authority the Surcharge. “Surcharge” shall mean the fee or charge charged by the Authority for the provision of electrical service.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 129 of 680 3 4856-1616-1105v9/200973-0003
“State” shall mean the State of California.
“System Average Rate” shall mean the total revenues generated by IID from the sale of electricity to all rate classes divided by the total kilowatt hours of electricity sold by IID to all rate classes.
“1934 Agreement” shall mean the Agreement of Compromise, dated February 14, 1934, by and between the Coachella Valley Water District and IID.

Section 2. Purpose. This Agreement is made pursuant to the Act for the purpose of providing and enhancing electrical service within the territorial boundaries of Indio through the procurement, design, construction, financing, leasing, ownership, operation and maintenance of energy system improvements, system efficiency and reliability improvements and energy service enhancements.

Section 3. Term. This Agreement shall become effective as of the date hereof and shall continue in full force and effect until the Members terminate this Agreement in writing; provided however this Agreement shall not terminate so long as any Bonds or other obligations of the Authority remain outstanding under the terms of any Indenture, contract, agreement, lease, sublease or other instrument pursuant to which such Bonds are issued or other obligations are incurred.

Notwithstanding the prior provisions of this Section 3, this Agreement and the Authority shall continue to exist for the purpose of disposing of all claims, distribution of assets and all other functions necessary to conclude the affairs of the Authority.

Section 4. Creation of the Authority. There is hereby created pursuant to the Act an authority and public entity to be known as the “Indio Electric Financing Authority.” As provided in the Act, the Authority shall be a public entity separate from the Members. The geographic boundaries of the Authority shall be coextensive with the territorial boundaries of Indio. The debts, liabilities and obligations of the Authority shall not constitute debts, liabilities or obligations of the Members. Notwithstanding any other provision of this Agreement, the Authority shall not have the power to incur any debt, liability or obligation that is not subject to the preceding sentence, including but not limited to any debt, liability or obligation to a public retirement system or otherwise for pension, health care or other retirement benefits.

Section 5. Powers.
(a)General Powers. The Authority shall have any and all powers which are common powers of the Members, and the powers separately conferred by law upon the Authority.

All such powers, whether common to the Members or separately conferred by law upon the Authority, are specified as powers of the Authority, except any such powers which are specifically prohibited to the Authority by applicable law or otherwise limited by Section 5(c) below. The Authority’s exercise of its powers is subject to the restrictions upon the manner of exercising the powers of Indio.
(b)Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary, convenient and appropriate for the exercise of the foregoing powers for the purposes set forth in this Agreement and to do any or all of the following:
(1) To make and enter into contracts;

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 130 of 680 4 4856-1616-1105v9/200973-0003
(2) To employ agents and employees;
(3) To lease, acquire, design, construct, manage, maintain or operate any building, works or improvements for the purposes set forth in Section 2 of this Agreement; (4) To enter into a real or personal property lease or leases with IID to facilitate the purposes set forth in Section 2 of this Agreement; (5) To acquire, hold or dispose of property or the right to use property or facilities for the purposes set forth in Section 2 of this Agreement; (6) To incur debts, liabilities, or obligations which do not constitute a debt, liability, or obligation of any Member;
(7) To charge the Surcharge;
(8) To receive gifts, contributions, and donations of property, funds, services, and other forms of assistance from persons, firms, corporations, and governmental entities, provided that the Authority consents to such gifts, contributions, and donations; (9) To prescribe the duties, compensation, and other terms and conditions of employment of other agents, officers, and employees; (10) To adopt reasonable rules and regulations for the conduct of the day- to-day operations of the Authority;
(11) To apply for, accept, receive, and disburse grants and loans from local, state, or federal agencies or from individuals or businesses; (12) To sue and be sued in its own name;
(13) To fund and maintain adequate reserve funds to support debt and operational requirements;
(14) To invest money in its treasury, pursuant to Government Code Section 6505.5 et seq., that is not required for the immediate necessities of the Authority, as the Authority determines advisable, in the same manner and on the same conditions as local agencies, pursuant to Section 53601 of the Government Code;
(15) To enter into Project Agreements in connection with any Projects; (16) To enter into the Servicing Agreement with IID;
(17) To issue Bonds or incur other obligations of the Authority; (18) To exercise any and all powers which are provided for in the Act and in Government Code Section 6584 et seq., including, without limitation Government Code Section 6588, as they exist on the date of this Agreement or may hereafter be amended;

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 131 of 680 5 4856-1616-1105v9/200973-0003
(19) To take action by resolution, ordinance, or motion, as approved by the Board as specified herein;
(20) To carry out and enforce all provisions of this Agreement with respect to the activities necessary to undertake the acquisition, design, construction, ownership, operation and maintenance of any Projects;
(21) To conduct such other activities as are necessary and appropriate to carry out purposes set forth in Section 2 of this Agreement; and (22) To exercise any power necessary or incidental to the foregoing powers.

Notwithstanding the foregoing, the Authority shall have any additional powers conferred under the Act or under applicable law, insofar as such additional powers may be necessary to accomplish the purposes set forth in Section 2 hereof.
(c)Limitation on Powers. The powers set forth in Sections 5(a) and 5(b) shall be subject to the limitations on the powers of the Authority set forth in Section 4. In no event shall the Authority be authorized to provide electrical service consisting of the distribution of electrical power directly to end user customers.
(d)Termination of Powers. The Authority shall continue to exercise the powers herein conferred upon it until the termination of this Agreement in accordance with Section 3 hereof.

Section 6. Governing Board.
(a)Members of the Governing Board. The Authority shall be administered by the Board. IID and Indio agree that the Board shall consist of the City Council of Indio. The term of office as a member of the Board shall terminate when such member of the Board shall cease to hold his or her respective office at Indio, and the successor to such officer or director of Indio shall become a member of the Board, upon assuming such office.

Members of the Board shall not receive any compensation for serving as such, but shall be entitled to reimbursement for any expenses actually incurred in connection with serving as a member if the Board shall determine that such expenses shall be reimbursed and there are unencumbered funds available for such purpose.
(b)Meetings of Board.
(1) The time and place for holding Board meetings shall be established, and may be changed at any time, by resolution of the Board. Initially, the Board shall conduct regular meetings on the same date, at the same time and at the same location as the regular meetings of the City Council of Indio; provided that the first regular meeting of the Board shall occur on _____, 2023. Such regular meetings may occur either during or after the regular meetings of the City Council of Indio, but may not commence earlier than the starting time for the regular meetings of the City Council of Indio. If the Secretary does not post an agenda for a regular meeting pursuant to the Brown Act, then such failure to post shall be deemed to be a determination by the Chair that no items require discussion and, therefore, that the regular meeting has been cancelled, except as otherwise

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 132 of 680 6 4856-1616-1105v9/200973-0003
provided in the Brown Act. The Board may hold special meetings at any time and from time to time in accordance with law.
(2) All regular and special meetings of the Board shall be called, noticed, held and conducted subject to the provisions of the Brown Act, or any successor legislation hereafter enacted. The Authority shall provide IID with notice of all such regular and special meetings of the Board.
(3) The Secretary of the Authority shall cause minutes of all meetings of the Board to be kept and shall, as soon as practicable after each meeting, cause a copy of the minutes to be forwarded to each member of the Board and to the Members. (4) A majority of the members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn meetings from time to time. (c)Voting. Each member of the Board shall have one vote. Subject to Section 5(d) below, all actions of the Board, including, but not limited to, approval of Authority budgets and approval of the issuance or refunding of Bonds shall be approved on the affirmative vote of a majority of the Board members of the Authority voting on the issue. In the event of a tie vote among the members of the Board, the matter will not be considered to have passed. (d)Limitations on Board Action; Matters Reserved to Members.

Notwithstanding Section 5(c) above, in addition to approval of the Board as provided in Section 5(c), the written approval of IID and Indio shall be required to:
(1) amend this Agreement in any manner;
(2) alter the purpose, powers or authority of the Authority or the Board; (3) initiate litigation or an alternative dispute resolution process against any party;
(4) in connection with any litigation or alternative dispute resolution process, hire counsel, or defend any action or claim without conferring and cooperating with the other Member;
(5) borrow funds in excess of the amount reasonably necessary to pay for a Project identified in an executed Project Agreement;
(6) enter into a Project Agreement, Servicing Agreement or Lease Agreement with any party other than IID;
(7) modify any executed Project Agreement, Service Agreement or Lease Agreement; or
(8) increase the Surcharge by an amount in excess of 10% of the then- existing System Average Rate.

For purposes of this Section 6(d)(8), the written approval of the Members shall be evidenced by an action of the governing body of the applicable Member. For all other purposes under this

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 133 of 680 7 4856-1616-1105v9/200973-0003
Section 6(d), written approval may be evidenced, for IID, by a certificate of the General Manager of IID or his or her designee, and for Indio, by a certificate of the City Manager of Indio or his or her designee
Section 7. Officers; Duties; Bonds.
(a)Officers. The officers of the Authority shall be the Chair, Vice Chair, Executive Director, Secretary and Treasurer. Such officers may be directors or officers of Indio serving ex officio.
(b)Chair. The Chair of the Authority shall be the Board member who is the Mayor of Indio. The term of office of the Chair shall be the same as the term of the Mayor of Indio.

The Chair shall preside at all meetings of the Authority, and shall submit such information and recommendations to the Board as he or she may consider proper concerning the business, policies and affairs of the Authority.
(c)Vice Chair. The Vice Chair of the Authority shall be the Board member who is the Mayor Pro Tem of Indio. The term of office of the Vice Chair shall be the same as the term of the Mayor Pro Tem of Indio. The Vice Chair shall perform the duties of the Chair in the absence or incapacity of the Chair. In case of the resignation or death of the Chair, the Vice Chair shall perform such duties as are imposed on the Chair, until such time as a new Chair is selected or appointed. (d)Executive Director. The City Manager of Indio is hereby designated as the Executive Director of the Authority and shall be responsible for execution and supervision of the affairs of the Authority. Except as otherwise authorized by resolution of the Board, the Executive Director or the Executive Director’s designee shall sign all contracts, deeds and other instruments executed by the Authority.
(e)Secretary. The City Clerk of Indio is hereby designated as the Secretary of the Authority. The Secretary shall keep the records of the Authority, shall act as Secretary at the meetings of the Authority and record all votes, and shall keep a record of the proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform all duties incident to the office. Any assistant City Clerk of Indio shall also serve as an assistant secretary of the Authority and may take any actions for which the Secretary has become authorized by the Agreement, any Indenture, and any resolution of the Board of the Authority or otherwise. (f)Treasurer. The [Assistant City Manager/Finance Director of Indio][Treasurer of Indio] is hereby designated as the Treasurer of the Authority. In addition, subject to the applicable provisions of any trust agreement, indenture or resolution providing for a trustee or other fiscal agent, the Treasurer of the Authority is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond as required by the Board, and as such shall have the power, duties and responsibilities that are specified in Section 6505.1 of the Act. The cost of the bond shall be paid by the Authority. (1) So long as required by Sections 6505 and 6505.5 of the Act, the Treasurer of the Authority shall prepare or cause to be prepared: (a) a special audit as required pursuant to Section 6505 of the Act every year during the term of this Agreement; and (b) a report in writing on the first day of July, October, January and April of each year to the Board and the Members, which report shall describe the amount of money held by the Treasurer of the Authority

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 134 of 680 8 4856-1616-1105v9/200973-0003
for the Board, the amount of receipts since the last such report, and the amount paid out since the last such report (which may exclude amounts held by a trustee or other fiduciary in connection with any Bonds to the extent that such trustee or other fiduciary provides regular reports covering such amounts).
(g)No Compensation. The services of the officers shall be without compensation by the Authority. Indio and IID will provide such other administrative services as required by the Authority, and shall not receive economic remuneration from the Authority for the provision of such services, except that IID will be entitled to recover its Administrative Costs as set forth in the Servicing Agreement.
(h)Legal Counsel and Other Consultants. The Board shall have the power to appoint such other officers and employees as it may deem necessary and to retain independent counsel, consultants and accountants.
(i)Employment by the Authority.
(1) None of the officers, agents or employees, if any, directly employed by the Authority shall be deemed, by reason of their employment by the Authority, to be employed by any Member or, by reason of their employment by the Authority, to be subject to any of the requirements or benefits of any Member.
(2) All of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, worker’s compensation and other benefits which apply to the activities of officers, agents or employees of the Members when performing their respective functions within the territorial limits of the respective Members, shall apply to them to the same degree and extent while engaged in the performance of any of their functions and duties extraterritorially under the provisions of this Agreement. (j)Confirmation of Officers. Confirmation of officers shall be the first order of business at the first meeting of the Authority, regular or special, held in each calendar year. (k)Limitation on Contracting on Behalf of the Authority. No Board member, officer, agent or employee of the Authority, without prior specific or general authority by a vote of the Board, shall have any power or authority to bind the Authority by any contract, to pledge its credit, or to render it liable for any purpose in any amount.

Section 8. Provision for Bylaws. The Board may cause to be developed and may adopt, from time to time, such bylaws for the Authority to govern its day-to-day operations. Each Member shall receive a copy of any bylaws developed and adopted under this section.

Section 9. Fiscal Year. The first fiscal year of the Authority shall be the period from the date of this Agreement to June 30, 2023. Each subsequent fiscal year of the Authority shall be the period from July 1 of each year through June 30 of the succeeding year, unless changed by resolution of the Board.

Section 10. Transfer and Disposition of Assets. Until all Bonds are no longer outstanding pursuant to their terms and the Surcharge is no longer being charged and collected by the Authority, title to any improvements financed with the proceeds of any Bonds or funded with the proceeds of

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 135 of 680 9 4856-1616-1105v9/200973-0003
the Surcharge shall remain held solely by the JPA, and the improvements financed with the proceeds of any Bonds or funded with the proceeds of the Surcharge shall not be considered assets, works, facilities or power rights in which IID has an interest or investment, and the improvements financed with the proceeds of any Bonds or funded with the proceeds of the Surcharge are not transferrable for any reason to any party, including any successor to IID, and Section 17(p) of the 1934 Agreement is inapplicable to the improvements financed with the proceeds of any Bonds or funded with the proceeds of the Surcharge.

Upon termination of this Agreement pursuant to Section 3 hereof, and after the payment of all liabilities, costs, expenses and charges validly incurred under this Agreement and payable by the Authority, any remaining assets of the Authority or amounts on deposit in any fund or account of the Authority shall be transferred to IID, or, in the event that IID is no longer providing electrical service within the boundaries of Indio, to the successor electrical service provider then-providing electrical power within the boundaries of Indio. In the event funds are transferred to IID pursuant to this Section, IID agrees to apply such funds to enhance electrical service and/or Projects within Indio.

Section 11. Contributions and Advances. Contributions or advances of public funds and of personnel, equipment or property may be made to the Authority by Indio or IID for any of the purposes of this Agreement. Payment of public funds may be made to defray the cost of any such contribution. Any such advance made in respect of a revenue-producing facility shall be made subject to repayment, and shall be repaid, in the manner agreed upon by the Members, and the Authority at the time of making such advance as provided by Section 6512.1 of the Act. It is mutually understood and agreed that the Members have no obligation to make advances or contributions to the Authority to provide for the costs and expenses of administration of the Authority.

Section 12. Projects.
(a)Acquisition and Construction of Projects. The design, acquisition and construction of any Projects shall be undertaken pursuant to the terms of a Project Agreement relating to the applicable Project. If the Project Agreement provides for the acquisition, design and/or construction of any Project, or portions of a Project, by a party other than IID pursuant to the terms of a separate agreement with such party, such agreement and any related designs or equipment must comply with IID’s requirements, practices and standards, as set forth in the applicable Project Agreement, and IID will have the right to review any such agreement, designs or equipment specifications to confirm compliance with IID’s requirements, practices and standards in accordance with such Project Agreement. The costs of the design, acquisition and/or construction of any Projects are expected to be paid with the proceeds of Bonds, the proceeds of the Surcharge and any other lawfully available source of funds of the Authority. (b)Operation, Maintenance and Repair of Projects. The Projects are expected to be integrated into IID’s overall electrical system that serves Indio. Accordingly, the Members agree that IID can most efficiently operate, maintain and repair such Projects and, as a result, IID shall be responsible for the operation, maintenance and repair of the Projects pursuant to the terms the Project Agreement relating to the applicable Project. The costs of operating, maintaining and repairing the Projects shall be paid from amounts collected by IID through the rates and charges that IID charges for electrical service provided by IID. In the event that IID no longer provides electrical service within the boundaries of Indio and the Projects are no longer part of IID’s electrical system, IID shall no longer be responsible for operating, maintaining or repairing the Projects.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 136 of 680 10 4856-1616-1105v9/200973-0003
So long as IID is operating, and maintaining and repairing a Project, IID shall have unfettered access and control over such Project and the operation of such Project, including without limitation the ability to unilaterally take any and all actions necessary to ensure the overall integrity, safety, efficiency and reliability of IID’s electric power system and to respond as necessary to any emergency conditions. For purposes of this Section 12(b), IID shall have the same access and control to the applicable Project as IID would have to such Project if the Project were solely funded and owned by IID.
(c)Ownership of Projects Acquired or Constructed by the Authority. Any Projects acquired or constructed by the Authority shall be owned by the Authority, unless otherwise specified in the Project Agreement.
(d)Lease of Project and Related Land and Equipment. A Project Agreement may provide for the lease of any equipment, land, a Project or part of a Project owned by the Authority to IID or include the lease provisions. If the Authority and IID determine not to include lease provisions in a Project Agreement, the Authority and IID may enter into a separate lease agreement. Subject to Section 6(d)(6), to the extent provided for under the applicable Project Agreement, the Authority may enter into a lease agreement with a party other than IID for any equipment, land, a Project or part of a Project owned by the Authority for the purposes set forth in such Project Agreement.
(e)Interconnection to the IID Electrical System. IID will use its best efforts to provide for the interconnection of a Project into IID Electrical System. (f)No Assignment or Subletting of IID’s Power Rights or Privileges. Nothing in this Agreement, any Project Agreement, the Servicing Agreement or any lease agreement shall constitute or be interpreted as an assignment or subletting by IID to the Authority or to Indio of any of IID’s power rights and privileges under the 1934 Agreement.

Section 13. Surcharge.
(a)Establishment of Surcharge. Pursuant to Sections 5(c) and (d) above, the Board of the Authority [by resolution or ordinance] may authorize the charge of the Surcharge. The terms of the [resolution or ordinance] shall set forth the amount of the Surcharge to be charged and duration of the charge of the Surcharge, among other terms. The Board may modify the terms of any Surcharge pursuant to a subsequent [resolution or ordinance], subject to the provisions of Section 5(d) and any restrictions contained in any Bonds or documents related to any Bonds to which the Authority is a party.

The Surcharge authorized by the Authority is for the purpose of improving the delivery of electric service by adding Authority financed or funded improvements, but is not and shall not be considered a rate charged for the consumption of electric service in the Coachella Valley. The Surcharge shall have no impact on, and shall be entirely independent of, the rate IID charges to power customers in the Coachella and Imperial Valleys.
(b)Collection of Surcharge. The Surcharge shall be charged by the Authority and collected by IID pursuant to the terms of the Servicing Agreement. IID shall include the Surcharge on the bill of IID customers receiving electrical power within the boundaries of Indio, or as otherwise specified in the [resolution or ordinance] approving the Surcharge. The Surcharge shall

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 137 of 680 11 4856-1616-1105v9/200973-0003
be billed and collected in a manner consistent with IID’s general billing and collection practices and procedures. IID shall remit to the Treasurer, or, if directed by the Authority in writing, directly to the trustee for any Bonds issued by the Authority, any amounts collected and received during a calendar month representing the Surcharge by not later than the 15 th (fifteenth) day of the second calendar month succeeding the month in which such amounts were collected and received by IID (e.g., amounts representing the Surcharge collected in January shall be remitted by no later than March 15), unless a different date for such remittance is agreed to in the Servicing Agreement.

Section 14. Budget.
(a)Annual Budget. The Board shall adopt a budget (the “Budget”) prior to the start of each Fiscal Year. The Budget shall include components to fund the Authority’s administrative and operational costs, debt service on any Bonds and any capital improvements. The Board may update and revise the Budget as necessary throughout the Fiscal Year to which the Budget applies. The Authority shall provide IID with a copy of such Budget or any amendment thereto.

Section 15. Bonds.
(a)Authority to Issue Bonds. When authorized by the Act or other applicable provisions of law and by resolution of the Board, the Authority may issue Bonds for the purpose of raising funds for the exercise of any of its powers or to otherwise carry out its purposes under this Agreement. Said Bonds shall have such terms and conditions as are authorized by the Board. (b)Bonds Limited Obligations. The Bonds, including the principal and any purchase price thereof, and the interest and premium, if any, thereon, shall be special obligations of the Authority payable solely from, and secured solely by, the revenues, funds and other assets that are pledged therefor under the applicable Indenture(s) and shall not constitute a charge against the general credit of the Authority or the Members. The Bonds shall not be secured by a legal or equitable pledge of, or lien or charge upon or security interest in, any property of the Authority or any Members or any Authority income or receipts or any Members income or receipts except the property, income and receipts pledged therefor under the applicable Indenture(s). The Bonds shall not constitute a debt, liability or obligation of the State or any public agency thereof, including any Member, other than the special obligation of the Authority as described above. Neither the faith and credit nor the taxing power of the State or any public agency thereof, including any Member, shall be pledged to the payment of the principal or purchase price of, or the premium, if any, or interest on the Bonds, nor shall the State or any public agency or instrumentality thereof, including any Member, in any manner be obligated to make any appropriation for such payment. The Authority shall have no taxing power.

No covenant or agreement contained in any Bond or Indenture shall be deemed to be a covenant or agreement of any director, officer, agent or employee of the Authority or a Member, in his or her individual capacity, and no director or officer of the Authority executing a Bond shall be liable personally on such Bond or be subject to any personal liability or accountability by reason of the issuance of such Bond.

Section 16. Record Retention. In any event, the Authority shall cause all records regarding the Authority’s formation, existence, operations, any Bonds issued by the Authority, obligations incurred by it and proceedings pertaining to its termination to be retained for at least six

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 138 of 680 12 4856-1616-1105v9/200973-0003
(6) years following termination of the Authority or final payment of any Bonds issued by the Authority, whichever is later.

Section 17. Indemnification. To the full extent permitted by law, the Board shall provide for indemnification by the Authority of any person who is or was a member of the Board, or an officer, employee or other agent of the Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of the fact that such person is or was such a member of the Board, or an officer, employee or other agent of the Authority, against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with such proceeding, if such person acted in good faith and in the course and scope of his or her office, employment or agency. In the case of a criminal proceeding, the Board may provide for indemnification and defense of a member of the Board, or an officer, employee or other agent of the Authority to the extent permitted by law.

The Members hereby confirm their intent and agree that, as provided in Section 4(a) hereof and in the Act, the debts, liabilities and obligations of the Authority shall not constitute debts, liabilities or obligations of the Members, and they do not intend by the following sentence to impair this provision. Notwithstanding Section 4 hereof, the confirmation provided immediately above, and the Act, the Authority shall indemnify, defend and hold harmless IID and Indio and each of IID’s and Indio’s officers, directors, employees, attorneys and agents from and against any and all costs, expenses, losses, claims, damages, and liabilities directly or indirectly arising out of or in connection with the activities of the Authority.

Indio shall indemnify, defend and hold harmless IID and each of IID’s officers, directors, employees, attorneys and agents from and against any and all demands, claims or lawsuits arising out of the establishment, collection, or use of the Surcharge, or any act or failure to act by the Authority.

IID may elect to defend itself in any such action with counsel of its choice, the reasonable fees of such counsel to be paid by Indio.

Indio shall indemnify, defend and hold harmless the Authority and each of the Authority’s officers, directors, employees, attorneys and agents from and against any and all demands, claims or lawsuits arising out of the establishment, collection, or use of the Surcharge, or the exercise of any of the rights and obligations of this Agreement.

Proceeds of any Bonds remaining following the completion of the Project for which such Bonds were issued (excluding any amounts pledged to the payment of principal or interest on such Bonds) that are legally available to use for indemnity, defense or hold harmless purposes and any Surcharge proceeds held by the Authority that are legally available to use for indemnity, defense or hold harmless purposes shall be made available to the Authority, Indio and IID to pay for expenses associated with the indemnification, defense or hold harmless obligations set forth in this Section 17 before the funds of Indio or IID are required to be contributed for such purposes; provided that proceeds of any Bonds issued on a tax-exempt basis shall not be applied in a manner which would result in interest on any such Bonds being includable in gross income for federal income tax purposes.

This Section 17 shall survive the termination of this Agreement.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 139 of 680 13 4856-1616-1105v9/200973-0003
Section 18. [Member Insurance Policies. Indio shall add IID as an additional insured, or for any self-insurance, shall treat IID as an insured beneficiary, and IID shall add Indio as an additional insured, or add Indio or for any self-insurance shall treat Indio as an insured beneficiary.] Section 19. Dispute Resolution.
(a)Submission. In the event a Member or the Authority have a dispute, or assert a claim, that arises out of or in connection with this Agreement, or their performance thereunder, such Member or the Authority (the “Disputing Party”) shall provide the applicable Member and the Authority, as the case may be, with written notice of the dispute or claim (“Notice of Dispute”). The Notice of Dispute shall: (a) describe what is disputed or claimed and include an identification of the alleged facts and Agreement sections relevant to such dispute or claim; and (b) provide the name and contact information for the designated representative of the Disputing Party who will represent it in informal negotiations.

Such dispute or claim shall be referred to a designated representative of each Member involved in the dispute and Authority (if the Authority is involved in the dispute) for resolution on an informal basis as promptly as practicable after receipt of the Notice of Dispute by a Member or the Authority, as applicable. In the event the designated representatives are unable to resolve the claim or dispute within thirty (30) calendar days of the receipt of the Notice of Dispute by a Member or the Authority, as applicable, the Disputing Party shall, within thirty-five (35) calendar days of the receipt of the Notice of Dispute by a Member or the Authority, as applicable, notify the applicable Member and the Authority (if the Authority is involved in the dispute), whether the Disputing Party either: (a) is no longer pursuing its dispute; or (b) elects to proceed to assisted negotiation or mediation. If the Disputing Party elects to proceed to assisted negotiation or mediation, the Disputing Party shall include in its notice the names and contact information for at least three (3) possible neutral mediators, meeting the qualifications described in Section 19(b) below, which would be acceptable to the Disputing Party. Within five (5) Business Days of receipt of the Disputing Party’s election to proceed to assisted negotiation or mediation, the applicable Member and/or the Authority, as the case may be, shall, in turn, notify the Disputing Party of the names and contact information for at least three possible neutral mediators, meeting the qualifications described in Section 19(b) below, which would be acceptable to the applicable Member and/or the Authority, as the case may be. (b)Assisted Negotiation or Mediation. Any assisted negotiation or mediation initiated under this Section 19 shall be conducted before a single neutral mediator appointed by the Members and Authority (if the Authority is involved in the dispute). If the Members and Authority, as applicable, fail to agree upon a single mediator within fifteen (15) calendar days of the Disputing Party’s notice of election to proceed to assisted negotiation or mediation, each Member involved in the dispute and Authority (if the Authority is involved in the dispute) shall choose a single neutral party who shall sit on a three-member mediation panel. The two neutral parties so chosen shall within twenty (20) calendar days select a third neutral party to chair the mediation panel. In either case, the mediators shall be knowledgeable in electric utility matters, including electric transmission and bulk power issues, and shall not have any current or past substantial business or financial relationships with the Members involved in the mediation and the Authority (if the Authority is involved in the mediation). The mediator(s) shall provide each of the Members involved in the mediation and the Authority (if the Authority is involved in the mediation) an opportunity to be heard. In the event the Members or the Authority, as applicable, are unable through either assisted negotiation or mediation to resolve the dispute within ninety (90) calendar days, each of the applicable Members and the

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 140 of 680 14 4856-1616-1105v9/200973-0003
Authority, as the case may be, may exercise whatever rights and remedies it may have in equity or at law consistent with the terms of this Agreement.
(c)Costs. The Members in dispute and the Authority (if the Authority is involved in the dispute) shall be responsible for their own costs incurred during the assisted negotiation or mediation process and for one half of the cost of the mediator(s) chosen to assist the such Members and the Authority, as applicable.

Section 20. Agreement not Exclusive. This Agreement shall not be exclusive and shall not be deemed to amend or alter the terms of other agreements between the Members, except as the terms of this Agreement shall conflict therewith, in which case the terms of this Agreement shall prevail.

Section 21. Accounts and Reports. All funds of the Authority shall be strictly accounted for in books of account and financial records maintained by the Authority, including a report of all receipts and disbursements. The Authority shall establish and maintain such funds and accounts as may be required by generally accepted accounting principles and by each Indenture for outstanding Bonds (to the extent that such duties are not assigned to a trustee for owners of Bonds). Revenues or funds received or made available to the Authority from any source whatsoever, shall be deposited into such funds and accounts, and may be expended by the Authority in any legal manner, subject to such reservations as may be imposed by the Authority from time to time.

The books and records of the Authority shall be open to inspection at all reasonable times by the Members and their representatives.

The Authority shall require that each Indenture provide that if a trustee is appointed thereunder, such trustee shall establish suitable funds, furnish financial reports and provide suitable accounting procedures to carry out the provisions of such Indenture. Said trustee may be given such duties in said Indenture as may be desirable to carry out the requirements of this Section 19. (a)Audits. The Treasurer of the Authority shall cause an independent audit to be made of the books of accounts and financial records of the Authority in compliance with the requirements of the Act. Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants in making an audit pursuant to this Section 19, shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for that purpose.

IID may request an independent audit of the Authority’s financial statements for a fiscal year (as well as associated supporting documentation) for purposes of verifying collections of the Surcharge and expenditures of the Authority made pursuant to this Agreement, a Project Agreement or any agreement related thereto, to be paid for by IID, by sending a written audit request to the Authority before the end of the succeeding fiscal year. (b)Audit Reports. The Treasurer of the Authority, as soon as practicable after the close of each fiscal year but in any event within the time necessary to comply with the requirements of the Act shall file a report of the audit performed pursuant to this Section 19(b) as required by the Act and shall send a copy of such report to public entities and persons in accordance with the requirements of the Act.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 141 of 680 15 4856-1616-1105v9/200973-0003
Section 22. Funds. Subject to the provisions of each Indenture for outstanding Bonds providing for a trustee to receive, have custody of and disburse funds which constitute Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds pursuant to accounting procedures approved by the Board and shall make the disbursements required by this Agreement or otherwise necessary to carry out the provisions and purposes of this Agreement.

Section 23. Adoption of Certain Codes and Policies. The Authority shall, by resolution, adopt a Conflict of Interest Code, an investment policy and a debt management policy to the extent required by law.

Section 24. Notices. Notices and other communications hereunder to the parties shall be sufficient if delivered to the clerk or secretary of the governing body of each party.

Section 25. Forms of Agreements. The forms of the Project Agreement attached hereto as Exhibit A and the Servicing Agreement attached hereto as Exhibit B may not be modified without the express written consent of IID. Execution of such agreements by IID shall evidence such consent.

Section 26. Additional Members. The initial Members of the Authority shall be IID and Indio. No additional Members shall be admitted to the Authority unless express written consent of the admittance of such additional Member is provided by both IID and Indio, which consent may be withheld for any reason.

Section 27. Withdrawal. No Member may withdraw from this Agreement prior to the end of the term of this Agreement determined in accordance with Section 3.

Section 28. Effectiveness. This Agreement shall become effective and be in full force and effect and a legal, valid and binding obligation of the Members when each party has executed a counterpart of this Agreement.

Section 29. Severability. Should any part, term, or provision of this Agreement be decided by the courts to be illegal or in conflict with any law of the State, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions hereof shall not be affected thereby.

Section 30. Successors; Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. Except to the extent expressly provided herein, neither party may assign any right or obligation hereunder without the consent of the other.

Section 31. Amendment of Agreement. This Agreement may be amended by supplemental agreement executed by the Members at any time; provided, however, that this Agreement may be terminated only in accordance with Section 3 hereof and, provided further, that such supplemental agreement shall be subject to any restrictions contained in any Bonds or documents related to any Bonds to which the Authority is a party.

Section 32. Waiver of Personal Liability. No Member, member of the Board, officer or employee of the Authority or the Members shall be individually or personally liable for any claims, losses, damages, costs, injury and liability of any kind, nature or description arising from the actions

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 142 of 680 16 4856-1616-1105v9/200973-0003
of the Authority or the actions undertaken pursuant to this Agreement, and the Authority shall defend such Members, members of the Board, officers or employees against any such claims, losses, damages, costs, injury and liability. Without limiting the generality of the foregoing, no Member, member of the Board, officer or employee of the Authority or of any Member shall be personally liable on any Bonds or be subject to any personal liability or accountability by reason of the acquisition, construction, design, ownership, leasing, operation, maintenance or repair of the Projects or the issuance of Bonds pursuant to the Act and this Agreement.

Section 33. Notices. Notices to a Member hereunder shall be sufficient if delivered to the General Manager of IID and the City Manager of Indio, as applicable.

Section 34. Section Headings. All section headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Agreement.

Section 35. Miscellaneous. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

Where reference is made to duties to be performed for the Authority by a public official or employee, such duties may be performed by that person’s duly authorized deputy or assistant. Where reference is made to actions to be taken by a Member, such action may be exercised through the officers, staff or employees of such Member in the manner provided by law.

The principal office of the Authority shall be the principal office of Indio.

THIS AGREEMENT IS MADE IN THE STATE, UNDER THE CONSTITUTION AND

LAWS OF THE STATE AND IS TO BE CONSTRUED AS A CONTRACT MADE AND TO BE PERFORMED IN THE STATE.

This Agreement is the complete and exclusive statement of the agreement among the parties with respect to the subject matter hereof, which supersedes and merges all prior proposals, understandings, and other agreements, whether oral, written, or implied in conduct, between the parties relating to the subject matter of this Agreement.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 143 of 680 4856-1616-1105v9/200973-0003
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their proper officers or officials thereunto duly authorized, as of the day and year first above written.

CITY OF INDIO
By
Mayor
ATTEST:

City Clerk

IMPERIAL IRRIGATION DISTRICT
By:

President
ATTEST:

Secretary

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 144 of 680 4856-1616-1105v9/200973-0003

EXHIBIT A

FORM OF PROJECT AGREEMENT

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 145 of 680 4856-1616-1105v9/200973-0003

EXHIBIT B

FORM OF SERVICING AGREEMENT

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 146 of 680 Stradling Yocca Carlson & Rauth
Draft of 6/14/23
4862-8963-6956v10/200973-0003

SERVICING AGREEMENT
THIS SERVICING AGREEMENT dated as of _____ 1, 2023 (the “Agreement”) by and between the Imperial Irrigation District (“IID”), an irrigation district that is duly organized and existing under and by virtue of the laws of the State of California (the “State”), and the Indio Electric Financing Authority (the “Authority”), a joint exercise of powers agency that is duly organized and existing under and by virtue of the laws of the State. The Authority and IID may each be referred to herein as a “Party” and, collectively, as the “Parties.” Terms not otherwise defined herein shall have the meaning assigned to such terms in the Joint Exercise of Powers Agreement, dated _____ , 2023 (the “Joint Powers Agreement”), by and between IID and the City of Indio (“Indio”).

WHEREAS, pursuant to [Resolution][Ordinance] No. ___, adopted by the Board of Directors of the Authority on ____, 2023 (the “Surcharge Resolution”), the Authority authorized the charge of a surcharge for the provision and enhancement by the Authority of electrical service within the boundaries of Indio (the “Surcharge”);
WHEREAS, IID currently provides retail electric service within the boundaries of Indio; WHEREAS, IID bills IID customers located within the boundaries of the City of Indio (the “Indio Customers”) for retail electrical service and collects payment from the Indio Customers for such electrical service;
WHEREAS, IID also bills Indio Customers a Utility User Tax (“UUT”) as set out in the Utility Users’ Tax Process Memorandum Of Understanding 092310 on behalf of the Indio and forwards to Indio such taxes, less collection and related expenses; WHEREAS the Authority, in furtherance of its purposes set forth in the Joint Powers Agreement, requests the assistance of IID in the billing and collection of the Surcharge through the placement of the Surcharge on the billing statement received by Indio Customers (each, an “IID Billing Statement”);
WHEREAS the Authority has provided IID with a copy of the Surcharge Resolution, which sets forth, among other things, the calculation of the Surcharge; and NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which the Parties hereby acknowledge, the Parties, intending to be legally bound, do hereby covenant and agree as follows:

Section 1. Billing and Collection of the Surcharge.
(a)IID Billing of Surcharge. IID agrees to include the Surcharge on the IID Billing Statements delivered to Indio Customers. IID will include the Surcharge on the IID Billing Statement of each Indio Customer eligible to be charged the Surcharge pursuant to the terms of the Surcharge Resolution and shall be calculated by IID in the manner set forth in the Surcharge Resolution. The Surcharge shall appear as a separate line item on the IID Billing Statement, or as otherwise prescribed by IID’s then-current billing procedures, and IID shall bill the Surcharge in the same manner as IID bills Indio Customers for electrical service and the UUT.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 147 of 680 2 4862-8963-6956v10/200973-0003
The Surcharge authorized by the Authority under the Surcharge Resolution is for the purpose of improving the delivery of electrical service by adding Authority financed or funded improvements, but is not and shall not be considered a rate charged for the consumption of electrical service in the Coachella Valley. The Surcharge shall have no impact on, and shall be entirely independent of, the rate IID charges to IID electrical service customers in the Coachella and Imperial Valleys.

IID shall not be responsible for, nor have any duty to independently investigate or inquire with regard to, the validity of the Surcharge. IID shall not be responsible for, nor have any duty to independently investigate or inquire with regard to, IID customers that are exempt from the collection of the Surcharge.
(b)Boundary Information. The Authority shall assure the accuracy of Indio’s boundary information (including the reflection of the latest annexation and municipal reorganizations) needed for the Surcharge billing and collection purpose by providing IID with written notice whenever boundary changes are made to the boundaries of Indio. Such notice shall include an updated boundary map reflecting such boundary changes. Following receipt of such notice from the Authority, if the boundaries of Indio have expanded, IID shall use its best efforts to include the Surcharge on IID bills of electric customers residing in the additional territory of Indio within the next two IID billing cycles. If the change in boundaries results in a contraction of the boundaries of Indio, IID will use its best efforts to remove the Surcharge from the bills of IID customers residing in the territory that is no longer part of Indio within the next two IID billing cycles. IID shall not be responsible for the collection or payment of any Surcharges that were not collected due to the inaccuracy of information provided by the Authority. (c)Surcharge Appeals. The Authority may hear objections, claims and appeals to determine whether IID customers should be subject to the collection of the Surcharge. Should an IID customer’s status change as a result of the Authority’s final and nonappealable resolution of any objection, claim, or appeal, the Authority shall so advise IID. If the Authority is required by law to refund all or any part of the Surcharge, it shall be the sole responsibility of the Authority to refund the Surcharge.
(d)Collection of the Surcharge by IID. IID agrees to collect the Surcharge on behalf of the Authority in the regular course of its business. IID agrees to adhere to and carry out its disconnection policies in connection with delinquent payments of the Surcharge. IID will determine the amount of the uncollectable Surcharge owed by IID customers for each year consistent with its write off policy as approved by IID’s Board of Directors each year.

Until IID remits the Surcharge amounts to the Authority pursuant to Section 2 of this Agreement, IID shall hold the Surcharge in an account established by IID that will segregate the Surcharge from the other funds and accounts of IID. The Parties agree and acknowledge that at all times the Surcharge collected by IID on behalf of the Authority shall be the property of the Authority and that the Surcharge is not revenue of IID.
(e)Provision of Services Related to the Surcharge by IID. (i) IID agrees to provide all metering and meter reading services necessary for the calculation of the Surcharge.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 148 of 680 3 4862-8963-6956v10/200973-0003
(ii) In connection with the billing and collection of the Surcharge on behalf of the Authority, IID shall (1) follow its customary standards, policies and procedures in performing its duties hereunder and (2) perform its duties hereunder using the same degree of care and diligence that IID exercises for its own account.

Section 2. Remittance of Surcharge to the Authority. IID shall remit to the Authority all amounts representing the Surcharge not later than the 15 th (fifteenth) day of the second calendar month succeeding the month in which such amounts were collected and received by IID (e.g., amounts representing the Surcharge collected in January shall be remitted by no later than March 15). Such amounts will include any delinquent payments of the Surcharge received by IID.

Amounts remitted by IID to the Authority pursuant to this Section 4 will be transferred by wire transfer pursuant to wire instructions set forth in Schedule I. In connection with the issuance of Bonds by the Authority, the Authority may provide IID with an instruction to remit the proceeds of the Surcharge directly to the trustee for the Bonds issued by the Authority. Such instruction shall include the wire instructions for such trustee.

Section 3. Over or Under Collection of Surcharge. To insure the appropriate Surcharge has been collected and remitted by IID, representatives of the Authority and IID shall meet annually to review Surcharge accounting and records of the Authority and IID as necessary to determine if such an over or under collection occurred:
a. Over Collection. In the event of an over collection of the Surcharge, the Authority shall be responsible for processing any refunds to IID customers. b. Under Collection.

1. If IID determines that the Authority has changed the list of electric service categories designated by the Authority ordinance or resolution to be charged as part of a Surcharge, IID will implement the change at the next billing cycle after the IID billing records are updated to reflect the change, and IID will not be required to back bill.

2. If new IID electric service customers have been added within the City of Indio’s jurisdictional boundary subject to the Surcharge, IID will begin charging the City of Indio’s designated customers at the next billing cycle after the IID billing records are updated to reflect the change.

3. Should IID recover previously uncollectable and written off electric service revenue, IID shall proportionally remit recovered Surcharge revenue to the Authority.

Section 4. Administration Fee and Bad Debt Allowance. In order to recover the costs of collecting the Surcharge, IID shall charge, as against collected Authority Surcharge revenue, an administration fee and a bad debt allowance. The administration fee is retained by IID on a monthly basis from IID’s monthly remittance of the Surcharge in the amount of one point five percent (1.5%) of the Surcharge collected. The bad debt allowance is point four five percent (.45%) of the Surcharge collected.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 149 of 680 4 4862-8963-6956v10/200973-0003
Section 5. Customer Inquiries. It is the Authority’s responsibility to notify IID customers within Indio’s boundaries of the Surcharge. IID shall provide to the Authority a record including name and service address of all of its electric customers presently billed the UUT. So long as IID is collecting the Surcharge on behalf of the Authority pursuant to this Agreement, IID shall address all Indio Customer inquiries regarding the Surcharge as per language provided by the Authority. The Authority agrees to provide all necessary information to IID in order to permit IID to respond to all Indio Customer inquiries on a timely basis. Escalated inquiries that are outside of IID’s control will be referred to an appointed staff member of the Authority whose contact shall be provided to IID.

Section 6. Term of Agreement. This Agreement shall become effective as of the date hereof and shall continue to be in full force and effect until the Business Day that is six (6) months after the later of (a) the date that the Surcharge is no longer being charged to Indio Customers by the Authority and (b) the date on which all Bonds are no longer outstanding pursuant to their terms; provided that in the event that IID is no longer providing electrical services within the boundaries of Indio during a period when the Surcharge is being charged by the Authority, this Agreement shall terminate on the date on which IID ceases to provide electrical services within the boundaries of Indio; provided further that IID’s obligations (i) to collect amounts representing Surcharge billed to Indio Customers prior to the termination of this Agreement and (ii) to remit such Surcharge amounts to the Authority, shall survive the termination of this Agreement.

Section 7. Records. The Parties shall maintain accurate records and accounts relating to the Surcharge in sufficient detail to permit recordation of the Surcharge billed to Indio Customers and the amounts of Surcharge remitted by IID to the Authority (or, if applicable, the trustee for Bonds issued by the Authority). Each Party shall provide access to such records to the other Party.

The Parties shall afford access without charge, upon a reasonable request made pursuant to Section

10. The Parties shall retain all records used in the collection and remittance of the Surcharge for a minimum of three (3) years.

Section 8. Audit. Upon 30 calendar days’ prior written notice, the Authority may request an audit, conducted by the Authority or its agents, at the expense of the Authority, of IID’s records and procedures, which shall be limited to records and procedures containing information bearing upon the Surcharge being billed to Indio Customers and the Indio Customer payments of the Surcharge. The audit shall be conducted during IID’s normal business hours without interference with IID’s normal operations and in compliance with IID’s security procedures.

Section 9. Indemnification. The Authority shall indemnify, defend and hold harmless IID and each of IID’s officers, directors, employees, attorneys and agents from and against any and all costs, expenses, losses, claims, damages, and liabilities directly or indirectly arising out of or in connection with the billing and collection of the Surcharge. Notwithstanding the foregoing, the provisions of this Section 7 shall not apply any such costs, expenses, losses, claims, damages, and liabilities to the extent they involve the negligence, recklessness or willful misconduct of IID.

Section 10. Notices. All notices, consents, requests, instructions, approvals and other communications provided for in this Agreement must be in writing, signed, with respect to Authority, by the President of the Board of Directors of the Authority, the Vice President of the Board of Directors of the Authority, the Executive Director of the Authority or any designee thereof (each an “Authority Authorized Representative”) and, with respect to IID, the President of the Board of Directors of IID, the Vice President of the Board of Directors of IID and the General Manager of IID

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 150 of 680 5 4862-8963-6956v10/200973-0003
or any designee thereof (each an “IID Authorized Representative”): (i) personal delivery, overnight delivery by a recognized courier or delivery service, (ii) mailed by registered or certified mail, return receipt requested, postage prepaid, or (iii) electronic transmission, which includes email with an imaged or scanned attachment (such as a .pdf) or other similar electronic transmission, (receipt confirmed); and become effective when delivered to the addresses noted below or such other address as may be substituted therefor by written notification by the Authority Authorized Representative or the IID Authorized Representative, as applicable.

If to IID, to:

Imperial Irrigation District
[333 E. Barioni Boulevard]
[Imperial, California 92251]
Attention: [General Manager]
Email: __________
Phone: __________
If to the Authority, to:

Indio Electric Financing Authority
100 Civic Center Drive
Indio, California 92201
Attention: Executive Director
Email: __________
Phone: __________
Section 11. Inconsistent Provisions. Depositor agrees that to the extent that the provisions of any other agreement relating to the Account Property are inconsistent with the terms of this Agreement, the terms of this Agreement will control.

Section 12. Counterparts. This Agreement and any amendments hereto may be executed in any number of counterparts each of which will be deemed to be an original, and all of which together will constitute but one and the same instrument.

Section 13. Severability. The invalidity, illegality or unenforceability of any provision of this Agreement will in no way affect the validity, legality or enforceability of any other provision; and if any provision is held to be unenforceable as a matter of law, the other provisions will not be affected thereby and will remain in full force and effect.

Section 14. Governing Law. This agreement will be governed by and construed in accordance with the laws of the State of California.

Section 15. Dispute Resolution.
(a)Submission. In the event either Party has a dispute, or asserts a claim, which arises out of or in connection with this Agreement, or their performance thereunder, such Party (the “Disputing Party”) shall provide the other Party with written notice of the dispute or claim (“Notice of Dispute”). The Notice of Dispute shall: (a) describe what is disputed or claimed and include an identification of the alleged facts and Agreement sections relevant to such dispute or claim; and (b)

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 151 of 680 6 4862-8963-6956v10/200973-0003
provide the name and contact information for the designated representative of the disputing Party who will represent it in informal negotiations.

Such dispute or claim shall be referred to a designated representative of each Party for resolution on an informal basis as promptly as practicable after receipt of the Notice of Dispute by the other Party. In the event the designated representatives are unable to resolve the claim or dispute within thirty (30) calendar days of the other Party’s receipt of the Notice of Dispute, the Disputing Party shall, within thirty-five (35) calendar days of the other Party’s receipt of the Notice of Dispute, notify the other Party whether it either: (a) is no longer pursuing its dispute; or (b) elects to proceed to assisted negotiation or mediation. If the Disputing Party elects to proceed to assisted negotiation or mediation, the Disputing Party shall include in its notice the names and contact information for at least three (3) possible neutral mediators, meeting the qualifications described in Section 14(b) below, which would be acceptable to the disputing Party. Within five (5) Business Days of receipt of the Disputing Party’s election to proceed to assisted negotiation or mediation, the other Party shall, in turn, notify the Disputing Party of the names and contact information for at least three possible neutral mediators, meeting the qualifications described in Section 14(b) below, which would be acceptable to the other Party.
(b)Assisted Negotiation or Meditation. Any assisted negotiation or mediation initiated under these procedures shall be conducted before a single neutral mediator appointed by the Parties. If the Parties fail to agree upon a single mediator within fifteen (15) calendar days of the disputing Party’s notice of election to proceed to assisted negotiation or mediation, each Party shall choose a single neutral party who shall sit on a three-member mediation panel. The two neutral parties so chosen shall within twenty (20) calendar days select a third neutral party to chair the mediation panel. In either case, the mediators shall be knowledgeable in electric utility matters, including electric transmission and bulk power issues, and shall not have any current or past substantial business or financial relationships with either Party to the mediation. The mediator(s) shall provide each of the Parties an opportunity to be heard. In the event the Parties are unable through either assisted negotiation or mediation to resolve the dispute within ninety (90) calendar days, each Party may exercise whatever rights and remedies it may have in equity or at law consistent with the terms of this Agreement.
(c)Costs. Each Party shall be responsible for its own costs incurred during the assisted negotiation or mediation process and for one half of the cost of the mediator(s) chosen to assist the Parties.

Section 16. No Third Party Beneficiary. Except for permitted assignees pursuant to Section 16(f), this Agreement shall not be construed to be an agreement for the benefit of any third party or parties and no third party or parties shall have any claim or right of action under this Agreement for any cause whatsoever.

Section 17. Amendments. Except as otherwise permitted herein, this Agreement may be modified only by a written amendment signed by the Authority Authorized Representative and IID Authorized Representative.

Section 18. Miscellaneous.
(a) The rights and remedies conferred upon the Parties shall be cumulative, and the exercise or waiver of any such right or remedy will not preclude or inhibit the exercise of any

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 152 of 680 7 4862-8963-6956v10/200973-0003
additional rights or remedies. The waiver of any right or remedy hereunder will not preclude the subsequent exercise of such right or remedy.
(b) This Agreement is for the exclusive benefit of the Parties and their respective successors hereunder, and will not be deemed to give, either express or implied, any legal or equitable right, remedy, or claim to any other entity or person whatsoever. (c) Each Party hereby represents and warrants (i) that this Agreement has been duly authorized, executed and delivered on its behalf and constitutes its legal, valid and binding obligation and (ii) that the execution, delivery and performance of this Agreement by the Parties hereto does not and will not violate any applicable law or regulation. (d) The headings contained in this Agreement are for convenience of reference only and will have no effect on the interpretation or operation hereof. (e) No waiver of any provision hereof will be effective unless expressed in a writing signed by the Authority Authorized Representative or the IID Authorized Representative, as applicable.
(f) No Party may assign any of its rights or obligations under this Agreement without the written consent of the other Party.
(g) This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 153 of 680 S-1
4862-8963-6956v10/200973-0003
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

IMPERIAL IRRIGATION DISTRICT
By:

General Manager

INDIO ELECTRIC FINANCING AUTHORITY
By:

Executive Director

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 154 of 680 4862-8963-6956v10/200973-0003

SCHEDULE I
Wire Instructions:

If to Authority:

ABA No.:

Bank Name:

Account No.:

Account Name:

Attention:

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 155 of 680 SYCR
Draft of 6/14/23
4877-8791-7416v3/200973-0003
______________________________________________________________________________

PROJECT AGREEMENT
by and between

IMPERIAL IRRIGATION DISTRICT
and

INDIO ELECTRIC FINANCING AUTHORITY
______ __, 2023
______________________________________________________________________________

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 156 of 680 4856-6242-2886.1
391901.00001/6-14-23
4877-8791-7416v3/200973-0003

PROJECT AGREEMENT
This Project Agreement, dated ______, 2023 for reference only, is made by and between the Imperial Irrigation District (“IID”), an irrigation district established under Division 11 of the California Water Code, sections 20500 et seq., and the Indio Electric Financing Authority (the “Authority”), a California joint exercise of powers agency. (IID and Authority are sometimes referred to herein individually as a “Party,” and collectively as the “Parties”.)

RECITALS
A. The Authority was formed, and is governed by, the Joint Exercise of Powers Agreement between the City of Indio (“Indio”) and IID, dated __________ 2023 (the “JPA”).

All capitalized terms that are used herein and not defined herein shall have the meanings that are ascribed thereto in the JPA.

B. The Authority was formed for the express purpose of providing and enhancing electrical service within the territorial boundaries of Indio through the acquisition, design, construction, financing, leasing, ownership, operation and maintenance of energy system improvements, system efficiency and reliability improvements and energy service enhancements.

C. The Authority realizes its purpose through the implementation of Projects.

D. [insert name of applicable entity] is the fee simple owner of the real property consisting of approximately ____ acres of undeveloped land located in the City of Indio, County of Riverside, State of California, APN [_____________] (the “Project Property”).] E. IID provides electric utility service to the residents of Indio through its electric power distribution system (the “IID Electric System”) and in order to better serve the residents of Indio, the Authority desires to implement an essential infrastructure electrical improvement project at the Project Property that will expand and enhance the reliability of the IID Electric System (the “Initial Project”) as further described in Exhibit “A” hereto, which is attached hereto and incorporated herein by this reference.

F. The Parties acknowledge that the design, acquisition, construction, operation, maintenance and repair of the Initial Project will further the purposes for which the Authority was formed and will benefit electrical service users in Indio.

G.The Initial Project has undergone review under the California Environmental Quality Act (“CEQA”) as summarized in Exhibit “A” and the Authority has approved the Initial Project at a duly noticed meeting on _____________, 202__.

H. The Parties desire to enter into this Agreement to memorialize their respective responsibilities and obligations in respect to the design, development, funding, construction, acquisition, procurement, ownership and use, operation and maintenance of the Projects, including the Initial Project.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 157 of 680 4856-6242-2886.1
391901.00001/6-14-23 -2-
4877-8791-7416v3/200973-0003

AGREEMENTS
NOW THEREFORE, for good and valuable consideration and in consideration of the mutual promises and covenants herein contained, the Parties agree as follows:

Section 1.Scope of the Project..
(a)Scope of Initial Project. As used herein, the “Scope of the Initial Project” shall mean the design, acquisition, procurement, construction, operation, maintenance and repair of the Initial Project as described in the Recitals and as further described in Exhibit “A” hereto. (b)Modified Projects. If the Board of Directors of IID and the Authority mutually determine that the design, acquisition and/or construction of the Initial Project is infeasible, the Parties may agree in writing to modify the Initial Project (a “Modified Project”) provided that said Modified Project has undergone CEQA review. In the event that the Parties agree to a Modified Project and the Authority approves the Modified Project at a duly noticed meeting, Exhibit “A” of this Project Agreement shall be modified to reflect such Modified Project. Such modified Exhibit “A” shall be made an attachment to this Project Agreement by amendment approved by IID and the Authority, and upon attachment, shall supersede all prior versions of Exhibit “A” without the requirement of further amendment to this Project Agreement. (c)Projects. As used herein “Projects” shall mean collectively, the Initial Project and any Modified Project described in Exhibit “A” to this Project Agreement. The term “Project” shall refer to an individual Initial Project or a Modified Project as described in Exhibit “A” of this Project Agreement.

Section 2. Term.
(a)Effective Date. This Project Agreement shall become effective upon final approval by the Board of Directors of each Party and execution by an authorized signatory by each Party.
(b)Duration. This Project Agreement shall remain in effect from the Effective Date and end upon the earlier of (1) the termination of the JPA; (2) the transfer of ownership of the Project from the Authority to IID pursuant to the terms of the JPA and this Project Agreement; and (3) the date on which IID is no longer obligated to operate, maintain and repair the Project, as provided in Section 4(c) of this Project Agreement (the “Term”).

Section 3. Authority’s Responsibilities.
(a) The Authority shall be responsible for the payment of all costs related to the design, development, procurement and construction of the Project to the Point of Interconnection as defined in Section 4(c) (the “Project Costs”). The Project Costs shall be set forth in a budget for the Project that is to be developed by IID and agreed to in writing by the Parties (the “Project Budget”). (b)The Authority shall be responsible for obtaining all government permits or approvals regarded for the Projects, exclusive of those from Indio or IID.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 158 of 680 4856-6242-2886.1
391901.00001/6-14-23 -3-
4877-8791-7416v3/200973-0003
(c)The Authority shall be responsible for ensuring IID has unfettered access and control over the Projects during the Term so that IID is able to exercise all of its rights and remedies in Section 9 below.
(d)The Authority shall be responsible for responding promptly to any inquiries or requests for information from IID related to the design, equipment acquisition, construction, operation, repair or maintenance of the Projects. (e)The Authority shall be responsible for ensuring that the Project complies in all respects with any and all Bond or indenture covenants or agreements related to the financing of the Project.

Section 4. IID’s Responsibilities.
(a)IID shall be responsible for the design, procurement and construction of the Projects. IID may, in its sole discretion, enter into contracts with third-parties for the design, acquisition and/or construction of all or part of the Projects. IID shall cause the design, procurement and/or construction of the Projects to comply with all applicable federal, State and local laws, ordinances, rules, regulations, orders and policies relating to the Projects (“Applicable Laws”).
(b) IID shall be responsible for all work related to interconnecting the Project to the IID Electric System (the “Interconnection”).
(c)Once a Project is interconnected to the IID Electric System and energized, IID shall be responsible for the operation, maintenance and repair of such Project to the Point of Interconnection as provided in Section 9 below. For purposes of this Project Agreement, the “Point of Interconnection” shall mean the point, as set forth in the one-line drawing in Exhibit “B”, that demonstrates where the Project facilities connect to the IID System. The one-line drawing shall also provide a point of demarcation for purposes of identifying ownership of the Project facilities. The costs of operating, maintaining and repairing the Project shall be paid from amounts collected by IID through the rates and charges that IID charges for electrical service provided by IID and the Authority shall not be responsible to pay any such costs of the operation, maintenance and repair of the Project. IID’s obligation to operate, maintain and repair the Project will terminate if IID no longer provides electrical service within the boundaries of Indio. (d) IID shall be responsible for responding promptly to any reasonable inquiries or requests for information from the Authority related to the Projects, but only to the extent the information requested is not confidential and/or proprietary under the California Public Records Act codified in Government Code sections 7920.000, et seq.
(e)IID shall not take any actions with respect to the design, procurement, construction, operation, maintenance and/or repair of the Project that would violate any tax covenants set forth in any Bond, indenture or other financing document of the Authority relating to the financing of the Project or would otherwise cause interest on Bonds issued on a tax-exempt basis to be includable in gross income for federal income tax purposes.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 159 of 680 4856-6242-2886.1
391901.00001/6-14-23 -4-
4877-8791-7416v3/200973-0003
Section 5. Funding of Project Costs
(a)Project Costs will be paid with the proceeds of Bonds, the proceeds of the Surcharge and any other lawfully available source of funds of the Authority. (b) It is the intent of the Parties that the actual total Project Costs will not exceed the total amount shown in the Project Budget. Notwithstanding this shared intent, should either Party identify or become aware of any actual or potential cost overruns, the Parties shall endeavor, working together reasonably and in good faith, to avoid the cost overrun and to otherwise reduce the extent to which the increase in total Project Costs is in excess of the Project Budget. As of Effective Date, the Parties acknowledge that the Authority has no additional sources of funds for the Project Costs other than as specified in Section 5(a) of this Project Agreement and IID shall endeavor at all times to manage the costs and expenses of the Projects within the total amount of the Project Budget. (c)No Party will voluntarily cause or permit any increase in costs or expenses for the design, acquisition and/or construction of the Projects that will cause the estimated Project Costs to exceed the total amount of Project Costs set forth in the Project Budget without the written consent of the Authority.
(d)The Project Budget may be modified with the written approval of the Parties.

Section 6. Ownership of Improvements and IID Electric System. (a)Fee Title to Improvements. Fee title to the Project and its improvements as identified in Exhibit “A” shall be vested in the Authority during the Term. The Project shall have appropriate signage identifying the substation as an Authority substation to the extent allowed by Applicable Law.
(b)Transfer of Project Improvements. Upon termination of the JPA, and after the payment of all liabilities, costs, expenses and charges validly incurred under the JPA and payable by the Authority and assuming IID is still providing electrical service to Indio, the Authority shall transfer fee title to the Project and improvements to IID pursuant to and in accordance with the terms of the JPA in their “AS IS” and “WHERE IS” condition under a quitclaim deed substantially in the form of Exhibit “C.”
Section 7. Grant of Leasehold Interests and Permitted Use. (a)Indio Property. [________________ insert Indio or the Indio Water Authority, as applicable], as landlord, will lease to the Authority, as tenant, portions of [___________________insert property name] (the “Project Premises”) as required for the construction, use, maintenance, repair and operation of the [________________insert Project name] under the terms and condition in a ground lease substantially in form of Exhibit “D” (the “Ground Lease”).
[User Note: if IID Property is Project Premises, use following Subsection (a)]

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 160 of 680 4856-6242-2886.1
391901.00001/6-14-23 -5-
4877-8791-7416v3/200973-0003
(a)IID Property. IID, as landlord, will lease to the Authority, as tenant, a portion of [________________________ insert property name] as required for the construction, use, maintenance, repair and operation of [___________________insert property name] under the terms and conditions in a ground Lease substantially in form of Exhibit “D” (the “Ground Lease”).
(b)Modified Project. In the event that IID and the Authority determine to design, acquire, construct, operate, maintain and repair a Modified Project pursuant to this Project Agreement, the Authority and/or IID will enter into the necessary and appropriate lease documentation to allow for the delivery of such Modified Project.

Section 8. Project Completion Schedule.
(a)IID and the Authority shall coordinate to develop a completion schedule for the Projects (the “Project Completion Schedule”). The Project Completion Schedule will include major design and construction activities, durations and milestones through the completion of the Projects or the components thereof. The Parties agree that the Project Completion Schedule shall be developed by the Parties to comply with any requirements regarding the expenditure of Bond proceeds set forth under federal income tax law or under any Bond, indenture or other financing document of the Authority relating to the financing of the Project.

The Project Completion Schedule shall be agreed to in writing by the Parties. (b)The Project Completion Schedule may be modified with the written approval of both the Parties.

Section 9. Project Operational Provisions and IID Remedies. (a)IID Operation and Maintenance of Project. The Authority shall delegate to IID operational, repair and maintenance control of the Project to the Point of Interconnection.

IID shall maintain the Project in good condition and repair and in a manner sufficient to support the Project. Regardless of whether maintenance and repairs are made in the ordinary course or in an emergency, all maintenance and repairs shall be carried out in a manner that minimizes the impact on the Project. IID shall promptly notify the Authority of any matters of which it is aware pertaining to any damage to or loss of use of the Project or that could reasonably be expected to adversely affect the Project.
(b)IID Protection of IID Electric System; Remedies. Notwithstanding anything to the contrary contained herein, at all times during the term of this Project Agreement, IID shall have unilateral and unfettered access and control over the Project and the operation of the Project as IID deems necessary or appropriate to ensure the overall integrity, safety, efficiency and reliability of the IID Electric System and to respond as necessary to any emergency conditions. In exercising the rights in this Section 9(b), IID shall have the same access and control to the Project as IID would have to the Project if the Project were solely funded and owned by IID. IID’s unilateral, unfettered access and control over the Project includes the ability to make all decisions regarding the design, procurement, construction, operation, maintenance, and repair of the Projects without consulting or seeking the approval of the Authority. IID shall have the right in its sole and absolute discretion and without notice to the Authority to do, among other things, the following: (1) alter, modify, or repair the Project when necessary to prevent imminent risk of damage to the IID Electric System or

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 161 of 680 4856-6242-2886.1
391901.00001/6-14-23 -6-
4877-8791-7416v3/200973-0003
interruption of electrical service and (2) disconnect the Interconnection at the Point of Interconnection when necessary due to (A) public emergency, (B) protect the operational integrity of the IID Electric System or (C) comply with Applicable Laws (each a “Disconnection Event,” together the “Disconnection Events”). IID shall promptly restore the Interconnection to the Point of Interconnection upon the passage of the Disconnection Event.

Section 10. Insurance Requirements.
(a)IID Insurance Requirements. Throughout the Term, IID shall maintain the insurance coverage set forth below.
(1)Comprehensive or Commercial Form General Liability Insurance (contractual liability included) as follows:
(A)Each Occurrence: $2,000,000
(B)Products/Completed Operations Aggregate: $4,000,000 (C)Personal and Advertising Injury: $2,000,000
(D)General Aggregate: $4,000,000
(2)Comprehensive Automobile Liability Insurance covering owned, non-owned, and hired vehicles. The limits of liability shall not be less than a combined single limit of $2,000,000 per occurrence.
(3)Excess Liability, umbrella insurance form, applying excess of primary to the commercial general liability, commercial automobile liability and employer’s liability insurance shall be provided with minimum limits of $5,000,000 per occurrence, $5,000,000 general aggregate, and $5,000,000 products/completed operations. (4)Statutorily required Workers’ Compensation Insurance. (5)Insurance required under 9(c)(1), 9(c)(2) and 9(c)(3) shall be issued by companies that are California admitted insurance companies with a Best rating of A- or better and a financial classification of VIII or better (or an equivalent rating by Standard & Poor’s or Moody’s), or as otherwise reasonably acceptable to the Authority. IID may also meet its insurance obligation under a self-insurance program reasonably acceptable to the Authority.

Insurance required under 9(c)(1), 9(c)(2), and 9(c)(3) shall be endorsed to include the Authority, its governing body, members, officers, agents, as additional insureds and waive rights of subrogation.
(b)Authority Insurance Requirements. Throughout the Term and with respect to the Indio Properties, the Authority shall maintain Physical Property Damage Insurance covering all real and personal property located on or in, or constituting a part of, the Indio Properties (including but not limited to the Infrastructure Electrical Improvements) in an amount equal to at least one hundred percent (100%) of replacement value of all such property. Such insurance shall afford coverage for damages resulting from (i) fire, (ii) perils covered by extended

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 162 of 680 4856-6242-2886.1
391901.00001/6-14-23 -7-
4877-8791-7416v3/200973-0003
coverage insurance as embraced in the Standard Bureau form used in the State of California, (iii) explosion of steam and pressure boilers and similar apparatus located in the Infrastructure Electrical Improvements, and (iv) flood damage if an Indio Property is located within a flood plain.

Section 11. Indemnity.
(a)IID shall indemnify, defend and hold harmless the Authority and each of IID’s and the Authority’s officers, directors, employees, board members, attorneys and agents from and against any and all demands, claims or lawsuits (collectively, “Claims”) arising out of the design, construction, operation, maintenance or repair of the Project, or the delivery of electricity into or out of the Project. IID shall fulfill its defense obligations with counsel of its or its insurance carrier’s choice, subject to the Authority’s approval, which approval shall not be unreasonably withheld. Notwithstanding the above, IID shall have no duty to indemnify, defend and hold harmless the Authority to the extent a Claim arises out of the Authority’s or an Authority indemnified party’s gross negligence or intentional act. (b)The Authority shall indemnify, defend and hold harmless IID and each of IID’s officers, directors, employees, board members, attorneys and agents from and against any and all Claims arising out of CEQA challenges to a Project, challenges to the issuance of any Bonds or the collection and expenditure of the Surcharge, or the Authority’s breach of any of its obligations under this Project Agreement, including but not limited to its obligation to pay Project Costs and to ensure IID’s access to the Projects set forth in Section 9 of this Project Agreement.

The Authority shall fulfill its defense obligations with counsel of its or its insurance carrier’s choice, subject to IID’s approval, which approval shall not be unreasonably withheld.

Notwithstanding the above, the Authority shall have no duty to indemnify, defend and hold harmless IID to the extent a Claim arises out of IID’s or an IID indemnified party’s gross negligence or intentional act.

Section 12. Payments.
(a)The Authority shall pay the Project Costs through advance payments to IID in the amounts and at the milestone dates set forth in Exhibit “E” hereto (the “Disbursement Schedule and Milestone Dates”). [To be further discussed and flushed out, including return of unspent monies to the Authority.]
Section 13. Dispute Resolution.
(a)In the event either Party has a dispute, or asserts a claim, that arises out of or in connection with this Project Agreement, or their performance thereunder, such Party (the “Disputing Party”) shall provide the other Party with written notice of the dispute or claim (“Notice of Dispute”). The Notice of Dispute shall: (a) describe what is disputed or claimed and include an identification of the alleged facts and Project Agreement sections relevant to such dispute or claim; and (b) provide the name and contact information for the designated senior representative of the disputing Party who will represent it in informal negotiations. (b)Such dispute or claim shall be referred to a designated senior representative of each Party for resolution on an informal basis as promptly as practicable after

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 163 of 680 4856-6242-2886.1
391901.00001/6-14-23 -8-
4877-8791-7416v3/200973-0003
receipt of the Notice of Dispute by the other Party. In the event the designated representatives are unable to resolve the claim or dispute within thirty (30) calendar days of the other Party’s receipt of the Notice of Dispute, the Disputing Party shall, within thirty-five (35) calendar days of the other Party’s receipt of the Notice of Dispute, notify the other Party whether it either: (a) is no longer pursuing its dispute; or (b) elects to proceed to assisted negotiation or mediation. If the Disputing Party elects to proceed to assisted negotiation or mediation, the disputing Party shall include in its notice the names and contact information for at least three (3) possible neutral mediators meeting the qualifications described in Section 13(c) below, which would be acceptable to the disputing Party. Within five (5) Business Days of receipt of the disputing Party’s election to proceed to assisted negotiation or mediation, the other Party shall, in turn, notify the Disputing Party of the names and contact information for at least three possible neutral mediators, meeting the qualifications described in Section 13(c) below, which would be acceptable to the other Party. (c)Any assisted negotiation or mediation initiated under these procedures shall be conducted before a single neutral mediator appointed by the Parties. If the Parties fail to agree upon a single mediator within fifteen (15) calendar days of the disputing Party’s notice of election to proceed to assisted negotiation or mediation, each Party shall choose a single neutral party who shall sit on a three-member mediation panel. The two neutral parties so chosen shall within twenty (20) calendar days select a third neutral party to chair the mediation panel. In either case, the mediators shall be knowledgeable in electric utility matters, including electric transmission and bulk power issues, and shall not have any current or past substantial business or financial relationships with either Party to the mediation. The mediator(s) shall provide each of the Parties an opportunity to be heard. In the event the Parties are unable through either assisted negotiation or mediation to resolve the dispute within ninety (90) calendar days, each Party may exercise whatever rights and remedies it may have in equity or at law consistent with the terms of this Project Agreement.
(d)Each Party shall be responsible for its own attorneys’ fees and costs incurred during the assisted negotiation or mediation process and for one half of the cost of the mediator(s) chosen to assist the Parties.

Section 14.Miscellaneous.
(a)Choice of Law; Venue. This Project Agreement will be governed by the laws of the State of California. All actions or proceedings arising in connection with this Project Agreement shall be tried and litigated exclusively in State court located in the County of San Diego, State of California. The aforementioned choice of venue is mandatory, thereby precluding the possibility of litigation between the Parties with respect to or arising out of this Project Agreement in any jurisdiction other than that specified in this paragraph. The Parties hereby stipulate that the U.S. state court located in the County of San Diego, State of California, shall have in personam jurisdiction and venue over each of them for the purpose of litigating any dispute or proceeding arising out of or related to this Project Agreement. Each party hereby authorizes service of process sufficient for personal jurisdiction in any action against it at the address and in the manner for the giving of notice as set forth in this Project Agreement. (b)Attorneys’ Fees and Costs. Should either party hereto institute any action or proceeding in court against the other party, by reason of or alleging the failure of the other party to

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 164 of 680 4856-6242-2886.1
391901.00001/6-14-23 -9-
4877-8791-7416v3/200973-0003
comply with any or all of its obligations hereunder, whether for declaratory or other relief, then the party which prevails in such action or proceeding shall be entitled, in addition to any other recovery or relief, to its reasonable attorneys’ fees and expenses related thereto (whether at the administrative, trial or appellate levels) (“Legal Costs”).
(c)Time of Essence. Time is of the essence with respect to each and every provision of this Agreement.
(d)Exhibits. The Exhibits attached hereto are hereby incorporated herein by this reference for all purposes.
(e)Prohibition on Assignment. Neither Party may assign any right, matter or thing, referenced by this Project Agreement, in whole or in part, without the prior written consent of the other party and any attempt to so assign or transfer which is not in accordance herewith shall be null and void and of no force or effect.
(f)Successor and Assigns: This Project Agreement shall be binding on both Parties and their successors and permitted assigns.
(g)Severability. If any provision of this Project Agreement shall be held void, voidable, invalid or inoperative, no other provision of this Project Agreement shall be affected as a result thereof, and accordingly, the remaining provisions of this Agreement shall remain in full force and effect as though such void, voidable, invalid or inoperative provisions had not been contained herein.
(h)Representation. Both parties acknowledge and agree that each was represented by legal counsel during the negotiation and execution of this Project Agreement.

Section 15. Authorized Representatives and Notices
(a)Representatives. Prior to commencement of the work under the Project Agreement, IID and Authority shall each designate a representative authorized to act on behalf of each Party and shall advise the other Party in writing of the name, address and telephone number of such designated representative and shall inform the other Party of any subsequent change in such designation.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 165 of 680 4856-6242-2886.1
391901.00001/6-14-23 -10-
4877-8791-7416v3/200973-0003
(b)Notices and Communications.
(1)Day-to-Day Notice and Communications – All communications relating to the day-to-day activities under this Project Agreement shall be exchanged between the following representatives of IID and the Authority:

TO: IID
General Manager
Imperial Irrigation District
Post Office Box 937
333 East Barioni Boulevard
Imperial, CA 92251
Telephone: (760) 339-9550
Facsimile: (760) 339-9063
TO: AUTHORITY
Executive Director
Indio Electric Authority
Telephone: (760) 344-6434
Facsimile: (760) 344-8419
(2)Legal Notices and Communications. All legal notices and communications required under or related to this Project Agreement shall be in writing, and shall be delivered personally or mailed by certified mail, postage prepaid, return receipt requested, to the representatives of IID and Authority identified below. Notice shall be effective on the date of delivery.

TO: IID
General Manager
Imperial Irrigation District
Post Office Box 937
333 East Barioni Boulevard
Imperial, CA 92251
Telephone: (760) 339-9477
Facsimile: (760) 339-9392
TO: AUTHORITY
Executive Director
Indio Electric Authority
100 Civic Center Drive
Indio, California 92201
Telephone:

Facsimile:
(c)Either Party may change or supplement the information exchanged concerning authorized representatives and notices by giving the other Party written notice of the new information in the manner set forth above.

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 166 of 680 4856-6242-2886.1
391901.00001/6-14-23 -11-
4877-8791-7416v3/200973-0003
IID

IMPERIAL IRRIGATION DISTRICT
By: __________________________
President, Board of Directors
Date: ___________________

AUTHORITY

INDIO ELECTRIC AUTHORITY
By: __________________________
Executive Director
Date: ___________________

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 167 of 680 4856-6242-2886.1
391901.00001/6-14-23
4877-8791-7416v3/200973-0003

EXHIBIT A

PROJECT DESCRIPTION
[To Be Inserted]
PROJECT NAME:
[Insert]
PROJECT LOCATION:
[Insert]
PROJECT DESCRIPTION:
[Insert]
PROJECT CEQA REVIEW:
[Insert]

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 168 of 680 4856-6242-2886.1
391901.00001/6-14-23
4877-8791-7416v3/200973-0003

EXHIBIT B

POINT OF INTERCONNECTION
[To Be Inserted]

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 169 of 680 4856-6242-2886.1
391901.00001/6-14-23
4877-8791-7416v3/200973-0003

EXHIBIT C

FORM OF QUITCLAM DEEDS
[To Be Inserted]

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 170 of 680 4856-6242-2886.1
391901.00001/6-14-23
4877-8791-7416v3/200973-0003

EXHIBIT D

FORM OF GROUND LEASE
[To Be Inserted]

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 171 of 680 4856-6242-2886.1
391901.00001/6-14-23
4877-8791-7416v3/200973-0003

EXHIBIT E

DISBURSEMENT SCHEDULE AND MILESTONE DATES
[To Be Inserted]

AGENDA ITEM #9.2
Resolution No. 10361 approving the formation of the Indio Electric Finan... Page 172 of 680 City of Indio
City Council
June 21, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Mike Washburn, Chief of Police
Subject: Ordinance 1794, An Ordinance of the City Council of the City of Indio adding Chapter 73 to Title VII of the Indio Municipal Code prohibiting spectators at illegal motor vehicle speed contests, exhibitions of speed, and sideshows.

RECOMMENDATION:

Waive full reading of Ordinance 1794, An Ordinance of the City Council of the City o f Indio adding Chapter 73 to Title VII of the Indio Municipal Code prohibiting spectators at illegal motor vehicle speed contests, exhibitions of speed, and sideshows, introduce the ordinance by title only, and request the City Clerk to read the title.

SUMMARY:

Title VII, Chapter 73 is in response to a growing statewide trend of vehicle speed contests and sideshows, which pose a significant health and safety risk to Indio residents. The State already prohibits these activities as California Vehicle Code ("CVC") Section 23109 prohibits motor vehicle speed contests and exhibitions of speed conducted on public streets and highways. However, CVC Section 23109 does not specifically address spectating and the preparation of sideshows and other contests. The Chapter is intended to provide a mechanism to reduce the prevalence of such activities in our community by prohibiting the spectating and preparation of those exhibitions in addition to CVC Section 23109.

BACKGROUND INFORMATION:

Sideshows refer to events in which participants engage in reckless driving, vehicle stunts, and other illegal activities on public roads, endangering public safety and causing significant disturbances in the community. Sideshows and other vehicle contests pose a risk to the quality of life of Indio residents by creating a public nuisance in the neighborhoods and other public roadways. These events have been known to attract large crowds of spectators, exacerbating the risks and impact to the community.

Given the increasing frequency throughout California and the severity of sideshow -related incidents, Chapter 73 aims to establish definitions and penalties to deter and address such activities by addressing the act of spectating and the preparation of sideshows.

In addition to the significant public nuisance and safety concerns caused by these exhibitions, these events also have the potential to impede traffic flow and cause damage to roadways and other property such as sidewalks, light poles, and other public infrastructure. Additionally, the road closures caused by sideshows can lead to a notable delay in public safety services such as police, fire, and ambulance services.

AGENDA ITEM #9.3
Ordinance 1794 , An Ordinance of the City Council of the City of Indio a... Page 173 of 680 The proposed ordinance will allow for more comprehensive enforcement of illegal speed contests, exhibitions of speed, and sideshows by addressing spectators and those causing the closures and other activities in preparation for a sideshow. Violation of the proposed ordinance is considered a misdemeanor offense and carries a maximum penalty of six months in jail and an administrative fine of $1,000 for each violation.

ATTACHMENTS:

Attachment 1: Ordinance No. 1794 - Prohibition of Speed Contest Spectators

APPROVAL(S):

Mike Washburn, Chief of Police Approved - 12 Jun 2023
Steven Graham, City Attorney Approved - 15 Jun 2023
Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 15 Jun 2023 Bryan H. Montgomery, City Manager Approved - 15 Jun 2023

AGENDA ITEM #9.3
Ordinance 1794 , An Ordinance of the City Council of the City of Indio a... Page 174 of 680 1 ORDINANCE NO. 1794

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF INDIO
ADDING CHAPTER 73 TO TITLE VII OF THE INDIO MUNICIPAL CODE

PROHIBITING SPECTATORS AT ILLEGAL MOTOR VEHICLE SPEED

CONTESTS, EXHIBITIONS OF SPEED, AND SIDESHOWS
WHEREAS, pursuant to the City’s police power under Article XI Section 7 of the California Constitution, the City Council of the City of Indio has the authority to enact and enforce ordinances and regulations for the public peace, morals, and welfare of the City and its residents; and
WHEREAS, the City Council of the City of Indio finds and declares that pursuant to California Vehicle Code Section 23109, motor vehicle speed contests and exhibitions of speed conducted on public streets and highways are illegal. Streets, highways and street intersections within the City of Indio have been the site of illegal motor vehicle speed contests, exhibitions of speed and sideshows. Such illegal motor vehicle speed contests, exhibitions of speed and sideshows threaten the health and safety of the public, interfere with pedestrian and vehicular traffic, create a public nuisance, and interfere with the right of private business owners to enjoy the use of their property within the City of Indio; and
WHEREAS, these illegal motor vehicle speed contests, exhibitions of speed and sideshows create a dangerous environment, posing the risk of serious injury or death for pedestrians, spectators, bicyclists and other motorists on local streets and highways in the City; and
WHEREAS, these illegal motor vehicle speed contests, exhibitions of speed and sideshows can cause considerable traffic congestion and damage to the streets, intersections, and property within the City; consequently, the expenditure of public funds is necessary to repair the damaged City streets, intersections and property; and WHEREAS, these illegal motor vehicle speed contests, exhibitions of speed and sideshows are planned and coordinated by participants and spectators through the use of the internet, cell phones, police scanners and other electronic devices that allows them to move in their vehicles spontaneously from one (1) location to another to avoid detection and prosecution by local law enforcement agencies; and
WHEREAS, these illegal motor vehicle speed contests, exhibitions of speed and sideshows create an environment of dangerous driving behavior for the entertainment of participants and spectators, including, “spinning donuts”, where vehicles are spun in circles; “peeling out”, and reckless driving when fleeing law enforcement; and WHEREAS, that the mere presence of spectators at illegal speed contests, exhibitions of speed, and sideshows serves to fuel the occurrence of illegal vehicle speed contests and exhibitions of speed and, thereby, creates an encouraging environment for these illegal activities as well as other illegal activities that place the safety and welfare of the public at risk; and

AGENDA ITEM #9.3
Ordinance 1794 , An Ordinance of the City Council of the City of Indio a... Page 175 of 680 2 WHEREAS, that by discouraging spectators at illegal speed contests, exhibitions of speed, and sideshows, the act of organizing and participating in these illegal activities will be discouraged; and
WHEREAS, the City Council of the City of Indio finds it is necessary and appropriate to take steps to protect public health and safety. Chapter 73 is adopted to prohibit spectators at illegal speed contests, exhibitions of speed, and sideshows so as to minimize the dangerous conditions caused by illegal motor vehicle speed contests and exhibitions of speed.

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

Section 1. Chapter 73.00 of Title VII of the Indio Municipal Code is hereby added as follows:

73.00 PROHIBITION OF SPECTATORS AT ILLEGAL MOTOR VEHICLE SPEED CONTESTS AND EXHIBITIONS OF SPEED.

73.01 PURPOSE AND INTENT.

73.02 DEFINITIONS.

73.03 VIOLATIONS.

73.04 RELEVANT CIRCUMSTANCES TO PROVE A VIOLATION.

73.05 ADMISSIBILITY OF PRIOR ACTS.

73.06 ENFORCEMENT.

73.01 PURPOSE AND INTENT.

The declared purpose of this chapter is to provide rules and regulations regarding the use of public property, for the protection of the public health, safety and welfare of residents of the City and users of public property, and to ensure public property is maintained in a manner consistent with the broadest use by residents of the City.

This chapter is not intended to preempt state law governing the regulation of speed contests or exhibitions of speed but rather compliment such laws by prohibiting spectators at illegal motor vehicle speed contests, exhibitions of speed and sideshows.

73.02 DEFINITIONS.

The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a

AGENDA ITEM #9.3
Ordinance 1794 , An Ordinance of the City Council of the City of Indio a... Page 176 of 680 3 different meaning:
(A) “CITY” shall mean the City of Indio.
(B) “PERSON” shall mean and include any natural person, corporation, company, firm, association, organization, co-partnership, joint venture, trust, business trust, syndicate, estate, receiver, society, club, fraternal organization, any group or combination acting as a unit, and any officer, agent, employee, or servant of any of the foregoing.
(C) “ILLEGAL MOTOR VEHICLE SPEED CONTEST(S)” or “illegal exhibition of speed(s)” shall mean any speed contest or exhibition of speed referred to in Vehicle Code Section 23109 and reckless driving as referred to in Vehicle Code Section 23103, subdivisions (a) and (b).
(D) “MOTOR VEHICLE” shall mean a vehicle as defined in Vehicle Code Section 670.
(E) “SIDESHOW” shall mean a gathering, procession, or assemblage of vehicles where vehicles are used to exhibit stunts and maneuvers in the presence of spectators.
(F) “SPECTATOR” shall mean any individual who is present at an illegal motor vehicle speed contest, exhibition of speed, sideshow, or at a location where preparations are being made for such activities, for the purpose of viewing, observing, watching, or witnessing the event as it progresses. The term “spectator” includes any individual at the location of the event without regard to whether the individual arrived at the event by driving a vehicle, riding as a passenger in a vehicle, walking, or arriving by some other means. (G) “PREPARATIONS” shall mean those preparations for the illegal motor vehicle speed contest, exhibition of speed, or sideshow, including, but not limited to, situations in which:
(1) A group of vehicles or individuals has arrived at a location for the purpose of participating in, or being spectators at the event; or (2) A group of individuals has lined one or both sides of a public street or highway for the purpose of participating in or being a spectator at the events; or
(3) A group of individuals has gathered on private property open to the general public without the consent of the owner, operator, or agent thereof for the purpose of participating in or being a spectator at the event; or (4) One or more individuals has impeded the free public use of a public street

AGENDA ITEM #9.3
Ordinance 1794 , An Ordinance of the City Council of the City of Indio a... Page 177 of 680 4 or highway by actions, words, or physical barriers for the purpose of conducting the event; or
(5) Two or more vehicles have lined up with motors running for an illegal motor vehicle speed contest or exhibition of speed; or
(6) One or more drivers is revving his or her engine or spinning his or her tires in preparation for the event; or
(7) An individual is stationed at or near one or more motor vehicles serving as a race starter.
(H) “SCENE” refers to the location of the street race, exhibition of speed, sideshow or the location of the preparations for the street race, exhibition of speed or sideshow.

73.03 VIOLATIONS.
(A) It is unlawful for any person to:
(1) Be knowingly present as a spectator at an illegal motor vehicle speed contest, exhibition of speed, or sideshow; or
(2) Be knowingly present as a spectator where preparations are being made for an illegal motor vehicle speed contest, exhibition of speed, or sideshow.
(B) An individual is present at an illegal motor vehicle speed contest, exhibition of speed, or sideshow if that individual is on a public street or highway, public property, or on private property without the consent of the owner, operator, or agent thereof, and is within two hundred feet of the location of the event or within two hundred feet of the location where preparations are being made for the event.
(C) Exemption. Nothing in this Section prohibits law enforcement officers, medical professionals, emergency medical services employees, first responders, firefighters, or their agents from being present at illegal motor vehicle speed contests, exhibitions of speed, or sideshows in the course of their official duties.

73.04 RELEVANT CIRCUMSTANCES TO PROVE A VIOLATION.
(A) Notwithstanding any other provision of law, to prove a violation of Section 73.03, admissible evidence may include, but is not limited to, any of the following:
(1) The time of day;
(2) The nature and description of the scene;

AGENDA ITEM #9.3
Ordinance 1794 , An Ordinance of the City Council of the City of Indio a... Page 178 of 680 5 (3) The number of people at the scene;
(4) The location of the individual charged in relation to any individual or group present at the scene;
(5) The number and description of motor vehicles at the scene; (6) The activities in which the motor vehicles are engaged; or (7) Whether the person charged drove, walked, or was transported to the scene; or
(8) How long the person charged was present at the scene of the event; or (9) Whether the person charged has previously participated in an illegal motor vehicle speed contest, exhibition of speed, or sideshow; or (10) Whether the person charged has previously aided and abetted an illegal motor vehicle speed contest, exhibition of speed, or sideshow; or (11) Whether the person charged has previously attended an illegal motor vehicle speed contest, exhibition of speed, or sideshow; or (12) Whether the person charged previously was present at a location where preparations were being made for an illegal motor vehicle speed contest, exhibition of speed, or sideshow or where an illegal motor vehicle speed contest, exhibition of speed, or sideshow was in progress.

73.05 ADMISSIBILITY OF PRIOR ACTS.
(A) The list of circumstances set forth in Section 73.04 is not exclusive. Evidence of prior acts may be admissible to show the propensity of the person charged to be present at or attend an illegal motor vehicle speed contest or exhibition of speed, if the prior act or acts occurred within three years of the presently charged offense. These prior acts may always be admissible to show knowledge on the part of the person charged that a speed contest or exhibition of speed was taking place at the time of the presently charged offense. Prior acts are not limited to those that occurred within the City of Indio.

73.06 ENFORCEMENT.
(A) Any person who violates this chapter is guilty of a misdemeanor subject to a maximum of six months in jail and a fine of $1,000, unless at the discretion of the district attorney, the violation is reduced to an infraction. The city may seek compliance with this chapter by any remedy allowed under this code and any other remedy allowed

AGENDA ITEM #9.3
Ordinance 1794 , An Ordinance of the City Council of the City of Indio a... Page 179 of 680 6 by law. The amount of the administrative fine is $1,000 for each violation. / / /
Section 2. CEQA FINDING.

The City Council determines that the provisions of this ordinance are exempt from the California Environmental Quality Act (“CEQA”) because the instant ordinance involves continuing administrative activities and thus is not a project, as CEQA defines, pursuant to Section 15378(b)(2) of the CEQA Guidelines. To the extent the adoption of this Ordinance constitutes a project, the City Council finds pursuant to CEQA Guideline Section 15061(b)(3) that the project is exempt from environmental review because it can be seen with certainty that the adoption of the ordinance would not have any significant impact on the environment.

Section 3. SEVERABILITY.

If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of a court of competent jurisdiction, the holding shall not affect the validity or enforceability of the remaining provisions, and the City Council declares that it would have adopted each provision of this ordinance irrespective of the validity of any other provision.

Section 4. EFFECTIVE DATE.

This Ordinance shall become effective thirty (30) days after adoption.

Section 5. PUBLICATION.

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

PASSED, APPROVED AND ADOPTED this 21st day of June, 2023.

OSCAR ORTIZ
MAYOR
ATTEST:

AGENDA ITEM #9.3
Ordinance 1794 , An Ordinance of the City Council of the City of Indio a... Page 180 of 680 7 SABDI SANCHEZ, CMC

CITY CLERK ADMINISTRATOR

AGENDA ITEM #9.3
Ordinance 1794 , An Ordinance of the City Council of the City of Indio a... Page 181 of 680 City of Indio
City Council
June 21, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Reymundo Trejo, P.E., IWA General Manager
Subject: City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Resolution No. 2023 -80, adopting the Fiscal Year 2023 -24 Operating and Capital Improvement Budget and Program and Supplemental Water Supply Program

RECOMMENDATION:

That the City Council/IWA Board 1) conduct a public hearing to approve the FY 2023 -24 Capital Improvement and Supplemental Water Supply Programs (“CIP”) by Joint Resolution No. 10364, and adopt IWA’s Recommended Operating and Capital Improvement Budget for FY 2023 -24 by Resolution No. 2023-80.

SUMMARY:

At the May 17, 2023 budget study session meeting, IWA staff presented the recommended budget for FY 2023-24. The City Council/IWA Board did not request any changes to the recommended budget as presented. As such, the same budget is being recommended for ad option. IWA has also shared the FY 2023-24 Capital Improvement Program project list with the Planning Commission.

The recommended budget includes operating expenditures, refurbishment and replacement items, and capital projects for City Council/IWA Boar d review and consideration. The FY 2023 -24 budget reflects the wide range of programs necessary to accomplish IWA’s operating strategic goals for FY 2023-24. Highlights of the Recommended Budget include:

• Total operating expenditures of $29,095,607, whi ch is a 13.6 percent increase from the prior fiscal year Adopted Budget.

• Total operating revenue of $24,909,189, which is a 1.7 percent increase from the prior fiscal year Adopted Budget.

• Unallocated fund balance of $4,186,418 will be used as a one -time funding source to balance the operating revenue budget with the operating expenditure budget.

• Total proposed capital expenditures of $4,590,000 make up the capital improvement budget.

• The total recommended expenditure budget across all funds is $33,685,607.

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 182 of 680 BACKGROUND INFORMATION:

Staff prepared a FY 2023-24 budget with the goal to provide customers with safe and affordable water while ensuring reliable water delivery. The budget was prepared having taken into consideration factors such as improved hydrological conditions in the past year, anticipating a final determination of a Maximum Contaminant Level (MCL) for Chromium 6 (Cr6) from the California State Water Resources Control Board (SWRCB), and one-time critical equipment investments.

California’s Cr6 MCL limit could be re-established by the SWRCB during next fiscal year. Depending on the final MCL limit adopted by California, there could be a sizable amount of infrastructure investment needed to meet the requirements of the MCL. Once t he official MCL is adopted, IWA will have a two-year compliance period. This budget addresses the preliminary planning phase of meeting the required Cr6 MCL limit. Staff has also been looking at various funding opportunities, including grants and loans to support Cr6 project efforts. One potential funding source is the Drinking Water State Revolving Fund (DWSRF). The DWSRF is made of multiple funding sources, some of which are earmarked to support disadvantaged communities.

The Operating Revenue Budget for FY 2023-24 is recommended at $24.9 million. There are no water rate increases included in the FY 2023-24 budget. Water utility account growth is projected to be about 2 percent overall. The revenue growth will come from new water accounts. The water re plenishment fee that is collect by the IWA and passed -through to the Coachella Valley Water District (CVWD) is projected to remain the same. Water meter and service fees is projected to increase by about 5 percent. Grant funding is decreasing from the pr ior year. We are expecting approval of a $900,000 conservation grant to be approved during the fiscal year to be added to the budget. To be conservative, we only budget grant funding when notification is confirmed the grant is officially approved. The revenue budget is balanced with the expenditure budget.

IWA prepares a multi-year Capital Improvement Program (CIP) to support water system growth and changing State water standards. The CIP budget spans five years and provides expected capital expenditures based on projections from the Long-Range Financial Plan, and the Water Master Plan.

The CIP budget is comprised of 16 projects, totaling $4,590,000 in FY 2023-24. Thirteen projects are funded with operating revenue (Fund 812 – Water Capital Program Fund) and include improvement projects for production plants, wells and pipelines, and technology platforms. Additionally, the Supplemental Water Supply Fund (SWSF) is budgeted to provide counterpart funding for the East Valley Reclamation Authority (EVRA) to complete the recycled water master plan with Valley Sanitary District; this funding source is restricted to the development of new water supplies. The Water Development Impact Fees Account is budgeted at $250,000 to provide funding for new IWA well drilling and equipping; this funding source is restricted to water facilities associated with new developments. Staff recommends the approval of a Joint Resolution No. 2023 -80 to adopt IWA’s FY 2023-2024 Capital Improvement and Supplemental Water Supply Programs in accordance with Government Code Section 66002.

Reserves:

IWA currently maintains two (2) designated reserves with varied funding levels as established by the Reserve Policy approved by the City Council/IWA Board on September 19, 2020. The reserves ensure that IWA has sufficient funds for cash flow purposes, flex ibility to adapt to change, ensure continued operational solvency, and preserve adequate levels of service in the event of an emergency.

Conclusion:

The Recommended FY 2023 -24 Budget represents an expenditure plan that is fiscally sound and incorporates information from the Long-Range Financial Plan and the Water Master Plan. As part of

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 183 of 680 IWA’s commitment to provide customers with a reliable, high -quality water supply at the lowest reasonable cost, the following areas will continue to be emphasized:

• Minimizing administrative and overhead type costs;
• Acquisition of external resources such as grants to offset some of the service costs; • Proactive customer engagement on water supply and reliability, water quality, rates and fees, conservation, and customer assistance;
• Maintain the financial health and integrity by maintaining adequate reserves and high credit ratings.

The approval of the budget is not subject to CEQA requirements. Capital improvement projects that may be subject to CEQA requirements will be addressed as part of the project.

FINANCIAL SUMMARY:

Current FY Financial
Impact:

N/A In current year budget: N/A
Current FY General
Fund Impact:

N/A Budget adjustment: N/A
Next FY Financial
Impact:
$ 33,685,607 Strategic Objective: Financial &
Environmental
Sustainability
Source of funds: Fund 810, 812, 321 and 810 Fund-Org-Object Reference:

Various

Additional Financial Details:

The total appropriations and expenditures authorized by Resolution 2023 -80 is $33,685,607. The Recommended Budget was developed using information from the Long -Range Financial Plan and the Water Master Plan. This will ensure that IWA can continue to provide the highest level of service to the City of Indio. Staff is confident that the revenue estimates w ill be achieved and expenditures will be managed effectively to realize a balanced budget.

ATTACHMENTS:

Attachment 1 - Joint Resolution No. 10364 and Exhibit A CIP - FINAL Attachment 2 - IWA Resolution 2023-80 FY 23-24 Budget
Attachment 3 - FY2023-24 Budget - FINAL
Attachment 4 - IWA FY 23-24 Budget Public Hearing - Published Notice

APPROVAL(S):

Reymundo Trejo, P.E., IWA General Manager Approved - 12 Jun 2023 Steven Graham, City Attorney Approved - 12 Jun 2023
Brian Kinder, Finance Manager Approved - 14 Jun 2023
Bryan H. Montgomery, City Manager Approved - 14 Jun 2023

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 184 of 680

RESOLUTION NO. 10364

A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO AND THE

INDIO WATER AUTHORITY APPROVING THE INDIO WATER AUTHORITY

CAPITAL IMPROVEMENT AND SUPPLEMENTAL WATER SUPPLY PROGRAMS FOR FISCAL YEAR 2023-2024
Whereas, the City of Indio (“City”) has leased to the Indio Water Authority (“Authority”) the City’s Water System (“Water System”) as that term is defined in the lease dated May 21, 2001 as amended between the City and the Authority;

Whereas, the Authority operates the Water System and in conjun ction therewith, has adopted a budget for the improvement and construction of water facilities;

Whereas, the City Council and th e Authority held a duly noticed public hearing on June 21, 2023 regarding the annual review of the Auth ority’s Capital Improvement and Supplemental Water Supply Programs as described herein;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO AND THE

BOARD OF THE INDIO WATER AUTHORITY HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:

Section 1. The above recitals are true and correct and are inc orporated herein.

Section 2. The City Council and the Authority find that it can be seen with certainty that there is no possibility that the adoption of thi s Capital Improvement Program will have a significant effect on the environment. The Capital Improvement Program is a prioritizing and funding allocation program and ca nnot and does not have the potential to cause a significant effect on the environment. No physical activity will occur until all required environmental review is conducted at t he time the physical improvements prioritized in the Capital Improvement Plan are un dertaken at a future unspecified date. Accordingly, the adoption of this Capital Imp rovement Program is therefore exempt from the environmental review requirements of the California Environmental Quality Act pursuant to Section 15061(b)(3) of Ti tle 14 of the California Code of Regulations.

Section 3. The FY 2023-2024 Indio Water Authority Capital Impr ovement and Supplemental Water Supply Programs, as set forth in Exhibit A, is hereby approved and adopted.

Section 4. By adoption of the Fiscal Year 2023-2024 Indio Wate r Authority Capital Improvement and Supplemental Water Supply Programs, it is the intent of the City Council and the Authority to revise the plan each year by continuing to identify

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 185 of 680

capital improvement projects and by re-prioritizing existing ca pital improvements as needed to serve the community.

Section 5. The City Clerk and the Authority Secretary shall cer tify to the adoption of this resolution.

PASSED, APPROVED AND ADOPTED this 21 st day of June, 2023, by the following vote:

CITY COUNCIL & INDIO WATER AUTHORITY

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________
O s c a r O r t i z
M a y o r / P r e s i d e n t

ATTEST:

_________________________
Cynthia Hernandez, CMC
City Clerk/Secretary

APPROVED AS TO FORM:

____________________________
Steven Graham
City Attorney/IWA General Counsel

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 186 of 680 Indio Water Authority
Capital Project Fund Detail
FY 2021-22
Actual
FY 2022-23
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Fund Group: Water Capital Program Fund: 812
Budget Unit: Indio Water Authority
Interest Earnings - -
Transfer-In Reveneue 4,171,900 2,610,000 3,995,000 - Reimbursements - - - - Total Revenue 4,171,900 2,610,000 3,995,000 - Administrative Charges - - - - Services and Supplies - - - - Fixed Assets 4,171,900 2,610,000 3,995,000 - Internal Service Transfers - - - - Transfers to Other Funds - - - - Total Expenditures/Appropriations: 4,171,900 2,610,000 3,995,000 - Funded Positions:

No Funded Positions - - - - - - - -

Appropriation Category
The Water Capital Program Fund is used to upgrade, repair, and maintain water system infrastucture. 52

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 187 of 680 Fund 812
FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Estimated Beginning Fund Balance -$ - $ - $ - $ - $ Transfer-In from Fund 810 3,995,000 3,475,000 5,175 ,000 5,450,000 1,950,000 Funded with Bond Proceeds - 4,000,000 8,000,000 8,000,000 8,000,000 Total Available Resources 3,995,000 7,475,000 13,175 ,000 13,450,000 9,950,000 Plant 4 BPS Upgrade 200,000 - - - -
Plant 2 BPS Replacement 450,000 750,000 1,250,000 2,000,000 - Westward Ho Dr. Stormwater Channel Crossing 100,000 100,000 1,500,000 1,500,000 - Water Facility Building Replacement 200,000 200,000 200,000 200,000 200,000 Well Rehabilitation Program 150,000 400,000 400,000 - - Hexavalent Chromium Well Treatment * 400,000 4,000,000 8,000,000 8, 000,000 8,000,000 Plant 1 Interior Aluminum Stairway 400,000 - - - -
Meter Changeout Program 350,000 350,000 350,000 350,000 350,000 Bridge Seismic Connections - - - - -
Bridge and Canal Pipeline Coatings 50,000 50,000 50,000 50,000 50,00 0 Reservoir Exterior Coatings - - 200,000 200,000 200,000 Reservoir Safety Rails/Outside Stairway 25,000 25,000 25,000 - - Reservoir 4 Flush Cleanout/Manway - - - -
Emergency Intertie Connections 20,000 50,000 50,000 - - Pipeline Replacement Program 1, 500,000 1,400,000 1,000,000 1,000,00 0 1,000,000 Hydrant Replacement Program 150,000 150,000 150,000 150,000 150,000 Total Project Costs 3,995,000 7,475,000 13,175,000 13,450,000 9,950,000 Estimated Ending Fund Balance -$ - $ - $ - $ - $
* Assumes California Mandated Maximum Contaminate Level (MCL) set at 10 ppb.

Indio Water Authority
Capital Improvement Program
Water Capital Program
53 -

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 188 of 680 Fund 812 – FY 23-24 Operating/Rate Revenue Fund
Projects: $3,995,000
Plant 4 Booster Pump Station (BPS) Upgrade
Project Location: North-West corner of Avenue 46 and Shields Road Project Scope: Construction Phase – The project will increase Plant 4 Booster Pump Station’s capacity and add a new pump motor. The project does n ot include building improvements. This project will provide improved operational f lexibility and re liability to the Western part of the distribution system.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $200,000. Total Project Budget: $200,000 54

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 189 of 680 Plant 2 Booster Pump Station Replacement
Project Location: North-West corner of Monroe Street and Crown Way Project Scope: Design Phase – The project will consist of designing a full replacement of the existing booster pump station at Plant 2. The booster pump station is near the end of its useful life. This project will provide reliability and imp roved fire flow capacity and pressure to the distribution system.

Schedule: Fall 2022 – Spring 2025
Budget: FY 23-24: $450,000. Total Project Budget: $4,450,000 55

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 190 of 680 Westward Ho Dr. Stormwater Channel Crossing Pipeline
Project Location: East of Jefferson St., along Westward Ho Drive Project Scope: Design Phase – The purpose of this project is to install an 18-inch pipeline across the Coachella Storm Water Channel next to IWA’s Plant 4 r eservoir and pump station facility. The existing 10-inch pipeline crossing the channel was exposed during the February 2019 storm events. The purpose of this project is safeg uard the systems infrastructure through the storm channel, and improve fire flow capacity and system reliability in western portion of the distribution system.

Schedule: Fall 2022 – Spring 2026
Budget: FY 23-24: $100,000. Total Project Budget: $3,200,000 56

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 191 of 680 Water Facility Building Replacement
Project Location: Various Locations
Project Scope: Planning Phase – The project will consist on preparing a condition assessment at various locations within the water distribution sy stem in order to assess existing condition and prepare a plan for repairs or replacement.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $200,000. Total Project Budget: $1,000,000 57

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 192 of 680 Well Rehabilitation Program
Project Location: Various Water Production Wells
Project Scope: The purpose of this project is to rehabilitate IWA’s groundwater extraction wells, which includes aquifer zone testing, pump removal, rehabilitation and redevelopment of well, video survey, disinfection, and pump reinstallation. This will extend the operational life of the asset and maintain high production flow rates.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $150,000. Total Project Budget: $950,000 58

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 193 of 680 Hexavalent Chromium Well Treatment
Project Location: Various Production Well site locations throughout the IWA service area Project Scope: The State Water Resources Control Board previously imposed a Maximum Contaminant Level (MCL) for Hexavalent Chromium (Cr6) in 2015. IWA installed wellhead treatment units at three of the City’s groundwater wells to remove Cr 6 and meet the MCL.

The available wellhead treatment for Chromium 6 removal is stro ng base anion (SBA) exchange resins and requires a substantial capital and operatio nal investment to operate.

The state rescinded the MCL in May of 2017, and will likely reinstate the MCL in FY 2023- 2024. IWA recommends a total of $400,000 for FY 2023-24 for preliminary design of SBA exchange treatment at multiple wellhead facilities.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $400,000. Total Project Budget is approximately $35 Million. 59

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 194 of 680 Plant 1 Interior Aluminum Stairway
Project Location: IWA Plant 1 Reservoir
Project Scope: This project will replace the aluminum interior stairway for th e reservoir at plant 1. The new stairway will ensure safe ingress and egress du ring annual tank inspections.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $400,000. Total Project Budget is $400,000. 60

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 195 of 680 Meter Change Out Program
Project Location: Various locations throughout IWA’s Service Area.

Project Scope: This project is part of a programmatic meter replacement program . IWA will continue to replace new meters and switch from remote read to automated reading through an advanced metering infrastructure system, which promot es water conservation due to the increased consumption accuracy.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $350,000. Total Project Budget is $1,750,000. 61

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 196 of 680 Pipeline Replacement Program
Project Location: Various pipeline locations throughout the IWA Service Area Project Scope: Replace pipelines in areas with the greatest need such as pipe upsize or very low pressures. This is part of a 10-year program for repla cement of pipelines throughout the entire distribution system. The pipeline replace ment project will help IWA to be able to provide fire flow capacity and adequate pressure across the distribution system.

Schedule: Fall 2023 – Spring 2032
Budget: FY 23-24: $1,500,000. Total Programmatic Budget: $5,900,000 62

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 197 of 680 Hydrant Replacement Program
Project Location: Various locations throughout the IWA Service Area Project Scope: As part of the hydrant replacement program, IWA will replace up to 150 hydrants over a period of 10 years. IWA reviewed the system wide inventory of older dry- barrel hydrants. Approximately 300 exist in the distribution system. When operated, the risk of the dry-barrel hydrant malfunctioning increased over ti m e . A t t h i s t i m e , I W A recommends replacement of the dry-barrel hydrants to the most current hydrant standards to ensure reliability for fire protection.

Schedule: Fall 2023 – Spring 2032
Budget: FY 23-24: $150,000. Total Programmatic Budget: $1,500,000 63

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 198 of 680 Indio Water Authority
Capital Project Fund Detail
FY 2021-22
Actual
FY 2022-23
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Fund Group: Fund: 321
Budget Unit:

Interest Earnings - - - - Impact Fee Revenue 1,063,291 700,000 750,000 - Reimbursements - - - - Total Revenue 1,063,291 700,000 750,000 - Administrative Charges 15,000 15,000 15,000 - Services and Supplies - - - - Fixed Assets 200,000 300,000 300,000 - Internal Service Transfers - - - - Transfers to Other Funds - - - - Total Expenditures/Appropriations: 215,000 315,000 315,000 - Funded Positions:

No Funded Positions - - - - - - - -

Appropriations by Department
As of March 1, 2013 ,a Supplemental Water Supply Fee is assessed on development projects in the City of Indio. The fee provides a framework to alleviate the strain on IWA's groundwater supply and is based on future water demands for new developments. Funds will be used to pursue the development of recycled water for future growth in Indio through indirect potable water reuse through injection. In fiscal year 2016-17, IWA began a recycled water project design. 64

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 199 of 680 Fund 321
FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Estimated Beginning SWS Fund Balance 7,828,059$ 8,263,059 $ 8,063,059 $ 7,863,059$ 7,663,059 $ New Revenues 750,000 - - -
Less Operational Expenses (15,000) - - - -
Total Available Resources 8,563,059 8,263,059 8,063,059 7,863,059 7,663,059 EVRA Injection Project Groundwater Model. 200,000 200,000 200,000 200,000 200,000 Supplemental Water Supply Fund Study 100,000
Total Project Costs 300,000 200,000 200,000 200,000 200,000 Estimated Ending Fund Balance 8,263,059$ 8,063,059 $ 7,863,059 $ 7,663,059 $ 7,463,059 $ Indio Water Authority
Capital Improvement Program
Supplemental Water Supply Fund
65

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 200 of 680 Fund 321 – Supplemental Water Supply Fund
Projects: $200,000 [FY 23-24]
EVRA Recycled Water Project Study
Project Location: Valley Sanitary District main yard location at 45500 Van Buren St, Indio, CA
Project Scope: On December 2013, the Indio Water Authority (IWA) and the Valle y Sanitary District (VSD) formed the Joint Exercise of Powers Agreement for EVRA, with the mission of augmenting local water resources by maximizing benef icial water reuse. The purpose of the Joint Powers Authority is to develop and impleme nt a planning, programming, funding, construction and operation strategy for a recycled water project or portfolio of projects.

For FY 2023-24, EVRA will collaborate to complete the Recycled Water Master Plan to identify existing recycled water opportunities and their fiscal impacts.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $200,000 Total Program Budget: TBD
66

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 201 of 680 Indio Water Authority
Capital Project Fund Detail
FY 2021-22
Actual
FY 2022-23
Budget
FY 2023-24
Recommended
Budget
FY 2021-22
Adopted
Budget
Fund Group: Fund: 310
Budget Unit:

Interest Earnings 10,000 10,000 10,000 -
Impact Fee Revenue 740,000 790,000 840,000 - Reimbursements - - - -
Total Revenue 750,000 800,000 850,000 - Administrative Charges 30,000 30,000 30,000 -
Services and Supplies - - - -
Fixed Assets 250,000 250,000 250,000 - Internal Service Transfers - - - -
Transfers to Other Funds - - -
Total Expenditures/Appropriations: 280,000 280,000 280,000 - Funded Positions:

No Funded Positions - - -
- - -
Appropriation Category
Water Development Impact Fee Fund accounts for fees collected from developers and the costs associated with the construction of water facilities and water mains. Projects are Adopted and coordinated by IWA.


AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 202 of 680 )XQG
)< )< )< )< )<
(VWLPDWHG%HJLQQLQJ&,3)XQG%DODQFH
 
   
1HZ5HYHQXHV     
/HVV2SHUDWLRQDO([SHQVH

     
7RWDO$YDLODEOH5HVRXUFH      
,QGLR+LOOV0DLQ=RQH0*5HVHUYRLU          1HZ0DLQ=RQH,QGLR+LOOV5HVHUYRLU3LSHOLQH          0DGLVRQ$YHQXH3LSH/RRSLQJ       -HIIHUVRQ6WUHHW3LSH/RRSLQJ       $YHQXHDQG0DGLVRQ6W3LSH,QVWDOODWLRQ      1HZ,:$:HOO'ULOOLQJDQG(TXLSSLQJ    0DGLVRQDQG0RQURH3LSH/RRSLQJ      :HOO%(TXLSSLQJ     
$YHQXH/RRS/),1&+DERXW
PLOFRQVWUXFWLRQ',)       7RWDO&RVWV 
      (VWLPDWHG(QGLQJ)XQG%DODQFH  
           ,QGLR:DWHU$XWKRULW\
&DSWLDO,PSURYHPHQW3URJUDP
:DWHU'HYHORSPHQW,PSDFW)HHV


AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 203 of 680 Fund 310 – Capital Impact Water Fund Projects:
$250,000 - [FY 23-24]
Development Impact New Well Drilling and Equipping
Project Location: Location will depend on hydrogeological assessment/recommendati on and Staff recommendations within IWA’s service area.

Project Scope: The purpose of this project is to drill a new production well t o accommodate demand growth in the City of Indio. This new well will add 2,000 gallons per minute of production capacity to the distribution system. Well site location will be determined as part of the design phase of the project. IWA hir ed a consultant to prepare the plans and specifications to drill a new well in a location least likely to encounter natural occurring Chromium 6.

Schedule: Fall 2022 – Spring 2027
Budget: FY 23-24: $250,000. Total Project Budget: $5,000,000 

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 204 of 680 Avenue 44 Pipeline Project
Project Location: On Avenue 44 from Beringer Drive to Terra Lago Parkway.

Project Scope: The purpose of this project is to install approximately 4,500 l inear feet of 18 inch ductile iron pipeline on Avenue 44 in order to loop and increase water infrastructure reliability to the east side of IWA’s system.

Schedule: Fall 2023 – Spring 2025
Budget: FY 23-24: $400,000. Total Project Budget: $3,000,000 7

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 205 of 680

RESOLUTION NO. 2023-80

A RESOLUTION OF THE INDIO WATER AUTHORITY ADOPTING THE FISCAL YEAR 2023-24 OPERATING AND CAPITAL IMPROVEMENT BUDGET AND AUTHORIZING

EXPENDITURES AND APPROPRIATIONS RELATED THERETO

WHEREAS, at the May 17, 2023 meeting of the Indio Water Authority and the Indio City Council, a study session was held to consider a proposed fiscal year operating and capital improvement budget for Fiscal Year 2023-24, which begins July 1, 2023 and ends June 30, 2024; and

WHEREAS, the proposed Fiscal Y ear 2023-24 Operating and Capital Improvement Budget provides for service levels necessary to respond to the high standards of the community which are deemed appropriate by the Board and concurrently provides a workforce to accomplish them;

NOW, THEREFORE, THE BOARD OF THE INDIO WATER AUTHORITY DO HEREBY RESOLVE AS FOLLOWS:

Section 1. The proposed 2023-24 budget, as detailed in the budget document entitled “Operating and Capital Improvement Budget Fiscal Year 2023-24 Indio Water Authority, California,” and filed with the Secretary, and as summarized below is hereby adopted:

Year Ending June 30 Authorized Expenditures
FY 2023-24 $33,685,607

Section 2. Appropriations in the amoun t not to exceed $33,685,607 are authorized for the purpose of carrying on the business of the Indio Water Authority.

Section 3. The Board recognizes that the adopted Fiscal Year 2023-24 budget will require adjustments from time to time, and accordingly, the General Manager or his designee is authorized to redistribute allocated budgeted amounts within or between divisions. The General Manager or his designee is authorized to transfer up t o $75,000 of any unallocated fund balance to or between divisions. Any transfer above this amount must be approved by the Council/Board.

Section 4. The Secretary shall attest and certify to the passage and adoption thereof.

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 206 of 680

PASSED, APPROVED AND ADOPTED this 21st day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

________________________________
Oscar Ortiz
President

ATTEST:

________________________________
Cynthia Hernandez, CMC
Secretary

APPROVED AS TO FORM:

________________________________
Steven Graham, General Counsel

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 207 of 680

RECOMMENDED OPERATING &
CAPI

TAL IMPROV EMENT
BUDGET
FISCAL YEAR 2023/hyphen.case2024

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 208 of 680 Indio Water Authority
83-101 Avenue 45
Indio, CA 92201
(760) 391-4038
www.indiowater.org
Recommended
Operating and
Capital Improvement
Budget
FY 2023-24

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 209 of 680 Indio Water Authority Board of Directors
Oscar Ortiz
President
Lupe Ramos-Amith
Vice President
Elaine Holmes
Commissioner
Glenn Miller
Commissioner
Waymond Fermon
Commissioner
Bryan H. Montgomery, Executive Director/City Manager
Reymundo Trejo, IWA General Manager
Cynthia Hernandez, Board Secretary/City Clerk
IWA Divisions and Managers
•
Engineering .............................................................................Reymundo Trejo • Finance & Customer Service .................................................... Brian M. Kinder •Water Operations ...........................................................................Miguel Peña •
Administrative, Planning & Conservation ......................................Michelle Tse

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 210 of 680 FY 2023-24 | Recommended

BUDGET AT A G
LANCE
Revenue Assumptions:
a. No water rate increases; New account growth 2%.
b. Water Meter charges increasing by 31%
c. Backflow charges increasing by 14%
d. Fire Protection charges increasing 21%
e. Replenishment Assessment no increase.

Water Utility Payments $21,232,989 73%
Reimbursements/Other $22,000 <1%
Replenishment/Assessment $1,582,800 5%
Meters and Service Fees $1,526,400 5%
Interest Earnings $500,000 1.7%
Transfer-In/Unallocated FB $4,231,418
Total $29,095,607 100%
Expense Assumptions:
a. Salary and Benefit Expense increasing 5%
b. Internal Service Charges Increasing 12%.
c. Fixed Asset Expense increasing 5%.
d. Services and Supplies increasing by 25%.

Salary & Benefits
$7,221,025
23%
Services and Charges
$1,006,750
25%
Supplies
$1,357,321
3%
Fixed Assets
$3,404,597
5%
Internal Service Charges
$4,166,114
12%
Debt Service
$1,200,000
14%
Transfer-Out $3,995,000
4%
Total $29,095,607 100%
FY 2021-22
Actual
FY 2022-23
Budget
FY 2023-24
Recommended
Revenues $25,504,126 $24,488,177 $24,909,189
Unallocated Fund Bal. - $4,186,418
Budget Surplus $ 5,159,110
Capital Improvement Budget
Fund 321 - Supplemental Water Supply Fee
Account $315,000
- EVRA Injection Project Groundwater Model $200,000
- Supplemental Water Fee Study $100,000
- Project Administration $15,000
Fund 310 - Capital Impact Fee
Account $280,000
- New IWA Well Drilling and Equipping $250,000
- Project Administration $30,000

14.5%
Fund 812-Water Capital Program
Account $3,995,000
- Plant 4 BPS Upgrade $200,000
- Plant 2 BPS Replacement $450,000
- Westward Ho Dr. Stormwater Channel $100,000
- Water Faculty Building Replacement $200,000
- Well Rehabilitation Program $150,000
- Hexavalent Chromium Well Treatment $400,000
- Plant 1 Interior Aluminum Stairway $400,000
- Meter Change Out Program $350,000
- Bridge and Canal Pipeline Coating $50,000
- Reservoir Safety Rails/Outside Stairway $25,000
- Emergency Intertie Connections $20,000
- Pipeline Replacement Program $1,500,000
- Hydrant Replacement Program $150,000
FY 23-24 Proposed Funding by Source
Expenditures ($20,345,016) ($29,095,607)($25,606,195)
- -
FY 23
-24 Proposed Expenditures by Source
$1,118,018
Equipment
$6,744,800
14%

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 211 of 680

T ABLE OF CONTENTS
Page
INTRODUCTION:

Executive Director’s Budget Message………………………………………………. 1 Budget Resolution…………………….……………………………...……………….. 3
BUDGET OVERVIEW:

Summary of Authorized Positions…………………………………………………... 5 IWA Organizational Chart ....................................................................... 7 Recommended Budget Overview
Profile of the Indio Water Authority ......................................................... 8 IWA Service Area ................................................................................... 19 FINANCIAL SUMMARIES:

Fund Balance Summary (Schedule 1)….……… …………………...……..……... 20 Operating Funds Summary of Revenue by Fund (Schedule 2).......................... 21 Operating Fund Revenue over Expenditures (Schedule 3)…...…….……….….. 22 Graphs – Revenue Summary and Expense Summary………...…….……….…. 23 24Operating Fund Revenue Detail (Schedule 4)….………….................................

Summary of Expenditures and Appropriations by Fund and Department (Schedule 5)….……………………….……………………………….……..……. 25
Operating Fund Detail by Division (Schedule 6)
Board of Directors .................................................................................. 26 Administration, Planning & Conservation............................................... 29 Operations- Production .......................................................................... 33 Operations- Transmissions/Distribution ................................................. 37 Finance & Customer Service ................................................................. 40 Information Technology ......................................................................... 43 Engineering ............................... ............................................................ 46 Debt Service Fund Detail (Schedule 7) …………………………………………… 49

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 212 of 680 EQUIPMENT REPLACEMENT:

Equipment Replacement Fund Detail (Schedule 8)………..……………………... 51 CAPITAL IMPROVEMENTS:

Supplemental Water Supply Fund (Schedule 9)…..….…………….…………….... 52 Supplemental Water Capital Improvement Program (Fund 321)….……………... 53 64
Capital Impact Fund (Schedule 9)……………………..….…………...................... 65 Summary of Reserve Funds…………………………….……………….…………... 71 APPENDIX:

List of Acronyms ……………………………..……………………………………...... 73
Glossary……………………………………….………………………………………... 74
Capital Impact Fund Capital Improvement Program (Fund 310)..........................

RESERVE FUNDS:
67 Water Capital Program (Schedule 9)…..….…………….…………….....................

Water Capital Improvement Program (Fund 812)……………............................... 68

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 213 of 680 Indio Water Authority
Fiscal Year 2023-2024 Budget

INTRODUCTION

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 214 of 680

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 215 of 680 The IWA's Capital Program includes a Water Capital Impact Fee Fund, a Supplemental Water Fund, and a Water Capital Program Fund. Total capital expenditures from all these funds in totals $4.6 million.

The recommended budget has been developed to conservatively manage financial resources while providing for the highest level of customer service. The total recommended budget authorizes $33. 7 million in total expenditures acrossed all funds.

IWA will continue to take important steps to monitor, and safeguard the resources required to provide clean, reliable, and safe drinking water to our customers at a reasonable price. Water conservation and hexavalent chromium treatment will be high priorities in this budget year.

Staff is requesting that the IWA Board adopts the Fiscal Year 2023-24 budget. As such, the following action is requested:

IT IS RECOMMENDED that the Board of the Indio Water Authority and Indio City Council:
• Approve the IWA Fiscal Year 2023-24 Operating and Capital Improvement Budget effective July 1, 2023, including:
o Appropriations and estimated revenue,
o Reserves and transfers, and
o Resolution (Exhibit A) of the Board of the Indio Water Authority, California, adopting the fiscal year 2023-24 budget and authorizing expenditures and appropriations related thereto.
• Direct the Executive Director to make the allocation of personnel as reflected in the budget document.
2 Respectfully submitted,
Brya H. Montgomery
Executive Director

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 216 of 680 RESOLUTION NO. 2023-80

A RESOLUTION OF THE INDIO WATER AUTHORITY ADOPTING THE FISCAL YEAR 2023-24 OPERATING AND CAPITAL IMPROVEMENT BUDGET AND AUTHORIZING

EXPENDITURES AND APPROPRIATIONS RELATED THERETO
WHEREAS, at the May 17, 2023 meeting of the Indio Water Authority and the Indio City Council, a study session was held to consider a proposed fiscal year operating and capital improvement budget for Fiscal Year 2023-24, which begins July 1, 2023 and ends June 30, 2024; and
WHEREAS, the proposed Fiscal Y ear 2023-24 Operating and Capital Improvement Budget provides for service levels necessary to respond to the high standards of the community which are deemed appropriate by the Board and concurrently provides a workforce to accomplish them;

NOW, THEREFORE, THE BOARD OF THE INDIO WATER AUTHORITY DO HEREBY RESOLVE AS FOLLOWS:

Section 1. The proposed 2023-24 budget, as detailed in the budget document entitled “Operating and Capital Improvement Budget Fiscal Year 2023-24 Indio Water Authority, California,” and filed with the Secretary, and as summarized below is hereby adopted:

Year Ending June 30 Authorized Expenditures
FY 2023-24 $33,685,607
Section 2. Appropriations in the amoun t not to exceed $33,685,607 are authorized for the purpose of carrying on the business of the Indio Water Authority.

Section 3. The Board recognizes that t he adopted fiscal year 2023-24 budget will require adjustments from time to time, and accordingly, the General Manager or his designee is authorized to redistribute allocated budgeted amounts within or between divisions. The General Manager or his designee is authorized to transfer up t o $75,000 of any unallocated fund balance to or between divisions. Any transfer above this amount must be approved by the Council/Board.

Section 4. The Secretary shall attest and certify to the passage and adoption thereof.
3

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 217 of 680 PASSED, APPROVED AND ADOPTED this 21th day of June, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Oscar Ortiz
President
ATTEST:
________________________________
Cynthia Hernandez, CMC
Secretary
APPROVED AS TO FORM:
________________________________
Steven Graham, General Counsel
4

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 218 of 680 Indio Water Authority
Fiscal Year 2023-2024 Budget

AUTHORIZED POSITIONS

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 219 of 680 FY 22/23
Adopted
FY 22/23
Changes
FY 23/24
Recommended
Department : Board Members
Elected *
WATER BOARD MEMBER 5.00 0.00 5.00
Department : 6711 - Administration
Full-Time
CITY MANAGER 0.35 0.00 0.35
CITY CLERK ADMINISTRATOR 0.25 0.00 0.25
MANAGEMENT AIDE 0.25 0.00 0.25
CITY FINANCE DEPARTMENT 0.65 0.00 0.65
EXECUTIVE ASSISTANT TO THE CITY MANAGER 0.35 -0.35 0.00 CITY HUMAN RESOURCES DEPARTMENT 0.80 0.00 0.80
GENERAL MANAGER 1.00 0.00 1.00
ADMINISTRATIVE SERVICES MANAGER 1.00 0.00 1.00
WATER SENIOR MANAGEMENT ANALYST 1.00 0.00 1.00
WATER ADMINISTRATIVE COORDINATOR 1.00 0.00 1.00
ACCOUNTING TECH II 1.00 0.00 1.00
Total 7.65 -0.35 7.30
Department : 6712 - Production
Full-Time
WATER OPERATIONS MANAGER 0.50 0.00 0.50
ASSET MANAGEMENT COORDINATOR 0.50 0.00 0.50
IWA SENIOR WATER TREATMENT PLANT OPERATOR 1.00 0.00 1.00 IWA WATER TREATMENT PLANT OPERATOR II 3.00 0.00 3.00
WATER PROGRAMS SPECIALIST 0.50 0.00 0.50
OFFICE ASSISTANT 0.50 0.00 0.50
OFFICE ASSISTANT 0.50 0.00 0.50
Total 6.50 0.00 6.50
Indio Water Authority FY 2023-24
Recommended Budget
Summary of Authorized Positions
Budgeted Department and Title
5

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 220 of 680 FY 22/23
Adopted
FY 22/23
Changes
FY 23/24
RecommendedBudgeted Department and Title
Department : 6713 - Distribution
Full-Time
WATER OPERATIONS MANAGER 0.50 0.00 0.50
ASSET MANAGEMENT COORDINATOR 0.50 0.00 0.50
WATER PROGRAMS SPECIALIST 0.50 0.00 0.50
WATER OPERATIONS SUPERVISOR 1.00 1.00 2.00
SENIOR WATER UTILITY SPECIALIST 1.00 -1.00 0.00
SENIOR WATER UTILITY WORKER 4.00 0.00 4.00
WATER UTILITY SPECIALIST 2.00 0.00 2.00
WATER UTILITY WORKER II 9.00 0.00 9.00
OFFICE ASSISTANT 0.50 0.00 0.50
OFFICE ASSISTANT 0.50 0.00 0.50
Total 19.50 0.00 19.50
Department : 6714 - Finance
Full-Time
FINANCE MANAGER 1.00 -1.00 0.00
MANAGER OF FINANCE AND CUSTOMER SERVICE 0.00 1.00 1.00
SENIOR ACCOUNTANT 1.00 0.00 1.00
SENIOR ACCOUNTING TECH 1.00 0.00 1.00
ACCOUNTING TECH II 3.00 0.00 3.00
SENIOR CUSTOMER SERVICE TECH 1.00 0.00 1.00
CUSTOMER SERVICE TECH II 3.00 0.00 3.00
Total 10.0 0.0 10.0
Department : 6716 - Engineering and Water Quality
Full-Time
ASST. GENERAL MGR. OF ENG. & WATER RESOURCES 1.0 0.0 1.0 SENIOR ENGINEER 1.0 -1.0 0.0
ASSOCIATE ENGINEER 1.0 0.0 1.0
WATER PROJECT CONSTRUCTION MANAGER 0.0 1.0 1.0
WATER OPERATIONS INSPECTOR II 1.0 0.0 1.0
ENGINEERING TECHNICIAN II 2.0 0.0 2.0
Total 6.0 0.0 6.0
Total Authority
Elected 5.00 0.00 5.00
Full Time 47.00 0.00 47.00
Partially-Funded City Positions 2.65 -0.35 2.30

54.65 -0.35 54.30
* The elected positions are partially funded from the General Fund 6

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 221 of 680

INDIO CITY COUNCIL/IWA BOARD OF
DIRECTORS (5)
City Manager/Executive
Director
IWA General Manager
Water Operations
Manager
Senior Utility
Worker
(Meter
Services)
Water Utility
Worker II
Senior Utility Worker
(Distribution)
(3)
Senior Water
Treatment
Operator
Water
Treatment
Operator II
(3)
Asset Management
Coordinator
Water
Programs
Specialist
Water Utility
Specialists (2)
Manager of Finance and
Customer Service
Finance
Senior
Accountant
Sr. Accounting
Technician
Accounting
Technician II (3)
Customer
Service
Customer Service
Technician II (2))
Sr. Customer
Service Tech
Assistant General
Manager/Engineering
Associate
Water
Engineer
Water
Operations
Inspector II
Engineering
Water Tech II
Administrative
Services Manager
Senior Management
Analyst
IWA Data &
Systems
Manager
I.T. Support
Tech
LEGEND
Board of
Directors
Executive Staff
Management
Staff
Supervisory Staff
Lead Staff
Staff
City’s I.T.

Director
City of Indio Executive Leadership
Team & City Services (2.30 FTE)
Assistant City Manager & Finance
Director, Human Resource, City Clerk
IWA Administration: 4
Operations: 26 Fin. & Cus. Serv.: 10 Engineering: 5
Administrative
Coordinator
Accounting
Technician I
Office Assistant (2)
Water Utility
Worker II
(8)
Water Operations
Supervisor
(2)
Water Production
and Treatment
Supervisor
Water Project
Construction
Manager
7

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re...Page 222 of 680 Indio Water Authority
Fiscal Year 2023-2024 Budget

BUDGET OVERVIEW

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 223 of 680

PROFILE OF THE INDIO WATER AUTHORITY

FORMATION AND SERVICE AREA
The City of Indio (City, or Indio), located in the Coachella Valley in Riverside County, California, began as a railroad town in 1876 as an outpost as Southern Pacific Railroad built lines between Yuma, Arizona and Los Angeles, California.

The town soon developed into an agricultural region by utilizing well water and water from the All -American Canal, and in 1930, Indio be came the first incorporated city i n the Coachella Valley. IWA was formed as a Joint Powers Authority (JPA) between the City of Indio and the Redevelopment Agency of the City of Indio (succeeded by the Housing Authority of the City of Indio) in the year 2000 to deliver water to the City of Indio. In 2013, the Eas t Valley Reclamation Authority (EVRA) was created under a joint powers agreement between the City of Indio through IWA and Valley Sanitary District (VSD) to plan, implement, and operate a recycled wa ter program. IWA is governed by the IWA Board, which includes the five members currently elected to the Indio City Council.

IWA provides water to a population of approximately 89,1301 within its current 38 square mile service area, which is located 120 miles east of Los Angeles in the Coachella Valley of Riverside County, California. IWA encompasses the majority of the community of Indio and some of the unincorporated areas of Indio Hills.

WATER SUPPLY, MANAGEMENT AND CAPACITY
IWA’s potable groundwater is pumped from deep aquifers in the Coachella Valley Whitewater Sub -basin (the “Groundwater Basin”). The City possesses non - adjudicated groundwater rights, which means that the City may use and sell water from the Groundwater Basin within its service area, but may not sell its water rights.

Other agencies also have water rights to the Groundwater Basin. Currently water from the basin is pumped to the surface using 20 wells with a capacity of 40 million gallons per day spread throughout the City of Indio. Three of the 20 wells utilize Strong Based Anion exchange (SBA) to treat for Hexavalent Chromium (Chromium 6).

The groundwater wells pump water to above ground storage reservoirs at four production plants. Each production plant has a storage re servoir, booster pump station, disinfection equipment, and hydro -pneumatic tank to maintain system pressure when the pumps are turned off. The deep groundwater wells supplying these plants for storage and distribution are controlled by various instrumentations through the Supervisory Control and Data Acquisition (SCADA) system. Five deep groundwater wells supply water directly into the distribution system and are controlled by SCADA.

To ensure long -term reliability of the water basin, recharge of the Groun dwater Basin is managed by the Coachella Valley Water District (CVWD). CVWD was formed in 1918 under the County Water District Act and is currently a multi-faceted 1 Population rate from the State Department of Finance 2021 Estimates 8

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 224 of 680 water agency. For many years, California has experienced extremely dry weather resulting in drought conditions affecting the State. In response to Governor Brown’s January 17, 2014 declaration of a drought emergency in California, the City codified its “Water Shortage Contingen cy Plan,” which establishes voluntary and imposed water conservation standards intended to alter behavior related to water use efficiency and further establishe d four stages of action to be implemented during times of declared water shortage or declared wa ter shortage emergency, with increasing restrictions on water use, in order to better implement and enforce conservation measures. The IWA continues to be diligent in conservation efforts to save as much water as possible and offers several water rebate options to residents.

WATER PRODUCTION
Table 1 below shows a five-year history of groundwater pumped by the Authority.

Table 1
Historical Annual Pumping
(Hundred Cubic Feet – CCF)
Fiscal Year Total Groundwater Pumped
2017-18 8,375,689
2018-19 8,309,037
2019-20 8,468,977
2020-21 8,423,224
2021-22 8,972,035
Table 2 below shows the City’s water demand re flecting actual figures for 2020 and projected deman d through 2038 based on the 2019 Water Master Plan Update.

Table 2
Projected Water Demand and Capacity
(Hundred Cubic Feet – CCF)
Calendar Year Water Demand Potable Water Capacity
2020 8,624,880 33,060,000
2023 11,500,000 36,686,606
2028 12,300,000 36,686,606
2033 13,100,000 36,686,606
9

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 225 of 680

WATER QUALITY
The quality of our water is remarkably high based on annual data compiled and reported in 2020 to the State Water Resources Control Board, Division of Drinking Water. The City of Indio (City) continues to provide extremely high quality drinking water. In 2015, IWA installed three (3) SBA well head treatm ent units to treat Chromium 6. In August 2015, IWA complete d a Chromium Compliance Study which recommended a plan to reduce str anded assets (stand-by wells). IWA continued to evaluate each of its stranded assets to determine the best method of bringing these stand -by wells back into service. IWA and other water providers across the state may get a temporary relief from the Chromium-6 standard after a judge ruled on May 5 , 2017 that the state did not take into account economic impacts when setting the Chromium -6 drinking water standard to a level more stringent than the federal standard. The State appealed the court decision. In the Spring of 2023, the State of California announced that the Chromium-6 MCL could remain at 10 parts per billion (PPB). Once the State officially implements the MCL Level, the IWA will be given a two -year compliance window to comply with the State stand ard. This will require a sizable investment to purchase additional Chromium-6 removal equipment.

IWA uses state certified laboratories for bacteriological, physical, chemical , and radiological water analysis. Samples are collected from the entire water s ystem weekly and submitted for testing to ensure the safety of the water and compliance with Federal Environmental Protection Agency’s Safe Drinking Water Act and the California drinking water standards. Sodium hypochlorite solution is used to disinfect and maintain chlorine residual throughout the distribution system.

CUSTOMER BASE
During FY 2023-24, IWA expects to add approximately 486 new water connections to the system, ending the fiscal year with 25,334 water connections. The majority of the water s ystem connections are residential, with the remaining connections representing commercial and other uses. The water system does not supply water for agricultural irrigation purposes. The City does not cu rrently sell water to other municipalities, but there are three interconnections within the City to other utilities for emergency purposes.

Table 3 below is a historical illustration of IWA’s total water meters by fiscal year.

Table 3
Number of Water Meters
2017-18 2018-19 2019-20 2020-21 2021-22
Residential 21,371 21,768 22,075 22,553 22,972
Commercial* 1,924 1,804 1,803 1,842 1,876
Total Meters 22,903 23,572 23,878 24,395 24,848
*Commercial category include all non-residential meters 10

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 226 of 680 Residential customers comprise 92% of IWA’s customer base and consume d approximately 73% of the water produced.

FISCAL MANAGEMENT
IWA’s Board of Directors annually adopts an operating and capital budget prior to the new fiscal year. The budget authorizes and provides the basis for reporting control of financial operations and accountability for IWA enterprise functions, including the water fund, supplemental water supply fund, water capital impact fee fund, and equipment replacement.

The budget and the reporting treatment are applied to fund s consistent with the accrual basis of accounting. Since its inception, IWA has adopted a balanced budget annually.

During FY 2022 -23, IWA was able to complete projects, which will conti nue to enhance finance, customer service , technology, production , and provide efficiencies in operations to meet future water demands.

FY 2022-23 HIGHLIGHTS AND ACCOMPLISHMENTS
Administration, Regional Planning and Conservation
 Received grant award funding totaling approximately $927,000 from various funding programs to support the turf rebate conservation program.
 Awarded grant funding in the amount of $675,000 from the Urban Community Drought Relief program for regional emergency water service interconnection projects with Coachella Valley Water District and Myoma Dunes Water Company to strengthen emergency response supports.
 Published the 2022 annual Consumer Confidence/Water Quality report to inform customers that IWA’s wat er quality meets or exceeds safe drinking water standards.
 Collaborated with water agencies in the Coachella Valley to revamp conservation messaging via CV Water Counts during implementation of Stage 2 of the Water Shortage Contingency Plan for consistent regional messaging. IWA further supplemented communication outreach efforts with regular messaging via utility bill inserts.
 Completed in-person conservation outreach events/meetings, including but not limited to the City’s Tamale Festival, City’s Nation al Night Out, Desert Recreation District community events, HOA meetings, and the City’s Sustainability Commission Meeting.
11

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 227 of 680  Processed approximately 168 rebate applications amounting to $205,500 related to turf removal, toilet, clothes washer, and irrigatio n system upgrades, including 95,042 square feet of turf removed. An additional $254,022 has been earmarked for the remainder of the fiscal year based on pending applications received to-date, with an additional estimated 109,778 square feet of turf removal.
 Completed the annual Indio Sub basin report for Water Year 2021-22 for submittal by the April 1 deadline to Department of Water Resources, which reviews groundwater extraction and use, surface water supplies, and storage levels to ensure the Indio Sub basin is sustainably managed.
 Collaborated with the Women’s Club of Indio to re -introduce the “Yard of the Month” program to recognize homeowners and their landscaping efforts in the community.
 Staff completed over 300 hours of in-person and webinar training for technical and skills development to further enhance service delivery and operational effectiveness.

Engineering
 Completed a Tech Memo and design plans for upgrades to IWA’s Terra Lago Pressure Reducing Station (PRS). The final installation this fiscal year will enhance the functionality and operational flexibility of the three (3) pressure reducing valve assemblies within the station. This flexibility of the PRS will ensure that the PRS can provide reduced pressure flow into the main zone as well as provide reverse flow to sustain pressure in the Terra Lago Zone.
 Completed the installation of seismic joints on a 12-inch water pipeline for the segments on the east and west side of the Indio Boulevard bridge as part of the City’s Channel Lining and Earthquake Retrofit of Bridge on Indio Boulevard Project.
 Completed a total of 18 fire hydrants to IWA standards as part of the City’s Herbert Hoover Elementary School Pedestrian I mprovements Project. This is a continuation of IWA’s programmatic Fire Hydrant Replacement Program.
 Completed design of the Indio’s Civic Center Water Pipeline Replacement Project. As part of IWA’s water pipeline replacement program, IWA will schedule the construction of a 12-inch pipeline along Requa Avenue to ensure adequate fire flow capacity within the Civic Center area in the City of Indio. Construction planned for next fiscal year. 12

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 228 of 680  In March 2022 the State Water Resources Control Board’s Division of Drinking Water released an administrative draft for Hexavalent Chromium (Cr6) Maximum Contaminant Level (MCL) at the previously established standard of 10 parts per billion. As a proactive measurement, IWA contracted professional engineering services to create a Roadmap Planning Tool and to update IWA’s 2015 Hexavalent
Chromium Compliance Study. These studies evaluated the multiple Best Available Technologies (BATs) and the most cost effective options available for IWA to follow in order to comply within two years of the MCL coming into effect.
 Completed an Evaluation on Fate of Surface Discharge from Valley Sanitary District Water Reclamation Facility to the Whitewater River Channel in conjunction with Valley Sanitary District as part of the East Valley Reclamation Authority (EVRA).
 Completed the Standard Operating Procedures (SOP) for Cross Connection Control. The SOP provides clear and complete instructions for ensuring that the public water supply is protected from cross- connection events included backflow and backsiphonage.
 Completed the Plant 2 Booster Pump Station Preliminary Design Report (PDR). The PDR provides the next steps for the design of Plant 2 Booster Pump Station.
 Performed over 1,100 new water meter inspections, and over 200 new private development infrastructure inspections.

The engineering staff completed over 20 fire-flow hydraulic analysis reports system wide.
 Processed over 340 new water meter applications system wide.  Completed the review and comment of over 64 routed land development plan checks.
 Completed the review of over 19 water improvement plan checks for new commercial and residential services and processed the applicable water improvement agreements.
 Performed over 4,000 water quality samples, testing and analysis as part of the regulatory requirements to meet drinking water standards.  Completed the review of 18 development landscape reviews for compliance with
IWA’s Development Services Procedural Guidelines.

Production and Distribution
 Enhanced Cross-Connection Control Program, and Asset Management System.
13

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 229 of 680  Maintained non-revenue water below 10 percent.
 Operation and Maintenance of three (3) strong base anion exchange units.
 Performed dead-end flushing, annual backflow testing and collected bacteriological samples to maintain water quality.
 Performed dead-end flushing, annual backflow testing and collected bacteriological samples to maintain water quality.
 Performed valve exercising to maintain infrastructure operability and water quality.
 Produced and delivered safe drinking water to customers.  Repaired and replaced water services, including pavement repairs.  Repaired and replaced large inoperable water main valves, including pavement repairs.
 Read meters for billing and collection of consumption data, which assists our customers to conserve water.
 Upgraded Supervisory Control and Data Acquisition (SCADA) programming at multiple production facilities.
 Worked with other divisions and consultants to optimize water system performance.

Finance and Customer Services
 Timely processing of approximately 240,000 financial transactions to support IWA’s core functions.
 Over 19,000 customer service calls were taken in Customer Service Call Center during the year.
 Coordinated the auditing of Fiscal Year 2021-22 Financial Statements.  Completed AB1600 reporting requirements to the Building Industry Association and the Desert Valley Building Association.  Completed FY2021-22 State Controller’s Report.
 Completed the 2022 Long-Range Financial Plan update that estimated the IWA’s infrastructure needs for the next 20 years.
 Completed the FY2022-23 Midyear Budget report and reported results to City Council.
 Completed the FY2021-22 Annual Bond Disclosure Report and posted on EMMA for Bond Holders.
 Reviewed and updated the Operating Reserve, and the Emergency Reserve to meet reserve policy requirements.
 Processed over $9,000 of claims under the California Department of Community Services & Development (LIHWAP) Low Income Household Water Assistance Program. This program provides assistance to water customers that are unable to pay their water bills.
14

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 230 of 680  Staff completed several in-person and webinar training s to improve technical skills and enhance service delivery and operational effectiveness.

Information Technology
 Went live with a brand-new customer portal, Dropcountr, which allows customers to view their usage and statistics, view their past and current bills, and pay their bills on the web or via a mobile app. This culminated nearly two years of work to move to this platform.
 Created and configured a new Domain Controller server to replace and existing Windows Server 2012 machine. This included reconfiguring every network device in the Corporate Yard to use the new server and the transfer of all critical roles to the new server.
 Configured and deployed three new high capacity (48 port) switches to our main distribution frame (MDF) and transferred over 60 network connections to the new switch stack. This also included the decommissioning and removal of three existing high-capacity switches.  Upgraded and replaced the in- person payment system, with new “chip and tap” capable card readers. Worked closely with CentralSquare to upgrade Naviline to incorporate the new equipment.
 Assisted in the ongoing deployment of ESRI’s Utility Network, which included the purchase and deployment of a new high-performance tower for ARCGIS Pro, and the configuration and deployment of a new SQL Server 2016 instance.
 Continued expansion of wireless networks to remote sites with equipment upgrades for existing sites and new equipment for sites without coverage. This includes the deployment and configuration of 5 new network radios.
 Continued site security project with the deployment of 20 new IP based cameras, to replace the last remnants of the Corporate Yard’s analog camera system.
 Ongoing workstation and monitor upgrades to retire end-of-life systems and improve comfort and productivity for IWA staff. A total of 6 workstations, 12 monitors, and 7 laptops have been deployed this year so far.
 Ongoing technical support for IWA staff.
 Continually assessed, maintained, and improved IWA information technology systems and user workstations. This includes purchasing replacement equipment and troubleshooting issues as needed.  Performed extensive, and ongoing, assessment of cybersecurity, and implemented various measures to improve security posture. This included disabling unused accounts, implementing two-factor authentication wherever possible, and disabling unsecured remote access methods and ports.

IWA’s budget has been developed with goals and objectives in mind to meet the future needs of the community and to enhance operational efficiencie s. Looking 15

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 231 of 680 forward to FY 2023 -24, the Authority wi ll focus on achieving the goals and objectives that are outlined in the budget.

FY 2023-24 BUDGET SUMMARY
Operating Revenues
Total Operating Revenue for Fiscal Year 2023 -24 is projected at $24.9 million.

There are no water rate increases included in this budget. Water utility account growth is projected to be about 2 percent from new customer growth. The water replenishment fee that is collected by the IWA and passed -through to the Coachella Valley Water Distr ict (CVWD) is not increasing. Water meter and service fees are projected to increase by about 10 percent due to anticipated completion of new development and existing site verification. Grant funding is decreasing by 85 percent from the prior year. We are expecting approval of a $900,000 conservation grant to be approved during the fiscal year to be added to the budget. To be conservative we only budget grant funding when notification is confirmed the grant is officially approved. The revenue budget i s balanced with the expenditure budget by using $4.2 million of unallocated fund balance. Total budgeted funding sources for the Fiscal Year 2023 -24 budget totals $29.1 million and balances with budgeted expenditures.

Operating Expenses
Total Operating Expenditures for Fiscal Year 2023-24 is budgeted at $29.1 million.

There are no addition positions included in budget. The IWA workforce remains at 47 full-time employees, and the City of Indio support staff allocation is at 2.30 persons. Salary and benef it budget is increasing by 5 percent. Operating & Maintenance (O&M) and Internal Service Funds (ISF) with critical investments including a new vector truck, a replacement dump truck, generators, automatic transfer switches, and core server replacement is increasing 13.6 percent collectively. Transfers out to the Capital Improvement Fund are increasing 53 percent.

Capital Expenditures
IWA’s capital outlay program includes a Water Capital Impact Fee Fund, a Supplemental Water Fund, and a Water Capital Program Fund. Total recommended capital expenditures from all these funds total $4.6 million.

The primary objective of the capital outlay program is to replace assets that have reached or surpassed their useful life, to construct new projects that assist IWA in achieving higher service and reliability standards and improve long-term operating efficiencies.
 The Water Capital Impact Fee (Fund 310) budget is $280,000 and will be used for:
o New IWA Well Drilling and equipping
o Administrative Transfer to Operating Fund
16

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 232 of 680  The S upplemental Water S upply Fund (Fund 321 ) budget is $ 315,000 thousand and will be used for:
o EVRA Injection Project Groundwater Model
o Supplemental Water Fee Study
o Administrative Transfer to Operating Fund
 The Capital Reserve Fund (Fund 812) budget is $3,995,000 thousand and will be used for:
o Plant 4 BPS Upgrade
o Plant 2 BPS Replacement
o Westward Ho Dr. Storm water Channel Crossing
o Water Facility Building Replacement
o Well Rehabilitation Program
o Hexavalent Chromium Well Treatment
o Plant 1 Interior Aluminum Stairway
o Meter Change out Program
o Bridge and Canal Pipeline Coating
o Reservoir Safety Rails/Outside Stairway
o Emergency Intertie Connections
o Pipeline Replacement Program
o Hydrant Replacement Program

STAFFING AND PERSONNEL
For FY 2023-24, there are 47 authorized IWA full-time positions, and 2.30 partially city funded positions. The chart below provides a historical summary of IWA funded full-time positions, and partially city funded position IWA Full -Time Employees
42 43 43
47 47
49 47 47 47 47

1.9 1.9 1.9

1.9 2.15

2.15 2.35 2.35 2.65 2.30
37 38
39 40
41 42
43 44
45 46
47 48
49 50
51 52
53 54
55 FY
14/15
FY
15/16
FY
16/17
FY
17/18
FY
18/19
FY
19/20
FY
20/21
FY
21/22
FY
22/23
FY
23/24
CITY FTE's
IWA
17

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 233 of 680

RESERVE FUNDS
Currently, the IWA has two designated (2 ) reserve funds. The funding of these reserves reflects the importance of the adopted policies to ensure prudent fiscal management, long-term operational solvency , along with the preservation of adequate service levels in case of emergencies.

DEBT ADMINISTRATION
On October 1, 2006, the Indio Water Authority issued $61,795,000 Wat er Lease Revenue Bond Series. Some of the proceeds were used to repay the 2004 Bond Series and the remainder were used for various capital maintenance and improvement projects to build new reservoirs, wells , boosters stations, pipelines, a corporate facility building, and system administration.

On June 2, 2015, the Indio Water Authority issued $60,215,000 of Water Revenue Bonds. The 2015 bond issue refunded the outstanding bonds from the 2006 bond issue. In addition to refunding the 2006 bond issue, the 2015 bond issue generated approximately $4.8 million in new proceeds to fund necessary project improvements to insure treatment of Hexavalent Chromium within the required maximum containment level. The Bonds are paid from IWA net revenues and from certain funds held under the indenture. On May 11, 2018, the Indio Water Authority credit rating of “A/Stable” was upgraded to “A A+/Stable by Standard and Poor's for the 2015 bond issue. The upgraded rating reflected that the IWA’s financial strength during last three fiscal years was very robust. According to the opinion of the Standard and Poor’s, this trend is expected to continue given management’ history of implementing timely rate increases. The rating shows t hat the IWA has a very strong risk profile and financial risk profile.

The FY 2023 -24 debt service payments for the 2015 bond issue will total $4,166,113.
18

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 234 of 680 I-10

DILLON RD
AVENUE 48

MONROE ST
AVENUE 38

INDIO BLVD
AVENUE 42

JEFFERSON ST
AVENUE 44
AVENUE 50

MILES AVE
SH-86
HIGHWAY 111
AVENUE 40
AVENUE 52

TYLER ST

CALHOUN ST

CLINTON ST

HARRISON ST
AVENUE 46

VARNER RD

FARGO CANYON RD

DR CARREON BLVD

FRED WARING DR
AVENUE 45

DUNE PALMS RD

POLK STREQUA AVE

LANDFILL RD

SUN CITY BLVD

EASTSIDE DR
AVENUE 43
AVENUE 41
AVENUE 27
AVENUE 39
AVENUE 36

ODLUM DR

LINDY LN

HJORTH ST

MADISON ST

KEVIN RD JACKSON ST

CABAZON RD

KENNER AVE

VAN BUREN ST
AVENUE 51

MARKET ST

BERDOO CANYON RD

TALAVERA BLVD

VIA SAVONA

HOPI AVE

AVENIDA SOMBRA

SOUTH BAY DR

GLASS DR

POLO CLUB DR

CREST AVE
AVENUE 49

LIGMAN RD
NONE

N SUN CITY BLVD

PATRICK DR

MITCHEL DR

NORTH SHORE DR
ALLEY

TARA DR

GRANT DR

CALICO AVE

VALENCIA AVE

ATLANTIC AVE

BERINGER DR

DATE AVE

REGONA RD

ALADDIN ST

LEWIS RD
TEE ST

BURR ST

TIGRIS AVE

POLO RD

HARRISON PL

PACINO ST

GREENBRIER DR

CABRILLO PL

BUSH ST

BONITA LN

NUEVO DR

ROUDEL LN
AVENUE 37

PLAZA AVE

HARRISON ST

HARRISON ST

TYLER ST
ALLEY
SH-86
AVENUE 40
I-10MADISON ST
ALLEY

JACKSON ST
®
Legend
Indio Water Authority Service Area
Indio Water Authority
Service Area Boundaries
19

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 235 of 680 Indio Water Authority
Fiscal Year 2023-2024 Budget

FINANCIAL SUMMARIES

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 236 of 680 Indio Water Authority
Fund Balance Summary
Estimated Fund
Balance as of
June 30, 2023
Estimate
Ending Fund
Balance as of
June 30, 2024
Total
Nonspendable
Total
Restricted
Total
Committed
Total
Assigned
Total
Unassigned
810 Water Operating Fund 23,202,675 21,516,257 - - - 21,516,257 810 Water Operating Reserve Fund 6,000,000 6,000,000 - 6,000,000 - - - 810 Emergency Reserve Fund 3,820,000 3,820,000 - 3,820,000 - - - 811 Rate Stabilization Fund 5,000,000 5,000,000 - 5,000,000 - - - 812 Water Capital Program 250,000 150,000 - 150,000 - - - 310 Water Capital Impact Fee Fund 9,048,123 9,718,123 - 9,718,123 - - - 321 Supplemental Water Supply Fund 8,007,913 8,542,913 - 8,542,913 - - - Total Funds 55,328,711 54,747,293 - 33,231,036 - - 21,516,257 Fund Balance Components for the Budget Year
Fund Name
Schedule 1
20

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 237 of 680 Indio Water Authority
Operating Funds
Summary of Revenue by Fund
FY 2021-22
Actual
Revenue
FY 2022-23
Budget
Revenue
FY 2023-24
Recommended
Budget Revenue
FY 2023-24
Adopted Budget
Revenue
810 Operating Water Fund 25,504,126 24,488,177 24,909,189 - Total Operating Water Fund 25,504,126 24,488,177 24,909,189 - 812 Water Capital Program 1,614,655 2,610,000 3,995,000 - 321 Supplemental Water Supply Fund 1,063,291 700,000 750,000 - 310 Water Capital Impact Fee Fund 947,166 800,000 850,000 - Total Capital Project Funds 3,625,112 4,110,000 5,595,000 - Total Funds Revenue 29,129,238 28,598,177 30,504,189 - Fund Description
Schedule 2
21

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 238 of 680 Indio Water Authority
Operating Fund
Revenue over Expenditures
Budget
FY 2022-23
Recommented Budget
FY2023-24
Adopted Budget
FY 2023-24

REVENUE
Water Sales 20,816,655 21,232,989 -
Meter and Service Fees 1,384,400 1,526,400 -
Replenishment Assessment 1,582,800 1,582,800 -
Investment Income 500,000 500,000 -
Grant Funding 159,321 22,000 -
Transfer-In 45,000 45,000 -
Total Budgeted Revenue 24,488,176 24,909,189 -

EXPENDITURES
Salary and Benefits 6,429,201 6,744,801 -
Legal Services 105,000 105,000 -
Professional/Contract Services 1,710,371 1,497,300 -
Regulatory/Governmental Agency 1,958,800 1,982,800 -
Utilities 1,605,000 1,605,000 -
Outside Repair & Maintenance 489,625 489,625 -
Travel & Training 77,300 108,800 -
Dues & Subscriptions 37,000 49,500 -
Postage & Freight 158,000 185,500 -
Conservation Programs/Outreach 535,000 500,000 -
Advertising 115,000 115,000 -
Cell Phones 29,500 34,500 -
Rentals and Leases 92,005 92,000 -
Printing 68,000 106,000 -
Meter Change Out Program 350,000 350,000 -
Repair Parts/Supplies 748,750 758,750 -
Supplies & Safety Equipment 36,500 38,000 -
Chemical Lab 160,000 160,000 -
Contingency 100,000 50,000 -
Capital Outlay 1,857,321 2,557,321 -
Internal Service Funds 2,169,708 3,404,597 -
Transfer Outs 2,610,000 3,995,000 - - -
Total Expenditures 21,442,081 24,929,494 -
Debt Service 4,164,113 4,166,113 -
Total Budget Appropriations 25,606,194 29,095,607 - Projected Revenue Over (1,118,017) (4,186,418) -
Expenditures (+/-)
Description
Schedule 3
22

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 239 of 680 FY 2022-23 REVENUE SUMMARY
Recommended- $29,095,607
FY 2022-23 EXPENDITURE SUMMARY
Recommended- $29,095,607
Fixed Assets
Internal Service Charges
Debt Service
Equipment replacement
Transfer-Out
Water Utility
Payments
$21,232,989

73.0%
Meters and
Service Fees
$1,526,400

5.2%
Reimbursements/
Other $22,000

0.1%
Replenishment
Assessment
$1,582,800

5.4%
Interest
Earnings
$500,000 …
Transfer-
In/Unallocated FB
$4,231,418 14.5%
Salary & Benefits
$6,744,800

23.2%
Services &
Charges
$7,221,025

24.8%
Supplies
$1,006,750

3.5%
Fixed Assets
$1,357,321

4.7%
Internal Service
Charges
$3,404,597 11.7%
Debt Service
$4,166,114

14.3%
Equipment
replacement
$1,200,000

4.1%
Transfer-Out
$3,995,000

13.7%
23

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 240 of 680 Indio Water Authority
Operating Fund Revenue Detail
FY 2021-22
Actual
Revenue
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Water Fund
Interest Earnings 60,674 500,000 500,000 - Total Use of Money and Property 60,674 500,000 500,000 - Delinquent Penalty Fees 285,708 290,000 300,000 - Plan Checks 62,447 100,000 100,000 - Inspection Fees 203,716 100,000 100,000 - Water Utility Payments 22,177,824 20,816,655 21,232,989 - Water Meters 259,748 153,000 200,000 - Backflow Charges 367,188 350,000 400,000 - Fire Protection Charges 187,670 165,000 200,000 - Replenish Assessment Charge 1,501,099 1,582,800 1,582,800 - Service Area Fee 44,786 40,000 40,000 - NSF Returned Check Charge 5,175 4,000 4,000 - Charges for Services 207,160 122,400 122,400 - Establishment Fee 57,620 60,000 60,000 - Total Charges for Services 25,360,140 23,783,855 24,342,189 - Transfers In 45,000 45,000 45,000 - Cash Over/Short 41 - - - Recovery of Labor 335 2,000 2,000 - Reimbursements 37,936 20,000 20,000 - Grant Reimbursements - 137,321 - - Total Miscellaneous Services 83,312 204,321 67,000 - Total Operating Revenue 25,504,126 24,488,177 24,909,189 - Description
Schedule 4
24

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 241 of 680 Indio Water Authority
Summary of Expenditures and Appropriations by Fund and Department FY 2020-21
Actual
Expenditures
FY 2021-22
Actual
Expenditures
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Water Authority Operations
6711 Board of Directors 10,500 5,337 11,459 6,459 - 6711 Planning & Conservation 3,382,658 4,132,059 4,389,939 4,830,530 - 6712 Production 3,290,483 3,768,572 4,562,960 4,860,934 - 6713 Transmission and Distribution 3,842,325 3,690,458 4,556,228 4,987,012 - 6714 Finance and Customer Service 1,818,068 1,624,466 2,284,343 2,710,118 - 6715 Information Technology 766,999 834,472 1,238,561 1,011,367 - 6716 Engineering 1,069,831 901,573 1,288,591 1,328,074 - 6725 Equipment Replacement 86,297 315,848 500,000 1,200,000 - 581003 Transfer Out to Water Capital Program 1,348,545 875,325 2,610,000 3,995,000 Total Water Authority Operations 15,615,705 16,148,110 21,442,081 24,929,494 - 6720 Water Debt Service 4,169,613 4,196,906 4,164,114 4,166,113 - Total Debt Service Funds 4,169,613 4,196,906 4,164,114 4,166,113 - Total Operating Expenses 19,785,318 20,345,016 25,606,195 29,095,607 - 812 Water Capital Program 716,206 1,614,655 2,610,000 3,995,000 - 321 Supplemental Water Supply Fund 20,387 215,000 315,000 315,000 - 310 Water Capital Impact Fee Fund 59,149 280,000 280,000 280,000 - Total Capital Projects Funds 795,743 2,109,655 3,205,000 4,590,000 - Total Expenditures 20,581,061 22,454,671 28,811,195 33,685,607 - Description
Schedule 5
25

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 242 of 680 Indio Water Authority
Operating Fund Detail by Division
FY 2021-22
Actual
Total
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Fund Group: Water Authority Fund: 810
Budget Unit: Administration Department: 6711
Function: Board of Directors
Salaries and Benefits 5,337 6,459 6,459 -
Services and Charges - 5,000 - -
Fixed Assets - - - -
Internal Service Fees - - - -
Transfers to Other Funds - - - -
Total Expenditures/Appropriations: 5,337 11,459 6,459 - Funded Positions:

Elected Board Members 5.00 5.00 5.00 -

5.00 5.00 5.00 -
Appropriation Category
The Indio Water Authority is governed by a Board of Directors consisting of the City’s five elected City Council members. The Board meets every first and third Wednesday of the month at the City's Council Chambers located at 100 Civic Center in Indio. The Board's activities relate to the governing of the Authority, establishing policy through approval of the budget, resolutions and ordinances, and participating in community affairs, intergovernmental relations and participation at selected water organization activities.

Schedule 6
26

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 243 of 680 Indio Water Authority
FY 2023-24
6711- Water Administration Board
New Account Account Actual Actual Actual Budget Proposed Change Org Code Object Code Description FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Salaries & Benefits
8106711 511008 Regular Pay 7,682 9,582 4,900 6,000 6,000 - 8106711 512013 Medical Insurance - - - - -
8106711 513004 PERS-EMPLOYER - - - - -
8106711 514005 Social Security 918 918 437 459 459 -
8106711 512017 Life Insurance - - - - -
8106711 512021 LT Disability - - - - -
Subtotal 8,600 10,500 5,337 6,459 6,459 - Operations - - - - -
8106711 521064 Professional Services - - - - -
8106711 524028 Travel & Training - - - 5,000 - (5,000) 8106711 540015 Meetings - - - - -
8106711 531066 Dues & Publications ( Cert) - - - - -
Total Expenses - - - 5,000 - (5,000)
Total Expenses 8,600 10,500 5,337 11,459 6,459 (5,000) 27

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 244 of 680 Indio Water Authority
FY 2023-2024
6711 - Water Board
Org
Code
Object
Code Account Description Comments
Proposed FY
2023-24
Salaries & Benefits
8106711 511008 Regular Pay 6,000
8106711 511012 Part-time Salaries -
8106711 511016 Overtime -
8106711 512003 Auto Allowance -
8106711 512005 Uniform Allowance -
8106711 512009 Communication Allowance -
8106711 512013 Medical Insurance -
8106711 513004 PERS Employer -
8106711 514005 Social Security 459
8106711 512017 Life Insurance -
8106711 512021 LT Disability -
Subtotal 6,459
Services & Supplies
8106711 521064 Professional Services -
8106711 524028 Travel & Training -
8106711 540015 Meetings -
Total Services & Supplies
Internal Service
8106714 571003 Risk Management -
8106714 571005 Building -
8106714 571007 Information Technology -
8106714 571011 Fleet Maintenance -
Total Internal Service -
Total Expenditures 6,459
28 -

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 245 of 680 Indio Water Authority
Operating Fund Detail by Division
FY 2021-22
Actual
Total
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Appropriation Category
Fund Group: Water Authority Fund: 810
Budget Unit: Administration Department: 6711
Function: Administration, Planning & Conservation
Salaries and Benefits 1,436,686 1,230,811 1,430,054 - Services and Charges 2,305,900 2,887,300 2,870,300 - Lease Payment - 5 - - Materials & Supplies 7,561 20,000 20,000 - Fixed Assets - - - - Internal Service Charges 381,912 251,823 510,176 - Transfers to Other Funds - - - - Total Expenditures/Appropriations: 4,132,059 4,389,939 4,830,530 - Funded Positions:

City Manager 0.25 0.35 0.35 - City Clerk Administrator 0.25 0.25 0.25 - Management Aide 0.25 0.25 0.25 - City Finance Department 0.55 0.65 0.65 - Ex. Assist. to the City Manager 0.25 0.35 - - City H.R. Department 0.80 0.80 0.80 - General Manager 1.00 1.00 1.00 - Administrative Services Manager 1.00 1.00 1.00 - Water Senior Management Analyst - 1.00 1.00 - Water Principal Management Analyst - - - - Water Administration Coordinator 1.00 1.00 1.00 - Asset Management Coordinator 1.00 - - - Water Comm. Outreach Coord. 1.00 - - - Accounting Tech II 1.00 1.00 1.00 - Customer Service Tech II 1.00 - - - Customer Service Tech I 3.00 - - - Water Conservation Specialist - - - - Water Office Assistance 2.00 - - -

14.35 7.65 7.30 - Administration is responsible for the overall day-to-day management of the IWA. Daily management includes the planning, control, direction and evaluation of the Authority's programs and resources. Administration staff researches and prepares recommendations for consideration by the Board on issues facing the Authority. Vested in Administration is the primary responsibility for assuring that Board policies are properly administered. The operating cost of Administration goes towards customer service, conservation, legal services, water resource services, training, professional memberships, policies, procedures, analysis and reporting of goals and outcomes of the agency. Other costs include the Replenishment Assessment Charge paid to the Coachella Valley Water District (CVWD).

Schedule 6
29

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 246 of 680 Indio Water Authority
FY 2023-24
6711 - Admin, Planning & Conservation
Account Actual Actual Actual Budget Proposed Change
Org Code Object Code Description FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Salaries & Benefits
8106711 511008 Regular Pay 787,914 584,170 924,240 831,874 983,920 152,046 8106711 511012 Part-Time Salaries - 24,860 - - - - 8106711 511016 Overtime 634 761 169 - - - 8106711 511024 Call Back 59 - - - - - 8106711 511032 Standby - - - - - - 8106711 512003 Auto Allowance 11,158 9,269 11,707 14,160 12,900 (1,260) 8106711 512005 Uniform Allowance - - - - 943 943 8106711 512009 Communications Allowance 1,755 1,666 1,136 1,140 1,140 - 8106711 512013 Medical Insurance 130,699 100,914 118,526 92,610 94,281 1,671 8106711 511044 Comp/Vacation Cash Outs 11,119 43,549 19,259 - - - 8106711 513004 PERS-EMPLOYER 200,794 192,733 291,664 220,750 265,238 44,488 8106711 514005 Social Security 58,780 46,277 66,256 65,852 67,146 1,294 8106711 512017 Life Insurance 594 400 642 826 788 (38) 8106711 512021 LT Disability 2,876 2,172 3,088 3,599 3,698 99 Subtotal 1,206,382 1,006,772 1,436,686 1,230,811 1,430,054 199,243 Operations
8106711 521056 Legal Services 52,746 51,523 54,940 105,000 105,000 - 8106711 521064 Professional Services 20,480 84,187 94,888 56,000 55,000 (1,000) 8106711 521068 Onther Government Services - - 50,509 - - - 8106711 521088 Water Resource Services 118,105 - 72,491 355,000 365,000 10,000 8106711 521089 RAC Pass-Through Payment 1,239,097 1,379,040 1,481,282 1,582,800 1,582,800 - 8106711 521036 City Payroll Charges 1,206,382 1,006,772 1,436,686 1,230,811 1,430,054 199,243 8106711 521032 Conservation 414,630 446,308 341,263 535,000 500,000 (35,000) 8106711 524028 Training 6,303 2,374 16,646 15,000 29,500 14,500 8106711 540015 Meetings 1,151 2,000 1,078 5,000 15,000 10,000 8106711 531066 Dues & Publications ( Cert) 28,278 29,432 22,211 33,000 45,000 12,000 8106711 524020 Postage & Freight 200 52 163 2,500 25,000 22,500 8106711 524002 Advertising - - - - - 8106711 524024 Rentals & Leases 5 5 - 5 - (5) 8106711 524022 Printing & Reproduction 53 596 455 3,000 3,000 - 8106711 521032 Outreach Activities - - - - - - 8106711 540027 Promotional Activities - 117,526 113,539 95,000 95,000 - 8106711 591003 Contingency 4,787 34,051 56,435 100,000 50,000 (50,000) Total Services & Charges 3,092,216 3,153,866 3,742,586 4,118,116 4,300,354 182,238 8106711 531990 Inventory Over/Short - - - - - 8106711 531033 Office Supplies 13,612 14,533 7,561 20,000 20,000 - Total Supplies 13,612 14,533 7,561 20,000 20,000 - 8106711 581003 Transfer Out - - - - - - Total Transfers - - - - - - Subtotal 3,105,828 3,168,399 3,750,147 4,138,116 4,320,354 182,238 Internal Service
8106711 571003 Risk Management 159,195 159,192 266,580 178,060 177,834 (226) 8106711 571005 Buildings 32,306 38,508 59,808 32,291 232,541 200,250 8106711 571007 Information Technology 15,619 15,888 54,852 40,787 99,031 58,244 8106711 571009 Central Services - - - - - 8106711 571011 Fleet Maintenance 590 671 672 685 770 85 Total Internal Service 207,710 214,259 381,912 251,823 510,176 258,353 Total Expenses 3,313,538 3,382,658 4,132,059 4,389,939 4,830,530 440,591 30

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 247 of 680 Indio Water Authority
FY 2023-2024
6711 - Administration, Planning and Conservation
Org
Code
Object
Code Account Description Comments
Proposed FY
2023-24
Salaries & Benefits
8106711 511008 Regular Pay 983,920
8106711 511012 Part-time Salaries -
8106711 511016 Overtime -
8106711 512003 Auto Allowance 12,900
8106711 512005 Uniform Allowance 943
8106711 512009 Communication Allowance 1,140
8106711 512013 Medical Insurance 94,281
8106711 513004 PERS Employer 265,238
8106711 514005 Social Security 67,146
8106711 512017 Life Insurance 788
8106711 512021 LT Disability 3,698
Subtotal 1,430,054
Services & Supplies
8106711 521056 Legal Services City Attorney 60,000
Legal Services 45,000 105,000
8106711 521064 Professional Services Regulatory Compliance 10,000 Electric Service Study 40,000
Ergonomic Services (Health & Safety) 5,000 55,000
8106711 524020 Postage & Freight 25,000
8106711 540015 Meetings 15,000
8106711 531066 Dues & Publications AWWA 6,700
Assoc. of CA Water Agencies 30,000
WaterReuse Assoc. 8,000
Rotary 300 45,000
8106711 524024 Rentals & Leases
8106711 524022 Printing & Reproduction 3,000
8106711 524028 Travel & Training GM and 3 Other Employees 29,500 8106711 591003 Contingency 50,000
8106711 531033 Office Supplies 10,000
Total Services & Supplies 337,500
Fixed Assets
8106711 581003 Transfer-Out Capital Program Fund 812 0
Total Fixed Assets 0
Internal Service
8106714 571003 Risk Management 177,834
8106714 571005 Building 232,541
8106714 571007 Information Technology 99,031
8106714 571011 Fleet Maintenance 770
Total Internal Service 510,176
ADMINISTRATION TOTAL: 2,277,730
8106711 521089 RAC Charges CVWD RAC (20,000 x $79.14 AF) 1,582,800 8106711 521088 Water Resource Services East Valley Reclamation Authority 25,000 State Water Resource Control Board 90,000
CVRWMG Program Mgmt. & Related Costs 50,000
SNMP Monitoring 100,000

ADMINISTRATION

PLANNING
31

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 248 of 680 SNMP Update 50,000
SGMA Subsidence Study 25,000
Annual SGMA Report 25,000 365,000
PLANNING TOTAL: 1,947,800
8106711 521032 Conservation Program 400,000
10,000
5,000
5,000
5,000
75,000 500,000
8106711 540027 Promotional Activities 10,000
10,000
10,000
50,000
Turf Rebate
Irrigation Upgrade Rebate
Smart Controller Rebate
Toilet Rebate
Washing Machine Rebate
Demonstration Garden -CVHW
Promotional items
Bill Inserts Messaging
School Education Outreach
CV Strategies
Regional Conservation Outreach
Coordination (CV Water Counts) 25,000 105,000
WATER CONSERVATION TOTAL: 605,000
TOTAL EXPENSES 4,830,530

WATER CONSERVATION
32

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 249 of 680 Indio Water Authority
Operating Fund Detail by Division
FY 2021-22
Actual
Total
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Appropriation Category
Fund Group: Water Authority Fund: 810
Budget Unit: Operations Department: 6712
Function: Production
Salaries and Benefits 911,364 958,583 1,031,976 -
Services and Charges 2,386,198 2,493,125 2,507,125 -
Materials & Supplies 202,515 243,500 255,000 -
Fixed Assets 35,612 540,000 540,000 -
Internal Service Fees 232,884 327,752 526,833 -
Transfers to Other Funds - - - -
Total Expenditures/Appropriations 3,768,572 4,562,960 4,860,934 - Funded Positions:

0.50 0.50 0.50 -
- 0.50 0.50

1.00 1.00 1.00 -

3.00 3.00 3.00 -
- 0.50 0.50
- 0.50 0.50
Water Operations Manager
Asset Management Coordinator
Senior Water Treatment Plant Operator
Water Treatment Plant Operator II
Office Assistant
Office Assistant
Water Programs Specialist

0.50 0.50 0.50 -

5.00 6.50 6.50 -
Production is responsible for water treatment, storage, production, pumping, and distribution systems. Responsibilities include maintenance of the water production system including: 20 wells, seven storage tanks, and six booster stations.

Schedule 6
33

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 250 of 680 Indio Water Authority
FY 2023-24
6712 - Production
Account Actual Actual Actual Budget Proposed Change
Org Code Object Code Description FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Salaries & Benefits
8106712 511008 Regular Pay 356,010 401,044 571,081 559,096 558,433 (663) 8106712 511016 Overtime 51,326 46,377 27,480 50,000 50,000 - 8106712 511024 Call Back 6,583 8,254 3,007 10,000 10,000 - 8106712 511032 Standby 33,193 35,051 18,753 50,000 50,000 - 8106712 512005 Uniform Allowance 6,413 6,596 7,072 4,392 8,052 3,660 8106712 512013 Medical Insurance 73,818 86,643 98,504 94,713 128,908 34,195 8106712 511040 Comp/Vacation Cash Out 10,112 35,446 16,532 - - - 8106712 513004 PERS -EMPLOYER 100,930 109,452 119,995 146,788 175,473 28,685 8106712 514005 Social Security 34,094 38,892 46,725 40,862 47,920 7,058 8106712 512017 Life Insurance 387 427 469 702 810 108
8106712 512021 LT Disability 1,341 1,514 1,744 2,030 2,380 350 Subtotal 674,207 769,695 911,364 958,583 1,031,976 73,393 Operations
8106712 521064 Professional Services 253,004 58,002 - 300,000 300,000 - 8106712 521060 Medical & Lab - 31,894 43,623 - - - 8106712 521064 Contract Labor 14,450 - 75,437 150,000 150,000 - 8106712 521068 Outside Government Agencies 23,146 24,185 25,105 6,000 20,000 14,000 8106712 521036 City Payroll Charges 674,207 769,695 911,364 958,583 1,031,976 73,393 8106712 521084 Technology & Data - 45,484 - - - -
8106712 523012 Utilities - Electricity 1,310,044 1,347,039 1,991,326 1,600,000 1,600,000 - 8106712 523042 Sewer 6,886 3,630 - 5,000 5,000 -
8106712 523030 Bldg & Grnds-Pest Control 250 750 - 2,625 2,625 - 8106712 523015 Outside Repair & Maintenance 406,468 193,666 235,370 414,000 414,000 - 8106712 524028 Training 2,372 2,448 11,243 8,000 8,000 - 8106712 531066 Dues & Publications ( Cert) 280 603 255 1,000 1,000 - 8106712 524026 Telephone - - - - - -
8106712 524006 Cell Phones 3,026 4,921 3,840 4,500 4,500 - 8106712 524024 Rentals & Leases - - - 2,000 2,000 -
8106712 531015 Clothing 2,325 - - - -
8106712 531054 Repair Supplies - 19,913 - - - -
Total Services & Charges 2,694,134 2,504,554 3,297,562 3,451,708 3,539,101 87,393 8106712 531060 Small Tools & Equipment 41,370 32,065 33,335 15,000 25,000 10,000 8106712 531054 R&M Supplies 51,116 58,961 49,940 60,000 60,000 - 8106712 531027 Janitorial Supplies 1,200 1,200 1,107 1,500 1,500 - 8106712 531033 Office Supplies 53 66 - 500 500 -
8106712 531030 Motor Fuel, Oil, Lubricant - - 712 3,000 3,000 - 8106712 531009 Chemical, Lab & Medical 95,061 97,082 115,817 160,000 160,000 - 8106712 531057 Safety Equipment 691 2,084 1,604 3,500 5,000 1,500 Total Supplies 189,491 191,458 202,515 243,500 255,000 11,500 8106712 554002 Improvements Non-Building 17,650 343,793 10,610 450,000 450,000 - 8106712 555005 Machinery & Equipment 28,226 32,217 25,002 40,000 40,000 - 8106712 555003 Other Mach & Equip 700 - 50,000 50,000 - Total Fixed Assets 46,576 376,011 35,612 540,000 540,000 - Subtotal 2,930,201 3,072,023 3,535,688 4,235,208 4,334,101 98,893 Internal Service
8106712 571003 Risk Management 67,981 73,356 79,104 145,951 136,097 (9,854) 8106712 571005 Buildings 9,706 17,748 17,748 26,468 177,965 151,497 8106712 571007 Information Technology 6,703 7,320 16,272 33,432 75,789 42,357 8106712 571009 Central Services - - - -
8106712 571011 Fleet Maintenance 105,013 120,036 119,760 121,901 136,982 15,081 Total Internal Service 189,403 218,460 232,884 327,752 526,833 199,081 Total Expenses 3,119,604 3,290,483 3,768,572 4,562,960 4,860,934 297,974 34

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 251 of 680 Indio Water Authority
FY 2023-2024
6712 - Water Production
Org
Code
Object
Code Account Description Comments
Proposed
FY 2023-24
Salaries & Benefits
8106712 511008 Regular Pay 558,433
8106712 511016 Overtime 50,000
8106712 511024 Call Back 10,000
8106712 511032 Standby 50,000
8106712 512005 Uniform Allowance 8,052
8106712 513013 Medical Insurance 128,908
8106712 513004 PERS-Employer 175,473
8106712 514005 Social Security 47,920
8106712 512017 Life Insurance 810
8106712 512021 LT Disability 2,380
Subtotal 1,031,976
Operations
Services & Supplies
8106712 521064 Professional Services Sierra Control - SCADA Consultant 80,000 SBA Resin Specs 40,000
Sampling Treatment - Title 22 (Euro Fins
Eaton) 180,000 300,000
8106712 521064 Contract Labor
Ionex Annual O&M Contract (PO - $300K
Cr6 not issued) 150,000
8106712 521068 Outside Government Agencies AQMD/DDW 20,000 8106712 521036 City Payroll Charges 1,031,976
8106712 523012 Utilities - Electricity IID Electricity 1,600,000 8106712 523042 Sewer 5,000
8106712 523030 Bldg. & Grnds - Pest Control Pest Control 2,625 8106712 523015 Outside Repair & Maint Emergency Pump Repairs (Legend) 80,000 Replace and Repair Locks 2,000
Site Security Upgrades 25,000
A/C Maintenance Repairs 40,000
CiaVal Maintenance 50,000
Facility, Well, Reservoir Maintenance
(Mariposa Landscaping) 62,000
Pump Check 20,000
Calhodic Protection Maintenance 15,000
Electrical repairs (McDonald
Electric/Sulzer Electric) 120,000 414,000
8106712 524028 Travel and Training AWWA Conference 3,000 Scadaoack Training -Senior Operator
Training 3,000
Operator Training 2,000 8,000
8106712 531066 Dues & Publications Operator Certification 1,000 8106712 524026 Cell Phones Verizon Wireless/Cr6 4,500
8106712 524024 Rentals & Leases 2,000
8106712 531060 Small Tools & Equipment 25,000
8106712 531054 R&M Supplies Repair & Maintenance 60,000 8106712 531027 Janitorial Supplies Plant 4 1,500
8106712 531033 Office Supplies 500
8106712 531030 Motor Fuel, Oil, Lubricant 3,000
8106712 531009 Chemical, Lab & Medical Sodium Hypochlorite 80,000 35

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 252 of 680 Salt & Chemicals for Treatment at AA,
Plant 13, and 1E 80,000 160,000
8106712 531057 Safety Equipment 5,000
Total Services & Supplies 3,794,101
Fixed Assets
8106712 554002 Improvements Non Building Paint Supplies/Yard Piping 40,000 SBA Resin Replacement 410,000 450,000
8106712 555005 Machinery & Equipment
A/C, Pump, and Electrical Panel
Replacement 40,000
8106712 555003 Other Machinery & Equipment 50,000 90,000 Total Fixed Assets 540,000
Internal Service
8106712 571003 Risk Management 136,097
8106712 571005 Building 177,965
8106712 571007 Information Technology 75,789
8106712 571011 Fleet Maintenance 136,982
Total Internal Service 526,833
Total Expenditures 4,860,934
36

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 253 of 680 Indio Water Authority
Operating Fund Detail by Division
FY 2021-22
Actual
Total
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Appropriation Category
Fund Group: Water Authority Fund: 810
Budget Unit: Operations Department: 6713
Function: Transmission/Distribution
Salaries and Benefits 2,199,762 2,189,216 2,213,302 - Services and Charges 50,557 94,000 97,000 -
Materials & Supplies 678,592 701,000 701,000 -
Fixed Assets 153,398 732,321 732,321 -
Internal Service Fees 608,148 839,691 1,243,389 -
Transfers to Other Funds - - - -
Total Expenditures/Appropriations 3,690,458 4,556,228 4,987,012 - Funded Positions:

0.50 0.50 0.50 -

1.00 1.00 2.00 -

1.00 1.00 - -

4.00 4.00 4.00 -

2.00 2.00 2.00 -
- 0.50 0.50 -

0.50 0.50 0.50 -

5.00 9.00 9.00 -

4.00 - - -
- 0.50 0.50 -
Water Operations Manager
Water Operations Supervisor
Senior Water Utility Specialist
Senior Water Utility Worker
Water Utility Specialist
Asset Management Coordinator
Water Programs Specialist Water
Utility Worker II Water Utility
Worker I Office Assistant
Office Assistant
- 0.50 0.50 -

18.00 19.50 19.50 -
Water Transmission / Distribution provides customers with high quality potable water. The distribution system requires a team effort of daily operation and regular maintenance to ensure a reliable and consistent water supply. The Water and Transmission/Distribution division maintains and replaces: service lines, valves and fire hydrants. Water Transmission/Distribution also includes meter readers which read approximately 25,000 meters per month using manual and automated meter reading technology.

Schedule 6
37

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 254 of 680 Indio Water Authority
FY 2023-24
6713 - Water Distribution
New Account Account Actual Actual Acuals Budget Proposed Change Org Code Object Code Description FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Salaries & Benefits
8106713 511008 Regular Pay 1,062,210 1,467,755 1,340,135 1,399,668 1,428,645 28,977 8106713 511016 Overtime 114,629 81,198 88,526 - - - 8106713 511024 Call Back 15,562 12,142 7,595 - - - 8106713 511032 Standby 40,216 34,704 11,371 - - - 8106713 512005 Uniform Allowance 22,323 22,904 22,769 17,568 24,156 6,588 8106713 512013 Medical Insurance 228,496 242,084 247,113 267,934 283,812 15,878 8106713 511044 Comp/Vacation Cash Out 30,032 24,644 29,793 - - - 8106713 513004 PERS -EMPLOYER 299,549 337,080 337,136 388,143 368,814 (19,329) 8106713 514005 Social Security 94,225 97,606 109,689 108,412 100,867 (7,545) 8106713 512017 Life Insurance 1,321 1,469 1,336 2,106 1,998 (108) 8106713 512021 LT Disability 3,908 4,452 4,299 5,385 5,010 (375) Subtotal 1,912,471 2,326,038 2,199,762 2,189,216 2,213,302 24,086 Operations
8106713 521068 Other Gov. Agency Services 7,276 13,421 10,664 10,000 10,000 - 8106713 521036 City Payroll Charges 1,912,471 2,326,038 2,199,762 2,189,216 2,213,302 24,086 8106713 523015 Repair & Maintenance 27,726 638 1,101 60,000 60,000 - 8106713 524028 Training 8,524 11,148 21,650 12,000 15,000 3,000 8106713 531066 Dues & Publications ( Cert) 1,472 1,126 1,847 2,000 2,000 - 8106713 524006 Cell Phones - - - - - 8106713 524024 Rentals & Leases 12,091 23,830 15,294 10,000 10,000 - 8106713 524022 Printing & Reproduction - - - - - Total Services & Charges 1,969,560 2,376,200 2,250,319 2,283,216 2,310,302 27,086 8106713 531060 Small Tools & Equipment 30,603 67,808 20,423 25,000 25,000 - 8106713 531075 Water Meters for IWA 58,356 100,000 418,067 150,000 150,000 - 8106713 531075 Water Meters for Developers 107,905 142,139 200,000 200,000 - 8106713 531072 Backflow Supplies 10,513 14,338 16,401 15,000 15,000 - 8106713 531054 R&M Other 233,699 150,599 213,361 300,000 300,000 - 8106713 531033 Office Supplies - - - - - 8106713 531015 Clothing - 7,332 20 - - - 8106713 531057 Safety Equipment 14,158 11,012 10,321 11,000 11,000 - Total Supplies 455,234 493,228 678,592 701,000 701,000 - 8106713 554002 Improvements Non Building 491,954 374,564 152,982 387,321 387,321 - 8106713 555005 Machinery & Equipment 20,427 22,945 245,000 245,000 - 8106713 555003 Other Machine & Equipment 8,086 - 417 100,000 100,000 - Total Fixed Assets 520,466 397,509 153,398 732,321 732,321 - Subtotal 2,945,260 3,266,937 3,082,310 3,716,537 3,743,623 27,086 Internal Service
8106713 571003 Risk Management 245,623 278,772 284,772 379,472 353,852 (25,620) 8106713 571005 Buildings 45,756 67,440 63,888 168,817 462,709 293,892 8106713 571007 Information Technology 24,132 27,828 58,596 86,923 197,052 110,129 8106713 571009 Central Services - - - - - - 8106713 571011 Fleet Maintenance 176,150 201,348 200,892 204,479 229,776 25,297 Total Internal Service 491,660 575,388 608,148 839,691 1,243,389 403,698 Total Expenses 3,436,921 3,842,325 3,690,458 4,556,228 4,987,012 430,784 38

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 255 of 680 Indio Water Authority
FY 2023-2024
6713 - Water Distribution
Org
Code
Object
Code Account Description Comments
Proposed
FY 2023-24
Salaries & Benefits
8106713 511008 Regular Pay 1,428,645
8106713 511016 Overtime -
8106713 512005 Uniform Allowance 24,156
8106713 513013 Medical Insurance 283,812
8106713 513004 PERS-Employer 368,814
8106713 514005 Social Security 100,867
8106713 512017 Life Insurance 1,998
8106713 512021 LT Disability 5,010
Subtotal 2,213,302
Operations
Services & Supplies
8106713 521068 Other Gov Agency Services 10,000
8106713 521036 City Payroll Charges 2,213,302
8106713 523015 Outside Repair & Maintenance
Outside labor, Repairs, Maintenance
including: Specialty Concrete Repairs,
Distribution repairs and Welding. 60,000
8106713 524028 Travel & Training Tri-State and AWWA conferences 8,000 Distribution Operator Training 7,000 15,000 8106713 531066 Dues & Publications Certifications 2,000 8106713 524006 Cell Phones -
8106713 524024 Rental & Leases Sweeper, White Cap, Elms & Hub 10,000 8106713 524022 Printing & Reproduction -
8106713 531060 Small Tools & Equipment Replacement Tools & Equipment 25,000 8106713 531072 Backflow Supplies 15,000
8106713 531075 Water Meters Development Meters 200,000
Meter Change Out Program 150,000
8106713 531054 R&M Other
Repairs for water leaks and breaks-
copper ductile, iron pipe, fittings,
asphalt, base and misc. materials. 300,000
8106713 531033 Office Supplies -
8106713 531057 Safety Equipment
Equipment for safety -CAL/OSHA
Requirements. 11,000
Total Services & Supplies 3,011,302
Fixed Assets
8106713 554002 Improvements Non Building Service Connection Grant 137,321 Emergency Pipeline Repair 200,000
Value Replacement Program 50,000 387,321
8106713 555005 Machinery & Equipment Annual Radio System Payment to City 245,000 8106713 555003 Other Machinery & Equipment Advance Metering -Infrastructure 100,000 Total Fixed Assets 732,321
Internal Service
8106713 571003 Risk Management 353,852
8106713 571005 Building 462,709
8106713 571007 Information Technology 197,052
8106713 571011 Fleet Maintenance 229,776
Total Internal Service 1,243,389
Total Expenditures 4,987,012
39

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 256 of 680 Indio Water Authority
Operating Fund Detail by Division
FY 2021-22
Actual
Total
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Appropriation Category
Fund Group: Water Authority Fund: 810
Budget Unit: Finance Department: 6714
Function: Finance & Customer Service
Salaries and Benefits 831,650 1,100,645 1,176,116 - Services and Charges 600,144 851,300 949,100 - Materials and Supplies - - - - Fixed Assets - - - - Internal Service Fees 192,672 332,398 584,902 - Transfers to Other Funds - - - - Total Expenditures/Appropriations 1,624,466 2,284,343 2,710,118 - Funded Positions:

Manager of Finance & Customer Service - 1.00 1.00 - Finance Manager 1.00 - - - Senior Accountant 1.00 1.00 1.00 - Senior Acounting Tech 1.00 1.00 1.00 - Accounting Tech II 2.00 3.00 3.00 - Accounting Tech I 1.00 - - - Senior Customer Service Tech - 1.00 1.00 - Customer Service Tech II - 3.00 3.00 - Customer Service Tech I - - - -

6.00 10.00 10.00 - The Finance and Customer Service Division establishes new water services, records customer water consumption, generates utility statements, and maintains accurate account records. Responsibilities include: budget preparation and development, accounting , auditing, financial reporting, debt management, and revenue collection.

Schedule 6
40

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 257 of 680 Indio Water Authority
FY 2023-24
6714 - Finance & Customer Service
Account Actual Actual Actual Budget Proposed Change
Org Code Object Code Description FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Salaries & Benefits
8106714 511008 Regular Pay 639,184 693,712 544,804 715,184 747,915 32,731 8106714 511012 Part-Time Salaries 21,583 - - - - - 8106714 511016 Overtime 2,025 8 349 - - - 8106714 511024 Call Back - - - - - - 8106714 511032 Standby - - - - - - 8106714 512005 Uniform Allowance - - - - - - 8106714 512013 Medical Insurance 128,638 129,560 99,919 129,404 158,359 28,955 8106714 511044 Comp/Vacation Cash Out 5,574 8,484 6,146 - - - 8106714 513004 PERS -EMPLOYER 177,885 129,560 138,238 197,551 208,931 11,380 8106714 514005 Social Security 49,844 49,542 39,733 54,708 57,000 2,292 8106714 512017 Life Insurance 840 827 557 1,080 1,080 - 8106714 512021 LT Disability 2,437 2,513 1,905 2,718 2,831 113 Subtotal 1,028,010 1,014,206 831,650 1,100,645 1,176,116 75,471 Operations
8106714 521012 Auditing Services 1,455 15,000 3,920 15,000 7,500 (7,500) 8106714 521064 Consulting Services 5,054 30,000 - 30,000 - (30,000) 8106714 521064 Professional Services 29,750 - 24,720 350,000 400,000 50,000 8106714 521036 Contract Labor 9,437 - - - - - 8106714 521036 City Payroll Charges 1,028,010 1,014,206 831,650 1,100,645 1,176,116 75,471 8106714 521016 Banking Services 238,735 279,537 337,861 200,000 232,800 32,800 8106714 521024 Collection Services 4,861 6,635 4,046 5,000 5,000 - 8106714 524028 Training 1,792 - 769 13,700 22,700 9,000 8106714 540015 Meetings 60 - - 600 600 - 8106714 531066 Dues & Publications ( Cert) 170 600 250 - 500 500 8106714 524020 Postage & Freight 129,833 144,466 146,158 155,000 160,000 5,000 8106714 524002 Advertising 6,523 141 100 10,000 10,000 - 8106714 524022 Printing and Reproduction 53,627 47,308 60,816 62,000 100,000 38,000 8106714 540027 Outreach Activities 5,000 10,000 10,000 10,000 10,000 - 8106714 540990 Bad Debt Expense 92,720 - 11,504 - - - Total Services & Charges 1,607,026 1,547,894 1,431,794 1,951,945 2,125,216 173,271 8106714 531060 Small Tools & Equipment 1,195 4,080 - - - - Total Supplies 1,195 4,080 - - - - Subtotal 1,608,221 1,551,974 1,431,794 1,951,945 2,125,216 173,271 Internal Service
8106714 571003 Risk Management 165,120 161,388 94,920 194,601 181,463 (13,138) 8106714 571005 Buildings 47,143 39,048 21,300 35,291 237,287 201,996 8106714 571007 Information Technology 16,088 16,116 19,536 44,576 101,053 56,477 8106714 571009 Central Services - - - - - 8106714 571011 Fleet Maintenance 49,905 49,542 56,916 57,930 65,099 7,169 Total Internal Service 278,255 266,094 192,672 332,398 584,902 252,504 Total Expenses 1,886,476 1,818,068 1,624,466 2,284,343 2,710,118 425,775 41

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 258 of 680 Indio Water Authority
FY 2023-2024
6714 - Finance & Customer Service
Org
Code
Object
Code Account Description Comments
Proposed
FY 2023-24
Salaries & Benefits
8106714 511008 Regular Pa y 747,915
8106714 511012 Part-time Salarie s -
8106714 512013 Medical Insuranc e 158,359
8106714 513004 PERS Employe r 208,931
8106714 514005 Social Securit y 57,000
8106714 512017 Life Insurance 1,080
8106714 512021 LT Disabilit y 2,831
Subtotal 1,176,116
Services & Supplies
8106714 521012 Auditing Services Audit Services 7,500
8106714 521064 Professional Service Chrome 6 Fee Impact Stud y 100,000 Bonding for Chrome 6 Infrastucture Study 100,000
Water Rate Study (218 Efforts) 100,000
Misc Fee Cost of Service Update 100,000 400,000
8106714 521064 Consulting Services SunGard Modification s 20,000 8106714 521036 City Payroll Charge s 1,176,116
8106714 521016 Banking Services Brinks Pickup Service 6,000 Paypal/BOE/ Superion 1,800
Qrtly Transaction Fees-US Bank 100,000
Monthly Merchant Fees-Credit Cards 125,000 232,800
8106714 521024 Collection Services 5,000
8106714 524028 Travel & Training Tyler Munis Training 4,000 Tyler Connect Staff Training 9,500
Neptune Connect Staff Training 3,300
Webinars, Local seminars or luncheons 3,500
3 CSMFO Annual Conference 2,400 22,700
8106714 540015 Meetings Local Chapter CSMFO Meeting 600 8106714 531066 Dues & Publications 500
8106714 524020 Postage & Freigh t Infosend Water Bill Postage 160,000 8106714 524002 Advertising Bill Inserts & Messaging 10,000 8106714 524022 Printing & Reproduction
After Hours Field work orders, door Tags,
Business Cards, Manual payment Receipts 7,000
Check stock for accounts payable 5,000
Infosend Bill Printing - Regular Bills, Final
Notices, Delinquent Notices, Bill Inserts 88,000 100,000 8106714 540027 Promotional Activitie
s Customer Assistance Program 10,000
Total Services & Supplies 2,125,216
Internal Service
8106714 571003 Risk Managemen t 181,463
8106714 571005 Building 237,287
8106714 571007 Information Technolog y 101,053
8106714 571011 Fleet Maintenanc e 65,099
Total Internal Service 584,902
Total Expenditures 2,710,118
42

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 259 of 680 Indio Water Authority
Operating Fund Detail by Division
FY 2021-22
Actual
Total
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Appropriation Category
Fund Group: Water Authority Fund: 810
Budget Unit: Administration Department: 6715
Function: Information Technology
Salaries and Benefits - - - - Services and Charges 531,546 912,371 660,000 - Materials and Supplies 9,308 19,750 19,750 - Fixed Assets 68,702 60,000 60,000 - Internal Service Fees 224,916 246,440 271,617 - Transfers to Other Funds - - - - Total Expenditures/Appropriations 834,472 1,238,561 1,011,367 - Funded Positions:

No Funded Positions - - - - - - - - Information Technology (IT) Unit was established in FY 2012-13 and is responsible for the administration and coordination of the Authority's computer systems, including the Geographic Information System (GIS), and Supervisory Control and Data Acquisition (SCADA). The IT Unit provides ongoing support for future planning, employee technical training, and coordinates related services with contract consultants. Information systems supported by IT include:
telephones, cell phones, ERICA radio communication system, voice-mail, routers, switches, VPN, and firewalls. IT also maintains internet and intranet connections including the monitoring and security of IWA's computer network data traffic.

Schedule 6
43

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 260 of 680 Indio Water Authority
FY 2023-24
6715 - Information Technology
Account Actual Actual Actual Budget Proposed Change
Org Code Object Code Description FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Salaries & Benefits
8106715 511008 Regular Pay - - - - - -
8106715 511016 Overtime - - - - - -
8106715 512013 Medical Insurance - - - - - -
8106715 511044 Comp/Vacation Cash Out - - - - - -
8106715 513004 PERS -EMPLOYER - - - - - -
8106715 514005 Social Security - - - - - -
8106715 512017 Life Insurance - - - - - -
8106715 512021 LT Disability - - - - - -
Total Payroll - - - - - -
Operations
8106715 521064 Consulting Services - - - 25,000 25,000 - 8106715 521064 Professional Services 12,104 126,555 100,715 457,371 200,000 (257,371) 8106715 521036 Contract Labor - - - 2,000 2,000 -
8106715 521036 City Payroll Charges - - - - - -
8106715 523015 Repairs & Maintenance 1,321 3,618 3,164 13,000 13,000 - 8106715 524028 Training 1,808 5,490 149 10,000 10,000 - 8106715 531066 Dues & Publications ( Cert) - - - - - -
8106715 524026 Telephones 2,549 2,471 2,373 - 5,000 5,000 8106715 524006 Cell Phones 19,659 23,114 19,654 25,000 25,000 - 8106715 524024 Rentals and Leases 68,097 72,207 92,989 80,000 80,000 - 8106715 524022 Printing & Reproduction 3,205 - - - -
8106715 531018 Software Non-Capital 255,638 211,819 312,501 300,000 300,000 - Total Services & Charges 364,382 445,273 531,546 912,371 660,000 (252,371) 8106715 531060 Small Tools & Equipment 30,178 14,981 7,233 19,000 19,000 - 8106715 531033 Office Supplies 391 249 2,076 750 750 -
Total Supplies 30,568 15,230 9,308 19,750 19,750 - 8106715 555005 Machinery & Equipment 58,547 47,053 40,292 40,000 40,000 - 8106715 555011 Computer Equipment 15,687 3,767 28,410 20,000 20,000 - 8106715 555003 Other Machinery & Equipment - - - - - -
Total Fixed Assets 74,234 50,819 68,702 60,000 60,000 - Subtotal 469,184 511,323 609,556 992,121 739,750 (252,371) Internal Service
8106715 571003 Risk Management 457 - - - -
8106715 571005 Buildings 5,546 - - - -
8106715 571007 Information Technology 251,939 252,640 221,880 243,351 268,146 24,795 8106715 571009 Central Services - - - -
8106715 571011 Fleet Maintenance 2,661 3,036 3,036 3,089 3,471 382 8106715 571011 Vehicle Replacement - - - -
Total Internal Service 260,603 255,676 224,916 246,440 271,617 25,177 Total Expenses 729,787 766,999 834,472 1,238,561 1,011,367 (227,194) 44

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 261 of 680 Indio Water Authority
FY 2023-2024
6715 - Information Technology
Org
Code
Object
Code Account Description Comments
Proposed
FY 2023-24
Services & Supplies
8106715 521064 Consulting Services 25,000
8106715 521064 Professional Services Offsite Cloud Backup UN Deployment/Hydraulic Modeling System
Utility Network Implementation 200,000
8106715 521036 Contract Labor Low Voltage Contractor 2,000 8106715 523015 Repair & Maintenance
UPS Maintenance, Wire Repair and
Maintenance 13,000
8106715 524028 Travel & Training
Industry convergences, MISAC Meetings,
Cityworks, Jupper, Cisco Training 10,000
8106715 524008 Cell Phones 25,000
8106715 524026 Internet 5,000
8106715 524024 Rentals & Leases 80,000
8106715 531018 Software Non-Capital
Annual Software Maintenance Departmental
Applications 300,000
8106715 531060 Small Tools & Equipment
Physical Hardware Tools to Repair and Test
equipment (e.g. dial tone devices) Software
tools for trouble shooting systems (Vmware
Apps, etc.) 19,000
Peripherals and Cables
Scanner, Printers, Speakers, Thumb Storage
Drives, Monitor Stands, etc
Computer parts (keyboards, mouse, etc.)
8106715 531033 Office Supplies Miscellaneous 750
Total Services & Supplies 679,750
Fixed Assets
8106715 554002 Improvements Non-Building -
8106715 555005 Machinery & Equipment
Back Haul Radio Upgrades & Replace
SCADA Network Security Implementation 40,000
8106715 Computer Equipment
Desktop Replacements 6,000
Laptops Replacements 14,000 20,000
Total Fixed Assets 60,000
Internal Service
8106715 571003 Risk Management -
8106715 571005 Building -
8106715 571007 Information Technology 268,146
8106715 571011 Fleet Maintenance 3,471
Total Internal Service 271,617
Total Expenditures 1,011,367
45

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 262 of 680 Indio Water Authority
Operating Fund Detail by Division
FY 2021-22
Actual
Total
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Appropriation Category
Fund Group: Water Authority Fund: 810
Budget Unit: Engineering Department: 6716
Function: Engineering
Salaries and Benefits 669,045 943,487 886,894 -
Services and Charges 88,276 137,500 137,500 -
Materials and Supplies 1,691 11,000 11,000 -
Fixed Assets - 25,000 25,000 -
Internal Service Fees 142,560 171,604 267,680 -
Transfers to Other Funds - - - -
Total Expenditures/Appropriations 901,573 1,288,591 1,328,074 - Funded Positions:

Asst. GM of Eng, & Water Resources 1.00 1.00 1.00 -
Senior Engineer 1.00 1.00 - -
Associate Engineer 1.00 1.00 1.00 -
Water Project Construction Manager - - 1.00
Water Operation Inspector II 1.00 1.00 1.00 -
Engineering Techncian II 1.00 2.00 2.00 -
Engineering Technician I 1.00 - - -
Senior Accounting Technician - - - -

6.00 6.00 6.00 -
The Engineering Division is responsible for designing and building water infrastructure improvements to ensure adequate water supply and pressure for the current and future needs of the City of Indio. Water is sampled weekly to ensure water quality and ongoing reporting is completed to outside environmental agencies.

Schedule 6
46

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 263 of 680 Indio Water Authority
FY 2023-24
6716 - Engineering
Account Actual Actual Budget Budget Proposed Change
Org Code Object Code Description FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Salaries & Benefits
8106716 511008 Regular Pay 408,788 462,750 404,437 606,711 528,838 (77,873) 8106716 511012 Part-Time Salaries - - - - - -
8106716 511016 Overtime 3,343 3,121 2,758 - - -
8106716 511024 Call Back 198 596 3,749 - - -
8106716 511032 Standby 7,521 10,534 9,155 - - -
8106716 512003 Auto Allowance 4,500 4,450 2,800 6,000 6,000 - 8106716 512005 Uniform Allowance 2,961 2,979 3,056 1,464 4,392 2,928 8106716 512013 Medical Insurance 69,163 72,984 70,624 114,632 124,626 9,994 8106716 511044 Comp/Vacation Cash Outs 6,510 11,089 10,455 - - - 8106716 513004 PERS-EMPLOYER 114,411 141,023 131,992 166,250 173,144 6,894 8106716 514005 Social Security 30,501 34,673 28,347 45,448 46,892 1,444 8106716 512017 Life Insurance 356 378 321 648 648 -
8106716 512021 LT Disability 1,488 1,813 1,351 2,334 2,354 20 Subtotal 649,740 746,389 669,045 943,487 886,894 (56,593) Operations
8106716 521064 Professional Services 283,836 31,880 15,800 120,000 120,000 - 8106716 521064 Contract Labor 206,897 - - - -
8106716 521068 Outside Gov Agencies 179,640 149,434 68,996 5,000 5,000 - 8106716 521036 City Payroll Charges 649,740 746,388 669,045 943,487 886,894 (56,593) 8106716 524028 Training 10,429 4,084 3,216 8,000 8,000 - 8106716 531066 Dues & Publications ( Cert) 1,177 - 1,000 1,000 - 8106716 524020 Postage & Freight - - 500 500 -
8106716 524002 Advertising 11,001 2,113 - - -
8106716 524022 Printing & Reproduction 160 - 265 3,000 3,000 - Total Services & Charges 1,342,878 933,899 757,322 1,080,987 1,024,394 (56,593) 8106716 531060 Small Tools & Equipment 2,057 300 1,137 5,000 5,000 - 8106716 531033 Office Supplies 80 - 4,000 4,000 -
8106716 531057 Safety Equipment 236 736 555 2,000 2,000 - Total Supplies 2,374 11,000 1,691 11,000 11,000 - 8106716 555005 Non-Building Improvements - - 25,000 25,000 - Total Fixed Assets - - - 25,000 25,000 -
Subtotal 1,345,252 944,899 759,013 1,116,987 1,060,394 (56,593) Internal Service
8106716 571003 Risk Management 136,419 88,032 94,920 116,761 90,731 (26,030) 8106716 571005 Buildings 24,958 21,300 21,300 21,174 118,643 97,469 8106716 571007 Information Technology 13,407 8,784 19,536 26,745 50,526 23,781 8106716 571009 Central Services - - - - -
8106716 571011 Fleet Maintenance 5,964 6,816 6,804 6,924 7,780 856 Total Internal Service 180,748 124,932 142,560 171,604 267,680 96,076 Total Expenses 1,526,000 1,069,831 901,573 1,288,591 1,328,074 39,483 47

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 264 of 680 Indio Water Authority
FY 2023-2024
6716 - Engineering
Org
Code
Object
Code Account Description Comments
Proposed
FY 2022-23
Salaries & Benefits
8106716 511008 Regular Pay 528,838
8106716 511012 Part-time Salaries -
8106716 511016 Overtime -
8106716 512003 Auto Allowance 6,000
8106716 512005 Uniform Allowance 4,392
8106716 512013 Medical Insurance 124,626
8106716 513004 PERS Employer 173,144
8106716 514005 Social Security 46,892
8106716 512017 Life Insurance 648
8106716 512021 LT Disability 2,354
Subtotal 886,894
Services & Supplies
8106716 521064 Professional Services Technical Advisory Eng. Support Svs. 120,000 8106716 521068 Outside Gov. Agencies CA Department of Public Health 5,000 8106716 521038 City Payroll Charges 886,894
8106716 524028 Travel & Training Other Conferences & Training 8,000 8106716 531066 Dues & Publications 1,000
8106716 524020 Postage & Freight Bids, Proposals & Returns 500 8106716 524022 Printing & Reproduction 3,000
8106716 531060 Small Tools & Equipment Engineering Tools 5,000 8106716 531033 Office Supplies 4,000
8106716 531057 Safety Equipment 2,000
Total Services & Supplies 1,035,394
Fixed Assets
8106716 555005 Non-Building Improvements Hydraulic Model Maintenance 25,000 Total Fixed Assets 25,000
Internal Service
8106716 571003 Risk Management 90,731
8106716 571005 Building 118,643
8106716 571007 Information Technology 50,526
8106716 571011 Fleet Maintenance 7,780
Total Internal Service 267,680
Total Expenditures 1,328,074
48

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 265 of 680 Indio Water Authority
Debt Service Fund Detail
FY 2021-22
Actual
Total
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Fund Group: Debt Service Fund: 810
Budget Unit: N/A Department: Water Debt Service
Interest Earnings - - - - Revenue - - - - Transfer-In - - - - Total Revenue - - - - Services and Charges - - - - Principal 2,155,000 2,260,000 2,375,000 - Interest 2,037,997 1,892,113 1,779,113 - Fiscal Agent Expenses 3,909 12,000 12,000 - Transfers to other Funds - - - - Total Expenditures/Appropriations 4,196,906 4,164,113 4,166,113 - Funded Positions:

No Funded Positions
- - - -

Appropriations by Department
On June 2, 2015, the Indio Water Authority (IWA) issued $60,215,000 of Water Revenue Bonds. The 2015 bond issue refunded the outstanding bonds from the 2006 bond issue. In addition to refunding the 2006 bond issue, the 2015 bond issue generated approximately $4.9 million in new proceeds to fund necessary project improvements to insure treatment of Chromium 6 to the required maximium contanment level. The Bonds are paid from IWA net revenues and from certain funds held under the indenture. The Water Authority has an A rating from Standards and Poor's which makes utilizing bond financing to fund large capital projects an efficient method to do so. Bond utilization allows the Water Authority to maintain flexibility in managing cash flow to cover internal and external costs and achieving a smoothing effect on water rates.

Schedule 7
49

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 266 of 680 Indio Water Authority
FY 2023-24
6720- Debt Service
Account Actual Actual Actual Budget Proposed Change
Org Code Object Code Description FY 19-20 FY 20-21 FY 21-22 FY 21-22 FY 23-24 8106720 561003 Principal Expense 1,980,000 2,055,000 2,155,000 2,260,000 2,375,000 115,000 8106720 561006 Interest Expense 2,209,696 2,102,613 2,037,997 1,892,113 1,779,113 (113,000) 8106720 561009 Fiscal Agent Expense 5,906 12,000 3,909 12,000 12,000 - Subtotal 4,195,602 4,169,613 4,196,906 4,164,113 4,166,113 2,000 Total Expenses 4,195,602 4,169,613 4,196,906 4,164,113 4,166,113 2,000 50

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 267 of 680 Indio Water Authority
Fiscal Year 2023-2024 Budget

EQUIPMENT REPLACEMENT

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 268 of 680 Indio Water Authority
Equipment Replacement Fund Detail
FY 2021-22
Actual
Total
FY 2022-23
Final
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Fund Group: Equipment Replacement Fund Fund: 6725
Budget Unit: Administration
Salaries and Benefits - - - - Services and Charges - - - - Materials & Services - - - - Fixed Assets 315,848 500,000 1,200,000 - Internal Service Fees - - - - Transfers to Other Funds - - - - Total Expenditures/Appropriations 315,848 500,000 1,200,000 - Funded Positions:

No Funded Positions - - - - - - - -

Appropriations by Department
Equipment replacement fund is used to fund the replacement of capital assets and equipment The Manager of Fleet Services has identified assets that are in need of replacement.

Schedule 8
51

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 269 of 680 Indio Water Authority
Fiscal Year 2023-2024 Budget

CAPITAL IMPROVEMENTS

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 270 of 680 Indio Water Authority
Capital Project Fund Detail
FY 2021-22
Actual
FY 2022-23
Budget
FY 2023-24
Recommended
Budget
FY 2023-24
Adopted
Budget
Fund Group: Water Capital Program Fund: 812
Budget Unit: Indio Water Authority
Interest Earnings - -
Transfer-In Reveneue 4,171,900 2,610,000 3,995,000 - Reimbursements - - - -
Total Revenue 4,171,900 2,610,000 3,995,000 - Administrative Charges - - - -
Services and Supplies - - - -
Fixed Assets 4,171,900 2,610,000 3,995,000 - Internal Service Transfers - - - -
Transfers to Other Funds - - - -
Total Expenditures/Appropriations: 4,171,900 2,610,000 3,995,000 - Funded Positions:

No Funded Positions - - - -
- - - -
Appropriation Category
The Water Capital Program Fund is used to upgrade, repair, and maintain water system infrastucture. 52

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 271 of 680 Fund 812
FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28
Estimated Beginning Fund Balance -$ -$ -$ -$ -$ Transfer-In from Fund 810 3,995,000 3,475,000 5,175,000 5,450,000 1,950,000 Funded with Bond Proceeds - 4,000,000 8,000,000 8,000,000 8,000,000 Total Available Resources 3,995,000 7,475,000 13,175,000 13,450,000 9,950,000 Plant 4 BPS Upgrade 200,000 - - - -
Plant 2 BPS Replacement 450,000 750,000 1,250,000 2,000,000 - Westward Ho Dr. Stormwater Channel Crossing 100,000 100,000 1,500,000 1,500,000 - Water Facility Building Replacement 200,000 200,000 200,000 200,000 200,000 Well Rehabilitation Program 150,000 400,000 400,000 - - Hexavalent Chromium Well Treatment * 400,000 4,000,000 8,000,000 8,000,000 8,000,000 Plant 1 Interior Aluminum Stairway 400,000 - - - -
Meter Changeout Program 350,000 350,000 350,000 350,000 350,000 Bridge Seismic Connections - - - - -
Bridge and Canal Pipeline Coatings 50,000 50,000 50,000 50,000 50,000 Reservoir Exterior Coatings - - 200,000 200,000 200,000 Reservoir Safety Rails/Outside Stairway 25,000 25,000 25,000 - - Reservoir 4 Flush Cleanout/Manway - - - -
Emergency Intertie Connections 20,000 50,000 50,000 - - Pipeline Replacement Program 1,500,000 1,400,000 1,000,000 1,000,000 1,000,000 Hydrant Replacement Program 150,000 150,000 150,000 150,000 150,000 Total Project Costs 3,995,000 7,475,000 13,175,000 13,450,000 9,950,000 Estimated Ending Fund Balance -$ -$ -$ -$ -$
* Assumes California Mandated Maximum Contaminate Level (MCL) set at 10 ppb.

Indio Water Authority
Capital Improvement Program
Water Capital Program
53 -

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 272 of 680 Fund 812 – FY 23-24 Operating/Rate Revenue Fund
Projects: $3,995,000
Plant 4 Booster Pump Station (BPS) Upgrade
P
roject Location: North-West corner of Avenue 46 and Shields Road Project Scope: Construction Phase – The project will increase Plant 4 Booster Pump Station’s capacity and add a new pump motor. The project does not include building improvements. This project will provide improved operational flexibility and reliability to the Western part of the distribution system.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $200,000. Total Project Budget: $200,000 54

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 273 of 680 Plant 2 Booster Pump Station Replacement
Project Location: North-West corner of Monroe Street and Crown Way

Project Scope: Design Phase – The project will consist of designing a full replacement of the existing booster pump station at Plant 2. The booster pump station is near the end of its useful life . This project will provide reliability and improved fire fl ow capacity and pressure to the distribution system.

Schedule: Fall 2022 – Spring 2025
Budget: FY 23-24: $450,000. Total Project Budget: $4,450,000

55

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 274 of 680 Westward Ho Dr. Stormwater Channel Crossing Pipeline
Project Location: East of Jefferson St., along Westward Ho Drive

Project Scope: Design Phase – The purpose of this project is to install an 18-inch pipeline across the C oachella Storm Water C hannel next to IWA’s Plant 4 reservoir and pump station facility. The existing 10-inch pipeline crossing the channel was exposed during the February 2019 storm events. The purpose of this project is safeguard the systems infrastructure through the storm channel, and improve fi re flow capacity and system reliability in western portion of the distribution system.

Schedule: Fall 2022 – Spring 2026
Budget: FY 23-24: $100,000. Total Project Budget: $3,200,000

56

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 275 of 680 Water Facility Building Replacement
Project Location: Various Locations

Project Scope: Planning Phase – The project will consist on preparing a condition assessment at various locations within the water distribution system in order to assess existing condition and prepare a plan for repairs or replacement.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $200,000. Total Project Budget: $1,000,000

57

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 276 of 680 Well Rehabilitation Program
Project Location: Various Water Production Wells

Project Scope: The purpose of this project is to rehabilitate IWA’s groundwater extraction wells, which includes aquifer zone testing, pump removal, rehabilitation and redevelopment of well, video survey, disinfection, and pump reinstallation. This will extend the operational life of the asset and maintain high production flow rates.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $150,000. Total Project Budget: $950,000

58

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 277 of 680 Hexavalent Chromium Well Treatment
Project Location: Various Production Well site locations throughout the IWA service area Project Scope: The State Water Resources Control Board previously imposed a Maximum Contaminant Level (MCL) for Hexavalent Chromium (Cr6) in 2015. IWA installed wellhead treatment units at three of the City’s groundwater wells to remove Cr 6 and meet the MCL.

The available wellhead treatment for Chromium 6 removal is strong base anion ( SBA) exchange resins and requires a substantial capital and operational investment to operate.

The state rescinded the MCL in May of 2017, and will likely reinstate the MCL in FY 2023- 2024. IWA recommends a total of $400,000 for FY 2023-24 for preliminary design of SBA exchange treatment at multiple wellhead facilities.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $400,000. Total Project Budget is approximately $35 Million.

59

AGENDA ITEM #10.1
City Council/Indio Water Authority Joint Resolution No. 10364 and IWA Re... Page 278 of 680 Plant 1 Interior Aluminum Stairway
Project Location: IWA Plant 1 Reservoir

Project Scope: This project will replace the aluminum interior stairway for the reservoir at plant 1. The new stairway will ensure safe ingress and egress during annual tank inspections.

Schedule: Fall 2023 – Spring 2024
Budget: FY 23-24: $400,000. Total Project Budget is $400,000.

60