Indio City Council
July 19, 2023

AGENDA ITEM #9.3
IWA Warrants from 06.07.2023 thru 07.05.2023 (Rey Trejo, IWA General Man...Page 91 of 968 CHECKNUMBER179371793717938179391794017940179401794117941179411794117941179411794117941179411794117941179411794117941179411794117941179411794117941179411794117941179421794317944179441794417944179441794417945 CHECKDATE06/30/2023698106/30/2023698106/30/202329206/30/2023622506/30/2023783306/30/2023783306/30/2023783306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/202340306/30/2023212506/30/2023694306/30/2023698206/30/2023698206/30/2023698206/30/2023698206/30/2023698206/30/2023698206/30/20235198

VENDORNUMBER
IW AWarrantRegister-Period06/07/23through07/05/23
VENDORNAMEEUROFINSEATONANALYTICALEUROFINSEATONANALYTICALFERGUSONENTERPRISES,LLC.It1350FRONTIERCALIFORNIA,INCHARDY&HARPER,INC.HARDY&HARPER,INC.HARDY8:.HARPER,INC.IMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTIMPERIALIRRIGATIONDISTRICTINFOSEND,INC.LELANDBISHOPMCDONALDELECTRIC,INC.MCDONALDELECTRIC,INC.MCDONALDELECTRIC,INC.MCDONALDELECTRIC,INC.MCDONALDELECTRIC,INC.MCDONALDELECTRIC,INC.NAPAAUTOPARTS Page9of10
ORG810671281067128106712810671581067138106713810671381067128106712810671281067128106712810671281067128106712810671281067128106712810671281067128106712810671281067128106712810671281067128106712810671281067128106712810671481067128106712810671281067128106712810671281067128106712 OBJECT521064521064531054524026554002554002554002523012523012523012523012523012523012523012523012523012523012523012523012523012523012523012523012523012523012523012523012523012523012523012524022524028523015523015523015523015523015523015531054 25,385.0026,100.0051,020.00169.9735.8519.747,872.99146.125,011.5812.3419,696.844,912.9121,390.663,367.095,011.589,747.701,360.82883.9216,687.436,590.29933.2523,495.607,872.9944,873.921,880.482,538.282,572.71222.34330.00412.50330.00330.002,457.542,714.4868.13 FULLACCOUNT810-00-00—6712—OO0-S21064-810-00-00-6712-000-521064-810-00-00—6712—000-531054-810-00-00-6715-000-524026-810-00-00-6713—000-554002-810-00-00-6713-000-554002-810-00-00-6713-000-554002-810-00—00-6712-OOO-523012-810—O0-00-6712-OO0—523012-810-O0—O0—6712—OO0-523012-810-00-00-6712-000-523012-810—00—00-6712-0UO—523012-810-00-00-6712—000-523012-810-00-00-6712—00O—523012—810-00-00—6712—0OO-523012-810-00-00-6712-000-523012-810-00-00—671Z—000-523012-810-00-00-6712-000-5Z3012-810-00-00-6712—000-523012-810-00-O0-6712-000-523012-810-00—00—6712—000-523012-810-00-00-6712-000-523012-810-0O—00-6712—000-523012-810—00-0O—6712-000-523012-810-00-00-6712-000-523012-810-00-00-6712-000-523012-810-00-00-6712-000-52301}810-00-00-6712-000-523012-810-00—00—6712—00O-523012-810—O0-O0-6712-O00—523012-810-00-00-6714-000-524022-810-00-0O—6712-000-524028-810—00-00-6712-0O0—523015-810-00-00-6712-000-523015-810—00-00—6712-000-523015-810-00-00-6712-000-523015-810-00-00-6712-000-523015-810-00-O0—6712—000-523015-1054-

AGENDA ITEM #9.3
IWA Warrants from 06.07.2023 thru 07.05.2023 (Rey Trejo, IWA General Man...Page 92 of 968 CHECKNUMBER179451794517945179451794517945179451794517945179451794517945179451794517945179451794517945179451794517945179451794517945179451794617946179471794717948179491795017950 CHECKDATE06/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023519806/30/2023793406/30/2023793406/30/2023578106/30/2023578106/30/2023649306/30/2023733906/30/20237806/30/202378

VENDORNUMBER
IW AWarrantRegister-Period06/07/23through07/05/23

VENDORNAMENAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSNAPAAUTOPARTSODPBUSINESSSOLUTIONS,LLCODPBUSINESSSOLUTIONS,LLCPAULASSOCIATESPAULASSOCIATESSOUTHCOASTCOPYSYSTEMSTIMMONSGROUPTOPSNBARRICADESTOPSNBARRICADES Page10of10
ORG810671281067138106712810671281067128106712810671281067138106713810671381067128106712810671281067128106712810671281067128106712810671281067128106712810671281067128106712810671281067118106711810671181067168106715810671581067138106713 OBJECT531054531060531054531060531054531060531060531054531054531054531057531054531054531054531054531054531054531054531054531054531054531054531054531054531054531033531033524022524022524024521064524024524024 Approvedby: BrianM.KinderFinanceManager
AMOUNT1,112.477.2959.2722.64102.68140.17658.552.3938.217.118.66258.37258.37258.37258.37258.37258.37258.37258.37258.37258.37258.37258.37605.676.09682.4013.04132.6666.33260.4510,689.00525.00425.00 mmmmmmmmwmmmmmmmmwmmmmmmmmmmmmwmm
$2,437,218.67
FULLACCOUNT810-00-00-6712-000-531054-810-00-00-6713-O00—531060-810-00-00-6712—000-531054-810-00-00-6712-000-531060-810-O0-00-6712-000-531054-810-00-00-6712-000-531060-810-00-00-6712—000-531060-810-00-00-6713-000-531054-810-00-O0-6713-000-531054-810-00-00-6713—O00-531054-810-00-00-6712-000-531057-810-00-00-6712—000-531054-810-O0-00-6712-0O0-531054-810-00-00-6712-000-531054-810-00-00-6712—000-531054-810-00-00-6712-000-531054-810-00-00-6712-000-531054-810-00-00-6712—000-531054-810-00-00-6712-000-531054-810-00-00-6712-000-531054-810-00-00-6712-O00-531054-810-00-00-6712—000-531054-810-00-00-6712-000-531054-810-00-00-6712—000-531054-810-O0-00-6712-000-531054-810—00-00-6711-OOO—531033-810-00-00-6711—O00-531033-810—00-00-6711-00D—524022-810-00—OO-6716—O00-524022-810-00-00-6715-000-524024-810-00-00-6715—000-521064-810-00-00-6713-000-524024-810-00-00-6713—000-524024-

AGENDA ITEM #9.3
IWA Warrants from 06.07.2023 thru 07.05.2023 (Rey Trejo, IWA General Man...Page 93 of 968 City of Indio
City Council
July 19, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Reymundo Trejo, P.E., IWA General Manager
Subject: Authorize the full release of the performance and payment bond and accept the Bill of Sale, Grant of Easement and Warranty bond in the amount of $10,576.50 from Elemento 49 LLC., (Elemento 49), for the Elemento 49 Development Tract No. 36679.

RECOMMENDATION:

That the City Council / Indio Water Authority Board: 1) exonerate the performance and payment bond (HA10103521, $105,765.00) from Elemento 49 LLC for water improvements within Tract No. 36679 2) accept the Bill of Sale and Grant of Easement for water system facilities within Tract No. 36679, 3) and accept the Warranty bond (HA10103521) ($10,576.50) to be released on July 19, 2024 after the one year warranty period.

SUMMARY:

Tract Map No. 36679 is a single family subdivision located near the southwest corner of Avenue 49 and Madison Street. Onsite water improvements for Tract No. 36679 Elemento 49 are complete. All required submittals to the Indio Water Authority (IWA) are complete per the approved plans and water agreement. The developer, Elemento 49 LLC, is requesting the release of the performance and payment bond. The Developer submitted a Bill of Sale, a Grant of Easement and a Warranty bond.

BACKGROUND INFORMATION:

Tract Map No. 36679 is a single family subdivision located near the southwest corner of Avenue 49 and Madison St. On November 17, 2021, the Indio Water Authority (IWA) approved a water improvement bond with Elemento 49 LLC totaling $105,765.00 for the required water improvements within Tract 36679. The water improvements are completed to IWA’s satisfaction. The water improvement bondholder (Elemento 49 LLC) is requesting the exoneration of the original bond (Bond No. HA10103521) and its replacement with a Warranty bond (Bond No. HA10103521). The Warranty bond is set to expire following the completion of the one -year warranty period. The Warranty bond guarantees the developer will fix defective work or material should an issue arise during the warranty period.

The water improvements constructed and being transferred by the Bill of Sale include 875 linear feet of 8-inch ductile iron pipeline, three (3) fire hydrants, nine (9) 1-inch service connections, and one (1) 1-inch irrigation service. The improvements will serve nine (9) single -family residential lots in Tract No. 36679.

AGENDA ITEM #9.4
Authorize the full release of the performance and payment bond and accep... Page 94 of 968 The Grant of Easement is for a portion of parcel number 602 -570-015 as shown on exhibits A and B of attachment C.

Counci City and Indio Water Authority the that recommends Staff Board water accept l the improvements, exonerate the original payment and performance bond, and allow full exoneration of the Warranty bond on July 19, 2024 after the one -year warranty period has elapsed. With the acceptance of the Bill of Sale and Grant of Easement, the completed water improvements within Tract Map No. 36679 will be conveyed to the IWA and recorded by the County of Riverside Recorder’s Office.

ATTACHMENTS:

Attachment 1 - Warranty Bond Elemento 49
Attachment 2 -Bill of Sale Elemento 49 Tract 36679
Attachment 3 - Grant of Easement Elemento 49

APPROVAL(S):

Reymundo Trejo, P.E., IWA General Manager Approved - 28 Jun 2023 Jillian Martins, Assistant City Attorney Approved - 28 Jun 2023 Brian Kinder, Finance Manager Approved - 28 Jun 2023
Bryan H. Montgomery, City Manager Approved - 28 Jun 2023

AGENDA ITEM #9.4
Authorize the full release of the performance and payment bond and accep... Page 95 of 968 WarrantyBondBONDNO.:HA10103521PremiumincludedinPerformanceBondKNOWALLMENBYTHESEPRESENTS:THATwe,Elemento49LLC ,asprmcipai,andHudsonInsuranceCompanv,acorporationorganizedanddoingbusinessunderandbyvirtueofthelawsoftheStateofDelawareanddulylicensedtoconductsuretybusinessintheStateofCalifornia,asSurety,areheldand?rmlybounduntomdioWaterAuthority asObligee,inthesumofTenThousandFiveHundredS _ __($jg)5Z55]) )Dollars,forwhichpayment,wellandtrulytobemade,webindourselves,ourheirs,executorsandsuccessors,jointlyandseverally?rmlybythesepresents.

THECONDITIONOFTHEOBLIGATIONISSUCHTHAT:WHEREAS,theabovenamedPrincipalenteredintoanagreementoragreementswithsaidObligeeto:Elemento49TractNo.36679Waterimprovements.

WHEREAS,saidagreementprovidedthatPrincipalshallguaranteereplacementandrepairofimprovementsasdescribedthereinforaperiodofoneyearfollowingfinalacceptanceofsaidimprovements;NOW,THEREFORE,iftheabovePrincipalshallindemnifytheObligeeforalllossthatObligeemaysustainbyreasonofanydefectivematerialsorworkmanshipwhichbecomeapparentduringtheperiodofoneyearfromandafteracceptanceofthesaidimprovementsbyObligee,thenthisobligationshallbevoid;otherwisetoremaininfullforceandeffect.INWITNESSWHEREOF,thesealandsignatureofsaidPrincipalisheretoaffixedandthecorporatesealandthenameofthesaidSuretyisheretoaffixedandattestedbyitsdulyauthorizedAttomey—in-Factthis28th dayof,||[[33 Elemento49LLC
omcy-in—Fact

AGENDA ITEM #9.4
Authorize the full release of the performance and payment bond and accep... Page 96 of 968 CALIFORNIAALL-PURPOSEACKWLEDGMCIVILCODE1189
Anotarypublicorotherofficercompletingthiscertificateveri?esonlytheidentityoftheindividualwhosignedthedocumenttowhichthiscerti?cateisattachedandnotthetruthfulness,accuracy,orvalidityofthatdocument.StateofCalifornia)CountyofOrange )OnJUN282023beforeme, LisaPellerito,NotaryPublic,personallyappeared VanessaC0Pel3ndName(s)ofSigner(s) whoprovedtomeonthebasisofsatisfactoryevidencetobetheperson(s)whosename(s)is/aresubscribedtothewithininstrumentandacknowledgedtomethathe/she/theyexecutedthesameinhis/her/theirauthorizedcapacity(ies),andthatbyhis/her/theirsignature(s)ontheinstrumenttheperson(s),ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.IcertifyunderPENALTYOFPERJURYunderthelawsoftheStateofCaliforniathattheforegoingparagraphistrueandcorrect.

OPTIONAL------------------------------------------------Thoughtheinformationbelowisnotrequiredbylaw,itmayprovevaluabletopersonsrelyingonthedocumentandcouldpresentfraudulentandreattachmentofthisformtoanotherdocument.DescriptionofAttachedDocumentTypeorTitleofDocument:DocumentDate: NumberofPages:Signer(s)OtherThanNamedAbove:Capacity(ies)ClaimedbySigner(s)Capacity(ies)ClaimedbySigner(s)Signer’sName:VanessaCopelandSigner’sName:Individual _ Individual3CorporateOfficer— Title(s): CorporateOfficer— Title(s)::Partner:JLimitedGeneral Partner:LimitedGeneral7AttorneyinFact _ AttorneyinFactTrustee Trustee_ GuardianorConservatorGuardianorConservatorOther: :Other:SignerIsRepresenting:SignerIsRepresenting:

AGENDA ITEM #9.4
Authorize the full release of the performance and payment bond and accep... Page 97 of 968 BondNumber:HA10103521
l*lwSONPOWEROFATTORNEYKNOWALLMENBYTHESEPRESENTS:ThatHUDSONINSURANCECOMPANY ,acorporationoftheStateofDelaware,withofficesat100WilliamStreet,NewYork,NewYork,10038,hasmade,constitutedandappointed,andbythesepresents,doesmake,constituteandappoint VanessaCopelandofthestateofCaliforniaitstrueandlawfulAttomey(s)-in-Fact,atNewYork,NewYork,eachofthemalonetohavefullpowertoactwithouttheotherorothers,tomake,executeanddeliveronitsbehalf,asSurety,bondsandundertakingsgivenforanyandallpurposes,alsotoexecuteanddeliveronitsbehalfasaforesaidrenewals,extensions,agreements,waivers,consentsorstipulationsrelatingtosuchbondsorundertakingsprovided,however,thatnosinglebondorundertaldngshallobligatesaidCompanyforanyportionofthepenalsumthereofinexcessofthesumofOneHundredandFiveThousandSevenHundredandSixty-FiveDollarsandZeroCentsSuchbondsandundertakingswhendulyexecutedbysaidAttomey(s)-in~Fact,shallbebindinguponsaidCompanyasfullyandtothesameextentasifsignedbythePresidentofsaidCompanyunderitscorporatesealattestedbyitsSecretary.InWitnessWhercof,HUDSONINSURANCECOMPANYhascausedthesepresentstobeofitsSeniorVicePresidentthereuntodulyauthorized,onthis16thdayofNovember,2017atNewYork,NewYork.(Corporateseal) HUDSONINSURANCECOMPANY'r/A. ‘ //Attest..../.. ..i.....~.'{./.«.’.}.......... By... ...3.......................DinaDaskalakis MichaelP.Cifone jI,CorporateSecretary SeniorVicePresident\STATEOFNEWYORKCOUNTYOFNEWYORK.SS.Onthe16thdayofNovember,2017beforemepersonallycameMichaelP.ifonetomeknown,whobeingbymedulysworndiddeposeandsaythatheisaSeniorVicePresidentofHUDSONINSURANCECOMPANY ,thecorporatiothatheknowsthesealofsaidCorporation,thatthesealaffixedtosaidinstrumentissuchcorporateseal,thCorporation,andthathesignedhisnametheretobylikeorder. escribedhereinandwhichexecutedtheaboveinstrument,itwassf?-byorderoftheBoardofDirectorsofsaid ‘ .(NotarialSeal)3*‘____.,_4¢ Quali?c.sauCountyCommissionExpiresDecember10,2021, ~’‘3_.--''CERTIFICATIONsrxmzorNEWYORK"r.,Oz<\4.COUNTYOFNEWYORKYO?‘“\\\\\!"'Hauuu\.|“\TheundersignedDinaDaskalakisherebycerti?es:Thattheoriginalresolution,ofwhichthefollowingisatrueandcorrectcopy,wasdulyadoptedbyunanimouswrittenconsentoftheBoardofDirectorsofHudsonInsuranceCompanydatedJuly27"“,2007,andhasnotsincebeenrevoked,amendedormodi?ed:“RESOLVED,thatthePresident,theExecutiveVicePresidents,theSeniorVicePresidentsandtheVicePresidentsshallhavetheauthorityanddiscretion,toappointsuchagentoragents,orattorneyorattorneys-in-fact,forthepurposeofcarryingonthisCompany’ssuretybusiness,andtoempowersuchagentoragents,orattorneyorattomeys—in-fact,toexecuteanddeliver,underthisCompany’ssealorotherwise,bondsobligations,andrecognizances,whethermadebythisCompanyassuretythereonorotherwise,indemnitycontracts,contractsandcerti?cates,andanyandallothercontractsandundertakingsmadeinthecourseofthisCompany’ssuretybusiness,andrenewals,extensions,agreements,waivers,consentsorstipulationsregardingundertakingssomade;andFURTHERRESOVLED,thatthesignatureofanysuchO?iceroftheCompanyandtheCompany’ssealmaybeaffixedbyfacsimiletoanypowerofattorneyorcerti?cationgivenfortheexecutionofanybond,undertaking,recognizance,contractofindemnityorotherwrittenobligationinthenaturethereoforrelatedthereto,suchsignatureandsealwhensousedwhetherheretoforeorherea?er,beingherebyadoptedbytheCompanyastheoriginalsignatureofsuchofficerandtheoriginalsealoftheCompany,tobevalidandbindingupontheCompanywiththesameforceandeffectasthoughmanuallyaffixed.”THATtheaboveandforegoingisafull,trueandcorrectcopyofPowerofAttorneyissuedbysaidCompany,andofthewholeoftheoriginalandthatthesaidPowerofAttorneyisstillinfullforceandeffectandhasnotbeenrevoked,andfurthermorethattheResolutionoftheBoardofDirectors,setforthinthesaidPowerofAttorneyisnowinforce.WitnessthehandoftheundersignedandthesealofsaidCorporationthis28thdayofJune/ ‘ \,,(Corporateseal) //‘i A/,/‘V'/Ii.r /
I
......DinaDaskalakis,CorporateSecretary
1 By

AGENDA ITEM #9.4
Authorize the full release of the performance and payment bond and accep... Page 98 of 968 indioWaterAuthorityYourwater.OurResponsibility.RecordingRedneétédisyéiIndioWaterAuthorityWhenRecordedReturnTo:SabdiSanchez,CMCCityClerkAdministratorCityofIndio100CivicCenterMallIndio,California92201 (SpaceAbovethisLineforRecorder’sUse)GrantordeclaresthatthisBillofSaleisexemptfromRecordingFeespursuanttoCaliforniaGovernmentCodeSection6103.BillofSaleforWaterSystemsFacilitiesForgoodandvaluableconsideration,receiptofwhichisherebyacknowledged,theundersigneddoesherebytransferandconveytotheINDIOW ATERAUTHORITY ,aCaliforniaJointPowersAgencyorganizedundertheJointExerciseofPowersAct(commencingwithSection6500oftheCaliforniaGovernmentCode),anditssuccessorsandassigns,allright,title,andinterestinandtothewaterinstallation,includingpipelines,valves,serviceconnections,firehydrants,meters,andotherappurtenancestosaidwaterinstallation,constructed,installed,andlocatedinthepropertydescribedbelowandfurtherwarrantsthatthesameisfreeandclearofanyencumbrances.Saidpropertyisdescribedasfollows:Elemento49,Tract36679(PleaseattachdetailedlegaldescriptionofpropertyandwaterfacilitiesbeingtransferredasExhibitA) Executedthis3HadayofMeg,207.3.CompanyorCorporation
Elemento49LLC,aCalifornialimitedliabilitycompanyName:Ey:SalSpeno,itsmanager Br£1,7,, 5/M22CorporateOf?r/AuthorizedSignatoryDate
Allsignaturesmustbenotarized

AGENDA ITEM #9.4
Authorize the full release of the performance and payment bond and accep... Page 99 of 968 YourWater.OurResponsibility.lnd'oWterAuthorit

CALIFORNIAALL-PURPOSEACKNOWLEDGEMENT
ANotaryPublicorotherofficercompletingthiscerti?cateveri?esonlytheidentityoftheindividualwhosignedthedocumenttowhichthiscerti?cateisattached,andnotthetruthfulness,accuracy,orvalidityofthatdocument.

StateofCaliforniaCOUHW0f SS'
OnD€L\g[mots(Dag),beforeme,3:5...»::rH~A.e'sxttdt-GL9,NotaryPublic,personallyappearedSALV ATOREM-|‘\'|I~u:o§P€NuAK.)¢'-SA\—$?ENOwhoprovedtomeonthebasisofsatisfactoryevidencetobetheperson(s)whosename(s)is/aresubscribedtothewithininstrumentandacknowledgedtomethathe/she/theyexecutedthesameinhis/her/theirauthorizedcapacity(ies),andthatbyhis/her/theirsignature(s)ontheinstrumenttheperson(s),ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.IcertifyunderPENALTYOFPERJURYunderthelawsofStateofCaliforniathattheforegoingparagraphistrueandcorrect.

IANJAMESVICKERS°°‘“'“'"'°-2357357§ WITNESSmyhandandofficialseal.NOTARYPUBLIC-CALIFORNIAL05ANGELESCOUNTY-3Mycomm.Exp.MAY22.2025 Thoughtheinformationbelowisnotrequiredbylaw,itmayprovevaluabletopersonsrelyingonthedocumentandcouldpreventfraudulentremovalandreattachmentofthisformtoanotherdocument.

GMD-1
DescriptionofattacheddocumentTitleortypeofdocument:B::u..ot:—_$:-.£.ax.w DocumentDate:
‘
NumberofPages:""‘
"
-<""""_---T‘Signer(s)OtherthanNamedAbove:

AGENDA ITEM #9.4
Authorize the full release of the performance and payment bond and accep... Page 100 of 968 |nd'oWaterAuthoritYourWater.OurResponsibility.

EXHIBITALEGALDESCRIPTION
WaterImprovementslocatedwithinTract36679intheCityofIndio,CountyofRiverside,StateofCalifornia,recordedinBook447,Pages24through26,inclusive,ofMapsintheOfficeoftheCountyRecorderofsaidCounty.

AGENDA ITEM #9.4
Authorize the full release of the performance and payment bond and accep... Page 101 of 968 lndioWaterAuthorityCS_.___;+__?’))Yourwater.OurResponsibility.

RecordingRequestedBy:IndioWaterAuthorityWhenRecordedReturnTo:SabdiSanchez,CMCCityClerkAdministratorCityofIndia100CivicCenterMallIndio,California92201 (SpaceAbovethisLineforRecorder'sUse)APN:602-570-001THRU007,010,011,014&015DTT:$0.00 GRANTOFEASEMENTFORAV ALUABLECONSIDERATION,receiptofwhichisherebyacknowledged,Elemento49,LLC(“Grantor”),herebygrantstoINDIOW ATERAUTHORITYOFTHECITYOFINDIO,apublicbody,corporateandpoliticoftheStateofCalifornia(“Grantee”), Anon-exclusivepermanenteasementtoestablish,constructandmaintainforalltimeaneasementin,over,under,uponandacrossallthatcertainrealpropertysituatedintheCityofIndio,CountyofRiverside,StateofCalifornia(the“EasementArea”),asmorefullydescribedintheattachedExhibitAandasdepictedintheExhibitB,bothofwhichareincorporatedbyreference,togetherwithreasonableaccesstoand?omtheEasementAreatotheextentnecessaryfortheexerciseoftherightsoftheGranteehereunder.ThiseasementshallprovidetotheCityofIndiotherighttoestablishconstructandmaintain,foralltime,publicwaterpipelinesandappurtenancesintheEasementArea.Granteeshallhavetherightto:(1)usetheEasementAreatotemporarilystoreandutilizetools,equipment,materialsandrelatedincidentalsthereontotheextentnecessaryfortheexerciseoftherightsoftheGranteewithintheBasementArea;and(2)makeanyandallexcavationswithintheEasementAreanecessaryfortheconstructionandmaintenanceofwaterlinesandappurtenances.ThisgrantofeasementismadebytheGrantorwiththefullunderstandingandconditionthattheGrantee,byacceptingthisgrant,hastherighttopermanentlyremoveallthingsinorontheEasementAreathatmateriallyinterferewiththepurposesforwhichthiseasementisgranted.ItisagreedbyGrantorthatanystructure,tree,plant,orshrub,ontheEasementArea,whichmateriallyinterfereswiththemaintenanceandusethereof,mayberemovedbyGranteewithin?vedays’noticetoGrantorofGrantee’sintenttodoso.IfduringtheexerciseofitsrightsunderthisGrantofEasementtheGranteedisturbsanyoftheEasementAreaorlandadjoiningtheEasementArea,thedisturbedrealpropertyshallberestored,?lled,leveledandgradedbyGranteeinamannerreasonablyacceptabletobothGrantorandGrantee.

AGENDA ITEM #9.4
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TheGrantofEasementandtherights,covenantsandconditionssetforthinthisdocumentshallrunwiththelandandshallbind,inuretoandbeforthebene?tofGranteeanditssuccessorsandassignsaswellasitsagents,servants,suppliersandcontractors.INWITNESSWHEREOF,theGRANTORhascausedthisGrantofEasementtobeexecutedeffectiveasof[§fa=%§ ,20255.GRANTOR:

By: %/Name:S6_,l\/(V'o~r~c«SglavxoTitle:[\’\Mc_3g,rDate:'5\$‘{(23 Allsignaturesmustbenotarized.

AGENDA ITEM #9.4
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CALIFORNIAALL-PURPOSEACKNOWLEDGEMENT
ANotaryPublicorotherof?cercompletingthiscerti?cateveri?esonlytheidentityoftheindividualwhosignedthedocumenttowhichthiscerti?cateisattached,andnotthetruthfulness,accuracy,orvalidityofthatdocument.

StateofCaliforniaCountyofL525:-r~?e1E‘\.ESOnashelzozz(Date),beforeme,ximqgaeguglgzs,NotaryPublic,personallyappeared$AL\I-A=\‘O__F-ESPENDwhoprovedtomeonthebasisofsatisfactoryevidencetobetheperson(s)whosename(s)is/aresubscribedtothewithininstrumentandacknowledgedtomethathe/she/theyexecutedthesameinhis/her/theirauthorizedcapacity(ies),andthatbyhis/her/theirsignature(s)ontheinstrumenttheperson(s),ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.

SS.

IcertifyunderPENALTYOFPERJURYunderthelawsofStateofCaliforniathattheforegoingparagraphistrueandcorrect. ' IANJAMESVICKERS’ Oornm.No.23578575’~oumueuc~cAurom§ WITNESSmyhandandof?cialseal.LDSwastescommMycomm.Exp.MAY22.2025

SIGNATURE
Thoughtheinformationbelowisnotrequiredbylaw,itmayprovevaluabletopersonsrelyingonthedocumentandcouldpreventfraudulentremovalandreattachmentofthisformtoanotherdocument.DescriptionofattacheddocumentTitleortypeofdocument:C.7.?-4>rI-‘T'OF-T DocumentDate: NumberofPages:'1
_Signer(s)OtherthanNamedAbove:

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THATPORTIONOFPARCEL3OFCERTIFICATEOFCOMPLIANCELOTUNEADJUSTMENTNO.2015-_-07RECORDEDDECEMBER21,2015ASINSTRUMENTNO.2015-0551044OFOFFICIALRECORDS,INTHECITYOFINDIO,COUNTYOFRIVERSIDE,STATEOFCALIFORNIA,ASFILEDINTHEOFFICEOFTHECOUNTYRECORDEROFSAIDCOUNTY ,DESCRIBEDASFOLLOWS:THEWESTERLY20.00FEETOFPARCELB,OFSAIDLOTLINEADJUSTMENTNO.2015-07.EXHIBIT“B"ATTACHEDISHEREBYMADEAPARTHEREOF.SUBJECTTOALLEASEMENTS.RIGHTS-OF-W AY ,ANDCOVENANTS.CONDITIONSANDRESTRICTIONSOFRECORD.THISLEGALDESCRIPTIONANDACCOMPANYINGPLATWEREPREPAREDBYMEORUNDERMYDIRECTION. ’
EXHIBITPREPAREDBY:HEITECCONSULIINGADDRESS:777E.TAHOUIIZCANYON,sum:309PALMSPRINGSCA92262PHONENUMBER:760—340—-9060SCALE:1"=50'H:\PROJ\2021\21011.3\DWG\2‘I0113——EXH|BlTW ATERESMT.dwg

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9%"'/co‘<2

PARCELA
....__.__......_._...—.___...

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ADDRESS:777E.TAHQUITZCANYONSUITE309PALMSPRINGSCA92262PHONENUM_BER:760—340—9060SCALE:1"=50'H:\PROJ\2021\21011.'5\DWG\2101‘I3—EXHIBITW ATERESMT.dwg IIIIII
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AGENDA ITEM #9.4
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City Council
July 19, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Reymundo Trejo, P.E., IWA General Manager
Subject: Approval of the water improvement agreement and performance and payment bonds in the amount of $414,740.25 from K. Hovnanian Communities Inc. for Aguila at Terra Lago, Tract No. 32288, located near the northeast corner of Golf Center Parkway and Terra Lago Parkway.

RECOMMENDATION:

That the City Council/Indio Water Authority Board approve the water improvement agreement with K.

Hovnanian Communities Inc., for Aguila at Terra Lago and accept performance and payment bonds for Tract No. 32288; Provide authorization for the President of the IWA to execute and the Secretary to attest the water improvement agreement and accept the bonds.

SUMMARY:

IWA approved the water improvement plans for Tract No. 32288 on June 21, 2022, in accordance with IWA’s Development Service Procedural Guidelines. The proposed sixty four (64) residential single-family development is located along Terra Lago Parkway near t he northeast corner of Golf Center Parkway and Terra Lago Parkway. K. Hovnanian Communities Inc. submitted the water improvement agreement along with performance and payment bonds to guarantee the related site water improvements. Staff recommends that the City Council/Indio Water Authority Board approve and accept the water agreement and performance and payment bonds.

BACKGROUND INFORMATION:

Aguila at Terra Lago Tract No. 32288 is a single -family development located along Golf Center Parkway near the nor theast corner of Golfcenter Parkway and Terra Lago Parkway. K. Hovnanian Communities Inc., (Developer) is required to complete the onsite water improvements described on Exhibit B of the proposed water improvement agreement, and submit performance and paym ent bonds. The Developer has submitted performance and payment bonds in the amount of $414,740.25 (Bond No. LICX1214970). This agreement and bond guarantees the completion of the improvements.

The water improvements will include 2,573 linear feet of 8-inch ductile iron pipeline, sixty four (64) 1- inch service connections, two (2) 1 -1/2 inch irrigation service connections and seven (7) 6 -inch wet barrel fire hydrants with necessary gate valves.

Staff recommends that the City Council/Indio Water Authority Board approve and accept the water agreement in Attachment A and performance and payment bonds as set forth in Attachment B.

ATTACHMENTS:

Attachment 1 - Water Improvement Agreement Aguila at Terra Lago Tract 32288 AGENDA ITEM #9.5
Approval of the water improvement agreement and performance and payment ... Page 107 of 968 Attachment 2 - Performance & Payment Bond Aguila at Terra Lago Tract 32288

APPROVAL(S):

Reymundo Trejo, P.E., IWA General Manager Approved - 28 Jun 2023 Jillian Martins, Assistant City Attorney Approved - 29 Jun 2023 Brian Kinder, Finance Manager Approved - 29 Jun 2023
Bryan H. Montgomery, City Manager Approved - 30 Jun 2023

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<1 Your Water.Our Responsibility.

Recording Requested By:

Indio Water Authority
When Recorded Return To:

Sabdi Sanchez, CMC
City Clerk Administrator
City of Indio
100 Civic Center Mai!
Indio, California 92201
l£xempt from recordingfeespursuanttoGovt. Cod. Sec. 27383 (Space Above tliisLine forRecorder'sUse)

INDIO WATER AUTHORITY

IMPROVEMENT AGREEMENT
DATE OF AGREEMENT:

NAME OF DEVELOPER: K. Hovnanian Communities, Inc.
(Referredtoas “DEVELOPER”)
NAME OF PROJECT: Aguila atTerra Lago
(Referredtoas “PROJECT or SUBDIVISION”)
TRACT NO.: 32288
TENTATIVE MAP RESOLUTION OF APPROVAL NO.

OR PLANNING APPLICATION NO.: 7068
(Referredtoas “ResolutionofApproval”)
ESTIMATED TOTAL COST OF IMPROVEMENTS: 414.740.25
COMPLETION DATE: 6/31/24
This Agreement ismade and entered intoby and between the Indio Water Authority,a jointpowers authority,hereinafterreferredto as IWA, and the DEVELOPER.

RECITALS
DEVELOPER desiresto constructoff-sitewater improvements forthe extension of itswater mains as well as guarantee the satisfactorycompletion of such work for a project known as the Aguila at Terra Lago
A.
pursuantto theprovisionsofthe SubdivisionMap Act
Development Services Procedural Guidelines,Updated September 2019 Appendix D

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of the Stateof California("SubdivisionLaws'’)and the applicableCity of Indio ordinances and IWA requirements.

Pursuant to ResolutionNo. 7068 ("Resolutionof Approval”),Tentative Parcel ) has been approved, subjectto the SubdivisionLaws and the requirements and conditionscontained in the Resolution of Approval, for propertylocatedat Assessor ParcelNumbers 696-010-013 and 696-010-027 (“PROJECT”) and as furtherdescribed in the legaldescriptionattachedas Exhibit “A”. The Resolution of Approval ison filein the OfficeoftheIWA and isincorporatedintothisAgreement by reference.

B.

Map 32288 (PM
The SubdivisionLaws establishas a conditionprecedenttothe approvalof a final map thatDEVELOPER must have complied with theResolutionof Approval and must complete certainwater improvements,among others,incompliancewith City of Indio(“City”)and IWA standards.

C.

In considerationof thisAgreement and other good and sufficientconsideration, DEVELOPER agrees to enter into thisAgreement and promises to installand complete, at DEVELOPER’S own expense, the off-sitewater improvement work required by IWA in connection with the proposed subdivision. DEVELOPER has secured this Agreement by improvement securityrequiredby the SubdivisionLaws.

D.

Complete improvement plansforthe construction,installationand completion of the improvements describedhereinhave been preparedby DEVELOPER and approved by the IWA Engineer. The improvement plansare on fileinthe Officeof theIWA and areincorporated intothisAgreement by thisreference(“Improvement Plans”).All referencesinthisAgreement to the Improvement Plans shallincludereferenceto any specificationsforthe improvements as approved by the IWA Engineer.

E.

An estimate of the cost of constructionof the improvements according to the Improvement Plans has been made and had been approved by the IWA Engineer. The estimated amount isstatedon Page 1 of thisAgreement.

F.

The City and IWA have adopted standardsforthe constructionand installationof saidimprovements. The Improvement Planshave been preparedinconformance with applicable Cityand IWA standardsineffecton thedateof approvalof theResolutionofApproval.

G.

DEVELOPER recognizesthatby approvalof the finalmap forthissubdivision, the City has conferredsubstantialrightsupon DEVELOPER, includingtherightto sell,lease,or finance lots within the subdivision, and has taken the finalact necessary to subdivide the propertywithinthe subdivision.As a result,the City and IWA willbe damaged to theextentof thecostof installationof the improvements by DEVELOPER’S failuretoperform itsobligations under thisAgreement, including,but not limitedto, DEVELOPER’S obligationto complete constructionof the improvements by thetime establishedinthisAgreement. The City and IWA shallbe entitledto allremedies availableto itpursuantto thisAgreement and the Subdivision Laws in the event of a default by DEVELOPER. It is specificallyrecognized that the determinationof whether a reversionto acreage or rescissionof the SUBDIVISION constitutes H.

Development Services Procedural Guidelines,Updated September 2019 Appendix D

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an adequate remedy for defaultby the DEVELOPER shallbe within the sole discretionof the City.

NOW THEREFORE, in consideration of the recitalsset forth above, DEVELOPER and IWA agree as follows:
1WA Approval of ApplicationforExtension of Water Mains.1.

Pursuantto an applicationmade to IWA by DEVELOPER and in considerationof this Agreement, IWA hereby agreesto extend itswater mains from the presentingexisting mains or allow such an extensionby DEVELOPER subjectto the terms and conditions setforthin thisAgreement.

DEVELOPER’S Obligations to Construct Improvements. DEVELOPER shall:2.

At itssole cost and expense, provide constructionmanagement, construction staking,designof water plansand constructand installthe on-sitepublicwater system improvement togetherwillallotherappurtenancesas setforthinExhibit “B” to thisAgreement (the‘improvements”) based upon preliminaryengineering plansand studiesand theImprovement Planssubmittedto IWA. This description is intended to roughly outlinethe scope of the works and improvements to be designed and constructedin connectionwith thisAgreement. The exact works and improvements comprising the Improvements may change as a resultof site requirements,changes in constructionstandards,geologicconditions,abilityto locateadequatesourceof water pressureand supply,engineeringconstraints,or other factors. The IWA Engineer, in his or her reasonablediscretion,may approve substituteworks and improvements to replacesome or allof the works and improvements setforthin Exhibit “B” to thisAgreement, ifsuch substitute works and improvements would provide the PROJECT servicesof a similar natureto those provided by the works and improvements setforthin Exhibit “B” tothisAgreement.
a.
b. Complete by the time establishedin Exhibit “C” of thisAgreement and at DEVELOPER’S own expense, the Improvements in conformance with the Improvement Plansand the IWA standards.

Constructsuch Improvements infullcompliance with the approved Improvement Plans and the requirementsof thisAgreement, and in accordance with any other applicable IWA or City of Indio requirements and conditions,subject to inspectionand approval by IWA. Such work shallbe undertakenby a qualified California licensed contractor.
c.

Furnish the necessary materials for completion of the Improvements in conformitywith theImprovement plansand IWA standards.
d.

Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

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PrevailingWages. Pursuant to the requirements of Labor Code Section 1720, DEVELOPER shall pay prevailing wages for all work performed for the construction, alteration,demolition, installation,or repair for the Street Improvement Work required by this Agreement. In accordance with the provisionsof Section 1773 of the Labor Code of the Stateof California,the IWA has obtainedthegeneralprevailingrateof perdiem wages and thegeneralratefor holidayand overtimework inthislocalityforeach craft,classification,or type of workman needed to execute under this Agreement from the Director of the Department of IndustrialRelations.These ratesare on filewith the Office of the IWA. Copies may be obtained at cost at the Office of the IWA. DEVELOPER shallpost a copy of such wage ratesat the job siteand shallpay the adopted prevailingwage rate as a minimum. DEVELOPER shall comply with the provisionsof Sections1773.8,1775, 1776, 1777.5,1777.6 and 1813 of the Labor Code and other applicablelaws and regulationswith respectto the payment of prevailingwages. Pursuant to the provisionsof 1775 of the Labor Code, DEVELOPER shallforfeitto the IWA, as a penalty,the sum of $25.00 foreach calendarday, or portionthereof,for each laborer,worker, or mechanic employed, paid lessthan the stipulatedprevailingratesfor any work done under this Agreement, by itor by any subcontractorunder it,inviolationof theprovisionsof the Agreement or in violationof any applicablelaws or regulationspertainingto thepayment of prevailingwages.
e.
f Acquire and dedicate,or pay thecostof acquisitionby IWA, of allrights-of-way, easements,and otherinterestsin realpropertyfor constructionor installationof the Improvements, free and clear of all liens and encumbrances.

DEVELOPER’S obligationsregardingacquisitionby IWA of off-siteright-of- way, easements and otherinterestsin realpropertyshallbe subjectto a separate Agreement between DEVELOPER and IWA. DEVELOPER shall also be responsiblefor obtaining any public or private drainage easements or authorizations to accommodate the PROJECT.

The
Comply with allrequirementsof theResolutionof Approval and any amendments thereto,and with provisionsof the SubdivisionLaws.
g-

3. Acquisition and Dedication of Easement of Right-of-Wav. Ifany of thepublic improvement and land development work contemplated by thisAgreement is to be constructed or installedon land not owned by DEVELOPER, no construction or installation shall be commenced before:

The offerof dedicationto IWA of appropriateright-of-way,easements or other interestinrealproperty,and appropriateauthorizationfrom the propertyowner to allow constructionor installationof the improvements or work, or a.

The dedicationto, and acceptance by, the IWA of appropriateright-of-way, easements,orotherinterestsinrealproperty,asdeterminedby theIWA Engineer, b.
or
Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

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The issuance by a court of competent jurisdictionpursuant to the StateEminent Domain Law of an order of possession. DEVELOPER shallcomply in all respectswith the orderof possession.
c.

Nothing in thisSection 3 shallbe construed as authorizingor grantingan extension of time to DEVELOPER.

Security.DEVELOPER shallatalltimes guaranteeDEVELOPER’S performance of this Agreement by furnishingto IWA, and maintaining,good and sufficientsecurityas requiredby the SubdivisionLaws on forms approved by IWA forthepurposes and inthe amounts as follows:

4. To assure faithfulperformance of thisAgreement regardingsaid improvements in an amount of 100% of the estimatedcostof the improvements;and a.
b. To securepayment to any contractor,subcontractor,persons rentingequipment, or furnishinglabormaterialsfor the improvements requiredto be constructedor installedpursuant to thisAgreement in the additionalamount of 100% of the estimatedcostof the improvements; and
To guarantee or warranty the work done pursuant to thisAgreement fora period of one year following acceptance thereofby IWA againstany defectivework or labor done or defective materials furnished in the additional amount of 10% of the estimatedcostof the improvements.
c.

The securitiesrequiredby thisAgreement shallbe kept on filewith the Office of the IWA. The terms of the securitydocuments referencedhereinare incorporatedintothis Agreement by thisreference. If any securityis replacedby anotherapproved security, the replacement shallbe filedwith the Office of the IWA and, upon filing,shallbe deemed to have been made a partof and incorporatedintothisAgreement. Upon filing of a replacement securitywith the Office of the IWA, the former securitymay be released.

Alterationsto Improvement Plans.5.

Any changes,alterationsor additionsto the improvement plansand specifications or to the improvements,not exceeding 10% of theoriginalestimatedcostof the improvements, which are mutually agreed upon by the IWA and DEVELOPER, shallnot relievethe improvement securitygiven forfaithfulperformance of this Agreement. In the event such changes, alterations,or additionsexceed 10% of the originalestimated cost of the improvements, DEVELOPER shallprovide improvement securityforfaithfulperformance as requiredby Paragraph 4 of this Agreement for 100% of thetotalestimatedcostof the improvement as changed, altered,or amended, minus any completed partialreleasesallowed by Paragraph7 of thisAgreement.
a.

Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

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The DEVELOPER shallconstructthe improvements in accordance with the IWA standardsin effectat the time of adoptionof the Resolutionof Approval. IWA reservesthe rightto modify the standardsapplicableto the PROJECT and this Agreement,when necessary,toprotectthepublichealth,safety,and welfare. b.

Inspection.6.

DEVELOPER shallat alltimes maintain proper facilitiesand safe access for inspectionof the Improvements by the IWA inspectorand to the businessesor residenceswherein any work isinprogress.IWA shallhave the rightto enterany constructionsiteatany time to inspectthework or the progressof constructionof theImprovements thatarethesubjectof thisAgreement. Upon completionof the work the DEVELOPER may requesta finalinspectionby the IWA Engineer,or the IWA Engineer’sauthorizedrepresentative.If the IWA Engineer, or the designated representative,determines that the work has been completed in accordance with this Agreement, then the IWA Engineer shall certifythe completion of the Improvements foracceptanceby IWA. No improvements shall be finallyaccepted unless aspects of the work have been inspectedand determined to have been completed in accordance with the Improvement Plans and IWA and ifapplicableCity standards. DEVELOPER shallbear allcostsof inspectionand certification.The inspectionby IWA of the constructionfor conformance with the Improvement Plans shallnot be deemed to confer liability on IWA ortheCityor otherwiseplacetheresponsibilityforproperlyconstructing and inspectingthe Improvements upon IWA.
a.

IWA is not responsibleand does not own the Improvements untilthey are inspectedand approved and acceptedby IWA and allfeesand chargesassociated with the constructionof the Improvements and/orotherfeesowed by Developer to the IWA are paid infull.Untilsuch time,DEVELOPER isresponsibleforthe Improvements and isliableforalldamage to saidfacilities.The Developer shall indemnify IWA, itsgoverning board, officers,and employees for any and all claimsof any kind relatingthe constructionof the Improvements incurredpriorto the IWA’s acceptance of saidfacilities.
b.

At no time duringconstructionor priortoIWA’s acceptanceof theImprovements constructedby DEVELOPER shallDEVELOPER, itsagents,or employees, populateor use the Improvements forany unauthorizedpurpose,or populatethe Improvements with non-potablewater or any other chemical or substance not authorizedinwritingby IWA.
c.

Releaseof Securities.Subjecttoapprovalby theIWA Board, thesecuritiesrequiredby thisAgreement shallbe releasedas follows:

7. Securitygiven forfaithfulperformance of any act,obligation,work, or agreement shallbe releasedupon the finalcompletion and acceptanceof the act or work, subjecttotheprovisionsofsubsection(b)hereof
a.

Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

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b. The IWA Engineer may release a portion of the securitygiven for faithful performance of improvement work as the improvement progresses upon applicationthereforeby the DEVELOPER; provided, however, that no such release shall be for an amount less than 25% of the totalimprovement security given for faithfulperformance of the improvement work and thatthe security shall not be reduced to an amount less than 10% of thetotalimprovement security given for faithfulperformance untilfinalcompletion and acceptance of the improvement work. In no eventshallthe IWA Engineerauthorizea releaseof the improvement security,which would reduce such securityto an amount below that requiredto guarantee the completion of the improvement work and any other obligationimposed by thisAgreement.

Securitygiven to securepayment to the contractor,hisor her subcontractorsand to personsfurnishinglabor,materialsor equipment shall,six months afterthe completionand acceptanceof thework, be reduced toan amount equal to the total claimed by allclaimantsfor who lienhave been filedand of which notice has been given tothe legislativebody, plusan amount reasonablydetermined by the IWA Engineer to be requiredto assurethe performance of any otherobligations secured by the Security.The balance of the securityshallbe releasedupon the settlementof allclaimsand obligationsforwhich the securitywas given. c.
d. No securitygiven fortheguaranteeor warrantyof work shallbe releaseduntilthe expirationof the warranty periodand untilany claims filedduring the warranty periodhave been settled.As provided inparagraph 12,the warranty periodshall not commence untilfinalacceptanceof allthe work and Improvements by the IWA Board.

The IWA may retainfrom any securityreleased,an amount sufficientto cover costsand reasonableexpenses and fees,includingreasonableattorney’sfees. e.
f Any statuteof limitationswith respectto the obligationsof DEVELOPER shall not apply to any bonds or other forms of securityprovided pursuant to this Agreement. The Surety’sliabilityunder any bonds or other forms of security provided pursuantto thisAgreement shallbe releasedonly upon finalcompletion and IWA’s acceptance of the work required pursuant to thisAgreement. The expirationof any statuteof limitationswith respectto DEVELOPER shallnot bar an actionagainstthe Suretyunder the bond or any otherform of securityprovided pursuantto thisAgreement.

Injury to Public Improvements. Public Property or Public Utility Facilities.

DEVELOPER shallreplaceor have replaced,or repairor have repaired,as thecase may be, all public improvements, public utilityfacilitiesand surveying or subdivision monuments which aredestroyedor damaged becauseof any work under thisAgreement.

DEVELOPER shallbearthe entirecostof replacementor repairsof any and allpublicor public utilityproperty damaged or destroyed by reason of any work done under this Agreement, whether such propertyisowned by the United Statesor any agency thereof, Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

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or theStateof California,or any agency or politicalsubdivisionthereof,or by theIWA or any public or privateutilitycorporationor by any combination of such owners. Any repairor replacement shallbe to the satisfaction,and subjecttothe approval,of the IWA Engineer.

Limitationsof Damages. Untilsuch time as allImprovements requiredby this Agreement isfullycompleted and acceptedby IWA, and IWA authorizesconnectionof allor any partof the PROJECT to IWA’s water system,DEVELOPER shallnot allow or requestpermits foroccupancy of the PROJECT or any portionthereof IWA shallnot, nor shallany officeror employee thereof,be liableor responsiblefor any accident,loss, or damage, regardlessof the cause,happening or occurringto any thirdpartiesinprivity with the DEVELOPER priorto the authorizationby IWA to connect the PROJECT or any unitor portionthereofto IWA’s publicwater system, in accordance with IWA’s rulesand regulations.All such risksshallbe theresponsibilityof and arehereby assumed by DEVELOPER.

9. 10. Permits.DEVELOPER shall,atDEVELOPER’S expense,obtainallnecessarypermits and licenses for the construction and installation of the improvements, give allnecessary notices,and pay allfeesand taxesrequiredby law.

Default of DEVELOPER.

Default of DEVELOPER shallinclude,but not limitedto,DEVELOPER’S failure to timely commence constructionof thisAgreement; DEVELOPER’S failureto timely complete constructionof the Improvements; DEVELOPER’S failureto timely cure any defectin the Improvements; DEVELOPER’S failureto perform substantialconstructionwork for a period of twenty (20) calendardays after commencement of the work; DEVELOPER’S insolvency,appointment of a receiver,or thefilingof any petitioninbankruptcyeithervoluntaryor involuntary which DEVELOPER fails to discharge within thirty (30) days; the commencement of a foreclosureactionagainstthe PROJECT or a portionthereof, or any conveyance in lieuor in avoidance of foreclosure;or DEVELOPER’S failuretoperformany otherobligationunderthisAgreement.
a.
b. The IWA reserves to itself all remedies available to itat law or in equity for breach of DEVELOPER'S obligationsunder thisAgreement. The IWA shall have the right,subjectto thissection,to draw upon or utilizethe appropriate securityto mitigateIWA damages in event of defaultby DEVELOPER. The rightof IWA to draw upon or utilizethe securityisadditionalto and not in lieuof any other remedy availableto IWA. It is specificallyrecognized that the estimated costs and securityamounts may not reflectthe actual cost of constructionor installationof the improvements and,therefore,IWA damages for DEVELOPER’S defaultshallbe measured by thecostof completingthe required improvements. The sums provided by the improvement securitymay be used by IWA for the completion of the Improvements in accordance with the Improvement Plansand specificationscontainedtherein.

Development ServicesProceduralGuidelines,Updated September 2019 Appendix D

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In the event of DEVELOPER’S defaultunder this Agreement, DEVELOPER authorizesIWA to perform such obligationtwenty (20)days aftermailing written notice of defaultto DEVELOPER and to DEVELOPER’S Surety and agrees to pay the entirecostof such performance by IWA.
c.
d. At the sole discretionof IWA, IWA may take over the work and prosecutethe same to completion, by contract or by any other method IWA may deem advisable, for the account and at the expense of DEVELOPER, and DEVELOPER’S Surety shallbe liableto IWA for any excess cost or damages occasioned IWA thereby;and, in such event,IWA, without liabilityforso doing, may take possession of, and utilizein completing the work, such materials, appliances,plantand otherpropertybelongingto DEVELOPER as may be on the siteof thework and necessaryforperformanceof thework.

Failureof DEVELOPER to comply with the terms of thisAgreement shall constituteconsenttothefilingby IWA of a noticeof violationagainstallthe lots in the PROJECT, or to requestthatthe City rescindthe approval or otherwise revertthe SUBDIVISION to acreage. The remedy providedby thisSubsection c is in addition to and not in lieu of other remedies available to IWA.

DEVELOPER agrees thatthe choice of remedy or remedies for DEVELOPER’S breach shall be in the discretion of IWA.
e.
f. IfDEVELOPER failsto perform any obligation,hereunder,DEVELOPER agrees to pay allcostsand expenses incurredby IWA in securingperformance of such obligations,includingcostsof suitand reasonableattorney’sfees.

The failure of IWA to take an enforcement action with respectto a default,or to declare a breach, shall not be construed as a waiver of that default or breach or any subsequentdefaultor breach of DEVELOPER.
o*

12. Warranty. DEVELOPER shallguaranteeor warranty the work done pursuanttothis Agreement fora periodof one year afterfinalacceptanceby the IWA Board of the work and Improvements againstany defectivework or labor done or defective materials furnished.Where certainimprovements are to be constructedin phases or sections,the one year warranty period shallcommence afterIWA acceptance of the lastcompleted improvement. Ifwithinthe warrantyperiodany work or improvement or part of any work or Improvement done, furnished,installed,constructed or caused to be done, furnished,installedor constructedby DEVELOPER failsto fulfillany of the requirementsof thisAgreement or the Improvement Plansand specificationsreferredto herein,DEVELOPER shallwithoutdelayand withoutany costto IWA, repairor replace or reconstructany defectiveor otherwise unsatisfactorypart or parts of the work or structure,
requirement, DEVELOPER hereby authorizesIWA at IWA’s option,to perform the work twenty (20) days aftermailing writtennoticeof defaultto DEVELOPER and to DEVELOPER’S and agrees to pay the cost of such work by IWA. Should the IWA determine thaturgency requiresrepairsor replacementsto be made before DEVELOPER Should DEVELOPER fail to act promptly or in accordance with this Development ServicesProceduralGuidelines,Updated September 2019 Appendix D

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can be notified,IWA may, in its sole discretion,make the necessary repairsor replacement or perform the necessarywork and DEVELOPER shallpay to IWA the cost of such repairs.

13. DEVELOPER Not Agent of IWA. NeitherDEVELOPER nor any of DEVELOPER’S agents or contractorsare or shallbe considered to be agents of IWA in connection with theperformanceofDEVELOPER’S obligationsunderthisAgreement.

Iniuiwto Work. Untilsuch time as the improvements are accepted by IWA, DEVELOPER shall be responsible for and bear the risk of loss to any of the improvements constructedor installed.Untilsuch time as allimprovements requiredby this Agreement are fullycompleted and accepted by IWA, DEVELOPER will be responsiblefor the care,maintenance of,and any damage to such improvement. IWA shallnot,nor shallany officeror employee thereof,be liableor responsiblefor any accident,loss,or damage, regardlessof cause, happening or occurringto the work or Improvements specifiedinthisAgreement priorto thecompletion and acceptanceof the work or improvements. All such risksshallbe the responsibilityof and are hereby assumed by DEVELOPER.

14. 15. Other Agreements. Nothing containedinthisAgreement shallpreclude IWA from expending monies pursuant to Agreements concurrentlyor previouslyexecuted between the parties,or from enteringinto Agreements with other DEVELOPERS for the apportionmentof costsof water and sewer mains, or otherimprovements, pursuantto the provisionsof the IWA ordinance providing therefore,nor shall anything in this Agreement commit IWA of any such apportionment.

16. DEVELOPER’S OBLIGATION TO WARN PUBLIC DURING CONSTRUCTION.

Untilfinalacceptanceof the Improvements, DEVELOPER shallgive good and adequate warning to the public of each and every dangerous condition existent in said improvements and will take all reasonable actionsto protectthe public from such dangerous condition.

17. Vestingof Ownership. DEVELOPER shallpromptlydedicateor grantto IWA, without charge,allrights,rights-of-way,or otherpropertyinterestsnecessarytoIWAs ownership and controlof theImprovements to be constructedpursuantto thisAgreement, which are on propertyowned or controlledby DEVELOPER. Upon acceptance of the work on behalf of IWA and recordationof the Notice of Completion, ownership of the improvements constructedpursuantto thisAgreement shallvestin IWA. DEVELOPER shallexecuteany documents toeffectuatethisprovision.

FinalAcceptanceof Work. Acceptanceofthework on behalfof IWA shallbe made by the IWA Board upon recommendation of the IWA Engineer afterfinalcompletion and inspectionof all improvements. The IWA Board shall act upon the Engineer’s recommendation withinthirty(30)days from thedatethe IWA Engineer certifiesthatthe work has been finallycompleted, as provided herein,or at such other time deemed reasonable.Such acceptance shallnot constitutea waiver of defectsby IWA.

18. Development ServicesProceduralGuidelines,Updated September 2019 Appendix D

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19. Indemnitv/Hold Harmless. IWA or any officeror employee thereofshallnot be liablefor injury to persons or property occasioned by reason of the acts or omissions of DEVELOPER, its agents, or employees in the performance of this Agreement.

DEVELOPER agrees to defend, indemnify,and hold harmless IWA, itsofficialsand employees from any and allclaims,demands, causes or action,liabilityor lossof any sort,because of, or arisingout of, acts or omissions of DEVELOPER, itsagents or employees in the performance of thisAgreement, includingallclaims,demands, causes of action,liability,or lossbecause of,or arisingout of,inwhole or inpart,the designor constructionof the Improvements. This indemnificationand agreement to hold harmless shallextend to injuriesto persons and damages or taking of propertyresultingfrom the design or constructionof saidSUBDIVISION, and the Improvements as providedherein, and inaddition,to adjacentpropertyowners as a consequence of thediversionof waters from the design or constructionof public drainage systems, streets,and other public improvements. Acceptance by the TWA of the Improvements shallnot constitutean assumption by the IWA of any responsibilityfor the design or constructionof the SUBDIVISION or the Improvements pursuantto the approved Improvement Plans or map, regardlessof any negligentaction or inactiontaken by the IWA in approving the plans,unlessthe particularimprovement design was specificallyrequiredby IWA over writtenobjectionby DEVELOPER submitted to the IWA Engineer before approval of the particularimprovement design, which objection indicatedthat the particular improvement design was dangerous or defectiveand suggestedan alternativesafe and feasibledesign. After acceptanceof the Improvements, the DEVELOPER shallremain obligatedtoeliminateany defectindesignor dangerousconditioncausesby thedesignor construction defect, however DEVELOPER shall not be responsible for routine maintenance. Provisionsof thisparagraphshallremain in fullforceand effectfor ten years following the acceptance by the IWA of Improvements. It is the intentof this actionthatDEVELOPER shallbe responsibleforallliabilityfordesignand construction of the Improvements installedor work done pursuantto thisAgreement and thatIWA shall not be liablefor any negligence,nonfeasance, misfeasance, or malfeasance in approving,reviewing,checking,or correctingany plansor specificationsor inapproving, reviewing,or inspectingany work or construction.The improvement securityshallnot be requiredtocover the provisionsof thisparagraph.

Sale or Dispositionof Project.Sale or otherdispositionof thispropertywillnot relieve DEVELOPER from the obligationssetforthherein. IfDEVELOPER sellsthe property or any portion of the property within the PROJECT to any other person, the DEVELOPER may requesta novationof thisAgreement and a substitutionof security.

Upon approvalof the novationand substitutionof securities,the DEVELOPER may requesta releaseor reductionof the securitiesrequiredby thisAgreement. Nothing in the novationshallrelievethe DEVELOPER of the obligationsunder thisAgreement for thework or improvement done by DEVELOPER.

20. Time of the Essence. Time is of the essence of this Agreement.21.

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22. Time for Completion of Work/Time Extension,
constructionof the improvements requiredby thisAgreement in accordance with the scheduleof performance attachedas ExhibitC heretoand incorporatedherein(‘'Schedule of Performance”)- The IWA, in his or her sole discretion,may authorizeacceptanceof individualImprovements to accommodate phasing of PROJECT development; provided, however, thatproduction,storageand transmissionneeds must be complete and adequate for each phase of PROJECT development before they are considered for acceptance. In no instancewillwater servicebe provide by IWA to the PROJECT, or any partor phase thereof,without correspondingsewer service.IWA willnot approve or accept any on site improvement, or permit any connection to the Improvements, until all related improvements have been completed and accepted by IWA. In the event good cause existsas determined by the IWA Engineer,thetime forcompletionof the improvements hereunder may be extended. The extensionshallbe made by writingexecuted by the IWA Engineer. Any such extensionmay be grantedwithoutnoticeto DEVELOPER’S Suretyand shallnot affectthevalidityof thisAgreement or releasethe Surety or Sureties on any securitygiven for thisAgreement. The IWA Engineer shallbe the sole and final judge as to whether good cause has been shown to entitleDEVELOPER to an extension.

Delay, otherthan delay inthe commencement of work, resultingfrom an actof IWA, or 'by an act of God’, which DEVELOPER, could not have reasonableforeseen,or by storm or inclementweather which preventthe conductingof work, and which were not caused by or contributedto by DEVELOPER, shallconstitutegood cause for an extensionof time for completion. As a conditionof such extension,the IWA Engineer may requireDEVELOPER to furnishnew securityguaranteeingperformance of this Agreement as extended in an increased amount as necessary to compensate for any increaseinconstructioncostsas determined by the IWA Engineer.

DEVELOPER shall complete
Legal Responsibilities.The DEVELOPER shallkeep itselfinformed of alllocal.State and Federal Laws and regulationswhich in any manner affectthoseemployed by itor in any way affectthe performance of itsobligationspursuant to this Agreement. The DEVELOPER shallatalltimes observe and comply with allsuch laws and regulations.

The IWA, and itsofficersand employees, shallnot be liableat law or in equity occasioned by failureof the DEVELOPER to comply with thissection.

23. No Vesting of Rights. Performance by DEVELOPER of thisAgreement shallnot be construed to vest DEVELOPER’S rightswith respectto any change in any capacityor servicefeeor regulationof IWA.

24. Non-disturbance of Maps and Obligations.This Agreement does not rescind,replace,or otherwiseaffectany obligationthatthe DEVELOPER may have under any map recorded pursuant to the Subdivision Laws to complete the design and constructionof any improvements,nor does italterany obligationtotheDEVELOPER may have under any such map to dedicateor otherwisetransferany realpropertyor improvements to IWA or to any otherpublicentity.Performance by DEVELOPER of thisAgreement shallnot be construedto vestDEVELOPER’S rightswith respectto any change in any capacityor servicefee or regulationof IWA.

25. Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

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26. Assignment. This Agreement may not be assigned by DEVELOPER in whole or in part without the priorwrittenconsent of the IWA. If assignedby DEVELOPER pursuant hereto,thisAgreement shallapply to bind and inureto the benefitof the Partiesand their respectivesuccessorsand assigns.

Non-Liability of Officials and Employees of IWA. No official,representative,agent, attorney,consultant,or employee of IWA shallpersonallybe liableto the DEVELOPER in theevent of any defaultby IWA under the terms of thisAgreement.

27. Notices. Ail noticesrequiredor provided for under thisAgreement shallbe in writing and deliveredinpersonor sentby mail,postageprepaidand addressedasprovidedinthis Section. Notice shall be effective on the date it is deliveredinperson,or,ifmailed,on the date of depositin the United StatesMail. Notices shallbe addressed as follows unlessa writtenchange of addressisfiledwith the IWA:

28. Notice to IWA:

Indio Water Authority
83-101 Avenue 45
Indio,California92201
Notice to DEVELOPER: K Hovnanian Communities, Inc. Attn:Amy Williams 1260 Corona Pointe Court, Suite 301
Corona, CA 92879
Severability.The provisionsof thisAgreement are severable. If any portionof this Agreement is held invalidby a court of competent jurisdiction,the remainder of the Agreement shallremain in fullforce and effectunless amended or modified by the mutual consentof theparties.

29. Captions. The captionsof thisAgreement are for convenience and referenceonly and shall not define, explain, modify, limit,exemplify, or aid in the interpretation, constructionor meaning of any provisionsof thisAgreement.

30. Litigationor Arbitration. If suit,or arbitrationis brought to enforce the terms of this Agreement, the prevailingparty shallbe entitledto litigationcosts and reasonable attorney’sfees.

31. Governing Law; Venue. This Agreement and any disputearisinghereunder shallbe governed by and interpretedin accordance with the laws of the Stateof California,with venue in RiversideCounty SuperiorCourt.

32. Amendment. This Agreement may be amended or modifiedonly by a writteninstrument approved and signed by the Parties.

33. Development ServicesProceduralGuidelines,Updated September 2019 Appendix D

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No Third-PartyBeneficiaries.No person or entityshallbe deemed to be a third-party beneficiaryhereofand nothinginthisAgreement (eitherexpressor implied)isintended to conferupon any person or entity,otherthan IWA and the DEVELOPER, any rights, remedies,obligations,or liabilitiesunder or by reason of thisAgreement.

34. Severability.The provisionsof thisAgreement are severable.Ifany portionof this Agreement isheld invalidby a courtof competent jurisdiction,and the intent,rightsand obligationsof the Parties hereunder remain intactwithout substantialchange, the remainder of the Agreement shallremain in fullforce and effectunless amended or modifiedby themutualconsentof theparties.

35. Incorporationof Recitals.The Recitalsto thisAgreement are hereby incoiporatedinto the terms of thisAgreement.

36. EntireAgreement. This Agreement constitutesthe entireAgreement of the partieswith respectto the subjectmatter. All modifications,amendments, or waivers of the terms of thisAgreement must be in writingand signed by the appropriaterepresentativesof the parties.InthecaseoftheIWA, theappropriatepartyshallbe theIWA Manager.

37. [Signaturescontinuednext page]
IN WITNESS WHEREOF, thisAgreement isexecuted by IWA, by and through itsMayor Development ServicesProceduralGuidelines,Updated September 2019 Appendix D

AGENDA ITEM #9.5
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.<\w>
A notarypublicorotherofficercompletingthiscertificateverifiesonlytheidentityoftheindividualwho signedthedocument to which thiscertificateisattached,and not the truthfulness,accuracy,orvalidityofthatdocument.

State of California
RiversideCounty of
Amv R. \A/illiams,Notary Publicbefore me.On
Here Insert Name and Title of the OfficerDate
Steve Scherbarthpersonally appeared
Name(s) of Signer(s)
who proved to me on the basis of satisfactoryevidence to be the person(^whose namefs)is/aresubscribed to the within instrument and acknowledged to me that he/sbe/theyexecuted the same inhis/ber/tbetr authorizedcapacity(+es),and thatby his/ber/tbetrsignature(s)on the instrumentthe person(s),orthe entity upon behalf of which the person(s)acted, executed the instrument.

Icertifyunder PENALTY OF PERJURY under the
laws of the State of Californiathat the foregoing
paragraph istrue and correct.

WITNESS my hand and officialseal.
1V AMY R. WILLIAMS
NotaryPublic●California|ySf) RiversideCounty iCommission #2301191 My Comm. ExpiresAug12,2023
I
Signature
SignatureofNotaryPublicPlace Notary Seal and/or Stamp Above

OPTIONAL
Completing thisinformationcan deter alterationof the document or fraudulent reattachment of this form to an unintended document.

DescriptionofAttachedDocument /7 ) w ^
TitleorTypeofDocument:/ ^ c^/
Document Date: Numberof Pages:

Signer{s)Other Than Named Above:

Capacity(ies)Claimed by Signer(s)
Signer’sName:
□ Corporate Officer- Title(s):
□ Partner - □ Limited □ General
□ Individual
□ Trustee
□ Other:

Signer isRepresenting:

Signer’s Name:
□ Corporate Officer- Title(s):
□ Partner - □ Limited □ General
□ Individual
□ Trustee
□ Other:

Signer isRepresenting:
□ Attorney in Fact
□ Guardian or Conservator
□ Attorney in Fact
□ Guardian or Conservator
©2019 National Notary Association

AGENDA ITEM #9.5
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DEVELOPER INDIO WATER AUTHORITY
K. Hovnanian Communities, Inc.

Name of Organization Presidentof IndioWater Authority
Steve Scherbarth,Area President
ATTEST:

Secretary

APPROVED AS TO FORM
General Counsel
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EXHIBIT A

LEGAL DESCRIPTION
In the City of Indio,County of Riverside,Stateof California,being a portionof Lot “BB” of TractMap No. 31601-1 as shown by Map on fileinBok 363, Pages 17 through31, inclusiveof Maps intheofficeof the County Recorder of saidCounty, lyingwithingthenorthwestquarterof Section18,Township 5 South,Range 8 East,San BernardinoMeridian.

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EXHIBIT B

SCOPE OF WORK FOR IMPROVEMENTS
Installwater improvements per approved plansforTractMap No. 32288, TerraLago, dated 6/21/2022. Plans on file at IWA offices.

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EXHIBIT C

SCHEDULE OF PERFORMANCE
Start:Approximately 8/1/2023
Completion: Approximately 8/31/2024
Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

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Engineer's EstimateTract No. 32288
Pnqect Aguila, Indio

ESTIMATED
QUAKTirr
rrat

UNIT UNIT COST AUOAMTITEM
NO.

Water Improrananfa
IF 2.573 S5.CQ 'Mf.51S.H31 B'DJ.P.Waartre
EA 18 1.1X.EB 13,800002 rCateVafvE
EA 6 HX3.0Q 4,80Cj}03 6**£fTee

4.EOD.CX3stanoam fireH^asnt Assy. (TKiludee&e. semce, ano valves] EA 31,500.004 EA 64 1.EODJ» %,Doaoo5 3'4" v;ater ueer */ r Service
EA 2 axi.ai 1,K)0J106 B'jas" Sera
EA s 600.03 ZSOCiMO7 B*x22 1/2'Beno
2 400.0]8 Remove ex^og S’ Bind Flar^ EA 803430
EA 660.01 1,O)C0G9 Bill i.'4*sena
EA 2,5031^10 r AirVacuum and AirRelease/AsemUy ZSOOOO
r Bow cfTAseerrCii'y EA 2 1.60D.DC 3,600.0011
12 r migOTn Meier 1.6*Service EA 2.HX3.DG 2.2QDHQ
SUbTotM 307.215.00
LS 1 3a721.50 30,721.50COMTBIGeMCr [10^]
L3 1 30,721.50 30,72130PROFESSIONAL CONTIMGEHCy (10%)
ADWHI3TRATIVE COHTtNGEMCY (15%) L5 46,062.26 45,062.25
TOTAL 414,74aj2S
Michael Baker

INTERNATIONAL
Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

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WATER AGREEMENTS AND RELATED TEMPLATE FORMS
Instructions:

Customer information should be completed, and pertinent boxes should be checked for documents submitted to IWA.

[email protected].

Completed documents can be submitted to
Applicant Name:

Phone #:

K. Hovnanian Communities, Inc.
951.496.6022
Email Address: [email protected]
Project Name: Aguila at Terra Lago
Project Address:

Tract No.: T32288
Phase & Lot No.:

Water Improvement Procedure Checklist
OfficialBoard Approval Documents
Customer
Comments
IWA
□ □ IWA Improvement Agreement
Engineer'sOpinion of ProbableCost
Payment Bond (Labor and Material)
Performance Bond
□ □
□ □
□ □
Pre-Construction
Water Bond Release Procedure Form
Shop Drawing SubmittalReview Form
□ □
□ □
Project Completion
Bill of Sale□ □
IWA Easement Templates□ □
Customer Signature: Date:

Development ServicesProceduralGuidelines,Updated September 2019 Appendix D

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LICX1214970Bond No.

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the IndioWater Authority(“PublicAgency”), has awarded to (“Principal”), K. Hovnanian Communitie.s Iiic.,1260 Corona PointeCouit, Suite301, Corona, CA 92879 (Name and address of Conlraclor)
a contract(the “Contract”),which is incoiporatedherein by thisreference,for the work described as follows:

Aguilaal'I'ciraLago,'IVactH322HH - Water Bonds
WHEREAS. Principalisrequiredunder the tenns of the Contractto filea good and suffieient performance bond with the PublicAgency forthe faithfulperfonnance of the Contract.

NOW, Ti:iEREFORE, we, the undersignedPrincipal,and
Lexon InsuranceCompany, 12890 Lebanon Road, Mount Juliet,TN 37122 (Name and addressof Surely)
(“Surety”)a duly admitted suretyinsurerunder the laws of theStateof California,as Surety,are held and fimily bound unto the Public Agency in the penal sum of uuimii) ( ) (ulc rcimi ouUl uiis
amount being not lessthan one hundred percent(100%) of the totalContractprice,in lawful money of theUnitedStatesof America, forthepayment of which sum welland trulyto be made, we bind ourselves, our heirs, executors, administrators,successors,and assigns,jointlyand severally,firmlyby thesepresents.
ruui HunclrCu ruliltccu ^T? i 1. f _
*Thousand Seven Hundred Fortyand 25/100
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal.

UlO* llS-^1 Ui
1+0
1 to IIVIIO, oiiclu Hi oil +U1 /A +. .OttlllO LKJOi aooigiio, oro Uil tlllilgo
and abide by, and well and trulykeep and perfonu allthe undertakings,terms, covenants, conditionsand provisionsintheContractand any alterationthereofmade asthereinprovided,on the Principal'spart to be kept and performed, allwithin the time and in the manner therein specified,and in allrespectsaccordingto theirtrueintentand meaning, and shallindemnifyand hold harmlessthe PublicAgency, itsofficers,agents,employees,and othersas thereinprovided, thenthisobligationshallbecome nulland void;otherwise,itshallbe and remain infullforceand effect.

In casesuitisbroughtupon thisbond. Suretyfurtheragreestopay,inadditiontothePenalSum, allcostsand reasonableexpenses and fees,includingreasonableattorneys’fees,incurredby the PublicAgency insuccessfullyenforcingsuch obligation,alltobe taxedas costsand includedin anv iudument rendered.V ^ C*
Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

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FURTHER, the Surety,for value received,hereby stipulatesand agrees that no change, extension of time, alteration,addition or modification to the temis of the Contract,or of the work to be perfonned thereunder,or the specificationsfor the same, shallin any way affectits obligationsunder thisbond, and itdoes hereby waive noticeof any such change, extensionof time, alteration,addition or modification to the terms of the Contract or to the work or to the specificationsthereunder.Suretyhereby waives theprovisionsofCaliforniaCivilCode 2845 and 2849. The Cityistheprincipalbeneficiaryofthisbond and has allrightsof a partyhereto.

IN WITNESS WHEREOF, two (2)identicalcounterpartsof thisinstrument,each of which shall forallpurposes be deemed an originalhereof,have been dulyexecutedby Principaland Surety, on thedatesetfonh below,thename of each corporatepartybeingheretoaffixedand these presentsdulysignedby itsundersignedrepresentative(s)pursuanttoauthorityofitsgoverning body.

April 18,2023Dated:

SuretyPrincipal'
K. Hovnanian Communities Inc. Lexon Insurance Company
12890 Lebanon Road1260 Corona Pointe Court, Suite301
Corona, CA 92879 Mount Juliet,TN37I2,
By. By: -L
(Signature) (Signature)
fivejxPre3id&y)t D. Garcia,Attomey-In-Fact
(Title)(Title)
(Seal) (Seal)
Thisbond must he executedinduplicateand dated,allsignaturesmust he notarized,and evidenceoftheNote:
authorityofany person signingas attorney-in-factmust he attached.

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ACKNOWLEDGMENT
A notary public or other officercompleting this
certificateverifiesonly the identityof the individual
who signed the document to which thiscertificateis
attached, and not the truthfulness,accuracy, or
validityofthatdocument.

State of California
County of Riverside
J Trudeau, Notary Public
Afnl a£>a■^)On before me,
(insertname and titleof the officer)
personally appeared
who proved to me on the basis of satisfactoryevidence to be the person(-s)whose name(s) is/afe subscribed to the withininstrument and acknowledged to me that he/she/tfeeyexecuted the same in his/her/theirauthorized capacity(te^,and that by his/her/theirsignature^ on the instrument the person(s),or the entityupon behalf of which the person(s)-acted, executed the instrument.

Icertifyunder PENALTY OF PERJURY under the laws ofthe State of Californiathatthe foregoing paragraph istrue and correct.

J.TRUDEAU P
\ NotaryPublic●California^RiversiceCounty >
I Commission^2390337 r
Myfomm.ExpiresJan12.20^f
WITNESS my hand and officialseal.
(Seal)Signature

AGENDA ITEM #9.5
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A Notaiy Publicor otherofficercompleting thiscertificateverifiesonly the identityof the individualwho signed the document to which thiscertificateisattached,and not the truthfulness, accuracy, or validityof thatdocument.

State of California
County of Los Angeles
18 2023 before me, Ethan Spector.Notary Public,personallyappeared D. Garcia who proved to me on the basisof satisfactoryevidenceto be the person(s)whose name(s) is/aresubscribedto the within instrumentand acknowledgment tome thathe/she/they executedthesame inhis/her/thewauthorizedcapacity(res),and thatby his/her/theH=signature(s) on the instrumenttheperson(s),or theentityupon behalfof which theperson(s)acted,executed the instrument.

On
1 certifyunder PENALTY OF PERJURY under the laws of the Stateof Californiathatthe foregoingpai'agraphistrueand correct.

Witness my hand and officialseal.

A
CTHAH SPEaOR
NotaryPublic*California
LosAngelesCounty
Commissionif2308417
^ttyComm.ExpiresOct11,2023
Of
Signature
Ethan Spector,Notary Public

AGENDA ITEM #9.5
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SOMPO INTERNATIONAL
^ INSURANCE

POWER OF ATTORNEYA
2775
KNOW ALL BY THESE PRESENTS, that Endurance Assurance Corporation, a Delaware corporation, Endurance American Insurance Company, a Delaware corporation. Lexon Insurance Company, a Texas corporation,and/or Bond Safeguard Insurance Company, a South Dakota corporation,each, a “Company " and collectively.“Sompo International,"do hereby constituleand appoint:Janina Monroe, Timothy Noonan, Adriana Valenzuela,JenniferG. Ochs, Charles R. Teter III,Lisa Marie Saumur, Erin Brown, B. Aleman, KD Wapato, Marina Tapia, Edward C.Spector, Ethan Spector, Aidan Smock, Lisa Cratl,Simone Gerhard, D. Garcia as trueand lawful Attorney(s)-!n-Fact to make, execute, seal, and deliverfor.and on itsbehalf as surely or co-surety;bonds and undertakingsgiven forany and allpurposes, also to execute and deliver on its behalf as aforesaid renewals, extensions,agreements, waivers,consents or stipulationsrelatingto such bonds or undertakingsprovided,however, that no single bond or undertaking so made, executed and deliveredshallobligatethe Company forany portionof the penal sum thereofin excess of the sum of ONE HUNDRED MILLION Dollars ($100,000,000.00).

Such bonds and undertakings forsaid purposes, when duly executed by said attorney(s)-in-fact,shallbe binding upon the Company as fullyand to the same extentas if signed by the President of the Company under itscorporate seal attestedby itsCorporate Secretary.

This appointment ismade under and by authorityof certainresolufionsadopted by the soleshareholder of each Company by unanimous writtenconsent effectivethe 15 day of June, 2019, a copy of which appears below under the heading entitled“Certificate".

This Power of Attorney is signed and sealed by facsimileunder and by authorityofthe followingresolutionadopted by the sole shareholderof each Company by unanimous writtenconsenteffectivethe15'"day ofJune, 2019 and said resolutionhas not since been revoked, amended or repealed:

Ih
RESOLVED, that the signature of an individualnamed above and the seal ofthe Company may be affixedto any such power ofattorneyorany certificaterelatingthereto by facsimile,and any such power of attorney or certificatebearingsuch facsimilesignatureor seal shallbe validand bindingupon the Company inthe futurewith respect to any bond or undertaking to which iti"sattached.

IN WITNESS WHEREOF, each Company has caused this instrument to be signed by the followingofficers,and itscorporate sealtobe affixedthis15'"day of June, 2019-
Lexon InsuranceCompany Bond Safeguard
ln^uranc8_,ppiTjpai)y
RichardAppel,^^P-^;S,eni
Endurance Assurance Corporation,
%u Qjy
Endurance American
nInsura^c^Conipapy
r-
h
:,'P //|.
i Counsel
I
oi^Murtsel
By: By:, I
Appel: $WP»8rj§enior Counsel
SEAL
2002
i^^’-.pELAWARE./^,f
Richard Appel;,SVP'4«,Senior CounselRichard
ClAY O
f SOUTH
S: DAKOTA
o'. INSURANCE:-t'. COMPANY
Uo ‘.O
● SEAL ●4)<0 O a ;0o ■ o3 C3i ; o1996
-O-.DRl AWARE
■C a
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'V'^;**'**'«>ii««**'“*
<-
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●>* ACKNOWLEDGEMENT
On this15'"dayofJune,2019,beforeme, personallycame the above signatoriesknown to me, who being duly sworn,diddeposeandsaythathe/tl^y‘,|^j^ffofficerofeachof the Companies; and that he executed said instrument on behalfofeach Company by authorityofhisofficgunderthebyjiwsofeachCompany,'''z- \ S1AIT
0^
NOTWVrBy:

Amy Taylor,Not ^PublicJ My CommissionExpires5/9/23-
*u I«*'

CERTIFICATE
I,the undersigned Officerof each Company, DO HEREBY CERTIFY that:

1. That the originalpower of attorneyof which the foregoing isa copy was duly executed on behalfofeach Company and has not since been revoked, amended or modified; that the undersigned has compared the foregoing copy thereof with the originalpower of attorney,and that the same is a trueand correctcopy of the originalpower of attorney and of the whole thereof;

2. The following are resolutions which were adopted by the sole shareholder of each Company by unanimous writtenconsent effectiveJune 15, 2019 and said resolutions have not since been revoked, amended or modified:
“RESOLVED, that each of the individuals named below is authorized to make, execute, seal and deliver for and on behalf of the Company any and allbonds, undertakings or obligationsin surety or co-suretywith others: RICHARD M, APPEL, BRIAN J. BEGGS, CHRISTOPHER DON ELAN, SHARON L. SIMS, CHRISTOPHER L. SPARRO, MARIANNE L. WILBERT
; and be itfurther
RESOLVED, that each of the individuals named above is authorizedto appoint attorneys-in-factforthe purpose of making, executing,sealingand deliveringbonds, undertakings or obligationsin surety or co-suretyforand on behalfofthe Company."

3. The undersigned furthercertifiesthat the above resolutionsare trueand correctcopies of the ersolutionsas so recorded and ofthe whole thereof.

IN WITNESS WHEREOF, I have hereunto set my hand and affixedthe corporate seal this 18th dav of April By:

Dai^S. kime,
NOTICE: U. S. TREASURY DgARTMBiTS OFRCE OF FOREIGN ASSETS COffTROL fOFAC) No coverage isprovided by thisNoticenor can itbe constmed toreplaceanyproveionsofanysiretybond orothersuretycoverage prcvided.ThisNoticeprovidesinformationccncemrg possibleimpactonyoursurely coverage due todirectivesissued by OF AC. Please read thisNotice carefully.

The Office of Foreign Assets Control(OF AS) admiristersand enforcessanctionspolicy,based on Presidentialdeclarsdonsof“nationalemergency”. OF AC has identifiedand kled numerous foreignagents,frorforganizations,terrorists,terroristcrganizatbns.and rarcotlcstraffickersas "SpeciallyDesignated Nationalsand Blocked Persons". This listcan be locked on the United StalesTreasuiv's website - hltps://vAr//;.treasury.gov/resouice-cenler/sanclions/SDN-Lisl.

In accordance with OFAC regul^lons,ifitisdeterrrinedthatyou or any other person or entityclaimingthe benefitsof any coverage has violatedU.S. sanctionslaw or Isa Specif Designated Nationaland Booked Person,as identifiedby OFAC, any coverage wil be considered a blockedorfrozencontractand allprovisbnsof any coverage providedareimmedide^ subject to OFAC. When a surety bond or otherform ofsuretycoverage isconsideredtobesucha.blocked orfrozen contract,no payments nor premium refunds may be made withal authorizationfrom OFAC. Other limlationson the premiumsand paymertsmay also apply.

Any reproductions are void.

Surety Claims Submission: LexonClalmAdministratiorvSsompo-intl.c om Telephone: 615-563-9500 Mailing Address: Sompo International;12890 Lebanon Road; Mount Juliet,TN 37122-2870

AGENDA ITEM #9.5
Approval of the water improvement agreement and performance and payment ... Page 134 of 968 IndioWater AuthorityYour Warer Our Responsibiliry.

Licx.i2i4amBond No.

PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS theIndioWater Authority(“PublicAgency”),has awarded to(“Principal”), K. Hovnanian Communities Inc.,1260 Corona Pointe Court, Suite 301, Corona, CA 92879 (Name and addressof Contractor)
a contract(the“Contract”),which is incorporatedhereinby thisreference,for the work described as follows:

Aguila at Terra Lago, Tract #32288 - Water Bonds
WHEREAS, Principalisrequiredunder the tenns of the Contractand the CaliforniaCivilCode to filea good and sufficientpayment bond with the PublicAgency to securethe payment of claims of laborers,mechanics,materialpersons,and otherpersonsas providedby law.

NOW, THEREFORE, we, theundersignedPrincipal,and
Lexon InsuranceCompany, 12890 Lebanon Road, Mount Juliet,TN 37122 (Name and addressof Surety)
(“Surety”)a duly admittedsuretyinsurerunder thelaws of theStateof California,as Surety,are held and fimilybound unto the PublicAgency and allsubcontractors,laborers,materialpersons, and other persons employed in the performance of the Contract in the penal sum of ) (the“Penal Sum”), this
amount being not lessthan one hundred percent (100%) of the totalContractprice,in lawful money of theUnitedStatesof America, forthepayment of which sum welland trulytobe made, we bind ourselves,our heirs,executors,administrators,successors,and assigns,jointlyand severally,firmlyby thesepresents.

Four Hundred Fouiteen * Dollars ($ 414,740.25
J C T -I*,.. J 1?-,^.. ,..4 OC/1AA
* iiiuu^iuiu ocvcu ouliuicu ruiij ojiu.^j/luu
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, ifthe hereby bounded Principal, his,her or itsheirs,executors,administrators,successors or assigns,or subcontractorsshallfail to pay any of the persons named in Section3181 of the CaliforniaCivilCode, or any amounts due under the Unemployment InsuranceCode with respectto work or laborperformed under the Contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the v/ages of employees of the Princm*^ subcontractorspursuantto Section 13020 of the Unemployment InsuranceCode, with respectto work or laborperfomied under the Contract,the Suretywillpay forthe same in an amount not exceeding the Penal Sum specifiedinthisbond; otherwise,thisobligationshallbecome nulland void.
1 don
Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

AGENDA ITEM #9.5
Approval of the water improvement agreement and performance and payment ... Page 135 of 968 IndioWater Authority:2> Your Water.Our Responsibility.

This bond shallinuretothe benefitof any of thepersonsnamed inSection3181 oftheCalifornia CivilCode so as to give a rightof actionto such personsortheirassignsinany suitbroughtupon the bond. In case suitisbrought upon thisbond, Surety furtheragreesto pay, in additionto the Penal Sum, allcosts and reasonableexpenses and fees,includingreasonable attorneys’fees, incurredby the PublicAgency in successfiillyenforcingsuch obligation,allto be taxedas costs and includedinany judgment rendered.

Further,the Surety,forvalue received,hereby stipulatesand agreesthatno change,extensionof time, alteration,addition or modification to the terms of the Contract, or of the work to be performed thereunder,or the specificationsforthesame, snailin any way affectitsobligations under this bond, and itdoes hereby waive notice of any such change, extension of time, alteration,addition, or modification to the terms of the Contract or to the work or to the specificationsthereunder. Surety hereby waives the provisionsof CaliforniaCivilCode 2845 and 2849.

IN WITNESS WHEREOF, two (2)identicalcounterpartsof thisinstrument,each ofwhich shall forallpurposes be deeuied an originalhereof,have been duly executedby Principaland Surety, on the date set forthbelow, the name of each corporateparty being heretoaffixedand these presentsduly signedby itsundersignedrepresentative(s)pursuantto authorityof itsgoverning body.

April 18,2023Dated:

L L lIlVipCAL k^ui wiy
K. Hovnanian Communities Inc, Lexon Insui'anceCompany
12890 Lebanon Road1260 Corona Pointe Court, Suite 301
Mount Juliet,TN 37122Corona, CA 92879
^ (Signature)
By:
(Signature)
Pfgs’»cknt
(Title)
D. Garcia,Attorney-In-Fact
(Title)
(Seal) (Seal)
Thisbond must he executedinduplicateand dated,allsignaturesmust be notarized,and evidenceoftheNote:
authorityofany person signingas attorney-in-factmust be attached.

Development ServicesProcedural Guidelines,Updated September 2019 Appendix D

AGENDA ITEM #9.5
Approval of the water improvement agreement and performance and payment ... Page 136 of 968

ACKNOWLEDGMENT
A notary public or other officercompleting this
certificateverifiesonly the identityof the individual
who signed the document to which thiscertificateis
attached, and not the truthfulness,accuracy, or
validityofthatdocument.

State of California
County of Riverside
J Trudeau, Notary Public
A^'l dJDSiiOn before me,
(insertname and titleof the officer)
5chirb>y'iP\personally appeared
who proved to me on the basis of satisfactoryevidence to be the person{>) whose name(s) is/3re subscribed to the withininstrument and acknowledged to me that he/she/they executed the same in his/her/theirauthorized capacity(re§),and that by his/Pr^/theirsignature(s)on the instrumentthe personts),or the entityupon behalf of which the person(5)vacted, executed the instrument.

Icertifyunder PENALTY OF PERJURY under the laws of the State of Californiathatthe foregoing paragraph istrue and correct.

J.

NotaryPublic●California\
RivetiicieCounty
Commission r 2390387
My Comm. ExpiresJan12.2026
UWITNESS my hand and officialseal.

Z V5?
ISignature (Seal)

AGENDA ITEM #9.5
Approval of the water improvement agreement and performance and payment ... Page 137 of 968

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A Notary Publicor otherofUcer completing thiscertificateverifiesonly the identityof the individualwho signedthedocument to which thiscertificateisattached,and notthetruthfulness, accuracy,or validityof thatdocument.

Slate of California
County of Los Aimeles
APR18 202^3 beforeme, Ethan Spector.Notary Public,personallyappeared D. Garcia who proved tome on thebasisof satisfactoiyevidencetobe theperson(s)whose name(s) is/aresubscribedto the within instrumentand acknowledgment tome thathe/she/they executedthe same inhis/her/thehauthorizedcapacity(ies),and thatby his/her/theirsignature(s) on the instrumenttheperson(s),or the entityupon behalfof which theperson(s)acted,executed the instrument.

On
I certifyunder PENALTY OF PERJURY under the laws of the Stateof Californiathattheforegoingparagraphistrueand correct.

Witness my hand and officialseal.
c CTHANSPECTOR R
\ NotaryPublic-California
:) LosAngelesCounty/ Commissionff2308417
My Comm. ExpiresOct11,:
y': -T
SignatureK
2023 } Ethan Spector,Notary Public

AGENDA ITEM #9.5
Approval of the water improvement agreement and performance and payment ... Page 138 of 968

SOMPO INTERNATIONAL
^ INSURANCE

POWER OF ATTORNEY
2775
KNOW ALL BY THESE PRESENTS, that Endurance Assurance Corporation, a Delaware corporation. Endurance American Insurance Company, a Delaware corporation, Lexon Insurance Company, a Texas corporation,and/or Bond Safeguard Insurance Company, a South Dakota corporation,each, a “Company" and collectively,“Sompo International,"do hereby constituteand appoint:Janina Monroe, Timothy Noonan, Adriana Valenzuela, JenniferG. Ochs, Charles R. Teter III,Lisa Marie Saumur, Erin Brown, B. Aleman, KDWapato, Marina Tapia, Edward C.Spector, Ethan Spector, Aidan Smock, Lisa Craii,Simone Gerhard, D. Garcia as trueand lawfulAttomey(s)-ln-Fact to make, execute, seal, and deliverfor,and on itsbehalf as suretyor co-surety;bonds and undertakingsgiven forany and allpurposes, also to execute and deliver on itsbehalf as aforesaid renewals, extensions, agreements, waivers, consents or stipulationsrelatingto such bonds or undertakings provided,however, that no single bond or undertaking so made, executed and deliveredshallobligatethe Company forany portionof the penal sum thereofin excess of the sum of ONE HUNDRED MILLION DoHars ($100,000,000.00).

Such bonds and undertakings forsaid purposes, when duly executed by said attorney(s)-in-fact,shallbe binding upon theCompany as fullyand to the same extentas if signed by the President ofthe Company under itscorporateseal attestedby itsCorporate Secretary.

This appointment ismade under and by authorityof certainresolutkinsadopted by the soleshareholder of each Company by unanimous writtenconsent effectivethe 15 day of June, 2019, a copy of which appears below under the heading entitled“Certificate".

This Power of Attorney is signed and sealed by facsimileunder and by authorityofthe followingresolutionadopted by the sole shareholderof each Company by unanimous writtenconsenteffectivethe 15'*'day ofJune, 2019 and said resolutionhas not since been revoked, amended or repealed:

Ih
RESOLVED, that the signature of an individualnamed above and the seal of the Company may be affixedto any such power of attorneyorany certificaterelatingthereto by facsimile,and any such power ofattorneyor certificatebearingsuch facsimilesignatureorsealshallbe validand bindingupon the Company inthe futurewithrespect to any bond or undertaking to which itis attached.

IN WITNESS WHEREOF, each Company has caused thisinstrument to be signed by the followingofficers,and itscorporate sealtobe affixedthisIS"'day of June, 2019,
Lexon insurance Company Bond Safeguard
*ri§uraycB.Cp^pai;^
-dio.LJRichard Appel:5VP"&>Senio
^ ^ %^ SOUTH
DAKOTA
q', insuranceCOMPANY
T'
Endurance Assurance Corporadop. Endurance American
n'I'7 ' 7/ ● :/r.
iu.U
ura
u
'ff^< if>rCourTsei
t' By:By: '
Richard Appel:§yft»&^nior Counsel
By:,'
Richard Appel;,SVR^,Senior Counsel niof Counsel
o o’-c u.tJ \o‘.A
; SEAL ●0>
SEALA ;0: O O w
3 a) : ;o1996
DELAWARE..'^
i-o\ 2002
\ ‘'S’,DELAWARE,.',^ «>s.

ACKNOWLEDGEMENT
On thisis"*day ofJune.2019,beforeme, personallycame the above signatoriesknown to me, who being duly sworn,diddeposeandsaythathe/tijey*,j^Ho{Jicerofeachof the Companies; and that he executed said instmment on behalfof each Company by authorityof hisoffi^ underthebyJ3wsofeachCompany^'' \ ttonfcr
WjOUCBy:

Amy Taylor,Not ^Publict My CommissionExpires5/9/23CERTIFICATE (II.the undersigned Officer of each Company, DO HEREBY CERTIFY that:

1. That the originalpower of attorneyof which the foregoing isa copy was duly executed on behalfofeach Company and has not since been revoked, amended or modified; thatthe undersigned has compared the foregoing copy thereof with the originalpower of attorney,and that the same is a trueand correctcopy of the originalpower of attorney and of the whole thereof;

2. The followingare resolutionswhich were adopted by the sole shareholder of each Company by unanimous writtenconsent effectiveJune 15, 2019 and said resolutions have not since been revoked, amended or modified;
“RESOLVED, that each of the individuals named bebw is authorized to make, execute, seal and deliverfor and on behalf of the Company any and allbonds, undertakings or obligationsinsurety or co-suretywith others: RICHARD M. APPEL, BRIAN J. BEGGS, CHRISTOPHER DONELAN, SHARON L. SIMS, CHRISTOPHER L SPARRO, MARIANNE L. WILBERT
; and be itfurther
RESOLVED, that each of the individuals named above is authorized to appoint attorneys-in-factforthe purpose of making, executing,sealingand deliveringbonds, undertakings or obligationsinsurety or co-suretyforand on behalf of the Company."

3. The undersigned further certifiesthat the above resolutionsare trueand correctcopies of the resolutionsas so recorded and of the whole thereof.

IN WITNESS WHEREOF. I have hereunto set my hand and affixed the corporate seal this 18th day of By:

Daniei
NOTICE: U. S. TREASURY Dg»ARTMBITS OFFICE OF FOREIGN ASSETS CONTROL tOFACt No coverage isprovidedby thisNoticenor can itbe construedtoreplaceanyprovisionsofanysiretybonder othersuretycoverage pro/ided.ThisNoticeprovidesinformationccncemrg possible impact on your surety coverage due to directivesissued by OFAC. Please read this Notice carefully.

The Office of Foreign Assets Control (OFA2) admiristersand enforces sanctionspolicy,based on Presidentialdeclarationsof "nationalemergency". OFAS has identifiedand efted numerous foreign agents,frortorganizations,terrorists,terroristaganizatbns.and narcoticstraffickersas “SpeciallyDesignated Nationalsand Blocked Persons”. This listcan be locked onthe United StatesTreasury’swebsite - hllns://vww.treasury.oov/ resoufce-cenler/sarclionsrSDN-Lid.

In accordance with OFAC reguldions,ifitisdetermined thatyou or any other person or entityclaming the benefitsof any coverage has vidated U.S. sanctionslaw or isa Speciaiy Designated Nationaland Blocked Person,as identifiedby OFAC, any coverage wll be considered a blocked or frozencontractand allprovisbnsofany coverage providedareimmedideV subject to OFAC. When a surety bond or otherform ofsurety coverage isconsidered to be such a blocked or frozencontract,no payments nor premium refundsmay be made without authorizationfrom OFA3. Other limlafionsonthe premiums and paymenlsmay also apply.

Any reproductions are void.

Surety Claims Submission; LoxonClalm^tdministratiorKaisompo-lntl .com Telephone: 615-553-9500 MailingAddress: Sompo International;12890 Lebanon Road; Mount Juliet,TN 37122-2870

AGENDA ITEM #9.5
Approval of the water improvement agreement and performance and payment ... Page 139 of 968 City of Indio
City Council
July 19, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Reymundo Trejo, P.E., IWA General Manager
Subject: Ferguson (dba LLC Enterprises, Ferguson with Agreement Supplier Waterworks) for as-needed water meters and meter parts during Fiscal Year 2023-2024 in an amount not to exceed $700,000.

RECOMMENDATION:

That the City Council and Indio Water Authority Board approve the supplier agreement with Ferguson Enterprises, LLC (dba Ferguson Waterworks) for as -needed Neptune water meters and meter parts in the not to exceed amount of $700,000 in accordance with the approved budget and authorize the City Manager to approve the purchase order.

SUMMARY:

The Indio Water Authority’s approved Fiscal Year 2023 -2024 budget includes anticipated earned revenue from water meter sales and corresponding meter expenses related to development. The budget also includes funding to replace inefficient and out of warranty meters and metering equipment.

Staff is recommending approval of a supplier agreement with Ferguson Enterprises, LLC (dba Ferguson Waterworks) for the purchase of as-needed water meters and meter parts.

BACKGROUND INFORMATION:

Customer water use is me tered by the Indio Water Authority to recover the cost of providing water service. In 2012, the City Council/IWA Board approved the selection of Neptune, now owned by Ferguson Enterprises, LLC. (dba Ferguson Waterworks), as its standard water meter; all water meters in the City/IWA service area are manufactured by the company. Ferguson Waterworks is the sole distributor of Neptune water meters, reading systems, replacement parts, automated meter networks, and other value-added services. Using one vendor for water meters ensures that metering technology is consistent for all IWA customers and the costs for maintaining and replacing meters are reduced.

Stocking similar parts and materials and having personnel trained in the handling of those parts and materials also results in lower costs. There are currently over 24,000 active water service connections City-wide, all of which are radio-read technology. All new development projects are required to install radio read water meters obtained from IWA. Neptune meters have proven to be reliable and durable.

ATTACHMENTS:

Attachment 1 - Ferguson Supplier Agreement 2023-24_Vendor Signed Attachment 2 - EXHIBIT B - Manufacturer's Warranties 2023

AGENDA ITEM #9.6
Supplier Agreement with Ferguson Enterprises, LLC (dba Ferguson Waterwor... Page 140 of 968 APPROVAL(S):

Reymundo Trejo, P.E., IWA General Manager Approved - 30 Jun 2023 Steven Graham, City Attorney Approved - 05 Jul 2023
Brian Kinder, Finance Manager Approved - 05 Jul 2023
Bryan H. Montgomery, City Manager Approved - 05 Jul 2023

AGENDA ITEM #9.6
Supplier Agreement with Ferguson Enterprises, LLC (dba Ferguson Waterwor... Page 141 of 968 1 SUPPLIER AGREEMENT
INDIO WATER AUTHORITY and FERGUSON ENTERPRISES, LLC dba FERGUSON

WATERWORKS
This Agreement (“Agreement”) is made and entered into on this 19th day of July 2023 by and between the Indio Water Authority, a California Joint Powers Authority (“IWA”) and Ferguson Enterprises, LLC dba Ferguson Waterworks (“FE”). IWA and FE are sometimes referenced together as the “Parties.” In instances when a provision of this Agreem ent applies to each of the Parties individually, either of the Parties may be referenced below as “Party.” I. TERM
A. Term of Agreement . This Agreement shall commence and be effective as of July 19, 2023 and shall terminate on June 30, 2024, unless sooner terminated by IWA.

B. Termination Prior to the Expiration of the Agreement . IWA shall have the right to terminate this Agreement for any reason or for no reason upon at least thirty days prior written notice. In the event of termination, FE shall be entitled to receive payment for all products delivered to and accepted by IWA up to the date of termination.

II. SCOPE OF SERVICES, PRICE AND PAYMENT
A. Scope of Services. Upon submittal of a written pu rchase order by IWA, FE agrees to supply the products and good at the price listed in FE’s Schedule of Price dated May 5, 2023, which is attached hereto and incorporated herein as Exhibit A (“Schedule of Price”).

B. Ordering. IWA may order goods by submitting a written purchase order identifying the goods and the quantity to be shipped. FE shall, within thirty days of the receipt of the order, fulfill the order by shipping the goods to the IWA, free of charge. FE shall be responsible and bear the risk of loss and or damage for goods regardless of the cause until goods are received, delivered and accepted by IWA. Delivery time and dates shall be coordinated between the parties.

C. Acceptance. IWA has the right to inspect the goods upon receipt and within f ive business days after delivery, IWA shall give notice of any damages to such goods or notice that the goods do not meet the specifications or otherwise do not conform to the requirements of the order placed by IWA. In such case, IWA shall have the right to reject the goods and goods rejected after delivery may at IWA’s option be returned to FE for reimbursement, credit, replacement or correction at FE expense. Any goods rejected and returned to FE shall be at FE’s expense.

D. Payment. IWA shall remit pa yment to FE within thirty days of receipt of the invoice. If the thirtieth day falls on a non-business day, weekend, or holiday, Parties agree that due date for payment may be extended until the next business day. The maximum compensation provided to FE under this Agreement shall not exceed $700,000.

DocuSign Envelope ID: A70BD1F5-33DB-4749-A607-DBD4FFE61CE3

AGENDA ITEM #9.6
Supplier Agreement with Ferguson Enterprises, LLC (dba Ferguson Waterwor... Page 142 of 968 2 III. WARRANTIES
A. FE warrants that the goods sold hereunder are new and free from defects in material and workmanship, without third party liens or encumbrances of title, and will conform to applicable written drawings, specifications and other data. All warranties shall su rvive acceptance and payment, and shall run to IWA and its customers. The warranties provided to IWA are set forth in Exhibit B attached hereto and incorporated herein by this reference.

B. All goods such as but not limited to the water meters, registers, radios, handheld & mobile reading devices and software supplied by FE to IWA are covered by the manufacturer's warranties which are attached as Exhibit B. Said warranties shall be coordinated by FE at no additional cost to IWA. FE HEREBY DISCLAIMS ALL EXPR ESSED AND IMPLIED

WARRANTIES, WHETHER IMPLIED BY OPERATION OF LAW OR OTHERWISE,

INCLUDING, WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS OR FITNESS FOR A PARTICULAR PURPOSE.

UNDER NO CIRCUMSTANCES SHALL FE BE HELD LIABLE FOR INC IDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES OF ANY KIND.

C. FE shall comply with all applicable federal, state and local laws in the performance of this Agreement.

IV. NOTICE
Any notices, bills, invoices, etc. required by this Agreement shall be deem ed received on (a) the day of delivery if delivered by hand during the receiving party's regular business hours or by facsimile before or during the receiving party's regular business hours; or (b) on the second business day following deposit in the United States mail, postage prepaid to the addresses set forth below, or to such other addresses as the parties may, from time to time, designate in writing pursuant to this section.

If to IWA:

Water Operations Manager
83-101 Avenue 45
Indio, California 92201
Phone: (760) 625-1852
E-mail: [email protected]
If to FE:

Ferguson Waterworks
11909 Tech Center Ct.

Poway, CA 92064
Phone: (310) 318-1843
Contact: Michael Balla
E-mail: [email protected]
DocuSign Envelope ID: A70BD1F5-33DB-4749-A607-DBD4FFE61CE3

AGENDA ITEM #9.6
Supplier Agreement with Ferguson Enterprises, LLC (dba Ferguson Waterwor... Page 143 of 968 3 V. MISCELLANEOUS
A. Non-assignment. This Agreement shall not be assigned in whole or in part, by FE without the prior written approval of IWA. Any attempt by FE to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect.

B. Entire Agreement. This Agreement represents the entire and integrated agreement between IWA and FE and supersedes all prior negotiations, representations, or agreements, either written or oral.

C. Modification. This Agreement may be modified only by a written instrument signed by both IWA and FE
D. No Variance of Terms. No purchase order or other ordering document that purports to modify or supplement the printed text of this Agreement or any Exhibit shall add to or vary the terms of this Agreement or its Exhibits. All such pro posed variations, edits, or additions whether submitted by IWA or FE to this Agreement, are objected to and deemed material unless otherwise mutually agreed to in writing.

E. Waiver. No modification to this Agreement nor any failure or delay in enforcing any term, exercising any option, or requiring performance shall be biding or construed as a waiver unless agreed to in writing by both parties.

F. Remedies Cumulative. Except as otherwise specifically stated herein, remedies shall be cumulative and there shall be no obligation to exercise a particular remedy.

G. Severability. Invalidation of any provision contained herein or the application thereof to any person or entity by judgment or court order shall in no way affect any of the other covenants, conditions, restri ctions, or provisions hereof, or the application thereof to any other person or entity, and the same shall remain in full force and effect.

H. Jurisdiction. This Agreement, and the application or interpretation hereof, shall be governed exclusively by its terms and by the laws of the State of California.

I. Venue. Venue for all purposes shall be deemed to lie within Riverside County California and any action to enforce this Agreement or for any remedies, damages, or other relief shall only be brought in the State courts of the State of California in and for the County of Riverside.

J. Authority to Execute . The persons executing this agreement on behalf of FE warrant that they are duly authorized to execute this agreement on behalf of the entity for which they are signing, and that by executing this Agreement, the party for which each is signing is bound by this Agreement.

K. IWA Not Obligated to Third Parties. IWA shall not be obligated or liable under this Agreement to any party other than FE.

DocuSign Envelope ID: A70BD1F5-33DB-4749-A607-DBD4FFE61CE3

AGENDA ITEM #9.6
Supplier Agreement with Ferguson Enterprises, LLC (dba Ferguson Waterwor... Page 144 of 968 4 L. Exhibits; Precedence. All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail.

M. Attorney's Fees. In the event that either party commences any legal action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney's fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.

N. Notice of Labor Disputes. Whenever FE has knowledge that any actual or potential labor dispute which delays or th reatens to delay FE’s timely performance of fulfilling any orders placed by IWA, FE shall immediately give written notice thereof, including all relevant information to IWA.

O. Intellectual Property Indemnification. FE shall indemnify and hold harmless I WA and the City of Indio, its customers and users of the goods purchased, from and against all loss, liability and damage, including attorney’s fees, costs and expenses, resulting from any claim that the manufacture, use, lease, sale or resale or any goods supplied under this Agreement infringe any patent or patent rights, trademarks, trade names, copyrights, or other intellectual property rights. FE will, when notified, defend any action or claim of such infringement at its own expense. [SIGNATURES ON FOLLOWING PAGE]
DocuSign Envelope ID: A70BD1F5-33DB-4749-A607-DBD4FFE61CE3

AGENDA ITEM #9.6
Supplier Agreement with Ferguson Enterprises, LLC (dba Ferguson Waterwor... Page 145 of 968 5 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year specified above.

INDIO WATER AUTHORITY
Bryan H. Montgomery
Executive Director

ATTEST:

CITY CLERK

Sabdi Sanchez, CMC Secretary

APPROVED AS TO FORM:

Steven Graham,
Authority General Counsel

SUPPLIER:

FERGUSON ENTERPRISES LLC
dba FERGUSON WATERWORKS

Michael Balla
Area Sales Manager

DocuSign Envelope ID: A70BD1F5-33DB-4749-A607-DBD4FFE61CE3

AGENDA ITEM #9.6
Supplier Agreement with Ferguson Enterprises, LLC (dba Ferguson Waterwor... Page 146 of 968 6 EXHIBIT “A”

SCHEDULE OF PRICE

EXHIBIT “B”
DocuSign Envelope ID: A70BD1F5-33DB-4749-A607-DBD4FFE61CE3

AGENDA ITEM #9.6
Supplier Agreement with Ferguson Enterprises, LLC (dba Ferguson Waterwor... Page 147 of 968 7 MANUFACTER’S WARRANTIES
DocuSign Envelope ID: A70BD1F5-33DB-4749-A607-DBD4FFE61CE3

AGENDA ITEM #9.6
Supplier Agreement with Ferguson Enterprises, LLC (dba Ferguson Waterwor... Page 148 of 968

A NEPTUNE TECHNOLOGY GROUP WARRANTY STATEMENT
MACH 10® Ultrasonic Meter

1. TERMS OF LIMITED WARRANTY
With respect to its Neptune® MACH 10® water meter (“MACH 10”), Neptune Technology Group Inc. (“Neptune”) warrants that for meters sold after 02/01/2019 for potable water or combined potable water and residential fire service applications the MACH 10 meter will be warranted to be free from manufacturing defects in workmanship and material as follows:

The MACH 10 will be, at the later of (i) the date of original purchase from Neptune or (ii) the date of original shipment from a Neptune-authorized distributor of water meters (that later date is referred to as “the Date of Shipment”), and will remain for a period of 18 months from the Date of Shipment, or 12 months from date of installation, whichever comes first, free from manufacturing defects in workmanship and material.

Neptune makes the following additional warranties with respect to certain MACH 10 components, dependent upon the size of meter:

a) Lead Free Bronze Maincase
i) 5/8” – 1” MACH 10
Neptune warrants that the MACH 10 lead free bronze maincase will be free from manufacturing defects in workmanship and material for twenty (20) years from the Date of Shipment.

ii) 1½” – 2” MACH 10
Neptune warrants that the MACH 10 lead free bronze maincase will be free from manufacturing defects in workmanship and material for ten (10) years from the Date of Shipment.

b) Electronics (Battery, PCB, Transducers, LCD)
i) 5⁄8” – 1” MACH 10
Neptune warrants that the electronics of the MACH 10 will be free from manufacturing defects in workmanship and material for a period of twenty (20) years from the Date of Shipment. Neptune will repair or replace a non -performing MACH 10 free of charge for the first ten (10) years and at a discount of the then-current contract price, or the then-current list price, whichever is less, during the following ten (10) years per the following table.

The MACH 10 warranty does not include the external housing that encapsulate s the electronics.

ii) 1½” – 2” MACH 10
Neptune warrants the electronics of the MACH 10 will be free from manufacturing defects in workmanship and material for a per iod of ten (10) years from the Date of Shipment. Neptune will repair or replace a non-performing MACH 10 free of charge during the ten (10) year Warranty Period. The MACH 10 warranty does not include the external housing that encapsulates the electronics.

Year of Failure MACH 10®
Replacement Price Discount*
1-10 Full replacement 100%
11 50%
12 50%
13 40%
14 40%
15 30%
16 30%
17 20%
18 20%
19 10%
20 10%

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With respect to Section 1 and subparts a) and b), the period from the Date of Shipm ent to the expiration of the specified time period is the “Warranty Period” with respect to each specified component. Neptune shall not be responsible for any defects in the MACH 10 or any spec ified component (whether due to design, materials, manufacture, or otherwise) that manifest themselves after the expiration of the specified Warranty Period.

2. MACH 10 METER ACCURACY
Provided that the MACH 10 meter and the components specified in Section 1 and subparts a) and b) are functioning properly (regardless of whether the MACH 10 meter and specified components are within or outside an applicable Warranty Period), Neptune makes the following warranties with re spect to meter accuracy, dependent upon the size of meter:

i) 5⁄8” – 1” MACH 10
Neptune MACH 10 meters are warranted to meet or exceed meter accuracy of ±1.5% for the published ranges set forth in Neptune’s current product sheet in existence at the time of the Date of Shipment of the MACH 10 meter for twenty (20) years from Date of Shipment. N eptune further warrants the MACH 10 to meet or exceed extended low flow accuracy of ±3% for the published ranges set forth in Neptune’s current product sheet in existenc e at the time of the Date of Shipment of the MACH 10 meter for twenty (20) years from Date of Shipment.

ii) 11⁄2” – 2” MACH 10
Neptune MACH 10 meters are warranted to meet or exceed meter accuracy of ±1.5% for the published ranges set forth in Neptune’ s current product sheet in existence at the time of the Date of Shipment of the MACH 10 meter for ten (10) years from date of shipment. Neptune further warrants the MACH 10 to meet or exceed extended low flow accuracy of ±3% for the published ranges set forth in Neptune’s current product sheet in existence a t the time of the Date of Shipment of the MACH 10 meter for ten (10) years from Date of Shipment.

3. WARRANTY RETURNS
If a Neptune MACH 10 meter fails an accuracy test during an applicable Warranty Period, it may be returned to Neptune for eva luation. Any MACH 10 meter proved to the satisfaction of Neptune to have failed the warranties set forth in this Certificate of Warranty will, at the option of Neptun e, be repaired or replaced at no cost to the customer. An accuracy test shall be conducted by the customer according to then -current AWWA testing standards. Any meter being returned for repair to Neptune under this performance warranty must be returned with a copy of the customer’s test results. If the meter is returned to Neptune without a copy of the test results or if Neptune’s factory test shows the meter to meet Neptune’s published accuracy specifications, then the customer will be charged a nominal testing fee by Neptune in such cases. If after the meter has been tested by Neptune, Neptune determines that the meter has failed the warranties set forth in this Certificate of Warranty, then Neptune will repair or replace the meter at Neptune’s option.

Repaired or replacement MACH 10 meters are warranted for one (1) year after Date of Shipment of the repaired or replacement MACH 10 meter or the balance of the original MACH 10 meter warranty, whichever is greater.

4. RESPONSIBILITY LIMITED TO COSTS OF REPLACEMENT AND REPAIR If the MACH 10 fails to meet the warranties set forth in Sections 1 and 2 of this Certificate of Warranty, then Neptune, at its option shall repair or replace the MACH 10 or part thereof, provided that (a) the MACH 10 is delivered to a Neptune representative, (b) the MACH 10 is accompanied by a Return Material Authorization (RMA), and (c) all costs of delivery to Neptune are assumed by the purchaser of the MACH 10. Neptune’s liability is limited to its

AGENDA ITEM #9.6
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© 2019 Neptune Technology Group Inc. All Rights Reserved. The trademarks, logos and service marks displayed in this document herein are the property of Neptune Technology Group Inc., its affiliates or other third parties. Availability and technical specifications are subject to change without notice. W MACH 10 02.19

costs of replacement and repair of the non-performing MACH 10, and without limitation, this warranty does not include field replacement, labor, or materials costs, which are the responsibility of the customer. Damages resulting from miscalculation of water usage or lost revenue or profit are not recoverable from Neptune. It is the responsibility of the customer to periodically verify the operation and accuracy of its meters.

5. WARRANTIES ARE INAPPLICABLE UNDER CERTAIN CONDITIONS The warranties set forth in this Certificate of Warranty do not apply to any MACH 10 meter that has been damaged by, or subje cted to, conditions which, in the opinion of Neptune, have affected the ability of the MACH 10 to perform, including but not limited to: misuse; improper handling, application or installation; excessive operating conditions; foreign materials in the water; aggressive water conditions; tampering or unauthorized repairs o r modifications; accidental or intentional damage; or acts of God. This Certificate of Warranty shall not apply if the product is placed in a non -recommended installation, is connected or altered by other than Neptune recommended procedures or is read by equipment not approved or licensed by Neptune.

Neptune makes no claims concerning operability and/or compatibility or third -party reading systems. In addition, this Certificate of Warranty shall not apply if third-party reading equipment is believed to have caused damage to the MACH 10. In order to determine its liability, if any, under this Certificate of Warranty, Neptune shall have the right to inspect any MACH 10 meter or part thereof that is claimed to be defective at Neptune or other location designated by Neptune.

THE ABOVE WARRANTY FOR THE MACH 10 WATER METER IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY NEPTUNE WITH RESPECT TO THE MACH 10.

ALL OTHER WARRANTIES, CONDITIONS, TERMS, REPRESENTATIONS, OR OTHER LEGALLY OPERATIVE PROVISIONS CONCERNING THE MACH 10 ARE

HEREBY EXPRESSLY EXCLUDED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY, CONDITION, TERM, AND REPRESENTATION OR OTHER LEGALLY OPERATIVE PROVISION AS TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THIS PARAGRAPH IS EXPRESSLY INTENDED TO EXCLUDE FROM THIS CONTRACT ALL STATUTORY AND COMMON LAW WARRANTIES TO THE MAXIMUM EXTENT PERMITTED BY LAW. TO AVOID ANY AMBIGUITY OR MISUNDERSTANDING, ALL PROBLEMS ARISING WITH A MACH 10 WATER METER AFTER THIS POINT SHALL BE BUYER’S RESPONSIBILITY.

NEPTUNE’S LIABILITY SHALL IN NO EVENT EXCEED THE PURCHASE PRICE OF THE MACH 10 WATER METER. NEPTUNE SHALL NOT BE SUBJECT TO AND DISCLAIMS THE FOLLOWING: (1) ANY OTHER OBLIGATIONS OR LIABILITIES ARISING OUT OF BREACH OF CONTRACT OR OF WARRANTY, (2) ANY

OBLIGATIONS WHATSOEVER ARISING FROM TORT CLAIMS (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR ARISING UNDER OTHER THEORIES OF LAW WITH RESPECT TO PRODUCTS SOLD OR SERVICES RENDERED BY NEPTUNE, OR ANY UNDERTAKINGS, ACTS, OR OMISSIONS RELATING THERETO, AND (3) ALL CONSEQUENTIAL, INCIDENTAL, SPECIAL, MULTIPLE, EXEMPLARY, AND PUNITIVE DAMAGES WHATSOEVER.

AGENDA ITEM #9.6
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A NEPTUNE TECHNOLOGY GROUP WARRANTY STATEMENT
3” to 12” MACH 10® Ultrasonic Meter

1. TERMS OF LIMITED WARRANTY
With respect to its Commercial and Industrial Neptune® MACH 10® water meter (“MACH 10”), Neptune Technology Group Inc. (“Neptune”) warrants that MACH 10 meters sold on or after August 1, 2021, for potable water or combined potable water and fire service applications, will be warranted to be free from manufacturing defects in workmanship and material as follows:

The MACH 10 will be, at the later of (i) the date of original purchase from Neptune or (ii) the date of original shipment from a Neptune-authorized distributor of water meters (that later date is referred to as “the Date of Shipment”), and will remain for a period of 18 months from the Date of Shipment, or 12 months from date of installation, whichever comes first, free from manufacturing defects in workmanship and material. Neptune makes the following additional warranties with respect to certain MACH 10 components.

a) Lead Free Bronze Maincase
Neptune warrants at the Date of Shipment that the lead free, high copper bronze maincase of the MACH 10 will be free from manufacturing defects in workmanship and material for the life of the meter.

b) Electronics (Battery, PCB, Transducers, LCD)
Neptune warrants that the unitized measuring element (UME) and/or electronics of the MACH 10 will be free from manufacturing defects in workmanship and material for a period of ten (10) years from the Date of Shipment. Neptune will repair or replace a non-performing MACH 10 UME free of charge for the first five (5) years and at a discount of the then-current list price, during the following five (5) years per the schedule to the right. The MACH 10 warranty does not include the external housing that encapsulates the electronics.

With respect to Section 1 and subparts a) and b), the period from the Date of Shipment to the expiration of the specified time period is the “Warranty Period” with respect to each specified component. Neptune shall not be responsible for any defects in the MACH 10 or any specified component (whether due to design, materials, manufacture, or otherwise) that manifest themselves after the expiration of the specified Warranty Period.

2. MACH 10 METER ACCURACY WARRANTY
Provided that the MACH 10 meter and the components specified in Section 1 and subparts a) and b) are functioning properly (regardless of whether the MACH 10 meter and specified components are within or outside an applicable Warranty Period detailed above), Neptune makes the following warranties with respect to meter accuracy:

Neptune MACH 10 meters are warranted to meet or exceed new meter accuracy per AWWA specifications of ±1.5% for the published ranges set forth in Neptune’s current product sheet in existence at the time of the Date of Shipment of the MACH 10 meter for ten (10) years from Date of Shipment. Neptune further warrants the MACH 10 to meet or exceed extended low flow accuracy of ±3% for the published ranges set forth in Neptune’s current product sheet in existence at the time of the Date of Shipment of the MACH 10 meter for ten (10) years from Date of Shipment (that period being the “Accuracy Warranty Period”).

Year of Failure MACH 10®
Replacement Price Discount*
1-5 Full replacement 100%
6 70%
7 60%
8 45%
9 35%
10 25%
* Replacement price discount percentages will be applied towards the then-current list price in effect for the year product is accepted by Neptune under warranty conditions. Replacement MACH 10 electronics are warranted for one (1) year after date of shipment or balance of original MACH 10 warranty, whichever is greater.

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3. WARRANTY RETURNS
If a Neptune MACH 10 meter fails an accuracy test during the Accuracy Warranty Period, the meter or UME may be returned to Neptune for evaluation. An accuracy test shall be conducted by the customer according to then-current AWWA testing standards. Any meter being returned for repair to Neptune under the accuracy warranty must be returned with a copy of the customer’s test results. If the meter is returned to Neptune without a copy of the test results or if Neptune’s factory test shows the meter to meet Neptune’s published accuracy specifications, then the customer will be charged a nominal testing fee by Neptune in such cases. If after the meter has been tested by Neptune, Neptune determines that the meter has failed the accuracy warranty set forth in this Certificate of Warranty, then Neptune will repair or replace the meter at Neptune’s option. Repaired MACH 10 meters are warranted for one (1) year after Date of Shipment of the repaired MACH 10 meter or the balance of the applicable original MACH 10 meter warranty (maincase, UME/electronics, or accuracy), whichever is greater.

If a replacement UME is deemed necessary, the new UME will include a new original warranty as specified in Sections 1 and 2 of this Certificate of Warranty.

4. RESPONSIBILITY LIMITED TO COSTS OF REPLACEMENT AND REPAIR If the MACH 10 fails to meet the warranties set forth in Sections 1 and 2 of this Certificate of Warranty, then Neptune, at its option shall repair or replace the MACH 10 or part thereof, provided that (a) the MACH 10 is delivered to a Neptune representative, (b) the MACH 10 is accompanied by a Return Material Authorization (RMA), and (c) all costs of delivery to Neptune are assumed by the purchaser of the MACH 10. Neptune’s liability is limited to its costs of replacement and repair of the non- performing MACH 10, and without limitation, this warranty does not include field replacement, labor, or materials costs, which are the responsibility of the customer.

Damages resulting from miscalculation of water usage or lost revenue or profit are not recoverable from Neptune. It is the responsibility of the customer to periodically verify the operation and accuracy of its meters.

5. WARRANTIES ARE INAPPLICABLE UNDER CERTAIN CONDITIONS The warranties set forth in this Certificate of Warranty do not apply to any MACH 10 meter that has been damaged by, or subjected to, conditions which, in the opinion of Neptune, have affected the ability of the MACH 10 to perform, including but not limited to: misuse; improper handling, application or installation; excessive operating conditions; foreign materials in the water; aggressive water conditions; tampering or unauthorized repairs or modifications; accidental or intentional damage; or acts of God. This Certificate of Warranty shall not apply if the product is placed in a non-recommended installation, is connected or altered by other than Neptune recommended procedures or is read by equipment not approved or licensed by Neptune. Neptune makes no claims concerning operability and/or compatibility or third-party reading systems. In addition, this Certificate of Warranty shall not apply if third-party reading equipment is believed to have caused damage to the MACH

10. In order to determine its liability, if any, under this Certificate of Warranty, Neptune shall have the right to inspect any MACH 10 meter or part thereof that is claimed to be defective at Neptune or other location designated by Neptune.

THE ABOVE WARRANTY FOR THE MACH 10 WATER METER IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY NEPTUNE WITH RESPECT TO THE MACH 10. ALL OTHER WARRANTIES, CONDITIONS, TERMS, REPRESENTATIONS, OR OTHER LEGALLY OPERATIVE PROVISIONS CONCERNING THE MACH 10 ARE HEREBY EXPRESSLY

EXCLUDED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY, CONDITION, TERM, AND REPRESENTATION OR OTHER LEGALLY OPERATIVE PROVISION AS TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THIS PARAGRAPH IS EXPRESSLY INTENDED TO EXCLUDE FROM THIS CONTRACT ALL STATUTORY AND COMMON LAW WARRANTIES TO THE MAXIMUM EXTENT PERMITTED BY LAW. TO AVOID ANY AMBIGUITY OR MISUNDERSTANDING, ALL PROBLEMS ARISING WITH A MACH 10 WATER METER AFTER THIS POINT SHALL BE BUYER’S RESPONSIBILITY. NEPTUNE’S LIABILITY SHALL IN NO EVENT EXCEED THE PURCHASE PRICE OF THE MACH 10 WATER METER. NEPTUNE SHALL NOT BE SUBJECT TO AND DISCLAIMS THE FOLLOWING: (1) ANY OTHER OBLIGATIONS OR LIABILITIES ARISING OUT OF BREACH OF CONTRACT OR OF WARRANTY, (2) ANY OBLIGATIONS WHATSOEVER ARISING FROM TORT CLAIMS (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR ARISING UNDER

OTHER THEORIES OF LAW WITH RESPECT TO PRODUCTS SOLD OR SERVICES RENDERED BY NEPTUNE, OR ANY UNDERTAKINGS, ACTS, OR OMISSIONS RELATING THERETO, AND (3) ALL CONSEQUENTIAL, INCIDENTAL, SPECIAL, MULTIPLE, EXEMPLARY, AND PUNITIVE DAMAGES WHATSOEVER.

© 2021 Neptune Technology Group Inc. All Rights Reserved. The trademarks, logos and service marks displayed in this document herein are the property of Neptune Technology Group Inc., its affiliates or other third parties. Availability and technical specifications are subject to change without notice. W CI MACH 10 10.21

AGENDA ITEM #9.6
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A NEPTUNE TECHNOLOGY GROUP WARRANTY STATEMENT
Neptune T-10®, HP Turbine, TRU/FLO® Compound Cold Water Meters

1. TERMS OF LIMITED WARRANTY
With respect to its Neptune T-10®, HP TURBINE, TRU/FLO® Compound Water Meters (collectively the “Water Meters”), Neptune Technology Group Inc. (“Neptune”) warrants the following on meters sold on or after 11/1/92:

The Water Meters will be, at the later of (i) the date of original purchase from Neptune or (ii) the date of original shipment from Neptune-authorized distributor of Water Meters (that later date is referred to as “the Date of Shipment”) and will remain for a period of eighteen (18) months from the Date of Shipment, or twelve (12) months from date of installation, whichever comes first, free from manufacturing defects in workmanship and material.

(a) Maincase. The no-lead high copper alloy or Brass maincase of the Water Meters will be at the Date of Shipment free from manufacturing defects in workmanship and material for the life of the Water Meter.
(b) Frost Protection. All Neptune T-10 Cold Water Meters shipped with a synthetic polymer or cast-iron bottom cap will, commencing upon the Date of Shipment, be warranted against chamber damage for a period of ten (10) years. (c) Registers. Standard, roll sealed registers of the Water Meters will be at the Date of Shipment, and shall remain for the following periods, free from manufacturing defects in workmanship and material for a period of ten (10) years. The ARB®, ProRead™ (ARB VI), E-CODER® (ARB VII), and ProCoder™ system registers are warranted for ten (10) years from Date of Shipment. All ProRead encoder receptacles shipped after January 1, 2001, shall be warranted for five years from the Date of Shipment. All other components and parts are covered under Neptune’s standard one-year material and workmanship guarantee. (d) Meter Accuracy for Neptune T-10.

Neptune T-10 Meters and Neptune T-10
nutating disc chambers in TRU/FLO
Compound Water Meters are warranted to
meet or exceed, as listed herein, accuracy
standards of the AWWA Standard C700-95
for a period of: (i) five (5) years from Date
of Shipment for 5/8”, 3/4” and 1” meters;
(ii) for a period of two (2) years from the
Date of Shipment for 1 1/2” and 2” meters;
or (iii) the applicable registration shown
below, whichever occurs first. Neptune
further guarantees that the Neptune T-10 and Neptune T-10 nutating disc chambers in TRU/FLO Compound Water Meters will perform to at least Repaired Meter Accuracy Standards, according to AWWA Manual M-6 Chapter 5 (1999) Table 5.3 for an additional ten (10) years or the registration shown below, whichever occurs first.
(e) Meter Accuracy for HP Turbine and TRU/FLO. The HP Turbine and TRU/FLO Compound Cold Water Meters will perform, for a period of one (1) year from the Date of Shipment, to American Water Works Association (“AWWA”) accuracy standards for new water meters.

SIZE EXTENDED LOW FLOW ACCURACY NEW METER ACCURACY REPAIRED METER ACCURACY ⅝ & ⅝” x ¾” ⅛ US gpm @ 95%
5 years or 500,000 gallons 500,000 gallons 1,500,000 gallons ¾” ¼ US gpm @ 95%
5 years or 750,000 gallons 750,000 gallons 2,250,000 gallons 1” ⅜ US gpm @ 95%
5 years or 1,000,000 gallons 1,000,000 gallons 3,000,000 gallons 1 ½” ¾ US gpm@ 95%
2 years or 1,600,000 gallons 1,600,000 gallons 5,000,000 gallons 2” 1 US gpm @ 95%
2 years or 2,700,000 gallons 2,700,000 gallons 8,000,000 gallons

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© 2019 Neptune Technology Group Inc. All Rights Reserved. The trademarks, logos and service marks displayed in this document herein are the property of Neptune Technology Group Inc., its affiliates or other third parties. Availability and technical specifications are subject to change without notice. W METER 03.19

2. WARRANTY RETURN
If a Neptune Water Meter fails an accuracy test during an applicable warranty period, it may be returned to Neptune for repair or replacement at Neptune’s option.

An accuracy test shall be conducted by the customer according to AWWA standards. Any meter being returned for repair to Neptune under this performance guarantee must be returned with a copy of the customer’s test results. If the meter is returned to Neptune without a copy of the test results or if Neptune’s factory test shows the meter to meet current AWWA standards, the customer will be charged a nominal testing fee by Neptune in such cases. Neptune will repair or replace the meter at Neptune’s option after the meter has been tested by Neptune. Meters repaired or replaced under the performance guarantee will be guaranteed to perform to AWWA repaired meter accuracy standards.

3. WARRANTIES ARE EXCLUSIVE
The warranties set forth in this certificate of warranty are in lieu of any other warranty, guarantee, or representation, whether expressed or implied, including without limitation, the warranty of merchantability and the warranty of fitness for a particular purpose.

4. DAMAGES LIMITED TO COSTS OF REPLACEMENT AND REPAIR
If the Water Meter fails to meet the warranties set forth in Paragraph 1 of this Certificate of Warranty, Neptune, at its option shall, without charge of labor or materials, repair or replace the Water Meter or part thereof, provided that (a) the Water Meter is delivered to a Neptune representative, (b) the Water Meter is accompanied by a Return Material Authorization (RMA), and (c) all costs of delivery to Neptune are assumed by the purchaser of the Water Meter. Neptune’s liability is limited to its costs of replacement and repair of the defective water meter. Damages resulting from miscalculation of water usage or lost revenue or profit are not recoverable from Neptune. It is the responsibility of the customer to periodically verify the operation and accuracy of its meters.

5. WARRANTIES ARE INAPPLICABLE UNDER CERTAIN CONDITIONS The warranties set forth in this Certificate of Warranty do not apply to any Water Meter that has been damaged by, or subjected to, conditions which, in the opinion of Neptune, have affected the Water Meter’s ability of performance, including but not limited to: misuse; improper handling, application or installation; excessive operating conditions; foreign materials in the water; aggressive water conditions; tampering or unauthorized repairs or modifications; accidental or intentional damage; acts of God. This Certificate of Warranty shall not apply if product is placed in non-recommended installation, is connected or altered by other than Neptune recommended procedures, is used with other than genuine Neptune meter registers and components, or read by equipment not approved or licensed by Neptune. Neptune makes no claims concerning operability and/or compatibility or third party reading systems. In addition, this Certificate of Warranty shall not apply if third party reading equipment is believed to have caused damage to the meter or register. In order to determine its liability, if any, under this Certificate of Warranty, Neptune shall have the right to inspect any Water Meter or part thereof that is claimed to be defective at Neptune or other location designated by Neptune.

NEPTUNE’S LIABILITY WITH RESPECT TO BREACHES OF THE FOREGOING LIMITED WARRANTY SHALL BE LIMITED AS STATED HEREIN. NEPTUNE’S LIABILITY SHALL IN NO EVENT EXCEED THE PURCHASE PRICE. NEPTUNE SHALL NOT BE SUBJECT TO AND DISCLAIMS THE FOLLOWING: (1) ANY OTHER OBLIGATIONS OR LIABILITIES ARISING OUT OF BREACH OF CONTRACT OR OF WARRANTY (2) ANY OBLIGATIONS WHATSOEVER ARISING FROM TORT CLAIMS (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR

ARISING UNDER OTHER THEORIES OF LAW WITH RESPECT TO PRODUCTS SOLD OR SERVICES RENDERED BY NEPTUNE, OR ANY UNDERTAKINGS, ACT OR OMISSIONS RELATING THERETO, AND (3) ALL CONSEQUENTIAL, INCIDENTAL, SPECIAL, MULTIPLE, EXEMPLARY, AND PUNITIVE DAMAGES WHATSOEVER.

AGENDA ITEM #9.6
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© 2019 Neptune Technology Group Inc. All Rights Reserved. The trademarks, logos and service marks displayed in this document herein are the property of Neptune Technology Group Inc., its affiliates or other third parties. Availability and technical specifications are subject to change without notice. W BELT CLIP TRANSCEIVER 03.19

A NEPTUNE TECHNOLOGY GROUP WARRANTY STATEMENT
R900® Belt Clip Transceiver

WARRANTY - HARDWARE
The warranty on the R900® Belt Clip Transceiver is 12 months from shipment date. Warranty services provided during the warranty period are:
• For a unit defective in materials or workmanship, free repair of unit, including parts and labor (unless damaged by abuse or negligence) • Return shipment of repaired product via prepaid ground service • Repair turnaround time of five (5) working days, excluding transit time • Toll-free assistance provided by Customer Support 1-800-647-4832 • These services are the purchaser’s exclusive remedy for warranty issues

EXTENDED MAINTENANCE ENTITLEMENT
Extended maintenance entitlement is available from your authorized Neptune Sales Representative. Maintenance entitlement provided during extended period is:
• Free repair of unit, including parts and labor
• Return shipment of repaired product is prepaid ground service • Repair turnaround time of five (5) working days, excluding transit time • Toll-free assistance provided by Customer Support 1-800-647-4832

NOT INCLUDED IN EXTENDED MAINTENANCE ENTITLEMENT
• Accessories including rechargeable batteries, cables, charger, etc. • Equipment damaged by abuse or negligence, or environmental damage such as a result of fires and storms • Firmware modifications
• Priority Overnight return shipment of repaired units

REPAIR NOTES
A Return Material Authorization (RMA) number MUST accompany all incoming repairs. This number may be obtained by contacting Customer Support at [email protected] or 1-800-647-4832.
• Customer pays all incoming shipment charges
• Repair turnaround (non-warranty/non-maintenance) is approximately 15 business days*, excluding transit (*not including days required to obtain a purchase order for the repairs)
• All outgoing repairs are shipped ground service
• Requested Priority Overnight return shipment is paid by the purchaser • Repair warranty is 90 days from shipment date

NEPTUNE DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

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Warranty
The warranty on the R900® Gateway data collector system components is 12 months from shipment date. Warranty services provided during warranty period are:
• For a unit defective in materials or workmanship, free repair (including parts and labor), or at Neptune’s discretion, replacement of the defective unit • Return shipment of repaired product via prepaid ground service • Toll-free assistance at Customer Support 1-800-647-4832 • These services are purchaser’s exclusive remedy for warranty issues • Repair turnaround time of 10 working days, excluding transit time NOT included in the Warranty:
• Battery
• Cables and hardware
• Equipment damaged by abuse or negligence, or environmental damage as a fault of fires and storms • Firmware modifications
• Priority Overnight return shipment of repaired units
• USB flash drives
• Antennas
Extended Maintenance Contract Services:

Maintenance contracts are available from your authorized Neptune Sales representative. Maintenance contract services during the extended period include:
• Free repair of unit, including parts and labor
• Return shipment of repaired product is prepaid ground service • Free inspection and preventative maintenance
• Repair turnaround time of 10 working days, excluding transit time • Toll-free assistance at Customer Support 1-800-647-4832 NOT included in Extended Maintenance Contract Services:
• Batteries
• Cables and miscellaneous hardware
• Equipment damaged by abuse or negligence or environmental damage as a result of fires and storms • Firmware modifications
• Priority Overnight return shipment of repaired units
• Neptune disclaims any implied warranties, including the implied warranties of merchantability and fitness for a particular purpose • Antennas
• USB flash drive
W R900 GATEWAY 09.14

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A Return Material Authorization (RMA) number MUST accompany all incoming repairs.

This RMA number may be obtained by calling Customer Support at 1-800-647-4832. • Customer pays all incoming shipment charges
• All outgoing repairs are shipped ground service
• Requested Priority Overnight return shipment is paid by the customer • Repair warranty is 90 days from shipment date
• Warranty and maintenance contract repair turnaround time of 10 working days, excluding transit time • Non-warranty and non-maintenance contract repair turnaround time of 20 working days, excluding transit time NEPTUNE DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

W R900 GATEWAY 09.14

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© 2021 Neptune Technology Group Inc. All Rights Reserved. The trademarks, logos and service marks displayed in this document herein are the property of Neptune Technology Group Inc., its affiliates or other third parties. Availability and technical specifications are subject to change without notice. W E-CODER)R900i 08.21

A NEPTUNE TECHNOLOGY GROUP WARRANTY STATEMENT
E-CODER®)R900i™

1. WARRANTY EFFECTIVE DATE
This warranty will be effective for any E-CODER®)R900i™ that has shipped on or since August 1, 2021.

2. E-CODER)R900i
Neptune Technology Group Inc. warrants that the E-CODER)R900i (which includes a Neptune®-supplied battery that is not intended to be removable or replaceable) shall be free from defects in manufacture and design for a period of twenty (20) years from the “Date of Shipment” (such period being the “Warranty Period”). Neptune shall not be responsible for any defects in the E-CODER)R900i (whether due to design, materials, manufacture, or otherwise) which manifest themselves after the expiration of the Warranty Period. Neptune will repair or replace a non-performing E-CODER)R900i free of charge for the first ten (10) years and at a discount off of the then-current list price during the remaining ten (10) years according to the discount schedule at the right.

3. WARRANTIES ARE INAPPLICABLE UNDER CERTAIN CONDITIONS.

This warranty does not include field replacement labor or materials costs, which are the responsibility of the utility. This warranty does not apply if product is placed in non-recommended installations; may have been repaired with parts not recommended by Neptune; converted, altered, or connected by other than Neptune recommended procedures; is used with other than genuine Neptune meter registers and components or read by equipment not approved or licensed by Neptune; or damaged due to improper care or maintenance, or improper periodic testing (please refer to E-CODER)R900i Installation and Maintenance Guide). This warranty does not apply to any E-CODER)R900i that has been damaged by, or subjected to, conditions which, in the opinion of Neptune, have affected the ECODER)R900i register’s ability of performance, including but not limited to: misuse; improper handling; application or installation; excessive operating conditions; tampering or unauthorized repairs and modifications; accidental or intentional damage; or acts of God. In no event shall Neptune be liable for special, incidental, indirect, or consequential damages, including, without limitation, lost revenue.

THE ABOVE WARRANTY FOR THE E-CODER)R900i IS THE SOLE AND EXCLUSIVE WARRANTY GIVEN BY NEPTUNE WITH RESPECT TO THE E-CODER)R900i. ALL OTHER WARRANTIES, CONDITIONS, TERMS, REPRESENTATIONS, OR OTHER LEGALLY OPERATIVE PROVISIONS CONCERNING THE E-CODER)R900i ARE HEREBY EXPRESSLY

EXCLUDED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY, CONDITION, TERM, AND REPRESENTATION OR OTHER LEGALLY OPERATIVE PROVISION AS TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THIS PARAGRAPH IS EXPRESSLY INTENDED TO EXCLUDE FROM THIS CONTRACT ALL STATUTORY AND COMMON LAW WARRANTIES TO THE MAXIMUM EXTENT PERMITTED BY LAW. TO AVOID ANY AMBIGUITY OR MISUNDERSTANDING, ALL PROBLEMS ARISING WITH AN E- CODER)R900i AFTER THIS POINT ARE BUYER’S RESPONSIBILITY. NEPTUNE’S LIABILITY SHALL IN NO EVENT EXCEED THE PURCHASE PRICE OF THE E-CODER) R900i. NEPTUNE SHALL NOT BE SUBJECT TO AND DISCLAIMS THE FOLLOWING: (1) ANY OTHER OBLIGATIONS OR LIABILITIES ARISING OUT OF BREACH OF CONTRACT OR OF WARRANTY, (2)

ANY OBLIGATIONS WHATSOEVER ARISING FROM TORT CLAIMS (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR ARISING UNDER OTHER THEORIES OF LAW WITH RESPECT TO PRODUCTS SOLD OR SERVICES RENDERED BY NEPTUNE, OR ANY UNDERTAKINGS, ACTS, OR OMISSIONS RELATING THERETO, AND (3) ALL CONSEQUENTIAL, INCIDENTAL, SPECIAL, MULTIPLE, EXEMPLARY, AND PUNITIVE DAMAGES WHATSOEVER.

Year of Failure E-CODER)R900i
Replacement Price Discount*
1-10 Full replacement: 100%
11 70%
12 70%
13 60%
14 60%
15 50%
16 45%
17 40%
18 35%
19 30%
20 25%
* Replacement price discount percentages will be applied towards then-current contract prices in effect for the year product is accepted by Neptune under warranty conditions.

Replacement E-CODER)R900i registers are warranted for one (1) year after date of shipment or balance of original
E-CODER)R900i warranty, whichever is greater.

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City Council
July 19, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Reymundo Trejo, P.E., IWA General Manager
Subject: Approval of Fiscal Year 2023-24 Professional Services Agreement with Hunter Johnsen on behalf of the regional CV Water Counts group to support regional conservation outreach efforts in an amount not-to-exceed $157,000, of which IWA is solely responsible for $24,500

RECOMMENDATION:

That the City Council and Indio Water Authority Board approve the Professional Services Agreement in an amount not to exceed $157,000 with Hunter Johnsen on behalf of the regional CV Water Counts group that unanimously selected this vendor to support the Fiscal Year 2023-24 regional conservation outreach efforts.

SUMMARY:

CV Water Counts (CVWC) is the regional conservation outreach program for the Coachella Valley.

CVWC consists of the six (6) water agencies: Coachella Valley Water District, Coachella Water Authority, Desert Water Agency, Mission Springs Water District, Myo ma Dunes Mutual Water Company, and Indio Water Authority. The water agencies unanimously approved to move forward with Hunter Johnson to support regional conservation messaging efforts for Fiscal Year (FY) 2023 -

24. Additionally, IWA will serve as the account administrator for this fiscal year, as this role is rotated amongst the water agencies. IWA’s portion is $24,500 in accordance with the approved FY 2023 -24 budget.

BACKGROUND INFORMATION:

The six water agencies in the Coachella Valley unanimously appr ove to move forward with Hunter Johnson to support regional conservation messaging efforts during FY 2023 -24. This vendor was originally selected via the Request for Proposal (RFP) process and the vendor has maintained the same rates. There is a cost-sharing agreement amongst the six (6) local water agencies that comprise CVWC; IWA will be responsible for $24,500 of the overall $157,000 amount. Funds will be used towards content creation and development, media ad buys in digital, television, radio, and prin t, as well as regular programming support, including the annual CV Water Counts Academy in which participants attend multiple sessions to learn about water. The regional outreach approach is to ensure consistent messaging throughout the region, and comply with Level 1 Water Shortage Contingency Plan actions to have regular conservation messaging.

The account administrator role is rotated amongst the participating water agencies, in which IWA will serve in this role for FY 2023 -24. As the account administ rator, IWA will be invoicing the water agencies for their contribution and processing vendor invoices.

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Funding has been earmarked in IWA’s FY 2023 -24 budget to cover this expense. Staff is recommending approval of the Professional Services Agreement on behalf of the regional CVWC for $157,000 to support regional conservation messaging efforts.

ATTACHMENTS:

Attachment 1 -Professional Services Agreement

APPROVAL(S):

Reymundo Trejo, P.E., IWA General Manager Approved - 05 Jul 2023 Steven Graham, City Attorney Approved - 10 Jul 2023
Brian Kinder, Finance Manager Approved - 11 Jul 2023
Bryan H. Montgomery, City Manager Approved - 11 Jul 2023

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

THE INDIO WATER AUTHORITY,

A JOINT POWERS AUTHORITY

AND

HUNTER JOHNSEN, INC.

Form Approved 09/01/2022

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PROFESSIONAL SERVICES AGREEMENT

FOR MONTHLY MARKETING, ADVERTISING, DESIGN, AND PUBLIC RELATIONS ASSISTANCE

BETWEEN THE INDIO WATER AUTHORITY AND HUNTER JOHNSEN

THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this 1st day of July, 2 023 (“Effective Date”), by and between the INDIO WATER AUTHORITY (“Authority”), a joint powers authority and HUNTER JOHNSEN , (“Consultant ”). For the purposes of this Agreement Authority and Consultant are sometimes hereinafter referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS

1. Authority has sought by a prior issuance of request for proposals for the performance of the monthly marketing, advertising, design, and public relations assistance defined and described particularly in Section 2 , “Scope of Services and Schedule of Performance” of this Agreement.

2. Consultant was selected by Authority to perform those services.

3. Consultant was selected by Authority on the basis of Consultant’s demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services required.

4. Pursuant to the Chapter 33 of the Indio Municipal Code, Authority has authority to enter into this Agreement and the Executive Director has authority to execute this Agreement.

5. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in Section 2 “Scope of Services and Schedule of Performance” of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

OPERATIVE PROVISIONS
NOW, THEREFORE, for and in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

SECTION 1. TERM OF AGREEMENT
(a) Subject to the provisions of Section 20 "Termination of Agreement" of this Agreement, the Term of this Agreement is through June 30, 2024, commencing on Effective Date, unless otherwise extended by written agreement of the Parties.

(b) The Executive Director may, in his or her sole discretion, unilaterally exercise an option to extend the Agreement on a month-to-month basis following expiration on the same terms

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and conditions, including compensation as set forth in Section 4 “Compensation and Method of Payment.”

(c) Consultant acknowledges that the Agreement term may extend over multiple Authority fiscal years, and that work and compensation under this Agreement is contingent on the Authority’s Governing Board (“Board”) appropriating funding for and authorizing such work and compensation for those fiscal years. This Agreement may be terminated by the Executive Director at the end of a fiscal year when sufficient funding is not appropriated and authorized for the subsequent fiscal year. Authority is not obligated to pay Consultant for any amounts not duly appropriated and authorized by Board.

SECTION 2. SCOPE OF SERVICES AND SCHEDULE OF PERFORMANCE (a) SCOPE OF SERVICES. Subject to this Agreement, all addendums and exhibits attached and incorporated hereto, Consultant agrees to perform the services and tasks set forth in Exhibit “A” “Scope of Services” (hereinafter, the “Services”) and the Authority agrees to retain and does hereby retain Consultant for the Services.

(b) SCHEDULE OF PERFORMANCE. The Services shall be completed pursuant to the schedule specified in Exhibit “A.” Should the Services not be completed pursuant to that schedule, the Consultant shall be deemed to be in Default of this Agreement. The Authority, in its sole discretion, may choose not to enforce Section 21, “ Default” of this Agreement and may instead allow Consultant to continue performing the Services.

SECTION 3. ADDITIONAL SERVICES.

Consultant shall not be compensated for any work rendered in connection with its performance of this Agreement that are in addition to or outside of the Services unless such additional services are authorized in advance and in writing in accordance with Section 26 “Administration and Implementation” or Section 28 “Amendment” of this Agreement. If and when such additional work is authorized, such additional work shall be deeme d to be part of the Services.

SECTION 4. COMPENSATION AND METHOD OF PAYMENT.
(a) Subject to any limitations set forth in this Agreement, Authority agrees to pay Consultant the amounts specified in Exhibit “B” “Compensation” and made a part of this Agreement by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed $157,000 unless additional compensation is approved in writing in accordance with Section 26 “Administration and Implementation” or Section 28 “Amendment” of this Agreement. Payment shall be made in accordance with Authority’s usual accounting procedures upon receipt and approval of an itemized invoice setting forth the services performed. The invoices shall be delivered to Authority at the address set forth in Section 24, “Notices” hereof. Under no circumstances shall the total amount paid to Consultant under this Agreement exceed the Executive Director’s authority under Indio Municipal Code Section 33.116 (C)(2) without approval by the Board.

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(b) Each month Consultant shall furnish to Authority an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and subconsultant contracts. Subconsultant charges shall be detailed by the following categories: labor, travel, materials, equipment and supplies. If the compensation set forth in subsection (a) and Exhibit “A” include payment of labor on an hourly basis (as opposed to labor and materials being paid as a lump sum), the labor category in each invoice shall include detailed descriptions of tasks performed and the amount of time incurred for or allocated to that task. Authority shall independently revie w each invoice submitted by the Con sultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. In the event that no charges or expenses are disputed, the invoice shall be approved and paid according to the terms set forth in subsection (c). In the event any charges or expenses are disputed by Authority, the original invoice shall be returned by Authority to Consultant for correction and resubmission.

(c) Except as to any charges for work perf ormed or expenses incurred by Consultant which are disputed by Authority, Authority will use its best efforts to cause Consultant to be paid within forty-five (45) days of receipt of Consultant’s correct and undisputed invoice.

(d) Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

(e) If this Agreement is extended pursuant to Section 1 “Term of Agreement,” the Authority shall pay the same rates specified in Exhibit “A” “Compensation.” SECTION 5. INSPECTION AND FINAL ACCEPTANCE.

Authority may inspect and accept or reject any of Consultant’s work under this Agreement, either during performance or when completed. Authority shall reject or finally accept Consultant’s work within sixty (60) days after submitted to Authority. Authority shall reject work by a timely written explanation, otherwise Consultant’s work shall be deemed to have been accepted.

Authority’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as amount to fraud. Acceptance of any of Consultant’s work by Authority shall not constitute a waiver of any of the provisions of this Agre ement including, but not limited to, Section 16 “Indemnification” and Section 17 “Insurance.” SECTION 6. OWNERSHIP OF DOCUMENTS.

All original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents prepared, developed or discovered by Consultant in the course of providing the Services pursuant to this Agreement shall become the sole property of Authority and may be used, reused or otherwise disposed of by Authority without the permission of the Consultant. Upon completion, expiration or termination of this Agreement, Consultant shall

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turn over to Authority all such original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents.

If and to the extent that Authority utilizes for any purpose not related to this Agreement any maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files or other documents prepared, developed or discovered by Consultant in the course of providing the Services pursuant to this Agreement, Consultant’s guarantees and warr anties in Section 9 “Standard of Performance” of this Agreement shall not extend to such use of the maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files or other documents.
(a) INTELLECTUAL PROPERTY RIGHTS ASSIGNMENT. For no additional compensation, Consultant hereby assigns to Authority all of Consultant’s rights, title, and interest in and to the content of all deliverable materials created by Consultant or its employees, agents, or subconsultants, including copyrights, in connection with the Services performed under this Agreement. Consultant shall promptly execute and deliver, and shall cause its employees, agents, and subconsultants to promptly execute and deliver, upon request by the Authority or any o f its successors or assigns at any time and without further compensation of any kind, any power of attorney, assignment, application for copyright, patent, trademark or other intellectual property right protection, or other papers or instruments which may be necessary or desirable to fully secure, perfect or otherwise protect to or for the Authority, its successors and assigns, all right, title and interest in and to the content of the deliverable materials. For purposes of this section deliverable materials includes all works, tangible or not, created under this Agreement including, without limitation, documents, material, data, reports, manuals, specifications, artwork, drawings, sketches, computer programs and databases, schematics, photographs, video and audiovisual recordings, sound recordings, marks, logos, graphic designs, notes, website, domain names, inventions, processes, formulas matters and combinations thereof, and all forms of intellectual property. The provisions of this paragraph are binding on the successors, assigns and heirs of Consultant and shall survive the termination of Consultant’s Services under this Agreement.

SECTION 7. CONSULTANT’S BOOKS AND RECORDS.
(a) Consultant shall maintain any and all documents and records demonstrating or relating to Consultant’s performance of the Services. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, or other documents or records evidencing or relating to work, services, expenditures and disbursements charged to Authority pursuant to this Agreement. Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and sha ll be sufficiently complete and detailed so as to permit an accurate evaluation of the services provided by Consultant pursuant to this Agreement. Any and all such documents or records shall be maintained for three (3) years from the date of execution of this Agreement and to the extent required by laws relating to audits of public agencies and their expenditures.

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(b) Any and all records or documents required to be maintained pursuant to this section shall be made available for inspection, audit and copying, at any time during regular business hours, upon request by Authority or its designated representative. Copies of such documents or records shall be provided directly to the Authority for inspection, audit and copying when it is practical to do so; otherwi se, unless an alternative is mutually agreed upon, such documents and records shall be made available at Consultant’s address indicated for receipt of notices, “Section 24,” of this Agreement.

(c) Where Authority has reason to believe that any of the documents or records required to be maintained pursuant to this section may be lost or discarded due to dissolution or termination of Consultant’s business, Authority may, by written request, require that custody of such documents or records be given to the Authority. Access to such documents and records shall be granted to Authority, as well as to its successors in interest and authorized representatives.

SECTION 8. INDEPENDENT CONTRACTOR.
(a) Consultant is and shall at all times remain a wholly independent contract or and not an officer, employee or agent of Authority. Consultant shall have no authority to bind Authority in any manner, nor to incur any obligation, debt or liability of any kind on behalf of or against Authority, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by Authority.

(b) The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither Authority, nor any elected or appointed boards, officers, officials, employees or agents of Authority, shall have control over the conduct of Consultant or any of Consultant’s officers, employees, subconsultants or agents except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees, or agents are in any manner officials, officers, employees or agents of Authority.

(c) Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to Authority’s employees. Consultant expressly waives any claim Contractor may hav e to any such rights.

SECTION 9. STANDARD OF PERFORMANCE.

Consultant represents and warrants that it has the qualifications, experience and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent and professional manner. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all Services. In meeting its obligations under this Agreement, Consultant shall employ, at a minimum, generally accepte d standards and practices utilized by persons engaged in providing services similar to the Services required of

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Consultant under this Agreement, and shall use such skill, prudence, and diligence as other members of Consultant’s profession commonly possess and exercise. In addition to the general standards of performance set forth this section, additional specific standards of performance and performance criteria may be set forth in Exhibit “A” “Scope of Services” that shall also be applicable to Consultant’s work under this Agreement. Where there is a conflict between a general and a specific standard of performance or performance criteria, the specific standard or criteria shall prevail over the general.

SECTION 10. COMPLIANCE WITH APPLICABLE LAWS; PERMITS AND LICENSES.

Consultant shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this Agreement. Consultant shall at all times obse rve and comply with all such laws, ordinances and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations. Consultant represents and warrants that Consultant has obtained or shall promptly obtain all necessary licenses to perform the Services set forth in this Agreement and that such licenses are in good standing. Consultant further represents and warrants that the services provided herein shall conform to all ordinances, policies and pract ices of the Authority.

Neither Authority, nor any elected or appointed boards, officers, officials, employees or agents of Authority, shall be liable, at law or in equity, as a result of any failure of Co nsultant to comply with this section.

SECTION 11. PREVAILING WAGE LAWS.
(a) Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects.

To the extent applicable, Consultant shall defend, indemnify, and hold the Authority, its elected officials, officers, employees, and agents free and harmless form any claim or liability arising out of any failure or alleged failure of Consultant to comply with the Prevailing Wage Laws.
(b) It is the understanding of Authority and Consultant that Prevailing Wage Laws do not apply to this Agreement because the Agreement does not involve any of the following services subject to prevailing wage rates pursuant to the California Labor Code or regulations promulgated thereunder: Construction, alteration, demolition, inst allation, or repair work performed on public buildings, facilities, streets or sewers done under contract and paid for in whole or in part out of public funds. In this context, “construction" includes work performed during the design and preconstruction phases of construction including, but not limited to, inspection and land surveying work.

SECTION 12. NONDISCRIMINATION.

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Consultant shall not discriminate, in any way, against any person on the basis of race, color, religious creed, national origin, ancestry, sex, age, physical handicap, medical condition or marital status in connection with or related to the performance of this Agreement.

SECTION 13. UNAUTHORIZED ALIENS.

Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of the Services, an d should the any liability or sanctions be imposed against Authority for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse Authority for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by Authority.

SECTION 14. CONFLICTS OF INTEREST.
(a) Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of Authority or which would in any way hinder Consultant’s performance of the Services. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Executive Director. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of Authority in the performance of this Agreement. (b) Authority understands and acknowledges that Consultant is, as of the date of execution of this Agreement, independently involved in the performance of non -related services for other governmental agencies and private parties. Consultant is unaware of any stated position of Authority relative to such projects. Any future position of Authority on such projects shall not be considered a conflict of interest for purposes of this section. (c) Authority understands and acknowledges that Consultant will, perform non -related services for other governmental agencies and private parties follow ing the completion of the Services under this Agreement. Any such future service shall not be considered a conflict of interest for purposes of this section.

SECTION 15. CONFIDENTIAL INFORMATION; RELEASE OF INFORMATION. (a) All information gained or work prod uct produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than Authority without prior written authorization from the Executive Director , except as may be required by law.

(b) Consultant, its officers, employees, agents or subcon sultants, shall not, without prior written authorization from the Executive Director or unless requested by the General Counsel of Authority , voluntarily provide declarations, letters of support, testimony at

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depositions, response to interrogatories or other info rmation concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives Authority notice of such court order or subpoena.

(c) If Consultant, or any officer, employee, agent or subconsultant of Consultant, provides any information or work product in violation of this Agreement, then Authority shall have the right to reim bursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, c aused by or incurred as a result of Consultant’s conduct.

(d) Consultant shall promptly notify Authority should Consultant, its officers, employees, agents or subcon sultants be served with any summons, complaint, subpoena, notice of deposition, request for do cuments, interrogatories, request for admiss ions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. Authority retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding.

Consultant agrees to cooperate fully with Authority and to provide Authority with the opportunity to review any response to discovery requests provided by Consultant.

However, this right to re view any such response does not imply or mean the right by Authority to control, direct, or rewrite said response.

SECTION 16. INDEMNIFICATION.
(a) INDEMNIFICATION BY CONSULTANT. To the fullest extent permitted by law, Consultant shall indemnify, protect, defend (with legal counsel reasonably acceptable to Authority) and hold harmless Authority and any and all of its elected and appointed officials, officers, employees, representatives and agents (“Indemnified Parties”) from and against any and all claims, actions and proceedings (whether at law or equity, administrative or judicial), demands, orders, judgments, losses, injuries (including, without limitation, injury to or death of an employee of Consultant or subconsultants), liabilities of every kind (including, without limitation, incidental and consequential damages, court costs, and litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and cost of investigation), damages, costs and expenses, including attorney’s fees and costs, (collectively "Claims") that arise out of, pertain to, or relate to , directly or indirectly, in whole or in part, any goods provided or performance of Services by Consultant, its officers, agents, employees, representatives, subconsultants, anyone directly or indirectly employed by any of them, or anyone that they control . Consultant’s duty to indemnify, protect, defend and hold harmless Indemnified Parties, shall not include any Claims arising from the sole negligence or willful misconduct of the Indemnified Parties.

(b) INDEMNIFICATION FROM SUB-CONSULTANTS. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subconsultant, subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement naming the

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Indemnified Parties as additional indemnitees. In the event Consultant fails to obtain such indemnity obligations from others as requ ired here, Consultant agrees to be fully responsible according to the terms of this section. Failure of Authority to monitor compliance with these requirements imposes no additional obligations on Authority and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend Authority as set forth herein is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this Agreement and this section.

SECTION 17. INSURANCE.

Consultant agrees to obtain and maintain in full force and effect during the Term of this Agreement the insurance policies set forth in Addendum “1” “Insurance” and made a part of this Agreement. All insurance policies shall be subject to approval by Authority as to form and content.

These requirements are subject to amendment or waiver if so approved in writing by the Executive Director. Consultant agrees to provide Authority with copies of required policies upon request.

SECTION 18. ASSIGNMENT.

The expertise and experience of Consultant are material considerations for this Agreement.

Authority has an interest in the qualifications and capability of the persons and entities who will fulfill the duties and obligations imposed upon Consultant under this Agreement. In recognition of that interest, Consultant shall not assign or transfer this Agreement or any portion of this Agreement or the performance of any of Consultant’s duties or obligations under this Agreement without the prior written consent of the Authority, which may be given in the sole and absolute discretion of the Executive Director. Any attempted assignment shall be ineffective, null and void, and shall constitute a material breach of this Agreement entitling Authority to any and all remedies at law or in equity, including termination of this Agreement pursuant to Section 20 “Termination of Agreement.” Authority acknowledges, however, that Consultant, in the performance of its duties pursuant to this Agreement, may utilize subconsultants.

If in the performance of its duties Consultant utilizes subconsultants or subcontractors, Consultant covenants that subcontracts, if any, shall contain a provision making subconsultants or subcontractors subject to all provisions stipulated in this Agreement, including without limitation, the insurance obligations set forth in Section 17 “Insurance.” The Consultant acknowledges and agrees that the Authority is an intended beneficiary of any work performed by any subconsultant or subcontractor for purposes of establishing a duty of care between any subconsultant or subcontractor and the Authority.

SECTION 19. CONTINUITY OF PERSONNEL.

Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors / subconsultants, if any, assigned to perform the Services.

Consultant shall notify Authority of any changes in Consultant’s staff and subcontractors / subconsultants, if any, assigned to perform the Services prior to and during any such performance.

SECTION 20. TERMINATION OF AGREEMENT.

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(a) Authority may terminate this Agreement, with or without cause, at any time by giving written notice of termination to Consultant. In the event such notice is given, Consultant shall cease immediately all work in progress.

(b) Consultant may terminate this Agreement for cause at any time upon thirty (30) days written notice of termination to Authority.

(c) If either Consultant or Authority fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Consultant, or Authority may terminate this Agreement immediately upon written notice.

(d) Upon termination of this Agreement by either Consultant or Authority, all property belonging exclusively to Authority which is in Consultant’s possession shall be returned to Authority. Consultant shall furnish to Authority a final invoice for work performed and expenses incurred by Consultant, prepared as set forth in Section 4 “Compensation and Method of Payment” of this Agreement. This final invoice shall be reviewed and paid in the same manner as set forth in Section 4 “Compensation and Method of Payment” of this Agreement.

(e) Upon written notice, Authority may suspend all or any portion of Consultant’s performance under this Agreement at its sole option and for its convenience for a reasonable period of time not to exceed six (6) months. Authority will pay to Consultant a sum equivalent to the reasonable value of the services satisfactorily provided up to the date of suspension.

Authority may rescind the suspension prior to or at six (6) months by providing Consultant with written notice of the rescission, at which time Consultant would be required to resume performance in compliance with the terms and pro visions of this Agreement. Consultant will be entitled to an extension of time to complete performance under th is Agreement equal to the length of the suspension unless otherwise agreed to in writing by the Parties.

SECTION 21. DEFAULT.

In the event that Consultant is in default under the terms of this Agreement, the Authority shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the Authority may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but may be extended or reduced, if circumstances warrant. During the period of time that Consultant is in default, the Authority shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the Authority may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default, the Authority may take necessary steps to terminate this Agreement under Section 20 “Termination of Agreement.” Any failure on the part of the Authority to give notice of the Consultant’s default shall not be deemed to result in a waiver of the Authority’s legal rights or any rights arising out of any provision of this Agreement.

SECTION 22. EXCUSABLE DELAYS.

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Consultant shall not be liable for damages, including liquidated damages, if any, caused by delay in performance or failure to perform due to causes beyond the control of Consultant. Such causes include, but are not limited to, acts of God, acts of the public enemy , acts of federal, state or local governments, acts of Authority, court orders, fires, floods, epidemics, strikes, embargoes, and unusually severe weather. The term and price of this Agreement shall be equitably adjusted for any delays due to such causes.

SECTION 23. COOPERATION BY AUTHORITY.

All public information, data, reports, records, and maps as are existing and available to Authority as public records, and which are necessary for carrying out the Services shall be furnished to Consultant in every reasonable way to facilitate, without undue delay, the Services to be performed under this Agreement.

SECTION 24. NOTICES.

All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, or sent by telecopier or certified mail, postage prepaid and return receipt requested, addressed as follows:

To Authority: Indio Water Authority
Attn: General Manager
83101 Avenue 45
Indio, CA 92201

To Consultant: Hunter Johnsen
Attn: Chris Hunter
PO Box 1122
La Quinta, CA 92247
Notice shall be deemed effective on the date personally delivered or transmitted by facsimile or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service.

SECTION 25. AUTHORITY TO EXECUTE.

The person or persons executing this Agreement on behalf of Co nsultant represents and warrants that he/she/they has/have the authority to so execute this Agreement and to bind Consultant to the performance of its obligations hereunder.

SECTION 26. ADMINISTRATION AND IMPLEMENTATION.

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This Agreement shall be administered and executed by the Executive Director or his or her designated representative. The Executive Director shall have the authority to issue interpretations and to make amendments to this Agreement, including amendments that commit additional funds, consistent with Section 28 “Amendment” and the Executive Director’s contracting authority under the Indio Municipal Code.

SECTION 27. BINDING EFFECT.

This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

SECTION 28. AMENDMENT.

No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Consultant and by Authority. The Executive Director shall have the authority to approve any amendment to this Agreement if the total compensation under this Agreement, as amended, would not exceed the Executive Director ’s contracting authority under the Indio Municipal Code. All other amendments shall be approved by the Board. The Parties agree that the requirement for written modifications cannot be wa ived and that any attempted waiver shall be void.

SECTION 29. WAIVER.

Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision nor a waiver of any subsequent breach or violation of any provision of this Agreement.

Acceptance by Authority of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement.

SECTION 30. LAW TO GOVERN; VENUE.

This Agreement shall be interpreted, construed and governed according to the laws of the State of California. In the event of litigation between the Parties, venue in state trial courts shall lie exclusively in the County of Riverside, California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in Riverside.

SECTION 31. ATTORNEY’S FEES, COSTS AND EXPENSES.

In the event litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing Party in such litigation or other proceeding shall be entitled to an award of reasonable attorney's fees, costs and expenses, in addition to any other relief to which it may be entitled.

SECTION 32. ENTIRE AGREEMENT.

This Agreement, including the attached Exhibits and Addendums, along with any amendments thereto, is the entire, complete, final and exclus ive expression of the Parties with respect to the matters addressed therein and supersedes all other agreements or understandings,

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whether oral or written, or entered into between Consultant and Authority prior to the execution of this Agreement. No state ments, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid and binding.

SECTION 33. SEVERABILITY.

If any term, condition or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected thereby and the Agreement shall be read and construed without the invalid, void or unenforceable provision(s).

SECTION 34. INCORPORATION AND CONFLICTING TERMS.
(a) The following documents are incorporated and made part of this Agreement by this reference:

1. Insurance requirements (“Addendum 1”)

2. All Exhibits and Addendums

3. All amendments

4. Consultant’s proposal, if any

5. Any laws, regulations, requirements, or restrictions, applicable to the funding source used by Authority to pay Consultant for any portion of work done under Agreement (“Funding Restrictions”)
(b) The documents listed above shall be referred to collectively as the “Agr eement Documents.” The Agreement Documents are intended to be complementary, and a requirement in one Document is effective as if it appeared in all the Documents. In the event of a conflict between any of the Agreement Documents, the Documents shall be given effect in the following order: Funding Restrictions, Amendments (most recent first), this Agreement, Insurance requirements, Exhibits and Addendums, and Consultant’s proposal. Where the requirements of one Document are more stringent then another the more stringent shall govern.

SECTION 35. TIME OF ESSENCE.

Time is of the essence for each and every provision of this Agreement.

SECTION 36. FEDERAL FUNDS.

In the event the Services are funded either in whole or in part by a federal grant, Consultant shall comply with the requirements of Addendum “2” “Federal Funds.” [SIGNATURE PAGE FOLLOWS]

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Signature Page

PROFESSIONAL CONSULTANT SERVICES AGREEMENT

FOR MONTHLY MARKETING, ADVERTISING, DESIGN, AND PUBLIC RELATIONS ASSISTANCE

BETWEEN THE INDIO WATER AUTHORITY AND HUNTER JOHNSEN

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

INDIO WATER AUTHORITY
___________________________
Bryan H. Montgomery
Executive Director
ATTEST:

SECRETARY
By: ___________________________
Sabdi Sanchez, CMC
City Clerk Administrator
APPROVED AS TO FORM:

AUTHORITY GENERAL COUNSEL
By: ____________________________
Steven Graham

CONSULTANT
By:

Chris Hunter
President/Account Director

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EXHIBIT “A”

SCOPE OF SERVICES

Provide monthly marketing, advertising, design and public relations assistance. Consultant shall provide approximately 35-40 hours per month at rate as mentioned in Exhibit B.

The account management and media planning/buying services will involve the time of Chris Hunter (President/Account Director), the creative or production services will involve the time of Steve Johnsen (Vice President/Creative Director), the public relations services may involve the time of Ellen Paris or Sydney Weisman (Public Relations Counsel), the online services will involve the time of Casey Dolan (Director of Digital).

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EXHIBIT “B”

COMPENSATION

The CV Water Counts retained rate is $125 per hour, for a total of $4,500 per month.

Production, Printing, Products and/or Miscellaneous Costs $ 3,000 Media (Digital, Television, Radio, Outdoor and Print) $100,000 Agency Services $ 54,000
If a project falls outside the scope of this agreement, such as projects that involve extensive non- budgeted account services, public relations services, creative services and/or production services, an estimate will be submitted for Authority approval. For these projects, account services and creative services may be billed at the rate of $125 per hour.

Any production, printing, products or miscellaneous services sub-contracted will be invoiced to CV Water Counts and will be marked up 10%, unless otherwise agreed to by both parties.

Vendor invoices and/or receipts will be provided. In addition, Consultant shall collect a 15% commission on all digital media placed/purchased through the Authority, and the standard 15% agency media commission on all traditional media placed/purchased through the Authority.

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ADDENDUM “1”

INSURANCE
(A) INSURANCE REQUIREMENTS. Consultant shall provide and maintain insurance, acceptable to the Authority, in full force and effect throughout the term of this Agreement, against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Services by Consultant, its agents, representatives or employees. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Consultant shall provide the following scope and limits of insurance:

1. MINIMUM SCOPE OF INSURANCE. Consultant shall maintain the following types and limits of insurance.

2. MINIMUM LIMITS OF INSURANCE.

GENERAL LIABILITY INSURANCE. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

AUTOMOBILE LIABILITY INSURANCE. Consultant shall maintain automobile liability insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. An alternative to the commercial automobile liability insurance shall be proof of each driver’s personal auto policy.

PROFESSIONAL LIABILITY (ERRORS & OMISSIONS) INSURANCE. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.

WORKERS’ COMPENSATION INSURANCE. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000 per accident or disease). Consultant shall submit to Authority, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of Authority, its officers, agents, employees and volunteers. If exemption from Workers’ Compensation Insurance, then the Exemption from Workers’ Compensation form provided by the Authority shall be completed.

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UMBRELLA OR EXCESS LIABILITY INSURANCE. [Optional depending on limits required]. As an option to meet the limits of insurance required by this Agreement, Consultant may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automobile liability, and employer’s liability. Such policy or policies shall include the following terms and conditions:
 A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;
 Pay on behalf of wording as opposed to reimbursement;  Concurrency of effective dates with primary policies;  Policies shall “follow form” to the underlying primary policies; and  Insureds under primary policies shall also be insureds under the umbrella or excess policies.
(B) OTHER PROVISIONS. Each insurance policy required by this Agreement shall be endorsed and state the coverage shall not be suspended, voided, cancelled by the insurer or either Party to this Agreement, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to Authority.
(C) OTHER REQUIREMENTS. Consultant agrees to deposit with Authority, at or before the effective date of this Agreement, certificates of insurance necessary to satisfy Authority that the insurance provisions of this contract have been complied with. The Authority General Counsel may require that Consultant furnish Authority with copies of original endorsements effecting coverage required by this Section. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. Authority reserves the right to inspect complete, certified copies of all required insurance policies, at any time.

1. Upon request from the Authority, Consultant shall furnish certificates and endorsements from each subcontractor identical to those Consultant provides.

2. Any deductibles or self-insured retentions must be declared to and approved by Authority. At the option of Authority, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects Authority or its respective elected or appointed officers, officials, employees and volunteers or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims.

3. The procuring of such required policy or policies of insurance shall not be construed to limit Consultant’s liability hereunder nor to fulfill the indemnification provisions and requirements of this Agreement.

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4. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by Authority shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of Authority before the Authority’s own insurance or self-insurance shall be called upon to protect it as a named insured.

5. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Authority, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against Authority, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

General liability policies shall provide or be endorsed to provide that Authority and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies.

This provision shall also apply to any excess/umbrella liability policies.

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City Council
July 19, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Mike Washburn, Chief of Police
Subject: Second Reading of 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:

Approve 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, 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 Cod e ("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 qualit y 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.

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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

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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

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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

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(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

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(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 #9.8
Second Reading of Ordinance 1794 , An Ordinance of the City Council of t... Page 187 of 968 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 attorneyCity 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

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/ / /
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:

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CITY CLERK ADMINISTRATOR

AGENDA ITEM #9.8
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City Council
July 19, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Mike Washburn, Chief of Police
Subject: Purchase of necessary equipment upgrades, software updates a five -year service upgrade agreement, and relocation of existing equipment to the new Dispatch Center from Motorola Solutions, Inc., in the amount of $726,542; and budget adjustments

RECOMMENDATION:

Approve the purchase of necessary equipment upgrades, software updates, a five -year service upgrade agreement, and relocation of existing equipment to the new Dispatch Center from Motorola Solutions, Inc., in the amount of $726,542; and direct the Finance Department to adjust appropriations as reflected in the financial summary of the report.

SUMMARY:

On April 21, 2021, City Council provided direction to staff to proceed with a transition plan for the City of Indio to join the County's Public Safety Enterprise Communications (“PSEC”) radio system and exit the Eastern Riverside County Interoperable Communications Authority (“ERICA”). The work detailed in the agreement will be completed in two phases: Phase 1 will cover the remaining equipment and software needs to ensure a sustainable transition to the PSEC system, while Phase 2 will include the relocation of the console positions and relevant equipment to the new Dispatch Center. Phase 1 is poised to complete the Indio Police Department's transition with a projected go-live date of Fall 2023.

Phase 2 is expected to be completed shortly after the construct ion of the Dispatch Center expected in late 2023. Motorola Solutions provided the Indio Police Department a quote for the required upgrades and equipment and relocation, totaling $726,542 over a five -year service agreement (Attachment 1).

BACKGROUND INFORMATION:

In July 2008, the Cities of Indio, Cathedral City, Desert Hot Springs, and Palm Springs formed the Eastern Riverside County Interoperable Communications Authority (“ERICA”) pursuant to a Joint Exercise of Powers Agreement ("JPA") in order to acqu ire, plan, design, finance, construct, operate and maintain a regional communication system serving the Coachella Valley and individual political jurisdiction therein. The existing infrastructure of ERICA is aging and the maintenance/replacement costs would have made the JPA economically unfeasible.

City Council held a study session on April 21, 2021, to discuss and provide input for the future of ERICA and received a presentation from a representative of the Riverside County Sheriff’s Department regarding the Public Safety Enterprise Communications (“PSEC”) radio system. City Staff presented information on both the ERICA system and the PSEC system to seek City Council's AGENDA ITEM #9.9
Purchase of necessary equipment upgrades, software updates a five-year s... Page 191 of 968 feedback regarding a potential exit from ERICA and a new partnership with Riverside County through PSEC. City Council provided direction to staff to begin the multi -tiered process to transition to the PSEC system from ERICA.

Indio's PSEC migration is in accordance with the City's Public Safety Strategic Plan. To date, the Department has completed the following PSEC transition action items:

• In December 2022, City Council approved a service upgrade agreement with Motorola Solutions, ensure equipment Center Dispatch current to to upgrades for the Inc., interoperability and compatibility with the PSEC system. • In December 2022, City Council approved a Professional Services Agreement ("PSA") with Dailey and Wells Communications, Inc., for police radios and installation services. • In February 2023, the Police Department purchased 238 brand -new mobile and portable radios.
• In April 2023, City Council authorized the execution of the PSEC Use Agreement allowing access to the PSEC radio system on a per radio, per month basis. With the agreement ratified by the County of Riverside Board of Supervisors in June 2023.

The Indio Police Department is also requesting this software upgrade be conducted pursuant to the "Cooperative Purchasing" exemption under Section 33.116 (C)(4)(c) of the Indio Municipal Code.

Motorola Solutions Inc. entered into a Master Purchase Agreement with the County of Los Angeles in June 2022 (Attachment 2) that covers the pricing of the equipment and services provided in the current agreement.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$687,721 In current year budget: No
Current FY General
Fund Impact:
$0.00 Budget adjustment: Yes
Next FY Financial
Impact:
$0.00 Strategic Objective: Public Safety
Source of funds: Proposition 172 Public Safety
Funds Fund-Org-Object
Reference:
220-555011

Additional Financial Details:

Description FY 23/24 FY 24/25 FY 25/26 FY 25/26 FY
26/27
FY
27/28
Hardware/Relocation
Costs $687,721 $0.00 $0.00 $0.00 $0.00 $0.00
Extended
Warranty/Support $0.00 $0.00 $9,327 $9,573 $9,828 $10,093

A budget adjustment is requested utilizing funds earmarked for public safety, sourced from Proposition 172, as follows:

Increase appropriations:
220-555011 Computer Equipment $687,721

AGENDA ITEM #9.9
Purchase of necessary equipment upgrades, software updates a five-year s... Page 192 of 968 Expected offset:
220-302003 Restricted Fund Balance $687,721

ATTACHMENTS:

Attachment 1: Motorola Proposal
Attachment 2: LA County Cooperative Purchasing - Motorola

APPROVAL(S):

Rob Rockwell, Asst. City Manager & Dir. Of Finance Approved - 10 Jul 2023 Steven Graham, City Attorney Approved - 10 Jul 2023
Bryan H. Montgomery, City Manager Approved - 11 Jul 2023

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The design, technical, and price information furnished with this proposal is proprietary information of Motorola Solutions, Inc. (Motorola). Such information is submitted with the restriction that it is to be used only for the evaluation of the proposal, and is not to be disclosed publicly or in any manner to anyone other than those required to evaluate the proposal, without the express written permission of Motorola Solutions, Inc.

MOTOROLA, MOTO, MOTOROLA SOLUTIONS, and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license. All other trademarks are the property of their respective owners. © 2023 Motorola Solutions, Inc. All rights reserved.

Indio Police Department
Console Relocation and
MCC7500E Addition
Firm Proposal
May 5, 2023

AGENDA ITEM #9.9
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otorola Solutions, Inc.
500 W Monroe Street, Ste 4400
Chicago, IL 60661-3781
USA
May 5, 2023
Ch
ief Erica Martinez
Police Dispatch Supervisor
Indio Police Department
46800 Jackson St, Indio
CA 92201
S
ubject: Console Relocation and MCC7500E Addition
D
ear Erica Martinez,
M
otorola Solutions, Inc. (“Motorola”) is pleased to have the opportunity to provide Indio Police Department (“Indio PD”) with quality communications equipment and services. The Motorola project team has taken great care to propose a solution that will meet your needs and provide unsurpassed value.

T
o best meet the functional and operational specifications of this solicitation, our solution includes a combination of hardware, software, and services. Specifically, this solution provides Indio PD with the costs for equipment and services to implement two (2) new dispatch console positions and four (4) APX 700/800 MHz Consolettes with antenna system, and one GTR 8000 with antenna system for the new dispatch site along with the relocation of six (6) console positions from the current dispatch site to the new dispatch site.

T
his proposal is subject to the discounting provided per the LA County Contract # MA-IS- 2240228-1, formerly known as MA-IS-1740313 and the terms and conditions of the agreement between the City of Indio and Motorola Solutions dated October 26, 2022 (executed December 15, 2022).. This proposal shall remain valid for a period of 90 days from the date of this cover letter. Alternatively, Motorola would be pleased to address any concerns Indio PD may have regarding the proposal. Any questions can be directed to your Motorola Account Executive, Lauren Kirkland, at (619) 405-7100.

W
e thank you for the opportunity to furnish Indio Police Department with “best in class” solutions and we hope to strengthen our relationship by implementing this project. Our goal is to provide you with the best products and services available in the communications industry.

S
incerely,
M
otorola Solutions, Inc.

Jerry Burch
MSSSI Vice President

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Console Relocation and MCC7500E Addition Firm Proposal Table of Contents

Use or disclosure of this proposal is subject to the restrictions on the cover page.

Motorola Solutions

Page i
Table of Contents
Section 1
System Description .................................................................................................................. 3

1.1 System Drawing ................................................................................................................... 4

1.2 Connection to the ASTRO25 System ................................................................................. 5

1.3 Dispatching Console Solution Component ....................................................................... 6

1.3.1 CommandCentral Hub .............................................................................................................................. 6

1.3.2 Enhanced Integrated Instant Recall Recorder (IRR)................................................................................ 7

1.3.3 Desktop Speakers .................................................................................................................................... 7

1.3.4 Microphone ............................................................................................................................................... 7

1.4 Additional Equipment .......................................................................................................... 7

1.4.1 Backup Stand-Alone GTR 8000 Base Station Radio ............................................................................... 7

1.4.2 APX Consolette ........................................................................................................................................ 8

1.4.3 DSC 8000 Conventional Site Controller ................................................................................................... 9

1.4.4 MCG 8000 CCGW .................................................................................................................................... 9

1.5 High-level Relocation Plan .................................................................................................. 9 Section 2
Statement of Work .................................................................................................................. 11

2.1 Responsibility Matrix ......................................................................................................... 11

2.2 Assumptions ...................................................................................................................... 18 Section 3
Acceptance Test Plan............................................................................................................. 19

3.1 MCC 7500 Trunked Resources ......................................................................................... 20

3.1.1 Instant Transmit ...................................................................................................................................... 20

3.1.2 Talkgroup Selection and Call ................................................................................................................. 21

3.1.3 Talkgroup Selection and Call - Secure ................................................................................................... 22

3.1.4 PTT Unit ID/Alias Display ....................................................................................................................... 23

3.1.5 Emergency Alarm and Call Display Description ..................................................................................... 24

3.1.6 Multigroup Call........................................................................................................................................ 25

3.1.7 Multi-Select Operation ............................................................................................................................ 26

3.1.8 Talkgroup Patch ..................................................................................................................................... 27

3.1.9 Talkgroup Patch - Secure ....................................................................................................................... 28

3.1.10 Talkgroup Patch with Conventional ........................................................................................................ 29

3.1.11 Multi-Select Operation in Secure Mode ................................................................................................. 30

3.1.12 Alert Tones - Talkgroup .......................................................................................................................... 31

3.1.13 Call Alert ................................................................................................................................................. 32

3.1.14 Console Initiated Private Call to Subscriber ........................................................................................... 33

3.1.15 Console Initiated Secure Private Call to Subscriber .............................................................................. 34

3.1.16 Console Initiated Private Call to a Console ............................................................................................ 35

3.1.17 Secure / Clear Cross-Mode Indication ................................................................................................... 36

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Motorola Solutions
Page ii

3.1.18 Console Priority ...................................................................................................................................... 37

3.1.19 Instant Recall Recorder (IRR) Operation ............................................................................................... 38

3.1.20 Activity Log ............................................................................................................................................. 39

3.2 Signoff Certificate .............................................................................................................. 40 Section 4
Project Schedule ...................................................................................................................... 42 Section 5
Service/Warranty ...................................................................................................................... 43

5.1 SUA II System Configuration .............................................................................................. 43 Section 6
Equipment List ..........................................................................................................................45 Section 7
Pricing Summary ...................................................................................................................... 50

7.1 Payment Terms .................................................................................................................... 51 Section 8
Contractual Documentation ..................................................................................................... 52

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Console Relocation and MCC7500E Addition Firm Proposal System Description

Use or disclosure of this proposal is subject to the restrictions on the cover page.

Motorola Solutions

Section 1
System Description
Motorola Solutions, Inc. has prepared this offer to provide the Indio Police Department with the costs for equipment and services to implement two (2) new dispatch console positions for the new dispatch site as an expansion to the existing console system that will be connected to the PSEC master site. This proposal also includes the services required to relocate the current six (6) MCC 7500E VPM-based console positions from the existing dispatch location to the new dispatching center.

The proposed solution for Indio PD consists of 2 new MCC 7500E console positions and associated peripheral hardware for the new dispatch site location. This solution also includes all additional equipment to be installed in the new equipment room to enable all required features and connectivity to the PSEC system master site.

This solution will allow Indio PD to continue operations at the existing PD while the two new positions are integrated at the new dispatch center. In order to minimize the interruption to operations during the relocation, Motorola has included 2 new switches, routers, and a site controller. Motorola is estimating this project will require a two-phase install and cutover that will be finalized during project implementation.

The following new equipment is included in this proposal:
- Two (2) MCC 7500E Console Positions
- Two (2) Site Routers
- Two (2) Site Switches
- One (1) Site Controller
- One (1) Enhanced Conventional Channel Gateway (ECCGW) - One (1) New Backup GTR 8000 Conventional Station with Antenna System - Four (4) APX Consolettes and Antenna System
- Spares
As an option, a 3rd dispatch position is included in this proposal and pricing can be seen in section 6 below.

Once the relocation is fully completed, the new Indio PD dispatch center will be comprised of eight (8) total console positions; 2 new MCC 7500E console positions and 6 existing MCC 7500 VPM based console positions. Please note that the existing MCC 7500 VPM-based consoles currently used by Indio PD and the new MCC 7500E Consoles have a short time delay (approx. 1 second) in audio playback due to difference in how the two console platforms process audio. In order to alleviate this potential delay issue the new MCC 7500E consoles must operate on talkgroups different than the existing MCC 7500 consoles, or be used with headsets to prevent confusion with existing MCC 7500 VPM based consoles. Alternatively, the existing VPM based MCC 7500 console can be migrated to MCC 7500E in the future and quoted in a separate proposal.

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Console Relocation and MCC7500E Addition Firm Proposal System Description

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Motorola Solutions

1.1 System Drawing

Figure: Indio PD Dispatch Site

Figure: Consolette Antenna System

The proposed Two (2) New MCC 7500E console positions with One (1) optional MCC 7500E will be located in the new Police department building, a system diagram is shown in figure titled “INDIO PD Dispatch Site.”
The MCC 7500E dispatch position supports commercially available accessories, including a USB microphone, USB headset, and USB footswitch, as shown in the figure titled “MCC 7500E Dispatch Position.”

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Motorola Solutions

Figure: MCC 7500E Dispatch Position with CCHUB (PC Included) The following list describes the components included for each dispatch position in the proposed configuration:
● Command Central Hub (CC HUB)
● Computer Display
● 2x Desktop Speakers
● 2x Headset Jacks
● 1x Dual Pedal Transmit Footswitch
● 1x Desktop Microphone
● 1x Over the Head Noise Cancelling Headset
● Enhanced Integrated Instant Recall Recorder (IRR)
● Standard Set of Spares (Refer to Equipment List)

1.2 Connection to the ASTRO25 System
The flexibility of the ASTRO25 system architecture allows the connection of the proposed console to be suited specifically to the city of Indio PD requirement, the proposed console site will connect into the ASTRO 25 Master Site (PSEC), a conceptual diagram of the proposed console connectivity has been provided in the figure below titled “System connectivity for proposed solution”

Figure: System Connectivity for Proposed Solution
The solution will rely on Ethernet links provided by Indio PD for backhaul connectivity. Indio PD will be procuring 2 links that will connect back to the PSEC Network.

The flexibility of the ASTRO 25 system architecture allows the connection of the proposed consoles to be suited specifically to Indio PD's needs.

Dual Site Link

The proposed console site for the new Indio dispatching center is remote from the core site and like the current console site design, will require redundant site links to provide path diversity. The console site has two logical connections to the core site with each connection using a different core router.

Each console site gateway provides an interface that handles the following IP traffic between the proposed console center and the PSEC ASTRO 25 core site:
• Network management traffic.
• Call control and audio traffic for all the calls being handled by the dispatch positions. • Aux I/O traffic for the Aux I/O being handled by the dispatch positions.

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Motorola Solutions

The site gateways fragment large IP packets according to industry standards, prioritize packets, and convert Ethernet data to the desired transport medium.

LAN Switches

The site LAN switches provide LAN interfaces for console site equipment and a LAN port for the link to the core site. Through the switch, service technicians can access the system’s configuration manager and service the equipment. Motorola is providing two switches for redundancy.

1.3 Dispatching Console Solution Component
The proposed components are connected together and to the rest of the ASTRO 25 system on an IP network through console site routers and switches. The console functions as an integrated component of the total radio system and fully participates in system-level features, such as end-to-end encryption and Agency Partitioning.

The console connects directly to the radio system’s IP transport network without gateways or interface boxes. Audio processing, encryption, and switching intelligence for dispatch are performed within each software- based dispatch position without additional centralized electronics.

Since the network is IP-based, the system interfaces and components can be distributed physically throughout the network. Some of the available console components are identified below.

Figure: Typical Console GUI

1.3.1 CommandCentral Hub
The MCC 7500E console position can be comprised of a CC Hub (with internal PC/dispatch software) and simply a headset, or combine Hub with the dispatcher’s monitor, keyboard, and mouse / trackball / touchscreen. Assign up to eight speakers, and easily connect with your choice of audio accessories.

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The all-in-one CommandCentral Hub offers multiple mounting options and is designed to support the simpler, more unified workspace of the future.

1.3.2 Enhanced Integrated Instant Recall Recorder (IRR) The Enhanced IRR is seamlessly integrated with the dispatch position’s software, allowing audio and call data from any radio or telephony resource to be recorded and easily played back. Call data includes PTT IDs, name of resource, start time and date, and stop time and date. Two analog inputs are available for use with recording audio from external devices.

1.3.3 Desktop Speakers
Two (2) audio speakers have been included with each dispatch position and can be configured to transmit audio from a specific talkgroup or set of talkgroups. Each speaker is a self-contained unit, with individual volume controls, and can be placed on a desktop or mounted on a rack or computer display.

1.3.4 Microphone
The microphone controls the dispatch position's general transmit and monitor features through two buttons on its base. The microphone can be fastened down or left loose. It can be used alone or in conjunction with a customer provided headset.

1.4 Additional Equipment
We have included the following additional equipment to extend the functionality of the new Indio PD Dispatch Site and seamless migration from the old site to the new one.

1.4.1 Backup Stand-Alone GTR 8000 Base Station Radio
The system design also includes backup (1) GTR 8000 Base Station Radio operating in the 700/800 MHz band. The standalone GTR 8000 Base Station Radio with duplexer is connected to its own antenna system which is provided by Indio PD.

Each GTR ships with a transceiver, power supply and power amplifier, however it only occupies 3 rack units of space. This small size allows for efficient use of site space.

Power Supply: The standard power supply allows operation from both AC and DC power. Also, standard Battery Revert and charging eliminates the need for an Uninterruptible Power Supply (UPS) in many installations. (Note: Battery Revert is not available in the power efficient power supply) Front Serviceability: The front serviceability allows for improved installation and serviceability.

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Figure: Stand Alone GTR 8000
Features:
• Software configurable, upgradable, and convertible hardware ensures long hardware lifespan
• Software-only installation can enable new features
• Remote system software upgrades and patching includes system release migration and security updates
• Easy to service - only front access is required and modules are hot-swap capable • AC/DC -48V power supplies with integrated battery revert and charging enables elimination of UPS installations in many site designs
• Supports AC and DC power
• Chassis is 3RU
• Size: 5.25" x 19" x 18"

1.4.2 APX Consolette
The APX Consolette provides a low-cost, mid-power wireless dispatch solution as an ideal complement to a modern P25 dispatch center.

Equipped with leading edge P25 Phase 2 TDMA technology and multi- band interoperability, the APX Consolette can also be used as an emergency backup station when infrastructure is offline, or for wireless access to different system types for increased interoperability between agencies.

The APX Consolette’s P25 operation and compatibility with legacy systems ensures that communications are clear, continuous, and coordinated across multiple users, agencies, and systems.

The durable robust metal housing provides durability and allows for easy servicing, while the integrated front panel numeric keypad allows fast access to radio controls.

The Four (4) proposed APX Consolettes have 700/800 MHz operation activated and will operate on either analog or digital conventional channels, in digital modes, they have AES enabled for Over-the-air encryption. The proposed consoles will have the ability to access and control Indio’s proposed Four (4) 700/800MHz APX Consolettes through the use of an Enhanced Conventional Channel Gateway (ECCGW). The MCC7500E console Processes audio received from the stations and controls various features on the stations, such as frequency selection and Private line selection. Additionally, The Enhanced Conventional Channel Gateway (ECCGW) will Interface with the proposed four (4) 700/800 MHz APX Consolettes to allow the recording of the talkgroups to an existing analog logger.

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Motorola Solutions

1.4.3 DSC 8000 Conventional Site Controller
The DSC 8000 Conventional Site Controller supports site Conventional operation where a Conventional channel gateway (CCGW) is located at the dispatch console site. If the link between the console site and the master site is lost, the DSC 8000 enables dispatchers to communication over Conventional resources.

Figure: Conventional Site Controller DSC 8000

1.4.4 MCG 8000 CCGW
Motorola is proposing MCG based CCGWs. The latest conventional channel gateway hardware provides the interface between the IP Network and conventional sites in an ASTRO 25 System by translating voice and data into the format needed for each individual site type.

The MCG8000 Supports circuit based, serial and Ethernet based interface to conventional base stations, the CCGW serves as the control point between the master site and the conventional site devices. The proposed CCGW will interface to the city of Indio PD consolettes.

Figure: Conventional Channel Gateway (CCGW)

1.5 High-level Relocation Plan
In preparation for relocation of the 6 current dispatch positions, Motorola has included a phased approach for this effort. The relocation plan will be finalized during the implementation process. The high-level relocation plan will consist of 2 parts as described below. • Part 1:

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- Build of the second Ethernet link from the new Indio dispatch building to the DSR at Blythe - Install the new FNE rack consisting of the new dispatch site equipment - Install 2 new dispatch positions
- Install 4 new APX Consolettes and new antenna system
- Install the backup GTR and new antenna system
- Relocate 2 existing dispatch positions
- Cutover the 2 new and 2 existing dispatch positions to the new dispatch site • Part 2:
- The remaining four positions in the old dispatch center will be removed and re-installed in the new dispatch center and cutover

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Console Relocation and MCC7500E Addition Firm Proposal Statement of Work

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Motorola Solutions

Section 2
Statement of Work
The below task list delineates the general responsibilities between Motorola Solutions and Indio PD as agreed to by contract. These steps will be reviewed and finalized during the Design Review to ensure the project is scoped properly. Any changes will be reviewed and agreed to by both parties prior to commencement of the project work.

2.1 Responsibility Matrix

Tasks Motorola
Solutions Indio PD

PROJECT INITIATION
Contract Finalization and Team Creation
Execute contract and distribute contract documents. X X Assign a Project Manager as a single point of contact. X X Assign resources. X X
Schedule project kickoff meeting. X X
Deliverable: Signed contract, defined project team, and scheduled project kickoff meeting.

Project Administration
Ensure that project team members attend all meetings
relevant to their role on the project. X X
Set up the project in the Motorola Solutions information system. X
Record and distribute project status meeting minutes. X Maintain responsibility for third-party services contracted by Motorola Solutions. X
Complete assigned project tasks according to the project schedule. X X
Submit project milestone completion documents. X
Upon completion of tasks, approve project milestone
completion documents.

X
Conduct all project work Monday thru Friday, 8:00 a.m. to 4:30 p.m.). X
Deliverable: Completed and approved project milestones throughout the project.

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Project Kickoff
Introduce team, review roles, and decision authority. X X Present project scope and objectives. X
Review SOW responsibilities and project schedule. X X
Schedule Design Review. X X
Deliverable: Completed project kickoff and scheduled Design Review.

Design Review
Review the Customer’s operational requirements. X X
Present the system design and operational requirements
for the solution. X
Present installation plan. X
Present preliminary implementation plan X
Present configuration and details of sites required by
system design. X
Validate that Customer sites can accommodate proposed
equipment. X X
Provide approvals required to add equipment to proposed existing sites.

X
Review safety, security, and site access procedures. X X Present equipment layout plans and system design
drawings. X
Provide backhaul performance specifications and
demarcation points. X
Provide heat load and power requirements for new
equipment. X
Provide information on existing system interfaces. X
Review and update design documents, including System
Description, Statement of Work, Project Schedule, and
Acceptance Test Plan, based on Design Review
agreements.

X

Provide minimum acceptable performance specifications
for customer provided hardware, software, LAN, WAN and
internet connectivity.

X

Execute Change Order in accordance with all material
changes to the Contract resulting from the Design Review. X Deliverable: Finalized design documentation based upon “frozen” design, along with any relevant Change Order documentation.

SITE PREPARATION AND DEVELOPMENT
Site Access
Provide site owners/managers with written notice to
provide entry to sites identified in the project design documentation.

X

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Deliverable: Access, permitting, and licensing necessary to install system equipment at each site.

Site Planning
Provide necessary space for installation of system
equipment.

X
Provide the R56 requirements for space, power,
grounding, HVAC, and connectivity requirements at the
dispatch site.

X

Ensure that the dispatch site meets the R56 standards for space, grounding, power, HVAC, and connectivity
requirements.

X
Provide adequate electrical power in proper phase and
voltage at sites.

X
Conduct site walks to collect pertinent information (e.g. location of telco, power, structures, etc.) X
Deliverable: Information and permitting requirements completed at each site.

General Facility Improvements
Provide adequate HVAC, grounding, lighting, cable routing, and surge protection based upon Motorola Solutions’
Standards and Guidelines for Communication Sites (R56).

X
Ensure the resolution of environmental and hazardous
material issues at each site including, but not limited to, asbestos, structural integrity (tower, rooftop, water tank, etc.), and other building risks.

X
Ensure that electrical service will accommodate installation of system equipment, including isolation transformers,
circuit breakers, surge protectors, and cabling.

X
Provide obstruction-free area for the cable run between the demarcation point and system equipment.

X
Supply interior building cable trays, raceways, conduits, and wire supports.

X
Deliverable: Sites meet physical requirements for equipment installation.

SYSTEM INSTALLATION
Equipment Order and Manufacturing
Create equipment order and reconcile to contract. X
Manufacture Motorola Solutions-provided equipment
necessary for system based on equipment order. X
Procure non-Motorola Solutions equipment necessary for
the system. X
Deliverable: Equipment procured and ready for shipment.

Equipment Shipment and Storage
Provide secure location for solution equipment. X
Receive solution equipment at the customer specified
location. X X
Inventory solution equipment. X

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Deliverable: Solution equipment received and ready for installation.

General Installation
Coordinate receipt of and inventory solution equipment
with designated contact. X X
The new proposed console equipment will be field staged at the PSEC master site. X
Install all proposed fixed equipment as outlined in the System Description based upon the agreed-upon floor
plans, connecting audio, control, and radio transmission cables to connect equipment to the power panels or
receptacles, and audio/control line connection points.

Installation performed in accordance with R56 standards and state/local codes.

X

Provide information on existing system interfaces, room layouts, or other information necessary for the assembly to meet field conditions.

X
Provide the site links between the new Indio PD site and PSEC Master/DSR sites.

X
Provide the MPLS router to facilitate the phase 1 relocation. X Provide system interconnections that are not specifically outlined in the system design, including dedicated phone circuits, microwave links, or other types of connectivity.

X
Complete the cabling/connecting of the subsystems to
each other (“connectorization” of the subsystems). X
Power up, load application parameters and program
equipment. X
Confirm system configuration and software compatibility with the existing system. X
Inventory the equipment with serial numbers and
installation references. X
Connect installed equipment to the provided ground
system. X
Label equipment, racks, and cables. X
Remove and dispose of old equipment. X
Perform preliminary audit of installed equipment to ensure compliance with requirements and R56 standards. X
Note any required changes to the installation for inclusion in the “as-built” system documentation. X
Deliverable: Equipment installed.

ASTRO 25 Core Configuration
Configure the PSEC ASTRO 25 system to support the
new MCC 7500E Dispatch Center. X
Deliverable: Riverside County PSEC ASTRO 25 core configuration completed.

Console Installation and Configuration

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Install Qty 2 console site equipment racks in the Radio room.

X
Install/relocate equipment racks to accommodate
relocated existing console site equipment.

X
Provide and install up to Qty 22 CAT6 cables from the
radio equipment room to the dispatch floor.

X
Provide and install the following:

Two (2) SGBs under the raised dispatch floor to connect to the MGB in the radio room.

A small SGB for each operator position to connect to the aforementioned SGBs.

X
Relocate six (6) existing console positions from the
current dispatch center to the new dispatch location, per the agreed upon relocation and cutover plan.

X
Identify connection points to console site and a
demarcation point located within 25 feet of the console interface.

X
Connect consoles to Ethernet demarcation points. X Install and configure four (4) APX Consolettes and interface to the CCGW. The CCGW will be the demarcation point to
the analog logging recorder.

X
Install and configure one backup GTR 8000 with the new
antenna system.

X
Interface the analog logging recorder to the CCGW. X
Install all proposed fixed equipment including two new
MCC7500E Console positions, as outlined in the system
description and connect the dispatcher accessories to the CC-Hub.

X
Develop templates for console programming. X
Perform console programming and configuration. X
Provide required radio ID and alias information to enable alias database setup for interface to consoles.

X
Deliverable: Console equipment installation completed.

Antenna and Transmission Line Installation
Install 4” conduit with weather head for consolette antennas and ground bus bar on the roof.

X
Install small support structure for Qty 2 antennas on the roof. 1 antenna will be installed for the GTR and 1 antenna will be installed for the Consolettes.

X
Install transmission lines required for system. X Perform sweep tests on Motorola provided transmission
lines. X

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Provide and install attachment hardware for supporting
transmission lines on antenna support structure as needed. X Supply and install ground buss bar at the bottom of each antenna support structure. X
Deliverable: Antenna Installation Complete.

SYSTEM OPTIMIZATION AND TESTING
R56 Site Audit
Perform R56 site-installation quality-audits, verifying proper physical installation and operational configurations for the equipment provided in this proposal.

X

Deliverable: R56 Standards and Guidelines for Communication Sites audits completed successfully.

Solution Optimization
Verify that all equipment is operating properly and that all electrical and signal levels are set accurately. X
Verify that all audio and data levels are at factory settings. X Verify communication interfaces between devices for
proper operation. X
Ensure that functionality meets manufacturers’
specifications and complies with the final configuration established during design review or system staging.

X

Deliverable: Completion of System Optimization.

Functional Acceptance Testing
Verify the operational functionality and features of the solution supplied by Motorola Solutions, as contracted. X Witness the functional testing. X
Document all issues that arise during the acceptance tests. X If any major task for the system as contractually described fails during the Customer acceptance testing or beneficial use, repeat that particular task after Motorola Solutions determines that corrective action has been taken.

X

Resolve any minor task failures before Final System
Acceptance. X
Document the results of the acceptance tests and present for review. X
Review and approve final acceptance test results. X
Document the results of the acceptance tests and present to the Customer for review. X
Deliverable: Completion of functional testing and approval by Customer.

Relocation Cutover
Conduct cutover meeting with relevant personnel to
address both how to mitigate technical and communication problem impacts to the users during cutover and during the general operation of the system.

X

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Finalize Cutover Plan. X X
Provide ongoing communication with users regarding the
project and schedule. X X
Begin dispatching from new MCC 7500E consoles. X Begin dispatching from new dispatch center for the existing MCC 7500 console positions.

X
Resolve punchlist items, documented during the
Acceptance Testing phase, in order to meet all the criteria for final system acceptance.

X

Assist Motorola Solutions with resolution of identified punchlist items by providing support, such as access to the sites, equipment and system, and approval of the resolved punchlist items.

X
Deliverable: Migration to new system completed, and punchlist items resolved.

Transition to Warranty and Service
Review the items necessary for transitioning the project to warranty support and service for the new equipment. X
Motorola Solutions to provide services during warranty
period and additional support/lifecycle services which align with the proposed services.

X

Provide a Customer Support Plan detailing the warranty
support associated with the contract equipment. X
Deliverable: Service information delivered and approved by Customer.

Finalize Documentation and System Acceptance
Provide manufacturer’s installation material, part list and other related material to Customer upon project
completion.

X

Provide an electronic as-built system manual. The
documentation will include the following:
 Site Block Diagrams.
 Site Floor Plans.
 Site Equipment Rack Configurations.
 Antenna Network Drawings for control stations.
 ATP Test Checklists.
 Functional Acceptance Test Plan Test Sheets and Results.  Equipment Inventory List.
 Console Programming Template (where applicable).
 Maintenance Manuals (where applicable).
 Technical Service Manuals (where applicable).

Drawings will be delivered in Adobe PDF format.

X

Receive and approve documentation. X
Execute Final Project Acceptance. X X
Deliverable: All required documents are provided and approved. Final Project Acceptance.

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2.2 Assumptions
Motorola has made several assumptions in preparing this proposal, which are noted below. In order to provide a firm quote, Motorola will need to verify all assumptions or seek alternate solutions in the case of invalid assumptions.
• This proposal assumes Indio PD will be operating on the PSEC ASTRO25 system at the time of installation/relocation during part 2 of the cutover plan. • Any equipment requiring relocation at the current dispatch location not listed in this proposal, is the responsibility of Indio PD.
• Indio PD will provide dry contact closures demarcated in the equipment room for all door, gate, controls, and wire all devices.
• Existing subscribers programming and configuration is not included in this proposal. • Indio PD is responsible for the setup of the six+ 3rd party mobiles to be installed at the operator positions.
• The new dispatch center will have sufficient space available for the system described as required/specified by R56.
• The new dispatch center will have adequate electrical power in the proper phase and voltage, and site grounding to support the requirements of the system described. • Any site/location upgrades or modifications are the responsibility of Indio PD. • Approved local, State, or Federal permits as may be required for the installation and operation of the proposed equipment are the responsibility of Indio PD. • Any required system interconnections not specifically outlined here will be provided by Indio PD.

These may include dedicated phone circuits, microwave links, Ethernet links or other types of connectivity between the Indio PD and the PSEC Core.
• No coverage guarantee is included in this proposal.
• No Aux I/Os are provided in this proposal.
• No new Logging solutions is provided in this proposal. • No UPS/backup power for consoles is provided in this proposal.

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Motorola Solutions Confidential Restricted Acceptance Test Plan 19 Section 3
Acceptance Test Plan
The final Acceptance Test Plan will be discussed and presented between Motorola and Indio PD. The summary outlined below is an example of features that can be validated prior to cutover.

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Motorola Solutions Confidential Restricted Acceptance Test Plan 20

3.1 MCC 7500 Trunked Resources

3.1.1 Instant Transmit

1. DESCRIPTION

The instant transmit switch provides immediate
operator access to a channel, independent of its
select status (selected or unselected). It provides
priority over other dispatcher transmit bars or
optional footswitches.

SETUP

RADIO-1 - TALKGROUP 1
CONSOLE-1 – TALKGROUP 1 (Selected),
TALKGROUP 2 (Unselect mode)

VERSION #1.010

2. TEST

Step 1. Using CONSOLE-1, press the Instant
Transmit button on TALKGROUP 1.

Step 2. Verify that the Transmit indicator is lit.

Step 3. Verify RADIO-1 can monitor and respond to
the call on TALKGROUP 1.

Step 4. On RADIO-1 change to TALKGROUP 2.

Step 5. Using CONSOLE-1, press the Instant
Transmit button on the TALKGROUP 2 radio
resource.

Step 6. Verify RADIO-1 can monitor and respond to
the call on TALKGROUP 2.

Pass____ Fail____

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Motorola Solutions Confidential Restricted Acceptance Test Plan 21 MCC 7100/7500 Trunked Resources

3.1.2 Talkgroup Selection and
Call

1. DESCRIPTION

The Talkgroup Call is the primary level of
organization for communications on a trunked radio
system. Dispatchers with Talkgroup Call capability
will be able to communicate with other members of
the same talkgroup. This provides the effect of an
assigned channel down to the talkgroup level. When
a Talkgroup Call is initiated from a subscriber unit,
the call is indicated on each dispatch operator
position that has a channel control resource
associated with the unit's channel/talkgroup.

SETUP

RADIO-1 - TALKGROUP 1
RADIO-2 - TALKGROUP 2
RADIO-3 - TALKGROUP 1
RADIO-4 - TALKGROUP 2
CONSOLE-1 - TALKGROUP 1
CONSOLE-2 - TALKGROUP 2

VERSION #1.010

2. TEST

Step 1. Initiate a wide area call from CONSOLE-1
on TALKGROUP 1.

Step 2. Observe that RADIO-1 and RADIO-3 will be
able to monitor the call. Dekey the console
and have either radio respond to the call.

Step 3. Observe that all consoles with TALKGROUP
1 can monitor both sides of the
conversation.

Step 4. Initiate a wide area call from CONSOLE-2
on TALKGROUP 2.

Step 5. Observe that RADIO-2 and RADIO-4 will be
able to monitor the call. Dekey the console
and have either radio respond to the call.

Step 6. Observe that all consoles with TALKGROUP
2 can monitor both sides of the
conversation.

Pass____ Fail____

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Motorola Solutions Confidential Restricted Acceptance Test Plan 22 MCC 7100/7500 Trunked Resources

3.1.3 Talkgroup Selection and
Call - Secure

1. DESCRIPTION

The Talkgroup Call is the primary level of
organization for communications on a trunked radio
system. Dispatchers with Talkgroup Call capability
will be able to communicate with other members of
the same talkgroup. This provides the effect of an
assigned channel down to the talkgroup level. When
a Talkgroup Call is initiated from a subscriber unit,
the call is indicated on each dispatch operator
position that has a channel control resource
associated with the unit's channel/talkgroup.

Digital encryption is used so only properly equipped
and configured subscribers can monitor the
conversation. A "Key" is used to encrypt the transmit
audio. Only radios and Consoles with the same
"Key" can decrypt the audio and listen to it.

SETUP

RADIO-1 - TALKGROUP 1 (Secure TX Mode)
RADIO-2 - TALKGROUP 2 (Secure TX Mode)
RADIO-3 - TALKGROUP 2 (No Keys)
RADIO-4 - TALKGROUP 1 (Clear TX Mode with
Keys loaded)
CONSOLE-1 - TALKGROUP 1 and TALKGROUP 2
(Secure TX Mode)

VERSION #1.040

2. TEST

Step 1. Initiate a wide area secure call from
CONSOLE-1 on TALKGROUP 1.

Step 2. Verify RADIO-1 can monitor and respond to
the secure call.

Step 3. Verify RADIO-4 can monitor and respond to
the secure call because even though it is in
clear mode the correct encryption keys are
loaded for the secure call.

Step 4. Initiate a wide area secure call from
CONSOLE-1 on TALKGROUP 2.

Step 5. Verify that RADIO-2 can monitor and
respond to the secure call. Note that
RADIO-3 cannot monitor the call.

Pass____ Fail____

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Motorola Solutions Confidential Restricted Acceptance Test Plan 23 MCC 7100/7500 Trunked Resources

3.1.4 PTT Unit ID/Alias Display

1. DESCRIPTION

Console operator positions contain various
resources such as talkgroup, multigroup, Private Call
which enables the dispatcher to communicate with
the subscriber units. If activity occurs on one of
these operator position resources, the unit ID or
associated alias of the initiating radio appears at the console resource.

SETUP

RADIO-1 - TALKGROUP 1
RADIO-2 - TALKGROUP 1
CONSOLE-1 - TALKGROUP 1
CONSOLE-2 - TALKGROUP 1

VERSION #1.010

2. TEST

Step 1. Select the resource for TALKGROUP 1 on
CONSOLE-1.

Step 2. Initiate a call on TALKGROUP 1 from
RADIO-2 and observe that the alias is seen
at CONSOLE-1 in the resource window as
well as in the Activity Log window.

Step 3. Initiate a call from RADIO-1 and observe
that the alias of RADIO-1 is seen at
CONSOLE-1 in the resource window as well
as in the Activity Log window.

Step 4. Modify RADIO-2's alias. Make sure to give
enough time for the alias change to
propagate to the Zone Controller.

Step 5. Initiate a call from RADIO-2 and observe the
new alias of RADIO-2 is seen at CONSOLE-
1 in the list in the resource window as well
as in the Activity Log window.

Step 6. Return RADIO-2's alias to its original state.

Pass____ Fail____

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Motorola Solutions Confidential Restricted Acceptance Test Plan 24 MCC 7100/7500 Trunked Resources

3.1.5 Emergency Alarm and Call
Display Description

1. DESCRIPTION

Users in life threatening situations can use the
emergency button on the radio to send an audible
alarm and a visual alarm signal to a console
operator in order to request immediate system
access to a voice channel for an emergency call.

An emergency alarm begins after the radio user
presses the radio's emergency button. Pressing the
emergency button places the radio in "emergency
mode". To begin an emergency call, the radio user
must press the radio's PTT button while in
"emergency mode." The assigned voice channel will
be dedicated to the emergency caller's talkgroup for
an extended period of time, equal to the Message
Hang Time plus the Emergency Hang Time. As with
other call types, emergency calls can operate across
sites as well as within the same site.

SETUP

RADIO-1 - TALKGROUP 1
CONSOLE-1 - TALKGROUP 1
CONSOLE-2 - TALKGROUP 1

VERSION #1.020

2. TEST

Step 1. Initiate an Emergency Alarm from RADIO-1.

Step 2. Observe the Emergency from RADIO-1 is
received at CONSOLE-1 for TALKGROUP 1
and the text in the talkgroup resource
indicates the trigger condition for the
emergency when applicable (mandown
condition, vehicle crash or vest pierce).

Step 3. Acknowledge the Emergency at the operator
position. Verify CONSOLE-2 receives
notification that the call has been
acknowledged.

Step 4. Initiate a call with RADIO-1 to initiate an
Emergency call.

Step 5. Observe CONSOLE-1 and CONSOLE-2 can
monitor RADIO-1

Step 6. Clear the Emergency from CONSOLE-1 on
TALKGROUP 1.

Step 7. End the Emergency Alarm from RADIO-1.

Pass____ Fail____

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Motorola Solutions Confidential Restricted Acceptance Test Plan 25 MCC 7100/7500 Trunked Resources

3.1.6 Multigroup Call

1. DESCRIPTION

This trunking feature allows an equipped console
operator position to transmit an announcement to
several different talkgroups simultaneously. As with
Talkgroup Calls, multigroup calls operate across
sites as well as within the same site.

SETUP

RADIO-1 - TALKGROUP 1
RADIO-2 - TALKGROUP 2
RADIO-3 - RANDOM
CONSOLE-1 - ATG 1

Note: TALKGROUP 1 and TALKGROUP 2 are
members of ATG 1. RANDOM is any talkgroup not a
member of ATG 1.

VERSION #1.010

2. TEST

Step 1. Using CONSOLE-1, select the ATG 1
resource.

Step 2. Initiate the Multigroup Call from CONSOLE-

1. Step 3. Observe that RADIO-1 and RADIO-2
receive the Multigroup Call.

Step 4. Verify that RADIO-3 does not receive the
Multigroup Call because it is not a member
of ATG 1.

Step 5. Answer the Multigroup Call using RADIO-1
and observe CONSOLE-1 receives the
response.

Step 6. Verify that if the call is answered within the
repeater hang time, the console will receive
the call on the ATG 1 resource tile,
otherwise the console will receive the call on
the TALKGROUP 1 tile.

Step 7. Verify that if the call is answered within the
repeater hang time, RADIO-2 will monitor
the call.

Pass____ Fail____