Indio City Council
July 16, 2025

Professional Services Agreement in a Time and Materials not to exceed am... Page 804 of 1774 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 observe 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 practices of the City. Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall be liable, at law or in equity, as a result of any failure of Consultant to comply with this section.

SECTION 11. RESERVED
SECTION 12. NONDISCRIMINATION.

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. RESERVED
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 City 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 subconsultant. To the extent applicable, Consultant further covenants that it has not contacted with nor is performing any services, directly or indirectly, with any developer or property owner or entity owning property within the City (or a study area) and further covenant and agrees that it shall provide no service or enter into any agreement with any developer or property owner or firm or partnership owning property within the City or the study area prior to completion of work under this Agreement. Consultant further agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.
(b) City understands and acknowledges that Consultant may be, 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 City relative to such projects. Any future position of City on such

Professional Services Agreement in a Time and Materials not to exceed am... Page 805 of 1774 projects shall not be considered a conflict of interest for purposes of this section.
(c)City understands and acknowledges that Consultant may perform nonrelated services for other governmental agencies and private parties following 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.
(d) During the term of this Agreement, Consultant shall complete a Form 700 as determined by the City’s Filing Officer.
(e) Consultant has completed the Levine Act statement attached as Exhibit E. (f) UNDUE INFLUENCE: Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement or financial inducement. No officer to employee of the City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.

Violation of this provision shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. (g) During the time of their tenure with the City and for one thereafter, no member, officer or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the services under this Agreement shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connect with the services performed under this Agreement.

SECTION 15. CONFIDENTIAL INFORMATION; RELEASE OF INFORMATION. (a) All information gained or work product 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 City without prior written authorization from the City Manager, except as may be required by law. (b) Consultant, its officers, employees, agents or subconsultants, shall not, without prior written authorization from the City Manager or unless requested by the City Attorney of City, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement.

Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena.

Professional Services Agreement in a Time and Materials not to exceed am... Page 806 of 1774 (c)Consultant shall promptly notify City should Consultant, its officers, employees, agents or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Unless Consultant is adverse to City, Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
(d) If Consultant, or any officer, employee, agent or subconsultant of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct.

SECTION 16A. INDEMNIFICATION. (NON-DESIGN PROFESSIONALS) INDEMNIFICATION BY CONSULTANT. To the fullest extent permitted by law, Consultant shall indemnify, protect, defend (with legal counsel reasonably acceptable to City) and hold harmless City and any and all of its elected and appointed officials, officers, employees, representatives, volunteers and agents (“Indemnified Parties”) from and against any and all losses, liabilities, demands, cost and expenses, including attorney’s fees and costs, caused in whole or in part by the negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subconsultants (or any agency or individual that Consultant shall bear the legal liability thereof) in the performance of services under this Agreement. Consultant’s duty to indemnify and hold harmless City shall not extend to the City’s sole or active negligence or willful misconduct.

DUTY TO DEFEND. In the event the Indemnified Parties, individually or collectively, are made a party to any action, lawsuit, or other adversarial proceeding arising from the performance of the services encompassed by this Agreement, and upon demand by City, Consultant shall defend the Indemnified Parties at Consultant’s cost or at City’s option, to reimburse City for its costs of defense, including reasonable attorney’s fees and costs incurred in the defense of such matters to the extent the matters arise from, relate to or are caused by Consultant’s negligent acts, errors or omissions. Payment by City is not a condition precent to enforcement of this provision.

In the event of any dispute between Consultant and City, as to whether liability arises from the sole or active negligence or willful misconduct of City or its officers, employee, or agents, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating the Indemnified

Professional Services Agreement in a Time and Materials not to exceed am... Page 807 of 1774 Parties as solely or actively negligent or to have acted with willful misconduct.

Consultant shall not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees, and costs of litigation.

SECTION 16B. INDEMNIFICATION. (DESIGN PROFESSIONALS)
IF THIS CONSULTANT IS A DESIGN PROFESSIONAL AS DEFINED IN CAL.

CIV. CODE § 2782.8, this Section shall supersede and replace all other indemnity provisions contained in the City's specifications, which shall have no force and effect.

DESIGN PROFESSIONAL INDEMNITY OBLIGATIONS. To the maximum extent permitted by law, Consultant shall defend, hold harmless and indemnify City, and any and all of its elected and appointed officials, officers, employees, agents, and designated volunteers (collectively, “Indemnitees”), from and against any and all claims, losses, liabilities, damages, costs and expenses, including attorneys’ fees and costs, to the extent they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant
Consultant’s duty to defend shall consist of reimbursement of defense costs incurred by Agency in direct proportion to the Consultant’s proportionate percentage of fault.

Consultant’s percentage of fault, for both indemnity and defense, shall be determined, as applicable, by a court of law, jury or arbitrator. In the event any loss, liability or damage is incurred by way of settlement or resolution without a court, jury or arbitrator having made a determination of the Consultant’s percentage of fault, and the parties cannot mutually agree on Consultant’s percentage of fault, the parties agree to mediation with a neutral third-party to determine the Consultant’s proportionate percentage of fault for purposes of determining the amount of indemnify and defense cost reimbursement owed to the City.

APPLICABLE TO ALL CONSULTANTS:

PROMPT PAYMENT OF JUDGEMENT. Consultant shall promptly pay any judgment rendered against City or any City Personnel for any such claims or liabilities incurred due to Consultant’s.

CLAIMS. Any claim by Consultant against City hereunder shall be subject to Government Code §§ 800 et seq. The claims presentation provisions of said Act are hereby modified such that the presentation of all claims hereunder to the City shall be waived if not made within six (6) months after accrual of the cause of action.

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”

Professional Services Agreement in a Time and Materials not to exceed am... Page 808 of 1774 “Insurance” and made a part of this Agreement. All insurance policies shall be subject to approval by City as to form and content. These requirements are subject to amendment or waiver if so approved in writing by the City Manager. Consultant agrees to provide City with copies of required policies upon request.

INSURANCE DOES NOT EXCUSE INDEMNIFICATION OBLIGATION. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant or Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any term of any insurance policy required under this Agreement.

NONWAIVER OF RIGHTS. Indemnitees do not and shall not waive any rights that they may possess against Consultant on the basis of acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement.

WAIVER OF RIGHT OF SUBROGATION. Consultant, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees.

SECTION 18. ASSIGNMENT.

The expertise and experience of Consultant are material considerations for this Agreement. City 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, the performance of any of Consultant’s duties or obligations under this Agreement nor any monies due under this Agreement, without the prior written consent of the City, which may be given in the sole and absolute discretion of the City Manager. Any attempted assignment shall be ineffective, null and void, and shall constitute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including termination of this Agreement pursuant to Section 20 “Termination of Agreement.”
City acknowledges, however, that Consultant, in the performance of its duties pursuant to this Agreement, may utilize subconsultants. Before retaining or contracting with any subconsultant for any services under this Agreement, Consultant shall provide City with the identity of the proposed Subconsultant, a copy of the proposed written contract between Consultant and such subconsultant which shall include an indemnity provision identical to the one provided herein identifying City as an indemnified party, or an incorporation of the indemnity provision provided therein, and proof that such proposed subconsultant carries insurance at least equal to that required by this Agreement or obtain a written waiver from the City for such insurance.

Consultant may use assistants, under its direct supervision, to perform some of the services under this Agreement. Consultant shall provide City at least

Professional Services Agreement in a Time and Materials not to exceed am... Page 809 of 1774 fourteen (14) days’ notice prior to the departure of such assistant from this employe. Should such assistant leave Consultant’s employ, the City shall have the option to immediately terminate this Agreement. Upon such termination, Consultant’s sole compensation shall be payment for actual services performed up to, and including the date of termination or as otherwise agreed to in writing with the City.

SECTION 19. RESERVED
SECTION 20. TERMINATION OF AGREEMENT.
(a) City may terminate this Agreement, with or without cause, at any time by giving prior 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 City.
(c)If either Consultant or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Consultant, or City may terminate this Agreement immediately upon written notice. (d) Upon termination of this Agreement by either Consultant or City, all property belonging exclusively to City which is in Consultant’s possession shall be returned to City. Consultant shall furnish to City 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, City 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. City will pay to Consultant a sum equivalent to the reasonable value of the services satisfactorily provided up to the date of suspension. City 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 provisions of this Agreement. Consultant will be entitled to an extension of time to complete performance under this 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 City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall

Professional Services Agreement in a Time and Materials not to exceed am... Page 810 of 1774 include the timeframe in which Consultant may cure the default. This timeframe is thirty (30) days, which may be extended or reduced, if circumstances warrant.

During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on approved invoices. In the alternative, the City 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 City may take necessary steps to terminate this Agreement under Section 20 “Termination of Agreement.” Any failure on the part of the City to give notice of the Consultant’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement.

SECTION 22. EXCUSABLE DELAYS.

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 either Party. Such causes include, but are not limited to, acts of God, acts of the public enemy, acts of federal, state or local governments, court orders, fires, floods, epidemics, strikes, embargoes, and unusually severe weather. The term of this Agreement shall be equitably adjusted for any delays due to such causes.

SECTION 23. COOPERATION BY CITY.

All public information, data, reports, records, and maps as are existing and available to City 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, delivered by a reputable document delivery service (i.e. Federal Express) which provides a receipt showing the date and time of delivery; or U.S. mail, certified mail, postage prepaid and return receipt requested, addressed as follows:

TO CITY: City of Indio
Attn: City Manager
100 Civic Center Mall
Indio, CA 92201
cc: City Representative E-mail

Professional Services Agreement in a Time and Materials not to exceed am... Page 811 of 1774 TO CONSULTANT: HdL Companies
Andrew Nickerson, President & CEO
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 Consultant 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.

Should signatory of this Agreement be unauthorized to bind Consultant, such signor shall be personally liable for the obligations set forth in this Agreement.

SECTION 26. ADMINISTRATION AND IMPLEMENTATION.

This Agreement shall be administered and executed by the City Manager or his or her designated representative. The City Manager 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 City Manager’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 City in the same manner as the Agreement was approved. . Notwithstanding, the City Manager shall have the authority to approve any amendment to this Agreement if the total compensation under this Agreement, as amended, would not exceed the City Manager’s contracting authority under the Indio Municipal Code. All other amendments shall be approved by the City Council. The Parties agree that the requirement for written modifications cannot be waived 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

Professional Services Agreement in a Time and Materials not to exceed am... Page 812 of 1774 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 City 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 exclusive expression of the Parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between Consultant and City prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid and binding. All prior or contemporaneous agreements, understandings, representations or statements, oral or otherwise, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth here and upon each party’s own independent investigation of any and all facts such party deems materials.

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) and all other parts, provisions or representations herein shall remain in full force or effect. .

SECTION 34. INCORPORATION AND CONFLICTING TERMS.

Professional Services Agreement in a Time and Materials not to exceed am... Page 813 of 1774 (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 City 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 “Agreement 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. [SIGNATURE PAGE FOLLOWS]

Professional Services Agreement in a Time and Materials not to exceed am... Page 814 of 1774 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

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

CITY CLERK
By: ___________________________
Sabdi Sanchez, MMC
Director of City Clerk Services
APPROVED AS TO FORM:

CITY ATTORNEY
By: ___________________________
Steven Graham Pacifico
City Attorney
CONSULTANT:

By:

Its: [Andrew Nickerson
HdL Companies, President
Attachments:

Exhibit A- Scope of Services
Exhibit B- Compensation

Professional Services Agreement in a Time and Materials not to exceed am... Page 815 of 1774 Attachments - Continued
Exhibit C- Insurance
Exhibit D- Conflict of Interest
Exhibit E- Levine Act

Professional Services Agreement in a Time and Materials not to exceed am... Page 816 of 1774 EXHIBIT “A”

SCOPE OF SERVICES

Professional Services Agreement in a Time and Materials not to exceed am... Page 817 of 1774

Professional Services Agreement in a Time and Materials not to exceed am... Page 818 of 1774 EXHIBIT “B”

COMPENSATION

Professional Services Agreement in a Time and Materials not to exceed am... Page 819 of 1774

Professional Services Agreement in a Time and Materials not to exceed am... Page 820 of 1774 EXHIBIT “C”
INSURANCE - ADDENDUM “1”
Without limiting Consultant’s indemnification of City, and prior to commencement of work and/or services under this Agreement, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. 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:

MINIMUM SCOPE OF INSURANCE. Consultant shall maintain the following types and 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.

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 City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers.

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

Professional Services Agreement in a Time and Materials not to exceed am... Page 821 of 1774 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.

Should Consultant obtain and maintain an excess liability policy, such policy shall be excess over commercial general liability, automobile liability and employer’s liability policies.

PROOF OF INSURANCE. Consultant shall provide certificates of insurance and required endorsements to Agency as evidence of the insurance coverage required herein.

Insurance certificates and endorsements must be approved by the Agency’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with Agency for the contract period and any additional length of time required thereafter. Agency reserves the right to require complete, certified copies of all required insurance policies, at any time.

DURATION OF COVERAGE. Consultant shall procure and maintain for the contract period, and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss which may arise from or in connection with the performance of the Work hereunder by Consultant, their agents, representatives, employees, or subconsultants.

PRIMARY/NONCONTRIBUTING. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by Agency 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 Agency before the Agency’s own insurance or self-insurance shall be called upon to protect it as a maned insured.

CITY’S RIGHT OF ENFORCEMENT. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced Agency has the right but not the duty to obtain the insurance It deems necessary, and any premium paid by Agency will be promptly reimbursed by Consultant or Agency will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, Agency may cancel this Agreement.

Professional Services Agreement in a Time and Materials not to exceed am... Page 822 of 1774 ACCEPTABLE INSURERS. All insurance policies shall be issued by an Insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the Agency’s Risk Manager.

WAIVER OF SUBROGATION. All Insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against Agency, 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 n right of recovery against Agency and shall require similar written express waivers and insurance clauses from each of its subconsultants.

ENFORCEMENT OF CONTRACT PROVISIONS (NON ESTOPPEL). Consultant acknowledges and agrees that any actual or alleged failure on the part of the Agency to inform Consultant of non-compliance with any requirement imposes no additional obligations on the Agency nor does it waive any rights hereunder.

REQUIREMENTS NOT LIMITING. Requirements of specific coverage features or limits obtained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance.

Specific reference to a given coverage feature Is for purposes of clarification only as it pertains to given issue and is not intended by any party or Insured lo be all Inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the Agency requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available Insurance proceeds in excess of the specified minimum limits of Insurance and coverage shall be available to the Agency.

NOTICE OF CANCELLATION. Consultant agrees to oblige its insurance agent or broker and insurers to provide the Agency with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the Consultant's insurers are unwilling to provide such notice, then Consultant shall have the responsibility of notifying the Agency immediately in the event of Consultant's failure to renew any of the required insurance coverages, or insurer's cancellation or non-renewal.

PROHIBITION OF UNDISCLOSED COVERAGE LIMITATIONS. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Agency and approved of in writing.

SEPARATION OF INSUREDS. A severability of interest provision must apply for all additional insureds ensuring that Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brough, except with respect to

Professional Services Agreement in a Time and Materials not to exceed am... Page 823 of 1774 the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

PASS THROUGH CLAUSE. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by Consultant (hereinafter collectively "Subcontractor'"), provide the same minimum insurance coverage and endorsements required of Consultant under this Agreement Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event Consultant's Subcontractor cannot comply with this requirement, which proof must be submitted to the Agency, Consultant may still be able to utilize the Subcontractor provided Consultant shall be required to ensure that its Subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Subcontractor's scope of work and services, with limits less than required of the Consultant, but in all other terms consistent with the Consultant's requirements under this Agreement. This provision does not relieve the Consultant of its contractual obligations under the Agreement and/or limit its liability lo the amount of insurance coverage provided by its Subcontractors. This provision is intended solely to provide Consultant with the ability to utilize a Subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the Consultant under this Agreement given the limited scope of work or services provided by the Subcontractors, and others engaged in the project and/or services, will be submitted to the Agency.

CITY’S RIGHT TO REVISE SPECIFICATIONS. The Agency reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the Agency and Consultant may renegotiate Consultant's compensation.

SELF-INSURED RETENTIONS. Any self-insured retentions must be declared to and approved by Agency. Agency reserves the right to require that self-insured retentions by eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter.

TIMELY NOTICE OF CLAIMS. Consultant shall give Agency prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

ADDITIONAL INSURANCE. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

Professional Services Agreement in a Time and Materials not to exceed am... Page 824 of 1774 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 City.
(A) OTHER REQUIREMENTS. Consultant shall deposit with City, at or before the effective date of this Agreement, certificates of insurance necessary to satisfy City that the insurance provisions of this contract have been complied with. The City Attorney may require that Consultant furnish City 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. City reserves the right to inspect complete, certified copies of all required insurance policies, at any time.

1. Upon request from the City, 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 City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City 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.

4. Coverage provided by Consultant shall be primary and any insurance or self- insurance procured or maintained by City 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 noncontributory basis for the benefit of City before the City’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 City, 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 City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

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6. General liability, automobile liability and umbrella/excess liability insurance policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies.

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CONFLICT OF INTEREST FORM

CONSULTANT FINANCIAL DISCLOSURES
Consultant will comply with all conflict of interest laws and regulations including, without limitations, City’s Conflict of Interest Code (on file in the City Clerk’s Office). It is incumbent upon the Consultant to notify the City of any staff changes relating to this Agreement. The City Manager has made the following determination and Consultant, by his/her signature, acknowledges said determination as set out in FPPC Regulation 18701(a) 02.

A. In accomplishing the scope of services of this Agreement, all officers, employees, and/or agents of Consultant will be performing a specialized function (subject to review and approval of the City Council), and therefore, is unlikely to have a conflict of interest arise. No disclosures are required of any officers, employees, and/or agents of Consultant. Consultants duties are as follows:
__________________________________________________________________ __________
________________________________ ____________________________ Brian Montgomery, City Manager
Consultant Signature and Title
B. In accomplishing the scope of services of this Agreement, Consultant will be performing a specialized service for the City, and there is substantial likelihood that the Consultant may make or participate in making, a governmental decision, which may have a foreseeable material effect on a financial interest. As a result, the Consultant shall be subject to the Disclosure Category “Consultant” of the City’s Conflict of Interest Code.
________________________________ ____________________________ Brian Montgomery, City Manager
Consultant Signature and Title
EXHIBIT “E”

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LEVINE ACT STATEMENT
California Government Code § 84308, commonly referred to as the “Levine Act,” precludes an officer of a local governmental agency from participating in the award of a contract if he or she receives any political contributions totaling more than $500 in the 12 months preceding the pendency of the contract award, and for three months following the final decision, from the person or company awarded the contract. This prohibition applies to contributions to the officer, or received by the officer on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee.

This statement must be provided for the company and for each consultant who will work with the City.

City of Indio Council Members as of the date of this document:

Glenn Miller
Elaine Holmes
Oscar Ortiz
Waymond Ferrmon
Ben Guitron IV

1. Have you or your company, or any agent on behalf of you or your company, made any political contributions of more than $500 to any City of Indio Council Member in the 12 months preceding the date of the issuance of this RFP?____ YES NO If so, that Council member is: ___________________

2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make any political
contributions of more than $500 to any City of Indio Council Member in the three months following the award of the
contract?____ YES NO
If so, that Council member is: ___________________
Answering yes to either of the two questions above does not preclude the City of Indio from awarding a contract to your firm. It may, however, preclude the identified Council Member from participating in the contract award process for this contract.

DATE (SIGNATURE OF CONSULTANT)
(NAME)
( NAME OF COMPANY)

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Cannabis Management Services
June 24, 2025

SUBMITTED BY
HdL Companies
120 S. State College Blvd., Ste 200
Brea, CA 92821
hdlcompanies.com

CONTACT
Matt Eaton
T: 714.879.5000
E: [email protected]

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TABLE OF CONTENTS
I. COVER LETTER ....................................................................................................................................... 2 II. PROPOSED SCOPE OF SERVICES ............................................................................................................ 3 III. COST ....................................................................................................................................................... 9 IV. OPTIONAL SERVICES ............................................................................................................................ 11 V. EXPERIENCE AND RESOURCES ............................................................................................................. 12 VI. REFERENCES ......................................................................................................................................... 17

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I. COVER LETTER
June 24, 2025
Jonathan Nicks
Assistant City Manager
City of Indio
100 Civic Center Mall
Indio, California 92201
Re: Proposal for Cannabis Management Services
Dear Mr. Nicks,
Thank you for the opportunity to submit this proposal for cannabis management services for the City of Indio. The enclosed scope of services provides a comprehensive program to assist the City with pre-license site visits, compliance inspections, revenue audits, review permit renewal applications, and additional hours of general subject matter expertise that may be used on an as-needed basis at the City’s request.

HdL is recognized as the industry leader in the development, implementation and enforcement of cannabis management programs for local governments in California. We have partnered with over 175 California cities and counties on cannabis-related programs, including ordinance development and review, community outreach and education, merit-based application and permitting processes, cost recovery studies, compliance inspections, revenue audits, fiscal analyses and law enforcement training.

Our cannabis team has unmatched expertise, with more than 80 years’ combined experience in the development, implementation and enforcement of cannabis regulatory and tax programs.

Our team members have conducted over 11,000 cannabis compliance inspections and audits in California, Colorado and Nevada, and have reviewed, scored and processed over 1,700 cannabis business applications in the last six years in California. HdL Companies works for the benefit of public agencies and has no private-sector clients in the cannabis industry.

We look forward to the opportunity to partner with the City of Indio in developing a strategy which meets your program needs. If you have any questions or require additional information, please feel free to contact me by email at [email protected] or Matt Eaton at [email protected] or by phone at 714.879.5000.

Sincerely,
Andy Nickerson
President, HdL Companies

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II. PROPOSED SCOPE OF SERVICES
The City of Indio has licensed five cannabis retailers, of which four are currently operating and one is still in the permitting process. The City is in need of a variety of cannabis management services to assist with getting these businesses open and to provide ongoing regulation and monitoring of those businesses that are already operating. The City is also contemplating changes to its regulatory program and ordinance to allow licensed retailers to conduct sales by delivery.

To assist with these needs, the City has requested that HdL provide this proposal with a scope of services that includes all of the following:
 Site plan reviews and pre-license site visits to ensure all proposed tenant improvements are compliant with state and local cannabis laws
 Regulatory compliance inspections to ensure all licensed cannabis businesses are complying with their regulatory obligations
 Annual revenue audits to ensure cannabis businesses are reporting and remitting the proper amount of revenue to the City
 Review and evaluate all applications for annual cannabis business permit renewals  40 hours of general subject matter expertise which may be used to review and revise the City’s cannabis ordinance or as otherwise requested by the City These services are all described in greater detail below.

Objective 1: Site Plan Evaluations
HdL shall review the premises diagram for each commercial cannabis business to assist the City’s approval of any building plans prior to initiating any tenant improvements. The review shall ensure that the proposed site improvements address all cannabis-related interior and exterior physical site security requirements including entrances and exits, product and customer flow, limited access areas, locks and alarm systems, surveillance camera locations, safes, signage, and other criteria.

HdL shall provide the City with a report identifying any deficiencies that need to be addressed and detailing any recommended changes to the site plan prior to beginning site improvements.

Objective 2: Pre-License Site Visits
HdL shall conduct a site visit of each cannabis business prior to issuance of a certificate of occupancy. Site visits shall complement the final building inspection by verifying all interior and exterior physical site security requirements have been addressed in accordance with the application and all State and local requirements as shown on the premises diagram. Site visits shall examine all entrances and exits, limited access areas, locks and alarm systems, access control procedures, surveillance camera locations, safes and cash management procedures, signage, operational protocols and administrative privileges associated with the license type(s) being sought, and other requirements as necessary. The HdL inspector may be accompanied

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on the site inspection by the City’s building inspector or representatives from the Police Department and Fire Department, if desired by the City.

The cost for this service includes a secondary review of the premises diagram noting any revisions pursuant to HdL’s recommendations, coordination and arrangements with the business and other agencies, site visit, post-inspection report, all travel costs and any follow up. This cost assumes 10-days advance notice for scheduling and travel arrangements. A shorter lead time may incur additional travel charges.

Objective 3: Annual Revenue Audits
HdL will conduct an annual revenue audit of each cannabis business to verify the accuracy of the revenue reported and remitted to the City during the review period and will recommend a tax adjustment should the audit reveal any variances in reported revenue. As part of the audit process, HdL will conduct a risk-based review of each business using our proprietary methodology, which was developed to specifically address the unique challenges associated with auditing the cannabis industry. Our methodology allows audit staff to cross-analyze multiple business records to identify reporting variances, discrepancies and outliers to produce the most accurate measure of gross receipts on behalf of the City.

To initiate the process, the City shall provide HdL with a list of all licensed cannabis businesses subject to audit. HdL shall work with the City to determine the appropriate review period for each business and to develop a schedule for conducting all audits. As the time for each audit approaches, HdL will prepare a notification letter informing the licensee of the impending audit and providing a list of all records and documentation the business is required to provide, including remote access to the business’s point-of-sale (POS) system where applicable. HdL recommends that the notification letter be sent by the City to communicate HdL’s authority to conduct the audit and to encourage cooperation by the business.

The full annual audit shall include:
 Review Point-of-Sale (POS) system structure
 Review inventory system (subject to METRC data)
 Analyze and compare POS data with other available data sources, including:
o City cannabis tax returns
o State tax returns
o Federal tax returns
o METRC sales and inventory data
o CDTFA data
o Bank statements
o Sales receipts
o Other financial documents as available
 Identify any variances or over/under reporting
 Calculate any taxes or fees due to the City
 Prepare and issue report
Where cannabis cultivation is taxed on a square-footage basis, the audit shall include one

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annual site inspection to verify compliance with maximum permitted canopy area. Square footage audits may also consider documented findings from inspections by the City, DCC or other agencies, where available.

A business that holds multiple state cannabis licenses shall be considered a single business for audit purposes, provided that all licenses are held and operated under the same name, ownership, location, and a single tax ID number. Any variation may indicate separate business entities requiring separate audits. Any such determination shall be made on a case-by-case basis in consultation with the City.

HdL will provide a draft audit report to the commercial cannabis business. The business will be given an appropriate opportunity to respond or appeal the report in accordance with the City ordinance. HdL will review any documentation provided by the business to dispute the findings and will adjust the tax/fee assessment as necessary prior to issuing the final report to the City.

The cost for this service assumes a standard 12-month review period. The cost for a longer term shall be increased per each additional 6-month period (2 fiscal quarters). Pricing available upon request. This cost also assumes reasonable cooperation from the licensee. Noncooperation by the licensee may result in additional charges at HdL’s hourly rate, or in termination of the audit and potential enforcement action by the City. Any such action or additional charges would be determined in consultation with the City.

The cost does not include assistance with administrative appeals or enforcement of audit findings, cannabis tax policy questions or guidance, or other services not directly associated with preparing the revenue audit report. Any costs associated with such additional services would be billed at HdL’s hourly rate.

Objective 4: Compliance Inspections
HdL will conduct one or more on-site compliance inspections annually, as requested by the City, for each permitted cannabis business to determine compliance with State and/or local laws. If HdL identifies any non-compliant activities, we will provide the City with a recommended appropriate action to address the deficiency and to ensure future compliance by the permittee.

The cost for these services includes all of the following:
 Notifying permittee of pending inspection
 On-site inspection to ensure that each business complies with all State and local laws and regulatory protocols for all of the following:
o Inventory management
o Cash handling procedures
o Access control
o Video surveillance
o Product safety
o Alarm system maintenance and safety
o Lock standards

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o Packaging and labeling
o Waste management
o Transportation documentation
o Surveillance equipment maintenance
o Occupational badges
o Business records
o Other items as necessary to ensure compliance with laws  Preparation of a draft report detailing the findings of the inspection and providing recommendations for improvement where needed. If the inspection identifies any violations of law or other non-compliance issues, then HdL will prepare a notice to comply as an included part of the report.
 All travel costs associated with the inspection, assuming a minimum of four inspections per day. If fewer than four inspections are requested, HdL will charge for travel based upon hourly rates, or a flat fee to be determined in consultation with City.  All phone, email and other communications involved in preparing for, scheduling and coordinating the inspections and providing the report.

Facilities greater than 30,000 square feet will be subject to an additional cost at HdL’s hourly rate to account for the additional time involved in conducting inspections, documenting issues of non-compliance and preparing reports. HdL will notify the City in advance if additional hourly charges are necessary to complete the inspection.

The cost for this service does not include any follow-up re-inspection or review of any documents provided to address or contest any findings of non-compliance, nor does it include any assistance with the appeal of any enforcement action by the City. Any costs associated with such additional services would be billed at HdL’s hourly rate.

Objective 5: Review Permit Renewal Applications
HdL shall review and evaluate all applications for annual cannabis business permit renewals.

The City shall notify HdL upon receipt of an application for a cannabis business permit renewal and shall forward all renewal application materials. HdL’s reviewers shall evaluate whether the application is complete and provides all necessary and requested information as required by the City. Reviews shall include narrative comments noting any deficiencies. If an application is deemed incomplete, the applicant shall be given an opportunity to submit supplemental information to address any deficiencies.

Each renewal application evaluation shall be completed within 60 days of the HdL receiving the application and all supporting documentation, assuming reasonable cooperation by the applicant.

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Objective 6: Technical Assistance and Subject Matter Expertise HdL will provide up to 80 hours of general consulting to be utilized on an as-needed basis at the City’s request. It is anticipated that these hours may be used to assist with review and revisions to the City’s ordinance to allow licensed cannabis retailers to conduct sales by delivery and for HdL to attend a meeting of the City Council to present and discuss the proposed changes. These hours may also be used for include technical assistance, subject matter expertise, education, monitoring of changes to State laws and regulations, participation in conference calls, responding to staff inquires via phone and email, reviewing staff reports to the City Council, assisting with responses to inquiries from the public, or other issues as mutually agreed to by the City and HdL.

Objective 7: Supplemental Cannabis Background Checks
HdL shall provide background checks of all owners, principals, managers and/or employees of cannabis businesses. Our background checks supplement the State-required Live Scan fingerprint check, which will only disclose Department of Justice (DOJ) records regarding arrests or convictions. California’s licensing agencies are only allowed to consider convictions for certain “red line” offenses such as serious or violent felonies, or certain felonies involving fraud, minors or drug trafficking, as automatic disqualifiers before granting or denying a license.

Our supplemental background checks expand upon the Live Scan information to identify other factors that local governments may wish to consider before granting discretionary business licenses or permits. These considerations may include other felony offenses, misdemeanor convictions, arrest records, civil judgements, restraining orders, the terrorist screening database, the national sex offender registry, delinquent child support payments, bankruptcies, employment and credit records, and more. Our search includes up to 5 variations on the subject’s name and will alert if additional aliases are found which might warrant further investigation.

Our comprehensive background process checks the subject’s name and social security number against over 200 million datasets nationwide, including all of the following:
 7 yr. unlimited county courts and criminal records search  Social Security, name and address comparison
 DMV search
 National Criminal Court report
 National Sex offender registry
 Federal criminal history
 State Department of Public Safety
 State Department of Corrections
 Terror watch list
 Bankruptcy, lien and judgments
 Delinquent child support payments

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 Employment credit report
o Financial summary
o Personal information comparison
o Address comparison
o Employment comparison
o Credit bureau report / credit history
o Public records search
Any felony convictions that would be automatic disqualifiers pursuant to B&P 26057(Violent and Serious Felony Convictions) must be confirmed through the Live Scan process. The degree to which other records may be used to inform the approval or renewal of a local business license or permit is subject to local ordinance requirements.

HdL offers separate rates for owners, principals or managers of cannabis businesses and for regular employees or line staff. We also offer a lower rate for annual renewals after the initial background check has been completed. Our rates include an HdL-designed employee identification badge with the city or county logo which meets all State regulatory requirements.

HdL provides an online portal for applicants to submit their application and authorization for background checks and all necessary documentation. Applicants provide their payment directly to HdL through the portal, so there is no cost to the City.

Background Checks Owner, principal
or manager
Employee or
line staff
Initial background check $300 $125
Annual renewal $125 $100
Reissue lost or stolen badge $15 $15
Renewals and background checks for employees include a lesser level of investigation.

Prices valid as of the date of this proposal and subject to change without notice.

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III. COST
This proposal does not include any additional services that are not specifically enumerated herein. The proposal assumes HdL will not be asked to review any supplemental information provided by applicants or businesses, and that HdL will not be a part of any enforcement action, appeal, arbitration, or civil litigation resulting from the findings of an inspection and/or audit. Any such additional reports, documentation or assistance that may be required would be in addition to the costs shown in the table below and shall be billed at HdL’s hourly rate.

This includes assistance with administrative hearings and/or civil litigation involving cannabis applicants or licensees.

Prices are valid for 90 days from the date of this proposal to allow time for consideration and negotiating a service agreement. Once under contract, prices shall be honored for the first full year of the agreement, with successive years subject to an annual increase based upon the Consumer Price Index for the Los Angeles-Long Beach-Anaheim region.

Scope of Service Objectives Estimated
Cost
Objective 1: Site Plan Evaluations $900
per business
Objective 2: Pre-License Site Visits $2,000
per business
Objective 3: Compliance Inspections
One or more inspections per year, as requested by the City $2,500
per inspection
Objective 4: Annual Revenue Audits
Assumes standard 12-month review period
$10,000
per audit
Objective 5: Review Permit Renewal Applications
Assumes 3 hours at $300/hr
$900
per application
Objective 6: Technical Assistance and Subject Matter Expertise Assumes up to 80 hours at $300/hr to be used as needed
$24,0001
Objective 7: Supplemental Background Checks
Cost paid directly by applicant to HdL
No charge to
City
Travel: As needed for site visits or in-person meetings Hourly Rate2 Plus Expenses

TOTAL NOT TO EXCEED TBD
1 Objective billed at hourly rate
2 Or at a flat rate to be determined in consultation with the City.

All City costs may be fully recoverable from applicants or permittees

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Conflicts of Interest and Non-Disclosure
HdL Companies works for the benefit of public agencies and has no private-sector clients in the cannabis industry. All cannabis business information will be kept confidential by HdL and will not be shared internally beyond those HdL employees who are required to have access for purposes of conducting the work contemplated herein, or for administrative purposes as necessary.

Services Billed at Hourly Rate
Service objectives shown as being billed at HdL’s hourly rate may be billed up to the maximum estimated hours. HdL will not exceed the maximum estimated hours without first notifying the City and receiving written approval in advance.

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IV. OPTIONAL SERVICES
Optional services are described here for information purposes, only. No additional services will be provided without the expressed mutual agreement of both parties.

Hourly Rates for HdL Staff
The prices in this proposal are calculated based on the hourly rates for HdL staff as shown in the chart below. Any additional services requested by the client that are not specifically described in this proposal would be billed at HdL’s standard hourly rate.

HdL Staff Person Title Hourly Rate
Standard Hourly Rate All Subject Matter Expertise $300
Matt Eaton Director of Cannabis Services $300
Mark Lovelace Senior Policy Advisor $300
Elizabeth Eumurian Audit Manager $300
Brad Schneider Compliance Manager $300
Valerie Carter Audit Supervisor $275
Tao Lu Senior Auditor $250
Kristi Lervold Compliance Administrator $235
Michelle Shaw Compliance Inspector $235
Teresa Schneider Compliance Inspector $235
Jennifer Erwin Auditor $235
Michael Cimino Auditor $235
Dante Chegini Audit Analyst $225
Andre Parran Audit Analyst $225
All rates current as of the date of this proposal

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V. EXPERIENCE AND RESOURCES
Company Profile
Founded in 1983, HdL is a consortium of three companies established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Our audit and consulting services include sales, use and transaction taxes, property taxes, transient occupancy taxes, and a Cannabis Management Program. The firm also provides a variety of enterprise software processing tools for business licensing, code enforcement, animal control, building permits and tracking/billing of false alarms.

HdL’s systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 600 agencies in six states. The firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California.

HdL’s key staff has extensive experience serving local government and many have previously held positions in city management, finance, planning, economic development or revenue collection. HdL is a Corporate Partner of the League of California Cities and California State Association of Counties and works extensively with the County Auditor’s Association of California, California Society of Municipal Finance Officers (CSMFO) and California Municipal Revenue and Tax Association (CMRTA) on anticipation and planning of programs to strengthen local government revenues.

This close understanding of local government needs coupled with extensive databases and advanced methodology provides for the most relevant, productive and responsive revenue recovery; forecasting; and economic services available.

Our team of professionals has over 80 years of direct experience establishing and implementing cannabis regulatory and taxation programs, including establishing land-use regulations, permit processes, staffing plans, and cost recovery fees; structuring cannabis business tax fees; regulatory compliance; financial audits; and law enforcement training. Our team has conducted over 11,000 cannabis compliance inspections and investigations in California, Colorado and Nevada.

Key Personnel
Matt Eaton; Director of Cannabis Services
Matt Eaton is the Director of Cannabis Services at HdL and plays a critical role in implementing the Cannabis Compliance Program for local agencies. Prior to joining the firm, he was a progressive law enforcement professional with 30 years’ experience conducting criminal/regulatory investigations, and corporate/individual background investigations.

While working as a Supervisory Investigator at the Colorado Department of Revenue in the Marijuana Enforcement Division (MED), Matt managed criminal investigators and civilian staff in the Denver Metro and Longmont field offices. During his six-year tenure at the MED, he conducted approximately 10,000 criminal investigations and compliance reviews,

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including regulatory and financial investigations. He is a subject matter expert on track and trace systems and understands the complexity of reviewing data to ensure businesses are in compliance with state and local regulations. Matt was responsible for planning, developing and implementing report and field inspection protocols for the agency. He also played an instrumental role in recommending changes to current regulations and identifying essential language for new legislation in Colorado. Matt is well known for his ability to maintain working relationships with cannabis industry leaders and external stakeholders in resolving issues.

Matt received his Bachelor of Science Degree from Biola University and maintained Police Officer Service Training (POST) certification for over 30 years in California and Colorado. He has also served as an adjunct instructor teaching law enforcement principle related to criminology, correctional processes, procedural law, interviews, interrogations and criminal evidence at AIMS Community College in Greeley, Colorado.

Mark Lovelace; Senior Policy Advisor
Mark Lovelace has 23 years of broad experience in public policy, community engagement and advocacy and is recognized as a leader in advancing the statewide discussion of medical and recreational cannabis as a legitimate policy issue in California. Mark served on the Humboldt County Board of Supervisors from 2009 through 2016 where he was instrumental in developing a comprehensive approach to regulating cannabis, including a voter-approved tax on commercial cultivation and an innovative track and trace pilot program. Mark established and co-chaired the Cannabis Working Group for the California State Association of Counties (CSAC) and helped draft CSAC’s cannabis legislative platform.

Mark has worked extensively with public agencies and statewide organizations on cannabis issues and has led numerous presentations, workshops and panel discussions. Prior to his time on the Board, he worked for many years as a respected advocate on land use, planning, development, resource management and environmental issues. Mark received his Bachelor of Science degree in Industrial Design from San Jose State University.

Elizabeth Eumurian; Audit Manager
Elizabeth Eumurian manages the HdL cannabis audit team. In her role she oversees the development and refining of HdL's proprietary audit methodology to better identify reporting variances, discrepancies and outliers, and to ensure audit accuracy and consistency. She also reviews audit reports, evaluates cannabis business financial information and assists with special projects. Before becoming manager, Elizabeth conducted cannabis audits for HdL.

Elizabeth previously worked as a senior auditor in the entertainment industry. In this role, she executed testing procedures for targeted audit programs, analyzed findings and prepared audit and compliance reports. She also has experience working for a large financial institution analyzing data for reporting anomalies and performing internal audits.

Elizabeth earned her Bachelor of Arts degree from California State University Fullerton and holds a certificate in CannaBusiness from Oaksterdam University.

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Brad Schneider; Compliance Manager
Brad Schneider manages HdL’s team of cannabis compliance inspectors to ensure that licensed cannabis businesses are operating within state law and complying with all of their obligations under the terms of their local permit. He oversees the team to ensure that all inspections are conducted on a timely schedule in coordination with the local jurisdiction and that all reports are clear and fully-documented.

Brad brings 30 years of experience in law enforcement where he worked as a police officer, training officer, detective, background investigator and Sergeant. Following his law enforcement career, he worked in business development where he managed contracts with state and local government agencies. Brad has broad experience in background investigations, regulatory compliance from both the public and private sector, ensuring alignment with industry regulations and standards and directing training, safety programs and operational procedures. Brad holds a Bachelor of Science degree in Business Management.

Valerie Carter; Audit Supervisor
Valerie Carter works as a supervisor for HdL’s Cannabis Management Team, supporting the audit manager and assisting in overseeing day to day work of audit staff. Valerie has over 5 years of public sector work experience focusing on public policy, auditing and revenue tax implementation. She was a Tax Auditor II for the City of Oakland’s Revenue Management Bureau and an Assistant Management Analyst for the City of Berkeley’s Transportation division. Valerie earned a Bachelor’s Degree in Business Administration from Cal Poly Pomona, with an emphasis on Finance, Real Estate, and Law.

Tao Lu; Senior Auditor
Tao Lu works as an Auditor for HdL’s Cannabis Management Team. Tao has two and a half years’ experience as an accountant with an emphasis in information technology and food manufacturing industries. He also has public audit work experience at RSM China. Tao was born and raised in China.

Tao earned a Bachelor’s Degree in Accounting and Finance from Syracuse University in New York before relocating to Southern California with his family.

Kristi Lervold; Compliance Administrator
Kristi is the Compliance Administrator for HdL’s cannabis team. In this role she conducts prelicense site visits, compliance inspections and background checks while also supporting the cannabis team members, coordinating internal processes, and assisting with client requests, contracts, billing reconciliation and invoicing. Kristi’s 18-year career includes ten years as the administrative assistant to HdL’s CFO, handling various operational responsibilities and supporting financial functions, as well as experience in the occupational health industry, facilitating services for federal, state, and local government clients. Kristi holds a Bachelor’s of Science degree in Business Management with a minor in Business Administration.

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Michelle Shaw; Compliance Inspector
Michelle conducts onsite inspections, examinations and other actions to monitor compliance with established standards for local licensed cannabis businesses. Prior to joining HdL, she was a Compliance Specialist Officer at a large, multinational bank where she managed, validated and oversaw the effectiveness and accuracy of numerous compliance issues within the consumer retail space. Throughout her eight years of experience at the bank, she performed assessments of affiliate businesses to determine compliance/non-compliance of their processes and procedures pursuant to bank standards and state regulations.

A graduate of Cypress College, Michelle holds a Foundations of Banking Risk certificate from the Global Association of Risk Professionals and a paralegal certificate from the Southern California College of Business and Law.

Teresa Schneider; Compliance Inspector
Teresa Schneider served for 28 years with the Montclair Police Department, including 16 years in the Background Investigations Unit. In this capacity, Teresa was responsible for conducting background investigations of all City business license applicants, as well as all sworn and non-sworn positions within the police and fire departments and of civilians requesting access to police department records.

Theresa previously served 4 years in the U.S. Army’s nursing program at Fort Campbell, Kentucky. During this time she attended college at the University of Kentucky and Austin Peay State University. After receiving an Honorable Discharge in 1990, Teresa was hired by the Montclair Police Department. During her 28-year career, she worked numerous assignments, including patrol, K9, detective bureau, court liaison, volunteer coordinator, and red-light automated enforcement. Teresa received many awards throughout her career, including Officer of the Year.

Jennifer Erwin; Auditor
Jennifer Erwin is an Auditor for HdL’s Cannabis Management Team. Jennifer conducts revenue audits of licensed cannabis businesses to ensure they are reporting and remitting the proper amount of cannabis tax revenue to their host jurisdiction. Jennifer previously served as Finance Director for the City of Perris, California and as Assistant Controller for the Morongo Band of Mission Indians. Jennifer brings extensive experience with complex financial analyses, fee studies, cost accounting procedures and collections.

Jennifer is a Certified Public Accountant (CPA #108992) and received her Bachelor of Science degree in Business Administration from the University of Phoenix.

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Michael Cimino; Auditor
Michael Cimino is an Audit Analyst for HdL’s Cannabis Management Team. Michael conducts revenue audits of licensed cannabis businesses to ensure they are reporting and remitting the proper amount of cannabis taxes to their host jurisdiction.

Michael previously worked as an information technology manager at an international manufacturing company where he performed internal security audits and risk analyses and implemented policies to ensure compliance with ISO standards. He also assisted with integration of ERP/CRM software across multiple departments and locations. Michael holds an Associate of Arts degree from Fullerton College.

Dante Chegini; Audit Analyst
Dante Chegini conducts revenue audits as a member of HdL’s Cannabis Management Team to ensure that licensed cannabis businesses are reporting and remitting the proper amount of cannabis taxes to their host jurisdiction. Dante previously worked as a financial analyst at a public finance investment banking firm in Los Angeles, where he was lead analyst on over 30 deals with a total value exceeding $1 billion. Dante brings experience with organizing and analyzing large volumes of financial data to determine accurate revenues and debts.

Dante received a Bachelor of Science degree in Business Administration from the University of Southern California, Marshall School of Business in May of 2022 with a focus on financial and managerial accounting and business finance.

Andre Parran; Audit Analyst
Andre Parran conducts revenue audits as a member of HdL’s Cannabis Management Team to ensure that licensed cannabis businesses are reporting and remitting the proper amount of cannabis taxes to their host jurisdiction. Andre previously worked as a claim adjuster/analyst, reviewing worker’s compensation claims for the Office of Risk Management in Washington, DC. He also brings experience as a data analyst for a technology company, where he executed regular audits to ensure database accuracy and conducted analysis of inventory and financial data to enhance business efficiency and operations.

Andre holds a Bachelor of Arts degree in Economics from the University of Maryland, Baltimore County, as well as a post baccalaureate Associate of Applied Science in Aviation Technology.

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VI. REFERENCES
City of Modesto
Steve Mitchell
Acting Planning Manager
Phone: 209.577.5287
Email: [email protected]
City of Chico
Hope Ithurburn, MMC
Management Analyst
Phone: 530.896.7209
Email: [email protected]
City of Davis
Elena Adair
Finance Director/Treasurer Finance Department
Phone: 530.757.5651
Email: [email protected]
City of Turlock
Isaac Moreno
Finance Director, Finance Division
Phone: 209.668.6071
Email: [email protected]
City of Atwater
Delilah Youmara
Finance Director
Phone: 209.357.6347
Email: [email protected]

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City Council
July 16, 2025

STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Brian Halvorson, Dir. Of Community Development Subject: Professional Services Agreement not to exceed $50,000 with RKA Consulting Group for as-needed Building and Safety Services RECOMMENDATION:

Staff recommends that the City Council approve a one-year term (July 1, 2025, to June 30, 2026) for a Professional Services Agreement not to exceed the amount of $50,000 with RKA Consulting Group for the provision of as-needed building and safety services, with any substantive changes (if any) to be negotiated and approved by the City Manager
SUMMARY:

RKA Consulting Group has been assisting the City under a separate agreement approved by the City Manager and within his signing authority to assist the City with comprehensive Building and Safety consulting services on an as-needed basis. RKA supports the City across various functions, including plan check services, inspection services, and office services. The authorization of this Professional Services Agreement will allow the City to continue to utilize the professional expertise and experience of the RKA Consulting Group to conduct thorough plan check services for a variety of project types through the current fiscal while allowing time for the issuance of a formal request for proposal (RFP) for these services.

BACKGROUND INFORMATION:

The RKA Consulting Group provides qualified plans examiners to review building plan submittals for local and state code compliance. The examiners participate in the City review process and utilize all normal methodologies and procedures that are required by the City. All examiners are fully experienced and qualified to perform these reviews to the satisfaction of the City.

The following outlines the specific Building and Safety services that the RKA Consulting Group will provide the City to ensure comprehensive support while addressing all aspects of building administration, inspections, permit operations, plan checks, and emergency response.

Building Plan Checks
 Perform plan checks by certified plans examiners and registered engineers  Deliver plans via courier service to the City
 Utilize cross-trained staff to serve as field inspectors as needed  Ensure efficient, timely, and compliant plan approval processes AGENDA ITEM #10.24
Professional Services Agreement not to exceed $50,000 with RKA Consultin... Page 847 of 1774  Review plans for compliance with California Building Code, Plumbing Code, Electric Code, Mechanical Code, State Building Codes, Title 24, and local amendments  Assist with engineering grading plan checks if requested Certified Access Specialist (CASP) Services
 Conduct accessibility inspections and plan reviews to ensure compliance with ADA and California Building Code accessibility requirements
 Provide detailed reports and recommendations for necessary modifications to achieve compliance
 Assist with the resolution of accessibility complaints and issues Structural Reviews
 Conduct structural plan reviews to ensure compliance with applicable structural codes and standards
 Evaluate structural integrity of new construction, remodels, and additions  Provide detailed feedback and recommendations to address any structural concerns In addition, RKA will provide quality control and assurance measuresto ensure the highest standard of service to implement a rigorous quality control and assurance measures. These measures are designed to monitor performance, enhance communication, maintain a skilled workforce, and ensure continuous improvement in all aspects of the Building and Safety services that will be provided to the City. Staff is confident that the RKA Consulting Group will continue to deliver exceptional Building and Safety services to the City by ensuring compliance, efficiency, and highquality customer service. The proposed agreement will allow for these services to continue and provide staff the necessary time to issue a formal request for proposals (RFP) for plan review services. The RFP is anticipated to be completed prior the contract expiration date of June 30, 2026.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$50,000 In current year budget: Yes
Current FY General
Fund Impact:
$50,000 Budget adjustment: No
Next FY Financial
Impact:

Strategic Objective: Public Safety
Source of funds: General Fund Fund-Org-Object
Reference:
1012130 521076
ATTACHMENTS:

Att 1 PSA RKA Consulting Group
Att 2 Scope of Services RKA Consulting Group
APPROVAL(S):

Jennifer A. Mizrahi, Assistant City Attorney Approved - 08 Jul 2025 Ruby D. Walla, Director of Finance Approved - 10 Jul 2025

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

THE CITY OF INDIO,

A CALIFORNIA MUNICIPAL CORPORATION
AND

RKA CONSULTING GROUP

A CALIFORNIA CORPORATION
Form Approved 09/01/2022

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PROFESSIONAL SERVICES AGREEMENT

FOR AS-NEEDED BUILDING AND SAFETY SERVICES

BETWEEN THE CITY OF INDIO AND RKA CONSULTING GROUP
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this ___ day of July, 2025 (“Effective Date”), by and between the CITY OF INDIO (“City”), a California municipal corporation and RKA CONSULTING GROUP a California corporation (“Consultant”). For the purposes of this Agreement City and Consultant are sometimes hereinafter referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS

1. City has sought by direct contract the performance of As-Needed Building and Safety Services defined and described particularly in Section 2, “Scope of Services and Schedule of Performance” of this Agreement.

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

3. Consultant was selected by City 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, City has authority to enter into this Agreement and the City Manager 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 shall commence on July 1, 2025 and shall terminate on June 30, 2026, unless otherwise extended by written agreement of the Parties. (b) The City Manager 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 and conditions, including compensation as set forth in Section 4 “Compensation and Method of Payment.”

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

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 City 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 City, 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 deemed to be part of the Services.

SECTION 4. COMPENSATION AND METHOD OF PAYMENT.
(a) Subject to any limitations set forth in this Agreement, City 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 $50,000 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 City’s usual accounting procedures upon receipt and approval of an itemized invoice setting forth the services performed. The invoices shall be delivered to City 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 City Manager’s authority under Indio Municipal Code Section 33.116 (C)(2) without approval by the City Council. (b) Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by

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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 “B” 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. City shall independently review each invoice submitted by the Consultant 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 City, the original invoice shall be returned by City to Consultant for correction and resubmission.
(c) Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, City 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 City shall pay the same rates specified in Exhibit “B” “Compensation.” SECTION 5. INSPECTION AND FINAL ACCEPTANCE.

City may inspect and accept or reject any of Consultant’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Consultant’s work within sixty (60) days after submitted to City. City shall reject work by a timely written explanation, otherwise Consultant’s work shall be deemed to have been accepted. City’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 City shall not constitute a waiver of any of the provisions of this Agreement 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 City and may be used, reused or otherwise disposed of by City without the permission of the Consultant. Upon completion, expiration or termination of this Agreement, Consultant shall turn over to City all such original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents.

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If and to the extent that City 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 warranties 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 City 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 City or any of 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 City, 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 City pursuant to this Agreement. Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and shall 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. (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

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hours, upon request by City or its designated representative. Copies of such documents or records shall be provided directly to the City for inspection, audit and copying when it is practical to do so; otherwise, 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 City 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, City may, by written request, require that custody of such documents or records be given to the City. Access to such documents and records shall be granted to City, 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 contractor and not an officer, employee or agent of City. Consultant shall have no authority to bind City in any manner, nor to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. (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 City, nor any elected or appointed boards, officers, officials, employees or agents of City, 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 City. (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 City’s employees. Consultant expressly waives any claim Contractor may have 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 accepted standards and practices utilized by persons engaged in providing services similar to the Services required of 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

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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 observe 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 practices of the City.

Neither City, nor any elected or appointed boards, officers, officials, employees or agents of City, shall be liable, at law or in equity, as a result of any failure of Consultant 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 City, 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 City 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, installation, 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.

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.

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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, and should the any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.

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 City 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 City Manager. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. (b) City 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 City relative to such projects. Any future position of City on such projects shall not be considered a conflict of interest for purposes of this section. (c) City understands and acknowledges that Consultant will, perform non-related services for other governmental agencies and private parties following 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 product 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 City without prior written authorization from the City Manager, except as may be required by law. (b) Consultant, its officers, employees, agents or subconsultants, shall not, without prior written authorization from the City Manager or unless requested by the City Attorney of City, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under

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this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City 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 City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. (d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. City 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 City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City 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 City) and hold harmless City 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 Indemnified Parties as additional indemnitees. In the event Consultant fails to obtain

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such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City 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 City as to form and content.

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

SECTION 18. ASSIGNMENT.

The expertise and experience of Consultant are material considerations for this Agreement. City 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 City, which may be given in the sole and absolute discretion of the City Manager. Any attempted assignment shall be ineffective, null and void, and shall constitute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including termination of this Agreement pursuant to Section 20 “Termination of Agreement.” City 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 City 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 City.

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 City 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) City 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 City.
(c) If either Consultant or City fail to perform any material obligation under this Agreement, then, in addition to any other remedies, either Consultant, or City may terminate this Agreement immediately upon written notice.
(d) Upon termination of this Agreement by either Consultant or City, all property belonging exclusively to City which is in Consultant’s possession shall be returned to City.

Consultant shall furnish to City 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, City 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. City will pay to Consultant a sum equivalent to the reasonable value of the services satisfactorily provided up to the date of suspension. City 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 provisions of this Agreement. Consultant will be entitled to an extension of time to complete performance under this 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 City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City 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 City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City 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 City may take necessary steps to terminate this Agreement under Section 20 “Termination of Agreement.” Any failure on the part of the City to give notice of the Consultant’s default shall not be deemed to result in a waiver of the City’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 City, 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 CITY.

All public information, data, reports, records, and maps as are existing and available to City 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 City: City of Indio
Attn: City Manager
100 Civic Center Mall
Indio, CA 92201
To Consultant: RKA Consulting Group
Attn: Raymond Tao, P.E., Director of Building &
Safety
398 Lemon Creek Drive, Suite E
Walnut, CA 91789
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 Consultant 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 City Manager or his or her designated representative. The City Manager 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 City Manager’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 City. The City Manager shall have the authority to approve any amendment to this Agreement if the total compensation under this Agreement, as amended, would not exceed the City Manager’s contracting authority under the Indio Municipal Code. All other amendments shall be approved by the City Council. The Parties agree that the requirement for written modifications cannot be waived 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 City 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 exclusive 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 City prior to the execution of this Agreement. No statements, 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 City 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 “Agreement 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 SERVICES AGREEMENT

FOR AS-NEEDED BUILDING AND SAFETY SERVICES

BETWEEN THE CITY OF INDIO AND RKA CONSULTING GROUP
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

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

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

CITY ATTORNEY
By: ____________________________
Steven Graham Pacifico

RKA CONSULTING GROUP
By:

Raymond Tao, P.E.

Its: Director of Building & Safety

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Exhibit A – Scope of Services
Page | 1
EXHIBIT “A”

SCOPE OF SERVICES
Refer to Attached

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Exhibit B – Compensation
Page | 1
EXHIBIT “B”

COMPENSATION
Refer to Attached

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Addendum 1 - Insurance
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ADDENDUM “1”

INSURANCE
(A)INSURANCE REQUIREMENTS. Consultant shall provide and maintain insurance, acceptable to the City, 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.

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 City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers.

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Addendum 1 - Insurance
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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 City. (C) OTHER REQUIREMENTS. Consultant agrees to deposit with City, at or before the effective date of this Agreement, certificates of insurance necessary to satisfy City that the insurance provisions of this contract have been complied with. The City Attorney may require that Consultant furnish City 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. City reserves the right to inspect complete, certified copies of all required insurance policies, at any time.

1. Upon request from the City, 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 City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City 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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Addendum 1 - Insurance
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4. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City 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 City before the City’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 City, 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 City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

6. General liability policies shall provide or be endorsed to provide that City 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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Addendum 2 – Federal Funds
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ADDENDUM “2"

FEDERAL FUNDS

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PROPOSAL PREPARED BY

FOR THE CITY OF INDIO

AS-NEEDED BUILDING AND SAFETY SERVICES
JULY 2, 2025

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RKA CONSULTING GROUP
398 LEMON CREEK DRIVE, SUITE E, WALNUT CALIFORNIA 91789-2649 | (909) 594-9702 | WWW.RKAGROUP.COM

TABLE OF CONTENTS
STATEMENT OF UNDERSTANDING............................................................................................................... 4 PLAN CHECK SERVICES .............................................................................................................................. 4 OFFICE SERVICES......................................................................................................................................... 4 ORIENTATION AND ON-CALL SERVICES................................................................................................ 4 SCOPE OF WORK............................................................................................................................................ 4 BUILDING PLAN CHECK.............................................................................................................................. 4 CERTIFIED ACCESS SPECIALIST (CASP) SERVICES ................................................................................. 5 STRUCTURAL REVIEWS............................................................................................................................... 5 QUALITY CONTROL AND ASSURANCE MEASURES ............................................................................. 5 FEE SCHEDULE AND RATE SHEET................................................................................................................... 6 STATEMENT OF QUALIFICATIONS................................................................................................................ 7 KEY PERSONNEL............................................................................................................................................... 8 KEY PERSONNEL ORGANIZATION CHART............................................................................................. 9 LICENSES AND CERTIFICATIONS ............................................................................................................10 EXTENSIVE EXPERIENCE ............................................................................................................................11 OUR COMMITMENT.......................................................................................................................................11

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RKA CONSULTING GROUP
398 LEMON CREEK DRIVE, SUITE E, WALNUT CALIFORNIA 91789-2649 | (909) 594-9702 | WWW.RKAGROUP.COM July 2, 2025
Mr. Brian Halverson, AICP, Community Development Director City of Indio
100 Civic Center Mall
Indio, California 92201
SUBJECT: AS-NEEDED BUILDING AND SAFETY SERVICES
Dear Mr. Halverson,
RKA Consulting Group (RKA) is pleased to submit our proposal for providing as-needed building and safety services for the City of Indio. Enclosed, you will find our detailed scope of work, qualifications, schedule, and fee estimate tailored to meet the City's requirements.

ABOUT RKA: RKA has been a leading provider of municipal civil engineering consulting services for over 44 years. Our comprehensive services include civil engineering, project management, inspection services, and more. Our certified professionals, including registered engineers and ICC, CASp, and LEED experts, deliver proactive and effective responses. We specialize in electrical, plumbing, mechanical, structural, fire and safety, grading and drainage, and accessibility services for various project types.

PROVEN TRACK RECORD: RKA has consistently delivered high-quality municipal engineering and building and safety services. We understand the distinct challenges faced by municipalities and are committed to delivering solutions that exceed expectations. Our proven track record and deep understanding of local conditions positions us as a reliable partner for the City of Indio. RKA has been working with Indio since 2003 in various capacities from interim Building Official to inspection and plan check review.

EXPERIENCED TEAM: Our licensed engineers, certified plans examiners, and building inspectors bring extensive experience and professionalism to every project. Our team ensures compliance with local and State building rules, fostering strong relationships with the City and greater community.

COLLABORATIVE APPROACH: We emphasize collaboration with our municipal clients, exemplified by proactive communication, rigorous quality control, and a commitment to meeting project milestones effectively and efficiently. Our cross-trained Building & Safety, Certified Plan Review and Inspection staff enhance operational efficiency and reduce costs. We are eager to continue our successful partnership with the City of Indio, leveraging our expertise and dedication to support your ongoing and future engineering initiatives.

Thank you for considering RKA Consulting Group for your building and safety service needs. Should you require any additional information or wish to discuss our proposal further, please contact me at (909) 594-9702 or via email at [email protected].

Sincerely,
Raymond Tao, P.E., Director of Building & Safety

RKA CONSULTING GROUP

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CITY OF INDIO

AS-NEEDED BUILDING & SAFETY SERVICES

RKA CONSULTING GROUP
Page | 4

STATEMENT OF UNDERSTANDING
RKA Consulting Group understands that the City of Indio requires comprehensive Building and Safety consulting services on an as-needed basis. Our role will be to support the City across various functions, including plan check services, inspection services, and office services. These services will be tailored to meet the specific needs and requests of the City, ensuring compliance with local, state, and federal regulations. We recognize the importance of providing expedient, reliable, and professional services to maintain the high standards expected by the City of Indio.

To effectively serve the City of Indio, RKA Consulting Group has identified the following key elements essential for the successful delivery of Building and Safety services:

PLAN CHECK SERVICES
We will conduct thorough plan check services for a variety of project types, including residential, commercial, and industrial projects. Our goal is to ensure compliance with the latest California Codes, City Ordinances, Conditions of Approval, and City Standards. This includes reviewing plans for sound engineering practices, mathematical accuracy, and design criteria.

OFFICE SERVICES
We will manage the intake, routing, and tracking of plans, issuance of permits, and filing of documents. Our team will perform all duties related to the Building Permit Technician position, ensuring seamless operations and exceptional customer service.

ORIENTATION AND ON-CALL SERVICES
We will orient ourselves with City Staff to understand the City's processes, acquire necessary documents, and establish ongoing operating procedures. Our on-call services will involve reporting to City Hall for project briefings, conducting field reviews, and attending construction and planning meetings as needed.

SCOPE OF WORK
Our philosophy focuses on delivering Building and Safety services that are expedient, controlled, responsive, and professional. We prioritize personalized service, quality control, and effective communication to meet the City's expectations and maintain high standards.

The following outlines the specific Building and Safety services RKA Consulting Group will provide to ensure comprehensive support for the City of Indio, addressing all aspects of building administration, inspections, permit operations, plan checks, and emergency response.

BUILDING PLAN CHECK
▪ Perform plan checks by certified plans examiners and registered engineers ▪ Deliver plans via courier service to the City
▪ Utilize cross-trained staff to serve as field inspectors as needed ▪ Ensure efficient, timely, and compliant plan approval processes ▪ Review plans for compliance with California Building Code, Plumbing Code, Electric Code, Mechanical Code, State Building Codes, Title 24, and local amendments

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CITY OF INDIO

AS-NEEDED BUILDING & SAFETY SERVICES

RKA CONSULTING GROUP
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▪ Assist with engineering grading plan checks if requested

CERTIFIED ACCESS SPECIALIST (CASP) SERVICES
▪ Conduct accessibility inspections and plan reviews to ensure compliance with ADA and California Building Code accessibility requirements
▪ Provide detailed reports and recommendations for necessary modifications to achieve compliance
▪ Assist with the resolution of accessibility complaints and issues

STRUCTURAL REVIEWS
▪ Conduct structural plan reviews to ensure compliance with applicable structural codes and standards
▪ Evaluate structural integrity of new construction, remodels, and additions ▪ Provide detailed feedback and recommendations to address any structural concerns

QUALITY CONTROL AND ASSURANCE MEASURES
To ensure the highest standard of service, RKA Consulting Group implements rigorous quality control and assurance measures. These measures are designed to monitor performance, enhance communication, maintain a skilled workforce, and ensure continuous improvement in all aspects of our Building and Safety services.
▪ Monitoring
▫ Log and monitor all building plan check activities, including turnaround times and status ▫ Provide proactive communication and continuous activity monitoring to reduce costs and increase productivity
▫ Review progress with the City to implement procedural improvements ▪ Communication
▫ Ensure proactive and precise communication with plan check applicants and residents ▫ Act as a seamless extension of City staff, prioritizing timely responses to inquiries ▫ Maintain clear communication lines to support efficient workflow and superior service ▪ Quality Employees
▫ Conduct comprehensive pre-employment screenings and evaluations ▫ Retain employees who are honest, technically competent, and capable in their respective areas
▫ Ensure ongoing training and certification for all staff ▪ Training and Qualifications
▫ Complete plan checks by certified plans examiners under the direction of a licensed civil engineer
▫ Regularly update training to stay current with code requirements ▫ Coordinate with other departments to maintain a cohesive team environment By addressing these key areas, RKA Consulting Group aims to deliver exceptional Building and Safety services to the City of Indio, ensuring compliance, efficiency, and high-quality customer service.

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CITY OF INDIO

AS-NEEDED BUILDING & SAFETY SERVICES

RKA CONSULTING GROUP
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FEE SCHEDULE AND RATE SHEET
RKA Consulting Group proposes the following compensation schedule to provide Building and Safety services as outlined in this proposal.

FEE SCHEDULE FEE
EFFECTIVE 7/1/2025
2025 Hourly Rate Schedule
Building & Safety
Director of Building/Building Official $160.00
Senior Plan Check Engineer (Registered) $150.00
Plan Check Engineer (Registered) $140.00
Senior Plans Examiner $110.00
Plans Examiner $100.00
Senior Building Inspector $110.00
Building Inspector $100.00
Clerk/Administration $70.00
Invoices will be submitted and are due and payable upon receipt.

All charges for sub-contracted services, outside our scope, will be in the same amounts as actually invoiced and paid by RKA, plus a 15% markup.

All costs of reproductive services, equipment purchase, and other expenses incidental to the performance of this proposal are to be billed at a rate of 15% markup.

RKA recalibrates its billing rates for professional time each calendar year and reserves the right to raise the billing rate for one or more professional categories by no more than 3% once in twelve calendar months.

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CITY OF INDIO

AS-NEEDED BUILDING & SAFETY SERVICES

RKA CONSULTING GROUP
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STATEMENT OF QUALIFICATIONS
RKA Consulting Group is a seasoned California corporation (CBL#C1155995) providing comprehensive municipal consulting services for over 44 years. Established in 1981, RKA operates from its single location in Walnut, California, and employs a dedicated team of almost 40 professionals, including engineers, technicians, and administrative staff.

Owned and operated by David Gilbertson, Cody Howing, and Raymond Tao, RKA remains a privately-held and financially robust company, generating annual revenues exceeding $5.5 million without bankruptcy, pending litigation, or outstanding claims. The firm ensures stability and continuity, with no planned office closures or mergers.

RKA's extensive service offerings cater to both public and private sectors, including:

Building and Safety
Building Official, Building Inspection, Plan Check, Permit Technician, Technical Assistance
Construction Administration
Constructability Review, Construction Inspection, Construction Management, Contract Program Management, Funding Source Management
NPDES Compliance
Program Management, Stormwater Pollution Prevention
Plan Checking
Building & Safety Plan Check, Engineering Plan Check, Survey/Map Plan Check
Municipal Engineering
Capital Improvement Planning, Contract City Engineering Services, Development Review, Grant Administration, Public Works Administration Engineering Design
Hydrology & Hydraulic Design, Pavement Rehabilitation, Pipeline Design, Sewer Design, Site Grading Design
Traffic Engineering
Municipal Traffic Safety Support, Signing/Striping Design, Traffic Analysis, Traffic Control Plans, Traffic Signal Design
RKA Consulting Group is committed to delivering superior engineering services, backed by the necessary resources, staffing, and unwavering financial stability, to meet the needs of clients like the City of Indio.

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CITY OF INDIO

AS-NEEDED BUILDING & SAFETY SERVICES

RKA CONSULTING GROUP
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KEY PERSONNEL
RKA’s team of highly qualified professionals provides exceptional Building and Safety services. This proposal outlines our key plan check personnel. In addition, our team includes qualified building inspectors who are ready to provide services with credentials available upon the City’s request.

Team Structure: Our team structure is designed to ensure efficient management, thorough inspection, and meticulous review for a wide range of projects. We provide practical, proven, and cost-effective solutions tailored to the City’s Building and Safety needs.

Comprehensive Support: The RKA team is comprised of a highly skilled support staff of certified plans examiners, building inspectors, permit technicians, and administrative professionals to ensure the successful and timely completion of projects. Key team members are specifically identified and designated to undertake the requested services, providing the highest level of quality and expertise necessary.

Specialized Experience: Our personnel possess comprehensive experience in delivering Building and Safety services for local public agencies, including plan reviews, inspections, permit processing, code compliance, and customer service. Our inspectors and plans examiners are certified by the International Code Council (ICC) and other relevant bodies, ensuring adherence to all regulatory standards.

Robust Team: With a robust team of almost 40 employees, we are well-equipped to support your projects effectively. Our team has extensive experience in managing large-scale projects, ensuring thorough and precise planning, inspection, and execution.

Regulatory Knowledge: With over 40 years of experience, our team is well-versed in the intricate regulatory and environmental stipulations that govern municipal Building and Safety projects. This ensures thorough and precise adherence to all relevant codes and standards.

Leadership and Innovation: Our experienced leadership and skilled staff ensure that we can deliver superior Building and Safety services tailored to meet the specific needs of our clients. We leverage continuous learning, up-to-date knowledge, and cutting-edge technology to provide innovative and cost-effective solutions.

By choosing RKA, you are partnered with a team dedicated to excellence in Building and Safety services, ready to support your needs with expert knowledge and comprehensive services.

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CITY OF INDIO

AS-NEEDED BUILDING & SAFETY SERVICES

RKA CONSULTING GROUP
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KEY PERSONNEL ORGANIZATION CHART
Our Building and Safety team brings specialized, in-depth knowledge of municipal codes, regulatory compliance, and safety standards.

Name & Title Years of
Experience
Expertise
Raymond Tao, P.E.

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30+ Years ▪ Building official
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Fawwaz Ghabra, P.E.

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35+ Years ▪Building and safety code
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Arath Lara, P.E.

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Tim Tran, C.B.P.E.

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Don Murray
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35 Years ▪ Building official
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Greg Ayala
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Plans Examiner/Inspector
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CITY OF INDIO

AS-NEEDED BUILDING & SAFETY SERVICES

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LICENSES AND CERTIFICATIONS

NAME & ROLE LICENSE / CERTIFICATION
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Building & Safety Director
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Certified Building Official
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Fawwaz Ghabra, P.E.

Plan Check Engineer Supervisor
California Registered Professional Civil Engineer (P.E.) Building Plans Examiner
Project Management Professional (P.M.P.)
Arath Lara, P.E.

Senior Plan Check Engineer
California Registered Professional Civil Engineer (P.E.) California Building Plans Examiner
Tim Tran, C.B.P.E.

Plan Check Engineer
California Building Plans Examiner (C.B.P.E.)
Master Code Professional
California Commercial Electrical Inspector
California Commercial Plumbing Inspector
California Commercial Mechanical Inspector
California Commercial Combination Inspector
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California Residential Plumbing Inspector
California Residential Mechanical Inspector
California Combination Inspector
California Residential Combination Inspector
Don Murray
Senior Plans Examiner
Senior Building Inspector
California Building Plans Examiner
ICC Building Inspector
Greg Ayala
Senior Plans Examiner
California Building Plans Examiner
Victor Olivares
Building & Safety Coordinator,
Plans Examiner
ICC Residential Building Inspector
ICC Residential Plumbing Inspector

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CITY OF INDIO

AS-NEEDED BUILDING & SAFETY SERVICES

RKA CONSULTING GROUP
Page | 11

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Professional Services Agreement not to exceed $50,000 with RKA Consultin... Page 882 of 1774

RKA CONSULTING GROUP

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Professional Services Agreement not to exceed $50,000 with RKA Consultin... Page 883 of 1774 City of Indio
City Council
July 16, 2025

STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Reymundo Trejo, P.E., IWA General Manager
Subject: Adopt Resolution No. 10511 Finding that the Proposed Fiscal Year 2025-26 Capital Improvement Program of the Indio Water Authority is Consistent with the City of Indio General Plan 2040.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 10511 (Attachment 1) finding that the Capital Improvement Program of the Indio Water Authority for Fiscal Year 2025-2026 and each of the Public Works Projects incorporated therein are consistent with the City of Indio General Plan 2040.

SUMMARY:

As part of IWA’s annual budget process, the City Council is required to determine that the proposed fiscal budget year Capital Improvement Program (“CIP”) is consistent with the currently adopted City of Indio General Plan 2040 (“General Plan”). At the May 7, 2025, budget study session, staff presented the Indio Water Authority's recommended budget for Fiscal Year 2025-2026. The City Council/lWA Board did not request any changes to the recommendation as presented. The presentation included the Fiscal Year 2025-2026 Capital Improvement Program project list to be funded by the Supplemental Water Supply Fund and Water Development Impact Fees. On May 28, 2025, the Planning Commission approved Resolution No. 2109 (Attachment 2) recommending that that City Council make a determination that the proposed CIP of the IWA for FY 2025-2026 and each of the projects incorporated therein were consistent with the City of Indio General Plan 2040.

BACKGROUND INFORMATION:

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

IWA’s CIP budget is comprised of 17 projects, totaling $14,000,000 in FY 2025-26. Fifteen projects are funded with operating revenue (Fund 812 - Water Capital Program Fund) and include improvement projects for production plants, wells and pipelines, and design for Chromium-6. The Supplemental Water Supply Fund (SWSF) (Fund 321) is budgeted to provide funding for the East Valley Reclamation Authority (EVRA) for the Ground Water Model ($200,000). The Water Development Impact Fees (Fund 310) are budgeted at $3,800,000 to provide funding for Avenue 50 and Madison Street Pipeline Installation.

AGENDA ITEM #10.25
Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 884 of 1774 The CIP details proposed projects that may be planned, designed, and implemented at some stage for the next fiscal year. The projects may involve the designation of funding, project or planning study reports and construction of new public facilities as well as minor and major infrastructure improvements. The update of the CIP commonly consists of the addition of new projects and the revision of or funding updates for existing projects.

Staff is presenting associated CIP projects currently for the City Council to make a finding of consistency with the General Plan. Resolution No. 10511, included as Attachment 1, specifies the CIP projects and the relevant General Plan policies for these projects (as well as new and carryover projects) are consistent with the City’s General Plan.

The Fiscal Year 2025-2026 CIP of the IWA complies with the Surface and Subsurface Water Resources Goals and Policies of Chapter 9 (Infrastructure & Public Facilities Element) of the General Plan.

Specifically, the projects are consistent with the following General Plan policies:
 Policy IE-1.1 Water Supply. Work with CVWD and IWA to ensure adequate supply of domestic facilities to sustain existing and projected water needs.  Policy IE-1.2 Water Facilities. Ensure adequate funding is available to accommodate existing and future water facilities.

In addition, these projects are consistent with the General Plan Safety Element relating to Community Emergency Preparedness as the City of Indio will work with local agencies and organizations to promote resilience and disaster preparedness as shown in Policy SE-2.4 below:
 Policy SE-2.4 Hazard Profile. Work to minimize the frequency, severity, and probability of future hazard events in the City by taking actions that prepare and mitigate those hazards before they occur.

The finding of General Plan consistency is not a “project” as defined in the California Environmental Quality Act (CEQA), Public Resources Code Section 21065 and Section 15378 (b) (4) and (5) of the State CEQA Guidelines, because the proposed action is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Furthermore, even if it was determined to be a project, pursuant to Section 15061(b)(3), CEQA does not apply to this item because there is no possibility that making the finding may have a significant effect on the environment. The CIP is a prioritizing and funding allocation program and cannot and does not have the potential to have a significant effect on the environment. No physical activity will occur until all required environmental reviews are conducted at the time the physical improvements prioritized in the CIP are undertaken at a future unspecified date.

ATTACHMENTS:

Attachment 1 CC Resolution No. 10511
Attachment 2 PC Resolution No. 2109
APPROVAL(S):

Reymundo Trejo, P.E., IWA General Manager Approved - 07 Jul 2025 Steven Graham Pacifico, City Attorney Approved - 08 Jul 2025

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 885 of 1774 Ruby D. Walla, Director of Finance Approved - 08 Jul 2025 Bryan H. Montgomery, City Manager Approved - 09 Jul 2025

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 886 of 1774 RESOLUTION NO. 10511

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

WATER AUTHORITY MAKING A DETERMINATION THAT THE CAPITAL IMPROVEMENT PROGRAM FOR FISCAL YEAR 2025-2026 ARE CONSISTENT WITH THE CITY OF INDIO GENERAL PLAN 2040
Whereas, the City of Indio (“City”) has leased to the Indio Water Authority (“Authority”) the City’s Water System (“Water System”) as that term is defined in the lease dated May 21, 2001 as amended between the City and the Authority; Whereas, the Authority operates the Water System and in conjunction therewith, has adopted a budget for the improvement and construction of water facilities; Whereas, the City Council and the Authority held a duly noticed public hearing on June 18, 2025, regarding the annual review of the Authority’s Capital Improvement, Development Impact Fee Program and Supplemental Water Supply Fee Programs; Whereas, Section 32.10 of the Indio Municipal Code and California Government Code Section 65103 require the City Council of the City of Indio (“City”), to annually review the proposed Capital Improvement Program to determine its consistency with the City of Indio General Plan 2040 (“General Plan”); and, Whereas, on June 18, 2025, the City Council reviewed the Indio Water Authority’s proposed Capital Improvement Program for Fiscal Year 2025-2026 (“CIP”) and all related public works projects that are contemplated by the CIP (“Project” or “Projects”), as listed in the staff report and attachment, which are incorporated herein by this reference, to determine their consistency with the General Plan.

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

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

Section 1. The above recitals are true and correct and are incorporated herein.

Section 2. The City Clerk and the Authority Secretary shall certify to the adoption of this resolution.

Section 3. Adoption of Resolution upon Formal Findings. Based upon the true and correct recitals above, incorporated in their entirety by this reference herein, inclusive of all defined terms, and now entered as formal findings, the City Council hereby adopts this Resolution and each of its provisions.

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 887 of 1774 Section 4. Consistency with General Plan. Based on the evidence in staff’s presentation, the staff report, and the attachments, the City Council hereby finds and determines that the CIP and Projects advance the goals and objectives of the General Plan and present no impediments to achieving the goals and objectives of the General Plan, and thus the CIP and Projects are consistent with the General Plan. The proposed Fiscal Year 2025-2026 CIP is consistent with the General Plan because the projects identified therein are consistent with the Surface and Subsurface Water Resources Goals and Policies of Chapter 9 (Infrastructure & Public Facilities Element) and the following Policy of the Safety Element of the General Plan, specifically the following:
• Policy IE-1.1 Water Supply. Work with CVWD and IWA to ensure adequate supply of domestic facilities to sustain existing and projected water needs; • Policy IE-1.2 Water Facilities. Ensure adequate funding is available to accommodate existing and future water facilities; and
• Policy SE-2.4 Hazard Profile. Work to minimize the frequency, severity, and probability of future hazard events in the City by taking actions that prepare and mitigate those hazards before they occur.

Section 5. New Projects. The following Projects are included in the following table and are consistent with respective General Plan designations and General Plan policies identified therein:

Project Title Project Description Applicable General
Plan Policies
Funding
Source
Plant 2 Hydropneumatic Tank
Replacement
Replace the existing onsite
surge tank.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Well S
Rehabilitation
Rehabilitate IWA’s
groundwater extraction Well
S to extend the operational
life of the well and maintain
high production flow rates.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Chromium 6
Treatment
Upgrades
Upgrade three (3) existing
Cr6 Plants for regulatory
compliance.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Chromium 6
Treatment for
Plant 3, Well W,
and Well BB
Design well head treatment
for Plant 3, Well W, and Well
BB.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 888 of 1774 Project Title Project Description Applicable General
Plan Policies
Funding
Source
Plant 1 Interior
Aluminum
Stairway
Replace Plant 1 Interior
Aluminum at Corporate Yard.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Emergency Intertie
connections
Establish emergency intertie
connections with Coachella
Valley Water District and
Myoma Dunes Mutual Water
Company at various
locations.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
CVWD Thousand
Palms Channel
Crossing Pipe
Relocation at
Avenue 42 and
Madison Street
(design)
Replacement of the existing
24-inch DIP water main on
Avenue 42 as part of the
CVWD Thousand Palms
Channel Upgrades.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Avenue 50 and
Madison Street
Pipe Installation
Installation of approximately
6,100 linear feet of 18-inch
ductile iron pipeline along
Avenue 50th.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 889 of 1774 Section 6. Carryover Projects.

Projects previously reviewed and approved by the Planning Commission and the City Council are included in the following table and are consistent with the respective General Plan designations and based on the General Plan objective or policies identified therein:

Project Title Project Description Applicable
General Plan
Policies
Funding
Source
Well
Rehabilitation
Program
Rehabilitate
groundwater extraction
well(s), which includes
aquifer zone testing,
pump removal, casing
rehabilitation,
redevelopment, video
survey, disinfection,
and pump reinstallation.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water Capital
Program
Pipeline
Replacement
Program
Replace 1,000 linear
feet of pipe in areas
with the greatest need
such as pipe upsize or
very low pressures; part
of a 10-year program
for replacement of
pipelines throughout the
entire distribution
system.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water Capital
Program
Recycled Water
Treatment
Project will study
recycled water use for
irrigation and
replenishment along the
CV storm channel.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Supplemental
Water Supply
Fees
Plant 2 BPS
Replacement
Replace existing pump
station, building,
electrical, and
generator.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water
Capital
Program

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 890 of 1774 Project Title Project Description Applicable
General Plan
Policies
Funding
Source
Hydrant
Replacement
Program
Part of a 10 year
program to replace drybarrel hydrants to the
most current hydrant
standards to ensure
reliability for fire
protection.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water Capital
Program
Well Facility
Building
Replacement
Prepare a condition
assessment at various
locations within the
distribution system in
order to assess existing
condition and prepare a
plan for repairs or
replacement.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water Capital
Program
Meter Changeout
Program
Replace old meters and
switch from remote
reading to automated
reading through an
advanced metering
infrastructure system.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water Capital
Program
Reservoir
Exterior Coatings
Provide protective
exterior coating to water
reservoirs.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water Capital
Program
Hexavalent
Chromium Well
Treatment
Planning, design, and
construction of
hexavalent chromium
treatment facilities at
various water
production sites based
on State Water
Resources Control
Board adopting a
Maximum Contaminant
Level (MCL) of 10 ppb.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water Capital
Program

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 891 of 1774 Project Title Project Description Applicable
General Plan
Policies
Funding
Source
Plant 1 Interior
Aluminum
Stairway
Replace the aluminum
interior stairway for the
reservoir at Plant 1. The
new stairway will ensure
safe ingress and egress
during annual tank
inspections.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water Capital
Program
Emergency
Intertie
Connections
Establish emergency
interconnections with
Coachella Valley Water
District at three
locations and Myoma
Dunes Mutual Water
Company at one
location for emergency
response.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Water Capital
Program
Water
Conservation
Program
Water conservation
program related to
rebate incentive
program for toilets,
washers, and irrigation,
turf removal and direct
install of desert friendly
plants.
and trees.

Consistent with
IE-1.1 (Water
Supply)
Supplemental
Water Supply
Fee
Avenue 50 and
Madison Street
Pipeline
Installation
Install a water pipeline
at Avenue 50 and
Madison Street.

Consistent with
IE-1.1 (Water
Supply) and IE1.2 (Water
Facilities)
Development
Impact Fee
EVRA Injection
Project
Groundwater
Model
IWA and VSD formed
the Joint Exercise of
Powers Agreement for
EVRA, to augment local
water resources by
maximizing beneficial
water reuse.

Consistent with
IE-1.1 (Water
Supply)
Supplemental
Water Supply
Fee

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 892 of 1774 Section 7. CEQA. The finding of General Plan consistency is not a “project” as defined in the California Environmental Quality Act (CEQA), Public Resources Code Section 21065 and Section 15378 (b) (4) and (5) of the State CEQA Guidelines, because the proposed action is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Furthermore, even if it was determined to be a “project”, pursuant to Section 15061(b)(3), CEQA does not apply to this matter because there is no possibility that making a finding of general plan consistency may have a significant effect on the environment. The CIP is a prioritizing and funding allocation program and cannot and does not have the potential to cause a significant effect on the environment. No physical activity will occur until all required environmental review is conducted at the time the physical improvements, prioritized in the CIP are undertaken at a future unspecified date.

Section 8. Severability. If any section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this Resolution. The City Council hereby declares that it would have adopted this Resolution and each and every section, subsection, sentence clause or phrase not declared invalid or unconstitutional without regard to any such decision or legislation.

Section 9. Effective Immediately. This Resolution shall take effect immediately.

Section 10. Certification. The City Council Secretary shall certify to the passage, approval, and adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 16th day of July 2025, by the following vote:

CITY COUNCIL & INDIO WATER AUTHORITY
AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________
Glenn Miller
Mayor/President
ATTEST:

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 893 of 1774 _________________________
Sabdi Sanchez, CMC
City Clerk/Secretary
APPROVED AS TO FORM:
____________________________
Steven Graham
City Attorney/IWA General Counsel

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 894 of 1774 RESOLUTION NO. 2109

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY

OF INDIO, CALIFORNIA, FINDING THAT THE PROPOSED CAPITAL

IMPROVEMENT PROGRAM OF THE INDIO WATER AUTHORITY
FOR FISCAL YEAR 2025-2026 AND EACH OF THE PUBLIC WORKS

PROJECTS INCORPORATED THEREIN ARE CONSISTENT WITH
THE CITY OF INDIO GENERAL PLAN 2040
WHEREAS, Section 32.10 of the Indio Municipal Code and California Government Code Section 65103 require the Planning Agency of the City of Indio (“City”), which is the City’s Planning Commission, to annually review the proposed Capital Improvement Program to determine its consistency with the City of Indio General Plan 2040 (“General Plan”); and,
WHEREAS, on May 28, 2025, the Planning Commission reviewed the Indio Water Authority’s proposed Capital Improvement Program for Fiscal Year 2025-2026 (“CIP”) and all related public works projects that are contemplated by the CIP (“Project” or “Projects”), as listed in the staff report and attachment, which are incorporated herein by this reference, to determine their consistency with the General Plan.

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

Section 1. Adoption of Resolution upon Formal Findings. Based upon the true and correct recitals above, incorporated in their entirety by this reference herein, inclusive of all defined terms, and now entered as formal findings, the Planning Commission hereby adopts this Resolution and each of its provisions.

Section 2. Consistency with General Plan. Based on the evidence in the staff’s presentation, the staff report, and the attachments, the Planning Commission hereby finds and determines that the CIP and Projects advance the goals and objectives of the General Plan and present no impediments to achieving the goals and objectives of the General Plan, and thus the CIP and Projects are consistent with the General Plan. The proposed Fiscal Year 2025-2026 CIP is consistent with the General Plan because the projects identified therein are consistent with the Surface and Subsurface Water Resources Goals and Policies of Chapter 9 (Infrastructure & Public Facilities) of the General Plan, specifically the following policies:
 IE-1.1 Water Supply. Work with CVWD and IWA to ensure adequate supply of domestic facilities to sustain existing and projected water needs.  IE-1.2 Water Facilities. Ensure adequate funding is available to accommodate existing and future water facilities.
 SE-2.4 Hazard Profile. Work to minimize the frequency, severity, and probability of future hazard events in the City by taking actions that prepare and mitigate those hazards before they occur.

Docusign Envelope ID: 94B036E6-3CD7-4DAE-9361-8E22D3F4AE8F

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 895 of 1774 Section 3. New Projects. Projects being presented to the Planning Commission for the first time are included in the following table and are consistent with the General Plan based on the General Plan objective or policy identified therein:

Project Title Project Description Applicable General
Plan Policies
Funding
Source
Plant 2 Hydropneumatic Tank
Replacement
Replace the existing onsite
surge tank.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Well S
Rehabilitation
Rehabilitate IWA’s
groundwater extraction Well
S to extend the operational
life of the well and maintain
high production flow rates.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Chromium 6
Treatment
Upgrades
Upgrade three (3) existing
Cr6 Plants for regulatory
compliance.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Chromium 6
Treatment for
Plant 3, Well W,
and Well BB
Design well head treatment
for Plant 3, Well W, and Well
BB.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Plant 1 Interior
Aluminum
Stairway
Replace Plant 1 Interior
Aluminum at Corporate Yard.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Emergency Intertie
connections
Establish emergency intertie
connections with Coachella
Valley Water District and
Myoma Dunes Mutual Water
Company at various
locations.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
CVWD Thousand
Palms Channel
Crossing Pipe
Relocation at
Avenue 42 and
Madison Street
(design)
Replacement of the existing
24-inch DIP water main on
Avenue 42 as part of the
CVWD Thousand Palms
Channel Upgrades.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Avenue 50 and
Madison Street
Pipe Installation
Installation of approximately
6,100 linear feet of 18-inch
ductile iron pipeline along
Avenue 50th.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Docusign Envelope ID: 94B036E6-3CD7-4DAE-9361-8E22D3F4AE8F

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 896 of 1774 Section 4. Carryover Projects. Projects previously reviewed and approved by the Planning Commission and the City Council are included in the following table and are consistent with the General Plan based on the General Plan objective or policy identified therein:

Project Title Project Description Applicable General
Plan Policies
Funding
Source
Well
Rehabilitation
Program
Rehabilitate groundwater
extraction well(s), which
includes aquifer zone testing,
pump removal, casing
rehabilitation,
redevelopment, video survey,
disinfection,
and pump reinstallation.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Pipeline
Replacement
Program
Replace 1,000 linear feet of
pipe in areas with the
greatest need such as pipe
upsize or very low pressures;
part of a 10-year program for
replacement of pipelines
throughout the entire
distribution system.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Recycled
Water
Treatment
Project will study recycled
water use for irrigation and
replenishment along the CV
storm channel.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Supplemental
Water Supply
Fees
Plant 2 BPS
Replacement
Replace existing pump
station, building, electrical,
and generator.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water
Capital
Program
Hydrant
Replacement
Program
Part of a 10 year program to
replace dry-barrel hydrants to
the most current hydrant
standards to ensure reliability
for fire protection.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Well Facility
Building
Replacement
Prepare a condition
assessment at various
locations within the
distribution system in order to
assess existing condition and
prepare a plan for repairs or
replacement.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Docusign Envelope ID: 94B036E6-3CD7-4DAE-9361-8E22D3F4AE8F

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 897 of 1774 Project Title Project Description Applicable General
Plan Policies
Funding
Source
Meter
Changeout
Program
Replace old meters and
switch from remote reading to
automated reading through an
advanced metering
infrastructure system.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Reservoir
Exterior
Coatings
Provide protective exterior
coating to water reservoirs.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Hexavalent
Chromium
Well
Treatment
Planning, design, and
construction of hexavalent
chromium treatment facilities
at various water production
sites based on State Water
Resources Control Board
adopting a Maximum
Contaminant Level (MCL) of
10 ppb.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Plant 1 Interior
Aluminum
Stairway
Replace the aluminum interior
stairway for the reservoir at
Plant 1. The new stairway will
ensure safe ingress and
egress during annual tank
inspections.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Emergency
Intertie
Connections
Establish emergency
interconnections with
Coachella Valley Water
District at three locations and
Myoma Dunes Mutual Water
Company at one location for
emergency response.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Water Capital
Program
Water
Conservation
Program
Water conservation program
related to rebate incentive
program for toilets, washers,
and irrigation, turf removal
and direct install of desert
friendly plants.
and trees.

Consistent with IE1.1 (Water Supply)Supplemental
Water Supply
Fee
Docusign Envelope ID: 94B036E6-3CD7-4DAE-9361-8E22D3F4AE8F

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 898 of 1774 Project Title Project Description Applicable General
Plan Policies
Funding
Source
Avenue 50
and Madison
Street Pipeline
Installation
Install a water pipeline at
Avenue 50 and Madison
Street.

Consistent with IE1.1 (Water Supply)
and IE-1.2 (Water
Facilities)
Development
Impact Fee
EVRA
Injection
Project
Groundwater
Model
IWA and VSD formed the Joint
Exercise of Powers Agreement
for EVRA, to augment local
water resources by maximizing
beneficial water reuse.

Consistent with IE1.1 (Water Supply)Supplemental
Water Supply
Fee
Section 5. CEQA. The finding of General Plan consistency is not a “project” as defined in the California Environmental Quality Act (CEQA), Public Resources Code Section 21065 and Section 15378 (b) (4) and (5) of the State CEQA Guidelines, because the proposed action is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. Furthermore, even if it was determined to be a “project”, pursuant to Section 15061(b)(3), CEQA does not apply to this matter because there is no possibility that making a finding of general plan consistency may have a significant effect on the environment. The CIP is a prioritizing and funding allocation program and cannot and does not have the potential to cause a significant effect on the environment. No physical activity will occur until all required environmental review is conducted at the time the physical improvements, prioritized in the CIP are undertaken at a future unspecified date.

Section 6. Severability. If any section, subsection, sentence, clause, phrase or word of this Resolution is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this Resolution. The Planning Commission hereby declares that it would have adopted this Resolution and each and every section, subsection, sentence clause or phrase not declared invalid or unconstitutional without regard to any such decision or legislation.

Section 7. Effective Immediately. This Resolution shall take effect immediately.

Section 8. Certification. The Planning Commission Secretary shall certify to the passage, approval, and adoption of this Resolution.

PASSED, APPROVED, and ADOPTED this 28th day of May 2025, by the following vote, to wit:

AYES: Franz, Ortiz, Santos
NOES: None
ABSTAIN: None
Docusign Envelope ID: 94B036E6-3CD7-4DAE-9361-8E22D3F4AE8F

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 899 of 1774 ABSENT: Fajardo, Rodriguez Ceja
__________________________________

GLORIA FRANZ

PLANNING COMMISSIONER
ATTEST:
___________________________

PAULINA MENDOZA

COMMISSION SECRETARY
Docusign Envelope ID: 94B036E6-3CD7-4DAE-9361-8E22D3F4AE8F

Resolution No. 10511, finding that the Proposed Fiscal Year 2025-26 Capi... Page 900 of 1774 City of Indio
City Council
July 16, 2025

STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Brian Halvorson, Dir. Of Community Development Subject: East Indio Employment Corridor Annexation Study Phase I Final Report RECOMMENDATION:

Staff recommends that the City Council receive a presentation and final report for the East Indio Employment Corridor Annexation Study and provide Input on options to Proceed with Phase II. Staff recommends studying the full sphere of influence in this area.

SUMMARY:

On May 7, 2025, the City’s planning consultant, Dudek, presented to the Council the Phase 1 summary of constraints and opportunities for the East Indio Employment Corridor Annexation Study (“Study”) to receive their feedback. Staff is now bringing this item back to the Council to share the findings and recommendations from the Study’s Final Report and receive additional feedback from the Council. In addition, the Council is being asked if there is interest in an optional task to analyze an expanded project area that would include the remainder of the Eastern Sphere of Influence as defined in the City’s General Plan 2024.

BACKGROUND INFORMATION:

On June 5, 2024, the City committed to exploring approximately 3,300 acres (5.19 square miles) in its Eastern Sphere of Influence for potential employment-generating development as shown in Figure 1 below.

The area, currently unincorporated Riverside County land, is mostly open space with minimal commercial uses and resource extraction. Only 5% (1,000 acres) of City parcels are currently zoned for industrial use, limiting growth in manufacturing, light industrial, and logistics sectors. The Eastern Sphere offers a major opportunity to establish an industrial employment corridor with complementary uses.

The City’s intent through this Project is to expand industrial development opportunities in the City of Indio to support job creation/diversification, enhance services, and promote investment within the City.

The Dudek team developed a Preliminary Feasibility Analysis Final Report (Attachments 1 and 2, Final Report & Appendices) for the project as the final deliverable for Phase 1 to document all work completed during FY 24/25 and assist with decision-making prior to beginning work on Phase II. The Final Report contains findings, recommendations, and work products as appendices from Phase 1 and can be used as reference documents for Phase 2. The intent of this report is to summarize all relevant findings and equip City decision makers with the information needed before proceeding to Phase 2 of the project.

AGENDA ITEM #11.1
East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 901 of 1774 The attached Final Report provides a preliminary analysis of annexation feasibility, including a summary of the following:
o Desktop analysis of environmental, infrastructure, public services and utilities constraints/ opportunities
o Preliminary market demand and economic development strategy o Engagement with interested parties
The Final Report includes a composite map (as shown below) showing overall opportunities and constraints across the Project Area, with non-geographic constraints ranked on a high-to-low spectrum.

The report also demonstrates to Riverside LAFCO the comprehensive analysis that has gone into consideration for potential reorganization. The report concludes with recommendations and next steps, including additional technical studies, community outreach, and agency coordination (discussed further in the Phase 2 Overview).

As part of the recommendations and next steps, staff is requesting that the Council pursue the following actions as part of Phase 2:
o Review Conceptual Scenarios: Evaluate and provide feedback on the conceptual scenarios in the report to guide future planning and annexation efforts. o Conduct a Hydrological Study: Analyze flood risks within the Special Flood Hazard Area located in the northern portion of the Project Area to inform land use planning and flood mitigation strategies.
o Conduct a Fiscal Impact Analysis: Assess the long-term fiscal sustainability of the annexation concept by comparing projected revenues to City costs. o Explore Industrial Development Barriers in Indio:
 Assess whether development standards, parcel configurations, or ownership patterns are limiting industrial buildout.
 Explore improvements to permitting processes and potential incentives to attract industrial users.
 Identify best practices from peer cities that have successfully promoted industrial development.

Funding and Financing Strategies: Explore the “Funding and Financing Strategies Toolbox” included in the report that summarizes key tools to support infrastructure, industrial facilities, and other project needs within the Project Area.

Phase 2 Scope of Work Overview
Phase 2 would begin with a more detailed analysis of all or a part of the City’s Eastern Sphere of Influence (SOI) to develop proposed annexation concepts. Based on findings from the desktop opportunities and constraint analyses conducted in Phase 1, Dudek’s engineers will conduct a hydrology feasibility study to better understand the portion of the Project Area that is part of a special flood zone area to determine the extent of any potential flood hazard areas.

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 902 of 1774 The scope for Phase 2 includes two options. Option 1 would analyze the original Project Area analyzed in Phase 1 (3,320 acres within the Eastern SOI) and Option 2 would include an Expanded Project Area to include the entirety of the Eastern Sphere of Influence (Draft Phase 2 Proposal, Attachment 3). If the City opts to expand the study area, Option 2 will bring the total project area to approximately 4,609 acres.

The consultant’s attached draft proposal outlines the proposed budget (both options are within the previously approved allocation), timeline (15 months or 18 month duration), and sequence of tasks depending on which option is selected. The remaining tasks in the proposal are designed to support either a focused or expanded project area, depending on the Council’s direction. Concepts would be reviewed by key interested parties, including the Planning Commission and City Council, property and business owners, and the broader community. Phase 2 also includes a Fiscal Impact Analysis to refine and select a Preferred Concept.

Once a Preferred Concept is selected, the focus shifts to preparing the LAFCO application, including a Services and Utilities Plan, Fiscal Impact Report, and California Environmental Quality Act (CEQA) documentation (CEQA would be part of a future Phase III).

These steps include the following:
o In addition to reviewing and developing the other LAFCO annexation application requirements, as part of Section C Plan of Services for the LAFCO application, the Project Team will identify the infrastructure and public services needed to support the Preferred Concept and its full buildout, including timing and funding. This will include analysis of water, wastewater, drainage, energy, broadband, roads, mobility, and other essential services.
o The FIR will compare the net cost of services under two scenarios, the remaining unincorporated area versus annexation to the City to determine the fiscal impact of the proposed annexation.
o Ongoing engagement and coordination with various bodies, including the broad community, is integral to Phase 2 to continue to inform the project and support general buy-in that will in turn support the project approvals process. The Project Team will continue to implement a sound public engagement strategy to guide community engagement, build support for the LAFCO application, and coordinate with city, county, industry, and community stakeholders. This work will include targeted meetings with property owners, service providers, and public agencies, a City Council Ad Hoc committee, and strategic public workshops to collect feedback and inform the public on the Project.

Next Steps
In summary, staff are requesting that the Council receive the Final Phase I Report and provide direction on which option (Option 1 or Option 2) to select when proceeding with Phase II of the project. Following input from the Council, staff will return to a future Council meeting with a Professional Services Agreement and an updated scope of services for Council consideration before proceeding with Phase II of the project.

ATTACHMENTS:

Attachment 1 East Indio Employment Corridor Annexation Study Final Report Attachment 2 East Indio Employment Corridor Annexation Study_Appendix_rev Attachment 3 Dudek East Indio Employment Corridor Proposal

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 903 of 1774 APPROVAL(S):

Jennifer A. Mizrahi, Assistant City Attorney Approved - 08 Jul 2025 Ruby D. Walla, Director of Finance Approved - 09 Jul 2025 Bryan H. Montgomery, City Manager Approved - 09 Jul 2025

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 904 of 1774

F I N A L
Final Report: Preliminary Feasibility Analysis
East Indio Employment
Corridor Annexation
Study (Phase 1)
JULY 2025

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 905 of 1774 CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) i Acknowledgments
City of Indio
Brian Montgomery, City Manager
Jonathan Nicks, Assistant City Manager
Brian Halvorson, Community Development Director, Community Development Department

TECHNICAL ADVISORY COMMITTEE
Miguel Ramirez-Cornejo, Economic Development Director, Economic Development Department
Juan Raya, City Engineer, Public Works Department
Reymundo Trego, General Manager, Indio Water Authority
Roman Gonzalez, Water Project Construction Manager, Indio Water Authority Miguel Pena, Water Operations Manager, Indio Water Authority Steve Payne, Deputy Fire Marshal, Office of Fire Planning, Riverside County Fire Department
Bryan White, Division Chief, Indio Fire Department
Indio Police Department
Sara Toyoda, Environmental Programs Coordinator
Mark Greenwood, Transportation Consultant
Imperial Irrigation District
Guillermo Barraza, Manager of Distribution Services & Maintenance Operations Matthew Smelser, Power Department Manager
Coachella Valley Water District
Tommy Fowlkes, Development Services Supervisor

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 906 of 1774 Acknowledgments
CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) ii Robert Scholl, Engineering Services Manager
Armando Rodriguez, Engineer Manager
Chris Boga, Right-of-Way Supervisor
Valley Sanitary District
Steve Shepard, Development Services Supervisor
Ron Buchwald, District Engineer
Israel Garcia, Engineering Technician/GIS Analyst
Coachella Valley Association of Governments,
Coachella Valley Conservation Commission
Kathleen Brundige, Director of Conservation
Peter Satin, Program Manager
Coachella Valley Economic Partnership
Laura James, CEO
Procopio
James Vaughn, Partner and Land Use Practice Group Lead
Riverside Local Agency Formation Commission
Gary Thompson, Executive Officer
Crystal Craig, Assistant Executive Officer
Augustine Band of Cahuilla Indians
Silvia Torres, Administrative Assistant for the Augustine Band of Cahuilla Indians

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 907 of 1774 Acknowledgments
CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) iii Agua Caliente Band of Cahuilla Indians
Claritsa Duarte, Cultural Resources Analyst of the Agua Caliente Band of Cahuilla Indians Cahuilla Band of Indians
Lorrie Gregory, Cultural Resource Coordinator for the Cahuilla Band of Indians Morongo Band of Mission Indians
Sarah Bertman, Tribal Archaeologist for the Morongo Band of Mission Indians, send a response on behalf of Bernadette Ann Brierty, Tribal Historic Preservation Officer Cabazon Band of Cahuilla Indians
Project Team

PRIMARY CONSULTANT
DUDEK: Planning, environmental constraints analysis including, engineering biological resources, archaeological resources, paleontological resources, and geological resources

SUBCONSULTANTS
PROFORMA ADVISORS: Market analysis and highest and best use analysis of the project area based on existing and potential market conditions
INTERSECTING METRICS: Transportation analysis, including existing transportation network and helped refine the conceptual planning scenarios
CV STRATEGIES: Interested party outreach strategy

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 908 of 1774 CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) iv Table of Contents
SECTION PAGE NO.
1 Introduction..................................................................................................................................................................................1

1.1 Project Overview .......................................................................................................................................................1

1.2 Purpose of the Report ...........................................................................................................................................1 2 Planning Area Overview......................................................................................................................................................4

2.1 Existing Setting.........................................................................................................................................................4

2.2 Existing Regulatory Context ............................................................................................................................ 5 3 Methodology ...............................................................................................................................................................................7 4 Opportunities and Constraints Analysis...................................................................................................................8

4.1 Land Use and Community Profile................................................................................................................8

4.1.1 Employment Statistics.......................................................................................................................10

4.1.2 Existing Policy Review......................................................................................................................... 11

4.1.3 Existing Land Ownership................................................................................................................. 15

4.2 Public Services and Utilities............................................................................................................................16

4.2.1 Public Services.........................................................................................................................................18

4.2.2 Public Utilities ......................................................................................................................................... 22

4.3 Existing Environmental Setting.................................................................................................................. 29

4.3.1 Biological Resources............................................................................................................................ 31

4.3.2 Cultural Resources............................................................................................................................... 36

4.3.3 Paleontological Resources............................................................................................................. 39

4.3.4 Geotechnical ............................................................................................................................................42

4.4 Summary ....................................................................................................................................................................45 5 Market Analysis and Economic Development Strategy............................................................................49 6 Interested Party Outreach...............................................................................................................................................52

6.1 City Council ................................................................................................................................................................52

6.2 Technical Advisory Committee ....................................................................................................................53

6.3 Service and Utility Providers ..........................................................................................................................53

6.4 Riverside Local Agency Formation Commission.............................................................................55

6.5 Tribal Governments............................................................................................................................................. 56

6.6 Real Estate and Economic Development Interested Parties ................................................ 56

6.7 Coachella Valley Conservation Commission...................................................................................... 57 7 Conceptual Scenario Planning....................................................................................................................................58

7.1 Process .........................................................................................................................................................................58

7.2 Case Studies.............................................................................................................................................................. 59

7.3 Conceptual Scenarios ......................................................................................................................................... 61

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 909 of 1774 Table of Contents
CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) v

7.4 Evaluation...................................................................................................................................................................66 8 Recommendations and Next Steps......................................................................................................................... 72

8.1 Recommendations .............................................................................................................................................. 72

8.2 Next Steps ..................................................................................................................................................................76 TABLES
4-1 Land Use and Community Profile Opportunities and Constraints Summary ..............................8 4-2 Occupations...............................................................................................................................................................................10 4-3 Relevant Policies...................................................................................................................................................................... 11 4-4 Public Services and Utilities Opportunities and Constraints Summary..........................................16 4-5 Existing Service and Utility Providers in the Project Area and City of Indio ................................. 17 4-6 Environmental Opportunities and Constraints Summary....................................................................... 29 5-1 Economic Opportunities and Constraints Summary ..................................................................................49 5-2 Potential Development Program............................................................................................................................... 51 6-1 Service and Utility Providers..........................................................................................................................................54 6-2 Service and Utility Providers Consultation Conclusions ............................................................................54 7-1 Conceptual Scenarios – Projected Employee and Square Footage Generation......................66 7-2 Conceptual Scenarios – Evaluation Criteria........................................................................................................67 7-3 Conceptual Scenarios – Scoring Criteria...............................................................................................................68 7-4 Conceptual Scenarios – Evaluation Matrix ..........................................................................................................70 8-1 Financing Strategies...........................................................................................................................................................74

EXHIBIT
7-1 Conceptual Scenarios Land Use Mix Summary – Acreages.................................................................... 65

FIGURES
1-1 Project Location........................................................................................................................................................................ 3 2-1 Project Area Existing Land Uses.................................................................................................................................... 5 4-1 Existing Roadway Configurations............................................................................................................................... 21 4-2 Indio Water Authority Water Distribution System........................................................................................24 4-3 Coachella Valley Water District Water Distribution System................................................................... 27 4-4 Electricity and Natural Gas Infrastructure...........................................................................................................28 4-5 Coachella Valley MSHCP...................................................................................................................................................35 4-6 Cultural Resources Sensitivity...................................................................................................................................... 38 4-7 Paleontological Resources Sensitivity .....................................................................................................................41 4-8 Alquist–Priolo Earthquake Zones in the Project Area .................................................................................44

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 910 of 1774 Table of Contents
CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) vi 4-9 Summary of Key Opportunities and Constraints............................................................................................46

APPENDICES
A Desktop Opportunities and Constraints Analyses
A1 Land Use and Community Profile
A2 Biological Resources
A3 Cultural Resources
A4 Paleontological Resources
A5 Public Services and Utilities
A6 Transportation
A7 Geotechnical
B Summary of Key Opportunities and Constraints Presentation C Market and Economic Development Strategy Report
D Interested Parties Outreach Presentation
E May 7, 2025, City Council Meeting Presentation
F Technical Advisory Committee Meeting Presentation
G Case Study Analysis
H Industrial Capacity Analysis Map
I Transportation Assessment Memorandum

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 911 of 1774 CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) vii Terminology
Annexation/reorganization: The process of changing the governmental jurisdiction from one agency (or agencies) to another (or others).

Fault strand: A fault strand is a single, discrete fracture or zone of fractures within a larger fault zone, where rocks have moved relative to each other. Fault zones often consist of multiple strands, and the cumulative movement across all strands contributes to the overall displacement of the fault.

Floor area ratio (FAR): FAR is a zoning tool that regulates the density of development on a piece of land. It consists of the ratio of the total floor area of a building to the area of the land it is built on.

Local Agency Formation Commissions (LAFCOs): LAFCOs are local agencies formed by the California State legislature in 1963 to encourage the orderly formation of local government agencies; preserve agricultural land resources; and discourage urban sprawl.

LAFCOs review proposals for the formation of new local government agencies and for changes in the organization of existing agencies. According to the California Association of Local Agency Formation Commissions (CALAFCO), “LAFCOs are responsible for coordination logical and timely changes in local governmental boundaries, conducting special studies that review ways to reorganize, simplify, and streamline governmental structure and preparing a SPO for each city and special district within each County.” Sphere of Influence (SOI): A sphere of influence is a planning boundary outside of an agency’s legal boundary (such as the city limit line) that designates the agency’s probable future boundary and service area.

Take: In the context of Incidental Take Permits (ITPs), “take” refers to actions that harm, harass, pursue, hunt, shoot, wound, kill, trap, capture, or collect, or attempt to engage in any such conduct, with respect to a federally or state-listed endangered or threatened species. Incidental take, specifically, means the take that is incidental to, and not the purpose of, carrying out an otherwise lawful activity.

Level of service (LOS): LOS is a qualitative measure used to evaluate the performance of transportation facilities like roads and intersections, particularly in terms of traffic flow and congestion. It categorizes traffic conditions into letter grades (A through F), with A representing the best conditions and F the worst. LOS considers factors like vehicle speed, density, and delay to assess the quality of service from a traveler’s perspective.

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 912 of 1774 Introduction

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 913 of 1774 CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 1

INTRODUCTION
1 Introduction

1.1 Project Overview
The East Indio Employment Corridor Annexation Study project (Project) is a focused planning study to analyze the potential annexation of approximately 3,320 acres of unincorporated County of Riverside (County) land into the City of Indio (City). The potential annexed land includes a portion of the City’s existing Sphere of Influence (SOI) known as the Eastern Sphere, according to the City of Indio General Plan (Indio General Plan; General Plan).1 The Project Area is shown in Figure 1-1, Project Location. The City’s goal for the Project is to understand the extent to which the Project Area is feasible for development and identify a future potential development program. The City’s intent for the Project is to expand industrial development
opportunities in Indio to support job
creation, enhance services, and promote
investment within Indio.

The City is approaching the Project in two
phases. Phase 1, which began in June 2024,
focuses on identifying key constraints and
opportunities in the potential annexation
area, which is discussed more fully in this
report. Phase 2 involves selecting a
preferred development plan and submitting
a reorganization request to the Riverside
Local Area Formation Commission (LAFCO)
to annex the area into the City.

1.2 Purpose of the Report
This report provides a high-level summary of Phase 1 activities, including a desktop analysis of environmental and infrastructure constraints and opportunities, a preliminary market assessment, interested party engagement, and the development of conceptual land use scenarios. Phase 1 and this report focus on the preliminary feasibility of annexing the Project Area, including a desktop analysis of environmental factors, infrastructure, and 1 City of Indio. 2019. City of Indio General Plan 2040. Adopted September 18, 2019. https://www.indio.org/departments/community-development-department/general-plan-2040/general-plan-2040- documents.

Current Indio Industrial Zoned Land
Currently, Indio has approximately
1,000 acres of industrially zoned
land. This area represents
approximately 5 percent of the total
number of parcels in the City and is
approximately 1.6 square miles of
the 33 square miles comprising the
City.

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 914 of 1774 Introduction
CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 2 services. Detailed existing conditions, opportunities, and constraints associated with the Phase 1 Project Area can be found in Appendix A, Desktop Opportunities and Constraints Analyses. The report concludes with a summary of recommendations, and next steps, such as further technical studies, community outreach, and interagency coordination.

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 915 of 1774 10 CITY OF COACHELLA

CITY OF INDIO

UNINCORPORATED

RIVERSIDE COUNTY

UNINCORPORATED

RIVERSIDE COUNTY
44TH AVE

OASIS ST MAIN ST

KING ST

TOWNE ST
SUE ST

ALADDIN ST

VIA TERRA LAGO

ARABIA ST

FARGO AVE

CATANIA CT

REGONA R D

SMURR AVE

B ERINGER DR

HOPI AVE

CALHOUN ST

ATLANTIC AVE

CRESTAVE

VALENCIA DR

PADOVA DR

TYLER ST

C LEAR LAKE D R

AVENIDASOMBRA

CITRUS AVE

DILLON AVE

ADRIA DR

GORE ST

TOWNE AVE

FRED WARINGDR
46TH AVE

TERRA LAGOPKWY

EASTSIDE DR
43RD AVE

CO MMERCE S T

OLEANDER AVE

MARKETST

VAN BUREN ST

KENNERAVE

VISTADEL SUR

LAGOVISTA
41 AVE

BLISS AVE

REQUA AVE

GOLF CENTER PKWY

MILES AVE
45TH AVE
HWY 111

HARRISON ST

JACKSON ST
38TH AVE

INDIO BLVD

PIERCE ST

FILLMORE ST

MONROE ST
42ND AVE

VISTA DEL NORTE
40TH AVE
DILLON
RD

DILLON RD

LAND FILL RD

FARGO CANYON RD
Project Location
Phase 1 Annexation Request for the City of Indio, CA
SOURCE: Riverside County 2024; Open Street Map; ESRI World Imagery Date: 10/2/2024 - Last saved by: agreis - Path: Z:\Projects\j1629001\MAPDOC\LandUse\Figure1-ProjectLocation.mxd 01 0.5 Miles
Project Area Boundary
City of Indio Eastern
Sphere of Influence
Cities
FIGURE 1-1
Temecula
Murrieta
Coachella
La Quinta
Indian Wells Lake Elsinore
Menifee
Hemet
Palm Desert
Rancho Mirage Indio San Jacinto Perris
Corona
Cathedral
City
Palm Springs Moreno
Valley
Riverside
Eastvale Banning
Beaumont
Jurupa
Valley
San
Bernardino
County
San Diego
County
Imperial
County
18 60
241 74
189
2 206
195
330
66 91
173
111
243
86 247
138
74 38
76 79
78 15
215
10 15
210
Project Site

16290 4
JULY 2025
Planning Area Overview

East Indio Employment Corridor Annexation Study Phase I Final Report (Br... Page 917 of 1774 CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 4

PLANNING AREA OVERVIEW
2 Planning Area Overview
This chapter provides an overview of the Project Area’s existing setting relative to existing uses, topography, climate, and surrounding uses as a basis for the remainder of the report.

In addition, this chapter provides an overview of the regulatory context for the Project Area based on the County’s and City’s general plan land use elements. See Appendix A1, Land Use and Community Profile, for a report that covers these topics in more detail.

2.1 Existing Setting
Existing Uses
Most of the land in the Project Area is vacant; the next-largest portion of the Project Area includes the agriculture, vineyard, and citrus groves of Blair Ranch and a date garden adjacent to Dillon Road. Smaller portions of the Project Area include quarry, heavy manufacturing, and retail uses, with retail composing the smallest area, as shown in Figure 2-1, Project Area Existing Land Uses. Additionally, some lands have been acquired for residential, retail, and commercial development; however, to date these projects have not broken ground. Refer to Section 4.1.3, Existing Land Ownership, and Appendix A1 for more detailed information on land use and ownership. Due to the existing land use types and large amounts of vacant land, there are relatively few existing structures in the Project Area. Most structures are adjacent to or near Dillon Road and intersecting streets such as 40th Avenue and Cargo Canyon Road.

Topography
The topography within the Project Area is gently sloped from the northeast to the southwest, with the greatest elevations located in the northeastern corner of the Project Area. Elevations range from approximately 38 to 560 feet above mean sea level.

Climate
The Project Area region has a desert climate, very hot summers, mild winters, and minimal annual rainfall. Average highs reach 107°F in July, while January lows average 39°F. Rain typically occurs in December–February and during summer monsoons (August– September), with January receiving the most precipitation. The mean annual precipitation for the region is approximately 3.29 inches.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 5 Surrounding Uses
The Project Area is bordered by a gravel mine to the north and immediately east of the central portion of the Project Area. A landfill is located immediately east of the southern portion of the Project Area. The rest of the lands bordering the Project Area to the east consist of open desert. The Project Area is bordered to the west by what appears to be inactive, remnant agricultural lands. Finally, the southern edge of the Project Area is intersected by the Coachella Valley Water District (CVWD) East Side Dike.

2.2 Existing Regulatory Context
County of Riverside
The County of Riverside General Plan Land Use Element, which was updated in 2021,2 designates the Project Area as mostly Open Space Rural, with smaller areas of Conservation Habitat as well as one small area designated as Mineral Resources and one small area zoned as Estate Density Residential. Additionally, there is land identified as Unique Farmland (i.e., farmland that is currently used to produce specific high value food and fiber crops but that is not listed as Prime and Statewide Important Farmland) in the southern portion of the Project Area.

City of Indio
The City of Indio Land Use and Urban Design General Plan Element establishes an Eastern Sphere subarea, consisting of the eastern portion of the City’s SOI. The Eastern Sphere subarea is contemplated as potentially containing Desert Estates neighborhood type (i.e., rural residential) only if capacity for development within the city is exhausted. The strategy for the subarea includes supporting active and passive recreation; implementing the Coachella Valley Multiple Species Habitat Conservation Plan (CVMSHCP); limiting the type, location, and nature of new development; preserving hillside views; and creating a land use plan and fiscal analysis to ensure that development in the area will be either revenue neutral or revenue enhancing.3 Figure 2-1 Project Area Existing Land Uses
2 County of Riverside. 2021. “Land Use Element.” Chapter 3 in County of Riverside General Plan. https://planning. rctlma.org/riverside-county-general-plan.
3 City of Indio. 2019. “Land Use and Urban Design.” Chapter 3 in City of Indio General Plan 2040. https://www.indio.org/departments/community-development-department/general-plan-2040/general-plan2040-documents.

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CITY OF COACHELLA

CITY OF INDIO

UNINCORPORATED

RIVERSIDE COUNTY

TC PMAC

BEDERO CT

TS ER IOF

TORNO PL

SPIAGGIA PL

GIORNO CT

AQUILAST

LP OPMAC

NOVELLO DR

EREMO WAY

STAZZANO PL

S ENTIERO DR

TC ELLEPAHC NAS

VIA TERRA LAGO

MOLVENA DR

LAGO BREZZA DR

MELKESIAN BLVD

REGONARD

LAKEFRONT DR

BER INGER DR

TREVISODR

CLEAR LAK E D R

ADRIA DR

TERRA LAGO PKWY
42ND AVE

LAGO VISTA

VISTA DEL SUR

TS RELYT
44TH AVE

TS NOIS RRAH
38TH AVE

VISTA DEL NORTE
40TH AVE

DILLON RD LANDFILL RD

DILLON RD

FARGO CANYON RD
Project Area Existing Land Uses
Phase 1 Annexation Request for the City of Indio, CA
SOURCE: Riverside County 2024; Open Street Map; ESRI World Imagery 0 1,900 950 Feet
Project Area Boundary
Project Parcels
City Boundary
CVMSHCP Conservation Areas
East Indio Hills
Parcel Land Uses
Agricultural Land
Quarry
Citrus Grove
Date Garden
Heavy Manufacturing
Retail
Vineyard
Vacant Land
FIGURE 2-1

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PLANNING AREA OVERVIEW
3 Methodology

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Constraints Analysis

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OPPORTUNITIES AND CONSTRAINTS ANALYSIS
4 Opportunities and Constraints Analysis
This chapter provides an overview of key findings from the desktop opportunities and constraints analysis for the following topics:
 Land Use and Community Profile. See Appendix A1 for the detailed report.  Existing Environmental Setting. See Appendices A2–A7 for detailed reports.  Public Services and Utilities. See Appendix A5 for the detailed report.

At the beginning of each section in this chapter, a summary table is provided with key opportunities and constraints by topic area. A summary of all key opportunities and constraints is provided in Section 4.4, including a graphic, map-based summary that compiles all key opportunities and constraints from each topic area.

4.1 Land Use and Community Profile
Table 4-1. Land Use and Community Profile Opportunities and Constraints Summary
Topic Opportunities Constraints
Employment
Statistics
▪ Indio has a higher-thanaverage proportion of bluecollar workers than the region, indicating a large labor pool for
potential industrial or heavy
commercial development and
potential opportunities for
workforce development. A
high percentage of the
workforce in Indio is employed
in natural resources,
construction, and
maintenance (12.5%) and
production, transportation,
and material moving (11.5%),
totaling 10,884 workers.

Policy Review ▪ The Indio General Plan
includes policies intended to
grow industrial and
manufacturing sectors to
increase jobs that pay a livable
wage in the city. The Project,
as envisioned, would promote
this objective.
▪ The County of Riverside
Western Coachella Valley
Area Plan includes policies
intended to protect visual
and biological resources and
minimize exposure to
flooding and other natural
hazards.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 9 Table 4-1. Land Use and Community Profile Opportunities and Constraints Summary
Topic Opportunities Constraints
▪ LAFCO objectives mandate
that any annexation should
ensure timely development,
provide infrastructure and
utilities, and limit urban
sprawl, among other
requirements.

Land Use
Compatibility with
Developer Plans
Potential improvements to Dillion
Road are outlined in the Citrus
Ranch Specific Plan which would
also benefit the Project Area.

Specifically, pedestrian trails are
envisioned along the western side
of Dillon Road in addition to a
landscaped median, six-foot
sidewalk, and an expanded
landscape area on the west side of
the roadway abutting Citrus
Ranch.

Stonewater Solar and Battery
Energy Storage System project,
once operational, will provide
additional power supply to the
City of Indio and surrounding
communities.
▪ Citrus Ranch Specific Plan
area, directly adjacent to the
Project Area, designates lowto high-density residential.

Industrial development
adjacent to planned
residential may cause land
use compatibility issues.
▪ Dillon Trails and Dillon Ranch
plans contemplate
commercial and residential
uses, which could conflict
with industrial development;
however, these plans appear
unlikely to be developed.
▪ The Project Area contains
two major areas that have
significant mineral deposits
of economic value. However,
mineral extraction does not
align with the Project vision.

Land Ownership ▪ South of 40th Avenue many
parcels have been
consolidated under a single
owner, which may help to
facilitate acquisition for
development.
▪ Most of the land in the Project
Area is vacant; the next most
common uses are the
agriculture, vineyard, and
citrus groves and a date
garden. This low utilization of
land creates opportunities for
improvement via
development.
▪ The Bureau of Reclamation,
Bureau of Land
Management, and local
government collectively own
400 acres of land for specific
public purposes; these lands
should be avoided for
development.
▪ Fragmented land ownership,
especially north of 40th
Avenue, may pose
challenges for land
acquisition.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 10

4.1.1 Employment Statistics
As the Project vision focuses on creating an employment hub, the Project Team analyzed U.S. Census data to understand employment statistics to inform the Project. In Indio, service and blue-collar workers each comprise about one-quarter of all workers, and about half are white-collar workers. In the Coachella Valley subregion, and Riverside County in general, there are about 5 percent fewer blue-collar workers and 5 percent more whitecollar workers than in Indio. This suggests that Indio has a slightly higher-than-average proportion of blue-collar workers than is average for the region, and a slightly lower-thanaverage proportion of white-collar workers, although white-collar workers nonetheless are a large majority.

Compared to Riverside County, Indio has the following:
 Higher rates of workers in service occupations (i.e., blue-collar occupations) and lower rates of workers in management, business, science, and the arts (i.e., whitecollar occupations)  Slightly higher rates of workers in natural resources, construction, and maintenance occupations than in the County, and slightly lower rates of production, transportation, and material moving occupations.

This indicates a large labor pool for potential industrial, light industrial, or heavy commercial development and potential opportunities for workforce development within Indio. See Table 4-2 for detailed percentages.

Table 4-2. Occupations
Occupation
Percent in
City of Indio
Percent in
County of
Riverside
Management, business, science, and arts 26.3 34.7
Service 30.5 20.0
Sales and office 19.2 19.7
Natural resources (e.g., farming, fishing, and
forestry), construction, and maintenance

12.5 10.6
Production, transportation, and material moving 11.5 15.0 Source: American Community Survey. 2023. 1-Year Estimates (Table DP03).

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4.1.2 Existing Policy Review
To better understand the feasibility and implications of annexing all or a portion of the Project Area, the Project Team reviewed existing planning and policy frameworks to understand how the Project aligns. Reviewing key plans—including the City of Indio General Plan; County of Riverside General Plan and associated documents; developer plans within or adjacent to the Project Area; and Riverside LAFCO goals, policies, and objectives— provided context for land use goals, conservation priorities, infrastructure planning, and policy consistency. This review helped to identify potential conflicts or synergies, guide the development of conceptual planning scenarios (see Chapter 7, Conceptual Scenario Planning), and ensure that any proposed land use changes are informed by adopted regional and local plans. A list of relevant policies is provided in Table 4-3.

Table 4-3. Relevant Policies
Plan Policy or Objective
Indio General
Plan Land Use
and Urban
Design Element
LU-12.1 Annexation. Before allowing annexation in the Northern or Eastern Sphere of Influence subarea, create a land use plan and conduct a related fiscal analysis that demonstrates that annexation will be revenue neutral or revenue enhancing. Annexation shall not create a revenue drain on the City.

Indio General
Plan Economic
Development
Element
ED-2.1 Business development opportunities. Identify business development opportunities that will increase the number of professional and technical jobs as well as increase skill and wage levels. Emphasis should be placed on development opportunities that diversify the local economy.

ED-2.3 Infrastructure improvements. Identify public services and public infrastructure improvements necessary to expand existing and encourage new industrial development. Conduct regular business surveys, business outreach forums, and public-private partnerships with the GCVCC and the EVC to identify those improvements.

ED-2.4 Industrial growth. Support the retention and growth of the industrial and manufacturing sector and actively attract new industrial businesses.

ED-2.6 Attract livable wages. Continue to purse and attract companies and industries who offer livable wages and medical benefits for employees in Indio.

County of
Riverside
Western
Coachella Valley
Area Plan
WCVAP 20.1. Protect visual and biological resources in the Western Coachella Valley through adherence to General Plan policies found in the Multiple Species Habitat Conservation Plans, Environmentally Sensitive Lands, Wetlands, and Scenic Resources sections of the Multipurpose Open Space Element.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 12 Table 4-3. Relevant Policies
Plan Policy or Objective
WCVAP 22.1. Protect biological resources in the Western Coachella Valley through adherence to General Plan policies found in the Multiple Species Habitat Conservation Plans, Environmentally Sensitive Lands, Wetlands, and Floodplain and Riparian Area Management sections of the Multipurpose Open Space Element, as well as policies contained in the Coachella Valley Multiple Species Habitat Conservation Plan.

WCVAP 23.1. Adhere to the flood proofing, flood protection requirements, and Flood Management Review requirements of Riverside County Ordinance No. 458 Regulating Flood Hazard Areas.

WCVAP 23.2. Require that proposed development projects that are subject to flood hazards, surface ponding, high erosion potential, or sheet flow be submitted to the Coachella Valley Water District or the Riverside County Flood Control and Water Conservation District for review.

WCVAP 23.3. Create flood control projects that maximize multirecreational use and water recharge when possible.

WCVAP 23.4. Protect life and property from the hazards of flood events through adherence to the Flood and Inundation Hazards section of the General Plan Safety Element.

Riverside Local
Agency
Formation
Commission1
Objective 1.1.1. Annexation proposal must demonstrate that urban development will occur within the next 10 years over substantial portions of the Project Area and will be contiguous with existing or proposed development.

Objective 1.1.2. Annexation applications must demonstrate that services will be provided in a timely manner at a cost similar to comparable developments.

Objective 1.1.3. This objective has the intent to limit urban sprawl.

Objective 1.2.2. LAFCO will deny annexation of agricultural lands in an agricultural preserve unless a notice of non-renewal or cancellation has been filed in the affected property proposed for annexation, or the local government’s General Plan allows for continued operation of agricultural uses and provides guidelines for development of agricultural land at the time the preserve is terminated, or development is proposed.

Objective 1.3.1. Preservation of open space is a valid reason for annexing undevelopable land.

Objective 2.1.6. This objective describes policies on incorporation that supplement Office of Planning and Research guidelines, including the following:
▪ A preliminary feasibility assessment must be completed at the earliest possible time and is required no later than the filing of Notice of Intent to Circulate Petition.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 13 Table 4-3. Relevant Policies
Plan Policy or Objective
▪ The comprehensive fiscal analysis (CFA) must be prepared by incorporation proponents that directly hire or manage a consultant to prepare the draft CFA.
▪ Proponents should discuss potential boundaries of the annexation area with LAFCO staff at the earliest possible date.

Objective 2. The objective has the intent to minimize the number of agencies providing services to a given area. However, it recognizes the necessity of regional or subregional services.

Objective 3. This objective indicates that LAFCO may revise a city’s SOI, which it would do during the annual review of the 5-Year Strategic Plan.

Objective 4. The objective states that municipal service providers are subject to municipal service review, which may involve the review of SOI.

Notes: GCVCC = Greater Coachella Valley Chamber of Commerce; EVC = East Valley Coalition; SOI = Sphere of Influence.
1 The Local Agency Formation Commission Riverside objectives in this table are summarized or indicated, rather than stated verbatim.

Indio General Plan
The Indio General Plan 2040 guides Indio’s long-term growth and development within the city boundary and SOI.4If the Project Area is incorporated into the city boundary, relevant policies would apply to the Project, as indicated in Table 4-3.

Applicable land use and economic development policies include those pertaining to fiscal sustainability, industrial sector growth, and quality employment. Policy LU-12.1 requires that any annexation be supported by a land use plan and fiscal analysis to ensure that it does not burden municipal finances. Together, Policies ED-2.1, ED-2.3, ED-2.4, and ED-2.6 are intended to diversify the local economy and improve economic well-being among residents by growing industrial and manufacturing sectors that increase the availability of professional, technical, and industrial jobs that offer livable wages and benefits.

The General Plan strategy for the Eastern Sphere subarea, in which the Project Area is located, is to allow rural residential only if capacity for development within the city is exhausted; to support active and passive recreation; to implement the CVMSHCP; to preserve hillside views; and to create a land use plan and fiscal analysis to ensure development in the area will be either revenue neutral or enhancing, consistent with Policy LU-2.1. The Project, as envisioned, would ensure consistency with the CVMSHCP, preserve 4 City of Indio. 2019. City of Indio General Plan 2040. https://www.indio.org/departments/communitydevelopment-department/general-plan-2040/general-plan-2040-documents.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 14 visual resources, and ensure fiscal sustainability, in addition to promoting General Plan policies focused on economic development job creation.

County of Riverside General Plan
The County General Plan (2015) serves as a comprehensive framework for guiding growth and development within the County, and it is the policy document that pertains to the Project Area today.
5 If the Project Area is annexed into the City of Indio, County land use or other policies would no longer apply and instead Indio policies would supersede.

The Western Coachella Valley Area Plan (2021) is a sub-element of the County General Plan whose plan area encompasses the Project Area.
6 Western Coachella Valley Area Plan
Policies 20.1 and 22.1 emphasize strict adherence to the CVMSHCP and County General Plan elements that address habitat and open space preservation, which aim to preserve sensitive habitats, wetlands, scenic resources, and biodiversity in the region. Policies 23.1,

23.2, 23.3, and 23.4 require compliance with ordinances and policies intended to minimize flood risks, such as review of development proposals for flood vulnerability and flood mitigation measures. Further, flood control projects are encouraged to be multipurpose, providing additional benefits beyond flood control such as groundwater recharge and recreation. Although Western Coachella Valley Area Plan policies would no longer apply after annexation of the Project Area, they are nonetheless important considerations for Project planning.

Developer Plans
The Project Area and the immediate vicinity include four developer-led plans: the Citrus Ranch Specific Plan, located adjacent to the Project Area, and Stonewater at Indio Hills, Dillon Trails, and Dillon Ranch, all of which are located within the Project Area (see Figure 18 in Appendix A1).
 Citrus Ranch Specific Plan. The Citrus Ranch Specific Plan was approved by Indio’s City Council in 2007 and focuses on a 1,183- acre site located in the north portion of Indio, directly west of the Project Area, that is envisioned as a golf course community.

Although development has not taken place at Citrus Ranch, it is important to consider access, infrastructure needs and improvements, and the types and intensity of uses 5 County of Riverside. 2021. County of Riverside General Plan. https://planning.rctlma.org/riverside-countygeneral-plan. 6 County of Riverside. 2021. Western Coachella Valley Area Plan. In County of Riverside General Plan. Revised September 28, 2021. https://planning.rctlma.org/riverside-county-general-plan.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 15 (residential, golf course, recreational and hillside open space, community center, hotel, and a fire station) adjacent to the Project Area.
 Stonewater at Indio Hills, Dillon Trails, and Dillon Ranch Developer Plans. The three developer plans have not been finalized, approved, or built; however, they indicate interest among real estate developers in some of the lands in the Project Area directly adjacent to the Citrus Ranch Specific Plan area. Stonewater at Indio Hills envisions an 818-acre development with residential, hotel, commercial uses, and both Dillion Trails and Dillion Ranch envision 210-acre developments, respectively, comprised of mainly residential and some commercial uses. As these plans are primarily residential development with some accompanying commercial uses, any future development that may include industrial uses within the Project Area should carefully consider proximity to future potential residential development in these plan areas. It is important to note that the Stonewater at Indio Hills Developer Plan has recently been superseded by the Stonewater Solar and Battery Energy Storage System project, which is a current development project that envisions 1,100 acres for solar and battery storage infrastructure within the Project Area.

Riverside Local Agency Formation Commission
Riverside LAFCO has adopted policies and procedures for implementing the Cortese-KnoxHertzberg Local Government Reorganization Act. Riverside LAFCO maintains a series of goals, policies, and objectives that help guide their actions. Riverside LAFCO encourages the following:
 Efficient urban form to limit sprawl and preserve the integrity of agricultural lands and open space
 Orderly and sufficient provision of public services, utilities, and infrastructure (see Section 4.2, Public Services and Utilities, for a list of providers within the Project Area)  Robust interagency and public communication

4.1.3 Existing Land Ownership
Most of the land in the Project Area is privately owned by various entities and individuals.

The landowners with the largest number of acres include Stonewater, the real estate developer for Stonewater at Indio Hill; Blair Ranch, which has a large agricultural operation; and Palm Desert Green Development, another real estate developer.

The landowners with the largest number of acres, however, are the Federal government and local governments.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 16 The largest landowners in the Project Area are the federal and local governments, which together hold over 400 acres, about 13 percent of the area. Local governments own most of the land within the CVMSHCP area, while the Bureau of Reclamation and Bureau of Land Management (BLM) control smaller portions, including a BLM parcel in Section 368 Energy Corridor. CVWD also owns a large parcel north of Blair Ranch. South of 40th Avenue, many parcels have been consolidated by public and private entities, offering potential large-scale development opportunities. See Figure X in Appendix A1 for land ownership details.

Aside from primary landowners, the remainder of the Project Area is composed of a patchwork of various land ownership. Numerous individuals and entities own small parcels of land that have not been improved or developed on to date. Although most of the Project Area has fragmented ownership, some of the parcels have contiguous owners. The ownership of two or more contiguous parcels can increase development potential by simplifying the land acquisition process.

4.2 Public Services and Utilities
Table 4-4. Public Services and Utilities Opportunities and Constraints Summary Topic Opportunities Constraints
Public Services ▪ No police or fire stations near
the Project Area; new
substations would be required
to serve development.
▪ Solid waste and internet
services would be required for
new development.

Public Utilities ▪ The temporary electricity
substation could be
upgraded to serve
development.
▪ The Stonewater Solar and
Battery Energy Storage
System project, once
operational, will provide
additional power supply to
the City of Indio and
potentially surrounding
communities.
▪ Additional stormwater
conveyance channels could
drain to East Side Dike.
▪ No wastewater or water
distribution infrastructure in or
near the Project Area; a
package treatment plant may
be the lowest cost option.
▪ Indio Electric Finance
Authority (IEFA) currently
prioritizes new infrastructure
within the city.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 17 Table 4-4. Public Services and Utilities Opportunities and Constraints Summary Topic Opportunities Constraints
Transportation
Infrastructure
▪ Expansion of Dillon Road to 4
lanes is envisioned by the
General Plan and allowed
under the Coachella Valley
Multiple Species Habitat
Conservation Plan
(CVMSHCP).
▪ Fargo Canyon Road could be
upgraded to handle heavy
truck traffic.
▪ Union Pacific Railroad could
provide opportunities for
goods movement.
▪ Additional internal
roads/streets would have to be
constructed by developers.
▪ Once upgraded, cost for
public roadway maintenance
would be the responsibility of
the City.

As the Project Area is in what is currently unincorporated Riverside County, the area is subject to County regulations and is served by County public services. Upon annexation, the Project Area would be within the service area of some service and utility providers that service the City of Indio. Table 4-5 summarizes existing service and utility providers that serve the Project Area as well as those that serve the City of Indio.

Table 4-5. Existing Service and Utility Providers in the Project Area and City of Indio
Utility/Service
Existing Provider in
Project Area
Existing Provider in the
City of Indio
Police Services Riverside County Sheriff City of Indio Police Department Fire Services Riverside County Fire
Department
Riverside County Fire
Department
Schools Coachella Valley Unified School
District
Desert Sands Unified School
District
Parks/Recreation Desert Recreation District Desert Recreation District and City of Indio
Libraries Riverside County Library System Riverside County Library System Telecommunications Spectrum and Frontier Spectrum and Frontier Solid Waste and
Recycling
None Burrtec Waste and Recycling
Services
Water Supply Indio Water Authority Indio Water Authority and Coachella Valley Water District
Wastewater Coachella Valley Water District Valley Sanitary District

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 18 Table 4-5. Existing Service and Utility Providers in the Project Area and City of Indio
Utility/Service
Existing Provider in
Project Area
Existing Provider in the
City of Indio
Stormwater Riverside County Flood Control
District
Coachella Valley Water District
Natural Gas Southern California Gas
Company
Southern California Gas
Company
Electricity Imperial Irrigation District Imperial Irrigation District (on behalf of Indio Electric Financing
Authority)

4.2.1 Public Services
Police
The Project Area is currently served by the Riverside County Sheriff, while the Indio Police Department provides law enforcement within the city. If the Project Area is annexed, Indio Police would take over public safety services, including patrol, community outreach, investigations, code enforcement, and others as applicable. No stations are currently located nearby, so future substations may be needed based on the scale and type of development, to be coordinated with the Indio Police Department.

Fire
The Project Area is currently served by Riverside County Fire Department (RCFD), in partnership with the California Department of Forestry and Fire Protection (CAL FIRE) to provide fire and emergency services. As a partner city, Indio receives services through the regional system, including code enforcement related to fire safety and hazardous materials, development review, emergency medical response, and others. Indio has four fire stations, but none are near the Project Area. If annexed, fire services would continue through RCFD and the City, although additional stations would likely be needed to support future development due to existing capacity constraints.

Schools
The Project Area is within the boundaries of the Desert Sands Unified School District (DSUSD). Indio is in both the DSUSD and the Coachella Valley Unified School District, in which there are a total of 20 schools that serve Indio. The closest DSUSD schools

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 19 (elementary, middle, and high schools) are approximately about 4.5 to 5 miles from the westernmost edge of the Project Area. If workforce housing is developed in the Project Area, new schools may be needed nearby, requiring coordination with DSUSD.

Recreational Facilities
The Project Area is served by the Desert Recreation District, which offers accessible programs such as after-school activities, fitness classes, and community events. Within Indio, the City’s Public Works Department (Parks and Facilities Division) maintains parks and oversees recreational facility projects. If the Project Area is annexed and future development increases demand, the City and the Desert Recreation District will coordinate to assess and address recreation needs.

Libraries
The Project Area and the City of Riverside are currently served by the Riverside County Library System, which offers programs and services such as STEAM activities,7 career and resume assistance, wireless printing, study spaces, and English conversation clubs. The closest library facility is located approximately 5.2 miles from the westernmost edge of the Project Area. In addition, the City is building a new library building as part of the City Hall campus complex project, scheduled to open in 2025.

Telecommunications
Spectrum and Frontier Communications currently serve the Project Area and Indio with high-speed broadband, fiber-optics, and digital phone service. Neither network has indicated strategies for business expansion within the Project Area. There are planned regional and state network expansions funded through the Coachella Valley Association of Governments (CVAG) and the State of California. The Regional Traffic Signal Synchronization Project (RTSSP) is a CVAG project that will allow cities to expand broadband networks by placing fiber-optic cables alongside the traffic fiber. In conjunction with the RTSSP, the City has developed a Fiber Master Plan to guide the development of reliable and cost-effective fiber broadband infrastructure within Indio. While the City’s Fiber Master Plan does not currently extend into the Project Area, future annexation and development would potentially create opportunities to extend fiber, pending a feasibility analysis.
7 STEAM programs are presented by libraries to promote learning in science, technology, engineering, arts, and mathematics.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 20 Solid Waste and Recycling
Burrtec Waste and Recycling Services is the provider of solid waste collection and disposal for both unincorporated Riverside County and the City of Indio. Municipal solid waste is taken to the Coachella Valley Transfer Station, located in the southern portion of the Project Area. A Joint Power Authority between the City of Indio and the City of Coachella acts as the permitted operator of the transfer station, and the County of Riverside is the permitted owner of the facility.

If the Project Area is incorporated into the City of Indio, Burrtec could continue to service the area by negotiating an extension of service to the newly annexed area. This would entail an increase in service costs to the City at least equal to the increased labor, equipment, and other operating costs of serving a larger area.

Transportation
While transportation infrastructure in the Project Area is limited, the site connects to key regional routes, including Interstate 10 (I-10; east–west freeway) and State Route 86 (north– south highway) via Dillon Road, which runs along the Project Area’s western edge (see Figure 4-1, Existing Roadway Configurations). Dillon Road is currently a two-lane road but is proposed (via the General Plan Mobility Element) to be upgraded to a four-lane boulevard with a Class I bike path that may link to the regional CV Link Multi-Modal Pathway.

Additional access routes include Avenue 44 (east–west) and Thousand Palms Canyon Road (north–south), which could serve as a secondary access point. Public transit is limited, with the nearest Sunline Transit stop approximately 2.5 miles away and the Coachella Transit Hub 3.5 miles away. Should workforce housing be developed, improved transit and pathway connections may be warranted.

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FIGURE 4-1
Phase 1 Annexation Request for the City of Indio, CA

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 22

4.2.2 Public Utilities
Water Supply
The City of Indio’s water supply is provided by the Indio Water Authority (IWA) and supplemented by CVWD. IWA provides potable water service, and recharge facilities are managed by CVWD. IWA’s service area, as shown in Figure 4-2, Indio Water Authority Water Distribution System, includes 38 square miles of groundwater wells, storage reservoirs, pressure zones, and distribution pipes. IWA’s service area does not currently include the Project Area; however, IWA designates the Project Area as a “future service area,” indicating the potential to expand infrastructure in the area.

IWA and CVWD’s existing water supply is sufficient to meet Indio’s current and future demands, with continued regional investments. Water management planning via the Integrated Regional Water Management Plan did not anticipate demand from development in the Project Area, industrial development has relatively low demand for water. For example, the 2020 water demand of all industrial uses in Indio was 136 acre-feet per year. Therefore, existing and projected water supply through at least 2045, per the Integrated Regional Water Management Plan, could be more than sufficient for a large, primarily industrial project.

If the Project Area is incorporated into the City of Indio, water supply is not expected to be a significant constraint. Rather, the most significant constraint for water supply is expected to be the high cost of constructing and maintaining the necessary infrastructure to service potential development. Details of water service infrastructure are elaborated in the following subsection.

Water Service
There are no public potable water services or infrastructure within the Project Area. All new development would be required to construct sufficient water distribution infrastructure.

Based on the 2019 Water Master Plan, IWA water demand projections have accounted for planned developments in the Project Area, namely Stonewater, Dillon Trails, and Dillon Ranch (refer to Figure 7 in Appendix A5). Demand projections indicate that IWA has sufficient capacity to meet the future demand from these proposed projects. However, if development occurs in the Project Area, local storage, production, treatment, and distribution must be developer funded.

Additional study would be required to understand the demand associated with any development within the Project Area given the industrial and commercial development

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 23 vision. More accurate demand projects would be possible once a conceptual land use program is provided to IWA. Assuming sufficient supply, IWA indicated that any new development in the Project Area would require a stand-alone system, including new wells and treatment, storage, and distribution infrastructure.

Wastewater
There are no existing public wastewater collection or treatment services within the Project Area. In the City of Indio, Valley Sanitary District (VSD) provides wastewater service to 98 percent of the population, while the remaining 2 percent are served by CVWD. The VSD collection system consists of sanitary sewer lines, active pump stations, siphons, and one wastewater treatment plant. CVWD operates sanitary sewer pipelines and force mains, water reclamation facilities, and a water reclamation plant within the city.

There are no existing public wastewater collection or treatment services within the Project Area. Although the Project Area is within the CVWD service area and SOI, there is no planned infrastructure within or in the vicinity of the Project Area. Therefore, a significant amount of sewer collection infrastructure would need to be constructed to connect to the Project Area to the CVWD system, given the distance to existing infrastructure as well as hilly terrain that would add to cost and difficulty.

If the Project Area is incorporated into the City of Indio, it would not be automatically annexed into VSD’s jurisdiction but would remain part of CVWD’s jurisdiction. Instead of connecting new infrastructure to existing CVWD facilities, constructing a package treatment plant may be more cost effective. This pre-manufactured facility can scale up with development and be privately financed, either outright or through mechanisms like an enhanced infrastructure financing district. A designated party would be responsible for its maintenance.

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$
Indio Water Authority Water Distribution System
FIGURE 4-2
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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 25 Stormwater
In the eastern Coachella Valley region and within the City of Indio, regional drainage facilities are constructed, operated, and maintained by CVWD. Local drainage facilities are maintained by the City of Indio and generally convey runoff from local streets to the regional facilities. The Whitewater River Storm Channel, which is part of the Colorado River Basin Region, is the main regional drainage facility for Indio, eventually draining into the Salton Sea. The drainage facility closest to the Project Area is the East Side Dike; Wasteway 3 conveys stormwater from the East Side Dike to the Coachella Valley Stormwater Channel, as shown in Figure 4-3, Coachella Valley Water District Water Distribution System.

To protect against stormwater pollution, Indio requires new development to comply with the requirements of the National Pollution Discharge Elimination System (NPDES). If the Project Area is incorporated into the City of Indio, the City would require developers to construct drainage facilities to manage localized stormwater and protect water quality.

Local drainage facilities should connect to CVWD’s regional drainage facilities, such as the East Side Dike, by coordinating with CVWD and pursuing the appropriate permit. Such infrastructure may be phased in as development occurs to spread capital costs.

Furthermore, the northern portion of the Project Area contains a Special Flood Hazard Zone, determined by the California Department of Water Resources to be a 100-year floodplain (or 1 percent annual chance of flooding). Subsequent analysis of satellite imagery indicated an open desert alluvial fan (i.e., desert uplands interspersed with desert washes flowing out of the San Bernardino Mountains) in this area. To date, however, the Federal Emergency Management Agency (FEMA) has not designated any area within the Project Area as a floodplain. As such, the City’s floodplain management regulations would not apply unless additional study, as recommended by the City Floodplain Administrator, conclusively determines the area to be a flood hazard zone. Nonetheless, if development occurs in the Project Area, particularly in the northern portion, flood mitigation measures should be considered and implemented. See Chapter 8 for recommendations and next steps pertaining to a hydrological study focused on the Special Flood Hazard Zone within the Project Area as a consideration for Phase 2.

Natural Gas
SoCalGas provides natural gas to its service area, which encompasses most of Central and Southern California. Two transmission lines, which operate at pressures above 200 pounds per square inch (psi) to transport gas from supply points to the distribution system, run through the southern portion of the Project Area. One high-pressure distribution line, which operates at pressures only above 60 psi to deliver gas in smaller volumes to the

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 26 lower-pressure distribution system, runs along Dillon Road, abutting the western edge of the Project Area. Gas transmission and distribution lines are shown in Figure 4-4, Electricity and Natural Gas Infrastructure.

Electricity
The Project Area is within the service area of Imperial Irrigation District (IID), which maintains and operates the transmission and distribution infrastructure necessary to provide electricity to Indio. Figure 4-4 shows electricity infrastructure in and around the city.

In 2023, the City formed the Indio Electric Financing Authority (IEFA) Joint Powers Agreement with IID to create a dedicated revenue stream to reinvest in the City and fund electric infrastructure. In general, the focus of IEFA projects is driven by development and infrastructure needs. While IID operates and maintains electricity substations, IEFA maintains ownership while construction bonds are outstanding.

IID currently has no plans to build electricity infrastructure in the Project Area, although it is possible IEFA could direct funding toward the Project Area in the future if it is determined to be a priority project. Additionally, prior to construction, IID would conduct an electricity transmission study to determine infrastructure needs of the Project. Development in the Project Area would likely require upgrades to the existing temporary substation and/or a new substation, as well as distribution infrastructure.

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CITY OF COACHELLA

CITY OF INDIAN WELLS

CITY OF INDIO

CITY OF LA QUINTA

CITY OF PALM DESERT

UNINCORPORATED

RIVERSIDE COUNTY

UNINCORPORATED

RIVERSIDE COUNTY
44TH AVE
TS EUS

PALM ST

HOPI AVE

PA D OVA DR

TS SI SAO

SIROCCO AV E

DILLON AVE

ADRIADR

TS EROG

S BAY DR
43RD AVE

OLEANDER AVE

MARKET ST

KENNER AVE LAGOVISTA

AVENI DA SOMBRA
41AVE

BLISS AVE

REQUAAVE

VISTA DEL SUR

TS IA BARA

Y WKP RETNEC FLOG
45TH AVE
46TH AVE

TS NERUB NAV
38TH AVE

TYL ER ST

HARRISON ST

TS NUOHLAC

TS NOSKCAJ

POLK ST

PIERCE ST
42ND AVE

VISTA DEL NORTE

FRED WARING DR

INDIO BLVD

MILES AVE
40TH AVE

FILLMORE ST

TS EORNOM
HWY 111
Wastewater Treatment Plant
LS 55-10
LS 80-13
LS 81-03
LS 80-05
LS 55-01
LS 81-01
LS 81-04
LS 80-04
LS 80-19
LS 81-07
LS 55-24

DILLON RD

L A NDFILL RD

DILLON RD

FARGO CANYON RD
Coachella Valley Water District Water Distribution System Phase 1 Annexation Request for the City of Indio, CA
SOURCE: City Indio; CVWD; Riverside County 2024; Open Street Map; ESRI World Imagery 0 1 0.5 Miles
Project Area Boundary
City Boundary
Coachella Valley Water District
(Stormwater, Wastewater, Irrigation,
Domestic Water, and Recycled Water)
Lift Station
Outlet/Inlet
Stormwater Channel
Earthen
Wastewater Pipelines
Force Main
Gravity Main
Floodway Dike
Earthen
Trapezoidal
FIGURE 4-3Page 43 of 650 AGENDA ITEM #11.1
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PARK
MILES

DOMINGUEZ AVENUE PARK
PARK

LA QUINTA
PARK

INDIO HILLS

PALMS PARK
DESERT
PRIDE
PARK

SHIELDS PARK

ADAMS PARK

SOUTH JACKSON

PARK & DAVIS

SPORTS COMPLEX

INDIO COMMUNITY

CENTER & PARK

TERRACE PARK
NORTH

JACKSON
PARK

DR CARREON
PARK
10 CITY OF COACHELLA

CITY OF INDIO

CITY OF LA QUINTA

UNINCORPORATED

RIVERSIDE COUNTY
44TH AVE

TS ALOS TS KRAP

PEACH ST

TS GNI K
TS EUS

MORRIS ST

TS IN DDALA

VIA TERRA LAGO

ADOBE RD

CATA NIA CT

REGONA R D

R UBIDOUX ST

EVA RRUMS

B ERINGER DR

HOPI AVE

ATLANTIC AVE

CREST AVE

VALENCIA DR

HOO VE R ST

BROADMOOR DR

PADOVA DR

TS IS SAO

CLEAR LAKE D R

C ITRUS AVE

AVENI DAESTUCO

SIROCCO AVE DILLON AVE

POLK ST

TS NERUB NAV

ADRIA DR

TS EROG

EVAEN WOT

TS ROONTELGED

TERRA LAGOPKWY

C AMINO LOS MILAG ROS
43RD AVE

S BAY DR

CO MMERCE S T

OLEANDER AVE

MAR KET ST

NORTHSHOR E DR

KENNER AVE

LAGOVISTA

AVENI DA S OMBRA
41AVE

BLISS AVE

CALHOUN ST

REQUAAVE

VISTA DEL SUR

TS IA BARA

EASTSIDE DR Y WKP RETNEC FLOG
45TH AVE
46TH AVE

TS RELYT

HARRISON ST

TS NOSKCAJ
38TH AVE

FRED WARING DR

PIERCE S
F
T

ILLMORE ST

MILES AVE

VISTA DEL NORTE
42ND AVE

MONROE ST
HWY 111
40TH AVE

INDIOBLVD

DILLON RD LANDFILL RD

DILLON RD

FARGO CANYON RD
Electricity and Natural Gas Infrastructure
Phase 1 Annexation Request for the City of Indio, CA
SOURCE: Socal Gas; CEC; Data Basin; Riverside County 2024; Open Street Map; ESRI World Imagery 0 1 0.5 Miles
Project Area Boundary
City Boundary
Parks
Electricity Substations
Electricity Transmission Lines
SoCal Gas Pipelines
Transmission
Distribution
FIGURE 4-4Page 44 of 650 AGENDA ITEM #11.1
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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 29

4.3 Existing Environmental Setting
Table 4-6. Environmental Opportunities and Constraints Summary Topic Opportunities Constraints
Earthquake and Flood
Zones
▪ Flood hazard zone covers the
northern portion of Project
Area, although risk level is
unknown; further hydrological
study is recommended.
▪ Alquist–Priolo fault zones and
fault traces traverse the
Project Area, creating a risk of
ground shaking.
▪ Development would require
site-specific fault investigation
and report to ensure
appropriate setbacks, adding
cost and time to develop.

Conservation Area
Requirements
▪ Within Desert Tortoise and
Linkage Conservation Area
and East Indio Hills
Conservation Area only
minimal development is
allowed and subject to
additional requirements.
▪ Protected species surveys are
required; if protected species
are found, consultation with
California Department of Fish
and Wildlife and a mitigation
plan required.
▪ If desert tortoises are found on
site, relocation is required.
▪ Mitigation measures for
Nelson’s bighorn sheep are
required.
▪ Local Development Mitigation
Fee required for all
development in Project Area,
even outside of Conservation
Areas.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 30 Table 4-6. Environmental Opportunities and Constraints Summary Topic Opportunities Constraints
State or Federally
Protected Waters
▪ Ephemeral drainages (streams
that run during heavy rains)
were identified in northern
portion; additional
hydrological study and formal
jurisdictional delineation
would be required before
development in these areas.
▪ Protected streams intersect
the Project Area; mitigation
measures, such as buffers,
would be required to avoid
impacts.

Paleontological
Resources
The majority of Project Area has
low paleontological sensitivity.
▪ One area has high
paleontological sensitivity with
potential to produce
significant paleontological
resources during grounddisturbing activities.
▪ This area also has the highest
potential for paleontological
resources; if development
occurs in this area, a
Paleontological Resources
Impact Mitigation Program is
required.
▪ A small portion of the Project
Area has moderate
paleontological sensitivity;
further investigation would be
needed before development.

Cultural Resources ▪ The majority of the Project
Area has low cultural
resources sensitivity.
▪ Tribal contacts have not
indicated any known
resources to be present.
▪ Dillon Road not a “historic
resource”; therefore, it is not
subject to historic resource
requirements.
▪ Historic wells located near
40th Avenue have moderate
potential for cultural
resources; therefore,
avoidance is recommended.
▪ Streams (including
ephemeral), which transect
various parts of the Project
Area, have high potential for
cultural resources; therefore,
avoidance is recommended.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 31 Table 4-6. Environmental Opportunities and Constraints Summary Topic Opportunities Constraints
▪ Historic roads (Fargo Canyon
Road, Old Aqueduct Road, and
an unnamed dirt road) have
moderate potential for cultural
resources; therefore,
avoidance is recommended.

4.3.1 Biological Resources
The Biological Resources Desktop Constraints Analysis (Appendix A2) identifies potential biological resources within the Project Area and vicinity and discusses potential biological constraints, including sensitive vegetation communities, special-status plant and wildlife species, wildlife corridors and linkages, and aquatic resources. The analysis also summarizes applicable federal, state, and local regulations, plans, and documents, including the CVMSHCP.

The CVMSHCP, adopted in 2008, is a comprehensive habitat conservation plan created by the Coachella Valley Mountain Conservancy. The Project Area overlaps two CVMSHCP Conservation Areas, as shown in Figure 4-5, Coachella Valley MSHCP. Approximately 403.3 acres in the south and approximately 15 acres northeast of the Project Area overlap the East Indio Hills and Desert Tortoise and Linkage Conservation Areas, respectively. Any development proposed in these areas would require a Joint Project Review process with concurrence by the Coachella Valley Conservation Commission (CVCC), California Department of Fish and Wildlife (CDFW), and the U.S. Fish and Wildlife Service (USFWS) and may involve additional minimization and mitigation measures to ensure that conservation goals are met.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 32 About the Coachella Valley Multiple Species Habitat Plan  The CVMSHCP is a habitat conservation plan pursuant to Section 10(a) of the federal Endangered Species Act, which authorizes the issuance of take permits and establishes standards for the content of habitat conservation plans. It is also a Natural Community Conservation Plan (NCCP) pursuant to California Fish and Game Code Section 2835, which authorizes CDFW to permit the take of any Covered Species whose conservation and
management are provided for in an approved NCCP. Compliance with the CVMSHCP (and associated permits) provides Permittees (i.e., the City) with incidental take authorization for Covered Species so long as the activity is covered by the CVMSHCP.

Covered Species include listed and non-listed species that are adequately conserved by the CVMSHCP. It should be noted that the CVMSHCP does not apply to BLM-administered lands.

The CVMSHCP aims to acquire land for conservation purposes, including those in the Project Area, although no acquisitions have occurred to date. Development activities on acquired lands are subject to more stringent requirements than lands within conservation areas that have not yet been acquired; however, regardless of ownership status, development activities in the East Indio Hills Conservation Area are very limited (e.g., emergency infrastructure repairs, habitat management and monitoring, and low-impact public uses).

The portion of the Project Area outside of the conservation areas includes vegetation communities considered to be special status or sensitive per CDFW. As required by the CVMSHCP, payment of a local development mitigation fee provides funds for the acquisition and long-term management of conservation lands within the CVMSHCP boundary. Payment of this fee would mitigate and compensate for the loss of these vegetation communities located outside of the conservation areas and no further mitigation would be required if these communities do not occur within any potentially regulated waters.

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CITY OF INDIO EAST INDIO EMPLOYMENT CORRIDOR ANNEXATION STUDY (PHASE 1) 33 Special-Status Species and Wildlife
A special-status species assessment identified 8 plant species and 17 wildlife species with a moderate or high potential to occur within the Project Area. An additional 2 wildlife species were determined to have a low potential to occur. Of the 17 wildlife species with a moderate or high potential to occur within the Project Area, 9 are Covered Species under the CVMSHCP. The additional 2 CVMSHCP covered wildlife species have a low potential to occur but these were still addressed in this analysis. The remaining 8 wildlife species are not CVMSHCP Covered Species. See Appendix A2 for details on species and wildlife.

Bureau of Land Management Lands
The Project Area includes BLM administered lands where three sensitive plant species and eight sensitive wildlife species have a moderate or high potential to occur. See Appendix A2 for details on species and wildlife. The CVMSHCP does not apply to BLM-administered lands and does not authorize take of Covered Species on those lands. Projects within BLM lands may still be subject to Section 7 consultation with USFWS; early coordination is recommended with either BLM or USFWS. BLM will review the action pursuant to the National Environmental Policy Act (NEPA). BLM would use the California Desert Conservation Area (CDCA) Plan, as amended by the Coachella Valley Plan, as a basis for determining the action’s conformance with that land use plan. These plans are intended to complement the CVMSHCP. It can be assumed, depending on species, that the BLM would consult with the USFWS on species by submitting a Biological Assessment. Therefore, it is assumed that any proposed development would be subject to the above, in addition to applicable habitat assessments for BLM sensitive plant and wildlife species and focused surveys.

State or Federally Regulated Waters
The Project Area overlaps several National Hydrography Dataset and National Wetlands Inventory aquatic features (see Figure A-7 in Appendix A2).8 Additional review of aerial imagery indicates there may be additional potentially jurisdictional aquatic resources throughout much of the Project Area. The southern half of the Project Area appears to contain fewer potentially jurisdictional aquatic features compared with the northern half of the Project Area.
8 USGS (U.S. Geological Survey). 2023. National Hydrography Dataset. https://www.usgs.gov/nationalhydrography/national-hydrography-dataset.

USFWS (U.S. Fish and Wildlife Service). 2024. National Wetlands Inventory. https://www.fws.gov/program/ national-wetlands-inventory.