Agenda — Indio City Council, August 20, 2025 (part 2 of 9)

Page 10 of 11 ends

IWA Warrants from 07-04-2025 to 08-08-2025 (Ruby D. Walla, Dir. of Finan...Page 98 of 1094 IWA Warrant Register
Period 07/04/25 to 08/08/25

CHECK NUMBER CHECK DATE CHECK TYPE VENDOR NUMBER VENDOR NAME ORG OBJECT AMOUNT 20572 07/08/2025 PRINTED 603 CDW GOVERNMENT 8106715 555005 3,399.91 $ 20572 07/08/2025 PRINTED 603 CDW GOVERNMENT 8106715 555005 2,663.24 $ 20572 07/08/2025 PRINTED 603 CDW GOVERNMENT 8106715 555005 233.64 $ 20572 07/08/2025 PRINTED 603 CDW GOVERNMENT 8106715 555005 1,945.04 $ 20570 07/08/2025 PRINTED 6585 AMAZON CAPITAL SERVICES, INC. 8106715 531060 81.54 $ 20570 07/08/2025 PRINTED 6585 AMAZON CAPITAL SERVICES, INC. 8106715 531060 190.76 $ Total 1,432,777.06$

Page 10 of 10 ends

Page 11 of 11 ends

IWA Warrants from 07-04-2025 to 08-08-2025 (Ruby D. Walla, Dir. of Finan...Page 99 of 1094 City of Indio
City Council
August 20, 2025

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Ruby D. Walla, Director of Finance
Subject: Report of investments for the quarter ending June 30, 2025

RECOMMENDATION:

Staff recommends that the City Council receive and file the investment account statement for the quarter ending June 30, 2025.

SUMMARY:

The attached quarterly-account statement (Attachment 1) reflects investment activity for the period of April 1, 2025, through June 30, 2025. The statement was reviewed by the City’s Investment Committee on July 30, 2025, whose members include the City Treasurer, Finance Director, Mayor and Mayor Pro Tem, with no objections noted. All investments and transactions are in compliance with Government Code and City policy. Interest/gains accrued for the quarter ending June 30, 2025, for all pooled funds, totaled $2,261,384. Total investments owned and/or managed by the City, totaled $254,269,359. The City invests public funds in conformance with federal, state, and other legal requirements. These requirements, along with general objectives, delegation of authority, procedures, internal controls, and reporting requirements are detailed in the City's Investment Policy, which is periodically updated to be in conformity with state code and recommendations from the City's investment advisor Chandler Asset Management.

BACKGROUND INFORMATION:

The investment objectives of the City of Indio are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio; second, to provide sufficient liquidity to meet all operating requirements; and third, to earn a commensurate rate of return consistent with the constraints imposed by the safety and liquidity objectives. The performance objective for the portfolio is to earn an average market yield over a market cycle that equals or exceeds the Bank of America Merrill Lynch market Index of 1-5 Year Treasury securities. In order to achieve this objective, the portfolio is invested in high quality money market instruments, US Treasury and Agency securities, and US Corporate notes with a maximum maturity of five years. For the quarter ending June 30, 2025, the average three month market yield of the City’s investments was 4.01%, and the average market yield of the Bank of America Merrill Lynch Index of 1-5 Year Treasury securities was 3.78%. Quarterly investment-reporting requirements as required in the City’s investment policy (Section XII, Paragraph A) are met in the Investment Report as follows:

Quarterly
Reporting
Requirement
Description Report Location
(Page #)
1 An asset listing showing par value, cost and
accurate and complete market value of each
security, type of investment, issuer, maturity
38-51
AGENDA ITEM #9.5
Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall... Page 100 of 1094 date, and interest rate
2a Average maturity of the portfolio and modified
duration of the portfolio
19, 26, 29, 31,33,
36 2b Maturity distribution of the portfolio 23
2c Average portfolio credit quality 19, 26, 29, 31,33,
36 2d
Time-weighted total rate of return for the
portfolio for the prior one month, three months,
twelve months, year to date, and since inception
compared to the Benchmark Index returns for
the same period
2 3 A statement of compliance with investment
policy 16-18
4 A statement that the City has adequate funds to
meet its cash flow requirements for the next six
months
Staff Report

In accordance with Government Code and the City’s investment policy, staff confirms that the City has an adequate cash flow to meet its expenditure requirements for the next six months, pending any future actions by the City Council or any unforeseen catastrophe.

ATTACHMENTS:
2025.06.30_Quarterly Report_Indio

APPROVAL(S):

Ruby D. Walla, Director of Finance Approved - 01 Aug 2025 Steven Graham Pacifico, City Attorney Approved - 04 Aug 2025 Bryan H. Montgomery, City Manager Approved - 08 Aug 2025

Page 2 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall... Page 101 of 1094

INVESTMENT REPORT
City of Indio | As of June 30, 2025
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

Page 3 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 102 of 1094

TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

CONSOLIDATED INFORMATION

PORTFOLIO HOLDINGS

TRANSACTIONS
1

Page 4 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 103 of 1094

ECONOMIC UPDATE
2

Page 5 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 104 of 1094 ▪
▪
▪
Recent economic data suggest slower growth in 2025 and greater market uncertainty as the effects of fiscal policy unfold. Inflationary trends have subsided, but some components remain sticky, and core levels remain above the Fed’s target. The labor market reflects improved balance between supply and demand for workers. While job creation has moderated, the unemployment rate remains low; however, continuing jobless claims remain elevated implying a less robust labor market. Given the economic outlook, we expect gradual normalization of monetary policy and a steepening yield curve.

As broadly anticipated, the Federal Open Market Committee (FOMC) left the Federal Funds Rate unchanged at the range of 4.25 - 4.50% at the June meeting. Fed Chair Powell continued to emphasize the Committee’s “waitand see” approach amidst economic uncertainty that remains elevated but diminished. Federal Reserve officials continued to pencil in two rate cuts in 2025.

US Treasury yields declined in June. The 2-year Treasury yield fell 18 basis points to 3.72%, the 5-year Treasury dropped 17 basis points to

3.80%, and the 10-year Treasury yield also declined 17 basis points to 4.23%. The spread between the 2-year and 10-year Treasury yield points on the curve edged up to +51 basis points at June month-end versus +50 basis points at May month-end. The spread between the 2- year Treasury and 10-year Treasury yield one year ago was -36 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was -7 basis points in June, versus -6 basis points in May.

ECONOMIC UPDATE
3

Page 6 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 105 of 1094 -400
-200
0 200
400
600
800
1,000MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The U.S. economy added 147,000 jobs in June, exceeding consensus expectations, and the last two months were revised up by 16,000.

Gains were primarily driven by state and local government education, while job growth in service sectors languished. The three-month moving average and six-month moving average payrolls totaled 150,000 and 130,000 respectively. The unemployment rate declined to

4.1% in June from 4.2% in May, due to a shrinking labor force. The labor participation rate dipped to 62.3%, remaining below the pre- pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons dropped to 7.7% in June. Average hourly earnings fell slightly, marking a 3.7% year-over-year increase.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
4

Page 7 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 106 of 1094 0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average
In Thousands (000's)
The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) unexpectedly roseto 7.77 million new job openings in May from

7.40 million in April. Layoffs declined and the quits rate increased. Job openings indicate a ratio of approximately 1.1 jobs for each unemployed individual, representing a relatively balanced labor market.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
5

Page 8 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 107 of 1094

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YOY (%) Change
In June, the Consumer Price Index (CPI) increased 0.3% month-over-month and rose 2.7% year-over-year, while the Core CPI rose 0.2% month-over-month and 2.9% year-over-year. The Personal Consumption Expenditures (PCE) price index increased 0.1% month-over-month and rose 2.3% year-over-yearin May. The Core PCE deflator, which excludes food and energy and is the Fed’s preferred gauge, increased

0.2% month-over-month and 2.7% year-over-year,up from April’s 2.6% year-over-year increase. Although inflation has trended toward the Federal Reserve’s 2% target, the overall impact of tariff policy has not yet fully flowed through to the US economy.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
6

Page 9 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 108 of 1094

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Retail Sales YOY % Change
YOY (%) Change
Advance Retail Sales were up 0.6% month-over-month in June, rebounding from a 0.9% decline in May and exceeding consensus forecasts. Auto sales led the increase. Control group sales, which feed into GDP, increased by 0.5%. On a year-over-year basis, Retail Sales grew 3.9% in June, following a 3.3% increase in May. The Conference Board’s Consumer Confidence Index droppedto 93.0 in June from 98.4 in May, as consumers’ assessment of both the current situation and future expectations for income and labor markets soured.

While the consumer has been resilient, elevated inflation expectations, concerns about trade policies and tariffs, and general economic and policy uncertainty could pose potential risks to future spending. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
7

Page 10 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 109 of 1094 -25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) fell by 0.3% in June, following a flat reading in May. The LEI decreased by 4.0% year- over-year. The Conference Board is expecting economic growth to slow substantially in 2025 due to consumer pessimism, persistently soft manufacturing new orders, and rising first-time jobless claims. The Chicago Fed National Activity Index (CFNAI) improved to -0.28 in May from a downwardly revised -0.36 in April. The three-month moving average dropped to -0.16 in May from 0.06 in April, indicating slightly below trend growth.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
8

Page 11 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 110 of 1094 0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts increased 4.6% month-over-month in June to a seasonally adjusted annual rate of 1.321 million units. Multi-family starts drove the gain, while single-family starts fell on weak buyer demand. The Freddie Mac 30-year fixed rate mortgage averaged approximately 6.8% in June. According to the Case-Shiller 20-City Home Price Index, housing prices rose 3.4% year-over-year in April, compared to 4.1% in March. Limited inventory, elevated mortgage rates, and lack of affordability continue to weigh on the housing market.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
9

Page 12 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 111 of 1094 40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
The Institute for Supply Management (ISM) Manufacturing index edged up to 49.0 in June from 48.5 in May, indicating a continuation of modest contraction in the sector. Inventories and production improved as companies worked through backlogs, while employment and new orders contracted. The ISM Services index increased to 50.8 in June from 49.9 in May, as new orders improved. However, ongoing concerns about the impact of tariffs remain. A reading over 50 indicates expansion, while a reading under 50 indicates contraction.

Source: Institute for Supply Management

SURVEY BASED MEASURES
10

Page 13 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 112 of 1094 Components of GDP 6/24 9/24 12/24 3/25

1.9% 2.5% 2.7% 0.3%

1.5% 0.2% -1.0% 3.9%
-0.9% -0.4% 0.3% -4.6%

0.3% 0.6% 0.3% -0.3%

0.3% 0.3% 0.3% 0.2%

3.0% 3.1% 2.5% -0.5%
State and Local (Consumption and Gross
Investment)
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
-40.0%
-30.0%
-20.0%
-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real GDP decreased at an annualized rate of 0.5% in the first quarter of 2025, according to the third and final estimate from the Bureauof Economic Analysis, a downward revision from the previously estimated 0.2% decline. This marks the first negative quarter since 2022.

The primary driver of the downward revision was weaker personal consumption expenditures. Net exports remained the primary drag on growth, as imports rose sharply in anticipation of higher tariffs. Gross investment contributed positively, powered by business decisions to get ahead of possible cost increases. The consensus projection calls for 2.1% growth for the second quarter and 1.5% for the full year 2025.

GROSS DOMESTIC PRODUCT (GDP)
11

Page 14 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 113 of 1094 Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
As broadly anticipated, the Federal Open Market Committee (FOMC) left the Federal Funds Rate unchanged at the range of 4.25 - 4.50% at the June meeting. In the Summaryof Economic Projections (SEP), Federal Reserve officials continued to pencil in two rate cuts in 2025, while downgrading estimates for economic growth and raising forecasts for both unemployment and inflation this year. The statement indicated that uncertainty about the economic outlook remained elevatedbut had diminished. The monthly redemption capon Treasuries will remain at $5 billion, while the cap on agencies and mortgage-backed securities will be maintained at $35 billion. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by about $2.2 trillion to approximately $6.7 trillion.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
12

Page 15 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 114 of 1094 Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Yield Curve
Jun-25
Mar-25
Jun-24
Yield (%)
At the end of June, the 2-year Treasury yield was 103 basis points lower, and the 10-Year Treasury yield was 17 basis points lower, year- over-year. The spread between the 2-year and 10-year Treasury yield pointson the curve edged up to +51 basis points at June month-end versus +50 basis points at May month-end. The recent yield curve inversion which began in July 2022 was historically long. The average historical spread (since 2005) is about +99 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was -7 basis points in June, versus -6 basis points in May.

BOND YIELDS
13

Page 16 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 115 of 1094

ACCOUNT PROFILE
14

Page 17 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 116 of 1094

OBJECTIVES
Investment Objectives
The City of Indio's investment objectives, in order of priority, are to provide safety to ensure the preservation of capital in the overall portfolio, provide sufficient liquidity for cash needs and a market rate of return consistent with the investment program.

Chandler Asset Management Performance Objective
The performance objective for the accounts is to achieve a rate of return over a market cycle that equals or exceeds the return on a market index of similar duration and sector allocation.

Strategy
In order to achieve these objectives, the portfolio invests in high quality fixed income securities consistent with the investment policy and California Government Code. 15

Page 18 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 117 of 1094

STATEMENT OF COMPLIANCE
City of Indio | Account #10043 | As of June 30, 2025
Rules Name Limit Actual Compliance
Status Notes

AGENCY MORTGAGE SECURITIES (CMOS)
Max % (MV) 100.0 11.2 Compliant
Max % Issuer (MV) 100.0 11.2 Compliant
Max Maturity (Years) 5.0 4.6 Compliant

ASSET-BACKED SECURITIES (ABS)
Max % (MV; Non Agency ABS & MBS) 20.0 8.9 Compliant
Max % Issuer (MV) 5.0 1.0 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant

BANKERS' ACCEPTANCES
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180 0.0 Compliant
Min Rating (A-1 by 1 & A- by 1) 0.0 0.0 Compliant

COLLATERALIZED TIME DEPOSITS (NON-

NEGOTIABLE CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant

COMMERCIAL PAPER
Max % (MV) 40.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270 0.0 Compliant
Min Rating (A-1 by 1, A- by 2) 0.0 0.0 Compliant

CORPORATE MEDIUM TERM NOTES
Max % (MV) 30.0 26.5 Compliant
Max % Issuer (MV) 5.0 1.8 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
16

Page 19 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 118 of 1094

STATEMENT OF COMPLIANCE
City of Indio | Account #10043 | As of June 30, 2025
Rules Name Limit Actual Compliance
Status Notes

FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max % (MV) 20.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant

FEDERAL AGENCIES
Max % (MV) 100.0 6.6 Compliant
Max % Issuer (MV) 100.0 2.8 Compliant
Max Maturity (Years) 5 3 Compliant

LOCAL AGENCY INVESTMENT FUND (LAIF)
Max Permitted by LAIF (MV) 150.0 0.0 Compliant

MONEY MARKET MUTUAL FUNDS
Max % (MV) 20.0 0.8 Compliant
Max % Issuer (MV) 20.0 0.8 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant

MORTGAGE -BACKED SECURITIES (NON-AGENCY)
Max % (MV) 20.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 10.0 1.0 Compliant
Max % Issuer (MV) 5.0 1.0 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 10.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant

NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
17

Page 20 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 119 of 1094

STATEMENT OF COMPLIANCE
City of Indio | Account #10043 | As of June 30, 2025
Rules Name Limit Actual Compliance
Status Notes
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5 0.0 Compliant
Min Rating (A-1 by 1 or A- by 1 if > FDIC Limit) 0.0 0.0 Compliant

REPURCHASE AGREEMENTS
Max Maturity (Years) 1.0 0.0 Compliant

SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 4.5 Compliant
Max % Issuer (MV) 10.0 2.8 Compliant
Max Maturity (Years) 5 4 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 40.4 Compliant
Max Maturity (Years) 5 4 Compliant
18

Page 21 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 120 of 1094

PORTFOLIO CHARACTERISTICS
City of Indio | Account #10043 | As of June 30, 2025
Benchmark* 6/30/2025
Portfolio
3/31/2025
Portfolio
Average Maturity (yrs) 2.65 2.96 2.97
Average Modified Duration 2.48 2.54 2.57
Average Purchase Yield 3.79% 3.67%
Average Market Yield 3.78% 4.01% 4.19%
Average Quality** AA+ AA+ AA+
Total Market Value 116,964,072 115,184,026
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 19

Page 22 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 121 of 1094

SECTOR DISTRIBUTION
City of Indio | Account #10043 | As of June 30, 2025
Sector as a Percentage of Market Value
Sector 06/30/2025 03/31/2025
US Treasury 40.43% 37.25%
Corporate 26.46% 27.54%
Agency CMBS 11.21% 11.87%
ABS 8.94% 8.76%
Agency 6.61% 8.56%
Supras 4.51% 4.53%
Muni Bonds 1.02% 1.02%
Money Mkt Fd 0.81% 0.45%
20

Page 23 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 122 of 1094

ISSUERS
City of Indio | Account #10043 | As of June 30, 2025
Issuer Investment Type % Portfolio
Government of The United States US Treasury 40.43%
FHLMC Agency CMBS 11.21%
International Bank for Recon and Dev Supras 2.76%
Federal Home Loan Banks Agency 2.76%
Toyota Motor Corporation Corporate 1.80%
Inter-American Development Bank Supras 1.75%
Metropolitan Life Global Funding I Corporate 1.66%
Guardian Life Global Funding Corporate 1.54%
Deere & Company Corporate 1.41%
New York Life Insurance Company Corporate 1.37%
Massachusetts Mutual Life Insurance Corporate 1.36%
Caterpillar Inc. Corporate 1.31%
Honda Auto Receivables Owner Trust ABS 1.26%
Prologis, Inc. Corporate 1.15%
Tennessee Valley Authority Agency 1.12%
State of California Muni Bonds 1.02%
Chase Issuance Trust ABS 1.01%
Chubb Limited Corporate 0.97%
Federal Home Loan Mortgage Corp Agency 0.94%
FNMA Agency 0.93%
GM Financial Securitized Term ABS 0.89%
National Rural Utilities Cooperative Corporate 0.88%
The Home Depot, Inc. Corporate 0.88%
John Deere Owner Trust ABS 0.88%
PepsiCo, Inc. Corporate 0.87%
The Toronto-Dominion Bank Corporate 0.87%
Bank of America Credit Card Trust ABS 0.87%
Marsh & McLennan Companies, Inc. Corporate 0.87%
Farm Credit System Agency 0.86%
Public Service Enterprise Group Inco Corporate 0.85%
21

Page 24 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 123 of 1094

ISSUERS
City of Indio | Account #10043 | As of June 30, 2025
Issuer Investment Type % Portfolio
Honda Motor Co., Ltd. Corporate 0.83%
American Express Credit Master Trust ABS 0.82%
Federated Hermes, Inc. Money Mkt Fd 0.81%
PACCAR Inc Corporate 0.78%
Amazon.com, Inc. Corporate 0.75%
Berkshire Hathaway Inc. Corporate 0.71%
Hyundai Auto Lease Securitization Tr ABS 0.69%
Royal Bank of Canada Corporate 0.66%
Morgan Stanley Corporate 0.66%
Hyundai Auto Receivables Trust ABS 0.63%
Apple Inc. Corporate 0.59%
Mastercard Incorporated Corporate 0.59%
Walmart Inc. Corporate 0.54%
WF Card Issuance Trust ABS 0.53%
Cisco Systems, Inc. Corporate 0.52%
BMW Vehicle Owner Trust ABS 0.45%
Florida Power & Light Corporate 0.45%
Northwestern Mutual Global Funding Corporate 0.44%
Bank of Montreal Corporate 0.42%
The Charles Schwab Corporation Corporate 0.41%
Target Corporation Corporate 0.35%
GM Financial Automobile Leasing Trus ABS 0.34%
Toyota Auto Receivables Owner Trust ABS 0.33%
Mercedes-Benz Auto Lease Trust ABS 0.25%
Cash Cash 0.00%
TOTAL 100.00%
22

Page 25 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 124 of 1094 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 2.8% 5.7% 5.1% 15.8% 31.3% 33.1% 6.1% 0.0% 0.0% ICE BofA 1-5 Year Unsubordinated US Treasury &
Agency Index 0.0% 0.1% 2.6% 34.9% 27.8% 23.4% 11.1% 0.0% 0.0%

DURATION DISTRIBUTION
City of Indio | Account #10043 | As of June 30, 2025
Portfolio Compared to the Benchmark
23

Page 26 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 125 of 1094

QUALITY DISTRIBUTION
City of Indio | Account #10043 | As of June 30, 2025
Rating 06/30/2025 03/31/2025
AAA 14.2% 13.9%
AA 66.2% 65.7%
A 16.2% 17.2%
NA 3.3% 3.2%
Rating 06/30/2025 03/31/2025
AAA 11.49% 69.51%
AA 66.62% 7.90%
A 17.34% 18.29%
NA 4.55% 4.29%
Rating 06/30/2025 03/31/2025
AAA 17.01% 15.72%
AA 58.10% 58.67%
A 10.30% 10.78%
NA 14.59% 14.82%
S&P Rating Moody’s Rating Fitch Rating
24

Page 27 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 126 of 1094 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception

TOTAL RATE OF RETURN
City of Indio 1.54% 6.46% 5.59% 3.77% 1.32% 1.80% 1.59% Benchmark 1.36% 6.06% 5.11% 3.24% 0.92% 1.51% 1.38%
*Periods over 1 year are annualized.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

INVESTMENT PERFORMANCE
City of Indio | Account #10043 | As of June 30, 2025
Total Rate of Return : Inception | 05/01/2009
25

Page 28 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 127 of 1094

PORTFOLIO CHARACTERISTICS
City of Indio LAIF | Account #10067 | As of June 30, 2025 6/30/2025
Portfolio
3/31/2025
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 4.27% 4.31%
Average Market Yield 4.23% 4.27%
Average Quality** AAA AAA
Total Market Value 104,877,833 85,991,021
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 26

Page 29 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 128 of 1094

SECTOR DISTRIBUTION
City of Indio LAIF | Account #10067 | As of June 30, 2025 Sector as a Percentage of Market Value
Sector 06/30/2025 03/31/2025
LAIF 99.17% 99.05%
Cash 0.83% 0.95%
27

Page 30 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 129 of 1094

BOND PROCEEDS
28

Page 31 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 130 of 1094

PORTFOLIO CHARACTERISTICS
City of Indio - 2022 Lease Revenue Bonds - City Hall and Public Safety Financing | Account #10975 | As of June 30, 2025 6/30/2025
Portfolio
3/31/2025
Portfolio
Average Maturity (yrs) 0.00 0.00
Average Modified Duration 0.00 0.00
Average Purchase Yield 3.96% 3.97%
Average Market Yield 3.95% 3.96%
Average Quality** AAA AAA
Total Market Value 30,722,190 30,423,508
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 29

Page 32 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 131 of 1094

SECTOR DISTRIBUTION
City of Indio - 2022 Lease Revenue Bonds - City Hall and Public Safety Financing | Account #10975 | As of June 30, 2025 Sector as a Percentage of Market Value
Sector 06/30/2025 03/31/2025
Money Mkt Fd 99.68% 99.67%
Cash 0.32% 0.33%
30

Page 33 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 132 of 1094

PORTFOLIO CHARACTERISTICS
City of Indio - Capitalized Interest Fund | Account #10977 | As of June 30, 2025 6/30/2025
Portfolio
3/31/2025
Portfolio
Average Maturity (yrs) 0.11 0.12
Average Modified Duration 0.11 0.12
Average Purchase Yield 3.71% 3.42%
Average Market Yield 4.06% 4.22%
Average Quality** AAA AAA
Total Market Value 737,653 2,238,827
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 31

Page 34 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 133 of 1094

SECTOR DISTRIBUTION
City of Indio - Capitalized Interest Fund | Account #10977 | As of June 30, 2025 Sector as a Percentage of Market Value
Sector 06/30/2025 03/31/2025
Money Mkt Fd 65.98% 21.17%
US Treasury 33.80% 78.76%
Cash 0.21% 0.07%
32

Page 35 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 134 of 1094

PORTFOLIO CHARACTERISTICS
City of Indio - Cons Bond Proceeds | Account #10978 | As of June 30, 2025 6/30/2025
Portfolio
3/31/2025
Portfolio
Average Maturity (yrs) 0.00 0.01
Average Modified Duration 0.00 0.01
Average Purchase Yield 3.95% 3.93%
Average Market Yield 3.95% 3.97%
Average Quality** AAA AAA
Total Market Value 31,459,843 32,662,335
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 33

Page 36 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 135 of 1094

SECTOR DISTRIBUTION
City of Indio - Cons Bond Proceeds | Account #10978 | As of June 30, 2025 Sector as a Percentage of Market Value
Sector 06/30/2025 03/31/2025
Money Mkt Fd 98.89% 94.33%
US Treasury 0.79% 5.35%
Cash 0.32% 0.32%
34

Page 37 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 136 of 1094

CONSOLIDATED INFORMATION
35

Page 38 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 137 of 1094

PORTFOLIO CHARACTERISTICS
City of Indio Cons | Account #10068 | As of June 30, 2025 6/30/2025
Portfolio
3/31/2025
Portfolio
Average Maturity (yrs) 1.56 1.69
Average Modified Duration 1.34 1.47
Average Purchase Yield 4.02% 3.94%
Average Market Yield 4.11% 4.22%
Average Quality** AA+ AA+
Total Market Value 221,841,905 201,175,047
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 36

Page 39 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 138 of 1094

SECTOR DISTRIBUTION
City of Indio Cons | Account #10068 | As of June 30, 2025 Sector as a Percentage of Market Value
Sector 06/30/2025 03/31/2025
LAIF 47.06% 42.48%
US Treasury 21.24% 21.27%
Corporate 13.90% 15.73%
Agency CMBS 5.89% 6.78%
ABS 4.70% 5.00%
Agency 3.48% 4.89%
Supras 2.37% 2.59%
Muni Bonds 0.53% 0.58%
Money Mkt Fd 0.43% 0.26%
Cash 0.40% 0.41%
37

Page 40 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 139 of 1094

PORTFOLIO HOLDINGS
38

Page 41 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 140 of 1094

HOLDINGS REPORT
City of Indio | Account #10043 | As of June 30, 2025
Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
43815BAC4 HAROT 2022-1 A3 1.88
05/15/2026 23,551.30 02/15/2022

1.88%
23,547.75
23,547.75

99.80 4.77%
23,503.60

19.68 0.02%
(44.16)
Aaa/AAA
NA

0.87 0.07
05602RAD3 BMWOT 2022-A A3 3.21
08/25/2026 24,871.96 05/10/2022

3.21%
24,870.66
24,870.66

99.82 4.56%
24,827.05

13.31 0.02%
(43.62)
Aaa/AAA
NA

1.15 0.14
47787JAC2 JDOT 2022 A3 2.32 09/15/2026 30,544.56 03/10/2022

2.33%
30,537.81
30,537.81

99.72 4.16%
30,457.69

31.49 0.03%
(80.12)
Aaa/NA
AAA

1.21 0.15
89238FAD5 TAOT 2022-B A3 2.93 09/15/2026 30,083.57 04/07/2022

2.93%
30,082.87
30,082.87

99.75 4.58%
30,008.42

39.18 0.03%
(74.44)
Aaa/AAA
NA

1.21 0.15
362554AC1 GMCAR 2021-4 A3 0.68
09/16/2026 390.66 10/13/2021

0.68%
390.65
390.65

99.84 4.51%
390.05

0.11 0.00%
(0.61)
Aaa/AAA
NA

1.21 0.04
448977AD0 HART 2022-A A3 2.22 10/15/2026 34,255.63 03/09/2022

2.22%
34,254.31
34,254.31

99.83 4.49%
34,198.50

33.80 0.03%
(55.82)
NA/AAA
AAA

1.29 0.07
380146AC4 GMCAR 2022-1 A3 1.26
11/16/2026 4,772.39 01/11/2022

1.26%
4,771.98
4,771.98

99.86 4.72%
4,765.63

2.51 0.00%
(6.35)
NA/AAA
AAA

1.38 0.04
362585AC5 GMCAR 2022-2 A3 3.1
02/16/2027 46,399.99 04/05/2022

3.10%
46,390.30
46,390.30

99.65 4.83%
46,239.74

59.93 0.04%
(150.56)
Aaa/AAA
NA

1.63 0.20
47800AAC4 JDOT 2022-B A3 3.74 02/16/2027 102,847.93 07/12/2022

3.74%
102,838.11
102,838.11

99.68 4.66%
102,515.00
170.96

0.09%
(323.11)
Aaa/NA
AAA

1.63 0.36
44934FAD7 HALST 2024-B A3 5.41 05/17/2027 425,000.00 05/14/2024

5.41%
424,988.19
424,988.19
100.79

4.55%
428,375.10
1,021.89

0.37%
3,386.91
NA/AAA
AAA

1.88 0.86
47800BAC2 JDOT 2022-C A3 5.09 06/15/2027 330,919.00 10/12/2022

5.09%
330,893.32
330,893.32
100.27

4.59%
331,806.89
748.61

0.29%
913.57
Aaa/NA
AAA

1.96 0.48
36269WAD1 GMALT 2024-2 A3 5.39
07/20/2027 395,000.00 05/07/2024

5.39%
394,977.05
394,977.05
100.80

4.38%
398,151.31
650.54

0.34%
3,174.26
NA/AAA
AAA

2.05 0.74
58770JAD6 MBALT 2024-A A3 5.32
01/18/2028 285,000.00 05/17/2024

5.32%
284,966.66
284,966.66
101.22

4.38%
288,480.76
673.87

0.25%
3,514.10
Aaa/NA
AAA

2.55 1.22
44935DAD1 HALST 2025-B A3 4.53 04/17/2028 365,000.00 04/24/2025

4.53%
364,967.04
364,967.04
100.69

4.19%
367,510.36
734.87

0.32%
2,543.32
NA/AAA
AAA

2.80 1.78
362962AD4 GMALT 2025-2 A3 4.58
05/22/2028 530,000.00 05/20/2025

4.58%
529,991.20
529,991.20
100.64

4.23%
533,384.74
741.71

0.46%
3,393.54
NA/AAA
AAA

2.90 1.62
161571HT4 CHAIT 2023-1 A 5.16 09/15/2028 1,155,000.00 09/07/2023

5.23%
1,154,679.83
1,154,679.83
101.16

4.21%
1,168,348.22
2,648.80

1.01%
13,668.39
NA/AAA
AAA

3.21 1.14
39

Page 42 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 141 of 1094

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
437930AC4 HAROT 2024-2 A3 5.27
11/20/2028 375,000.00 05/14/2024

5.27%
374,954.44
374,954.44
101.20

4.30%
379,482.23
713.65

0.33%
4,527.79
NA/AAA
AAA

3.39 1.16
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 490,000.00 06/04/2024

5.18%
489,925.57
489,925.57
101.26

4.11%
496,177.92
423.03

0.43%
6,252.35
Aaa/AAA
NA

3.66 1.12
43813YAC6 HAROT 2024-3 A3 4.57
03/21/2029 690,000.00 08/09/2024

4.57%
689,891.60
689,891.60
100.54

4.21%
693,755.46
875.92

0.60%
3,863.86
Aaa/NA
AAA

3.72 1.35
05522RDJ4 BACCT 2024-1 A 4.93 05/15/2029 1,000,000.00 --

4.92%
1,000,351.29
1,000,351.29
101.48

4.14%
1,014,813.10
2,191.11

0.87%
14,461.81
Aaa/AAA
NA

3.87 1.75
47800DAD6 JDOT 2025 A3 4.23 09/17/2029 550,000.00 03/04/2025

4.23%
549,965.41
549,965.41
100.25

4.16%
551,358.28
1,034.00

0.47%
1,392.87
Aaa/NA
AAA

4.22 2.18
92970QAE5 WFCIT 2024-2 A 4.29 10/15/2029 615,000.00 10/17/2024

4.29%
614,908.61
614,908.61
100.47

4.11%
617,891.12
1,172.60

0.53%
2,982.51
Aaa/AAA
NA

4.29 2.14
44935CAD3 HART 2025-A A3 4.32 10/15/2029 695,000.00 03/04/2025

4.32%
694,897.49
694,897.49
100.39

4.16%
697,684.51
1,334.40

0.60%
2,787.02
NA/AAA
AAA

4.29 1.98
437921AD1 HAROT 252 A3 4.15 10/15/2029 360,000.00 04/29/2025

4.15%
359,959.79
359,959.79
100.20

4.09%
360,713.95
664.00

0.31%
754.16
Aaa/NA
AAA

4.29 2.14
89231HAD8 TAOT 2025-B A3 4.34 11/15/2029 350,000.00 04/24/2025

4.34%
349,979.95
349,979.95
100.62

4.08%
352,153.48
675.11

0.30%
2,173.53
NA/AAA
AAA

4.38 2.02
362955AD8 GMCAR 2025-1 A3 4.62
12/17/2029 450,000.00 01/09/2025

4.62%
449,966.57
449,966.57
100.90

4.09%
454,031.10
866.25

0.39%
4,064.53
Aaa/NA
AAA

4.47 1.55
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 945,000.00 05/06/2025

4.28%
944,982.90
944,982.90
100.61

4.08%
950,780.28
1,797.60

0.82%
5,797.38
NA/AAA
AAA

4.79 2.58
Total ABS 10,303,636.99 4.69%
10,302,931.35
10,302,931.35
100.76

4.21%
10,381,804.46
19,338.91

8.94%
78,873.12

3.57 1.57
AGENCY
3137EAEX3 FEDERAL HOME LOAN MORTGAGE
CORP 0.375 09/23/2025 1,100,000.00 --

0.43%
1,096,878.25
1,096,878.25

99.09 4.41%
1,089,977.44
1,122.92

0.94%
(6,900.81)
Aa1/AA+
AA+

0.23 0.23
3135G06G3 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 0.5 11/07/2025 1,100,000.00 --

0.55%
1,097,242.00
1,097,242.00

98.68 4.32%
1,085,481.62
825.00

0.93%
(11,760.38)
Aa1/AA+
AA+

0.36 0.34
880591EZ1 TENNESSEE VALLEY AUTHORITY

3.875 03/15/2028 1,300,000.00 05/01/2023

3.81%
1,303,913.00
1,303,913.00
100.30

3.76%
1,303,918.24
14,832.64

1.12%

5.24 Aa1/AA+
AA+

2.71 2.52
40

Page 43 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 142 of 1094

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3133EPME2 FEDERAL FARM CREDIT BANKS
FUNDING CORP 3.875 06/08/2028 1,000,000.00 06/07/2023

3.96%
996,040.00
996,040.00
100.19

3.81%
1,001,895.89
2,475.69

0.86%
5,855.89
Aa1/AA+
AA+

2.94 2.75
3130AWN63 FEDERAL HOME LOAN BANKS 4.0
06/30/2028 1,200,000.00 08/21/2023

4.53%
1,172,544.00
1,172,544.00
100.89

3.68%
1,210,699.56
133.33

1.04%
38,155.56
Aa1/AA+
AA+

3.00 2.80
3130AWTR1 FEDERAL HOME LOAN BANKS

4.375 09/08/2028 1,950,000.00 09/12/2023

4.49%
1,940,122.50
1,940,122.50
101.97

3.71%
1,988,335.97
26,778.65

1.71%
48,213.47
Aa1/AA+
AA+

3.19 2.92
7,606,739.75 100.41 7,680,308.71 6.61% 2.23
Total Agency 7,650,000.00 3.18% 7,606,739.75 3.91% 46,168.23 73,568.96 2.06

AGENCY CMBS
3137BMTX4 FHMS K-052 A2 3.151 11/25/2025 935,269.55 11/16/2021

1.36%
998,692.52
998,692.52

99.42 4.40%
929,840.22
2,455.86

0.80%
(68,852.30)
Aa1/AA+
AAA

0.41 0.30
3137BVZ82 FHMS K-063 A2 3.43 01/25/2027 842,000.00 04/14/2022

2.96%
857,721.72
857,721.72

98.81 4.16%
831,993.34
2,406.72

0.72%
(25,728.38)
Aa1/AA+
AAA

1.57 1.36
3137FAWS3 FHMS K-067 A2 3.194 07/25/2027 1,500,000.00 --

3.46%
1,478,710.94
1,478,710.94

98.22 4.04%
1,473,367.65
3,992.50

1.27%
(5,343.29)
Aaa/AA+
AA+

2.07 1.91
3137FBU79 FHMS K-069 A2 3.187 09/25/2027 1,437,701.10 04/13/2023

4.02%
1,386,033.72
1,386,033.72

98.15 4.01%
1,411,090.84
3,818.29

1.22%
25,057.12
Aa1/AAA
AA+

2.24 2.06
3137F4D41 FHMS K-074 A2 3.6 01/25/2028 1,000,000.00 04/10/2023

4.44%
981,445.31
981,445.31

98.87 4.01%
988,661.60
3,000.00

0.85%
7,216.29
Aa1/AA+
AAA

2.57 2.34
3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 3,100,000.00 --

5.15%
2,937,750.01
2,937,750.01

99.55 4.00%
3,085,914.53
10,075.00

2.66%
148,164.52
Aa1/AA+
AAA

3.15 2.89
3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 750,000.00 11/28/2023

4.75%
723,398.44
723,398.44

99.65 3.98%
747,396.83
2,450.00

0.64%
23,998.39
Aa1/AA+
AAA

3.24 2.92
3137H5YC5 FHMS K-748 A2 2.26 01/25/2029 1,000,000.00 04/11/2024

4.85%
888,476.56
888,476.56

94.13 4.06%
941,284.70
1,883.33

0.81%
52,808.14
Aa1/AA+
AAA

3.57 3.28
3137FLMV3 FHMS K-090 A2 3.422 02/25/2029 1,500,000.00 05/30/2024

4.87%
1,405,195.31
1,405,195.31

97.84 4.04%
1,467,575.40
4,277.50

1.26%
62,380.09
Aa1/AAA
AA+

3.66 3.32
3137FRUT6 FHMS K-106 A2 2.069 01/25/2030 1,250,000.00 06/06/2025

4.31%
1,131,298.83
1,131,298.83

91.55 4.12%
1,144,386.13
2,155.21

0.99%
13,087.30
Aa1/AA+
AAA

4.57 4.24
12,788,723.35 97.86 13,021,511.22 11.21% 2.81
Total Agency CMBS 13,314,970.65 4.22% 12,788,723.35 4.06% 36,514.41 232,787.87 2.56 41

Page 44 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 143 of 1094

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 1,729.54 -- 1,729.54
1,729.54

1.00 0.00%
1,729.54

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 1,729.54
1,729.54
1,729.54

1.00 0.00%
1,729.54

0.00 0.00%

0.00 0.00

0.00 CORPORATE
023135BX3 AMAZON.COM INC 1.0
05/12/2026 900,000.00 05/10/2021

1.09%
896,112.00
896,112.00

97.38 4.11%
876,441.82
1,225.00

0.75%
(19,670.18)
A1/AA
AA-

0.87 0.84
89236TJK2 TOYOTA MOTOR CREDIT CORP

1.125 06/18/2026 615,000.00 06/15/2021

1.13%
614,729.40
614,729.40

97.05 4.28%
596,879.46
249.84

0.51%
(17,849.94)
A1/A+
A+

0.97 0.94
037833DN7 APPLE INC 2.05 09/11/2026 700,000.00 12/02/2021

1.49%
717,388.00
717,388.00

97.71 4.03%
683,949.10
4,384.72

0.59%
(33,438.90)
Aaa/AA+
NA

1.20 1.16
06368FAC3 BANK OF MONTREAL 1.25
09/15/2026 500,000.00 09/10/2021

1.29%
498,915.00
498,915.00

96.49 4.27%
482,436.82
1,840.28

0.42%
(16,478.18)
A2/A-
AA-

1.21 1.17
931142ER0 WALMART INC 1.05 09/17/2026 645,000.00 --

1.03%
645,650.95
645,650.95

96.64 3.91%
623,358.24
1,956.50

0.54%
(22,292.71)
Aa2/AA
AA

1.22 1.18
87612EBM7 TARGET CORP 1.95 01/15/2027 415,000.00 01/19/2022

1.99%
414,294.50
414,294.50

96.86 4.08%
401,966.95
3,731.54

0.35%
(12,327.55)
A2/A
A

1.54 1.48
808513BY0 CHARLES SCHWAB CORP 2.45
03/03/2027 495,000.00 03/01/2022

2.46%
494,858.10
494,858.10

97.18 4.21%
481,052.69
3,975.13

0.41%
(13,805.41)
A2/A-
A

1.67 1.60
084664CZ2 BERKSHIRE HATHAWAY FINANCE
CORP 2.3 03/15/2027 840,000.00 03/07/2022

2.30%
839,840.40
839,840.40

97.49 3.83%
818,921.52
5,688.67

0.71%
(20,918.88)
Aa2/AA
A+

1.71 1.64
40139LBF9 GUARDIAN LIFE GLOBAL FUNDING

3.246 03/29/2027 465,000.00 --

3.57%
460,790.70
460,790.70

98.44 4.18%
457,758.74
3,857.33

0.39%
(3,031.96)
Aa1/AA+
NA

1.74 1.66
89115A2C5 TORONTO-DOMINION BANK 4.108
06/08/2027 500,000.00 08/25/2022

4.21%
497,850.00
497,850.00

99.72 4.26%
498,577.08
1,312.28

0.43%
727.08
A2/A-
NA

1.94 1.84
59217GFB0 METROPOLITAN LIFE GLOBAL
FUNDING I 4.4 06/30/2027 1,000,000.00 --

4.30%
1,004,502.80
1,004,502.80
100.62

4.07%
1,006,218.58
122.22

0.87%
1,715.78
Aa3/AA-
AA-

2.00 1.90
14913R3A3 CATERPILLAR FINANCIAL SERVICES
CORP 3.6 08/12/2027 500,000.00 08/24/2022

3.87%
493,975.00
493,975.00

99.01 4.09%
495,058.82
6,950.00

0.43%
1,083.82
A2/A
A+

2.12 1.99
40139LBG7 GUARDIAN LIFE GLOBAL FUNDING

5.55 10/28/2027 510,000.00 10/25/2022

5.56%
509,847.00
509,847.00
102.98

4.19%
525,178.71
4,953.38

0.45%
15,331.71
Aa1/AA+
NA

2.33 2.15
42

Page 45 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 144 of 1094

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
24422EWR6 JOHN DEERE CAPITAL CORP 4.75
01/20/2028 600,000.00 01/23/2023

4.40%
609,234.00
609,234.00
101.58

4.09%
609,488.29
12,745.83

0.52%
254.29
A1/A
A+

2.56 2.34
57636QAW4 MASTERCARD INC 4.875
03/09/2028 665,000.00 03/06/2023

4.90%
664,354.95
664,354.95
102.26

3.98%
680,026.35
10,085.83

0.59%
15,671.40
Aa3/A+
NA

2.69 2.40
64952WFD0 NEW YORK LIFE GLOBAL FUNDING

4.9 06/13/2028 1,000,000.00 09/21/2023

5.48%
976,220.00
976,220.00
102.05

4.15%
1,020,547.76
2,450.00

0.88%
44,327.76
Aa1/AA+
AAA

2.96 2.72
74340XCG4 PROLOGIS LP 4.875 06/15/2028 1,305,000.00 --

5.17%
1,288,811.25
1,288,811.25
102.01

4.14%
1,331,261.59
2,827.50

1.15%
42,450.34
A2/A
NA

2.96 2.66
89115A2U5 TORONTO-DOMINION BANK 5.523
07/17/2028 500,000.00 12/14/2023

4.76%
515,535.00
515,535.00
103.44

4.31%
517,188.36
12,580.17

0.45%
1,653.36
A2/A-
AA-

3.05 2.72
78016HZS2 ROYAL BANK OF CANADA 5.2
08/01/2028 750,000.00 12/14/2023

4.68%
765,892.50
765,892.50
102.87

4.20%
771,533.46
16,250.00

0.66%
5,640.96
A1/A
AA-

3.09 2.77
69371RS64 PACCAR FINANCIAL CORP 4.95
08/10/2028 885,000.00 08/03/2023

4.99%
883,601.70
883,601.70
102.46

4.10%
906,781.10
17,157.94

0.78%
23,179.40
A1/A+
NA

3.11 2.81
74456QBX3 PUBLIC SERVICE ELECTRIC AND
GAS CO 3.65 09/01/2028 1,000,000.00 12/07/2023

4.77%
953,250.00
953,250.00

98.46 4.17%
984,560.30
12,166.67

0.85%
31,310.30
A1/A
NA

3.17 2.92
89236TLL7 TOYOTA MOTOR CREDIT CORP

4.65 01/05/2029 500,000.00 01/03/2024

4.61%
500,905.00
500,905.00
101.19

4.28%
505,927.44
11,366.67

0.44%
5,022.44
A1/A+
A+

3.52 3.14
66815L2Q1

NORTHWESTERN MUTUAL
GLOBAL FUNDING 4.71
01/10/2029
500,000.00 --

4.67%
500,919.44
500,919.44
101.09

4.37%
505,444.08
11,186.25

0.44%
4,524.64
Aa1/AA+
AAA

3.53 3.15
57629W5B2 MASSMUTUAL GLOBAL FUNDING
II 4.85 01/17/2029 680,000.00 01/09/2024

4.85%
679,911.60
679,911.60
101.60

4.36%
690,906.08
15,024.22

0.60%
10,994.48
Aa3/AA+
AA+

3.55 3.16
17275RBR2 CISCO SYSTEMS INC 4.85
02/26/2029 585,000.00 02/21/2024

4.86%
584,795.25
584,795.25
102.48

4.11%
599,493.12
9,851.56

0.52%
14,697.87
A1/AA-
NA

3.66 3.21
14913UAJ9 CATERPILLAR FINANCIAL SERVICES
CORP 4.85 02/27/2029 1,000,000.00 03/18/2024

4.84%
1,000,490.00
1,000,490.00
102.30

4.16%
1,023,047.94
16,705.56

0.88%
22,557.94
A2/A
A+

3.66 3.28
64952WFG3 NEW YORK LIFE GLOBAL FUNDING

5.0 06/06/2029 560,000.00 06/03/2024

5.04%
558,924.80
558,924.80
102.29

4.36%
572,813.34
1,944.44

0.49%
13,888.54
Aa1/AA+
AAA

3.93 3.53
24422EXT1 JOHN DEERE CAPITAL CORP 4.85
06/11/2029 1,000,000.00 06/07/2024

5.04%
991,780.00
991,780.00
102.46

4.17%
1,024,584.87
2,694.44

0.88%
32,804.87
A1/A
A+

3.95 3.56
341081GT8 FLORIDA POWER & LIGHT CO 5.15
06/15/2029 500,000.00 06/13/2024

4.82%
506,932.49
506,932.49
103.48

4.19%
517,399.29
1,144.44

0.45%
10,466.80
Aa2/A+
AA-

3.96 3.42
43

Page 46 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 145 of 1094

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
437076DC3 HOME DEPOT INC 4.75
06/25/2029 1,000,000.00 07/30/2024

4.57%
1,007,690.00
1,007,690.00
102.07

4.18%
1,020,732.62
791.67

0.88%
13,042.62
A2/A
A

3.99 3.53
713448FX1 PEPSICO INC 4.5 07/17/2029 1,000,000.00 07/15/2024

4.53%
998,450.00
998,450.00
101.59

4.07%
1,015,941.56
20,500.00

0.87%
17,491.56
A1/A+
NA

4.05 3.53
171239AL0 CHUBB INA HOLDINGS LLC 4.65
08/15/2029 1,105,000.00 08/15/2024

4.51%
1,111,828.90
1,111,828.90
101.70

4.19%
1,123,833.14
19,411.17

0.97%
12,004.24
A2/A
A

4.13 3.59
40139LBJ1 GUARDIAN LIFE GLOBAL FUNDING

4.179 09/26/2029 805,000.00 09/23/2024

4.18%
805,000.00
805,000.00

99.55 4.29%
801,395.96
8,877.47

0.69%
(3,604.04)
Aa1/AA+
NA

4.24 3.80
59217GFT1 METROPOLITAN LIFE GLOBAL
FUNDING I 4.9 01/09/2030 900,000.00 01/02/2025

4.95%
898,146.00
898,146.00
102.02

4.40%
918,143.38
21,070.00

0.79%
19,997.38
Aa3/AA-
AA-

4.53 3.94
89236TNA9 TOYOTA MOTOR CREDIT CORP

4.95 01/09/2030 965,000.00 01/06/2025

5.00%
962,934.90
962,934.90
102.26

4.39%
986,833.17
22,822.25

0.85%
23,898.27
A1/A+
A+

4.53 3.93
57629TBV8 MASSMUTUAL GLOBAL FUNDING
II 4.95 01/10/2030 870,000.00 01/03/2025

4.96%
869,582.40
869,582.40
102.11

4.43%
888,349.56
20,455.88

0.77%
18,767.16
Aa3/AA+
AA+

4.53 3.94
61747YFK6 MORGAN STANLEY 5.173
01/16/2030 750,000.00 01/13/2025

5.39%
744,187.50
744,187.50
102.09

4.80%
765,711.65
17,782.19

0.66%
21,524.15
A1/A-
A+

4.55 3.14
63743HFX5

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.95
02/07/2030
1,000,000.00 02/05/2025

4.88%
1,002,873.61
1,002,873.61
102.28

4.40%
1,022,838.47
19,800.00

0.88%
19,964.86
A2/NA
A

4.61 3.94
02665WFY2 AMERICAN HONDA FINANCE
CORP 4.8 03/05/2030 955,000.00 03/03/2025

4.82%
954,159.60
954,159.60
100.79

4.61%
962,572.24
14,770.67

0.83%
8,412.64
A3/A-
NA

4.68 4.09
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 1,000,000.00 03/11/2025

4.69%
998,100.00
998,100.00
101.13

4.38%
1,011,278.05
13,691.67

0.87%
13,178.05
A3/A-
A-

4.71 4.07
Total Corporate 30,465,000.00 4.26%
30,423,264.74
30,423,264.74
100.90

4.22%
30,726,431.67
376,401.36

26.46%
303,166.93

3.23 2.86

MONEY MARKET
FUND
60934N104 FEDERATED HRMS GV O INST 944,602.78 --

4.21%
944,602.78
944,602.78

1.00 4.21%
944,602.78

0.00 0.81%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 944,602.78 4.21%
944,602.78
944,602.78

1.00 4.21%
944,602.78

0.00 0.81%

0.00 0.00

0.00 44

Page 47 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 146 of 1094

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration

MUNICIPAL BONDS
13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 1,160,000.00 10/30/2024

4.38%
1,166,113.20
1,166,113.20
101.77

4.02%
1,180,584.20
21,750.00

1.02%
14,471.00
Aa2/AA-
AA

4.09 3.64
Total Municipal
Bonds 1,160,000.00 4.38%
1,166,113.20
1,166,113.20
101.77

4.02%
1,180,584.20
21,750.00

1.02%
14,471.00

4.09 3.64

SUPRANATIONAL
459058JL8

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 0.5 10/28/2025
2,080,000.00 --

0.64%
2,067,555.77
2,067,555.77

98.74 4.43%
2,053,788.28
1,820.00

1.77%
(13,767.49)
Aaa/AAA
NA

0.33 0.32
4581X0DV7 INTER-AMERICAN DEVELOPMENT
BANK 0.875 04/20/2026 2,080,000.00 --

0.88%
2,078,743.40
2,078,743.40

97.47 4.11%
2,027,317.95
3,589.44

1.75%
(51,425.45)
Aaa/AAA
NA

0.80 0.78
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
1,150,000.00 12/12/2024

4.25%
1,131,278.00
1,131,278.00
100.24

3.81%
1,152,703.17
9,283.85

0.99%
21,425.17
Aaa/AAA
NA

4.30 3.89
Total Supranational 5,310,000.00 1.53%
5,277,577.17
5,277,577.17

98.58 4.17%
5,233,809.39
14,693.30

4.51%
(43,767.78)

1.39 1.29

US TREASURY
91282CAM3 UNITED STATES TREASURY 0.25
09/30/2025 1,100,000.00 02/05/2021

0.42%
1,091,621.09
1,091,621.09

99.00 4.31%
1,089,014.32
691.26

0.94%
(2,606.77)
Aa1/AA+
AA+

0.25 0.25
91282CAT8 UNITED STATES TREASURY 0.25
10/31/2025 1,100,000.00 --

0.40%
1,092,301.76
1,092,301.76

98.67 4.33%
1,085,315.43
463.32

0.93%
(6,986.33)
Aa1/AA+
AA+

0.34 0.33
91282CAZ4 UNITED STATES TREASURY 0.375
11/30/2025 1,050,000.00 03/26/2021

0.77%
1,031,173.83
1,031,173.83

98.39 4.31%
1,033,132.33
333.50

0.89%
1,958.50
Aa1/AA+
AA+

0.42 0.41
91282CBH3 UNITED STATES TREASURY 0.375
01/31/2026 1,000,000.00 02/22/2021

0.59%
989,492.19
989,492.19

97.80 4.24%
977,978.52
1,564.23

0.84%
(11,513.67)
Aa1/AA+
AA+

0.59 0.57
91282CBT7 UNITED STATES TREASURY 0.75
03/31/2026 700,000.00 09/10/2021

0.76%
699,808.59
699,808.59

97.53 4.13%
682,732.42
1,319.67

0.59%
(17,076.17)
Aa1/AA+
AA+

0.75 0.73
91282CCZ2 UNITED STATES TREASURY 0.875
09/30/2026 630,000.00 10/18/2021

1.19%
620,574.61
620,574.61

96.33 3.92%
606,867.19
1,385.66

0.52%
(13,707.42)
Aa1/AA+
AA+

1.25 1.22
91282CDG3 UNITED STATES TREASURY 1.125
10/31/2026 1,500,000.00 11/22/2021

1.27%
1,489,863.28
1,489,863.28

96.43 3.90%
1,446,503.91
2,843.07

1.25%
(43,359.37)
Aa1/AA+
AA+

1.34 1.30
45

Page 48 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 147 of 1094

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CFB2 UNITED STATES TREASURY 2.75
07/31/2027 2,000,000.00 08/24/2022

3.23%
1,956,093.75
1,956,093.75

98.05 3.73%
1,961,015.62
22,941.99

1.69%
4,921.87
Aa1/AA+
AA+

2.08 1.98
91282CFH9 UNITED STATES TREASURY 3.125
08/31/2027 2,300,000.00 --

3.22%
2,290,085.94
2,290,085.94

98.77 3.72%
2,271,699.21
24,023.44

1.96%
(18,386.73)
Aa1/AA+
AA+

2.17 2.05
91282CFZ9 UNITED STATES TREASURY 3.875
11/30/2027 450,000.00 12/05/2022

3.81%
451,406.25
451,406.25
100.38

3.71%
451,722.65
1,476.95

0.39%
316.40
Aa1/AA+
AA+

2.42 2.28
91282CGC9 UNITED STATES TREASURY 3.875
12/31/2027 1,400,000.00 01/25/2023

3.57%
1,419,359.38
1,419,359.38
100.42

3.70%
1,405,906.25
147.42

1.21%
(13,453.13)
Aa1/AA+
AA+

2.50 2.36
91282CGH8 UNITED STATES TREASURY 3.5
01/31/2028 2,200,000.00 02/07/2023

3.81%
2,169,148.44
2,169,148.44

99.49 3.71%
2,188,828.14
32,118.78

1.89%
19,679.70
Aa1/AA+
AA+

2.59 2.41
91282CGP0 UNITED STATES TREASURY 4.0
02/29/2028 3,000,000.00 --

4.03%
2,995,625.00
2,995,625.00
100.76

3.70%
3,022,734.36
40,108.70

2.60%
27,109.36
Aa1/AA+
AA+

2.67 2.48
91282CHA2 UNITED STATES TREASURY 3.5
04/30/2028 1,550,000.00 --

3.59%
1,543,572.26
1,543,572.26

99.46 3.70%
1,541,583.98
9,139.95

1.33%
(1,988.28)
Aa1/AA+
AA+

2.84 2.66
91282CHE4 UNITED STATES TREASURY 3.625
05/31/2028 2,600,000.00 --

4.05%
2,551,578.13
2,551,578.13

99.79 3.70%
2,594,515.61
7,982.92

2.23%
42,937.48
Aa1/AA+
AA+

2.92 2.73
91282CHQ7 UNITED STATES TREASURY 4.125
07/31/2028 950,000.00 08/07/2023

4.15%
948,923.83
948,923.83
101.21

3.71%
961,466.79
16,346.17

0.83%
12,542.96
Aa1/AA+
AA+

3.08 2.83
91282CJF9 UNITED STATES TREASURY 4.875
10/31/2028 550,000.00 10/27/2023

4.79%
552,083.98
552,083.98
103.59

3.72%
569,765.90
4,517.32

0.49%
17,681.92
Aa1/AA+
AA+

3.34 3.04
91282CJN2 UNITED STATES TREASURY 4.375
11/30/2028 600,000.00 12/28/2023

3.83%
614,625.00
614,625.00
102.08

3.72%
612,492.19
2,223.36

0.53%
(2,132.81)
Aa1/AA+
AA+

3.42 3.14
91282CJR3 UNITED STATES TREASURY 3.75
12/31/2028 3,000,000.00 --

4.14%
2,949,052.74
2,949,052.74
100.09

3.72%
3,002,695.32
305.71

2.59%
53,642.58
Aa1/AA+
AA+

3.50 3.25
91282CJW2 UNITED STATES TREASURY 4.0
01/31/2029 3,000,000.00 --

4.30%
2,960,214.84
2,960,214.84
100.90

3.73%
3,027,070.32
50,055.25

2.61%
66,855.48
Aa1/AA+
AA+

3.59 3.26
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 3,000,000.00 04/10/2024

4.57%
2,940,820.31
2,940,820.31
101.35

3.73%
3,040,546.86
31,106.56

2.62%
99,726.55
Aa1/AA+
AA+

3.75 3.42
91282CKP5 UNITED STATES TREASURY 4.625
04/30/2029 2,300,000.00 --

4.47%
2,315,736.33
2,315,736.33
103.13

3.74%
2,371,875.00
17,921.88

2.04%
56,138.67
Aa1/AA+
AA+

3.83 3.47
91282CKX8 UNITED STATES TREASURY 4.25
06/30/2029 1,200,000.00 07/18/2024

4.09%
1,208,484.38
1,208,484.38
101.86

3.74%
1,222,312.50
138.59

1.05%
13,828.12
Aa1/AA+
AA+

4.00 3.65
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 2,250,000.00 09/11/2024

3.45%
2,267,666.02
2,267,666.02

99.50 3.75%
2,238,837.89
27,261.38

1.93%
(28,828.14)
Aa1/AA+
AA+

4.17 3.79
46

Page 49 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 148 of 1094

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 1,200,000.00 10/04/2024

3.76%
1,185,750.00
1,185,750.00

98.99 3.76%
1,187,906.26
10,557.38

1.02%
2,156.26
Aa1/AA+
AA+

4.25 3.88
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 2,300,000.00 12/16/2024

4.25%
2,286,792.97
2,286,792.97
101.47

3.76%
2,333,782.40
8,035.86

2.01%
46,989.43
Aa1/AA+
AA+

4.42 4.00
91282CGS4 UNITED STATES TREASURY 3.625
03/31/2030 1,250,000.00 04/04/2025

3.62%
1,250,048.83
1,250,048.83

99.29 3.79%
1,241,064.45
11,390.03

1.07%
(8,984.38)
Aa1/AA+
AA+

4.75 4.28
91282CMZ1 UNITED STATES TREASURY 3.875
04/30/2030 1,250,000.00 05/20/2025

4.06%
1,239,599.61
1,239,599.61
100.39

3.78%
1,254,882.81
8,160.67

1.08%
15,283.20
Aa1/AA+
AA+

4.83 4.34
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 1,500,000.00 06/03/2025

4.02%
1,498,945.31
1,498,945.31
100.97

3.78%
1,514,532.00
5,081.97

1.30%
15,586.69
Aa1/AA+
AA+

4.92 4.42
Total US Treasury 46,930,000.00 3.50%
46,610,448.65
46,610,448.65
100.04

3.79%
46,938,780.63
339,642.95

40.43%
328,331.98

3.03 2.78
Total Portfolio 116,079,939.96 3.79%
115,122,130.53
115,122,130.53

99.26 4.01%
116,109,562.60
854,509.16
100.00%
987,432.07

2.96 2.54
Total Market Value +
Accrued 116,964,071.76
47

Page 50 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 149 of 1094

HOLDINGS REPORT
City of Indio LAIF | Account #10067 | As of June 30, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 874,638.10 -- 874,638.10
874,638.10

1.00 0.00%
874,638.10

0.00 0.83%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 874,638.10
874,638.10
874,638.10

1.00 0.00%
874,638.10

0.00 0.83%

0.00 0.00

0.00 LAIF
90LAIF$00 Local Agency Investment Fund
State Pool 104,003,194.98 --

4.27%
104,003,194.98
104,003,194.98

1.00 4.27%
104,003,194.98

0.00 99.17%

0.00 NA/NA
NA

0.00 0.00
Total LAIF 104,003,194.98 4.27%
104,003,194.98
104,003,194.98

1.00 4.27%
104,003,194.98

0.00 99.17%

0.00 0.00

0.00 Total Portfolio 104,877,833.08 4.27%
104,877,833.08
104,877,833.08

1.00 4.23%
104,877,833.08

0.00 100.00%

0.00 0.00

0.00 Total Market Value +
Accrued 104,877,833.08
48

Page 51 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 150 of 1094

HOLDINGS REPORT
City of Indio - 2022 Lease Revenue Bonds - City Hall and Public Safety Financing | Account #10975 | As of June 30, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 98,382.57 -- 98,382.57
98,382.57

1.00 0.00%
98,382.57

0.00 0.32%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 98,382.57
98,382.57
98,382.57

1.00 0.00%
98,382.57

0.00 0.32%

0.00 0.00

0.00 MONEY MARKET
FUND
31846V203 FIRST AMER:GVT OBLG Y 30,623,807.78 --

3.96%
30,623,807.78
30,623,807.78

1.00 3.96%
30,623,807.78

0.00 99.68%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 30,623,807.78 3.96%
30,623,807.78
30,623,807.78

1.00 3.96%
30,623,807.78

0.00 99.68%

0.00 0.00

0.00 Total Portfolio 30,722,190.35 3.96%
30,722,190.35
30,722,190.35

1.00 3.95%
30,722,190.35

0.00 100.00%

0.00 0.00

0.00 Total Market Value +
Accrued 30,722,190.35
49

Page 52 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 151 of 1094

HOLDINGS REPORT
City of Indio - Capitalized Interest Fund | Account #10977 | As of June 30, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 1,560.99 -- 1,560.99
1,560.99

1.00 0.00%
1,560.99

0.00 0.21%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 1,560.99
1,560.99
1,560.99

1.00 0.00%
1,560.99

0.00 0.21%

0.00 0.00

0.00 MONEY MARKET
FUND
31846V203 FIRST AMER:GVT OBLG Y 485,892.79 --

3.96%
485,892.79
485,892.79

1.00 3.96%
485,892.79

0.00 65.98%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 485,892.79 3.96%
485,892.79
485,892.79

1.00 3.96%
485,892.79

0.00 65.98%

0.00 0.00

0.00 US TREASURY
9128285J5 UNITED STATES TREASURY 3.0
10/31/2025 250,000.00 08/18/2022

3.23%
248,281.25
248,281.25

99.57 4.28%
248,935.55
1,263.59

33.80%
654.30
Aa1/AA+
AA+

0.34 0.33
Total US Treasury 250,000.00 3.23%
248,281.25
248,281.25

99.57 4.28%
248,935.55
1,263.59

33.80%
654.30

0.34 0.33
Total Portfolio 737,453.78 3.71%
735,735.03
735,735.03

34.32 4.06%
736,389.33
1,263.59
100.00%
654.30

0.11 0.11
Total Market Value +
Accrued 737,652.91
50

Page 53 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 152 of 1094

HOLDINGS REPORT
City of Indio - Cons Bond Proceeds | Account #10978 | As of June 30, 2025 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
CASH
CCYUSD Receivable 1,560.99 -- 1,560.99
1,560.99

1.00 0.00%
1,560.99

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
CCYUSD Receivable 98,382.57 -- 98,382.57
98,382.57

1.00 0.00%
98,382.57

0.00 0.31%

0.00 Aaa/AAA
AAA

0.00 0.00
Total Cash 99,943.56
99,943.56
99,943.56

1.00 0.00%
99,943.56

0.00 0.32%

0.00 0.00

0.00 MONEY MARKET
FUND
31846V203 FIRST AMER:GVT OBLG Y 485,892.79 --

3.96%
485,892.79
485,892.79

1.00 3.96%
485,892.79

0.00 1.54%

0.00 Aaa/AAAm
AAA

0.00 0.00
31846V203 FIRST AMER:GVT OBLG Y 30,623,807.78 --

3.96%
30,623,807.78
30,623,807.78

1.00 3.96%
30,623,807.78

0.00 97.35%

0.00 Aaa/AAAm
AAA

0.00 0.00
Total Money Market
Fund 31,109,700.57 3.96%
31,109,700.57
31,109,700.57

1.00 3.96%
31,109,700.57

0.00 98.89%

0.00 0.00

0.00 US TREASURY
9128285J5 UNITED STATES TREASURY 3.0
10/31/2025 250,000.00 08/18/2022

3.23%
248,281.25
248,281.25

99.57 4.28%
248,935.55
1,263.59

0.79%
654.30
Aa1/AA+
AA+

0.34 0.33
Total US Treasury 250,000.00 3.23%
248,281.25
248,281.25

99.57 4.28%
248,935.55
1,263.59

0.79%
654.30

0.34 0.33
Total Portfolio 31,459,644.13 3.95%
31,457,925.38
31,457,925.38

1.78 3.95%
31,458,579.68
1,263.59
100.00%
654.30

0.00 0.00
Total Market Value +
Accrued 31,459,843.26
51

Page 54 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 153 of 1094

TRANSACTIONS
52

Page 55 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 154 of 1094

TRANSACTION LEDGER
City of Indio | Account #10043|04/01/2025 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 04/07/2025 91282CGS4 1,250,000.00 UNITED STATES TREASURY

3.625 03/31/2030 100.004 3.62% (1,250,048.83) (866.63) (1,250,915.46) 0.00 Purchase 04/30/2025 89231HAD8 350,000.00 TAOT 2025-B A3 4.34 11/15/2029 99.994 4.34% (349,979.95) 0.00 (349,979.95) 0.00 Purchase 04/30/2025 44935DAD1 365,000.00 HALST 2025-B A3 4.53 04/17/2028 99.991 4.53% (364,967.04) 0.00 (364,967.04) 0.00 Purchase 05/08/2025 437921AD1 360,000.00 4.65 10/15/2029 99.989 4.65% (359,959.79) 0.00 (359,959.79) 0.00 Purchase 05/08/2025 437921AD1 360,000.00 HAROT 252 A3 4.15 10/15/2029 99.989 4.15% (359,959.79) 0.00 0.00 0.00
Purchase 05/08/2025 437921AD1 (360,000.00) HAROT 252 A3 4.15 10/15/2029 99.989 4.15% 359,959.79 0.00 0.00 0.00
Purchase 05/13/2025 02582JKP4 945,000.00 AMXCA 2025-2 A 4.28 04/15/2030 99.998 4.28% (944,982.90) 0.00 (944,982.90) 0.00 Purchase 05/21/2025 91282CMZ1 1,250,000.00 UNITED STATES TREASURY

3.875 04/30/2030 99.168 4.06% (1,239,599.61) (2,764.10) (1,242,363.71) 0.00 Purchase 05/29/2025 362962AD4 530,000.00 GMALT 2025-2 A3 4.58 05/20/2028 99.998 4.58% (529,991.20) 0.00 (529,991.20) 0.00 Purchase 06/04/2025 91282CNG2 1,500,000.00 UNITED STATES TREASURY

4.0 05/31/2030 99.930 4.02% (1,498,945.31) (655.74) (1,499,601.05) 0.00 Purchase 06/11/2025 3137FRUT6 1,250,000.00 FHMS K-106 A2 2.069 01/25/2030 90.504 4.31% (1,131,298.83) (718.40) (1,132,017.23) 0.00 Total Purchase 7,800,000.00 (7,669,773.46) (5,004.87) (7,674,778.33) 0.00 TOTAL
ACQUISITIONS 7,800,000.00 (7,669,773.46) (5,004.87) (7,674,778.33) 0.00

DISPOSITIONS
Maturity 05/01/2025 06367WB85 (511,000.00) BANK OF MONTREAL 1.85 05/01/2025 100.000 0.85% 511,000.00 0.00 511,000.00 (18,815.02) Maturity 05/15/2025 02582JJT8 (735,000.00) AMXCA 2022-2 A 3.39 05/17/2027 100.000 3.58% 0.00 0.00 0.00 0.00
Maturity 05/15/2025 02582JJT8 (1,000,000.00) AMXCA 2022-2 A 3.39 05/17/2027 100.000 3.58% 0.00 0.00 0.00 0.00
Total Maturity (2,246,000.00) 511,000.00 0.00 511,000.00 (18,815.02) 53

Page 56 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 155 of 1094

FEDERAL HOME LOAN
MORTGAGE CORP 0.375
07/21/2025

98.936 0.44% 742,018.50 593.75 742,612.25 (5,491.61)
Sale 04/29/2025 3137EAEU9 (150,000.00)

FEDERAL HOME LOAN
MORTGAGE CORP 0.375
07/21/2025

99.065 0.44% 148,597.50 153.12 148,750.62 (904.52)
Sale 05/09/2025 3135G05X7 (500,000.00)

FEDERAL NATIONAL

MORTGAGE ASSOCIATION

0.375 08/25/2025

98.827 0.45% 494,135.00 385.42 494,520.42 (4,027.69)
Sale 05/09/2025 3137EAEU9 (200,000.00)

FEDERAL HOME LOAN
MORTGAGE CORP 0.375
07/21/2025

99.209 0.44% 198,418.00 225.00 198,643.00 (918.03)
Sale 06/04/2025 3135G05X7 (600,000.00)

FEDERAL NATIONAL

MORTGAGE ASSOCIATION

0.375 08/25/2025

99.096 0.45% 594,573.60 618.75 595,192.35 (3,221.63)
Sale 06/04/2025 91324PEC2 (550,000.00) UNITEDHEALTH GROUP INC

1.15 05/15/2026 96.878 1.47% 532,829.00 333.82 533,162.82 (9,569.28) Sale 06/11/2025 3137FBBX3 (1,500,000.00) FHMS K-068 A2 3.244 08/25/2027 97.629 3.52% 1,464,433.59 1,351.67 1,465,785.26 (13,242.19) Total Sale (4,250,000.00) 4,175,005.19 3,661.53 4,178,666.72 (37,374.95) TOTAL
DISPOSITIONS (6,496,000.00) 4,686,005.19 3,661.53 4,689,666.72 (56,189.97) 54

Page 57 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 156 of 1094

TRANSACTION LEDGER
City of Indio LAIF | Account #10067|04/01/2025 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 04/15/2025 90LAIF$00 831,931.07 Local Agency Investment Fund State Pool 1.000 4.28% (831,931.07) 0.00 (831,931.07) 0.00 Purchase 06/03/2025 90LAIF$00 12,000,000.00 Local Agency Investment Fund State Pool 1.000 4.27% (12,000,000.00) 0.00 (12,000,000.00) 0.00 Purchase 06/12/2025 90LAIF$00 8,000,000.00 Local Agency Investment Fund State Pool 1.000 4.27% (8,000,000.00) 0.00 (8,000,000.00) 0.00 Purchase 06/13/2025 90LAIF$00 4,000,000.00 Local Agency Investment Fund State Pool 1.000 4.27% (4,000,000.00) 0.00 (4,000,000.00) 0.00 Total Purchase 24,831,931.07 (24,831,931.07) 0.00 (24,831,931.07) 0.00 TOTAL
ACQUISITIONS 24,831,931.07 (24,831,931.07) 0.00 (24,831,931.07) 0.00

DISPOSITIONS
Sale 04/15/2025 90LAIF$00 (3,000,000.00) Local Agency Investment Fund State Pool 1.000 4.28% 3,000,000.00 0.00 3,000,000.00 0.00 Sale 05/23/2025 90LAIF$00 (3,000,000.00) Local Agency Investment Fund State Pool 1.000 4.28% 3,000,000.00 0.00 3,000,000.00 0.00 Total Sale (6,000,000.00) 6,000,000.00 0.00 6,000,000.00 0.00 TOTAL
DISPOSITIONS (6,000,000.00) 6,000,000.00 0.00 6,000,000.00 0.00 55

Page 58 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 157 of 1094

TRANSACTION LEDGER
City of Indio - Capitalized Interest Fund | Account #10977|04/01/2025 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss

DISPOSITIONS
Maturity 04/30/2025 9128284M9 (1,500,000.00) UNITED STATES TREASURY

2.875 04/30/2025 100.000 3.27% 1,500,000.00 0.00 1,500,000.00 15,351.56 Total Maturity (1,500,000.00) 1,500,000.00 0.00 1,500,000.00 15,351.56 TOTAL
DISPOSITIONS (1,500,000.00) 1,500,000.00 0.00 1,500,000.00 15,351.56 56

Page 59 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 158 of 1094

TRANSACTION LEDGER
City of Indio - Cons Bond Proceeds | Account #10978|04/01/2025 Through 06/30/2025| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest
Pur/Sold Total Amount Gain/Loss

DISPOSITIONS
Maturity 04/30/2025 9128284M9 (1,500,000.00) UNITED STATES TREASURY

Page 60 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 159 of 1094

IMPORTANT DISCLOSURES
2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “as is” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, s&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities “MBS” reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest. 58

Page 61 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 160 of 1094

BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr US Treasury & Agency Index
The ICE BofA 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies.

ICE BofA 1-3 Yr US Treasury Index
The ICE BofA 1-3 Year US Treasury Index tracks the performance of US dollar-denominated sovereign debt publicly issued by the US government in its domestic market. Qualifying securities must have at least one year remaining term to final maturity and less than three years remaining term to final maturity, a fixed coupon schedule, and a minimum amount outstanding of $1 billion.

Qualifying securities must have at least 18 months to final maturity at the time of issuance. 59

Page 62 of 62 ends

Report of investments for the quarter ending June 30, 2025 (Ruby D. Wall...Page 161 of 1094 City of Indio
City Council
August 20, 2025

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Ruby D. Walla, Director of Finance
Subject: Resolution No. 10512, adopting the updated City Investment Policy and annual delegation of investment authority to the City Treasurer and the Treasurer of the Component Municipal Entities pursuant to Government Code Section 53607.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 10512, approving the City's updated Investment Policy; approve the delegation of authority to the City Treasurer and the Treasurer of the Component Municipal Entities pursuant to Government Code Section 53607.

SUMMARY:

The City in collaboration with the City of Indio's investment advisor, Chandler Asset Management, recently reviewed and updated the City's investment policy to capture recent changes to California Government Code (Code) sections that govern the investment of public funds. Staff also reviewed the policy to ensure inclusion of the latest best practices from recognized industry groups such as Government Finance Officers Association (GFOA), California Society of Municipal Finance Officers (CSMFO), and the California Municipal Treasurers Association (CMTA). Per the City's investment policy, the City Council may annually delegate its investment authority. This delegation expired on July 17, 2025 and is being presented for consideration of re-delegation. The annual review and adoption of the City's investment policy delegates the investment authority to the City Treasurer and the Treasurer of the Component Municipal Entities.

BACKGROUND INFORMATION:

The City invests public funds in conformance with federal, state, and other legal requirements.

These requirements, along with general objectives, delegation of authority, procedures, internal controls, and reporting requirements are detailed in the Investment Policy.

The City's investment policy (Exhibit A) is periodically updated to be in conformity with modernized state code and recommendations from the City's investment advisor Chandler Asset Management.

Below is a summary of the investment policy changes:

Section VIII Authorized and Suitable Investments
 Add Section 10 - Shares of Beneficial Interest Issued By A Joint Powers Authority (JPA) o Added section to add JPAs as an authorized investment option to expand the diversification opportunities for the City's investment portfolio.

AGENDA ITEM #9.6
Resolution No. 10512, adopting the updated City Investment Policy and an... Page 162 of 1094 The requirement to re-delegate authority annually is detailed in Section V.A. of the City's investment policy.

ATTACHMENTS:

RESOLUTION NO 10512 2025-26 Investment Policy
Indio Investment Policy 2025-26 - redline

APPROVAL(S):

Ruby D. Walla, Director of Finance Approved - 04 Aug 2025 Steven Graham Pacifico, City Attorney Approved - 07 Aug 2025 Bryan H. Montgomery, City Manager Approved - 08 Aug 2025

Page 2 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 163 of 1094 RESOLUTION NO. 10512

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO,

CALIFORNIA ADOPTING AN INVESTMENT POLICY
WHEREAS, Chapter 33.001 of the Code of the City of Indio establishes a general policy that the City of Indio, and its related entities for which the members of the City Council serve as the governing body (the “Component Municipal Entities”), will establish and maintain investment policies in accordance with state laws that stress safety and liquidity over yield; and
WHEREAS, Chapter 32.90 of the Code of the City of Indio establishes an Investment Committee composed of the City Treasurer, Finance Director, two members of the City Council and one citizen from the community; and WHEREAS, Article 1 of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code, including but not limited to Sections 53601 and 53607 therein, vests in the City Council, as legislative body of the City and the Component Municipal Entities, the authority to invest and reinvest funds of City and the Component Municipal Entities, respectively, and to sell or exchange securities so purchased for investment; and
WHEREAS, Section 53607 of the Government Code authorizes Indio’s City Council, for itself and as legislative body of the Component Municipal Entities, to annually delegate authority to the City Treasurer and the Treasurer of the Component Municipal Entities, respectively, to invest, reinvest, sell, or exchange securities until such time as this delegation of authority is revoked or expires; and WHEREAS, it is the desire of the City Council to renew the delegation of such authority; and
WHEREAS, the City’s Treasurer and Finance Director have presented a revised Statement of Investment Policy for the fiscal year 2025-26, which shall be applicable to subsequent fiscal years unless sooner reviewed and revised by the City Council; and

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

Section 1. That the City Council of the City of Indio, on behalf of itself and the Component Municipal Entities, does hereby delegate authority to invest and reinvest funds of the City and the Component Municipal Entities to the City Treasurer and the Treasurer of the Component Municipal Entities, respectively, pursuant to all applicable laws, statutes, and regulations of the State of California as set forth in this Resolution.

Section 2. That the proposed Investment Policy as set forth in Exhibit “A” attached to this Resolution, which is incorporated by this reference and shall be

Page 3 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 164 of 1094 deemed to be effective on August 20, 2025 and each calendar year hereafter unless changed or modified by further action of the Council.

Section 3. That Resolution No. 10463 of the City of Indio is rescinded effective August 20, 2025
PASSED, APPROVED and ADOPTED this 20th day of August, 2025.

GLENN MILLER, MAYOR
ATTEST:

CITY CLERK

SABDI SANCHEZ, MMC
DIR. OF CITY CLERK SERVICES

Page 4 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 165 of 1094 1 EXHIBIT A

CITY OF INDIO, CALIFORNIA, INVESTMENT POLICY
July 17, 2024August 20, 2025
I. INTRODUCTION
Chapter 33.001 of the Code of the City of Indio establishes a general policy that the City of Indio, and its related entities for which the members of the City Council serve as the governing body (the “Component Municipal Entities”), will establish and maintain investment policies in accordance with state laws that stress safety and liquidity over yield.

Article 1 of Chapter 4 of Part 1 of Division 2 of Title 5 of the California Government Code (CGC), including but not limited to Sections 53601 and 53607 therein, vests in the City Council, as legislative body of the City and the Component Municipal Entities, the authority to invest and reinvest funds of City and the Component Municipal Entities, respectively, and to sell or exchange securities so purchased for investment.

As used in this policy, the term “City” may refer to the City, or the City and the Component Municipal Entities, as the context may require.

CGC Section 53646 provides for the consideration and approval of the Investment Policy of the City, as well as any changes thereto, by the City Council at a public meeting. This Investment Policy is endorsed and adopted by resolution by the City of Indio’s City Council.

The City’s Finance Director (the “Finance Director”) may annually render to the City Council a Statement of Investment Policy for consideration and approval by the City Council at a public meeting, incorporating updates and modifications as necessary, convenient, or desirable.

All investments shall comply with this Investment Policy and governing laws. This Investment Policy addresses the methods, procedures and practices, which must be exercised to ensure effective and judicious fiscal and investment management of the City’s funds. The City’s investment program shall be operated in conformance with federal, state, and other legal requirements, including CGC Sections 16429.1-16429.4, 53600-53610 and 53630-53686.

It is the policy of the City to invest public funds in a manner which will provide a market rate of return, given its requirements for preserving principal and meeting the daily cash flow demands of the City.

While the City Council recognizes that it possesses the authority to make investment decisions on behalf of the City, in connection with adoption of this Investment Policy and pursuant to CGC Section 53607, the City Council has delegated its investment authority for a one-year period to the City Treasurer and the Treasurer of the Component Municipal Entities, subject to review by the City Council and annual renewal at the City Council’s discretion of such delegation of investment authority, as described in more detail and subject to the provisions of Section V.A. of this Investment Policy. The City Council recognizes that the City Treasurer and the Treasurer of the Component Municipal Entities each may appoint

Page 5 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 166 of 1094 2 such deputies as such treasurer reasonably may deem necessary or appropriate to carry out and fulfill the responsibilities and fiduciary duties attendant to such delegated investment authority, subject to the oversight of the appointing treasurer.

In the event that the City Council revokes its delegation of investment authority to the City Treasurer and/or the Treasurer of the Component Municipal Entities, the City Council shall invest funds of the City and/or the Component Municipal Entities, as applicable, in a manner consistent with its fiduciary duties and in accordance with this Investment Policy. Upon such a revocation, treasurer responsibilities set forth herein which comprise a portion of the City Council’s delegated investment authority would instead revert to and be performed by the City Council (or by qualified agents designated and selected by the City Council and acting under the City Council’s direction and supervision, so long as the City Council exercises prudence in the selection of the agent, imposes suitable safeguards to prevent abuse in the exercise of discretion by the agent, and remains responsible for any investment decisions made by the agent with respect to the funds of the City).

II. SCOPE
This Investment Policy applies to all investments and deposits of the City of Indio and the Component Municipal Entities.

This Investment Policy, however, specifically excludes the employees’ retirement and deferred compensation funds. Additionally, money held by a trustee or fiscal agent pledged to the payment or security of bonds or other indebtedness shall comply with CGC Sections 5922(d) and 53601(m).

The City also participates as a member, or designates members of the governing body of, certain public agencies whose governing body includes members other than members of the City Council of the City (collectively, the “Other Public Agencies”). Pursuant to their respective authorizations, the Other Public Agencies may from time to time voluntarily deposit their monetary resources with the City of Indio for investment on a pooled basis.

Any Other Public Agency, by depositing its funds with the City of Indio for management on a pooled basis, acknowledges that those funds will be invested in accordance with this Investment Policy, as in effect and amended from time to time, and by so depositing its funds, consents to such investment of its respective funds. See Section V.C. of this Investment Policy for additional provisions regarding pooling of investment funds.

III. GENERAL OBJECTIVES
All investment management decisions and activities must assure ongoing compliance with all Federal, State and local laws governing the investment of moneys under the control of the City Council. The primary objectives, in priority order, of the City’s investment activities shall be:

1. Safety: Safety of principal is the foremost objective of the investment program.

Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.

Page 6 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 167 of 1094 3 2. Liquidity: The investment portfolio shall remain sufficiently liquid to enable the City of Indio to meet all operating requirements that may be reasonably anticipated.

3. Return: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

IV. PRUDENCE, INDEMNIFICATION AND ETHICS
A. Prudent Investor Standard: Management of the City’s investments is governed by the Prudent Investor Standard as set forth in the California Government Code 53600.3:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” B. Indemnification: The City Treasurer and the Treasurer of the Component Municipal Entities, and other authorized persons responsible for managing City funds, acting in accordance with written procedures and this Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported within 30 days and appropriate action is taken to control adverse developments.

C. Ethics: Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose any material financial interests that could be related to the performance of this Investment Policy annually or as necessary.

The City Treasurer and the Treasurer of the Component Municipal Entities are governed by the Political Reform Act of 1974 (CGC Section 81000 et seq.) regarding disclosure of material financial interests.

V. DELEGATION OF AUTHORITY; POOLING OF INVESTMENT FUNDS A. Authority to manage the City’s investment program is derived from California Government Code Sections 53600 et seq. The City Council is responsible for the City’s cash and investment management, including the administration of this Investment Policy.

Pursuant to CGC Section 53607, the Council may annually delegate its investment authority to the City Treasurer and the Treasurer of the Component Municipal Entities,

Page 7 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 168 of 1094 4 who shall thereafter assume full responsibility for those transactions until the authority is revoked or expires. Management responsibility for the cash and investment management of City’s funds is hereby delegated to the City Treasurer and the Treasurer of the Component Municipal Entities, who shall operate consistent with this policy.

The City Treasurer and the Treasurer of the Component Municipal Entities shall establish written procedures for the operation of the cash management/investment program, consistent with this Investment Policy. Such procedures shall include explicit designation of persons responsible for carrying out investment transactions under the direction and supervision of the City Treasurer and the Treasurer of the Component Municipal Entities.

No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer and the Treasurer of the Component Municipal Entities. The City Treasurer and the Treasurer of the Component Municipal Entities shall be responsible for all transactions undertaken with respect to the applicable local agency’s funds and shall establish a system of controls to regulate the activities of subordinate employees and any third-party investment manager utilized pursuant to Section V.B. below.

B. The City may engage the services of an external investment manager to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives, provided that the City Treasurer and the Treasurer of the Component Municipal Entities, as the City Council’s delegates under CGC Section 53607, exercise prudence in the selection of the manager, impose suitable safeguards to prevent abuse in the exercise of discretion by the manager, and remain responsible for any investment decisions made by the manager with respect to the funds of the applicable local agency.

Such external manager may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such manager must be registered under the Investment Advisers Act of 1940.

C. Pooling of Funds:

1. The pooling of investment funds of the City and the Component Municipal Entities provides certain benefits, including greater diversification of risk in the investment portfolio, increased liquidity of funds, and efficiencies with regard to investment pricing, safekeeping, and administration. Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds of the City and the Component Municipal Entities to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration.

The City Council acknowledges that, so long as the City Council’s annual delegation of investment authority pursuant to CGC Section 53607 to the City Treasurer and the Treasurer of the Component Municipal Entities is effective, the pooling of funds as set forth herein requires the mutual cooperation of the City Treasurer and the Treasurer of the Component Municipal Entities (such as, but not limited to, the appointment of such deputies as each such treasurer reasonably may deem necessary or appropriate to carry out and fulfill the day-to-day responsibilities and fiduciary

Page 8 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 169 of 1094 5 duties attendant to such delegated investment authority, subject to the oversight of the appointing treasurer, and participation by each such treasurer in the Investment Committee established by Chapter 32.90 of the City’s Municipal Code).

In the event that the City Treasurer and the Treasurer of the Component Municipal Entities determine that they are no longer able or willing to cooperate in investing the funds of the City or the Component Municipal Entities, as applicable, on a pooled basis, the City Treasurer and the Treasurer of the Component Municipal Entities promptly shall so advise the City Council for further consideration and possible action consistent with the applicable provisions of the CGC and applicable legal authorities interpreting such provisions.

2. Pursuant to CGC Section 53647, the City Treasurer and the Treasurer of the Component Municipal Entities shall allocate all interest earned on funds of the City or the Component Municipal Entities to the General Fund unless otherwise required by law, including Federal or State regulation or local ordinance.

3. To the extent that an Other Public Agency (as defined in Section II) may from time to time voluntarily deposit its monies with the City of Indio for investment on a pooled basis, as contemplated by Section II of this Investment Policy, such monies shall be deemed to be subject to the investment authority annually delegated by the City Council to the City Treasurer and shall be invested in the same manner as the investment funds of the City pursuant to this Investment Policy.

VI. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS The Finance Director will maintain a list of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence described in the Investment Procedures Manual who are authorized to provide investment services in the State of California. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).

A. Institutions eligible to transact investment business with City include:

1. Primary government dealers as designated by the Federal Reserve Bank;

2. Nationally or state-chartered banks;

3. The Federal Reserve Bank; and,

4. Direct issuers of securities eligible for purchase.

Any financial institutions authorized to conduct purchase and sale investment services shall also meet the requirements of CGC Section 53601.5. The selection of financial institutions authorized to provide investment services for purchase and sale transactions

Page 9 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 170 of 1094 6 shall be made by the City Treasurer and the Treasurer of the Component Municipal Entities pursuant to Section VI.B. below.

Any financial institutions, other than the State of California Local Agency Investment Fund, authorized to provide services for the custody and safekeeping of investments shall also meet the requirements of CGC Section 53608 or, as to time deposits (non-negotiable certificates of deposit), CGC Section 53635.2, and Section VII.C. of this Investment Policy.

Pursuant to CGC Section 53608, the City Council hereby delegates to the City Treasurer and the Treasurer of the Component Municipal Entities, respectively, the authority to deposit securities and other investments of the City and the Component Municipal Entities, as applicable, for custody and safekeeping of securities. Accordingly, subject to the foregoing requirements, the City Treasurer and the Treasurer of the Component Municipal Entities shall determine which financial institutions are eligible to provide custody and safekeeping services for investments.

B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City. An annual review of the financial condition and registrations of qualified bidders will be conducted by the City Treasurer and the Treasurer of the Component Municipal Entities. A current audited financial statement is required to be on file for each financial institution and broker/dealer which handles investment transactions or provides investment custody and safekeeping services for the City.

C. All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the City Treasurer and the Treasurer of the Component Municipal Entities with a statement certifying that the institution has reviewed the California Government Code Section 53600 et seq. and the City’s Investment Policy.

D. Selection of broker/dealers used by an external investment adviser retained by the City shall be at the sole discretion of the investment adviser, provided that the selected broker/dealers also meet the requirements of CGC Section 53601.5.

E. Public deposits shall be made only in qualified public depositories as established by State law (CGC Section 53630 et seq.). Deposits shall be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, shall be collateralized in accordance with State law (CGC Section 53630 et seq.).

VII. COMPETITIVE TRANSACTIONS, DELIVERY AND SAFEKEEPING A. Competitive transactions: All investment transactions shall be conducted on a competitive basis with quotes from a minimum of three brokers or financial institutions when possible.

Page 10 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 171 of 1094 7 B. Delivery-versus-payment: Settlement of all investment transactions will be completed using standard delivery-vs.-payment procedures.

C. Third-party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City shall be held in safekeeping by a third-party bank custodian that meets the requirements of CGC Section 53608 and is selected and approved by the City Treasurer and the Treasurer of the Component Municipal Entities, acting as agent for the City, and pursuant to the terms of a written custody agreement executed by the bank and the City.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

VIII. AUTHORIZED AND SUITABLE INVESTMENTS
All investments shall be made in accordance with Sections 53600 et seq. of the Government Code of California and as described within this Investment Policy. Where this Investment Policy specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. Permitted investments under this policy shall include:

1.U.S. Treasury and other U.S. government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest.

There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries.

2.Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government-sponsored enterprises.

3.Banker’s acceptances provided that:
a. They are issued by institutions with short term debt obligations rated “A-1” or higher, or the equivalent, by at least one nationally recognized statistical-rating organization (NRSRO); and have long-term debt obligations which in a rating category of ”A” or higher by at least one nationally recognized statistical rating organization;
b. The maturity does not exceed 180 days; and,

Page 11 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 172 of 1094 8 c. No more than 40% of the total portfolio may be invested in banker’s acceptances and no more than 5% per issuer.

4.Federally insured time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
a. The amount per institution is limited to the maximum covered under federal insurance; and,
b. No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits.
c. The maturity of such deposits does not exceed 5 years.

5.Time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
a. The maturity of such deposits does not exceed 5 years.

6.Negotiable certificates of deposit (NCDs) issued by a nationally or state-chartered bank, a savings association or a federal association (as defined in Section 5102 of the California Financial Code), a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
a. The maturity does not exceed five years.
b. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
c. No more than 30% of the total portfolio is invested in NCDs (combined with CDARS).

7.Repurchase agreements collateralized with securities authorized under Sections VIII (1 and 2) of this policy, maintained at a level of at least 102% of the market value of the repurchase agreements, provided that:
a. The maximum maturity of repurchase agreements shall be 1 year; b. There is no limit to the amount to be invested in repurchase agreements; c. Securities used as collateral for repurchase agreements shall be delivered to the City’s custodian bank; and,

Page 12 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 173 of 1094 9 d. The repurchase agreements are the subject of a master repurchase agreement between the City and the provider of the repurchase agreement. The master repurchase agreement shall be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).

8.Commercial paper provided that:
a. The maturity does not exceed 270 days from the date of purchase; b. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million;
c. They are issued by institutions whose short term obligations are rated ”A-1” or higher, or the equivalent, by at least one nationally recognized statistical rating organization; and whose long-term obligations in a rating category of ”A” or higher by at least two nationally recognized statistical rating organizations; and, d. No more than 25% of the portfolio is invested in commercial paper and no more than 5% per issuer. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.

9.State of California Local Agency Investment Fund (LAIF), provided that:
a. City may invest up to the maximum permitted amount in LAIF; and, b. LAIF’s investments in instruments prohibited by or not specified in City’s policy do not exclude it from City’s list of allowable investments, provided that the fund’s reports allow the City Treasurer and the Treasurer of the Component Municipal Entities to adequately judge the risk inherent in LAIF’s portfolio.

10. Shares of Beneficial Interest Issued By A Joint Powers Authority (JPA), provided that:
a. The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive.
b. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA.
b. The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).

10.11.Corporate medium term notes (MTNs), provided that:

Page 13 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 174 of 1094 10 a. Such notes have a maximum maturity of five years; b. Are issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States;
c. Shall be rated ”A” category or better by at least one nationally recognized statistical rating organizations; and,
d. Holdings of medium-term notes may not exceed 30% of the portfolio and no more than 5% per issuer.

11.12.Mortgage pass-through, mortgage backed, collateralized mortgage obligations and asset-backed securities, provided that:
a. Such securities shall have a maximum stated final maturity of five years; b. Shall be rated in a rating category of “AA” or its equivalent or better by at least one nationally recognized statistical rating organizations. c. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio.
d. No more than 5% of the portfolio may be invested in any single asset-backed or commercial mortgage security issuer. As provided in Sections VIII.1 and 2 above, there is no issuer limitation on any mortgage security where the issuer is the US Treasury, a Federal agency, or a United States government-sponsored enterprise.

12.13.Money market mutual funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and are purchased without commission:
a. Provided that such funds meet either of the following criteria:

1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or,

2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds and with assets under management in excess of $500 million.
b. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio and no more than 20% of the total portfolio may be invested in the shares of any one Money Market Fund.

Page 14 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 175 of 1094 11 13.14.Municipal investments include obligations of the City, the State of California, any of the other 49 states, and any local Agency within the State of California, provided that:
a. Such investments are specifically approved by City Council.

b. The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). c. No more than 10% of the portfolio is invested in municipal investments and no more than 5% per issuer.

14.15.Supranational Securities, provided that;
a. Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
b. The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
c. No more than 30% of the total portfolio may be invested in these securities. d. No more than 10% of the portfolio may be invested in any single issuer. e. The maximum maturity does not exceed five (5) years.

IX. PORTFOLIO RISK MANAGEMENT
A. Prohibited investment vehicles and practices:

1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.

2. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.

3. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.

4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

5. Purchasing or selling securities on margin is prohibited.

6. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.

7. The purchase of foreign currency denominated securities is prohibited.

Page 15 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 176 of 1094 12 8. Securities with forward settlement date exceeding 45 days from the time of the investment is prohibited.

B. Mitigating credit risk in the portfolio

Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City shall mitigate credit risk by adopting the following strategies:

1. The diversification requirements included in Section VIII are designed to mitigate credit risk in the portfolio;

2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and instrumentalities, Supranational securities and money market mutual funds;

3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences; and,

4. If securities owned by the City are downgraded to a level below the quality required by this Investment Policy, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.
a. If a security is downgraded, the Finance Director will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.

b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported quarterly to the City Council.

C. Mitigating market risk in the portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City shall mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cashflow purposes. The City adopts the following strategies to control and mitigate its exposure to market risk:

1. The City shall maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements;

Page 16 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 177 of 1094 13 2. The maximum percent of callable securities in the portfolio shall be 15%;

3. The maximum stated final maturity of individual securities in the portfolio shall be five years, except as otherwise stated in this policy or in the case of bond reserves and/or capitalized interest accounts held by third-party trustee; and, The duration of the portfolio shall at all times be approximately equal to the duration (plus or minus 20%) of the Market Benchmark Index selected by the City (B of A Merrill Lynch Index of 1-5 year Treasury Securities) based on the City’s investment objectives, constraints and risk tolerances.

D. Collateralization
CERTIFICATES OF DEPOSIT (CDS). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non- Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

COLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

REPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
• The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.
• Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
• The City shall receive monthly statements of collateral E. Procedures for selection & monitoring of pooled investments

1. To the extent the City has funds invested in the State of California Local Agency Investment Fund (LAIF) pursuant to Section VIII.9, or money market mutual funds pursuant to Section VIII.12, the City Treasurer and the Treasurer of the Component Municipal Entities shall assure that the City receives periodic investment reports.

Page 17 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 178 of 1094 14 2. Pursuant to CGC Section 16429.1 and CGC Section 53601(l)(2) and (4), respectively, investment by the City in LAIF or money market mutual funds does not require an analysis of the underlying securities held by these particular investment pools.

However, the applicable fund’s reports should allow the City Treasurer and the Treasurer of the Component Municipal Entities to adequately judge, from time to time, the risk inherent in LAIF’s portfolio or the money market mutual fund portfolio.

3. Changes in amount, timing, and manner of payment of fees, or size or frequency of deposits or withdrawals, as well as performance history shall be duly noted as part of the ongoing monitoring of pooled investments, including investments in LAIF and money market mutual funds.

4. Prior to amendment or modification of this Investment Policy to authorize investment in any other government sponsored investment pool or any mutual funds that are not money market mutual funds, there shall be a thorough evaluation of the proposed pooled investment, which shall include review of the following information:
(a) a written statement of investment policy and objectives, including a description of eligible investment securities;
(b) a description of interest calculations and how it is distributed, and how gains and losses are treated.
(c) a description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. (d) a description of who may invest in the pool/fund, and frequency and size of deposits and withdrawals;
(e) a schedule for receiving statements and portfolio holdings reports; (f) a fee schedule, including amount, timing, and manner of fee payment; (g) performance history;
(h) a description of how the pool/fund utilizes reserves, retained earnings, etc.

X. INVESTMENT OBJECTIVES
A. Overall objective: The investment portfolio shall be designed with the overall objective of obtaining a total rate of return, throughout economic cycles, commensurate with investment risk constraints and cash flow needs.

B. Specific objective: The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on the ICE B of A Merrill Lynch Index of 1-5 Year Treasury securities.

XI. PROCEDURES AND INTERNAL CONTROLS; REVIEW OF INVESTMENT PORTFOLIO A. Procedures
The City Treasurer and the Treasurer of the Component Municipal Entities shall establish written investment policy procedures in an Investment Procedures Manual to assist investment staff with day-to-day operations of the investment program consistent with this policy. Such procedures shall include explicit designation of persons responsible for carrying out investment transactions under the direction and supervision of the City

Page 18 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 179 of 1094 15 Treasurer and the Treasurer of the Component Municipal Entities. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer and the Treasurer of the Component Municipal Entities. The procedures should include reference to:

1. Review of daily cash balances;

2. Process for selecting investments;

3. Steps for purchasing an investment;

4. Settlement and safekeeping process;

5. Wire transfer agreements;

6. Collateral/depository agreements.

B. Internal Controls
The City Treasurer and the Treasurer of the Component Municipal Entities are responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City and the Component Municipal Entities, respectively, are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met.

C. Review of Investment Portfolio
The securities and other investments held by the City must be in compliance with Section VIII (Authorized and Suitable Investments) at the time of purchase. The City Treasurer and the Treasurer of the Component Municipal Entities, and any external investment manager engaged to assist in the management of the City’s investment portfolio pursuant to Section V.B. of this Investment Policy, shall review the portfolios quarterly to identify any securities or other investments that are no longer in compliance and advise the Finance Director of any noncompliance in a timely fashion. Any major and critical incidences of noncompliance identified by the City Treasurer, the Treasurer of the Component Municipal Entities, or any such external investment manager shall be reported by the Finance Director in the quarterly investment reports submitted by the Finance Director to the City Council pursuant to Section XII.A. of this Investment Policy.

The following segregation of responsibilities will form the basic system of internal controls for investments.

The table attached shows the different levels of approval and oversight responsibility.

FUNCTION RESPONSIBILITY
Develop formal Investment Policy Finance Director, City Treasurer, and Treasurer of the Component
Municipal Entities
Recommend modifications to Investment Policy Investment Committee Review Investment Policy and recommend to City Council/Agency Board Investment Committee Adopt Investment Policy City Council
Select Investments City Treasurer/Treasurer of the
Component Municipal
Entities/Advisor

Page 19 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 180 of 1094 16 FUNCTION RESPONSIBILITY
Approve Transactions City Treasurer and Treasurer of
the Component Municipal
Entities
Execute investment transactions. Finance Manager
Investment Verification (match broker confirmation to City investment records)
Accountant
Record investment transactions into accounting records Finance Manager Reconcile City investment records to accounting records and bank statements
Accountant
Security Time CD’s or receipt will be
maintained in the City vault in
the care of the City Treasurer
and the Treasurer of the
Component Municipal Entities.

All other securities will be held
third-party safekeeping.

Review of portfolio to determine conformance to Investment Policy Independent Auditors XII. REPORTING, DISCLOSURE AND PROGRAM EVALUATION
A. Monthly reports
So long as the City Council’s annual delegation of investment authority pursuant to CGC Section 53607 to the City Treasurer and the Treasurer of the Component Municipal Entities is effective, the City Treasurer and the Treasurer of the Component Municipal Entities shall make a monthly report of all investment transactions of the applicable local agency’s funds to the City Council.

B. Quarterly reports
Quarterly investment reports shall be submitted by the Finance Director and/or the City Treasurer and the Treasurer of the Component Municipal Entities to the City Council within 45 days after the end of the quarter. These reports shall disclose, at a minimum, the following information about the risk characteristics of the City’s portfolio:

1. An asset listing showing par value, cost and accurate and complete market value of each security, type of investment, issuer, maturity date, and interest rate;

2. A one-page summary report which shows:
a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio;
c. Average portfolio credit quality; and,
d. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months, year to date, and since inception compared to the Benchmark Index returns for the same periods;

3. A statement of compliance with this Investment Policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California

Page 20 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 181 of 1094 17 Government Code, including a justification for their presence in the portfolio and a timetable for resolution; and,

4. A statement that the City has adequate funds to meet its cash flow requirements for the next six months (or an explanation of why sufficient money will or may not be available).

C. Annual reports
A comprehensive annual report shall be presented in conjunction with the Investment Policy review within 120 days of the end of the fiscal year. This report shall include comparisons of the investment portfolio’s actual return to the Benchmark Index return, suggest policies and procedural improvements that might enhance the investment program, and include an investment plan for the coming year.

D. Annual audit
The Finance Director shall establish an annual process of independent review by an external independent auditor to assure compliance with standard internal controls. Such audit will include tests deemed appropriate by the auditor.

E. Special audits
The City Council may at any time order an audit of the investment portfolio and/or the investment practices of the City Treasurer or the Treasurer of the Component Municipal Entities.

XIII. INVESTMENT COMMITTEE
The investment committee is established by Section 32.90 of the City’s Municipal Code to serve in an advisory capacity. Per the Municipal Code, the investment committee will be composed of two members of the City Council, the City Treasurer, the Treasurer of the Component Municipal Entities, and the Finance Director of the City. The investment committee is responsible for reviewing the City’s Investment Policy at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends; and recommending to the City Council any modifications to the policy it deems necessary.

Individual investment trades and purchases shall be done by the City Treasurer and the Treasurer of the Component Municipal Entities within the approved policy and guidelines.

The investment committee will review quarterly reports as outlined in Section XII.B of this policy.

Page 21 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 182 of 1094 18 GLOSSARY OF INVESTMENT TERMS
Agencies. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FDIC. The Federal Deposit Insurance Corporation provides insurance backed by the full faith and credit of the US government to certain bank deposits and debt obligations.

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount notes and bonds.

Asked. The price at which a seller offers to sell a security.

Average life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

Banker’s acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

Page 22 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 183 of 1094 19 Bid. The price at which a buyer offers to buy a security.

Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate.

Large denomination CDs may be marketable.

Certificate Of Deposit Account Registry System (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage.

CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

Commercial paper. The short-term unsecured debt of corporations.

Cost yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

Coupon. The rate of return at which interest is paid on a bond.

Credit risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

Current yield. The annual income from an investment divided by the current market value.

Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

Debenture. A bond secured only by the general credit of the issuer.

Delivery vs. payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

Page 23 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 184 of 1094 20 Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate or index.

Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

Federal funds rate. The rate of interest charged by banks for short-term loans to other banks.

The Federal Reserve Bank through open-market operations establishes it.

Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

Haircut: The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction (i.e. a repo).

Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

Liquidity: The speed and ease with which an asset can be converted to cash.

Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral.

Market risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

Market value. The price at which a security can be traded.

Marking to market. The process of posting current market values for securities in a portfolio.

Page 24 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 185 of 1094 21 Maturity. The final date upon which the principal of a security becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

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

Modified duration. The percent change in price for a 100 basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

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

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

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

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

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

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

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

Government securities market.

Prudent investor rule. A standard of responsibility which applies to fiduciaries. In California Government Code 53600.3, the rule with respect to the fiduciaries investing public funds is stated as “[Investments shall be managed] with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity

Page 25 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 186 of 1094 22 with those matters would use in the conduct of funds of like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.” Realized yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

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

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

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

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

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

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

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

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

Page 26 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 187 of 1094 23 Treasury bills. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

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

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

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

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

Page 27 of 27 ends

Resolution No. 10512, adopting the updated City Investment Policy and an... Page 188 of 1094 City of Indio
Indio Electric Finance Authority
August 20, 2025

STAFF REPORT

To: Indio Electric Finance Authority
From: Bryan Montgomery, Executive Director
Prepared by: Bryan Montgomery, Executive Director
Subject: Payment of $166,667 to the Coachella Valley Association of Governments (CVAG) for services related to the Coachella Valley Power Agency.

RECOMMENDATION:

Staff recommends that the Board of Directors of the Indio Electric Finance Authority authorize the Executive Director/City Manager to make a payment of $166,667 to CVAG for administrative services for the Coachella Valley Power Agency.

SUMMARY:

The Coachella Valley Power Agency (CVPA) is a joint powers authority between the County of Riverside, the City of La Quinta and the City of Indio formed to address the various issues relating to the of Association Valley Coachella The communities. our in service electrical of provision Governments (CVAG) has agreed to assist with the administration of the CVPA and the CVPA Board has approved an initial budget of $500,000. The CVPA Board has agreed that each member entity be asked to contribute one-third of the initial budget ($166,667 each). Here is a link to further information and documents related to the CVPA: https://cvag.org/cvpa/

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$166,667 In current year budget: Yes
Current FY General
Fund Impact:

Budget adjustment:

Next FY Financial
Impact:

Strategic Objective: Public Infrastructure
Source of funds: Indio Electric Finance Authority Fund-Org-Object Reference:

Additional Financial Details:

Funding to come from the Indio Electric Finance Authority

ALTERNATIVES:

Not authorize the payment

AGENDA ITEM #9.7
Payment of $166,667 to the Coachella Valley Association of Governments (... Page 189 of 1094 City of Indio
City Council
August 20, 2025

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Miguel Ramirez-Cornejo, Dir. of Economic Development Conflict: Yes Member: Elaine Holmes
Subject: Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 Oasis St.

RECOMMENDATION:

Staff recommends that the City Council approve a Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 Oasis St.

SUMMARY:

Downtown Indio is experiencing sustained momentum in its ongoing renaissance, with over $200 million in public and private investments. Opened businesses—including Studio B, “World Famous” Repairland, Rosemary HiFi, Gabino’s Creperie, Italitica, Indio Taphouse, Victoria’s Café, and Rocks and Records—have helped reenergize the downtown and establish it as a vibrant center for food, music, art, and community. The completion of the College of the Desert campus expansion has further anchored Downtown as a hub for innovation and activity. That momentum continues with the soon-to-open Donna Forte, Desert Beer Company, Everbloom, and Disco Rabbit, all of which will add even more vitality to the area. The proposed lease is consistent with the Downtown Specific Plan and will support continued revitalization by encouraging new investment, generating additional sales tax revenue, and contributing to the growing creative and cultural landscape of Downtown Indio.

BACKGROUND INFORMATION:

The proposed lease with Porc Hospitality, LLC represents another exciting step in the continued revitalization of Downtown Indio. Porc Hospitality, LLC seeks to lease a city-owned suite located at 45130 Oasis Street (Attachment 1), which is approximately 1,350 square feet. The new business, Little Bird will be a seat and bar restaurant that will offer a cuisine inspired experienced by Japanese and Mexican street food and curated selection of spirits and craft cocktails. The menu will feature a curated selection of yakitori, skewers, aguachiles, crudos, and small plates that creatively blend Japanese a be food the Complementing will culinary and ingredients Latin and methods. thoughtfully crafted drink menu showcasing Japanese spirits and traditional Mexican liquors, each cocktail made with fresh, regionally inspired ingredients to deliver a unique and elevated beverage experience. destination dining rich culturally and memorable to create aims Bird Little in a Downtown Indio—offering exceptional food, standout service, sustainable practices, and a welcoming environment that fosters community connection.

AGENDA ITEM #9.8
Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 190 of 1094 In terms of the General Plan, the property on Miles Avenue is within the Downtown Specific Plan zoned Downtown-Core (DT-C) characterized by lively, pedestrian-oriented retail and restaurant uses. Goal ED-7 of the General Plan states that an economic development goal is to have “A City with the destination hospitality, retail, and entertainment opportunities to meet the needs of visitors and residents.” Additional restaurant hospitality uses will conform to such a goal as part of the City's economic development strategy. Accordingly, the proposed lease is consistent with the General Plan in is property of lease the that the Council City the that find recommends staff and conformance with the General Plan.

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: Downtown Destination
Source of funds: General Fund Fund-Org-Object
Reference:
1011190 -553005

Additional Financial Details:

General Fund Impact

Tenant Improvement Expense is $50,000

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

Premises: The building is located at 45130 Oasis Street. The property consists of a one-story building of approximately 1,350 square feet.

Permitted Use of Premises: The Premises shall open and be used solely for the operation of a full- service restaurant and bar.

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

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

Rent: The rent shall be $675.00 per calendar month during the Term, prorated for any partial calendar month in the Term.

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

Condition of Premises: Tenant is accepting the Premises in their current “as-is” condition, without representation or warranty, express or implied.

Tenant Improvements:

Page 2 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 191 of 1094 The first is the Tenant’s initial improvements that are paid for by the Tenant with their own capital.

The second type of improvements are those paid for with the tenant improvement allowance. All tenant improvements are subject to review and approval by the City.

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

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

Tenant Improvement Allowance: Landlord is providing the Tenant with a tenant improvement allowance of Fifty Thousand Dollars ($50,000) that will be utilized for the actual costs of design and construction of certain Improvements.

ATTACHMENTS:

Attachment 1 - Little Bird Lease Agreement

APPROVAL(S):

Miguel Ramirez-Cornejo, Dir. of Economic Development Approved - 06 Aug 2025 Steven Graham Pacifico, City Attorney Approved - 07 Aug 2025 Ruby D. Walla, Director of Finance Approved - 07 Aug 2025 Bryan H. Montgomery, City Manager Approved - 08 Aug 2025

Page 3 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 192 of 1094

CITY OF INDIO COMMERCIAL LEASE AGREEMENT
SINGLE-TENANT - 45130 OASIS STREET

This Commercial Lease Agreement (this “Lease”), dated the 20th day of August, 2025, for reference purposes only, is made by and between the CITY OF INDIO , a California municipal corporation (“Landlord”), and PORC HOSPITALITY, LLC , a California limited liability company, (“Tenant”). Landlord and Tenant are sometimes referred to in this Lease individually as a “Party”, and collectively as “Parties.”

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

1.1 Premises. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, in accordance with the terms and conditions of this Lease, space within a building located at 45130 Oasis Street, approximately located as shown by the shaded area and arrow on Exhibit “A” entitled “Lease Plan” (“Premises”).

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

1.3 Term. The lease term shall commence on September 1 , 2025 (“Commencement Date”) and continue for a period of five (5) years and shall expire on August 31, 2030 (“Expiration Date”) unless terminated earlier pursuant to provisions herein.

Notwithstanding the lease term stated above, Landlord and Tenant agree that, upon mutual consent, the lease may be extended to a total term of six (6) years, provided Tenant meets specific performance milestones. These milestones shall include adherence to the construction timeline and opening to the public by the date mutually agreed upon in writing. If Tenant fails to meet these milestones, Landlord shall have the right to terminate the lease at the conclusion of the fourth (4th) lease year.

Tenant shall have the option to renew the lease f or an additional two (2) years and shall give one hundred eighty (180) days written notice prior to the Expiration Date. Parties shall negotiate in good faith the monthly rental amount for that renewal, the first year of which shall be 3-5% above the monthly rental amount in the preceding lease year.

1.4 Due Diligence Period . Notwithstanding anything herein to the contrary, Tenant shall have a period of twelve (12) months from the Term Commencement of the Lease (“Due Diligence Period”) to conduct due diligence activities, including making all Tenant Improvements, conducting any inspections, testing, investigations, studies, obtaining of permits, variances and approvals that are reasonably necessary to build and operate the Premises as a full -service restaurant. Tenant shall have a right of access to the Premises during the Due Diligence Period.

Tenant acknowledges that all of the terms and conditions of this Lease shall apply during the Due Diligence Period, including, without limitation, the insurance and indemnification requirements herein. Tenant shall promptly repair any and all damage to the Premises caused by the inspections,

Page 4 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 193 of 1094 2 testing, investigations, and studies permitted by this Section. Should Tenant be unable to obtain Permits within the Due Diligence Period, parties may extend the Due Diligence Period by written amendment to this Lease.

1.5 Monthly Rent. Tenant shall pay to Landlord, commencing on September 1, 2026, the following sums as Monthly Rent. Monthly Rent shall be paid in the matter specified in Section

3.1 of this Lease, entitled “Payment of Rent.”

September 1, 2025 to August 31, 2030 - $675 per month

1.6 Security Deposit. Tenant shall deposit with Landlord a security deposit for the Premises in the amount of Three Thousand Dollars ($3,000) (“Deposit”). The Deposit shall be subject to the terms and conditions contained in Section 3.3 of this Lease.

1.7 Permitted Use. Tenant agrees to use the Premises for the following purpose(s), and for no other purpose: Full-service restaurant.

1.8 Tenant Improvements. Landlord shall grant to Tenant an allowance of up to Fifty Thousand Dollars ($50 ,000) (“Tenant Improvement Allowance”) for the construction of improvements, as set forth in the Schedule of Performance in Exhibit “C,” attached hereto and incorporated herein (“Tenant Improvements”), as follows:

A. 20 Percent (20%): Ten Thousand Dollars ($10,0 00) upon the issuance of building permits.

B. 60 Percent (60%): An amount not to exceed Thirty Thousand Dollars ($30,000) upon receipt by Landlord of “adequate documentation” of Tenant’s expenses for Tenant Improvements, not to be paid more often than monthly.

C. 20 Percent (20%): Ten Thousand Dollars ($10,000) upon thirty (30) days of opening, provided all lien releases are in place and are approved by Landlord in its sole and absolute discretion.

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

ARTICLE II
CONDITION OF PREMISES; DELIVERY OF PREMISES

2.1 Condition of Premises . Tenant has examined the Premises and agrees to take possession of the Premises in an “as is” condition. Tenant hereby acknowledges: (a) that it has been advised to satisfy itself with respect to the condition of the Premises (including but not limited to the electrical and fire sprinkler systems, security, environmental aspects, seismic and earthquake

Page 5 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 194 of 1094 3 requirements, and compliance with the Americans with Disabilities Act), and applicable zoning, municipal, county, state and federal laws, ordinances and regulations and any covenants or restrictions of record (collectively “Applicable Laws”) and the present and future suitability of the Premises for Tenant’s intended use; (b) that Tenant has made such investigation as it deems necessary with reference to such matters, is satisfied with reference thereto, and assumes all responsibility therefore as the same relate to Tenant’s occupancy of the Premises and/or the terms of this Lease; and (c) that neither Landlord, nor any of Landlord’s agents, has made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease.

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

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

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

Tenant hereby waives any claim for damages, including but not limited to interference with business, lost profits, and any other incidental or consequential damages of any sort whatsoever, for any injury or inconvenience to or interference with Tenant’s business, any loss of occupancy or quiet enjoyment of the Premises or any other loss occasioned by such entry. Landlord shall at all times have and retain a key with which to unlock all of the doors in or about the Premises

Page 6 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 195 of 1094 4 (excluding Tenant’s vaults, safes, and similar areas designated in writing by Tenant in advance); and Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency in order to obtain entry to the P remises, and any entry to the Premises obtained by Landlord by any of said means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into or detainer of the Premises or an eviction, actual or constructive, of Tenant from the Premises or any portion thereof.

No provision of this Lease shall be construed as obligating Landlord to perform any repairs, alterations, or improvements except as otherwise expressly agreed to be performed by Landlord in this Lease.

2.4 Vehicle Parking. Intentionally Omitted.

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

3.1 Payment of Rent. Monthly Rent shall be paid in advance on or before the first calendar day of each month during the Term. If the Term commences on a calendar day other than that first calendar day of the month or ends on a calendar day other than that last calendar day of a calendar month, then Monthly Rent will be appropriately prorated by Landlord based on the actual number of calendar days in such month. If the Term commences on a calendar day other than the first calendar day of a calendar month, then the prorated Mont hly Rent for such month shall be paid on or before the first calendar day of the Term. Monthly Rent shall be paid to Landlord without written notice or demand, and without offset, in lawful money of the United States of America at Landlord' s address, or t o such other address as Landlord may from time to time designate in writing.

3.2 Rent Adjustment and Improvements. In consideration of the twelve months’ rent abatement provided for in section 1.5 hereof, Tenant will, at its sole cost and expense, design and construct tenant improvements for a full -service restaurant [example: design and perform tenant improvements to upgrade and replace the HVAC system ]. All changes are subject to the City’s written approval.

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

Page 7 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 196 of 1094 5 A. Tenant specifically waives the provisions of California Civil Code Section 1950 which provides that Landlord may claim from a security deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant , or to claim the Premises. Landlord and Tenant agree that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other foreseeable or unforeseeable loss or damage caused by the act or omissions of Tenant or Tenant's officers, agents, employees, independent contractors, or otherwise.

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

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

ARTICLE IV
USE; COMPLIANCE WITH LAWS; NON-DISCRIMINATION

4.1 Use. The Premises shall be used only for the purposes set forth in Section 1.7 and purposes incidental to that use and in accordance with the General Rules and Regulations attached hereto as Exhibit “B.” Tenant shall use the Premises in a careful, safe, and proper manner and shall not use the Premises for any disreputable business or purpose. Tenant shall not use or permit the Premises to be used or occupied for any purpose or in any manner prohibited by any applicable law, ordinance order, rule, regulation, or other governmental requirement. Tenant shall not commit waste or suffer or permit waste to be committed in, on, or about the Premises. Tenant shall conduct its business and control its employees, agents , and invitees in such a manner so as not to create a nuisance or a risk of fire or other hazard, or that would violate, suspend, void, or increase the rate

Page 8 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 197 of 1094 6 of fire or liability or any other insurance of any kind at any time carried by Landlord upon the Premises.

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

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

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

Page 9 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 198 of 1094 7 A. Tenant shall immediately notify Landlord in writing and provide copies upon receipt of all written complaints, claims, citations, demands, inquiries, reports , or notices relating to the condition of the Premises or compliance with Environmental Laws. Tenant shall promptly cure and have dismissed with prejudice and of those actions and proceedings to the satisfaction of Landlord. Tenant shall keep the Premises free of any lien imposed pursuant to and Environmental Law.

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

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

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

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

Page 10 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 199 of 1094 8 release of Hazardous Materials on, in, under or affecting all or any portion of the Premises.

Tenant’s indemnification shall survive the expiration and termination of this Lease.

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

ARTICLE V

TAXES AND UTILITIES

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

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

Page 11 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 200 of 1094 9 ARTICLE VI
INSURANCE; INDEMNIFICATION; WAIVER AND RELEASE

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

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

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

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

D. Automobile Liability: Covering any auto, or if Tenant has no owned autos, hired, and non-owned autos, with limits no less than the amount required by law per accident for bodily injury and property damage.

Page 12 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 201 of 1094 10 E. Plate Glass Insurance: Plate glass insurance covering all plate glass on the Premises at full replacement value; provided that Tenant shall be permitted to self -insure plate glass insurance.

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

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

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

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

A. Names Landlord and any other entities designated by Landlord as additional insureds under the Commercial General Liability policy;

B. Shall not be canceled or altered without thirty (30) calendar day’s prior written notice to Landlord;

C. Insures performance of Tenant’s indemnity set forth in this Lease;

D. Provide that no act or omissions of Tenant shall affect or limit the obligations of the insurer with respect to other insureds or including Landlord;

E. Include all waiver of subrogation rights endorsements necessary to a ffect the provisions below; and

Page 13 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 202 of 1094 11 F. Provide that the commercial general liability policy and the coverage provided shall be primary, that Landlord although an additional insured, shall nevertheless be entitled to recovery under such policy for any damage to Landlord by reasons of acts or omissions of Tenant, and that coverage carried by Landlord shall be noncontributory with respect to policies carried by Tenant.

6.4 Mutual Waiver of Subrogation . The Parties hereto release each other and their respective authorized employees, agents, and representatives, from any and all claims, demands, loss, expense, or injury to any person, or to the Premise or to personal property, including, but not limited to, furnishings, fixtures or equipment located therein, caused by or resulting from perils, events, or happenings which are the subject of insurance in force at the time of such loss. Each Party shall cause each insurance policy obtained by it to provide t hat the insurer waives all right of recovery by way of subrogation against either party in connection with any damage covered by any policy. Neither Party shall be liable to the other for any damage caused by fire or any of the risks insured against under any insurance policy in effect as required by this Lease.

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

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

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

B. Any work performed on the Premises or materials furnished to the Premises at the instruction or request of Tenant; and

C. Tenant’s failure to perform any provision of this Lease, or to comply with any requirement of local, state , or federal law or any requirement imposed on Tenant or the Premises by any duly authorized governmental agency or political subdivision.

6.7 Waiver and Release. Tenant waives and releases all claims against Landlord, its employees, and agents with respect to the matters for which Landlord has disclaimed liability pursuant to the provisions of this Lease. In addition, Tenant agrees that Landlord, its elected and appointed officials, employees, agents, successors and assigns shall not be liable for any loss,

Page 14 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 203 of 1094 12 injury, death, or damage (including consequential damages) to persons, property, or Tenant’s business occasioned by theft; acts of God; public enemy; injunction; riot; strike; insurrection; war; terrorism; court order; order of governmental body or authority; earthquake; fire; explosion; falling objects; water; rain; snow; leak or flow of water, or by dampness or from the breakage , leakage, obstruction, or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning, or light fixtur es; or from construction, repair, or alteration of the Premises; or from any acts or omissions of any visitor of the Premises; or from any cause beyond Landlord’s control.

ARTICLE VII
REPAIRS AND MAINTENANCE; ALTERATIONS

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

Additionally, if any utility infrastructure serving the Premises —such as water lines, drainage systems, sewer tie-ins, or electrical service—requires upgrading or replacement, the cost of such improvements shall be shared equally between Landlord and Tenant, with each party responsible for fifty percent (50%) of the cost, provided such upgrades will benefit the long-term functionality and value of the building. The Tenant shall obtain a minimum of three bids for the work and Landlord shall have final approval of the contractor selected.

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

A. No later than ninety (90) day following the effective date of this Agreement, Tenant shall be responsible for preparing all necessary plan documents and any and all other information required pursuant to Indio City Code Chapter 151, et. seq. and submit such documents to the Comm unity Development and/or Building Departments of the City of Indio in order to obtain a building permit for all alterations, improvements, or additions in, on or about the Premises contemplated by this Agreement and further described in Section 1.8 of this Agreement. Tenant’s failure to comply with this timeline shall be deemed a breach of the Agreement; and further, under no circumstances shall Tenant’s failure to comply with this provision extend the period of time within which Tenant must initiate payment of rent, as further described and specified in Section

1.5 of this Agreement.

B. All alterations, improvements , or additions in, on or about the Premises, whether temporary or permanent in character, shall immediately become Landlord’s property and

Page 15 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 204 of 1094 13 at the expiration of the Term of this Lease shall remain on the Premises without compensation to Tenant.

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

7.3 Mechanic’s Liens. Tenant shall pay or cause to be paid all costs and charges for:
(i) work done by Tenant or caused to be done by Tenant, in or to the Premises, and (ii) all materials furnished for or in connection with such work. Tenant shall indemnify the Landlord against and hold the Landlord and the Premises free, clear and harmless of and from any liens or claims of liens arising out of any work performed, materials furnished, or obligations incurred by the Tenant, and Tenant shall be responsible for the removal of any such liens and all costs to remove same.

Failure to remove any such liens within thirty (30) calendar days of written request by Landlord shall constitute a default of this Lease. At its election, but without having any obligation to do so, the Landlord may pay such liens not so removed by the Tenant and the amount expended by Landlord shall be paid by Tenant within fifteen (15) calendar days after delivery of a statement for the expense.

7.4 Landlord Obligations. Landlord shall be responsible for maintenance and repair of the heating, ventilation, and air conditioning systems for the Premises and general, mechanical, electrical, lighting, plumbing systems, structural roof, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors, fixtures and appurtenances to the Premises.

Notwithstanding the foregoing, Landlord will be responsible for repairs and maintenance of latent defects within the Premises.

ARTICLE VIII
DAMAGE AND DESTRUCTION; CONDEMNATION

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

8.2 Condemnation. If all or any part of the Premises shall be condemned or taken as a result of the exercise of the power of eminent domain, including any conveyance or assignment in

Page 16 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 205 of 1094 14 lieu of any condemnation or taking, this Lease shall terminate as to the part so taken as of the date of taking, and in the case of a partial taking, either Landlord or Tenant shall have the right to terminate this Lease as to the balance of the Premises by notice to the other within thirty (30) calendar days after the date of such taking; provided, however, that a condition to the exercise by Tenant of such right to terminate shall be that the portion of the Premises taken shall be of such extent and nature as substantially to handicap, impede or impair Tenant’s use of the balance of the Premises. In any event, Landlord shall be entitled to any and all compensation, damages, income, rent, awards and any interest therein whatsoever which may be paid or made in connection therewith, and Tenant shall have no claim against Landlord for the bonus value of any unexpired Term of this Lease or otherwise; provided, however, that nothing herein shall prevent Tenant from pursuing a separate award against the taking ent ity, specifically for its relocation expenses or for the taking of any personal property or trade fixtures belonging to Tenant, so long as such separate award to Tenant does not diminish any award otherwise due Landlord as a result of such condemnation or taking.

ARTICLE IX
ASSIGNMENT; SUBLETTING; PROCESSING

9.1 Assignment and Subletting. Tenant shall not assign, mortgage, pledge, encumber, or hypothecate this Lease or any interest herein (directly, indirectly, voluntarily, or involuntarily, by operation of law, or otherwise) or sublet the Premises or any part thereof, or permit the use of the Premises by anyone other than Tenant without the prior written consent of Landlord first being obtained. If Tenant is a corporation, a limited liability company or a partnership, the transfer (as a consequence of a single transaction or any number of separate transactions) of fifty percent (50%) or more of the beneficial ownership interest of the voting stock of Tenant issued and outstanding as of the date hereof, the membership interests in Tenant or the partnership interests in Tenant, as the case m ay be, shall constitute an assignment hereunder for which such consent is required.

Further, Tenant shall not assign this Lease or sublet the Premises or any portion thereof to any corporation which controls, is controlled by or is under common control wit h Tenant, or to any corporation resulting from merger or consolidation with Tenant, or to any person or entity which acquires all the assets as a going concern of the business of Tenant that is being conducted on the Premises, without the prior written consent of Landlord. Any of the foregoing acts without such consent shall be void and, at the sole option of Landlord, constitute an Event of Default entitling Landlord to terminate this Lease and to exercise all other remedies available to Landlord under this Lease and at law.

A. In the event that Tenant should desire to sublet the Premises or any part thereof, or assign this Lease, Tenant shall provide Landlord with written notice of such desire at least sixty (60) calendar days in advance of the proposed effective date of such subletting or assignment. Such notice shall include: (i) the name of the proposed subtenant or assignee; (ii) the nature of business to be conducted by the proposed subtenant or assignee in the Premises; (iii) the terms and conditions of the proposed assignment or sublease including but not limited to a detailed description of all compensation in cash or otherwise which Tenant would be entitled to receive in

Page 17 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 206 of 1094 15 connection with such assignment or sublease; and (iv) the most recent financial statements or other financial information concerning the proposed subtenant or assignee as Landlord may require. At any time within thirty (30) calendar days following receipt of Tenant’s notice, Landlord may by written notice to Tenant elect to: (i) terminate this Lease as to the space affected by the proposed subletting or assignment, as of the effective date of the proposed subletting or assignment; (ii) consent to the proposed subletting of the Premises or assignment of this Lease; or (iii) disapprove of the proposed subletting or assignment. Landlord may elect to terminate this Lease as to the space affected by the proposed assign or subletting in its sole and absolute discretion. If Landlord does not elect to terminate this Lease, however, Landlord shall not unreasonably withhold its consent to a proposed subletting or assignment.

B. Subject to obtaining Landlord’s consent in accordance with the requirements of Section 9.1, in order for any assignment or sublease to be binding on Landlord, Tenant must deliver to Landlord, promptly after execution thereof, an executed copy of such sublease or assignment whereby the subtenant or assignee shall expressly assume all obligations of Tenant under this Lease as to the portion of the Premises subject to such assignment or sublease.

Any purported sublease or assignment will be of no legal force or effect unless and until the proposed sublease has been consented to, in writing, by Landlord and a fully executed copy thereof has been received by Landlord.

C. Regardless of Landlord’s consent, no subletting or assignment shall release Tenant or any guarantor of Tenant, of its or their obligations, or alter the primary liability of Tenant and its guarantor(s), if any, to provide Monthly Rent and to perform all other obligations to be performed by Tenant hereunder. The acceptance of payments by Landlord from any other person shall not be deemed to be a waiver by Landlord of any provision hereof. Consent to one assignment or subletting shall not be deemed consent to any subsequent or further assignment, subletting, hypothecation or third party use or occupancy. In the event of default by any assignee or successor of Tenant in the performance of any of the terms of this Lease, Landlord may proceed directly against Tenant and/or its guarantor(s), if any, without the necessity of exhausting remedies against said assignee or successor. Landlord may consent to subsequent assignments or subletting of this Lease or amendments or modifications to this Lease with assignees of Tenant, without notifying Tenant and/or its guarantor(s), if any, or any successor of Tenant, and without obtaining its or their consent thereto and such action shall not relieve Tenant and/or its guarantor(s), if any, or any successor of Tenant of liability under this Lease.

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

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

Page 18 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 207 of 1094 16 ARTICLE X
HOLDING OVER; SALE OF PREMISES; TERMINATION

10.1 No Right to Holdover. Tenant has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. If, without objection by Landlord, Tenant holds possession of the Premises after expiration of the Term, Tenant shall become a Tenant from month- to-month upon the terms herein specified, except that the monthly rent shall equal to one hundred and fifty percent (150%) of the monthly rent payable by Tenant at the expiration of the Term. In addition, Tenant shall continue to pay al l other amounts due to Landlord hereunder. Each Party shall give the other notice at least one (1) month prior to the date of termination of such monthly tenancy of its intention to terminate such tenancy. If, after objection by Landlord thereto, Tenant holds possession of the Premises after expiration of the Term, Tenant shall constitute a Tenant at sufferance and without in any way waiving the wrongful holding over of the Premises by Tenant, Landlord shall be entitled to receive for each month or portion thereof during which Tenant wrongfully holds over at the Premises monthly rent equal to two hundred percent (200%) of the monthly rent payable by Tenant at the expiration of the Term together with all other amounts otherwise due to Landlord hereunder. Landlord' s receipt of increased monthly rent under this Section 10.1 shall not constitute an extension of the Term nor shall it constitute a waiver of Tenant' s wrongful holding over and shall not prejudice any other rights or remedies available to Landlord under this Lease or by law.

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

10.3 Early Termination of Tenancy. Intentionally Omitted

ARTICLE XI
SUBORDINATION; ESTOPPEL CERTIFICATES

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

Page 19 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 208 of 1094 17 instruments in the name of and on behalf of Tenant if Tenant fails to so execute, acknowledge and deliver such instruments within ten (10) calendar days after written request therefore.

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

ARTICLE XII
DEFAULT; REMEDIES; DISPUTE RESOLUTION

12.1 Default; Breach.

A. Default. A “Default” by Tenant is defined as a failure by Tenant to observe, comply with, or perform any of terms, covenants, conditions, or rules applicable to Tenant under this Lease, and shall include but not be limited to:

(1) Failure to provide the Monthly Rent set forth in Section 1.5 or other amounts owing pursuant to the terms of this Lease.

(2) Vacation or abandonment of the Premises or a disruption in services for a period time exceeding five (5) calendar days.

(3) Failure by Tenant to provide Landlord with reasonable evidence of insurance required under this Lease.

(4) Failure by Tenant to timely deliver to Landlord any instrument or assurances required pursuant to this Lease, including an estoppel certificate pursuant to Section

11.2 of this Lease.

(5) Failure by Tenant to provide Landlord with reasonable written evidence (in duly executed original form, if applicable) of compliance with Applicable Requirements and Applicable Laws when requested.

(6) Occurrence of any of the following events: (i) the making by Tenant of any general arrangement or assignment for the benefit of creditors; (ii) Tenant’s becoming a “debtor” as defined in 11 U.S. Code Section 101 or any successor statute thereto (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Tenant ’s assets located at the Premises or of Tenant ’s interest in this L ease, where possession is not restored to Tenant within thirty (30) days; or (iv) the attachment, execution , or other judicial seizure of substantially all of

Page 20 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 209 of 1094 18 Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged within thirty (30) days; provided, however, in the event that any provision of this Subparagraph 12.1(A)(6) is contrary to any applicable law, such provision shall be of no force or effect, and shall not affect the validity of the remaining provisions.

(7) Failure of Tenant to fulfill any obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of one (1) calendar day following written notice thereof by or on behalf of Landlord to Tenant.

(8) Tenant making or furnishing any warranty, representation, or statement to Landlord in connection with this Lease, or any other agreement made by Tenant for the benefit of Landlord, which is or was false or misleading in any material respect when made or furnished.

(9) Assignment or sublease of this Lease or any portion of the Premises, or attempt to assign or sublease this Lease or any portion of the Premises, by Tenant in violation of Section 9.1.

(10) Tenant committing waste on the Premises.

(11) Failure of Tenant to otherwise perform, satisfy, or abide by any of the terms, covenants, conditions, or provisions of this Lease.

B. Breach. In the event that Tenant is in Default of this Lease, Landlord shall notify Tenant in writing of the nature of the Default and of the corrective action to be taken. If corrective action is not commenced within ten (10) business days after receipt of written notice and not completed within thirty (30) days thereafter, or longer, if Tenant is diligently pursing corrective action, such failure by Tenant shall constitute a “Breach,” and Landlord may pursue those remedies set forth in Section 12.2.

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

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

In the event of such termination of the Lease, Landlord may recover from Tenant:

(1) The worth at the time of award of the unpaid rent which had been earned at the time of termination, including interest at the maximum rate allowed by law;

(2) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of the award exceeds

Page 21 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 210 of 1094 19 the amount of such rental loss that Tenant proves could have been reasonably avoided, including interest at the maximum rate allowed by law;

(3) The worth at the time of award of the amount by which the unpaid rent for the balance of the Term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; and

(4) Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant' s failure to perform its obligations under this Lease or which, in the ordinary course of things, would be likely to result therefrom.

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

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

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

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

12.3 Continuation after Breach. Even though Tenant has breached this Lease and/or abandoned the Premises, this Lease shall continue in full force and effect for so long as Landlord does not terminate Tenant’s right to possession as provided in Section 12.2 above, and Landlord

Page 22 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 211 of 1094 20 may enforce all its rights and remedies under this Lease. In such event, Landlord may exercise all of the rights and remedies of a Landlord under California Civil Code Section 1951.4, or any successor statute. Acts of maintenance or preservation or efforts to re- let the Premises or the appointment of a receiver upon initiative of Landlord to protect Landlord’s interest under this Lease shall not constitute a termination of Tenant’s right to possession.

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

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

12.6 Dispute Resolution. Any dispute arising out of or relating to this Lease, or breach thereof, shall be first submitted to the senior management of each Party for resolution during a thirty (30) calendar day dispute resolution period. Notice must be in writing and served pursuant to Section 13.1 herein. The foregoing dispute re solution period shall run concurrently with any notice and cure periods provided for herein.

ARTICLE XIII

GENERAL PROVISIONS

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

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

Page 23 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 212 of 1094 21 To Landlord: To Tenant:

City of Indio PORC HOSPITALITY, LLC
100 Civic Center Mall 78795 Birchcrest Circle
Indio, CA 92201 La Quinta, CA 92253
Attn: City Manager Attn: Ysaac Ramirez & James Baugh

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

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

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

13.4 Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

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

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

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

Page 24 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 213 of 1094 22 13.8 No Merger. The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not work as a merger, and shall, at the option of Landlord, terminate all or any existing subleases or sub- tenancies, or may, at the option of Landlord, operate as an assignment to it of any or all such subleases or sub-tenancies.

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

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

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

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

13.13 Incorporation of Exhibits. Each of the Exhibits to this Lease are incorporated by reference as though fully set forth herein.

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

(Signatures on following page)

Page 25 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 214 of 1094

IN WITNESS WHEREOF, the Parties hereto have executed this Lease as of the calendar day and year written below.

LANDLORD:

CITY OF INDIO, a California
municipal corporation

By: ____________________________
Bryan H. Montgomery
City Manager

Date: __________________________

ATTEST:

By: _____________________________
Sabdi Sanchez
Director of City Clerk Services

Date: ___________________________

APPROVED AS TO FORM:

By: ____________________________
Steven G. Pacifico
City Attorney

Date: ___________________________

TENANT:

PORC HOSPITALITY, LLC, a California
limited liability company

By: ____________________________
Ysaac Ramirez
Managing Partner

Date: ___________________________

By: ____________________________
James Baugh
Managing Partner

Date: ___________________________

Page 26 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 215 of 1094

2 EXHIBIT “A”

Premises/Lease Plan

(Inserted behind this page)

Page 27 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 216 of 1094

3 Premises

Page 28 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 217 of 1094

4 EXHIBIT “B”

General Rules and Regulations

1. Business shall operate at a minimum of five (5) days per week and at least six (6) hours per day

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

3. All trash, refuse and waste materials shall be stored in adequate containers, approved by Landlord and regularly removed from the Premises. These containers shall not be visible to the general public and shall not constitute a health or fire hazard or nuisance to any tenant. In the event that any tenant shall fail to remedy such a health or fire hazard or nuisance within five (5) days after written notice by Landlord, Landlord may remedy and/or correct such health or fire hazard or nuisance at the expense of Tenant.

Tenant must obtain a separate temporary dumpster to receive its move -in merchandising debris, and construction debris from any tenant improvements or alterations. Should it be necessary for Landlord to have Tenant's solid or liquid rubbish cleaned up, the cost for such cleaning shall be charged back to Tenant along with an administrative fee of fifteen per cent (15%).

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

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

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

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

8. No portion of the Premises shall be used for the storage of any merchandise, materials or other properties, other than those reasonably necessary for the operation of Tenant's business. Landlord may, from time to time, inspect the Premises to ensure compliance with the foregoing provisions.

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

10. Landlord shall have the absolute right to enter upon the Premises to perform such cleaning and clearing of the pipes and drains servicing the Premises (including roto-

Page 29 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 218 of 1094

5 rooter service), and any grease traps and exhaust systems servicing the Premises, as Landlord shall deem necessary.

11. If Tenant shall operate a carry -out food operation, including food and/or soft drink vending machines as well as any ice cream store, Tenant shall pay Landlord for all sidewalk and walkway cleanup work (including without limitation steam cleaning), that Landlord shall determine is necessary to preserve the sanitation, cleanliness and clean appearance of the Center. Tenant shall pay Landlord on an estimated month basis, adjusted annually, and will be responsible for a cleanup of not less than one hundred feet (100') in radius from the entrance(s) to the Premises.

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

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

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

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

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

17. Tenant shall be responsible for assuring that doors to the Premises are not left unlocked during non-business hours, except while moving furniture or other items in or out of the Premises.

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

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

Page 30 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 219 of 1094

6 EXHIBIT “C”

Schedule of Performance

To be included prior to the execution of the agreement

Page 31 of 31 ends

Commercial Lease Agreement with Porc Hospitality, LLC located at 45130 O... Page 220 of 1094 City of Indio
City Council
August 20, 2025

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Reymundo Trejo, P.E., IWA General Manager
Subject: Award of a Professional Services Agreement to Sierra Controls, LLC. in a Not-to-Exceed On-Call for Year Fiscal SCADA $150,000 of Amount per Integration, Support, and Programming Services for Fiscal Years 2025-2026, 2026-2027, and 2027-2028, with Two Optional One-Year Extensions

RECOMMENDATION:

IWA recommends that the City Council/IWA Board award a Professional Services Agreement to Sierra Controls, LLC in a not-to-exceed amount of $150,000 per fiscal year for on-call SCADA integration, support, and programming services for Fiscal Years 2025-2026, 2026-2027, and 2027- 2028, with two optional one-year extensions, and authorize the Executive Director to execute the agreement.

SUMMARY:

On June 2nd, 2025, the Indio water Authority release a Request for Qualifications for On-Call SCADA formal the with accordance in and Programming Support, Integration, Services, procurement procedures. IWA received three proposals on June 17th 2025. A review committee scored the proposals based on qualifications criteria and determined that Sierra Controls was the most qualified contractor. Staff recommends Sierra Controls for the on-call SCADA integration program.

BACKGROUND INFORMATION:

Since 2001, IWA has depended on the SCADA system to help its operator’s control the production and distribution of water throughout the IWA service area. SCADA allows more efficient use of resources by automating data gathering and allowing computers to automatically make adjustments to the system based on established operating protocols. The SCADA system allows for real-time assessments of the production and distribution system operation. On-call personnel have the ability to access the system remotely via a computer or mobile device, which enables them to view any challenges within the monitored system during working/non-working hours and respond immediately in an emergency event.

The Indio Water Authority (IWA) currently operates four well/booster plants, nine independent wells, two booster stations at Terra Lago and Shadow Lake, and a reservoir at Lost Horse that are remotely monitored and controlled by a Supervisory Control and Data Acquisition system (SCADA).

Under the terms of the proposed agreement, Sierra Controls, LLC (Sierra Controls) will provide a variety of services. The services consist of emergency callout and preventive maintenance program, which includes remote terminal units (RTU’s) and database maintenance. These services AGENDA ITEM #9.9
Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 221 of 1094 are vital to the operation of the IWA water production and distribution system and part of the ongoing SCADA Update and Maintenance Program.

FINANCIAL SUMMARY:

Current FY Financial
Impact:
$150,000 In current year budget: Yes
Current FY General
Fund Impact:

N/A Budget adjustment: No
Next FY Financial
Impact:
$150,000 Strategic Objective: Public Infrastructure
Source of funds: Water Production Budget Fund-Org-Object Reference:
8106712-521064 - Other
Prof & Tech Services

Additional Financial Details:

This agreement is for a not-to-exceed amount of $150,000 per fiscal year for three years, totaling $450,000, with two optional one-year extensions potentially increasing the total value to $600,000 over five years. Funds are budgeted annually within the IWA Production Budget.

Not-to-Exceed Amount: $150,000

Funds are available in the Fiscal Year 2025-26 IWA Operating Budget Org/Obj. 8106712-521064 (Other Prof & Tech Services) for services specified in this agreement.

ATTACHMENTS:

Attachment 1 - 2025 PSA Sierra Controls LLC

APPROVAL(S):

Reymundo Trejo, P.E., IWA General Manager Approved - 05 Aug 2025 Steven Graham Pacifico, City Attorney Approved - 07 Aug 2025 Ruby D. Walla, Director of Finance Approved - 07 Aug 2025 Bryan H. Montgomery, City Manager Approved - 08 Aug 2025

Page 2 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 222 of 1094

Page 3 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 223 of 1094

Page 4 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 224 of 1094

Page 5 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 225 of 1094

Page 6 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 226 of 1094

Page 7 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 227 of 1094

Page 8 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 228 of 1094

Page 9 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 229 of 1094

Page 10 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 230 of 1094

Page 11 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 231 of 1094

Page 12 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 232 of 1094

Page 13 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 233 of 1094

Page 14 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 234 of 1094

Page 15 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 235 of 1094

Page 16 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 236 of 1094

Page 17 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 237 of 1094

Page 18 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 238 of 1094

Page 19 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 239 of 1094

Page 20 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 240 of 1094

Page 21 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 241 of 1094

Page 22 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 242 of 1094

Page 23 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 243 of 1094

Page 24 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 244 of 1094

Page 25 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 245 of 1094

Page 26 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 246 of 1094

Page 27 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 247 of 1094

Page 28 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 248 of 1094

Page 29 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 249 of 1094

Page 30 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 250 of 1094

Page 31 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 251 of 1094

Page 32 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 252 of 1094

Page 33 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 253 of 1094

Page 34 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 254 of 1094

Page 35 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 255 of 1094

Page 36 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 256 of 1094

Page 37 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 257 of 1094

REQUEST FOR QUALIFICATIONS

For

ON-CALL SCADA INTEGRATION, SUPPORT AND PROGRAMMING SERVICES [the “Project”]

Date of Issuance: Thursday, June 19, 2025

RESPONSES MUST BE RECEIVED NO LATER THAN

3:00 pm, Thursday, July 10, 2025

DELIVER OR MAIL TO:

Indio Water Authority
Attn: Francine Archuleta
Water Administrative Coordinator
Indio Water Authority
83-101 Avenue 45
Indio, CA 92201

Page 38 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 258 of 1094 2 I. PURPOSE

Indio Water Authority (“IWA”) is seeking qualified SCADA service providers to furnish on -call supervisory control and data acquisition (SCADA) services. These services include, but are not limited to, SCADA system installation, upgrades, integration, programming, troubleshooting, on - call support, and training under a three (3) year contract, with two (2) optional one-year extensions at IWA’s discretion. WA intends to enter into agreements with the highest qualified SCADA service provider after all submittals are evaluated and negotiations completed. The selected contractor must have adequate knowledge of requirements of local, State, and Federal projects. Prior experience working in the Coachella Valley is preferred but not required.

II. BACKGROUND

Indio Water Authority is a joint powers authority between the City of Indio and Indio Housing Authority with a Board/Executive Director form of government. The City of Indio is located in Riverside County, approximately 120 miles east of Los Angeles and approximately 30 miles east of the City of Palm Springs. Indio, along with nine other cities comprises a geographical area commonly known as “The Coachella Valley.” Indio is the largest city in the Coachella Valley with a growing population of over 93,000 residents. Indio Water Authority has approximately 25,500 service connections, has ample capacity to meet system demands and continues to grow. Known as the “City of Festivals,” Indio is the home of 8 major annual festivals and a host of highly - acclaimed events that bring culture, music, sports, entertainment, and a variety of cuisine to thousands of visitors each year.

IWA’s SCADA system are critical to daily operations, including remote monitoring and control of wells, reservoirs, booster stations, and treatment facilities. Since 2001, IWA has depended on a Supervisory Control and Data Acquisition (SCADA) system to help its operators control the production and distribution of water throughout the IWA service area. SCADA is a large, proprietary system that is custom tailored by a systems integrator to match a customer’s needs .

The IWA’s SCADA system allows for the remote operation and monitoring of all controllable and intelligent devices at water production and distribution facilities throughout the city including 20 well sites, seven (7) reservoirs, and six (6) booster stations, etc. SCADA allows more efficient use of resources by automat ing data gathering and allowing computers to automatically make adjustments to the system based on established operating protocols. The SCADA system allows for real-time assessments of the distribution system operation. On-call personnel have the ability to access the system remotely via a computer or mobile device, which enables them to view any challenges within the monitored system during working/non -working hours and respond immediately in an emergency event.

III. SCOPE OF SERVICES

Interested Contractors shall address in their submittal their company’s ability to provide the following on-call services if selected by IWA including but not limited to:

(1) ON-CALL SCADA INTEGRATION, SUPPORT, AND PROGRAMMING

a. Assist and perform SCADA system design, programming, and implementation.
b. System integration with existing infrastructure (PLCs, instrumentation, RTUs, etc.).
c. Software and firmware updates.
d. Alarm logic and HMI development.

Page 39 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 259 of 1094 3 e. Troubleshooting and on-call technical support.
f. Cybersecurity compliance and configuration.
g. Training for IWA staff on operation and troubleshooting. h. Documentation of changes, logic, and systems.
i. Provide maintenance for server equipment no longer under warranty, including component replacement on a time and materials basis. j. Replace server equipment with manufacturer- warrantied units during maintenance.
k. Install, configure, and optimize new RTUs and integrate them into the SCADA database on a time and materials basis.
l. Investigate and resolve reported SCADA system issues, including hardware inspection and corrective actions.
m. Provide labor for SCADA system repairs; hardware replacement costs may be covered by the Authority.
n. Notify Authority personnel before starting and upon completing work on SCADA components.
o. Perform SCADA upgrades and integrations; system audits; evaluate Instrumentation and Control (I&C) Systems; control and monitoring interface; data logging; reporting; alarming; training. p. Support engineering projects and recommend elements necessary for SCADA implementation including but not limited to hardware, telemetry devices, communications equipment , electrical infrastructure, programmable logic controls (PLC), human machine interface (HMI), operator interface terminals (OPIT), instrumentation & process controls.
q. Perform telemetry surveys, security and encryption of data and operating systems, electrical and controls system testing and troubleshooting, data collection, and development of standardization for parts, sensors, and components.
r. Respond to reported issues or service requests within two (2) business days.

Services will be issued on a task-order basis. Contractors may be required to respond to emergency service calls within a designated timeframe.

IV. RFQ PROCESS and KEY DATES

Qualifications will be reviewed in a timely manner by a selection committee composed of IWA personnel. The review of submittals will be based on, but not limited to, the following minimum criteria:

i. Each statement of qualification will be reviewed for completeness, responsiveness, and adequacy of documentation.
ii. The Firms understanding of the scope of services and approach to providing service. iii. The qualifications and relevant experience of the Contractor.

Indio Water Authority will be the sole and exclusive judge of quality and compliance with specifications in any of the matters pertaining to this RFQ. The IWA reserves the right to award the contract(s) in any manner it deems to be in the best interest of the IWA and make the selection based on its sole discretion, including negotiating with one or more of the Firms for the same services.

Page 40 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 260 of 1094 4 Deadlines:

Submittal of questions Monday, June 30, 2025, at 3:00 pm Response to questions Wednesday, July 2, 2025, at 3:00 pm Deadline for submittal of proposal Thursday, July 10, 2025, at 3:00 pm

V. QUESTIONS

All questions regarding this RFQ shall be submitted in writing via email at:

[email protected]. The date and time when questions must be submitted by are shown in ”Section IV – RFQ Process and Key Dates” of this RFQ. Substantive questions with their answers will be posted on IWA’s website by the date and time set forth in this RFQ.

VI. SUBMITTAL PROCEDURES

Submittals shall comply with all conditions, requirements and specifications contained herein, with any departure constituting sufficient cause for rejection of the proposal at the IWA’s sole discretion. Any and all costs incurred in the preparation and presentation of this submittal shall be borne solely by the respondent. All submittals received shall become the property of the Indio Water Authority and will not be returned.

All proposal submittals shall be delivered no later than the submittal deadline electronically or via hard copy to:

Attn:

Francine Archuleta
Water Administrative Coordinator
Indio Water Authority
83-101 Avenue 45
Indio, CA 92201
[email protected] & [email protected]

VII. SUBMITTAL FORMAT

All respondents must submit qualifications and costs according to the specifications set forth below. Submittals must be relevant to the specific work required and should not exceed 15 pages of information (excluding cover, back cover, index sheets, rate schedule, and resumes, etc.).

A. Work Proposal

a) Letter of Introduction
i. Provide the name and contact information for Contractor submitting the proposal.

Include a brief description of the Contractor. Identify any sub- consultants and their responsibilities. This letter must bear the signature of the person who has proper authority to make the proposal for the Contractor.

b) Scope of Work
i. Provide a brief synopsis of the Contractor’s ability to provide all the work listed in Section 3, Item 1, experience with Geo SCADA and Ignition, with the Contractor’s manpower and equipment, or through qualified Subcontractors. For each on- call service request, IWA will provide a scope of work.

Page 41 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 261 of 1094 5 c) Qualifications Statement
i. A listing of the Contractor’s project personnel including relevant experience and resumes, Contractor’s office location(s), and other information deemed relevant to the proposal by the Contractor. Address the Contractor's demonstrated familiarity with the required standards, procedures, and regulations.
ii. There shall be one person from your Contractor identified in your proposal who will be the single point-of-contact for IWA. This person will be responsible for the work output of the Contractor; including but not limited to, on-call experience with Geo SCADA and Ignition, and any proposed sub-consultants and other previously listed potential work for the IWA, correspondence with City and IWA personnel, residents, developers, etc., and for attending meetings and addressing SCADA issues at these meetings. This person’s contact information shall be included in the proposal. iii. Identify ability to manage the proposed contract and availability of personnel. iv. Provide a minimum of three (3) references from public agency references with similar projects, preferably in Southern California with preference for agencies of comparable size to IWA.

B. Cost Proposal (In a separate sealed envelope)

a) Rate Schedule
i. In the sealed envelope, Firms are to submit a Rate Schedule that include all personnel and equipment that might be used in the work by classification and hourly billing rates.

Any proposed service fees, travel costs and/or mark-ups on outside services shall also be noted. The Cost Proposal shall note whether there are any changes, or not, to the proposed rate(s) over time. These rates shall remain in effect for the duration of the contract and shall be used to prepare individual on-call services quotes.

VIII. REVIEW OF AGREEMENT FOR PROFESSIONAL SERVICES

IWA’s Agreement for Construction Services is attached for review and comments. Please indicate if the proposed agreement is acceptable to your Contractor and, if not, what specifically is not acceptable with your company’s proposed changes.

IX. GENERAL ADMINISTRATIVE INFORMATION

• Each respondent understands and agrees that IWA, its departments, their officers, employees, or agents shall not be liable for:
i. Any costs incurred by a respondent in the preparation, delivery, or presentation of a proposal.
ii. Any costs incurred by a respondent in meeting the criteria as a result of making or submitting a proposal or subsequently in entering into a formal agreement with IWA; and
iii. Any errors, inaccuracies or misstatements related to the information or data supplied to any consultant by IWA. The use of such information or data provided by the IWA, its officers, employees, or agents is intended to be used at the sole discretion and risk of the Contractor in the preparation of a proposal pursuant to this Request for Qualifications only.
• The selected Contractor(s) shall comply with any and all applicable Federal and State laws pertaining to employment.
• The IWA reserves the right to accept, reject, modify, or cancel in whole or in part, this Request for Qualification.
• The IWA reserves the right to accept or reject any or all proposals, negotiate modifications

Page 42 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 262 of 1094 6 to proposals that it deems acceptable, to request and consider additional information from any proposer, and to waive minor irregularities and technical defects in this proposal process. IWA reserves the right to seek new proposals when it determines that it is in the best interest to do so.

X. SUBMITTAL DUE DATE
The submittal package must be received prior to the submittal date/time specified in "Section IV - RFQ Process and Key Dates" of this RFQ. Firms mailing a proposal must allow sufficient delivery time to ensure timely receipt of the proposal by the date and time specified. Submittals arriving after the deadline will not be considered.

XI. SELECTION PROCESS

Proposals will be reviewed by a selection panel of Indio Water Authority staff. Submittals will be ranked for contract negotiations based upon the materials submitted per the attached "Evaluation Form". The contract will be awarded based on demonstrated competence and qualifications for the type of services to be performed and at fair and reasonable prices to the Indio Water Authority.

Qualifications, not cost, will be the primary competitive measure by which the contract will be awarded. The Indio Water Authority may or may not choose to interview Firms in making their selection.

The Indio Water Authority will open contract negotiations with the top-ranked Firms. The selected Firms will be expected to enter into the attached “Agreement for On Call SCADA Integration, Support, and Programming Services”. The Indio Water Authority reserves the right to waive informalities and to contract with multiple Firms or reject all proposals at its sole discretion. Firms are encouraged to keep their proposals brief and relevant to the specific work required.

Selection Criteria

a. Technical Expertise - 30%
b. Project Personnel Experience – 30%
c. Previous Experience in the Coachella Valley – 10%
d. Responsiveness and ability to meet IWA current and future project needs – 25% e. Unique Qualities (Intangibles) – 5%

XII. AUTHORITY TO WITHDRAW

Indio Water Authority reserves the right to withdraw this Request for Qualification (RFQ) without prior notice and makes no representation that any agreement will be awarded to any Contractor as a result of having responded to this request. IWA expressly reserves the right to reject any and all proposals in response to this RFQ without indicating a reason for such rejection. All costs incurred in the preparation of the proposal, submission of information and/or selection of a proposal prior to the award and/or execution of a signed contract shall be borne by respondent.

All proposals submitted to the Indio Water Authority in response to this RFQ shall become the property of IWA, shall be considered public information, and will not be returned.

XIII. AWARD OF CONTRACT

It is the intent of the Indio Water Authority to award a contract to up to one (1) Firm for three (3) years plus two optional one-year renewals for a possible length of up to five years. The contract work shall be performed on a work assignment (task order) basis as needed by the Indio Water Authority. The contract will be based upon the specific rates of compensation negotiated. Indio

Page 43 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 263 of 1094 7 Water Authority does not guarantee that there will always be sufficient work assignments to reach the maximum contract amount each fiscal year.

ATTACHMENT:

1. Evaluation Form

2. Indio Water Authority Agreement for On-Call SCADA Integration, Support, and Programming

Page 44 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 264 of 1094 8 ATTACHMENT 1

EVALUATION FORM

Page 45 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 265 of 1094 9 RFQ for On-Call SCADA Integration, Support, and Programming Services

RFQ EVALUATION FORM

Contractor:

Reviewer: Date: _______
Score each category from 1 to 10 with 1 being the worst.

Score (1-10) Weight Total
Technical Expertise x.30
Project Personnel Experience x.30
Previous Experience in the Coachella
Valley
x.10
Responsiveness and ability to meet IWA
Current and future project needs

x.25

Unique Qualities (Intangibles) x.05
Total
Unique Qualities (Intangibles):

Other Comments:

TOTAL SCORE:

Reviewer Signature _
Explanation:

Page 46 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 266 of 1094 10 ATTACHMENT 2

INDIO WATER AUTHORITY AGREEMENT
FOR

On Call SCADA Integration, Support, and Programming Services

Page 47 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 267 of 1094

PROFESSIONAL SERVICES AGREEMENT*

BY AND BETWEEN

THE INDIO WATER AUTHORITY,

A JOINT POWERS AUTHORITY

AND

[CONTRACTOR],
A [STATE & TYPE OF CORP]

Form Approved January 7, 2025

Page 48 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 268 of 1094 PSA Revised 1/2025
1 | Page

PROFESSIONAL SERVICES AGREEMENT
FOR [DESCRIPTION OF SERVICES] TO

BETWEEN THE INDIO WATER AUTHORITY AND [COMPANY]

THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into this __ TH day of ___________ , 202_ (“Effective Date”), by and between the INDIO WATER AUTHORITY (“Authority”), a joint powers authority and ___________, a [STATE AND TYPE OF CORP, sole proprietorship, or partnership] (“Consultant”). For the purposes of this Agreement Authority and Consultant are sometimes hereinafter referred to as “Party” and collectively referred to as the “Parties.”

RECITALS

1. Authority has sought by direct contract [or Request for Proposals] the performance of [TYPE OF SERVICES ] services pertaining to [PROJECT , as applicable].

2. Consultant was selected by Authority to perform those services on the basis of Consultant’s demonstrated competence , professional qualifications and licensure necessary for the satisfactory performance of the services required.

3. Pursuant to the Chapter 33.116 of the Indio Municipal Code, the Authority has authority to enter into this Agreement.
a. The Executive Director has the authority to execute this Agreement [$5000 - $75,000 or less] OR
b. The Authority’s Governing Board (“Board”) has the authority to execute this Agreement [over $75,000]

4. The Parties now desire to formalize the selection of Consultant for performance of those services defined and described with particularity 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:

S
ECTION 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 _______ (the “Effective Date”) and continue in effect until the tasks described are completed, but in no event later than 202 _, unless sooner terminated or otherwise

Page 49 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 269 of 1094 PSA Revised 1/2025
2 | Page
extended by written agreement of the Parties. All days set out are calendar days.

(b) The Executive Director may, in his or her sole discretion, unilaterally exercise an option to extend the Agreement on a month- to-month basis following expiration, on the same terms and conditions, including compensation as set forth in Section 4 “Compensation and Method of Payment.”

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

SECTION 2. SCOPE OF SERVICES, SCHEDULE AND SCHEDULE OF PERFORMANCE (a) SCOPE OF SERVICES. Subject to this Agreement, all addendums and exhibits attached and incorporated hereto, Consultant shall at all times faithfully, competently and to the best of their ability, experience and talent perform the services and tasks set forth in Exhibit “A” “Scope of Services” incorporated as if fully set forth here (hereinafter, the “Services”) and the Authority agrees to retain and does hereby retain Consultant to provide 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. Thereafter, the Authority, in its sole discretion, may choose not to enforce Section 21, “Default” of this Agreement and may instead allow Consultant to continue performing the Services.

(c) 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 S ection 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.

S
ECTION 3. AUTHORITY REPRESENTATIVE.

The Authority’s _______ shall represent it in all matters regarding the administration of this agreement, review and approval of all products submitted by consultant, but shall have no authority to enlarge the tasks to be performed.

Page 50 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 270 of 1094 PSA Revised 1/2025
3 | Page
SECTION 4. COMPENSATION AND METHOD OF PAYMENT.
(a) Subject to any limitations set forth in this Agreement, Authority agrees to pay Consultant the amounts specified in Exhibit “B” “Compensation” and made a part of this Agreement by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed [AMOUNT], unless additional compensation is approved in writing in accordance with Section 26 “Administration and Implementation” or Section 28 “Amendment” of this Agreement. Payment shall be made in accordance with Authority’s usual accounting procedures upon receipt and approval of an itemized invoice setting forth the services performed. The invoices shall be delivered to Authority at the address set forth in Section 24, “Notices” hereof. Under no circumstances shall the total amount paid to Consultant under this Agreement exceed the Executive Director’s authority under Indio Municipal Code Section 33.116 (C)(2) without prior approval by the Board.

(b) Each month Consultant shall furnish to Authority an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the following categories: labor (by sub -category), travel, materials, equipment, supplies, and subconsultant contracts.

Subconsultant charges shall be detailed by the following categories: labor, travel, materials, equipment and supplies. If the compensation set forth in subsection (a) and Exhibit “B” include payment for labor on an hourly basis (as opposed to labor and materials being paid as a lump sum), the labor category in each invoice shall include detailed descriptions of tasks performed and the amount of time incurred for or allocated to that task. Authority ’s Representative 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 invoi ce shall be approved and paid according to the terms set forth in subsection (c). In the event any charges or expenses are disputed by Authority , the original invoice shall be returned by Authority to Consultant for correction and resubmission.

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

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

(e) If this Agreement is extended pursuant to Section 1 “Term of Agreement,” the Authority shall pay the same rates specified in Exhibit “B” “Compensation.”

Page 51 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 271 of 1094 PSA Revised 1/2025
4 | Page
SECTION 5. RESERVED
SECTION 6. OWNERSHIP OF DOCUMENTS.

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

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

Page 52 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 272 of 1094 PSA Revised 1/2025
5 | Page
SECTION 7. CONSULTANT’S BOOKS AND RECORDS.
(a) Consultant shall maintain any and all documents and records demonstrating or relating to Consultant’s performance of the Services. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, or other documents or records evidencing or relating to work, services, expenditures and disbursements charged to Authority pursuant to this Agreement. Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and 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 hours, upon request by Authority or its designated representative. Copies of such documents or records shall be provided directly to the Authority for inspection, audit and copying when it is practical to do so; 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 Authority has reason to believe that any of the documents or records required to be maintained pursuant to this section may be lost or discarded due to dissolution or termination of Consultant’s business, Authority may, by written request, require that custody of such documents or records be given to the Authority. Access to such documents and records shall be granted to Authority, as well as to its successors in interest and authorized representatives.

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

(b) The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither Authority , nor any elected or appointed boards, officers, officials, employees or agents of Authority, shall have control over the conduct of Consultant or any of Consultant’s officers, employees, subconsultants or

Page 53 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 273 of 1094 PSA Revised 1/2025
6 | Page
agents except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees, or agents are in any manner officials, officers, employees or agents of Authority. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against or bind Authority in any manner.

(c) Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to Authority’s employees. Except for the fees paid to Consultant as provided herein, the Authority shall not pay salaries, wages or other compensation to consultant for performing services hereunder. The Authority shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 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 in the same geographic area as are 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 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.

S
ECTION 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 Authority. Neither Authority, nor any elected or appointed boards, officers, officials,

Page 54 of 97 ends

Professional Services Agreement with Sierra Controls, LLC. in a Not-to-E... Page 274 of 1094 PSA Revised 1/2025
7 | Page
employees or agents of Authority, 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 Authority or which would in any way hinder Consultant’s performance of the Services. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or 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 Authority (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 Authority 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 Authority in the performance of this Agreement. (b) Authority 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 Authority relative to such projects. Any future position of Authority on such projects shall not be considered a conflict of interest for purposes of this section. (c) Authority understands and acknowledges that Consultant may 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. (d) During the term of this Agreement, Consultant shall complete a Form 700 as determined by the Authority’s Filing Officer.
(e) Consultant has completed the Levine Act statement attached as Exhibit E.

Page 55 of 97 ends

Indio City CouncilAugust 20, 2025

Indio City Council
August 20, 2025