Indio City Council
December 17, 2025

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such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.

Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the District or the Trustee, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Trustee or the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

A Bond Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Trustee, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant’s interest in the Bonds, on DTC’s records, to the Trustee. The requirement for physical delivery of Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Bonds to the Trustee’s DTC account.

DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the District or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, physical certificates are required to be printed and delivered.

The District may decide to discontinue use of the system of book-entry only transfers through DTC (or a successor securities depository). In that event, bonds will be printed and delivered to DTC.

THE TRUSTEE, AS LONG AS A BOOK-ENTRY ONLY SYSTEM IS USED FOR THE BONDS, WILL SEND ANY NOTICE OF REDEMPTION OR OTHER NOTICES TO OWNERS ONLY TO DTC. ANY

FAILURE OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC PARTICIPANT TO NOTIFY

ANY BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT OR EFFECT WILL NOT AFFECT THE

VALIDITY OF SUFFICIENCY OF THE PROCEEDINGS RELATING TO THE REDEMPTION OF THE BONDS CALLED FOR REDEMPTION OR OF ANY OTHER ACTION PREMISED ON SUCH NOTICE.

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APPENDIX E

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES
A Special Tax (all capitalized terms are defined in Section A., Definitions below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2004-3 (TERRA LAGO). The amount of Special Tax to be levied in each Improvement Area in each Fiscal Year, commencing in Fiscal Year 2005-2006 on a Parcel shall be determined by the City Council of The City of Indio, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax for Developed Property, Undeveloped Property and Public Property and/or Property Owner’s Association Property that is not Exempt Property as set forth in Sections B., C., and D., below. All of the real property within the CFD, unless exempted by law or by the provisions hereof in Section E., shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre or Acreage” means the acreage of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, parcel map, condominium plan, or other similar instrument. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1 of Division 2 of Title 5 of the California Government Code of the State of California. “Administrative Expenses” means all actual or reasonably estimated costs and expenses of the District that are chargeable or allocable to the applicable Improvement Area to carry out its duties as the administrator of the CFD as allowed by the Act, which shall include without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax, trustee fees, rebate compliance calculation fees, and legal issues, or actual, potential or threatened litigation involving the CFD, continuing disclosure undertakings of the District as imposed by applicable laws and regulations, communication with bondholders and normal administrative expenses. “Administrator” means an official of the District, or designee thereof, responsible for determining the levy and collection of the Special Taxes.
“Assessor’s Parcel Map” means an official map of the Assessor of the County of Riverside designating parcels by Assessor’s Parcel number.
“Assigned Special Tax” means the Special Tax for each Land Use Category of Developed Property, as determined in accordance with Section C.1.a., below. “Backup Special Tax” means the Special Tax of that name described in Section E below. “Bonds” means any bonds or other indebtedness (as defined in the Act) issued by an Improvement Area of the CFD and secured by the levy of Special Taxes within such Improvement Area. “Boundary Map” means a map showing the territory area within the boundaries of CFD 2004-3 identified on EXHIBIT “A”.
“CFD” means Community Facilities District No. 2004-3 (TERRA LAGO) of the District established pursuant to the Act.

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“Council” means The City of Indio City Council
“County” means the County of Riverside.
“Developed Property” means all Parcels of Taxable Property, not classified as Undeveloped Property, Public Property and/or Property Owner’s Association Property that are not Exempt Property pursuant to the provisions of Section E. below: (i) that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied and (ii) a building permit for new construction has been issued prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means any Parcel, which is exempt from Special Taxes pursuant to Section E., below.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period starting on July 1 and ending on the following June 30. “Improvement Area(s)” means Improvement Area 1, Zone A or Zone B or Improvement Area 2, Zone A or Zone B as geographically identified on EXHIBIT “B”. “Improvement Area 1, Zone A” means the specific area identified on EXHIBIT “B” as Improvement Area 1, Zone A of the CFD.
“Improvement Area 1, Zone B” means the specific area identified on EXHIBIT “B” as Improvement Area 1, Zone B of the CFD.
“Improvement Area 2, Zone A” means the specific area identified on EXHIBIT “B” as Improvement Area 2, Zone A of the CFD.
“Improvement Area 2, Zone B” means the specific area identified on EXHIBIT “B” as Improvement Area 2, Zone B of the CFD.
“Indenture” means the bond indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. “Land Use Category” means any of the categories listed in Tables 1, 2, 3, 4 and 5. “Maximum Special Tax” means the maximum Special Tax, determined in accordance with Section C., which can be levied in any Fiscal Year on any Parcel. “Multifamily Residential Property” means any Parcel of Developed Property that consists of a building or buildings comprised of attached residential units available for rental by the general public, or for sale to an end user, and may be under common management. “Non-Residential Property” means all Parcels of Developed Property for which a building permit was issued for any type of non-residential use.

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“Parcel(s)” means a lot or parcel shown on an Assessor’s Parcel Map with an assigned parcel number valid at the time the Special Tax is enrolled for the Fiscal Year for which the Special Tax is being levied.
“Property Owner’s Association Property” means any Parcel within the boundary of the CFD, which, at the time the Special Tax is enrolled for the Fiscal Year for which the Special Tax is being levied has been conveyed, dedicated to, or irrevocably dedicated to a property owner association, including any master or sub-association.
“Proportionately” means for (i) Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all Parcels of Developed Property, and Undeveloped Property, Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to Section E., that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all such Parcels.
“Public Property” means any Parcel within the boundary of the CFD which, at the time the Special Tax is enrolled for the Fiscal Year for which the Special Tax is being levied, is used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the Federal Government, the State of California, the County, City or any other local jurisdiction, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use. “Residential Floor Area” means all of the square footage of living area of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio or similar area on a Parcel.

The determination of Residential Floor Area shall be made by reference to the building permit(s) for the Parcel or similar official document means selected by the Administrator. Once such determination has been made for a Parcel, it shall remain fixed in all future Fiscal Years. “Residential Property” means all Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. “Single Family Property” means all Parcels of Residential Property, other than Multifamily Residential Property, for which building permits have been issued for detached or attached residential units.
“Special Tax(es)” means the special tax to be levied in each Fiscal Year on each Parcel of Taxable Property.
“Special Tax Requirement(s)” means that amount required in any Fiscal Year to pay for Special Tax Requirement for Improvement Area 1, Zone A or Zone B, or for Special Tax Requirement for Improvement Area 2, Zone A or Zone B.
“Special Tax Requirement for Improvement Area 1” means that amount required in any Fiscal Year within Improvement Area 1 of the CFD to pay: (i) annual debt service on all outstanding Bonds due in the calendar year which commences in such Fiscal Year; (ii) periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) Administrative Expenses; (iv) an amount equal to any anticipated shortfall due to Special Tax delinquency in the prior Fiscal Year; and (v) any amounts required to establish or replenish any reserve funds for the outstanding Bonds; less (vi) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture. “Special Tax Requirement for Improvement Area 2” means that amount required in any Fiscal Year within Improvement Area 2 of the CFD to pay: (i) annual debt service on all outstanding Bonds

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due in the calendar year which commences in such Fiscal Year; (ii) periodic costs on the Bonds, including but not limited to, credit enhancement and rebate payments on the Bonds; (iii) Administrative Expenses; (iv) an amount equal to any anticipated shortfall due to Special Tax delinquency in the prior Fiscal Year; and (v) any amounts required to establish or replenish any reserve funds for the outstanding Bonds; less (vi) a credit for funds available to reduce the annual Special Tax levy as determined pursuant to the Indenture. “Taxable Property” means all Parcels in an Improvement Area which have not prepaid pursuant to Section H., or are not exempt from the Special Tax pursuant to law or Section E., below. “Undeveloped Property” means all Taxable Property not classified as Developed Property, Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to the provisions of Section E.

A. ASSIGNMENT TO LAND USE CATEGORY
Each Fiscal Year, commencing with the 2005-2006 Fiscal Year, all Parcels of Taxable Property within the CFD shall be categorized into the applicable Improvement Area and classified as either Developed Property, Undeveloped Property, Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to the provisions in Section E., and shall be subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C., and D., below.

Parcels of Developed Property shall further be classified as Residential Property or Non-Residential Property. A Parcel of Residential Property shall further be classified as Single Family Property or Multifamily Residential Property. Single Family Property shall be further categorized based on the Residential Floor Area for such Parcel.

C. MAXIMUM SPECIAL TAX RATE

1. Developed Property
The Maximum Special Tax for each Parcel of Single Family Property within its applicable Improvement Area shall be the applicable Assigned Special Tax described in Table 1, 2, 3, or

4. The Maximum Special Tax for each Parcel of Non-Residential Property within its applicable Improvement Area shall be the Assigned Special Tax described in Table 1, 2, 3 or 4. a. Assigned Special Tax
The Assigned Special Tax for each Parcel of Developed Property within its applicable Improvement Area is shown in Table 1, 2, 3, or 4.

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TABLE 1
Assigned Special Taxes for Property within
Improvement Area 1, Zone A
Land Use Category
Taxable
Unit Residential Floor Area
Assigned
Special Tax
Per Taxable
Unit
Single Family Property DU Less than 1,501 SF $1,828.87
Single Family Property DU 1,501 SF to 1,625 SF $2,028.55 Single Family Property DU 1,626 SF to 1,750 SF $2,228.22 Single Family Property DU 1,751 SF to 1,900 SF $2,467.83 Single Family Property DU 1,901 SF to 1,950 SF $2,547.70 Single Family Property DU 1,951 SF to 2,100 SF $2,605.98 Single Family Property DU 2,101 SF to 2,150 SF $2,681.53 Single Family Property DU 2,151 SF to 2,250 SF $2,832.63 Single Family Property DU 2,251 SF to 2,300 SF $2,908.19 Single Family Property DU 2,301 SF to 2,400 SF $3,059.29 Single Family Property DU 2,401 SF to 2,500 SF $3,102.46 Single Family Property DU 2,501 SF to 2,550 SF $3,175.86 Single Family Property DU 2,551 SF to 2,600 SF $3,249.25 Single Family Property DU 2,601 SF to 2,850 SF $3,616.22 Single Family Property DU Over 2,850 SF $4,056.57
Multi Family Property Acre N/A $20,460.00
Non Residential Property Acre N/A $20,460.00
On each July 1, commencing on July 1, 2007, for a period of five (5) years, until July 1, 2012, the Assigned Special Tax shall be increased by one percent (1.00%) of the amount in effect in the prior Fiscal Year.

TABLE 2
Assigned Special Taxes for Property within
Improvement Area 1, Zone B
Land Use Category
Taxable
Unit Residential Floor Area
Assigned
Special Tax
Per Taxable
Unit
Single Family Property DU Less than 1,501 SF $2,519.63
Single Family Property DU 1,501 SF to 1,625 SF $2,719.31 Single Family Property DU 1,626 SF to 1,750 SF $2,918.98 Single Family Property DU 1,751 SF to 1,900 SF $3,158.59 Single Family Property DU 1,901 SF to 1,950 SF $3,238.46 Single Family Property DU 1,951 SF to 2,100 SF $3,372.29 Single Family Property DU 2,101 SF to 2,150 SF $3,469.43 Single Family Property DU 2,151 SF to 2,250 SF $3,523.39 Single Family Property DU 2,251 SF to 2,300 SF $3,771.64 Single Family Property DU Over 2,300 SF $3,965.91
Multi Family Property Acre N/A $20,460.00
Non Residential Property Acre N/A $20,460.00
On each July 1, commencing on July 1, 2007, for a period of five (5) years, until July 1, 2012, the Assigned Special Tax shall be increased by one percent (1.00%) of the amount in effect in the prior Fiscal Year.

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TABLE 3
Assigned Special Taxes for Property within
Improvement Area 2, Zone A
Land Use Category
Taxable
Unit Residential Floor Area
Assigned
Special Tax
Per Taxable
Unit
Single Family Property DU Less than 1,501 SF $1,677.77
Single Family Property DU 1,501 SF to 2,000 SF $2,411.70 Single Family Property DU 2,001 SF to 2,500 SF $3,162.90 Single Family Property DU Over 2,500 SF $3,905.47
Multi Family Property Acre N/A $22,304.00
Non Residential Property Acre N/A $22,304.00
On each July 1, commencing on July 1, 2007, for a period of five (5) years, until July 1, 2012, the Assigned Special Tax shall be increased by one percent (1.00%) of the amount in effect in the prior Fiscal Year.

TABLE 4
Assigned Special Taxes for Property within
Improvement Area 2, Zone B
Land Use Category
Taxable
Unit Residential Floor Area
Assigned
Special Tax
Per Taxable
Unit
Single Family Property DU Less than 2,001 SF $3,154.27
Single Family Property DU 2,001 SF to 2,500 SF $3,905.47 Single Family Property DU 2,501 SF to 3,000 SF $4,648.04 Single Family Property DU Over 3,000 SF $4,665.31
Multi Family Property Acre N/A $22,304.00
Non Residential Property Acre N/A $22,304.00
On each July 1, commencing on July 1, 2007, for a period of five (5) years, until July 1, 2012, the Assigned Special Tax shall be increased by one percent (1.00%) of the amount in effect in the prior Fiscal Year.

1. Undeveloped Property
The Maximum Special Tax for each Parcel of Undeveloped Property within each Improvement Area is shown in Table 5 below.

TABLE 5
Undeveloped Property Maximum Special Tax Rate
Improvement Areas
Taxable
Unit
Maximum
Special Tax Per
Acre
1 - Undeveloped Property Acre $20,460.00
2 - Undeveloped Property Acre $22,304.00

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On each July 1, commencing on July 1, 2007, for a period of five (5) years, until July 1, 2012, the Maximum Special Tax shall be increased by one percent (1.00%) of the amount in effect in the prior Fiscal Year.

2. Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to the provisions of Section E.

The Maximum Special Tax for each Parcel of Public Property and/or Property Owners Association Property that is not Exempt Property pursuant to the provisions of Section E., within each Improvement Area shall be the applicable Undeveloped Property Maximum Special Tax rate per Acre in Table 5.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing with Fiscal Year 2005-2006 and for each following Fiscal Year, the Council shall levy the Special Tax on all Taxable Property in each Improvement Area until the amount of Special Taxes equals the applicable Special Tax Requirement for each Improvement Area in accordance with the following steps:

1. Improvement Area 1
First: The Special Tax shall be levied on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate as needed to satisfy the Special Tax Requirement for Improvement Area 1, Zone A and Zone B.

Second: If additional moneys are needed to satisfy the Special Tax Requirement for Improvement Area 1, Zone A and Zone B, after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property within Improvement Area 1, Zone A and Zone B at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then for each Assessor’s Parcel of Developed Property whose Assigned Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.

2. Improvement Area 2
First: The Special Tax shall be levied on each Parcel of Developed Property at up to 100% of the applicable Assigned Special Tax rate as needed to satisfy the Special Tax Requirement for Improvement Area 2, Zone A and Zone B.

Second: If additional moneys are needed to satisfy the Special Tax Requirement for Improvement Area 2, Zone A and Zone B, after the first step has been completed, the Special Tax shall be levied Proportionately on each Parcel of Undeveloped Property within Improvement Area 2, Zone A and Zone B at up to 100% of the Maximum Special Tax for Undeveloped Property; Third: If additional moneys are needed to satisfy the Special Tax Requirement after the first two steps have been completed, then for each Assessor’s Parcel of Developed Property whose Assigned Special Tax is the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to 100% of the Backup Special Tax as needed to satisfy the Special Tax Requirement.

Notwithstanding the above, under no circumstances will the Special Taxes levied against any Parcel of Residential Property within an Improvement Area be increased by more than ten percent (10%) per

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Fiscal Year as a consequence of delinquency or default by the owner of any other Parcel within an Improvement Area of the CFD.

E. BACKUP SPECIAL TAXES
Each Fiscal Year, each Assessor’s Parcel of Developed Property classified as Residential Property shall be subject to a Backup Special Tax. In each Fiscal Year, the Backup Special Tax rate for Developed Property classified as Residential Property within a Final Map shall be the rate per Lot calculated according to the following formula:

The terms above have the following meanings:

B = Backup Special Tax per Lot in each Fiscal Year
R = Maximum Special Tax rate per Acre for Undeveloped
Property for the applicable Fiscal Year
A = Acreage of Developed Property classified or to be classified as Residential Property in such Final Map
L = Lots in the Final Map which are classified or to be classified as Residential Property Notwithstanding the foregoing, if all or any portion of the Final Map(s) described in the preceding paragraph is subsequently changed or modified, then the Backup Special Tax for each Assessor’s Parcel of Developed Property classified or to be classified as Residential Property in such Final Map Area that is changed or modified shall be a rate per square foot of Acreage calculated as follows:

1. Determine the total Backup Special Tax anticipated to apply to the changed or modified Final Maps

2. The result of paragraph 1 above shall be divided by the Acreage of Developed Property classified or to be classified as Residential Property which is ultimately expected to exist in such changed or modified Final Map Area, as reasonably determined by the City.

3. The result of paragraph 2 above shall be divided by 43,560. The result is the Backup Special Tax per square foot of Acreage which shall be applicable to Assessor’s Parcels of Developed Property classified as Residential Property in such changed or modified Final Map Area for all remaining Fiscal Years in which the Special Tax may be levied.

F. EXEMPTIONS
The Council shall not levy Special Taxes on Public Property, Property Owner’s Association Property or Golf Course Property within each Improvement Area or Riverside County Assessor Parcel Numbers 601-150-024 and 601-270-018 located within Improvement Area 2 of the CFD. Exempt Property status will be assigned by the Administrator in the chronological order in which property becomes Public Property, Property Owner’s Association Property or Golf Course Property.

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G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act if necessary to meet the financial obligations of the CFD.

H. APPEALS
Any taxpayer may file a written appeal of the Special Tax on his/her Parcel(s) with the Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.

The Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.

I. PREPAYMENT OF SPECIAL TAX
The following definitions apply to this Section H:
“Outstanding Bonds” means all previously issued bonds issued and secured by the levy of Special Taxes, which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Taxes.

1. Prepayment in Full
The Maximum Special Tax obligation may only be prepaid and permanently satisfied by a Parcel of Developed Property, and/or Undeveloped Property for which a building permit has been issued, and Public Property and/or Property Owner’s Association Property that is not Exempt Property pursuant to Section E. The Maximum Special Tax obligation applicable to such Parcel may be fully prepaid and the obligation of the Parcel to pay the Special Tax permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. An owner of a Parcel intending to prepay the Maximum Special Tax obligation shall provide the Administrator with written notice of intent to prepay, and within 5 business days of receipt of such notice, the Administrator shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the proper amount of a prepayment. Within 15 days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the prepayment amount of such Parcel. Prepayment must be made not less than 60 days prior to any redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

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The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below):

Bond Redemption Amount
plus Redemption Premium
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Total: equals Prepayment Amount
As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows:

1. Confirm that no Special Tax delinquencies apply to such Parcel.

2. For Parcels of Developed Property, compute the Maximum Special Tax for the Parcel to be prepaid. For Parcels of Undeveloped Property to be prepaid, compute the Maximum Special Tax for that Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Parcel. For Parcels of Public Property and/or Property Owner’s Association Property to be prepaid, compute the Maximum Special Tax for that Parcel.

3. Divide the Maximum Special Tax computed pursuant to paragraph 2 by the total estimated Maximum Special Taxes based on the Developed Property Special Tax which could be charged, less any Parcels which have been prepaid.

4. Multiply the quotient computed pursuant to paragraph 3 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the “Bond Redemption Amount”).

5. Multiply the Bond Redemption Amount computed pursuant to paragraph 4 by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed (the “Redemption Premium”).

6. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and./or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds.

7. Determine the Special Taxes levied on the Parcel in the current Fiscal Year which have not yet been paid.

8. Compute the amount the Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment.

9. Add the amounts computed pursuant to paragraphs 6 and 7 and subtract the amount computed pursuant to paragraph 8 (the “Defeasance Amount”).

10. Verify the administrative fees and expenses, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming the Outstanding Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the “Administrative Fees and Expenses”).

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11. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero.

12. The Maximum Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 4, 5, 9 and 10, less the amount computed pursuant to paragraph 11 (the “Prepayment Amount”).

13. From the Prepayment Amount, the amounts computed pursuant to paragraphs 4, 5, 9, and 11 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 10 shall be retained by the CFD.

The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments.

As a result of the payment of the current Fiscal Year’s Special Tax levy as determined under paragraph 7 (above), the Administrator shall remove the current Fiscal Year’s Special Tax levy for such Parcel from the County tax rolls. With respect to any Parcel that is prepaid, the Board shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Parcel, and the obligation of such Parcel to pay the Special Tax shall cease.

Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Special Taxes that may be levied on Taxable Property both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds.

Tenders of Bonds in prepayment of Maximum Special Taxes may be accepted upon the terms and conditions established by the Board pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Board.

2. Prepayment in Part
The Maximum Special Tax on a Parcel of Developed Property or Undeveloped Property for which a building permit has been issued may be partially prepaid in increments of $2,000. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula:

PP = PE x F
These terms have the following meaning:

PP = the partial prepayment
PE = the Prepayment Amount calculated according to Section H.1 F = the percent by which the owner of the Parcel(s) is partially prepaying the Maximum Special Tax.

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The owner of a Parcel who desires to partially prepay the Maximum Special Tax shall notify the Administrator of (i) such owner’s intent to partially prepay the Maximum Special Tax, (ii) the amount of partial prepayment expressed in increments of $2,000, and (iii) the company or agency that will be acting as the escrow agent, if applicable and within 5 days of receipt of such notice, the Administrator shall notify such property owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by the CFD in calculating the proper amount of a partial prepayment. Within 15 business days of receipt of such non-refundable deposit, the Administrator shall notify such owner of the partial prepayment amount of such Parcel. Partial prepayment must be made not less than 60 days prior to any redemption date for any Bonds to be redeemed with the proceeds of such prepaid Special Taxes.

With respect to any Parcel that is partially prepaid, the Administrator shall (i) distribute the funds remitted to it according to Paragraph 13 of Section H.1, and (ii) indicate in the records of the CFD that there has been a partial prepayment of the Maximum Special Tax and that a portion of the Maximum Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Special Tax shall continue to be authorized to be levied on such Parcel pursuant to Section D.

J. TERM OF THE SPECIAL TAX
For each year that any Bonds are outstanding the Special Tax shall be levied on all Parcels subject to the Special Tax. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse the CFD for uncollected Special Taxes associated with the levy of such Special Taxes, but not later than the Fiscal Year.

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APPENDIX F

GENERAL INFORMATION CONCERNING

THE CITY OF INDIO AND THE COUNTY OF RIVERSIDE
General
The City was incorporated in 1930 and encompasses approximately 33 square miles. The City is the geographic mid-point of Riverside County. It is located about 125 miles east of the center of the Los Angeles region, 75 miles north of the California-Baja California Mexican border and 30 miles southeast of Palm Springs and its neighboring communities (including Indian Wells, La Quinta and Palm Desert to the west and Coachella and Mecca to the east).

Known as the “City of Festivals,” the City hosts multiple annual festivals, such as the Coachella Valley Music and Arts Festival (known as the Coachellafest), the Stagecoach Country Music Festival, Riverside County Fair & Date Festival, Palm Springs Kennel Club Dog Show, Southwest Arts Festival, Indio International Tamale Festival, collectively drawing more than one million people to the City annually. The City’s ability to draw and host worldwide festivals is based on being home to the Riverside County Fairgrounds and the adjoining Empire Polo Club Grounds and Eldorado Polo Club Grounds (site of the Coachellafest), which are large-scale, outdoor entertainment venues unique to the City within the Coachella Valley.

The City is the largest city, by population, in the Coachella Valley, a sub-region located in eastern Riverside County. The City is a center for business, government and entertainment within the region. Other cities in the Coachella Valley include Palm Springs, Palm Desert, Rancho Mirage, Indian Wells, La Quinta, Cathedral City, Desert Hot Springs and Coachella. The Coachella Valley is a premium golf region with many well-known golf courses (including PGA West, Indian Wells Country Club, the Quarry at La Quinta and many others), as well as hotels and resorts, and gated retirement communities. Significant industries in the Coachella Valley include leisure, tourism, agriculture, wind farming, construction, Indian gaming, mining and entertainment.

Population
The following table shows the population growth for the City and Riverside County for the years shown:

TABLE F-1
City of Indio
City and County Population(1)
Calendar Years 2020-2025
Calendar Year City County
2025 92,539 2,495,640
2024 92,693 2,491,037
2023 91,552 2,467,690
2022 89,576 2,435,510
2021 89,309 2,423,069
2020 88,722 2,418,185
(1) As of January 1 of each year.

Source: State of California, Department of Finance, E-4 Population Estimates for Cities, Counties, and the State, 2021-2025, with 2020 Census Benchmark. Sacramento, California, May 2025.

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Employment and Industry
The following table shows certain employment statistics for the City, the County and the State for calendar years 2020 through 2024.

TABLE F-2
City of Indio
City, County and State Average Annual Employment Statistics(1) Calendar Years 2020 through 2024
City County State
Year Labor Force Employed
Unemployment
Rate
Unemployment
Rate
Unemployment
Rate
2024 44,900 42,200 6.0% 5.3% 5.3%
2023 42,500 40,300 5.2 4.8 4.7
2022 42,000 40,400 4.7 4.3 4.3
2021 47,700 38,300 8.2 7.4 7.3
2020 41,800 36,700 12.2 10.2 10.1
(1) Not seasonally adjusted. Figures represent the 12-month average for each such year.

Source: California Employment Development Department, Labor Market Information Division.

The following table shows the distribution of the labor force in the County from 2019 through 2023.

TABLE F-3
County of Riverside
Annual Average Employment by Industry
Calendar Years 2019-2023
2019 2020 2021 2022 2023
Total Farm 12,900 11,800 11,400 11,300 10,900
Mining and Lodging 500 400 400 500 400
Construction 68,100 66,800 70,900 73,900 74,100
Manufacturing 45,200 43,000 43,700 44,900 45,200
Trade, Transportation and Utilities 169,600 173,200 188,100 197,900 196,700 Information 6,500 5,300 5,300 5,500 5,600
Financial Activities 21,600 20,900 21,400 22,500 21,100 Professional and Business Services 73,700 71,500 77,200 78,600 76,300 Educational and Health Services 115,300 119,600 124,600 131,700 143,900 Leisure and Hospitality 97,800 77,600 88,600 101,100 104,200 Other Services 23,300 19,900 21,800 24,400 25,500
Government 132,100 124,000 119,800 121,700 128,100
Total All Industries 766,500 734,000 773,200 813,900 832,000 Total Civilian Labor Force 1,106,200 1,118,900 1,130,500 1,145,700 1,157,900 Source: California Employment Development Department, Labor Market Information Division.

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Largest Employers
The following table lists the major area employers in the City.

TABLE F-4
City of Indio
Major Area Employers
as of June 30, 2024
Employer
Number of
Employees

1. Desert Sands Unified School District 3,048

2. County of Riverside 1,391

3. Fantasy Springs Resort Casino 1,135

4. John F. Kennedy Memorial Hospital 625

5. Walmart Supercenter 399

6. City of Indio 254

7. Ralphs 151

8. WorldMark Indio Resort 146

9. Fiesta Ford 143

10. Desert Springs Health Care & Wellness 138
Total Employment Listed 7,430
Source: City of Indio, as shown in the Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024.

Per Capita Personal Income
The City is part of the Riverside-San Bernardino-Ontario Metropolitan Statistical Area, as determined by the United States Office of Management and Budget. The following table shows the annual per capita personal income for the Riverside-San Bernardino-Ontario Metropolitan Statistical Area, the State and the United States from 2019 through 2023:

TABLE F-5
Riverside-San Bernardino-Ontario Metropolitan Statistical Area, State of California and the United States
Per Capita Personal Income(1)
Calendar Years 2019 through 2023
Year MSA State U.S.
2023 $52,553 $81,255 $69,810
2022 49,908 76,941 66,244
2021 50,700 76,882 64,460
2020 46,540 70,098 59,123
2019 42,138 64,219 55,566
(1) Dollar estimates in current dollars (not adjusted for inflation).

Source: U.S. Bureau of Economic Analysis, CAINC1 County and MSA personal income summary: personal income, population, per capita personal income.

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Taxable Transactions
A summary of taxable sales within the City, by type of business, during the past five years for which data is available is shown in the following table.

TABLE F-6
City of Indio
Taxable Transaction Valuation(1)
Calendar Years 2020-2024
Business 2020 2021 2022 2023 2024
Motor Vehicle and Parts Dealers $1,293,694 $359,814 $369,465 $377,913 $368,325 Home Furnishings and Appliance Stores 277,840 56,334 53,478 60,630 57,748 Building Material, Garden Equip & Supplies 42,658 134,578 176,668 165,471 164,370 Food and Beverage Stores 101,743 66,898 74,273 86,841 72,206 Gasoline Stations 62,165 126,935 179,415 157,810 143,334 Clothing and Clothing Accessories Stores 84,947 52,083 49,130 51,914 52,017 General Merchandise Stores 34,395 70,488 78,554 84,822 90,044 Food Services and Drinking Places 66,342 140,868 178,766 212,634 228,494 Other Retail Group 104,166 66,076 73,492 68,247 59,161
Total Retail and Food Services $56,353 $1,074,072 $1,233,241 $1,266,283 $1,235,704 All Other Outlets 830,610 219,621 271,616 264,501 26,223 Total All Outlets $200,716 $359,814 $1,504,857 $1,530,784 $1,498,927 (1) In thousands of dollars (‘000s)
Source: California Department of Tax and Fee Administration.

The number of sales permits and the valuation of taxable transaction in the City subject to sales tax are presented in the following table.

TABLE F-7
City of Indio
Permit Numbers and Taxable Transaction Valuation
Calendar Years 2020-2024
Year
No. of
Retail and Food
Services Permits
Retail and Food
Services Stores(1)
No. of
Total Permits Total All Outlets(1)
2024 2,391 $1,235,704 2,403 $1,498,927
2023 2,220 1,266,283 3,178 1,530,784
2022 2,036 1,233,241 2,929 1,504,857
2021 1,977 1,074,072 2,824 1,293,694
2020 2,137 830,610 2,987 1,031,325
(1) In thousands of dollars (‘000s)
Source: California Department of Tax and Fee Administration.

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APPENDIX G

SPECIMEN MUNICIPAL BOND INSURANCE POLICY

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$___________
CITY OF INDIO COMMUNITY FACILITIES DISTRICT NO. 2004-3
(TERRA LAGO) IMPROVEMENT AREA NO. 1
2026 SPECIAL TAX REFUNDING BONDS

BOND PURCHASE AGREEMENT
__________, 2026
City of Indio Community Facilities District No. 2004-3 (Terra Lago) Indio, California
Ladies and Gentlemen:

Piper Sandler & Co. (the “Underwriter”), acting not as a fiduciary or agent for you, but on behalf of itself, offers to enter into this Bond Purchase Agreement (the “Purchase Agreement”) with City of Indio Community Facilities District No. 2004-3 (Terra Lago) (the “District”) which, upon acceptance, will be binding upon the District and upon the Underwriter. This offer is made subject to acceptance of it by the District on the date hereof, and if not accepted will be subject to withdrawal by the Underwriter upon notice delivered to the District at any time prior to the acceptance hereof by the District.

The District acknowledges and agrees that: (i) the purchase and sale of the Bonds (defined below) pursuant to this Purchase Agreement is an arm’s-length commercial transaction between the District and the Underwriter; (ii) in connection therewith and with the discussions, undertakings and procedures leading up to the consummation of such transaction, the Underwriter is and has been acting solely as a principal and is not acting as a Municipal Advisor (as defined in Section 15B of The Securities Exchange Act of 1934, as amended); (iii) the Underwriter has not assumed an advisory or fiduciary responsibility in favor of the District with respect to the offering contemplated hereby or the discussions, undertakings and procedures leading thereto (irrespective of whether the Underwriter has provided other services or is currently providing other services to the District on other matters); and (iv) the District has consulted its own legal, financial and other advisors to the extent it has deemed appropriate on this transaction.

1. Purchase, Sale and Delivery of the Bonds; Establishment of Issue Price. (a) Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein, the Underwriter agrees to purchase from the District, and the District agrees to sell to the Underwriter, all (but not less than all) of the City of Indio Community Facilities District No. 2004-3 (Terra Lago) Improvement Area No. 1 2026 Special Tax Refunding Bonds (the “Bonds”) in the aggregate principal amount specified in Exhibit A hereto. The Bonds shall be dated the Closing Date (as defined herein), and bear interest from said date (payable semiannually on March 1 and September 1 in each year, commencing September 1, 2026) at the rates per annum and maturing on the dates and in the amounts set forth in Exhibit A hereto. The purchase price for the Bonds shall be the amount specified as such in Exhibit A hereto. The scheduled payment of principal of and interest on the Bonds maturing on ___________ (the “Insured Bonds”) when due will be guaranteed under a municipal bond insurance policy (the “Policy”) to be issued concurrently with the delivery of the Insured Bonds by ____________ (the “Insurer”). The Insurer

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2 will also issue a municipal bond debt service reserve insurance policy (the “Reserve Policy”) concurrently with the delivery of the Insured Bonds. As an accommodation to the District, the Underwriter will wire from the purchase price for the Bonds the premium for the Policy in the amount of $_________ and the premium for the Reserve Policy in the amount of $_________ directly to the Insurer on the date of Closing Date (defined below).

The Underwriter agrees to assist the District in establishing the issue price of the Bonds and shall execute and deliver to the District at Closing (as defined herein) an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit C, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the District and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds.

All actions to be taken by the District under this section to establish the issue price of the Bonds may be taken on behalf of the District by the District’s financial advisor identified herein and any notice or report to be provided to the District may be provided to the District’s financial advisor.

Except for the Hold-the-Price Maturities described below and as otherwise set forth in Exhibit A attached hereto, the District will treat the first price at which 10% of each maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity. At or promptly after the execution of this Purchase Agreement, the Underwriter shall report to the District the price or prices at which it has sold to the public each maturity of Securities.

With respect to the maturities of the Bonds that are not 10% Test Maturities, as described in Exhibit A attached hereto (the “Hold-the-Price Maturities”), the Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto. The District and the Underwriter agree that the restrictions set forth in the next sentence shall apply to the Hold-the-Price Maturities, which will allow the District to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the- offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
(A) the close of the fifth (5th) business day after the sale date; or (B) the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.

The Underwriter will advise the District promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.

The Underwriter confirms that:
(i) any selling group agreement and any third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will

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3 contain language obligating each dealer who is a member of the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable:
(A)(i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter, and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter,
(B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Securities to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the dealer or broker-dealer, the Underwriter shall assume that each order submitted by the dealer or broker-dealer is a sale to the public.
(ii) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Securities of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires.

The District acknowledges that, in making the representations set forth in this section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the third-party distribution agreement and the related pricing wires. The District further acknowledges that the Underwriter shall not be liable for the failure of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a third-party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds.

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4 The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section. Further, for purposes of this section:
(1) “public” means any person other than an underwriter or a related party, (2) “underwriter” means (A) any person that agrees pursuant to a written contract with the District (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the public), (3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) at least 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and (4) “sale date” means the date of execution of this Purchase Agreement by all parties.
(b) The Bonds shall be substantially in the form described in, shall be issued and secured under the provisions of, and shall be payable and subject to redemption as provided in, the Bond Indenture, dated as of February 1, 2026 (the “Bond Indenture”) approved by Resolution No. 2026- ____ adopted by the City Council of the City of Indio (the “City”), acting as the legislative body of the District (the “City Council), on _________, 2026 (the “Resolution of Issuance”). The Bonds and interest thereon will be payable from a special tax (the “Special Tax”) levied and collected on the taxable land within Improvement Area No. 1 of the District in accordance with Resolution No. 9025 and Resolution No. 9026 adopted by the City Council on July 20, 2005 (collectively, the “Resolution of Formation”). Proceeds of the sale of the Bonds will be used in accordance with the Bond Indenture and the Mello-Roos Community Facilities Act of 1982, as amended (Sections 53311 et seq. of the Government Code of the State of California) (the “Law”), to acquire certain public improvements described in the Resolution of Formation. The Resolution of Issuance, the Resolution of Formation and Ordinance No. 1442 are collectively referred to herein as the “District Resolutions.”
(c) At or prior to the acceptance hereof by the District, the District shall cause to be delivered to the Underwriter a Rule 15c2-12 Certificate, dated as of the date of this Purchase Agreement (the “District Certificate”), in substantially the form attached hereto as Exhibit B, with only such changes therein as shall have been accepted by the Underwriter. (d) Subsequent to its receipt of the District Certificate deeming the Preliminary Official Statement for the Bonds, dated ________, 2026, which Preliminary Official Statement, together with

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5 the cover page and all appendices thereto, is herein collectively referred to as the “Preliminary Official Statement”), final for purposes of Rule 15c2-12 of the Securities and Exchange Commission (“Rule 15c2-12”), the Underwriter has distributed copies of the Preliminary Official Statement. The District hereby ratifies the use by the Underwriter of the Preliminary Official Statement and authorizes the Underwriter to use and distribute the final Official Statement dated the date hereof (including all information previously permitted to have been omitted by Rule 15c2-12, and any supplements and amendments thereto as have been approved by the District as evidenced by the execution and delivery of such document by an officer of the District (the “Official Statement”), the Bond Indenture, the Continuing Disclosure Agreement of the District (the “Continuing Disclosure Agreement”), this Purchase Agreement, any other documents or contracts to which the District is a party, and all information contained therein, and all other documents, certificates and statements furnished by the District to the Underwriter in connection with the transactions contemplated by this Purchase Agreement, in connection with the offer and sale of the Bonds by the Underwriter. The Underwriter hereby agrees to deliver a copy of the Official Statement to the Municipal Securities Rulemaking Board (the “MSRB”) through the Electronic Municipal Marketplace Access website of the MSRB on or before the Closing Date and otherwise to comply with all applicable statutes and regulations in connection with the offering and sale of the Bonds, including, without limitation, MSRB Rule G-32 and Rule 15c2-12.
(e) At 8:00 A.M., Pacific Time, on _________, 2026, or at such earlier time or date as shall be agreed upon by the Underwriter and the District (such time and date being herein referred to as the “Closing Date”), the District will deliver (i) to the Depository Trust Company in New York, New York, the Bonds in definitive form (all Bonds being in book-entry form registered in the name of Cede & Co. and having the CUSIP numbers assigned to them printed thereon), duly executed by the officers of the District, as provided in the Bond Indenture, and (ii) to the Underwriter, at the offices of Bond Counsel, or at such other place as shall be mutually agreed upon by the District and the Underwriter, the other documents herein mentioned; and the Underwriter shall accept such delivery and pay the purchase price of the Bonds in immediately available funds (such delivery and payment being herein referred to as the “Closing”). Notwithstanding the foregoing, the Underwriter may, in its discretion, accept delivery of the Bonds in temporary form upon making arrangements with the District which are satisfactory to the Underwriter relating to the delivery of the Bonds in definitive form.
(f) Except as otherwise disclosed and agreed to by the District, the Underwriter agrees to make a bona fide public offering of the Bonds at the initial public offering price or prices set forth on the inside cover page of the Official Statement and in Exhibit A hereto; provided, however, the Underwriter reserves the right to change such initial public offering prices as the Underwriter deems necessary or desirable, in its sole discretion, in connection with the marketing of the Bonds, and to sell the Bonds to certain dealers (including dealers depositing the Bonds into investment trusts) and others at prices lower than the initial offering prices set forth in the Official Statement. A “bona fide public offering” shall include an offering to institutional investors or registered investment companies, regardless of the number of such investors to which the Bonds are sold. The Underwriter shall provide to the District on the Closing Date a certificate stating that the Underwriter made a bona fide public offering of the Bonds at the initial public offering price or prices set forth on the inside cover page of the Official Statement and in Exhibit A.

2. Representations, Warranties and Agreements of the District. The District represents, warrants and covenants to and agrees with the Underwriter that:

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6 (a) The District is duly organized and validly existing as a community facilities district under the laws of the State of California. The City has duly authorized the formation of the District pursuant to the Resolution of Formation and the Law. The City Council, as the legislative body of the District, has duly adopted the District Resolutions, and has caused to be recorded in the real property records of the County of Riverside on ___________, a Notice of Special Tax Lien, as Document No. ___________ (the “Notice of Special Tax Lien”) (such District Resolutions and Notice of Special Tax Lien being collectively referred to herein as the “Formation Documents”).

Each of the Formation Documents remains in full force and effect as of the date hereof and has not been amended. The District is duly organized and validly existing as a community facilities district under the laws of the State of California. The District has, and at the Closing Date will have, as the case may be, full legal right, power and authority (i) to execute, deliver and perform its obligations under this Purchase Agreement and the Continuing Disclosure Agreement, and to carry out all transactions contemplated by each of such agreements, (ii) to issue, sell and deliver the Bonds to the Underwriter pursuant to the Resolution of Issuance and the Bond Indenture as provided herein, and (iii) to carry out, give effect to and consummate the transactions contemplated by the Formation Documents and by the Bond Indenture, this Purchase Agreement, the Escrow Agreement, dated as of February 1, 2026, by and between the District and U.S. Bank Trust Company, National Association, as escrow agent (the “Escrow Agent”), and the Continuing Disclosure Agreement (collectively, the “District Documents”) and the Official Statement;
(b) The District has complied, and will at the Closing Date be in compliance, in all material respects, with the Formation Documents and the District Documents, and any immaterial compliance by the District, if any, will not impair the ability of the District to carry out, give effect to or consummate the transactions contemplated by the foregoing. From and after the date of issuance of the Bonds, the District will continue to comply with the covenants of the District contained in the District Documents;
(c) The City Council has duly and validly: (i) adopted the District Resolutions, (ii) called, held and conducted in accordance with all requirements of the Law an election within the District to approve the levy of the Special Tax within Improvement Area No. 1 of the District and the issuance of the Bonds and recorded the Notice of Special Tax Lien which established a continuing lien on the land within Improvement Area No. 1 of the District securing the Special Tax, (iii) authorized and approved the execution, delivery and due performance of the Bonds and the District Documents, (iv) authorized the preparation, delivery and distribution of the Preliminary Official Statement and the Official Statement, and (v) authorized and approved the performance by the District of its obligations contained in, and the taking of any and all action as may be necessary to carry out, give effect to and consummate the transactions contemplated by, each of the District Documents (including, without limitation, the collection of the Special Tax), the Bonds and the Official Statement and at the Closing Date, the Formation Documents will be in full force and effect and the District Documents and the Bonds will constitute the valid, legal and binding obligations of the District and (assuming due authorization, execution and delivery by other parties thereto, where necessary) will be enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting the enforcement of creditors’ rights in general and to the application of equitable principles if equitable remedies are sought; (d) To the best of the District’s knowledge, the District is not in breach of or default under any applicable law or administrative rule or regulation of the State of California (the “State”) or the United States, or of any department, division, agency or instrumentality thereof, or under any applicable court or administrative decree or order, or under any loan agreement, note, resolution,

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7 fiscal agent agreement, contract, agreement or other instrument to which the District is a party or is otherwise subject or bound, a consequence of which could be to materially and adversely affect the performance by the District of its obligations under the Bonds, the Formation Documents or the District Documents, and compliance with the provisions of each thereof will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State or the United States, or of any department, division, agency or instrumentality thereof, or under any applicable court or administrative decree or order, or a material breach of or default under any loan agreement, note, resolution, trust agreement, contract, agreement or other instrument to which the District, as the case may be, is a party or is otherwise subject or bound; (e) Except for compliance with the blue sky or other states securities law filings, as to which the District makes no representations, all approvals, consents, authorizations, elections and orders of or filings or registrations with any State governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the District of its obligations hereunder, or under the Formation Documents or the District Documents, have been obtained and are in full force and effect;
(f) The Special Tax constituting the security for the Bonds has been duly and lawfully authorized and may be levied under the Law, the State Constitution and the applicable laws of the State, and such Special Tax, when levied, will constitute a valid and legally binding continuing lien on the properties on which it has been levied;
(g) The District shall not supplement or amend the Official Statement or cause the Official Statement to be supplemented or amended without the prior written consent of the Underwriter. Until the date which is twenty-five (25) days after the “end of the underwriting period” (as defined herein), if any event shall occur of which the District is aware, as a result of which it may be necessary to supplement the Official Statement in order to make the statements in the Official Statement, in light of the circumstances existing at such time, not misleading, the District shall forthwith notify the Underwriter of any such event of which it has knowledge and shall cooperate fully in furnishing any information available to it for any supplement to the Official Statement necessary, in the Underwriter’s opinion, so that the statements therein as so supplemented will not be misleading in light of the circumstances existing at such time and the District shall promptly furnish to the Underwriter a reasonable number of copies of such supplement. As used herein, the term “end of the underwriting period” means the later of such time as (i) the District delivers the Bonds to the Underwriter, or (ii) the Underwriter does not retain, directly or as a member of an underwriting syndicate, an unsold balance of the Bonds for sale to the public. Unless the Underwriter gives notice to the contrary, the “end of the underwriting period” shall be deemed to be the Closing Date. Any notice delivered pursuant to this provision shall be written notice delivered to the District at or prior to the Closing Date, and shall specify a date (other than the Closing Date) to be deemed the “end of the underwriting period”;
(h) The Bond Indenture creates a valid pledge of the Special Taxes and the moneys in the Special Tax Fund and the Reserve Account established pursuant to the Bond Indenture, including the investments thereof, subject in all cases to the provisions of the Bond Indenture permitting the application thereof for the purposes and on the terms and conditions set forth therein. Until such time as moneys have been set aside in an amount sufficient to pay all then outstanding Bonds at maturity or to the date of redemption if redeemed prior to maturity, plus unpaid interest thereon to maturity or to the date of redemption if redeemed prior to maturity, and premium, if any, the District

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8 will faithfully perform and abide by all of the covenants, undertakings and provisions contained in the Bond Indenture;
(i) Except as disclosed in the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body is pending or, to the best knowledge of the District, threatened (i) which would materially adversely affect the ability of the District to perform its obligations under the Bonds, the Formation Documents or the District Documents, or (ii) seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Bond Indenture, or the collection or application of the Special Tax pledged or to be pledged to pay the principal of and interest on the Bonds, or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Bonds, the Formation Documents, the District Documents, or any action contemplated by any of said documents, or (iii) in any way contesting the completeness or accuracy of the Preliminary Official Statement or the powers or authority of the District with respect to the Bonds, the Formation Documents, the District Documents, or any action of the District contemplated by any of said documents; nor is there any action pending or, to the best knowledge of the District, threatened against the District which alleges that interest on the Bonds is not excludable from gross income for federal income tax purposes or is not exempt from California personal income taxation; (j) The District will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request in order for the Underwriter to qualify the Bonds for offer and sale under the “Blue Sky” or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate; provided, however, the District shall not be required to register as a dealer or a broker of securities or to consent to service of process in connection with any blue sky filing; (k) Any certificate signed by any official of the District authorized to do so shall be deemed a representation and warranty to the Underwriter as to the statements made therein; (l) The District will apply the proceeds of the Bonds in accordance with the Bond Indenture and as described in the Official Statement;
(m) The information contained in the Preliminary Official Statement was as of the date thereof, and the information contained in the Official Statement as of its date and on the Closing Date shall be, true and correct in all material respects and such information does not and shall not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;
(n) The Preliminary Official Statement heretofore delivered to the Underwriter has been deemed final by the District as of its date, except for the omission of such information as is permitted to be omitted in accordance with paragraph (b)(1) of Rule 15c2-12. The District hereby covenants and agrees that, within seven (7) business days from the date hereof, the District shall cause a final printed form of the Official Statement to be delivered to the Underwriter in a quantity mutually agreed upon by the Underwriter and the District so that the Underwriter may comply with paragraph (b)(4) of Rule 15c2-12 and Rules G-12, G-15, G-32 and G-36 of the Municipal Securities Rulemaking Board;

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9 (o) Except as otherwise disclosed in the Preliminary Official Statement, the District is, and has always been, in material compliance with respect to all reporting obligations in the last five years that it has undertaken under Rule 15c2-12 for all indebtedness issued by the District; (p) Except as otherwise disclosed in the Preliminary Official Statement, the Formation Documents have not been amended, terminated, rescinded or modified; (q) The District shall not voluntarily undertake any course of action inconsistent with satisfaction of the requirements applicable to the District as set forth in this Purchase Agreement; (r) The District shall cooperate with the Underwriter in the qualification of the Bonds for offering and sale and the determination of their eligibility for investment under the laws of such jurisdictions as the Underwriter may designate;
(s) The District shall not knowingly take or omit to take any action that, under existing law, may adversely affect the exemption from state income taxation or the exclusion from gross income for federal income tax purposes of the interest on the Bonds.

3. Conditions to the Obligations of the Underwriter. The obligations of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and warranties on the part of the District contained herein, as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of the District made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the District of its obligations to be performed hereunder at or prior to the Closing Date and to the following additional conditions:
(a) At the Closing Date, the Formation Documents and the District Documents shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the transactions contemplated thereby and by this Purchase Agreement, all such actions as, in the opinion of Stradling Yocca Carlson & Rauth LLP, Bond Counsel and Disclosure Counsel for the District, and Best Best & Krieger LLP, counsel to the Underwriter, shall be necessary and appropriate;
(b) The information contained in the Official Statement will, as of the Closing Date and as of the date of any supplement or amendment thereto pursuant to Section 2(g) hereof, be true, correct and complete in all material respects and will not, as of the Closing Date or as of the date of any supplement or amendment thereto pursuant to Section 2(g) hereof, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (c) Between the date hereof and the Closing Date, the market price or marketability of the Bonds at the initial offering prices set forth in the Official Statement shall not have been materially adversely affected, in the judgment of the Underwriter (evidenced by a written notice to the District terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds), by reason of any of the following:

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10 (1) legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America or recommended to the Congress by the President of the United States, the Department of the Treasury, the Internal Revenue Service, or any member of Congress, or favorably reported for passage to either House of Congress by any committee of such House to which such legislation had been referred for consideration or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department or the Internal Revenue Service of the United States of America, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest that would be received by the holders of the Bonds beyond the extent to which such interest is subject to taxation as of the date hereof;
(2) legislation introduced in or enacted (or resolution passed) by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Bond Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bonds, or of the Bonds, including any or all underwriting arrangements, as contemplated hereby or by the Official Statement or otherwise is or would be in violation of the federal securities laws, rules or regulations as amended and then in effect; (3) any amendment to the federal or California Constitution or action by any federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the District, its property, income, securities (or interest thereon), the validity or enforceability of the Special Tax or the ability of the District to construct or acquire the improvements as contemplated by the Formation Documents, the District Documents or the Official Statement;
(4) any event occurring, or information becoming known, which, in the judgment of the Underwriter, makes untrue in any material respect any statement or information contained in the Preliminary Official Statement or the Official Statement, or results in the Preliminary Official Statement or the Official Statement containing any untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (5) the declaration of war or the escalation of, or engagement in, military hostilities by the United States or the occurrence of any other national or international emergency or calamity relating to the effective operation of the government of, or the financial community in, the United States which, in the judgment of the Underwriter, makes it impracticable or inadvisable to proceed with the offering or the delivery of the Bonds on the terms and in the manner contemplated in the Preliminary Official Statement or the Official Statement; (6) the declaration of a general banking moratorium by federal, State of New York or State of California authorities, or the general suspension of trading on any national securities

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11 exchange or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on the New York Stock Exchange or other national securities exchange, whether by virtue of determination by that exchange or by order of the Securities and Exchange Commission (the “SEC”) or any other governmental authority having jurisdiction that, in the Underwriter’s reasonable judgment, makes it impracticable for the Underwriter to market the Bonds or enforce contracts for the sale of the Bonds; (7) the imposition by the New York Stock Exchange or other national securities exchange, or any governmental authority, of any material restrictions not now in force with respect to the Bonds or obligations of the general character of the Bonds or securities generally, or the material increase of any such restrictions now in force, including those relating to the extension of credit by, or the charge to the net capital requirements of, the Underwriter; (8) the entry of an order by a court of competent jurisdiction which enjoins or restrains the County of San Bernardino, California or any other governmental entity, agency, or instrumentality from issuing permits, licenses or entitlements within the District or which order, in the reasonable opinion of the Underwriter, otherwise materially and adversely affects proposed development of property within the District;
(9) a material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred;
(10) there shall have been any material adverse change in the affairs of the District that in the Underwriter’s reasonable judgment will materially adversely affect the market for the Bonds or the ability of the Underwriter to enforce contracts for the sale of the Bonds; (11) there shall be established any new restriction on transactions in securities materially affecting the free market for securities (including the imposition of any limitation on interest rates) or the extension of credit by, or a change to the net capital requirements of, underwriters established by the New York Stock Exchange, the SEC, any other federal or State agency or the Congress of the United States, or by Executive Order; (12) a stop order, release, regulation, or no-action letter by or on behalf of the SEC or any other governmental agency having jurisdiction of the subject matter shall have been issued or made to the effect that the issuance, offering, or sale of the Bonds, including all the underlying obligations as contemplated hereby or by the Official Statement, or any document relating to the issuance, offering or sale of the Bonds is or would be in violation of any provision of the federal securities laws at the Closing Date, including the Securities Act, the Exchange Act, and the Trust Indenture Act of 1939, as amended.
(d) On the Closing Date, the Underwriter shall have received counterpart originals or certified copies of the following documents, in each case satisfactory in form and substance to the Underwriter:
(1) The Formation Documents and the District Documents, together with a certificate dated as of the Closing Date of the City Clerk of the City to the effect that each Formation Document is a true, correct and complete copy of the one duly adopted by the City Council; (2) The Official Statement;

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12 (3) An unqualified approving opinion for the Bonds, dated the Closing Date and addressed to the District, of Stradling Yocca Carlson & Rauth LLP, Bond Counsel for the District, in the form attached to the Preliminary Official Statement as Appendix B, and an unqualified letter of such counsel, dated the Closing Date and addressed to the Underwriter and the Trustee, to the effect that such approving opinion addressed to the District may be relied upon by the Underwriter and the Trustee to the same extent as if such opinion was addressed to it; (4) A supplemental opinion, dated the Closing Date and addressed to the Underwriter, of Stradling Yocca Carlson & Rauth LLP, Bond Counsel for the District, to the effect that (i) the District Documents have been duly authorized, executed and delivered by the District, and, assuming such agreements constitute a valid and binding obligation of the other parties thereto, constitute the legally valid and binding agreements of the District enforceable in accordance with their terms, except as enforcement may be limited by bankruptcy, moratorium, insolvency or other laws affecting creditor’s rights or remedies and may be subject to general principles of equity (regardless of whether such enforceability is considered in equity or at law); (ii) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Bond Indenture is exempt from qualification under the Trust Indenture Act of 1939, as amended; (iii) the information contained in the Official Statement on the cover and under the captions “INTRODUCTION,” “THE BONDS,” “SECURITY FOR THE BONDS,” “CONCLUDING INFORMATION – Tax Matters” and Appendices A and B thereof (except that no opinion or belief need be expressed as to any financial or statistical data contained in the Official Statement), insofar as it purports to summarize or replicate certain provisions of the Law, the Bonds and the Bond Indenture and the exclusion from gross income for federal income tax purposes and exemption from State of California personal income taxes of interest on the Bonds present a fair and accurate summary of such provisions; (iv) the District is a community facilities district duly organized and validly existing pursuant to the Act, with full legal power and authority to issue the Bonds, to enter into the District Documents, and to carry out the transactions contemplated under the District Documents; and (v) the Special Tax has been duly and validly authorized in accordance with the provisions of the Law and, except as the same may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights, by equitable principles and by the exercise of judicial discretion in appropriate cases, constitutes a valid and legally binding lien on the properties upon which it will be levied;
(5) An opinion, dated the Closing Date and addressed to the Underwriter, of Best Best & Krieger LLP to the effect that, without having undertaken to check the accuracy, completeness or fairness of, or verifying the information contained in the Official Statement, and are therefore unable to make any representation in that regard, such firm has participated in conferences prior to the date of the Official Statement with the City’s and the District’s representatives, including Bond Counsel and the City Attorney, representatives of the Underwriter, and others, during which conferences the contents of the Official Statement and related matters were discussed and based upon the information made available to such firm in the course of its participation as Underwriter’s counsel in such conferences and its review of the documents referred to above, its reliance on the documents, certificates, instructions, and records, and the opinions of counsel described above and its understanding of applicable law, such firm does not believe that the Official Statement as of its date contained, or as of the date hereof contains, any untrue statement of a material fact, or as of its date omitted to state a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances under which they were made, not misleading (provided that no view shall be expressed as to any information concerning DTC or the book-entry system, any

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13 information contained under the Appendices A through H or with respect to any financial, economic, demographic, statistical or engineering data or forecasts, numbers, charts, tables, estimates, projections, appraisals or assessed valuations contained in the Official Statement, including any of the Appendices thereto);
(6) A certificate or certificates, dated the Closing Date and signed by an authorized officer of the District, ratifying the use and distribution by the Underwriter of the Preliminary Official Statement and the Official Statement in connection with the offering and sale of the Bonds; and certifying that (i) the representations and warranties of the District contained in Section 2 hereof are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) to the best of his or her knowledge, no event has occurred since the date of the Official Statement affecting the matters contained therein which should be disclosed in the Official Statement for the purposes for which it is to be used in order to make the statements and information contained in the Official Statement not misleading in any material respect, and the Bonds, the Formation Documents and the District Documents conform as to form and tenor to the descriptions thereof contained in the Official Statement; (iii) the District has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied under the Formation Documents, the District Documents and the Official Statement at or prior to the Closing Date; and (iv) the representations and warranties of the District contained in the District Certificate are true and correct in all material respects on and as of the Closing Date, with the same effect as if made on the Closing Date, except that all references therein to the Preliminary Official Statement shall be deemed to be references to the Official Statement; (7) An opinion, dated the Closing Date and addressed to the Underwriter, of the City Attorney, to the effect that (i) the representations of the District set forth in the District Documents are, as to all matters of law, true and accurate in all material respects on and as of the date hereof as though made on such date; (ii) the District Resolutions were duly adopted at meetings of the City Council, which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout; and such resolutions are in full force and effect and have not been modified, amended, or rescinded as of the date hereof; (iii) the District Documents, assuming due authorization, execution and delivery by the other parties thereto, are legal, valid, and binding obligations of the District, enforceable in accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws relating to or limiting creditors’ rights generally and by the principles of equity if equitable remedies are sought; (iv) to my knowledge, the execution and delivery of the District Documents and compliance by the District with the provisions thereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute on the part of the District a breach of or default under any agreement or other instrument applicable to or binding upon the District, or any existing law, regulation, court order, or consent decree to which the District is subject; (v) the Official Statement has been duly approved by the District; and (vi) there is no action, suit, proceeding, inquiry, or investigation before or by any court, public board, or body pending with respect to which the City or the District has been served with process or, to my knowledge, threatened in writing against the City or the District, wherein an unfavorable decision, ruling, or finding would: (a) affect the creation, organization, existence, or powers of the City or the District, or the titles of their respective officers or the City Council members to their respective offices; (b) enjoin or restrain the issuance, sale, and delivery of the Bonds, the lien, the levy, and the collection of the Special Tax, or the pledge thereof; (c) questions the rights, powers, duties, or obligations of the District with respect to the Special Tax or the moneys and assets pledged or to be pledged to pay the principal of, premium, if any, or interest on the Bonds;

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14 (d) questions the authority for the issuance of the Bonds, the validity or enforceability of the Bonds, or the District Documents; or (e) questions the transactions contemplated by the District Documents or the Official Statement;
(8) A letter, dated the date of the Closing and addressed to the Underwriter and the District, of Stradling Yocca Carlson & Rauth LLP, Newport Beach, California, disclosure counsel (the “Disclosure Counsel”), to the effect that, without having undertaken to determine independently the accuracy or completeness of the statements contained in the Official Statement, but on the basis of their participation in conferences with representatives of the District, the Special Tax Consultant and others, and their examination of certain documents, nothing has come to their attention which has led them to believe that the Preliminary Official Statement as of its date and as of the date of the Purchase Agreement and the Official Statement as of its date and as of the date of the Closing contained or contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (except that no opinion or belief need be expressed as to any financial statements or other financial, statistical or engineering data or forecasts, numbers, charts, estimates, projections, assumptions, any information about valuation, appraisals, absorption, archeological or environmental matters, or any information about The Depository Trust Company or the book-entry-only system);
(9) A certificate dated the Closing Date from Willdan Financial Services (the “Special Tax Consultant”) addressed to the District and the Underwriter to the effect that (i) the amount of the Special Taxes that could be levied in each Fiscal Year on all Parcels (as defined in the Rate and Method of Apportionment of Special Tax) of Developed Property in the District that are not delinquent in the payment of any Special Taxes then due and owing is at least one hundred ten percent (110%) of the total Annual Debt Service for each such Fiscal Year on the proposed Bonds, plus reasonably anticipated Administrative Expenses, and (ii) all information supplied by them for use in the Official Statement is true and correct as of the date of the Official Statement and as of the Closing Date;
(10) A certificate of the District dated the Closing Date, in a form acceptable to Bond Counsel, that the Bonds are not arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended;
(11) A certificate of the Trustee and an opinion of counsel to the Trustee dated the Closing Date and addressed to the District and the Underwriter to the effect that the Trustee has authorized the execution and delivery of the Bond Indenture and that the Bond Indenture is a valid and binding obligation of the Trustee enforceable in accordance with its terms (12) A certificate of the Escrow Agent and an opinion of counsel to the Escrow Agent dated the Closing Date and addressed to the District and the Underwriter to the effect that the Escrow Agent has authorized the execution and delivery of the Escrow Agreement and that the Escrow Agreement is a valid and binding obligation of the Escrow Agent enforceable in accordance with its terms;
(13) Evidence that the Bonds have received an underlying rating of “___” and the Insured Bonds an insured rating of “AA” by S&P Global Ratings; (14) G-17 letter from the Underwriter acknowledged by the District;

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15 (15) The Policy, duly executed by the Insurer, relating to the Insured Bonds; (16) The Reserve Policy, duly executed by the Insurer;
(17) An opinion of counsel to the Insurer, dated the Closing Date, addressed to the District and the Underwriter, in form and substance satisfactory to the Underwriter and Bond Counsel;
(18) A certificate or certificates of the Insurer, dated the Closing Date, as to the accuracy of the information relating to the Insurer, the Policy and the Reserve Policy included in the Official Statement and such other matters reasonably requested by the Underwriter and Bond Counsel; and
(19) Such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the Closing Date, of the statements and information contained in the Preliminary Official Statement and the Official Statement, of the District’s representations and warranties contained herein and the due performance or satisfaction by the District at or prior to the Closing of all agreements then to be performed and all conditions then to be satisfied by the District and the District in connection with the transactions contemplated hereby and by the Official Statement.

If the District shall be unable to satisfy the conditions to the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds contained in this Purchase Agreement, or if the obligations of the Underwriter to purchase, accept delivery of and pay for the Bonds shall be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall terminate and neither the Underwriter nor the District shall be under any further obligation hereunder, except that the respective obligations of the District and the Underwriter set forth in Section 5, Section 6 and Section 8 hereof shall continue in full force and effect.

4. Conditions of the District’s Obligations. The District’s obligations hereunder are subject to the Underwriter’s performance of its obligations hereunder, and are also subject to the following conditions:
(a) As of the Closing Date, no litigation shall be pending or, to the knowledge of the duly authorized officer of the District executing the certificate referred to in Section 3(c)(6) hereof, threatened, to restrain or enjoin the issuance or sale of the Bonds or in any way affecting any authority for or the validity of the Bonds, the Formation Documents, the District Documents or the existence or powers of the District; and
(b) As of the Closing Date, the District shall receive the approving opinion of Bond Counsel referred to in Section 3(c)(3) and (5) hereof, dated as of the Closing Date.

5. Expenses.
(a) The Underwriter shall be under no obligation to pay, and the District shall pay or cause to be paid (solely from proceeds of the Bonds) all expenses incident to the performance of the District’s obligations hereunder, including, but not limited to, the cost of printing, engraving and delivering the Bonds to the Underwriter, the cost of preparation, printing, distribution and delivery of the Bond Indenture, the Preliminary Official Statement, the Official Statement and all other

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16 agreements and documents contemplated hereby (and drafts of any thereof) in such reasonable quantities as requested by the Underwriter; and the fees and disbursements of the Trustee for the Bonds, Bond Counsel, Financial Advisor, Special Tax Consultant, and any accountants, engineers or any other experts or consultants the District has retained in connection with the Bonds; and (b) The District shall be under no obligation to pay, and the Underwriter shall pay, any fees of the California Debt and Investment Advisory Commission, the cost of preparation of any “blue sky” or legal investment memoranda and this Purchase Agreement; expenses to qualify the Bonds for sale under any “blue sky” or other state securities laws; and all other expenses incurred by the Underwriter in connection with its public offering and distribution of the Bonds (except those specifically enumerated in paragraph (a) of this section), including any advertising expenses.

6. Notices. Any notice or other communication to be given to the District under this Purchase Agreement may be given by delivering the same in writing to the District at 100 Civic Center Mall, Indio, California 92201, Attention: City Manager; and any notice or other communication to be given to the Underwriter under this Purchase Agreement may be given by delivering the same in writing to Piper Sandler & Co., 1777 Botelho Drive, Suite 345, Walnut Creek, California 94596 Attention: Ralph Holmes.

7. Parties in Interest. This Purchase Agreement is made solely for the benefit of the District and the Underwriter (including their successors or assigns), and no other person shall acquire or have any right hereunder or by virtue hereof.

8. Survival of Representations and Warranties. The representations and warranties of the District set forth in or made pursuant to this Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Purchase Agreement and regardless of any investigations made by or on behalf of the Underwriter (or statements as to the results of such investigations) concerning such representations and statements of the District and regardless of delivery of and payment for the Bonds.

9. Effective. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the District and shall be valid and enforceable as of the time of such acceptance.

10. No Prior Agreements. This Purchase Agreement supersedes and replaces all prior negotiations, agreements and understandings between the parties hereto in relation to the sale of Bonds for the District.

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11. Governing Law. This Purchase Agreement shall be governed by the laws of the State of California.

12. Counterparts. This Purchase Agreement may be executed simultaneously in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument.

Very truly yours,
PIPER SANDLER & CO.

By:

Authorized Signatory
ACCEPTED:

CITY OF INDIO COMMUNITY FACILITIES
DISTRICT NO. 2004-3 (TERRA LAGO)
By:

Authorized Signatory
Time of Execution: __________________

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EXHIBIT A

MATURITY SCHEDULE
CITY OF INDIO COMMUNITY FACILITIES DISTRICT NO. 2004-3
(TERRA LAGO) IMPROVEMENT AREA NO. 1
2026 SPECIAL TAX REFUNDING BONDS
Maturity Date
(September 1)
Principal
Amount Interest Rate Yield Price
______________
* Term Bonds.
** Yield to optional redemption date of September 1, 202__ at par.

The purchase price of the Bonds shall be $_________, which is the principal amount thereof ($___________) plus net original issue premium of $_________ and less Underwriter’s discount of $___________.

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Maturity Date
(September 1)
10% Test
Satisfied
10% Test
Not
Satisfied
Subject to
Hold-The-
Offering-Price
Rule

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EXHIBIT B
CITY OF INDIO COMMUNITY FACILITIES DISTRICT NO. 2004-3
(TERRA LAGO) IMPROVEMENT AREA NO. 1
2026 SPECIAL TAX REFUNDING BONDS
RULE 15c2-12 CERTIFICATE
The undersigned hereby certifies and represents that he is the City Manager of the City of Indio acting as the legislative body of the City of Indio Community Facilities District No. 2004-3 (Terra Lago) (the “District”), and, as such, is duly authorized to execute and deliver this certificate and further hereby certifies that:
(1) this certificate is being delivered in connection with the sale and issuance of the City of Indio Community Facilities District No. 2004-3 (Terra Lago) Improvement Area No. 1 2026 Special Tax Refunding Bonds (the “Bonds”) in order to enable the underwriter of the Bonds to comply with Rule 15c2-12 promulgated under the Securities and Exchange Act of 1934, as amended (the “Rule”);
(2) in connection with the sale and issuance of the Bonds, there has been prepared a Preliminary Official Statement dated ________, 2026 setting forth information concerning the Bonds and the District (the “Preliminary Official Statement”); and (3) except for the Permitted Omissions, the Preliminary Official Statement is deemed final within the meaning of the Rule. As used herein, the term “Permitted Omissions” refers to the offering price(s), interest rates(s), selling compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings and other terms of the Bonds depending on such matters, all as set forth in the Rule.

IN WITNESS WHEREOF, I have hereunto set my hand as of __________, 2026.

CITY OF INDIO COMMUNITY FACILITIES
DISTRICT NO. 2004-3 (TERRA LAGO)
By:

Its: City Manager

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EXHIBIT C

FORM OF ISSUE PRICE CERTIFICATE
$___________
CITY OF INDIO COMMUNITY FACILITIES DISTRICT NO. 2004-3
(TERRA LAGO) IMPROVEMENT AREA NO. 1
2026 SPECIAL TAX REFUNDING BONDS
The undersigned, on behalf of Piper Sandler & Co. (the “Underwriter”) hereby certifies as set forth below with respect to the sale and issuance of the above-captioned obligations (the “Bonds”).

1.Sale of General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity of the Bonds was sold to the Public is the respective price listed in Schedule A.

2.Defined Terms.
(a)General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.”
(b)Issuer means City of Indio Community Facilities District No. 2004-3 (Terra Lago).
(c)Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
(d)Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.

The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (e)Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).

The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents the Underwriter’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate relating to the Bonds and with respect to compliance with the federal income tax rules affecting the Bonds, and by

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Stradling Yocca Carlson & Rauth LLP, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.

PIPER SANDLER & CO.

By:_______________________________________
Name:_____________________________________
Dated: ________, 2026

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City Council
December 17, 2025

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Brian Halvorson, Dir. Of Community Development Subject: Urgency Ordinance No. 1829, extending the Gas Station Moratorium Ordinance No. 1828 to allow staff reasonable time to study and draft amendments to the Unified Development Code.

RECOMMENDATION:

Staff recommends that the City Council adopt Urgency Ordinance No. 1829, extending the Gas Station Moratorium Ordinance No. 1828 for ninety (90) days.

SUMMARY:

As directed by the Council on December 3, 2025, an extension is needed for a previously approved 45-day interim gas station moratorium Ordinance No. 1828 which is set to expire on January 18, 2026. Due to the cancellation of the first Council meeting on January 7, 2026, the next regular meeting will be on January 21, 2026, which is past the expiration date of the existing 45-day moratorium. Therefore, to maintain a moratorium on gas stations, an extension is required. Pursuant to Gov’t Code Section 65858, the extension requires a four-fifths vote from the Council for adoption and could be up to an additional 10 months and 15 days. Staff does not believe that much time is needed to bring back an analysis and suggestions for development standards, as further explained below. An extension of 90 days should provide an adequate amount of time for staff to review specific topic areas as directed by the Council for restricting and improving new gas stations Citywide. If directed by the Council prior to the end of the extension, options to amend the Unified Development Code will be brought back to the Planning Commission before returning to the Council for final approval.

BACKGROUND INFORMATION:

There was a consensus from the Council to review, study, and consider new development standards to be contained with the Unified Development Code that would address the following areas related to the development of new gas stations:

A. Saturation/Concentration:The number of gas stations in specific geographic areas of the City will be reviewed and analyzed to determine if certain areas are saturated (too many in a given location). Saturation will be defined and the potential allowance for a given number of gas stations will be explored. In addition, mapping of all stations will be used to get a better view of the layout of gas stations on the street grid. Research on other cities in the Coachella Valley will be completed and presented as part of this review.

AGENDA ITEM #12.1
Urgency Ordinance No. 1829, extending the Gas Station Moratorium Ordinan... Page 349 of 354 B. Spacing:The amount of space that is appropriate between gas stations will be reviewed and potential options for specific distances that could be applied to restrict gas stations from locating too close to one another will be analyzed.

C. Distances from Residential Uses:Setbacks, buffers, and design standards will be reviewed to consider an appropriate distance that a gas station could be located near residential uses.

This could also include restrictions near schools as well with a goal of preserving quality of life in neighborhoods.

D. Landscaping:Additional landscaping standards will be researched to determine if increased landscaping and specific types of landscaping should be required for gas stations in order to beautify this type of land use while also helping to reduce vehicular emissions.

E. Amenities:Potential types of amenities will be explored with the goal of gas stations becoming more of an “asset” to the community instead of solely a fueling station. Art, electric vehicle chargers, outdoor spaces, and other potential benefits will be researched for this topic.

F. Maintenance:of the with analyzed intent will requirements maintenance Additional be ensuring accountability of maintaining gas station properties while also presenting a higher level of cleanliness and upkeep for the public.

G. Fresh Food:Options to require fresh food products at gas station convenience stores will also be reviewed. Although not required, some gas stations in the City already have options for fresh food including some stores that have a small produce area where healthy snacks and/or fresh fruit and vegetables can be purchased.

Conclusion/Next Steps

Staff will begin working on the review of these focus areas that Council has directed staff to further research and then present the conclusions of this analysis prior to the end of the extension period that may be approved by the Council. Prior to the expiration of the extension, Staff will seek Council's who their provide then will Commission the to return and direction Planning recommendations to the Council for consideration at a future meeting before the moratorium expires.

Attachment:

A – Moratorium Ordinance Extension

FINANCIAL SUMMARY:

Current FY Financial
Impact:

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

N/A Budget adjustment: N/A
Next FY Financial
Impact:

N/A Strategic Objective: Community Well-being
Source of funds: N/A Fund-Org-Object
Reference:

N/A

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ALTERNATIVES:

Not approve the Moratorium Extension.

ATTACHMENTS:

Attachment A Gas Station Moratorium Extension

APPROVAL(S):

Ruby D. Walla, Director of Finance Approved - 09 Dec 2025 Jennifer A. Mizrahi, Assistant City Attorney Approved - 11 Dec 2025 Bryan H. Montgomery, City Manager Approved - 11 Dec 2025

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CITY OF INDIO

INDIO, CALIFORNIA
ORDINANCE NO. 1829

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF INDIO, CALIFORNIA, PURSUANT TO
CALIFORNIA GOVERNMENT CODE SECTION 65858,
EXTENDING FOR A PERIOD OF NINETY (90) DAYS THE

INTERIM MORATORIUM ON THE ESTABLISHMENT OR

EXPANSION OF GAS STATIONS ESTABLISHED BY
ORDINANCE NO. 1828
WHEREAS, the City of Indio (“City”) is a municipal corporation organized and operating under the laws of the State of California, with the authority to regulate land use within its boundaries pursuant to its police powers and the Planning and Zoning Law; and WHEREAS, on December 3, 2025, the City Council adopted Ordinance No. 1828, an urgency ordinance establishing a forty-five (45) day moratorium on the establishment, expansion, or intensification of gas stations within the City; and WHEREAS, Ordinance No. 1828 was adopted to address compatibility concerns regarding gas stations, particularly their proximity to residential neighborhoods and sensitive uses such as schools and parks, and to prevent the frustration of contemplated updates to the City's General Plan and zoning regulations; and
WHEREAS, Section 4 of Ordinance No. 1828 directed the City Manager or designee to evaluate the number and location of gas stations, study fueling demand, and develop proposed amendments to the City’s land use regulations regarding siting and spacing; and WHEREAS, City staff has commenced the study and review directed by Ordinance No. 1828, but additional time is required to comprehensively evaluate the data and draft appropriate regulatory amendments; and
WHEREAS, Ordinance No. 1828 is scheduled to expire forty-five (45) days after its adoption, unless extended by the City Council in accordance with California Government Code Section 65858; and
WHEREAS, Government Code Section 65858(a) authorizes the City Council to extend an interim urgency ordinance for a specified period of time, provided that the extension is adopted by a four-fifths (4/5) vote and follows notice and a public hearing; and WHEREAS, notice of the public hearing on this extension was given as required by law, and the City Council conducted a public hearing on December 17, 2025 to consider the extension of the moratorium.

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

SECTION 1. FINDINGS.

The City Council hereby finds and determines that the above recitals are true and correct and incorporates them herein as substantive findings in support of this Ordinance. In addition, the City Council specifically finds:

A. There continues to be a current and immediate threat to the public health, safety, and welfare, in that the approval of additional gas stations or the expansion of existing stations under current regulations would likely result in land uses that are incompatible with surrounding neighborhoods and inconsistent with the General Plan and zoning amendments currently being studied.

B. The approval of additional entitlements for gas stations during the extended moratorium period would result in that threat to public health, safety, or welfare by allowing development that may conflict with the City’s long-term objectives for public safety and land use compatibility.

C. The City has taken substantial steps to alleviate the condition which led to the adoption of the moratorium, including initiating the studies described in the written report issued pursuant to Government Code Section 65858(d), but additional time is necessary to complete the planning process and adopt permanent regulations
SECTION 2. MORATORIUM EXTENDED.

Pursuant to Government Code Section 65858, the interim moratorium established by Ordinance No. 1828 is hereby extended for an additional period of ninety (90) days. During this extended period, the prohibitions, regulations, and provisions set forth in Ordinance No. 1828 shall remain in full force and effect.

SECTION 3. CONTINUED EXEMPTIONS.

This Ordinance extends the exemptions provided in Section 5 of Ordinance No. 1828.

SECTION 4. SEVERABILITY.

If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

Urgency Ordinance No. 1829, extending the Gas Station Moratorium Ordinan... Page 353 of 354 SECTION 5. CEQA.

The City Council finds that this Ordinance is not a “project” or is otherwise exempt from the California Environmental Quality Act (“CEQA”) and State CEQA Guidelines (Title 14, California Code of Regulations) under Section 15060(c)(2), because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment.

SECTION 6. EFFECTIVE DATE; DURATION; EXTENSION.

This Ordinance is adopted as an urgency measure extension pursuant to Government Code Section 65858 and shall take effect immediately upon its adoption by at least a four-fifths (4/5) vote of the City Council. This extension shall expire ninety (90) days from the expiration of the initial 45-day period established by Ordinance No. 1828, unless further extended by the City Council in accordance with Government Code Section 65858.

PASSED, APPROVED, AND ADOPTED this 17 th day of December, 2025, by the following vote:

YES:

NOES:

ABSENT:

ABSTAIN:
____________________________
Elaine Holmes, Mayor
ATTEST:
_______________________________
Sabdi Sanchez, Director of City Clerk Services
APPROVED AS TO FORM:
_______________________________
Steven Graham Pacifico, City Attorney

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