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c. Provide relevant performance statistics on a comparable portfolio and compare with industry averages or benchmarks last for the three, five, ten one, - these Note inception. whether and/or period year since performance statistics are reported based on GIPS (Global Investment Performance Standards) formerly known as AIRM (Association for Investment Management and Research).
We have included performance for two of Chandler’s composite strategies most commonly used by our public agency clients: Chandler’s Limited Maturity (1-3 year strategy) and Short Term Bond (1 -5 year strategy). These an duration modified average with individually managed of comprised are composites strategy accounts approximately equal to the modified duration of the ICE BofA 1- 3 Year US Treasury Index and the ICE BofA 1-5 Year US Treasury & Agency Index, respectively, and a final stated maturity of individual securities of five years.
The performance of each strategy is compared to its appropriate benchmark. Performance statistics are reported based on GIPS. Our GIPS performance composites for both strategies and verification report are provided in the Appendix.
Composite Performance – Gross and Net of Fees*
Based on Chandler’s Limited Maturity (1-3 year strategy) and Short Term Bond (1-5 year strategy) composites as of December 31, 2025. Please see the GIPS Composite Reports in the Appendix. Past performance is not indicative of future results. Performance is presented gross and net of investment management fees. *Net returns are for a sample fee of 6 basis points (0.06 of 1%). All investment strategies have the potential for prof it or loss. Market conditions or economic may alter the performance and factors r greater than For one annualized. one year is periods portfolio. Performance for of a esults - on-one presentation only. Please refer to Important Disclosures in the Appendix. d. How many accounts have you gained in the last 12 months? How many accounts have been lost in the last 12 months and why?
As of December 31, 2025, we gained 12 institutional accounts and lost 6. Occasionally, clients choose not to renew an budgetary include may reasons. These various contract services or management investment for advisory constraints, spending down investable assets, or internal changes in finance administration/staff.
6. INVESTMENT MANAGEMENT APPROACH AND DISCIPLINE
a. Briefly describe your firm’s investment management philosophy, including your approach to managing governmental portfolios.
Investment Philosophy
We believe that through effective risk management, we can enhance the potential for higher total returns for risk- conscious clients while maintaining their shared primary objectives of safety, liquidity, and return. Our approach uses investment processes and strategies we have developed over three decades and focuses on:
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• Safety of principal1
• Appropriate levels of liquidity
• Diversification of risk
• Compliance with policies, legal requirements, and risk/return objectives • Active management to generate investment income and total return Our goal is to consistently exceed market benchmarks that reflect the overall risk profile of the City over a market cycle. We aim to mitigate risk by diversifying the portfolio across sectors, credit quality, maturity, sub sectors, and issuers.
Chandler’s focus stems from our clients' collective philosophy that safety and liquidity are higher priority than chasing returns that may put their principal at increased risk. As a result, we take a risk management approach to all aspects of the investment and portfolio management process.
Investment Approach
Our process for establishing investment objectives and constraints for the City is customized after an extensive review and thorough understanding of the investment policy and the current and expected needs of the City, and its financial staff. We believe that a successful investment program focuses on the following elements:
• Duration. We strive to maintain duration (the portfolio’s price sensitivity to changes in interest rates) within a defined range that reflects the City’s return requirements and acceptable volatility. We will work with City staff to identify a target duration range to limit relative market risk. • Term Structure. Using the market outlook from our Economic and Market Analysis Committee and the output of our Horizon Analysis Model, the term structure for the portfolio is structured to prioritize the protection and return of the portfolio under both anticipated and unanticipated shifts of the yield curve over a six -month horizon. Depending on our outlook and market conditions, the po rtfolio may have a “laddered” structure, with equal allocations across permitted maturities, a “barbell” structure, with maturities concentrated in short and long maturities, or a “bullet” structure, with maturities concentrated around the target duration. As interest rates evolve, the Chandler team alters the maturity distribution of the portfolio based on the prevailing market conditions. • Diversification. Chandler will develop a well-diversified portfolio based on the City’s investment policy.
Our sector allocation strategy provides broad diversification by sector and by issuer and works to minimize exposure to credit risk. We can add considerable value through rotating sectors, thus identifying the best relative value at time of purchase. Additionally, if the City takes advantage of all sectors allowed by State Code, we will be able bring our extensive credit and investment analytic capabilities to further diversify the portfolio and increase potential return.
• Credit Quality. We employ a robust credit analysis process that helps us identify investment opportunities in securities appropriate for the investment of public funds. We believe that each client should establish credit quality constraints that reflect the community’s r isk preference. These constraints may be more conservative than State Code. Within that framework, we will purchase securities that our credit and value analyses have identified as having value and being appropriate for the City’s portfolio. We will limit our investment in corporate securities to highly rated companies, subject to the City’s restrictions. • Total Return. We search diligently to add value at every stage in our process. We manage the portfolio with the goal of enhancing return and long-term growth within the constraints of the City’s risk profile
1 While our conservative investment approach promotes safety, investing in securities carries varying degrees of risk and we cannot guarantee safety of principal.
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and return objectives. Finally, we strive to find the best execution for each transaction, seeking multiple price quotations on all purchases and sales.
• Security Selection. Chandler employs a proprietary credit analysis process designed to identify stable and improving credits while detecting weak and deteriorating credits to avoid or remove from client portfolios.
It includes both qualitative and quantitative aspects.
• Periodic Rebalancing. With the passage of time, portfolio characteristics drift away from the desired structure. We rerun the Horizon Analysis Model monthly and rebalance the portfolio as markets and our investment process evolve to support our targeted performance. b. Describe the mechanics of how your firm proposes to execute transactions on behalf of the City.
The City's investment policy dictates the authorized investments that are suitable for their unique risk tolerance.
Spread products, corporates, supranationals, municipals, and structured products are subject to our rigorous credit which analysis process, recommend professionals investment list. Our approved an in results issuer securities from the approved issuer list based on relative value considerations.
Trades
Chandler will buy and sell approved securities on a transparent and highly competitive basis, in accordance with our commitment to best execution. The main consideration for broker selection is best execution, including best price and reliability of delivery. As part of this process, we seek a broad r ange of security trading partners that provide a high level of market liquidity and product inventory. We seek a minimum of three quotations which are documented on trade tickets and reported to clients at the time of execution. The selected broker then de livers securities directly to your custodian bank, using standard delivery-versus-payment procedures.
In seeking best execution, we “block” trades for a number of clients where possible and then allocate the trades to individual portfolios using an allocation process designed to treat all clients fairly in the transaction. We execute transactions through online trading platforms, such as Bloomberg and MarketAxess, or directly through individual brokers with the goal of seeking competitive executions.
Trade Monitoring & Oversight
Chandler has a robust process for maintaining portfolio compliance with client objectives, policies, and directives.
The Firm utilizes monitor system to compliance management and trade order AIM the Bloomberg portfolio compliance with client investment guidelines. Each element of a client’s investment policy and guidelines is hard coded into the system by one of the Firm ’s compliance professionals. Pre-trade compliance testing is activated each time a Portfolio Manager prepares to execute a transaction. The system prohibits execution of the trade if it does not comply with the policy. If an “alert” is triggered for non-compliance, it cannot be lift ed by a portfolio manager. Chandler maintains a Compliance team member alongside our portfolio management team to address any trading compliance issues and respond expediently.
Reporting
As a part of our regular process of policy and guideline monitoring, we provide clients with a monthly detailed Statement of Compliance, where we detail adherence to requirements such as permitted investments, minimum credit quality, maximum maturities, and concentration limits. This statement also serves as an effective means of reporting compliance to the governing body.
In addition to providing pre-trade compliance, Bloomberg AIM integrates seamlessly with Chandler’s accounting system. Our Chandler’s to information send executed electronically professionals investment transaction investment operations professionals for se ttlement processing and broker/custodian notification. Transactions
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are then electronically imported into the portfolio accounting/reporting system. We designed these controls to provide appropriate separation of duties and to reduce the possibility of human error in the process.
Providing Liquidity
We recognize that liquidity is second only to safety on our clients’ list of objectives. We actively assist our clients in developing and maintain cash flow forecasts and to manage liquidity. We will review historical balances and assist your staff in developing and maintaining cash flow forecasts to both manage liquidity, and mark the funds available to be invested in longer -term strategies to capture additional yield opportunities. One of the primary tasks at the beginning of the engagement will be to understand the pattern of your cash flows. A straightforward historical analysis cash balances is a simple but method for determining liquidity needs. Future of effective liquidity needs will be accommodated in advance so that cash is available on the date yo u need it. Generally, all securities in the portfolio are liquid and available for sale in case of any unforeseen or emergency cash distribution.
We encourage our clients to maintain balances in money market funds and other short-term investments.
Chandler’s approach to structuring portfolios is designed to be scalable to changes in your investment program or cash flow needs.
c. How frequently do you formulate and review fixed income strategy? How is that carried out and who is involved?
The investment team employs an integrated multi -committee structure designed to facilitate effective analysis, decision-making, and consistent performance across strategies on an ongoing basis. The underlying committees have broad representation across the overall investment team to oversee breadth of input into the investment process:
• The Investment Risk Committee is the standing decision -making body within the Firm’s overall governance framework charged with providing Firmwide oversight of portfolio risk, investment positioning, and strategy. The Committee receives input from, provides governance over, and coordinates the output of the Firm's underlying sector and discipline specific investment committees (Economic and Market Multi Pool, Investment Credit, Analysis, - Committee The Strategy). Portfolio Asset Class, and establishes Firmwide risk budgets across investm ent strategies, including duration targets, sector allocation parameters, and term structure guidelines. The Committee monitors market liquidity, idiosyncratic risk across strategies, review s portfolio and composite level performance, and ultimately provides the overall framework to deliver consistent, risk adjusted total returns over an investment cycle to our clients.
• The Economic and Market Analysis Committee assesses the current and forward-looking macroeconomic environment to inform Chandler’s tactical and strategic market outlook and support portfolio positioning across Chandler investment strategies. The Committee is responsible for periodically updating our interest rate forecast, based on a six-month time horizon, to further support our outlook on markets and as inputs into the proprietary Horizon Analysis Model. Additionally, the Committee is responsible for prov iding Chandler’s growth, inflation, and monetary policy outlook to the Portfolio Management Risk Committee. • The Credit Committee evaluates issuers for inclusion, monitoring, and possible removal from the Firm’s approved issuer list. In determining the suitability of a security, the Credit Committee analyzes company fundamentals with a focus on relative balance sheet strength and the overall earnings outlook of the issuer, with Chandler’s view of the forward paired -looking macroeconomic environment. After determining the fundamental outlook of an issuer, the Credit Committee focuses on the relative value of current and historical spreads of both the issuer and its industry sector. Chandler’s internal credit process is designed to identify and evaluate changing fundamentals and the current relative value of issuers versus sector peers.
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• The Local Government Investment Pool (LGIP) Committee oversees the risk management of our LGIP strategy, provides updates on money market indicators, presents key risk metrics, and establishes portfolio targets. The Committee is also responsible for preparing presentation material for pool performance, asset flows, and competitiveness.
• The Portfolio Strategy Committee creates investment topic discussions, attends local and national The discussions/questions. client relevant information provides and conferences, investment on Committee is responsible for communications, webinars, speaking engagements, quarterly reviews, and white papers.
• The Multi-Asset Class (MAC) Committee prepares the Firm’s capital market assumptions, basing them on the Firm’s analysis of the global markets and our forward-looking outlook of the market environment. The committee then develops the Efficient Frontier and reviews and recommends initial and ongoing portfolio asset allocations and fund vehicles for our clients.
d. What are the primary strategies for adding value to portfolios (e.g. Market timing, credit research, trading)? to management, portfolio approach is we take a that distinctive in philosophy Chandler's risk management prioritizing safety and liquidity before seeking returns, as stipulated by State Code. Chandler’s proactive portfolio management, add and portfolios client value to needs and cash to attention analysis, security diligent flow promote consistent returns over time, due to the following key elements:
• Duration Management. We will work with the City to identify an appropriate duration target that takes advantage of longer maturity investments with higher yields, while limiting volatility and providing for needed liquidity. We attempt to minimize the impact of the duration d ecisions on return volatility by limiting duration to within a +/- 20% duration band around the target (benchmark) duration. • Sector Allocation. Our sector allocation process is based on the belief that portfolios are more robust and prepared if they have events unforeseen for well- high to diversified exposure - fixed quality, -income securities across eligible investment types. Using the output of the Sector Committee and the overall Investment Committee, allocate we economic best the provide we believe classes asset to will opportunities and protection for the portfolio. We can add considerable value through rotating sectors as market conditions evolve and our outlook changes, identifying best relative value to capitalize on market opportunities.
• Security Selection. Once the team has determined the percentage of the portfolio in any duration range or Chandler’s structure. portfolio the to individual securities purchase we security type, complete investment team closely follows trends in the new issue market to take advantage of the cyclical swings in issuance and obtain attractive spreads over the risk -free Treasury rate. The seasoned professionals at Chandler names the in various investment technical differences versed in the well also are between universe and frequently adjust the underlying name and sector exposure to take advantage of market anomalies skilled investors can consistently identify. Securities are subjected to a rigorous review process, including fundamental credit analysis and quantitative analysis using proprietary tools.
Our on list issuer approved based from purchase securities for professionals select investment an underlying credit fundamentals and relative value considerations. In addition, our Credit Committee seeks to identify both improving and deteriorating credits so we can work to reposition client portfolios by seeking market by understood yet determinants detrimental avoiding and favorable factors not participants. Analyzing the credit worthiness of individual issuers to enhance portfolio total returns, while minimizing exposure to idiosyncratic credit and downgrade risk, is a key element in mitigating risk and adding value to our clients’ portfolios.
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• Competitive Execution. We recognize our duty to provide value to our clients and uphold the quality of our services as a fiduciary. The City’s staff is assured that through Chandler’s best execution practices, it is receiving competitive, institutional pricing on transactions, as the Firm seeks a minimum of three quotes per trade, consistent with industry best practices. The practice of competitively bidding for transactions results in an incremental net financial advantage for our clients over time and is an additional source of value in selecting Chandler as investment manager.
• to Portfolio Managers. Access Chandler gives clients direct access the investment team members responsible for making portfolio decisions on the underlying portfolio, allowing for customization and flexibility in your program. Your key investment contacts, and the rest of the investmen t management team, will have a significant understanding of your investment portfolio, its objectives, and where it fits in the overall program.
e. How are portfolios managed (e.g. by team or individual manager)? What is the back-up when the manager is away?
Chandler manages portfolios in a team environment so that all investment team members and client service personnel are familiar with your portfolio. This team approach provides that there will always be professionals available who are knowledgeable about y our portfolio management needs. Successful implementation of the Firm’s all managers portfolio our of as have any upon dependent not is process investment one individual, research, trading, and management responsibilities that benefit all of our client acc ounts. In addition, our client service personnel are adept at handling the non-investment needs of the engagement and will escalate any issues by routing them through the correct channels, if necessary. f. What oversight is provided to portfolio managers?
Portfolio managers use order management (OMS) and portfolio compliance software from Bloomberg AIM for monitoring compliance with client objectives, policies, trust indentures, and legal requirements on a pre -trade, post-trade, and end-of-day basis. At the inception of the relationship, a member of the compliance team codes each element of the investment policy and guidelines into the Bloomberg system. Since each trade originates in the system, pre- compliance trade a execute prepares to portfolio a generated each time is testing manager transaction. The system prohibits execution of the trade if it does not comply with the imputed guidelines. If an issue of non-compliance is identified through the system, it cannot be overridden by an investment team member and is escalated for review by a member of the compliance team.
Chandler’s compliance team is responsible for all regulatory requirements, client guidelines, and Firm policies and procedures. The Firm’s Chief Compliance Officer provides oversight of portfolio compliance and trade compliance management. These duties are conducted separately from the portfolio management team under the appropriate segregation of duties. As a part of our regular process of policy and guideline monitoring, we provide clients with a monthly detailed Statement of Compliance, based on our comp lete review of investments. This report details adherence to quality, credit minimum exposure, permitted asset investments, as such class requirements maximum maturities, issuer size and concentration limits, and compliance with the City’s investment guide lines and legal requirements. This statement also serves as an effective means of reporting compliance to the City Council, City Manager, and other stakeholders, and demonstrates that the City and its adviser take seriously its fiduciary duty to protect taxpayer dollars.
As part of our multi -level compliance process, further procedures to maintain compliance with state laws, your investment policy, and objectives include:
• A daily reconciliation of transactions and cash balances with custodian information • A month-end review of the portfolio to confirm compliance with the investment policy
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• A continuous review process by the Firm’s Credit Committee to maintain credit quality policy standards and our strict quality requirements
• A portfolio structure that satisfies liquidity objectives with short-maturity securities and return objectives with higher duration investments
• Frequent communication between our team and yours to help us stay informed of any new developments that may modify your objectives
• Regular meetings with your staff to provide additional opportunities for a high level review of portfolio composition and performance.
Chandler’s Risk Committee is comprised of the Chief Compliance Officer and seven of the Firm’s senior executives responsible the for a Chandler addition, In maintains and practices management risk Firm’s policies. comprehensive Compliance Manual that covers all subjects relating to our investment activities and responsibility for client assets and safety of information. The Firm’s Compliance Manual includes policies and procedures for internal controls, code of ethics, privacy and information safeguarding, cybersecurity, e-mail communications and social media, insider trading, and all matters related to our investment processes and record keeping.
This sample report is being provided for illustrative purposes to demonstrate Chandler’s compliance procedures. References to specific securities and their characteristics and should examples intended to not and are held in a portfolio securities of be are be or solicitation, an offer, interpreted as not recommendation to purchase or sell any financial instrument, an indication that the purchase of such securities was or will be profitable, or representative of the composition or performance of the portfolio.
All employees are required to provide quarterly disclosures of conflicts of interest and brokerage activities on our internal Code of Ethics platform, in accordance with our Code of Ethics. Furthermore, Chandler conforms to the Code of Ethics and Standards of Professional Conduct as put forth by the CFA Institute. All Chandler employees abide by these standards, placing our clients’ interests and the integrity of the investment management profession above our own, and pledging to act with integrity, competence, and respect in all matters related to our advisory and investment management business. We have a comprehensive compliance program in place that is reviewed annually by our Chief Compliance Officer and overseen by the Risk Committee. g. Describe your firm’s in -house technical and research capabilities. Are outside sources used by the firm on a regular basis? Describe your credit review process. Does your firm assign credit research to specialists? Chandler conducts nearly 100% of research in-house. We augment our analysis with a variety of private research providers, including BCA Research, CreditSights, S&P IQ, Bloomberg, as well as additional research providers.
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Model Analysis Internally our Horizon proprietary developed, such as tools review/security credit our and selection provide the foundation for Chandler’s portfolio construction process. The team keeps abreast of sell - side research from a broad group of domestic and international investment banks. These tools not only provide data for o allow processes but investment our market relevant and current the most access clients ur to information. Chandler’s professionals also conduct ad hoc research projects on issues concerning our industry and clients, and clients, impact changes legislative our studies on such as how in the changes brokerage world, research on new sectors or investment structures.
Proprietary Tools and Resources for Portfolio Construction Model) Model (the Horizon Analysis proprietary Chandler’s the for quantitative foundation portfolio is the construction process. The Model enables our portfolio management team to integrate their research into the portfolio management process in a disciplined and repeatable way. Inputs to the Model include:
• Current yields on Treasury, agency, and corporate securities • Specific client constraints, such as maturity restrictions and maximum sector exposure • Nine different probability- weighted forecasted interest rate scenarios that may occur at the six -month horizon date. Our analysis of current macroeconomic conditions is one of the factors we consider as we develop the nine scenarios that comprise the third input to the Model.
Chandler’s Investment Process
Through an iterative process, the Model generates the most favorable portfolio structure (duration, maturity distribution, and sector allocation), which we define as the structure we expect will outperform the portfolio’s benchmark over a wide range of pos sible future interest rate movements. The investment team then evaluates the portfolio structure using their expertise and judgment and may adjust as they begin portfolio construction.
This combination of a rigorous quantitative structure and experienced qualitative oversight is a hallmark of all of Chandler’s portfolio management activities.
Periodic Rebalancing. With the passage of time, portfolio characteristics tend to drift from the desired structure, so the team reruns the Model each month, reevaluates the portfolio structure, and rebalances to obtain the desired and sector target as market allocation duration conditions change. In addition, the fixed income benchmarks used by our clients for performance measurement are reconstituted monthly; therefore, we realign our portfolios to confirm proper active sector, term structure, and duration allocation relative to the benchmark.
As part of our active management approach, we will also adjust positioning when we find securities of superior value in terms of expected return, reduced risk, or adjust the credit quality of a holding for the portfolio.
In addition to our internal research tools and capabilities, the following external systems and software support our trading, portfolio accounting, and client reporting:
• CWAN (Formerly Clearwater Analytics) : Provides 24/7 web and mobile access to customizable reports, holdings, transactions, ratings, performance calculations and other data. The City will benefit from a
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robust performance and accounting platform that will allow for greater transparency of the City’s investment program.
• Bloomberg AIM - Order Management System : The compliance system used for pre-trade, post -trade, end-of-day compliance testing, and straight -through processing of investment transactions. The City’s investment policy will be integrated into our platform to maintain compliance with State Code. The City will benefit from a holistic approach to compliance across the City's portfolio. • Bloomberg AIM - Effects of Security Purchases/Sale: Bloomberg AIM also allows the portfolio manager to test the effects that new securities will have on an existing portfolio. For example, the team can propose a trade in Bloomberg AIM, and determine what impact the position will have on the portfolio’s overall duration, sector allocation, and credit quality. In addition, we can perform an analysis on how a portfolio will be affected given a specified change in interest rates to monitor that the portfolio will continue to meet objectives investment the methodical approach from to The client. the of City will benefit our management and will have a portfolio that aligns with its strategic goals • Salesforce CRM: Contact management, portfolio settings, report distribution settings.
The City is not required to purchase any additional programs or software utilized for services under this engagement, relieving the need to allocate capital for portfolio construction, policy compliance, financial reporting, and other crucial aspects of managing your funds.
Credit Review Process
Members of the Firm’s Credit Committee conduct credit research as a team using a proprietary process designed to Statistical Organizations Rating Nationally the improving credits. Although stable and identify Recognized (NRSROs) determine the initial eligibility of a security, Chandler does not rely on these ratings to determine whether a security is suitable for a Chandler portfolio. Chandler’s Credit Committee, with input from the entire investment team, further determines the suitability of an investment based on our own internal research and a thorough understanding of each client’s investment objectives and risk tolerances. This combination of qualitative and our with consistent securities in and identify to team the enables quantitative analysis invest clients’ objectives of safety, liquidity, and return.
The dynamic nature of the process also provides the team with the ability to detect weak and deteriorating credits, which may be removed from client portfolios and Chandler’s approved issuer list. In determining the suitability of a security, the Credit Committee analyzes company fundamentals with a focus on relative balance sheet strength and the overall earnings outlook of the issuer, paired with Chandler’s view of the forward-looking macroeconomic environment. After determining the fundamental outlook of an issuer, the Credit Committee focuses on the relative value of current and historical spreads of both the issuer and its industry sector.
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The diagram above reflects the typical credit process applied to Chandler’s strategies. At any given time, other criteria may affect the process.
The Credit Committee meets regularly to rank corporate issuers into three tiers and categorizes those securities based on individual least reviewed are and issuer at Each policy guidelines. and tolerance risk client sector quarterly. The goal is to proactively identify and invest in stable and improving credits, while avoiding deteriorating credits.
h. What percentage of your research is conducted in-house? Describe your research capability.
Chandler conducts nearly 100% of research in-house. We augment our analysis with a variety of private research providers, including BCA Research, CreditSights, S&P IQ, Bloomberg, as well as additional research providers.
Internally developed, proprietary t ools such as our proprietary Model and our credit review/security selection provide the foundation for Chandler’s portfolio construction process. The team keeps abreast of sell-side research from a broad group of domestic and international investment banks. These tools not only provide data for our investment processes but allow our clients access to the most current and relevant market information. Chandler’s professionals also conduct ad hoc research projects on issues concerning our industry and clients, such as changes in the brokerage w orld, studies on how legislative changes impact our clients, and research on new sectors or investment structures.
i. What technical analysis do you use?
We do not rely on pure technical analysis. Instead, we use quantitative measures to support our qualitative insights. Periodically, the investment team applies technical methods to guide the timing of purchases, aiming to buy near the lower end of a recent trading range and sell near the upper end. We also use technical analysis to identify momentum in specific securities or broader indices, helping the team assess market breadth and key support and resistance levels. While technical analysis does not drive our research or portfolio management, it guides certain trading decisions from a timing perspective. j. What role does interest-rate forecasting play in your portfolio management strategy? forward Chandler incorporates - our throughout forecasts assumptions into looking macroeconomic our committee structure. One example is the probability -weighted interest rate scenarios on a forward -looking six- month horizon embedded within our proprietary Model. The probabilities are adjusted multiple times a year, while the actual scenarios are also regularly adjusted to best reflect the range of probable outcomes of interest rates based on the macroeconomic outlook of the Firm’s Economic and Market Analysis sub-committee. Scenarios typically include parallel up and down yield curve changes, as well as nonparallel shifts, and the “unchanged” case.
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We then structure portfolios we expect will outperform the portfolio’s benchmark over a wide range of possible future interest rate movements.
k. How will you handle fluctuating cash flows and the cash forecasting process? We recognize that liquidity is only second to safety on our clients’ list of objectives. We actively assist our clients to develop and maintain cash flow forecasts and to manage liquidity. Our approach to managing cash involves four distinct stages:
I. Cash Flow Projections
One of the primary tasks at the beginning of the engagement and on an ongoing basis will be to understand the pattern of your cash flows. A straightforward historical analysis of cash balances is a simple, but effective, method for determining liquidity needs. For a more detailed cash flow analysis, we provide a template that uses historical revenue and expenditure data by category to project future monthly changes to cash balances.
Our clients have successfully implemented both methodologies with our assistance.
II. Portfolio Segmentation
With an understanding of your cash flow requirements, we will invest to known cash flow dates. For many clients, we implement an approach that segments the portfolio into liquidity and reserve components. The liquidity portfolio is structured to include securities that mature on known cash flow dates, providing sufficient funds for net disbursements over the ensuing six months, and the reserve portfolio is designed to enhance earnings and long-term growth.
III. Liquidity Cushion
Because cash flow projections can only be estimates, we recommend a portfolio structure that includes an additional layer of short-term investments designed to be available for unanticipated cash expenditures.
IV. Reserve Component
Once liquidity needs are met in the portfolio with short-term investments, we turn to investing the remainder of the portfolio in higher returning, longer -term investments that meet your goals for portfolio growth over time. Securities in the reserve portfolio will have active markets and excellent liquidity should an unexpected event require liquidation of some of the securities.
For the City’s bond proceeds accounts we will continue to implement our c ash flow matching strategy where investments are structured so that their maturities and interest payments align with the timing of expected project expenditures.
l. Describe an ongoing daily investment procedure proposed for the City including procedures for trades, security choice, controls, etc., and how you will provide liquidity.
Once the City ’s staff and Chandler ’s investment team have determined the portfolio strategy, the investment team seeks individual securities to complete the portfolio structure. The City's investment policy dictates the authorized investments that are suitable for their unique risk tolerance . Spread products, corporates, supranationals, municipals, and structured products are subject to our rigorous credit analysis process, which results in an approved issuer list. Our investment professionals recommend securities from the approved issuer list based on relative value considerations.
Trades
Chandler will buy and sell approved securities on a transparent and highly competitive basis, in accordance with our commitment to best execution. The main consideration for broker selection is best execution, including best price and reliability of delive ry. As part of this process, we seek a broad range of security trading partners that provide a high level of market liquidity and product inventory. We seek a minimum of three quotations which are
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documented on trade tickets and reported to clients at the time of execution. The selected broker then delivers securities directly to your custodian bank, using standard delivery-versus-payment procedures.
In seeking best execution, we “block” trades for a number of clients where possible and then allocate the trades to individual portfolios using an allocation process designed to treat all clients fairly in the transaction. We execute transactions through online trading platforms, such as Bloomberg and MarketAxess, or directly through individual brokers with the goal of seeking competitive executions.
Trade Monitoring & Oversight
Chandler has a robust process for maintaining portfolio compliance with client objectives, policies, and directives.
The Firm utilizes AIM trade order management and portfolio compliance system to monitor the Bloomberg compliance with client investment guidelines. Each element of a client’s investment policy and guidelines is hard coded into the system by a compliance professional of the Firm. Pre -trade compliance testing is activated each time a Portfolio Manager prepares to execute a transaction. The system prohibits execution of the trade if it does not comply with the policy. If an “alert” is triggered for non-compliance, it cannot be lifted by a portfolio manager.
Chandler maintains a Compliance team member alongside our portfolio management team to address any trading compliance issues and respond expediently.
Reporting
As a part of our regular process of policy and guideline monitoring, we provide clients with a monthly detailed Statement of Compliance, where we detail adherence to requirements such as permitted investments, minimum credit quality, maximum maturities, and concentration limits. This statement also serves as an effective means of reporting compliance to the governing body.
In addition to providing pre-trade compliance, Bloomberg AIM integrates seamlessly with Chandler’s accounting system. Our to transaction Chandler’s send executed investment information electronically professionals investment operations professionals for se ttlement processing and broker/custodian notification. Transactions are then electronically imported into the portfolio accounting/reporting system. We designed these controls to provide appropriate separation of duties and to reduce the possibility of human error in the process.
Providing Liquidity
We recognize that liquidity is second only to safety on our clients’ list of objectives. We actively assist our clients in developing and maintain cash flow forecasts and to manage liquidity. We will review historical balances and assist your staff in deve loping and maintaining cash flow forecasts to both manage liquidity and mark the funds available to be invested in longer -term strategies to capture additional yield opportunities. One of the primary tasks at the beginning of the engagement will be to understand the pattern of your cash flows. A straightforward historical ana lysis Future needs. liquidity determining for effective but a is cash balances of method simple liquidity needs will be accommodated in advance so that cash is available on the date you need it. Generally, all securities in the portfolio are liquid and available for sale in case of any unforeseen or emergency cash distribution.
We encourage our clients to maintain balances in money market funds and other short-term investments.
Chandler’s approach to structuring portfolios is designed to be scalable to changes in your investment program or cash flow needs.
m. How frequently would you suggest your staff meet with The City’s staff? Who will attend these meetings? If we are reselected for this mandate, we will continue to have monthly calls with City staff , meet in person at least quarterly, and be available to address your governing body per the City’s requirements. We encourage ongoing discussions with your staff to keep your investment strategy aligned with your stated goals and objectives while maintaining the flexibility to propose innovative solutions as your needs evolve. We will frequently consult
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with your staff on ways to expand investment guidelines with the intent of monitoring your investment portfolio’s exposure to the broadest opportunity set, providing the potential for enhanced return while still focusing on the primary objectives of safety of principal and access to cash.
7. REPORTING
a. Describe the investment accounting and reporting system used by your firm. uses CWAN Chandler a include that statements We provide monthly and accounting portfolio for reporting. management summary of portfolio characteristics, performance, and full accounting details, including detailed portfolio received interest accruals, transactions, holdings, cost, book value, amortized market original , cost, value, a cash flow summary, maturity, ratings breakdown, and more. Monthly statements are available online via the Chandler client portal. Chandler’s qua rterly investment reports are designed to foster a two -way dialogue between Chandler’s investment professionals and your finance staff. They begin with a concise economic update and an overview of key market indicators. Following these pages is a review fo cusing on investment objectives, performance objectives, and both current and suggested strategies to capture additional yield or provide for cash flow needs. Reports are prepared in accordance with state law and the Governmental Accounting Standards Board (GASB) and are compiled to meet your specific needs. We provide mark-to-market fair value pricing for securities in accordance with GASB 31. Performance for your portfolio will be calculated and reported in compliance with the CFA Institute’s Global Inves tment Performance Standards (GIPS®). We provide 24/7 online access to our portal, which is also designed to be viewed on mobile devices. b. Describe the frequency and format of reports you would provide to City staff. Send a sample.
Monthly Statements: Monthly statements include a summary of portfolio characteristics, performance, and full accounting details. Chandler’s monthly statements conform to reporting standards required under State Code and other guidelines from governing public investments. Statement details include full asset listings including fair market value of investments, issuer, maturity date, interest rate, transactions for the period, and a description of the funds and investment programs. In addition, Chandler offer s its clients transparency through a Statement of Compliance with state legal requirements and the investment policy, and a one-page summary with portfolio characteristics and total return for various periods compared to market benchmarks.
In addition, Chandler’s reports will detail the following:
• A holdings report, showing security description, par value, cost value, book value, market value, accrued interest, of percent and ratings, S&P Fitch, Moody’s, maturity, duration, yield, book gain/loss, and portfolio for each holding.
• A cash flow projection from upcoming maturities and interest payments. • A transaction ledger that reports all acquisitions, dispositions, interest payments, cash contributions and withdrawals, and any other transactions for the period. • An earned interest report, displaying all interest earnings, including accrued and received interest, amortization and accretion in detail form and summarized.
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Quarterly Reports: We present quarterly investment reports designed to facilitate discussion between Chandler’s investment professionals and the City staff ’s data, economic current reports The stakeholders. and provide a and compliance statements, portfolios, individual aggregate both for characteristics, portfolio and return summary of accounts under management using graphs, charts, and illustrations. We provide this report for our regular presentations to City of Indio.
A copy of the City’s December 31, 2025 report is provided in the Appendix.
Ad-Hoc Reporting: The City will have direct access to a team of dedicated partners at Chandler. If there are ad - hoc reporting requirements, a package can be created for the City that addresses specific needs. Chandler’s professionals at investment your excel transparency provide full of required communication of type the to portfolio and to assist with translating the details of the entire investment program efficiently and effectively. regarding recommendations portfolio? Provide this benchmarks you propose for c. performance What do performance benchmarks for a portfolio similar to that of the City’s. What experience has the firm had in developing benchmarks for public operating portfolios?
Chandler has been developing benchmarks for our clients for over 35 years. Benchmarks are customized after an extensive review expected and the and current the investment both understanding of thorough and policy mandates for the investment portfolio. For the Bond Proceeds portfolio that Chandler currently manages for the City, ICE 1 BofA the we recommend retaining - Treasury This Index. Agency and US Year 5 Unsubordinated benchmark aligns with the portfolio investment objectives and risk tolerance.
In addition to managing the Bond Proceeds portfolio, we believe we can further support the City by helping to manage your Operating Funds. For this type of portfolio, most of clients choose the ICE BofA 1-3 Year US Treasury Index.
8. COST PROPOSAL
a. Provide the complete fee schedule that would apply to this account. Are fees charged in arrears? Chandler is pleased to provide comprehensive, investment management and advisory services to the City as described herein and in the City's Scope of Services in accordance with the following fee schedule:
Proposed Fee Schedule for the City of Indio
Assets Under Management Annual Asset Management Fee
First $50 million 0.09 of 1% (9 basis points)
Next $50 million 0.06 of 1% (6 basis points)
Over $100 million 0.04 of 1% (4 basis points)
Chandler charges management fees only on assets directly under our management. All fees are firm for the entire initial contract term and the City will not be subject to any increases during this period. Fees are charged in arrears. b. What additional expenses not covered through the fee structure will be expected in order to implement your investment Advisor services?
Our proposed fee schedule is all -inclusive for the services that Chandler provides, including full-time investment advisory and portfolio management services, technological resources, onboarding and implementation, online access to our client portal, comprehensive reporting, meetings, personal visits, educational offerings for your staff, and the additional support services described in Chandler’s proposal. Chandler does not charge fees on funds held in Local Government Investment Pools. We charge 1 basis point (0.01%) to report on assets that are not under our direct management. Fees are firm for the entire initial contract term and the City will not be subject to any
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increases period. during this schedule fee Our the include not does charges City third for incur would -party custodial services, which, as an important control in the investment process, are not provided by Chandler.
Should we be reselected to manage the City’s investment program, there will be no additional costs or demands on staff time associated with onboarding a new manager. We would work seamlessly with Procurement and Finance staff to review and execute an updated professional services agreement for approval by staff and council, delivering uninterrupted continuity and stewardship of the City’s investment program.
9. ADDITIONAL INFORMATION
a. Provide a copy of your firm’s most recent ADV Part II as on file with the SEC.
A link to Chandler’s most recent Form ADV, Parts 1 and 2A, and Privacy Notice are provided in the Appendix. b. Describe your firm’s business continuity plan and how often it is updated.
As part of our fiduciary duty to our clients, and as required under securities laws, Chandler has adopted a Disaster Recovery/Business Continuity Plan (the Plan or BCP) to provide for the Firm’s recovery from an emergency or disaster, and policies possible. These as period a operations as in business of the resumption and short for procedures are designed to address specific types of disasters that Chandler might reason ably face, given its business and location. The Plan includes a consolidated list of all employee contacts and a call tree.
It is Chandler’s policy to respond to a significant business disruption by safeguarding employees’ lives and Firm property, making a financial and operational assessment, quickly recovering and resuming operations, protecting the Firm’s books and records, and allowing our clients to transact business. If we cannot continue business, we will assure clients prompt access to their funds and securities.
If Chandler’s principal office in San Diego is damaged or otherwise inaccessible, Chandler has designated any of our other locations as temporary alternate locations from which to restore normal business operations. Each location has working space, power, telephone service and internet access. Alternate locations in California are Oakland, Ventura, and Novato. Outside of California, we have locations in Seattle, Washington; Denver, Colorado; and the Clearwater, Florida area.
Testing and Updating
Our Chief Compliance Officer and the designated BCP team periodically, and on at least an annual basis, will test the Plan. Such tests may be as complex as running a simulation of an actual disaster, including the restoration of data to alternate systems, or as basic as testing the employee call tree. Typically, but not always, testing will be conducted after hours to minimize disruption of normal business operations. To gain realistic results that may be used to revise and improve the effectiveness of the Plan in the event of a real emergency, not all tests will be announced ahead of time to all employees. The Plan will be revised accordingly to fill gaps discovered during testing. The Plan may also be revised pursuant to reviews and the issuance of regulatory guidance. c. Provide any changes in terms and conditions from those set forth in this RFP that your firm requests or requires to be included in an agreement for this service.
Chandler does not have any exceptions to the terms described in the City's sample professional services agreement.
d. Briefly describe any additional feature, services, attributes, or conditions which the City should consider in selection of your firm.
Leveraging resources from across the Firm, we provide advice and investment analysis while bringing clients a personalized and local perspective. We are an investment management Firm founded by former investment officers of large public agencies, with the ability to understand your unique needs and how a successful investment
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program adds value to your entity’s bottom line. Chandler works to distinguish itself from its competition in several ways, including its relationship with its clients through investment management capabilities. • Familiarity and Continuity. As Chandler’s first client in the Coachella Valley, we bring deep institutional knowledge of the City’s investment objectives, policies, and evolving needs. Over our 18-year partnership since 2008, we have worked closely with the City’s finance team to support strategic decision-making and portfolio growth, from approximately $10 million at inception to $184 million as of December 31, 2025.
Throughout this time, we have guided the transition from a short-duration portfolio to a more diversified, longer-duration strategy, including the integration of bond proceeds to support the City’s development initiatives. While we currently provide discretionary investment management services, we maintain the flexibility to serve in a non-discretionary advisory capacity as needed. • Deep history and experience. Chandler’s founder, CFO, and other key investment professionals have worked as investment officers and finance directors of public agencies. They possess extensive experience and knowledge of the challenges public entities face in effectively managing their assets. Since 1988, Chandler has assisted public agency clients with fulfilling their fiduciary duty to their constituents by providing high quality fixed income portfolios in a risk -conscious framework that conforms to all state laws directives. Cha and ndler has both depth (experience) and breadth (service capabilities) as an investment manager and is particularly qualified to meet the City’s investment needs because of our decades of experience in safeguarding our clients’ funds and structuring them to meet all objectives. • Based in California. Chandler has been headquartered in San Diego since its inception and has regional offices investment deep have in California’s investment professionals in the experience Our State. landscape and possess significant expertise in structuring portfolios that adhere to State Code. Investment professionals are in changes on updates timely provide will and as zone time same the in City the legislature and best investment practices for California public agencies. • Resources. Chandler’s clients count on our extensive research and analytical capabilities used to identify opportunities and minimize risk. Our access to market information, in conjunction with our proprietary credit review process, makes our services of significant value. Our independent compliance team will work to ensure that all trades conform to the State Code, the City’s investment policy, and the customized investment strategy that we will co-develop with the City’s staff. • Independence. Chandler holds its fiduciary duty to our clients in the highest regard, which is why we remain an independent, employee-owned California corporation. We believe in creating strong partnerships with public agency staff who depend on transparency and integri ty. We are committed to aligning with our clients to help them achieve their investment goals, rather than aligning our interests with a parent company to help its shareholders achieve their goals. • Access to portfolio managers. Chandler offers its clients direct access to its lead portfolio managers and other your on and research analysis team who management investment the of members conduct portfolio, allowing for customization and flexibility to changes in your program. Your key investment contacts and the rest of the investment management team will have a significant understanding of not only your investment portfolio, but also where it fits in your overall investment program. • Commitment to client success. We strive to ease the responsibility and operational requirements needed to assets. client Our public invest effectively - transparency, education, on hinges centered approach responsiveness and above-benchmark investment program outcomes.
Chandler provides additional services that could add value to the City’s investment program, including:
• Strategy development or customization of the City’s internally managed cash and securities
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• Other Post-Employment Benefit (OPEB) management. Chandler has been managing OPEB accounts such as pension trusts and medical benefit trusts for clients since 2003. We use a multi -asset class strategy (Chandler’s “MAC” Strategy) to achieve plan objectives and target returns. • Management of the City’s cash in strategies including short-term securities as a supplement or alternative to Local Government Investment Pools/other overnight investment vehicles • Independent evaluation of California Local Government Investment Pool options, management of bond reserves and/or bond proceeds
• Custodial bank/safekeeping services review and selection • Broker/dealer selection and monitoring
10. REFERENCES
Please provide the number of years engaged in providing the services included within the scope of the specifications under the present business name.
Chandler has provided the services included within the scope of the specifications under our present business name for 38 years, since our founding in 1988.
Describe the last three public sector (municipalities, counties, and/or special districts) contracts performed by your firm and the proposed portfolio manager that demonstrate your ability to provide the services included within the scope of the specifications. The three contracts can be the same for your firm and the portfolio manager or different. So, there can be a maximum of six contracts listed for references.
Chandler Current Client References
Client Contact Information Work Provided Dates of
Service AUM*
Coachella Valley Water
District
75515 Hovley Lane East
Palm Desert, CA 92211
Karla Romero
Finance Director
(760) 398-2661 ext 2240
[email protected]
Discretionary
management of
operating funds
2019 -
present $568 MM
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Kristopher Mooney
Acting Director of Finance
(760) 322-8324
[email protected]
Non-Discretionary
management of
operating funds
2017 -
present $389 MM
City of Murrieta
One Town Square
Murrieta, CA 92562
Javier Carcamo
Finance Manager
(951) 461-6090
[email protected]
Discretionary
management of
operating funds
2019 -
present $158 MM
*As of December 31, 2025
11. STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The Advisor shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances.
Neither Chandler nor any of its officers or employees has ever been disqualified or removed from a contract or been prevented from bidding on a contract for any reason.
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The staff of the Advisor who will be responsible for carrying out this Agreement have not, within the last two years, been convicted of any crime or pleaded nolo contendere or agreed to any consent decree with respect to any matter involving breach of trust or fiduciary duty or securities law violations.
Neither Chandler nor any of its officers or employees has ever been convicted of any crime or pleaded nolo contendere or agreed to any consent decree with respect to any matter involving breach of trust or fiduciary duty or securities law violations.
12. INSURANCE CERTIFICATE
Each proposal must include a certificate of insurance showing: - Insurance carrier and its A.M. Best Rating - Scope of coverage and limits - Deductibles and self-insured retention Chandler maintains a comprehensive, full -coverage insurance program with the relevant coverages provided by firms rated “Excellent” or better by AM Best Rating.
Please refer to our ACORD Certificate of Liability Insurance, provided in the appendices, for a list of our insurance coverage.
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City Council
June 3, 2026
STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: Second Reading of Ordinance No. 1833, Amendment to Indio Municipal Code, (Water 4 Division (Water), 54 (Public Works), 5 Title Chapter Conservation) to Implement State Water Conservation Requirements and Establish a Cross-Connection Control Program
RECOMMENDATION:
Staff recommend that the City Council approves the second reading of Ordinance No. 1833, amending the Indio Municipal Code to: 1. Implement the potable water irrigation restrictions for non- functional turf required under California Assembly Bill 1572; 2. Replace the Water Superintendent title wtih the City Manager or its designee; and 3. Establish and codify a Cross-Connection Control Program consistent with regulations adopted by the California State Water Resources Control Board.
SUMMARY:
The proposed ordinance updates Chapter 54 (Water) of the Indio Municipal Code to ensure compliance with two State regulatory requirements affecting public water systems. First, the ordinance incorporates provisions required by Assembly Bill 1572, which prohibits the use of potable water to irrigate non-functional turf on certain properties. The ordinance integrates this prohibition into the City’s existing water conservation regulations to allow enforcement under current water waste provisions. Second, the ordinance updates the Municipal Code to establish a Cross- Connection Control Program (CCCP) in accordance with regulations adopted by the California State Water Resources Control Board, which became effective July 1, 2025. These regulations require public water systems to conduct hazard assessments, require backflow prevention assemblies where necessary, maintain testing records, and administer a formal cross-connection control program. Adoption of this ordinance ensures that the City of Indio remains compliant with State law, strengthens protections for the public drinking water system, and promotes responsible water use.
BACKGROUND INFORMATION:
The City of Indio public water system is subject to numerous State regulations governing drinking water protection and water conservation.
Assembly Bill 1572 requires urban water suppliers to prohibit the use of potable water to irrigate non-functional turf, defined as ornamental turf not used for civic, recreational, ecological, or other functional purposes.
AGENDA ITEM #9.7
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 138 of 345 This prohibition applies primarily to commercial, industrial, and institutional landscapes and is intended to reduce unnecessary potable water use. Residential landscapes and functional turf areas such as parks, athletic fields, and school grounds remain exempt under State law.
The proposed ordinance integrates this prohibition into Section 54.064.1 of the Municipal Code, which regulates ongoing landscape irrigation and water conservation practices for existing properties. Incorporating the requirement into this section ensures that the prohibition can be enforced using the City’s existing water conservation authority.
The California State Water Resources Control Board adopted new Cross-Connection Control Program regulations requiring public water systems to establish and implement comprehensive programs to prevent contamination of drinking water systems caused by backflow through cross- connections.
These regulations require water suppliers to:
• Conduct hazard assessments of service connections
• Require installation of backflow prevention assemblies where hazards exist • Ensure annual testing and maintenance of backflow prevention devices • Maintain program records and documentation
• Provide public education regarding cross-connection prevention
While the City of Indio currently administers a backflow prevention program, updates to Chapter 54, Subchapter 10 of the Municipal Code are necessary to align local regulations with the new State requirements and formally codify the program structure and enforcement authority.
Updates to the Water Superintendent title to the City Manager or its designee add further clarification for coordination and approvals with local, state and federal regulatory agencies.
FINANCIAL SUMMARY:
Current FY Financial
Impact:
$0 In current year budget: N/A
Current FY General
Fund Impact:
$0 Budget adjustment: N/A
Next FY Financial
Impact:
$0 Strategic Objective: Public Infrastructure
Source of funds: N/A Fund-Org-Object
Reference:
N/A
ATTACHMENTS:
Attachment 1 - Ord 1833 (2nd rdg) CONSOLIDATED ORDINANCE FINAL (AB1572 GM CCCP)_5-6-2026
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 139 of 345 ORDINANCE NO. 1833
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF INDIO,
CALIFORNIA, AMENDING CHAPTER 54 OF TITLE V OF THE INDIO
MUNICIPAL CODE TO IMPLEMENT STATE REQUIREMENTS FOR
NONFUNCTIONAL TURF IRRIGATION AND CROSS-CONNECTION CONTROL WHEREAS, the City of Indio operates the Indio Water Authority and provides potable water service within the City’s water service area; and WHEREAS, the City Council has adopted water conservation regulations in Chapter 54 of Title V of the Indio Municipal Code to conserve potable water supplies, prevent water waste, and protect the public health, safety, and welfare; and
WHEREAS, California Water Code section 375 authorizes public entities that supply water to adopt and enforce water conservation programs to reduce water use for the purpose of conserving water supplies; and
WHEREAS, Assembly Bill 1572, codified in part at California Water Code sections 10608.12 and 10608.14, prohibits the use of potable water to irrigate nonfunctional turf on certain commercial, industrial, institutional, public agency, homeowners’ association, common interest development, and similar properties on phased compliance dates established by state law; and
WHEREAS, California Water Code section 10608.14 requires public water systems, by no later than January 1, 2027, to revise their regulations, ordinances, or policies governing water service to include the statutory nonfunctional turf irrigation requirements and to communicate those requirements to customers; and WHEREAS, the State Water Resources Control Board has adopted the Cross- Connection Control Policy Handbook pursuant to the California Safe Drinking Water Act to establish enforceable requirements for public water systems to protect drinking water distribution systems from cross-connections and backflow; and WHEREAS, Chapter 54, Subchapter 10 of the Indio Municipal Code currently contains cross-connection and backflow prevention requirements that should be updated to reflect current state requirements, terminology, program administration, hazard assessment obligations, backflow prevention assembly standards, testing, maintenance, recordkeeping, access, enforcement, and service discontinuance procedures; and
WHEREAS, this Ordinance is necessary to protect the City’s potable water system from actual and potential contamination, conserve potable water supplies, prevent water waste, and ensure consistency with applicable state law.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES ORDAIN AS FOLLOWS:
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 140 of 345 SECTION 1. Recitals.
The City Council hereby finds that the foregoing recitals are true and correct and are incorporated herein as findings of the City Council. The recitals are not intended to be codified.
SECTION 2. Global Terminology Amendment to Chapter 54.
Chapter 54 of Title V of the Indio Municipal Code is hereby amended to replace each reference to “Water Superintendent” with “City Manager or designee,” and each such reference shall be construed to include the City Manager, the Director of Water Utility and any other officer, employee, agent, contractor, or representative designated by the City Manager or Director of Water Utility to administer or enforce Chapter 54.
SECTION 3. Amendment to Section 54.064.1, Landscape and Water Conservation.
Section 54.064.1 of Chapter 54 of Title V of the Indio Municipal Code is hereby amended to add a new subsection (H) to read as follows:
(H) Prohibition on potable water irrigation of nonfunctional turf. (1) Purpose. This subsection implements California Water Code sections 10608.12 and 10608.14, as may be amended, and any implementing regulations, orders, forms, or guidance issued by the State Water Resources Control Board. (2) Definitions. For purposes of this subsection, the following definitions shall apply:
(a) “Commercial property,” “industrial property,” “institutional property,” “homeowners’ association,” “common interest development,” “community service organization or similar entity,” “disadvantaged community,” “functional turf,” “nonfunctional turf,” “potable water,” and “public water system” shall have the meanings set forth in California Water Code sections 10608.12 and 10608.14, as may be amended. (b) “Functional turf” means a ground cover surface of turf located in a recreational use area or community space. Turf enclosed by fencing or other barriers to permanently preclude human access for recreation or assembly is not functional turf.
(c) “Nonfunctional turf” means turf that is not functional turf, and includes turf located within street rights-of-way and parking lots. (d) “Turf” means a ground cover surface of mowed grass, unless a different definition is established by applicable state law.
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 141 of 345 (3) Prohibition. No person shall use or permit the use of potable water to irrigate nonfunctional turf on properties subject to California Water Code section 10608.14, except to the extent expressly allowed by state law. (4) Compliance dates. The prohibition in subsection (H)(3) shall apply on and after the following dates, or such later date as may be authorized by the State Water Resources Control Board pursuant to state law:
(a) January 1, 2027, for all properties owned by local governments, local or regional public agencies, and public water systems, except as provided in subsection (H)(4)(e);
(b) all other institutional properties and all for January 1, 2028, commercial and industrial properties, other than cemeteries; (c) January 1, of for all common areas of properties 2029, homeowners’ associations, common interest developments, and community service organizations or similar entities; and
(d) January 1, 2031, or the date upon which a state funding source is made available to fund conversion of nonfunctional turf to climate- appropriate landscapes, whichever is later, for properties owned by local governments, a systems in water public and public local agencies, disadvantaged community.
(5) Exceptions. The prohibition in this subsection shall not apply:
(a) To the use of non-potable water, including recycled or reclaimed water, where lawfully available and used in accordance with applicable requirements;
(b) To the extent necessary to ensure the health of trees and other perennial non-turf plantings;
(c) To the extent necessary to address an immediate health and safety need;
(d) To cemeteries, to the extent exempted by California Water Code section 10608.14; or
(e) To any use expressly exempted or deferred by the State Water Resources Control Board or other applicable state law.
(6) Manager City The or and communication Customer implementation. designee shall communicate the requirements of this subsection to water customers on or January 1, 2027, and may prepare forms, notices, guidance, before procedures, or administrative rules to implement this subsection.
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 142 of 345 (7) Certification and documentation. Any person subject to state certification, reporting, or compliance documentation requirements under California Water Code section 10608.14 or implementing state regulations shall timely submit required certifications the request, upon and, Board to Resources Water State Control provide copies or evidence of compliance to the City Manager or designee. (8) Enforcement. A violation of this subsection may be enforced pursuant to rules service water applicable any of this 12 Chapter or this code, chapter, regulations, and any other remedy available at law or in equity. Each day that a violation exists or continues may be treated as a separate violation. (9) No limitation on more restrictive measures. Nothing in this subsection limits the City’s authority to impose more restrictive water conservation measures during a declared water shortage, water shortage emergency, or other lawful conservation program.
SECTION 4. Amendment to Chapter 54, Subchapter 10, Cross-Connection and Backflow Prevention.
Chapter 54, Subchapter 10, Sections 54.175 through 54.181 of Title V of the Indio Municipal Code are hereby amended in their entirety to read as follows:
Subchapter 10. Cross-Connection Control and Backflow Prevention § 54.175 Purpose; authority; applicability.
(A) The purpose of this subchapter is to protect the public potable water supply and the City’s public water system from actual or potential contamination or pollution caused by cross-connections, backflow, or other hazards. (B) This subchapter is adopted pursuant to the City’s police powers, the California Safe Drinking Water Act, the Cross-Connection Control Policy Handbook adopted by the State Water Resources Control Board, California Water Code sections 375 et seq., and all other applicable laws and regulations.
service premises, customers, users, water (C) to applies subchapter This all connections, facilities, and water uses served by, connected to, or capable of being served by the public water system.
(D) The City Manager or designee is authorized to administer and enforce this subchapter and to implement the City’s Cross-Connection Control Program and Cross-Connection Plan. City Manager or designee may adopt Control The administrative procedures, standards, forms, notices, specifications, and guidelines consistent with this subchapter and applicable state law. (E) The requirements of this subchapter are conditions of receiving and continuing to receive water service from the City.
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 143 of 345 § 54.176 Definitions.
For purposes of this subchapter, the following definitions shall apply unless the context clearly indicates otherwise. Terms not defined in this section shall have the meanings set forth in the Cross-Connection Control Policy Handbook, the California Safe Drinking the Regulations, Code California of of 22 Title Act, Water the California Plumbing Code, or other applicable law.
“Air gap” or “AG” means a physical vertical separation between the free-flowing discharge end of a potable water supply pipeline and the flood level of an open or nonpressurized receiving vessel, meeting the requirements of the Cross-Connection Control Policy Handbook and applicable plumbing standards. “Approved” means accepted by the City Manager or designee as meeting applicable City standards, State Water Resources Control Board requirements, the Cross- Connection Control Policy Handbook, and any other applicable law or standard. “Approved backflow prevention assembly” or “approved BPA” means a backflow prevention assembly that is approved for its intended use by the City Manager or designee and that meets applicable standards required by the Cross-Connection Control Policy Handbook.
“Auxiliary water supply” means a source of water, other than an approved water supply, that is used, equipped, or capable of being used as a water supply and is located on or available to a user premises, including but not limited to private wells, recycled water, canal water, ponds, surface water, rainwater systems, graywater systems, or other nonpotable sources.
“Backflow” means an undesired or unintended reversal of flow of water, liquids, gases, or other substances into the public water system distribution system or approved water supply.
“Backflow incident” means an occurrence or suspected occurrence of backflow into the public water system or an approved water supply.
“Backflow prevention assembly” or “BPA” means a mechanical assembly designed and reduced a to but limited not backflow, prevent to constructed including pressure reduced assembly, principle backflow principle pressure prevention detector assembly, double check valve assembly, double check detector assembly, pressure vacuum breaker, spill-resistant pressure vacuum breaker, air gap, or other assembly approved by the City Manager or designee and permitted by applicable law.
“Backflow prevention assembly tester” or “tester” means a person certified to field test backflow prevention assemblies in accordance with the Cross-Connection Control Policy Handbook and any additional requirements established by the City Manager or designee.
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 144 of 345 “City” means the City of Indio, including the Indio Water Department. “City Manager or designee” means the City Manager, the Director of Water Utility, or any officer, employee, agent, contractor, cross-connection control specialist, inspector, this enforce or administer tester, designated representative or to subchapter.
“Cross-connection” structural or potential connection any means or actual arrangement between the public water system, including a piping system connected to the public water system and located on or available to a user premises, and any source or distribution system containing liquid, gas, or other substances not from an approved water supply.
“Cross-Connection Control Plan” or “CCC Plan” means the written plan required by the how will City the describing Policy Cross-Connection Handbook Control implement and maintain its Cross-Connection Control Program. “Cross-Connection the means “CCCPH” Cross- Handbook” Policy Control or Connection Control Policy Handbook adopted by the State Water Resources Control Board, as may be amended or superseded.
“Cross-Connection Control Program” means the City’s program for protecting the public water system from cross-connections and backflow, including operating rules, hazard assessments, required backflow protection, testing, inspections, recordkeeping, incident response, public outreach, and enforcement. “Cross-connection control specialist” means a person certified as a cross-connection control specialist in accordance with the Cross-Connection Control Policy Handbook. “Hazard assessment” means an evaluation of a user premises to evaluate the types and degrees of hazard at the user premises, determine whether actual or potential cross-connections exist, and determine the backflow protection required. “High hazard cross-connection” means a cross-connection that poses a threat to the potability or safety of the public water supply and through which contaminants or health hazards could enter the public water system.
“Low hazard cross-connection” means a cross-connection that has been found not to pose a threat to the potability or safety of the public water supply but that may adversely affect the aesthetic quality of the potable water supply. “Premises containment” means protection of the public water system distribution system from backflow from a user premises through installation of one or more air gaps or backflow prevention assemblies installed as close as practical to the user’s service connection in a manner that isolates the user’s water system from the public water system.
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 145 of 345 “Public water system” means the City’s public water system, operated through the Indio Water Department.
“Service connection” means the point where a water user’s piping is connected to the public water system or the point where the approved water supply can be protected from backflow using an air gap or backflow prevention assembly. “User premises” means property under the ownership or control of a water user that is served, or readily capable of being served, with water through a service connection to the public water system.
“Water user” or “customer” means any person or entity receiving, using, or authorized to receive or use water from the public water system. “User supervisor” means a person designated by a water user to oversee water use at a user premises and to be responsible for avoiding cross-connections at that premises.
§ 54.177 Cross-Connection Control Program; hazard assessments; access. (A) The City Manager or designee shall implement and enforce a Cross-Connection Control Program consistent with the Cross-Connection Control Policy Handbook and this subchapter.
(B) The City Manager or designee may conduct or require hazard assessments of user premises to determine whether actual or potential cross-connections exist, the degree of hazard, the adequacy of existing backflow protection, and the type and location of backflow protection required.
(C) Hazard assessments may be conducted or required, without limitation, when:
(1) A user premises is newly connected or reconnected to the public water system; (2) A user premises changes account holder, except as otherwise provided by applicable state law;
(3) There is evidence of a change in use, operation, activities, materials, plumbing, equipment, auxiliary water supply, pressure system, fire protection system, recycled water system, or other condition that could affect the degree of hazard; (4) A backflow incident occurs or is suspected;
(5) Required periodically by the City’s Cross-Connection Control Plan; (6) Requested or directed by the State Water Resources Control Board; or (7) The City Manager or designee determines that an existing hazard assessment may no longer accurately represent the degree of hazard.
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 146 of 345 (D) Each water user shall provide safe and reasonable access to the user premises at reasonable times for hazard assessments, inspections, testing, investigation of suspected actual backflow incidents, verification of compliance, and other or activities necessary to implement this subchapter.
(E) Refusal or failure to provide access as required by this section constitutes a violation of this subchapter and may result in enforcement, including discontinuance of water service where necessary to protect the public water system. (F) The City Manager or designee may require a water user to provide information, plans, plumbing diagrams, fixture inventories, process descriptions, material safety information, irrigation plans, fire protection system information, auxiliary water supply evaluate to necessary or documentation other information, reasonably hazards and determine required protection.
(G) Where a user premises has a multi-piping system, frequent piping changes, auxiliary or water process industrial supplies, water recycled water systems, systems, or other complex water use conditions, the City Manager or designee may require the water user to designate a user supervisor. The user supervisor shall be trained of City informing the avoiding for responsible and cross-connections, relevant changes, and maintaining current contact information with the City. § 54.178 Backflow protection required; type, installation, testing, and records. (A) The public water system shall be protected from backflow from identified hazards through the installation, operation, inspection, testing, and maintenance of approved backflow protection commensurate with the degree of hazard. be protection shall required backflow The manner of type, (B) location, and determined by the City Manager or designee based on the hazard assessment, the Cross-Connection Code, Plumbing California City Handbook, Policy Control the standards, and other applicable law.
(C) Unless otherwise approved by the State Water Resources Control Board and the City Manager or designee, high hazard cross-connections shall be protected by premises containment through an approved air gap or approved reduced pressure principle backflow prevention assembly.
protected protection backflow by be cross-connections hazard Low (D) shall approved by the City Manager or designee and no less protective than required by the Cross-Connection Control Policy Handbook.
(E) Fire protection systems, recycled water systems, auxiliary water supplies, irrigation systems, industrial systems, medical facilities, laboratories, food service facilities, sewage facilities, wastewater facilities, chemical handling facilities, and all other facilities or conditions presenting an actual or potential hazard shall be protected as required by the City Manager or designee and applicable law.
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 147 of 345 (F) A required backflow prevention assembly shall be installed at the water user’s sole expense, at a location approved by the City Manager or designee, and in accordance with City standards, manufacturer requirements, the Cross-Connection Control Policy Handbook, the California Plumbing Code, and all other applicable requirements.
(G) No person shall install, relocate, remove, bypass, alter, modify, obstruct, conceal, submerge, or impair a required backflow prevention assembly without prior written approval from the City Manager or designee. (H) Each required backflow prevention assembly shall be readily accessible for inspection, field testing, maintenance, repair, and replacement. The water user shall maintain required clearances, drainage, security, and protection from damage, freezing, flooding, burial, submersion, vandalism, or other impairment. (I) Each required backflow prevention assembly shall be field tested by a certified backflow prevention assembly tester upon installation, after repair, after relocation, after any condition that may affect assembly performance, and at least annually thereafter, or more frequently if required by the City Manager or designee based on degree of hazard, assembly performance history, manufacturer recommendations, state requirements, or the City’s Cross-Connection Control Plan. (J) Each required air gap shall be inspected upon installation and at least annually thereafter, or more frequently if required by the City Manager or designee. (K) Testers shall hold certifications recognized or required by the State Water Resources Control Board and shall satisfy any additional City requirements. Testers shall use field test kits or gauge equipment with current accuracy verification as required by the Cross-Connection Control Policy Handbook and City standards. (L) Water users shall submit complete test, inspection, maintenance, repair, and replacement reports to the City Manager or designee on forms or in a manner approved by the City Manager or designee. Reports shall be submitted within the timeframe specified by the City Manager or designee.
(M) Failure to timely test, inspect, maintain, repair, replace, or report on any required backflow prevention assembly or air gap constitutes a violation of this subchapter. If a required report is not submitted when due, the service connection may be deemed unprotected.
(N) If a backflow prevention assembly fails a field test or inspection, the water user shall cause the assembly to be repaired or replaced and retested within the timeframe specified by the City Manager or designee. Where the City Manager or designee determines that the failed assembly presents an actual or potential threat to the public water system, the City may discontinue service or take other immediate protective action.
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 148 of 345 (O) The City may maintain records of hazard assessments, required protection, assembly locations, assembly types, degree of hazard, test results, inspections, repairs, actions, backflow incidents, user supervisors, and other enforcement information required by the Cross-Connection Control Policy Handbook. (P) Fees for administration, inspections, testing, retesting, enforcement, service discontinuance, restoration, and any other costs incurred by the City may be established by resolution of the City Council or other lawful fee schedule and may be charged to the water user.
§ 54.179 Water user responsibility; City corrective action. (A) Each water user is responsible, at the water user’s sole expense, for complying with inspection, testing, operation, installation, subchapter for and this the maintenance, repair, replacement, and reporting of all required backflow protection serving the user premises.
(B) user the unprotected on shall prevent Each cross-connections user water premises and shall immediately notify the City Manager or designee of any actual or suspected cross-connection, backflow incident, auxiliary water supply connection, change in use, change in plumbing, or other condition that may affect the public water system.
(C) corrective notices, all with action shall comply Each orders, user water requirements, schedules, and conditions issued by the City Manager or designee under this subchapter.
(D) If a water user fails to install, inspect, field test, maintain, repair, replace, or report on required backflow protection, or otherwise fails to comply with this subchapter, the City Manager or designee may take corrective action authorized by law, including but not limited to:
(1) Denying, suspending, discontinuing, or limiting water service; (2) Installing, inspecting, field testing, maintaining, repairing, or replacing a backflow prevention assembly or other required protection at the water user’s expense;
(3) Requiring a compliance schedule;
(4) Issuing notices of violation, administrative citations, compliance orders, or cease and desist orders;
(5) Recovering City costs, fees, penalties, and charges; (6) the matter for civil, criminal, administrative, or nuisance Referring enforcement; and
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 149 of 345 (7) Taking any other action necessary to protect the public water system and public health.
(E) Corrective action by the City shall not relieve the water user of responsibility for compliance or liability for violations.
§ 54.180 Discontinuance, denial, limitation, or restoration of water service. (A) The City Manager or designee may deny, discontinue, suspend, or limit water service to any premises if necessary or appropriate to protect the public water system, an approved water supply, or public health, safety, or welfare. (B) Grounds for denial, discontinuance, suspension, or limitation of service include, but are not limited to:
(1) The existence of an actual or potential unprotected cross-connection; (2) Failure to install required backflow protection;
(3) Failure to test, inspect, maintain, repair, replace, or report on required backflow protection;
(4) Removal, bypass, alteration, concealment, obstruction, impairment, or submersion of required backflow protection;
(5) Failure or refusal to provide access for hazard assessment, inspection, testing, or incident investigation;
(6) Failure to comply with a notice, order, compliance schedule, or other requirement issued under this subchapter;
(7) An actual or suspected backflow incident;
(8) Use of an auxiliary water supply, recycled water system, fire protection system, irrigation system, or other system in a manner that may endanger the public water system; or
(9) Any condition that the City Manager or designee determines presents an actual or potential threat to the public water system.
(C) Except in cases requiring immediate action, the City shall provide notice and a reasonable opportunity to correct before discontinuing service under this section. (D) Water service may be discontinued immediately and without prior notice if, in the judgment of the City Manager or designee, immediate action is necessary to protect the public water system, an approved water supply, or public health, safety, or welfare.
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 150 of 345 designee or Manager City the until (E) be not shall service Water restored determines that the condition requiring discontinuance has been corrected, required backflow protection has been installed, tested, and approved, applicable reports have been submitted, and all applicable charges, fees, penalties, and costs have been paid or otherwise resolved.
(F) Discontinuance, denial, suspension, limitation, or restoration of service under this section is in addition to, and does not limit, any other remedy available to the City.
§ 54.181 Right of entry; inspections; credentials.
(A) As a condition of water service, the City Manager or designee may enter any user premises served by, connected to, or capable of being served by the public water system at reasonable times to conduct hazard assessments, inspections, testing, investigations, compliance verification, and other activities necessary to administer and enforce this subchapter.
(B) A City representative seeking entry shall present proper credentials upon request.
(C) If entry is refused or cannot be obtained, the City may pursue any remedy available by law, including obtaining an inspection warrant, discontinuing or limiting water service where necessary to protect the public water system, and enforcing this subchapter.
(D) Nothing in this section limits the City’s authority to take immediate action to protect the public water system or public health where an actual or potential hazard exists.
SECTION 5. Environmental Determination.
The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act pursuant to State CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that the Ordinance will not have a significant effect on the environment. The Ordinance is also exempt pursuant to State CEQA Guidelines of consists it regulatory 15308 and 15307 because sections restoration, maintenance, the to procedures and requirements assure enhancement, and protection of natural resources and the environment, including conservation of potable water supplies and protection of drinking water quality. The City deemed or required if exemption of notice file to is Clerk a directed appropriate.
SECTION 6. Severability.
If any section, subsection, sentence, clause, phrase, or portion of this Ordinance, or its application to any person or circumstance, is for any reason held invalid or
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 151 of 345 unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or its application to other persons or circumstances. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, and portion thereof irrespective of the fact that any one or more portions may be declared invalid or unconstitutional.
SECTION 7. No Conflict With State or Federal Law.
This Ordinance is intended to supplement and implement applicable state and federal law. In the event of a conflict between this Ordinance and any mandatory requirement of state or federal law, the mandatory state or federal requirement shall control. References to state statutes, regulations, handbooks, standards, or policies include any amendments, replacements, or successor provisions.
SECTION 8. Codification.
The City Clerk is authorized and directed to cause Sections 2, 3, and 4 of this Ordinance to be codified in the Indio Municipal Code. The City Clerk may make non- substantive corrections to numbering, formatting, capitalization, punctuation, and internal cross-references as necessary to accomplish codification, provided such corrections do not alter the substantive meaning of this Ordinance.
SECTION 9. Publication.
The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published or posted in the manner required by law.
SECTION 10. Effective Date.
This Ordinance shall take effect thirty (30) days after its adoption.
PASSED, APPROVED AND ADOPTED this 3rd day of June , 2026. ____________________________________
ELAINE HOLMES, MAYOR
ATTEST:
CITY CLERK
_________________________________
SABDI SANCHEZ, MMC
DIRECTOR OF CITY CLERK SERVICES
Second Reading of Ordinance No. 1833 , Amendment to Indio Municipal Code... Page 152 of 345 City of Indio
City Council
June 3, 2026
STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: Resolution No. 10569, authorizing the City Manager to execute a Right-of- Way Contract between the City of Indio; and Juan Pablo Aguilera, for the acquisition of approximately 6,296 square feet of temporary construction easement 49210 at located 612-260-003, APN parcel identified a of as Jackson St, to facilitate the construction of the Jackson Street Improvement Project Phase 2, City Project No. PW-TS1901.
RECOMMENDATION:
Adopt Resolution No. 10569 authorizing the City Manager to execute a Right-of-Way Contract between the City of Indio; and Juan Pablo Aguilera, for the acquisition of approximately 6,296 square feet of temporary construction easement of a parcel identified as APN 612-260-003, located at 49210 Jackson St, to facilitate the construction of the Jackson Street Improvement Project Phase 2, City Project No. PW-TS1901.
SUMMARY:
The proposed Resolution sets forth the terms and conditions to be included in the Right-of-Way Contract for the acquisition of the temporary construction easement, needed for the construction of the Jackson Street Improvement Project Phase 2 Project No. PW-TS1901.
BACKGROUND INFORMATION:
The city is advancing the Jackson Street Phase 2 Improvements Project No. PW-TS1901 (the “Project”). Before Phase 2 can proceed to construction, the City must complete required right-of-way acquisitions, including a temporary construction easement from property located at 49210 Jackson St (APN 612-260-003) (the “Property”).
The Project corridor extends along Jackson Street from Odlum Drive/Avenue 49 to approximately 1,600 feet south of Avenue 52, and along portions of Avenue 50 and Avenue 52 east and west of Jackson Street.
Phase I of the Project completed initial pavement rehabilitation and installed underground utilities, drainage improvements, conduit for future traffic signals and streetlights, and selected sidewalks, curb ramps, and driveways. Phase II will complete the ultimate roadway widening and install new traffic signals at Avenue 50, Avenue 51, and Avenue 52. When finished, Jackson Street will include two lanes in each direction, a center turn lane, Class II bike lanes, and the remaining pedestrian access improvements. The Project will be advertised for bids once all right-of-way requirements are secured.
AGENDA ITEM #9.8
Resolution No. 10569 , authorizing the City Manager to execute a Right-o... Page 153 of 345
The property owner, Juan Pablo Aguilera were presented an offer for the acquisition of the following (the “Property Interest”):
Approximately 6,296 square feet of temporary construction easement
These areas are shown in the legal descriptions and exhibit maps included in the Right-of-Way Contract.
Monument, the City’s right-of-way consultant, presented a written offer on October 10, 2025, in the amount of $4,450 based on an appraisal and determination of just compensation.
On December 4, 2025, Monument met with the property owner to walk the property and discuss the temporary construction easement and the impacts to the property, including the removal and replacement of the chain link fencing. Mr. Aguilera expressed full support for the project but was concerned that his bougainvillea shrubs would not survive the replacement of the fencing as the vines are intertwined into the chain link fencing. During Monument’s meeting with the owner, Mr.
Aguilera asked if the project could protect the fence in place instead of removing the fence and replacing it in kind.
The project team researched the cost benefit analysis of 1) the cost to replace the fence and the bougainvillea plants intertwined into the fencing and 2) whether the project could be completed without removal of the existing fence (protect in place). After careful review, the project team determined that there was enough workspace available in the TCE area to keep the fence intact (protect in place). The project team landscape consultant also concluded that the bougainvillea should survive the construction.
In accordance with the property owner’s request to protect the fence in place, and with the understanding that the City will no longer have its contractor perform the work to remove and replace the existing fence, the owner was offered a $5,000 settlement that will serve as full payment for any monetary losses associated with damage to existing bougainvillea plants directly attributable to construction activities. This amount would be in addition to the just compensation amount of $4,450, for a total of $9,450
The parties reached a settlement agreement on April 2, 2026, in the amount of $9,450. This settlement reflects the value of the permanent easement area. Monument has advised that the settlement amount represents a reasonable and supportable outcome based on market conditions and corridor location.
The temporary construction easement allows the City and its contractors to enter and use a defined portion of the property along the Jackson Street frontage strictly for construction and related activities. This easement is limited in duration and expires twelve (12) months after the City issues a written Notice to Proceed to the contractor, unless extended by mutual agreement.
The agreed upon amount of just compensation is the sum of Nine Thousand Four-Hundred Fifty Dollars ($9,450). The City’s offer is the full amount that the City has determined to be the fair settlement of the entire Property Interest.
Key terms of the agreement include:
Resolution No. 10569 , authorizing the City Manager to execute a Right-o... Page 154 of 345
1. Payment of $9,450 as full compensation for all acquired permanent and temporary easement interests
2. A temporary construction easement allowing access, grading, staging, and construction support activities
3. The owner retains underlying property ownership subject to the easement rights granted
4. The agreement includes standard settlement, release, indemnity, and title conditions
5. Easement deeds will be recorded following escrows with a Certificate of Acceptance executed by the City Manager.
This acquisition provides the temporary property rights necessary to construct the planned roadway and utility improvements while limiting impacts to defined areas. Staff believe the negotiated compensation and terms are reasonable and consistent with similar corridor acquisitions and recommend acceptance to allow the Project to proceed on schedule.
FINANCIAL SUMMARY:
Current FY Financial
Impact:
$9,450 In current year budget: Yes
Current FY General
Fund Impact:
$0 Budget adjustment: No
Next FY Financial
Impact:
$0 Strategic Objective: Public Infrastructure
Source of funds: Fund 300 Fund-Org-Object
Reference:
300-551006
Additional Financial Details:
Right-of-way acquisitions for the Jackson Street Improvement Project Phase 2, are included in the Fiscal Year 2025/26 project budget. Under and existing Cooperative Agreement, the Coachella Valley Associations of Government (CVAG) will reimburse 75% of the eligible project costs, including right-of-way acquisitions.
Project Code: PW-TS1901
Increase appropriations:
300-551006 Land – Right-of-Way $9,450
Increase revenue:
300-402215 Reimbursement $7,087.50 (CVAG 75%)
Expected offset:
300-523006 Construction Services $9,450 (City share 25%)
ATTACHMENTS:
Attachment 1 - Property Location Map
Attachment 2 - Resolution No. 10569
Resolution No. 10569 , authorizing the City Manager to execute a Right-o... Page 155 of 345
APPROVAL(S):
Timothy Wassil, Public Works Director Approved - 22 May 2026 Ruby D. Walla, Director of Finance Approved - 26 May 2026 Steven Graham Pacifico, City Attorney Approved - 27 May 2026 Bryan H. Montgomery, City Manager Approved - 27 May 2026
Resolution No. 10569 , authorizing the City Manager to execute a Right-o... Page 156 of 345
PROPERTY LOCATION MAP
49210 JACKSON ST
Resolution No. 10569 , authorizing the City Manager to execute a Right-o... Page 157 of 345 RESOLUTION NO. 10569
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A RIGHT-OF-WAY CONTRACT BETWEEN THE CITY OF INDIO; AND J UAN PABLO AGUILERA, FOR THE ACQUISITION OF APPROXIMATELY 6,296
SQUARE FEET OF TEMPORARY CONSTRUCTION EASEMENT OF A
PARCEL IDENTIFIED AS APN 612 -260-003, LOCATED AT 49210
JACKSON ST, TO FACILITATE THE CONSTRUCTION OF THE JACKSON STREET IMPROVEMENT PROJECT PHASE 2, CITY PROJECT NO. PW- TS1901.
WH
EREAS, The city is advancing the Jackson Street Phase 2 Improvements Project (the “Project”). The Project corridor extends along Jackson Street from Odlum Drive/Avenue 49 to approximately 1,600 feet south of Avenue 52, and along portions of Avenue 50 and Avenue 52 east and west of Jackson Street; and WH
EREAS, Phase rehabilitation pavement initial 1 Project the of completed and installed underground utilities, drainage improvements, conduit for future traffic signals and streetlights, and selected sidewalks, curb ramps, and driveways; and WH
EREAS, install and ultimate widening complete the Phase roadway will 2 new traffic signals at Avenue 50, Avenue 51, and Avenue 52. When finished, Jackson Street will include two lanes in each direction, a center turn lane, Class II bike lanes, and the remaining pedestrian access improvements; and
WH
EREAS, Before Phase 2 can proceed to construction, the City must complete required right-of-way acquisitions, including a temporary construction easement from property located at 49210 Jackson St, Assessor Parcel Number 612- 260-003 (the “Property”), and based on a review of public records, are the owners of record; and
WH
EREAS, the approximately 6,296 square feet of temporary construction easement allows the City and its contractors to enter and use a defined portion of property along the the Jackson Street frontage strictly for construction and related activities. This easement is limited in duration and expires twelve (12) months after the City issues a written Notice to Proceed, unless extended by mutual agreement; and
1
Resolution No. 10569 , authorizing the City Manager to execute a Right-o... Page 158 of 345 WHEREAS, the agreed upon property the of amount just compensation for interest is the sum of nine thousand, four-hundred fifty dollars ($9,450), and the offer is a fair settlement of the property interest.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The City Council hereby finds that all of the facts set forth in the recitals of this resolution are true, correct, and are incorporated herein.
Section of the the that declares purpose finds Council City and The 2. temporary construction easement allows access, grading, staging, and construction support activities.
Section 3. The City Council hereby approves the Easement Deeds attached herein as Exhibit A and hereby authorizes the City Manager to execute Certificates of Acceptance for Office Riverside of Recorder’s to transmit and County the recordation.
Section 4. The City Council hereby authorizes the City Manager to take any and all actions required to effectuate the provisions of this Resolution.
Section 5. This Resolution shall be effective upon adoption.
Section 6. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 3rd day of June 2026.
ELAINE HOLMES, MAYOR
ATTEST:
SABDI SANCHEZ, MMC
DIR. OF CITY CLERK SERVICES
2
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EXHIBIT A
Resolution No. 10569 , authorizing the City Manager to execute a Right-o... Page 160 of 345 City of Indio
RIGHT OF WAY CONTRACT
Name APN
Juan Pablo Aguilera, a single man 612-260-003
Juan Pablo Aguilera, a single man
Grantor
RIGHT-OF-WAY CONTRACT
Juan Pablo Aguilera, a single man (hereinafter, "Grantor"), owns the real property located at 49210 Jackson Street, Indio CA 9220 I in the County of Riverside, Assessor Parcel Number 612-260-003 (the "Property"). A portion of the Property is needed for Phase 2 of the Jackson Street and Avenue 50 Improvement Project (the "Project"), which is for public use and benefits the public generally. This phase includes the installation of curbs, gutters, sidewalks, driveways, and drainage improvements. Additionally, traffic signals will be installed at the intersections of Jackson Street/Avenue 50, Jackson Street/Avenue 51, and Jackson Street/Avenue 52. A Temporary Construction Easement Deed (Exhibit "I") to the City of Indio (the City), covering the property interest as described and depicted in Exhibits "A" and "B" attached to Exhibit " I" (collectively, the "Property Interest") have been executed and delivered to, Addie! Flores, Right-of-Way Agent for Monument, agent for the City.
In consideration of which, and the other considerations hereinafter set forth, it is mutually agreed as follows:
I. (A) The parties have herein set forth the whole of their agreement ("Agreement"). The performance of this Agreement constitutes the entire consideration and shall relieve the City of all further obligations or claims on this account, or on account of the location, grade or construction of the proposed public improvement. (B) The City requires said Property Interest described in Exhibit " 1" for the Project, a public use for which the City has the authority to exercis�· the power of eminent domain. Grantor is compelled to sell and the City is compelled to acquire the Property Interest.
(C) Both Grantor and the City recognize the expense, time, effort, and risk to both parties in determining the compensation for the Property Interest by eminent domain litigation. The compensation set forth herein for the Property Interest is in compromise and settlement, in lieu of such litigation. (D) It is agreed that the City may open an escrow in accordance with this Agreement at an escrow company of the City's choice ("Escrow Agent"). This Agreement constitutes the joint escrow instructions of the City and Grantor, and Escrow Agent to whom these instructions are delivered is hereby empowered to act under this Agreement. The parties hereto agree to perform all acts reasonably necessary to close this escrow within sixty (60) days following the opening of escrow.
2. (A) The City shall pay the undersigned Grantor the sum of NINE THOUSAND FOUR HUNDRED AND FIFTY DOLLARS and NO CENTS ($9,450.00) for the Property Interest conveyed by Exhibit " I" when title to said Property Interest vests in the City free and clear of all liens, deeds of trusts, encumbrances, assessments, easements and leases (recorded and/or unrecorded), and taxes.
Pa el of6
Resolution No. 10569 , authorizing the City Manager to execute a Right-o... Page 161 of 345 l 11) of lnd,o
RIGHT OF WAY CONTRACT
(B) The City shall pay all escrow and recording fees incurred in this transaction, and if title insurance is desired by the City, the premium charged, therefore. Due to the City's status as a public agency, no recording fees will be payable (pursuant to Government Code Section 27383) and no documentary tax will be payable (pursuant to Revenue & Taxation Code Section I 1922). This transaction may be handled through an external escrow with Commonwealth Land Title Company or another selected escrow company. (C) The City shall have the authority to deduct and pay from the amount shown on Clause 2(A) above, any amount necessary to satisfy any bond demands and delinquent taxes due in any year except the year in which this escrow closes, together with penalties and interest thereon, and/or delinquent and unpaid non-delinquent assessments which have become a lien at the close of escrow.
3. FULL AND COMPLETE SETrLEMENT. Granter hereby acknowledges that he is the sole and lawful owner of the Property and the compensation paid to Grantor through this Agreement constitutes the full and complete settlement of any and all claims against the City of Indio and the State of California, Department of Transportation (hereinafter "Releasees") by reason of the Project and/or acquisition of the Property Interest, including, but not limited to, any and all rights or claims that Grantor had, currently has, or may in the future have under Article 1, Section 19 of the California Constitution, California Code of Civil Procedure§ 1230.0 I 0, et seq. (the .. Eminent Domain Law"), or any other law or regulation, except as provided herein. Grantor, on behalf of himself and his successors and assigns, further knowingly and voluntarily waives and expressly releases and discharges Releasees and any and all of Releasees' employees, agents, officers, servants, representatives, contractors, attorneys, partner agencies and assigns, from liability in regard to any claims for the following: pre-condemnation damages, inverse condemnation, lost business goodwill, lost profits, lost rents, severance damages, mitigation damages, curative costs, landscaping, compensation for the construction and use of the Project in the manner proposed, damage to or loss of improvements pertaining to the realty, machinery, fixtures, inventory, equipment and/or personal property, interest, any right to repurchase, leaseback, or receive any financial gain from, the sale of any portion of the Property Interest, any right to challenge the adoption of a resolution of necessity, any right to receive any notices pursuant to Code of Civil Procedure section 1245.235, any right to enforce any obligation pursuant to the Eminent Domain Law, any other rights conferred upon Granter pursuant to the Eminent Domain Law, and claims for litigation expenses, attorney's fees, statutory interest and/or costs. Granter further consents to the dismissal of any Eminent Domain proceeding that is filed pertaining to the Property Interest and further waives all attorney's fees, costs, claims to money on deposit, disbursements and expenses in connection with the dismissal of said proceeding.
4. The parties intend that this Agreement will result in a full, complete and final resolution and settlement of any and all claims, causes of action or disputes which exist, or may exist, between them as to the acquisition, possession and/or use of the Property Interest, except as expressly provided herein. It is therefore understood that the waiver, under this Agreement, of any rights, damages, compensation or benefits to which Grantor is, or may be, entitled is intended to be full and complete. Accordingly, except as provided herein:
(A) Pursuant to the releases set forth in this Agreement, Grantor specifically waives the provision of section I 542 of the Civil Code of the State of California which provides:
"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party." (B) Gran tor represents and warrants that he understands the effect of this waiver of section 1542 and has had the opportunity to discuss the effect of this waiver with counsel of his choice.
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5. Any monies payable under this Agreement up to and including the total amount of unpaid principal and interest on note(s) secured by mortgage(s) or deed(s) of trust, if any, and all other amounts due and payable in accordance with the terms and conditions of said deed(s) of trust or mortgage(s), shall upon demand(s) be made payable to the mortgagee(s) or beneficiary(ies) entitled thereunder; said mortgagee(s) or beneficiary(ies) are to furnish Granter with good and sufficient receipt showing said monies credited against the indebtedness secured by said mortgage(s) or deed(s) of trust.
6. Grantor represents and warrants that he is the fee simple owner of the Property and that he has the right to convey the Property Interest. Granter will defend and indemnify the City, its successors and/or assigns if it turns out that a claim is made or legal action is filed against the City, its successors and/or assigns by someone claiming a legal interest in or right to the Property, or any portion thereof. Granter represents and warrants that he will defend and indemnify the City, its successor and/or assigns in the amount of any due and unpaid real property taxes, assessments, liens and any penalties and delinquencies on the Property. Granter represents and warrants that he has made no assignment of any interest in the Property.
7. Granter represents and warrants that there are no oral or written leases on all or any portion of the Property exceeding a period of one month. Grantor agrees to hold the City harmless and reimburse the City for any and all of its losses and expenses occasioned by reason of any lease of said Property held by any tenant of Granter for a period exceeding one month. Grantor acknowledges that a general release or quitclaim deed will be required from any lessee regarding the disclaimer of the tenants' interests in the amount payable under Clause 2(A) above. Said general releases or quitclaim deeds are to be provided by Grantor, prior to the close of escrow. The provisions of this paragraph shall apply to current leases on the Property as well as future leases, if any, that are entered into after the execution of this Agreement.
8. It is understood and agreed by and between the parties hereto that included in the amount payable under Clause 2(A) above is full payment to the Grantor for any monetary losses associated with damage to existing bougainvillea plants directly attributable to construction activities .
.!]. It is understood and agreed by and between the parties hereto that the following improvements within the Property Interest will be protected in place by the Grantee/City: the chain link fence and gate. It is further understood and agreed to by and between the parties hereto that the mailbox located within the Property Interest will be relocated by the Grantee/City or its contractor to a position 18 inches behind the face of the curb as part of the project.
I 0. Prior to the City's actual/physical possession of the TCE, Grantor agrees to hold harmless, defend and indemnify the City its officers, directors, employees and agents against any and all claims including property damage or injuries resulting from the use of the area within the TCE by Grantor and/or Grantor's guests, invitees, or any other person. The City shall not be deemed to have control of the TCE nor duty to maintain the TCE in a safe condition prior to the time the City or the City's contractor take actual/physical possession of the TCE.
Grantor agrees to name the City as an additional insured under its current insurance policy. Granter further agrees to notify the City in writing within thirty (30) days of any potential claim relating to the area within the Property Interest prior to the City taking actual/physical possession of the Property Interest. 1 1. It is agreed and confinned by the parties hereto that notwithstanding other provisions in this contract, the right of possession and use of the Property Interest by the City, including the right to remove and dispose of improvements, shall commence on the date the amount of funds as specified in Clause 2(A) above are deposited into the escrow controlling this transaction. The amount shown in Clause 2(A) above includes, but is not limited to, full payment for such possession and use, including damages, if any, from said date.
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12. It is understood and agreed by and between the parties hereto that payment as provided in Clause 2(A) includes, but is not limited to, payment for any and all past, present, and/or future damages which have accrued or may accrue to Grantor's remaining property by reason of its severance from the property conveyed herein and the construction and use of the proposed Project, including, but not limited to, any expense which Grantor may incur in restoring the utility of the remaining property. This release is not intended to extend to unanticipated physical damage caused by construction.
13. It is agreed between the parties hereto that the City is not assuming responsibility for payment or subsequent cancellation of unpaid assessments on Property Interest acquired under this transaction. Payment for the Property Interest acquired under this transaction is made upon the basis that the Grantor retains his obligation to the levying body respecting said assessments.
14. The Temporary Construction Easement shall be for a period of twelve ( 12) months ("TCE Term"). The TCE Term shall commence upon a 30-day written notice provided by the City or its contractor to Grantor. Grantor shall be provided at least thirty (30) days written notice prior to commencement of work within the Temporary Construction Easement area.
Grantor agrees to keep the TCE area free and clear of all materials, shrubbery, crops, improvements, personal property, and debris during the TCE Term. Grantor agrees that any materials, shrubbery, crops, improvements, personal property and debris within the TCE area that remains after commencement of work within the TCE area may be removed by the City and/or its contractor. Grantor further agrees that the cost of removal of any materials, shrubbery, crops, improvements, personal property, or debris that are installed during the TCE Term shall be the sole responsibility of Grantor. In the event it is anticipated the use will extend beyond the prescribed time, the City and the Grantor shall enter into an amendment contract to extend the term of the TCE. The City shall provide Just Compensation for the extended period.
15. Any notice either party may or is required to give the other shall be in writing and shall be either personally delivered or sent by registered or certified mail, return receipt requested. lfby mail, service shall be deemed to have been received by such party at the time the notice is delivered to the following addresses:
To Grantor:
Juan Pablo Aguilera
492 IO Jackson Street
Indio, CA 9220 I
To City of Indio:
I 00 City Center Mall
Indio, CA 92201
Attn: Engineering
16. It is understood and agreed by and between the parties hereto that this Agreement inures to the benefit of, and is binding on, the parties, their respective heirs, personal representatives, subsequent purchasers, successors, and/or assignees. The City may freely assign any or all of its interests or rights under this Agreement.
17. Grantor represents and warrants that during the period of Grantor's ownership of the Property, there have been no disposals, releases or threatened releases of hazardous substances or hazardous wastes on, from, or under the Property.
Grantor further represents and warrants that Grantor has no knowledge of any disposal, release, or threatened release of hazardous substances or hazardous wastes on, from, or under the Property which may have occurred prior to Grantor taking title to the Property.
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RIGHT OF WAY CONTRACT
The acquisition price of the Property Interest being acquired in this transaction reflects the full and complete settlement of the Property Interest without the presence of contamination. If the Property Interest being acquired is found to be contaminated by the presence of hazardous waste which requires mitigation under Federal or State law, the City may elect to recover its clean-up costs from those who caused or contributed to the contamination including, but not limited to, Grantor.
18, It is understood and agreed that the fully executed Temporary Construction Easement Deed may be recorded in the Recorder's Office for the County of Riverside.
19. The City reserves the right to cancel escrow and terminate this Agreement if at any time the City determines that the Property Interest is no longer needed for the Project.
20. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter of this Agreement and may not be modified except by an instrument in writing signed by the party to be bound thereby. 2 I. If any term or provision of this Agreement shall be held to be invalid or unenforceable, the remainder of the Agreement shall remain in full force and effect.
22. Each individual executing this Agreement on behalf of an entity represents and warrants that he or she has been authorized to do so by the entity on whose behalf he or she executes this Agreement, and that said entity will thereby be obligated to perform the terms of this Agreement.
23. This Agreement may be executed in counterparts, including by facsimile and/or e-mail, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument.
24. No person in the United States shal I, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity that is subject of this contract.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGE FOLLOWS
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In Witness Whereof, the Parties vested have executed this Agreement the day and year set forth below.
Juan ablo Aguilera
Date: __,_Q._____5 ____,..- 0=---=--6-� �_b ___ _
City of Indio, a municipal corporation APPROVED AS TO FORM:
By: ________________ _ By: ______________ _
Its: ________________ _
Date: ·--------------------
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H:\2022\22-0013\Drawings\Mapping\Legals & Plats\TCE\612-260-003\22-0013 TCE APN 612-260-003 LEGAL.docx Albert A. Webb Associates EXHIBIT “A”
TEMPORARY CONSTRUCTION EASEMENT
LEGAL DESCRIPTION
THAT PORTION OF THE WEST 200.00 FEET OF THE NORTH 20 ACRES OF LOT 12 OF COACHELLA LAND AND WATER COMPANY’S SUBDIVISION OF SECTION 36, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, AS SHOWN BY MAP ON FILE IN BOOK 4 , PAGE 53 OF MAPS, RECORDS OF RIVERSIDE COUNTY,
LYING IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID PORTION BEING DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHWESTERLY CORNER OF LOT “AA” , AS SHOWN BY TRACT NO. 38072 -1, FILED IN BOOK 494, PAGES 28 THROUGH 30, INCLUSIVE, OF
MAPS OF SAID COUNTY , SAID CORNER ALSO BEING A POINT ON THE EASTERLY RIGHT-OF-WAY LINE OF JACKSON STREET (40.00 FEET EASTERLY HALF -WIDTH) PER DEED TO THE COUNTY OF RIVERSIDE COUNTY, RECORDED 3/03/1948, IN BOOK 889, PAGE 595 OF OFFICIAL RECORDS OF SAID COUNTY;
THENCE ALONG SAID EASTERLY RIGHT -OF-WAY LINE, NORTH 00°07’26” EAST, A DISTANCE OF 399.36 FEET TO THE SOUTHERLY LINE OF THE NORTHERLY 80.00 FEET OF SAID LOT 12;
THENCE LEAVING SAID EASTERLY RIGHT -OF-WAY LINE OF JACKSON STREET , SOUTH 89°52’34” EAST, ALONG SAID SOUTHERLY LINE, A DISTANCE OF 13.50 FEET TO A POINT ON A LINE PARALLEL WITH AND DISTANT EASTERLY 13.50 FEET FROM SAID EASTERLY RIGHT-OF-WAY LINE OF JACKSON STREET;
THENCE ALONG SAID PARALLEL LINE, SOUTH 00°07’26” WEST, A DISTANCE OF 173.08 FEET;
THENCE SOUTH 89°52’34” EAST, AT RIGHT ANGLES, A DISTANCE OF 10.50 FEET, TO A POINT ON A LINE PARALLEL WITH AND DISTANT EASTERLY 24.00 FEET,
MEASURED AT RIGHT ANGLES FROM SAID EASTERLY RIGHT -OF-WAY LINE OF JACKSON STREET;
THENCE ALONG SAID PARALLEL LINE, SOUTH 00°07’26” WEST, A DISTANCE OF
40.00 FEET;
THENCE LEAVING SAID PARALLEL LINE, NORTH 89°52’3 4” WEST, AT RIGHT ANGLES, A DISTANCE OF 9.50 FEET TO A POINT ON A LINE PARALLEL WITH AND DISTANT EASTERLY 14.50 FEET, MEASURED AT RIGHT ANGLES, FROM SAID EASTERLY RIGHT-OF-WAY LINE FROM JACKSON STREET;
THENCE ALONG SAID PARALLEL LINE, SOUTH 00°07’26” WEST, A DISTANCE OF 156.33 FEET;
THENCE LEAVING SAID PARALLEL LINE, SOUTH 89°52’34” EAST, AT RIGHT ANGLES, A DISTANCE OF 9.99 FEET;
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H:\2022\22-0013\Drawings\Mapping\Legals & Plats\TCE\612-260-003\22-0013 TCE APN 612-260-003 LEGAL.docx Albert A. Webb Associates
THENCE SOUTH 00°07’26” WEST, PARALLEL WITH SAID EASTERLY RIGHT-OF-WAY LINE, A DISTANCE OF 29.86 FEET TO THE NORTHERLY LINE OF LOT “G” AS SHOWN ON SAID TRACT NO. 38072-1;
THENCE SOUTH 89°54’42” WEST ALONG SAID NORTHERLY LINE OF LOT “D” AND SAID LOT “AA”, A DISTANCE OF 24.50 FEET TO THE POINT OF BEGINNING;
CONTAINING 6,296 SQUARE FEET, MORE OR LESS.
AS SHOWN ON THE ATTACHED EXHIBIT “B” AND BY REFERENCE MADE A PART HEREOF.
PREPARED UNDER MY SUPERVISION
______________________________ _______________
Michael E. Johnson, L.S. 7673 Date
Prepared by: CGS
Checked by: MEJ
06/19/202506/19/202506/19/202506/19/2025
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WEBBNWES
06/19/202506/19/202506/19/202506/19/2025
Resolution No. 10569 , authorizing the City Manager to execute a Right-o... Page 171 of 345 CERTIFICATE OF ACCEPTANCE This is to certify that the Grant of Easement Deed for APN 612-260-003 from Juan Pablo Aguilera, a single man, dated ___________ is hereby accepted by the undersigned officer or agent on behalf of the City of Indio, a Municipal Corporation on behalf of the City Council of the City of Indio, pursuant to authority conferred by Resolution No. 1028 of the City Council for the City of Indio adopted on August 6, 1958, and the grantee consents to the recordation thereof by its duly authorized officer. DATE: __________________ CITY OF INDIO BY: ________________________________ BRYAN H. MONTGOMERY CITY MANAGER
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City Council
June 3, 2026
STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: Resolution No. 10570 authorizing the City Manager to execute a Right-of- Way Contract between the City of Indio; and Adriana Fernandez Perez and Nancy Fernandez, for the acquisition of approximately 1,198 square feet of permanent utility permanent feet square of and easement roadway 44 easement, and 599 square feet of temporary construction easement of a parcel identified as APN 612-280-012, located at 83116 Avenue 50, to facilitate the construction of the Jackson Street Improvement Project Phase 2, City Project No. PW-TS1901.
RECOMMENDATION:
Adopt Resolution No. 10570 authorizing the City Manager to execute a Right-of-Way Contract between the City of Indio; and Adriana Fernandez Perez and Nancy Fernandez, for the acquisition of approximately 1,198 square feet of permanent roadway easement and 44 square feet of permanent utility easement, and 599 square feet of temporary construction easement of a parcel identified as APN 612-280-012, located at 83116 Avenue 50, to facilitate the construction of the Jackson Street Improvement Project Phase 2, City Project No. PW-TS1901.
SUMMARY:
The proposed Resolution sets forth the terms and conditions to be included in the Right-of-Way Contract for the acquisition of the permanent and temporary construction easements, needed for the construction of the Jackson Street Improvement Project Phase 2 Project No. PW-TS1901
BACKGROUND INFORMATION:
The city is advancing the Jackson Street Phase 2 Improvements Project No. PW-TS1901 (the “Project”). Before Phase 2 can proceed to construction, the City must complete required right-of-way acquisitions, including permanent roadway and utility easements and a temporary construction easement from property located at 83116 Avenue 50 (APN 612-280-012) (the “Property”).
The Project corridor extends along Jackson Street from Odlum Drive/Avenue 49 to approximately 1,600 feet south of Avenue 52, and along portions of Avenue 50 and Avenue 52 east and west of Jackson Street.
Phase I of the Project completed initial pavement rehabilitation and installed underground utilities, drainage improvements, conduit for future traffic signals and streetlights, and selected sidewalks, curb ramps, and driveways. Phase II will complete the ultimate roadway widening and install new traffic signals at Avenue 50, Avenue 51, and Avenue 52. When finished, Jackson Street will include AGENDA ITEM #9.9
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The property owners, Adriana Fernandez Perez and Nancy Fernandez, as joint tenants, were presented an offer for the acquisition of the following (the “Property Interest”):
Approximately 1,198 square feet of permanent roadway easement Approximately 44 square feet of permanent utility easement Approximately 599 square feet of temporary construction easement
These areas are shown in the legal descriptions and exhibit maps included in the Right-of-Way Contract.
Monument, the City’s right-of-way consultant, presented a written offer on November 5, 2025, in the amount of $11,450, based on an appraisal and determination of just compensation.
The parties reached a settlement agreement on April 23, 2026, in the amount of $11,450. This settlement reflects the value of the permanent easement area. Monument has advised that the settlement amount represents a reasonable and supportable outcome based on market conditions and corridor location.
utility public access long-term and for allow easements utility placement permanent The infrastructure. In this case, the easement areas will accommodate two electrical vault locations near the front of the property, along with rights for installation, maintenance, repair, and access.
The temporary construction easement allows the City and its contractors to enter and use a defined portion of the property along the Avenue 50 frontage strictly for construction and related activities.
This easement is limited in duration and expires twelve (12) months after the City issues a written Notice to Proceed to the contractor, unless extended by mutual agreement.
The agreed upon amount of just compensation is the sum of Eleven Thousand, Four Hundred Fifty Dollars ($11,450). The City’s offer is the full amount that the City has determined to be the fair market value of the entire Property Interest.
Key terms of the agreement include:
1. Payment of $11,450 as full compensation for all acquired permanent and temporary easement interests
2. Permanent easements allowing for roadway, public utility, access, and related municipal infrastructure purposes
3. A temporary construction easement allowing access, grading, staging, and construction support activities
4. The owner retains underlying property ownership subject to the easement rights granted
5. The agreement includes standard settlement, release, indemnity, and title conditions
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6. Easement deeds will be recorded following escrows with a Certificate of Acceptance executed by the City Manager.
This acquisition provides the permanent and temporary property rights necessary to construct the planned roadway and utility improvements while limiting impacts to defined areas. Staff believe the negotiated compensation and terms are reasonable and consistent with similar corridor acquisitions and recommend acceptance to allow the Project to proceed on schedule.
FINANCIAL SUMMARY:
Current FY Financial
Impact:
$11,450 In current year budget: Yes
Current FY General
Fund Impact:
$0 Budget adjustment: No
Next FY Financial
Impact:
$0 Strategic Objective: Public Infrastructure
Source of funds: Fund 300 Fund-Org-Object
Reference:
300-551006
Additional Financial Details:
Right-of-way acquisitions for the Jackson Street Improvement Project Phase 2, are included in the Fiscal Year 2025/26 project budget. Under and existing Cooperative Agreement, the Coachella Valley Associations of Government (CVAG) will reimburse 75% of the eligible project costs, including right-of-way acquisitions.
Project Code: PW-TS1901
Increase appropriations:
300-551006 Land – Right-of-Way $11,450
Increase revenue:
300-402215 Reimbursement $8,587.50 (CVAG 75%)
Expected offset:
300-523006 Construction Services $11,450 (City share 25%)
ATTACHMENTS:
Attachment 1 - Property Location Map
Attachment 2 - Resolution No. 10570
APPROVAL(S):
Timothy Wassil, Public Works Director Approved - 22 May 2026 Ruby D. Walla, Director of Finance Approved - 26 May 2026 Steven Graham Pacifico, City Attorney Approved - 27 May 2026
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PROPERTY LOCATION MAP
83116 AVENUE 50
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A RIGHT-OF-WAY CONTRACT BETWEEN THE CITY OF INDIO; AND
ADRIANA FERNANDEZ PEREZ AND NANCY FERNANDEZ , FOR THE
ACQUISITION OF APPROXIMATELY 1,198 SQUARE FEET OF
PERMANENT ROADWAY EASEMENT, 44 SQUARE FEET OF PERMANENT UTILITY EASEMENT, AND 599 SQUARE FEET OF TEMPORARY
CONSTRUCTION EASEMENT OF A PARCEL IDENTIFIED AS APN 612- 280-012, LOCATED AT 83116 AVENUE 50, TO FACILITATE THE
CONSTRUCTION OF THE JACKSON STREET IMPROVEMENT PROJECT PHASE 2, CITY PROJECT NO. PW-TS1901.
WH
EREAS, The city is advancing the Jackson Street Phase 2 Improvements Project (the “Project”). The Project corridor extends along Jackson Street from Odlum Drive/Avenue 49 to approximately 1,600 feet south of Avenue 52, and along portions of Avenue 50 and Avenue 52 east and west of Jackson Street; and WH
EREAS, rehabilitation initial completed pavement the of 1 Phase Project and installed underground utilities, drainage improvements, conduit for future traffic signals and streetlights, and selected sidewalks, curb ramps, and driveways; and WH
EREAS, install and widening roadway ultimate complete will 2 Phase the new traffic signals at Avenue 50, Avenue 51, and Avenue 52. When finished, Jackson Street will include two lanes in each direction, a center turn lane, Class II bike lanes, and the remaining pedestrian access improvements; and
WH
EREAS, Before must construction, City can proceed to Phase the 2 complete required right-of-way acquisitions, including permanent roadway and utility easements and a temporary construction easement from property located at 83116 Avenue 50 Assessor Parcel Number 612-280-012 (the “Property”), and based on a review of public records, are the owners of record; and WH
EREAS, the approximately 1,198 square feet of permanent roadway easement, and permanent utility easement square feet of 44 will complete the ultimate roadway widening and install new traffic signals at Avenue 50, Avenue 51, and Avenue 52. When finished, Jackson Street will include two lanes in each direction, a center turn lane, Class II bike lanes, and the remaining pedestrian access improvements; and
WH
EREAS, the approximately 599 square feet of temporary construction easement allows the City and its contractors to enter and use a defined portion of related and construction for strictly frontage Avenue along property the 50 the activities. This easement is limited in duration and expires twelve (12) months after the City issues a written Notice to Proceed, unless extended by mutual agreement; and
1
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The City Council hereby finds that all of the facts set forth in the recitals of this resolution are true, correct, and are incorporated herein.
Section the purpose that declares of finds and 2. The the Council City permanent easements allow roadway, public utility, access, and related municipal infrastructure purposes.
Section 3. The City Council finds and declares that the purpose of the temporary construction easement allows access, grading, staging, and construction support activities.
Section 4. The City Council hereby approves the Easement Deeds attached herein as Exhibit A and hereby authorizes the City Manager to execute Certificates of County for Office Recorder’s Riverside transmit the to and Acceptance of recordation.
Section 5. The City Council hereby authorizes the City Manager to take any and all actions required to effectuate the provisions of this Resolution.
Section 6. This Resolution shall be effective upon adoption.
Section 7. The City Clerk shall certify to the adoption of this Resolution.
2
Resolution No. 10570, authorizing the City Manager to execute a Right-of... Page 179 of 345 PASSED, APPROVED AND ADOPTED this 18th day of March 2026.
ELAINE HOLMES, MAYOR
ATTEST:
SABDI SANCHEZ, MMC
DIR. OF CITY CLERK SERVICES
3
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EXHIBIT A
4
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RIGHT OF WAY CONTRACT
Name
Adriana Fernandez Perez and Nancy Fernandez as joint tenants with rights of survivorship
Adriana Fernandez Perez and Nancy Fernandez
a • • • • ·vorship
RIGHT-OF-WAY CONTRACT
APN
612-280-012
Adriana Fernandez Perez and Nancy Fernandez as joint tenants with rights of survivorship (hereinafter, "Grantors"), owns the real property located at 83 I 16 A venue 50, Indio, CA 92201 in the County of Riverside, Assessor Parcel Number 612- 280-012 (the "Property"). Easements in a portion of the Property are needed for Phase 2 of the Jackson Street and Avenue 50 Improvement Project, which is for public use and benefits the public generally (the "Project"). This phase includes the installation of curbs, gutters, sidewalks, driveways, and drainage improvements. Additionally, traffic signals will be installed at the intersections of Jackson StreetJ A venue 50, Jackson StreetJ Avenue 51, and Jackson StreetJ Avenue 52. A Permanent Easement Deed (Exhibit " I"), a Utility Easement Deed (Exhibit "2") and a Permit to Enter and Construct Deed (Exhibit "3") to the City of Indio (the "City"), covering the property interests as described and depicted in Exhibits "A- I" and "B-1" attached to Exhibit " 1 ", Exhibits "B-1" and "B-2" attached to Exhibit "2" and Exhibit "A-3" attached to Exhibit "3" (collectively, the "Property Interests") have been executed and delivered to, Linda Flores, Right-of-Way Agent for Monument, agent for the City.
In consideration of which, and the other considerations hereinafter set fo11h, it is mutually agreed as follows:
I. (A) The parties have herein set forth the whole of their agreement ("Agreement"). The performance of this Agreement constitutes the entire consideration and shall relieve the City of al I further obligations or claims on this account, or on account of the location, grade or construction of the proposed public improvement. (B) The City requires said Property Interests described in Exhibit "1 ", Exhibit "2" and Exhibit "3" for the Project, a public use for which the City has the authority to exercise the power of eminent domain. Grantors are compelled to sell and the City is compelled to acquire the Property Interests. (C) Both Grantors and the City recognize the expense, time, effort, and risk to both parties in determining the compensation for the Property Interests by eminent domain litigation. The compensation set forth herein for the Property Interests is in compromise and settlement, in lieu of such litigation. (D) lt is agreed that the City may open an escrow in accordance with this Agreement at an escrow company of the City's choice ("Escrow Agent"). This Agreement constitutes the joint escrow instructions of the City and Grantors, and Escrow Agent to whom these instructions are delivered is hereby empowered to act under this Agreement. The parties hereto agree to perform all acts reasonably necessary to close this escrow within sixty (60) days following the opening of escrow.
2. (A) The City shall pay the undersigned Grantors the sum of ELEVEN THOUSAND FOUR HUNDRED FIFTY DOLLARS AND NO CENTS ($11,450.00) for the Property Interests conveyed by Exhibit "l" and Exhibit "2" when title to said Property Interests vests in the City free and clear of all liens, deeds of trusts, encumbrances, assessmems, easements and leases (recorded and/or unrecorded), and taxes.
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(B) The City shall pay all escrow and recording fees incurred in this transaction, and if title insurance is desired by the City, the premium charged, therefore. Due to the City's status as a public agency, no recording fees will be payable (pursuant to Government Code Section 27383) and no documentary tax will be payable (pursuant to Revenue & Taxation Code Section 11922). This transaction may be handled through an external escrow with Stewart Title Company or another selected escrow company. (C) The City shall have the authority to deducl and pay from the amount shown on Clause 2(A) above, any amount necessary to satisfy any bond demands and delinquent taxes due in any year except the year in which this escrow closes, together with penalties and interest thereon, and/or delinquent and unpaid non-delinquent assessments which have become a lien at the close of escrow.
3. FULL AND COMPLETE SETTLEMENT. Grantors hereby acknowledge that they are the sole and lawful owners of the Property and the compensation paid to Grantors through this Agreement constitutes the full and complete settlement of any and all claims against the City of Indio and the State of California, Department of Transportation (hereinafter "Releasees") by reason of the Project and/or acquisition of the Property Interests, including, but not limited to, any and all rights or claims that Grantors had, currently has, or may in the future have under Article I, Section 19 of the California Constitution, California Code of Civil Procedure § 1230.0 I 0, et seq. (the "Eminent Domain Law"), or any other law or regulation, except as provided herein. Gran tors, on behalf of themselves and their successors and assigns, further knowingly and voluntarily waive and expressly release and discharge Releasees and any and all ofReleasees' employees, agents, officers, servants, representatives, contractors, attorneys, partner agencies and assigns, from liability in regard to any claims for the following: pre-condemnation damages, inverse condemnation, lost business goodwill, lost profits, lost rents, severance damages, mitigation damages, curative costs, landscaping, compensation for the construction and use of the Project in the manner proposed, damage to or loss of improvements pertaining to the realty, machinery, fixtures, inventory, equipment and/or personal property, interest, any righl to repurchase, leaseback, or receive any financial gain from, the sale of any portion of the Property lnterests, any right to challenge the adoption of a resolution of necessity, any right to receive any notices pursuant to Code of Civil Procedure section 1245.235, any right to enforce any obligation pursuant to the Eminent Domain Law, any other rights conferred upon Grantors pursuant to the Eminent Domain Law, and claims for litigation expenses, attorney's fees, statutory interest and/or costs. Grantors further consent to the dismissal of any Eminent Domain proceeding that is filed pertaining to the Property Interests and further waive all attorney's fees, costs, claims to money on deposit, disbursements and expenses in connection with the dismissal of said proceeding.
4. The parties intend that this Agreement will result in a full, complete and final resolution and settlement of any and all claims, causes of action or disputes which exist, or may exist, between them as to the acquisition, possession and/or use of the Property Interests, except as expressly provided herein. lt is therefore understood that the waiver, under this Agreement, of any rights, damages, compensation or benefits to which Grantors are, or may be, entitled 1s intended to be full and complete. Accordingly, except as provided herein:
(A) Pursuant to the releases set forth in this Agreement, Grantors specifically waives the provision of section 1542 of the Civil Code of the State of California which provides:
"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party." (B) Gran tors represent and warrant that they understand the effect of this waiver of section 1542 and have had the opportunity to discuss the effect of this waiver with counsel of their choice.
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5. Any monies payable under this Agreement up to and including the total amount of unpaid principal and interest on note(s) secured by mortgage(s) or deed(s) of trust, if any, and all other amounts due and payable in accordance with the terms and conditions of said deed(s) of trust or mortgage(s), shall upon demand(s) be made payable to the mortgagee(s) or beneficiary(ies) entitled thereunder; said mortgagee(s) or beneficiary(ies) are to furnish Grantors with good and sufficient receipt showing said monies credited against the indebtedness secured by said mortgage(s) or deed( s) of trust.
6. Gran tors represent and warrant that they are the fee simple owner of the Property and that they have the right to convey the Property Interests. Grantors will defend and indemnify the City, its successors and/or assigns if it turns out that a claim is made or legal action is filed against the City, its successors and/or assigns by someone claiming a legal interest in or right to the Property, or any portion thereof. Grantors represent and warrant that they will defend and indemnify the City, its successor and/or assigns in the amount of any due and unpaid real property taxes, assessments, liens and any penalties and delinquencies on the Property. Grantors represent and warrant that they have made no assignment of any interest in the Property.
7. Grantors acknowledge that there are tenants on the Property. Grantors agree to hold the City harmless and reimburse the City for any and all of its losses and expenses occasioned by reason of any lease of said Property held by any tenant ofGrantors for a period exceeding one month. Grantors acknowledges that a general release or quitclaim deed will be required from any lessee regarding the disclaimer of the tenants' interests in the amount payable under Clause 2(A) above. Said general releases or quitclaim deeds are to be provided by Grantors, prior to the close of escrow.
The provisions of this paragraph shall apply to current leases on the Property as well as future leases, if any, that are entered into after the execution of this Agreement.
8. It is understood and agreed by and between the parties hereto that included in the amount payable under Clause 2(A) above is payment in full to compensate Gran tors for the purchase of the following improvements, including but not limited to: None.
9. It is understood and agreed by and between the parties hereto that the following improvements within the Property Interests will be protected in place: None. It is further understood and agreed to by and between the parties hereto that the following improvements within the Property Interests will be relocated: The existing block wall will be removed, disposed of, and replace in kind by the City or its project contractor. The existing mailbox will be relocated to 18" behind face of the curb by the city or its project contractor.
I 0. Prior to the City's actual/physical possession of the TCE, Grantors agree to hold hann less, defend and indemnify the City, its officers, directors, employees and agents against any and all claims including property damage or injuries resulting from the use of the area within the TCE by Grantors and/or Grantors' guests, invitees, or any other person. The City shall not be deemed to have control of the TCE nor duty to maintain the TCE in a safe condition prior to the time the City or the City's contractor take actual/physical possession of the TCE.
Grantors agrees to name The City as an additional insured under its current insurance policy. Grantors further agree to notify the City in writing within thirty (30) days of any potential claim relating to the area within the Property Interests prior to the City taking actual/physical possession of the Property Interests.
I I. It is agreed and confim1ed by the parties hereto that notwithstanding other provisions in this contract, the right of possession and use of the Property Interests by the City, including the right to remove and dispose of improvements, shall commence on the date the amount of funds as specified in Clause 2(A) above are deposited into the escrow controlling this transaction. The amount shown in Clause 2(A) above includes, but is not limited to, full payment for such possession and use, including damages, if any, from said date.
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12. It is understood and agreed by and between the parties hereto that payment as provided in Clause 2(A) includes, but is not I im ited to, payment for any and all past, present, and/or future damages which have accrued or may accrue to Grantors' remaining property by reason of its severance from the property conveyed herein and the construction and use of the proposed Project, including, but not limited to, any expense which Grantors may incur in restoring the utility of the remaining property. This release is not intended to extend to unanticipated physical damage caused by construction.
13. It is agreed between the parties hereto that the City is not assuming responsibility for payment or subsequent cancellation of unpaid assessments on Property Interests acquired under this transaction. Said assessments include but are not limited to any assessments listed in the title report (Stewart Title Company order number 25000 I IO I 08A). Granters acknowledges that they have received and reviewed the Preliminary Title Repo1t. The assessments remain the obligation of Grantors. Payment for the Property Interests acquired under this transaction is made upon the basis that the Grantors retain their obligation to the levying body respecting said assessments. The Property Interests acquired under this transaction are to be free and clear of any liens, bonds and/or assessments at the close of escrow.
14. The Temporary Permission to Enter and Construct Easement (PEC) shall be for a period of twelve ( 12) months ("PEC Term"). Grantors shall be provided at least thirty (30) days written notice prior to commencement of work within the Temporary area. Grantors agree to keep the area free and clear of all materials, shrubbery, crops, improvements, personal property, and debris during the PEC Term. Grantors agree that any materials, shrubbery, crops, improvements, personal property and debris within the TCE area that remains after commencement of work within the TCE area may be removed by the City and/or its contractor. Grantors further agree that the cost of removal of any materials, shrubbery, crops, improvements, personal property, or debris that are installed during the TCE Term shall be the sole responsibility of Granters. In the event it is anticipated the use will extend beyond the prescribed time, the City and the Grantors shall enter into an amendment contract to extend the term of the TCE. The City shall provide Just Compensation for the extended period.
15. Any notice either party may or is required to give the other shall be in writing and shall be either personally delivered or sent by registered or certified mail, return receipt requested. Tfby mail, service shall be deemed to have been received by such party at the time the notice is delivered to the following addresses:
To Grantors:
Adriana Perez
83116 Avenue 50
Indio, CA 9220 I
To City oflndio:
I 00 City Center Mall
Indio, CA 92201
Attn: Engineering
16. It is understood and agreed by and between the parties hereto that this Agreement inures to the benefit of, and is binding on, the parties, their respective heirs, personal representatives, subsequent purchasers, successors, and/or assignees. The City may freely assign any or all of its interests or rights under this Agreement.
17. Grantors represent and warrant that during the period of Grantors ownership of the Property, there have been no disposals, releases or threatened releases of hazardous substances or hazardous wastes on, from, or under the Property.
Gran tors further represent and warrant that Grantors has no knowledge of any disposal, release, or threatened release of hazardous substances or hazardous wastes on, from, or under the Property which may have occurred prior to Grantors taking title to the Property.
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The acquisition price of the Property Interests being acquired in this transaction reflects the full and complete settlement of the Property Interests without the presence of contamination. Tf the Property Interests being acquired are found to be contaminated by the presence of hazardous waste which requires mitigation under Federal or State law, the City may elect to recover its clean-up costs from those who caused or contributed to the contamination including, but not limited to, Grantors.
18. Tt is understood and agreed that the fully executed Permanent Easement Deeds and Temporary Permission to Enter and Construct Easement Deed may be recorded in the Recorder's Office for the County of Riverside.
19. The City reserves the right to cancel escrow and terminate this Agreement if at any time the City determines that the Property Interests are no longer needed for the Project.
20. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter of this Agreement and may not be modified except by an instrument in writing signed by the party to be bound thereby.
21. If any term or provision of this Agreement shall be held to be invalid or unenforceable, the remainder of the Agreement shall remain in full force and effect.
22. Each individual executing this Agreement on behalf of an entity represents and warrants that he or she has been authorized to do so by the entity on whose behalf he or she executes this Agreement, and that said entity will thereby be obligated to perform the terms of this Agreement.
23. This Agreement may be executed in counterparts, including by facsimile and/or e-mail, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument.
24. No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity that is subject of this contract.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGE FOLLOWS
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In Witness Whereof the Parties vested have executed this Agreement the day and year set forth below.
Date:---�_,__
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City oflndio, a municipal corporation
By:_______________ _
Its: __________________ _
Date:. _______ __ ________ _
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APPROVED AS TO FORM:
By:___________ _
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CERTIFICATE OF ACCEPTANCE
This is to certify that the Grant of Easement Deed for APN 612-280-012 from Adriana Fernandez Perez and Nancy Fernandez as joint tenants with rights of survivorship dated ___________ is hereby accepted by the undersigned officer or agent on behalf of the City of Indio, a Municipal Corporation on behalf of the City Council of the City of Indio, pursuant to authority conferred by Resolution No. 1028 of the City Council for the City of Indio adopted on August 6, 1958, and the grantee consents to the recordation thereof by its duly authorized officer.
DATE: __________________
CITY OF INDIO
BY: ________________________________
BRYAN H. MONTGOMERY
CITY MANAGER
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RECORDING REQUESTED BY
WHEN RECORDED RETURN TO:
City of Indio
I 00 City Center Mall
Indio. CA 92201
Attn: Engineering
FREE RECORDING:
This instrument is for the benefit of the City of Indio and is entitled lo be recorded without fee or tax. (Gov. Code. �§ 6103, 27383: and Rev. & Tax. Code,§ 11922.)
APN: 612-280-012
GRANT OF EASEMENT
(Permanent Utility Easement)
Above Space for Recorder's Use
FOR VALUABLE CONSIDERATION, receipt and sufficiency of which is hereby acknowledged, Adriana Fernandez Perez and Nancy Fernandez as joint tenants with rights of survivorship, ("GRANTORS"), hereby grant to the City of Indio, a municipal corporation, (hereinafter referred to as "GRANTEE"), its successors and assigns, a permanent easement for public utility purposes, inclusive of ingress and egress, for the construction, re-construction, installation, use, repair, rehabilitation and maintenance of public utilities including, but not limited, to water, gas, sewer, drainage pipes, poles, overhead or underground wires, conduits for electrical, communication and television services, and appurtenances thereto, above, over, across, and under all that real property situated in the City of Indio, County of Riverside, State of California, described as follows:
See Exhibit A-2, legal description, and Exhibit B-2, plat to accompany legal description, attached hereto and made a part hereof.
The Grantors agree for themselves, their successors and assigns not to erect, place or maintain, nor to permit the erection, placement or maintenance of any building, planter boxes, earth fill, or other structures over the area described in Exhibit A-2, legal description, and Exhibit B-2, plat, attached hereto and made part hereof.
Grantee is expressly granted the right to convey, transfer or assign the easement rights described above to other parties.
Executed this lL day of /�)/l \ , 20.2d,p
Adriana Fernandez Perez and Nancy Fernandez as joint tenants with rights of survivorship By:
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CERTIFICATE OF ACCEPTANCE
This is to certify that the Grant of Easement Deed for APN 612-280-012 from Adriana Fernandez Perez and Nancy Fernandez as joint tenants with rights of survivorship dated ___________ is hereby accepted by the undersigned officer or agent on behalf of the City of Indio, a Municipal Corporation on behalf of the City Council of the City of Indio, pursuant to authority conferred by Resolution No. 1028 of the City Council for the City of Indio adopted on August 6, 1958, and the grantee consents to the recordation thereof by its duly authorized officer.
DATE: __________________
CITY OF INDIO
BY: ________________________________
BRYAN H. MONTGOMERY
CITY MANAGER
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Resolution No. 10570, authorizing the City Manager to execute a Right-of... Page 204 of 345 CERTIFICATE OF ACCEPTANCE This is to certify that the Grant of Easement Deed for APN 612-280-012 from Adriana Fernandez Perez and Nancy Fernandez as joint tenants with rights of survivorship dated ___________ is hereby accepted by the undersigned officer or agent on behalf of the City of Indio, a Municipal Corporation on behalf of the City Council of the City of Indio, pursuant to authority conferred by Resolution No. 1028 of the City Council for the City of Indio adopted on August 6, 1958, and the grantee consents to the recordation thereof by its duly authorized officer. DATE: __________________ CITY OF INDIO BY: ________________________________ BRYAN H. MONTGOMERY CITY MANAGER
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City Council
June 3, 2026
STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: Resolution No. 10571, authorizing the City Manager to execute a Right-of- Way Contract between the City of Indio; and Maria Cristina Garibay Flores, for temporary of square 1,080 feet of acquisition the approximately construction easement of a parcel identified as APN 612-260-001, located at 49050 Jackson St, to facilitate the construction of the Jackson Street Improvement Project Phase 2, City Project No. PW-TS1901.
RECOMMENDATION:
Adopt Resolution No. 10571 authorizing the City Manager to execute a Right-of-Way Contract between the City of Indio; and Maria Cristina Garibay Flores, for the acquisition of approximately 1,080 square feet of temporary construction easement of a parcel identified as APN 612-260-001, located at 49050 Jackson St, to facilitate the construction of the Jackson Street Improvement Project Phase 2, City Project No. PW-TS1901.
SUMMARY:
The proposed Resolution sets forth the terms and conditions to be included in the Right-of-Way Contract for the acquisition of the temporary construction easement, needed for the construction of the Jackson Street Improvement Project Phase 2 Project No. PW-TS1901.
BACKGROUND INFORMATION:
The city is advancing the Jackson Street Phase 2 Improvements Project No. PW-TS1901 (the “Project”). Before Phase 2 can proceed to construction, the City must complete required right-of-way acquisitions, including a temporary construction easement from property located at 49050 Jackson St (APN 612-260-001) (the “Property”).
The Project corridor extends along Jackson Street from Odlum Drive/Avenue 49 to approximately 1,600 feet south of Avenue 52, and along portions of Avenue 50 and Avenue 52 east and west of Jackson Street.
Phase I of the Project completed initial pavement rehabilitation and installed underground utilities, drainage improvements, conduit for future traffic signals and streetlights, and selected sidewalks, curb ramps, and driveways. Phase II will complete the ultimate roadway widening and install new traffic signals at Avenue 50, Avenue 51, and Avenue 52. When finished, Jackson Street will include two lanes in each direction, a center turn lane, Class II bike lanes, and the remaining pedestrian access improvements. The Project will be advertised for bids once all right-of-way requirements are secured.
AGENDA ITEM #9.10
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The property owner, Maria Cristina Garibay Flores, was presented an offer for the acquisition of the following (the “Property Interest”):
Approximately 1,080 square feet of temporary construction easement
These areas are shown in the legal descriptions and exhibit maps included in the Right-of-Way Contract.
Monument, the City’s right-of-way consultant, presented a written offer on October 10, 2025, in the amount of $1,100, based on an appraisal and determination of just compensation.
On March 12, 2026, the property owner provided a written counteroffer in the amount of $12,000.
The parties reached a settlement agreement on April 24, 2026, in the amount of $12,000. While the property owner did not dispute the valuation process, she believed that her property was worth more than the value presented. The property owner has the right to obtain an independent appraisal and may be reimbursed up to $5,000 for the reasonable cost of that appraisal. Rather than pursue that process, through matter the resolve to indicated a a has owner the willingness negotiated settlement.
Settlement at this amount would resolve the acquisition efficiently and avoid the additional time and administrative costs associated with further appraisal review or extended negotiations.
The temporary construction easement allows the City and its contractors to enter and use a defined portion of the property along the Jackson Street frontage strictly for construction and related activities. This easement is limited in duration and expires twelve (12) months after the City issues a written Notice to Proceed to the contractor, unless extended by mutual agreement.
The agreed upon amount of just compensation is the sum of Twelve Thousand Dollars ($12,000).
The City’s offer is the full amount that the City has determined to be the fair settlement of the entire Property Interest.
Key terms of the agreement include:
1. Payment of $12,000 as full compensation for all acquired permanent and temporary easement interests
2. A temporary construction easement allowing access, grading, staging, and construction support activities
3. The owner retains underlying property ownership subject to the easement rights granted
4. The agreement includes standard settlement, release, indemnity, and title conditions
5. Acceptance of Certificate a with escrows recorded be will deeds Easement following executed by the City Manager.
This acquisition provides the temporary property rights necessary to construct the planned roadway and utility improvements while limiting impacts to defined areas. Staff believe the negotiated
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FINANCIAL SUMMARY:
Current FY Financial
Impact:
$12,000 In current year budget: Yes
Current FY General
Fund Impact:
$0 Budget adjustment: No
Next FY Financial
Impact:
$0 Strategic Objective: Public Infrastructure
Source of funds: Fund 300 Fund-Org-Object
Reference:
300-551006
Additional Financial Details:
Right-of-way acquisitions for the Jackson Street Improvement Project Phase 2, are included in the Fiscal Year 2025/26 project budget. Under and existing Cooperative Agreement, the Coachella Valley Associations of Government (CVAG) will reimburse 75% of the eligible project costs, including right-of-way acquisitions.
Project Code: PW-TS1901
Increase appropriations:
300-551006 Land – Right-of-Way $12,000
Increase revenue:
300-402215 Reimbursement $9,000 (CVAG 75%) Expected offset:
300-523006 Construction Services $12,000 (City share 25%)
ATTACHMENTS:
Attachment 1 - Property Location Map
Attachment 2 - Resolution No. 10571
APPROVAL(S):
Timothy Wassil, Public Works Director Approved - 22 May 2026 Ruby D. Walla, Director of Finance Approved - 26 May 2026 Steven Graham Pacifico, City Attorney Approved - 27 May 2026 Bryan H. Montgomery, City Manager Approved - 27 May 2026
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PROPERTY LOCATION MAP
83116 AVENUE 50
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF INDIO,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A RIGHT-OF-WAY CONTRACT BETWEEN THE CITY OF INDIO; AND
MARIA CRISTINA GARIBAY FLORES, FOR THE ACQUISITION OF APPROXIMATELY 1, 080 SQUARE FEET OF TEMPORARY
CONSTRUCTION EASEMENT OF A PARCEL IDENTIFIED AS APN 612- 260-001, LOCATED AT 49050 JACKSON ST , TO FACILITATE THE
CONSTRUCTION OF THE JACKSON STREET IMPROVEMENT PROJECT PHASE 2, CITY PROJECT NO. PW-TS1901.
WH
EREAS, The city is advancing the Jackson Street Phase 2 Improvements Project (the “Project”). The Project corridor extends along Jackson Street from Odlum Drive/Avenue 49 to approximately 1,600 feet south of Avenue 52, and along portions of Avenue 50 and Avenue 52 east and west of Jackson Street; and WH
EREAS, Phase rehabilitation pavement initial 1 Project the of completed and installed underground utilities, drainage improvements, conduit for future traffic signals and streetlights, and selected sidewalks, curb ramps, and driveways; and WH
EREAS, install roadway ultimate and complete the Phase widening will 2 new traffic signals at Avenue 50, Avenue 51, and Avenue 52. When finished, Jackson Street will include two lanes in each direction, a center turn lane, Class II bike lanes, and the remaining pedestrian access improvements; and
WH
EREAS, Before Phase 2 can proceed to construction, the City must complete required right-of-way acquisitions, including a temporary construction easement from property located at 49050 Jackson St, Assessor Parcel Number 612- 260-001 review (the “Property”), and based on a of public records, are the owners of record; and
WH
EREAS, the approximately 1,080 square feet of temporary construction easement allows the City and its contractors to enter and use a defined portion of property along the the Jackson Street frontage strictly for construction and related activities. This easement is limited in duration and expires twelve (12) months after the City issues a written Notice to Proceed, unless extended by mutual agreement; and
1
Resolution No. 10571 , authorizing the City Manager to execute a Right-o... Page 210 of 345 WHEREAS, the agreed upon property the of amount just compensation for interest is the sum of twelve thousand dollars ($12,000), and the offer is a fair settlement of the property interest.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The City Council hereby finds that all of the facts set forth in the recitals of this resolution are true, correct, and are incorporated herein.
Section of the the that declares purpose finds Council City and The 2. temporary construction easement allows access, grading, staging, and construction support activities.
Section 3. The City Council hereby approves the Easement Deeds attached herein as Exhibit A and hereby authorizes the City Manager to execute Certificates of Acceptance for Office Riverside of Recorder’s to transmit and County the recordation.
Section 4. The City Council hereby authorizes the City Manager to take any and all actions required to effectuate the provisions of this Resolution.
Section 5. This Resolution shall be effective upon adoption.
Section 6. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 3rd day of June 2026.
ELAINE HOLMES, MAYOR
ATTEST:
SABDI SANCHEZ, MMC
DIR. OF CITY CLERK SERVICES
2
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EXHIBIT A
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RIGHT OF WAY CONTRACT
Name APN
Maria Cristina Garibay Flores, a single woman 612-260-001 Maria Cristina Garibay Flores, a single woman
Ma,co (!,115hn Q (xicJ6r,w r/4,r<:.c
Grantor
RIGHT-OF-WAY CONTRACT
Maria Cristina Garibay Flores, a single woman (hereinafter, "Grantor"), owns the real property located at 49050 Jackson Street, Indio, CA 92201 in the County ofRivcrside, Assessor Parcel Number 612-260-001 (the "Property"). A portion or the Property is needed for Phase 2 of the Jackson Street and Avenue 50 Improvement Project (the "Project"), which is for public use and benefits the public generally. This phase includes the installation of curbs, gutters, sidewalks, driveway�. and drainage improvements. Additionally, traffic signals will be installed at the intersections of Jackson Street/Avenue SU.
Jackson Street/Avenue 51, and Jackson Street/Avenue 52. A Temporary Construction Easement Deed (Exhibit" I") to rhe City oflndio (the City), covering the property interest as described and depicted in Exhibits "A" and "B" attached to Exhibit "l" (collectively, the "Property Interest") have been executed and delivered to, Linda Flores, Right-of-Way Agent for Monument, agent for the City.
In consideration of which, and the other considerations hercina!ler set forth, it is mutually agreed as follows:
l. (A) The parties have herein set forth the whole of their agreement ("Agreement"). The performance of thi� Agreement constitutes the entire consideration and shall relieve the City of all further obligations or claiml> on this account, or on account of the location, grade or construction of the proposed public improvement. (B) The City requires said Property Interest described in Exhibit" I" for the Project, a public use for which the City has the authority to exercise the power of eminent domain. Grantor is compelled to sell, and the City •� compelled to acquire the Property lnterest.
(C) Both Grantor and the City recognize the expense, time, effort, and risk to both parties in determining the compensation for the Property Interest by eminent domain litigation. The compensation set forth herein for the Property Interest is in compromise and settlement, in lieu of such litigation. (D) Jt is agreed that the City may open an escrow in accordance with this Agreement at an escrow company of the City's choice ("Escrow Agent"). This Agreement constitutes the joint escrow instmctions of the City and Grantor, and Escrow Agent to whom these instructions are delivered is hereby empowered to act under this Agreement. The parties hereto agree to perform all acts reasonably necessary to close this escrow within sixty (60) days following the opening of escrow.
2. (A) The City shall pay the undersigned Grantor the sum of TWELVE THOUSAND DOLLARS AND NO L\15681.1
CENTS ($12,000.00) for the Property Interest conveyed by Exhibit "I" when title to said Property Interest vests in the City free and clear of all liens, deeds of trusts, encumbrances, assessments, easements and lease:-. (recorded and/or unrecorded), and taxes.
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RIGHT OF WAY CONTRACT
(B) The City shall pay all escrow and recording fees incurred in this transaction, and if title insurance is desired by the City, the premium charged, therefore. Due to the City's status as a public agency, no recording fees will be payable (pursuant to Government Code Section 27383) and no documentary tax will be payable (pursuant to Revenue & Taxation Code Section 11922). This transaction may be handled through an external escrow with Commonwealth Land Title Company or another selected escrow company. (C) The City shall have the authority to deduct and pay from the amount shown on Clause 2(A) above, any amount necessary to satisfy any bond demands and delinquent taxes due in any year except the year in which this escrow closes. together with penalties and interest thereon, and/or delinquent and unpaid non-delinquent assessments which have become a lien at the close of escrow.
3. FULL AND COMPLETE SETTLEMENT. Grantor hereby acknowledges that she is the sole and lawful owner oC the Property and the compensation paid to Grantor through this Agreement constitutes the full and complete scttlerncnl of any and all claims against the City of Indio and the State of California, Department of Transportation (hereinafter "Releasees") by reason of the Project and/or acquisition of the Property Interest, including, but not limited to. any and all rights or claims that Grantor had, currently has, or may in the future have under Article 1, Section 19 or the Cali fomia Constitution, Cali fomia Code of Civil Procedure § 1230.0 I 0, et seq. (the "Eminent Domain Law'"), or any other law or regulation, except as provided herein. Grantor, on behalf of herself and her successors and assign�. further knowingly and voluntarily waives and expressly releases and discharges Releasees and any and all of Releasees' employees, agents, officers, servants, representatives, contractors, attorneys, partner agencies and assigns. from liability in regard to any claims for the following: pre-condemnation damages, inverse condemnation. lo�r business goodwill, lost profits, lost rents, severance damages, mitigation damages, curative costs, landscaping. compensation for the construction and use of the Project in the manner proposed, damage to or loss of improvements pertaining to the realty, machinery, fixtures, invenrory, equipment and/or personal property, interest, any right to repurchase, leaseback, or receive any financial gain from, the sale of any portion of the Prope1ty Interest, any right to challenge the adoption of a resolution of necessity, any right to receive any notices pursuant to Code of Civil Procedure section 1245.235, any right to enforce any obligation pursuant to the Eminent Domain Law. any other rights conferred upon Grantor pursuant to the Eminent Domain Law, and claims for litigation expenses, attorney's fees, statutory interest and/or costs. Grantor further consents to the dismissal of any Eminent Domain proceeding that is filed pertaining to the Property Interest and further waives all attorney's fees, costs, claims to money on deposit. disbursements and expenses in connection with the dismissal of said proceeding.
4. The parties intend that this Agreement will result in a full, complete and final resolution and settlement of any and al I claims, causes of action or disputes which exist, or may exist, between them as to the acquisition, possession and/or use of the Property Interest, except as expressly provided herein. It is therefore understood that the waiver. under rhis Agreement, of any rights, damages, compensation or benefits to which Grantor is, or may be, entitled is intended to be full and complete. Accordingly, except as provided herein:
1315681.1
(A) Pursuant to the releases set fo1th in this Agreement. Grantor spel:ifically waives the provision of section 1542 of the Civil Code of the State of California which provides:
"A general release does not extend to claims that the creditor or releasing party docs not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party." (B) Grantor represents and warrants that she understands the effect of this waiver of section 1542 and has ha<l the opportunity to discuss the effect of this waiver with counsel of her choice.
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RIGHT OF WAY CONTRACT
5. Any monies payable under this Agreement up to and including the total amount of unpaid principal and interest on note(s) secured by mortgage(s) or deed(s) of trust, if any, and all other amounts due and payable in accordance with the terms and conditions of said deed(s) of trust or mortgage(s), shall upon demand(s) be made payable to the mortgagee(s) or beneficiary(ies) entitled thereunder; said mortgagee(s) or beneficiary(ies) are to furnish Grantor with good and sufficient receipt showing said monies credited against the indebtedness secured by said mortgage(s) or deed( s) of trust.
6. Grantor represents and warrants that she is the fee simple owner of the Prope1ty and that she has the right to convey the Property Interest. Grantor will defend and indemnify the City, its successors and/or assigns if it turns out that a claim is made or legal action is filed against the City, its successors and/or assigns by someone claiming a legal interest in or right to the Property, or any portion thereof. Grantor represents and warrants that she will defend and indemnify the City, its successor and/or assigns in the amount of any due and unpaid real property taxes, assessments. liens and any penalties and delinquencies on the Property. Grantor represents and warrants that she has made no assignment of any interest in the Property.
7. Grantor represents and warrants that there are no oral or written leases on all or any portion of the Property exceeding a period of one month. Grantor agrees to hold the City harmless and reimburse the City for any and all of its losses and expenses occasioned by reason of any lease of said Property held by any tenant ofGrantor for a period exceeding one month. Grantor acknowledges that a general release or quitclaim deed will be required from any lessee regarding the disclaimer of the tenants' interests in the amount payable w1der Clause 2(A) above. Said general releases or quitclaim deeds are to be provided by Grantor, prior to the close of escrow. The provisions of this paragraph shall apply to current leases on the Property as well as future leases, if any, that are entered into after the execution of thi� Agreement.
8. It is understood and agreed by and between the parties hereto that included in the amount payable under Clause 2(A) above is payment in full to compensate Grantor for the purchase of the following improvements, including but not limited to: None
9. It is understood and agreed by and between the parties hereto that the following improvements within the Property Interest will be protected in place: None. lt is fi.uther understood and agreed to by and between the parties hereto that the following improvements within the Property Interest will be relocated: The existing wood fence will be removed, disposed of: and replaced in kind by the City or its project contractor. The existing mailbox will be relocated to 18" behind the face of thc curb by the City or its project contractor.
10. Prior to the City's actual/physical possession of the TCE, Grantor agrees to hold harmless, defend and indtmmify the City its officers, directors, employees and agents against any and all claims including property damage or injurie!) re�ulting from the use of the area within the TCE by Grantor and/or Grantor's guests, invitees, or any other person. The City :shall not be deemed to have conu·ol of the TCE nor duty to maintain the TCE in a safe condition p1ior to the time the Ciry 01· the City's contractor take actual/physical possession of the TCE.
Grantor agrees to name the City as an additional insured under its current insurance policy. Grantor further agrees to notify the City in writing within thirty (30) days of any potential claim relating to the area within the Property Interest prior to the City taking actual/physical possession of the Prope1ty Interest.
11. It is agreed and eonfinned by the parties hereto that notwithstanding other provisions in this contract, the right or possession and use of the Property Interest by the City, including the right to remove and dispose ofimprovemcnts, shall commence on the date the amount of funds as specified in Clause 2(A) above are deposited into the escrow controlling this transaction. The amount shown in Clause 2(A) above includes, but is not limited to, full payment for such possession and use, including damages, if any, from said date.
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131568 I. I
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RIGHT OF WAY CONTRACT
12. It is understood and agreed by and between the parties hereto that payment as provided in Clause 2(A) includes, but is not limited to, payment for any and all past, present, and/or future damages which have accrued or may accrue to Grantor's remaining property by reason of its severance from the property conveyed herein and the construction and use of the proposed Project, including, but not limited to, any expense which Grantor may incur in restoring the utility of the remaining property. This release is not intended to extend to unanticipated physical damage caused by construction.
13. It is agreed between the parties hereto that the City is not assuming responsibility for payment or subseque111 cancellation of unpaid assessments on Property Interest acquired under this transaction. Payment for the Property Lnterest acquired under this transaction is made upon the basis that the Grantor retains her obligation to the levying body respecting said assessments.
14. The Temporary Construction Easement shall be for a period of twelve (12) months ("TCE Term"). The TCE Term shall commence upon a 30-day written notice provided by the City or its contractor to Grantor. Grantor shall be provided at least thirty (30) days written notice prior to commencement of work within the Temporary Construction Easement area.
Grantor agrees to keep the TCE area free and clear of all materials, shrubbery, crops, improvements, personal property, and debris during the TCE Tenn. Grantor agrees that any materials, shrubbery, crops, improvements, personal property and debris within the TCE area that remains after commencement of work within the TCE area may be removed by the City and/or its contractor. Grantor further agrees that the cost of removal of any materials, shrubbery. crop�. improvements, personal property, or debris that are installed during the TCE Term shall be the sole responsibility of Grantor. In the event it is anticipated the use will extend beyond the prescribed time, the City and the Grantor shall enter into an amendment contract to extend the term of the TCE. The City shall provide Just Compensation for the extended period.
15. Any notice either party may or is required to give the other shall be in writing and shall be either personally delivered or sent by registered or certified mail, return receipt requested. Ifby mail, service shall be deemed to have been received hy such party at the time the notice is delivered to the following addresses:
To Grantor:
Maria Cristina Gaiibay Flores
49050 Jackson Street
Indio, CA 9220 I
To City of Indio:
100 City Center Mall
Indio, CA 9220 l
Attn: Engineering
16. It is understood and agreed by and between the parties hereto that this Agreement inures to the benefit of, and is hinding on, the parties, their respective heirs, personal representatives, subsequent purchasers, successors, and/or assignees. The City may freely assign any or all of its interests or rights under this Agreement.
17. Grantor represents and wan-ants that during the period of Grantor's ownership of the Property, there have been no disposals, releases or threatened releases of hazardous substances or hazardous wastes on, from, or under the Prope11y.
Grantor further represents and wan-ants that Grantor has no knowledge of any disposal, release, or threatened relca�c of hazardous substances or hazardous wastes on, from, or under the Propt!rty which may have occurred prior Ill Grantor taking title to the Property.
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RIGHT OF WAY CONTRACT
The acquisition price of the Property Interest being acquired in this transaction reflects the full and complete settlement of the Property Interest without the presence of contamination. lf the Propi;:rty Interest being acquired is found to be contaminated by the presence of hazardous waste which requires mitigation under Federal or State law, the City may elect to recover its clean-up costs from those who caused or contributed to the contamination including. but not limited to, Grantor.
18. lt is understood and agreed that the fully executed Temporary Construction Easement Deed may be recorded in the Recorder's Office for the County of Riverside.
19. The City reserves the right to cancel escrow and terminate this Agreement if at any time the City determines that the Property Interest is no longer needed for the Project.
20. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter or this Agreement and may not be modified except by an instmment in writing signed by the party to be bound thereby.
21. If any tenn or provision of this Agreement shall be held to be invalid or unenforceable, the remainder ofthe Agreement shall remain in full force and effect.
22. Each individual executing this Agreement on behalf of an entity represents and warrants that he or she has bcc11 authorized to do so by the entity on whose behalf he or she executes this Agreement, and that said entity will thereby be obligated to perform the terms of this Agreement.
23. This Agreement may be executed in counterparts, including by facsimile and/or e-mail, each of which so execute<l shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument.
24. No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity that is subject of this contract.
J:115681.t
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGE FOLLOWS
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RIGHT OF WAY CONTRACT
In Witness Whereof, the Parties vested have executed this Agreement the day and year set forth below.
Maria Cristina Garibay Flores, a single woman
By: Ma rf G Cri rl ✓nQ
Maria Cristina Garibay Flores
City of Indio, a municipal corporation
By: --------------------
Its: -------------------
Date:. __________________ _
1315681.1
APPROVED AS TO FORM:
By: ____________ _
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H:\2022\22-0013\Drawings\Mapping\Legals & Plats\TCE\612-260-001\22-0013 TCE APN 612-260-001 LEGAL.docx Albert A. Webb Associates EXHIBIT “A”
TEMPORARY CONSTRUCTION EASEMENT
LEGAL DESCRIPTION
THAT PORTION OF THE NORTHERLY 80.00 FEET OF THE WESTERLY 200.00 FEET OF LOT 12 OF COACHELLA LAND AND WATER COMPANY’S SUBDIVISION OF SECTION 36, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, AS SHOWN BY MAP ON FILE IN BOOK 4, PAGE 53 OF MAPS, RECORDS OF RIVERSIDE COUNTY,
LYING IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID PORTION BEING DESCRIBED AS FOLLOWS:
THE EASTERLY 13.50 FEET, OF THE WESTERLY 53.80 FEET , OF THE NORTHERLY
80.00 FEET, OF SAID LOT 12.
EXCEPTING THEREFROM THE WESTERLY RECTANGULAR 40.00 FEET THERE OF INCLUDED IN JACKSON STREET, A PUBLIC HIGHWAY.
CONTAINING 1,080 SQUARE FEET, MORE OR LESS.
AS SHOWN ON THE ATTACHED EXHIBIT “B” AND BY REFEREN CE MADE A PART HEREOF.
PREPARED UNDER MY SUPERVISION
______________________________ _______________
Michael E. Johnson, L.S. 7673 Date
Prepared by: CGS
Checked by: MEJ
04/09/202504/09/202504/09/202504/09/2025
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City Council
June 3, 2026
STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Timothy Wassil, Public Works Director
Subject: the of acceptance and improvement agreement the of Approval water performance and payment bonds from D.R. Horton, Los Angeles Holding Company, Inc. for Tract Map No. 38072-5 for the Dolfina Project.
RECOMMENDATION:
That the City Council approve the Water Improvement Agreement and accept the performance and payment bonds from D.R. Horton, Los Angeles Holding Company, Inc. for Tract Map No. 38072-5 for the Dolfina Project, located near the southeast corner of Jackson Street and Avenue 49, and authorize execution of the agreement and related documents.
SUMMARY:
The Engineering Department reviewed and approved the water improvement plans for Tract No. 38072-5 in accordance with the Indio Water (IW) Development Services Procedural Guidelines. The proposed single-family residential development is located near the southeast corner of Jackson Street and Avenue 49. D.R. Horton submitted a Water Improvement Agreement along with performance the water public required of bonds guarantee to payment and construction infrastructure associated with the project. The Water Improvement Agreement establishes the developer’s obligation to construct the required water improvements in accordance with approved plans and IW standards and provides financial security to ensure completion of the improvements should the developer fail to perform the work. Staff recommend that the City Council approve the Water Improvement Agreement and accept the associated performance and payment bonds.
BACKGROUND INFORMATION:
Tract Map No. 38072-5 (Dolfina) is a proposed single-family residential development located near the southeast corner of Jackson Street and Avenue 49. As part of the project requirements, D.R.
Horton (Developer) is required to construct the onsite water improvements described in Exhibit B of the payment and performance provide Water Agreement Improvement proposed bonds and securing completion of the improvements.
The Developer submitted performance and payment bonds for Tract Map No. 38072-5 in the amount of $285,671.50 (Bond No. 1119161). The agreement and bonds guarantee the faithful performance and completion of the required public water improvements.
The proposed water improvements for Tract Map No. 38072-5 include approximately 1,520 linear feet of 8-inch ductile iron water pipeline, thirty-six (36) 1-inch water service connections, and three (3) 6-inch wet barrel fire hydrants with associated gate valves and appurtenances.
The Engineering Department reviewed the improvement plans and supporting documents and determined that the submitted agreement and bonds satisfy IW requirements. Staff recommends AGENDA ITEM #9.11
Approval of the water improvement agreement and acceptance of the perfor... Page 224 of 345 that the City Council approve the Water Improvement Agreement and accept the performance and payment bonds as set forth in Attachment 1.
FINANCIAL SUMMARY:
Current FY Financial
Impact:
$0 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
Additional Financial Details:
There is no cost or fiscal impact associated with this action.
ATTACHMENTS:
Attachment 1 - Improvement Agreement and Bonds
Attachment 2 - Vicinity Map
APPROVAL(S):
Timothy Wassil, Public Works Director Approved - 27 May 2026 Ruby D. Walla, Director of Finance Approved - 27 May 2026 Steven Graham Pacifico, City Attorney Approved - 28 May 2026 Bryan H. Montgomery, City Manager Approved - 28 May 2026
Approval of the water improvement agreement and acceptance of the perfor... Page 225 of 345 1222!!a
[email protected]
DUDE!
WDW:WJ15
terAuthorityYourWater.OurResponsibility.
Instructions:CustomerinformationshouldbecompletedandpertinentboxesshouldbecheckedfordocumentssubmittedtoIW A.CompleteddocumentscanbesubmittedtoIW [email protected]:DR.Horton,LosAngelesHoldingCompany,Inc./MarioOmelasPhone# (951)415-4568EmailAddress:ProiectName:Dol?naProiectAddress:SEcornerofJacksonStreetandAvenue49TractNo.:TR38072Phase&LotNo.Phase5— Lots1-37 Comments
IW AImprovementAgreementEngineer'sOpinionofProbableCostPaymentBond(LaborandMaterial)PerformanceBond WaterBondReleaseProcedureFormShopDrawingSubmittalReviewForm Bill0fSale N/A— NotrequireduntilafterworkcompletedIWAEasementTemplatesN/A— tobededicatedonTractMap CustomerSignature:
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
W ATERAGREEMENTSANDRELATED
WaterImprovementProcedureChecklistOf?cialBoardApprovalDocuments Pre-Construction
ProjectCompletion
Approval of the water improvement agreement and acceptance of the perfor... Page 226 of 345 authority,hereinatterreferredto 1m,andtheDEVE'EOPER.
terAuthorityYourWater.OurResponsibility.
RecordingRequestedByIndioWaterAuthorityWhenRecordedReturnTo:SabdiSanchez,CMCCityClerkAdministratorCityofIndio100CivicCenterMallIndio,California92201ExemptfromrecordingfeespursuanttoGovtCod.Sec.27383 (SpaceAbovethisLineforRecorder’sUse)
INDIOW ATERAUTHORITYIMPROVEMENTAGREEMENTDATEOFAGREEMENT NAMEOFDEVELOPER;DR.Horton,LosAngelesHoldlngCompany,Inc(referredtoas”DEVELOPER”)NAMEOFPROJECT:Dol?na(referredtoas”PROJECTorSUBDIVISION")TRACTNO.:38072 TENTATIVEMAPRESOLUTIONOFAPPROV ALNO.ORPLANNINGAPPLICATIONNO.: ResolutionNO-10277(referredtoas"ResolutionofApproval”)ESTIMATEDTOTALCOSTOFIMPROVEMENTS$$285,671-50COMPLETIONDATE:February3,2027 ThisAgreementismadeandenteredintobyandbetweentheIndioWaterAuthority,ajointpowers asRECITALSA.DEVELOPERdesirestoconstructoff-sitewaterimprovementsfortheextensionofitswatermainsaswellasguaranteethesatisfactorycompletionofsuchworkforaprojectknownasthe“ Dol?na”pursuanttotheprovisionsofthe DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 Appendix
Approval of the water improvement agreement and acceptance of the perfor... Page 227 of 345 ?nance—lomithin.1he.subdi¥isionranihaslak?mma?nalacmecessammsubdividuhapropeny— terAuthorityYourWater.OurResponsibility.
SubdivisionMapActoftheStateofCalifornia(“SubdivisionLaws”)andtheapplicableCityofIndioordinancesandIW Arequirements.B.PursuanttoResolutionNo.10277(“ResolutionofApproval”),TentativeParcelMap38072hasbeenapproved,subjecttotheSubdivisionLawsandtherequirementsandconditionscontainedintheResolutionofApproval,forpropertylocatedatAssessorParcelNumbers612-260-004,-006,-012and612-280-003through-004(“PROJECT”)andasfurtherdescribedinthelegaldescriptionattachedasExhibit“A”.TheResolutionofApprovalison?leintheOf?ceoftheIW AandisincorporatedintothisAgreementbyreference.C.TheSubdivisionLawsestablishasaconditionprecedenttotheapprovalofa?nalmapthatDEVELOPERmusthavecompliedwiththeResolutionofApprovalandmustcompletecertainwaterimprovements,amongothers,incompliancewithCityofIndio(“City”)andIW Astandards.D.InconsiderationofthisAgreementandothergoodandsuf?cientconsideration,DEVELOPERagreestoenterintothisAgreementandpromisestoinstallandcomplete,atDEVELOPER’Sownexpense,theoff-sitewaterimprovementworkrequiredbyIW Ainconnectionwiththeproposedsubdivision.DEVELOPERhassecuredthisAgreementbyimprovementsecurityrequiredbytheSubdivisionLaws.E.Completeimprovementplansfortheconstruction,installationandcompletionoftheimprovementsdescribedhereinhavebeenpreparedbyDEVELOPERandapprovedbytheIW AEngineer.Theimprovementplansareon?leintheOf?ceoftheIW AandareincorporatedintothisAgreementbythisreference(“ImprovementPlans”).AllreferencesinthisAgreementtotheImprovementPlansshallincludereferencetoanyspeci?cationsfortheimprovementsasapprovedbytheIW AEngineer.F.AnestimateofthecostofconstructionoftheimprovementsaccordingtotheImprovementPlanshasbeenmadeandhadbeenapprovedbytheIW AEngineer.TheestimatedamountisstatedonPage1ofthisAgreement.G.TheCityandIW Ahaveadoptedstandardsfortheconstructionandinstallationofsaidimprovements.TheImprovementPlanshavebeenpreparedinconformancewithapplicableCityandIW AstandardsineffectonthedateofapprovaloftheResolutionofApproval.H.DEVELOPERrecognizesthatbyapprovalofthe?nalmapforthissubdivision,theCityhasconferredsubstantialrightsuponDEVELOPER,includingtherighttosell,lease,orwithinthesubdivision.Asaresult,theCityandIW AwillbedamagedtotheextentofthecostofinstallationoftheimprovementsbyDEVELOPER’SfailuretoperformitsobligationsunderthisAgreement,including,butnotlimitedto,DEVELOPER’SobligationtocompleteconstructionoftheimprovementsbythetimeestablishedinthisAgreement.TheCityandIW AshallbeentitledtoallremediesavailabletoitpursuanttothisAgreementandtheSubdivisionLawsintheeventofadefaultbyDEVELOPER.Itisspeci?callyrecognizedthatthedeterminationofwhethera DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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IW AApprovaloprDlicationforExtensionofWaterMains.
igationstoConstructImprovements
—and_appmval—hy_l-W A V—Such-work—shaH—be—undenakgn-by—a—quali?ed—Galifemia terAuthorityYourWater.OurResponsibility.
reversiontoacreageorrescissionoftheSUBDIVISIONconstitutesanadequateremedyfordefaultbytheDEVELOPERshallbewithinthesolediscretionoftheCity.NOWTHEREFORE,inconsiderationoftherecitalssetforthabove,DEVELOPERandIW Aagreeasfollows:1.PursuanttoanapplicationmadetoIW AbyDEVELOPERandinconsiderationofthisAgreement,IW AherebyagreestoextenditswatermainsfromthepresentingexistingmainsorallowsuchanextensionbyDEVELOPERsubjecttothetermsandconditionssetforthinthisAgreement.2.DEVELOPER’SObl .DEVELOPERshall:a.Atitssolecostandexpense,provideconstructionmanagement,constructionstaking,designofwaterplansandconstructandinstalltheoff-sitepublicwatersystemimprovementtogetherwillallotherappurtenancesassetforthinExhibit“B”tothisAgreement(the“Improvements”)baseduponpreliminaryengineeringplansandstudiesandtheImprovementPlanssubmittedtoIW A.ThisdescriptionisintendedtoroughlyoutlinethescopeoftheworksandimprovementstobedesignedandconstructedinconnectionwiththisAgreement.TheexactworksandimprovementscomprisingtheImprovementsmaychangeasaresultofsiterequirements,changesinconstructionstandards,geologicconditions,abilitytolocateadequatesourceofwaterpressureandsupply,engineeringconstraints,orotherfactors.TheIW AEngineer,inhisorherreasonablediscretion,mayapprovesubstituteworksandimprovementstoreplacesomeoralloftheworksandimprovementssetforthinExhibit“B”tothisAgreement,ifsuchsubstituteworksandimprovementswouldprovidethePROJECTservicesofasimilarnaturetothoseprovidedbytheworksandimprovementssetforthinExhibit“B”tothisAgreement.b CompletebythetimeestablishedinExhibit“C”ofthisAgreementandatDEVELOPER’Sownexpense,theImprovementsinconformancewiththeImprovementPlansandtheIW Astandards.c.ConstructsuchImprovementsinfullcompliancewiththeapprovedImprovementPlansandtherequirementsofthisAgreement,andinaccordancewithanyotherapplicableIW AorCityofIndiorequirementsandconditions,subjecttoinspectionlicensedcontractord.FurnishthenecessarymaterialsforcompletionoftheImprovementsinconformitywiththeImprovementplansandIW Astandards.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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llwuulaluvu ”0..“ V . ....,.
InterestInrealproperty,andappropriateauthorizationtroanhepropertyto terAuthorityYourWater.OurResponsibility.
e PrevailingWages.PursuanttotherequirementsofLaborCodeSection1720,DEVELOPERshallpayprevailingwagesforallworkperformedfortheconstruction,alteration,demolition,installation,orrepairortheStreetImprovementWorkrequiredbythisagreement.InaccordancewiththeprovisionsofSection1773oftheLaborCodeoftheStateofCalifornia,theIW Ahasobtainedthegeneralprevailingrateofperdiemwagesandthegeneralrateforholidayandovertimeworkinthislocalityforeachcraft,classi?cation,ortypeofworkmanneededtoexecuteunderthisAgreementfromtheDirectoroftheDepartmentofIndustrialRelations.Theseratesareon?lewiththeOf?ceoftheIW A.CopiesmaybeobtainedatcostattheOf?ceoftheIW A.DEVELOPERshallpostacopyofsuchwageratesatthejobsiteandshallpaytheadoptedprevailingwagerateasaminimum.DEVELOPERshallcomplywiththeprovisionsofSections1773.8,1775,1776,1777.5,1777.6and1813oftheLaborCodeandotherapplicablelawsandregulationswithrespecttothepaymentofprevailingwages.Pursuanttotheprovisionsof1775oftheLaborCodeDEVELOPERshallforfeittotheIW A,asapenaltythesumof$25.00foreachcalendarday,orportionthereof,foreachlaborer,worker,ormechanicemployed,paidlessthanthestipulatedprevailingratsforanyworkdoneunderthisAgreement,byitorbyanysubcontractorunderit,inviolationoftheprovisionsoftheAgreementorinviolationofanyapplicablelawsorregulationspertainingtothepaymentofprevailingwages.f. Acquireanddedicate,orpaythecostofacquisitionbyIW A,ofallright-of-way,easementsandotherinterestsinrealpropertyforconstructionorinstallationoftheImprovements,freeandclearofallliensandencumbrances.TheDEVELOPER’SobligationswithregardtoacquisitionbyIW Aofoff-siteright-of-way,easementsandotherinterestsinrealpropertyshallbesubjecttoaseparateAgreementbetweenDEVELOPERandIW A.DEVELOPERshallalsoberesponsibleforobtaininganypublicorprivatedrainageeasementsorauthorizationstoaccommodatethePROJECT.g ComplywiththeallrequirementsoftheResolutionofApprovalandanyamendmentsthereto,andwithprovisionsoftheSubdivisionLaws.3 AM'Iieitin"andDedicationofEasementofPioht-nf-WavIfanyofthepublicimprovementandlanddevelopmentworkcontemplatedbythisAgreementistobeconstructedorinstalledonlandnotownedbyDEVELOPER,noconstructionorinstallationshallbecommencedbefore:a.TheofferofdedicationtoIW Aofappropriateright-of-way,easementsorotherownerallowconstructionorinstallationoftheimprovementsorwork,orb.Thededicationto,andacceptanceby,theIW Aofappropriateright-of-way,easementsorotherinterestsinrealproperty,asdeterminedbytheIW AEngineer,01‘ DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
Approval of the water improvement agreement and acceptance of the perfor... Page 230 of 345 AlterationstoImprovementPlans
gn'gina]gstimatgdgas;ofmgimpmxgmengsmEmEERshapmxide
terAuthorityYourWater.OurResponsibility.
c TheissuancebyacourtofcompetentjurisdictionpursuanttotheStateEminentDomainLawofanorderofpossession.DEVELOPERshallcomplyinallrespectswiththeorderofpossession.NothinginthisSection3shallbeconstruedasauthorizingorgrantinganextensionoftimetoDEVELOPER.4 Securig.DEVELOPERshallatalltimesguaranteeDEVELOPER’SperformanceofthisAgreementbyfurnishingtoIW A,andmaintaining,goodandsuf?cientsecurityasrequiredbytheSubdivisionLawsonformsapprovedbyIW Aforthepurposesandintheamountsasfollows:a.ToassurefaithfulperformanceofthisAgreementinregardtosaidimprovementsinanamountof100%oftheestimatedcostoftheimprovements;andb Tosecurepaymenttoanycontractor,subcontractor,personsrentingequipment,orfurnishinglabormaterialsfortheimprovementsrequiredtobeconstructedorinstalledpursuanttothisAgreementintheadditionalamountof100%oftheestimatedcostoftheimprovements;andc ToguaranteeorwarrantytheworkdonepursuanttothisAgreementforaperiodofoneyearfollowingacceptancethereofbyIW Aagainstanydefectiveworkorlabordoneordefectivematerialsfurnishedintheadditionalamountof10%oftheestimatedcostoftheimprovements.MsecuritiesrequiredbythisAgreementshallbekepton?lewiththeOf?ceoftheIW A.ThetermsofthesecuritydocumentsreferencedhereinareincorporatedintothisAgreementbythisreference.Ifanysecurityisreplacedbyanotherapprovedsecurity,thereplacementshallbe?ledwiththeOf?ceoftheIW Aand,upon?ling,shallbedeemedtohavebeenmadeapartofanincorporatedintothisAgreement.Upon?lingofareplacementsecuritywiththeOf?ceoftheIA,theformersecuritymaybereleased. a Anychanges,alterationsoradditionstotheimprovementplansandspeci?cationsortotheimprovements,notexceeding10%oftheoriginalestimatedcostoftheimprovements,whicharemutuallyagreeduponbytheIW AandDEVELOPER,shallnotrelievetheimprovementsecuritygivenforfaithfulperformanceofthisAgreement.Intheeventsuchchanges,alterations,oradditionsexceed10%oftheimprovementsecurityforfaithfulperformanceasrequiredbyParagraph4ofthisAgreementfor100%ofthetotalestimatedcostoftheimprovementaschanged,altered,oramended,minusanycompletedpartialreleasesallowedbyParagraph7ofthisAgreement.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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terAuthorityYourWarer.OurResponsibility.
b.TheDEVELOPERshallconstructtheimprovementsinaccordancewiththeIW AstandardsineffectatthetimeofadoptionoftheResolutionofApproval.IW AreservestherighttomodifythestandardsapplicabletothePROJECTandthisAgreement,whennecessarytoprotectthepublichealth,safetyandwelfare.6.Inspection.a. DEVELOPERshallatalltimesmaintainproperfacilitiesandsafeaccessforinspectionoftheImprovementsbytheIW Ainspectorandtothebusinessesorresidenceswhereinanyworkisinprogress.IW AshallhavetherighttoenteranyconstructionsiteatanytimetoinspecttheworkortheprogressofconstructionoftheImprovementsthatarethesubjectofthisAgreement.UponcompletionoftheworktheDEVELOPERmayrequesta?nalinspectionbytheIW AEngineer,ortheIW AEngineer’sauthorizedrepresentative.IftheIW AEngineer,orthedesignatedrepresentative,determinesthattheworkhasbeencompletedinaccordancewiththisAgreement,thentheIW AEngineershallcertifythecompletionoftheImprovementsforacceptancebyIW A.Noimprovementsshallbe?nallyacceptedunlessaspectsoftheworkhavebeeninspectedanddeterminedtohavebeencompletedinaccordancewiththeImprovementPlansandIW AandifapplicableCitystandards.DEVELOPERshallbearallcostsofinspectionandcerti?cation.TheinspectionbyIW AoftheconstructionforconformancewiththeImprovementPlansshallnotbedeemedtoconferliabilityonIW AortheCityorotherwiseplacetheresponsibilityforproperlyconstructingandinspectingtheImprovementsuponIW A.b.IW AisnotresponsibleanddoesnotowntheImprovementsuntiltheyareinspectedandapprovedandacceptedbyIW AandallfeesandchargesassociatedwiththeconstructionoftheImprovementsand/orotherfeesowedbyDevelopertotheIW Aarepaidinfull.Untilsuchtime,DEVELOPERisresponsiblefortheImprovementsandisliableforalldamagetosaidfacilities.TheDevelopershallindemnifyIW A,itsgoverningboard,of?cersandemployeesforanyandallclaimsofanykindrelatingtheconstructionoftheImprovementsincurredpriortotheIW A’sacceptanceofsaidfacilities.c. AtnotimeduringconstructionorpriortoIW A’sacceptanceoftheImprovementsconstructedbyDEVELOPERshallDEVELOPER,itsagentsoremployees,populateorusetheImprovementsforanyunauthorizedpurpose,orpopulatetheImprovementswithnon-potablewateroranyotherchemicalorsubstancenotauthorizedinwritingbyIW A.7 .SubjecttoapprovalbytheIW ABoard,thesecuritiesrequiredbythisAgreementshallbereleasedasfollows:a. Securitygivenforfaith?ilperformanceofanyact,obligation,workoragreementshallbereleaseduponthe?nalcompletionandacceptanceoftheactorwork,subjecttotheprovisionsofsubsection(b)hereof.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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—8.—lniurv‘to—Pub?c‘lmarovement5‘Pnblic‘Provertv‘UrPub'?rUtiliTv’F‘a‘ci'?ti‘BS.— terAuthorityYourWater.OurResponsibility.
b TheIW AEngineermayreleaseaportionofthesecuritygivenforfaithfulperformanceofimprovementworkastheimprovementprogressesuponapplicationthereforebytheDEVELOPER;provided,however,thatnosuchreleaseshallbeforanamountlessthan25%ofthetotalimprovementsecuritygivenforfaith?llperformanceoftheimprovementworkandthatthesecurityshallnotbereducedtoanamountlessthan10%ofthetotalimprovementsecuritygivenforfaithfulperformanceuntil?nalcompletionandacceptanceoftheimprovementwork.InnoeventshalltheIW AEngineerauthorizeareleaseoftheimprovementsecurity,whichwouldreducesuchsecuritytoanamountbelowthatrequiredtoguaranteethecompletionoftheimprovementworkandanyotherobligationimposedbythisAgreement.c Securitygiventosecurepaymenttothecontractor,hisorhersubcontractorsandtopersons?irnishinglabor,materialsorequipmentshall,sixmonthsafterthecompletionandacceptanceofthework,bereducedtoanamountequaltothetotalclaimedbyallclaimantsforwholienhavebeen?ledandofwhichnoticehasbeengiventothelegislativebody,plusanamountreasonablydeterminedbytheIW AEngineertoberequiredtoassuretheperformanceofanyotherobligationssecuredbytheSecurity.Thebalanceofthesecurityshallbereleaseduponthesettlementofallclaimsandobligationsforwhichthesecuritywasgiven.d.Nosecuritygivenfortheguaranteeorwarrantyofworkshallbereleaseduntiltheexpirationofthewarrantyperiodanduntilanyclaims?ledduringthewarrantyperiodhavebeensettled.Asprovidedinparagraph12,thewarrantyperiodshallnotcommenceuntil?nalacceptanceofalltheworkandImprovementsbytheIW ABoard.e TheIW Amayretainfromanysecurityreleased,anamountsuf?cienttocovercostsandreasonableexpensesandfees,includingreasonableattomey’sfees.f. AnystatuteoflimitationswithrespecttotheobligationsofDEVELOPERshallnotapplytoanybondsorotherformsofsecurityprovidedpursuanttothisAgreement.TheSurety’sliabilityunderanybondsorotherformsofsecurityprovidedpursuanttothisAgreementshallbereleasedonlyupon?nalcompletionandIW A’sacceptanceoftheworkrequiredpursuanttothisAgreement.TheexpirationofanystatuteoflimitationswithrespecttoDEVELOPERshallnotbaranactionagainsttheSuretyunderthebondoranyotherformofsecurityprovidedpursuanttothisAgreement.
DEVELOPERshallreplaceorhavereplaced,orrepairorhaverepaired,asthecasemaybe,allpublicimprovements,publicutilityfacilitiesandsurveyingorsubdivisionmonumentswhicharedestroyedordamagedasaresultofanyworkunderthisAgreement.DEVELOPERshallbeartheentirecostofreplacementorrepairsofanyandallpublicorpublicutilitypropertydamagedordestroyedbyreasonofanyworkdoneunderthisAgreement,whethersuchpropertyisownedbytheUnitedStatesorany DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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LimitationsofDamages
—mzimmmrmmmmtmmmm—
10. 11.
uthorityOurResponsibility.
agencythereof,ortheStateofCalifornia,oranyagencyorpoliticalsubdivisionthereof,orbytheIW Aoranypublicorprivateutilitycorporationorbyanycombinationofsuchowners.Anyrepairorreplacementshallbetothesatisfaction,andsubjecttotheapproval,oftheIW AEngineer..UntilsuchtimeasallImprovementsrequiredbythisAgreementare?lllycompletedandacceptedbyIW A,andIW AauthorizesconnectionofalloranypartofthePROJECTtoIW A’swatersystem,DEVELOPERshallnotalloworrequestpermitsforoccupancyofthePROJECToranyportionthereof.IW Ashallnot,norshallanyof?ceroremployeethereof,beliableorresponsibleforanyaccident,lossordamage,regardlessofthecause,happeningoroccurringtoanythirdpartiesinprivitywiththeDEVELOPERpriortotheauthorizationbyIW AtoconnectthePROJECToranyunitorportionthereoftoIW A’spublicwatersystem,inaccordancewithIW A’srulesandregulations.AllsuchrisksshallbetheresponsibilityofandareherebyassumedbyDEVELOPER.Permits.DEVELOPERshall,atDEVELOPER’Sexpense,obtainallnecessarypermitsandlicensesfortheconstructionandinstallationoftheimprovements,giveallnecessarynoticesandpayallfeesandtaxesrequiredbylaw.DefaultofDEVELOPER.a.DefaultofDEVELOPERshallinclude,butnotlimitedto,DEVELOPER’SfailuretotimelycommenceconstructionofthisAgreement;DEVELOPER’SfailuretotimelycompleteconstructionoftheImprovements;DEVELOPER’SfailuretotimelycureanydefectintheImprovements;DEVELOPER’Sfailuretoperformsubstantialconstructionworkforaperiodoftwenty(20)calendardaysaftercommencementofthework;DEVELOPER’Sinsolvency,appointmentofareceiver,orthe?lingofanypetitioninbankruptcyeithervoluntaryorinvoluntarywhichDEVELOPERfailstodischargewithinthirty(30)days;thecommencementofaforeclosureactionagainstthePROJECToraportionthereof,oranyconveyanceinlieuorinavoidanceofforeclosure;orDEVELOPER’SfailuretoperformanyotherobligationunderthisAgreement.TheIW AreservestoitselfallremediesavailabletoitatlaworinequityforbreachofDEVELOPER’SobligationsunderthisAgreement.TheIW Ashallhavetheright,subjecttothissection,todrawuponorutilizetheappropriatesecuritytomitigateIW AdamagesineventofdefaultbyDEVELOPER.TherightofIW Atodrawuponorutilizethesecurityisadditionaltoandnotinlieuofanyotherremedyamountsmaynotre?ecttheactualcostofconstructionorinstallationoftheimprovementsand,therefore,IW AdamagesforDEVELOPER’Sdefaultshallbemeasuredbythecostofcompletingtherequiredimprovements.ThesumsprovidedbytheimprovementsecuritymaybeusedbyIW AforthecompletionoftheImprovementsinaccordancewiththeImprovementPlansandspeci?cationscontainedtherein.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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12. terAuthorityYourW2ter.OurResponsibility.
c IntheeventofDEVELOPER’SdefaultunderthisAgreement,DEVELOPERauthorizesIW Atoperformsuchobligationtwenty(20)daysaftermailingwrittennoticeofdefaulttoDEVELOPERandtoDEVELOPER’SSurety,andagreestopaytheentirecostofsuchperformancebyIW A.(1.AtthesolediscretionofIW A,IW Amaytakeovertheworkandprosecutethesametocompletion,bycontractorbyanyothermethodIW Amaydeemadvisable,fortheaccountandattheexpenseofDEVELOPER,andDEVELOPER’SSuretyshallbeliabletoIW AforanyexcesscostordamagesoccasionedIW Athereby;and,insuchevent,IW A,withoutliabilityforsodoing,maytakepossessionof,andutilizeincompletingthework,suchmaterials,appliances,plantandotherpropertybelongingtoDEVELOPERasmaybeonthesiteoftheworkandnecessaryforperformanceofthework.e.FailureofDEVELOPERtocomplywiththetermsofthisAgreementshallconstituteconsenttothe?lingbyIW AofanoticeofviolationagainstallthelotsinthePROJECT,ortorequestthattheCityrescindtheapprovalorotherwisereverttheSUBDIVISIONtoacreage.TheremedyprovidedbythisSubsection0isinadditiontoandnotinlieuofotherremediesavailabletoIW A.DEVELOPERagreesthatthechoiceofremedyorremediesforDEVELOPER’SbreachshallbeinthediscretionofIW A.f. IntheeventthatDEVELOPERfailstoperformanyobligation,hereunder,DEVELOPERagreestopayallcostsandexpensesincurredbyIW Ainsecuringperformanceofsuchobligations,includingcostsofsuitandreasonableattomey’sfees.g.ThefailureofIW Atotakeanenforcementactionwithrespecttoadefault,ortodeclareabreach,shallnotbeconstruedasawaiverofthatdefaultorbreachoranysubsequentdefaultorbreachofDEVELOPER.WarrantyDEVELOPERshallguaranteeorwarrantytheworkdonepursuanttothisAgreementforaperiodofoneyearafter?nalacceptancebytheIW ABoardoftheworkandImprovementsagainstanydefectiveworkorlabordoneordefectivematerialsfurnished.Wherecertainimprovementsaretobeconstructedinphasesorsections,theoneyearwarrantyperiodshallcommenceafterIW Aacceptanceofthelastcompletedimprovement,IfwithinthewarrantyperiodanyworkorimprovementorpartofanyworkorImprovementdone,furnished,installed,constructedorcausedtobedone,furnished,installedorconstructedbyDEVELOPERfailstoful?llanyoftheherein,DEVELOPERshallwithoutdelayandwithoutanycosttoIW A,repairorreplaceorreconstructanydefectiveorotherwiseunsatisfactorypartorpartsoftheworkorstructure.ShouldDEVELOPERfailtoactpromptlyorinaccordancewiththisrequirement,DEVELOPERherebyauthorizesIW AatIW A’soption,toperformtheworktwenty(20)daysaftermailingwrittennoticeofdefaulttoDEVELOPERandtoDEVELOPER’SandagreestopaythecostofsuchworkbyIW A.ShouldtheIW A DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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DEVELOPERNotAgentof
OtherAgreements
DEVELOPER PUBLICDURINGCONSTRON‘
Vestingowanershig
—sha'll‘executmy‘docmnemno‘e?ecmate??rpmvision.
FinalAcceptanceofWork
13 14.
15 16.
17 terAuthorityYourWater.OurResponsibility.
determinethaturgencyrequiresrepairsorreplacementstobemadebeforeDEVELOPERcanbenoti?ed,IW Amay,initssolediscretion,makethenecessaryrepairsorreplacementorperformthenecessaryworkandDEVELOPERshallpaytoIW Athecostofsuchrepairs.IW A.NeitherDEVELOPERnoranyofDEVELOPER’SagentsorcontractorsareorshallbeconsideredtobeagentsofIW AinconnectionwiththeperformanceofDEVELOPER’SobligationsunderthisAgreement.IniurvtoWork.UntilsuchtimeastheimprovementsareacceptedbyIW A,DEVELOPERshallberesponsibleforandbeartheriskoflosstoanyoftheimprovementsconstructedorinstalled.UntilsuchtimeasallimprovementsrequiredbythisAgreementarefullycompletedandacceptedbyIW A,DEVELOPERwillberesponsibleforthecare,maintenanceof,andanydamagetosuchimprovement.IW Ashallnot,norshallanyof?ceroremployeethereof,beliableorresponsibleforanyaccident,lossordamage,regardlessofcause,happeningoroccurringtotheworkorImprovementsspeci?edinthisAgreementpriortothecompletionandacceptanceoftheworkorimprovements.AllsuchrisksshallbetheresponsibilityofandareherebyassumedbyDEVELOPER..NothingcontainedinthisAgreementshallprecludeIW AfromexpendingmoniespursuanttoAgreementsconcurrentlyorpreviouslyexecutedbetweentheparties,orfromenteringintoAgreementswithotherDEVELOPERSfortheapportionmentofcostsofwaterandsewermains,orotherimprovements,pursuanttotheprovisionsoftheIW Aordinanceprovidingtherefore,norshallanythinginthisAgreementcommitIW Aofanysuchapportionment.’SOBLIGATIONTOW ARN UCTIUntil?nalacceptanceoftheImprovements,DEVELOPERshallgivegoodandadequatewarningtothepublicofeachandeverydangerousconditionexistentinsaidimprovements,andwilltakeallreasonableactionstoprotectthepublicfromsuchdangerouscondition..DEVELOPERshallpromptlydedicateorgranttoIW A,withoutcharge,anyandallrights,rights-of—wayorotherpropertyinterestsnecessarytoIW AsownershipandcontroloftheImprovementstobeconstructedpursuanttothisAgreement,whichareonpropertyownedorcontrolledbyDEVELOPER.UponacceptanceoftheworkonbehalfofIW AandrecordationoftheNoticeofCompletion,ownershipoftheimprovementsconstructedpursuanttothisAgreementshallvestinIW A.DEVELOPER .AcceptanceoftheworkonbehalfofIW AshallbemadebytheIW ABoarduponrecommendationoftheIW AEngineerafter?nalcompletionandinspectionofallimprovements.TheIW ABoardshallactupontheEngineer’srecommendationwithinthirty(30)daysfromthedatetheIW AEngineercerti?esthatthe DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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Indemnit[HoldHarmless
siticn
anyportionproperty any person,
19 20.
terAuthorityYourWater.OurResponsibility.
workhasbeen?nallycompleted,asprovidedherein,oratsuchothertimedeemedreasonable.SuchacceptanceshallnotconstituteawaiverofdefectsbyIW A..IW Aoranyof?ceroremployeethereofshallnotbeliableforinjurytopersonsorpropertyoccasionedbyreasonoftheactsoromissionsofDEVELOPER,itsagentsoremployeesintheperformanceofthisAgreement.DEVELOPERagreestodefend,indemnifyandholdharmlessIW A,itsof?cialsandemployeesfromanyandallclaims,demands,causesoraction,liabilityorlossofanysort,becauseof,orarisingoutof,actsoromissionsofDEVELOPER,itsagentsoremployeesintheperformanceofthisAgreement,includingallclaims,demands,causesofaction,liability,orlossbecauseof,orarisingoutof,inwholeorinpart,thedesignorconstructionoftheImprovements.Thisindemni?cationandagreementtoholdharmlessshallextendtoinjuriestopersonsanddamagesortakingofpropertyresultingfromthedesignorconstructionofsaidSUBDIVISION,andtheImprovementsasprovidedherein,andinaddition,toadjacentpropertyownersasaconsequenceofthediversionofwatersfromthedesignorconstructionofpublicdrainagesystems,streetsandotherpublicimprovements.AcceptancebytheIW AoftheImprovementsshallnotconstituteanassumptionbytheIW AofanyresponsibilityforthedesignorconstructionoftheSUBDIVISIONortheImprovementspursuanttotheapprovedImprovementPlansormap,regardlessofanynegligentactionorinactiontakenbytheIW Ainapprovingtheplans,unlesstheparticularimprovementdesignwasspeci?callyrequiredbyIW AoverwrittenobjectionbyDEVELOPERsubmittedtotheIW AEngineerbeforeapprovaloftheparticularimprovementdesign,whichobjectionindicatedthattheparticularimprovementdesignwasdangerousordefectiveandsuggestedanalternativesafeandfeasibledesign.AfteracceptanceoftheImprovements,theDEVELOPERshallremainobligatedtoeliminateanydefectindesignordangerousconditioncausesbythedesignorconstructiondefect,howeverDEVELOPERshallnotberesponsibleforroutinemaintenance.ProvisionsofthisparagraphshallremaininfullforceandeffectfortenyearsfollowingtheacceptancebytheIW AofImprovements.ItistheintentofthisactionthatDEVELOPERshallberesponsibleforallliabilityfordesignandconstructionoftheImprovementsinstalledorworkdonepursuanttothisAgreementandthatIW Ashallnotbeliableforanynegligence,nonfeasance,misfeasanceormalfeasanceinapproving,reviewing,checking,orcorrectinganyplansorspeci?cationsorinapproving,reviewingorinspectinganyworkorconstruction.Theimprovementsecurityshallnotberequiredtocovertheprovisionsofthisparagraph.SaleorDispoofProiect.SaleorotherdispositionofthispropertywillnotrelieveDEVELOPERfromtheobligationssetforthherein.IfDEVELOPERsellsthepropertyorofthewithinthePROJECTtoothertheDEVELOPERmayrequestanovationofthisAgreementandasubstitutionofsecurity.Uponapprovalofthenovationandsubstitutionofsecurities,theDEVELOPERmayrequestareleaseorreductionofthesecuritiesrequiredbythisAgreement.NothinginthenovationshallrelievetheDEVELOPERoftheobligationsunderthisAgreementfortheworkorimprovementdonebyDEVELOPER.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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W123:»a
TimeforComletionofWork/TimeExtension
LegalResponsibilities
NoVestingofRights
—25—N‘i 5WIsuranceo‘f‘M—ags—mn)‘5Tg‘t‘amm.ThisAgreementdoesnotrescmd,lace,
21.22 23
24 terAuthorityYourWater.OurResponsibility.
TimeoftheEssence.TimeisoftheessenceofthisAgreement..DEVELOPERshallcompleteconstructionoftheimprovementsrequiredbythisAgreementinaccordancewiththescheduleofperformanceattachedasExhibitCheretoandincorporatedherein(“ScheduleofPerformance”).TheIW A,inhisorhersolediscretion,mayauthorizeacceptanceofindividualImprovementstoaccommodatephasingofPROJECTdevelopment;provided,however,thatproduction,storageandtransmissionneedsmustbecompleteandadequateforeachphaseofPROJECTdevelopmentbeforetheyareconsideredforacceptance.InnoinstancewillwaterservicebeprovidebyIW AtothePROJECT,oranypartorphasethereof,withoutcorrespondingsewerservice.IW Awillnotapproveoracceptanyon-siteimprovement,orpermitanyconnectiontotheImprovements,untilallrelatedimprovementshavebeencompletedandacceptedbyIW A.IntheeventgoodcauseexistsasdeterminedbytheIW AEngineer,thetimeforcompletionoftheimprovementshereundermaybeextended.TheextensionshallbemadebywritingexecutedbytheIW AEngineer.AnysuchextensionmaybegrantedwithoutnoticetoDEVELOPER’SSuretyandshallnotaffectthevalidityofthisAgreementorreleasetheSuretyorSuretiesonanysecuritygivenforthisAgreement.TheIW AEngineershallbethesoleand?naljudgeastowhetherornotgoodcausehasbeenshowntoentitleDEVELOPERtoanextension.Delay,otherthandelayinthecommencementofwork,resultingfromanactofIW A,or‘byanactofGod’,whichDEVELOPER,couldnothavereasonableforeseen,orbystormorinclementweatherwhichpreventtheconductingofwork,andwhichwerenotcausedbyorcontributedtobyDEVELOPER,shallconstitutegoodcauseforanextensionoftimeforcompletion.Asaconditionofsuchextension,theIW AEngineermayrequireDEVELOPERtofurnishnewsecurityguaranteeingperformanceofthisAgreementasextendedinanincreasedamountasnecessarytocompensateforanyincreaseinconstructioncostsasdeterminedbytheIW AEngineer..TheDEVELOPERshallkeepitselfinformedofalllocal,StateandFederalLawsandregulationswhichinanymanneraffectthoseemployedbyitorinanywayaffecttheperformanceofitsobligationspursuanttothisAgreement.TheDEVELOPERshallatalltimesobserveandcomplywithallsuchlawsandregulations.TheIW A,anditsof?cersandemployees,shallnotbeliableatlaworinequityoccasionedbyfailureoftheDEVELOPERtocomplywiththissection..PerformancebyDEVELOPERofthisAgreementshallnotbeconstruedtovestDEVELOPER’SrightswithrespecttoanychangeinanycapacityorservicefeeorregulationofIW A. reporotherwiseaffectanyobligationthattheDEVELOPERmayhaveunderanymaprecordedpursuanttotheSubdivisionLawstocompletethedesignandconstructionofanyimprovements,nordoesitalteranyobligationtotheDEVELOPERmayhaveunderanysuchmaptodedicateorotherwisetransferanyrealpropertyorimprovementstoIW Aortoanyotherpublicentity.PerformancebyDEVELOPERofthisAgreementshallnotbe DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
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3l. ngallonorArbitration.Inthe thatsultarbitrationisbrought 26 27
28. 29
30 terAuthorityYourWater.OurResponsibility.
construedtovestDEVELOPER’SrightswithrespecttoanychangeinanycapacityorservicefeeorregulationofIW A.Assignment.ThisAgreementmaynotbeassignedbyDEVELOPERinwholeorinpartwithoutthepriorwrittenconsentoftheIW A.IfassignedbyDEVELOPERpursuanthereto,thisAgreementshallapplyto,bindandinuretothebene?tofthePartiesandtheirrespectivesuccessorsandassigns.NM1iabi'itvm“Of?cialsandEmn'm'eesof“VANoof?cial,representative,agent,attorney,consultantoremployeeofIW AshallpersonallybeliabletotheDEVELOPERintheeventofanydefaultbyIW AunderthetermsofthisAgreement.Notices.AllnoticesrequiredorprovidedforunderthisAgreementshallbeinwritinganddeliveredinpersonorsentbymail,postageprepaidandaddressedasprovidedinthisSection.Noticeshallbeeffectiveonthedateitisdeliveredinperson,or,ifmailed,onthedateofdepositintheUnitedStatesMail.Noticesshallbeaddressedasfollowsunlessawrittenchangeofaddressis?ledwiththeIW A:NoticetoIW AIndioWaterAuthority83-101Avenue45Indio,California92201NoticetoDR.Horton,LosAngelesHoldingCompany,Inc.DEVELOPER:980MontecitoDrive,Suite300Corona,CA92879 Severabili__tv_.TheprovisionsofthisAgreementareseverable.IfanyportionofthisAgreementisheldinvalidbyacourtofcompetentjurisdiction,theremainderoftheAgreementshallremaininfullforceandeffectunlessamendedormodi?edbythemutualconsentoftheparties.Captions.ThecaptionsofthisAgreementareforconvenienceandreferenceonlyandshallnotde?ne,explain,modify,limit,exemplify,oraidintheinterpretation,constructionormeaningofanyprovisionsofthisAgreement.eventor toenforcethetermsofthisAgreement,theprevailingpartyshallbeentitledtolitigationcostsandreasonableattomey’sfees.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
Approval of the water improvement agreement and acceptance of the perfor... Page 239 of 345 Ind'oWa«J.»
GoverningLaw;Venue
NoThirdPamBene?ciaries
IncomorationofRecitals
32. 33.
34. 35
36. 37.
terAuthorityYam-Water.OurResponsibility.
ThisAgreementandanydisputearisinghereundershallbegovernedbyandinterpretedinaccordancewiththelawsoftheStateofCalifornia,withvenueinRiversideCountySuperiorCourt.Amendment.ThisAgreementmaybeamendedormodi?edonlybyawritteninstrumentapprovedandsignedbytheParties..Nopersonorentityshallbedeemedtobeathirdpartybene?ciaryhereofandnothinginthisAgreement(eitherexpressorimplied)isintendedtoconferuponanypersonorentity,otherthanIW AandtheDEVELOPER,anyrights,remedies,obligationsorliabilitiesunderorbyreasonofthisAgreement.Severabilitv.TheprovisionsofthisAgreementareseverable.IfanyportionofthisAgreementisheldinvalidbyacourtofcompetentjurisdiction,andtheintent,rightsandobligationsofthePartieshereunderremainintactwithoutsubstantialchange,theremainderoftheAgreementshallremaininfullforceandeffectunlessamendedormodi?edbythemutualconsentoftheparties..TheRecitalstothisAgreementareherebyincorporatedintothetermsofthisAgreement.EntireAgreement.ThisAgreementconstitutestheentireAgreementofthepartieswithrespecttothesubjectmatter.Allmodi?cations,amendments,orwaiversofthetermsofthisAgreementmustbeinwritingandsignedbytheappropriaterepresentativesoftheparties.InthecaseoftheIW A,theappropriatepartyshallbetheIW AManager. [Signaturescontinuedonnextpage]
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
Approval of the water improvement agreement and acceptance of the perfor... Page 240 of 345 Id‘w324°.»aterAuthorityYourWater.OurResponsibility.
INWITNESSWHEREOF,thisAgreementisexecutedbyIW A,byandthroughitsMayor
DEVELOPERINDIOW ATERAUTHORITY
DR.Horton,LosAngelesHoldingCompany,Inc.NameofOrganizationPresidentofIndioWaterAuthority ACaliforniaCorporationTypeofOrganizationATTEST:
Secretary
NotarizedSignature APPROVEDASTOFORMVickiGullionPrintNameAssistantSecretary GeneralCounselTitle NotarizedSignaturePrintNameTitle
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 Appendix
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OnI beforeme,u no 0 t( insertnameandtitletheofficer)personallyappearedVicKiGulli‘on whoprovedtomeonthebasisofsatisfactoryevidencetobetheperson(s)whosename(s;/is/aresubscribedtothewithininstrumentandacknowledgedtomethathe/she/theyexecutedthesameinhis/her/theirauthorizedcapacity(ies),andthatbyhisiher/theirsignature(s)ontheinstrumenttheperson(sa,ortheentityuponbehalfofwhichthepersoncs’)acted,executedtheinstrument.lcertifyunderPENALTYOFPERJURYunderthelawsoftheStateofCaliforniathattheforegoingparagraphistrueandcorrect. _‘ ARRY ANNDONOVN5WITNESSmyhandandoffICIaIseal A
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Approval of the water improvement agreement and acceptance of the perfor... Page 242 of 345 | '
W‘23:),aterAuthorityYourWater.OurResponsibility.
EXHIBITALEGALDESCRIPTION
TractNo.38072,Lots1through37,asshownbyMaponFileBook500,Pages52through54,inclusive,ofMaps,intheOf?ceoftheCountyRecorderofRiversideCounty,locatedintheCityoflndio,CountyofRiverside,StateofCalifornia,lyingwithinSection36,Township4South,Range7East,SanBernardinoBaseandMeridian.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 Appendix
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Approval of the water improvement agreement and acceptance of the perfor... Page 249 of 345 Ind'oWaterA(($))Youran
uthorityOurResponsibility.
EXHIBITBSCOPEOFWORKFORIMPROVEMENTS
ScopeofworkincludesallPublicpotablewaterinfrastructurerelatedtoTract38072.Waterimprovementplanson?leatIndioWaterAuthority.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 Appendix
Approval of the water improvement agreement and acceptance of the perfor... Page 250 of 345 Ind'0WaterA(($))Youran.uthorityOurResponsibility.
EXHIBITCSCHEDULEOFPERFORMANCE
WorkStartDate:1/1/2026WorkCompletionDate:2/3/2027
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 Appendix
Approval of the water improvement agreement and acceptance of the perfor... Page 251 of 345 Id'w(343»aterAuthorityYourWater.OurResponsibility.
Engineer’sOpinionofProbableCostW ATERIMPROVEMENTSProjectName:Dol?na TractNo.238072ProjectAddress:SEComerofJacksonStreetAvenue49 W ATERIMPROVEMENTSDESCRIPTIONUNITQUANTITYIncludingthefollowingMobilization&DemobilizationConstructionSurveyTraf?cControlNPDES— BMP’sTrenchShoring(forpipes5’ordeeper)TrenchRepairWaterMainFittingHydrantDCDAFireServiceListOtherItemsasApplicableTotalofWaterImprovements:Contingency:(15%ofTotalWaterImprovements)TotalEstimate:PreparedByAddress:MichaelD.Hacker777EastTahquitzCanvonWav.Suite309PalmSprinCA92262 DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019
UNITCOST(LABOR&EQUIPMENT)TOTALCOST
$248,410.00$37,261.50$285,671.50
(Includeseal)
Appendix
Approval of the water improvement agreement and acceptance of the perfor... Page 252 of 345 WaImprovementsCOCOPALMS27LLC
(595.00
RUFES$/&A\/‘(
terAuthorityYourWater.OurResponsibility.
Engineer'sEstimateofConstructionCostsforBondingPurposesTractNo.38072777EastTahqultzCanyonWay.Suite309PalmSprings,Callfomla92262Phone:760.340.9060
8.Demobilization
—BMP's
6"WetBarrelFlreHydrantAssemblywlBlueMarker1'DomesticServicewith3/4"Meter 3/4"Meteron 1"DomesticService
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 ter Page:
$5,000.00$5,000.00$1,500.00$71.00$945.00$3,365.00$725.00$14,950.00$1,595.00$1,595.005 $1$107
$1
AppendixD
ATERIMPROVEMENTS
OTAL
mw¢emuMHSE U1:
DESCRIPTION QUANTITYUNITCOSTSUB
1'rrigationServicewth3/4“Meter
Stakng
3'RIP.CL-350WaleMain3"D..P.Tee8"DIPR.W.G‘V . $1.89$20,190 UtlitiesBondEstimate
Approval of the water improvement agreement and acceptance of the perfor... Page 253 of 345 lnd'oWaterA{5 YourV‘Izwn
TwoHundredElthvFiveThousandSixHundredSeventyOne8-50/100 235.571.50) t'herein’p’rb’??e’ft?éift?i?bb1i?ti0?'???’5eéb?é’ri?ll’ith/bidi’f?hér?i'sé,’?is'?illFeEi? uthorityOurResponsibility.
BondNo.1119161PERFORMANCEBONDKNOWALLPERSONSBYTHESEPRESENTSthat:WHEREAStheIndioWaterAuthority(“PublicAgency”),hasawardedto(“Principal”),DR.Horton,LosAngelesHoldingCompany,Inc,980MontecitoDrive,Suite300,Corona,CA92879(NameandaddressofContractor)acontract(the“Contract”),whichisincorporatedhereinbythisreference,fortheworkdescribedasfollows:WaterImprovementsservingTract38072WHEREAS,PrincipalisrequiredunderthetermsoftheContractto?leagoodandsuf?cientperformancebondwiththePublicAgencyforthefaithfulperformanceoftheContract.NOW,THEREFORE,we,theundersignedPrincipal,andTheHanoverInsuranceCompany,440LINCOLNSTREET.WORCESTER,MA01653(NameandaddressofSurety)(“Surety”)adulyadmittedsuretyinsurerunderthelawsoftheStateofCalifornia,asSurety,areheldand?rmlybounduntothePublicAgencyinthepenalsumofDollars($ (the"PenalSum"),thisamountbeingnotlessthanonehundredpercent(100%)ofthetotalContractprice,inlaw?11moneyoftheUnitedStatesofAmerica,forthepaymentofwhichsumwellandtrulytobemade,webindourselves,ourheirs,executors,administrators,successors,andassigns,jointlyandseverally,?rmlybythesepresents.THECONDITIONOFTHISOBLIGATIONISSUCHTHAT,iftheherebyboundedPrincipal,his,heroritsheirs,executors,administrators,successorsorassigns,shallinallthingsstandtoandabideby,andwellandtrulykeepandperformalltheundertakings,terms,covenants,conditionsandprovisionsintheContractandanyalterationthereofmadeasthereinprovided,onthePrincipal'sparttobekeptandperformed,allwithinthetimeandinthemannerthereinspeci?ed,andinallrespectsaccordingtotheirtrueintentandmeaning,andshallindemnifyandholdharmlessthePublicAgency,itsof?cers,agents,employees,andothersasremaininfullforceandeffect.Incasesuitisbroughtuponthisbond,Suretyfurtheragreestopay,inadditiontothePenalSum,allcostsandreasonableexpensesandfees,includingreasonableattorneys’fees,incurredbythePublicAgencyinsuccess?lllyenforcingsuchobligation,alltobetaxedascostsandincludedinanyjudgmentrendered.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
Approval of the water improvement agreement and acceptance of the perfor... Page 254 of 345 D.R.HortonLnsAngclesHoldingCompany.
terAuthorityYourWater.OurResponsibility.
FURTHER,theSurety,forvaluereceived,herebystipulatesandagreesthatnochange,extensionoftime,alteration,additionormodi?cationtothetermsoftheContract,oroftheworktobeperformedthereunder,orthespeci?cationsforthesame,shallinanywayaffectitsobligationsunderthisbond,anditdoesherebywaivenoticeofanysuchchange,extensionoftime,alteration,additionormodi?cationtothetermsoftheContractortotheworkortothespeci?cationsthereunder.SuretyherebywaivestheprovisionsofCaliforniaCivilCode2845and2849.TheCityistheprincipalbene?ciaryofthisbondandhasallrightsofapartyhereto.INWITNESSWHEREOF,two(2)identicalcounterpartsofthisinstrument,eachofwhichshallforallpurposesbedeemedanoriginalhereof,havebeendulyexecutedbyPrincipalandSurety,onthedatesetforthbelow,thenameofeachcorporatepartybeingheretoaf?xedandthesepresentsdulysignedbyitsundersignedrepresentative(s)pursuanttoauthorityofitsgoverningbody.Dated1/28/26“Principal” “Surety”Inc980MontecitoDrive,Suite300 440LINCOLNCorona,CA92879 WORCESTER.MA01653By: By:(5 (Signature)NoahVi?lliamPierce,Attorney-ln-Fact(Title) (Title) (Seal) (Seal)
Note:Thisbondmustbeexecutedinduplicateanddated,allsignaturesmustbenotarized.andevidenceoftheauthorityofanypersonsigningasattorney-in-factmustbeattached DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD
Approval of the water improvement agreement and acceptance of the perfor... Page 255 of 345 me «lane w..-
]«:va NATAUESORIAI‘ Nanrymuc» Cal?omlaé, Rlvlni?ecnumyig; V
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M26%E”ng iMycamm,wlms:au,1011E
Anotarypublicorotherof?cercompletingthiscerti?cateveri?esonlytheidentityoftheindividualwhosignedthedocument,towhichthiscerti?cateisattached,andnotthetruthfulness,accuracy,orvaliditvofthatdocument.STATEOFCALIFORNIA}_COUNTYOFRIVERSIDE55-OnFebruary2.2026beforeNW”:SofiaaNotaryPublic,personallyappearedVickiGullionwhoprovedtomeonthebasisofsatisfactoryevidencetobetheperson(s)whosename(s)is/aresubscribedtothewithininstrumentandacknowledgedtomethathe/she/theyexecutedthesameinhis?ler/theirauthorizedcapacity(ies)andthatbyhis/her/t-heirsignature(s)ontheinstrumenttheperson(s),ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.IcertifyunderPENALTYOFPERJURYunderthelawsoftheStateofCaliforniathattheforegoingparagraphistrueandcorrect.WITNESSmyhandandofficialseal.
Signature
Approval of the water improvement agreement and acceptance of the perfor... Page 256 of 345 NoahWilliamPierce
STATEOFNorthCarolina
COUNTYOFRowantowit
I,BmanMCaneschi,aNotaryPublicinandfortheStateandCountyaforesaid,doherebycertifythat ,whosenameissignedtotheforegoinginstrumentthisdaypersonally,appearedbeforemeinmysaidStateandCountyaforesaidandacknowledgedthesame.
Givenundermyhandthis 2026.
NotarySealBRY ANMCANESCHINotaryPublic-NorthCarolina .RowanCounty NotaryPublicMyCommissionExpiresApr4,2027 MycommissionexpiresonthedayofApril,2027
Approval of the water improvement agreement and acceptance of the perfor... Page 257 of 345
POWEROFAWORNEV
Maud-en: coupe-y
15mdayatAugustzozabeloremeCameIheabovenamedExecutiveVicePresidentandVicePresidentofTheHanoverinsuranceCompany,HayInsuranceCompanyandCitizensinsuranceCompanyommenoa,tomepersonallyknownIobe[heindlwdualsandof?cersdescribedharem.andacknowledgedthatmeseaisainxedtothepraCedinginstrumentarethecarpomleseatsoiTneHanovertnsumnoeCompany.MassachusettsBayinsuraneeCompanyandCitizensInsuranCeCompanyoiAmericarespectively.andmatthesaidcorporateseatsandtnetrsignaturesasoi?oersweredutyamxedandsub meon-autnorianddtraetinoisaidCorporations
THEHANOVERINSURANCECOMPANYMASSACHUSETTSBAYINSURANCECOMPANYCITIZENSINSURANCECOMPANYOFAMERICA THISPowerofAttorneylimitstheactsofthosenamedherein,andtheyhavenoauthoritytobindtheCompanyexceptinthemannerandtotheextenthereinstated.KNOWALLPERSONSBYTHESEPRESENTS:ThatTHEHANOVERINSURANCECOMPANYandMASSACHUSETTSBAYINSURANCECOMPANY ,bothbeingcorporationsorganizedandexistingunderthelawsoftheStateofNewHampshire,andCITIZENSINSURANCECOMPANYOFAMERICA,acorporationorganizedandexistingunderthelawsoftheStateofMichigan,(hereinafterindividuallyandcollectivelythe“Company“)doesherebyconstituteandappoint,NoahWilliamPierceand/orMariaNegronOfWillisofFloridaInc.ofTampa,FLeachindividually,iftherebemorethanonenamed,asitstrueandlawfulattorney(s)-in-facttosign,execute,seal,acknowledgeanddeliverfor,andonitsbehalf,andasitsactanddeedanyplacewithintheUnitedStates,anyandallsuretybonds,recognizances,undertakings,orothersuretyobligations.Theexecutionofsuchsuretybonds.recognizances,undertakingsorsuretyobligations,inpursuanceofthesepresents,shallbeasbindingupontheCompanyasiftheyhadbeendulysignedbythepresidentandattestedbythesecretaryoftheCompany,intheirownproperpersons.Providedhowever,thatthispowerofattorneylimitstheactsofthosenamedherein;andtheyhavenoauthoritytobindtheCompanyexceptinthemannerstatedandtotheextentofanylimitationstatedbelow:AnysuchobligationsintheUnitedStates,nottoexceedTwentyMillionandNol100($20,000,000)inanysingleinstanceThatthispowerismadeandexecutedpursuanttotheauthorityofthefollowingResolutionspassedbytheBoardofDirectorsofsaidCompany,andsaidResolutionsremaininfullforceandeffect:RESOLVED:ThatthePresidentoranyVicePresident,inconjunctionwithanyVicePresident,beandtheyherebyareauthorizedandempoweredtoappointAttorneys-in-factoftheCompany,initsnameandasitacts,toexecuteandacknowledgeforandonitsbehalfassurety,anyandallbonds,recognizances,contractsofindemnity,waiversofcitationandallotherwritingsobligatoryinthenaturethereof,withpowertoattachtheretothesealoftheCompany.AnysuchwritingssoexecutedbysuchAttorneys-in-factshallbebindingupontheCompanyasiftheyhadbeendulyexecutedandacknowledgedbytheregularlyelectedof?cersoftheCompanyintheirownproperpersons.RESOLVED:ThatanyandallPowersofAttorneyandCerti?edCopiesofsuchPowersofAttorneyandcerti?cationinrespectthereto,grantedandexecutedbythePresidentorVicePresidentinconjunctionwithanyVicePresidentoftheCompany,shallbebindingontheCompanytothesameextentasifallsignaturesthereinweremanuallyaf?xed,eventhoughoneormoreofanysuchsignaturesthereonmaybefacsimile.(AdoptedOctober7,1981— TheHanoverInsuranceCompany;AdoptedApril14,1982— MassachusettsBayInsuranceCompany;AdoptedSeptember7,2001— CitizensInsuranceCompanyofAmericaandaf?rmedbyeachCompanyonMarch24,2014)INWITNESSWHEREOF,THEHANOVERINSURANCECOMPANY ,MASSACHUSETTSBAYINSURANCECOMPANYandCITIZENSINSURANCECOMPANYOFAMERICAhavecausedthesepresentstobesealedwiththeirrespectivecorporateseals,dulyattestedbytwoVicePresidents,this15"IdayofAugust,2023 TheHanoverlnnuranceCompany TheHanoverInsuranceCompanyBuyIncl-nee IcyInc-n«CompanyChina:hurlreCompannyAlnerlen Coup-yofAmerica J H.Km",VluPmldnnt
STATEOFCONNECTICUTCOUNTYOFHARTFORD)ss.OnthisMassachusetts I,theundersignedVicePresidentofTheHanoverInsuranceCompany,MassachusettsBayInsuranceCompanyandCitizensInsuranceCompanyofAmerica,herebycertifythattheaboveandforegoingisafull,trueandcorrectcopyoftheOriginalPowerofAttorneyissuedbysaidCompanies,anddoherebyfurthercertifythatthesaidPowersofAttorneyarestillinforceandeffect.GIVENundermyhandandthesealsofsaidCompanies,atWorcester,Massachusetts,this_28th_dayof_January_2025 Boy
Approval of the water improvement agreement and acceptance of the perfor... Page 258 of 345 Ind0WaterA(($))YourWIler.
lmgrovcmenlsserving
TwoHundredEightyFiveThousandSixHundrEdSeventyOnetl50/100 285.671.50) Contractmrforanyamountrrequired’toi'brdeductedrwithheldrand’paid’nver#0*the uthorityOurResponsibility.
BondNo_1119161PAYMENTBOND(LABORANDMATERIALS)KNOWALLPERSONSBYTHESEPRESENTSthat:WHEREAStheIndioWaterAuthority(“PublicAgency”),hasawardedto(“Principal”),DR.Horton,LosAngelesHoldingCompany,Inc,980MontecitoDri(NameandaddressofContractor)acontract(the“Contract”),whichisincorporatedhereinbythisreference,fortheworkdescribedasfollows:Water Tract38072WHEREAS,PrincipalisrequiredunderthetermsoftheContractandtheCaliforniaCivilCodeto?leagoodandsufficientpaymentbondwiththePublicAgencytosecurethepaymentofclaimsoflaborers,mechanics,materialpersons,andotherpersonsasprovidedbylaw.NOW,THEREFORE,we,theundersignedPrincipal,andTheHanoverInsuranceCompany,440LINCOLNSTREET,WORCESTER,MA01653(NameandaddressofSurety)(“Surety”)adulyadmittedsuretyinsurerunderthelawsoftheStateofCalifornia,asSurety,areheldand?rmlybounduntothePublicAgencyandallsubcontractors,laborers,materialpersons,andotherpersonsemployedintheperformanceoftheContractinthepenalsumofDollars($ (the"PenalSum"),thisamountbeingnotlessthanonehundredpercent(100%)ofthetotalContractprice,inlawfulmoneyoftheUnitedStatesofAmerica,forthepaymentofwhichsumwellandtrulytobemade,webindourselves,ourheirs,executors,administrators,successors,andassigns,jointlyandseverally,?rmlybythesepresents.THECONDITIONOFTHISOBLIGATIONISSUCHTHAT,iftheherebyboundedPrincipal,his,heroritsheirs,executors,administrators,successorsorassigns,orsubcontractorsshallfailtopayanyofthepersonsnamedinSection3181oftheCaliforniaCivilCode,oranyamountsdueundertheUnemploymentInsuranceCodewithrespecttoworkorlaborperformedundertheEmploymentDevelopmentDepartmentfromthewagesofemployeesofthePrincipalandsubcontractorspursuanttoSection13020oftheUnemploymentInsuranceCode,withrespecttoworkorlaborperformedundertheContract,theSuretywillpayforthesameinanamountnotexceedingthePenalSumspeci?edinthisbond;otherwise,thisobligationshallbecomenullandvoid.
DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD ve,Suite300,Corona,CA92879
Approval of the water improvement agreement and acceptance of the perfor... Page 259 of 345 'W
DRHorton.LosAngelesHoldingComgany.
Corona,
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Away NoahWilliamPierce.Attorney-ln-Fact
terAuthorityYourWater.OurResponsibility.
Thisbondshallinuretothebene?tofanyofthepersonsnamedinSection3181oftheCaliforniaCivilCodesoastogivearightofactiontosuchpersonsortheirassignsinanysuitbroughtuponthebond.Incasesuitisbroughtuponthisbond,Suretyfurtheragreestopay,inadditiontothePenalSum,allcostsandreasonableexpensesandfees,includingreasonableattorneys’fees,incurredbythePublicAgencyinsuccessfullyenforcingsuchobligation,alltobetaxedascostsandincludedinanyjudgmentrendered.Further,theSurety,forvaluereceived,herebystipulatesandagreesthatnochange,extensionoftime,alteration,additionormodi?cationtothetermsoftheContract,oroftheworktobeperformedthereunder,orthespeci?cationsforthesame,shallinanywayaffectitsobligationsunderthisbond,anditdoesherebywaivenoticeofanysuchchange,extensionoftime,alteration,addition,ormodi?cationtothetermsoftheContractortotheworkortothespeci?cationsthereunder.SuretyherebywaivestheprovisionsofCaliforniaCivilCode2845and2849.INWITNESSWHEREOF,two(2)identicalcounterpartsofthisinstrument,eachofwhichshallforallpurposesbedeemedanoriginalhereof,havebeendulyexecutedbyPrincipalandSurety,onthedatesetforthbelow,thenameofeachcorporatepartybeingheretoaf?xedandthesepresentsdulysignedbyitsundersignedrepresentative(s)pursuanttoauthorityofitsgoverningbody.Dated:1/28/26“Principal”Inc980MontecitoDrive,Suite300CA92879 WORCESTER.MA01653By (Signature)(Title) (Title) (Seal) (Seal)
Note:Thisbondmustbeexecutedinduplicateanddated,allsignaturesmustbenotarized,andevidenceoftheauthorityofanypersonsigningasattorney-infactmustbeattached DevelopmentServicesProceduralGuidelines,UpdatedSeptember2019 AppendixD “Surety3,
Approval of the water improvement agreement and acceptance of the perfor... Page 260 of 345 .....,.mdie.....
Anotarypublicorotherof?cercompletingthiscerti?cateveri?esonlytheidentityoftheindividualwhosignedthedocument,towhichthiscerti?cateisattached,andnotthetruth?llness,accuracy,orvalidityofthatdocument.STATEOFCALIFORNIA}COUNTYOFRIVERSIDE33OnFebrualv2.2026before9minaNotaryPublic,personallyappearedVickiGullionwhoprovedtomeonthebasisofsatisfactoryevidencetobetheperson(s)whosename(s)is/aresubscribedtothewithininstrumentandacknowledgedtomethathe/she/theyexecutedthesameinh-is/her/theirauthorizedcapacity(ies)andthatbyhis?ier/theirsignature(s)ontheinstrumenttheperson(s),ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.IcertifyunderPENALTYOFPERJURYunderthelawsoftheStateofCaliforniathattheforegoingparagraphistrueandcorrect. ' NATWITNESSmyhandandof?c1alseal. NotaryPctiii§%:'£forniaRiversideCountyCommissionII2463061. Comm.ExpiresSep12,2027Slgnature
Approval of the water improvement agreement and acceptance of the perfor... Page 261 of 345 NoahWilliamPierce
Givenundermyhandthis73'“dayofSuww‘x,20g.
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STATEOFNorthCarolina
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l,BmanMCaneschi,aNotaryPublicinandfortheStateandCountyaforesaid,doherebycertifythat ,whosenameissignedtotheforegoinginstrumentthisdaypersonally,appearedbeforemeinmysaidStateandCountyaforesaidandacknowledgedthesame.
NotarySealBRY ANMCANESCHINotaryPublic-NorthCarolina.RowanCounty NotaryPublicMyCommisstonExpiresApr4,2027 MycommissionexpiresonthedayofApril,2027
Approval of the water improvement agreement and acceptance of the perfor... Page 262 of 345 - (II-puny:
On[his15‘“dayofAugust2023beforemecame[heabovenamedExecuuvewasPresidentandVICEPresmsnl0'TheHanoverInsuranceCompany,MassaenusenaBayInsuranceCompanyandCilizerlsInsuranceCompanyolAmarlca.tomepersonallyknown(abemeInrllvulualsandof?cersdescribedherein.andacknowledgedthatthesealsamxedlalneplacedlnginslrurnenrareInacorporalesealsplTneHanoverInsuranceCampany.MassachusettsBayInsuranceCompanyandllzensInsuranceCompanyalAmericarespeclively.andlhakmesaidcarparalesealsanrlmeirsignaluresasclllcersweredulyallixedand.n.uloriaddirecllpnI saidCorporations THEHANOVERINSURANCECOMPANYMASSACHUSETTSBAYINSURANCECOMPANYCITIZENSINSURANCECOMPANYOFAMERICAPOWEROFATTORNEYTHISPowerofAttorneylimitstheactsofthosenamedherein,andtheyhavenoauthoritytobindtheCompanyexceptinthemannerandtotheextenthereinstated.KNOWALLPERSONSBYTHESEPRESENTS:ThatTHEHANOVERINSURANCECOMPANYandMASSACHUSETTSBAYINSURANCECOMPANY ,bothbeingcorporationsorganizedandexistingunderthelawsoftheStateofNewHampshire,andCITIZENSINSURANCECOMPANYOFAMERICA,acorporationorganizedandexistingunderthelawsoftheStateofMichigan,(hereinafterindividuallyandcollectivelythe“Company”)doesherebyconstituteandappoint,NoahWilliamPierceand/orMariaNegron0fWillisofFloridaInc.ofTampa,FLeachindividually,iftherebemorethanonenamed,asitstrueandlawfulattorney(s)-in-facttosign,execute,seal,acknowledgeanddeliverfor,andonitsbehalf,andasitsactanddeedanyplacewithintheUnitedStates,anyandallsuretybonds,recognizances,undertakings,orothersuretyobligations.Theexecutionofsuchsuretybonds,recognizances,undertakingsorsuretyobligations,inpursuanceofthesepresents,shallbeasbindingupontheCompanyasiftheyhadbeendulysignedbythepresidentandattestedbythesecretaryoftheCompany,intheirownproperpersons.Providedhowever,thatthispowerofattorneylimitstheactsofthosenamedherein;andtheyhavenoauthoritytobindtheCompanyexceptinthemannerstatedandtotheextentofanylimitationstatedbelow:AnysuchobligationsintheUnitedStates,nottoexceedTwentyMillionandNoI100($20,000,000)inanysingleinstanceThatthispowerismadeandexecutedpursuanttotheauthorityofthefollowingResolutionspassedbytheBoardofDirectorsofsaidCompany,andsaidResolutionsremaininfullforceandeffect:RESOLVED:ThatthePresidentoranyVicePresident,inconjunctionwithanyVicePresident,beandtheyherebyareauthorizedandempoweredtoappointAttorneys-in-factoftheCompany,initsnameandasitacts,toexecuteandacknowledgeforandonitsbehalfassurety,anyandallbonds.recognizances,contractsofindemnity,waiversofcitationandallotherwritingsobligatoryinthenaturethereof.withpowertoattachtheretothesealoftheCompany.AnysuchwritingssoexecutedbysuchAttorneys-in-factshallbebindingupontheCompanyasiftheyhadbeendulyexecutedandacknowledgedbytheregularlyelectedof?cersoftheCompanyintheirownproperpersons.RESOLVED:ThatanyandallPowersofAttorneyandCerti?edCopiesofsuchPowersofAttorneyandcerti?cationinrespectthereto,grantedandexecutedbythePresidentorVicePresidentinconjunctionwithanyVicePresidentoftheCompany,shallbebindingontheCompanytothesameextentasifallsignaturesthereinweremanuallyaf?xed,eventhoughoneormoreofanysuchsignaturesthereonmaybefacsimile.(AdoptedOctober7,1981— TheHanoverInsuranceCompany;AdoptedApril14,1982— MassachusettsBayInsuranceCompany;AdoptedSeptember7,2001—CitizensInsuranceCompanyofAmericaandaf?rmedbyeachCompanyonMarch24,2014)INWITNESSWHEREOF,THEHANOVERINSURANCECOMPANY ,MASSACHUSETTSBAYINSURANCECOMPANYandCITIZENSINSURANCECOMPANYOFAMERICAhavecausedthesepresentstobesealedwiththeirrespectivecorporateseals.dulyattestedbytwoVicePresidents.this15“IdayofAugust,2023 .l
TheHome:InsuranceCompany TheHanoverInsuranceCompanyMunch-omBoybun-eaCoupe-y layInc-ramCompanyChina:hamto {America Co-plyofAmerica J H.Kowlocki.VinMutant
STATEOFCONNECTICUTCOUNTYOFHARTFORD)ss.
I,theundersignedVicePresidentofTheHanoverInsuranceCompany,MassachusettsBayInsuranceCompanyandCitizensInsuranceCompanyofAmerica,herebycertifythattheaboveandforegoingisafull,trueandcorrectcopyoftheOriginalPowerofAttorneyissuedbysaidCompanies,anddoherebyfurthercertifythatthesaidPowersofAttorneyarestillinforceandeffect.GIVENundermyhandandthesealsofsaidCompanies,atWorcester,Massachusetts,this_28th_dayof_January_2025TheIII!CERTIFIEDCOPY Rudder.VlccPruldelt
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COUNCIL MEETING DATE
June 03, 2026
Angeles Holding C o. INC.
Approval of the water improvement agreement and acceptance of the perfor... Page 264 of 345 City of Indio
City Council
June 3, 2026
STAFF REPORT
To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Brian Halvorson, Dir. Of Community Development Subject: Commission Planning 1834, Ordinance No. Reading Second of recommendations for the City Council to adopt three ordinances updating the Subdivision regulations of the Indio Unified Development Code (PLAN- ZMA-25-0003), consisting of: (1) an ordinance repealing and replacing article 5 (subdivision regulations and residential condominium conversions); (2) an ordinance repealing and replacing article 6 (administration and procedures); and (3) an ordinance adding chapter 4.28 (two-unit developments).
RECOMMENDATION:
Staff recommends that the City Council approves Second reading of Ordinance No. 1834, Planning Commission three the updating ordinances adopt City Council the for recommendations to Subdivision regulations of the Indio Unified Development Code (PLAN-ZMA-25-0003), consisting of:
(1) and regulations (subdivision 5 article and repealing ordinance an residential replacing condominium conversions); (2) an ordinance repealing and replacing article 6 (administration and procedures); and (3) an ordinance adding chapter 4.28 (two-unit developments).
ATTACHMENTS:
Ordinance 1834 (2nd rdg) Council Subdivision Ordinance
AGENDA ITEM #9.12
Second Reading of Ordinance No. 1834 , Planning Commission recommendatio... Page 265 of 345 ORDINANCE NO. 1834
ORDINANCE INDIO, OF CITY THE AN COUNCIL CITY THE OF OF
CALIFORNIA, AMENDING THE INDIO UNIFIED DEVELOPMENT CODE (PLAN- ZMA-25-0003) BY REPEALING AND REPLACING ARTICLE 5, “SUBDIVISION REGULATIONS AND RESIDENTIAL CONDOMINIUM CONVERSIONS,”
AND 6, “ADMINISTRATION REPLACING AND REPEALING ARTICLE
PROCEDURES,” AND ADDING CHAPTER 4.28, “TWO-UNIT DEVELOPMENTS” WHEREASduly corporation municipal is a Indio of City , (“City”) the organized and existing under the Constitution and laws of the State of California; and
WHEREAS, the City Council has adopted the Indio Unified Development Indio establishes and Code Municipal in codified is which (“UDC”), Code the regulations governing land use, development standards, subdivision procedures, permit administration, and related development review procedures within the City; and
WHEREAS, the City has prepared this Ordinance to amend the UDC to update, reorganize, and modernize the City’s subdivision regulations, administrative procedures, and state-mandated housing implementation provisions, and to better align the UDC with applicable state law, the City’s General Plan, and current City procedures; and
WHEREAS, the Indio 2040 General Plan Land Use and Urban Design Element includes implementation programs calling for updates to the City’s subdivision ordinance and related development regulations to implement the General Plan’s land use and urban design vision, policies, and programs; and WHEREAS, Article 5 of the UDC, “Subdivision Regulations and Residential Condominium the supplement and intended to is Conversions,” implement California Subdivision Map Act, Government Code section 66410 et seq., by maps related and subdivision procedures standards and local establishing for subdivision actions, including tentative maps, parcel maps, final maps, vesting tentative maps, dedications, lot line adjustments, mergers, reversions to acreage, urban lot splits, and residential condominium conversions; and WHEREAS, Article 6 of the UDC, “Administration and Procedures,” is intended to update and clarify the City’s administrative procedures, review authority provisions, permit processing requirements, noticing and hearing procedures, appeals, modifications, enforcement-related procedures, and other implementation provisions applicable to land use and development approvals under the UDC; and
WHEREAS, Chapter 4.28 of the UDC, “Two-Unit Developments,” is intended to establish objective zoning standards and ministerial review procedures for
Second Reading of Ordinance No. 1834 , Planning Commission recommendatio... Page 266 of 345 qualifying two-unit developments in single-family residential zones, consistent with Government Code section 65852.21 and other applicable state law; and WHEREAS, the Planning Commission held a duly noticed public hearing on 22, 2026, to consider the proposed UDC amendments set forth in this April Ordinance, at which time all interested persons had the opportunity to appear, be heard, and present evidence; and
WHEREAS, the Planning Commission reviewed and considered the staff report, the proposed ordinance, all documents incorporated therein or referred to therein, all written and oral testimony presented at the public hearing, and the entire administrative record relating to this Ordinance; and WHEREAS, following the public hearing, the Planning Commission adopted the Resolution included with the staff report recommending that the City Council adopt this Ordinance; and
WHEREAS, the City Council held a duly noticed public hearing on May 20, 2026, to consider this Ordinance, at which time all interested persons had the opportunity to appear, be heard, and present evidence; and WHEREAS, the City Council has reviewed and considered the staff report, the Planning Commission recommendation, the proposed ordinance, all documents incorporated therein or referred to therein, all written and oral testimony presented at the public hearing, and the entire administrative record relating to this Ordinance; and
WHEREAS, the City Council finds that this Ordinance is consistent with the goals, policies, and implementation programs of the Indio 2040 General Plan because it promotes orderly development, clear and consistent land use administration, infrastructure planning, subdivision regulation, housing implementation, and implementation of state-mandated development review procedures; and
WHEREAS, the City Council finds that this Ordinance promotes the public health, safety, and welfare by providing clear, updated, internally consistent, and legally compliant regulations governing subdivision activity, development review procedures, and state-mandated housing implementation measures; and WHEREAS, the City Council has authority under the California Constitution, the City’s police power, the Planning and Zoning Law, the Subdivision Map Act, and other applicable law to adopt regulations to protect and promote the public health, safety, and welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals and Findings.