RESOLUTION NO

03 2001

RESOLUTION OF THE INDIO WATER AUTHORITY OF THE CITY OF

INDIO
WATER

CALIFORNIA
SYSTEM

AUTHORIZING AND

THE

EXECUTION OTHER

OF

THE

LEASE

CERTAIN

MATTERS

PERTAINING THERETO

WHEREAS as of April 19 2000 the City of Indio the City and the Redevelopment Agency of the City of Indio formed the Indio Water Authority the Authority as a joint powers authority pursuant to the terms and conditions of that certain Joint Exercise of Powers Agreement and s water system May 21 2001 the City resolved to lease the City the to the terms and conditions of that to Authority pursuant the System certain Lease Agreement the Lease by and between the City and the Authority which provides among other things that the Authority would lease the Water System operate the Water System make annual rental payments to the City and provide water WHEREAS
on

Water

service to customers within the the

s service City

area and

WHEREAS

Authority

has determined that it is in the best interests of the from the

Authority

to lease the Water

System

City

and

WHEREAS the Authority with the aid Lease and the Authority wishes to approve the

of its

staff

has reviewed the

Lease and matters related

proposed thereto and

WHEREAS the Authority with the aid of its staff has Reimbursement Agreement the Reimbursement Agreement and between the Authority and the City and the Authority Reimbursement Agreement and matters related thereto and

reviewed the dated

proposed
2001

May 21

by

wishes to approve the

WHEREAS the Authority with the aid of its staff has reviewed the proposed Employee Lease Agreement the Employee Lease dated May 21 2001 by and between the Authority and the Gity and the Authority wishes to approve the Employee Lease and matters related thereto NOW THEREFORE
THE INDIO WATER AUTHORITY COMMISSION DOES

HEREBY RESOLVE AS FOLLOWS Section 1

Incorporation
an

of

Recitals

The

Recitals

set

forth

above

are

incorporated

herein and made

operative part

of this Resolution

Section 2 the Water

same

Approval of
from the

the Lease

System
as

City
and
an

The Authority hereby approves the lease of and the execution of the Lease in substantially the

form

Exhibit A attached hereto and

incorporated
the

herein

by reference

with

such

any of his

revisions amendments designees each

completions

as

s Executive Authority

Director and

Authorized

Officer

with the advice of counsel to the

approve which approval shall be conclusively evidenced by the execution and delivery of the Lease by an Authorized Officer The terms and conditions

Authority

shall

of the Lease shall be Section 3

as

provided

in said

Lease

as

finally

executed The

Approval

of the Reimbursement

Agreement

Authority hereby

approves the execution of the Reimbursement Agreement in substantially the same form as Exhibit B attached hereto and incorporated herein by reference with such

revisions

amendments

and

completions

as

an

Authorized

Officer

with the advice of

counsel to the

by

the

Authority shall approve which approval shall be conclusively evidenced execution and delivery of the Reimbursement Agreement by an Authorized
The terms in said and conditions
as

Officer

of the

Reimbursement

Agreement

shall

be

as

provided

agreement Approval

finally

executed

Employee Lease The Authority hereby approves the Employee substantially the same form as Exhibit C attached hereto and incorporated herein by reference with such revisions amendments and completions as an Authorized Officer with the advice of counsel to the Authority shall approve which approval shall be conclusively evidenced by the execution and delivery The terms and conditions of the of the Employee Lease by an Authorized Officer
Section 4 execution of the Lease in

of the

Employee

Lease shall be

as

provided

in said

agreement

as

finally

executed

Section 5

Additional Actions

Any

one

of the Authorized

Officers

and each of

them is hereby authorized and directed jointly and severally to do any and all things and to execute and deliver any and all documents which he or she deems necessary or advisable in order to consummate the agreements described herein and otherwise to
effectuate the purposes of this Resolution and the transactions Section 6 passage and Effective Date

contemplated hereby

This Resolution shall take effect from and after its

approval
APPROVED AND ADOPTED this

PASSED

21St day

of

May 2001 by

the

following

vote

AYES

Baughn Friestad Hunt Bethel Lopez Fesmire

Harmon

Wilso

Godfrey

NOES None ABSENT

BEN

VI Y GODFR

IDENT PRE

ATTEST

THIA HERNANDEZ CRETARY

STATE OF CALIFORNIA COUNTY OF R11lERSIDE CITY OF IND1O

ss

Cynthia Hernandez Secretary of the Authority

true and

do

hereby certify

the

foregoing

to be

full

Authority

correct copy of Resolution No 2001 03 adopted by the Commission at a regular meeting on the 21St day of May 2001

Indio Water

r
f

ithia

Hernandez

Secretar

of the

Indio Water

Authority

EXHIBIT A RESOLUTION NO 2001 03

LEASE

EA I SE THIS LEASE dated

the Lease

thi day of

Date

is made

CITY C F INDIO

individually

as

by the City the City and the Authority a Party and collectively as the Parties

and between the INDIO WATER AUTH

the Execution TY the Authority and the

2001
are

sometimes hereinafter with respect to the

referred to

following facts

RECITALS

public body corporate and politic organized and existing pursuant to the laws of the State of California Pursuant thereto the City is authorized to provide water service to all real property depicted on Exhibit A attached hereto and incorporated herein by reference the System Boundaries
a

The

City

is

The

Authority

is

joint

powers

authority

formed under Sections 6500 et

sec

of

the California Government Code

City desires to lease to the Authority and the Authority desires to lease from City substantially all of the assets of the City used or useful in the provision of water service within the System Boundaries
the

The

NOW THEREFORE in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged the Parties agree as follows
ARTICLE 1 TERM 1 Term This Lease shall
commence

Commencement Date

and end at midnight

earlier terminated pursuant to the terms such termination Expiration Date

Tiny 1 2001 thirty 30 years thereafter unless this Lease is hereof in which event this Lease shall end on the date
on

at 59 11 m p

of

ARTICLE 2
RENTAL PAYIVIENTS 1 2 Annual Rent

of the
more

a Except as otherwise provided herein to compensate the City for the lease System as defined below to the Authority the Authority shall pay to the City rent as
is estimated to

pay

1 The rent the Authority currently particularly set forth in this Section 2 the City during each year of the term is set forth below as follows 2001 2002 2003

10 000 000 500 000 515

1

201 d 2017 2018

755 000 000 1 000 030 1 000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

530 000 000 546 000 562 000 579 000 596 000 614 000 632 000 651 000 671 000 691 000 712
000 733

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

000 0 1 61 093 1 000 126 1 000 160 1 000 195 1 000 231 1 000 268 1 000 306 1 000 345 1 000 385 1 000 427 1 000 470 1 000

The parties acknowledge and agree that Pinnacle One currently is updating the study establishing the fair rental value of the System Accordingly once such update has been completed and the fair rental value of the System has been finally determined the City and the Authority shall execute a supplement to this Lease so stating and specifying the rent the Authority shall pay the City during each year of the term

6 and

days beginning July 1 2002

the term

precedent set forth in Articles the lease payment for the first 1st year shall be payable all in advance within ten 10 after the Execution Date Lease payments thereafter shall be paid in advance monthly 7
and

Subject

to the satisfaction of the conditions

day of each consecutive month thereafter if during Notwithstanding foregoing the first lease payment due hereunder can not be timely made because the Authority has not completed the sale of lease revenue bonds then such first lease payment shall be made upon the Authority s completion of the sale of such bonds
the and

continuing on the

first

thereafter

lease payments shall be made

monthly

as

aforesaid payments
on

Lease shall be the

c solely

The

s obligation Authority
a

to make any

to the

from the Rates and debt

or a

Charges as
lien
or

defined

herein

received

hereunder and shall not be

City under this by the Authority

or

charge

encumbrance

the property

income of

Authority d

The City acknowledges and agrees that all payments due to the City under j l L be pdya a si iuoruuiate oasis uriess oone Authority 1 ne any InueU term Indebtedness shall include without limitation bonds notes all other evidence of
4
n

Lease
n

L a

1 17

l T

indebtedness requirements
2 under this
at ten

and all other

obligations instruments

and agreements pursuant to any

law to finance the

lease construction of improvements to the System or liability or other insurance needs of the System

provision working capital

of

Delinquent Payments

Lease percent 10 per annum from the date due until received by the City The Authority also shall pay to the City a fee in the amount of one of the overdue amount to percent 1 the for the administrative costs incurred as a compensate City result of the Authority sfailure to pay on time if such overdue amount is not received by the City within fifteen 15 days after the
same

All lease payments payable by the Authority to the City if not received within thirty 30 days after the same is due slZall bear interest

is due

3 2

Rates and Charges

concurrently with the execution of the Lease the Authority commodity rates and charges Rates and Charges which the Authority shall charge water users within the System Boundaries The Rates and Charges are forth on Exhibit B attached hereto and by this reference incorporated herein a
or

Prior to

shall establish service and

set

Authority may impose any additional increase in the Rates and Charges which the Authority reasonably believes is necessary to pay the reasonable costs of operating and maintaining the System including without limitation the following b i
are

The

water

replenishment

fees and assessments and related costs which

by
the

any and all

required by laws Authority

owners or

operators of real property within the System Boundaries as required ordinances orders rules and regulations municipal state or federal board

or

ii iii Paragraph 13 2 iv v

the cost of purchased water and power the cost of paving

or

excavation

as

more

particularly

set forth in

the

cost

of insurance

as

more

particularly

set

forth in Article

15

fees taxes assessments license and permit fees and other similar fees and charges required to be paid by the Authority to the City or any other governmental agency in connection with the operation of the Water System including without limitation costs related to the National Pollutant Discharge Elimination System costs related to changes in laws as more particularly set forth in Paragraph 17 1 and costs related to changes in water quality as more particularly set forth in Paragraph 17 2 vi capital improvements as
maintenance
more or

repairs as more particularly

set

set forth in Article 1

or

particularly

forth in Article

19

to the

System

and

overhead incurred 4 2 of the

reimbursement to the Authority for the vii by Authority in connection with the System the

actual costs and direct

Jse Tax The Y Sales

to the

City shall

pay all sales and

use

taxes

arising

out of the lease

System if any

Authority
ARTICLE 3 DESCRIPTION OF TIE SYSTE1Vi

1 3

Description

of the S s tem

City

leases to the

Authority

Subject to the terms and conditions of this Lease The the term of the Lease as extended and the Authority leases during

properties and business of the City of every kind whether tangible intangible real personal or mixed wherever located used in connection with the City s water system and delivery of water to its customers or the customers potential except property

from the

City all

of the assets

described in

Paragraph

2 below of this 3

Lease collectively

referred to

as

the

including

but without limitation to the

System

following

described assets

All water

rights

of the

and interest in and to water

by

virtue of any contractual

City including without limitation rights Water Rights

any

right

title

Certain real property located in or around the City of Indio b County of Riverside California and more particularly described and or depicted on Exhibit C attached hereto and by this reference incorporated herein Real Property Certain water wells and well site c s located on the Real Property Legally described and or depicted on Exhibit D attached hereto and by this reference incorporated herein the Wells Certain water tanks pumping and appurtenant facilities d legally described on Exhibit E attached hereto and by this reference incorporated herein depicted the Facilities

andlor

The water system Water System owned and operated by the City Property Wells and Facilities including but not limited to transmission and distribution mains fire hydrants lateral services meters and meter and

exclusive of the Real

boxes

equipment

or

installations

appurtenant

i County
on

California

related easements including easements of record in Riverside Water Easements in connection with its business of supplying water described

Exhibit F attached hereto and

by

this reference

incorporated

herein

All records and maps of the City relating to tl g e operation or ownership of System including without limitation customer accounts reventae records credit records loan records billing records accounts payable operating and building records plans maps correspondence meter log books surveying data permits and licenses engineering and title reports collectively Records Notwithstanding the transfer of the Records to the Authority all such Records will be kept at the City address set forth in 1 below The City Paragraph 24 will during the City business hours and as often as the Authority may request permit authorized representatives designated by the Authority to i have access to Records ii make copies of or excerpts from such Records at the Authority sexpense and iii discuss such Records with of the representatives City the The City h s interest in various contracts and agreements permits franchises licenses in connection with the System A list of said contracts agreements permits franchises and licenses collectively the Contracts is attached hereto as Exhibit G and by and this reference

incorporated
i

herein

Customer

s list

of those to whom the

identified

City currently supplies

water

as

on

computer media compatible with the

with the execution of the Lease and Commencement Date the Water

concurrently

updated

scomputer system and Authority seven 7 days prior to the

delivered

Accounts

tangible personal property owned or operated by the City and used substantially in the ownership and operation of the System including without limitation all machinery equipment and tools including without limitation those items identified on Exhibit I attached hereto and by this reference incorporated herein Personal Property k
All of the
or

All

s rights City

in and to cash

on

hand in the water

enterprise fund
or

accounts receivable owed

owing

to the water

enterprise fund

similar fund under any oral or written agreements held or ownership and operation of the System collectively the Deposits

and any deposits or any like received in connection with the

1 collectively
the

The

City

Water Customer Service material

telephone

number

6550 760 342

account histories and any

promotional Intangible Property

All cash
on

relating

to the

provision

of water service

rn
Commencement Date

favor of and accounts receivable

with cash equivalents for promissory notes owing to the City s water enterprise fund as of the

hand

made in

Assumption of Liabilities The Authority agrees to assume only those contracts and obligations of the City which are listed on Exhibit G It is expressly understood and agreed that the Authority shall not be liable for any other debts obligations or liabilities of the City of any kind or nature other than those specifically assumed by the Authority in this Lease Ownership Rights The Authority does not by virtue of this Lease obtain any ownership rights in the System Moreover the Parties acknowledge and agree that the rights of all persons or entities extracting pumping or otherwise diverting water from the groundwater s underlying the System Boundaries currently are not adjudicated Accordingly should a basin physical solution declaration of water rights or a formula for allocation of water rights and obligations ever become necessary through litigation or otherwise the Parties acknowledge and agree that the extraction pumping or production history resulting from the Authority s providing water service within the System Boundaries or within any other area that hereafter becomes part of the System Boundaries by annexation into the City or otherwise pursuant to this Lease shall inure solely to the benefit of the City for the purpose of determining the City s relative annual to withdraw froze such water right s Nothing herein shall change any existing agreement basin with respect to service of customers inside or outside the System Boundaries
3

2 3

ARTICLE 4 WATER SERVICE 1 4 The Authority to Provide Water Service On the Commencement Date the shall assume the obligation of providing water service to the persons or entities whose the

Authority
names

list of current Water Accounts as well as any other water users and land owners System Boundaries as may presently or in the future request water service from the Authority The Authority shall adopt and enforce the City s rules regulations ordinances and policies with respect to the service of water as existing at the Execution Date The Authority
are on

within the

may amend such rules regulations ordinances and written consent of the City

policies

from time to

time

without the

prior

a
to
serve

water within the

same

During the term of the Lease no other person or entity shall have the right System Boundaries except that the City may continue to sell bottled
as

water to the

extent and scope

exists

on

the execution of this Lease the

water within or authorize any third party to serve water within its boundaries may continue to sell bottled water to the same extent and scope as exist on the execution of this Lease
serve

b without the System except that the City

During

the term of the

or

Lease

City

shall not

Boundaries

c
third party to file within the 2 4
a

During the term petition or support

of the
a

Lease the City shall not file a petition cause any petition which would allow a third party to serve water

System

Boundaries

Notification to Customers At least fifteen and the

1 S days prior

to the Commencement

Date

the

City

Authority

at

the

s Authority

cost

those persons or entities listed whose names are on Authority shall provide water to such persons or entities

and expense shall in writing notify the list of current Water Accounts that the

as of the Commencement Date Further the term of the Lease as extended the City shall direct all other potential water users and land owners within the System Boundaries to the Authority for water service The City as a condition precedent to the ser ice of water to its customers required such customers to complete

during

applications
On the
or

account

cards and or like

before the Commencement

for the

Authority use and s assignment the City shall

collectively Customer Cards Date the City shall assign the Customer Cards to the Authority benefit during the term of this Lease as extended In furtherance of
or

similar documents

deliver Customer Cards to the

Authority
Lease

before the

t r e Comrz dcerner Date Or the all

outstanding
3 4

Customer Cards to the he City I

as

expiration City

or

termination of the

the

Authority

shall

assign

for the

s City

use

and benefit

Water User

Any

service connection

the City

Service

where the

City

is the customer shall be

Connection
Charges

charged

the amount described in the Rates and

4 Service to Fire Departments The Authority shall continue to honor all existing oral contracts and other arrangements regarding all fire departments use of fire hydrant water and fire hydrant access within the System Boundaries A list of the oral contracts and or other arrangements herein
are

set forth

on

Exhibit I attached hereto and

by

this reference

incorporated

ARTICLE CUSTOMER SERVICE AT THE CITY HALL IN INDIC

Options to Provide Customer Service The Parties hereto desire to afford the Authority opportunity to provide customer service at a location owned or operated by the City The term Customer Service shall include but not be limited to handling customer offs of service new service requests customer requests and such other payments turn ons functions as shall be deemed necessary or reasonable by the Authority in its discretion The Authority and the City will each give a cooperative effort to maximize Customer Service to the s Customers City
the 2 5 Center
at

1 5

Location of Customer Service The Hall of the

Authority

shall

City Civic Center

3 5

the

City

located at 100 Civic Center

provide a Customer Service Mall Indio California 92201

agrees to provide the Authority with a space for a drop box at no additional cost and expense to the Authority adjacent to Indio City Hall at such location as the City and the Authority mutually shall agree The Authority shall install the drop

Drop

Box The

City hereby

box at its sole cost and expense The purpose of the drop box location is to allow customers to make payments for water service The drop box shall allow customers to insert payment into such box from the driver s side of an automobile truck or other vehicle The City agrees that those customers temporarily using the drop box space less than five 5 minutes shall not be in violation of any parking or other like or similar laws The Authority shall have the right to discontinue the use of the drop box after discussion and consultation with the City by giving box sixty 60 days prior written notice of its election to discontinue use of the

drop

4 S Emergency Telephone Numbers The Parties acknowledge that the City Water Customer Service emergency number is routed to the City Police Department The City shall continue to take such emergency calls ARTICLE 6 CONDITIONS PRECEDENT TO THE AUTHORITY SPERFORMANCE 1 6 Satisfaction of Conditions The Authority s obligation to lease the System is to the satisfaction or waiver by the Authority of all the conditions set forth below within

subject the applicable time periods specified If any of these conditions are not satisfied within the applicable time period if any the Authority may terminate this Lease as set forth below or may waive in writing any or all of the conditions
2 6

Deposited

Documents The

all documents and instruments to the 3 6

City shall have signed acknowledged Authority as required in this Lease

and delivered

Validity of Representations and Warranties All representations and warranties

in this Lease shall be true and correct in all material respects
on

by

the

City

the Commencement

Date

as

if made at that time

4 6

in this Lease to be

Performance of Covenants All of the agreements of the City which are required performed at or prior to the Executian Date shall have been performed ARTICLE 7

CONDITIONS PRECEDENT TO THE CITY S PERFORMANCE 1 7 time Satisfaction of Conditions The

or

s obligation City
set
are

to transfer the

to the satisfaction

waiver by

the

City

of all conditions

forth below within the

System is subject applicable

time any in

periods specified period if any the City

or

If any of these conditions may terminate this Lease

not satisfied within the

applicable

as

set forth

below

or

may

waive

writing

all ofthe conditions 2 7

Deposited

Documents The

delivered all documents and instruments to the 3 7 ValiditoYf

Authority shall have signed acknowledged City as required in this Lease representations

and

Representations

and Warranties All

and warranties
on

by the

in this Lease shall be true and correct in all material respects Commencement Date as if made at that time

Authority

the

4 7

Performance of Covenants All of the Lease

to

agreements

of the

Authority

which

are

required in this performed

be

performed

at

or

prior

to the Execution Date shall have been

ARTICLE EXECUTION OF LEASE 1 S Execution Date Place The Parties hereto shall execute this Lease of the

as

Execution Date 2 8 Deliveries by The City As of the Execution the shall deliver to the

Date

City

Authority
An executed and acknowledged Memorandum of Lease in a substantially the form and content of Exhibit J attached hereto and incorporated herein by reference

b c

The A

originals

of the documents set forth

on

Exhibit of Contracts

substantially

executed and acknowledged in the form of Exhibit L attached hereto and

properly

Assignment

incorporated

herein

by

reference

d
set forth
on

A bill of sale

assignment

ar

other evidence of transfer of those vehicles

Exhibit M

City

if

e appropriate

Any
as

additional

may be necessary to

instruments signed and properly acknowledged by comply with this Lease

the

ARTICLE 9 TIIE CIT S REPRESENTATIONS WARRANTIES AND COVEI A1l1TS The City represents warrants and covenants and Commencement Date the following 1 9
as

true and correct

as

of the Execution Date

anizatuon The City is Or

public body corporate

and

politic

and

existing in

good standing
2 9

under the laws of California the

into

and

Capacity The City has perform its obligations under

Authorization The authorized

right power this Lease

legal capacity

and

authority

to enter

execution delivery and performance of this Lease a have duly by the City b will not violate or contravene i any provision of applicable law ii any order of any court or other agency of government or 111 any agreement or other instrument to which the City is a party or by which it is bound or be a breach of or constitute with or without notice or lapse of time or both a default under any such agreements or other instrumerlts and c will not result in the creation or imposition of any lien charge or encumbrance of any nature whatsoever upon the System
been
or

3 9

shall be

4 9 and shall enforceable

Val iaity This Lease and all documents required

when executed and
a

be delivered legal against it in accordance with their terms subject to the effect of bankruptcy insolvency reorganization arrangement moratorium or other similar laws relating to or affecting the rights of creditors generally and of general principles of equity
valid and 5 9 and

by the City are binding obligation of the City

to be executed

Facilities and Water

are

not

restrictions

Operation of Facilities To the City s current and actual knowledge the Wells are in System good operating condition ordinary wear and tear excepted in need of repair beyond normal maintenance and there are no encumbrances or other which would interfere with the Authority s use of or access thereto

6 9 Title The City has good and marketable title to all of the Personal Property and System free and clear of all leases security agreements conditional sales contracts or other title retention liens encumbrances security interests perfected or unperfected restrictions or adverse claims of any nature whether accrued absolute contingent or otherwise except as set forth herein All tangible Personal Property of the City us un good operating condition and repair ordinary wear and tear excepted the 7 9 shall have the

During the term of the Lease no other person or entity has or right or authority to serve water within the System Boundaries except that the
same

Water Service

may continue to sell bottled water to the Date

City

extent and scope

as

exists

on

the Execution

8 9 the

Compliance
or

with Laws The

City

has

complied with

and is not in any material

respect in violation of applicable federal state

or

local statutes laws and

regulations affecting

System

the

operation

of its water system

operation

Title to Real

Property

The

City has

or on

the Commencement Date shall have Water

good

and marketable fee

simple

title to the Real

Property Wells

System

and Easements
or

All such real property is free and clear of any mortgages deeds of trust monetary liens 10 9 Liti ation There
at law
or are no

pledges

other

proceedings pending or threatened in writing against or or before or by affecting equity City any federal state municipal or other governmental court department commission board bureau agency or instrumentality concerning the System or any portion thereof or the execution of this Lease The City is not in default with respect to any final judgment writ injunction decree or regulation of any court or federal state municipal or other governmental department commission board bureau agency or instrumentality domestic or foreign with respect to the System or any portion thereof
the in in 11 9
or

Consents Etc No consent approval authorization of or registration declaration

governmental authority federal state or local is required in connection with delivery of this Lease or the performance of or compliance with the terms provisions and conditions thereof If any franchises licenses certificates authorizations approvals or consents from any federal state or local domestic or foreign government commission bureau or agency are required for the ownership operation or maintenance by the City of its water operations such franchises licenses certificates authorizations approvals and consents have been validly granted or will be obtained prior to the Commencement Date are in full force and effect and constitute valid and sufficient authorization therefor
12 9

filing with any the execution and

Authority
bind the

of Individuals The
on behalf

sexecuting individual
City has have
the

this Lease and the power

documents referenced herein

of the

legal

right

and actual

authority

to

City

to the terms and conditions of this Lease

13 9

Customer List The Water Accounts shall be

as

complete

and accurate in all

material respects 14 9

of the Execution Date and Commencement Date

Compliance To the City s current and actual knowledge as of the and Wells will not be in violation in any material Date Property respect of any federal state or local law ordinance or regulation relating to industrial hygiene or to the environmental conditions on under or about the Real Property and Wells including but not limited to soil and groundwater conditions Except as otherwise disclosed herein neither the City nor to the City s current and actual edge owl any third Parties used generated r k or manufactured produced stored disposed of under or about the Real Property and Wells or transported to or from the Real Property and Wells any flammable explosives asbestos lubrication products radioactive materials hazardous wastes toxic substances or related injurious materials whether injurious by themselves or in combination with other materials
Commencement the Real

Environmental

collectively

Hazardous

Materials

There is

no

proceeding

or

written

inquiry by

any

governmental authority with respect to the presence of such Hazardous Materials on the Reai Property and Wells or the migration thereof from or to other property For the purpose of this Lease Hazardous Materials shall include but not be limited to substances defined as hazardous substances hazardous materials or toxic substances in the Comprehensive Environmental Response Compensation and Liability Act of 1980 as amended 42 U CSection 9601 et seq S the Hazardous Materials Transportation Act 49 U CSection 1801 et seq the Resource S Conservation and Recovery Act 42 U CSection 6901 et seq those substances defined as S
10

hazardous wastes

or

hazardous substances under California

to said

law

and in the

regulations

adopted

and

publications promulgated pursuant

laws

ICLE 10 T AR SREPRESENTATIONS WARRANTIES AND COVENANTS RIT lIE AUTI I The

Authority represents

warrants and covenants

as

true and correct

as

of the Execution

Date and the Commencement Date the following 1 10

Organization

The

Authority

is

joint powers authority existing

and in

good

standing

under the laws of California

2 10

Capacity
its

enter into this Lease and the documents referenced

and

perform
3 10

legal power capacity right and authority to herein and to consummate the transactions obligations contemplated hereby Authority

The

has the

execution delivery and performance of this Lease by the Authority a has been or shall be duly authorized by the Authority and b will not violate or contravene i any provision of applicable law ii any order of any court or other agency of the government or iii any agreement or other instrument to which the Authority is a Party or by which it is bound or be a breach of or constitute with or without notice or lapse of time or both
a

Authorization The

default under any such agreements 4 0 1

are

or

other instruments
to be executed

Validity This Lease and all documents required hereby

and shall when executed and

by the

Authority be delivered valid legally binding obligations of the Authority and enforceable against it in accordance with their terms subject to the effect of bankruptcy insolvency reorganization arrangement moratorium or other similar laws relating to or affecting the rights of creditors generally and of general principles of equity proceedings pending or threatened against or affecting the Authority at law or in equity in or before or by any federal state municipal or other governmental court department commission board bureau agency or instrumentality concerning the execution of this Lease by the Authority The Authority is not in default with respect to any final judgment writ injunction decree or regulation of any court or federal state municipal or other governmental department commission board bureau agency or instrumentality domestic or foreign with respect to the execution of this Lease by the Authority
5 10
are no

Liti anon There

approval authorization of or registration declaration or filing with any governmental authority federal state or local is required in connection with the execution and delivery of this Lease by the Authority or the performance of or compliance with the terms provisions and conditions thereof
7 10 actual

6 10

Consents No consent

Authority of Individuals The individual s executing this Lease and the

on

documents referenced herein

behalf of the

have the legal Authority has

power

right

and

authority

to bind the

Authority

to the terms and conditions of this Lease

11

ARTICLE 11 THE CITY S OBLIGATIONS BEFORE COMMENCEMENT DATE From the Execution Date until the Commencement 1 11

Date

the

City

covenants

as

follows and

Conduct of Business in Normal Course The

activities of operating the

System diligently

and in

City will carry on the business substantially the same manner as it has

previously been carried out and shall not make or institute any unusual or novel methods of purchase sale lease management accounting or operation that will vary materially from those methods used by the City as of the date of this Lease except as required by governmental authority with jurisdiction or a court order
New Transactions The City will not without the Authority swritten consent a into any contract commitment or transaction not in the usual and ordinary course of the operation of the System or b sell encumber or transfer any of the System
enter

2 11

Contracts Except in the normal Existing this will not modify amend required by Lease the to or do any of those acts agree

3 11

City

of business and except as cancel or terminate any of its Contracts

course

4 11

Accuracy of The Cit s Representations and Warranties All representations and

delivered to the will be true and in all City Lease material respects as of the correct Execution Date and the Commencement Date as if made on that date If any event condition or notice comes to the City s attention that might constitute a breach of any representations or warranty the City shall disclose same to the Authority in writing The Authority within fifteen 1S business days thereafter shall provide the City with its written determination as to whether or not the Authority waives said breach

warranties of the

City

set forth in this Lease and in any written statements

Authority by

the

under this

ARTICLE 12 THE S AUTHORITY OBLIGATIONS BEFORE COMMENCEMENT DATE 1 12 the

Accuracy of the s Authority Representations and Warranties All representations

and warranties of the

ity by t

the

the Execution Date and the Commencement Date as if made on that date If any event condition or notice comes to the that constitute a breach of sattention Authority might any representations or warranty the Authority shall disclose same to the City in The within fifteen

Authority set forth in this Lease and in any written statements delivered to Authority under this Lease will be true and correct in all material respects as of

writing

business days thereafter shall provide the

or

City

15

Authority

with its written determination

as

to whether

not the

City

waives said breach ARTICLE 13

OBLIGATIONS OF THE PARTIES AFTER COMMENCEMENT DATE

1 13 Utilit Users Fee On or after the Commencement the

termination of the

Lease

Authority hereby

agrees to collect the 12

Date until the expiration or utility users fee on behalf of

the the

City

in

the leased

conjunction with collection from customers residing within the City and served from System for water service and remit the same to the City within thirty 30 days after

receipt thereof
2 13 Monitor Telemetry Alarms The

City

Police

expense shall monitor all telemetry alarms located at the Water System in accordance with the City s procedure in effect at the execution of this Lease The

Department at its sole cost and Real Property Wells Facilities and
on

telemetry

alarms

are

located at such locations set forth

Exhibit N attached hereto and

by this reference incorporated herein If any alarm listed an Exhibit N is activated during such six 6 month period the City Police Department shall orally notify the Authority immediately
after the

City

Police

Department

has actual

knowledge

of its activation

3 13

IExcavation Pavin

In operating and maintaining the System the Authority shall have the right a within any street or property owned or operated by the City The City hereby assigns to the Authority all of its rights to excavate and perform work in any privately owned street or
to excavate

City forty eight 48 hours prior written or oral notice of its intent and the approximate location of the excavation in the of an as event except emergency reasonably determined by the Authority where the shall be the not Authority required to give City prior notice In addition thereto the Authority at its sole cost and expense shall be required to coordinate its efforts with any utilities having facilities in such streets or property provided that the Authority shall have ail the City s rights with respect to priorities with respect to the System as to the use of the street or property and the City hereby assigns all right interest and title thereto to the Authority The Authority shall be required to obtain a permit from the City or pay any cost or expense to the City with respect to its right to excavate in the street or property backfill compact ar install temporary asphalt Thee 3 shall be deemed a blanket encroachment permit as s rights under this Paragraph 13 Authority further described in Paragraph 1 d l
to any
to excavate

property Prior

excavation

the

Authority

shall

give

the

required to dispose at its cost and expense of all excavated pavement in accordance with the City s applicable ordinances and regulations as such ordinances and regulations exist at the execution of the Lease c
At the conclusion of working
on the

The

Authority

shall be

facilities

the

Authority

shall be

required
with the

to

provide

at its cost and expense sub base compaction of the backfill in accordance

s City

uniform

paving

restoration requirements of the

as

shall exist at such time

compaction the Authority shall install permanent paving at the Authority ssole cost and expense provided that the Authority may install as the asphalt temporary Authority shall deem necessary prior to the installation of permanent paving
4 13 of the No Liens

Upon completion

Except

for the lien

securing

any lease

revenue

bonds issued

on

behalf

Authority Date the Authority shall keep System free and clear of all liens claims and encumbrances and all claims of liens for labor services materials supplies or equipment performed on behalf of or furnished to the Authority Should the Authority fail to pay and discharge or cause the System to be released from any such
the

at all times from and after the Commencement

13

lien the

or

claim of lien within

to do so the

thirty 30 days

after service

on

the

City
on

City

lien

such terms and

manner as

may pay adjust the City may deem

compromise and

Authority of written request from discharge any such lien or claim of

the

appropriate Notwithstanding

foregoing the Authority may in good faith and at the Authority s cast and expense contest said claim or in wllicll event the shall not have the right to pay adjust lien demand City compromise or discharge any lien or claim If the Authority does not contest the lien or charge and the City pays adjusts compromises or discharges the same the Authority shall on or before the first day ofthe next calendar month following such payment by the City reimburse the City for the full amount paid by the City in paying adjusting compromising and discharging such lien or claim of lien including any reasonable attorneys fees or other costs expended by the City together with interest at the rate often 10 percent per annum from the date of payment by the City to the date of repayment by the Authority Assignment and Other Transfers Without the City s prior written consent which the shall unreasonably withheld Authority not voluntarily involuntarily by operation of law or otherwise assign sublease dispose of sell grant a concession in license exchange convey mortgage encumber hypothecate pledge collaterally assign or otherwise transfer the System or this Lease or any interest in the System or this Lease collectively a Transfer
5 13 shall not be

sixty 60 days prior to entering into any Transfer the Authority shall submit to the City a written notice the Authority s Notice which includes or sets forth in reasonable detail i the form of the proposed Transfer including without limitation all related agreements documents instruments exhibits and escrow instructions ii the name and address of the proposed transferee the Transferee iii the terms and conditions of the proposed Transfer including without limitation the commencement or effective date of the proposed e Authority Transfer which shall be at least sixty 60 days after tl s Notice is given and iv the character and current Fitch or other comparable agency banking f nancial nature rating by and other credit information and references with respect to the proposed Transferee and the business of the proposed Transferee in reasonably sufficient detail to enable the City to determine the proposed Transferee s financial responsibility and or creditworthiness a
Within sixty 60 days after the City b s receipt from the Authority of the Authority Notice the City shall notify the Authority whether the City has consented to the s proposed Transfer Failure to notify the Authority within such sixty 60 day period shall be deemed approval If the City fails to consent the City shall within such sixty 0 day period send to the Authority in writing a list of all of the reasons for not approving the transfer Any consent by the City to any proposed Transfer shall not constitute a consent with respect to any other Transfer If the City consents to any proposed Transfer and the Authority fails to consummate such Transfer within one hundred twenty 120 days of the s consent then such City consent shall be deemed withdrawn and the shall be Authority required again to comply with this 5 13 before a Transfer Paragraph making The City shall not be deemed to have unreasonably withheld its consent c with respect to any Transfer if i the City shall not have received the Authority s Notice ii the or City is not reasonably satisfied that the proposed Transferee is financially responsible and

At least

creditworthy

or

iii the proposed

Transfer will conflict with

or

result in

breach of any ofthe

14

provisions of or constitute a default under any agreement City is a Party or by which the System may be bound d
or

instrument

or

document to which the

discharged

from

Upon receipt of an approval of Transferee the Authority shall any liability whether past present or future under this Lease Any
Transfer must contain the
or

be released

following provisions which provisions not shall apply to such Transfer i such Transfer shall be subject and subordinate to all provisions of this Lease and ii no Transferee shall be permitted to enter into any subsequent Transfer without the City s prior written consent e
whether contained in such Transfer AItTIC1LE 14

INSURANCE 1 14 Insurance The Authority shall carry and maintain at the Authority s sole cost and expense at all times during the term of this Lease a policy of commercial general liability insurance covering the Authority s activities hereunder Such insurance policy shall name the

City

as an

additional insured with respect to the

operation

and maintenance of the

System

2 14 authorized caused

Waiver of Subrogation The Parties release each

other

and their

respective

by

representatives from any claims for damage to any person or to the System that are or result from risks insured against under any insurance policies carried by the Parties

and in force at the time of any such damage Each Party shall cause each insurance policy obtained by it to provide that the insurance company waives all right of recovery by way of

subrogation against either Party in connection with any damage covered by any policy Neither Party shall be liable to the other for any damage caused by any of the risks insured against under any insurance policy required by this Lease Requirements All the insurance required under this Lease shall a be issued by insurance companies with a financial rating of at least an A 3A status as rated in the most recent edition of Best s Insurance Reports b be issued as a primary policy and c contain an endorsement requiring thirty 30 days written notice from the insurance company to both Parties and any lender before cancellation or change in the coverage scope or amount of any policy Each policy or a certificate of the policy together with evidence of payment or premiums shall be deposited with the other Party at the commencement ofthe term and on renewal of the policy not less than thirty 30 days before expiration of the term of the
3 14 General Insurance

policy

RTICLE 15 INDEMNITIES 1 15 Indemnities

By the City

The City agrees to indemnify defend and hold harmless the Authority its a officers directors employees agents successors and assigns from any and all claims actions 15

costs expenses including reasonable attorneys fees and costs damages or liabilities which any or all ofthem ever pays or legally is obligated to pay relating to the City s ownership and use of the System prior to the Commencement Date including but not limited to litigation subject to

d below The City shall further indemnify defend and hold harmless the 2 Paragraph 15 Authority its officers directors employees agents successors and assigns from and against any and all claims actions costs expenses including reasonable attorneys fees and costs damages or liabilities which any or all of them ever pays or legally is obligated to pay arising from any breach including the City s representations or warranties or default by the City under the terms of this Lease or any other document relating to the System executed by the Authority and or the City or arising from any act neglect fault or omission of the City or its agents contractors employees or servants
The City hereby agrees to indemnify defend and hold harmless the b Authority officers directors employees agents successors and assigns from and against and shall reimburse the Authority for any and all Claims The term Claims shall mean any and all costs including reasonable attorneys fees and expenses expenses or losses arising from any and all claims losses damages liabilities fines penalties charges injury to person or property administrative and judicial procedures and orders injunctive relief judgments remedial action requirements and enforcement actions of any kind arising directly or indirectly out of or attributable to any Release as defined herein except if such Release was caused by the Authority Without limiting the foregoing Claims include any repair of any damage to any Real Property or any other property damage caused by any removal remediation or disposal of Hazardous Materials as defined herein The term Release shall mean any presence use generating storing spilling leaking pumping pouring discharging injecting escaping leaching dumping or disposing of Hazardous Materials into the environment or about on from under within or affecting any Real Property or transported to or from any Real Property including continued migration of Hazardous Materials as defined herein into or through soil surface water or groundwater its

The City hereby agrees to fully indemnify defend and hold harmless the c Authority officers directors employees agents successors and assigns from and against all losses claims damages liabilities actions suits proceedings judgments demands costs and or charges which are occasioned by or expenses including reasonable attorneys fees and or caused by result from arise out of the breach of the covenants or the failure of the City to comply with the terms of Paragraph 15 b or any repair cleanup or detoxification or 1 and of preparation implementation any removal remedial response closure or other plan concerning any Hazardous Materials as defined herein located on or before the Commencement Date on under or about the Real Property
its 2 15 Indemnities

By

the

Authority

The Authority agrees to indemnify defend and hold harmless the City its a elected officials public officers employees agents successors and assigns from any and all claims actions costs expenses including reasonable attorneys fees and costs damages or liabilities which any or all of them ever pays or legally is obligated to pay relating to the s operation of the System during the term of the Lease including but not limited to Authority litigation The Authority shall further indemnify defend and hold harmless the City its officers directors shareholders employees agents successors and assigns from and against any and all

16

claims actions costs

expenses including reasonable attorneys fees and costs damages or liabilities which any or all of them ever pays or legally is obligated to pay arising from any breach including the Authority under s representations or warranties or default by the

Authority

the terms of this

Lease or any other document relating to the System executed by the City and or the Authority arising from any act neglect fault or omission of the Authority or its agents contractors employees or servants or arising from any legal proceeding contesting the s payment of or ability to pay the rent due under this Lease Authority b
from and

The

City against Authority Claims shall mean any and all costs including reasonable attorneys fees and expenses expenses or losses arising from any and all claims losses damages liabilities fines penalties charges injury to person or property administrative and judicial procedures and orders injunctive relief judgments remedial action requirements and enforcement actions of any kind arising directly or indirectly out of or attributable to any Release caused by the Authority Without limiting the foregoing Authority Claims include any repair of any damage to any Real or other Property property damage caused by any removal remediation or disposal of any
arrlnug 1Vjater Ha ialS

Authority hereby agrees to indemnify defend and hold harmless the and shall reimburse the City for any and all Authority Claims The term

Authority hereby agrees to fully indemnify defend and hold harmless the City its elected officials public officers employees agents successors and assigns from and against all losses claims demands costs and expenses including reasonable attorneys fees andlor charges which are occasioned by or caused by failure of the Authority to comply with the terms of Paragraph 15 b or any repair cleanup or detoxification or preparation and 2 of implementation any removal remedial response closure or other plan concerning any Hazardous Materials on under or about the Real Property
The Authority agrees to indemnify defend and hold harmless the City d elected officials public officers employees agents successors and assigns from any anal all reasonable claims actions costs expenses including attorneys fees and casts damages or its

The

liabilities which any or all of them ever pays or legally is obligated to pay arising from or to Cit Indio v Coachella Water Desert f Valley District Sands Unified School District and Does 1 100 inclusive and related cross actions Case No INC O l 8166 filed in the Superior Court of California County of Riverside

relating

ARTICLE 16 PERMITS Issuance of Permits by The City On or before the Commencement Date the at the Authority s cost and expense irrevocably issue or cause all agencies under its
to issue to the

1 16

City

shall

approvals permits authority licenses or entitlements Permits necessary to operate maintain repair replace enlarge increase modify or otherwise deal with the System as now constituted or as may be modified by the Authority during the term of the Lease including the right to excavate in the City owned Where to the property appropriate circumstances said Permits shall constitute and operate as a
17

dominion and control

Authority

all consents

blanket encroachment permit All Permits issued hereunder shall employees agents contractors and subcontractors of any tier 2 16 Permits by Qther Non City A encies

apply to the Authority

and its

Except as

set forth in

Paragraph

1 16

above the Authority shall at its cost and expense obtain from all other federal state or municipal boards or authorities the Permits necessary to operate and maintain the System including without limitation any cost or expense related to the National Pollutant Discharge Elimination System
ARTICLE 17 MFLIANCE dVITH LAWS C 1 17 Compliance With Laws Subject to City s compliance with its obligations under this Lease and any matter arising out of the condition of the System on the Commencement Date the Authority at its expense shall comply with and conform to all laws ordinances orders rules and regulations municipal state and federal and any and all requirements and orders of any

municipal

state

or

federal board

any way relating to the operation throughout the entire term of this 2 17

authority collectively the Orders present and future System or the use of the System Lease as extended
or

in

and maintenance of the

Changes in Water Quality

a
maintain the
same

F x cept as set forth herein the Authority at its expense quality of water as existing at the execution of the Lease

shall operate and

If any municipal state or federal board or authority or any law ordinance b order rule regulation collectively the P equirements requires the Authority or the City to or change the of the the Authority shall be responsible for paying all costs water improve quality
or

and expenses associated therewith

If any of the Wells begins to the

existing

at the execution of this

any money necessary to

Lease improve such water quality begins

to

produce water of a lower quality than Authority at its expense shall be required to expend

d portion thereof
or

If any of the Wells the need to

provide
or

water of a lower

quality than existing

any the terms and

at the time of the execution of the Lease due to the need to rehabilitate any of the

Wells

or

modify

any of the

Wells

any

portion thereof

conditions of Article 19 shall 3 17

apply

Water Assessments The Authority shall be required to pay any and all water fees and assessments and related casts which are required by owners or operators replenishment of real property within the System Boundaries as required by any and all laws ordinances rules and orders regulations municipal state or federal board or authority present or future

18

ARTICLE 18 MAINTENANCE AND REPAIRS 1 the Maintenance of System

Subject to the

terms and conditions of this Lease and the

City compliance with its obligations hereunder and any matter arising out of the condition s System on the Commencement Date the Authority shall maintain the System and all improvements in good condition and repair ordinary wear and tear excepted
ARTICLE 19 CAPITAL IMPRCJVEMENTS

of

Capital Expenditures The Authority shall be required to construct or replace any capital improvement The term capital improvement shall mean any major improvements to the System that extend its life or increases its function i e capacity or efficiency The Authority may construct or replace such capital improvements as shall be determined by the Authority in its sole and absolute discretion after consultation with the City Development As part of the Authority s sole right to System System Boundaries the Parties hereto acknowledge and agree that the Authority shall have the authority over third parties constructing water facilities including but not limited to reservoirs pumps pipelines and meter sizes in connection with new development New Domestic Water System within the System Boundaries or within any other area that hereafter becomes part of the System Boundaries by annexation into the City or otherwise Upon completion and acceptance of any New Domestic Water System the Parties hereto will amend this Lease to add such system to this Lease and thereafter the Authority will maintain and operate such New Domestic Water System in accordance with the terms and conditions of this Lease Notwithstanding the foregoing the Parties acknowledge the City shall have authority over all aspects of new development not involving any New Domestic Water System
operate the
and
serve

1 19

The Authority s Obligation for

2 19

Dominion Over New

water

within the

Construction of City Projects The City is in the process of constructing or be constructed certain water projects City Projects Upon the execution of this causing to Lease the Authority shall diligently and continuously prosecute all City Projects to in conformance with all The

3 19

completion

Authority shall including but not limited

City

laws rules pay directly all

and

regulations

of all

governmental

bodies and

costs associated with the construction of City

agencies Projects

to furnishing of labor and materials and the Authority shall keep the harmless from such costs Upon completion and acceptance of any City Projects the Parties hereto will add such City Projects to this Lease and thereafter the will maintain

Authority

and operate 4 19

City Projects

in accordance with the terms and conditions of this Lease

provements During the term of the Lease in addition to the Authorit improvement described in Paragraph 19 1 the Authority may construct additional water capital improvements Authority Improvements If the Authority determines to construct Authority Improvements the Authority will give the City notice of such fact Upon completion of any
Authority Improvements
the Parties hereto will amend this Lease to add such

Authority

19

Improvements to
Improvements

will maintain and operate in accordance with the terms and conditions of this Lease

this

Lease

and thereafter the

Authority

Authority

ARTICLE 20 DAMAGE OR DESTRUCTION

If during the term the System or any portion thereof is totally or partially destroyed from any cause whatsoever the Authority shall be required at its cost and expense to make such repairs or replacements as is necessary in the opinion of the Authority to restore water service to the customers as soon as reasonably practicable
or

1 2D

Total

Partial Destruction

ARTICLE 21 DEFAULT AND REMEDIES 1 21

Default by the Authority The Authority shall be deemed

as

to be in default under

the terms of this Lease

follows

If the Authority shall fail to pay any installment of rent a due and such default continues for a period of thirty 30 days after the due

or

other

sum

when

date provided that it shall not be in default if a bona fide dispute exists with to amount not paid unless the respect any matter has been submitted to dispute but resolved not within ninety 90 days as resolution extended by mutual agreement of the Parties or Authority shall fail to promptly perform or observe any covenant agreement performed by the Authority under this Lease within thirty 30 days after written notice from the City provided that it shall not be in default if a bona fide dispute exists with respect to whether there has been a failure to perform in a timely manner in any material respect any obligation hereunder unless that matter has been submitted to dispute resolution and not resolved within ninety 90 days as extended by mutual agreement of the
condition
or

If the

to be

Parties
2 21 this Lease
as

Default by the City The follows

City

shall be deemed to be in default under the terms of

City shall fail to pay any sum when due and such default continues period 30 days after the due date provided that it shall not be in default if a bona fide dispute exists with respect to any amount not paid unless the matter has been submitted to resolution but not resolved within ninety 90 dispute days as extended by mutual agreement of the Parties or
for
a

If the

of thirty

City shall fail to promptly perform or observe any covenant performed by the City under this Lease within thirty 30 days after written notice from the Authority provided that it shall not be in default if a bona fide dispute exists with respect to whether there has been a failure to in a perform timely manner in any material respect any obligations hereunder unless that matter has been submitted to dispute
condition
or

If the

agreement

to be

20

resolution but not resolved within ninety

90 days as

extended by mutual agreement of the

Parties
3 21 Resolution of Disputes

Each Party shall continue to perform its obligations hereunder pending a resolution of any dispute provided that notwithstanding any other provision of this Lease neither Party shall be required to make the disputed portion of any payment pending resolution of a dispute

the terms of this Lease to

The Parties agree to cooperate and use all reasonable efforts pursuant to facilitate the operation and maintenance of the System and the

Authority providing service within the System Boundaries Accordingly the Parties agree in s good faith to undertake the resolution of all disputes in an equitable and timely manner provided that if any matter is not resolved within ninety 9d days as extended by mutual agreement of the Parties either Party is then free to pursue all other legally available remedies including all legally available remedies in connection with an improper termination of this Lease by the other Party provided however when a dispute occurs under the Lease the Party claiming the dispute will give notice to the nondisputing Party of the occurrence of the dispute The notice shall include a detailed explanation of the nature of the dispute Within seven 7 days after receipt of the notice or such longer time as shall be agreed by the Parties the Parties shall use their best efforts to meet and confer to resolve the dispute If the dispute cannot be resolved the remaining provisions of this Paragraph 21 3 shall apply
4 21 Remedies Except as otherwise provided herein if either Party commits a default breach in any material respect and such default or breach remains uncured after the time period if any permitted for cure under this Agreement then in addition to all other remedies
or

that the Parties hereto may have at law or in equity which remedies shall be cumulative to any remedies provided in this Lease the non defaulting Party may terminate this Lease ARTICLE 22 EXPIRATION OF LEASE 1 22 the

iration
of the

At the

expiration

possession System including investments liabilities of any kind the Water Rights Real Property Wells Facilities Water System and Easements Records subject to Paragraph 22 2 below Contracts subject to 3 below Water Accounts subject to Paragraph 22 Paragraph 22 4 below Deposits and and shall Intangible Property execute any assignments bills of sale or other instruments or
documents of conveyance 2 22

of the term the Authority shall surrender to the without limitation all cash accounts receivable

City

reasonably

necessary to surrender the

same

Records Pursuant to Paragraph 3 g all Records existing on the 1 Commencement Date were retained by the City Afterthe expiration or termination of the Lease the Authority shall be entitled to retain all records from the Commencement Date to the date of the expiration or termination of the Lease Both Parties shall be to have access

permitted

to the records retained

by

the other

Party

at all reasonable times

21

3 22 Contracts

Contracts At the
or

if in existence
or

the termination

expiration

Lease the City may assume the other and contracts any agreements with respect to the System On the Parties hereto shall execute an assignment of such contracts
or

expiration

termination of the

and agreements substantially in the form and content of Exhibit N attached hereto and incorporated herein by reference except that the Authority shall be the assignor and the City shall be the assignee Except for the foregoing the Authority hereby agrees to hold harmless and indemnify the City for all loss expenses damages and costs including reasonable attorneys

fees arising

from

or

in connection with the

or as

sliabilities or obligations Authority

herein
to the

not assumed

pursuant to this 4 22

Paragraph

otherwise

agreed

Water Accounts

Ninety 90 days prior

Expiration Date
water
as

the

Authority

shall deliver to the

City

list of customers the

Authority

is

supplying

of that date The

agrees to initiate the service of water to such customers as of the day after the termination or expiration of the Lease The terms and conditions of 2 shall Paragraph 4

City hereby

the notification of customers with the

apply

to

City standing

in the

place

of the

Authority standing Authority herein

ICLE 23 AR

in the

place of the

City

herein and the

GENERAL PROVISIONS 1 23 Notices

required permitted to be given or to be served upon either Party in connection with this Agreement shall be in writing Such notice shall be personally served sent by facsimile telegram or cable or sent prepaid by registered or certified mail with return receipt requested or sent by reputable overnight delivery service such as Federal Express and shall be deemed given a if personally served when delivered to the Party to whom such notice is addressed b if given by facsimile telegram or cable when sent c if given by prepaid or certified mail with return receipt requested on the date of execution of the return receipt or d if sent by reputable overnight delivery service such as Federal Express when received Any notice given by facsimile telegram or cable shad be confirmed in writing and such confirmation shall be sent or delivered by any ofthe other means of delivery set forth in this Section within forty eight 48 hours after notice was sent by facsimile telegram or cable Such notices shall be addressed to the Party to whom such notice is to be given at the address specified by each Party in a delivered or writing sent to the other Party in accordance with this Section
or or

Any notice approval

consent waiver

other communication

2 23

Entire

Agreement

This Lease contains all agreements

promises

and

understandings between the Authority and the City and no verbal or oral agreements promises or understandings shall or will be binding upon either the Authority or the City and any addition
variation
or

modification

to

this Lease shall be void and ineffective unless made in

signed by

the Parties hereto

writing

and

3 23

binding

on

Successors Each and all of the covenants and conditions of this Lease shall be and shall inure to the benefit of the successors and assigns of the respective Parties

Further Assurances Either the Authority or the City at any time upon reasonable of the other will request Party execute acknowledge and deliver all such additional documents instruments and other Leases and all such further assurances and will do or cause to be done all

4 23

22

further acts and

things

in each case

as

may be proper

or

reasonably

necessary to carry out the

purposes hereof 5 23

Governing

Law This Lease and

performance

hereof shall be

governed

interpreted
6 23

construed and

regulated by

the Laws of the State of California

Attorneys Fees In any action between the Parties arising out of this Lease or in System the prevailing Party in the action shall be entitled in addition to damages injunctive relief or other relief to its reasonable costs and expenses including without limitation costs and reasonable attorneys fees fixed by the court and any attorneys fees and costs incurred in enforcing any judgment
connection with the 7 23

Titles Captions and Para raphs Titles and captions

a

are

for convenience
are

shall not constitute

as

portion of this Lease References to paragraph numbers numbered in this Lease unless expressly stated otherwise
8 23 No Waiver A waiver

only and to paragraphs

by

either

conditions construed

or

as a or

agreements under this Lease to waiver of any succeeding breach of the

conditions of this Lease Modifications

Party of a breach of any of the covenants be performed by the other Party shall not be
same or

other covenants agreements

restrictions

9 23
to become

Any alteration change

or

modification of or

to this

Lease

in order

effective

shall be made in

writing

and in each instance

signed

on

behalf of each

Party
10 23

Severability If any term provision condition

or

covenant of this Lease

or

its

application
persons
or

to any

the remainder

Party or circumstances shall be held to any extent invalid or unenforceable of this Lease or the application of the term provision condition or covenant to
as

circumstances other than those

not be

to whom

or

which it is held invalid

or

unenforceable shall permitted by law

11 23

affected

and shall be valid and enforceable to the fullest extent

understanding

Merger of Prior Agreements and Understandings This Lease contains the entire between the Parties relating to the transaction contemplated by this Lease All
oral
or

prior or contemporaneous agreements understandings representations and statements written are merged into this Lease and shall be of no further force or effect
12 23

signed by

all

Counterparts This Lease may be signed in multiple counterparts which Parties shall constitute a binding agreement

when

Estoppel Certificate Within ten 10 days after notice from a Party hereto Requesting Party the other Party Responding Party shall execute and deliver to the Requesting Party in recordable form a certificate stating a that this Lease is unmodified
in full force and effect
or

13 23

and

in full force and effect

as

modified and

current lease payments c the dates to which the lease then payments have been paid in advance d whether the Responding Party or the Requesting Party is in default under this Lease and e such other matters as the Requesting Party shall reasonably The

stating

all

modifications b the

request

Responding Party s
conclusive upon the

failure to deliver such certificate within such ten day

Responding Party

for the benefit 23

l0 period shall be of the Requesting Party any successor in

interest to the

s lender or the Requesting Party R q e uestng Party he Requesting Party sinvestors be that except as may sented by repr ahe Requesting Party this Lease is unmodified and 3n full force and effect no lease payment has been paid in advance and neither the Requesting Party nor the Responding Party is in default under this Lease Water Bill The Authority will at the City ox s written request include a service material public message prepared by the City provided that the inclusion of the requested message is compatible with the Authority s billing equipment and does not increase the cost of postage or other expenses The City acknowledges that the Authority will allow use of the water bills to provide water quality conservation and other public
14 Notice 23
on water

bills which contains

service information and messages IN WITNESS above written The

WHEREOF

the Parties have hereunto set their hands

on

the date first

Authority

Indio Water

Authority

Steve

Compton

Treasurer

The The

City
of Indio

City

d el arol

City Manager ng

24

EXHIBIT LIST

EXHIBIT A EXHIBIT B

Depiction of System
Rates and

Boundaries

Recital A

Charges Section 2 3
of Real

EXHIBIT C EXHIBIT D

Description

Property Section 3 b 1
Sites located
on

Description of Wells and Well Real Property Section 3 1c

EXHIBIT E

Description

of Water

Appurtenant
EXHIBIT F

Facilities

Tanks Pumping and Section 3 d 1

Description

of Water Related Easements

Section 3 f 1
EXHIBIT Cr EXHIBIT H EXHIBIT I EXHIBIT J List of Contracts

Section

3ih

Personal Fire

j 1 Property Section 3

Department Agreements Section 4

Memorandum of Lease Documents

Section 2 a

EXHIBIT I EXHIBIT L

Original

Section 8 b 2 Section 2 c
of

Assignment

of Contracts

EXHIBIT M

A List of Items Transferred Sale

or

by Way of Bill Assignment Section 2 d

Alarm Locations

EXHIBIT N

Telemetry

Section 13 2

EXHIBIT A

Depiction

of

System

Boundaries

Recital A

m
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r z x
WeII Site IA is located at the Intersection of Avenue 45
Palo lerde Street
on

the

south east side ofAvenue

WeII Site IB is located Pacific

45

at the

intersection ofAvenue 45
on

PacifZC Avenue IOCation

on

approximately

200 ft south ofAvenue 45

the south west side of Pacific

Avenue
y

WeII Site IC is

block

building inside the City of Indio Public

Works Yard Located at

01 Avenue 45 well site 1 C is located at the southeast side ofthe 1 83

public

services

yard

Well site 28 is located

on

Crown

Way

Avenue west ofMonroe Street at the south west

corner of Crown

Way Park
on

We11 Site 2C is located ofCrown

Crown

Way Avenue west

of Monroe at the south east corner

Way

Park

Well Site 2D is located inside Booster House 2 ofthe north west side ofCrown

complex

at 81 930 Crown

Way

Avenue

Way

Avenue

Well

Site 3A

a is

located at the Intersection ofGarden

Daisy Street

in Dr Caz eon Park z

south west of Daisy Street WeII Site 3B is located on the North Side ofDr Carreon Blvd
east of Monroe Street

approximately

400 feet

Well Site 3C is located inside Reservoir

3 fenced

area

at the end of Garden Street

A is located Well Site 4

on

the north side of Avenue 46 just east of Shields Road Shields Road

WeII Site 4B is located inside Reservoir 4 at intersection ofAvenue 45 at the north east corner of site

WeII Site 4C is located inside Reservoir 4 at the intersection of Avenue 46 Road at the west side ofthe site

Shields

Booster House Locations Booster Douse 1 Located This

at

Public Services Yard 83 101 Avenue 45

and 1 10O

plant has

2 natural a as

aukesha Motors 4 1197

hp Electric Ivlotor

Controlling
S 500

all three wells dnd the three boosters at this site is

Murphy

controller mode l master

Booster douse 2 Located

500 5

west of Monroe Street on Crown Way 81 930 s P Iant has 2 natura I gas 1197 Waukesha motors and 1 100 horse power electric motors Controlling aII three wells and the three Boosters al this site is a master controller

MuIpI1y

model

Booster
natural

all three wells and the three Boosters at Ibis site is

House 3 located west of Daisy Street in Dr Carreon Park This Iant Gas 3306 Caterpillar motors and 1 100 horse power Electric Motor
a master

Cow
0

Murphy

controller model

ntx S olling

Booster 4 use Located of the Intersection of Shields Road Avenue 46 This p last has Booster pumps all Eiectnc P 1 the J ockey is 100 horse pump 2 is 200 power P horse power P3 is 200 horse power P is 200 horse power Controllin aII three wells g at fhe fou booster at this site is a master controller model
S S00

Murphy

r
t

Ll

99

A 1 natural Gas eI11

WeI1 1 Wel11G WeI12B Wel12C Wel12i Well 3 4

3306 Cate

illar motor
Jf

1 100 horse power motor Hollow shaft electric

1 1
100 horse power motor Hollow Shaft 150 motor H ollow Shaft

horsepower

Electric electric

1 Natural

Gas 3306

Caterpillar motor

1 1 WeII 3B 1 100 horsepower motor Hollow Shaft Electric Weli 3 C 1 Natural Gas 1197 Waukesha Engine Well 4 A 1 200 horse power motor Hollow Shaft Electric
We1148T1us site
power moor has two

200 horse power GE Hollow Shaft Electric Natural Gas 3306 Caterpillar Motor

options

both

and natural electric

Hollow Shaft 2 1 atural gas 1905 Wakesha

gas

1 Electric

200 ho rse

motor

eL14C S

200 horse power motor Hollow Shafr Electric

at Indio

esexvoir 1 Located R
eservoir 2 Located

Public Services yard 83 101 Avenu e 45

0 0 2 0 00 0 GaI

at 81 930 Crown

Way west of Monroe Street 000 000 Ga I 2

000 0000 Gal 2

Reservoir

3 Located at west end of Garden Street

Reservoir 4 o I cated at Intersection

ofAvenue 46 and Shields Ro ad

000 Gal 2 000

I IBI EX F

Description

of Water Related

Easements

Section

1 3

4
1

Aj
t

1933118 59A13 8

3Z2 EXHI

rr

ion f Water Descriti

Related Easements

All

easements

water and wester and from such facilities the future the

and similar rights b of the Indio ar sing out of or in City of the enlarge remove reconstruct and replace n repair improve and malnta aspect relocate other pipelines facilities and appurtenances and limited to thereto g not measuring devices air valves but service connection structures offs s tats blow ons and

collectively

rEasementsrr

licenses

or

connection with

held

ce orx

cif operate C 1struct

S n includina
h
a

used

or

distribution
City
of

useful

by

existing

together with
on

the

recorded

in the

cial Records Offa

Indio whether

not the Easements of Riverside Count Y

or

sari cresssmission rights date hexeof acquired

or

of to

in

are

California

EXHIBIT

List of
1

Contracts

Memorandum

of

SUNLINE SERVICES GROUP Permit

No

Understanding
a

dated MaY 1997 e b y c nd betWt e pub11C agency and the CITY OF

8 2

SNDIO

AGHMENT tA2
3

D 7 3221 issued by the SOUTH COAST DISTRICT to the CITY OF INDIO dated DISTRICT to D69902 R

AIR
3

QUALITY
7 199

May

permit

No

MANAGEMENT
mit N pex
94 1
E

D69902 issued R by

the
OF

the
the

CITY

SOUTH COAST IR QUALITY IND dated Ma O Y 1Q 1993 COAS

AGRMENT DISTRICT MAl

permit

issued by

to

the SOUTH CITY OF INDIO

dated

QUALITY JaR nuary 12

No

AGEMENT NfAN
6

73171 issued D DISTRICT to the CITY

73222 D

byMthe
OF IND

Ox d

AIR

ted

QUALITY
1993

May 5

t e 1

No

MANAGEMENT DISTRICT
7

issued
to the

mit No c e 1 MANAGEMENT
er No I t 1

COAST AIR LITY P QU CITY tQF INDIOH dated May 7 1993

b

Jb

73172 issued D DISTRICT to the 73173 D

CITY
b

tOF

IND

COAST px dated May

AIR

QUALITY
1993

MANAGEMENT DISTRICT
permit No

issued
to the

CITY

tOF INDI4H
O

COAST AIR QUALITY dated May 5 3997 COAST AIR

AGEMENT DISTRICT I M
10

73174 D issued b to the CITY

tOF IND H dated tOF INDSTx

O

QUALITY
1gg3

permit

May 5

No

MANAGEMENT
31

75 7 D 3 issued b DISTRICT to the CITY No AIR

Application
SOUTH COAST

COAST FAIR QUALITY dated May 5 1993

NDIO
12

311099 granted as of QUALITY MANAGEMENT

Apri1

10
to

DISTRICT

1996 by the the CITY OF

t No Perm

issued by the vYAGEMENT DISTRICT to the CITY OF IND

No COAST AIR 311100 granted as of QUALITY MANAGEMENT

73176 D

13

Application
SOUTH

OAST AIR QUALI y OH d aced May 5 3 gg3

q

April

l0

1996

INDIpe
4

DISTRICT

to the

by
CITY

the
OF

Permit

No

MANAGEMENT DISTRICT
Permit
No

73177 issued D
to the

b CITY
b G TY

tOF INDIOH tOF INDUIT H

O 1
r

COAST AIR dated May

QUALITY
1993

D 7 3178 issued MANAGEMENT DISTRICT to the

COAST AIR QUALITY dated May 5 1993

7 t
r

Xhlblt

page

1
f v

l6

oral Agreemment to provide stand by services to the Carver Tract Mutual pursuant to City of Indio Account 2J o 26263 0 subject to the Rates and Charges as defined in the Leasej existing at the time service is requested Oral

7 l

Agreement
to

pursuant

Charges

provide stand by service to the 7al er Tract Account No 0 20761 subject to the Rates and existing at the time service is requested
to

Exhibit

Page

2
r

OflUU2Q

EXHIBXT One

l Olympian 50 serial 31085

CD200

hailer

mount

4AG4U20D3VCO240720

emergency generator model

This trailer mounted electrical in times of emergency to

provide

Wel3
been

pumps

within

the

s City

retrofitted with special accommodate this generator

generator was purchase o be used electscal power for any electric water system All well sites

electrical

switching

have panels to

i t

OIs and C
TaPP to g Tool
t

ui

mend

TSmaI1 Ta in LF Mac h in c Model X T Muller W atcbet R 2X2 11 Mueller 5 50694

Z a pping Tool
SS6

Tapping Tool
Ta PPin g Tool CL12

557 m 558

Mueller 1 Machine wlBits

Drilling

adapfers

4 tluu 12

559

Polit model B Milling Iviachine

Test Kit

561

Midwest Instruments

Baclcflowmadel City LD
562 Test Kit

830 00940

Midu Instruments est BackflowD Check Valve Model 890

D I City
S63

n 02632

Chlorinator Portable Well Sounder Leak Deteotor

W211ace
IOOOB

Merman

22I7

r 56S 566

fiisher Mscope Leak Detector

model

20SNA10828 XL7 D Ctty I

569

n H02494

Statute Electrtc Valve

D City I

99070

OOI0504

Turning Tool
570

Electric Valve

Toledo

Turning Tool
599 Tren Shore

Pipe Threader

064368

Shortng
A N NIA

Model 5288 6 cornplete shorin g sections 4 singles 2 baubles with

Hydraulic Pump
Backflow Tester
CL2 pumps

Duke Barton Model 246 BFI two 2 each LMI model SI 9LS 8 ei 8 teach with siganal capability LIvSI model 7S1 9LS 3 three each

CL2 pumps
R

f s

sagnal captVtlttys wl

zT xH

a o
p

Ar 27

98 19
w

IATER DEPT MUELLER V

DESCRIPTION
r

QTY
95
95

BOLTS FOR METERS 112 10X2 314

314 1 N TS i 518 2 2 BOLTS

5 NUTS
314 X 3 2 X B R EAK AWAY B O LTS 314 IP X FLR CORD

X90 190
32 12
g p

2 I PXFLANGEANGLE STOP INSTA TITS X IP 3l4

INSTA TlTE X ADAPTER COUP 314

15
g 2

314 FLR X I P ADAPTS R FM FLR X FLR UNfON 112 FLR X FLR f 1 fUT UNfO
FLR X FLR NUT 314 L1NfON FLR X FLR NUT 2 UNfON 1P X IP ADAPTER M 1

t5 r
8

12
3p

FLR X 2 11

M IP

10
25

INSTA TITS X f11f IP 1t

11 I4 GATE VALVE
200HP MDLm5K445006047 SER GE 08272038

10

YAKAWA MOTOR OONP S N 327133 80Z MODEL BSUK 01 HATCH BACK GAT CONVERTER HSA 4

RECONDITION OVER HAUL CYLHEAD HONEYWELL CIRCULAR CARTS 30755317 PENARM AssEM 501 30756304 HONEYWELL
J1M

600 1

HPd4

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RECORDING REQUESTED

BY

AND jHEN RECORDED MAIL TO

w

INDIO WATER AUTHORITY 100 Civic Center Mall

Indio CA 92202
Attn Executive Director

MEMORANDUM
THIS MEMORANDUM
this

OF

LEASE

day

of

2001

for

OF Memorandum LEASE
identification

WATER

The parties

AUTHORITY ajoint hereby agree

powers

authority

Auhori

oses

is made and entered into as of by and between the INDIO ty and CITY OF lNDIO
only

City

1 City is authorized to provide water service to all real prope A attached hereto and by this reference

incorporated

herein

Ci

Boundaries
o

de icted

on

Exhibit

In the

provision

assets properties and

of water within the

not

business including but

City Boundaries
to the

limited

n aesscor follow
g
an
s

ci

controls certain

abed assets
and

Ail water

in and to water

rights of City including without limitation by virtue of contractual rights

or

y ri g ht title

interest

Certain real property located in

and
more

California
hereto and

around the

by this

particularly described andlar reference incorporated herein

Real Property

City of Indio Coon of Riverside de icted on E xhlbit 1tB attached

c
or and

Certain

water wells and well

on

depicted

the

Wells

Exhibit C attached hereto and

located an the Real Pro e sites by this referen e

described incoegally rporated herein

Facilities
e
Real

d Certain water tanks pumping and depicted on attached Exhibit D and by

or legally described and thisP eferencel acllitres herein incorporated the

urtenant

The water system Water System owned and b Ci exc lusive of the Property Wells and Facilities including but not operated limited to transml ssio and distribution mains fire hydrants lateral services meters and boxes and appurtenant

equipment

or

installations

meter

HIBIT Ex

related easements Water including easements of recd rd in Riverside County California in connection with its business of supplying water described on Exhibit E attached hereto and by this reference herein

fj

incorporated

All records and

maps

City relating to the operation of

and agreement

or

ownershi p

of the S y stem and

h s interest iri various contracts City licenses in connection with the System i j
in the

permits franchises

Customer
All

Lists of those

to

whom

City presently supplies uJater

machinery equipment k
oral
or

tangible personal property owned or operated by City and used substantiall y ownership and operation of the System including without limitation all
and tools All of City srights in and to any deposits written agreements held or received in ofthe

operation

System

any like or similar fund under any connection with the ownership a pd
or

The City Water Customer Service 1 telephone number histories and any promotional material relating to the

6550 760 342

account

provision

of water service

The assets described above and all other assets properties and business of City of every kind whether tangible intangible real personal or mixed wherever located used in connection with s Water System and delivery of water to its customers or City potential customers but sub ect to the exclusions set forth in the Lease shall be referred to herein as

collectively

System

On

even

date herewith leased to

Lease wnereby City

4
on

City and Authority entered into that certain Lease Authority and Authority leased from City the System
at 11 59 p m

The Lease ofthe and

July 1 2001
5

System is for a period of thirty 30 year s beginning ending thirty 30 years thereafter Expiration Date
s

right Lease shall change any existing the City Boundaries

pursuant to the Lease shall inure the city s relative annual to

underlying the City Boundaries currently are not adjudicated should a physical solution Accordingly declaration of water rights or a formula for allocation of water rights and obligations ever become necessary through litigation or otherwise the parties acknowled e and a ree tha t the g g extraction pumping or production history resulting from the water service
benefit ofthe City for the purpose of determining withdraw water from such s Nothing herein or in the basin agreement with respect to service of customers inside or outside

The Authority does not by virtue of this Lease obtain any ownershi System Moreover the parties acknowledge and agree that the rights ofall persons extracting pumping or otherwise diverting water from the groundwater basin s

ri hts in the
or

tides

solely

to the

s Authority providing

2 L 93444
t

413 8559

1998 me Notary Public personally appeared or proved to me on the basis of known to me satisfactory evidence to be the whose subscribed to the within s are sis name instrument and acknowledged to me that he in s e their authorized her his f ey executed the same ies and that by his capacity their si nat her the on the
before

Un this

day

of

ersonpersonally

sor the entity upon behalf of which person

WITNESS my hand and official
seal

the

s acted person

execut

instrument ed the instrument

Notary

Public in and for said

County and State

SEAL
E OF CALIFORNIA A I S

OF COUNTY

On this

1998 before me Notary Public personally appeared or proved to me on the basis of satisfactory evidence to be the subscribed to the within and instrument acknowledged to me thapt in his their authorized her and that by his ies capacity herltheir si the sor the entity person
upon behalf of which the persons

day of

ersonpersonally whose sis are shethey name he

xecuted the

known

to

me

sarrze

natur s on the instrument e

e

acted

xecuted the instrument

WI7NESS my hand and official seal

Notary public in and for said County and State

SE A L
34442 9 1
Od3 8559

C
AUG

X997

TDZNG DERSTA DtJM OF UN MEMO

VICES GROU1 a public agency StTNLINE SPrR er IDZO a municipality hereina hereinafter referred t as SSG and the CITY OP II
his agreement between T
to
as

referred

Indio is made and entered into

P

on

this

ZS

daY

of May 1997

CJ R S A

AS SSG has street sweeping vehicles and intends to sweep designated IFR
streets arid will

require

the

use

of various

water hydrants for refilling hydrant

access

EREAS Indio agrees J

vehicles
on
an

to provide water

to SSG street

sweeping

needed bases as
terms and

IERP SSG and Indio desire to establish the Y 4 AS are applicable tca this Memorandum of Understanding

conditions which

UW TT 3 FOT R
I

the

parties

hereto agree as follows

OP WORK SCUPE
L se of Iydrants 1 fi Zndio agrees to allow SSG to use its wafer hydrants for the purpose of needed basis SSG s street sweeping vehicles on an as refilling SSG agrees to
use

only approved hydrant wrenches and will use only pre

on

approved air gap equipment

2 1

all street sweepers

Report of Usage
a

SSG agrees to submit a monthly water usage report to Indio by the last day oad will ofeach month Load counts will be reported to Indio and each Z

be considered

report

4 cubic feet of usage Upon receipt of the water usage 29 from SSG Indio wilt submit an mvo ce to SSG within thirty 30
as

days
3 I Rate of Water and Submission of Payment 50 p er hundre cubic feet o to p ay 52 later used and will to Indio of remit payment within ih rty 30 days receipt of an invoice

SSG
s

ees

o
5

c
i h

W r

T
z

This shall become effective on the date and year first herein above agreement appearing and shall continue for a of three years unless sooner terminated as
provided in this agreement
NERrJH1C y V
r
s

he street sweeper trucks supplied by z SSG shall remain the property of SSG during the term of this agreement The water Indio

remain
4

the property of Indio

hydrants supplied by

shall

during

the term of this Agreement

ZOR REpAT

ACEMENT O EOUII 1ZEPL IylEN7

During

prevent

ke all necessary precautions to Agreement SSG will t damage to any Indio acilzties SSG vrill reimburse Indio for any damage caused by SSG personnel this does not include normal wear and tear damage

the term of this

MAGE TO SS EQ A 1 I EI 11 Indio agrees to pay SSG for all damage caused to SSG vehicles caused by unxnaintained Indio property Ilnmaintained y shall be defined as traff c t proper counter hoses which are not properly noticed or identified 8 hours prior to their sstreets hydrants which are placement in Indio inoperable or malfunctioning shall be considered unmaintained property

sloN o coNS Excl Ar trENT s A

eitherparty shall be liable N
special damages arising
performance hereunder
7
out

the other for any incidental consequential of or in connection with this Agreement or
to

or

TERMINATION oR CONVENIENCE

Either party may terminate this Agreement

en notice tivrit
to

the other party

orlndio eitherparty shall

NCJTIGE

make arrangements to discontinue services

upon giving thirty X30 days advance upon issuance of notice of termination by SSG

R4S w

ermipnation of than A gdement I

a

other

p ursu nt

communicabons

g iven in the folio wing

required during
manner

to the provisic rY set forth above and any ofthis l administration agreement shall be
1 n

To SunLine

Berryhill DirectoY Regional rograms

Jimmy
S

HarryOliver Trail Thousand patens CA 92276 3456 760 343

505 32
To Zndio

Alex Meyerhoff Manner

City of Indio
O Drawer 1788 P 100 Civic Center MaII

Indio CA 92202 6500x528 760 342

Any party wh4
as

desires to

its address for notice may do change

so

by giving notice

set

forth herein

IP S RELATIO
to create the legal relationship of othing in this Agreement shall be construed I other relationship between SSG and Zndio joint venture partnership or any

10

NOrIWATVEIZ
a waiver aiver of any breach or default hereunder shall not constitute continuing either of the same or another provision of or a waiver of any subsequent breach

this

Agreement

1l

T DIFICATIOI MC
o 1

waiver alteration modification or termination of this Agreement valid unless made in writing and signed by the authorized parties
GOVERNING LAV

Il be sha

12

The

interpretation

and enforcement ofthis agreement shall be governed

by the

Laws ofthe State of California

13

AMBIGUITIES

and have agreed The paz ties have each carefully reviewed this Agreement Ia ambiguity shall be presumed to be construed against of this 4greement 2 n ter
either

to

each

party

i COAST AIR QUALCTY MANAGEM ENT GISTRIOT ri3 SOt

21865 East Copley Drive
r

Pcrntit

Diamond Bar

GA 91765

1T ilYJ tu
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Jl

z CONS

P Tj UC
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E A R
X 3X t

A fN 27962
app 1

rTA 3 SK r j S r ir tf tj 4 p 3 r r e aAc L f r e i f lY s rny T y ti f or ngcs la1 h c crship yn bsw a lI5lIl2t AID simovcd cquipmcnt thc sYkfiirilcss c rcncwcdf must it pcrm VS F i o w s v t y i ti J F r T nn ry F a fiwi a yl t giZ i r F t d tI i J t e Y r ar y r Lr iir c a istrict I bc eoratact 1H s tic 7is 3i Ic Ru nd o expirat 1 t oayy n by iYc rcc t tluog fcc b thc zcncwal i annua for t L1 h1 fa J1 1 9 5 r c r t 1 a C yi s i 1 K v c C y i i1 d Y r Y tR s C r a a C I i 1 y f li r M 4 I i T tG pC N t4 j y 1 r i V i y 4 JY yr j M s j a l 3 j v a xa rw L wSnia i V u I c i 7 k y t i x i wT 1 YTS r lllril M V t r 1 7 4j ra 7 Y w 1YY r X v i Y 4 S s
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Legal Owner or Operator

iD 00 868 INDIO

CITY PUBLIC

WORKS DEPT

ATTN SAM MIZELL PLO DRAWER 1788

TNDIO

CA

1788 92202

Equipment

Location

01AVENUE 45 1 83

INDIp CA

92201

Equiliment Description
WELL rr 3 A CONSISTING OF 3

ENGINE CATERPILLAR SPARK STROKE CYCLE RICH BURN 6 CYLINDER XGNTTION FOUR MODEL 3306B 145 BHP NATURAL GAS FIRED DRIVING A WELL
Pt3MP

7NrERNAL COMBUSTION

SINGLE STAGE CATALYTIC CONVERTER EMISSION CONTROL

SYSTEMS

1606 WITH AN ECS AIR FUEL RATIO tECS MODEL RC

MODEL 2002 1

CONTROLLER

Conditions OPERATION OF THIS EQUIPMENT SHALL BE CONDUCTED IN ACCORDANCE WITH ALIT DATA AND SPECIFICATIONS SUBMITTED WITH THE APPLICATION UNDER WHICH THIS PERMIT IS ISSUED UNLESS

OTHERWISE NOTED BELOW

BE MAINTAINED AND KEPT IN PRbPERLY
GOOD

iIS EQUIPMENT SHALL I

OPERATING

CON7JTTION

AT ALL TIMES

THIS ENGINE SHALL BE FIRED

XLUSIVELY ON NATURAL GAS THE NATURAL GAS SUPPLIED ENGINE SHALL NOT EXCEED A CHLORINATED COMPOUNDS CONTENT THIS TO OF 10 PPM OR A SILICON CONTENT OF 1 PPM THE SULFUR CONTENT OF THE FUEL NOTEXCEED JO PPM AND SHALL COMPLY SHALLL

ISTRICT RULE 431 I WITH TCHEyER 1i

L

LGUI A C Y I AS ATED G O EN D SULFIDE

IS MORE STRIN GENT

4
w a
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FUEL O I AIR T H IS EQUIPMENT SHALL BE EQUIPPED WITH AN AUTMATIC RATIO CONTROLLER APPROVED BY THE P XECUTIVE OFFICER w
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OXIDES

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OF NITROGEri

NOX
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EMISSIONS
k

SHALL I ICaT EXCE ED 1 Q 7 BHP GM

V

ay

SOLITN COAST A1R C2UAI 17Y MANAGEMEt iT T I DIST

21865East

u s

CopCey Dave

t pecan o t

Diamond Bar CA 91765

322X D

T M R JP O CONSTR UC
f w

ERA P
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AfN 279
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v r i ijiitl T r f k t t L r S w 4 y v I i fii c zss iir K y i i

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6
7

REACTIVE HYDROCARBONS CARBON MONOXIDE

IC RI

EMISSIONS SHALL NOT EXCEED 31 GM 0 IR I BHp

s

CO EMISSIONS

ALL NOT EMCEED 2 SI 0 GM iR I BHP

t

T E MPERATURE INDICATORS MT JST E INSTALLED DOWNSTREAM AND CATALYST

i

M OF THI UPSTRBA

THE

TEMPERATURE

iIMUM OF 700 DEGREES MI

0 3

OF THE EXHAUST GAS ENTERING THE CATALYST SHALL PE A

FAHRENHEIT

TIME OXYGEN CONTENT OF THE

EXCEED 7 0PERCENT ON A VOLUME BASIS

1

GAS ENTERING EXHAUST

THE CATALYST

SHALL

NOT

THE FUEL TO RATIO SHALL BE CHECKED A 1 E EKLY TO ENSURE TI TAT

THE tAN1rJFACTURER SPECIFIED OXYGEN CONCENTRA I T ON FOR OPTIMAL CATALYST EFFICIENCY IS MATNTAINEI7
IZ ALL RECORDS

REQUIRIED

BY THIS

EPLACEMENTS HOURS OF OPERATION RESULTS OF EMISSION T

r1ATNT N I ED P J F 4 V0 RYEARS
REQUEST
AND I DE AVAILABLE TO r

PERMIT

SUCH AS

MAlrtTENANCE RECORDS

T ETC SF TES ALL

FT E hrS

TE EXECt3TVE OFFTC T ERL3 PON

NOTICE
IN

ACCORDANCE WITH RULE 2A6 THIS PERMIT TO E OR COPY SHALL PE POS TED ON OR T OPERA WITHLN 8 METERS OF THE

EQUIPMENT

THIS PERI DOES NOT AUTHORIZE THE EMISSION OF AIR CONTAMINANTS IN EXCESS OF TH LOWED BY DIVISION 26 OF THE HEALTH AND SAFETY CODE OF THE RULES OF THE THE STATE OF CALIFORNIA OR AIR QUALITY MANAGEMENT TIIS PERMIT CANNOT BE RICT DIST CONSIDERED AS PERMISSION TO VIOLATE EXISTING LAWS ORDINANCES REGULATIONS IJTES OF OTHER GOVERNMENT STAT AGENCIES

OR

rM

r
w

ti

EXECUTIVE OFFICER

y
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rZ Y

MENT N COAST A1f QUAlJ7Y ANAG SOUI i f amorid Bar CA 9176 5 East sopSey Drive 21865
t

RICT 5 D
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Pcrmit t o
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A z7asao t r
C YA

1TTO CON U M R
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N r f tii qai Ff r AT RtI i w f U l t I i Vr s n w o angcs r d znovr crslugw cquipuicnjis Y Z U unlcss t Wi r tt k bercncwc tbc isinitiaT trmit mus h I e 1 a c fY W p C v t cr i st G O act t ntCr ri stnct otY a i Y s on tC nat v 0 c i 1 y xp u n a a1 n r wal 1 f2Sat t f for lir it Z r CCGl b CL x th F r 4 a e Y n f 1 f C d x t wc yx y iP v
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aI Owner Le
ar

TD 002865 INDIO

O erator

CITY

PUBLIC WORKS DEPT

ATTN SAM MIZELL 788 O DRAWER 1 788 1 202 TNDIO CA 92

YENUE 45 TNDIO n 3 101 A iEquipment rrcat

CA 92202

Equipment Descriptian
OIR 1BOOSTER S RESER

IMP CONSISTING OF P 2

ITED FOUR SHA MODEL F1L9 G SPARK IGr INTERNA COIviBUSTION ENGINE WAUK L VZl A T DF tJFt GAS TRED IG I NA IS7 BHP RICH BURN AL STROKE CYCLE SIX CYLINDER
BOOSTER

PUMP
SYSTEIKS

L
1

SINGLE STAGE CATALYTIC TER TER CONTROL t C02 EMISSION 1 12 EMS WITHAN FUEL RATIO CONTROLLER MODEL20 AIR

EIvIS MODEL RC

1606

ALL DATA t H I 4TI ACCORDANCE CONDUCTED Lt AI BE S OPERATION OF THIS EQUIPMENT L DER U2 TT ViTHICT IS PEA IS HE APPLICATION D SPECIFICATIONS SUBMITTED WITH T j S OTHERWISE RIOTED BELOW ISSUED tT
r t

KEPT III GC90D SNED A I ND Y THIS EQUIPMENT ST CALL BE PROPERLY MA1

t r

ING T OPERA

CONDITION AT ALL

TIMES
d

IATU7 I L GAS T TE A THIS ENGIISE SHALL BE F TELY ON NATU II2EI EXCLUSI COMPOUNDS TENT COI NOT EXCEED A CHLORSNATED T AT SUPPLIED TO THIS ENGINE SF
OF Y PPM THE SULFUR CONTENT OF THE FUEL T 0PPM OR A SILICON CONTr 1 OF SHALL COMPLY CUI i CA ATEDAS YDROGEN SULFIDE SHALL NOT EXCEED 0PPM AND F

GAS

WITH DISTRICT RULE

4 THIS

NT IGE 431 IS MORE STRIi FTEVER iIC

AIRTO FUEL RA ITO

AN AUTOMATIC EQUIPMENT SHALL BE EQUIPPED OFFICER EXECUTIVE BY APPROVED TTT CONTROLLER

i
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ti Y
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1 1

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XBJES OF
IP it

02D B GR H S EMISSIONS N I tJTERCEED A IOX L I rTITROGEI m wt q

a
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1
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ti h n r it

HI

w r tlI fJ e 1J lMvH 1n w Y A i Y IriIw w v d t4 yt1 s U V Y V r

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e

H COAST AIR QUALITY tvtAJ R SOI iAGEMENT 1STRIGT 2i 865 East Copley Drive Diamond Bar CA 91765

Pcrmft

No

b69902 R

MLT 7 JE OZ JNST C T C7Cj01 T tA

ks Cr t t3 tj yf y 1 T i YC ait h r yr Y b lry ks f 1 r O s t i F ti s 7 t r I i Y f t s tiil f t Sri Yy rya F a a h i t Y w ar J i rC ra s S y i t t r e 3 1 c r i Jr s 4 r urrTo R o s sTRLTCT of TE ATION IU CONTI OFE s 1 w u G r 4 ja y S 1 y aCf f s1 w 4 a f 4 fu t s r XV aw Y hc 7 f q J r i ieJ C M y rr i r I y J Y7 a ijr n t r S T ft Lr4 F X T t 1 R vrT a2 7 t P sC e t sx rw y w t sva xaca S K t 3 a 1 L i Z S r x s a y i tr S x k yje n ur lfvl r y t w q t 7 t l d s r E r 7 fte i r 4 f L i t a t a n rt i 4 b y r r iF yr 7 J 3 y Y y r1 l a f y g K w lP r c X A M 1 Y i ts n t i K s r j S fxs 4 C ic1 yC 1r t s e iN fsi tl r r y fl t t a Yt raf 2 f n lt r r 6j r tFw l S a1 4 yLi t q 1 i 1 Y t rt at 7 Rr7r
r

711r r I k yw y y r i2 f w yi
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v ro

r e c a ws J r ti M v r

Y 1s

RECATIVE CXDROCARBON CARBON MONOXIDE

RHC

EMISSIONS I SFNOT EXCEED 0 L 29 GROBHP IR I

CO

MISSIONS SHALL RIOT EXCEED 2 0 GR jBHP IR I

TEMPERATURE INDICATORS SHALL EE INSTALLEIJ DOWNSTREAM AND ALYST T CA 9 THE

AM OF UPSTRE HE I

URE OF TI T TEMPERA IE EXHAUST GAS ENTaERING THE CATALYST SHALL BE A Qv7 OF t 7 M3i UM 0 DEGREES FAHRENHEIT
THE OXYGEN CONTENT OF HE AS ENTER Ca TI TN 3E CATALYST SHALL NOT EXCEED 0 7PERCENT ON A VOLUME BASIS
EATR I13 JELRA FT TO TZO SPELL BE CHECKED rEEKL J ENSURE T T Y K THE

0 3

AUST X

TRERSPECTlrIE1J OXYGEN CONCENTRATION FOR OPTIMAL CATAL t I C NUFA Mt XSZ JET TS MAINTAINED THIS MAINTENANCE SCHEDULE MAY FE CI CIENCY GED UPOi IA i APPROVAL OF THE rIVE XECU OFFICER P
2

ALL R1 COIZ DS REQUIRED

BY THIS

CEhIENTS HOURS OF OPER REPLA TION RESULTS OF EMISSION Ir 7 L r ED FQR AT LEA TWOY ST 2S Ar Q t DMADE
PON F 3 Y EQUEST

PER SUCH AS MAINTENANCE RECORDS 2viTT EQUIPMENT

I TFS ETC
L SHAI BE

IT TO r A E I r t rS rF rCT PERSONNEL

THIS PERMIT TO

CONSTRUCTjOPERATE

D69902 SUPERSEDES PERMIT TO R D69902 ISSUED 2j17f X993 NOTICE

CONSTRUCTjOPERATE

IN ACCORDANCE WITH RULE 8

206

THIS PERMTT TO

IEOR ppERA

COPY SHALL BE POST ED ON OR

v

RS h

OF TI3E EQUIPMENT

THIS PERMIT DOES NOT AUTHORIZE THE

IN EXCESS OF THOSF EMISSION ALLOWF BY DNlSION 26 OF THE HEALTH AND SAF D Y COVE OF THE STATE OF CALIFORNIA OR I iE RULES OF THE 1 ASR QUAI ITkNAGEI tA I fENT DISTRICT THIS PERMIT CANNOT BE OF AIR CONTAMII tANI V

CONSIDERED AS PERMISSION TO VIOLATE EXISTING LAWS ORDINANCES OF OTHER GOVERrtME2 IJ I STA S T TAGENCIES

REGULATIONS fJR

C lJ

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1993

EME ass RicT sows coasT AsR Qu uA 917E 5

2865 East

Pcrrnit 2 0

Copley

Dave Diamond Bar CA

6990z I R

A 274544 N
y

JERATI ITTO O ERIY

v

aM l C L V wnyG 4 3 1 rG y s y t r Y i T t CSI fa Y j t l ti FV tii L r 2 i iL t unlcssihc ALLY i4 berenewed s mu

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r lr i I a 1 y x f S MK rJ Y t s y 7 r a l M F t i r C 3 1 r t I s i5 1 t1 r 7tT t i Y b changes o rncrship bra Yt s uutlal Th crruit V 1 y s a Y F G Y 17 t 7 a f a r 5e a t i K x Eld tT stn Da x ct ry aGt thc da c aratzon not rcccavcd by wal n r Ru1cB07 c hc for annual t C 2 3V r C If rz a b the lling ti i l X3LJ l r w stt iCr i n t NVi 7 t6 i Y G F 1yd 7c 4 y c T 7 C f K P i irnj wCS x C t t c r F f i s i r t r CeM t b c i y T d f r j S x e
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Leal Owner
oa Operatoa

ID 442868

INDIO CITY PUBLIC WORKS DEPT

O DRAWER 1788 P

TNDIO CA

1788 92202

Equipment Location

07AVENUE 4S 1 83

TNDIO

CA 92202

r
t

Equipment Description RESERVOTR 1

1 BOOSTER PUMP

m2

CONSISTING OF

STROKE CYCLE TER COMBUSTION ENGINE WA I IZ NAL SHA SPARK IGNTTION FOUR CTKF V7NG A 1 GAS FIRED DT RICH BCJRN 6 CYLINDER MODEL F1197G 157 BHP NATURAL iMP ERPt I HOOS
SINGLE STAGE CATALYTIC

I646 WITH AN ECS

CONVERTER EMISSION CONTROL SYSTEMS ECS MODEL 1 802 FUEL RATIO CONTROLLER MODEL2 TR fi

RC

Conditions
w

CONDUC LIST ACCORDANCE WITH ALL DATA TION OF THIS EQUIPMENT SHALL BE TED OPERA I TIS PERM TI IS IT ITEDWITH THE APPLICATION UNDER 1HICI AND SPECIFXCATIONS SUBhI ISSUED UTIL ESS OT7 ERWISE NOTED BELOW

THIS EQUIPMENT SHALL BE NT PROPERLYMA AND KEPT IN GOOD OPERATING INED CONDITION AT ALL

t TIMES

THIS ENGINE SHALL BE

JRAL GAS GAS IT IE NAT EXCLUSIVELY ON NATtSRA L I ENT LNOT EXCEED A CHLORINATED COMPOUNDS C02 AZ SUPPLTED TO THIS ENGINE SF OF THE FUELy OF 10 PPM OR A SILICON CONTENT OF 1 PPM THE SULFUR CONTENT S TED AS CALCULA HYDROGEN SULFIDE SHALL RIOT EXCEED 4a0 PPM AND SHALL COMPL
t

FIRED

4VHICHEVER IS MORE STRTNGEI 1 IT ITDISTRICT RULE 431 4 I

4

rUELRATIO TO L BE EQUIPPED WITH Alai AUTOMATIC AIR I THIS EQUIPMENT SI

CTROLLER APPROVED COi

t i 1

BY THE
Y h

ECUT OFFICER T E S
i

Y e ltt

Hi

5
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THE
y

SHALL NOT EXCEED 59 EXHAUST GAS EXTdZNG THE CATALYST EACTT R OR GAMIC GASESa C3R 2 440 PPM CARB O ROGEN 334 PP NTr
rw

r tt v PPM DES OXT OP

mot

ti

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MEASURED BY VOLUME CORRECTED TO ZS PERCENT OXYGEN ON A DRY BASIS ND AVERAGED OVER IS MII ES I CiJ TEMPERATURE INDICATORS SHALL EE CATALYST
7

ISTALLET Z70WNSTR Ii

AxVD

M pF TEE A UPSTRE

THE TEMPERATURE OF THE EXHAUST GAS ENTERING T iE CATALYST SHALL BE A I MUM OF 70 DEGREES FAHRENHEIT THE OXYGEN CONTENT OF THE PXHALTST GAS ENTERING THE CATALYST SHALL 2 tOT XCEED Q P 7PERCENT ON A VOLt fhriE EASIS THE AIR RATIO SHALL I3E CHECKED WEEKLY TO ENSURE THAT FLiEL TO THE

ANUFACTURER SPECIFIED OXYGEN CONCENTRATION M FOR OPTTMAI CATALYST FFICIENCY IS rIAINTAXNED THIS MAINTENAI E ICE SCHEDULE MAY BE CHANGED UPON OVAL OF THE EXECUTNE OFFICER FR AI
10

L RECORDS REQUIRED BY DISTRICT RULE AI

JF L BE MAINTAINED FOR A ETC SPCA3 P LEAST T 10 k IARS t1AIT TO D ISRIC A E AB I PER SOI JPOI REQra Y FEL I J Sra 3

2 10 II ND T A IIS PERMIT SUCH AS ICE RECORDS EQUIPMENT IA 1TE Ii MA REPLACEMENTS HOURS OF OPERATION RESULTS

EST I EMISSIOI

ND MADE

IS PER T IIT TO OPERATE D R 6990Z SUPERSEDES PERMI TO OPERATE X

1

69902 7SSUlED I

a
a f

z7 1993

to

1V

ANCE WITH RULE 2fl5 THIS PERMIT TO OPERATE CJR CFiIN 8 R I Y TERS OF THE EQUIPMENT E
i1

COPY SHALL BE POSTED ON OR

a

THIS

OF TI3 SE AIBY DIVISION 26 OF THE F LOWED EALTH AND SAFETY CODE OF THE STATE t OF CALIFORNIA OR LTFS h2ANAGEMENT DISTRICT I QUA HTS PERMIT CArINO BE I CONSIDERED AS PERhiISSION TO VIOLATE EXISTING LAWS IOrIS tOR AT REGUL STA OF OTHER ICIES NTAGEI GOVER THE RULES OF THE AIR

PERMIT DOES RIOT E fTHORI THE EMISSION OF AIR I A MiNfu IN EXCESS j aA ON7 S

ate

ai

NCES QRDINA

EXECUTIVE
r

OFFICER
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INDIO CITY ATTN SAM MIZELL O DRAWER 1788 P

PUBLIC WORKS

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CA 92202 8 17

Equipment

Location

83 0 1 1AVENUE

45 INDIO

CA 92201
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Equipment Description
RESERVOIR B 1 OOSTER PUMP

3 CONSISTING

OFD

INTERNAL COMBUSTION

STROKE CYCLE RICH POUR 1S7 BHP NATURAL GAS

ENGINE WAUKFSI IA SPARK IGNITION CYLINDER MODEL BURN 6 FI197G

DRIVING A BOOSTER PUMP

FIRED

SINGLE STAGE CATALYTIC SYSTEMS

CONVERTER

EivIISSION COI iTROL

702 2 ERMODEL L CONTROLI

Conditions

ECS

MODEL RC IGa6 WITHAN ECS

FUEL RATIO ATR

OPERATION OF THIS EQUIPMENT SHALL BE CONDUCTED IN ACCORDANCE WITH ALL DATA AND SPECIFICATIONS SUBMITTED WITH THE APPLICATION UNDER WHICH THIS MIT ERIS I ISSUED UNLESS OTHERWISE NOTED BELOW

I HIS EQUIPMENT SHALL BE PROPERLY MAINTAINED AND KEPT IN GOOD OPERATING CONDITION AT ALL TIMES

3e

THIS ENGINE SHALL BE FIRED EXCLUSIVELY ON NATURAL GAS THE NATURAL GAS BUFFETED TO THIS ENGINE SHALL NOT EXCEED A CI ILOIZINATED COMPOUNDS CC ENT NT PPM OR A SILCON CONTENT OF 1 PPM THE SULFUR CONTENT OF THE FUEL CALCULATED AS HYDROGEN SULFIDE SHALL NOT EXCEED 400 PPM AND SHALL COMPLY WITH DISTRICT RULE IS MORE

OF 10

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UST GAS EXITING YST SHALL 2 CATAL 07C F d XCEED 59 PPM OXIDES F NITROGEN 330 PPM REACTIVE OIZC OR GASES NTC A 2040 PPM I RBOt IVi0I C 10XIDE SEASURED BY 1 EITO 15 PERCENT OXYGEN ON A DRY BASIS A ECI VOLUME CtJRR
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TEMPERATURE INDICATORS MUST BE INSTALLED CATALYST

THE TEMPERATURE OF THE EXHAUST GAS MINIMUM OF 7pp DEGREES FAIiRENHEIT

NSTREAM DO
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OF TI IE

ENTERING THE CATALYST

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THE OXYGEN CONTENT OFTHE IAUST GAS ENTERING H I X E T E CATALYST XCEED 0 SHALL NOT 7PERCENT ON A VOLUME BASIS E ASR FUEL RATIO SHALL BE CHECKED TO WEEKLY TO ENS URE THAT THE vUFACTURER SPECIFIED OXYGEN T CONCENTRATION FOR OPTIMAL ICIENCY IS MAINTAINED THE E MAINTENANCE SCHE r7ULE MAY BE CHAN APPROVAL OF THE EXECUTIVE iED tJPOi I OFFICER

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ALL RECORDS

BY THIS PERMIT SUCH AS MAINTENANCE HOURS OF RESULTS OF EMZS OPERATION MAxNTAINED FOP AT LEAST TWO k EARS AND MADE AVAILABLE TO TPON REQUEST I

REQUIRED

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RECORDS EQIJIPME I 1

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BE

NOTICE

NCEYITH RULE ACCC3RDA 2p6 THIS PERMIT TO OPERATE OR THI2 S METERS OF THE aCOPY SHALL BE POSTED ON OR EQUIPMENT
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EMISSION OFAIR

CONSIDERED AS PERMISSION T BE TO EXISTING VIOLATE LAWS ORDINANCES REG ULATIONS STASES OF OTHER

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EjuiPment

Description
NG OF CONSISTT

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ENGINE CATERPILLAR SPARK IGNITION FOUR STROKE CYCLE RICH BURN 6 CYLINL7ER MODEL 3306B 145 BHP NATURAL GAS FIRED DRIVING A WELL

TNT7RNAL COM3USTION

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1606 WITH AN ECS RC

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CONTROLLER
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EQUIPMENT SHALL BE CONDUCTED IN ACCORDANCE WITH ALL DATA SUBMITTED WITH THE APPLICATION UNDER WHICH THIS PERIviI SPECIFIGATIONS ANI T YS ISSUED CTNLESS BELQW Y OTHERWISE IgIOTED
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TEMPERATURE INDICATORS SHALL

CATALYST
THE

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URE JF THE XHAUST GAS T TEMPERA ENTERING IwI OF 704 I3EGREES MINIML FAHRENHEIT
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ALL RECORDS RE 7 QUIREI BY

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CONCENTRATION
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MAINTENANCE RECCIRDS EQUIPMENT 7N RESU I OPERA S OF EMISSI tTEST ETC SI C E riAE I AL 3D I EARS IO BLE IEXECUT L AV T C I E CJFFiCIER tJPC1N

THIS

PEFZMIT

NOTICE

INACCORDANCF WITH RULE 2Q5 THIS

8

4
PERMIT TO OPERATE OR COPY SHALL BE

TERS OF THE EQUII NT ME

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THiS PER MIT DOES NOT AUTHORIZE LOWED BY A I7NISION 25 OF THE

THE EMISSION OF

COIN
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Y INDIO CI1 ATTN SAMh1 R IviIZELL O DRA P ER 1788

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INDIO
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CA 92202 17
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equipment

Location

CROWNWAY ST INDIO MONROE

CA 92202

Equipment Otion escri I

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Y

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BOOSTER PUIviP n 2 CONSISTING

F C

ERNAL COMBUSTION I 3N

STROKE CYCLE RICH FOUR

ENGINE WAUKESHA SPARK IGNITION 97G BURN II CYZ MODEL FX1 6 DER

57BHP NATURAL 3

GAS FIRED DRIVING

ABOOSTER PUMP

GLE STAGE CATALYTIC S

CONVERTER EMISSION CONTROL IvIS ECS MODEL RC SYSTF 606 WITH AN ECS AIR 7 FLJEL RATIO DEL M 3 2002 ER CONTRQLL

TH ALL DATA CONDUCTED IN ACCORDANCE iVI PERMIT IS UNDER WHICH SUBMITTED WITH THE THIS ANTS SPECIFICATIONS APPLICATION J Y NOTED ISSUED UNLESS OTHERWISE BELOW r frN y ti 4 OPERATION OF THIS EQUIPMENT SHALL BE

is

THIS EQUIPMENT
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SHALL BE PROPERLY MAINTAINED

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CHLC COMPOUNDS CONTENT RINATED HI FUELy OF CONTENT IPPM THE SULFUR OF 7 0 PPM OR P SILC A I CONTENT OF T R 400 PPM N J SHALI C F EED OT N A D COMPLY LL tA SI CULATED AS HYDROGEN I SULFIDE x R DISTRICT RULE IS IGENT STRII IHICHEVER MORE 1 431 1TTH Z i w y fP C rcm r s
SUPPLIED TO THIS ENGINE SHALL NOT EXCEED A
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EASURED B VOLUIviE CORRECTED TO IS S 3ti

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THE E I MPERATURE OFTHE EXHAUST GAS r ENTERING TI IE CATALYSTS LL BE A i t7MU MII 700 DEGREES FAHRENHEIT OF
t

OXYGEN CONTENT QF THE XHAtJST GAS EN P ERING THE CATALYST SHALL I EXCEED 0PERCENT ON A tOT N 4jOLUME BASIS
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F A CTURER SPECIFIED OXYGEN IONFQR I CONCENTRA ICIENCY IS MAINTAINED THE I EF MAINTENANCE SCHEDULE MAY BE PROVAL OF THE EXECUTIVE A OFFICER
10 L AI RECORDS

FUEL RATIO SHALL BE CHECKED O

WEEKLY TO EN

CATALYSTe OPTIMAiL
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CHCANGED UPQ N

REQUIRED THIS MIT BY ER SUCH AS MA I TCE RECORD ENAI 3Z TI iOUR OF OPERATION RFSUL I GE2 S A REPI ENTS TS OF EMISSION
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TWO

ENT

YEARS AND

TESTS ETC SHALLBE MADE AVAILABLE TCO DISTRI CT EL PERS02

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INACCORI7ANCE WITH

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RULE 206 THIS PERMIT TO OPERATE THE EQUIPMENT

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ATTN SAMMY R

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P DRAWER 1788 Q 1788 INDIO CA 92202

Equipment Location
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Equipment Z escrirtion
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RECORDS BY REQULRED THIS PERMIT SUCK AS MAINTENANCE RECORI3 HOURS

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ST INDIO CA 92202

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OPERATION OF THIS EQUIPMENT SHALL BE CONDUCTED TN ACCORDANCE VTTH A LDATA AN S D ECIFICATIONS SUBI iITTED WITH THE APPLICATION UNDER WHICH TI IIS PERMIT IS
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NOT RIZE UTHC THE EMISSIOI A t IR II A F M A CON7 I P t TS INA EXCESS OF THOSE ED BY DIVISIOI i LO I 26 OF THE HEALTH AND SAFETY CODE QF THE STATE OF CALIFORNIA OP THE OF ULES THE AIR QUALITY MAIMAGEMENT R

E DOES 7E

rI I CA IOT TVIOLATE EXISTING LAWS ORDINANCESREGULATIOt I1I MISSI PER iSOR sTATUrs OF oTHER GOVERNMENT
CONSIDERED AS
BE

DISTRICT THIS PERMIT

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tit i t r 1 d10 zYT

SOUTH COAST 21865 East

A1

MANAGEMENT DISTRICT i71 UA

Drive Diamond Bar CA

Copley

91765

t RUI 1J T CQNiJ ELt1Y

Granted

as

of

10 4 1996
3 IU OGG4

r alOwn Le
or

perator

INDIO CITY
VER 1 788 PDRA O 8 17 INDIO CA 92202

Equipment

Location

191 GARDEN ST 2

INDIO

CA 92202
r

Lcription E s D iPment
ENGINE CATERPILLAR MODEL 3306 SPARK IGNITION NATURAL GAS T 145 B P H UELED SIX CYLINDERS RICH BURN FOUR CYCLE NATURALLY ASPIRATED RATED A A STAGE OF SINGLE VI2 BOOSTER PUMP N0 a D IG 2WITH A NSCR SYSTEM CONSISTING
CATALYTIC

2ISAL COMBUSTION INTE

CONVERTER JOHNSON MATTHEY

MODEL ES HSA 4 WITH AN

ECS RATIO FUEL AIR

1 TROLLER MODEL 2002 CON

Conditions
1e DATA OPERATION OF THIS EQUIPMENT SHALL BE CONDUCTED IN ACCORDANCE WITH ALL AND SPECIFICATIONS SUBIvfITTED WITH THE APPLICATION UNDER WHICH THIS PERMIT IS

ISSUED UNLESS OTHERWISE NOTED BELOW

THIS EQUIPMENT SHALL BE

PROPERLY

MAINTAINED AND

IN GOOD OPERATING KEPT

CONDITION AT ALL TIMES

THIS EQUIPMENT SHALL ONLY USE NATURAL GAS AS A FUEL

FUEL TO THIS EQUIPMENT SHALL BE EQUIPPED WITH AN AUTOMATIC AIR VED BY THE EXECUTIVE OFFICER CONTROLLER APPRC
THIS EQUIPMENT SHALL COMPLY WtTH RULE 431 1 6
t

RATIO

ATEMPERATURE INDICATOR SHALL BE INSTALLED CATALYTIC CONVERTER

AND

EAZvi MAINTAINED UPST

OFTHE

THIS ENGINE SHALL OPERATE IN COMPLIANCE WITI 2 I RULE 1110

v

THE CATALYTIC CONVERTER TEMPERATURE A ND

EXHAUST OXYGEN

CONCENTRATION

LBE MAINTAINED WITHiN THE EFFECTIVE SHA

OPERATING RANGE OF THE CATALYTIC

CQNVERTER AS

SPECIFIED BY THE

MANUFACTURER

SOUTH COAST AIR C2UALiTY tvZANAGEMENT DISTRICT 21865 East Copley pave Diamond Bar CA 91765

PPticatioh
Yaffe 2

Nc

JERMXTfTO CONSTRUCT

HE EXHAUST GAS OXYGEN SENSOR SHALL BE T REPLACED EVERY 4000 HOURS OF

OPERATION
X0

THE TEMPERATURE OlF THE EXHAUST GAS ENTERING THE CATALYST SHALL BE A MINIMUM OF 700 DEGREES

FAHRENHEIT

1L

APPLICATIONS 311100 ANDjOR 311099

2

SOURCE TEST SHALL BE CONDUCTED TO DEMONSTRATE COMPLIANCE WITH RULE 2 11I0 THE TEST SHALL BE CONDUCTED ON A MINIMUM OF ONE OF TWO ENGINES COVERED BY

THE SOURCE TEST SHALL BE CONDUCTED ACCORDING TO RULE 111 2 0 SECTION

D fig l fA

13

HE SOURCE TEST RESULTS T SHALL BE SUBMITTED IN WRITING lITHIN 40 DAYS RTHE AFT SOURCE TESTIS COMPLETED IT SHALL INCLUDE BUT NOT BE LIMITED TO EMISSIONS RATE IN POUNDS PER HOUR GR HR AND PPMV AT THE INLET AND ttTLET OF THE P H B TERI COMBUSTION ENGINE FOR J IZ IAL NOX CO AND RQG

PERMIT TO CONSTRUCT BE NOTIFIED OF THE RATE AND TIME OF THE TEST AT LEAST TEN DAYS PRIOR TO THF TEST OR WITHIN A TIME PERIOD AGREED UPON BY TKE DISTRICT ENGINEER
THE METHODS USED FOR THE SOURCE TESTING SHALL BE APPROVED TN WRITING BY THE SCAQMD PRIOR TO THE TEST

THE

DXSTRICT

ENGINEER

THE ON IDENTIFIED

LL CA SP

X6

RECORDS SHALL BE MAINTAINED TO PROVE COMPLIANCE VITH COi1tDITIONS NOS 7 8 9 AND 14 TI IESE RECORDS SHALL BE RETAINED ON FILE FOR THE MOST RECENT PERIOD AND SI iALL BE MADE AVAILABLE TO DISTRICT PERSONNEL UPON REQUEST

Vt T R ry

Approval or denial of this application far permit to operate the above equipment will be made after an ins ection to determine if the equipment has been constructed in with the approved accordance plans and s ccifications and if the cquipmcrit can be operated in compliance with all Rules of the South Coast Air

Quality Management

District

Please This

notify ROY

OLIVARES

at

909 396 2208 when construction of istomP Iete equi P rnent

Permit to Construct is based on the plans specifications and data submitted as it pertains to the release of air contaminants and control measures or reduce air contaminants No approval or opinion factors in design construction or on safety and other c ccrning operation of the equipment is expressed or implied
1

This Permit to Construct shall e pis scn nonce of such intent to operate

ccmporary to Opecatc provided the a Permit Executivc Officer

is given prior

4
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3AST A1R C2UALTIY tvIANAGEMENT OESTRICT SOI G ITH 21865 East Copley Drive Diamond Bar CA 91765

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Nc 3Pplieation xxog9

ISTRUCT 3ECOI TO ZMZT

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denied or if the application is cancclled THIS This Permit to Construct will bccome invalid if the Pcrmit to Operate is ATE OF ISSUANCE unlcss an cxtension 3 FROM THE EXPIRE OriE YEAR TO COI JCT SHALL ISTR PERMIT
is

granted by

the Executive Officer

DORRIS

B M L I EY A
Officc Assistant

Principal rdo MB

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SOUTH COAST AiR OUA iTY

218fi5 East

AGEtviENT D1STRlG

Co P

iey Drive

Diamond Bar CA 91765

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INDIO CITY ATTN SAMMY R MIZELL O DRAWI P R 17F8

ID 066413

INDIO

CA

x78 92202

ti

Equipment Location

191 GARDEN ST 82

INDIO

CA 92202

Equipment l escri7tion
I

VOIR 3 EOOSTER ESER

PUMP 2CONSISTING OF

MODEL 3306 4 T 5 FHP NATURAL GAS RPJl EOOJT T P TNCrLE STA EIC C ATALYI C

ENGINE I CA F RpILLAR SPARK N7T70N FOUR TG STROKE CYCLE RICH

AL COMBUSTZOI I

FIRED

BURN 6 CYLINDER
DRI

A iG VIi

SYSTEMS E 16Q6 KITH AN ECS RC MODEL

CONVERTER

EMISSIfJN

LLER MODEL 2002 tTR COI Z

Conditions

CONTROI AIR RA FUEL IO T

AND

OPERATION OF THIS EQIJIYMENT SHALL BE CONDUCTED SPECIFICATIONS SUB MITTID WITH THE APPLICATION UNDER WH CH XSSLJED tTNLESS

NOTED BELOW IERWISE OTI

t

TY IS i PERMIT
IS

ALL DA

THIS

CONDITION AT ALL TIMES

r

EQUIPME NT SHALL BE PR 4PERLY MAINTAINED

T

AND

KEPT IN GOOD

TIN G A PER

HIS ENDINE T

FIRED EXCLUSIVELY ON NAT B CALL SF LfRAL PHIS C X PLIED SLTI

OF Y PPM

SHALL WIT D i F ISTRICT RULE431 ICIEVER IS MORE 4V

e
r

CONTENT LCULA AS HYLUROGEN A C ED SULFII

r r
ti A

OR

SILICON A

L AS L NOT EXCEED A CHLORINATED ENGINE AI COM OUP OF 1 PPM THE

St1LFUR COI TENT OF I i THEFUEL NOT EXCEED 400 AND SHALL COMPLY

CONTENT

SYRINGE
P

PPM

L J z f

r T UIP E riLNT N aLL QUIPPED tlTf IANAUTOMATICAIR FUEL TO ROLLER APPROVED I i COI RATIO CH BY E EXECUTIVE w r t e Y A FI C ICER tiw j Crfi y ar
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SOUTt COAST ASR C2UAL4TY vAGE i 1TiSTRICT v1E 21865 East Capiey rive Di rd fat CA 91765 rre

Pcrmit Igo

D73X77

MzTTO

uCTI CNST

A 279628 N

2 T ITRQGEN 330 PPM REACTIVE ORGANIC GASES OR 2000 PPM CARBON MONTOXIDE EDBY VOLUME CORRECTED TO iS PERCENT OXYGEN ON A DRY BASIS AND R MEASU
AVERAGED OVER 15 MINTUTPS TEMPERATURE INDICATORS SHALL BE INSTALLED DOWNSTREA IvI AND UPSTREAM CATALYST
THE TEIviPERATURE OF THE EXHAUST GAS ENTERING THE CATALYST IALL BE A SF NaNIMUM OF 700 DEGREES FAHRENHEIT THE XYGEN O THE NTTOF pE CONT X HAUSTT GAS ENTERING THE CATALYST SHALL NOT E u T Ci v bL i RCEI Y A VVLUlY1 AS1S O
t
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7

HE I OF

IEAIR T1 FUEL RATIO SHALL BE CHECKED WEEKLY TO ENSURE THAT THE TO MANUFACTURER SPECIFIED OXYGEN CONCENTRATION FOR OPTIMAL

EFFICIENCY IS MAINTAINED THIS MAINTENANCE SCHEDULE MAYBE CHANGED UPON APPROVAL OF TI IE EXECUTIVE OFFICER

CATALYST

REQUIRED BY THIS PERMIT SUCH AS MAINTENANCE ALL RECORDS RECORDS EQUIPMENT MENTS HOURS OF IZEPLACE RESULTS

ED PGR IAINTAI
UPON

REQUEST

OF EMISSION OPERATION CALL BE TEST ETC S AT LBAST TWO MADE AND E C ARSILABLE VATO 1 I DISTRIC PERSONNEL
r

NOTICE

1TrHI 8 TETERS QF THE EQtJIPME 4 r TI

CEWT TJA2v 1NACCOR IH RULE 206

THIS PERMIT

O OPERATE 7
w

OR

t e

BE POSTED COPY SHALL

1

OR ON

THE HEALTH SAFETY CODE J THE STATE OF CALIFOR A I N OR RULFS OF THE IE AIR QTJA T LITY MANAGEMENT DISTRICT THIS PERMIT CANI OT BE i L D AS PERMISSiONTO ISITJER COI TE EXISTING LAWS VIOLA ORDINANCES REGULATIONS OR S OF TUZ
STA
w

SPERMTI DOES NOT AUTHORIZE THEEMISSION ALLOWED BY DIVISION 26 OF AND

GFAIR CUN AMINANTS IN

EXCESS OFTHOSE

OTHER GOVERNMENT A CiENCIFS

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SOLRN CC3ASTAlR
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21 X65 East

QUALITY ti1A T iEt tAGEt STRIGT Copley Dr V e Diam and B ar CA g 17s5

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Granted I a e l Otiiner or Operator

INDIO CITY O DRAWER 1738 P INDIO CA 92202 78 1

as

of

10 4 1996
iU OGG4i3

nient Location Equi

nipment Description E

z9I GARDEN ST 82

INDIO

CA 92202
P

NAL COMBUSTION R xNTF

I BURN FOUR Z NATURt CYLINDERS RICI GAS CYCLE NATiJRAI LYASP bRIVING I30OSTER PUMP AT z45 B ViTH A NSCR SYSTEM CONSISTING OFA 1 3 N0 P H CONVERTER JO iNSON MATTHEY MODEL ES STAGE CATALYTIC HSA 4 WITH AN ECS AIR FUEL A ER MODEL 2002 I CONTROL R O Z z

FUELED

SIB

ENGINE

CATERPILLAR

MODEL 330

RATEDN

ATED SINGLER

i
r

andi C n tic ATION OF THIS EQUIFIv1ENT OPER SHALL BE

D AT

SUBMITTED WITH THE APPLICATION ISSUED UNLESS OTHERWISE NOTED BELOW

SPECIFICATIONS

CONDUCTED

IN

KITH DATA tpDyHCE THIS UND PERMIT

ALL H C IS

I THIS EQUIPMENT SHALL BE PROPERLY MAINTAINS D AND KEPT IN GOOD OPERATING GONnITION A7 ALL TIMES
a

THIS
THIS

EQUIPMENT SHALL

ONLY USE NATURAL GAS AS A FUEL

v

EQUIPMENT SHALL BE EQUIPPED ONTROLLER APPROVED BY THE EQUIPMENT SHALL

WITH ANA

EXECUTIVE

OFFIJCEOR

ATIC AIR FUEL TQ

1

RATlO

THIS
a

COMPLY WITH RULE SHALL BE

1 G31
OF TI IE

TEMPERATURE INDICATOR CA A T LYTIC

CONVERTED

INSTALLED AND MAINTAINED UPSTREAR

PHIS ENGINE
a

H
r

ALL

PE RAT E IN

OM PL IA

cE wITH RULE

a i
l

CATALYTIC CONV ERTE R TEMPERATU RE AND EXH A iA IaI BE SI a ONCENTR ATION IIN WITE MAINTAINED VE EFFECT THE RAT OPE NG RANGE O CONVERTER AS SPECIFIED CATALYT THE THE MA

THE

NF

THE

EXHAUST GAS

OXYGEN SENSOR SHALL BE REPLACED EVERY 4400 HOURS OF

OPERATION
HE TEMPERATURE OF THE EXHAUST GAS ENTERING THE CATALYST SHALL BE T A MINIMUM OF 700 DEGREES FAHRENHEIT SOURCE TEST SHALL BE Cnl1 EDTfl DEMONSTRATE COMPLIANCE WITH DUCT THE TEST SHALL BE CONDUCTED ON A TviINIMUM OF ONE OF TWO ENGINES

RULE

2 1110

COVERED BY

APPLICATIONS 311100

OR AND

311099

THE SOURCE TEST SHALL BE CONDUCTED ACCORDING TO RULE 1110 2 SECTION THE

AhTD

SOURCE TEST RESULTS

SHALL BE SUBMITTED IN WRITING I t THIN 40 DAYS AFTER THE

COMPLETED IT SHALL INCLUDE BUT NOT BE LI112ITED TO EMISSIONS RATE IN POUNDS PER HOUR GR HR AND PPMV AT THE INLET AND OUTLET OF THE P H B INTERNAL COMBUSTION ENGINE FOR NOX CO AND ROG
SOURCE TEST IS THE DISTRICT ENGINEER IDENTIFIED ON THE PERMIT TO CONSTRUCT SHALL BE NOTIFIED OF THE DATE AND TIME OF THE TEST AT LEAST TEN DAYS PRIOR TO THE TEST OR WITHIN A TIME PERIOD AGREED UPON BY THE DISTRICT ENGINEER THE METHODS USED FOR THE SOURCE TESTING SHALL BE APPROVED IN WRITING BY THE SCAQMD PRIOR TO THE TEST 16 RECORDS SHALL BE MAINTAINED TO PROVE COMPLIANCE WITH CONDITIONS NOS 7 8 9 AND 13 THESE RECORDS SHALL BE RETAINED ON FILE FOR THE MOST RECENT TV rO YEAR PERIOD AID SHALL BE MADE AVAILABLE TO DISTRICT PERSONNEL UPON REQUEST

Approval

or

denial of this

determine if the

equipment can
Please

application for permit to operate the above equipment will be made after an inspection to equipment has been constructed in accordance with t ne approved plans and specifications and if the be operated in compliance tivith all Rules of the South Coast Air Quality Management District
OLIVARES at

notify ROY

909 3 22051vhen construction G

of equipment is

complete

This Permit to

Construct is based on the plans spccifieaiions and data submitted s it pertains to the release of air contaminants and control measures or reduce air contaminants No approval or opinion concerning safety and other factors in design construction or operation of the is equipment expressed or implied
This Permit to Construct shall scree n lice of such intent to opCrate
as a

temporary

Permit

to

Operate provided

the Executive OfBecr is

given prior

nnn

is

SOtIi COASTAIR QUALITY IAGEMENT DiSTRIDT tvlAt 21 S65 East piey Drive Diarno Cr nci Rar CA 91765

p Plicati
X X XO p
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This ermit

become invalid if the Permit to Operate is denied or if the application is CONSTRUCT SHALL EXPIRE ONE cancelled T zS YEAR PROM T iE DATE OF J SSUA as granted by the Exccutiv Officer ICE unless an extension

to

Construct will

ERMZ TO T

DORRIS M BAILEY Principal Office Assistant

MAS DISTRICT 1T 4 COASTAIR QUALITY iAGEME Tl SOLI 1e 21865 C S E t ip t yti Drive Diamond Bar CA 91765

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ID 06613 INDIO CITY

ATTN SAIvINiY R MI2ELL

O DRAWER P

4 17

INDIO

CA

78 1 92202

Equipment

Locafinn

2 1 91 GARDEN ST

INDIO

CA

92202

Equipment

Description
a r

RESERVOIR 3 BOOSTER PUMP 3CONSISTING OF

w

INTERNAL CGMBUSTiON

ENGINE CATERPILLAR SPARK STROKE CYCLE RICH BURN 6 GNiTION FOUR CYLINDER MODEL 3306 T2TRAL GAS FIRED DRIVING A 45 BHP NA 1
z300STEi2 PUMP
t

SINGLE STAGE CATALYTIC SYSTEMS

CONVERTER EMISSION CONTROL

RATIO

I AN ECS AIR ECS RC MODEL 606 WITI 1 FUEL 1 TROLLER MODEL 2002 COiv
5 w L

itiQrlS COI1C

1
w

C P ERATION OF THIS EQUIPMENT SHALL BE CONDUCTED IN ACCORD ICE WITH ALL 41 DATA LAND SPECIFICATIONS SUBMITTED WITH THE APPLICATION UNDER WHICH THIS PERMIT IS
ISSUED UNLESS OTHERWISE NOTED
r T

BELOW

HIS EQUIPMENT SHALL BE PROPERLY IviAINTAiNED I

TIMES CONDITION AT ALL

IN GOOD OPERATING KEPT ANL

f
4

FIRED EXCLt1SIVELY ON NATURAL GAS THE NATUR L GAS A SUPPLIED T EXCEED A CHLORINATED COMPOUNDS CONTENT ND OF IO OR A PPM SILICON CONTENT QF PPM HE SULF T iJR CONTENT OF THE FUEL T t H ROGEN rCULATED ASXD CA EXCEED 400 PF DESHAL MPLY i SULF O I T ANI7 SHALL4C M WITH DIST RICT RULE 431 WHICHEVER IS M ORESTRINGENT i T e
THIS ENGINE SHALL BE TO THIS ENGINE SHALL
r s a

fe rs u rt w b

r
r

o
i

PROVED BY l HE EXECUTIVE CONTROLLER A OFFICER x

i
v a v

I3IS EQUIPt I N tE BE EQUIPPED WITH AN AUTOhR ALL SH FUEL RADIO ATIC AIR TO
9
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SOUTH COAST AlR QUAU Y MANAGEMENT dISTRICT

215f5 Easi Cc y C3rive diamond Bar CA 9765 pP

Rxo T

T o CONSTRUCT
6
y

D73178 x79529
a

iif w i 1 tY c x i s S 1 r l s Y 1 w wL tir c v

ew

330 PPM REACTIVE ORGANIC MEASURED EY VOLUME CORRECTED TO AVERAGED OVER LS MINTUTES

NITROGEN

GASES OR 2000 PPM

5 PERCENT OXYGEN 1

CARBON
ON A RY

E BOASIS
r

AND

T E MPERATURE INDICATORS SHALL T CATALYS

BE

INSTALLED DOWNSTREAM A ND UPSTR F AIvf OF TI iE

r

HE TEMPERATURE OF T THE EXHAUST GAS ENTERING THE CATALYST SHALL BE A MINIMUM OF 700 DEGREES

tHEIT FAHRE

THE OXYGEN CONTENT OF THE EXHAUST GAS EXCEED 0 7PERCENT ON A VOLUME

ENTERING

HE T

BASIS

SHAL L NOT CATALYST

THE AYR FUEL RATIC SHALL BE TO

rIANUFACTtTRER SPECIFIED OXYGEN

ROVAI OF TH APT E
ALL

CHECKED WEEKLY

TO ENSURE THAT TH

FOR OPTIMAL CATALYST EFFICIENCY YS MAINTAINED IIS TF NiA INTENANCE SCHEDULE M AY BE CHANGED UPON i ECtJT OFFIt h TVT ER

CONCENTRATION

UIRED BY THIS REC SUCH AS PERMIT A M S HOURS OF OPERA REPIACEMENI S tflF T ION RESUL T M ED FOR A I I A ST T F OY
1

RECORDS

UPON EQIJEST

RS AND I 2AIa V O L LET t A ISTC

r

CORDS EQUIPMEEN3 TEST ETC ON EM

SIBE I14LL

EL N ERS
S

NQTICE
TrI A CCC3RDANCE WITH
8 METERS OF THE TES PERMIT DOES

RULE 20G THIS

EQUIPMENT

PERMIT TO OPE RATE R COPY SHALL BE POSTED CON OR

ALLOWED

BY DIVISION 26 QF THE THE RULES OF THE AIR

CONSIDERED AS STATUTES OF OTHER

iOSE ENTAMINAN EXCESS Tk S I IAGEMENT DISTRICT THIS PERMIT IFOP hiAI QUALITY ANNO C NIA PERMISSION TO VIOLATE B CISTING LAWS

AUTHORIZE THE EMISSION T NO OFAIR

H T HEAL AND SAFETY

IN

OF

COD

OR

T BE

ORD

GOVERNMENTAGENCIES
w

INANCES REGT AIZONS OR II

EXECUTIVE

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UAt NIANAGEMEM DISTRICT C SOUTN COAST AIFI ITY DiamQnd Bat CA 91765 29865 East C pCey Drive
d

Pcrmit Y To
1

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Equipment

xdocntion

CORNER AVE 45

RDINDIO CA S SHIELT

92201

EquipmentDescciFtion
LLr 4 CONSISTING OF E W Z

r s
ENGINE WAUKESHA SPARK IGNITION
BURN 6 CYLINDER MODEL F1945
DRIVING A WELL PUMP
a

INTERNAL COMBUSTION STROKE CYCLE FOUR

RICH

242 BHP NATURAL T GASFIRED

2 SINGLE STAGE CATA LYTIC SYSTEMS

IRTER EMISSION CONTROL CON

t

646 WITH AN ECS AIR jFUELL 1 RATIO ECS MODEL RC 1 2002 MODEL CONTROLLER
I
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OPERATION
d

OF THIS EQUIPMENT SHALL BE

CONDUCTED
th L

H ALL S ACCORDANCE Wr

A I DA
r

ISSUED T
IL a d J i

iICH THIS Y UNDER D SPECIFICATIONS SUBMITTED WITH THE APPLICATION rA3 r i y d S r i ri

IvITP IS pER
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ISEN t iEFt QT E I 3 DBELOWw 4 t L N ESS iikRJC rrs

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IN GOOD EQUIPMENT SHALLLBE PROPERLY KEPT AND MAINTAINED aJaj xt t3 r e r Y TIMES 4 T J r AT ALL r ITON NDI CO v d K 1 t i r ii Si T O i r f ti A r h Yi r ful v S I THIS a
r

wa
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OPTING u
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NF SHE LL B FIRED F 3 f THIS ENGI XCLUSIVELY ONNATURA L GAS THE iZ 1 1JS OU1 D CC f r SUPPLIED TC THIS 3Ei IGINE LI C S i I OT ATXCEED A CHLORLNA j
r Y
Y
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DIS TRICT RULE 431 14YHI CH EVER ZS MORE TRI2 GENT WITH 4 1 4 vra y itC a a i rr v v 1 s err j Y gr
r
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P t t ryo i a T L v a a c
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JLATEDAS C
a ss

fs

LC I SHA M FLY HYDROCJIETI OQ G sf EXCEED T N L SHAT SULFIDE ANI PM Yle 4 f k 1 a s r l rj iit

L rw ay m is s rl swev y ts m a s at G

OFPPM ENT COrTi

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ITE THE SULFUR COI

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e
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RATIO FtJEL TC fT iTS EQLTIPI AIR ATIC T iII CA BE E S LL 4 QL3IPPED WITH AN AUTOM r s w J i s
r

a M 5f q Y a t s d L t c i
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rJ i L r v1a irdaYw
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9 19 A
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I I 33 1ROCiEN I I i e t
o

59 PPPvtJXIDES A X F E TH G I a CA EXITINCsTH S T S L ALY LJS HA AS C E NOT CEED REACTIVE C PPM R bR2C PPM CARBON IlrIONO S GAS GANIC 34 IDE i
OF
rte tp i w a 1 vr
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7 L a 6 e y s xs4 ir s f cv ZTC A tT s V r w C A r a y t s 1 r IaL T rT cc 1 aT r t i r trt 1f rlti r Ts 2 i r e k d 3 yc M Ca tr

a

t
y

S aY J td N M Iw pra Rt it rAM4 Y wer r ny v ra w s

Ktw a V v y lPf rr iVY V L W C Vx Kyp w oM t Y T r a V iw j P

W r

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I M y

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er

SOUTH GOASTAIR QUAL CTY MANAGEMEf STRfCT 7 p

21865

Easfi

Coley Otive

iarpond Bar CA C 91765

No a Pcrm z79a48
ya

MZT CJ ER

YJCER R CONST 1 z

7 S 2 G r s 1 4 y s P v a S A t c i r

cry

LN f
ti

MEASURED l3Y VOLUME AVERAGED VER 15 MINUTES

b

CORRECTED T

5 PERCENT OXYGEN ON x A DRY I3ASI SAND

TEMPERATURE INDICATORS SHALL BE INSTALLED rNSTREAM OV A I ND UPSTREAM OF

ALYST CA
TITF TEMPERATURE C7F Z HE ST AtGAS I Lx

THE

INIMUM OF 740 DEGREES FAHRENHEIT T

s

ENTERING

YST SHALL BE A CATAL THE

EOXYGEN CONTENT OF THE TH EXHAUST GAS ENTERII IG THE YST ATAI SHALL NOT C XCEED 0 E 7 PERCENT ON A VOLUME BASIS

PROVAL OF THE EXECUTIVE AI FFIC C ER

0

THAT THE rll I I UFACTURER SPECIFIEll OXYGEN CONCENTRATION FOR OPTIMAL CATALYST TCIENCY IS MAINTAINED THIS EF MAIhtTENANCE SCI iEDULE MAY BE CHANGED

FUEL RATIO SHALL BE CHECFC TO ATR ED WEEKLY TO ENSURE

UPON

LRECORDS REQUIRED AI

IAS IviAINTENANCE RECORD PERMIT SCICI s EQUIPM IT OPERATION I ESUL OF EMISSION P S TESTS ET MAINTAINED FOR AT LEAST TWWO YEARS AND C SFCALL EE MADE AVAILABLE TO DISTRICT PERSO I TJPOhI REQUEST NEL

I3Y THIS

TS IOURS I REPLACEME

OF

hIOTICE

ACC WITI i ORDANCE i RULE C T HIS PERMIT TC OPER EOR CQPY SI I A TALL BI POSTED ON OR PPILN OF YI METERS THE EQtTiPMENT
t THIS PT MITDOES NOTAUTHORIZE THE E MISSION C F AIR IANTS IN CONTA2vII iYED BY DIVISION 26 OF THE O A1 iEALTI AND SA I 7 TY COD I E OF THE STATE OF CAI 3 ES OF TH RLI7 EAIR QUfiS ITY MANAGEMENT DISTRICT THIS PERMIT CA T NNC B CONSIDERED AS PERMISSION TO VIOLATE EXISTING LAWS ORDII iANGES REGULATI g E OF ONS OTHER GOVERNMENT AGENCIES J I STAZ

C E T F C HOSE ESS

R1 t ITA
OR

OR

s
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59 8 OI3

33a 1 Ir1

l V

ASSIGNMENT
a

AND ASSYJMPTION AGREEMENT

n 1

THIS this

Yday

of

1ENTAND ASSUMPTION AGREEMENT the Assignment is ASSIGNl made 2001

for identification

WATER AUTHORITY

Authority

purposes only by and between THE INDIC and the CITY OF INDIO City
RECITALS

Authority executed that certain Lease Lease Authority substantially all of the assets of City used or useful in the provision of water service within the City Boundaries depicted on Exhibit A attached hereto and by this reference incorporated herein
wherein

On even date

herewith City

and

City

leased to

City would assign to Authority during the term Lease those contracts ar agreements listed in Exhibit B attached hereto and by this enee incorporated herein Contracts refe
ofthe C

The Lease

provided in part

that

City now

desires to

assign

assignment

to Authority and

ofthe Contracts

Authority now

desires to accept such

THE

GOOD AS ID VALUABLE EIICTI ARE HEREBY V 1

NOW THEREFORE IN CONSIDERATION OF THE FOREGOING RECITALS MUTUAL BENEFITS A CCRUING TO THE PARTIES HERETO AN1D OTHER

CCTHE NSIIDERATION
City assigns
and transfers to

RECEIPT A ND ADEQUACY OF

WLEDGED IT IS HEREBY AGREED AS FOLLOWS N ACI Authority

all of City s

Assi nment

interest in and
2

to the Contracts

right

title and

Assumption Authority
by

perform

and be bound

accepts the assignment made hereby and agrees to all ofthe terms and conditions and covenants of the Contracts

keep

party

Representations City represents and warrants to Authority that a neither the any party listed in the Contracts is in default in any material respect of any ofthe terms and conditions ofthe Contracts and b except as otherwise disclosed to Authority in writing City has the right to assign each and every Contract without the prior written consent of

City nor

to the

Contracts

any

its

Indemnities a City agrees to indemnify defend and hold harmless Authority officers directors employees agents successors and assigns from any and all claims actions costs expenses including reasonable attorneys fees and costs damages or liabilities which any or all of them ever pays or is legally obligated to pay relating to the Contracts or a default or breach thereof prior to the Commencement Date as that term is defined in the Lease
HIBIT E

1 19424
3 0 8559

OO O

b Authority agrees to indemnify defend and hold harmless City its officers directors employees agents successors and assigns from and all claims actions any costs expenses including reasonable attorneys fees and costs damages or liabilities which any or all ever pays or is legally obligated to pay relating to a breach or default of the Contracts by after the Authotity Commencement Date

them of

General Provisions

In the event suit is brought to enforce or interpret any part of this Assignment prevailing party shall be entitled to recover all reasonable costs and of the action expenses including without limitation attorneys fees and costs and attorneys fees and costs incurred in enforcing any j udgment

the

Agreement

agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings whether oral or wntten between the parties with respect to the matters contained in this All oral

This

Assignment

is the entire

representations

or

force and effect

except by subsequent modification in writing

This

modifications concernin this Assignment shall be

of

no

c Assignment may be executed in counterpart but shall be without force effect unless and until all parties hereto have executed this Assignment or a

or

counterpart

d Each party agrees to perforrrm any further acts and documents which would be reasonabl necess y ary to out the
carry
g

to execute and

deliver

an

provisions
as

of this

Assignment

e
and not fox

The

provisions

ofthis

Assignment

shall be construed

to

or a alnst any

language

iri

question

party based upon any attribution to such ty as pa

their fair meanirig

to the source oftl e

f All questions with respect to the construction ofthis Assignment the rights and liabilities of the parties to this Assignment shall be governed by the laws of the State of
California ESS DF the YITI

above written

parties hereto

set their hands the

day

and y ear first

Authority
INDIO WATER AUTHORITY
a

City
CITY OF INDZO

joint powers authority

Steve

Compton

Treasurer

Harold S

Schilling City Manager

1 193424
013 g 8559
r t

A List of Items Transferred

by a V y of Bill

of Sale

ar

Assignment Section 8 d 2

NONE

2 193311 013 8559

12 31 19

013 SSS9

Y Alarms and TelemeY

Reservoir 1 All telemetry from wells lA 1B 1 C and boosters 1 3 come into the 2 Central Controller Located at 83 101 Avenue 45
Alarms All alarms from any site come to the central controller then sent via telephone line to 46 800 Jackson Street to the Indio Police Department The CKT far this site is

CKT

IOTCNB

100123

Reservoir 2 All telemetry form wells 2B 2C 2D and Boosters 1 3 come into the 2
central controller located 81 930 Crown

Way

Alazzns All alarms from any site come to the Central Controllers then sent via telephone lines to 46800 Jackson street Indio Police Department The CKT for this site is CKT 10 B 100127 TC

Reservoir

3 All telemetry from wells

3A 3B

3C and Boosters Street

3 come 2 1

into the

Central controller located at Carden and

Daisy

Alarms

All alarms from any site come to the central controller then sent via telephone line to 46 800 Jackson Street Indio Police Department the CKT for this site is CKT 10 3 2v1

193 100
Reservoir 4 AlI into s 4A 4B 4C and boosters telemetry from well central controller located at 46 and shields road

P1 P2 P3

P4

come

the

Alarms

All alarms from any site come to the central controller then sent via telephone line to 46 800 Jackson Street Indio Police The CKT for this site is CKT 10 TCi TB Department

870 100

3
I

tn n tfla

1
t

EXHIBIT B RESOLITTION NO 2001 03 REIMBURSEMENT AGREEMENT

REIMBURSEMENT AGREEMENT dated of the 1st

day of Execution is made and between the INDIO WATER the Date by AUTHORITY July the Authority and the CITY OF INDIO the City the City and the Authority sometimes hereinafter are referred to individually as a Party and collectively as the Parties with respect to the following facts
as

THIS REIMBURSEMENT AGREEMENT

the Agreement

2001

TTAT R

A
to

The

City

is

public body corporate

and

politic organized

and

existing pursuant

the laws of the State of California B The

Authority

is

joint

powers

authority

formed under Sections X500 et

seg

of

the California Government Code C The

City previously provided

n

water service to

the es Undar depicted b

EXhlblt A attached to t iat certain Lease

herewith entered Capitalized terms

Lease
are

into that

by
are

and between the used in this defined

City as Agreement without

substantially all customers within tile Lease t5f eVert date lessor and the Authority as lessee
definition and that
are

defined in the

used herein

as so

City in providing water service within the System oundaries personnel 3 City Departments Finance Engineering and Building and Public Services devoted time to general supervision and management of the Water System including without limitation to the following functions water administration customer service information systems water production and storage and water transmission and distribution collectively the General Administrative Services
in three E The

To assist the

Authority

desires to retain the

City

and the

Authority

to continue

providing

the General Administrative

City desires to be retained by the Services subject to the following

terms and conditions

NOW THEREFORE in consideration of the mutual promises and covenants contained herein and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged the Parties agree as follows

OPERATIVE PROVISIONS 1 General Administrative Services Reimbursement 1 General Administrative Services As of the Commencement

Date

the
to

hereby

retains the

City

and the

City hereby

agrees to be retained

by

the

Authority

Authority provide the

General Administrative Services

2 1

Reimbursement The

Authority

shall reimburse the

City

for that

personnel providing
2

costs costs of services and

supplies

and

capital outlay

incurred

by the

portion of City in

the General Administrative Services

Term The term of this

Agreement
or

shall

commence on

the Commencement Date and

shall continue until the 3

expiration

earlier termination of the Lease

Indemnification 1 3

Indemnity bx the City The City agrees to indemnify defend and hold harmless the Authority its officers directors employees agents successors and assigns from and against
any and all

claims actions
or

damages

or

costs expenses including reasonable attorneys fees and costs liabilities which any or all of them ever pays or is legally obligated to pay arising default

from any breach 2 3

by

the

City under

the terms of this

Agreement

Indemnity by the Authority The Authority agrees to indemnify defend and hold City its elected officials public officers employees agents successors and assigns from and against any and all claims actions costs expenses including reasonable attorneys fees and costs damages or liabilities which any or all of them ever pays or is legally obligated to pay arising from any breach or default by the Authority under the terms of this Agreement
harmless the 4 MiscelYaneous Provisions 1 4

Further Actions At any time and from time to time after the date hereof each Party agrees to take such actions and to execute and deliver such documents as the other Party may reasonably request to effectuate the purposes of this Agreement

provided in this Agreement neither this Agreement waived modified amended discharged or terminated except by an instrument in writing signed by the Party against which the enforcement of such waiver modif cation amendment discharge or termination is sought and then only to the extent set forth in such writing Except
as nor

2 4

Amendment

otherwise

any provision

hereof may be

3 4

Entire

Agreement

This

the Parties with respect to the matters set forth

Agreement constitutes the entire understanding herein and they supersedes all prior or

between

contemporaneous understandings
matter

or

agreements between the Parties with respect to the subject

hereof
4

whether oral Notices

or

written waiver other communication

Any notice approval consent

or

or

required

permitted given Agreement Party shall be in writing Such notice shall be personally served sent or cable facsimile telegram by or sent or certified mail with by registered return or sent prepaid receipt requested by reputable overnight delivery service such as Federal Express and shall be deemed given a if personally served when delivered to the Party to whom such notice is addressed b if given by facsimile telegram or cable when sent c if given by prepaid or certified mail with return receipt requested on the date of execution of the return receipt or d if sent by reputable overnight
or

to be

to be served upon either

in connection with this

delivery service such as Federal Express when received Any notice given by facsimile telegram or cable shall be confirmed in writing and such confirmation shall be sent or delivered by any of the other means of delivery set forth in this Section within forty eight 48 hours after notice was sent by facsimile telegram or cable Such notices shall be addressed to the Party to whom such notice is to be given at the address specified by each Party in a writing delivered or sent to the other Party in accordance with this Section
5 4

interpreted
other laws 6 4 constitute

Controlling Law This Agreement shall be governed by and construed and in accordance with the laws of the State of California without giving effect to any
or

law or conflicts of choice laws rule of

principle that

would result in the

application of any

Headings Headings titles and captions

are

for convenience

only

and shall not

portion

of this

Agreement Rights

or

be used for the

interpretation

thereof

7 4
or

Cumulative

waiver The

rights

created under this

Agreement

or

by

lativ

failure

equity by

shall be cumulative and may be exercised at any time and from time to time No either Party to exercise and no delay in exercising any rights shall be construed or
or

deemed to be any other

shall any single or partial exercise future exercise thereof or the exercise of any other right
a

waiver

thereof

nor

provision or of any breach of any provision of this Agreement must by either Party of any breach of any provision of this Agreement shall not operate as or be construed to be a waiver of any other breach of that provision or of any breach of any other provision of this Agreement The failure of either Party to insist upon strict adherence to any term of the Agreement on one or more occasions shall not be considered or construed or deemed a waiver of any provision or any breach of any provision of this Agreement or deprive that Party of the right thereafter to insist upon strict adherence to that term or provision or any other term or provision of this Agreement No delay or omission on the part of either Party in exercising any right under this Agreement shall operate as a waiver of any such right or any other right under this Agreement Agreement constitutes afully negotiated agreement commercially sophisticated Parties each assisted by legal counsel and the terms of this Agreement shall not be construed or interpreted for or against either Party hereto because that Party or its legal representative drafted or prepared such provision
between 9 4 8 4 Liberal Construction This

by either Party preclude Any waiver of any be in writing and any waiver

Severability If any provision of this Agreement is invalid illegal

such be severed
or

or

provision shall be deemed to Agreement shall remain in full invalidity illegality or unenforceability unenforceable
the balance of this 10 4

deleted from this

Agreement
such

and

force and effect

notwithstanding

Good Faith and Fair Dealing The Parties hereto

performances required by the provisions of this Agreement with both Parties dealing fairly with each other

and agree that the shall be undertaken in good faith and

acknowledge

11 4 No Third Party Beneficiaries This Agreement does not create and shall not be construed to create any rights enforceable by any person partnership corporation joint venture limited liability company or other form of organization or association of any kind that is not a party to this Agreement 12 4 executed in Execution in

Counterparts
same

Facsimile Si natures This

an

counterparts
one

each of which shall be deemed

original

Agreement may be but all of which together

shall constitute

and the

instrument The signature

the

page of any

detached therefrom without

impairing

legal

effect of the

counterpart may be sthereon provided such signature

page is attached to any other counterpart identical thereto except for having an additional signature page executed by the other Party Each Party agrees that the other Party

signature
may

rely upon the facsimile signature of the other Party on this Agreement as constituting a duly authorized irrevocable actual current delivery of this Agreement as fully as if this Agreement contained the original ink signature of the Party supplying a facsimile signature
13 4 Time of the Essence Time is of the Unless business days
are essence

expressly provided days if any date or time period provided for in this Agreement is or ends on a Saturday Sunday or federal state or legal holiday then such date shall automatically be extended to the next day which is not a Saturday Sunday or federal state or legal holiday
shall refer to consecutive calendar 14 4 Attorneys Fees Should either Party to this Agreement reasonably retain counsel for the purpose of enforcing any provision of this Agreement including without limitation the institution of any action or proceeding to enforce any provision of this Agreement or to recover damages if otherwise available hereunder or to obtain injunctive or other relief by reason of any

Agreement

ofeach and every provision of this for all references to days herein

alleged breach of any provision of this Agreement or for a declaration based on a demonstrated necessity of such Party s rights or obligations under this Agreement or for any other judicial or equitable remedy then if the matter is settled by judicial or quasi judicial determination including arbitration if such arbitration is agreed to by the Parties the prevailing Party shall be entitled in addition to such other relief as may be granted to be reimbursed by the losing Party for all reasonable costs and expenses incurred including without limitation all reasonable attorneys fees and costs for services rendered to the prevailing Party and any reasonable attorneys fees and costs incurred in enforcing any judgment or order entered The prevailing Party shall be determined by the court or arbitrator if arbitration is agreed to by the Parties in the initial or any subsequent proceeding
15 4 Number Gender As used

herein

and

as

the circumstances

require

the

term shall include the

plural

singular

the

singular

shall include the

plural

the neuter term shall include

the masculine and feminine genders the masculine term shall include the neuter and the feminine genders and the feminine term shall include the neuter and the masculine genders

IN WITNESS year first above set forth

WHEREOF

this

Agreement has been

executed

as

of the date and

city City
of Indio

01 S

lin i ity vlanager

Authority
Indio Water

Authority

By
Steve

Compton

reasurer

EXHTBIT C RESOLUTION NO 03 2001 EMPLOYEE LEASE

Exhibit A

WATER AUTHORITY CITY OF INDIO

Redevelopment Agency

Public

Financing Authority

Other Entities

INVESTMENT POLICY
1

Polio policy of the City of Indio to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the entity and conforming to all State of California and local statutes governing the investment of public funds The City of Indio will operate it s investment practices under the Prudent Person Rule California Government Code Section 53600 3
It is the which states

When

investing reinvesting purchasing acquiring exchanging

and

selling

managing public funds

and

skill and

prudence diligence that a prevailing prudent person acting

familiarity
with those matters would like character and with maintain the

a trustee shall act with care under the circumstances then

in like

capacity
the

and
a

use

in the conduct of funds of

like

aims to

safeguard

principal

and

liquidity

needs of the

agency

e Sco
This investment s it

policy applies
the Indio

to all investments of the

City

of Indio and

Public

component units Financing Authority

Redevelopment Agency

and the Indio

policy however specifically excludes the employees retirement and deferred compensation funds Additionally money held by a trustee or fiscal agent pledged to the payment or security of bonds or other indebtedness shall comply with CGC Section 53601 L
This 3

Objective

primary objectives in priority order of the sinvestment activities shall be Authority

The A

Indio Public

Utility

Safety Safety
of

principal

is the foremost

objective

of the investment shall be of

program

Investments of the Indio Public

a manner

Utility Authority
the

undertaken in

that seeks to

ensure

preservation

capital

in the overall

portfolio

To attain this

diversification is
remainder of the

important

in order that any

individual securities do not exceed the

objective potential losses on income generated from the

portfolio

Liquidity portfolio will remain sufficiently liquid to enable the Indio Public Utility Authority to meet all operating requirements which might be reasonably anticipated
The

City of Indio

investment

Return

on

lnvestruents

The

City of Indio investment portfolio shall be designed with the objective of attaining a rate of return throughout budgetary and economic cycles commensurate with the City of Indio investment risk constraints and the cash flow characteristics of the portfolio

Investment Instruments

Financing Authority may be invested in any instrument allowable under current legislation of the State of California Government Code Section 53600 et seq so long as the investment is appropriate when investment objectives and policies are
Funds of the

City Agency

and

taken into consideration

Allowable investment Instruments may include

Treasury Jbligations Bills Notes

Government
Local

and

Bonds

Agency

Securities

Agency

Investment Fund

California State Pool

Certificates of

Deposit

Commercial Paper

Repurchase Agreement
Money Market
s Banker Interest Funds

bond

reserves

held

by

trustee

only

Acceptances Bearing Checking

Accounts Accounts

General Demand

Checking

Prohibited Investments
A local agency shall not invest any funds pursuant to this article in inverse floaters range notes or interest only strips that are derived from a pool of

mortgages
A local agency shall not invest any funds pursuant to this article in any security that could result in zero interest accrual if held to maturity

However

maturity
5

local agency may hold dates

a

prohibited

instruments until their

Investment Diversification Investment avoid

practices

will

diversify

the

use

of investment instruments to in

incurring unreasonable risks inherent in over investing instruments individual financial institutions or maturities To
more one

specific
end
or

that

not

than 25 of the with

instrument

portfolio shall be invested the following exceptions

in any

one

entity

any

Treasury Obligations
Local

Agency

Investment Fund

California State Pool

Investment Limitations

Investment instruments and

holdings will

be limited to the

statutory

limits

imposed by
follows

the California Government Code

Section

53601 f

as

Commercial Paper
Bankers

15 40

Acceptances

Maturity Limitations

Every

investment instrument of less than five

reserves

purchased

must have
one

term

remaining by
a

to

maturity
party
8

will be bond

5 years The or capitalized and

exception

to this limitation third

interest accounts held

trustee

Delegation of Authority
to manage the City of Indio investment program is derived from the California Government Code Management responsibility for the

Authority

investment program is hereby delegated by the City Council to the Finance Director who shall operate consistent with this investment

policy

No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Committee The Finance Director shall be
a

responsible

for all

transactions undertaken and shall establish

system

of controls to

regulate
9

the activities of subordinate officials

Investment Committee

The investment committee is

appointed by

the

city

council to

serve

in

an

advisory capacity The investment committee will be composed of two members of the City Council City Treasurer one citizen at large the

City Attorney will be an ex officio member The investment committee is responsible for reviewing the city s investment policy and recommending annual adoption of the policy by the City Council Individual investment trades and purchases shall be done by the Finance Director within the approved policy and guidelines The Finance
Finance

Director

and the

Director will

report

all investment trades and transaction to the Investment

Committee at least
10

quarterly

Ethics and Conflicts of Interest

employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions Employees and investment officials shall
Officers and disclose to the Investment Committee any material financial interest in financial institutions that conduct business within this jurisdiction and

they shall

positions
sales

investment further disclose any large personal financial that could be related to the performance of the Indio Public with

lJtility Authority particularly

regard

to the time of

purchases

and

11

Authorized Financial Dealers and Institutions

The Finance Director will maintain to
a

list of financial institutions authorized

provide investment services In addition a list will also be maintained of approved security broker dealers selected by credit worthiness who are authorized to provide investment services in the State of California These may include primary dealers or regional dealers that qualify
under Securities

Exchange Commission

Rule 15C3 1 in

uniform
a

net

capital rule No public deposit shall be made except depository as established by California laws

qualified public

All financial institutions and broker dealers who desire to become

supply the Finance Director with the following e g audited financial statements proof of National Association of Security Dealers certification trading resolution dealer questionnaire proof of California registration completed broker

qualified

bidders for investment transactions must

certification of

having depository contracts

read the

City of

Indio investment

policy

and

An annual review of the financial condition and bidders will be conducted

registrations of qualified

by

the Finance Director

A current audited financial statement is

required

to be

on

file far each

financial institution and broker dealer in which the

City

of Indio invests

12

Collateralization

required on two types of investments certificates of deposit and repurchase agreements In order to anticipate market changes and provide a level of security for all funds the collateralization level will be 102 of market value of principal and accrued interest
Collateralization will be

City of following
The S U

Indio chooses to limit what is considered collateral to the

Treasury Securities U S Agency Securities

13

Safekeeping and Custody

All

security transactions including collateral for repurchase agreements Utility Authority shall be conducted on a payment DVP basis Securities will be held by a third versus delivery party custodian designated by the Finance Director and evidenced by safekeeping receipts
entered into by the Indio Public
14 Performance Standards

The investment
a

rate of return

portfolio shall be designed with the objective throughout budgetary and economic cycles

of

obtaining

commensurate with the investment risk constraints and the cash flow needs

Market Yield

Benchmark

The

City

of Indio investment the basis used

strategy

is

passive Given

this

strategy

whether market

yields

are

by being achieved

the Finance Director to determine shall be the six month

S Treasury U
15

Reporting charged with the responsibility of submitting a quarterly report on investment activity and returns to the City Council The Investment Committee will receive quarterly reports of investment
The Finance Director is

activity if any investments previous quarter

16

have been

purchased

or

sold

during

the

Investment Policy Adoption

The

policy shall be adopted by resolution of the City City legislative authority and the Indio Redevelopment Agency The policy shall be reviewed annually by the City
Council of the
of Indio s

of Indio investment

Investment Committee and any modifications made thereto must be approved by the Investment Committee and the City Council and Agency Board

17

Internal Controls

organized so that specific responsibility for the performance of duties are assigned with a clear line of authority and reporting The functions of authorizing executing and recording s are transactions custody of investments and performing reconciliation to reduce the risk that a handled by separate persons person is in a position to conceal errors or fraud in the normal course of duty
The investment function will be While
no

internal control
assurance

system

however

elaborate

can

guarantee

s and Redevelopment Agency City sassets are safeguarded it is the intent of internal controls to provide reasonable assurance that management of investments meet the objectives of this policy The following segregation of responsibilities will form the basic
absolute

that the

system

of internal controls for investments

The table attached shows the different levels of

approval

and

oversight

responsibility
FUNCTION Develop formal Investment Policy
Recommend modifications to Investment Polic Review Investment Polic and recommend to Cit Council enc A Board

RESPONSIBILITY
Finance Director Investment Committee Investment Committee

Adopt Investment Policy

Select Investments Transactions

City

Council

Finance Director Fiscal Officer

Approve

City Manager
Finance Director Fiscal Officer

Execute investment transactions Investment Verification

match

broker confirmation to

City

investment

Fiscal Officer Account Clerk

records
Record investment transactions into

AR accounting
records Fiscal Officer Account Clerk

AR
Reconcile investment records to accounting records and bank statements Fiscal Officer Account Clerk AR

Security

Time CD s or receipt will be maintained in the the

care

City

vault in

of the Finance Director

All other securities will be held third Review of art

safekeeping

portfolio

to determine conformance to Investment Polic

Inde endent Auditors

Or Designee