NO 2001-10 10 2001 RESOLUTION NO.

RESOLUTION INDIO WATER RESOLUTION OF THE THE INDIO WATER AUTHORITY AUTHORITY, CALIFORNIA, CALIFORNIA EXECUTION OF AUTHORIZING AUTHORIZING THE THE EXECUTION OF THE THE SECOND SECOND AMENDMENT AMENDMENT LEASE AGREEMENT TO TO THE THE WATER WATER SYSTEM SYSTEM LEASE AGREEMENT law city of Indio, and a a municipal a California California general the City city and WHEREAS, the Indio a WHEREAS general law City of municipal owns and Water a water currently corporation (the "City"), currently owns and operates a water system (the "Water the operates City system corporation the residents non of residents the and and certain for the benefit of the System") City; and System for the benefit of the residents and certain non-residents of the City the and the the City and as of of April April 19, the Redevelopment Agency of of the WHEREAS WHEREAS, as Redevelopment Agency 19 2000, 2000 the formed the the Indio Indio Water Water Authority a joint Indio formed City of of Indio as a Authority (the the "Authority") joint powers City powers Authority as Exercise conditions of Powers of that certain to the Joint terms and authority pursuant to the terms and conditions of that certain Joint Exercise of Powers authority pursuant Agreement; and and Agreement best interests interests of the WHEREAS, the the Authority determinedthat thatitit was was in in the the best of the WHEREAS Authority determined and lease the Authority to to lease the Water Water System from the the City City; and System from Authority the Authority lease a water water system WHEREAS, on on May 21 2001, 2001 the system lease WHEREAS Authority approved approved a May 21, and and between the and the ("Lease Agreement") by Authority; and Lease Agreement by and between the City and the Authority the Authority on September 17, First Amendment Amendment WHEREAS, on 2001, the a First WHEREAS Authority approved approved a September 17 2001 and to to Lease The (The Amendment "Amendment"); and Amendment sometimes Lease Agreement sometimes hereinafter hereinafter and the the Amendment WHEREAS, the WHEREAS the Lease Agreement and are referred are referred to to collectively as as the the Lease "Lease"; and and estimated rental sets forth on WHEREAS, the the Lease sets forth estimated rental payments payments that that were were based based on WHEREAS and of the water study of the City's Study system and s water system, City

199 1998 raluation valuation

lease payments WHEREAS, the WHEREAS the Lease Lease provides the actual actual lease payments be determined by provides that the by an valuation of the an updated the water water system; system and updated valuation and WHEREAS, PinnacleOne Pinnacle0ne has has completed completed its its valuation valuation of of the the water water system WHEREAS system and submitted it and the such submitted it to to the Authority, and the Authority accepted and approved such valuation; Authority accepted Authority approved valuation and and Pinnacle0ne valuation valuation study, on the the Authority the PinnacleOne has WHEREAS, based based on WHEREAS study the Authority has reviewed Second Amendment reviewed the the proposed proposed Second Amendment to to Lease Lease, dated dated as as of of October October 15, 2001, to to 15 2001 and between the be desires entered and the and the the Authority be entered by by and between the Authority to Authority desires to City and Authority and the City, Lease approve the the Second Second Amendment Amendment to to Lease. approve

NOW

THEREFORE

THE

INDIO

WATER

AUTHORITY

DOES

HEREBY

RESOLVE AS FOLLOWS Section 1 to in The Indio Water the

same

Authority hereby approves

as

the Second Amendment

herein

Lease substantially by reference and hereby

form

Exhibit A attached hereto and

incorporated

approves the execution of such Second Amendment to

Lease Section 2 This Resolution shall take effect from and after its passage and

approval

rASSED
following
vote

ArrRG V ED AivD ADOPTEv this i5th

day

of

October

200 i

by

the

AYES ABSENT

Baughn Bethel Friestad Harmon Hunt Lopez Wilson

Fesmire

NOES NONE

Godfrey
f

MEL
ATTEST

IE F

SMIRE

RESIDENT

e E

1THIA HERNANDEZ C

SICRETARY

CERTIFICATION

I Cynthia Hernandez Secretary to the Indio foregoing to be a full true and correct copy of
Board of Commissioners of the October Indio Water

Authority do hereby certify Resolution No 2001 10 adopted by at a regular meeting held Authority

Water

the the
on

15th

2001

ynthia Hernandez Secretary

EXHIBIT RESOLUTION NO

A 10 2001

SECOND AMENDMENT TO LEASE

Second Amendment dated as of October 15 This Second Amendment to Lease Indio Water Authority Authority and the City of Indio 2001 entered into by and between the is made with respect to the following facts

City

RECITALS entered into that certain Lease

to

A dated

The

Authority

and the

City previously

City 1l 22 2001 the Lease Agreement pursuant Iay of the used or useful in the provision of water all of the assets City substantially System Boundaries
which the B Amendment to The

leased to the

Agreement Authority

service within the

Authority and the City also previously entered Lease dated September 17 2001 the Amendment Agreement

into that

certain

First

The Lease
as

and the Amendment sometimes hereinafter

terms that
are

are

referred to
are

collectively

the Lease
are

Capitalized

used herein without definition and that

defined in the Lease The

used herein

as so

defined desire to further amend the the

Authority

and the

City

now

Lease subject

to

following

terms and conditions

NOW THEREFORE in consideration of the mutual covenants and conditions contained herein and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged the Authority and the City hereby agree as follows
OPERATIVE PROVISIONS of the Lease is

Paragraph 2 a 1

hereby deleted

and the

following

is inserted into

its

place

and stead

a
more

Except

as

otherwise

provided herein

to

compensate the City for the lease of the

System as defined below to the Authority the Authority shall pay to the City rent as 1 The rent the Authority shall pay the City particularly set forth in this Section 2 during each year of the term is as follows

2ao2

000 10

000 0 5 00 cash 000 5 plus 000 promissory note

2003 2004 2005 2006 1

000 0 1 00 030 1 000 060 1 900 092 1 727

EXHIBIT RESOLUTION NO

A 10 2001

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

509 1 1 25 159 1 274 194 1 052 229 1 874 2669770 1 304 1 773 343 1 916 384 1 233 425 1 760 468 1 533 512 1 589 557 1 967 i 604 706 652 1 847 702 1 432 753 1 505 110 1 806 860 1 293 1 916 102 973 1 585 032 2 793 093 2 777 156 590 2 221 2 288 287 2 927

Except

as

set forth in this Second

Amendment

all of the terms and conditions of

the Lease shall remain unmodified and in full force and effect
IN WITNESS

be executed

as

of the

WHEREOF the Authority and day and year first above written

the

City

have caused this Amendment

to

Authority
INDIO WATER AUTHORITY

By
MELANIE FESMIRE PRESIDENT

City
THE CITY OF INDIO

By
BEN

GODFREY

MAYOR PRO TEM