Agenda packet — Lancaster City Council, September 8, 2026 (part 4 of 4)

This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART
It is understood and agreed as follows:

I. WHO IS AN INSURED is amended to include as an Insured any person or organization whom you are required by written contract to add as an additional insured on this Coverage Part, but only with respect to liability for bodily injury, property damage or personal and advertising injury caused in whole or in part by your acts or omissions, or the acts or omissions of those acting on your behalf:

A. In the performance of your ongoing operations subject to such written contract; or B. In the performance of your work subject to such written contract, but only with respect to bodily injury or property damage included in the products-completed operations hazard, and only if:

1. The written contract requires you to provide the additional insured such coverage; and

2. This Coverage Part provides such coverage; and
C. Subject always to the terms and conditions of this policy, including the limits of insurance, the Insurer will not provide such additional insured with:

1. Coverage broader than what you are required to provide by the written contract; or

2. A higher limit of insurance than what you are required to provide by the written contract.

Any coverage granted by this Paragraph I. shall apply solely to the extent permissible by law.

II. If the written contract requires additional insured coverage under the 07-04 edition of CG2010 or CG2037, then paragraph I. above is deleted in its entirety and replaced by the following:

WHO IS AN INSURED is amended to include as an Insured any person or organization whom you are required by written contract to add as an additional insured on this Coverage Part, but only with respect to liability for bodily injury, property damage or personal and advertising injury caused in whole or in part by your acts or omissions, or the acts or omissions of those acting on your behalf:

1. The written contract requires you to provide the additional insured such coverage; and

2. This Coverage Part provides such coverage.

III. But if the written contract requires:

A. Additional insured coverage under the 11-85 edition, 10-93 edition, or 10-01 edition of CG2010, or under the 10- 01 edition of CG2037; or
B. Additional insured coverage with “arising out of” language; then paragraph I. above is deleted in its entirety and replaced by the following:

WHO IS AN INSURED is amended to include as an Insured any person or organization whom you are required by written contract to add as an additional insured on this Coverage Part, but only with respect to liability for bodily injury, property damage or personal and advertising injury arising out of your work that is subject to such written contract.

IV. But if the written contract requires additional insured coverage to the greatest extent permissible by law, then paragraph I. above is deleted in its entirety and replaced by the following:

CNA PARAMOUNT
Blanket Additional Insured - Owners, Lessees or Contractors - with Products-Completed Operations Coverage Endorsement Policy No: 4033039664
Endorsement No: 4
Effective Date: 09/01/2025
CNA75079XX (3-22)

Page 2 of 3 ends

WHO IS AN INSURED is amended to include as an Insured any person or organization whom you are required by written contract to add as an additional insured on this Coverage Part, but only with respect to liability for bodily injury, property damage or personal and advertising injury arising out of your work that is subject to such written contract.

V. The insurance granted by this endorsement to the additional insured does not apply to bodily injury, property damage, or personal and advertising injury arising out of:

A. The rendering of, or the failure to render, any professional architectural, engineering, or surveying services, including:

1. The preparing, approving, or failing to prepare or approve maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; and

2. Supervisory, inspection, architectural or engineering activities; or B. Any premises or work for which the additional insured is specifically listed as an additional insured on another endorsement attached to this Coverage Part.

VI. Under COMMERCIAL GENERAL LIABILITY CONDITIONS, the Condition entitled Other Insurance is amended to add the following, which supersedes any provision to the contrary in this Condition or elsewhere in this Coverage Part:

Primary and Noncontributory Insurance
With respect to other insurance available to the additional insured under which the additional insured is a named insured, this insurance is primary to and will not seek contribution from such other insurance, provided that a written contract requires the insurance provided by this policy to be:

1. Primary and non-contributing with other insurance available to the additional insured; or

2. Primary and to not seek contribution from any other insurance available to the additional insured.

But except as specified above, this insurance will be excess of all other insurance available to the additional insured.

VII. Solely with respect to the insurance granted by this endorsement, the section entitled COMMERCIAL GENERAL LIABILITY CONDITIONS is amended as follows:

The Condition entitled Duties In The Event of Occurrence, Offense, Claim or Suit is amended with the addition of the following:

Any additional insured pursuant to this endorsement will as soon as practicable:

1. Give the Insurer written notice of any claim, or any occurrence or offense which may result in a claim;

2. Send the Insurer copies of all legal papers received, and otherwise cooperate with the Insurer in the investigation, defense, or settlement of the claim; and

3. Make available any other insurance, and endeavor to tender the defense and indemnity of any claim to any other insurer or self-insurer, whose policy or program applies to a loss that the Insurer covers under this coverage part.

However, if the written contract requires this insurance to be primary and non-contributory, this paragraph 3. does not apply to other insurance under which the additional insured is a named insured.

The Insurer has no duty to defend or indemnify an additional insured under this endorsement until the Insurer receives written notice of a claim from the additional insured.

VIII. Solely with respect to the insurance granted by this endorsement, the section entitled DEFINITIONS is amended to add the following definition:

Written contract means a written contract or written agreement that requires you to make a person or organization an additional insured on this Coverage Part, provided the contract or agreement:

A. Was executed prior to:

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1. The bodily injury or property damage; or

2. The offense that caused the personal and advertising injury; for which the additional insured seeks coverage; and
B. Is still in effect at the time of the bodily injury or property damage occurrence or personal and advertising injury offense.

All other terms and conditions of the Policy remain unchanged.

This endorsement, which forms a part of and is for attachment to the Policy issued by the designated Insurers, takes effect on the effective date of said Policy at the hour stated in said Policy, unless another effective date is shown below, and expires concurrently with said Policy.

WORKERS COMP
G-19160-B (11-1997)
Policy No: 7094398780
Policy Effective Date: 09/01/2025
Policy Page: 1 of 1
Endorsement Expiration Date: 09/01/2026
Form No: G-19160-B (11-1997)
Endorsement Effective Date: 09/01/2025
Endorsement No: [1] ; Page: 1 of 1
Underwriting Company: Valley Forge Insurance Company
© Copyright CNA All Rights Reserved.

This endorsement changes the policy to which it is attached.

It is agreed that Part One
- Workers’ Compensation Insurance G. Recovery From Others and Part Two - Employers’ Liability Insurance H. Recovery From Others are amended by adding the following:

We will not enforce our right to recover against persons or organizations. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) PREMIUM CHARGE - Refer to the Schedule of Operations
The charge will be an amount to which you and we agree that is a percentage of the total standard premium for California ex
posure. The amount is Blanket Waiver of Subrogation Percentage Charge%.

All other
terms and conditions of the policy remain unchanged.

This endorsement, which forms a part of and is for attachment to the policy issued by the designated Insurers, takes effect on the Policy Effective date of said policy at the hour stated in said policy, unless another effective date (the Endorsement Effective Date) is shown below, and expires concurrently with said policy unless another expiration date is shown below.

BLANKET WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS

CNA PARAMOUNT
Contractors'GeneralLiabilityExtension Endorsement
COMMERCIALGENERALLIABILITYCOVERAGEPARTIt is understoodand agreedthat this endorsementamendsthe as follows. If any other endorsementattached to this policy amends any provision also amended by this endorsement, then that other endorsementcontrols with respect to such provision, and the changes made by this endorsementwith respectto such provisiondo notapply.

TABLEOF CONTENTS

1. AdditionalInsureds

2. AdditionalInsured- PrimaryAnd Non-ContributoryTo AdditionalInsured'sInsurance

3. BodilyInjury– ExpandedDefinition

4. BroadKnowledgeof Occurrence/Noticeof Occurrence

5. BroadNamedInsured

6. BroadenedLiabilityCoverageFor DamageTo YourProductAnd YourWork

7. ContractualLiability- Railroads

8. ElectronicData Liability

9. Estates,LegalRepresentativesand Spouses

10. ExpectedOr IntendedInjury– Exceptionfor ReasonableForce

11. GeneralAggregateLimitsof Insurance– Per Project

12. In Rem Actions

13. IncidentalHealthCare MalpracticeCoverage

14. JointVentures/Partnership/LimitedLiabilityCompanies

15. Legal Liability – Damage To Premises/ Alienated Premises/ Property In The Named Insured's Care, Custodyor Control

16. LiquorLiability

17. MedicalPayments

18. Non-ownedAircraftCoverage

19. Non-ownedWatercraft

20. PersonalAnd AdvertisingInjury– Discriminationor Humiliation

21. PersonalAnd AdvertisingInjury- ContractualLiability

22. PropertyDamage- Elevators

23. SupplementaryPayments

24. UnintentionalFailureTo DiscloseHazards

25. Waiverof Subrogation– Blanket

26. Wrap-UpExtension:OCIP CCIP,or Consolidated(Wrap-Up)InsurancePrograms 4033039664PolicyNo:
1EndorsementNo:

Effective Date: 09/01/2025
CNA74705XX (1-15)

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CONTINENTAL INSURANCE COMPANY
Insured Name: ANGELES CONTRACTOR,
INC.

CNA PARAMOUNT
Contractors'GeneralLiabilityExtension Endorsement
B. PROPERTYDAMAGE – ELEVATORSSolely for the purpose of the coverage provided by this Provision, the Other Insuranceconditionsis amendedto add thefollowingparagraph:

This insurance is excess over any of the other insurance,whether primary, excess, contingent or on any other basis that is Propertyinsurancecoveringpropertyof othersdamagedfrom the use of elevators.

23. SUPPLEMENTARYPAYMENTS
SUPPLEMENTARYPAYMENTS– COVERAGESA AND BThe sectionentitled is amendedas follows:

A. 1.b.Paragraph is amendedto delete the $250limit shown for the cost of bail bonds and replace it with a $5,000. limit; and
B. 1.d.Paragraph is amended to delete the limit of $250 shown for daily loss of earnings and replace it with a $1,000.limit.

24. UNINTENTIONALFAILURETO DISCLOSEHAZARDS
Named Insured NamedIf the unintentionally fails to disclose all existing hazards at the inception date of the Insured'sCoveragePart CoveragePart, the Insurerwill not deny coverageunderthis becauseof such failure.

25. WAIVEROF SUBROGATION- BLANKET
CONDITIONS TransferOf Rights Of RecoveryAgainst Others To UsUnder , the conditionentitled is amendedto add thefollowing:

The Insurer waives any right of recovery the Insurer may have against any person or organization because of paymentsthe Insurermakesfor injury or damagearisingout of:

1. NamedInsured'sthe ongoingoperations;or

2. yourwork products-completedoperationshazardincludedin the .

Named InsuredHowever,this waiver appliesonly when the has agreed in writing to waive such rights of recoveryin a writtencontractor writtenagreement,and only if such contractor agreement:

1. CoveragePartis in effect or becomeseffectiveduringthe term of this ; and

2. bodilyinjury propertydamage personaland advertisinginjurywas executedprior to the , or giving rise to the claim.

26. WRAP-UPEXTENSION:OCIP,CCIP,OR CONSOLIDATED(WRAP-UP)INSURANCEPROGRAMS Note: The following provision does not apply to any public constructionproject in the state of Oklahoma,nor to any consolidated(wrap-up)construction project in the state of Alaska, that is not permitted to be insured under a insuranceprogramby applicablestate statuteor regulation.

EXCLUSION– CONSTRUCTIONWRAP-UPIf the endorsement is attached to this policy, or another exclusionary endorsement pertaining to Owner Controlled Insurance Programs (O.C.I.P.) or Contractor Controlled Insurance Programs(C.C.I.P.)is attached,then thefollowingchangesapply:

A. The followingwordingis added to theabove-referencedendorsement:
consolidated(wrap-up)insuranceprogram Named InsuredWith respect to a project in which the is or was Named Insuredinvolved, this exclusion does not apply to those sums the become legally obligated to pay as damagesbecauseof:

1. Bodilyinjury propertydamage personalor advertisinginjury NamedInsured's, , or that occursduring the Named Insured'songoing operations at the project, or during such operations of anyone acting on the behalf;nor
4033039664PolicyNo:
1EndorsementNo:

Effective Date: 09/01/2025
CNA74705XX (1-15)

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CONTINENTAL INSURANCE COMPANY
Insured Name: ANGELES CONTRACTOR,
INC.

STAFF REPORT
City of Lancaster
CC 16
9/8/2026
TN
Date:September 8, 2026
To: Mayor Parris and City Council Members
From: John Felkins, Emergency Management Administrator
Larissa De La Cruz, Assistant City Manager
Subject:Authorization to Apply for the Strategic Growth Council Community Resilience Centers Round 2 Implementation Grant
Recommendations:
a. Adopt Resolution No. _____ authorizing the City Manager, or designee, to apply for and accept, if awarded, funding through the California Strategic Growth Council Community Resilience Centers Round 2 Implementation Grant Program for the Multi-Agency Regional Resiliency Center (MARRC) at the Antelope Valley Fairgrounds.
b. Authorize the City Manager, or designee, to execute the grant application and all related agreements, amendments, certifications, assurances, letters of commitment, collaborative governance documents, and other documents necessary to apply for, accept, and administer the grant, subject to City Attorney approval.
c. Authorize the appropriation of grant funds, if awarded, into accounts established by Finance for expenditure in accordance with the approved grant agreement, grant guidelines, and City financial policies.

G.C. Section 84308: No
Fiscal Impact:

None
Background:

The Community Resilience Centers (CRC) Program is administered by the California Strategic Growth Council (SGC). Round 2 will provide funding for the planning, construction, retrofit, and operation of community resilience centers that combine physical improvements with year-round 2 5
2 6
programs and services intended to strengthen local capacity to respond to and recover from climate and other emergencies. Implementation Grant awards range from $1 million to $10 million.

The City proposes to submit an Implementation Grant application centered on the Multi-Agency Regional Resiliency Center (MARRC) at the Antelope Valley Fairgrounds. MARRC is being developed as a regional emergency evacuation, incident support, and community-serving facility.

The City and Antelope Valley Fairgrounds Authority have established long-term use and access rights through a Joint Use and Irrevocable License Agreement, which provides first-priority use of the Community Facilities for emergency shelter and operational uses by the City, City residents, and contributing agencies during an emergency.

The proposed CRC application would focus on eligible activities needed to operationalize and enhance MARRC as a year-round Community Resilience Center. Potential activities may include remaining eligible facility improvements; furniture, fixtures and equipment; broadband and technology; emergency communications and charging capability; emergency shelter and support equipment; food and medical refrigeration; accessibility and access and functional needs accommodations; and other CRC-required facility functions not already funded or committed.

The application is also expected to include year-round community resilience programs and services, which may include emergency preparedness education, Community Emergency Response Team (CERT) training, emergency exercises, extreme heat preparedness and cooling support, food security, public health preparedness, services for seniors and people with access and functional needs, youth preparedness, and workforce or resilience training. Final activities will be developed in coordination with the project team and eligible project partners and will be limited to costs determined to be eligible under the CRC Round 2 Program.

JF/ko
Attachment:

Resolution No. ____
RESOLUTION NO. 26 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

LANCASTER AUTHORIZING THE CITY MANAGER OR

DESIGNEE TO APPLY FOR AND ACCEPT, IF AWARDED, A

STRATEGIC GROWTH COUNCIL COMMUNITY
RESILIENCE CENTERS ROUND 2 IMPLEMENTATION

GRANT, EXECUTE RELATED DOCUMENTS, AND

APPROPRIATE GRANT FUNDS
WHEREAS, the California Strategic Growth Council administers the Community Resilience Centers (CRC) Program to support the planning, construction, retrofit, and operation of facilities that provide shelter, resources, programs, and services that strengthen community resilience during climate and other emergencies; and
WHEREAS, CRC Round 2 includes Implementation Grant awards ranging from $1,000,000 to $10,000,000 for eligible capital improvements, facility upgrades, community resilience programs and services, community engagement, and related implementation activities; and
WHEREAS, the City of Lancaster intends to submit a CRC Round 2 Implementation Grant application for eligible activities associated with the Multi-Agency Regional Resiliency Center (MARRC) at the Antelope Valley Fairgrounds; and
WHEREAS, the City and the Antelope Valley Fairgrounds Authority have entered into a Joint Use and Irrevocable License Agreement establishing long-term City use and access rights to the Community Facilities and providing first-priority use for emergency shelter and operational uses during an emergency; and
WHEREAS, the proposed CRC project may include eligible remaining facility improvements, furniture, fixtures and equipment, technology and communications systems, emergency support capabilities, accessibility improvements, and year-round community resilience programs and services, with the final scope and budget to be established in accordance with CRC Round 2 requirements; and ;
WHEREAS, CRC Round 2 requires Implementation Grant applicants to establish eligible project partnerships and collaborative governance arrangements, which may require letters of commitment, collaborative governance documents, agreements, certifications, and related application materials; and
WHEREAS, the City Council desires to authorize the City Manager, or designee, to apply for and accept, if awarded, CRC Round 2 Implementation Grant funding and to execute the documents necessary to apply for and administer such funding.

Resolution No.

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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LANCASTER, AS FOLLOWS:

Section 1. The City Manager, or designee, is authorized to prepare, submit, and execute an application to the California Strategic Growth Council for a Community Resilience Centers Round 2 Implementation Grant in an amount permitted by the program, up to $10,000,000, for eligible activities associated with MARRC.

Section 2. The City Manager, or designee, is authorized to accept CRC Round 2 Implementation Grant funds if awarded and to execute the grant agreement and any amendments, certifications, assurances, and other documents necessary to accept and administer the award, subject to City Attorney approval.

Section 3. The City Manager, or designee, is authorized to negotiate and execute letters of commitment, collaborative governance documents, partner agreements, memoranda of understanding, and other application or implementation documents necessary for the CRC Round 2 application and grant, subject to City Attorney approval and provided such documents are consistent with the approved grant scope and City policies.

Section 4. If awarded, the City agrees to use CRC funds only for eligible activities and in accordance with the approved application, grant agreement, program guidelines, and applicable State and City requirements.

Section 5. The City Manager, or designee, is authorized to establish or cause to be established the appropriate revenue and expenditure accounts and to appropriate awarded grant funds for eligible grant activities in accordance with the approved grant agreement and City financial policies.

Section 6. This resolution shall take effect immediately upon its passage.

Resolution No.

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PASSED, APPROVED and ADOPTED this _______ day of _________, _______, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
______________________________ ______________________________ ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES }ss
CITY OF LANCASTER }

CERTIFICATION OF RESOLUTION

CITY COUNCIL
I, ________________________________, ___________________________________ City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Resolution No. , for which the original is on file in my office.

WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _________ day of ________________, ________.
(seal)
___________________________________

STAFF REPORT
City of Lancaster
CC 17
9/8/2026
TN
Date:September 8, 2026
To: Mayor Parris and City Council Members
From:Allison Burns, City Attorney
Subject:Approval of Professional Services Agreements for Tort Defense Legal Services with Aleshire & Wynder, Bergman Davey Goldsmith, Best Best & Krieger LLP, Burke Williams & Sorensen LLP, Civica Law Group, APC, Kjar McKenna & Stockalper LLP, Serviam by Wright LLP as a result of Planning, Housing, Environmental, & Tort Defense Legal Services (RFP No. 883-26) Recommendation:

1. Approve Professional Services Agreements for Tort Defense Legal Services with Aleshire & Wynder, Bergman Davey Goldsmith, Best Best & Krieger LLP, Burke Williams & Sorensen LLP, Civica Law Group, APC, Kjar McKenna & Stockalper LLP, and Serviam by Wright LLP, for an aggregate amount not to exceed $900,000 annually, to be shared among all seven firms on an as- needed basis, for an initial three (3)-year term, with two (2) additional one (1)-year options to extend the Agreement period upon mutual written agreement.

2. Authorize the City Manager to execute the Agreements, subject to City Attorney approval as to form.

G.C. Section 84308: No
Fiscal Impact:

The selected firms will be utilized on an as-needed basis and assigned cases based on subject-matter expertise, caseload, funding considerations, and case complexity. The $900,000 annual budget for Tort Defense Legal Services is a shared amount among all seven firms and is not an amount allocated individually to each firm. Expenditures will be incurred based on actual legal services provided and will be managed within the available Risk Management legal services budget (GL 11313200-5740). The aggregate maximum amount for all seven firms over the initial three-year term is $2,700,000, subject to annual budget appropriations. If both one-year extension options are exercised, the aggregate maximum amount over the potential five-year term would be $4,500,000, subject to annual budget appropriations. 2 5
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The current fiscal year approved budget for these services is $900,000. No additional General Fund appropriation is requested at this time. Funding for subsequent fiscal years, including any extension periods, will be subject to annual budget appropriations approved by the City Council.

Background:

On June 12 th, 2026, the City issued a Request for Proposals (RFP) No. 883-26 for Planning, Housing, Environmental, & Tort Defense Legal Services. The purpose of the RFP was to secure qualified municipal legal counsel with expertise in Planning, Housing, Environmental, Tort Defense, and related municipal litigation support. The retirement of the long-tenured Tort Defense Attorney has created an urgent need to secure Tort Defense Legal Services.

Proposals were evaluated by a staff committee using the criteria identified in the RFP, including:
 Quality and effectiveness of proposed services
 Technical Plan & Scheduled Approach
 Relevant municipal experience and staff qualifications  Cost to the City

Following evaluation, Aleshire & Wynder, Bergman Davey Goldsmith, Best Best & Krieger LLP, Burke Williams & Sorensen LLP, Civica Law Group, APC, Kjar McKenna & Stockalper LLP, Serviam by Wright LLP were determined to be the most qualified firms based on demonstrated experience representing California municipalities, extensive expertise in Tort Defense, and the ability to provide responsive and strategic legal support aligned with the City’s objectives.

The selected firms will be chosen by the City Manager and City Attorney on an as-needed basis and will be assigned cases based on subject-matter expertise, caseload, and case complexity.

Attachment:

N/A
4907-6178-9389v1/022283-0548

STAFF REPORT
City of Lancaster
CC 18
9/8/2026
TN
Date: September 8, 2026
To: Mayor Parris and City Council Members
From: Allison E. Burns, City Attorney
Subject: Approval of Rate Increase for Legal Services Provided by Bremer Whyte Brown & O'Meara LLP
Recommendation:

Staff recommends that the City Council acknowledge and approve the rate increase proposed by Bremer Whyte Brown & O'Meara LLP (BWBO) for legal services, effective August 1, 2026.

G.C. Section 84308: No
Fiscal Impact:

BWBO will be utilized on an as-needed basis and assigned cases based on subject-matter expertise, caseload, funding considerations, and case complexity. The $900,000 annual budget for Tort Defense Legal Services is shared among all tort defense firms hired by the City and is not an amount allocated individually to each firm. Expenditures will be incurred based on actual legal services provided and will be managed within the available Risk Management legal services budget (GL 11313200-5740).

Background:

Bremer Whyte Brown & O'Meara LLP has served as outside legal counsel to the City of Lancaster since approximately 2015. The firm specializes in litigation and public entity defense matters. On August 26, 2026, BWBO informed the City of its rate increase to $300 per hour for partners and associates and $165 per hour for law clerks and paralegals.

The firm's last rate increase was implemented in July 2022, representing a four-year period without adjustment. The firm has indicated that periodic rate increases are necessary to obtain and maintain attorneys who provide an excellent level of litigation skill and public entity defense experience.

The firm notes that recruiting and retaining qualified attorneys with public entity defense experience continues to be a challenge in today's legal market.

STAFF REPORT
Lancaster Housing Authority
HA CC 1
9/8/2026
TN
Date:September 8, 2026
To: Chair Parris and Housing Authority Members
From:Patti Garibay, Director - Community Development
Becky Bartlett, Manager – Housing
Subject:Exclusive Negotiating Agreement with Juniper Crossing LP Recommendations:

1. Authorize the Executive Director or his designee to negotiate, finalize, and execute an Exclusive Negotiating Agreement (ENA) with Juniper Crossing LP to enter into negotiations for 180 days for the potential disposition of property owned by the Lancaster Housing Authority. No deposit will be required.

2. Authorize the Executive Director or his designee to negotiate, finalize, and execute all related documents in a form approved by the City Attorney.

G.C. Section 84308: No
Fiscal Impact:

There is no impact on the General Fund.

Background:

The Lancaster Housing Authority ("Authority") owns several properties designated for the development of affordable housing. These include HNR-6, located at the northeast corner of Beech Avenue and Avenue J-2 (Assessor's Parcel Numbers (APNs) 3132-010-900, 3132-010-901, 3132- 010-902, 3132-010-903, and 3132-010-904); HNR-7, located at the southeast corner of West Newgrove Street and Beech Avenue (APN 3134-021-900); and HNR-9, located near the northeast corner of Beech Avenue and Avenue J-7 (APNs 3132-012-901, 3132-013-900, 3132-013-901, 3132-013-902, 3132-013-903, and 3132-013-904).

The proposed agreement represents the Authority's first significant step toward realizing the development potential of this site. Juniper Crossing LP has expressed interest in acquiring approximately 3.7 acres of the property and pursuing the necessary entitlements to develop approximately 149 affordable housing units.
2 5
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The proposed development will provide high-quality one-, two-, and three-bedroom apartment homes serving households earning between 30% and 60% of Area Median Income (AMI), with a strong emphasis on family housing. The proposed unit mix is intended to enhance marketability, improve construction efficiency, and support long-term operational sustainability while advancing the Authority's objective of providing high-quality, family-oriented affordable housing. The project is also expected to include community amenities and open spaces designed to enhance residents' quality of life and foster a connected, vibrant neighborhood.

The proposed ENA authorizes the Authority and Juniper Crossing LP to enter into formal negotiations with the objective of preparing a Disposition and Development Agreement (DDA) governing the sale and development of the property. The initial ENA term is up to 180 days. If the parties agree upon a term sheet within that period, the ENA will remain in effect for up to 12 months from its Effective Date to negotiate and execute the DDA. Should the parties be unable to reach mutually acceptable terms during the negotiation period, the Authority may resume marketing the property to other qualified developers. Execution of the ENA does not obligate the Authority to sell the property, and any resulting DDA will remain subject to approval by the Authority.

The proposed project represents an important opportunity to advance the Authority's mission of expanding Lancaster's supply of affordable housing. By developing 149 affordable homes across three Authority-owned sites, the project would create housing opportunities for families and other income-qualified households while helping address the City's ongoing housing needs. If successfully completed, the development will provide a lasting public benefit by increasing the availability of high-quality affordable housing, promoting long-term neighborhood stability, and supporting a more inclusive and resilient Lancaster community.

Attachment:

Draft Exclusive Negotiation Agreement with Juniper Crossing LP 1650\01\5053743.2
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CITY OF LANCASTER

EXCLUSIVE NEGOTIATION AGREEMENT
THIS EXCLUSIVE NEGOTIATION AGREEMENT (“Agreement”) is dated as of September 08, 2026 (“Effective Date”), for reference purposes only, and is entered into by and between the City of Lancaster, a California municipal corporation (“City”), and Juniper Crossing LP, a California limited partnership (“Developer”). The City and Developer are sometimes referred to in this Agreement individually, as a “Party” and, collectively, as the “Parties.” This Agreement is entered into by the Parties with reference to the following recited facts:

RECITALS
A.The City owns approximately 3.7 acres of real property containing three properties, commonly referred to as Housing Neighborhood Revitalization (HNR): 1) HNR-6 is located at the northeast corner of Beech Avenue and Avenue J-2 (Assessor’s Parcel Number (APNs) 3132-010-900, 3132-010-901, 3132-010-902, 3132-010- 903 and 3132-010-904), 2) HNR-7 is located at the northeast corner of West Newgrove Street and Beech Avenue (APN 3134-021-900), and 3) HNR-9 is located near the northeast corner of Beech Avenue and Avenue J-7 (APNs 3132-012-901, 3132-013-900, 3132-013-902, 9132-013-901, 3132-013-904, 3132-013-903) in Lancaster, California, more particularly described on Exhibit A attached hereto and depicted on Exhibit A attached hereto (the “Property”).

B.Developer is interested in acquiring approximately 3.7 acres of the Property from City (depicted in Exhibit B;), and thereafter, securing all necessary entitlements to develop three properties with approximately 149 units of affordable housing.

C.The intent of the City and Developer in entering into this Agreement is to establish a specific, limited period of time to negotiate the terms of a future agreement between the Parties governing the potential disposition and development of the Developer DDA.

NOW, THEREFORE, in view of the goals and objectives of the City relating to the development of the property, and the promises of the City and Developer set forth in this Agreement, the City and Developer agree, as follows:

1. Term of Agreement. The City and Developer have 180 days from the Effective Date to agree on a term sheet detailing terms similar to the example in Exhibit C. If the Parties fail to reach agreement on the term sheet by the 180-day deadline, this Agreement expires. If the Parties agree on a term sheet by the 180-day deadline, this Agreement continues, and the Parties have until 12 months from the Effective Date to negotiate and execute the DDA. Notwithstanding the 1650\01\5053743.2
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foregoing, the City Manager may, in the City Manager's sole discretion, grant Developer one (1) extension of the Negotiation Period for a period not to exceed one hundred eighty (180) days upon Developer's written request submitted prior to the expiration of the Negotiation Period. In considering such request, the City Manager may consider whether the Parties are continuing to negotiate in good faith and whether Developer is actively pursuing due diligence, environmental review, financing, entitlements, or other activities reasonably necessary to advance the proposed development. Any such extension shall be evidenced by a written notice or amendment executed by the City Manager and Developer and shall not require further approval by the City Council.

The initial 180-day period to reach agreement on a term sheet, the 12-month period to reach agreement on a DDA and the extension, if applicable, are the “Negotiation Period.”

2. Negotiation of DDA. During the Negotiation Period, the Parties will attempt to negotiate a DDA diligently and in good faith. Nothing in this Agreement binds either Party to reach an agreement on a DDA.

3. Each Party to Pay Respective Costs and Expenses. Each Party is responsible for its own expenses in connection with this Agreement and the DDA negotiation.

4. Appraisal of Property. During the Negotiation Period, either Party may, at its sole expense, obtain an appraisal of the property to determine its fair market value to aid the Parties in negotiating a purchase price as part of the DDA. The City will share with Developer any appraisals obtained. Developer will share with the City any appraisals obtained.

5. Right of Entry for Due Diligence. During the Negotiation Period, the City shall permit Developer and its officers, employees, agents, consultants, contractors, engineers, architects, surveyors, environmental professionals, and other authorized representatives to enter upon the Property, upon not less than forty-eight (48) hours prior written notice to the City, for the purpose of conducting customary due diligence and predevelopment activities related to the proposed development. Such activities may include, without limitation, environmental investigations, Phase I and Phase II environmental assessments, geotechnical and soils investigations, ALTA and boundary surveys, utility investigations, appraisals, architectural and engineering evaluations, site inspections, and other studies reasonably necessary to evaluate the feasibility of the proposed development. Developer shall perform all such activities in a commercially reasonable manner, shall repair any material damage to the Property resulting from intrusive testing and restore the Property to substantially the same condition existing immediately prior to such testing, reasonable wear and tear excepted, and shall indemnify, defend, and hold harmless the City, its officers, officials, employees, and agents from and against any claims, liabilities, damages, costs, or expenses arising out of Developer's entry onto the Property, except to the extent caused by the negligence or willful misconduct of the City or its officers, employees, or agents.

6. CEQA. Developer agrees that the City is by law entitled or required to exercise discretion in various ways concerning development of the property, including but not limited to in 1650\01\5053743.2
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considering entitlements and permits for the development, as well as adoption of any amendments to City ordinances, regulations, or planning or policy documents. The Parties recognize that execution of this Agreement does not constitute “approval” of a “project,” as those terms are defined by the California Environmental Quality Act and does not limit the ability of the City to consider alternatives or mitigation measures for any project that might arise and be subject to CEQA.

7. Exclusivity. During the Negotiation Period, the City and City staff may not negotiate with any other person or entity concerning the property. The City may receive and retain unsolicited offers regarding the property, but the City may not negotiate with the proponent of any such offer during the Negotiation Period. The City may disclose the fact that the City is a party to this Agreement.

8. Acknowledgments and Reservations. If this Agreement expires or is terminated for any reason, or a future DDA is not approved and executed by both the City and Developer for any reason, neither Party is under any obligation, nor has any liability to the other or to any other person regarding the property. Neither Party is bound by any statement, promise, or representation made by the other Party’s staff or representatives during the course of negotiations of a future DDA.

The Parties will only be legally bound after a complete DDA is approved and executed by both the Parties, each in its respective absolute discretion following one or more duly noticed public hearings as required by law.

9. Breach. If a Party commits a material breach of this Agreement and the Party does not cure the breach within 30 days, the exclusive remedy of the Party who has not breached is to terminate this Agreement by serving written notice of termination on the breaching Party.

10. Notice. Any notice or instrument required to be delivered under this Agreement must be delivered at the addresses shown below.

TO DEVELOPER: Attn: Juniper Crossing LP, a
California limited partnership
Attn: President & CEO
1259 E. Thousand Oaks Blvd.,
Thousand Oaks, CA 91362
Phone:805.496.4948 x227
Email: [email protected]
TO CITY OF LANCASTER Attn: City Manager
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44933 Fern Avenue,
Lancaster, CA 93534
Phone: 661-723-6000
Email: [email protected]

11. Counterpart Originals. This Agreement may be executed by the Parties in multiple counterpart originals, all of which together constitute a single agreement. The Parties may sign this Agreement electronically.

12. No Third-Party Beneficiary; Assignees. Nothing in this Agreement is intended to benefit any person or entity other than the City and Developer. Developer may not assign its rights under this Agreement without the City’s written consent, which the City may grant or withhold at its sole discretion; except that the City may not unreasonably withhold its consent if the assignment is to a Developer-owned and controlled entity.

13. Governing Law. This Agreement is governed by exclusively by the laws of the State of California, without application of any conflict-of-laws principles or statutes. Venue for any dispute regarding the Agreement lies exclusively in the courts in Los Angeles County, California.

14. Waivers. No waiver of any breach of any term or condition contained in this Agreement may be deemed a waiver of any preceding or succeeding breach of such term or condition, or of any other term or condition contained in this Agreement. No extension of the time for performance of any obligation or act, no waiver of any term or condition of this Agreement, nor any modification of this Agreement is enforceable against either Party unless it is made in writing and executed by both Parties.
[Signature Page Follows]
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CITY:

CITY OF LANCASTER,
a California municipal corporation
By: ______________________________
Trolis Niebla, City Manager
APPROVED AS TO FORM:

By: _____________________________
City Attorney

ATTEST:

BY: ______________________________
City Clerk

DEPARTMENT HEAD APPROVAL
BY: _______________________________
DEVELOPER:

Juniper Crossing LP,
a California limited partnership
By: Juniper Crossing LLC,
a California limited liability company,
its Managing General Partner
By: ________________________________
Rick Schroeder
President & CEO
And
By: HH Beech AGP, LLC,
a California limited liability company,
its Administrative General Partner
By: ________________________________
Alexander Russell
Chief Executive Officer
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EXHIBIT A-1
Legal Description of Property
[See Attached]
I. For APN/Parcel ID(s): 3132-010-900, 3132-010-901, 3132-010-902, 3132-010-903 and 3132-010-904

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF

LANCASTER, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

PARCEL 1: (APN 3132-010-900)
A)THE SOUTH 52.00 FEET OF THE NORTH 156.00 FEET OF THE WEST 150.00 FEET OF THE FOLLOWING DESCRIBED LAND:

THAT PORTION OF THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 22, TOWNSHIP 7 NORTH, RANGE 12 WEST, SAN BERNARDINO MERIDIAN, IN THE

CITY OF LANCASTER, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE EASTERLY LINE OF BEECH STREET, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED NOVEMBER 20, 1940, IN BOOK 18025, PAGE 25, OFFICIAL RECORDS OF SAID COUNTY, DISTANT THEREON SOUTH 650.99 FEET FROM THE INTERSECTION OF THE PROLONGATION OF SAID EASTERLY LINE WITH THE NORTH LINE OF SAID SECTION 22; THENCE ALONG SAID EASTERLY LINE NORTH 210.99 FEET TO THE SOUTHERLY OF THE NORTH 440 FEET OF SAID SECTION; THENCE PARALLEL WITH SAID NORTH LINE, NORTH 89° 50' 00" EAST 220.00 FEET MORE OR LESS, TO THE NORTHEASTERLY LINE OF THAT

CERTAIN EASEMENT FOR SEWER PURPOSES, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED FEBRUARY 7, 1945 IN BOOK 21652, PAGE 298 OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG SAID NORTHEASTERLY LINE, SOUTH 7° 26' 30" EAST 100.81 FEET TO THE SOUTH LINE OF THE NORTH 540 FEET OF SAID SECTION; THENCE PARALLEL WITH SAID NORTH LINE NORTH 89° 50' 00" EAST 29.02 FEET MORE OR LESS, TO A POINT DISTANT SOUTH 89° 50' 00" WEST 250 FEET FROM THE INTERSECTION OF SAID PARALLEL LINE WITH THE WESTERLY LINE OF SIERRA HIGHWAY 60 FEET WIDE, AS DECLARED A PUBLIC HIGHWAY AND SHOWN ON COUNTY SURVEYORS MAP NO. 8045 ON FILE IN THE OFFICE OF THE COUNTY SURVEYOR OF SAID COUNTY; THENCE SOUTHEASTERLY IN A DIRECT LINE 111.45 FEET, MORE OR LESS, TO A POINT IN A LINE EXTENDING NORTH 89° 44' 37" EAST FROM THE POINT OF BEGINNING DISTANT THEREON SOUTH 89° 44' 37" WEST 250 FEET FROM THE WESTERLY LINE OF SIERRA HIGHWAY; THENCE SOUTH 89° 44' 37" WEST 284.50 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. 1650\01\5053743.2
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B)AN EASEMENT FOR INGRESS AND EGRESS OVER THE EAST 20 FEET OF THE WEST 170 FEET OF THE FOLLOWING DESCRIBED PROPERTY:

BEGINNING AT A POINT IN THE EASTERLY LINE OF BEECH STREET, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED NOVEMBER 20, 1940 IN BOOK 18025, PAGE 25 OFFICIAL RECORDS OF SAID COUNTY DISTANT THEREON SOUTH 650.99 FEET FROM THE INTERSECTION OF PROLONGATION OF SAID

EASTERLY LINE WITH THE NORTH LINE OF
SAID SECTION 22; THENCE ALONG SAID EASTERLY LINE NORTH 210.99 FEET TO THE
SOUTHERLY LINE OF THE NORTH 440 FEET TO SAID SECTION, THENCE PARALLEL WITH SAID NORTH LINE, NORTH 89° 50' 00" EAST 220.00 FEET, MORE OR LESS, TO

THE NORTHEASTERLY LINE OF THAT CERTAIN EASEMENT FOR SEWER PURPOSES,

AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED FEBRUARY 7, 1945 IN BOOK 21652, PAGE 298 OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG SAID NORTHEASTERLY LINE, SOUTH 7° 26' 30" EAST 100.81 FEET TO THE SOUTH LINE OF THE NORTH 540 FEET OF SAID SECTION; THENCE PARALLEL WITH SAID NORTH LINE 89° 50' 00" EAST 29.02 FEET, MORE OR LESS, TO A POINT DISTANT SOUTH 89° 50' 00" WEST 250 FEET FROM THE INTERESECTION OF SAID PARALLEL LINE WITH THE WESTERLY LINE OF SIERRA HIGHWAY 60 FEET

WIDE, AS DECLARED A PUBLIC HIGHWAY AND SHOWN ON COUNTY SURVEYOR'S MAP NO. 8045 ON FILE IN THE OFFICE OF THE COUNTY SURVEYOR OF SAID COUNTY; THENCE SOUTHEASTERLY IN A DIRECT LINE 111.45 FEET, MORE OR LESS, TO A POINT IN A LINE EXTENDING NORTH 89° 44' 37" EAST FROM THE POINT OF BEGINNING DISTANT THEREON SOUTH 89° 44' 37" WEST 250 FEET FROM THE WESTERLY LINE OF SAID SIERRA HIGHWAY; THENCE SOUTH 89° 44' 37" WEST 284.50 FEET, MORE OR LESS TO THE POINT OF BEGINNING.

C) THE WEST 150.00 FEET OF THE FOLLOWING DESCRIBED LAND:

THAT PORTION OF THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 22, TOWNSHIP 7 NORTH, RANGE 12 WEST, SAN BERNARDINO MERIDIAN, IN THE

CITY OF LANCASTER, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE EASTERLY LINE OF BEECH STREET, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED NOVEMBER 20, 1940, IN BOOK 18025, PAGE 25, OFFICIAL RECORDS OF SAID COUNTY, DISTANT THEREON SOUTH 650.99 FEET FROM THE INTERSECTION OF THE PROLONGATION OF SAID EASTERLY LINE WITH THE NORTH LINE OF SAID SECTION 22; THENCE ALONG SAID EASTERLY LINE NORTH 210.99 FEET TO THE SOUTHERLY LINE OF THE NORTH 440 FEET OF SAID SECTION; THENCE PARALLEL WITH SAID NORTH LINE, NORTH 89° 50' 00" EAST 220.00 FEET MORE OR LESS, TO THE NORTHEASTERLY LINE OF THAT

CERTAIN EASEMENT FOR SEWER PURPOSES, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED FEBRUARY 7, 1945, IN BOOK 21652, PAGE 298 OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG SAID NORTHEASTERLY LINE, SOUTH 7° 26' 30" EAST 100.81 FEET TO THE SOUTH LINE OF THE NORTH 540 1650\01\5053743.2
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FEET OF SAID SECTION; THENCE PARALLEL WITH SAID NORTH LINE NORTH 89° 50' 00" EAST 29.02 FEET MORE OR LESS, TO A POINT DISTANT SOUTH 89° 50' 00" WEST 250 FEET FROM THE INTERSECTION OF SAID PARALLEL LINE WITH THE WESTERLY LINE OF SIERRA HIGHWAY 60 FEET WIDE, AS DECLARED A PUBLIC HIGHWAY AND SHOWN ON COUNTY SURVEYORS MAP NO. 8045 ON FILE IN THE OFFICE OF THE COUNTY SURVEYOR OF SAID COUNTY; THENCE SOUTHEASTERY IN A DIRECT LINE 111.45 FEET, MORE OR LESS, TO A POINT IN A LINE EXTENDING NORTH 89° 44' 37" EAST FROM THE POINT OF BEGINNING DISTANT THEREON SOUTH 89° 44' 37" WEST 250 FEET FROM THE WESTERLY LINE OF SIERRA HIGHWAY THENCE SOUTH 89° 44' 37" WEST 284.50 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

EXCEPT THE NORTH 116 FEET, MEASURED FROM THE MOST NORTHERLY LINE OF THE ABOVE DESCRIBED PROPERTY.

D) AN EASEMENT FOR INGRESS AND EGRESS OVER THE EAST 20 FEET OF THE WEST 170 FEET OF THE FOLLOWING DESCRIBED PROPERTY:

BEGINNING AT A POINT IN THE EASTERLY LINE OF BEECH STREET, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED NOVEMBER 20, 1940, IN BOOK 18025, PAGE 25 OFFICIAL RECORDS OF SAID COUNTY DISTANT THEREON SOUTH 650.99 FEET FROM THE INTERSECTION OF PROLONGATION OF SAID EASTERLY LINE WITH THE NORTH LINE OF SAID SECTION 22; THENCE ALONG SAID EASTERLY LINE NORTH 210.99 FEET TO THE SOUTHERLY LINE OF THE NORTH 440 FEET TO SAID SECTION, THENCE PARALLEL WITH SAID NORTH LINE, NORTH 89° 50' 00" EAST 220.00 FEET, MORE OR LESS, TO THE NORTHEASTERLY LINE OF THAT

CERTAIN EASEMENT FOR SEWER PURPOSES, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED FEBRUARY 7, 1945 IN BOOK 21652, PAGE 198 OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG SAID NORTHEASTERLY LINE, SOUTH 7° 26' 30" EAST 100.81 FEET TO THE SOUTH LINE OF THE NORTH 540 FEET OF SAID SECTION; THENCE PARALLEL WITH SAID NORTH LINE 89° 50' 00" WEST 29.02 FEET, MORE OR LESS, TO A POINT DISTANT SOUTH 89° 50' 00" WEST 250

FEET FROM THE INTERSECTION OF SAID PARALLEL LINE WITH THE WESTERLY LINE OF SIERRA HIGHWAY 60 FEET WIDE, AS DECLARED A PUBLIC HIGHWAY AND SHOWN ON COUNTY SURVEYORS MAP NO. 8045 ON FILE IN THE OFFICE OF THE COUNTY SURVEYOR OF SAID COUNTY; THENCE SOUTHEASTERLY IN A DIRECT LINE 111.45 FEET, MORE OR LESS, TO A POINT IN A LINE EXTENDING NORTH 89° 44' 37" EAST FROM THE POINT OF BEGINNING DISTANT THEREON SOUTH 89° 44' 37" WEST 250 FEET FROM THE WESTERLY LINE OF SAID SIERRA HIGHWAY, THENCE SOUTH 89° 44' 37" WEST 284.50 FEET, MORE OR LESS, TO THE POINT OF BEGINNING.

PARCEL 2: (APN 3132-010-901)
THE SOUTH 57.5 FEET OF NORTH 440 FEET OF THAT PORTION OF THE NORTH HALF OF THE SOUTHWEST QUARTER OF SECTION 22, TOWNSHIP 7 NORTH, RANGE 12

WEST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL

PLAT OF THE SURVEY OF SAID LAND ON FILE IN THE BUREAU OF LAND 1650\01\5053743.2
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MANAGEMENT, BOUNDED EAST BY THE WEST LINE OF THE SOUTHERN PACIFIC RAILROAD COMPANYS RIGHT OF WAY, 200 FEET WIDE, BOUNDED WEST BY A LINE

EXTENDING DUE SOUTH FROM THE INTERSECTION OF THE NORTH LINE OF SAID

SECTION WITH THE CENTER LINE OF BEECH AVENUE AS SHOWN ON MAP OF LANCASTER CHAMBER OF COMMERCE SUBDIVISION NO. 1, IN THE CITY OF LANCA5TER, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, RECORDED IN BOOK 3, PAGE 40 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPT THEREFROM THAT PORTION OF SAID LAND LYING EASTERLY OF A LINE PARALLEL WITH DISTANT 3 FEET EASTERLY FROM THE SOUTHERLY AT THE CENTER LINE OF THE ALLEY IN BLOCK "A" AS SHOWN ON THE MAP OF SAID LANCASTER CHAMBER OF COMMERCE SUBDIVISION NO. 1.

PARCEL 3: (APN 3132-010-902)
A) THE SOUTH 52 FEET OF THE NORTH 104 FEET (SAID DISTANCES BEING

MEASURED ALONG

THE WESTERLY LINE) OF THAT PORTION OF THE NORTH HALF OF THE

NORTHEAST
QUARTER OF SECTION 22, TOWNSHIP 7 NORTH, RANGE 12 WEST, SAN BERNARDINO

BASE AND MERIDIAN, IN THE CITY OF LANCASTER, COUNTY OF LOS ANGELES,

STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND, DESCRIED AS FOLLOWS:

BEGINNING AT A POINT IN THE EASTERLY LINE OF BEECH STREET, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED NOVEMBER 20, 1940, INSTRUMENT NO. 1319, IN BOOK 18025, PAGE 25 OF OFFICIAL RECORDS, DISTANT SOUTH THEREON 644.91 FEET FROM THE INTERSECTION OF THE NORTHERLY

PROLONGATION OF SAID EASTERLY LINE WITH THE NORTH LINE OF SAID SECTION 22; THENCE NORTH ALONG THE SAID EASTERLY LINE 204.91 FEET TO THE SOUTHERLY LINE OF THE NORTH 440 FEET OF SAID SECTION; THENCE PARALLEL WITH SAID NORTH LINE NORTH 89° 50' 00" EAST 170 FEET; THENCE SOUTH PARALLEL WITH SAID EAST LINE 204.92 FEET TO A LINE THAT IS PARALLEL WITH

SAID NORTH LINE OF SAID SECTION AND PASSES THROUGH THE POINT OF BEGINNING; THENCE WESTERLY ALONG SAID LAST MENTIONED PARALLEL LINE 170 FEET TO THE POINT OF BEGINNING.

B) AN EASEMENT FOR DRIVEWAY PURPOSES OVER THE EASTERLY 20 FEET OF

THAT PORTION OF THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 22, TOWNSHIP 7 NORTH, RANGE 12 WEST, SAN BERNARDINO BASE AND MERIDIAN,

ACCORDING TO THE OFFICIAL PLAT OF THE SURVEY OF SAID LAND FILED IN THE BUREAU OF LAND MANAGEMENT, DESCRIBED AS FOLLOWS:
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BEGINNING AT A POINT N THE EASTERLY LINE OF BEECH STREET, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED NOVEMBER 20, 1940, AS INSTRUMENT NO. 1319, IN BOOK 18025, PAGE 25 OF OFFICIAL RECORDS, DISTANT SOUTH THEREON 644.91 FEET FROM THE INTERSECTION OF THE

NORTHERLY PROLONGATION OF SAID EASTERLY LINE AND WITH THE NORTH LINE OF SAID SECTION 22; THENCE NORTH ALONG SAID EASTERLY LINE 204.91 FEET TO THE SOUTHERLY LINE OF THE NORTH 440 FEET OF SAID SECTION; THENCE PARALLEL WITH SAID NORTH LINE NORTH 89° 50' 00" EAST 170 FEET; THENCE SOUTH PARALLEL WITH SAID EAST LINE 204.92 FEET TO A LINE THAT IS

PARALLEL WITH SAID NORTH LINE OF SAID SECTION AND PASSES THROUGH THE POINT OF BEGINNING; THENCE WESTERLY ALONG SAID LAST PARALLEL LINE 170 FEET TO THE POINT OF BEGINNING.

PARCEL 4: (APN 313-010-903)
A) THE NORTH 52 FEET, MEASURED ALONG THE WESTERLY LINE OF THAT PORTION OF SECTION 22, TOWNSHIP 7 NORTH, RANGE 12 WEST, SAN BERNARDINO

BASE AND MERIDIAN, IN THE CITY OF LANCASTER, COUNTY OF LOS ANGELES,

STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE EASTERLY LINE OF BEECH STREET, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED NOVEMBER 20, 1940, AS INSTRUMENT NO. 1319, IN BOOK 18025 PAGE 25, OFFICIAL RECORDS, DISTANT SOUTH THEREON 544.91 FEET FROM THE INTERSECTION OF THE NORTHERLY

PROLONGATION OF SAID EASTERLY LINE WITH THE NORTH LINE OF SAID SECTION 22; THENCE NORTH ALONG SAID EASTERLY
LINE 204.91 FEET TO THE SOUTHERLY LINE OF THE NORTH 440 FEET OF SAID SECTION;
THENCE PARALLEL WITH SAID NORTH LINE NORTH 89° 50' 00" EAST 170 FEET OF SAID SECTION; THENCE SOUTH PARALLEL WITH SAID EAST LINE 204.92 FEET TO A

LINE THAT IS PARALLEL WITH SAID NORTH LINE OF SAID SECTION AND PASSES THROUGH THE POINT OF BEGINNING; THENCE WERSTERLY ALONG SAID MENTIONED PARALLEL LINE 170 FEET TO THE POINT OF BEGINNING.

B) AN EASEMENT FOR DRIVEWAY PURPOSES OVER THE EASTERLY 20 FEET OF

THAT PORTION OF THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 22, TOWNSHIP 7 NORTH, RANGE 12 WEST, SAN BERNARDINO BASE AND MERIDIAN,

IN THE CITY OF LANCASTER, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE EASTERLY LINE OF BEECH STREET, AS DESCRIBED IN THE DEED TO THE COUNTY OF LOS ANGELES, RECORDED NOVEMBER 20, 1940, AS INSTRUMENT NO. 1319, IN BOOK 18025, PAGE 25, OFFICIAL RECORDS, DISTANT SOUTH THEREON 644.91 FEET FROM THE INTERSECTION OF THE NORTHERLY

PROLONGATION OF SAID EASTERLY LINE WITH THE NORTH LINE OF SAID SECTION 22; THENCE NORTH ALONG SAID EASTERLY LINE 204.91 FEET TO THE 1650\01\5053743.2
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SOUTHERLY LINE OF THE NORTH 440 FEET OF SAID SECTION; THENCE PARALLEL WITH SAID NORTH LINE NORTH 89° 50' 00" EAST 170 FEET OF SAID SECTION; THENCE SOUTH PARALLEL WITH SAID EAST LINE 204.92 FEET TO A LINE THAT IS

PARALLEL WITH SAID NORTH LINE OF SAID SECTION AND PASSES THROUGH THE POINT OF BEGINNING; THENCE WESTERLY ALONG SAID MENTIONED PARALLEL LINE 170 FEET TO THE POINT OF BEGINNING.

PARCEL 5: (APN 3132-010-904)
THE SOUTH 57.5 FEET OF THE NORTH 382.5 FEET OF THAT PORTION OF THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 22, TOWNSHIP 7 NORTH, RANGE 12 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF LANCASTER,

COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL

PLAT OF SAID LAND, BOUNDED ON THE WEST BY A LINE EXTENDING DUE SOUTH

FROM THE INTERSECTION OF THE NORTH LINE OF SAID SECTION WITH THE

CENTER LINE OF BEECH AVENUE, AS SHOWN ON MAP OF LANCASTER CHAMBER OF COMMERCE SUBDIVISION NO. 1, ACCORDING TO THE MAP RECORDED IN BOOK 3 PAGE 40 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY,

AND BOUNDED ON THE EAST BY A LINE THAT IS PARALLEL WITH THE SOUTHERLY PROLONGATION OF THE CENTER LINE OF THE ALLEY IN BLOCK "A"

AS SHOWN ON SAID MAP OF LANCASTER CHAMBER OF COMMERCE SUBDIVISION NO. 1 AND DISTANT 3
FEET EASTERLY AT RIGHT ANGLES THEREFROM.
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1650\01\5053743.2
12 EXHIBIT A-2
Depiction of Property
Beech Avenue and Avenue J-2 (Assessor’s Parcel Number (APNs) 3132-010-900, 3132-010-901, 3132-010-902, 3132-010-903 and 3132-010-904)

1650\01\5053743.2
13 West Newgrove Street and Beech Avenue (APN 3134-021-900)

1650\01\5053743.2
14 Beech Avenue and Avenue J-7 (APNs 3132-012-901, 3132-013-900, 3132-013-902, 9132-013- 901, 3132-013-904, 3132-013-903)

1650\01\5053743.2
14 1650\01\5053743.2
15 EXHIBIT B
Property
HNR-6

1650\01\5053743.2
16 The first subject site is HNR-6, as illustrated in Figure 2, along with its corresponding parcel map in Figure 3. This approximately 1.35-acre site is situated on the east side of Beech Avenue, with its southern boundary adjacent to Avenue J-2. There is a developed parcel to the north of HNR-6, with underutilized parking lots and primarily vacant land to the east. The site consists of undeveloped land that contains little vegetation.

1650\01\5053743.2
17 HNR-7

1650\01\5053743.2
18 The second subject site is HNR-7, as shown in Figure 4 and detailed in its corresponding parcel map in Figure 5. HNR-7 is located at the southeast corner of Newgrove Street and Beech Avenue within the TOD Zones/Midtown Lancaster Specific Plan. It is also situated on the southern edge of the Downtown Lancaster Specific Plan Project Area.

The parcels are bordered to the north by W. Newgrove Street, to the east by an alley, to the south by multi-family properties, and to the west by Beech Avenue. The subject site is just one block west of Sierra Highway.

The project consists of two contiguous legal parcels with a combined area of 12,000 to 15,000 square feet, zoned for Mixed-Use Transit-Oriented Development (MU-TOD). The two lots consist of undeveloped land with minimal vegetation.

HNR-9

1650\01\5053743.2
19 The third subject site is HNR-9, as depicted in Figure 6, along with its corresponding parcel map in Figure 7. This approximately 1.95-acre site is situated on the east side of Beech Avenue, between Avenue J-6 and Avenue J-7, in the Desert View neighborhood. There are developed parcels located to the north, east, and south of HNR-9. The site itself is undeveloped and contains minimal vegetation.

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20 EXHIBIT C

TERM SHEET FOR PROPERTY DISPOSITION AGREEMENT

BETWEEN
THE CITY OF LANCASTER (“CITY”)
AND
___________________________ (“DEVELOPER”)
Draft __, , 2026_

PARTIES AND

PURPOSE
Parties -
Purpose –

DEVELOPMENT

PROGRAM
Development Program –
The Development Program, including initially proposed design, specification and scale of proposed amenities is described in greater detail in EXHIBIT A.

Definition of Material Change to Development Program
Site Plan – A preliminary Project site plan is attached hereto as part of EXHIBIT A.

DEVELOPMENT COST Development Cost –
The details of this estimate are provided in the Overall Cost Estimate in EXHIBIT B.

PROJECT FINANCING/
CITY ASSISTANCE All tentative pro forma budget(s) will be attached as EXHIBIT C.

Scenario 1:

Scenario 2:

ENTITLEMENTS Compliance with Approved Plans –

MARKETING PLAN

TRANSFER OF

PROPERTY

SCHEDULE OF

PERFORMANCE
Completion of Project – See EXHIBIT D for Schedule of
Performance.

AHSC

REQUIREMENTS

COMPLETION

GUARANTEE

SUPPORT AND

COOPERATION
The City and the Developer shall act in full cooperation and collaboration with each other to pursue government permits, 1650\01\5053743.2
21 entitlements, regulatory assurances, oversight agreements, grants, and incentives that support or benefit the Project, so long as such cooperation is at no cost to the City.

STAFF REPORT
City of Lancaster
HA CC 2
9/8/2026
TN
Date:September 8, 2026
To:Mayor Parris and City Council Members
From:Patti Garibay, Director - Community Development
Becky Bartlett, Manager – Community Development
Subject:Cost Recovery Program from Lahontan Regional Water Quality Control Board for Housing and Neighborhood Revitalization-1
Recommendations:

1.Approve the Cost Recovery Program from Lahontan Water Quality Control Board (LRWQCB) in the amount not to exceed $200,000 as the agreement continues in full force and effect until project completion.

2.Authorize the City Manager, or his designee, to finalize and execute all documents related to the Cost Recovery Program.

G.C. Section 84308: No
Fiscal Impact:

Amount not to exceed $200,000 as the agreement continues in full force and effect until project completion. Funding for the current fiscal year is available in Account No. 314.22000.5710.

Background:

The Housing Authority owns Housing and Neighborhood Revitalization-1 (HNR-1), which consists of twenty (20) parcels totaling approximately 5.7 acres located on the southwest corner of West Avenue I and Sierra Highway in a residential and commercial area of Lancaster.

Prior to the City’s acquisition, HNR-1 was developed with residences, retail businesses, gas stations, and automobile repair facilities. All the previous structures were demolished between approximately 2003 and 2011. HNR-1 is currently vacant and unpaved.

Soil and soil vapor sampling conducted between 2021 and 2024 at HNR-1 identified subsurface impacts in soil, soil vapor, and groundwater. The predominant chemical of concern 2 5
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(COC) is perchloroethylene (PCE), which was identified primarily in the Western portion of the Subject Property. Based on the results of off-site soil vapor samples, Waterstone Environmental Inc. (Waterstone) conducted off-site indoor air sampling in residential properties to the south and commercial properties to the north to evaluate the potential for vapor intrusion. No PCE was detected in any indoor air samples.

Waterstone and City staff met with LRWQCB on December 2, 2024, to discuss the Subject Property’s history and findings to date. On December 27, 2024, the LRWQCB sent the City an Initial Cost Recovery Program letter. The Cost Recovery Program proposal is prepared on an annual fiscal-year basis, and a new proposal will be submitted each fiscal year. The Housing Authority received authorization for spending on April 8, 2025.

Porter-Cologne Water Quality Control Act (California Water Code), section 13304, allows the California Regional Water Quality Control Board, Lahontan Region (Water Board), to recover reasonable expenses from responsible parties to oversee the cleanup and abatement of discharges that have adversely affected waters of the State. A cost recovery account will be established for the HNR-1 project, and through that account, the Regional Water Board will charge labor costs for regulatory oversight associated with cleanup efforts at the site. LRWQCB has determined, based on on-site characterization investigations, that there are impacts to the subsurface and groundwater that warrant the need for additional investigations and cleanup of solvents and petroleum hydrocarbons.

LRWQCB estimates that it will require approximately 60 hours at a cost of $245 per hour during Fiscal Year 2026-2027 to perform oversight activities associated with the project.

The LRWQCB is required to provide the City of Lancaster annually with the following information:

1. A detailed estimate of the work to be performed or services to be provided, including a statement of the expected outcome of that work, based upon data available to the agency at the time;

2. The billing rates for all individuals and classes of employees expected to engage in the work or services; and

3. An estimate of all expected charges to be billed to the responsible party by the agency.

Estimate of Work to be Performed
Water Board staff estimates that the following work will be performed during Fiscal Year 2026- 2027 (July 1, 2026, through June 30, 2027):

1. Review and comment on semi-annual groundwater monitoring reports and investigation or remedial action work plans and reports;

2. Conduct site visits and/or technical consultations (e.g., meetings and/or telephone conversations with you or your consultant), phone calls, and meetings to keep informed on the remediation progress; and

3. Prepare any necessary written correspondence, such as internal Water Board communications (e.g., memorandum, meetings, and briefings to management or Board Members), administrative billings, annual cost estimate letter, or other relevant documentation.

The Cost Recovery Program is set up so that reasonable expenses incurred by governmental agencies, such as the Regional Water Boards, in overseeing water quality cleanup matters, can be recovered from the discharger/responsible party. City Staff will meet with the City Attorney regularly to monitor progress and invoices. 2 5
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Attachment:

Exhibit A – Annual Estimate for Cost Recovery Program – W. Avenue I Properties (East) Exhibit B - Annual Estimate for Cost Recovery Program – W. Avenue I Properties (West)

Lahontan Regional Water Quality Control Board
June 12, 2026
GeoTracker: T10000022967

Nicole Jones
Sr. Analyst – Community Development
City of Lancaster
44933 Fern Avenue
Lancaster, CA 93534
[email protected]

Annual Estimate for Cost Recovery Program – W. Avenue I Properties (East), Lancaster – Cost Recovery Code 2060027

Section 13304 of the Porter-Cologne Water Quality Control Act (Porter Cologne) allows the California Regional Water Quality Control Board, Lahontan Region (Water Board) to recover reasonable expenses from responsible parties to oversee cleanup and abatement of discharges, which have adversely affected waters of the state. A cost recovery account has been established for your facility, which is where Regional Water Board time charges are billed to you.

Section 13365 of Porter Cologne requires that annually we provide each responsible party with the following information:

1. A detailed estimate of the work to be performed or services to be provided, including a statement of the expected outcome of that work, based upon data available to the agency at the time;

2. The billing rates for all individuals and classes of employees expected to engage in the work or services; and

3. An estimate of all expected charges to be billed to the responsible party by the agency.

Nicole Jones - 2 - June 12, 2026
Estimate of Work to be Performed and Expected Outcome
Water Board staff estimate that the following work may be performed for the subject site during the fiscal year 2026-2027:

1. Review and comment on semi-annual groundwater monitoring reports and investigation or remedial action work plans and reports;

2. Conduct site visits and/or technical consultations (e.g., meetings and/or telephone conversations with you or your consultant), phone calls and meetings to keep informed on the remediation progress; and

3. Preparation of any necessary written correspondence, such as internal Water Board communications (e.g., memorandum, meetings, and briefings to management or Board Members), administrative billings, annual cost estimate letter, or other relevant documentation.

Billing Rates
Enclosure 1 describes the billing rates for employees expected to engage in the work or services for your facility, including an example of how the hourly billing rate is calculated. The name and classification of employees making charges will be listed on invoices. The average billing rate is approximately $245 per hour.

Estimate of Expected Charges
Water Board staff expects to charge approximately 30 hours in the conduct of cleanup oversight for this project during fiscal year 2026-2027, which runs from 1 July 2026 through 30 June 2027. The number of hours given is merely an estimate, and you will be billed for the actual hours spent. Based on the average billing rate of $245 per hour, the estimated billing charge for the subject site may be $7,350 for fiscal year 2026- 2027. The estimated billing charge for this site is merely an estimate, which will vary depending on the salary of the individual(s) responsible for the oversight.

Invoices
Site Cleanup Program invoices are currently sent by U.S. Postal Service as standard delivery. To opt-in to receiving invoices by email instead of U.S. Postal Service delivery, complete and return the enclosed form (Enclosure 2).

Electronic submittals for your facilities should be through the State’s GeoTracker system. Duplicate submission via ECM is not required for documents that are submitted to GeoTracker. Please be aware that submittal of documents to the general ECM mailbox ([email protected]) does not relieve the requirement to upload electronic information to GeoTracker. GeoTracker information is available to the public at http://geotracker.waterboards.ca.gov. This includes well coordinates, well construction, analytical data, and reports.

Nicole Jones - 3 - June 12, 2026
Should you have any questions, please contact Luis Gomez, Engineering Geologist, at (760) 316-1295 or at ([email protected]) or Christina Guerra, Senior Engineering Geologist at (760) 241-7333 or at ([email protected]).

Christina Guerra, P.G.

Senior Engineering Geologist

Enclosures : 1. Billing Cost Explanation, Fiscal Year 2026-2027

2. Opt-In for Email Invoice Delivery

cc: Tracy Lotz, State Water Board ([email protected]) Site Cleanup, Division of Administrative Services, State Water Board ([email protected])
Jeffrey Dagdigian, Waterstone Environmental ([email protected]) Heather Fields, Waterstone Environmental ([email protected]) Lorien Sanders, Lahontan Water Board ([email protected])

Employee Salary and Benefit by Classification [1]
AEO - Assistant Executive Officer CEA 15,765$ 32,553$ AFCNSL - Staff Counsel (Attorney) 11,786$ 17,786$
AII - Analyst II 9,187$ 11,844$
SFCNSLIII - Staff Counsel III (Attorney) 16,531$ 23,345$ SFCNSLIV - Staff Counsel IV (Attorney) 18,269$ 24,519$ EG - Engineering Geologist 9,883$ 18,607$
EPMI - Environmental Program Manager I 19,119$ 23,767$ EPMII - Environmental Program Manager II 22,187$ 25,206$ ES - Environmental Scientist 6,730$ 14,199$
EOI - Exec Officer I 25,765$ 29,270$
EOII - Exec Officer II 26,396$ 29,980$
RSS - Research Scientist Staff 12,685$ 16,420$
SEG - Senior Engineering Geologist 17,422$ 21,806$ SRES - Senior Environmental Scientist 16,053$ 19,955$ SRES - Senior Environmental Scientist (Spec) 16,534$ 20,554$ SWRCE - Senior Water Resources Control Engineer 17,422$ 21,806$ SSA - Staff Services Analyst 5,881$ 9,847$
SUEG - Supervising Engineering Geologist 19,136$ 23,952$ SUWRCE - Supervising Water Resources Control Engineer 19,136$ 23,952$ WRCE - Water Resources Control Engineer 9,883$ 18,511$ Intermittent Employees:

SA - Scientific Aid $18.26/hour $21.67/hour
Operating Expenses and Equipment [2] (both State and Regional Board offices) Indirect Costs (Overhead + Admin = cost of doing business) 135% Billing Example for One Month Salary
WRCE - Water Resources Control Engineer
Total Direct Labor Charges [3] (per month): 18,511$
Contract Charges (if applicable): -$
Direct Labor Overhead: 13,014$
State Board Program Admin and Overhead: 2,775$
Regional Board Program Admin and Overhead: 9,256$
Total Cost (per month): 43,556
Divided by 176 hours per month equals per hour: 247$
(Due to the various classifications that expend SCP resources an average of $245.00 per hour can be used for projection purposes.) [1] The name and classification of employees performing oversight work will be listed on invoices you receive. [2] The examples are estimates based on recent billings. Actual charges may be slightly higher or lower. [3] Total Direct Labor Charges = Salary and Benefits
Note: The State is currently in negotiations with the unions so the upper limits of these ranges may be subject to change.

STATE WATER RESOURCES CONTROL BOARD

SITE CLEANUP PROGRAM (SCP)

BILLING COST EXPLANATION
Fiscal Year 2026-2027
Salary/Benefits Range
Updated 03/2025
Sta
te Water Resources Control Board Site
Cleanup Program (SCP)
Opt-In for Email Invoice Delivery
Site
Cleanup Program (SCP) invoices are currently sent by U.S. Postal Service as standard delivery. To opt-in to receiving invoices by email instead of U.S. Postal Service delivery, complete and sign this form and return it to your Regional Board caseworker AND [email protected].

I, ______
__________________________, acknowledge that completion of this form will result in SCP invoices being sent by email to the below designated email address(es) and will stop invoice delivery by U.S. Postal Service. I understand that I am solely responsible for ensuring the email address(es) are up-to-date and am responsible for notifying any changes to the email address(es) on file by emailing my Regional Board caseworker AND [email protected] to ensure invoices are received timely. I understand past due notices will only be sent by U.S. Postal Service.

A valid
physical mailing address is required in case hard copy delivery is needed in the future. This designation may be cancelled at any time by emailing your Regional Board caseworker AND [email protected] and invoices will resume delivery by U.S. Postal Service. Further, the State Water Board may make changes to or end its electronic delivery option at any time. The State Water Board will notify the contact(s) listed below if it needs to change or cancel electronic delivery and resume U. S. Postal Service delivery.

To
ensure receipt of invoices, add [email protected] to your trusted email addresses.

BILL

ING CONTACT

BILLING ADDRESS
_________
______________________________
TEL
EPHONE NO.

INVOICE DELIVERY EMAIL ADDRESSES (3 MAX)
__________
__________________________________

RESPONSIBLE PARTY/

AUTHORIZED REPRESENTATIVE
(Signature)
DATE: SITE ID (if applicable): ________ _____ _______ For add
itional invoicing questions, contact us at:
(916)
341-5643 o
r Site
[email protected]

Lahontan Regional Water Quality Control Board
June 12, 2026
GeoTracker: T10000022965
Nicole Jones
Sr. Analyst – Community Development
City of Lancaster
44933 Fern Avenue
Lancaster, CA 93534
[email protected]

Annual Estimate for Cost Recovery Program – W. Avenue I Properties (West), Lancaster – Cost Recovery Code 2060026

Section 13365 of Porter Cologne requires that annually we provide each responsible party with the following information:

1. A detailed estimate of the work to be performed or services to be provided, including a statement of the expected outcome of that work, based upon data available to the agency at the time;

2. The billing rates for all individuals and classes of employees expected to engage in the work or services; and

3. An estimate of all expected charges to be billed to the responsible party by the agency.

1. Review and comment on semi-annual groundwater monitoring reports and investigation or remedial action work plans and reports;

Estimate of Expected Charges
Water Board staff expect to charge approximately 30 hours in the conduct of cleanup oversight for this project during fiscal year 2026-2027, which runs from 1 July 2026 through 30 June 2027. The number of hours given is merely an estimate, and you will be billed for the actual hours spent. Based on the average billing rate of $245 per hour, the estimated billing charge for the subject site may be $7,350 for fiscal year 2026- 2027. The estimated billing charge for this site is merely an estimate, which will vary depending on the salary of the individual(s) responsible for the oversight.

Christina Guerra, P.G.

Senior Engineering Geologist

Enclosures : 1. Billing Cost Explanation, Fiscal Year 2026-2027

2. Opt-In for Email Invoice Delivery

STATE WATER RESOURCES CONTROL BOARD

SITE CLEANUP PROGRAM (SCP)

To
ensure receipt of invoices, add [email protected] to your trusted email addresses.

BILL

ING CONTACT

BILLING ADDRESS
_________
______________________________
TEL
EPHONE NO.

INVOICE DELIVERY EMAIL ADDRESSES (3 MAX)
__________
__________________________________

RESPONSIBLE PARTY/

AUTHORIZED REPRESENTATIVE
(Signature)
DATE: SITE ID (if applicable): ________ _____ _______ For add
itional invoicing questions, contact us at:
(916)
341-5643 o
r Site
[email protected]

2 5
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Date: September 8, 2026

STAFF REPORT
City of Lancaster
HA CC 3
9/8/2026
TN
To: Mayor Parris and City Council Members
From: Patti Garibay, Director – Community Development
Becky Bartlett, Manager – Housing
Subject: Professional Services Agreement with Waterstone Environmental, Inc. for Environmental Consulting Services and Sampling Activities for Investigation and Remediation Activities in Relation to HNR-1
Recommendations:

1. Approve a Professional Services Agreement with Waterstone Environmental, Inc. (“Waterstone”), in substantially the form provided and subject to approval by the City Manager and City Attorney, for environmental consulting services and additional sampling activities for investigation and remediation activities associated with 20 parcels owned by the City in relation to Housing and Neighborhood Revitalization-1 (“HNR-1”) in the amount not to exceed $215,000 as the agreement continues in full force and effect until project completion.

2. Authorize the City Manager, or his designee, to execute all related documents.

G.C. Section 84308: No
Fiscal Impact:

Amount not to exceed $215,000 as the agreement continues in full force and effect until project completion. Funding for the current fiscal year is available in Account No. 314.22000.5710.

Background:

The Housing Authority owns HNR-1, a 4.7-acre property consisting of twenty (20) parcels located at the southwest corner of West Avenue I and Sierra Highway in Lancaster. The site is situated within a mixed residential and commercial area. Prior to acquisition by the Housing Authority, the property was developed with residential homes, retail businesses, gas stations, and automobile repair facilities.

All existing structures were demolished between approximately 2003 and 2011, and the site has remained vacant and unimproved since that time.
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Soil and soil vapor sampling conducted between 2021 and 2024 at HNR-1 identified subsurface impacts in soil, soil vapor, and groundwater. The predominant chemical of concern (“COC”) is perchloroethylene (PCE), which was identified primarily in the western portion of the subject property. Based on the results of off-site soil vapor samples, Waterstone conducted off-site indoor air sampling in residential properties to the south and commercial properties to the north to evaluate the potential for vapor intrusion. No PCE was detected in any indoor air samples.

Waterstone and City staff met with Lahontan Regional Water Quality Control Board (“LRWQCB”) on December 2, 2024, to discuss the subject property’s history and findings to date. On December 27, 2024, the LRWQCB sent the City an Initial Cost Recovery Program letter. Authorization for spending was received by the Housing Authority on April 8, 2025.

To further define site conditions, Waterstone completed additional groundwater, soil vapor, and off- site sampling efforts. In April 2025, the City entered into a Voluntary Cleanup Agreement with the LRWQCB, providing regulatory oversight for the investigation and remediation of the property. As part of the oversight process, the property was divided into two project areas: the Avenue I Properties – East and the Avenue I Properties – West.

Site Characterization Reports for both project areas were submitted to the LRWQCB in June and August 2025. The LRWQCB has authorized the City to proceed with the next phase of remediation planning for the East Properties and West Properties.

The proposed agreement with Waterstone will allow the City to continue the environmental remediation process necessary to obtain regulatory closure and prepare the property for future redevelopment. Advancing these efforts will maintain project momentum, reduce delays, and position the site for productive reuse. Approval of this agreement reflects the City's commitment to transforming a long-vacant property into a safe, developable asset that will protect public health, satisfy regulatory requirements, and remove barriers to future investment.

Redevelopment of the site has the potential to create new housing, commercial opportunities, and economic activity. Authorizing this agreement is a critical step toward returning the property to productive use and advancing the City's long-term goals of economic development, neighborhood revitalization, and an improved quality of life for the Lancaster community.

BB/ah
Attachment:

Waterstone Environmental, Inc. Agreement for Professional Services - 1 -
Rev 1/2019

AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT FOR PROFESSIONAL SERVICES is made and entered into this 8th day of September, 2026, by and between the CITY OF LANCASTER, a municipal corporation and charter city (“City”), and Waterstone Environmental, Inc., a California corporation (“Consultant”) (collectively, sometimes referred to hereinafter as the “Parties”).

RECITALS
WHEREAS, the City desires to engage Consultant to perform certain technical and professional services, as provided herein, identified as:

Environmental consulting services and additional sampling activities for investigation and remediation activities associated with 20 properties owned by the City in relation to HNR-1 (THE “SERVICES”)
WHEREAS, the principal members of Consultant are qualified and duly registered/licensed under the laws of the State of California, and Consultant desires to accept such engagement; NOW, THEREFORE, the parties agree as follows:

1. Parties to the Agreement.

The parties to this Agreement are:

A. CITY: City of Lancaster
B. CONSULTANT: Waterstone Environmental, Inc.

2. Notices. All written notices required by or related to this Agreement shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither party to this Agreement shall refuse to accept such mail; parties to this Agreement shall promptly inform the other party of any changes of address. All notices required by this Agreement are effective on the day of receipt, unless otherwise indicated herein.

CITY City of Lancaster
Attn: Trolis Niebla, City Manager
44933 North Fern Avenue
Lancaster, California 93534

CONSULTANT Waterstone Environmental, Inc.

Attn: Jeffrey Dagdigian
2936 E. Coronado Street
Anaheim, California 92865

3. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto; provided, however, that no party hereto shall assign any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without prior written consent of the other party, and any such assignments without said consent shall be void.

4. Description of Work. The City hereby engages Consultant, and Consultant accepts such - 2 -
Rev 1/2019

engagement, to perform the technical and professional services set forth in the “Scope of Services and Rates Schedule,” attached hereto as Exhibits “A, B, and C ” and incorporated herein by reference.

Consultant shall perform and complete, in a manner satisfactory to the City, all work and services set forth in Exhibits “A, B, and C.” The City Manager or his designee shall have the right to review and inspect the work during the course of its performance at such times as may be specified by the City Manager, or his designee.

5. Obligations of the City.

A. The City shall pay Consultant an amount not to exceed $215,000 for all work necessary to complete the Services, as described in the Scope of Services and Rates Schedule, as described in the Exhibits “A, B, and C .” Payments shall be due within thirty (30) days following submittal of an invoice detailing the services performed, at the hourly rates set forth in Exhibits A, B, and C.

B. No payment made hereunder by the City to Consultant, other than the final payment, shall be construed as an acceptance by the City of any work or materials, nor as evidence of satisfactory performance by Consultant of its obligations under this Agreement.

6. Obligations of the Consultant.

A. Consultant shall perform as required by this Agreement and in accordance with the Scope of Services and Rates Schedule set forth in Exhibits “A, B, and C”.

B. Consultant shall be responsible for payment of all employees’ wages and benefits, and shall comply with all requirements pertaining to employer’s liability, workers’ compensation, unemployment insurance, and Social Security.

C. Consultant shall only subcontract work required to perform the Services as presented in the cost tables included in Exhibits A, B, and C. No other work shall be subcontracted without the express prior written approval of the City.

7. Hold Harmless and Indemnification . Consultant agrees to indemnify and hold harmless the City, its elected officials, officers and employees, from and against any and all third party claims, losses, obligations, or liabilities whatsoever, including reasonable attorney’s fees, incurred to the extent arising out of or related to Consultant’s sole negligent or willful wrongful acts, errors or omissions, or those of its employees or agents. Consultant agrees to defend the City, its officers and employees, using counsel of the City’s choosing, from and against any and all claims covered by the indemnity in the preceding sentence.

8. Amendments. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon mutual written approval by the City and Consultant.

9. Non-Discrimination and Equal Employment Opportunity.

A. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, religion, ancestry, sex, national origin, physical or mental disability or age. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, physical or mental disability or age.

Affirmative action relating to employment shall include, but not be limited to the following:
- 3 -
Rev 1/2019

employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training including apprenticeship.

B. The provisions of subsection A above shall be included in all solicitations or advertisements placed by or on behalf of Consultant for personnel to perform any services under this Agreement. The City shall have access to all documents, data and records of Consultant and its subcontractors for purposes of determining compliance with the equal employment opportunity and non- discrimination provisions of this Section.

10. Term; Effective Date. This Agreement shall become effective and shall be in full force and effect upon the execution of the Agreement by the City and the Consultant. This Agreement shall continue in full force and effect until project completion , unless the Agreement is sooner terminated in accordance with this Agreement; provided, however, that the City and the Consultant may mutually agree in writing to extend the Term of this Agreement.

11. Termination.

A. For Convenience. The City may terminate this Agreement at any time without cause by giving thirty (30) days written notice to the other party of such termination and specifying the effective date thereof. In the event of termination of this Agreement, Consultant will be paid for work completed through the date of termination within thirty (30) days following submittal of a final invoice.

B. For Cause. If Consultant fails to perform the services called for by this Agreement or so fails to make progress as to endanger performance of this Agreement in accordance with its terms, Consultant shall correct such failure within ten (10) days (or such longer period that the City may authorize in writing) after receipt of notice from the City specifying such failure. Should the failure not be corrected within this time period, the City may immediately terminate the Agreement by written notice to Consultant.

C. In the event of termination, whether for convenience or cause, reports, plans, studies and other documents (collectively, “documents”) related to the Services shall become the City’s property.

Consultant shall provide all documents to the City that have no t yet been within ten (10) calendar days after termination of the Agreement.

12. Independent Contractor. Consultant is an independent contractor and shall have no power or authority to incur any debt, obligation or liability on behalf of the City. It is expressly understood between the Parties to this Agreement that no employee/employer relationship is intended.

13. Insurance.

A. The Consultant, at its expense, shall maintain in effect at all times during the term of this Agreement the following coverage and limits of insurance, which shall be maintained with insurers listed “A-, VIII” or better in the Best’s Key Rating Guide:

Commercial General Liability
Each Occurrence $1,000,000
Per Project General Aggregate $2,000,000
Including Products/Completed Operations; Contractual Liability/Independent Contractors; Property Damage
- 4 -
Rev 1/2019

(Coverage shall be at least as broad as ISO form CG2010 11/85 or CG2010 07/04 and CG2037 07/04 combined, or an equivalent providing ongoing and completed operations)

Commercial Automobile Liability
Combined Single Limit per Accident for
Bodily Injury and Property Damage

$1,000,000
(Coverage shall be at least as broad as ISO form CA00 01) Workers Compensation
As Required by the State of California

Statutory Limits
Employers’ Liability
Each Accident

$1,000,000
Bodily Injury by Disease $1,000,000
Each Employee $1,000,000
(A Waiver of Subrogation must be provided on behalf of the Certificate Holder for the Workers' Compensation & Employers’ Liability policies)
Professional Liability
Each Occurrence $1,000,000
General Aggregate $1,000,000
Provide one of the following for cyber-related services Technology Professional Liability
(Errors and Omissions)
Each Occurrence $2,000,000
General Aggregate $2,000,000
(Coverage shall be sufficiently broad to respond to the duties and obligations as are undertaken by Consultant pursuant to this Agreement and shall include, without limitation, claims involving invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, alteration of electronic information, extortion and network security. The policy shall provide coverage for breach response costs as well as any applicable regulatory fines and penalt ies as well as credit monitoring expenses with limits sufficient to respond to these obligations.)

Or
Cyber Liability Insurance
Each Occurrence $2,000,000
General Aggregate $2,000,000

B. The Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insured’s liability.

C. Professional liability and/or cyber insurance written on a “claims made” basis must be renewed for a period of three (3) years after this contract expires or is terminated. Such insurance must have the same coverage and limits as the policy that was in effect during the term of this contract and will cover Consultant for all claims made by the City insured entities arising out of any acts or omissions of Consultant or its officers, employees, or agents during the time this Agreement was in effect. - 5 -
Rev 1/2019

D. Any deductibles or self-insurance retentions must be declared and approved by the City. At the City’s option, either the insurer shall reduce or eliminate such deductibles or self - insured retentions as respects the City insured entities or the insurer shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.

E. All insurance shall be primary and non -contributory as respects the City insured entities. Any insurance or self-insurance maintained by the City insured entities shall be in excess of the Consultant’s insurance and shall not contribute with it.

F. Consultant shall furnish the City with Certificates of Insurance and with original endorsements effecting coverage required by this Agreement. Certificates of Insurance shall meet the following requirements:
(1) Show that the insurance policy has been endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after 30 days’ prior written notice (10 days written notice for non-payment) to the City of Lancaster.
(2) List in the “Descriptions of Operations/Locations/Vehicles” section:
“[HNR-1 & Date of Event]
The City of Lancaster, its elected officials, officers, employees and volunteers are included as additional covered parties, but only insofar as the operations under this contract are concerned.”
(3) List in the “Certificate Holder” section:

The City of Lancaster, 44933 Fern Avenue, Lancaster, California 93534.

14. Commencement and Completion of Work. The Services to be provided by Consultant pursuant to this Agreement shall commence immediately after execution of this Agreement and shall be completed upon project completion; provided, however, that the Parties may agree to extend the time for completion upon mutual written agreement.

15. Ownership of Documents . All plans, specifications, reports, studies, maps and other documents prepared or obtained by Consultant in the course of performing the work and are required by this Agreement to be delivered to the City shall be the property of the City. Basic sketches, charts, computations and similar data prepared or obtained by Consultant under this Agreement shall, upon request, be made available to City without restriction or limitation on their use.

16. Data Provided to Consultant. City shall provide to Consultant, without charge, all data, including reports, records, maps and other information, now in the City’s possession which may facilitate the timely performance of the work described in Exhibit A.

17. Consultant’s Warranties and Representations.

Consultant warrants and represents to City as follows:

A. Consultant has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, to solicit or obtain this Agreement. - 6 -
Rev 1/2019

B. Consultant has not paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the execution of this Agr eement. Upon any breach or violation of this warranty, City shall have the right, in its sole discretion, to terminate this Agreement without further liability, or, in the alternative, to deduct from any sums payable hereunder the full amount or value of any such fee, commission, percentage or gift.

C. Consultant has no knowledge that any officer or employee of the City has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of the Consultant, and that if any such interest comes to the knowledge of Consultant at any time, a complete written disclosure of such interest will be made to City, even if such interest would not be deemed a prohibited “conflict of interest” under applicable laws.

D. Upon the execution of this Agreement, Consultant has no interest, direct or indirect, in any transaction or business entity which would conflict with or in any manner hinder the performance of services and work required by this Agreement, nor shall any suc h interest be acquired during the term of this Agreement.

18. Resolution of Disputes.

A. Disputes regarding the interpretation or application of any provisions of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties.

B. If the parties cannot resolve the dispute through good faith negotiations, either party may give Notice of Dispute to the other party. The Notice of Dispute shall state the nature of the dispute and the corrective action necessary to remedy the dispute.

After Notice of Dispute, the parties shall first attempt to resolve any disputes by mediation. The parties shall agree on a single mediator . Mediation shall be conducted in Lancaster, California. Each party shall pay its own attorneys’ fees and the costs of mediation shall be split equally between the parties.

If the dispute has not been resolved by mediation within 45 days after Notice of Dispute, or the parties are unable to agree to a mediator, within 15 days after Notice of Dispute, then, the dispute may, upon agreement of the parties be resolved by binding arbitration.

C. If any action at law or in equity is brought to enforce or interpret any provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, cost and necessary disbursements, in addition to such other relief as may be sought and awarded.

19. Exhibits.

The following exhibits to which reference is made in this Agreement are deemed incorporated herein in their entirety:

Exhibit “A” Scope of Services and Rates Schedule
Exhibit “B” Scope of Services and Rates Schedule
Exhibit “C” Scope of Services and Rates Schedule
- 7 -
Rev 1/2019

20. Governing Law

This Agreement shall be governed by the laws of the State of California.

1. Effective Date.

This Agreement shall become effective as of the date set forth below on which the last of the parties, whether City or Consultant, executes said Agreement.

[Signatures begin on next page.]
- 8 -
Rev 1/2019

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their respective officers thereunto duly authorized.

CITY OF LANCASTER

LANCASTER, CALIFORNIA

By:

Trolis Niebla, City Manager
Dated:

WATERSTONE ENVIRONMENTAL, INC.

By:

Jeffrey Dagdigian, President
Dated:

ATTEST:

Andrea Alexander, City Clerk
APPROVED AS TO FORM:

Allison E. Burns, City Attorney

CONTRACT SUBMISSION APPROVAL:

Department Head
- 9 -
Rev 1/2019

EXHIBIT A

SCOPE OF SERVICES

AND RATES SCHEDULE

2936 East Coronado Street * Anaheim * CA * 92806
Tel: 714-414-1122 * Fax: 714-414-1166
Email: [email protected]

July 25, 2024

Chris Aune
Housing Manager - Real Estate & Economic Development
City of Lancaster

John Holloway, Esq.

Best, Best & Krieger LLP
300 South Grand Avenue
25th Floor
Los Angeles, CA 90071

R
E: P ROPOSAL FOR ADDITIONAL DELINEATION SAMPLING AND INDOOR AIR EVALUATION FOR INVESTIGATION ACTIVITIES ASSOCIATED WITH 20 PROPERTIES OWNED BY THE

CITY OF LANCASTER

Dear Mr. Holloway:

Waterstone Environmental, Inc. (“Waterstone”) appreciates this opportunity to provide you with this proposal to conduct additional Phase II sampling on the City of Lancaster’s (“Client” or “City”) property which consists of twenty (20) parcels of land (“Subject Property”) totaling approximately 204,909 square feet (4.70 acres). As detailed in the previously approved proposal, the Subject Property properties are bound on the north by Avenue I, on the east by Sierra Highway, on the south by lvesbrook Street and Gilly Way, and on the west by Elm Avenue.

Previous sampling conducted by Waterstone surrounding former address 650 West Avenue I on the Subject Property has identified concentrations of tetrachloroethylene (PCE) and related volatile organic compounds (VOCs) in the soil vapor in offsite soil vapor wells installed to the north and south of the Subject Property that were elevated above commercial and residential indoor air standards assuming an attenuation factor of 0.3. The soil vapor concentrations have been laterally delineated in all directions except to the west where residential apartments are present. Additionally, groundwater samples collected within the bounds of the Subject Property identified PCE in groundwater at concentrations exceeding drinking water MCL standards.

The purpose of this proposal is to conduct additional Phase II sampling as follows:

(i) Offsite delineation of soil vapor impacts to the west where residential apartments are present across Elm Avenue.

Confidential and Privileged
Attorney Client Communication
Attorney Work Product
Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

July 25, 2024

Page 2 ends

(ii) Collection of indoor and outdoor air samples in both the neighborhoods north and south of the site where elevated soil vapor concentrations have been identified in the subsurface.

The results of this testing will be compiled with previous data generated for the Subject Property and discussed with legal counsel and the City, and based on this discussion, a decision regarding government reporting will be made. After these discussions, a report summarizing all of the offsite soil gas and onsite groundwater investigations will be prepared and submitted to the City.

Proposed Off-Site Delineation Soil Vapor Investigation

Additional soil vapor data collection is necessary to delineate the extent of offsite soil vapor migration to the west. The soil vapor survey will be performed in general accordance with the July 2015 California Environmental Protection Agency (Department of Toxic Substances Control [DTSC]Los Angeles and San Francisco Bay Regional Water Quality Control Board [RWQCB]) Advisory for Active Soil Gas Investigations (Advisory).

The proposed soil vapor locations are shown on Figure 1 and include two (2) soil vapor borings along Elm Avenue to the west of the Subject Property (SV-16 and SV-17). Soil vapor probes will be installed at 5 and 15-feet below ground surface (bgs).

For the proposed sample borings which are located in public rights-of-way, an encroachment permit will be obtained through the City and traffic control will be conducted as needed. Prior to commencement of drilling activities, a field visit will be performed to mark the proposed sample locations in white paint in accordance with Underground Service Alert (USA) procedures as required by law. As per USA requirements, Waterstone will notify USA of the proposed drilling at least 72 hours prior to fieldwork. Waterstone will retain a subcontractor to perform a geophysical subsurface survey and inspect each of the drilling locations and move them, if necessary, to avoid underground utilities or other obstructions that can be discerned via geophysical means.

All borings will be cleared with a hand auger to 4.5 feet bgs prior to using machinery in each hole. Drilling activities will be conducted using a direct push drilling rig to drill each borehole to its maximum depth. A continuous soil core will be performed at each location to inspect the soils and confirm appropriate soil conditions at proposed vapor probe depths. Each probe will be constructed of ¼-inch diameter Nylaflow tubing with an attached porous vapor inlet filter. The probe will be placed within a sand filter pack consisting of clean, kiln dried #2/12 Monterey sand extending six inches below and six inches above the vapor probe point. The filter pack will be topped with a seal of dry granular bentonite followed by conservatively hydrated bentonite up to the bottom of the next probe filter sand pack or ground surface.

Each well will be completed with a small diameter, traffic-rated well box set in concrete.

Investigation derived waste, consisting of soil spoils and decontamination water rinseate, generated during the soil vapor well installation activities will be containerized in the existing Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

July 25, 2024

Page 3 ends

55-gallon, DOT-approved steel drum staged at an offsite City storage yard pending profiling for proper disposal.

A mobile laboratory will be utilized for testing of the soil vapor well probes following a minimum of 48 hours to allow each soil vapor well to equilibrate. Each of the two (2) soil vapor well sets will be accessed and evaluated for the presence of vacuum to assure the well tubing is viable for sampling. Shut-in and leaking testing and purging of the well tubing will be performed prior to drawing a sample. Each well probe will then be sampled at a rate of 100-200 mL/m using a vacuum pump and/or a glass syringe. The collected samples will be immediately injected into the onsite mobile laboratory gas chromatograph/mass spectrometer (GC/MS) analyzer. Each sample will be analyzed for VOCs by EPA Method 8260B. Sample hold times will be in accordance with the Advisory. Duplicate for samples quality assurance/quality control (QA/QC) will be collected and analyzed at a rate of approximately 20%, or 1 per 20 samples, and at least one per day of sampling. All work will be performed by or under the direction of a California registered Professional Geologist.

Proposed Indoor Air Testing

Site reconnaissance of the surrounding residences to the south of the Subject Property was conducted and it was determined that houses in this area are constructed either slab-on-grade or with crawl spaces. Commercial buildings constructed to the north of the Subject Property across West Avenue I are constructed as slab-on-grade.

Due to the variation in construction design, it is proposed to conduct indoor air sampling in three residential buildings to the south (one sample in each of two buildings with slab-on-grade construction and one sampling in a building with a crawl space) and in one commercial building to the north (two samples), for a total of four (5) indoor air samples. Two (2) associated outdoor ambient air samples will be collected with one to the north and one to the south. Proposed air sample locations are presented on Figure 1.

Waterstone will work with legal counsel to draft a letter to the residential and commercial tenants explaining the reason for sampling on their property and to obtain access. Additionally, Waterstone will draft a letter or presentation for the City to provide to City Council describing the indoor air sampling process and reasoning.

Waterstone will accompany City personnel when discussing the indoor air sampling and attempt to get permission to perform this sampling in residences and buildings to the north and south of the Subject Property.

Once access has been obtained, the buildings to be sampled for indoor air will be inspected for chemical products such items as adhesives, paints/thinners, solvents, cleaning agents, glues, and equipment with gasoline-powered engines (e.g. lawn mowers, motorcycles) that could affect the results of the test. In addition, the building exterior and surrounding vicinity will be surveyed for items that might affect the results of the study. This includes utility corridors, predominant wind Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

July 25, 2024

Page 4 ends

direction, and businesses and land use in the area, such as gasoline stations, oil production facilities, factories, dry cleaners, parking lots, and heavily used roadways. Observations to be noted during the sampling will include the nature and condition of the flooring beneath the sampling area and outdoor weather conditions such as the temperature and wind direction. Any known chemicals or other materials inside the building that may affect the results should be removed in advance of the testing. During air testing, windows and doors should remain closed to the extent possible and the HVAC systems may be operated as usual.

Indoor air analysis will include the sampling and analysis of five (5) indoor air samples which will be collected inside the buildings at locations which are typically occupied, such as living room or office areas. Two (2) outdoor air samples will be collected to represent ambient air conditions. Indoor air samples will be collected in accordance with the DTSC October 2011 Guidance for the Evaluation and Mitigation of Subsurface Vapor Intrusion to Indoor Air.

The air samples will be collected using six-liter evacuated batch-certified stainless-steel summa canisters provided by a state-certified (Environmental Laboratory Accreditation Program (ELAP)) laboratory. The laboratory will also provide flow regulators calibrated to provide for the samples to be collected over a 24-hour period consistent with a residential land use scenario. The samples will be analyzed for VOCs using U.S. EPA Method TO-15 SIM. Standard turn-around- time for laboratory analysis is ten business days.

Following the receipt of analytical results, the data will be tabulated and evaluated against U.S.

Environmental Protection Agency (EPA) Regional Screening Levels (RSLs) and Department of Toxic Substance Control (DTSC) Hero Note 3 Screening Levels for a residential and commercial exposure scenario.

If indoor air concentrations exceeding residential or commercial screening levels are identified during air sampling activities, the City has requested that air filtration units capable of reducing chlorinated solvent concentrations in indoor air be purchased to provide to residents immediately upon receipt of sample results, if necessary. Costs for acquiring a total of nine (9) air filtration units from Aller Air are included in the costs herein.

Data Evaluation and Reporting

Upon receipt of laboratory results, Waterstone will set up a conference call with legal counsel and the client to discuss the results. Following this call, Waterstone will prepare a report discussing both the previously conducted and proposed soil gas, groundwater, and indoor air sampling. Waterstone will provide a summary of the analytical results in the report that will include, at minimum, a site figure, tabulation of the analytical findings, description of the field activities conducted, and an evaluation of results compared to regulatory screening standards and indoor air vapor intrusion and drinking water standards (MCLs). A draft report will be sent to the Client and legal counsel for review and comment.

Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

July 25, 2024

Page 5 ends

Pricing and Schedule

The estimated cost to complete this additional investigation work proposed above is $45,259.

Details of the costs are outlined in the attached table. Costs are based on certain assumptions, exclusions, and considerations outlined herein. This price includes all professional labor, administrative and subcontractor costs, communication fees, and direct client expenses required to complete the Scope of Work as defined in this proposal. Assumptions associated with this work are the following:

 Access will be provided for all proposed soil vapor sample locations, including those located on City property within the streets west of the Subject Property.  Traffic control can be conducted via the WATCH manual and a site-specific Traffic Control Plan will not be required.
 Access will be provided to residential and commercial properties for indoor air sampling.  Additional items not specifically outlined herein, such as client and/or counsel meetings or teleconferences, will be billed on a time-and-materials basis in accordance with the previously agreed upon rates.

Terms and Conditions

The Terms and Conditions, professional fees, and equipment rates agreed upon by Client and Waterstone pursuant to Retention Letter sent out on July 13, 2023, shall be used for this project and shall apply to the work described in this Request for Authorization.

Upon your approval, please sign below indicating your authorization of the Scope of Work described herein and return the authorization via email as indicated. We appreciate the opportunity to provide environmental services to you and the City of Lancaster.

If you have any questions concerning this proposal, please contact the undersigned.

Sincerely,

Jeffrey Dagdigian Heather Fields
Managing Principal Supervising Geologist

Attachments
A - Cost Estimate for Additional Phase II Investigation Figure 1 – Proposed Sample Locations
Hrs/Units Cost Hrs/Units Cost Hrs/Units Cost Hrs/Units Cost Hrs/Units Cost Waterstone Professional Fees $/Hr.

Managing Principal $375 2 $750 1 $375 2 $750 4 $1,500 9 $3,375 Principal Engineer/Scientist $325 $0 $0 $0 2 $650 2 $650 Supervising Engineer/Scientist $250 4 $1,000 2 $500 14 $3,500 12 $3,000 32 $8,000 Senior Engineer/Scientist $210 $0 $0 $0 $0 0 $0
Senior Associate Engineer/Scientist $190 $0 $0 $0 $0 0 $0 Associate Engineer/Scientist $170 6 $1,020 22 $3,740 16 $2,720 10 $1,700 54 $9,180 Assistant Engineer/Scientist $145 $0 $0 $0 $0 0 $0
Secretary $75 $0 $0 $0 $0 0 $0
Drafting $80 $0 $0 $0 $0 0 $0
Subtotal of Waterstone Fees 12 $2,770 25 $4,615 32 $6,970 28 $6,850 97 $21,205

OTHER DIRECT COSTS
Truck Rental (per day) $85 $0 3 $255 3 $255 $0 6 $510
PPE Level D (per day) $30 $0 3 $90 $0 $0 3 $90
PID (per day) $120 $0 1 $120 $0 $0 1 $120
Consumables (per day) $30 $0 1 $30 1 $30 $0 2 $60
Per Diem $200 $0 $0 $0 $0 0 $0
Communication Charge - 4.0% of Pro Fees $111 $185 $279 $274 $848 Subtotal of ODCs $111 $680 $564 $274 $1,628

SUBCONTRACTOR COSTS
Spectrum - Utility Clearance $900 $0 1 $900 $0 $0 1 $900 Millennium - SV Probe Install $2,957 $0 1 $2,957 $0 $0 1 $2,957 Traffic Control $1,000 $0 1 $1,000 $0 $0 1 $1,000
Jones - Soil Vapor Sampling and Analysis (New boring) $1,572 $0 1 $1,572 $0 $0 1 $1,572 Indoor Air Sample Canister/Analysis $440 $0 $0 7 $3,080 $0 7 $3,080 Air Filtration Units $1,020 $0 $0 9 $9,180 $0 9 $9,180
$0
Subcontractor Mark-up 20% $0 $1,286 $2,452 $0 $3,738
Subtotal of Subcontractor Costs $0 $7,714 $14,712 $0 $22,426 TASK TOTALS $2,881 $13,009 $22,246 $7,124 $45,259
Field Preparation Lateral Delineation of
Soil Vapor Indoor Air Sampling

ATTACHMENT A
Cost Estimate for Additional Phase II Investigation - Vapor Intrusion Evaluation West Avenue I Properties, Lancaster, California
TASK 1 TASK 2 TASK 3

TOTAL COST
TASK 4
Updates to Summary
Report

Page 1 of 1 ends

Soil Vapor
Sample Location
SV-1 SV-2 SV-3
SV-4 SV-5
SV-6
SV-7 SV-8
Proposed Soil Vapor
Sample Location
Proposed Indoor Air
Sample Location
SV-9 SV-10 SV-11
SV-12
SV-13
SV-14
SV-15
SV-16
SV-17
Waterstone
Environmental, Inc.
2936 E. Coronado St.

Anaheim, California 92806
Drawn By: HLF
Date: 2/27/2024Approved By: JVD
0 75' 150'
Approximate Scale
Legend
NORTH
Approximate Subject Site Boundary
Parcel Boundary

WEST AVENUE I

IVESBROOK STREET

DATE AVENUE

CEDAR AVENUE

ELM AVENUE
Figure 1
Proposed
Sample Locations
Avenue I Properties
Lancaster, CA
- 10
- Rev 1/2019

EXHIBIT B

SCOPE OF SERVICES

AND RATES SCHEDULE

2936 East Coronado Street * Anaheim * CA * 92806
Tel: 714-414-1122 * Fax: 714-414-1166
Email: [email protected]

May 8, 2025

Chris Aune/Sue Sturmer
Housing Manager - Real Estate & Economic Development
City of Lancaster

John Holloway, Esq.

Best, Best & Krieger LLP
300 South Grand Avenue
25th Floor
Los Angeles, CA 90071

RE: PROPOSAL FOR ENVIRONMENTAL CONSULTING SERVICES AND ADDITIONAL SAMPLING ACTIVITIES FOR INVESTIGATION AND REMEDIATION ACTIVITIES ASSOCIATED WITH 20

PROPERTIES OWNED BY THE CITY OF LANCASTER

Dear Mr. Holloway:

Waterstone Environmental, Inc. (“Waterstone”) appreciates this opportunity to provide you with this proposal to conduct environmental consulting services for additional Phase II sampling activities on the City of Lancaster’s (“Client” or “City”) property which consists of twenty (20) parcels of land (“Subject Property” or “W. Avenue I Properties”) totaling approximately 204,909 square feet (4.70 acres). As detailed in the previously approved proposal, the Subject Property properties are bound on the north by Avenue I, on the east by Sierra Highway, on the south by lvesbrook Street and Gilly Way, and on the west by Elm Avenue.

Previous sampling conducted prior consultants identified elevated concentrations of metals, total petroleum hydrocarbons (TPH), and volatile organic compounds (VOCs) in the soil and soil vapor on the Subject Property. Subsequent sampling conducted by Waterstone identified VOCs in offsite soil vapor wells installed to the north and south of the Subject Property that were elevated above commercial and residential indoor air standards assuming an attenuation factor of

0.3. Additionally, groundwater samples collected within the bounds of the Subject Property identified PCE in groundwater at concentrations exceeding drinking water MCL standards.

Purpose and Scope of Work

The purpose of this proposal is to perform the next steps needed in preparation for conducting remediation and obtaining the agency closure needed for future development of the properties.

Prior to conducting any further site characterization, the RWQCB has requested that the City enroll in their cost recovery program. Following that, Waterstone will submit a site Confidential and Privileged
Attorney Client Communication
Attorney Work Product
Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

May 8, 2025

Page 2 ends

characterization report for the east properties followed by a site characterization report for the west properties. Additionally, the RWQCB has requested a site specific workplan from Waterstone for additional indoor air site characterization activities for properties located north and south of the PCE hotspot on the western side of the Subject Property. This proposal addresses these activities. The primary tasks involved in completing these steps are as follows:

1) Agency enrollment,
2) Preparation and submittal of east and west site investigation reports, 3) Workplan preparation and collection of additional offsite indoor and outdoor air samples to evaluate for seasonal variation.
4) Agency communications and response to comments.

All tasks include both ongoing work that has been initiated at the direction of the Client, as well as future tasks to be completed.

Task 1 – Agency Enrollment

Waterstone conducted research to determine the most appropriate regulatory agency to engage with for the Subject Property and initiated enrollment of the Subject Property with the Lahontan Regional Water Quality Control Board (RWQCB). This task has included (i) preparation of a presentation of the investigation activities conducted to date which was shared with the Lahontan RWQCB during a scoping meeting conducted in December 2024, (ii) communications with the Los Angeles County Department of Public Works and the Los Angeles RWQCB regarding transfer of historical case files to the Lahontan RWQCB, and (iii) assisting the City with completing cost sharing agreements with the Lahontan RWQCB for enrollment under their voluntary cleanup program.

During the initial scoping meeting with the Lahontan RWQCB, it was determined that the Subject Property would be split approximately in half into two separate sites to be identified as “W. Avenue I Properties – West”, and “W. Avenue I Properties – East”. The purpose of this split is due to the different degree of impacts identified on each half of the site, with the understanding that if the W. Avenue I Properties – East site can be addressed and receive agency closure more quickly than the W. Avenue I Properties – West site, then it can be redeveloped sooner.

The proposed costs for Task 1 are $10,088, as presented in Attachment A.

Task 2 – East and West Site Investigation Reports

Based on the decision to split the Subject Property into East and West sites, two separate site investigation reports will be prepared and submitted to the Lahontan RWQCB. The site investigation reports will be comprehensive reports which summarize each site’s historical operations, historical site closure activities on individual parcels, previous sampling conducted in Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

May 8, 2025

Page 3 ends

2021/2023 by Leighton Environmental. Historical research was conducted by Waterstone in order to present a complete and thorough history of each parcel on the Subject Property, including review of historical fire insurance maps, aerials, city directory listings, agency records, and previously completed environmental reports provided by the City. The reports will also include the previously prepared summary of findings from the recent sampling activities conducted by Waterstone in 2024.

Waterstone will prepare two reports which discuss the findings of all previously conducted soil, soil vapor, groundwater, and/or indoor air sampling activities. The reports will provide a description of the field activities conducted, comprehensive results tables with comparisons to regulatory screening standards, and site figures with sample locations and data. Additionally, the reports will include a Conceptual Site Model, statistical evaluation of the data, a Human Health Screening Evaluation, and recommendations for remediation and/or mitigation measures to be conducted at each site. A draft report for the East and West sites will be sent to the Client and legal counsel for review and comment prior to submittal to the Lahontan RWQCB.

The proposed costs for Task 2 are $20,493, as presented in Attachment A.

Task 3 - Seasonal Indoor Air Testing

Indoor air sampling was previously conducted at one commercial business to the north of the Subject Property and three residential properties to the south of the Subject Property. During the December 2024 scoping meeting with the Lahontan RWQCB, it was requested by the Board that an additional round of indoor air sampling be conducted to evaluate for seasonal variation.

Subsequently, the Lahontan RWQCB also requested an indoor air sampling workplan be submitted and approved in advance of additional sampling activities.

Waterstone prepared the indoor air sampling workplan, which was submitted to the agency in February 2025. The workplan outlined a scope of work that was consistent with the initial round of indoor air sampling conducted by Waterstone in August 2024.

The costs presented in this task include (i) preparation of the indoor air sampling workplan, (ii) coordination with the City and offsite tenants for additional sampling, (iii) collection and analysis of a total of five (5) indoor air samples and eight (8) outdoor air samples conducted over a 24-hour time period, (iv) data review and evaluation, (v) communications with legal counsel and client regarding the findings, and (vi) preparation of property-specific sampling reports to share with tenants and with the agency. Sampling activities are expected to be conducted in the same manner as the initial round of indoor air sampling activities.

If indoor air concentrations exceeding residential or commercial screening levels are identified during air sampling activities, the City has previously purchased nine (9) air filtration units capable of reducing chlorinated solvent concentrations in indoor air, which are currently being stored by Waterstone.

Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

May 8, 2025

Page 4 ends

The proposed costs for Task 3 are $20,778, as presented in Attachment A.

Task 4 – Agency, Client, and Legal Counsel Communications and Response to Agency Comments

Future responsibilities associated with this task will include ongoing communications with the Lahontan RWQCB as part of their oversight of Subject Property sampling, reporting, remediation, and closure of both the West and East sites. It is anticipated that the agency will provide comments on each submittal and Waterstone will respond to comments as needed in support of the Client. This task also includes costs for meetings with the client and legal counsel.

The costs for Task 4 under the duration of this proposal are $18,148, as presented in Attachment A.

Pricing and Schedule

The estimated cost to complete this additional investigation and reporting work proposed above is $69,507. Details of the costs are outlined in the attached table. Costs are based on certain assumptions, exclusions, and considerations outlined herein. This price includes all professional labor, administrative and subcontractor costs, communication fees, and direct client expenses required to complete the Scope of Work as defined in this proposal. Assumptions associated with this work are the following:

➢ Access will be provided to residential and commercial properties for indoor air sampling in a single site visit.
➢ Additional items not specifically outlined herein, such as client and/or counsel meetings or teleconferences, will be billed on a time-and-materials basis in accordance with the previously agreed upon rates.

Terms and Conditions

Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

May 8, 2025

Page 5 ends

If you have any questions concerning this proposal, please contact the undersigned.

Sincerely,

Jeffrey Dagdigian Heather Fields, PG
Managing Principal Principal Geologist

Attachments
A - Cost Estimate for Additional Phase II Investigation Hrs/Units Cost Hrs/Units Cost Hrs/Units Cost Hrs/Units Cost Hrs/Units Cost Waterstone Professional Fees $/Hr.

Managing Principal $375 12 $4,500 10 $3,750 2 $750 12 $4,500 36 $13,500 Principal Engineer/Scientist $325 16 $5,200 40 $13,000 30 $9,750 32 $10,400 118 $38,350 Supervising Engineer/Scientist $250 $0 $0 $0 $0 0 $0
Senior Engineer/Scientist $210 $0 $0 $0 $0 0 $0
Senior Associate Engineer/Scientist $190 $0 $0 $0 $0 0 $0 Associate Engineer/Scientist $170 $0 $0 30 $5,100 15 $2,550 45 $7,650 Assistant Engineer/Scientist $145 $0 16 $2,320 $0 $0 16 $2,320 Secretary $75 $0 2 $150 $0 $0 2 $150
Drafting $80 $0 $0 $0 $0 0 $0
Subtotal of Waterstone Fees 28 $9,700 68 $19,220 62 $15,600 59 $17,450 217 $61,970

OTHER DIRECT COSTS
Truck Rental (per day) $85 $0 $0 2 $170 $0 2 $170
PID (per day) $120 $0 $0 1 $120 $0 1 $120
Consumables (per day) $40 $0 $0 1 $40 $0 1 $40
Per Diem $200 $0 $0 $0 $0 0 $0
Communication Charge - 4.0% of Pro Fees $388 $769 $624 $698 $2,479 Subtotal of ODCs $388 $769 $954 $698 $2,809

SUBCONTRACTOR COSTS
Indoor Air Sample Canister/Analysis $440 $0 $0 8 $3,520 $0 8 $3,520 EDR Reports $420 $0 1 $420 $0 $0 1 $420
$0
Subcontractor Mark-up 20% $0 $84 $704 $0 $788
Subtotal of Subcontractor Costs $0 $504 $4,224 $0 $4,728 TASK TOTALS $10,088 $20,493 $20,778 $18,148 $69,507

ATTACHMENT A
Cost Estimate for Environmental Consulting and Additional Sampling West Avenue I Properties, Lancaster, California
TASK 1 TASK 2 TASK 3 TASK 4

TOTAL COST
Agency Enrollment
East and West Site
Investigation Reports
inc. research
Indoor Air Workplan
and Seasonal
Sampling
Agency
Communications and
Response to
Comments

Page 1 of 1 ends

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- Rev 1/2019

EXHIBIT C

SCOPE OF SERVICES

AND RATES SCHEDULE

2936 East Coronado Street * Anaheim * CA * 92806
Tel: 714-414-1122 * Fax: 714-414-1166
Email: [email protected]

July 16, 2026

John Holloway, Esq.

Best, Best & Krieger LLP
300 South Grand Avenue
25th Floor
Los Angeles, CA 90071

Becky Bartlett/Sue Sturmer
Housing Manager - Real Estate & Economic Development
City of Lancaster

R
E: P ROPOSAL FOR ENVIRONMENTAL CONSULTING SERVICES AND ADDITIONAL SAMPLING ACTIVITIES FOR INVESTIGATION AND REMEDIATION ACTIVITIES ASSOCIATED WITH 20

PROPERTIES OWNED BY THE CITY OF LANCASTER

Dear Mr. Holloway:

Waterstone Environmental, Inc. (“Waterstone”) appreciates this opportunity to provide you with this proposal to conduct environmental consulting services for additional Phase II sampling and consulting services on the City of Lancaster’s (“Client” or “City”) property which consists of twenty (20) parcels of land (“Subject Property”) totaling approximately 204,909 square feet (4.70 acres). As detailed in the previously approved proposals, the Subject Property properties are bound on the north by Avenue I, on the east by Sierra Highway, on the south by lvesbrook Street and Gilly Way, and on the west by Elm Avenue.

Previous sampling conducted in 2021 and 2023 identified elevated concentrations of metals, total petroleum hydrocarbons (TPH), and volatile organic compounds (VOCs) in the soil and soil vapor on the Subject Property. Subsequent sampling conducted by Waterstone evaluated VOCs in offsite soil vapor wells and indoor air samples collected to the north and south of the Subject Property, and VOCs in groundwater samples collected within the bounds of the Subject Property.

In April 2025, the City entered into a voluntary agreement with the Lahontan Regional Water Quality Control Board (LRWQCB) for oversight of the investigation and remediation of impacts on the Subject Property. As a part of the RWQCB oversight, the Subject Property was split into two pieces, identified as “Avenue I Properties – West” or “West Properties” and “Avenue I Properties – East” or “East Properties”. Site Characterization Reports were submitted to the RWQCB for both the East and West Avenue Properties in June and August of 2025, respectively. As of this date, approval to move forward with next steps for the Avenue I Confidential and Privileged
Attorney Client Communication
Attorney Work Product
Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

July 16, 2026

Page 2 ends

Properties – East property has been granted from RWQCB, and the Avenue I Properties – West report is still under review.

Purpose and Scope of Work

The purpose of this proposal is to perform the next steps needed to conduct remediation and obtain agency closure necessary for future development of the Subject Property. Based on recent communications with the City, it is Waterstone’s understanding that they would like to move forward as quickly as possible with remediation activities for both the East and West portions of the Subject Property, and are seeking guidance in details to include in future Requests for Proposals (RFPs) associated with redevelopment activities where remediation activities will be needed. The primary tasks involved in completing these steps are as follows:

1) Preparation of a Remedial Action Workplan (RAW) for the East Properties, 2) RFP Assistance for West Properties,
3) Collection of additional onsite and offsite samples to supplement site characterization data for West Properties,
4) Preparation of a Feasibility Study/Remedial Action Plan (FS/RAP) for the West Properties.

All tasks include both ongoing work that has been initiated at the direction of the Client, as well as future tasks to be completed.

Task 1 – East Properties – Preparation of RAW

Conditional approval of the Site Characterization Report for the Avenue I Properties – East was received from the LRWQCB on April 27, 2026. In accordance with the recommendations for limited soil removal included in the Site Characterization Report and comments provided by the LRWQCB, Waterstone will prepare a RAW the East Properties. The RAW will describe soil excavation and confirmation sampling activities, as well as limited additional characterization sampling as requested by the LRWQCB. This task includes (i) preparation of the RAW document, (ii) response to LRWQCB comments, and (iii) anticipated communications with LRWQCB, including one meeting. A draft report for the East Properties RAW will be sent to the Client and legal counsel for review and comment prior to submittal to the LRWQCB.

The proposed costs for Task 1 are $12,490, as presented in Attachment A. Costs for implementation of the East Properties RAW and closure reporting will be provided upon agency approval of proposed remedial activities for the East Properties.

Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

July 16, 2026

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Task 2 – West Properties – RFP Assistance

Following a meeting with the City and counsel on June 8, 2026, Waterstone understands that the City is seeking assistance with preparation of guidelines and construction specifications for anticipated environmental remediation of the West Properties to include with future RFPs for redevelopment of the Subject Property.

Waterstone will prepare detailed specifications for the proposed vapor intrusion mitigation system (VIMS). Costs include up to two (2) meetings with City personnel and/or contractors to discuss details and how remedial design plans may impact future development plans.

The proposed costs for Task 2 are $7,956, as presented in Attachment A.

Task 3 - West Properties - Additional Sampling and Reporting

The LRWQCB has not yet provided comments on the Characterization Report for the West Properties which was submitted in August 2025; however, in order to continue forward momentum with the overall development project, Waterstone recommends reaching out to the LRWQCB to inform them of the City’s desire for more immediate action on the Subject Property. In this communication, we will inform them of the intention to conduct additional sampling activities in accordance with recommendations put forth in the Site Characterization Report for the West Properties.

Based on the above, Waterstone recommends conducting the following additional sampling activities prior to preparation of an FS/RAP for the West Properties:

1) Installation and sampling of one temporary soil vapor probe (SV-18) in the vicinity of previous boring SG36 to confirm prior elevated detections of PCE and benzene. (Note, if elevated concentrations are confirmed, subsequent offsite sampling may be warranted.) 2) Collection of an additional round of soil vapor sampling at the previously installed offsite soil vapor wells.
3) Collection of an additional round of groundwater samples from the previously installed monitoring wells MW-1 through MW-3.
4) Collection of two offsite grab groundwater samples (GW-2 and GW-3) to the north to evaluate nature and extent of groundwater impacts downgradient.

Prior to implementation of the above noted sampling activities, it is anticipated that the LRWQCB will require submittal and approval of a workplan outlining the additional sampling activities in advance of conducting fieldwork.

Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

July 16, 2026

Page 4 ends

The costs presented in this task include the following elements:

 Preparation and submittal of a letter report workplan for additional sampling activities;
 Preparation for fieldwork, including permitting and coordination with the City and offsite tenants for additional sampling;
 Mobilization to mark proposed sample locations in white paint in accordance with Underground Service Alert (USA) procedures as required by law at least 72 hours in advance of drilling activities, and to conduct a geophysical subsurface survey for utility clearance (1 day);
 Mobilization for installation of one (1) new temporary soil vapor well, and collection and analysis of two (2) offsite grab groundwater sample and associated quality assurance/quality control (QA/QC) samples (1 day);
 Mobilization for collection and analysis of soil vapor samples with a state-certified mobile laboratory from one (1) newly installed dual-nested vapor well and seventeen (17) existing offsite dual-nested vapor wells (2 days);  Data review and evaluation, and communications with legal counsel and client regarding the findings;
 Preparation of a Supplemental Sampling Summary Report for the West Properties for submittal to the agency;
 Communications with the LRWQCB, including one meeting.

Proposed newly installed sample locations are shown on Figure 1. Vapor probe installation and soil vapor and groundwater sampling activities are expected to be conducted in the same manner as the previous installation and sampling activities conducted for the Subject Property. The soil vapor survey will be performed in general accordance with the July 2015 California Environmental Protection Agency (Department of Toxic Substances Control [DTSC]Los Angeles and San Francisco Bay Regional Water Quality Control Board [RWQCB]) Advisory for Active Soil Gas Investigations (Advisory). All soil vapor and groundwater samples will be analyzed for VOCs by EPA Method 8260B.

Investigation derived waste, consisting of soil spoils and decontamination water rinseate, generated during the soil vapor well installation activities will be containerized in a 55-gallon, DOT-approved steel drum to be staged at an offsite City storage yard pending profiling for proper disposal.

Upon receipt of laboratory results, Waterstone will set up a conference call with legal counsel and the client to discuss the results. Subsequently, Waterstone will prepare a report which will provide a description of the field activities conducted, comprehensive results tables with comparisons to regulatory screening standards, and site figures with sample locations and data.

Additionally, the report will include recommendations for remediation and/or mitigation Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

July 16, 2026

Page 5 ends

measures to be included in the FS/RAP that will ultimately be prepared for the West Properties.

A draft of the Supplemental Sampling Summary Report for the West Properties will be sent to the Client and legal counsel for review and comment prior to submittal to the LRWQCB.

The proposed costs for Task 3 are $58,402, as presented in Attachment A. These costs assume no additional sampling is required by the LRWQCB following receipt of the review and approval of the West Properties Site Characterization Report. If additional sampling beyond what is outlined above is requested, supplemental costs will be provided.

Task 4 – West Properties – Preparation of FS/RAP

Based on the findings of the additional investigation activities recommended in Task 3 and future comments anticipated to be received from the LRWQCB for the West Properties, Waterstone will prepare a FS/RAP for site remediation. The FS/RAP will describe various remedial activities anticipated to be required for the West Properties, likely including soil excavation, soil vapor extraction, and groundwater remediation. This task includes (i) preparation of the FS/RAP document, (ii) response to LRWQCB comments, and (iii) anticipated communications with LRWQCB, including one meeting. A draft report for the West Properties FS/RAP will be sent to the Client and legal counsel for review and comment prior to submittal to the LRWQCB.

The proposed costs for Task 4 are $20,675, as presented in Attachment A. Costs for implementation of the West Properties FS/RAP and closure reporting will be provided upon agency approval of proposed remedial activities for the West Properties.

Pricing and Schedule

The estimated cost to complete this additional investigation and reporting work proposed above is $99,523. Details of the costs are outlined in the attached table. Costs are based on certain assumptions, exclusions, and considerations outlined herein. This price includes all professional labor, administrative and subcontractor costs, communication fees, and direct client expenses required to complete the Scope of Work as defined in this proposal.

Assumptions associated with this work are the following:

 Access will be coordinated through the City to offsite commercial properties for proposed soil vapor and grab groundwater sampling activities.  Traffic control for soil vapor sampling activities located in the City streets can be conducted via the WATCH manual.
 All subcontractor costs provided include prevailing wage rates.

Confidential and Privileged
Attorney Client Communication
Attorney Work Product
John Holloway, Esq.

July 16, 2026

Page 6 ends

 Additional items not specifically outlined herein, such as client and/or counsel meetings or teleconferences, will be billed on a time-and-materials basis in accordance with the previously agreed upon rates.

Terms and Conditions

If you have any questions concerning this proposal, please contact the undersigned.

Sincerely,

Jeffrey Dagdigian Heather Fields, PG
Managing Principal Principal Geologist

Figures
1 – Proposed Sample Locations

Attachments
A – Cost Estimate for Environmental Consulting and Additional Sampling 54622 610
Proposed Soil Vapor
Sample Location
650
45167
666 554-564
45168
45160/
45166
45148
Proposed Grab Groundwater
Sample Location
GW-2
GW-3
SV-18
Figure 1
Proposed Sample
Locations
Avenue I Properties - West
Lancaster, CA
Waterstone
Environmental, Inc.
2936 E. Coronado St.

Anaheim, California 92806
Drawn By: HLF
Date: 7/8/2026Approved By: JVD
0 50' 100'
Approximate Scale
Legend
NORTH
Approximate Subject
Property Boundary
Parcel Boundary

WEST AVENUE I

GILLEY WAY

DATE AVENUE

CEDAR AVENUE

ELM AVENUE
See Avenue I
Properties - East
Report
Project No.: 23-150
Residential
Commercial
Residential
Hrs/Units Cost Hrs/Units Cost Hrs/Units Cost Hrs/Units Cost Hrs/Units Cost Waterstone Professional Fees $/Hr.

Managing Principal $375 6 $2,250 10 $3,750 6 $2,250 16 $6,000 38 $14,250 Principal Engineer/Scientist $325 16 $5,200 12 $3,900 36 $11,700 24 $7,800 88 $28,600 Supervising Engineer/Scientist $250 $0 $0 $0 $0 0 $0
Senior Engineer/Scientist $210 $0 $0 $0 $0 0 $0
Senior Associate Engineer/Scientist $190 24 $4,560 $0 20 $3,800 32 $6,080 76 $14,440 Associate Engineer/Scientist $170 $0 $0 90 $15,300 $0 90 $15,300 Assistant Engineer/Scientist $145 $0 $0 $0 $0 0 $0
Secretary $75 $0 $0 $0 $0 0 $0
Drafting $80 $0 $0 $0 $0 0 $0
Subtotal of Waterstone Fees 46 $12,010 22 $7,650 152 $33,050 72 $19,880 292 $72,590

OTHER DIRECT COSTS
Truck Rental (per day) $85 $0 $0 6 $510 $0 6 $510
PID (per day) $120 $0 $0 3 $360 $0 3 $360
Consumables (per day) $40 $0 $0 3 $120 $0 3 $120
Per Diem $250 $0 $0 2 $500 $0 2 $500
Communication Charge - 4.0% of Pro Fees $480 $306 $1,322 $795 $2,904 Subtotal of ODCs $480 $306 $2,812 $795 $4,394

SUBCONTRACTOR COSTS
Permits - GW Sampling (LA County) $126 $0 $0 1 $126 $0 1 $126 Spectrum - Utility Clearance (PW) $1,325 $0 $0 1 $1,325 $0 1 $1,325 Millennium - SV Install and Grab GW Sampling (PW) $5,714 $0 $0 1 $5,714 $0 1 $5,714 Jones - Soil Vapor Sampling and Analysis $7,127 $0 $0 1 $7,127 $0 1 $7,127 Blainetech - Well Sampling (PW) $2,447 $0 $0 1 $2,447 $0 1 $2,447 Laboratory - VOCs - Water $98 $0 $0 11 $1,078 $0 11 $1,078 Laboratory - Sample Disposal Fee $8 $0 $0 11 $88 $0 11 $88 Waste Profiling $278 $0 $0 1 $278 $0 1 $278
Waste Disposal (Non-Haz) $600 $0 $0 1 $600 $0 1 $600
$0
Subcontractor Mark-up 20% $0 $0 $3,757 $0 $3,757
Subtotal of Subcontractor Costs $0 $0 $22,540 $0 $22,540 TASK TOTALS $12,490 $7,956 $58,402 $20,675 $99,523

ATTACHMENT A
Cost Estimate for Environmental Consulting and Additional Sampling West Avenue I Properties, Lancaster, California
TASK 1 TASK 2 TASK 3 TASK 4
TOTAL COST East Properties -
Preparation of RAW
West Properties - RFP
Assistance
West Properties -
Additional Sampling
and Reporting
West Properties -
Preparation of
FS/RAP

Page 1 of 1 ends

California Levine Act Statement
California Government Code SecƟon 84308, commonly referred to as the "Levine Act," prohibits any Lancaster oﬃcial from parƟcipaƟng in any acƟon related to a contract or applicaƟon if he or she receives any poliƟcal contribuƟons totaling more than $500 within the previous twelve months, and for twelve months following the date a ﬁnal decision is rendered.

The Levine Act also requires a Lancaster City oﬃcial who has received such a contribuƟon to disclose the contribuƟon on the record of the proceeding.

Current Lancaster City Council Members are listed at:
hƩps://www.cityoﬂancasterca.org/government/city-oﬃcials/city-council-copy Current Planning Commissioners are listed at:
hƩps://www.cityoﬂancasterca.org/government/commissions-appointments/planning Proposers are responsible for accessing this link to review the names prior to answering the following quesƟons.

1. Have you or your company, or any agent/board member on behalf of you or your company/enƟty, made any po
liƟcal contribuƟons of more than $500 to any Lancaster City Council Member or other city oﬃcial in the 12 months pr
eceding the date of the submission of your proposal or applicaƟon, or the anƟcipated date of any Council acƟon? YES If yes, please idenƟfy the Council Member(s)/city oﬃcial(s):

2. Do you or your company/enƟty, or any agency on behalf of you or your company/enƟty, anƟcipate or plan to make any poliƟcal contribuƟon of more than $500 to any Lancaster City Council Member or other city oﬃcial in the 12 months following any Council acƟon related to your proposal or applicaƟon? YES If yes, please idenƟfy the Council Member(s) /city oﬃcial(s):

NO (Please note that if this is a contract lasƟng more than one (1) year that you must update this form if there are any contribuƟons made aŌer the contract is awarded) Answering yes to either of the two quesƟons above does not preclude the Lancaster City Council from awarding a contract or approving an applicaƟon or any subsequent acƟon. It does however, preclude the idenƟﬁed Council Member (s) from parƟcipaƟng in any acƟons related to your proposal or applicaƟon. _________________ _____________________________
Date Signa
ture of
authorized individual
_
____________________________
Company/Applicant Name
X
X
8/26/2026
Waterstone Environmental, Inc.

Lancaster City CouncilSeptember 8, 2026

Lancaster City Council
September 8, 2026