As a result of the dramatic increase in COVID-19 cases, and our desire to keep both the public and City staff safe, the public will be permitted to physically attend the City Council meeting scheduled for January 12, 2022, including public seating available at limited capacity. Masks are required to be worn by all persons in attendance. It is recommended that all citizens practice social distancing to the extent possible while in attendance. Councilmembers may choose to participate in person or via conference call.
How to observe the meeting virtually:
1. Spectrum local access Channel 27
2. Online live webcast at www.cityofpalmdale.org.
How to Submit Public Comments:
VERBAL PUBLIC COMMENT DURING THE MEETING – (ZOOM Number: US: +1 346 248 7799 Webinar ID: 881 2541 7461 Passcode: 517332
Webinar attendee link
https://us06web.zoom.us/j/88125417461?
pwd=eStDTnNQUE5XTy91aHJzbXZhcW84UT09
.
Verbal comments must be limited to three (3) minutes. Public comments submitted will
CITY COUNCIL MEETING
SUCCESSOR AGENCY
PALMDALE CIVIC AUTHORITY
CITY COUNCIL CHAMBERS
38300 SIERRA HIGHWAY
SUITE B
PALMDALE, CA 93550
WEDNESDAY, JANUARY 12, 2022
5:00 PM
7:00 PM
www.cityofpalmdale.org
WELCOME
City Council
Wednesday, January 12, 2022
become part of the official meeting record.
The safety and well-being of employees and the public remains the City's top priority. The City of Palmdale appreciates your patience and understanding during these challenging times.
The City Council is making every effort to follow the spirit and intent of the Brown Act and other applicable laws regulating the conduct of public meetings in order to maximize transparency and public access.
In accordance with the Americans with Disabilities Act of 1990, if you require a disability- related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (661) 267-5151 at least 72 hours prior to the meeting.
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Please refrain from public displays or outbursts, such as unsolicited applause, comments, cheering, foul language or obscenities.
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Please turn off/mute your cell phones and mobile devices.
5:00 P.M.
1. MAYOR TO CALL MEETINGS TO ORDER
2. ROLL CALL
MAYOR/CHAIR HOFBAUER, MAYOR PRO TEM/VICE CHAIR LOA,
COUNCILMEMBERS/DIRECTORS CARRILLO, BISHOP, BETTENCOURT
3. PUBLIC COMMENTS
Now is the time for public participation for any person wishing to speak to the City Council on matters listed or not listed on the agenda, within the jurisdiction of the City Council. If you are attending the meeting by phone, please press *9 to "raise your hand." If attending by personal computer, please click the "raise your hand" button. Press *6 to un-mute yourself, state your name and begin speaking. PLEASE NOTE: A three-minute limit is imposed on each speaker.
City Council
Wednesday, January 12, 2022
4. PRESENTATION BY CITY ATTORNEY
4.1 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION The existing facts and circumstances that constitute a significant exposure to litigation are detailed in the following claim received by the City, which is available for public inspection pursuant to Government Code Section 54957.5:
Claimant: Maithi Ricci
City Claim No.: 2021-047
Date Filed: 9/27/21
Date of Loss: 9/22/21
4.2 PUBLIC EMPLOYEE PERFORMANCE EVALUATION (ANNUAL EVALUATION)
Title: City Manager
Name: J.J. Murphy
This closed session is being held pursuant to the authority of California Government Code Section 54957.
4.3 PUBLIC EMPLOYEE PERFORMANCE EVALUATION (ANNUAL EVALUATION)
Title: City Attorney
Name: Christopher Beck
This closed session is being held pursuant to the authority of California Government Code Section 54957.
4.4 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: Eight cases.
A point has been reached where, in the opinion of the City on the advice of the City Attorney, based on existing facts and circumstances, there is a significant exposure to litigation against the City. The City believes that the facts and circumstances that might result in litigation against the City are not yet known to a potential plaintiff or plaintiffs.
City Council
Wednesday, January 12, 2022
4.5 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Donald D'Angelo v. County of Los Angeles, et al
Los Angeles County Superior Court
Case No. 21AVC00441
4.6 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Raul Herrera v. City of Palmdale, et al.
Los Angeles County Superior Court
Case No. 21AVC00044
4.7 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Gerald and Roberta Dolen v. Builders Fence Company, et al Los Angeles County Superior Court
Case No. 21AVC00377
4.8 The reason for holding a closed session is for the purpose of obtaining authorization and direction from the City Council regarding the possible acquisition of property interests in the following property, generally located near State Route 14 and Avenue Q:
Property Owner: Jim Goltche; Royal Investors Group, LLC; K Land Associates, LLC; Jaz Investment Corp; Royal & Aframian LLC; 26 Maple LLC.
Property: APNs 3008-041-002~007
City Negotiator: Steve Hofbauer
This closed session is being held pursuant to the authority of California Government Code Section 54956.8. Closed session is recommended because the City Council will be instructing the negotiator regarding terms and conditions, including price, for the possible purchase of the real property identified above.
5. ANNOUNCEMENT BY CITY ATTORNEY
6. ADJOURN CLOSED SESSION MEETING
7:00 P.M.
7. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE IN HONOR OF OUR TROOPS
8. PRESENTATIONS
8.1 Presentation by City Manager Murphy of the City of Palmdale's Warrior Award to City Council
Wednesday, January 12, 2022
Becky Bartlett.
8.2 Presentation of a Proclamation by Mayor and Council declaring January as Firefighter Cancer Awareness Month in the City of Palmdale.
8.3 Presentation of a Proclamation by Mayor and Council declaring January as Cervical Cancer Awareness Month in the City of Palmdale.
8.4 Presentation of a Proclamation by Mayor and Council declaring January as National Blood Donor Month in the City of Palmdale.
8.5 Presentation of a Proclamation by Mayor and Council declaring January 17, 2022 as Martin Luther King, Jr. Day in the City of Palmdale.
8.6 Presentation of a cute critter available for adoption at the Palmdale Animal Care Center.
9. WAIVER OF FULL READING OF RESOLUTION(S) and ORDINANCE(S) Staff Recommendation: Move to waive full reading of the Resolution (s) and/or Ordinance(s) to be considered and voted on at this meeting.
10. PUBLIC COMMENTS
Now is the time for public participation for any person wishing to speak to the City Council on matters listed or not listed on the agenda, within the jurisdiction of the City Council. If you are attending the meeting by phone, please press *9 to "raise your hand." If attending by personal computer, please click the "raise your hand" button. Press *6 to un-mute yourself, state your name and begin speaking. PLEASE NOTE: A three-minute limit is imposed on each speaker.
11. PALMDALE CIVIC AUTHORITY CONSENT CALENDAR
11.1 Adopt Resolution No. PCA 2022-001, a Resolution of the Palmdale Civic Authority of the City of Palmdale fixing the time and place for regular meetings. (Staff Reference: City Attorney Beck)
StaffReport_Resolution PCA 2022-001 updated.docx
PCA.Reso.MeetingDates.1.12.22 updated.docx
PCA 1988-002 re PCA Regular Meeting.pdf
PCA_BYLAWS_1988.pdf
12. CONSENT CALENDAR
All matters listed under the Consent Calendar will be enacted by one motion unless an item(s) is pulled by Council, in which case the item(s) will be removed from the Calendar and will be considered separately following this portion of the Agenda.
City Council
Wednesday, January 12, 2022
12.1 Receive and file the monthly investment activity reports for November 2021. (Staff Reference : Finance Manager Kang)
01 Staff_Report_-_Investment_Report_November_2021.docx
02 November 2021 Monthly Investement Reports City & SA.pdf
12.2 Adopt Resolution No. CC 2022-008, a Resolution of the City Council of the City of Palmdale stating the City’s Investment policy and repealing Resolution No. CC 2021-029. (Staff Reference: Finance Manager Kang)
1. Staff Report - City Investment Policy 1.12.22.docx
Reso CC 2022-008
-
Investment Policy 2022.docx
12.3 Adopt Resolution No. CC 2022-009, a Resolution of the City Council of the City of Palmdale stating the City’s Investment policy for City contributions to the Retiree HRA and the Retiree HPS Plan and repealing Resolution No. CC 2021-030. (Staff Reference: Finance Manager Kang)
2. Staff Report - City Retiree Investment Policy 1.12.22.docx
Reso CC 2022-009
-
Retiree Investment Policy 2022.docx
12.4 Adopt Resolution No. SA 2022-001, a Resolution of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale approving the Administrative Budget for the Period of July 1, 2022 through June 30, 2023 (Administrative Budget 22-23). (Staff Reference: Finance Manager Kang)
2. Staff Report - SA Adminstrative Budget 1.12.22.docx
Reso SA 2022-001
- Approve Administrative Budget 22-23.doc
Reso OB 2022-001 Exhibit A Admin Budget.xls
12.5 Adopt Resolution No. SA 2022-002, a Resolution of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale approving the Recognized Obligation Payment Schedule (ROPS 22-23) for the period of July 1, 2022 through June 30, 2023. (Staff Reference: Finance Manager Kang)
1. Staff Report - ROPS 1.12.22.docx
Reso SA 2022-002
- Approve ROPS 22-23.doc
ROPS 22-23 Successor Agency.pdf
12.6 Adopt Resolution No. CC 2022-002, a Resolution of the City Council of the City of Palmdale authorizing the sale of rights to certain excess water to Antelope Valley- East Kern Water Agency and Palmdale Water District; and actions related thereto. (Staff Reference: Director of Public Works Heffernan)
SR_Sale_of_Water_Rights.docx
Resolution CC 2022-002.doc
AVEK 2020 Water Transfer Term Sheet.pdf
PWD Water Transfer Term Sheet.pdf
City Council
Wednesday, January 12, 2022
12.7 Adopt Resolution No. CC 2022-012, a Resolution of the City Council of the City of Palmdale authorizing the execution of an Emergency Mutual Response Agreement between member of Antelope Valley Agencies. (Staff Reference:
Director of Public Works Heffernan)
01-12-2022-Staff_Report_Resolution Mutual Response Agreement.docx
Resolution_CC_2022-012_Mutual_response_Agreement_.doc
Mutual Response Agreement - Antelope Valley Agencies COP FINAL.docx
Exhibit A-Mutual Response Agreement.pdf
12.8 Notice of Completion - Accept completed project with Sully-Miller Contracting Company for the 2021 Arterial Overlay Project. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden)
SR NOC 805 Arterial Overlay Project.docx
Signed NOC PN 805.pdf
12.9 Notice of Completion - Accept completed project with Manhole Adjusting, Inc., for the 2021 Local Street Cape Seal Project. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden)
SR NOC 806 Cape Seal
Project.docx
Signed NOC PN 806.pdf
12.10 Adopt Resolution Nos. CC 2022-003 and CC 2022-004. (Staff Reference:
Director of Public Works Heffernan)
Resolution No. CC 2022-003, a Resolution of the City Council of the City of Palmdale initiating proceedings for the formation of the City of Palmdale Landscape Maintenance Assessment District No. 2020-290, describing the proposed improvements to serve said district, and ordering the preparation of the Engineer's Reports;
and
Resolution No. CC 2022-004, a Resolution of the City Council of the City of Palmdale declaring its intention to form the City of Palmdale Landscape Maintenance Assessment District No. 2020-290, preliminarily approving the Engineer's Report, and setting a time and place for hearing protest.
LMD 2020-290 SR-Intent rev.doc
CC 2022-003 Initiating Proceedings.doc
CC 2022-004 Reso Intent to Form.doc
LMD 2020-290 Engineer's Report_Updated.pdf
12.11 Notice of Completion - Accept Public Improvements for Tract 66687 located at Fairway Drive, 600 feet north of Rancho Vista Boulevard. (Staff Reference:
Director of Public Works Heffernan)
SR-01122022 TR66687 18-31.docx
City Council
Wednesday, January 12, 2022
EXHIBIT A 18-31.docx
EXHIBIT B.docx
Signed NOC TR 66687.pdf
12.12 Adopt Resolution No. CC 2022-010, a Resolution of the City Council of the City of Palmdale authorizing the City Traffic Engineer or his designee to install, remove or modify "No Parking" and "No Stopping" signs on arterial roadways, expressways, and frontage roads. (Staff Reference: Director of Public Works Heffernan)
SR Resolution CC2022-010 Parking and No Stopping Modifications.docx
Resolution 2022-010 Modifying Parking.doc
12.13 Adopt Resolution No. CC 2022-006, a Resolution of the City Council of the City of Palmdale amending the City's Classification and Pay Plan for General Positions. (Staff Reference: Human Resources Manager Nevarez)
Staff_Report_Resolution_CC_2022.
1.12.22 General Positions.docx
Resolution CC 2022.
1.12.22 Genral Positions.doc
1.1.22 CLASSIFICATION AND PAY PLAN General Positions.doc
1.1.22 Salary Schedule General Positions.xls
12.14 Adopt Resolution No. CC 2022-007, a Resolution of the City Council of the City of Palmdale amending the City's Classification and Pay Plan for Parks and Recreation Unbenefited Positions. (Staff Reference: Human Resources Manager Nevarez)
Staff_Report_Resolution_CC_2022. 1.12.22
P & R PT Positions.docx
Resolution CC 2022.
1.12.22 P & R Unbenefited.doc
1.1.22 CLASSIFICATION AND PAY PLAN RECREATION.doc
1.1.22 Salary Schedule Recreation.xls
12.15 Adopt Resolution No. CC 2022-015, a Resolution of the City Council of the City of Palmdale authorizing Remote Teleconference Meetings of the City Council and all Subordinate Bodies for the period of January 21, 2022 through February 20, 2022. (Staff Reference: City Attorney Beck)
1.12.22 Staff_Report_-
_Resolution_of_the_City_Council_Authorizing_Remote_Teleconference_Meetings__.docx
Reso_No._CC_2022.doc
12.16 Approve the minutes from the previous meetings. (Staff Reference: City Clerk/Agency Secretary Smith)
CC - October 20, 2021
CC - October 28, 2021
CC - November 1, 2021
CC/SA - November 3, 2021
CC/SA - November 17, 2021
City Council
Wednesday, January 12, 2022
CC/SA - December 1, 2021
CC - December 15, 2021
CC Minutes 10 20 2021 final.pdf
CC Minutes 10 28 2021 final.pdf
CC Minutes 11 01 2021 final.pdf
CC SA HA Minutes 11 03 2021 final.pdf
CC SA HA Minutes 11 17 2021 final.pdf
CC 12 1 2021 5pm
7pm final.pdf
CC Minutes 12 15 2021 5pm
7pm final.pdf
CC Minutes 12 15 2021 6pm
7pm final.pdf
13. APPOINTMENT
13.1 Approve Reappointment of Public Member to the Palmdale Recycled Water Authority. (Staff Reference City Clerk Smith)
1_12_22_PRWA_Reappointment_ss.docx
JPA PRWA A-4113.pdf
14. PUBLIC HEARING
14.1 Public Hearing to receive input from the community regarding the redrawing of election district boundaries. (Staff Reference: City Clerk Smith)
1 12 22 Redistricting Public Hearing_sss.docx
14.2 Public Hearing and Review of Proposed Ordinance No. 1576 for adoption. (Staff Reference: Director of Public Works Heffernan)
ORDINANCE NO. 1576, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALMDALE AMENDING CHAPTER 10.04 OF TITLE 10 OF THE PALMDALE MUNICIPAL CODE RELATING TO VEHICLES AND TRAFFIC.
Staff Recommendation: Adopt Ordinance No. 1576
SR Ordinance 1576.docx
Ordinance 1576 Adopting Speed Limits 12.7.21.docx
City of Palmdale Speed Survey Summary Final.pdf
14.3 Public Hearing and Review of Proposed Ordinance No. 1577 for adoption. (Staff Reference: City Attorney Beck)
ORDINANCE NO. 1577, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALMDALE TO PREVENT THE USE OF MANDATORY COVID-19
VACCINATIONS AND THE USE OF VACCINE PASSPORTS
StaffReport_Vaccine_Mandates_1.12.22.docx
Vaccine.Mandates.1.12.22.Ord.CAO.docx
City Council
Wednesday, January 12, 2022
14.4 Public Hearing and Review of Proposed Ordinance No. 1578 for adoption. (Staff Reference: City Attorney Beck)
ORDINANCE NO. 1578, AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF PALMDALE AMENDING PALMDALE MUNICIPAL CODE SECTION
2.08.040 RELATING TO THE SETTING OF REGULAR MEETING DATES OF THE CITY COUNCIL.
StaffReport_CCMeetingDate_1.12.22v1.docx
Ordinance_No._1578_-
_AN_ORDINANCE_OF_THE_CITY_OF_PALMDALE_AMENDING_PALMDALE_MUNICIPAL_CODE_SECTION_2.08.040_RELATING_TO_THE_SETTING_OF_REGULAR_MEETING_DATES_OF_THE_CITY_COU.docx
14.5 Public Hearing and Review of Proposed Resolution No. CC 2022-001 for adoption. (Staff Reference: Finance Manager Kang)
RESOLUTION NO. CC 2022-001, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALMDALE, AUTHORIZING USE OF THE BOND
OPPORTUNITIES FOR LAND DEVELOPMENT (“BOLD”) PROGRAM AND
AUTHORIZING THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY TO
ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT
PROCEEDINGS AND LEVY SPECIAL TAXES WITHIN THE TERRITORY OF
THE CITY OF PALMDALE PURSUANT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, AS AMENDED; AND AUTHORIZING RELATED
ACTIONS
Staff Recommendation: Adopt Resolution No. CC 2022-001
Staff Report CMFA BOLD Program.docx
Resolution CC
2022-001 Authorize BOLD Program Loan v2.doc
2 Palmdale - Public Hearing Notice re BOLD Official-NEW.docx
14.6 Public Hearing and Review of Proposed Resolution No. CC 2022-005 for adoption. (Staff Reference: Director of Public Works Heffernan)
RESOLUTION NO. CC 2022-005, A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALMDALE CONFIRMING THE BALLOT RESULTS TO
DETERMINE THAT NO MAJORITY PROTEST EXISTS IN THE
PROCEEDINGS, AND ORDERING THE FORMATION OF THE CITY OF
PALMDALE LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT NO. 2020- 290
Staff Recommendation: Adopt Resolution No. CC 2022-005.
LMD_2020-290_SR-Public_Hearing_rev.doc
CC 2022-005 Confirming No Majority Protest Exists.docx
City Council
Wednesday, January 12, 2022
Exhibit A to Resolution Attachment - Certificate of Tabulation Official.docx
LMD 2020-290 Engineer's Report_Updated.pdf
14.7 Public Hearing and Review of Proposed Resolution No. CC 2022-011 for adoption. (Staff Reference: Director of Economic and Community Development Garibay - Presented by Senior Planner Magana)
RESOLUTION NO. CC 2022-011, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE APPROVING GENERAL PLAN AMENDMENT 21-004 FOR THE DRAFT 2021-2029 HOUSING ELEMENT, DIRECT CITY STAFF TO
MAKE MINOR REVISIONS TO THE ADOPTED HOUSING ELEMENT IF
REQUIRED BY THE CALIFORNIA DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT PRIOR TO CERTIFICATION AND FIND THAT THE ADDENDUM TO ENVIRONMENTAL IMPACT REPORT 11-01,
PREVIOUSLY CERTIFIED BY THE CITY OF PALMDALE IN 2012, IS APPROPRIATE FOR THE PROJECT.
Staff Recommendation: Adopt Resolution No. CC 2022-011
STAFF_REPORT-Reso No. CC2022-011_1-12-21.docx
DRAFT 2021-2029 HOUSING ELEMENT.pdf
Reso_No._CC_2022-011-Attachments.pdf
15. NEW BUSINESS
15.1 Discuss potential amendments to the Palmdale Municipal Code (Chapter 8, et seq.) regarding regulation of smoking in the City of Palmdale, and provide direction to staff. (Staff Reference: City Attorney Beck)
StaffReport_Proposed_Smoking_Ordinance_Amendments_-
_Discussion_Item_1.12.22 (2).docx
16. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON
THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT
PUBLIC EXPENSE
16.1 COMMITTEE MEMBERSHIPS.
• ANTELOPE VALLEY AIR QUALITY MANAGEMENT DISTRICT
• ANTELOPE VALLEY TRANSIT AUTHORITY
• CALIFORNIA CONTRACT CITIES ASSOCIATION
• CITY OF PALMDALE AUDIT COMMITTEE
• CITY OF PALMDALE INVESTMENT OVERSIGHT COMMITTEE
• HIGH DESERT CORRIDOR JOINT POWERS AUTHORITY
• LEAGUE OF CALIFORNIA CITIES
City Council
Wednesday, January 12, 2022
• LOS ANGELES COUNTY SANITATION DISTRICT
• NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION
• PALMDALE RECYCLED WATER AUTHORITY
• SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS REGIONAL
COUNCIL
• UNITED STATES/MEXICO SISTER CITIES ASSOCIATION
• CALIFORNIA STATE PRISON – LOS ANGELES COUNTY, CITIZENS
ADVISORY COMMITTEE
Bettencourt Informational Report 011222.docx
16.2 MEETINGS ATTENDED AT PUBLIC EXPENSE
17. CITY MANAGER’S REPORT
18. CITY COUNCIL REQUESTS FOR NEW AGENDA ITEMS
19. Adjourn
meeting to January 19, 2022 at 7:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
City Council
Wednesday, January 12, 2022
Palmdale Civic Authority
Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE CHAIR AND DIRECTORS
FROM: CITY MANAGER DEPARTMENT
CITY CLERK DIVISION
SUBJECT: ADOPT RESOLUTION NO. PCA 2022-001, A RESOLUTION OF
THE PALMDALE CIVIC AUTHOR ITY OF THE CITY OF
PALMDALE FIXING THE TIME AND PLACE OF REGULAR
MEETINGS
ISSUE
Adopt Resolution No. PCA 2022-001, a Resolution of the Palmdale Civic Authority of the City of Palmdale fixing the time and place of regular meetings of the Palmdale Civic Authority.
RECOMMENDATION
Staff recommends the Board adopt Resolution No. PCA 2022-001, fixing the time and place of regular meetings of the Palmdale Civic Authority.
BACKGROUND
Pursuant to the bylaws of the Palmdale Civic Authority (PCA), the Board shall establish the regular meetings of the PCA by Resolution. The Board of the PCA approved Resolution No. 88 -2 in December of 1988, setting the regular meeting date of the PCA as the second Thursday in January. This was presumably done to coordinate with meetings of the City Council of the City of Palmdale as the Board members of the PCA are the then sitting members of the City of Palmdale City Council.
Resolution 88-2 also specified the mailing address and location of meetings for the PCA as 708 E. Palmdale Blvd., Palmdale, CA.
DISCUSSION
Resolution PCA 2022-001 sets the regular meeting date of the PCA to coincide with the annual budget adoption or with a regularly scheduled Palmdale City Council meeting of each year, and updates the meeting location and mailing address.
Report the Board
Re: Resolution PCA 2022-001
January 12, 2022
FISCAL IMPACT
None.
Prepared by: Shanae Smith, City Clerk
Certified as to availability of Funds: N/A
Approved by: Ronda Perez, Acting Executive Director
Approved as to form: Christopher Beck, City Attorney
ATTACHMENTS
Resolution No. PCA 2022-001
Resolution No. 88-2
PCA Bylaws
PALMDALE CIVIC AUTHORITY
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. PCA 2022-001
A RESOLUTION OF THE PALMDALE CIVIC AUTHORITY OF THE CITY
OF PALMDALE FIXING THE TIME AND PLACE FOR REGULAR
MEETINGS
WHEREAS, the bylaws of the Palmdale Civic Authority (PCA) provide that the regular meeting of the PCA shall be set by Resolution; and, WHEREAS, a Resolution was approved by the PCA on December 8, 1988 setting the regular meeting date of the PCA as the first Thursday in January, presumably to coordinate with meetings of the City Council of the City of Palmdale; and WHEREAS, the bylaws further state that the meeting and mailing address for the Palmdale Civic Authority is 708 East Palmdale Blvd., Palmdale, CA; and, WHEREAS, the resolution from 1988 needs to be updated to reflect changes in the City, including meetings of the Palmdale City Council, and location of PCA meetings; and,
WHEREAS, it is the intention of the PCA to resolve the above discrepancies by this Resolution.
NOW, THEREFORE, BE IT RESOLVED, THE PALMDALE CIVIC AUTHORITY DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. Palmdale Civic Authority Resolution Number 88-2 is hereby repealed to the extent it is inconsistent with this Resolution.
SECTION 2. The regular meeting date of the Palmdale Civic Authority shall coincide with the annual budget adoption or with a regularly scheduled meeting date of the City Council of the City of Palmdale each year.
SECTION 3. The location of regular meetings of the Palmdale Civic Authority shall occur in the same location as regular meetings of the City Council for the City of Palmdale, or other location as necessary, subject to proper public notice.
SECTION 4. The mailing address for the Palmdale Civic Authority shall be that of City Hall for the City of Palmdale.
Resolution No. PCA 2022-001
PASSED, APPROVED and ADOPTED this 12th day of January 2022. _________________________________
Approved as to form: Steven D. Hofbauer, Chair
ATTEST:
___________________________ _________________________________ Christopher L. Beck Shanae S. Smith, Authority Secretary Authority Attorney
I, Shanae Smith, Authority Secretary of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 12th day of January 2022 by the following roll call vote:
AYES: ___
NOES:______________________________________________________________ ABSTAIN:______________________ABSENT:______________________________ Date: ___
Shanae S. Smith, Authority Secretary
r
PALMDALE CIVIC AUTHORITY
COUNTY OF LOS ANGELES, CALIFORNIA
RESOLUTION NO. 88-2
A RESOLUTION OF THE PALMDALE CIVIC AUTHORITY OF THE CITY OF PALMDALE,
CALIFORNIA, FIXING TIME AND PLACE FOR REGULAR MEETINGS AND PROVIDING
THE MANNER IN WHICH SPECIAL MEETINGS OF THE AUTHORITY MAY BE CALLED,
DOPTING BYLAWS, ESTABLISHING A SEAL FOR THE AUTHORITY, DIRECTING
HE FILING OF A NOTICE OF AMENDMENT TO JOINT POWERS AGREEMENT
ITH THE SECRETARY OF STATE, DESIGNATING AN OFFICIAL MEETING ADDRESS, AND ESTABLISHING THE ORDER OF BUSINESS AND RULES FOR ITS PROCEEDINGS.
RESOLVED by the Board of Directors of the Palmdaie Civic Authority (the "Board"), as follows:
1. REGULAR MEETINGS. The regular meetings of the Board
of Palmdale Civic Financing Authority shall hereafter be held annually on the second Thursday of January immediately following the regular meeting of the Palmdale City Council and the Community Redevelopment Agency. If any regular meeting falls on a holiday, such regular meeting shall be held on the next business day at the same hour.
2. SPECIAL MEETINGS. Special meetings of the Board
shall be held upon call of the Chairman of the Board, or by a majority of the members thereof, by delivering personally or by mailed written notice to each member, and to each local newspaper of general circulation, radio or television station requesting notice in writing. Such notice shall be delivered personally or by mail and shall be received at least twenty-four (24) hours before the time of such meeting as specified in the notice. Such written notice may be dispensed with as to any member who at or prior to the time the meeting convenes files with the Secretary of the Authority a written waiver of notice. Such waiver may be given by telegram. Such written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes. Such call and notice shall specify the time and place of the special meeting and the business to be trans- acted. No other business shall be considered at such meeting.
3. MEETING PLACE. All meetings of the Board shall
be held at the regular meeting place of the Authority, unless he Board shall adjourn to or fix another place of meeting in notice to be given thereof, or unless prevented by flood, fire other disaster. Said regular meeting place is hereby fixed 'd established as the Palmclale Council Chambers, 708 East Palmdale Bculevard, Palmdale, Califcrnia.
4. ORDER OF BUSNESS. The order of business at the
regular meetings of the Board shall be as from time to time determined by the Board.
Palmdale Civic Authority Resolution No. 88-2 Page 2
5. RULES OF PROCEEDINGS.
(a) Public Meetings: All legislative sessions
of the Board, whether regular or special, shall be open to the public.
(b) Quorum: Three (3) of the members of the Board
shall constitute a quorum for the transaction of business. (c) Method of Action: The Board shall act only
by ordinance, resolution or motion, which, to become
effective, shall be adopted by the affirmative vote
of not less than a majority of the members of the Board voting.
(d) Recording Vote: Except where action shall
be taken by unanimous vote of all members present and
voting, the Ayes and Noes shall be taken on all actions had.
(e) Adjournment: The Board may adjourn any regular,
adjourned regular, special or adjourned special meeting to a time and place specified in the order of adjournment.
Less than a quorum may so adjourn from time to time.
If all members are absent from any regular or adjourned regular meeting the Secretary may declare the meeting
adjourned to a stated time and place and shall cause
a Written notice of the adjournment to be given in the
same manner as provided for special meetings, unless
such notice is waived as provided for special meetings.
A copy of the order or notice of adjournment shall be
conspicuously posted on or near the door of the place
where the regular, adjourned regular, special or adjourned special meeting was held within 24 hours after the time of the adjournment. When a regular or adjourned regular meeting is adjourned as herein provided, the resulting
adjourned regular meeting is a regular meeting for all
purposes. When an order of adjournment of any meeting
fails to state the hour at which the adjourned meeting
is to be held, it shall be held at the hour specified
for regular meetings.
(f) Hearings - Continuance: Any hearing being
held, or notice or ordered to be held, by the Board
at any meeting may by order or notice of continuance
be continued or recontinued to any subsequent meeting
of the Board in the same manner and to the same extent
set forth for the adjournment of meetings; provided,
that if the hearing is continued to a time less than
24 hours after the time specified in the order of notice of hearing, a copy of the order or notice of continuance of hearing shall be posted immediately following the
Palmdale Civic Authority Resolution No. 88-2 Page 3
meeting at which the order or declaration of continuance was adopted or made.
6. CONTRACTS: AGREEMENTS. All contracts or agreements
behalf of the Authority shall be signed by the Executive Director Chairman, and countersigned by the Secretary, after having n authorized to do so by action of the Board, except that the Chairman shall sign in the absence of the Executive Director Chairman.
7. BY LAWS. The Amended and Restated Bylaws, in the
orm on file with the Secretary are hereby approved as the Bylaws of the Authority.
8. SEAL. The Authority shall have an Official Seal
consisting of two (2) concentric circles with the words "Palmdale Civic Authority" within the outer circle and the date of formation of the Authority within the inner circle. The Secretary shall obtain the Seal at the Authority's expense and shall have custody of the Seal.
9. SECRETARY OF STATE. The Secretary shall cause a
notice of the amendment of the joint powers agreement creating the Authority, in the form on file with the Secretary, to be filed with the Secretary of State of the State of California as soon as practicable.
10. OFFICE AND MAILING ADDRESS. The office of the Authority and its official mailing address are hereby fixed and established at 708 East Palmdale Boulevard, Palmdale, California.
11. REPEAL OF PRIOR RESOLUTIONS AND BYLAWS. The foregoing provisions of this resolution and the Amended and Restated Bylaws referred to in Section 7 above hereby supercede any prior resolution and/or bylaws of the Authority as to the same matters, and such prior resolution or resolutions and bylaws are hereby repealed to the extent they are inconsistent with the provisions hereby and of such Amended and Restated Bylaws.
SSED, APPROVED and ADOPTED this 8th day of December, 1988, by following vote:
ES: Directors Hamm, Smith, Becker, Davies & Chairman Knight JES: None
J
6429
10 /
12 /
88 11
/
07 /
88 JHHW
:
PJT
:
ct
/
1 .
*
26003
-
12 f
AMENDED
AND
RESTATED
BY
-
LAWS
OF
THE
PALMDALE
CIVIC
AUTHORITY
ARTICLE
I
DEFINITIONS
;
OFFICES
AND
SEAL
Section
1 .
Definitions
.
All
capitalized
terms
used
herein
shall
have
the
respective
meanings
given
such
terms
in
the
Amended
and
Restated
Joint
Powers
Agreement
,
dated
as
of
December
8 ,
1988
by
and
between
the
City
of
Palmdale
and
the
Community
Redevelopment
Agency
of
the
City
of
Palmdale
(
the
"
Agreement
"
)
.
Section
2 .
Offices
.
The
principal
office
of
the
Authority
for
the
transaction
of
business
shall
be
708
East
Palmdale
Boulevard
,
Palmdale
,
California
93550
.
The
Board
may
,
however
,
fix
and
change
from
time
to
time
the
principal
office
from
one
location
to
another
within
the
City
of
Palmdale
by
noting
the
change
of
address
in
the
minutes
of
the
meeting
of
the
Board
at
which
the
address
was
fixed
or
changed
.
The
fixing
or
changing
of
such
address
shall
not
be
deemed
an
amen
dment
to
these
By
-
laws
.
Seed
on
3 .
Seal
.
The
Authority
shall
have
a
#
al
-
consi
sting
of
two
<
2 /
conce
ntric
circleswith
the
\
*
>
rds
"
Palmdale
Civic
Autho
rity
"
ah
1 with
th
e
date
of
esfblishme
nt
0 f
the
Authority
.
ARTICLE
II
BOARD
Section
j
.
Powers
.
Subject
to
the
limitations
of
the
Agreement
,
the
terms
of
these
By
-
laws
,
andthe
laws
of
the
State
of
California
,
the
powers
of
this
Authority
shall
be
vested
in
an
d
excised
by
and
its
property
controlled
and
its
affairs
conducted
by
the
Board
of
the
Authority
.
Section
2 .
Numb
members
of
the
City
Coun
ci
]
of
the
City
of
Palmdale
.
Each
Director
shall
hold
office
for
a
term
which
coincides
with
S
1 fh
Director
'
s
term
of
office
as
member
of
the
City
Council
.
The
Board
shall
have
five
(
5 )
Directors
,
who
shall
be
th
e
er
.
I
*
-
4 *
Section
3 .
Compensation
.
Directors
shall
serve
without
compensation
but
each
Director
may
be
reimbursed
his
or
her
necessary
and
actual
expenses
,
including
travel
incident
to
his
services
as
Director
,
pursuant
to
resolution
of
the
Board
.
Any
Director
may
elect
,
however
,
to
decline
said
reimbursement
.
Section
4 .
Regular
Meetings
.
Regular
meetings
of
the
Board
shall
be
held
at
such
time
as
the
Board
may
fix
by
resolution
from
time
to
time
,
and
if
any
day
so
fixed
shall
fall
upon
a
legal
holiday
,
then
,
upon
the
next
succeeding
business
day
at
the
same
hour
.
No
notice
of
any
regular
meeting
of
the
Board
need
be
given
to
the
Directors
.
Section
5 .
Special
Meetings
.
Special
meetings
of
the
Board
shall
be
held
whenever
called
by
the
Chairman
,
any
Vice
Chairman
,
or
by
a
majority
of
the
Board
.
Section
6 .
Public
Meetings
;
Notice
of
Meetings
.
All
proceedings
of
the
Board
shall
be
subject
to
the
provisions
of
the
Ralph
M
.
Brown
Act
,
constituting
Chapter
9 of
Part
1 of
Division
2 of
Title
5 of
the
California
Government
Code
,
and
notice
of
the
meetings
of
the
Authority
shall
be
given
in
accordance
with
such
Act
.
Section
7 .
Consent
to
Meetings
.
The
transactions
of
the
Board
at
any
meeting
however
called
and
noticed
or
wherever
held
,
shall
be
as
valid
as
though
done
at
a
meeting
duly
held
after
call
and
notice
if
a
quorum
is
present
and
if
either
before
or
after
the
meeting
each
Director
not
present
signs
a
written
waiver
of
notice
or
a
consent
to
the
holding
of
such
meeting
or
approval
of
the
minutes
thereof
.
All
such
waivers
,
consents
or
approvals
shall
be
filed
with
the
corporate
records
and
made
a
part
of
the
minutes
of
the
meeting
.
Section
8 .
Quorum
.
A
quorum
shall
consist
of
a
majority
of
the
members
of
the
Board
unless
a
greater
number
is
expressly
required
by
statute
,
by
the
Agreement
,
or
by
these
By
-
laws
.
Every
act
or
decision
done
or
made
by
a
majority
of
the
Directors
present
at
a
meeting
duly
held
at
which
a
quorum
is
present
,
shall
be
the
act
of
the
Board
.
Order
of
Business
.
The
order
of
business
at
the
regular
meeting
of
Section
9 .
the
Board
and
,
so
far
as
possible
,
at
all
other
meetings
of
the
Board
,
shall
be
essentially
as
follows
,
except
as
otherwise
determined
by
the
Directors
at
such
meeting
:
(
a
)
Report
on
the
number
of
Directors
present
in
person
or
by
proxy
in
order
to
determine
the
existence
of
a
quorum
.
(
b
)
Reading
of
the
notice
of
the
meeting
and
proof
of
the
delivery
or
mailing
thereof
,
or
the
waiver
or
waivers
of
notice
of
the
meeting
then
filed
,
as
the
case
may
be
.
Reading
of
unapproved
minutes
of
previous
meetings
of
the
Board
and
the
taking
of
action
with
respect
to
approval
thereof
.
(
c
)
(
d
)
Presentation
and
consideration
of
reports
of
officers
and
committees
.
-
2 -
(
e
)
Unfinished
business
.
(
f
)
New
business
.
(
g
)
Adjournment
.
Section
10 .
Nonliability
for
Debts
.
The
private
property
of
the
Directors
shall
be
exempt
from
execution
or
other
liability
for
any
debts
,
liabilities
or
obligations
of
the
Authority
and
no
Director
shall
be
liable
or
responsible
for
any
debts
,
liabilities
or
obligations
of
the
Authority
.
Section
11 .
Indemnity
by
Authority
for
Litigation
Expenses
of
Officer
,
Directoror
Employee
.
Should
any
Director
,
officer
or
employee
of
the
Authority
be
sued
,
either
alone
or
with
others
,
because
he
is
or
was
a
director
,
officer
or
employee
of
the
Authority
,
in
any
proceeding
arising
out
of
his
alleged
misfeasance
or
nonfeasance
in
the
performance
of
his
duties
or
out
of
any
alleged
wrongful
act
against
the
Authority
or
by
the
Authority
,
indemnity
for
his
reasonable
expenses
,
including
attorneys
'
fees
incurred
in
the
defense
of
the
proceedings
,
may
be
assessed
against
the
Authority
or
its
receiver
by
the
court
in
the
same
or
a
separate
proceeding
if
the
person
sued
acted
in
good
faith
and
in
a
manner
such
person
reasonably
believed
to
be
in
the
best
interests
of
the
Authority
and
,
in
the
case
of
a
criminal
proceeding
,
had
no
reasonable
cause
to
believe
the
conduct
of
such
person
was
unlawful
.
The
amount
of
such
indemnity
shall
equal
the
amount
of
the
expenses
,
including
attorneys
'
fees
,
incurred
in
the
defense
of
the
proceeding
.
ARTICLE
III
OFFICERS
Section
1 .
Officers
.
The
officers
of
the
Authority
shall
be
a
Chairman
,
a
Vice
Chairman
,
a
Secretary
and
such
other
officers
as
the
Board
may
appoint
.
When
the
duties
do
not
conflict
,
one
person
,
other
than
the
Chairman
,
may
hold
more
than
one
of
these
offices
.
Section
2 .
Election
of
Officers
.
The
Chairman
,
Vice
Chairman
and
Secretary
shall
be
chosen
at
every
annual
meeting
of
the
Board
,
and
each
shall
hold
office
until
he
shall
resign
or
shall
be
removed
,
shall
resign
or
otherwise
shall
be
disqualified
to
serve
or
his
successor
shall
be
elected
and
qualified
to
serve
.
Section
3 .
Subordinate
Officers
.
The
Board
may
elect
or
authorize
the
appointment
of
such
other
officers
than
those
hereinabove
mentioned
as
the
business
of
the
Authority
may
require
,
each
of
whom
shall
hold
office
for
such
period
,
have
such
authority
and
perform
such
duties
as
are
provided
in
these
By
-
laws
,
or
as
the
Board
from
time
to
time
may
authorize
or
determine
.
Section
4 .
Removal
of
Officers
.
Any
officer
may
be
removed
,
either
with
or
without
cause
,
by
a
majority
of
the
Directors
then
in
office
at
any
regular
or
special
meeting
of
the
Authority
,
or
,
except
in
the
case
of
an
officer
chosen
by
the
Board
,
by
any
officers
upon
whom
such
power
of
removal
may
be
conferred
by
the
Board
.
Should
a
-
3 -
)
/
vacancy
occur
in
any
office
as
a
result
of
death
,
resignation
,
removal
,
disqualification
or
any
other
cause
,
the
Board
may
delegate
the
powers
and
duties
of
such
office
to
any
officers
or
to
any
Directors
until
such
time
as
a
successor
for
said
office
has
been
elected
or
appointed
.
Section
5 .
Chairman
.
The
Chairman
shall
preside
at
all
meetings
of
the
Board
and
exercise
and
perform
such
other
powers
and
duties
as
may
be
from
time
to
time
assigned
to
him
by
the
Board
or
be
prescribed
by
these
By
-
laws
.
The
Chairman
shall
also
be
the
chief
corporate
officer
of
the
Authority
and
shall
,
subject
to
the
control
of
the
Board
,
have
general
supervision
,
direction
and
control
of
the
business
and
officers
of
the
Authority
.
He
shall
preside
at
all
meetings
of
the
Board
.
He
shall
be
ex
officio
member
of
all
standing
committees
,
and
shall
have
the
general
powers
and
duties
of
management
usually
vested
in
the
office
of
Chairman
of
a
public
corporation
and
shall
have
such
other
powers
and
duties
as
may
be
prescribed
by
the
Board
or
by
these
By
-
laws
.
Section
6 .
Vice
Chairman
.
In
the
absence
or
disability
of
the
Chairman
,
the
Vice
Chairman
shall
perform
all
the
duties
of
the
Chairman
and
when
so
acting
shall
have
all
the
powers
of
and
be
subject
to
all
of
the
restrictions
upon
the
Chairman
.
The
Vice
Chairman
shall
have
such
other
powers
and
perform
such
other
duties
as
may
from
time
to
time
be
prescribed
for
them
,
respectively
,
by
the
Board
or
by
these
By
-
laws
.
Section
7 .
Secretary
.
The
Secretary
shall
keep
or
cause
to
be
kept
a
book
of
minutes
at
the
principal
office
or
at
such
other
place
as
the
Board
may
order
,
of
all
meetings
of
the
Directors
,
with
the
time
and
place
of
holding
,
whether
regular
or
special
,
and
if
special
,
how
authorized
,
the
notice
thereof
given
,
the
names
of
those
present
at
Directors
'
meetings
and
the
proceedings
thereof
.
The
Secretary
shall
give
or
cause
to
be
given
notice
of
all
meetings
of
the
Board
of
the
Authority
,
shall
keep
the
corporate
records
in
safe
custody
and
shall
have
such
other
powers
and
perform
such
other
duties
as
may
be
prescribed
by
the
Board
or
these
By
-
laws
.
ARTICLE
TV
OBJECTS
AND
PURPOSES
Section
1 .
Nature
of
Objects
and
Purposes
.
The
business
of
this
Authority
is
to
be
operated
and
conducted
in
the
promotion
of
its
objects
and
purposes
as
set
forth
in
the
Agreement
.
Section
2 .
Distribution
of
Assets
During
Continuance
of
Authority
.
During
the
continuance
of
the
Authority
,
it
may
distribute
any
of
its
assets
to
the
Members
of
the
Authority
.
If
for
any
reason
the
Members
are
unable
or
imwilling
to
accept
the
assets
of
the
Authority
,
said
assets
shall
be
distributed
to
the
Federal
Government
,
or
to
a
state
or
local
government
for
public
purposes
,
or
to
a
nonprofit
fund
,
foundation
or
corporation
which
is
organized
and
operated
exclusively
for
charitable
purposes
.
Section
3 .
Dissolution
.
The
Authority
may
,
with
the
approval
of
all
of
the
Members
,
be
dissolved
by
majority
vote
of
the
Directors
if
at
the
time
of
such
dissolution
-
4 -
*
the
Authority
has
no
outstanding
indebtedness
and
is
not
a
party
to
any
outstanding
material
contracts
.
Upon
the
dissolution
or
termination
of
this
Authority
,
and
after
payment
or
provision
for
payment
,
all
debts
and
liabilities
,
the
assets
of
this
Authority
shall
be
distributed
to
the
Members
of
the
Authority
.
If
for
any
reason
the
Members
are
unable
or
unwilling
to
accept
the
assets
of
the
Authority
,
said
assets
will
be
distributed
to
the
Federal
Government
or
to
a
state
or
local
government
for
public
purposes
;
or
to
a
nonprofit
fund
,
foundation
,
or
corporation
which
is
organized
and
operated
for
charitable
purposes
.
ARTICLE
V
GENERAL
PROVISIONS
Section
1 .
Payment
of
Money
,
Signatures
.
All
checks
,
drafts
or
other
orders
for
payment
of
money
,
notes
or
other
evidences
of
indebtedness
issued
in
the
name
of
or
payable
to
the
Authority
and
any
and
all
securities
owned
by
or
held
by
the
Authority
requiring
signature
for
transfer
shall
be
signed
or
endorsed
by
the
Treasurer
.
Section
2 .
Execution
of
Contracts
.
The
Board
,
except
as
in
the
Agreement
or
in
the
By
-
laws
otherwise
provided
,
may
authorize
any
officer
or
officers
,
agent
or
agents
,
to
enter
into
any
contract
or
execute
any
contract
or
execute
any
instrument
in
the
name
of
and
on
behalf
of
the
Authority
and
such
authority
may
be
general
or
confined
to
specific
instances
and
unless
so
authorized
by
the
Board
,
no
officer
,
agent
or
employee
shall
have
any
power
or
authority
to
bind
the
Authority
by
any
contract
or
engagement
or
to
pledge
its
credit
or
to
render
it
liable
for
any
purpose
or
in
any
amount
.
Section
3 .
Fiscal
Year
.
The
fiscal
year
of
the
Authority
shall
commence
on
the
1 st
day
of
July
of
each
year
and
shall
end
on
the
30 th
day
of
June
of
the
next
succeeding
year
-
Section
4 .
Amendment
of
By
-
laws
.
These
time
and
from
time
to
time
by
majority
vote
of
the
Boat
at
idaws
may
ame
Chai
an
Attest
:
Secretary
-
5 -
City Council Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE MONTHLY INVESTMENT ACTIVITY REPORTS FOR NOVEMBER 2021.
ISSUE
Receive and file the monthly investment activity reports for November 2021.
RECOMMENDATION
Staff recommends that the City Council accept the monthly investment activity reports for City of Palmdale and Successor Agency for November 2021.
BACKGROUND
Pursuant to Section 16 of the City of Palmdale and Successor Agency Investment Policy, the City Treasurer shall prepare and present monthly and quarterly reports on investments to the City Manager/Executive Director and the City Council/Directors. The reports shall detail the type of investment, name of the issuer, purchase date, date of maturity, amount of deposit, and rate of interest. This information shall be provided for all City and Successor Agency pooled investments, as well as for Certificates of Participation, Revenue Bonds, Tax Allocation Bonds, Assessment Districts and Community Facilities District accounts which are managed by outside Fiscal Agents.
The monthly and quarterly reports provide a synopsis of the investment activity for the City of Palmdale and Successor Agency. The report s provide information on assets, allocations, average maturities, yields, and book valuations.
The interest rates presented are the most current rates available as of the date of this report.
The market values presented for pooled City and Successor Agency investments are based on closing prices for the related investment as of the date of this report. This information was obtained from the Wall Street Journal, Bloomberg Financial Markets, Capital Market Finances, or other reliable source of market prices.
DISCUSSION
Report to Mayor and City Council
Re: Monthly Report on Investments
January 12, 2022
Compliance with Investment Policy
For November, the invested portfolio amount for the City of Palmdale totaled $230,918,319, a decrease of $1,971,783 from the previous month and an increase of $51,223,419 in comparison to last year. The decrease in overall portfolio balance from the previous month is a result of debt service payment made during the month. The City did not purchase any new securities during the month, and there were no securities called or matured during the month.
The par value of Successor Agency’s portfolio as of October was $6,753,506. The balance increased by $474,427 as a result of advances of funds to pay upcoming debt service payments.
All investments meet criteria appropriate to Section 8 of the Investment Policy. The portfolios are based on a combination of various investments, including CDs, Corporate Notes, U.S. Treasury Securities and Government Agency Paper, each adhering to portfolio percentage limitations.
The Finance Division is the custodian for the City and Successor Agency’s investment portfolio and follows the three main principles of both entity’s investment policy to 1) Investment in financial instruments that mitigate the risk of monetary losses stemming from market fluctuations; 2) Establish and maintain a portfolio that has sufficient liquidity to allow the City and Successor Agency to meet all anticipated cash requirements; and 3) Seek out investment instruments that provide a competitive market rate of return.
Liquidity
One core approach the Finance Division focuses on, is providing liquidity to measure up to the City and Successor Agency’s operational requirements. Thus, the Finance Department is currently investing in two pooled funds, LAIF and CAMP. These are intended for the daily operational activities, used for economic uncertainties and maintenance needs. The pooled funds provide a higher liquidity ratio to ensure the City and Successor Agency meet cash flow requirements.
Total LAIF balance for the City of Palmdale is $134,967,143 compared to October’s balance of $136,967,143. The decrease in balance is due to interest received during the month.
Successor Agency LAIF balance at the end of October was $5,195,074, a 0.1 percent increase from June, and flat to the prior month.
CAMP’s balance for City of Palmdale is $248,725 compared to October’s balance of $248,715. The slight increase is due to interest received during the month.
Report to Mayor and City Council
Re: Monthly Report on Investments
January 12, 2022
The interest rates presented are the most current rates available as of the date of this report. As of November 30, 2021, the interest rates for LAIF and CAMP investments were at .21 percent and .05 percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of October were at .21 percent and .05 percent. Both rates have steadily declined over the past year and are holding flat. This time last year, LAIF and CAMP rates were at 0.58 percent and .14, respectively.
The chart above shows both the Local Agency Investment Fund and California Management Program’s average monthly yields beginning February 2020 through November 2021, the graph depicts the prolonged period of declining rates.
We anticipate the rates to remain fairly consistent in the upcoming months, considering the economic impacts of COVID. Overall, LAIF shows better performance than CAMP in interest rates. The difference between the performance of the two funds is partly due to the varying pool characteristics. CAMP’s portfolio composition is much more subject to market volatility, resulting in performance variation.
Diversity
The Finance Division aims to diversify the investment portfolios to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.
City of Palmdale and Successor Agency’s investment portfolios remain strongly diversified. The monthly and quarterly reports include all investments held by both entities and current book values as of November 30, 2021.
In November, there were no purchases of securities, and no securities were called or matured.
0.41%
0.36% 0.34% 0.32%
0.26%
0.22% 0.22% 0.21% 0.20% 0.20%
0.10% 0.08% 0.06% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05% 0.05%0.00%
0.05%
0.10%
0.15%
0.20%
0.25%
0.30%
0.35%
0.40%
0.45%
Feb Q3 Mar Apr May Q4 June Jul Aug Q1 Sep Oct Nov
Pooled Investments Monthly Yields
LAIF CAMP
Report to Mayor and City Council
Re: Monthly Report on Investments
January 12, 2022
It is anticipated that both the City of Palmdale and Successor Agency will have sufficient moneys to meet its expenditure requirements for the next 6 months as we continue to monitor any financial impact due to the Coronavirus pandemic.
Attached are summaries of the investments on the City of Palmdale and Successor Agency’s books as of November 30, 2021.
FISCAL IMPACT
There is no fiscal impact associated with the recommended actions for this report.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
B. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
C. Involve and expand engagement to enhance public oversight and transparency.
Prepared by: Janelle Samson, Assistant Finance Manager
Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, City Manager
Approved as to form: Christopher Beck, City Attorney
ATTACHMENTS
1. Monthly Report on City of Palmdale Investments
2. Monthly Report on Successor Agency Investments
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
November 30, 2021
PURCHASE MATURITY ACCOUNT/ FDIC INTEREST PAR PURCHASE INVESTED DATE DATE FUND INSTITUTION Number RATE AMOUNT AMOUNT AMOUNT U.S. TREASURY SECURITIES Yield
05-31-19 04-30-24 CITY 9128286R6 U.S. Treasury Note 2.03 5,000,000.00 5,051,650.00 5,256,640.00 01-19-21 05-31-23 CITY 9128284S6 U.S. Treasury Note 2.75 2,815,000.00 2,985,994.41 2,950,035.55 03-19-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 3,000,000.00 3,260,634.36 3,244,110.00 05-11-21 02-28-26 CITY 9128286F2 U.S. Treasury Note 0.66 3,000,000.00 3,261,331.50 3,231,330.00 05-11-21 12-31-24 CITY 9128283P3 U.S. Treasury Note 0.40 3,000,000.00 3,200,040.56 3,175,080.00 06-04-21 12-31-22 CITY 912828N30 U.S. Treasury Note 0.05 3,000,000.00 3,097,665.56 3,087,420.00 06-04-21 12-31-23 CITY 912828V23 U.S. Treasury Note 0.20 4,000,000.00 4,210,026.50 4,188,600.00 07-12-21 12-31-23 CITY 9128285U0 U.S. Treasury Note 2.63 5,000,000.00 5,294,239.83 5,294,239.83 07-12-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 5,000,000.00 5,456,238.24 5,456,238.24 07-12-21 12-31-23 CITY 912828V23 U.S. Treasury Note 2.25 5,000,000.00 5,247,829.98 5,247,829.98 TOTAL U.S. TREASURY SECURITIES 38,815,000.00$ 41,065,650.94$ 41,131,523.60$
GOVERNMENT AGENCY PAPER
06-05-19 06-05-23 CITY 3133EKPT7 Fed Farm Credit Bk 2.13 5,000,000.00 5,008,600.00 5,178,913.05 06-10-20 06-16-25 CITY 3133ELK37 Federal Farm Credit 0.78 5,000,000.00 5,000,000.00 5,000,332.40 08-07-20 05-06-24 CITY 3133EL2X1 Federal Farm Credit 0.42 2,000,000.00 2,000,000.00 1,985,613.10 08-27-20 11-27-24 CITY 3134GWNG7 Freddie Mac Domestic 0.50 2,000,000.00 2,000,000.00 1,998,606.02 04-01-21 04-01-25 CITY 3133EMUP5 Fed Farm Credit 0.71 5,000,000.00 5,000,000.00 5,001,585.95 05-11-21 09-04-25 CITY 3133EJYM5 FFCB Bond 0.59 1,000,000.00 1,103,275.25 1,094,660.00 05-11-21 09-04-25 CITY 3133EJYM5 FFCB Bond 0.57 0.57 2,000,000.00 2,208,460.00 2,189,320.00 06-04-21 11-07-25 CITY 3135G06G3 Fannie Mae 0.55 3,000,000.00 2,993,675.25 2,967,390.00 06-04-21 08-01-24 CITY 3130AMHH8 FHLB NOTE 0.41 4,000,000.00 4,000,000.00 3,979,555.16 06-07-21 06-07-24 CITY 3130AMQR6 FHLB NOTE 0.35 3,000,000.00 3,000,000.00 2,986,755.36 06-30-21 12-30-25 CITY 3130AMRQ7 FHLB NOTE 0.88 3,000,000.00 3,000,000.00 2,981,324.28 07-29-21 04-29-26 CITY 3130AN5C0 FHLB NOTE 1.05 4,000,000.00 4,010,455.13 4,010,455.13 c = callable
TOTAL GOVERNMENT AGENCY PAPER 39,000,000.00$ 39,324,465.63$ 39,374,510.45$
CERTIFICATES OF DEPOSIT
05-11-18 05-11-22 CITY 05580AMR2 Bmw Bank North America 35141 2.95 245,000.00 245,000.00 251,143.62 05-15-18 05-16-22 CITY 86063QAN5 Stifel Bank & Trust 57311 2.85 245,000.00 245,000.00 250,964.53 05-18-18 05-18-22 CITY 29278TBF6 Enerbank Usa 57293 2.95 245,000.00 245,000.00 251,216.88 05-31-17 05-31-22 CITY 02587CFM7 American Express Bk 35328 2.40 245,000.00 245,000.00 250,250.84 06-01-17 05-31-22 CITY 51210SMT1 Lakeside Bank 19573 2.00 245,000.00 245,026.85 249,319.60 05-10-18 05-10-23 CITY 61747MX30 Morgan Stanley Bank Na 32992 3.15 245,000.00 245,000.00 258,447.32 05-11-18 05-11-23 CITY 87164WWF1 Synchrony Bank 27314 3.15 245,000.00 245,000.00 258,465.69 05-11-18 05-11-23 CITY 17312QL23 Citibank Na 7213 3.15 245,000.00 245,000.00 258,465.69 05-15-18 05-15-23 CITY 20033AYE0 Comenity Capital Bank 57570 3.10 245,000.00 245,000.00 258,255.73 TOTAL CERTIFICATES OF DEPOSIT 2,205,000.00$ 2,205,026.85$ 2,286,529.90$
CITY OF PALMDALE INVESTMENTS
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
November 30, 2021
CORPORATE NOTES
03-10-20 03-01-23 CITY 30231GAR3 Exxon Mobil 2.73 1,000,000.00 1,045,330.00 1,035,276.25 03-10-20 05-13-22 CITY 037833BF6 Apple Inc 2.70 1,000,000.00 1,039,820.00 1,021,372.65 03-10-20 11-03-22 CITY 594918BH6 Microsoft Corp 2.65 1,000,000.00 1,047,870.00 1,028,648.84 03-10-20 01-13-23 CITY 037833DE7 Apple Inc 2.40 1,000,000.00 1,041,800.00 1,032,294.50 03-10-20 12-14-22 CITY 92826CAC6 VISA Inc 2.80 1,500,000.00 1,572,135.00 1,549,706.22 06-10-20 04-15-23 CITY 30231GBL5 Exxon Mobil Corp 1.75 5,000,000.00 5,000,000.00 5,110,650.00 06-10-20 05-11-23 CITY 166764BV1 Chevron Corp 1.14 2,075,000.00 2,075,000.00 2,105,595.85 TOTAL CORPORATE BONDS 12,575,000.00$ 12,821,955.00$ 12,883,544.31$
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
09-01-84 n/a CITY ACCOUNT 98-19-620 0.78 65,060,052.63 65,060,052.63 65,060,052.63 06/23/08 n/a PCA ACCOUNT 40-19-060 0.78 52,194,291.68 52,194,291.68 52,194,291.68 n/a ARPA ACCOUNT 19-19-004 0.78 17,700,351.50 17,700,351.50 17,700,351.50 TOTAL LAIF ACCOUNTS 134,954,695.81$ 134,954,695.81$ 134,954,695.81$
CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM
6080-01 n/a CITY ACCOUNT 6080-01 0.30 248,725.47 248,725.47 248,725.47 TOTAL CAMP ACCOUNTS 248,725.47$ 248,725.47$ 248,725.47$
UBS FINANCIAL SERVICES
n/a n/a CITY ACCOUNT 0.00 38,789.76 38,789.76 38,789.76 TOTAL UBS FINANCIAL SERVICES ACCOUNTS 38,789.76$ 38,789.76$ 38,789.76$ TOTAL CITY INVESTMENTS 227,837,211.04$ 230,659,309.46$ 230,918,319.30$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
November 30, 2021
PURCHASE MATURITY ACCOUNT INTEREST INVESTED
DATE DATE FUND NUMBER RATE AMOUNT
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
11-20-84 n/a LIBRARY 16-19-012 0.78 12,446.83
TOTAL LIBRARY INVESTMENTS 12,446.83$
PURCHASE MATURITY ACCOUNT INTEREST INVESTED
DATE DATE FUND NUMBER RATE AMOUNT
BOND PROCEEDS
SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 05-10-95 n/a BOND 95421220 0.01 106.62
05-10-95 n/a IMPROVEMENT 95421222 0.01 154,937.06
City Held Cash(Fund 736-114000) ($255,912.67)
TOTAL SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1 155,043.68$
BOND PROCEEDS
RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-06-95 n/a RESERVE-SEN 95420880 n/a 0.00
04-06-95 n/a IMPV-ACQUI 95420884 0.01 2,585,345.26
04-06-95 n/a BOND 95420887 0.00 0.15
City Held Cash(Fund 738-114000) ($1,000,675.82)
TOTAL RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1 2,585,345.41$
BOND PROCEEDS
ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-01-19 n/a RESERVE 242969003 0.00 722,957.02
08-01-19 n/a SP TAX - REFUNDING BOND 242969004 0.01 15,149.03 08-01-19 n/a SP TAX - REFUNDING BOND COI242969005 0.01 300.42 City Held Cash(Fund 734-114000) $900,917.97
TOTAL ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1 738,406.47$
LIBRARY INVESTMENTS
FISCAL AGENT CASH
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
November 30, 2021
BOND PROCEEDS
2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-02-05 n/a SPEC TRB SER A/B 790330000 0.01 0.00
08-02-05 n/a RESERVE FUND 790330002 0.01 0.00
City Held Cash(Fund 735-114000) $744,688.56
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) -$
BOND PROCEEDS
2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021 Fiscal Agent: U.S. Bank National Association (fka First Trust) n/a SPEC TRB SER A/B 251009000 0.01 14.82
n/a RESERVE FUND 251009001 0.01 639,066.81
City Held Cash
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021639,081.63$
BOND PROCEEDS
2006-1 Godde Hill Estate Sewer Improvements LOIB
Fiscal Agent: U.S. Bank National Association (fka First Trust) 11-08-06 n/a REDEMPTION FUND 106844000 0.01 64,453.07
11-08-06 n/a ADM EXP 106844002 0.01 1,594.36
11-08-06 n/a RESERVE FUND 106844003 0.01 105,752.74
City Held Cash(Fund 739-114000) $127,799.09
TOTAL 2006-1 Godde Hill Estate Sewer Improvements LOIB 171,800.17$
BOND PROCEEDS
2007 $19.9M COP Power Plant Land Acquisition
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-12-07 n/a LEASE PAYMENT 112055000 0.01 0.00
04-12-07 n/a RESERVE FUND 112055001 0.00 0.00
TOTAL 2007 $19.9M COP Power Plant Land Acquisition -$
BOND PROCEEDS
2007 $6.5M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-23-07 n/a BOND FUND 117856000 0.01 0.00
08-23-07 n/a RESERVE FUND 117856002 0.01 0.00
TOTAL 2007 $6.5M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) -$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
November 30, 2021
PURCHASE MATURITY ACCOUNT INTEREST INVESTED
DATE DATE FUND NUMBER RATE AMOUNT
BOND PROCEEDS
2012 PFA $8.7M LEASE REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 12-19-12 n/a REVENUE FD 201546000 0.00 2.59
12-19-12 n/a INTEREST ACCOUNT 201546001 n/a 0.00
12-19-12 n/a PRINCIPAL ACCOUNT 201546002 n/a 0.00
TOTAL 2012 PFA $8.7M LEASE REVENUE BONDS 2.59$
2013 HA PALMDALE TRANSIT VILLAGE HOMES LLC ESCROW
Fiscal Agent: U.S. Bank National Association (fka First Trust) 10-11-13 n/a ESCROW FUND 206455000 0.00 2,979,512.65
TOTAL 2013 HA TRANSIT VILLAGE HOMES ESCROW 2,979,512.65$ 2015 HA DEBT SERVICE RESERVE
Fiscal Agent: Bank of America
11-19-15 n/a DEBT SVC RESERVE 1257964992 0.08 39,111.80 TOTAL 2015 HA DEBT SERVICE RESERVE 39,111.80$
PARS RESTRICTED CASH FOR PENSION STABILIZATION TRUST FUND 05-23-18 n/a CITY 104790895775 Public Agency Retirement Services2.60 7,201,082.06 TOTAL PARS PENSION TRUST FUND 7,201,082.06$
BOND PROCEEDS
2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 09-03-15 n/a BOND FUND 277067000 0.00 144,591.72
09-03-15 n/a INTEREST ACCT 277067001 0.01 6.95
09-03-15 n/a BOND RESERVE 277067003 0.00 281,022.06
09-03-15 n/a REPAIR & REPLACE FUND 277067004 0.00 1,078,345.02 TOTAL 2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS 1,503,965.75$
FISCAL AGENT CASH
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
November 30, 2021
BOND PROCEEDS
2017 PFA $17.4M LEASE REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-05-17 n/a REVENUE FUND 271128000 0.00 2.04
04-05-17 n/a PRINCIPAL ACCT 271128002 n/a 0.00
TOTAL 2017 PFA $17.4M LEASE REVENUE BONDS 2.04$
Total City Held Cash (XXX-114000) $516,817.13
GRAND TOTAL - FISCAL AGENT CASH 15,374,272.62$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
November 30, 2021
Cash on Hand 7,621,306$
($1,157,391)
Pooled Cash Investments ($7,930,873)
$6,717,149
City: 220,149,706$ $0 Insur Fund: $10,768,613 230,918,319$
Library Investments $12,447
Subtotal 236,180,956$
City/AD/CFD/PCA/PFA/HA
Fiscal Agent Cash 15,374,273$ *
Grand total 251,555,229$
The interest rate quoted on LAIF, AIM, and Fiscal Agent/Trustee accounts is the most current rate available.
LAIF & AIM interest rates are as of November 30, 2021.
S:\Cash and Investment\Investment\Investment Reports\21-22\05 November 2021\[05 November 2021 Investment Report City.xls]LAIF_CAMP Transactions
SUMMARY OF CASH AND INVESTMENTS
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF), CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP), & UBS FINANCIAL SERVICES November 30, 2021
TRANSACTION INTEREST
DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
CITY ACCOUNT 98-19-620
Beginning Balance 67,060,052.63$
11/17/21 (2,000,000.00)$
Subtotal -$ (2,000,000.00)$ -$ 65,060,052.63$ PCA ACCOUNT 40-19-060
Beginning Balance 52,194,291.68$
Subtotal -$ -$ -$ 52,194,291.68$ LIBRARY ACCOUNT 16-19-012
Beginning Balance 12,446.83$
Subtotal -$ -$ -$ 12,446.83$ ARPA ACCOUNT 19-19-004
Beginning Balance 17,700,351.50$
Subtotal -$ -$ -$ 17,700,351.50$
CAMP - CALIFORNIA ASSET MANAGEMENT PROGRAM
Beginning Balance 248,715.13$
11/30/21 10.34 $
Subtotal -$ -$ 10.34$ 248,725.47$ UBS Financial Services
Beginning Balance 10,583.51$
11/08/21 7,500.00$
11/30/21 (18,000.00)$
11/30/21 38,706.25$
Subtotal -$ (18,000.00)$ 46,206.25$ 38,789.76$ Total -$ (2,018,000.00)$ 46,216.59$ 135,254,657.87$ 135,005,932.40$
TN= US Treasury C= Call
FP= Federal Paper M= Maturity
CD= Certificate of Deposit CB= Corporate Bond
FACE
PURCHASEMATURITY REDEMPTION VALUE INTEREST NET INVESTED GAIN/
ISSUER DATE DATE DATE REDEEMED RECEIVED FUNDS AMOUNT (LOSS) -$ $0.00
-$ $0.00
-$ -$ -$ -$ -$ Total Number of Transactions: 0
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
POOLED CASH - INVESTMENTS MATURED OR CALLED
November 30, 2021
TN = US Treasury
FP = Federal Paper
CD = Certificate of Deposit
CN = Corporate Notes ACCRUED
PURCHASE MATURITY FACE PREMIUM / PURCHASE INTEREST NET Yield
ISSUER DATE DATE VALUE (DISCOUNT) PRICE PURCHASED PURCHASE -$ -$
-$ -$
-$ -$
-$ -$
-$ -$ -$ -$ -$ Total Number of Transactions: 0
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
POOLED CASH - INVESTMENTS PURCHASED
November 30, 2021
10 SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
November 30, 2021
SUCCESSOR AGENCY POOLED CASH INVESTMENTS
PURCHASE MATURITY ACCOUNT/ INTEREST INVESTED
DATE DATE FUND INSTITUTION RATE AMOUNT TOTAL
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
09-01-84 n/a SA ACCOUNT 65-19-035 0.78 5,195,074.29
TOTAL LAIF ACCOUNTS 5,195,074.29$
FISCAL AGENT CASH
BOND PROCEEDS
CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) Fiscal Agent: U.S. Bank National Association
08-20-02 n/a RESERVE FUND 94460700 0.01 527,753.63
08-20-02 n/a INTEREST ACCT 94460701 0.01 616,316.55
08-20-02 n/a PRINCIPAL ACCT 94460702 0.01 348,683.39
TOTAL CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) 1,492,753.57$
BOND PROCEEDS
2016 SA $31.5M Tax Allocation Refunding Bonds Series A
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-26-16 n/a DEBT SERVICE 245113000 0.00 4.95
04-26-16 n/a INTEREST ACCT 245113001 N/A 0.00
TOTAL 2016 SA $31.5M Tax Allocation Refunding Bonds Series A 4.95$ GRAND TOTAL - FISCAL AGENT CASH $1,492,759
SUMMARY OF CASH AND INVESTMENTS
Cash on Hand 65,673$ $43,635
$0
Pooled Cash Investments 5,195,074$ $22,038
$65,673
Successor Agency Fiscal Agent Cash $1,492,759*
Grand total 6,753,506$
* The interest rate quoted on LAIF and Fiscal Agent/Trustee accounts is the most current rate available.
LAIF interest rates are as of November 30, 2021.
S:\Cash and Investment\Investment\Investment Reports\21-22\05 November 2021\[05 November 2021 Investment Report Successor Agency.xls] Monthly
SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF)
November 30, 2021
TRANSACTION INTEREST
DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
SA ACCOUNT 65-19-035
Beginning Balance 5,195,074.29$
Subtotal -$ -$ -$ 5,195,074.29$ City Council Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE - FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 202 2-008, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE STATING THE CITY’S INVESTMENT POLICY AND REPEALING RESOLUTION NO. CC
2021-029.
ISSUE
Adopt Resolution No. C C 2022-008, A Resolution of the City Council of the City of Palmdale stating the City’s Investment policy and repealing Resolution No. CC 2021-029.
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. CC 2022-008 stating the Investment Policy for the City of Palmdale and repeal Resolution No. CC 2021-029.
BACKGROUND
The City Council adopted Resolution No. CC 2021-029 on April 6, 2021, stating the City’s Investment Policy. The City reviews the Investment Policy annually and makes changes where necessary. All changes conform to California Government Codes [53600 - 53610].
DISCUSSION
There are no changes to the Investment Policy, however, staff seeks council approval of the policy annually whether changes exist or not per California Government Code 53607, where it states that the code provides the authority for the legislative body of the local agency to invest the funds of the local agency, or to delegate the full responsibility to the treasurer of the local agency for a one-year period.
FISCAL IMPACT
There is no fiscal impact associated with this action.
Report to Mayor and City Council
Re: A Resolution of the City Council of the City of Palmdale Stating the City’s Investment Policy and Repealing Resolution No. CC 2021-029.
January 12, 2022
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
B. Establish healthy reserves for ongoing replacement and repair of capital while stabilizing the annual spending.
C. Pursue alternative financing opportunities for continued infrastructure improvements and quality community programs.
Prepared by: Willy Galindo
Certified as to availability of Funds: Keith Kang
Approved by: J.J. Murphy, ICMA-CM, City Manager
Approved as to form: Christopher Beck, City Attorney
ATTACHMENTS
Resolution No. CC 2022-008
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-008
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE STATING THE CITY’S INVESTMENT POLICY AND REPEALING
RESOLUTION NO. CC 2021-029.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. Purpose
This Resolution states the City’s investment policy which is intended to provide guidelines to the City Treasurer for the prudent investment of the City’s temporary idle cash not otherwise governed by bond indentures or bond resolutions, and to outline policies for maximizing the efficiency of the City's cash management system. The goal is to enhance the economic status of the City while protecting its pooled cash. These guidelines do not supersede applicable State laws and City ordinances. A Glossary of investment terms is provided at the end of the resolution for reference.
SECTION 2. Scope
This investment policy applies to the investment of all cash and various funds of the City as identified in the Annual Comprehensive Financial Report, except for the employee’s retirement and deferred compensation funds and those cash assets governed by bond indentures or bond resolutions. The following is a list of funds included:
2.1 General Fund
2.2 Special Revenue Funds
2.3 Capital Project Funds
2.4 Trust and Successor Agency Funds not otherwise invested with the Trustee/Fiscal Agent
SECTION 3. Prudence
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
3.1 Governing bodies of local agencies, or persons authorized to make investment decisions on behalf of the agency, are trustees, and therefore fiduciaries subject to the prudent investor standard. The trustee is required to consider the general Resolution No. CC 2022-008
economic conditions and the anticipated needs of the agency when investing, reinvesting, purchasing, acquiring, exchanging, and selling or managing public funds.
3.2 The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.
SECTION 4. Objectives
The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City Treasurer maintains a diversified portfolio to accomplish the primary objectives of safety, liquidity, and yield (in that order of priority).
4.1 Safety: The safety/risk associated with an investment refers to the potential loss of principal, accrued interest or a combination of these. The City seeks to mitigate credit risk by continual monitoring of financial institutions with which it will do business and by careful scrutiny of the credit worthiness of the investment instruments as well as the institutions. Such resources as Moody’s Investor, Standard & Poor’s and Fitch rating services are utilized for this review. The City seeks to mitigate rate risk through diversification of instruments as well as maturities.
4.2 Liquidity: The portfolio will be structured with sufficient liquidity to allow the City to meet all anticipated cash requirements. This will be accomplished through matching maturities to expected cash needs, the State Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), and AAA/Aaa rated money market funds with immediate withdrawal provision.
4.3 Yield: A competitive market rate of return is the third objective of the investment program after the fundamental requirements of safety and liquidity have been met.
SECTION 5. Delegation of Authority
California Government Code Section 53607 provides the authority for the legislative body of the local agency to invest the funds of the local agency, or to delegate the full responsibility to the treasurer of the local agency for a one-year period. The legislative body may renew such delegation of authority to the treasurer each year.
5.1 City Council: By adoption of this policy, the City Council has authorized the City Treasurer to invest City surplus funds in accordance with California Government Code Section 53600, et. seq. and to invest Agency bond or COP proceeds in accordance with California Government Code Section 5922(d) and 53601(I). The delegation of authority to the City Treasurer shall remain in effect until it expires or is revoked, Resolution No. CC 2022-008
whichever occurs first. The City Treasurer shall make a monthly report to the City Council of all transactions made pursuant to this delegation of authority.
5.2 City Treasurer: The execution of investment transactions on a daily basis will be conducted by the City Treasurer or may be delegated to the Deputy City Treasurer.
The City Treasurer has established a system of controls and a segregation of responsibilities of investment functions to assure maintenance of internal control over the investment function.
5.3 The City Treasurer retains the authority to amend the Investment Policy, Guidelines, and Procedures at any time in order to carry out the duties as chief investment officer for the City. Notice of any such required amendment will be given to the Investment Oversight Committee and the City Council.
SECTION 6. Ethics and Conflicts of Interest
Employees involved in the investment of City funds shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair, or appear to impair, their ability to make impartial investment decisions. The City Treasurer shall comply with the reporting requirements of the Political Reform Act of 1974 regarding disclosure of material financial interests and shall file an annual Statement of Economic Interests.
SECTION 7. Authorized Financial Dealers and Institutions
7.1 The City shall transact business only with nationally or state-chartered banks and licensed investment securities dealers. The City Treasurer shall maintain a listing of financial institutions authorized to provide investment services to the City.
7.2 Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City.
7.3 The Treasurer and the Investment Oversight Committee shall obtain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives and can provide written agreements to abide by the conditions set forth in the City of Palmdale Investment Policy. Investment accounts with all financial institutions shall be standard non-discretionary accounts and may not be margin accounts.
7.4 All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply to the Treasurer the following: audited financial statements, proof of National Association of Security Dealers certification, proof of state registration, broker/dealer questionnaire, and certification of having read the California Government Code Section 53600 et seq. and the City’s Investment policy and that all securities offered to the City shall comply fully and in every instance with all provisions of the California Government Code.
Resolution No. CC 2022-008
7.5 The signatures of two individuals shall be required for the opening and closing of any bank account and broker account (the Treasurer or City Manager, and the Mayor or Mayor Pro Tem). The Accounting Officer, who is independent of the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shall provide this list of accounts to the City’s independent auditor.
7.6 Public deposits shall be made only in qualified public depositories within the State of California as established by State law. The Federal Deposit Insurance Corporation shall insure deposits, or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law.
7.7 Whenever possible, investment staff shall obtain a minimum of two quotations, preferably three, prior to entering into an investment transaction. Staff will buy or sell at the price that is most advantageous to the City and meets investment requirements. Treasury bills, treasury notes, and federal agency securities will only require one quotation due to minimal commissions.
SECTION 8. Authorized and Suitable Investments for Surplus Funds California Government Code Section 53601 defines eligible securities for the investment of surplus funds by local agencies. Surplus funds of the City are invested in compliance with this statute and as further limited in this Investment Policy. In any event, no security may be purchased with a remaining maturity in excess of five years without specific legislative authority.
8.1 Demand deposits of up to $2,000,000 (and $2,500,000 in the aggregate) with Bank of America or Wells Fargo Bank.
8.2 Bank of America Cash Management Sweep Agreement.
8.3 U.S. Government: United States Treasury Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. The maturity on these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.
8.4 U.S. Government: United States Federal Agency Securities are backed by the implied support of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. The maturity on these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.
8.5 Municipal Obligations: Bonds, notes, warrants, or other evidence of indebtedness of the State of California or of any local agency within the State of California.
A maximum of 10 percent may be invested in municipal obligations. The maturity on these investments shall not exceed State investment guidelines of five years without the prior approval of the Investment Oversight Committee. In addition, the issuer itself must meet the minimum State investment guidelines of having a minimum credit rating of “A” or Resolution No. CC 2022-008
equivalent by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch).
8.6 Corporate Notes: Medium Term Corporate Notes, with a maximum maturity of five years may be purchased. Securities eligible for investment shall be rated A or better by Moody's or Standard & Poor's rating services. A maximum of 15 percent of the portfolio may be invested in medium term corporate notes.
8.7 Bankers Acceptances: Bills of exchange or time drafts drawn on and accepted by commercial banks, which are eligible for purchase by the Federal Reserve System, are known as banker’s acceptances. Purchases of these instruments may not exceed 180 bankers days maturity. A maximum of 2 percent may be invested in the bankers acceptances of any one commercial bank except the two banks listed in Section
8.1 above, in which case the limit, when aggregated with the funds in demand deposits in any one of those two banks, will not be more than 40 percent of the City's total invested funds.
8.8 Certificates of Deposit (CDs): Certificates of deposit or “time deposits” of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities. Statute does not limit CDs; however, this Investment Policy shall limit such investments to a maximum of 25 percent of the portfolio and to a maximum of 15 percent deposited in any one institution.
In addition, time deposits shall be placed in institutions meeting all capital requirements and rated” AA” or higher by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch) for any deposits over $250,000.
If a local bank does not have two ratings from two of the three rating agencies that are double AA or higher (Moody’s, Standard & Poor’s, and Fitch), then the City Treasurer will use alternative methods to determine the financial strength of the local bank when depositing over $250,000. The alternative methods will include a review of the latest three-year earnings trend and a review of the ratios showing bank capital as a percentage of weighted assets and average assets. These ratios are shown in the audited annual report for each bank and will be reviewed annually. The Federal Deposit Insurance Corporation (FDIC) issues standards for the determination of well capitalized.
Investments in local banks will be limited to banks that are well capitalized as exhibited in the audited annual report. Initial investments with local banks will be no more than $250,000. Additional amounts may be invested with local banks subject to the approval of City Council. The maximum allowable investment in any local bank will be $1,000,000.
The maximum allowable investment for local banks will be reviewed annually and may be adjusted up or down subject to City Council approval.
Investments in the CDARS program are permitted. CDARS, the Certificate of Deposit Account Registry Service, is an investment vehicle established to allow investing participants to have full federal insurance on deposits up to $50 million and to earn one Resolution No. CC 2022-008
interest rate per deposit. A deposit is placed with a network member institution that uses CDARS to place the deposit into several certificates of deposits issued by network banks.
The maximum placed into each certificate of deposit by the network member institution is $250,000 to ensure full federal insurance by the FDIC.
8.9 Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53630, are permitted investments. Section 53601(k) further defines requirements. A maximum of 15 percent of the portfolio may be so invested in funds that have the highest rating (e.g., AAA) provided by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch).
8.10 Local Agency Investment Fund (LAIF): The Local Agency Investment Fund has been established by the State Treasurer for the benefit of local agencies. The City may invest up to the maximum permitted by the LAIF.
8.11 Capital Asset Management Program (CAMP): Pooled money market investment program has been established by California public agents (board of trustees) for the benefit of local agencies. The Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). The City may invest up to the maximum permitted by the CAMP.
8.12 Ineligible Investments: Investments not described herein, including but not limited to common stocks and financial futures contracts and options, are prohibited in this fund. Additionally, the Treasurer shall not invest in reverse floaters, range notes, or interest only strips that are derived from a pool of mortgages, nor may the Treasurer invest in any security that could result in zero interest accrued if held to maturity.
8.13 Permitted Investments Summary:
Investment Type Maximum
Maturity
Maximum
Specified % of
Portfolio
Minimum Quality
Requirements
Demand Deposits with Bank of America or
Wells Fargo Bank
N/A $2 million each or
$2.5 million in
aggregate
N/A
Overnight banks investment pools that
invest solely in Investments allowable
under this policy
N/A 10% None
U.S. Treasury bonds/notes/bills 5 years None None
U.S. Government Agency obligations 5 years None None
Resolution No. CC 2022-008
Municipal Obligations 5 years 10% “A” rating
Bankers' acceptances 180 days 40% Federal Reserve
eligible
Certificates of deposit 5 years 25% “AA” rating above
$250,000 deposit
Mutual Funds N/A 15% “AAA” rating
Local Agency Investment Fund (LAIF) (not
to exceed $65,000,000 per account)
N/A None None
California Asset Management Program
(CAMP)
(not to exceed $65,000,000 per account)
N/A None None
SECTION 9. Authorized and Suitable Investments for Bond or COP Proceeds California Government Code Section 5922 authorizes “Investment Securities”, “Permitted Investments”, or “Qualified Investments” defined in the Bond or COP documentation for each issuance. This Code Section was enacted in recognition of the unique needs inherent in the investment of these proceeds. In addition to the investments authorized for the City’s surplus funds in Section 8 above, the bond indenture can expand the investments in accordance with the documents to include such investment instruments such as Investment Agreements as defined in the documentation as per California Government Codes 53601(l) and 5922(d).
SECTION 10. Collateral
The issue of collateral requirements is addressed in California Code Section 53652. All active and inactive deposits must be secured at all times with eligible securities in securities pools pursuant to Sections 53656 and 53657. Eligible securities held as collateral shall have a market value in excess of the total amount of all deposits of a depository as follows:
* Government securities, at least 10 percent in excess
* Mortgage-backed securities, at least 50 percent in excess * Letters of credit, at least 5 percent in excess
SECTION 11. Safekeeping and Custody
All security transactions entered by the City shall be conducted on a delivery versus payment or debit checking basis, whichever is more beneficial to the City. A third- Resolution No. CC 2022-008
party custodian designated by the City Treasurer and evidenced by safekeeping receipts will hold securities.
SECTION 12. Diversification
To reduce portfolio risk while attaining market average rates, type and institution will suitably diversify the City’s portfolio.
12.1 Security Type and Institution: With the exception of U.S. Treasury securities, U.S. Federal Agency Securities, and authorized pools, no more than 50 percent of the total portfolio will be invested in a single security type and no more than 15 percent with a single financial institution. Investments are further limited by specific language relating to each investment type as stated in Section 8 of this Policy.
12.2 Maximum Maturities: To the extent possible, the City Treasurer will attempt to match investments with anticipated cash flow requirements. The City’s surplus portfolio will not be directly invested in securities that mature more than five years from the date of purchase. Reserve funds of bond or COP issues may be invested in instruments exceeding the five years in accordance with bond documents adopted by Council (maturity of such investments should coincide as nearly as practicable with expected use of funds).
SECTION 13. Internal Control
The City Treasurer shall provide for an annual review by an external independent auditor. This review will provide internal control by assuring compliance with the City’s investment policies and procedures.
SECTION 14. Investment Oversight Committee
There is hereby created an Investment Oversight Committee consisting of the City Manager, City Treasurer, City Attorney, one rotating Council member, and the Mayor.
Members of the Committee shall serve without additional compensation and shall meet at least quarterly to determine general strategies and to monitor results. The Committee shall include in its deliberations such topics as portfolio diversification, maturity structure, potential risks to City funds, authorized depositories, brokers and dealers, the target rate of return on investments, and such other topics as it may determine or as may be directed by the City Council. Any two members of the
Committee may request a special meeting. Four members shall constitute a quorum. The Committee shall establish its own rules of procedure. Minutes will be prepared for all Investment Committee meetings.
SECTION 15. Performance Standards
The City's investment portfolio shall be maintained to obtain a market average rate of return during various economic cycles. The rate of return will consider the City's constraints on investment risk and the City’s cash flow needs. The City's investment strategy is active. Given this strategy, the criteria applied by the City Treasurer to Resolution No. CC 2022-008
determine whether market yields are being achieved shall be the six-month United States Treasury Bill rate.
SECTION 16. Reporting
The City Treasurer shall prepare and present a monthly report to the City Manager and the City Council. This report shall be provided for all City and Successor Agency to the Community Redevelopment Agency pooled investments, as well as for Certificates of Participation, Revenue Bonds, Tax Allocation Bonds, Assessment Districts and Community Facilities District accounts that are managed by outside Fiscal Agents. The report shall contain the following information.
16.1 Cash receipts, disbursements and balances in total.
16.2 A summary of the portfolio at month end.
16.3 Information regarding interest earnings.
16.4 Reconciliation of cash disbursements.
16.5 A statement that provides the source of the market value presented.
16.6 A statement of compliance with investment policy, including a schedule of any transactions or holdings, which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution.
16.7 A statement of the City’s ability to meet its expenditure requirements for the next six months.
16.8 Each quarter a supplement to the monthly report shall be prepared which details the following information for all City and Successor Agency to the Community Redevelopment Agency pooled investments under the management of the City. A listing of cost and market value of the portfolio.
A listing of individual investment transactions during the month as required by Government Code section 53607.
A listing showing par value, cost and accurate and complete market value of each investment type of investment, issuer, interest rate, maturity date and the weighted average maturity.
SECTION 17. Investment Policy Review
In addition to the reports described in Section 16, the City Treasurer must submit annually to the City Council, and to the Investment Oversight Committee, a statement of investment policy. This statement must be reviewed by the Investment Oversight Resolution No. CC 2022-008
Committee and considered by the City Council at a public meeting. Any change in the City’s investment policy must also be considered by the City Council at a public meeting.
SECTION 18. Repeal
Resolution No. CC 2021-029, adopted on April 6, 2021, is hereby repealed in its entirety.
SECTION 19. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED and ADOPTED this 12th day of January 2022. _________________________________
Approved as to form: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher Beck Shanae S. Smith, City Clerk
City Attorney
I, Shanae Smith, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 12 th day of January 2022 by the following roll call vote:
AYES: ___________________________________________________________ NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date: ___________________________ _____________________________ Shanae S. Smith, City Clerk
GLOSSARY
AGENCIES: Federal agency securities.
ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of Palmdale. It includes combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
ASKED: The price at which securities are offered.
BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BASIS POINT: A basis point equals one one-hundredth of 1% (.01%).
BID: The price offered for securities:
BOOK ENTRY SECURITIES: All U.S. Treasury and Federal Agencies are maintained on computerized records at the Federal Reserve now known as "wireable" securities.
BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.
CALIFORNIA ASSET MANAGEMENT PROGRAM: Pooled money from various California public agencies that invests in obligations of the United States Government and its agencies, high-quality, short-term debt obligations of U.S. companies and financial institutions. The Pool is a permitted investment for all local agencies under California Government Code Section 53601(p).
CDARS: The Certificate of Deposit Account Registry Service is an investment vehicle established to allow investing participants to have full federal insurance on deposits up to $50 million and to earn one interest rate per deposit. A deposit is placed with a network member institution that uses CDARS to place the deposit into several certificates of deposits issued by network banks. The maximum placed into each certificate of deposit by the network member institution is $250,000 to ensure full federal insurance by the FDIC.
COLLATERAL: Securities, evidence of deposit or other property that a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.
COMMERCIAL PAPER (CP): An unsecured promissory note with a fixed maturity no longer than 270 days. Public offerings are exempt from SEC registration. The largest issuers include General Motors Acceptance Corporation (GMAC), General Electric Capital Corporation (GECC) and other major corporations.
COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DEBENTURE: A bond secured only by the general credit of the issuer.
DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
FEDERAL AGENCY SECURITIES: Debt instruments issued by federal credit agencies; fully backed by the U.S. government guarantee but not by its full faith and credit.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters.
FEDERAL FUNDS: Non-interest-bearing deposits held by member banks at the Federal Reserve. Also used to denote "immediately available" funds in the clearing sense. "Fed Funds" also used to refer to these funds.
FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. The Federal Reserve through open-market operations currently pegs this rate.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.
FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): A U.S. Corporation and instrumentality of the U.S. government. Through its purchases of conventional mortgages, it provides liquidity to the mortgage markets, much like FNMA. FHLMC's securities are highly liquid and widely accepted. FHLMC assumes and guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages. The term pass-throughs are often used to describe Ginnie Maes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MEDIUM TERM CORPORATE NOTE: A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.
MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.
PORTFOLIO: Collection of securities held by an investor.
PRIME RATE: The rate at which banks lend to their best or "prime" customers. Also known as the "reference rate."
PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one which would be brought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which was segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this.
Dealers use RP extensively to finance their positions. Exception: When the Federal Reserve Bank is said to be doing RP, it is lending money that is increasing bank reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the banks' vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.
SEC RULE 15C3-1: See uniform net capital rule.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds. This date may be the same as the trade date or later.
TRADE DATE: The date on which a transaction is initiated or entered into by the buyer and seller.
TREASURY BILL: A non-interest bearing (discount) security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years.
TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of from one to ten years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities. This is one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
WHEN-ISSUED TRADES: Typically, there is a delay between the time a new bond is announced and sold, and the time when it is actually issued. During this interval, the security trades "wi", "when, as, and if issued."
YIELD: The rate of annual income returns on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
YIELD TO MATURITY: The rate of return yielded by a debt security held to maturity when both interest payments and the investor's capital gain or loss on the security are taken into account.
City Council Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE
FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 202 2-009, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE STATING THE
INVESTMENT POLICY FOR CITY CONTRIBUTIONS TO THE
RETIREE HEALTH REIMBURSEMENT ARRANGEMENT ( HRA)
PLAN AND THE RETIREE HEALTH PREMIUM SUPPLEMENT (HPS)
PLAN AND REPEALING RESOLUTION NO. CC 2021-030.
ISSUE
Adopt Resolution No. C C 2022-009, A Resolution of the City Council of the City of Palmdale stating the City’s Investment policy for City contributions to the Retiree H RA and the Retiree HPS Plan and repealing Resolution No. CC 2021-030.
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. CC 202 2-009 Investment Policy for City Contributions to the Retiree HRA Plan and the Retiree HPS Plan and repeal Resolution No. CC 2021-030.
BACKGROUND
The City Council adopted Reso lution No. CC 202 1-030 on April 6 , 202 1, stating the Investment Policy for City contributions to the Retiree HRA and Retiree HPS Plan . The City reviews the Retiree Investment Policy annually and makes changes where necessary.
DISCUSSION
There are no changes to the Investment Policy, which currently conforms to California Government Codes, however, staff seeks council approval of the policy annually whether changes exist or not per California Government Code 53607, where it states that the code provides the authority for the legislative body of the local agency to invest the funds of the local agency, or to delegate the full responsibility to the treasurer of the local agency for a one-year period.
Report to Mayor and City Council
Re: A Resolution of the City Council of the City of Palmdale Stating the Investment Policy for City Contributions to the Retiree HRA Plan and the Retiree HPS Plan and Repealing Resolution No. CC 2021-030.
January 12, 2022
FISCAL IMPACT
There is no fiscal impact associated with this action.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
B. Establish healthy reserves for ongoing replacement and repair of capital while stabilizing the annual spending.
D. Pursue alternative financing opportunities for continued infrastructure improvements and quality community programs.
Prepared by: Willy Galindo
Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, City Manager
Approved as to form: Christopher Beck, City Attorney
ATTACHMENTS
Resolution No. CC 2022-009
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
STATING THE INVESTMENT POLICY FOR CITY CONTRIBUTIONS TO
THE RETIREE HEALTH REIMBURSEMENT ARRANGEMENT (HRA)
PLAN AND THE RETIREE HEALTH PREMIUM SUPPLEMENT (HPS)
PLAN AND REPEALING RESOLUTION NO. CC 2021-030.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. Purpose
This Resolution states the City’s investment policy for contributions and earnings accumulated under the Retiree HRA Plan and the Retiree HPS Plan Trusts, which have been adopted by the City Council of the City of Palmdale to assist in meeting applicable funding requirements for the future payment of other post-employment benefit obligations (generally referred to as “OPEB Liability”). The Investment Policy Statement is intended to provide guidelines to the City Treasurer and the authorized Investment Advisor for the prudent investment of the City’s Retiree HRA and HPS Plan contributions and earnings.
This Investment Policy Statement shall be consistent with the governing law, including the Internal Revenue Code of 1986 as amended from time to time (the “Code”), applicable provisions of Governmental Accounting Standards Board Statement Nos. 43 and 45, California laws, including applicable provisions of the California Government Code and City ordinances. A Glossary of investment terms is provided at the end of the resolution for reference.
SECTION 2. Scope
This investment policy applies to the investment of all cash and various funds of the City as identified in the adopted budget document for the purpose of funding the City OPEB Liability.
2.1 Funding sources for this purpose will include the General Fund, Successor Agency to the Community Redevelopment Agency of the City of Palmdale Funds, and Special Revenue Funds through which participants are financed.
2.2 Participant GROUPS 1, 2, and 3 are defined in the Retiree HRS and Retiree HPS Plan documents.
2.3 Investment strategies for this purpose are as follows:
a) Participant directed investment portfolio choices (age-based custom portfolio or self-directed alternative) – This investment strategy for Resolution No. CC 2022-009
contributions and earnings applies to the Retiree HRA Plan Trust and encompasses Group 2 Employees that elect the defined contribution option and Group 3 Employees. Employees in these Groups must have met the age and years of service requirements for vesting purposes. b) Plan Sponsor directed portfolio using a 5-year Treasury benchmark – This investment strategy for contributions and earnings applies to the Retiree HRA Plan Trust and encompasses Group 2 Employees that elect the defined contribution option and Group 3 Employees. Employees in these Groups subject to this investment strategy have not yet met the age and years of service requirements for vesting purposes.
c) Plan Sponsor directed long-term diversified portfolio – This investment strategy for contributions and earnings applies to the Retiree HPS Plan Trust and encompasses eligible Group 1 Retirees and eligible Group 2 Employees that elected the defined benefit option.
SECTION 3. Prudence
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
3.1 Governing bodies of local agencies, or persons authorized to make investment decisions on behalf of the agency, are trustees, and therefore fiduciaries subject to the prudent investor standard. The trustee is required to consider the general economic conditions and the anticipated needs of the agency when investing, reinvesting, purchasing, acquiring, exchanging, and selling or managing public funds.
3.2 The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.
SECTION 4. Objectives
The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City Treasurer and authorized Investment Advisor maintain a diversified portfolio to accomplish the primary objectives of safety, liquidity, and yield (in that order of priority).
4.1 Safety: The safety/risk associated with an investment refers to the potential loss of principal, accrued interest or a combination of these. The City seeks to mitigate credit risk by continual monitoring of financial institutions with which it will do business and by careful scrutiny of the credit worthiness of the investment instruments as well as Resolution No. CC 2022-009
the institutions. Such resources as Moody’s Investor, Standard & Poor’s and Fitch rating services are utilized for this review. The City seeks to mitigate rate risk through diversification of instruments as well as maturities.
4.2 Liquidity: The portfolio will be structured with sufficient liquidity to allow the City/Agency to meet all anticipated cash requirements. This will be accomplished through matching maturities to expected cash needs and AAA/Aaa rated money market funds with immediate withdrawal provision.
4.3 Yield: A competitive market rate of return is the third objective of the investment program after the fundamental requirements of safety and liquidity have been met.
SECTION 5. Delegation of Authority
Notwithstanding Section 53601 or 53635, the governing body of a local agency may invest funds designated for the payment of retiree health benefits in any form or type of investment deemed prudent by the governing body pursuant to Section 53622.
5.1 City Council: By adoption of this policy, the City Council has authorized the City Treasurer and the authorized Investment Advisor to invest Retiree HRA and HPS Plan contributions and earnings in accordance with California Government Code Section 53622.
5.2 City Treasurer: The execution of investment transactions on a daily basis will be conducted by the authorized Investment Advisor under the direction of the City Treasurer. The City Treasurer has established a system of controls and a segregation of responsibilities of investment functions to assure maintenance of internal control over the investment function.
5.2 The City Treasurer retains the authority to amend the Investment Policy, Guidelines, and Procedures at any time in order to carry out the duties as chief investment officer for the City. Notice of any such required amendment will be given to the Investment Oversight Committee and the City Council.
SECTION 6. Ethics and Conflicts of Interest
Employees and authorized persons involved in the investment of City funds shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair, or appear to impair, their ability to make impartial investment decisions. The City Treasurer shall comply with the reporting requirements of the Political Reform Act of 1974 regarding disclosure of material financial interests, and shall file an annual Statement of Economic Interests.
SECTION 7. Authorized Financial Dealers and Institutions
7.1 The City shall transact business only with nationally or state-chartered banks and licensed investment securities dealers. The City Treasurer shall maintain a listing of financial institutions authorized to provide investment services to the City.
Resolution No. CC 2022-009
7.2 Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City.
7.3 The City Treasurer, the authorized Investment Advisor, and the Investment Oversight Committee shall obtain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives and can provide written agreements to abide by the conditions set forth in the City of Palmdale Investment Policy. Investment accounts with all financial institutions shall be standard non-discretionary accounts and may not be margin accounts.
7.4 The signatures of two individuals shall be required for the opening and closing of any bank account and broker account (the City Treasurer or City Manager, and the Mayor or Mayor Pro Tem). The Accounting Officer, who is independent of the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shall provide this list of accounts to the City independent auditor.
SECTION 8. Authorized and Suitable Investments for Retiree HRA and HPS Plan Contributions and Earnings
California Government Code Section 53622 defines eligible securities for the investment of retiree health benefits. Retiree HRA and HPS Plan contributions and earnings of the Trusts will be invested in compliance with this statute and as further limited by this Investment Policy.
8.1 U.S. Government: United States Treasury Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. The maturity on these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.
8.2 U.S. Government: United States Federal Agency Securities are backed by the implied support of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. The maturity on these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.
8.3 Bankers Acceptances: Bills of exchange or time drafts drawn on and accepted by commercial banks, which are eligible for purchase by the Federal Reserve System, are known as banker’s acceptances. Purchases of these instruments may not exceed 180 bankers days maturity. A maximum of 2 percent may be invested in the bankers acceptances of any one commercial bank.
8.4 Certificates of Deposit (CDs): Certificates of deposit or “time deposits” of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or Resolution No. CC 2022-009
collateral of at least 150 percent if mortgage-backed securities. Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 30 percent of the portfolio and to a maximum of 15 percent deposited in any one institution.
In addition, time deposits shall be placed in institutions meeting all capital requirements and rated “AA” or higher by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch) for any deposits over $250,000.
8.5 Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53622. A maximum of 20 percent of the portfolio may be so invested in any individual fund.
8.6 Ineligible Investments: Investments not described herein, including but not limited to common stocks and financial futures contracts and options, are prohibited in this fund. Additionally, the City Treasurer shall not invest in reverse floaters, range notes, or interest only strips that are derived from a pool of mortgages, nor may the City Treasurer invest in any security that could result in zero interest accrued if held to maturity.
SECTION 9. Diversification
In an effort to reduce portfolio risk while attaining market average rates, type and institution will suitably diversify the Trust portfolio.
9.1 Security Type and Institution: With the exception of U.S. Treasury securities and U.S. Federal Agency Securities, no more than 50 percent of the total portfolio will be invested in a single security type and no more than 15 percent with a single financial institution. Investments are further limited by specific language relating to each investment type as stated in Section 8 of this Policy.
9.2 Maximum Maturities: To the extent possible, the City Treasurer and the authorized Investment Advisor will attempt to match investments with anticipated cash flow requirements. The Trusts’ portfolio will not be directly invested in securities that mature more than five years from the date of purchase.
9.3 Diversification Parameters:
Investment Strategy Cash Fixed income* Domestic Equities Foreign Equities Participant Directed – Self Directed Participant Driven Allocation Participant Directed – Age Based Allocation determined via actuarial age-based algorithm Plan Sponsor Directed – 5 Yr Treasury 0%-
100% 0%-100% 0%-20% 0%-10%
Plan Sponsor Directed – LT Portfolio 0%-50% 40%-60% 40%-60% 5%-20% *See Section 8 for specific fixed income category parameters Resolution No. CC 2022-009
Domestic Equity Asset Class
Parameters Allocation
Large Cap 20%-40%
Mid Cap 10%-30%
Small Cap 5%-20%
SECTION 10. Internal Control
The City Treasurer shall provide for an annual review by an external independent auditor. This review will provide internal control by assuring compliance with the City’s investment policies and procedures.
SECTION 11. Investment Oversight Committee
There is hereby created an Investment Oversight Committee consisting of the City Manager, City Treasurer, City Attorney, one rotating Council member, and the Mayor.
Members of the Committee shall serve without additional compensation and shall meet at least quarterly to determine general strategies and to monitor results. The Committee shall include in its deliberations such topics as portfolio diversification, maturity structure, potential risks to City funds, authorized depositories, brokers and dealers, the target rate of return on investments, and such other topics as it may determine or as may be directed by the City Council Board. Any two members of the Committee may request a special meeting. Four members shall constitute a quorum. The Committee shall establish its own rules of procedure. Minutes will be prepared for all Investment Committee meetings.
SECTION 12. Performance Standards
12.1 Mutual Funds & Separate Accounts: In populating its recommended Managed Portfolio(s), the Investment Consultant can make recommendations from publicly traded mutual funds, separate accounts, and bank collective trust funds subject to the following limitations:
d) Active and Passive (Index) Investment Management will be used together. e) Minimum Investment Option Age will be 3 Years and Minimum Management Tenure (Asset Class Experience) will be 3 Years.
f) Minimum assets under management must be equal to or greater than $100 Million.
g) Published Expense Ratios must be equal to or less than 125% of peer group.
12.2 Managed Portfolio Performance Metrics: The Managed Portfolio(s) point specific return benchmark will be the S&P 500 Index and the Barclays Aggregate U.S.
Bond Index combined to create a portfolio of equivalent allocation to the Managed Portfolio being measured.
Resolution No. CC 2022-009
12.3 Fixed Income & Structured Product Performance Metrics: To the extent that they are used in this plan’s portfolio, individual fixed income securities and/or structured products shall be monitored against mutual fund data related to intermediate bond peer group performance.
12.4 Mutual Fund & Separate Account Performance Metrics:
a) Investment out performance, over rolling periods of time, compared to peer group: One Year, Three Years, and Five Years – 50% of the time. b) Point specific investment performance relative to peer group: Percentile Rank for One Year, Three Years, and Five Years – 50% or greater. c) Point specific investment performance relative to specific asset class index over a five-year period.
d) Style Consistency will be reported as “Pass” or “Fail.” The allowable period of deviation will be two quarters.
e) Sharpe Ratio and Alpha will be equal to or greater than that of peer group.
Standard Deviation will not be applicable.
SECTION 13. Watchlist Review
13.1 While all of the Performance Metrics For Quarterly Investment Review are relevant to the subject of a Watchlist, none of them alone or in combination with others absolutely requires putting an Investment Option on Watchlist. With that caveat, the general chronology of this Investment Policy Statement’s Watchlist shall be:
Quarter Quarter Following
Formally putting an Investment Option
on Watchlist 1st
Review Watchlist Status 2nd 3rd 4th
Review Investment Option Alternatives 2nd 3rd 4th Select Investment Option Replacement 2nd 3rd 4th
13.2 An Investment Option can be removed from Watchlist status for one of three reasons:
a) The Performance Metrics For Quarterly Investment Review of an Investment Option change so that it meets the Performance Metrics; b) The Investment Committee understands why the Investment Option is not meeting a stated Performance Metric and is comfortable that the Investment Option is still meeting the objectives for which it was chosen; or c) The Investment Committee replaces the Investment Option.
SECTION 14. Reporting
The authorized Investment Advisor shall prepare on a quarterly basis reports that highlight the current portfolio allocation, time-weighted performance and any transactions Resolution No. CC 2022-009
that occurred during the quarter. The advisor will also prepare a quarterly fiduciary review packet that analyzes the plan’s current investments to its investment policy statement.
The plan’s trust provider will also provide monthly trust reports that outline the plan’s asset allocation and any transactions that occurred during the month.
SECTION 15. Investment Policy Review
The City Treasurer must submit annually to the City Council, and to the Investment Oversight Committee, a statement of investment policy. This statement must be reviewed by the Investment Oversight Committee and considered by the City Council at a public meeting. Any change in the City’s investment policy must also be considered by the City Council at a public meeting.
SECTION 16. Repeal
Resolution No. CC 2021-030, adopted on April 6, 2021, is hereby repealed in its entirety.
SECTION 17. The City Clerk shall certify to the adoption of this resolution.
Resolution No. CC 2022-009
PASSED, APPROVED and ADOPTED this 12th day of January 2022. _________________________________
Approved as to form: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher L. Beck Shanae S. Smith, City Clerk
City Attorney
I, Shanae S. Smith, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 12 th day of January 2022 by the following roll call vote:
AYES:__________________________________________________________ NOES:__________________________________________________________ ABSTAIN:____________________ABSENT: ___________________________ Date: ___________________________ ___________________________ Shanae S. Smith, City Clerk
GLOSSARY
AGENCIES: Federal agency securities.
ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of Palmdale. It includes combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.
ASKED: The price at which securities are offered.
BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BASIS POINT: A basis point equals one one-hundredth of 1% (.01%).
BID: The price offered for securities:
BOOK ENTRY SECURITIES: All U.S. Treasury and Federal Agencies are maintained on computerized records at the Federal Reserve now known as "wireable" securities.
BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.
COLLATERAL: Securities, evidence of deposit or other property that a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.
COMMERCIAL PAPER (CP): An unsecured promissory note with a fixed maturity no longer than 270 days. Public offerings are exempt from SEC registration. The largest issuers include General Motors Acceptance Corporation (GMAC), General Electric Capital Corporation (GECC) and other major corporations.
COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DEBENTURE: A bond secured only by the general credit of the issuer.
DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters.
FEDERAL FUNDS: Non-interest bearing deposits held by member banks at the Federal Reserve. Also used to denote "immediately available" funds in the clearing sense. "Fed Funds" also used to refer to these funds.
FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. The Federal Reserve through open-market operations currently pegs this rate.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.
FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): A U.S. Corporation and instrumentality of the U.S. government. Through its purchases of conventional mortgages, it provides liquidity to the mortgage markets, much like FNMA. FHLMC's securities are highly liquid and widely accepted. FHLMC assumes and guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.
FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. GNMA securities are backed by FHA, VA or FMHM mortgages. The term pass-throughs are often used to describe Ginnie Mae’s.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.
PORTFOLIO: Collection of securities held by an investor.
PRIME RATE: The rate at which banks lend to their best or "prime" customers. Also known as the "reference rate."
PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one which would be brought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.
QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which was segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this.
Dealers use RP extensively to finance their positions. Exception: When the Federal Reserve Bank is said to be doing RP, it is lending money that is increasing bank reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the banks' vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.
SEC RULE 15C3-1: See uniform net capital rule.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds. This date may be the same as the trade date or later.
TRADE DATE: The date on which a transaction is initiated or entered into by the buyer and seller.
TREASURY BILL: A non-interest bearing (discount) security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years.
TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of from one to ten years.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities. This is one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
WHEN-ISSUED TRADES: Typically, there is a delay between the time a new bond is announced and sold, and the time when it is actually issued. During this interval, the security trades "wi", "when, as, and if issued."
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
YIELD TO MATURITY: The rate of return yielded by a debt security held to maturity when both interest payments and the investor's capital gain or loss on the security are taken into account.
Successor Agency
Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE CHAIR AND DIRECTORS
FROM: CITY MANAGER’S OFFICE - FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. SA 202 2-001, A RESOLUTION OF THE
SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALMDALE APPROVING THE
ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1, 202 2
THROUGH JUNE 30, 2023 (ADMINISTRATIVE BUDGET 22-23).
ISSUE
Adopt Resolution No. SA 202 2-001 a Resolut ion of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale approving the Administrative Budget for the Period of July 1, 202 2 through June 30, 2023 (Administrative Budget 22- 23).
RECOMMENDATION
Staff recommends that the Successor Agency to the Community Redevelopment Agency of the City of Palmdale adopt Resolution No. SA 2022-001 approving the Administrative Budget for the Period of July 1, 2022 through June 30, 2023 (Administrative Budget 22 - 23).
BACKGROUND
Assembly Bill 1X 26 (AB 26) was signed by the Governor on June 28, 2011 and upheld as constitutional by the California Supreme Court. On June 27, 2012, the Governor signed Assembly Bill 1484 (AB 1484). AB 26 and AB 1484 (together the Dissolution Bills) made sweeping changes to California Redevelopment Law eliminating redevelopment agencies statewide, establishing successor agencies, and requiring the successor agencies to pay, perform and enforce the enf orceable obligations of the former redevelopment agencies and to wind down the affairs of the former redevelopment agencies.
Section 34177(j) of the Dissolution Bills requires the Successor Agency to prepare an Administrative Budget annually and submit it to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for approval.
Report to Chair and Directors of the Successor Agency
Re: Adopt Resolution No. SA 2022-001 Authorizing the Administrative Budget 22-23 January 12, 2022
Section 34177(k) of the Dissolution Bills further requires the Successor Agency to provide the Los Angeles County Auditor-Controller the administrative cost estimates from its approved Administrative Budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund.
Health & Safety Code Section 34171(b)(3) states that commencing July 1, 2016, the administrative cost allowance shall be up to 3 percent of the actual property tax distributed to the successor agency by the county auditor-controller in the preceding fiscal year for payment of approved enforceable obligations, reduced by the successor agency’s administrative cost allowance and loan repayments made to the city pursuant to Section 34191.4(b) during the preceding fiscal year, subject to a minimum of $250,000, unless such amount is reduced by the Oversight Board or by agreement between the successor agency and the State Department of Finance (“Department of Finance”). Staff has estimated this amount and allocated it to various Successor Agency costs as detailed in Exhibit A to Resolution No. SA 2022-001.
DISCUSSION
The attached Resolution No. SA 2022-001 seeks the Successor Agency’s approval of the Administrative Budget and their authorization to i) forward the Administrative Budget to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its approval, and ii) forward the information required by Section 34177(k) to the Los Angeles County Auditor Controller, and iii) take any and all other actions and execute any and all such other documents as are necessary, convenient or appropriate to comply with the Dissolution Bills and to effectuate the intent of this Resolution on behalf of the Successor Agency.
FISCAL IMPACT
The Administrative Budget for the period of July 1, 2022 through June 30, 2023 totals $306,785. These funds will be included in various line items in Program 20 of Fund 460 in the fiscal year 2022-23 budget and are included on the Recognized Obligation Payment Schedule (ROPS). These funds will be used to reimburse the City for its staff hours utilized to administer the operations of Successor Agency.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
A. Manage resources, costs and liabilities to ensure the City’s long-term fiscal health.
Prepared by: Willy Galindo, Senior Financial Analyst
Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, Executive Director
Approved as to form: Christopher Beck, General Counsel
Report to Chair and Directors of the Successor Agency
Re: Adopt Resolution No. SA 2022-001 Authorizing the Administrative Budget 22-23 January 12, 2022
ATTACHMENTS
1. Resolution No. SA 2022-001
2. Exhibit A-Administrative Budget
SUCCESSOR AGENCY
TO THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. SA 2022-001
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE
APPROVING THE ADMINISTRATIVE BUDGET FOR THE PERIOD OF
JULY 1, 2022 THROUGH JUNE 30, 2023 (ADMINISTRATIVE BUDGET 22-23)
WHEREAS, The Community Redevelopment Agency of the City of Palmdale (“Redevelopment Agency”) was a redevelopment agency in the City of Palmdale (“City”), duly created pursuant to the California Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (“Redevelopment Law”); and
WHEREAS, The City Council has adopted redevelopment plans for Palmdale’s redevelopment project areas, and from time to time, the City Council has amended such redevelopment plans; and
WHEREAS, The Redevelopment Agency was responsible for the administration of redevelopment activities within the City; and WHEREAS, Assembly Bill 1X 26 (“AB 26”) was signed by the Governor on June 28, 2011 and upheld to be constitutional by the California Supreme Court on December 29, 2011; and
WHEREAS, AB 26 made certain changes to the California Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code), including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) (“Part 1.85”) to Division 24 of the California Health and Safety Code (“Health and Safety Code”); and WHEREAS, On February 1, 2012, as a result of the Supreme Court’s decision, all California redevelopment agencies were dissolved, successor agencies were established as successor agencies to the former redevelopment agencies pursuant to Health and Safety Code Section 34173, and successor agencies are tasked with paying, performing and enforcing the enforceable obligations of the former redevelopment agencies and winding down the affairs of the former redevelopment agencies; and
WHEREAS, On June 27, 2012 the Governor of California signed Assembly Bill 1484 (“AB 1484”) into law, making several substantive and technical amendments to AB 26 (AB 26 and AB 1484 together referred to as the “Dissolution Bills”); and
WHEREAS, On January 4, 2012 the City Council adopted Resolution No.
CC 2012-002 declaring itself as the Successor Agency to the Community Resolution No. SA 2022-002
Redevelopment Agency of the City of Palmdale (“Successor Agency”) upon the dissolution of the Redevelopment Agency; and
WHEREAS, On April 4, 2012 the City Council, acting in its capacity as the Successor Agency, adopted Resolution No. CC 2012-041 SA naming itself the “Successor Agency to the Community Redevelopment Agency of the City of Palmdale”, the sole name by which it will exercise its powers and fulfill its duties pursuant to Part 1.85 of AB 26, and establishing itself as a separate legal entity with rules and regulations that will apply to the governance and operations of the Successor Agency; and
WHEREAS, pursuant to Health and Safety Code Section 34179 (q), commencing on and after July 1, 2018, the County of Los Angeles, where more than 40 oversight boards were created by the Dissolution Act, shall have five consolidated oversight boards each encompassing the five supervisorial districts; and WHEREAS, the Fifth Supervisorial District Consolidated Oversight Board ("Fifth District Consolidated Oversight Board") has jurisdiction over the Successor Agency of the Former Redevelopment Agency to the City of Palmdale; and
WHEREAS, the Fifth District Consolidated Oversight Board held a regular/special meeting on January 23, 2020; and
WHEREAS, Health and Safety Code Section 34177(j) (“Section 34177(j)”) requires the Successor Agency to prepare an administrative budget for the period July 1, 2022 through June 30, 2023 and submit the administrative budget to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for approval. The administrative budget shall include all of the following: (i) estimated amounts for Successor Agency administrative costs for the upcoming annual fiscal period; (ii) proposed sources of payment for Successor Agency administrative costs; and (iii) proposals for arrangements for administrative and operations services provided by the City or other entity; and
WHEREAS, Health and Safety Code Section 34177(k) (“Section 34177(k)”) requires the Successor Agency to provide to the Los Angeles County Auditor- Controller for the period July 1, 2022 through June 30, 2023 the administrative cost estimates from its approved administrative budget that are to be paid from property tax revenues (i.e. former tax increment revenues) deposited in the County’s Redevelopment Property Tax Trust Fund established for the Successor Agency; and WHEREAS, Health & Safety Code Section 34179.7 (o) (1), requires the Successor Agency to prepare a forward looking, annual Recognized Obligation Payment Schedule (ROPS) listing the enforceable obligations of the former Redevelopment Agency that are due in the next annual period and submitting an oversight board approved annual ROPS to the Department of Finance and Auditor- Controller by February 1, 2022; and
WHEREAS, Health & Safety Code Section 34171(b)(3) states that, the Resolution No. SA 2022-002
administrative cost allowance shall be up to 3 percent of the actual property tax distributed to the successor agency by the county auditor-controller in the preceding fiscal year for payment of approved enforceable obligations, reduced by the successor agency’s administrative cost allowance and loan repayments made to the city pursuant to Section 34191.4(b) during the preceding fiscal year, subject to a minimum of $250,000, unless such amount is reduced by the Oversight Board or by agreement between the successor agency and the State Department of Finance (“Department of Finance”); and
WHEREAS, Staff of the Successor Agency seeks the Successor Agency’s approval of the administrative budget for the period of July 1, 2022 through June 30, 2023 (“Administrative Budget 22-23”), in the form attached to this Resolution as Exhibit A, and the Successor Agency’s authorization to submit the approved Administrative Budget 22-23 to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its approval and to forward the information required by Section 34177(k) to the Los Angeles County Auditor-Controller; and WHEREAS, All other legal prerequisites to the adoption of this Resolution have occurred.
NOW THEREFORE, BE IT RESOLVED, THE SUCCESSOR AGENCY TO THE
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. The Board of Directors hereby finds and determines that the foregoing recitals are true and correct.
SECTION 2. The adoption of this Resolution is not intended to and shall not constitute a waiver by the Successor Agency of any rights the Successor Agency may have to challenge the effectiveness and/or legality of all or any portion of the Dissolution Bills through administrative or judicial proceedings.
SECTION 3. The Successor Agency’s Administrative Budget 22-23 that is attached hereto as Exhibit A is hereby approved and adopted.
SECTION 4. The Executive Director, or designee, is hereby authorized and directed to: i) submit the approved Administrative Budget 22-23 to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its review and approval; and ii) submit to the Los Angeles County Auditor-Controller the administrative cost estimates from Administrative Budget 22-23 that are to be paid from property tax revenues deposited in the County’s Redevelopment Property Tax Trust Fund established for the Successor Agency; and iii) take any and all other actions and execute any and all such other documents as are necessary, convenient or appropriate to comply with the Dissolution Bills and to effectuate the intent of this Resolution on behalf of the Successor Agency.
SECTION 5. This Resolution shall take effect immediately upon its adoption.
SECTION 6. The Agency Secretary shall certify as to the adoption of this Resolution.
Resolution No. SA 2022-002
PASSED, APPROVED and ADOPTED this 12th day of January 2022. ______________________________
Approved as to form: Steven D. Hofbauer, Chair
ATTEST:
___________________________ ______________________________ Christopher Beck Shanae Smith, Agency Secretary
General Counsel
I, Shanae Smith, Agency Secretary of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the Successor Agency at a regular meeting of said Agency held on the 12th day of January 2022 by the following roll call vote:
AYES:
NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:
Shanae Smith, Agency Secretary
Exhibit B to Resolution No. SA 2022-001
Successor Agency to the Community Redevelopment Agency
of the City of Palmdale Administrative Budget
For the Period of July 1, 2022 through June 30, 2023
Successor
Agency
MUNIS Item Fund 460
701000 -
708000 Salaries & Benefits 190,244$
City Manager's Office Hours Rate
City Manager 35 507$ 17,750$
Assistant City Manager 50 406$ 20,281$
Finance Manager 70 237$ 16,613$
Senior Financial Analyst 110 184$ 20,203$
Senior Account Clerk 135 123$ 16,569$
City Attorney's Office
City Attorney 30 349$ 10,480$
Assistant City Attorney 45 296$ 13,308$
Senior Administrative Assistant 80 133$ 10,613$
City Clerk's Office -$
City Clerk 80 209$ 16,683$
Deputy City Clerk 120 133$ 15,919$
Economic Development
Director of Economic Development 50 248$ 12,395$
Economic Development Manager 55 209$ 11,470$
Senior Administrative Assistant 60 133$ 7,959$
721110 Cont Svc - Agency Attorney 20,000$
721960 Cont Svc-Professional Svcs 13,700$
722310 Cont Svc - Legal Advertising 4,500$
723410 Cont Svc-Landscape Maintenance 706$
722450 Cont Svc - Document Center & Copier Lease 636$
726500 Postage 300$
729100 Utilities - Water 300$
731000 Utilities - Gas 550$
731700 Utilities - Electric 19,000$
831101 Rent 37,500$
Total 287,436$
Administrative Allowance 306,785$
Excess Allowance to be used for potential overages 19,349$ Source of Funding:
Redevelopment Property Tax Trust Fund
Successor Agency
Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE CHAIR AND DIRECTORS
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. SA 202 2-002, A RESOLUTION OF THE
SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALMDALE APPROVING THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 2 2-23)
FOR THE PERIOD OF JULY 1, 2022 THROUGH JUNE 30, 2023.
ISSUE
Adopt Resolution No. SA 202 2-002 a Resolut ion of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale approving the Recognized Obligation Payment Schedule (ROPS 22-23) for the period of July 1, 2022 through June 30, 2023.
RECOMMENDATION
Staff recommends that the Successor Agency to the Community Redevelopment Agency of the City of Palmdale adopt Resolution No. SA 2022-002 approving the Recognized Obligation Payment Schedule (ROPS 22-23) for the period of July 1, 2022 through June 30, 2023.
BACKGROUND
Assembly Bill 1X 26 (AB 26) was signed by the Governor on June 28, 2011 and upheld as constitutional by the California Supreme Court. On June 27, 2012, the Governor signed Assembly Bill 1484 (AB 1484). AB 26 and AB 1484 (together the Dissolution Bills) made sweeping changes to California Redevelopment Law eliminating redevelopment agencies statewide, establishing successor agencies, and requiring the successor agencies to pay, perform and enforce the enf orceable obligations of the former redevelopment agencies and to wind down the affairs of the former redevelopment agencies.
Section 34177(l) of the Dissolution Bills requires the Successor Agency to prepare a Recognized Obligation Payment Schedule (ROPS) listing the enforceable obligations of the former Redevelopment Agency . Section 34177(l) further requires that (i) the ROPS shall be submitted to the county administrative officer, the Los Angeles County Auditor - Report to Chair and Directors of the Successor Agency
Re: Adopt Resolution No. SA 2022-002 Authorizing the ROPS 22-23 January 12, 2022
Controller (Auditor-Controller) and the State Department of Finance (Department of Finance) at the same time that the Successor Agency submits the ROPS to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for approval; (ii) the ROPS shall be submitted to and duly approved by the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board; (iii) the approved ROPS shall be posted on the Successor Agency’s website; and (iv) the approved ROPS shall be submitted to the Auditor Controller, the State Controller and the State Department of Finance.
Section 34180 of the Dissolution Bills (Section 34180) requires certain successor agency actions to be approved by the oversight board, including Section 34180(c) “Setting aside of amounts in reserves as required by indentures, trust indentures, or similar documents governing the issuance of outstanding redevelopment agency bonds.” The attached ROPS 22-23 details amounts in accordance with Section 34180(c).
The attached ROPS 22-23 also includes an enforceable obligation for the repayment of the Educational Revenue Augmentation Fund (“ERAF”) and Supplemental Educational Revenue Augmentation Fund (“SERAF”) loans borrowed from the former Redevelopment Agency’s Low and Moderate Income Housing Fund.
DISCUSSION
The attached Resolution No. SA 2022-002 seeks approval to the setting aside of funds as detailed in ROPS 22-23 in accordance with Section 34180(c) to comply with bond documents.
Resolution No. SA 2022-002 also seeks approval of ROPS 22-23, and authorization and direction for the Executive Director, or his designee, to: (i) submit the Successor Agency approved ROPS 22-23 to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its review and approval and to concurrently submit ROPS 22-23 to the county administrative officer, the Auditor-Controller and the Department of Finance; (ii) submit the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board approved ROPS 22-23 to the Auditor Controller, the State Controller, the Department of Finance and any and all other entities as necessary or appropriate; (iii) post the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board approved ROPS 22-23 on the City’s website; and (iv) take any and all other actions and execute any and all such other documents as are necessary, convenient or appropriate to comply with the Dissolution Bills, and to effectuate the intent of this Resolution on behalf of the Successor Agency.
Report to Chair and Directors of the Successor Agency
Re: Adopt Resolution No. SA 2022-002 Authorizing the ROPS 22-23 January 12, 2022
FISCAL IMPACT
The total payments estimated during the one-year period of ROPS 22-23 is $17,676,635, of which $10,845,582 is expected to be funded by Redevelopment Property Tax Trust Funds (RPTTF) to be received from the Los Angeles County Auditor Controller (including Administrative Cost Allowance), $6,653,981 is from reserve balance funds, and $177,072 is from other funds. Amounts are budgeted in various areas of the Successor Agency and Housing Successor Agency budgets.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
Prepared by: Willy Galindo, Senior Financial Analyst
Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, Executive Director
Approved as to form: Christopher Beck, General Counsel
ATTACHMENTS
1. Resolution No. SA 2022-002
2. ROPS 22-23 Successor Agency
SUCCESSOR AGENCY
TO THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. SA 2022-002
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 22-23) FOR THE PERIOD OF JULY 1, 2022 THROUGH JUNE 30, 2023.
WHEREAS, The Community Redevelopment Agency of the City of Palmdale (“Redevelopment Agency”) was a redevelopment agency in the City of Palmdale (“City”), duly created pursuant to the California Community Redevelopment Law (Part 1 (commencing with SECTION 33000) of Division 24 of the California Health and Safety Code) (“Redevelopment Law”); and
WHEREAS, The City Council has adopted redevelopment plans for Palmdale’s redevelopment project areas, and from time to time, the City Council has amended such redevelopment plans; and
WHEREAS, The Redevelopment Agency was responsible for the administration of redevelopment activities within the City; and
WHEREAS, Assembly Bill 1X 26 (“AB 26”) was signed by the Governor on June 28, 2011 and upheld to be constitutional by the California Supreme Court on December 29, 2011; and
WHEREAS, AB 26 made certain changes to the California Community Redevelopment Law (Part 1 (commencing with SECTION 33000) of Division 24 of the California Health and Safety Code), including adding Part 1.8 (commencing with SECTION 34161) and Part 1.85 (commencing with SECTION 34170) (“Part 1.85”) to Division 24 of the California Health and Safety Code (“Health and Safety Code”); and WHEREAS, On February 1, 2012, as a result of the Supreme Court’s decision, all California redevelopment agencies were dissolved, successor agencies were established as successor agencies to the former redevelopment agencies pursuant to Health and Safety Code SECTION 34173, and successor agencies are tasked with paying, performing and enforcing the enforceable obligations of the former redevelopment agencies and winding down the affairs of the former redevelopment agencies; and
WHEREAS, On June 27, 2012, the Governor of California signed Assembly Bill 1484 (“AB 1484”) into law, making several substantive and technical amendments to AB 26 (AB 26 and AB 1484 together referred to as the “Dissolution Bills”); and Resolution No. SA 2022-002
WHEREAS, On January 4, 2012, the City Council adopted Resolution No. CC 2012-002 declaring itself as the Successor Agency to the Community Redevelopment Agency of the City of Palmdale (“Successor Agency”) upon the dissolution of the Redevelopment Agency; and
WHEREAS, On April 4, 2012 the City Council, acting in its capacity as the Successor Agency, adopted Resolution No. CC 2012-041 SA naming itself the “Successor Agency to the Community Redevelopment Agency of the City of Palmdale”, the sole name by which it will exercise its powers and fulfill its duties pursuant to Part
1.85 of AB 26, and establishing itself as a separate legal entity with rules and regulations that will apply to the governance and operations of the Successor Agency; and
WHEREAS, pursuant to Health and Safety Code Section 34179 (q), commencing on and after July 1, 2018, the County of Los Angeles, where more than 40 oversight boards were created by the Dissolution Act, shall have five consolidated oversight boards each encompassing the five supervisorial districts; and WHEREAS, the Fifth Supervisorial District Consolidated Oversight Board ("Fifth District Consolidated Oversight Board") has jurisdiction over the Successor Agency of the Former Redevelopment Agency to the City of Palmdale; and
WHEREAS, the Fifth District Consolidated Oversight Board held a regular/special meeting on January 13, 2022; and
WHEREAS, Health & Safety Code SECTION 34177(l) (“SECTION 34177(l)”) requires the Successor Agency to prepare, a forward looking Recognized Obligation Payment Schedule (ROPS) listing the enforceable obligations of the former Redevelopment Agency that are due in the next annual period; and WHEREAS, SECTION 34177(l), as amended by AB 1484, also provides that (i) the ROPS shall be submitted to the county administrative officer, the Los Angeles County Auditor-Controller (“Auditor-Controller”) and the State Department of Finance (“Department of Finance”) at the same time that the Successor Agency submits the ROPS to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for approval; (ii) the ROPS shall be submitted to and duly approved by the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board; (iii) the approved ROPS shall be posted on the Successor Agency’s website; and (iv) the approved ROPS shall be submitted to the Auditor Controller, the State Controller and the State Department of Finance; and
WHEREAS, Health & Safety Code SECTION 34179.7 (o) (1), requires the Successor Agency to prepare a forward looking, annual Recognized Obligation Payment Schedule (ROPS) listing the enforceable obligations of the former Redevelopment Agency that are due in the next annual period and submitting an Resolution No. SA 2022-002
oversight board approved annual ROPS to the Department of Finance and Auditor- Controller by February 1, 2022; and
WHEREAS, Health and Safety Code SECTION 34183(a) provides that the Auditor-Controller disburse funds to successor agencies on June 1, 2022 and January 2, 2023 based on ROPS 22-23 in accordance with the prescribed order of priority and the Dissolution Bills require that such disbursements be made as and when necessary for the Successor Agency to repay and perform enforceable obligations when due; and WHEREAS, Health and Safety Code SECTION 34180 (“SECTION 34180”) requires certain successor agency actions to be approved by the oversight board, including SECTION 34180(c) “Setting aside of amounts in reserves as required by indentures, trust indentures, or similar documents governing the issuance of outstanding redevelopment agency bonds”; and
WHEREAS, the attached ROPS 22-23 details amounts in accordance with SECTION 34180(c); and
WHEREAS, SECTION 34171(d)(1)(G) of the Dissolution Act provides for the repayment, and deposit into the Low and Moderate Income Housing Asset Fund of the Authority, of funds that had been borrowed from the Redevelopment Agency’s Low and Moderate Income Housing Fund to make Educational Revenue Augmentation Fund (“ERAF”) and Supplemental Educational Revenue Augmentation Fund (“SERAF”) payments; and
WHEREAS, the Redevelopment Agency had borrowed money from its Low and Moderate Income Housing Fund for purposes of making ERAF and SERAF payments (“Loans”) and the Loans were included in the Housing Asset Transfer Form that was prepared by the Authority and submitted on August 1, 2012 to the California Department of Finance (“DOF”) as required by SECTION 34176(a)(2) of the Dissolution Act and on October 5, 2012, DOF notified the Authority that it did not object to the transfer of the Loans to the Authority; and
WHEREAS, an enforceable obligation is deemed to be created for the repayment of the ERAF & SERAF loans and shall be listed on the ROPS; and WHEREAS, the Successor Agency now desires to approve ROPS 22-23 that is attached hereto and incorporated herein by reference; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
Resolution No. SA 2022-002
NOW THEREFORE, BE IT RESOLVED, THE SUCCESSOR AGENCY TO THE
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. The Board of Directors hereby finds and determines that the foregoing recitals are true and correct.
SECTION 2. The Board of Directors hereby approves the setting aside of funds as detailed in ROPS 22-23 in accordance with SECTION 34180(c) to comply with bond documents.
SECTION 3. The adoption of this Resolution is not intended to and shall not constitute a waiver by the Successor Agency of any rights the Successor Agency may have to challenge the effectiveness and/or legality of all or any portion of the Dissolution Bills through administrative or judicial proceedings.
SECTION 4. The ROPS 22-23, that is attached hereto and incorporated by reference is hereby approved and adopted.
SECTION 5. The Executive Director, or designee, is hereby authorized and directed to make any and all non-substantive changes to the approved ROPS in order to conform to any changes or to address further guidance or direction from the Department of Finance, or to address any other new information, including but not limited to new report forms, and such revised ROPS shall be considered approved by the Successor Agency.
SECTION 6. The Executive Director, or designee, is hereby authorized and directed to: (i) submit the Successor Agency approved ROPS 21-22 to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its review and approval and to concurrently submit ROPS 21-22 to the county administrative officer, the Auditor-Controller and the Department of Finance; (ii) submit the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board approved ROPS 21-22 to the Auditor Controller, the State Controller, the Department of Finance and any and all other entities as necessary or appropriate; (iii) post the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board approved ROPS 21-22 on the City’s website; and (iv) take any and all other actions and execute any and all such other documents as are necessary, convenient or appropriate to comply with the Dissolution Bills, and to effectuate the intent of this Resolution on behalf of the Successor Agency.
SECTION 7. This Resolution shall take effect immediately upon its adoption.
SECTION 8. The Agency Secretary shall certify as to the adoption of this Resolution.
Resolution No. SA 2022-002
PASSED, APPROVED and ADOPTED this 12th day of January 2022. _________________________________
Approved as to form: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher Beck Shanae Smith, City Clerk
City Attorney
I, Shanae Smith, Agency Secretary of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the Successor Agency at a regular meeting of said Agency held on the 12th day of January 2022 by the following roll call vote:
AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT:___________________________ Date: ______________________________ _____________________________ Shanae Smith, Agency Secretary
Recognized Obligation Payment Schedule (ROPS 22-23) - Summary Filed for the July 1, 2022 through June 30, 2023 Period Successor Agency: Palmdale
County: Los Angeles
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
22-23A Total
(July -
December)
22-23B Total
(January -
June)
ROPS 22-23
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ 5,090,723 $ 1,740,330 $ 6,831,053 B Bond Proceeds - - -
C Reserve Balance 4,913,651 1,740,330 6,653,981
D Other Funds 177,072 - 177,072
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 4,533,243 $ 6,312,339 $ 10,845,582 F RPTTF 4,226,458 6,312,339 10,538,797
G Administrative RPTTF 306,785 - 306,785
H Current Period Enforceable Obligations (A+E) $ 9,623,966 $ 8,052,669 $ 17,676,635 Certification of Oversight Board Chairman:
Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date
Palmdale
Recognized Obligation Payment Schedule (ROPS 22-23) - ROPS Detail July 1, 2022 through June 30, 2023
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
22-23 Total
ROPS 22-23A (Jul - Dec)
22-23A
Total
ROPS 22-23B (Jan - Jun)
22-23B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
$106,850,909 $17,676,635 $- $4,913,651 $177,072 $4,226,458 $306,785 $9,623,966 $- $1,740,330 $- $6,312,339 $- $8,052,669 6 Loan from
Housing for
SERAF
SERAF/
ERAF
05/05/
2010
11/30/2036 Housing
Authority for
deposit into
Housing
Asset Fund
Statutory
Obligation FY
2009-10
SERAF -
Merged Proj
Area
Merge 2,720,491 N $250,000 - - - 250,000 - $250,000 - - - - - $- 7 Loan from
Housing for
SERAF
SERAF/
ERAF
03/02/
2011
02/28/2034 Housing
Authority for
deposit into
Housing
Asset Fund
Statutory
Obligation FY
2010-11
SERAF - Proj
Area No 1
PA 1 521,581 N $- - - - - - $- - - - - - $-
8 Loan from
Housing for
SERAF
SERAF/
ERAF
03/02/
2011
11/30/2036 Housing
Authority for
deposit into
Housing
Asset Fund
Statutory
Obligation FY
2010-11
SERAF -
Merged Proj
Area
Merge 1,867,705 N $- - - - - - $- - - - - - $-
13 2010 Tax Alloc
Ref
Notes($27.5M)
Bonds
Issued On or
Before 12/
31/10
12/23/
1998
03/01/2026 AC Warnack
Trust/
Shaughne
S. Warnack
Trust
Notes issued
for non-housing
projects
PA 1 11,372,462 N $2,732,661 - - 177,072 1,180,259 - $1,357,331 - 1,375,330 - - - $1,375,330 14 2010 Tax Alloc
Ref
Notes($27.5M)
Reserves 12/23/
1998
03/01/2026 AC Warnack
Trust
Bond
Covenants -
H&S Code Sec
34171(d)(1)(A)
PA 1 1,375,330 N $1,375,330 - - - 1,375,330 - $1,375,330 - - - - - $- 23 2002 Tax Alloc
Bonds ($5.3M)
Bonds
Issued On or
Before 12/
31/10
08/20/
2002
12/01/2032 US Bank Bonds issued
for non-housing
projects
Merge 10,475,000 N $970,000 - 970,000 - - - $970,000 - - - - - $- 24 2002 Tax Alloc
Bonds ($5.3M)
Reserves 08/20/
2002
12/01/2032 US Bank Bond
Covenants -
H&S Code Sec
34171(d)(1)(A)
Merge 975,000 N $975,000 - - - - - $- - - - 975,000 - $975,000 30 Bond
Administration
Fees
Fees 06/15/
1993
09/01/2034 US Bank Fiscal Agent/
Trustee fees on
Bond issues
Merge 148,000 N $11,300 - - - 7,300 - $7,300 - - - 4,000 - $4,000 32 Arbitrage
Calculation
Reports
Fees 07/16/
2002
09/01/2034 BondLogistix
LLC
Arbitrage
rebate calc
svcs
Merge 44,000 N $6,750 - - - 6,750 - $6,750 - - - - - $- 35 Bond
Disclosure
Fees 05/24/
2004
09/01/2034 NBS Disclosure
reporting
Merge 104,000 N $8,000 - - - 500 - $500 - - - 7,500 - $7,500
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
22-23 Total
ROPS 22-23A (Jul - Dec)
22-23A
Total
ROPS 22-23B (Jan - Jun)
22-23B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Reports
(A-0695)
services
37 Agency
Financial Audit
(A-2844)
Fees 07/01/
2009
09/01/2034 Eide Bailly Audit services -
annually
required by
bond
documents
H&S Code Sec
34171(d)(1)(A)
Merge 120,000 N $10,000 - - - 7,000 - $7,000 - - - 3,000 - $3,000 39 Prop Tax
Consulting
Svcs (A-3220) -
Merge
Fees 09/01/
2010
09/01/2034 HdL Coren
& Cone
Property Tax
Consulting
Services - data
required for
annual Bond
Disclosures
H&S Code Sec
34171(d)(1)(A)
Merge 120,000 N $10,500 - - - 5,250 - $5,250 - - - 5,250 - $5,250 50 DDA 3rd
Implementation
(A-0861)
OPA/DDA/
Construction
03/30/
1999
11/30/2036 Dillard's
(Mercantile
Operations
Inc)
Public
infrastructure
reimbursement
Merge - Y $- - - - - - $- - - - - - $-
59 Property
Assessments
Property
Maintenance
09/21/
1990
06/30/2022 AV Auto
Center
Lot Owners
Assoc.
Maintenance -
Costs of
maintaining
assets prior to
disposition,
allowable by
H&S Code Sec
34171(d)(1)(F).
PA 1 36,800 N $36,800 - - - 18,400 - $18,400 - - - 18,400 - $18,400 60 Property
Assessments
Property
Maintenance
03/31/
2004
06/30/2023 Fairway
Business
Pk-LOA
Lot Owners
Assoc.
Maintenance -
Costs of
maintaining
assets prior to
disposition,
allowable by
H&S Code Sec
34171(d)(1)(F).
PA 1 6,530 N $6,530 - - - 3,265 - $3,265 - - - 3,265 - $3,265 61 Property Costs-
Fencing
Property
Maintenance
07/01/
2022
06/30/2023 Andy Gump
Inc
Fencing -
Fairway
Business Park -
Costs of
maintaining
assets prior to
disposition,
allowable by
PA 1 1,450 N $1,450 - - - 725 - $725 - - - 725 - $725
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
22-23 Total
ROPS 22-23A (Jul - Dec)
22-23A
Total
ROPS 22-23B (Jan - Jun)
22-23B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
H&S Code Sec
34171(d)(1)(F).
62 Property
Assessments
Property
Maintenance
07/01/
2022
06/30/2023 COP -
Streetlight
Maint Dist
Streetlight
Maint. Dist.
Assessments -
Costs of
maintaining
assets prior to
disposition,
allowable by
H&S Code Sec
34171(d)(1)(F).
PA 1 2,860 N $2,860 - - - 1,430 - $1,430 - - - 1,430 - $1,430 63 Property
Assessments
Property
Maintenance
07/01/
2022
06/30/2023 COP-
Landscape
Dist Zone 2
Landscape
Maint. Dist.
Assessments -
Costs of
maintaining
assets prior to
disposition,
allowable by
H&S Code Sec
34171(d)(1)(F).
Merge 1,300 N $1,300 - - - 650 - $650 - - - 650 - $650
65 Property
Assessments/
Spec Taxes
Property
Maintenance
07/01/
2022
06/30/2023 CFD 05-1 Special Tax
Assessment -
CFD 05-1 -
Costs of
maintaining
assets prior to
disposition,
allowable by
H&S Code Sec
34171(d)(1)(F).
Merge 100,000 N $100,000 - - - 50,000 - $50,000 - - - 50,000 - $50,000 66 Property
Assessments -
PA 1
Property
Maintenance
07/01/
2021
06/30/2023 COP-Park
Maint & Rec
Impv Dist
Park Maint &
Rec Impv
Assessments -
Costs of
maintaining
assets prior to
disposition,
allowable by
H&S Code Sec
34171(d)(1)(F).
PA 1 80 N $80 - - - 40 - $40 - - - 40 - $40
68 Property
Assessments -
PA 1
Property
Maintenance
07/01/
2022
06/30/2023 AV Mosquito
& Vector
Control
Mosquito
Abatement
Assessments -
Costs of
maintaining
assets prior to
disposition,
allowable by
PA 1 20 N $20 - - - 10 - $10 - - - 10 - $10
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
22-23 Total
ROPS 22-23A (Jul - Dec)
22-23A
Total
ROPS 22-23B (Jan - Jun)
22-23B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
H&S Code Sec
34171(d)(1)(F).
76 DDA Transit
Vlg
Townhomes
(A-1977)
OPA/DDA/
Construction
07/10/
2007
12/31/2061 Palmdale
Transit
Village
Townhomes,
LLC
Transit Village
townhome
development
Housing 65,000 N $65,000 - - - - - $- - 65,000 - - - $65,000 80 DDA Transit
Vlg
Townhomes
(A-1977)
OPA/DDA/
Construction
07/10/
2007
12/31/2061 Palmdale
Transit
Village
Townhomes,
LLC
Reimbursement
to Developer of
Parks & Rec
Impact Fees
Housing 300,000 N $300,000 - - - - - $- - 300,000 - - - $300,000 156 Agreement for
Reimbursement
of City Services
Rendered
Admin Costs 05/09/
1975
11/30/2036 City of
Palmdale
Reimb City for
all costs
incurred by City
Officers and
employees in
rendering
services to the
Agency
commencing
March 24,
1975.
PA1/
Merge
- Y $- - - - - - $- - - - - - $-
157 Redevelopment
Impact Fee
Fees 10/13/
1983
11/30/2036 City of
Palmdale
Due to City of
Palmdale under
Ordinance No.
506 adopted by
City Council in
1983 and
called due by
the City by
Resolution No.
CC 2013-206.
Ordinance
legally provides
a funding
mechanism
requiring the
Agency be
charged an
impact fee of
4% of the
building value
of any new
construction
occurring within
redevelopment
project areas.
PA1/
Merge
- Y $- - - - - - $- - - - - - $-
160 Commission
charges
Property
Dispositions
07/01/
2021
06/30/2022 Various Costs of
commission
PA1/
Merge
- N $- - - - - - $- - - - - - $-
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
22-23 Total
ROPS 22-23A (Jul - Dec)
22-23A
Total
ROPS 22-23B (Jan - Jun)
22-23B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
relating to sale
of Successor
Agency land to
developers
161 Escrow
Services
Property
Dispositions
07/01/
2021
06/30/2022 Various Escrow Service
costs relating to
sale of
Successor
Agency land to
developers
PA1/
Merge
- N $- - - - - - $- - - - - - $-
162 Title Services Property
Dispositions
07/01/
2021
06/30/2022 Various Title Service
costs relating to
sale of
Successor
Agency land to
developers
PA1/
Merge
- N $- - - - - - $- - - - - - $-
163 Appraisal
Services
Property
Dispositions
07/01/
2022
06/30/2023 Various Appraisal
Service costs
relating to sale
of Successor
Agency land to
developers
PA1/
Merge
5,000 N $5,000 - - - 5,000 - $5,000 - - - - - $-
169 Housing Entity
Administrative
Cost Allowance
Admin Costs 07/01/
2015
06/30/2020 The Housing
Authority of
the City of
Palmdale
Housing Entity
Administrative
Cost Allowance
allowed by AB
471
PA1/
Merge
- Y $- - - - - - $- - - - - - $-
170 Agency
Adminstrative
Cost Allowance
Admin Costs 07/01/
2021
06/30/2022 City of
Palmdale
SA Overhead
and
Administrative
Costs
PA1/
Merge
3,271,000 N $306,785 - - - - 306,785 $306,785 - - - - - $- 175 Tax Allocation
Refunding
Bonds, 2016
Series A
Refunding
Bonds
Issued After
6/27/12
04/26/
2016
09/01/2034 US Bank Bonds issued
to refund 1998,
1999 and 2003
Bonds
PA1/
Merge
27,213,250 N $2,959,750 - 1,844,063 - 614,687 - $2,458,750 - - - 501,000 - $501,000 176 Tax Allocation
Refunding
Bonds, 2016
Series A
Reserves 04/26/
2016
09/01/2034 US Bank Reserve for
Next ROPS
Period Debt
Service per
Indenture
PA1/
Merge
1,868,250 N $1,868,250 - - - - - $- - - - 1,868,250 - $1,868,250 177 Tax Allocation
Refunding
Bonds, 2016
Series B
Refunding
Bonds
Issued After
6/27/12
06/23/
2016
09/01/2034 US Bank Bonds issued
to refund
2003C, 2003D,
2004A, 2004
Sub, 2005E,
2005F and
2009 Bonds
PA1/
Merge
42,006,306 N $3,543,775 - 2,099,588 - 699,862 - $2,799,450 - - - 744,325 - $744,325 178 Tax Allocation Reserves 06/23/ 09/01/2034 US Bank Reserve for PA1/ 2,129,494 N $2,129,494 - - - - - $- - - - 2,129,494 - $2,129,494
A B C D E F G H I J K L M N O P Q R S T U V W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
22-23 Total
ROPS 22-23A (Jul - Dec)
22-23A
Total
ROPS 22-23B (Jan - Jun)
22-23B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Refunding
Bonds, 2016
Series B
2016 Next ROPS
Period Debt
Service per
Indenture
Merge
Palmdale
Recognized Obligation Payment Schedule (ROPS 22-23) - Report of Cash Balances July 1, 2019 through June 30, 2020
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.
A B C D E F G H
ROPS 19-20 Cash Balances
(07/01/19 - 06/30/20)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.
Non-Admin
and Admin
1 Beginning Available Cash Balance (Actual 07/01/19)
RPTTF amount should exclude "A" period distribution
amount.
711,089 47 5,060,462 639,793 1,454,505
2 Revenue/Income (Actual 06/30/20)
RPTTF amount should tie to the ROPS 19-20 total
distribution from the County Auditor-Controller
14,940 2,101 223,029 10,023,070 Col F includes $45,957 commission and escrow costs on land sales funded from sale
proceeds
3 Expenditures for ROPS 19-20 Enforceable Obligations
(Actual 06/30/20)
2,127 4,695,462 262,176 11,056,935 Col F includes offsetting $45,957 commission and escrow costs on land sales funded from
sale proceeds
4 Retention of Available Cash Balance (Actual 06/30/20) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
726,029 21 365,000 423,574 290,725
5 ROPS 19-20 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 19-20 PPA
form submitted to the CAC
No entry required 129,915
6 Ending Actual Available Cash Balance (06/30/20)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $177,072 $- Col F applied to Item 13
Palmdale
Recognized Obligation Payment Schedule (ROPS 22-23) - Notes July 1, 2022 through June 30, 2023
Item # Notes/Comments
6 7
8 13 Item 14 22-23A Reserve used to pay debt service in 22-23B 14 Reserve in 22-23A used to pay debt service in 22-23B 23 24
30 32
35 37
39 50
59 60
61 62
63 65
66 68
76 Funded in a prior year and SA allowed to retain as a reserve for expenditure in 21-22B; not likely to be spent until 22-23 so included again as reserve in this ROPS 80 Funded in a prior year and SA allowed to retain as a reserve for expenditure in 21-22B; not likely to be spent until 22-23 so included again as reserve in this ROPS 156
157
160 Any SA properties still in escrow at 6/30/22- commission and other selling costs to be paid from escrow sale proceeds
161 Any SA properties still in escrow at 6/30/22- commission and other selling costs to be paid from escrow sale proceeds
162 Any SA properties still in escrow at 6/30/22- commission and other selling costs to be paid from escrow sale proceeds
Palmdale
Recognized Obligation Payment Schedule (ROPS 22-23) - Notes July 1, 2022 through June 30, 2023
Item # Notes/Comments
163 Any remaining SA properties in escrow at 6/30/22 - in the event one or more properties fall out of escrow, additional appraisals my be necessary
169
170
175
176
177
178
City Council Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2022-002, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE AUTHORIZING THE
SALE OF RIGHTS TO CERTAIN EXCESS WATER TO ANTELOPE
VALLEY-EAST KERN WATER AGENCY AND PALMDALE WATER
DISTRICT; AND ACTIONS RELATED THERETO
ISSUE
Adopt Resolution No. CC 2022-002, a Resolution of the City Council of the City of Palmdale authorizing the sale of rights to certain excess water to Antelope Valley-East Kern Water Agency and Palmdale Water District; and actions related thereto.
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. CC 2022-002 approving the sale of certain water rights to Antelope Valley -East Ke rn Water Agency and Palmdale Water District r elated to Community Facilities District No. 16 -1, and authorizing actions related thereto.
BACKGROUND
The City Council formed the City of Palmdale Community Facilities District No. 16 -1 (the “CFD”) for the purpose of financing certain water supply rights to be provided by the Antelope Valley-East Kern Water Agency (“AVEK”) for the benefit of 338 undevelope d single family residential lots in the Joshua Ranch development, and to provide funds for certain maintenance services related to a flood control facility related to the development.
In connection with the formation of the CFD, the City, AVEK, CV Communi ties, LLC and the then owners of the land in the CFD, Joshua Ranch 2 Inv, LLC and Joshua Ranch 3 Inv, LLC, entered into a Joint Community Facilities Agreement No. A-5329 dated June 1, 2016 (the “JCFA”). The JCFA provided for certain matters related to the formation of the CFD, the levy of special taxes on property in the CFD and the security for payment of the special taxes so levied, and the delivery and banking of the water arising from the water rights financed by the CFD.
The JCFA provided that any water available pursuant to the CFD-acquired water rights in any fiscal year prior to the year in which the planned 338 single family homes have been fully constructed and certificates of occupancy for all of those homes have been provided by the City, which water is in excess of that needed for the 338 homes, is to be made available by AVEK to the City (referred to in the JCFA as the “City Water Allocation”) for Report to Mayor and City Council
Re: Resolution No. CC 2022-002
January 12, 2022
the City’s use, or for water banking purposes of the City, and that the City has the right to use or sell any portion of the City Water Allocation in its sole discretion, and that the City is entitled to retain the proceeds of any water sold by it.
DISCUSSION
Under the JCFA, the City currently has the right to 564-acre feet of surface water in respect of the City Water Allocation. Due to the acute drought condition in the Antelope Valley, AVEK and Palmdale Water District (PWD) have proposed to split the purchase of the City Water Allocation. AVEK and PWD have each presented the City with a proposed Term Sheet providing the terms for the possible sale of some of the City Water Allocation, and the City Manager and the Director of Public Works have determined that the City has no current need for the available City Water Allocation, and they have reviewed the Term Sheets and have determined that it is in the best interests of the City to sell some of the City Water Allocation on the terms and as provided in the Term Sheets.
The accompanying resolution authorizes the City Manager to execute the Term Sheets, and City Staff to take all actions necessary to implement the transaction contemplated by the Term Sheets.
FISCAL IMPACT
If the sale of the water rights is approved by City Council and accomplished in accordance with the terms of the Terms Sheets with AVEK and PWD mentioned below, the City is expected to receive $341,784.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
D. Pursue alternative financing opportunities for continued infrastructure improvements and quality community programs.
Prepared by: Chuck Heffernan, P.E., Director of Public Works Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, City Manager
Approved as to form: Christopher Beck, City Attorney
ATTACHMENTS
1. Resolution No. CC 2022-002
2. AVEK 2020 Water Transfer Term Sheet
3. PWD 2020 Water Transfer Term Sheet
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
AUTHORIZING THE SALE OF RIGHTS TO CERTAIN EXCESS WATER
TO ANTELOPE VALLEY-EAST KERN WATER AGENCY AND
PALMDALE WATER DISTRICT; AND ACTIONS RELATED THERETO
WHEREAS, the City Council of the City of Palmdale (the “City”) has formed the City of Palmdale Community Facilities District No. 16-1 (Joshua Ranch Water Supply and Maintenance Services) (the “CFD”) for the purpose of financing certain water supply rights and services to be provided by the Antelope Valley-East Kern Water Agency (“AVEK”) for the benefit of property in the CFD and the City, and to provide funds for certain maintenance services related to a flood control facility; and WHEREAS, in connection with the formation of the CFD, the City, AVEK, CV Communities, LLC and the then owners of the land in the CFD, Joshua Ranch 2 Inv, LLC and Joshua Ranch 3 Inv, LLC, entered into a Joint Community Facilities Agreement (A-5329), dated as of June 1, 2016 (the “JCFA”), which JCFA provided for certain matters related to the formation of the CFD, the levy of special taxes on property in the CFD and the security for payment of the special taxes so levied, and the delivery and banking of the water arising from the water rights financed by the CFD; and
WHEREAS, the JCFA provided that any water available pursuant to the CFD- acquired water rights in any fiscal year prior to the year in which 338 single family residential dwelling units have been fully constructed in Joshua Ranch (referred to in the JCFA as the “Additional Units”) and certificates of occupancy for all of the Additional Units have been provided by the City, which water is in excess of that needed for the Additional Units, shall be made available by AVEK to the City (referred to in the JCFA as the “City Water Allocation”) for the City’s use, or for water banking purposes of the City, and that the City shall have the right to use or sell any portion of the City Water Allocation in its sole discretion, and that the City is entitled to retain the proceeds of any such water sold by it; and
WHEREAS, under the JCFA, the City currently has the right to 564-acre feet of surface water in respect of the City Water Allocation; and WHEREAS, due to the acute drought condition in the Antelope Valley, (AVEK) and Palmdale Water District (PWD) have proposed to split the purchase of the City Water Allocation; and
Resolution No. CC 2022-002
WHEREAS, AVEK and PWD have each presented the City with a proposed “Term Sheet” providing the terms for the possible sale of 282 acre-foot of the City Water Allocation (the “Water Sale Term Sheets”), the City Manager and the Director Public Works have determined that the City has no current need for the available City Water Allocation, and they have reviewed the Water Sale Term Sheets and have determined that it is in the best interests of the City to sell some of the City Water Allocation on the terms and as provided in the Water Sale Term Sheets; and WHEREAS, the City Council now desires to authorize and direct the City Manager to execute the Water Sale Term Sheets for the City, and to authorize the City Manager and other relevant City Staff to take all actions necessary to implement the transaction contemplated by the Water Sale Term Sheets.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE, AND ORDER AS FOLLOWS:
SECTION 1. The sale of all or a portion of the City Water Allocation under and pursuant to the terms of the Water Sale Term Sheets is hereby authorized. The City Manager is hereby authorized and directed to execute and deliver the Water Sale Term Sheets, for and on behalf of the City, in the form on file with the City Clerk together with such additions thereto or changes therein as are approved by the City Manager upon consultation with the City Attorney, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Water Sale Term Sheets by the City Manager.
SECTION 2. The City Council hereby authorizes the City Manager, and all other applicable officers of the City, to execute all such documents and to take all actions as are necessary or desirable to implement the transaction contemplated by the Water Sale Term Sheets.
Resolution No. CC 2022-002
SECTION 3. The Palmdale City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 12th day of January, 2022. _________________________________
Approved as to form: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher L. Beck Shanae S. Smith, City Clerk
City Attorney
I, Shanae S. Smith, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 12th day of January, 2022 by the following roll call vote:
AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT: ___________________________ Date: ______________________________ _____________________________ Shanae S. Smith, City Clerk
Proposed Terms for the One-Time Transfer of
2020 Nickel Water Supply between
Antelo
pe Valley-East Kern Water Agency (AVEK) and
the City of Palmdale (City)
August 13, 2021
Parties
Antelope Valley-East Kern Water Agency (AVEK); City of Palmdale (City); herein after referred to as “Parties”.
Description
The Parties would implement a Project that will transfer up to 282 Acre-Ft of Nickel Water supply previously assigned to the City in 2020, yet left unused, to AVEK for use within their service area.
Project
Administration
The Parties will be responsible for the Project administration including project management, communication, and coordination of the Project. AVEK will be the responsible party if any communications regarding the State Water Project (e.g. Dept. of Water Resources) are required.
The Project will not be subject to DWR approval.
Term The Project will be completed in 2021.
Project CEQA
This program is exempt from CEQA
pursuant to a Class 1 categorical exemption (14 C.C.R. § 15301) because it involves the use of existing publicly owned water facilities. No new facilities will be required for the Project.
Financial
Commitment
AVEK will pay the City $606/Acre-Ft of the Nickel Water supply transferred to AVEK. Payment to the City of $170,892 will be made under the terms of an approved final Project transfer agreement between the Parties.
Water Delivery AVEK is solely responsible for the delivery, conveyance, storag e or otherwise disposal of the transferred Nickel Water supply upon completion of the Project.
SWP Costs AVEK will solely be responsible for any SWP variable costs incurred due to the Project.
Agency
Coordination
The Parties would cooperate with all State Agencies in preparing all necessary agreements and permits to complete the Project.
Parties acceptance of the above terms and conditions:
Antelope Valley-East Kern Water Agency City of Palmdale Acceptance of
Terms
.
Signature
.
.
Signature
.
Title Title
. .
Date Date
Parties
Description
Project
Administration
Term
Project CEQA
Financial
Commitment
Water Delivery
SWPCosts
Agency
Coordination
Acceptance of
Terms
Proposed Terms for the One-Time Transfer of
2020 Nickel Water Supply between
Palmdale Water District (PWD) and
the City of Palmdale (City)
August 13, 2021
Palmdale Water District (PWD); City of Palmdale (City); herein after referredto as "Parties".
The Parties would implement a Project that will transfer up to 282 Acre-Ft of Nickel Water supply previously assigned to the City in 2020, yet left unused, to PWD for use within their service area.
The Parties will be responsible for the Project administration including project management, communication, and coordination of the Project. PWD will be the responsible party if any communications regarding the State Water Project (e.g. Dept. of Water Resources) are required.
The Project will not be subject to DWR approval.
The Project will be completed in 2021.
This program is exempt from CEQA pursuant to a Class I categorical exemption ( 14 C.C.R. § 15301) because it involves the use of existing publicly owned water facilities. No new facilities will be required for the Project.
PWD will pay the City $606/Acre-Ft of the Nickel Water supply transferred to PWD. Payment tothe City of $170,892 will be made under the terms of an approved final Project transfer agreement between the Parties.
PWD is solely responsible for the delivery, conveyance, storage or otherwise disposal of the transferred Nickel Water supply upon completion of the Project.
PWD will solely be responsible for any SWP variable costs incurred due to the Project.
The Parties would cooperate with all State Agencies in preparing all necessary agreements and permits to complete the Project.
Parties acceptance of the above terms and conditions:
PalmAale Water District
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Date
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City of Palmdale
Signature
Title
Date
City Council Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2022-012, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE AUTHORIZING THE
EXECUTION OF AN EMERGENCY MUTUAL RESPONSE
AGREEMENT BETWEEN MEMBER ANTELOPE VALLEY
AGENCIES
ISSUE
Adopt Resolution No. CC 2022-012, a Resolution of the City Council of the City of Palmdale authori zing the execution of an Emergency Mutual Response Agreement between member Antelope Valley Agencies.
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. CC 2022 -012 authorizing the execution of an Emergency Mutual Response Agreement between member Antelope Valley agencies, City Agreement No. A-7758.
2. Authorize the City Manager, or his designee, to execute Agreement No. A-7758, including making minor and non-substantive changes.
BACKGROUND
Recognizing the need for intergovernmental coordination and cooperation during an emergency, the Cities of Palmdale and Lancaster, County of Los Angeles, Palmdale Water District (PWD), Antelope Valley -East Kern Water Agency (AVEK), Quartz Hill Water District (QHWD), Littlerock Creek Irrigation District and Rosamond Community Services District convened a meeting to develop the framework of this Agreement. The County is still working out some details and will likely join the “group” at some future date.
DISCUSSION
It is recognized that emergencies often distress local and state government capability, transcend agency boundaries, and that intergovernmental coordination is essential for the protection of lives, property, and incident stabilization. This cooperation is a lso essential for the maximum use of available resources.
Report to Mayor and City Council
Re: Resolution No. CC 2022-012
January 12, 2022
FISCAL IMPACT
Approving this Agreement will allow the City of Palmdale to draw upon outside resources and provide necessary assistance in a time of need. Any assistance or support to another signatory agency would be reimbursed resulting in little if any fiscal impact to the City.
STRATEGIC PLAN
Goal I: Maintain effective public safety and protection for life, property, and the environment.
B. Be prepared to protect life, property, and the environment in the event of catastrophic disasters and emergencies.
D. Strengthen regional, state, and national partnerships to enhance our legislative presence.
Prepared by: Chuck Heffernan, P.E., Director of Public Works Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, City Manager
Approved as to form: Christopher Beck, City Attorney
ATTACHMENTS
1. Resolution CC 2022-012
2. Agreement A-7758
GOVERNING BOARD
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-012
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
AUTHORIZING THE EXECUTION OF AN EMERGENCY MUTUAL
RESPONSE AGREEMENT BETWEEN MEMBER ANTELOPE VALLEY
AGENCIES, CITY AGREEMENT NO. A-7758
WHEREAS, It is recognized that emergencies often distress local and state government capability, transcend agency boundaries; and WHEREAS, intergovernmental coordination is essential for the protection of lives, property, and incident stabilization.; and
WHEREAS, this cooperation is also essential for the maximum use of available resources; and
WHEREAS, due to their proximity and mutual interests in the well being of the residents of the Antelope Valley, this Agreement is made between the Agencies identified on Exhibit A of Agreement No. A-7758; and
WHEREAS, the City Council now desires to authorize and direct the City Manager to execute the Emergency Mutual Response Agreement for the City, and to authorize the City Manager and other relevant City Staff to take all actions necessary to implement the said Agreement No. A-7758 and to carry out the cooperative efforts therein described.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE, AND ORDER AS FOLLOWS:
SECTION 1. The cooperative efforts both offered and received under and pursuant to the terms of the Emergency Mutual Response Agreement is hereby authorized. The City Manager is hereby authorized and directed to execute and deliver the Emergency Mutual Response Agreement, for and on behalf of the City, in the form on file with the City Clerk together with such additions thereto or changes therein as are approved by the City Manager upon consultation with the City Attorney, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Emergency Mutual Response Agreement by the City Manager.
Resolution No. CC 2022-012
SECTION 2. The City Council hereby authorizes the City Manager, and all other applicable officers of the City, to execute all such documents and to take all actions as are necessary or desirable to implement any transactions contemplated by the Emergency Mutual Response Agreement.
SECTION 3. The Palmdale City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 12th day of January, 2022. _________________________________
Approved as to form: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher L. Beck Shanae S. Smith, City Clerk
City Attorney
I, Shanae S. Smith, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 12th day of January, 2022 by the following roll call vote:
AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT: ___________________________ Date: ______________________________ _____________________________ Shanae S. Smith, City Clerk
Agreement No. A-
7758
01184.0001/694802.1
Mutual Response Agreement
Antelope Valley Agencies
This AGREEMENT is made and entered into by the signatories to this Agreement, as listed on Exhibit A hereto, which have adopted and signed this agreement to provide mutual assistance in times of emergency in accordance with the California Emergency Services Act and the reimbursement for equipment, supplies and personnel made available on an emergency basis as specified herein.
Said agencies are individually referred to herein as a “Member Agency” and all of said agencies are referred to herein collectively as “the parties.”
In consideration of the mutual covenants and agreements hereinafter set forth, the parties agree to provide mutual assistance to one another in times of emergency as follows:
ARTICLE I.
PURPOSE
Recognizing that emergencies may require assistance in the form of personnel, equipment, and supplies from outside the area of an emergency’s impact, the parties hereby establish an Intrastate Program for Mutual Aid, Response and Assistance. Through this Mutual Aid Response and Assistance Program (the “Program”), Members coordinate response activities and share resources during emergencies and assist during local emergencies or planned or unplanned outages, as defined herein. This Agreement sets forth the procedures and standards for the administration of the Program among the parties.
ARTICLE II.
DEFINITIONS
A. Authorized Official – An employee or officer of a Member Agency who is authorized to:
1. Request assistance;
2. Offer assistance;
3. Refuse to offer assistance or
4. Withdraw assistance under this agreement.
B. Emergency – A natural or human caused event or circumstance causing, or imminently threatening to cause, impact to the operations of a Member Agency, loss of life, injury to person or property, human suffering, or financial loss, and includes, but is not limited to, fire, flood, severe weather, earthquake, civil disturbance, riot, explosion, drought, volcanic activity, spills or releases of oil or hazardous materials, contamination, utility or transportation emergencies, disease, blight, infestation, intentional acts, sabotage, declaration of war, or other condition which will, or is likely to, require a greater level of personnel, equipment, facilities and services than a Member Agency can provide on its own, and thus will require mutual assistance.
C. Members or Member Agencies – Any public or private agency that manifests intent to participate in the Program by executing this Agreement.
1. Requesting Member – A Member Agency that requests aid or assistance under the Program.
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7758
01184.0001/694802.1
2. Responding Member – A Member Agency that responds to a request for aid or assistance under the Program.
3. Non-Responding Member – A Member Agency that does not provide aid or assistance during a Period of Assistance under the Program.
D. Confidential Information – Any document shared with any signatory of this Agreement that is marked confidential, including but not limited to any map, report, notes, papers, opinion, or e- mail which relates to the system vulnerabilities of a Member Agency.
E. Period of Assistance – A specified period of time when a Responding Member assists a Requesting Member. The period commences when personnel, equipment, or supplies depart from Responding Member’s facility and ends when the resources return to their facility (portal to portal). All protections identified in this Agreement apply during this period. The specified Period of Assistance may occur during response to or recovery from an Emergency, as previously defined, or during an Outage, as defined herein.
F. National Incident Management System (NIMS) – A national, standardized approach to incident management and response that sets uniform processes and procedures for emergency response operations.
G. Standardized Emergency Management System (SEMS) – A standardized approach to field command and jurisdictional management and response set forth by State of California Code of Regulations for multi-agency or multijurisdictional response to an emergency.
H. Outage – A period of time where a Member’s utility supply is interrupted to the extent that the interruption jeopardizes the health and safety of the Members’ customers/constituents. An Outage is “planned” when the Member is given at least three (3) days prior notice of the interruption in supply. An Outage is “unplanned” when the Outage occurs without at least three (3) days prior notice of the interruption in supply, including when the Outage occurs unexpectedly.
ARTICLE III.
ADMINISTRATION
The Program shall be administered through the Antelope Valley Agencies Group Emergency Preparedness Coordinator (the “Coordinator”) and the Emergency Preparedness Coordinator Administrative Committee (the “Committee”).
The purpose of the Committee is to provide local coordination of the Program before, during and after an Emergency or Outage. The Committee shall meet as frequently as necessary, but at least quarterly, to address Program issues and review emergency preparedness and response procedures. The Committee will be made up of at least one (1) representative of each of the Member Agencies. The Committee members shall work with the Coordinator to plan and coordinate emergency planning and response
Agreement No. A-
7758
01184.0001/694802.1
activities for the Program and shall ensure that all Member Agencies are informed of such activities and have the opportunity to participate in all related planning and training activities.
The Committee may promulgate regulations and procedures to implement the terms and intent of this Agreement, by simple majority vote of Committee members.
ARTICLE IV.
PROCEDURES
A. In coordination with the Committee and the emergency management and public health systems of the state, the Committee and Coordinator shall develop operational and planning procedures for the Program. These procedures shall be consistent with the Standardized Emergency Management System (SEMS), the National Incident Management System (NIMS) and this Agreement. These procedures shall be reviewed at least annually and updated as needed by the Committee and Coordinator.
B. Requests for emergency assistance or assistance with any Outage under this Agreement shall be directed to the appropriate Authorized Official(s) from the list of Members.
ARTICLE V.
REQUESTS FOR ASSISTANCE
In general, assistance will be in the form of resources, such as equipment, supplemental water supplies, other supplies, and personnel. Assistance shall be given only when a Responding Member determines that its own needs can be met while rendering assistance. The execution of this Agreement shall not create any duty to respond on the part of any party hereto. A potential Responding Member shall not be held liable for failing to provide assistance. A potential Responding Member has the absolute discretion to decline to provide any requested assistance.
A. Responsibility – Members shall identify an Authorized Official and at least one alternate; provide contact information including 24-hour access and maintain resource information that may be available from the agency for mutual aid and assistance response. Such contact information shall be updated annually or when changes occur and be promptly provided to the Coordinator.
B. Member Request – In the event of an Emergency or Outage (planned or unplanned), a Member’s Authorized Official may request mutual aid and assistance from a participating Member. Requests for assistance can be made orally or in writing. When made orally, the request for personnel, equipment, supplemental water supplies and other supplies shall be memorialized in writing as soon as practicable. Requests for assistance shall be directed to the Authorized Official of the participating Member. Specific protocols for requesting aid shall be provided in the required procedures to be established by the committee pursuant to Article IV hereof.
C. Response to a Request for Assistance – Members are not obligated to respond to a Requesting Member’s request. After a Member receives a request for assistance, that Member’s Authorized Official evaluates whether or not to respond, whether resources are available to respond, or if other circumstances would hinder response. Following the evaluation, that Member’s
Agreement No. A-
7758
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Authorized Representative shall inform, as soon as possible, the Requesting Member whether that Member will respond. If the Member is willing and able to provide assistance, the Member shall inform the Requesting Member about the type of available resources and the approximate arrival time of such assistance. If a Member determines it cannot respond to a request for assistance, that Member shall not be responsible for any consequences associated with its failure to respond.
D. Discretion of Responding Member’s Authorized Official – Execution of this Agreement does not create any duty for a Member to respond to a request for assistance. When a Member receives a request for assistance, the Authorized Official shall have sole and absolute discretion as to whether or not to respond, or the availability of resources to be used in such response. An Authorized Member’s decisions on the availability of resources shall be final.
ARTICLE VI.
RESPONSE COORDINATION
When providing assistance under this Agreement, the Requesting Member and Responding Member shall be organized and shall function under the Standard Emergency Management System and National Incident Management System protocols and procedures.
A. Personnel – Responding Member retains the right to identify the specific employees to be provided to a Requesting Member and the resources that are available.
B. Control – While employees so provided may be under the supervision of the Responding Member, the Responding Member’s employees come under the direction and control of the Requesting Member, consistent with the NIMS Incident Command System to address the needs identified by the Requesting Member. The Requesting Member’s Authorized Official shall coordinate response activities with the designated supervisor of the Responding Member(s).
Whenever practical, Responding Member personnel must be self-sufficient for up to 72 hours.
The Responding Member’s designated supervisor(s) must keep accurate records of work performed by Responding Member’s personnel during the specified Period of Assistance.
C. Food and shelter – When possible, the Requesting Member shall supply reasonable food and shelter for Responding Member personnel. If the Requesting Member is unable to provide food and shelter for Responding Member personnel, the Responding Member’s designated supervisor is authorized to secure the resources necessary to meet the needs of its personnel.
Except as provided below, the cost for such resources must not exceed the state per diem rates for that area. To the extent food and shelter costs exceed the state per diem rates for the area, the Responding Member must demonstrate that the additional costs were reasonable and necessary under the circumstances. Unless otherwise agreed to in writing, the Requesting Member remains responsible for reimbursing the Responding Member for all reasonable and necessary costs associated with providing food and shelter, if such resources are not provided.
D. Communication – The Requesting Member shall provide Responding Member personnel with radio equipment as available, or radio frequency information to program existing radios, in order to facilitate communications with local responders and utility personnel.
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7758
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E. Status – Unless otherwise provided by law, the Responding Member’s officers and employees retain the same privileges, immunities, rights, duties and benefits as provided in their respective jurisdictions; and shall remain officers and employees, as applicable, of the Responding Member.
F. Licenses and Permits – To the extent permitted by law, Responding Member personnel that hold licenses, certificates, or permits evidencing professional, mechanical, or other skills shall be allowed to carry out activities and tasks relevant and related to their respective credentials during the specified Period of Assistance.
G. Right to Withdraw Resources – The Responding Member’s Authorized Official retains the right to withdraw some or all of its resources at any time for any reason in the Responding Member’s sole and absolute discretion. Notice of intention to withdraw must by communicated to the Requesting Member’s Authorized Official as soon as is practicable under the circumstances.
ARTICLE VII.
COST REIMBURSEMENT
Unless otherwise mutually agreed in whole or in part by both parties, the Requesting Member shall reimburse the Responding Member for each of the following categories of costs incurred while providing aid and assistance during the specified Period of Assistance.
A. Personnel – Responding Member(s) will make such employees as are willing to participate available to Requesting Member at Requesting Member’s expense equal to any Responding Member’s full cost, i.e., equal to the employee’s applicable salary or hourly wage, plus fringe benefits and overhead, and consistent with Responding Member’s collective bargaining agreements, if applicable, or other conditions of employment. All costs incurred for work performed during the specified Period of Assistance will be included. The Requesting Member shall be responsible for all direct and indirect labor costs.
B. Equipment – Use of equipment, such as construction equipment, vehicles, tools, pumps and generators, shall be at a Responding Member’s current equipment rate and subject to the following conditions: The Requesting Member shall reimburse the Responding Member for the use of equipment during the specified Period of Assistance, including, but not limited to, reasonable rental rates, all fuel, lubrication, maintenance, transportation, and loading/unloading of loaned equipment. All equipment shall be returned to the Responding Member as soon as is practicable and reasonable under the circumstances.
1. At the option of Responding Member, equipment may be provided with an operator.
2. Equipment shall be returned to Responding Member within 24 hours after receipt of an oral or written request for return.
3. During the Period of Assistance, Requesting Member shall, at its own expense, supply all fuel, lubrication and maintenance for furnished equipment; provided that Requesting Member shall obtain Responding Member’s consent before performing any such maintenance.
Agreement No. A-
7758
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4. Responding Member’s cost related to the transportation, handling and loading/unloading of equipment shall be chargeable to Requesting Member.
5. In the event equipment is damaged while being dispatched to Requesting Member, or while in the custody and use of Requesting Member, Requesting Member shall reimburse Responding Member for the reasonable cost of repairing said damaged equipment. If the equipment cannot be repaired, then Requesting Member shall reimburse Responding Member for the reasonable cost of replacing such equipment with equipment that is of at least equal capability as determined by the Responding Member. If Responding Member must lease a piece of equipment while Responding Member equipment is being repaired or replaced, Requesting Member shall reimburse Responding Member for such reasonable lease costs.
C. Materials and Supplies – The Requesting Member must reimburse the Responding Member in kind or at actual replacement cost, plus handling charges, for use of expendable or non- returnable supplies. The Responding Member must not charge direct fees or rental charges to the Requesting Member for other supplies and reusable items that are returned to the Responding Member in a clean, damage-free condition. Reusable supplies that are returned to the Responding Member with damage must be treated as expendable supplies for purposes of cost reimbursement.
D. Supplemental Water Supplies – The Responding Member will provide the Requesting Member with a bill showing the amount of water delivered to the Requesting Member. Water will be billed at the highest rate incurred for imported water by the Responding Member, or as the Responding Member may otherwise agree.
E. Payment Period – The Responding Member must provide an itemized bill to the Requesting Member for all expenses incurred by the Responding Member while providing assistance under this Agreement. The Responding Member must send the itemized bill not later than ninety (90) days following the end of the Period of Assistance. The Responding Member may request additional periods of time within which to submit the itemized bill and Requesting Member shall not unreasonably withhold consent to such request. The Requesting Member must pay the bill within 60 days following the billing date. The Requesting Member may request additional periods of time within which to pay the itemized bill and Responding Member shall not unreasonably withhold consent to such request, provided, however, that all payment shall occur not later than six months after the date a final itemized bill is submitted to the Requesting Member.
F. Records – Each Requesting Member and its duly authorized representatives shall have access to a Responding Member’s books, documents, notes, reports, papers and records which are directly pertinent to this Agreement for the purposes of reviewing the accuracy of a cost bill or making a financial, maintenance or regulatory audit. To the extent it deems necessary, each Responding Member and its duly authorized representatives shall have access to a Requesting Member’s books, documents, notes, reports, papers and records which are directly pertinent to this Agreement. Any audit shall occur during normal business hours upon giving reasonable notice to the Responding Member of the intent to conduct such an audit. In the event of such an audit, the employees of Responding Member shall comply with the reasonable requests of the Requesting Member, its representatives and agents. Such records shall be maintained for at
Agreement No. A-
7758
01184.0001/694802.1
least three (3) years or longer where required by law and as needed for federal reimbursement practices.
ARTICLE VIII.
ARBITRATION
If any controversy or claim arises out of, or relates to, the Agreement, including, but not limited to an alleged breach of the Agreement, the disputing Members shall first attempt in good faith to resolve the dispute by negotiation, followed by confidential mediation and finally shall be settled by binding arbitration in accordance with the Rules of the American Arbitration Association. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction.
ARTICLE IX.
REQUESTING MEMBER’S DUTY TO INDEMNIFY
Pursuant to Government Code Section 895.4, and subject to Article X, Requesting Member shall assume the defense of, fully indemnify and hold harmless Responding Member, its Directors, elected officials, officers, employees and agents (collectively, for purposes of this Article, “Responding Member”), from all claims, loss, damage, injury and liability of every kind, nature and description, including reasonable attorney’s and expert’s fees, incurred to the extent directly or indirectly arising from the Emergency and/or aid and assistance provided hereunder during the Period of Assistance, including, but not limited to, negligent or wrongful use of equipment, supplies or personnel provided to Requesting Member except where caused by the sole, active negligence or willful misconduct of Responding Member.
ARTICLE X.
SIGNATORY INDEMNIFICATION
In the event of a liability, claim, demand, action or proceeding, of whatever kind or nature arising out of the rendering of assistance through the Agreement, the Requesting Member agrees to indemnify, defend, and hold harmless all Members whose only involvement is the execution and approval of this Agreement, in the transaction or occurrence which is the subject of such claim, action, demand or other proceeding. Such indemnification shall include indemnity for all claims, demands, liability, damages and costs, including reasonable attorneys’ fees and other costs of defense, for injury, property damage and worker’s compensation.
ARTICLE XI.
WORKER’S COMPENSATION CLAIMS
The Responding Member is responsible for providing worker’s compensation benefits and administering worker’s compensation for its employees, provided, however, that the Requesting Member shall be responsible for reimbursing any amounts paid or due as benefits to Responding Member’s employees due to personal injury or death occurring during the Period of Assistance. The Requesting Member is responsible for providing worker’s compensation benefits and administering worker’s compensation for its employees.
Agreement No. A-
7758
01184.0001/694802.1
ARTICLE XII.
NOTICE
Each party hereto shall give to the others prompt and timely written notice of any claim made or any suit instituted coming to its knowledge, which in any way, directly or indirectly, contingently or otherwise, affects or might affect them, and each Member shall have the right to participate in the defense of the same, as it considers necessary to protect its own interest, subject to the indemnification, hold harmless and defense provisions set forth in Article IX.
ARTICLE XIII.
INSURANCE
Each Member shall procure and maintain, at its sole and exclusive expense, insurance coverage, including $2,000,000 comprehensive liability, personal injury, property damage, and worker’s compensation.
ARTICLE XIV.
CONFIDENTIAL INFORMATION
To the extent allowed by law, any Member (for purposes of this Article “Receiving Party”) shall maintain in the strictest confidence and shall take all reasonable steps necessary to prevent the disclosure of any Confidential Information provided to it by another Member (for purposes of this Article, “Disclosing Party”) pursuant to this Agreement. In the event that the Receiving Party is required, in the opinion of its legal counsel, to disclose any of the Confidential Information by applicable law (including, but not limited to, the California Public Records Act (Cal. Govt. Code §6250 et seq.), the Bagley-Keene Open Meeting Act (Cal. Govt. Code §11120 et seq.), the Brown Act (Cal. Govt. Code §54950 et seq.), and the Federal Freedom of Information Act), regulation or legal process, the Receiving Party will promptly notify the Disclosing Party so that the Disclosing Party may seek a protective order or other appropriate remedy or, in its sole discretion, waive compliance with the terms of this Agreement. The Receiving Party will reasonably cooperate with the Disclosing Party to obtain such a protective order, at the sole cost and expense of the Disclosing Party, and, in any event, will exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded any Confidential Information that is ultimately required to be disclosed.
ARTICLE XV
EFFECTIVE DATE
This Agreement shall be in full force and effect upon the execution of the Agreement by two (2) Member Agencies. This Agreement shall take effect for a subsequent new party immediately upon its execution by said party.
ARTICLE XVI.
WITHDRAWAL
Any party may terminate its participation in this Agreement by written notice to the Coordinator, who shall provide notice of withdrawal to all current Members. Withdrawal takes effect 60 days after the appropriate official receives notice. Withdrawal from this Agreement shall in no way affect a Requesting Member’s duty to reimburse a Responding Member for cost incurred during a Period of Assistance or indemnify any Member pursuant to Section IX and X. These duties shall survive such withdrawal.
Agreement No. A-
7758
01184.0001/694802.1
ARTICLE XVII.
MODIFICATION
No provision of this Agreement may be modified, altered or rescinded by individual parties to the Agreement. Modifications to this Agreement require a simple majority vote of Committee members.
The Committee will notify all parties of modifications to this Agreement in writing and those modifications shall be effective upon 60 days’ written notice to the parties.
ARTICLE XVIII.
SEVERABILITY
If any term or provision of this Agreement is declared by a court of competent jurisdiction to be illegal or in conflict with any law, the validity of the remaining terms and provisions shall not be affected, and the rights and obligations of the parties shall be construed and enforced as if the Agreement did not contain the particular term or provision held to be invalid.
ARTICLE XIX
PRIOR AGREEMENTS
This Agreement supersedes all prior Agreements between Members to the extent that such prior Agreements are inconsistent with this Agreement.
ARTICLE XX.
PROHIBITION ON THIRD PARTIES AND ASSIGNMENT OF RIGHTS/DUTIES This Agreement is for the sole benefit of the Members and no person or entity shall have any rights under this Agreement as a third-party beneficiary. Assignments of benefits and delegations of duties created by this Agreement are prohibited and any such attempted assignment or delegation shall have no effect.
ARTICLE XXI.
TORT CLAIMS
This Agreement in no way abrogates or waives any immunity or defense available under California law.
ARTICLE XXII.
INTRASTATE AND INTERSTATE MUTUAL AID AND ASSISTANCE PROGRAMS To the extent practicable, Members retain the right to participate in other mutual aid and assistance activities, including but not limited to, those conducted under the State of California Intrastate WARN Mutual Aid and Assistance Program, the Interstate Emergency Management Assistance Compact (EMAC), and similar programs.
Agreement No. A-
7758
01184.0001/694802.1
Now, therefore, in consideration of the covenants and obligations set forth in this Agreement, the Agency listed here manifests its intent to be a Member Agency in the Program by executing this Agreement on this ___________ day of _________________ 2022.
Member: ___________________________________________________ By: _____________________________ By: ______________________________ Title: ____________________________ Title: _____________________________ _________________________________ __________________________________ Please Print Name Please Print Name
Approved as to form and legality
By: ______________________________
Attorney for Agency
_________________________________
Please Print Name
City Council Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: ALL
SUBJECT: NOTICE OF COMPLETION – ACCEPT COMPLETED PROJECT WITH SULLY-MILLER CONTRACTING COMPANY FOR THE 2021
ARTERIAL OVERLAY PROJECT
ISSUE
Notice of Completion – Accept completed project withSully-Miller Contracting Company for the 2021 Arterial Overlay Project.
RECOMMENDATION
Staff recommends that the City Council:
1. Accept completed project with Sully -Miller Contracting Company for the 2021 Arterial Overlay Project, Project No. 805, Agreement No. A-7468 and;
2. Authorize the City Manager or his designee to execute and file a Notice of Completion.
BACKGROUND
Project No. 805, the 2021 Arterial Overlay Project was awarded to Sully -Miller Contracting Company at the June 1 st, 2021 City Council Meeting. This public works project provided for a 2 -inch pavement grind and 2 -inch polymer modified asphalt concrete (PMAC) overlay on over one million square feet of arterial roadway within the City of Palmdale, including utility/manhole adjustment, traffic loop restoration, thermoplastic striping enhancements, and medi an improvements. The road segments overlayed with this project include.
a) 25th Street West, from Rancho Vista Blvd to Elizabeth Lake Rd. b) Avenue S, from Cemetery Rd to 30th Street East
c) Avenue S, from approx. 45th Street East to 50th Street East
DISCUSSION
All construction work for this project has been completed , inspected, and approved. To release funds being held as retention (five percent of each progress payment), it is Report to Mayor and City Council
Re: Notice of Completion of A-7468 Sully-Miller Contracting Company January 12, 2022
necessary for the City Council to accept the project and for a Notice of Completion to be filed.
FISCAL IMPACT
This project was funded through Article 8 (207) and RMRA (210) funds, which have been allocated in Account No. S0025, Street Resurfacing Program. The original construction budget for this project was $2,067,000 and the final cost of construction was $1,990,067.45. which represents a 3.7% decrease. Thirty-five (35) days after the Notice of Completion has been filed, retention will be released.
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
Prepared by: Chuck Heffernan, Director of Public Works
Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, City Manager
Approved as to form: Christopher Beck, City Attorney
ATTACHMENTS
Notice of Completion
City Council Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: ALL
SUBJECT: NOTICE OF COMPLETION – ACCEPT COMPLETED PROJECT WITH MANHOLE ADJUSTING, INC. , FOR THE 2021 LOCAL
STREET CAPE SEAL PROJECT.
ISSUE
Notice of Completion – Accept completed project with Manhole Adjusting, Inc., for the 2021 Local Street Cape Seal Project
RECOMMENDATION
Staff recommends that the City Council:
1. Accept completed project with Manhole Adjusting, Inc., for the 2021 Local Street Cape Seal Project, Project No. 806, Agreement No. A-7505 and;
2. Authorize the City Manager or his designee to execute and file a Notice of Completion.
BACKGROUND
Project No. 806, the 2021 Local Cape Seal Project was awarded to Manhole Adjusting , Inc. at the June 1 st, 2021 City Council Meeting. This public works project provided for resurfacing of approximately 2.5 million square feet of local streets throughout the city with a System 1 ARAM cape seal treatment. At the October 5 th, 2021 City Council Meeting, City Council approved a change order to add approximately 1.2 million square feet of local streets to the project . In total, the project provided for the resurfacing of approximately 3.7 million square feet of local streets throughout the city.
DISCUSSION
All construction work for this project has been completed , inspected, and approved. To release funds being held as retention (five percent of each progress payment), it is necessary for the City Council to accept the project and for a Notice of Completion to be filed.
Report to Mayor and City Council
Re: Notice of Completion of A-7505 Manhole Adjusting, Inc.
January 12, 2022
FISCAL IMPACT
This project was funded through Prop C (204) and Article 8 (207) funds, which have been allocated in Account No. S0025, Street Resurfacing Program. The original construction budget for this project was $2,564,325 and the final construction cost of the project was $3,867,530.37 which represents a 51% increase. This increase is due in large part to a City Council approved change order, as discussed in the background section. Thirty-five (35) days after the Notice of Completion is filed, retention will be released.
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
Prepared by: Chuck Heffernan, Director of Public Works
Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, City Manager
Approved as to form: Christopher Beck, City Attorney
ATTACHMENTS
Notice of Completion
City Council Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
ENGINEERING DIVISION
DISTRICT: 4
SUBJECT: ADOPTION OF RESOLUTION NOS. CC 202 2-003 AND CC 202 2- 004, RESOLUTIONS OF THE CITY COUNCIL OF THE CITY OF
PALMDALE INITIATING PROCEEDINGS FOR THE APPROVAL OF
THE FORMATION OF THE CITY OF PALMDALE LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT NO. 2020-290, TRACT
54209, PRELIMINARILY APPROVING THE ENGINEER’S REPORT,
AND DECLARING THE CITY’S INTENTION TO LEVY AND
COLLECT ASSESSMENTS FOR FISCAL YEAR 2022/2023
ISSUE
Adopt Resolutions No.’s CC 2022-003 and CC 2022-004 initiating proceedings and declaring its intention to form the City of Palmdale Landscape Maintenance Assessment District No. 2020-290 (the “District”), preliminarily approving the Engineer’s Report, and declaring the City’s intention to levy and collect assessments within the City of Palmdale Landscape Maintenance Assessment District No. 2020-290 for Fiscal year 2022/2023.
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt a resolution Initiating Proceedings for the Formation of the City of Palmdale Landscape Maintenance Assessment District No. 2020-290; and
2. Adopt a resolution Declaring its Intention to Form the City of Palmdale Landscape Maintenance Assessment District No. 2020-290; and
3. Preliminarily approve the Engineer’s Report for the City of Palmdale Landscape Maintenance Assessment District No. 2020-290; and
4. Set a time and place for a public hearing for January 12, 2022 and ordering the initiation of assessment ballot proceedings.
BACKGROUND
The developer, Pacific Community Builders, Inc. has requested the formation of the District and it is also a condition of approval for the project, Tract 54209. Tract 54209, a 97 lot residential subdivision consisting of 95 single family residential homes on Report to Mayor and City Council
Re: Palmdale LMD No. 2020-290
January 12, 2022
28.71 acres is located between Avenue Q-12, 37th Street East, East Avenue R and 35th Street East.
According to the “Landscaping and Lighting Act of 1972”, Part 2 of Division 15 of the California Streets and Highways Code, the City may establish a landscape maintenance assessment district to provide for the installation, continued maintenance, and servicing of the landscaping improvements. Placement of the landscaping improvements into a district will provide for the continued maintenance of these improvements after the developer installs them and the City accepts them.
Article XIII D of the California Constitution, and Section 53753 of the California Government Code both require that a notice of the proposed assessment and ballot be mailed to the record owner of each parcel on which an assessment is imposed.
Additionally, the Article requires that the City conduct a public hearing no earlier than 45 days from the date of approval of the Resolution of Intention.
At this time LCTH Investments, L.P. and Paragon HM, LLC are the sole owners of Tract 54209, covering the territory located between Avenue Q-12, 37th Street East, East Avenue R and 35th Street East. The owners have each been mailed a petition requesting the owners to waive the 45-day notice period thereby shortening the time between the Resolution of Intention and the public hearing. A ballot will also be mailed to the owner, to indicate their support or opposition to the formation of the District.
The City has prepared resolutions initiating proceedings and declaring its intention to form the District and to levy and collect assessments to fund the cost of maintenance of landscaping improvements within the District. The City Council has designated the assessment engineer and will hear on the preliminary report, which outlines the Assessment District and the proposed annual assessments.
The attached resolutions and Engineer’s Report initiate the process for the formation of the District and set a date for the public hearing. At the time of the public hearing, the ballot will be checked, and if the vote is yes, the Engineer’s Report and resolution to be heard at the public hearing will confirm and levy assessments placed upon each parcel for the operation, maintenance and servicing costs.
DISCUSSION
Tonight’s City Council meeting is being held to approve the Resolutions to Initiate Proceedings, Declaring its Intention to Annex Territory into the District, along with preliminarily approving the Engineer’s Report and to set the date of the public hearing.
To assist the City in proceeding with the formation of the District, the City hired the assessment engineer, NBS. NBS has prepared the Engineer’s Report, which provides a description of the improvements, the estimated costs of improvements, a diagram for the District, and the assessment roll containing the Fiscal Year 2022-2023 levy for each Report to Mayor and City Council
Re: Palmdale LMD No. 2020-290
January 12, 2022
parcel within the District. NBS is also handling the noticing and protest ballot process, and submittal of the appropriate materials to Los Angeles County by the Fiscal Year 2022-23 property assessment deadline.
FISCAL IMPACT
The Report indicates the proposed assessments for the City of Palmdale Landscape Maintenance Assessment District No. 2020-290. The total combined maximum assessment revenue from the District for fiscal year 2022/2023 is $105,448.10 and the City’s general benefit contribution is $10,450.52. The appropriate funding source for the general benefit contribution will be determined during the FY 2022/2023 budget review process.
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
A. Seek innovative, cost effective, customer focused methods of service delivery.
C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
Prepared by: Chuck Heffernan P.E., Director of Public Works Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, City Manager
Approved as to form: Christopher Beck, City Attorney
ATTACHMENTS
1.Resolution No. CC 2022-003
2.Resolution No. CC 2022-004
3.Engineer’s Report for the City of Palmdale Landscape Maintenance Assessment District No. 2020-290
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-003
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
INITIATING PROCEEDINGS FOR THE FORMATION OF THE CITY OF
PALMDALE LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT
NO. 2020-290, DESCRIBING THE PROPOSED IMPROVEMENTS TO
SERVE SAID DISTRICT, AND ORDERING THE PREPARATION OF THE ENGINEER’S REPORT
WHEREAS, the City Council hereby proposes the initiation of proceedings to form the City of Palmdale Landscape Maintenance Assessment District No. 2020-290 (the “District”), and to levy and collect assessments against the lots and parcels of land within such Assessment District, pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500), and Article XIIID of the California Constitution (collectively referred to as the “Assessment Law”), to finance the cost and expenses of the maintenance of certain improvements described in Section 4 hereof, for the fiscal year commencing July 1, 2022 and ending June 30, 2023.
WHEREAS, the provisions of Article 2 of Chapter 2 of the Assessment Law authorize the formation of the District; and
WHEREAS, such provisions also provide that the requirement for the preparation of resolutions, an assessment engineer’s report, and notice of public hearing; and WHEREAS, notwithstanding that such provisions of Assessment Law related to the formation of the District, Article XIIID of the Constitution of the State of California establishes certain procedural requirements for the authorization to levy assessments which apply to the levy of annual assessments for the District; and WHEREAS, the owners of certain property have requested the formation of the District in order to provide for the levy of annual assessments finance the cost and expenses of the maintenance of certain improvements (the “Improvements”); and WHEREAS, the Council desires to initiate proceedings to form the District and to levy annual special benefit assessments within said District; and WHEREAS, the City has retained NBS for the purpose of assisting with the formation and annual levy of the District and to prepare and file a report in accordance with the Assessment Law; and
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
Resolution No. CC 2022-003
SECTION 1. The above recitals are all true and correct and by this reference made an operative part hereof.
SECTION 2. That the Council hereby proposes the formation of the District and the levy of collection and assessments.
SECTION 3. The Council hereby orders NBS to prepare and file with the City Clerk the Engineer’s Report concerning the District and the levy and collection of assessments for the fiscal year commencing July 1, 2022 and ending June 30, 2023 in accordance with Chapter 1, Article 4, Section 22565 of the Act.
SECTION 4. Generally, the improvements within the District which shall be maintained for the benefit of the proposed District and through the special benefit assessments levied annually shall include but not be limited to the following:
(a) the installation, planting or maintenance of landscaping, including, but not limited to, turf, trees, parks, streetscapes, parkways, drywells and drainage basins;
(b) the installation, construction or operation of any facilities which are appurtenant to any improvements listed in (a) and (b) or which are necessary or convenient for the maintenance or servicing thereof including, but not limited to, irrigation, drainage, and electrical facilities; and (c) the maintenance and servicing of any of the foregoing.
The Engineer’s Report shall describe all improvements.
SECTION 5. The boundaries of the District are described as being between Avenue Q-12, 37th Street East, East Avenue R and 35th Street East, within the boundaries of the City of Palmdale within the County of Los Angeles, State of California.
SECTION 6. The proposed District is designated as: City of Palmdale Landscape Maintenance Assessment District No. 2020-290.
Resolution No. CC 2022-003
SECTION 7. That the City Clerk shall attest and certify to the passage and adoption of this Resolution and it shall become effective immediately upon it’s approval.
PASSED, APPROVED and ADOPTED this 12th day of January, 2022. _________________________________
Approved as to form: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher L. Beck Shanae S. Smith, City Clerk
City Attorney
I, Shanae S. Smith, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 12 th day of January, 2022 by the following roll call vote:
AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT:___________________________ Date: ______________________________ _____________________________ Shanae S. Smith, City Clerk
COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-004
A RESOLUTION OF THE COUNCIL OF THE CITY OF PALMDALE
DECLARING ITS INTENTION TO FORM THE CITY OF PALMDALE
LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT NO. 2020-290, PRELIMINARILY APPROVING THE ENGINEER’S REPORT, AND
SETTING A TIME AND PLACE FOR HEARING PROTESTS
WHEREAS, the City Council (the “Council”) of the City of Palmdale (“City”), State of California, by it’s previous Resolution No. CC 2022-003 initiated proceedings to form the City of Palmdale Landscape Maintenance Assessment District No. 2020-290 (the “District”) pursuant to the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500), and Article XIIID of the California Constitution (collectively referred to as the “Assessment Law”), that provides for the levy and collection of assessments by the County of Los Angeles for the City of Palmdale to finance the cost and expenses of the maintenance of certain improvements described in Section 7 hereof for the fiscal year commencing July 1, 2022 and ending June 30, 2023.
WHEREAS, the provisions of Article 2 of Chapter 2 of the Assessment Law authorize the formation of the District; and
WHEREAS, such provisions also provide that the requirement for the preparation of resolutions, an assessment engineer’s report, and a notice of public hearing; and WHEREAS, notwithstanding that such provisions of Assessment Law related to the formation of the District, Article XIIID of the Constitution of the State of California establishes certain procedural requirements for the authorization to levy assessments which apply to the levy of annual assessments for the District; and WHEREAS, the owners of certain property have requested that the Territory be annexed to the District in order to provide for the levy of annual assessments to finance the maintenance of the Improvements; and
WHEREAS, all of the owners of the Territory have filed with the City Clerk duly executed forms entitled “A Petition to the City Council of the City of Palmdale, County of Los Angeles, State of California, Petitioning the Council to Initiate Proceedings for the Formation of the City of Palmdale Landscape Maintenance Assessment District No. 2020-290, Tract No. 54209, to be Located Between Avenue Q-12, 37 th Street, East Avenue R and 35th Street East, Pursuant to the Landscaping and Lighting Act of 1972, Being Part 2 of Division 15 of the California Streets and Highways Code and as Provided by Article XIIID of the California Constitution” (the “Petition, Consent and Waiver”); and
Resolution No. CC 2022-004
WHEREAS, by such Petition, Consent and Waiver, all of the owners of the Territory have expressly waived any and all of the procedural requirements as prescribed in the Act to the annexation of the Territory to the District and have expressly consented to the annexation of the Territory to the District; and WHEREAS, by such Petition, Consent and Waiver, all of the owners of the Territory have also expressly waived any and all of the procedural requirements as prescribed in the Act and/or Article XIII D applicable to the authorization to levy the proposed annual assessment against the Territory set forth in the Engineer’s Report (the “Report”) attached hereto and incorporated herein by this reference and have declared support for, consent to and approval of the authorization to levy such proposed annual assessment set forth in the Report attached hereto; and WHEREAS, by such Petition, Consent and Waiver, all of the owners of the Territory have also expressly agreed for themselves, their heirs, successors and assigns that:
(1) The proportionate special benefit derived by each parcel in the Territory from the District Improvements has been determined in relationship to the entirety of the maintenance and operation expenses of the Improvements; (2) The proposed annual assessment does not exceed the reasonable cost of the
proportional special benefit from the Improvements conferred on each parcel in the Territory.
WHEREAS, on January 12, 2022 by previous Resolution, the City Council (the “Council”) of the City of Palmdale (“City”), State of California, initiated proceedings to form the District and ordered the preparation of the Report for said District for Fiscal Year 2022/23, that provides for the levy and collection of assessments by the County of Los Angeles for the City of Palmdale to pay for the maintenance and services of all improvements and facilities related thereto; and,
WHEREAS, the Council has retained NBS for the purpose of assisting with the formation and the annual levy of the District and to prepare and file the Report with the City Clerk in accordance with the Assessment Law; and,
WHEREAS, at this time the Council desires to declare its intention to form the District and to provide for the levy and collection of annual assessments, beginning with in Fiscal Year 2022/23, to provide for the costs and expenses necessary to pay for the maintenance and servicing of the improvements (defined below) within the District; and WHEREAS, the Report has been filed with the City Clerk and submitted to this Council in accordance with the Assessment Law; and
Resolution No. CC 2022-004
WHEREAS, the Council has carefully examined and reviewed the Report as presented and is satisfied with the proposed District, each and all of the budget items and documents as set forth therein and is satisfied that the levy amounts have been spread in accordance with the special benefit received from the improvements, operation, maintenance and services within the District as set forth in said Report; and WHEREAS, for purposes of this District, the Public Works Director is designated to be the Superintendent of Streets.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS
FOLLOWS
SECTION 1. The above recitals are all true and correct and by this reference made an operative part hereof.
SECTION 2. The Council hereby declares that it is its intention to order the levy of assessments within the District and seek the Annual Levy of the District pursuant to the Act, over and including the land within the District, and to levy and collect assessments on all such land to pay the annual costs of the improvements. The Council has determined at this time to call an assessment ballot proceeding therein to authorize the levy of assessments (which are more particularly outlined in the Report) to pay the costs and expenses of the improvements described in Section 5 of this Resolution. The Council finds that the public’s best interest requires such levy and collection.
SECTION 3. Pursuant to Proposition 218, Section 4, Sub-Section 4 (c), now California Constitutional Articles XIIIC and XIIID, (hereafter referred to as the “Proposition 218”) approved by the California voters in November 1996, an assessment ballot proceeding is hereby called on behalf of the District on the proposition of levying the assessments and the assessment range formula to allow for reasonable increases within the District.
SECTION 4. The assessment ballot proceeding for the District on the proposition of authorizing the assessments and the assessment range formula to allow for reasonable increases, pursuant to Section 4, Sub-Section 4 (c and d) of Proposition 218 consists of a ballot, included with the mailed notice required by Proposition 218, distributed to the property owners of record within the District as of the County’s last equalized roll or as evidenced to the City. Each property owner’s ballot is weighted by the amount of their proposed assessment and they may return the ballot by mail or in person to the City Clerk not later than the conclusion of the Public Hearing on January 12, 2022. At the conclusion of the Public Hearing, pursuant to Section 4, Sub-Section 4 (e) of Proposition 218 the agency shall tabulate the ballots to determine if a majority Resolution No. CC 2022-004
protest exists. The ballots shall be weighted according to the proportional financial obligation of the affected property. A majority protest exists if, upon the conclusion of the Public Hearing, ballots submitted in opposition to the assessments exceed the ballots submitted in favor of the assessments.
SECTION 5. The boundaries of the District are described as being between Avenue Q-12, 37th Street East, East Avenue R and 35th Street East, within the boundaries of the City of Palmdale within the County of Los Angeles, State of California..
SECTION 6. The Report as presented, consisting of: (i) a description of improvements, (ii) an annual budget (costs and expenses of services, operations and maintenance) and (iii) the assessment roll containing the Fiscal Year 2022/23 levy for each Assessor’s parcel within the District, is hereby approved and ordered to be filed in the office of the City Clerk as a permanent record and to remain open to public inspection.
SECTION 7. Generally, the improvements within the District which shall be maintained for the benefit of the proposed District and through the special benefit assessments levied annually shall include but not be limited to the following:
(a) the installation, planting or maintenance of landscaping, including, but not limited to, turf, trees, parks, streetscapes, parkways, drywells and drainage basins;
(b) the installation, construction or operation of any facilities which are appurtenant to any improvements listed in (a) and (b) or which are necessary or convenient for the maintenance or servicing thereof including, but not limited to, irrigation, drainage, and electrical facilities; and (c) the maintenance and servicing of any of the foregoing.
SECTION 8. For Fiscal Year 2022/23, the proposed assessments are outlined in the Report which details the annual assessments and formula.
SECTION 9. Property owners have been provided a notice and an assessment ballot to cast on the proposed assessment and the assessment range formula to allow for reasonable increases. Ballots must be received prior to the conclusion of the Public Hearing at which they will be tabulated. At the Public Hearing, all interested persons shall be afforded the opportunity to hear and be heard.
SECTION 10. The City Clerk hereby declares that a Public Hearing on these matters will be held by the City Council on January 12, 2022 at 7:30pm or as soon Resolution No. CC 2022-004
thereafter as feasible in the City Council Chambers, located at 38300 Sierra Highway, Suite C, Palmdale, CA 93550.
SECTION 11. That the City Clerk shall attest and certify to the passage and adoption of this Resolution and it shall become effective immediately upon it’s approval.
PASSED, APPROVED and ADOPTED this 12th day of January, 2022. _________________________________
Approved as to form: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher L. Beck Shanae S. Smith, City Clerk
City Attorney
I, Shanae S. Smith, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the Council of the City of Palmdale at a regular meeting of said Council held on the 12 th day of January, 2022 by the following roll call vote:
AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT:___________________________ Date: ______________________________ _____________________________ Shanae S. Smith, City Clerk
nbsgov.com
Prepared by:
Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
Engineer’s Report For:
Landscape Maintenance
Assessment District No. 2020-290
Tract No. 54209
November 2021
Fiscal Year 2022/23
TABLE OF CONTENTS
1. INTRODUCTION ......................................................................................... ..................... 1
1.1 District History ........................................................................................................... 1
1.2 Legislative Context .................................................................................................... 1
1.3 Court Rulings ............................................................................................................. 2
2. IMPROVEMENTS ......................................................................................... .................... 4
2.1 Street Tree and Other Landscape Maintenance ....................................................... 4
3. BENEFITS ............................................................................................. ........................... 5
3.1 Street Tree and Other Landscape Maintenance – Improved Aesthetics and Increased Desirability .......................................................................................................... 5
4. SPECIAL BENEFIT DISTRIBUTION ......................................................................... ............. 6
4.1 Building Factor ........................................................................................................... 6
4.2 Land Use Type ........................................................................................................... 6
4.3 Total Special Benefit Points ....................................................................................... 7
5. SEPARATION AND QUANTIFICATION OF GENERAL BENEFITS ........................................... 8
5.1 Summary ................................................................................................................... 8
5.2 General Benefits Identified ....................................................................................... 8
5.3 General Benefit Analysis ........................................................................................... 8
6. BUDGET ............................................................................................... ......................... 12
6.1 Maximum Balance to Be Assessed .......................................................................... 12
6.2 Maximum Assessment Rate per Special Benefit Point ........................................... 12
6.3 Annual Maximum Assessment Rate Increases........................................................ 13
6.4 Future Changes to Parcel Characteristics ................................................................ 13
6.5 Data for Annual Assessment Calculations ............................................................... 13
6.6 Appeals .................................................................................................................... 14
6.7 Method of Collection .............................................................................................. 14
7. ENGINEER’S STATEMENT .............................. ................................................... ............. 15
8. ASSESSMENT DIAGRAM ................................................................................... ............. 16
9. ASSESSMENT ROLL ...................................................................................... .................. 17
10. REFERENCES ........................................ ................................................... ...................... 18
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 1
1. INTRODUCTION
1.1 District History
The City of Palmdale (“City”) provides maintenance and servicing of certain publicly owned landscaped areas and detention basins throughout it’s jurisdictional boundaries. The City funds the maintenance of these landscaping projects and improvements through assessments as described in Section 2 of this Report. The City formed the Landscape Maintenance Assessment District (the “Assessment District”) and there are currently 248 existing zones covering approximately 29,000 parcels. The assessments described in this Report have been prepared pursuant to Article XIII D of the California Constitution, the Proposition 218 Omnibus Implementation Act (Division 2 of the California Government Code §53739 et seq.), and the Landscaping and Lighting Act of 1972 (Division 15 of the California Streets and Highways Code §22500 et seq.) collectively, the “Assessment Law”.
As a condition of approval, Tract number 54209 is required to fund landscape maintenance associated with the frontage improvements for a 97 lot residential subdivision including a drainage basin (lots 88 and 93) and three sets of drywells. The property proposed to be included in the District consists of 95 single family residential homes on 28.71 acres of property. The Landscape Maintenance Assessment District No. 2020- 290 (the “District”) is proposed to fund the maintenance and servicing of street trees and other landscape maintenance (the “Improvements”) that benefit the residential subdivision that forms the District.
1.2 Legislative Context
Determinations of special and general benefits must comply with the requirements of Assessment Law.
The following is a description of the legislative context within which this report is written.
In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments.
The substantive requirements are twofold: (1) assessments can only be imposed for a “special benefit” conferred on an assessed parcel, and (2) assessments must be in proportion to, and no greater than, the special benefit conferred on an assessed parcel.
The special benefit and proportionality requirements are described in Section 4, Subdivision (a) of Article XIII D: “ An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and an agency shall separate the general benefits from the special benefits conferred on a parcel …”
In addition to its substantive requirements, Article XIII D imposes certain procedural requirements, which include preparing an engineer’s report, providing written notice to property owners, providing assessment protest ballots to property owners, holding a public hearing, and tabulating the assessment protest ballots.
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 2
1.3 Court Rulings
Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below.
1.3.1 GENERAL BENEFIT
Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable.
The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011) (“Golden Hills”) clarified this concept by stating, “ Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits .” The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”) quoted from the Legislative Analyst’s Office pamphlet titled “Understanding Proposition 218” which states an agency must, “ estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit. ” The Court in Beutz furthered this idea stating, “ Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”
1.3.2 BENEFIT-BASED NOT COST-BASED
In Bonander v. Town of Tiburon (2009) (“Tiburon”), the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “ Proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district. ”
The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “ an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property .”
1.3.3 PUBLIC PROPERTY
Section 4, Subdivision (a) of Article XIII D states, in part, “ Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. ” Historically, there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed.
The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017) (“Manteca”) clarified this issue by stating, “section 4, subdivision (a) of article XIII D of the California
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 3 Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit. ”
1.3.4 IMPRECISION
The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “ Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision. ” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits, however, it must be both defensible and consistently applied .”
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 4
2. IMPROVEMENTS
The City seeks to fund the following services and maintenance activities:
Street Trees and Other Landscape Maintenance
The services and maintenance activities listed above are collectively referred to as the “Improvements.” A diagram detailing the proposed area in which the Improvements can be found is below. The Assessment Diagram for the District can be found in Section 8 of this report.
2.1 Street Tree and Other Landscape Maintenance
The City wishes to fund ongoing maintenance and servicing of trees and landscaping including, but not limited to, trees, shrubs, grass and other ornamental vegetation, a drainage basin (lots 88 and 93), three sets of drywells and appurtenant devices, including irrigation systems, watering, and other associated landscape maintenance along 35th Street East and East Avenue R with the City, as well as incidental expenses, associated with the frontage improvements for 95 single family residential parcels located between Avenue Q-12, 37 th Street East, East Avenue R and 35 th Street East.
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 5
3. BENEFITS
The Improvements will confer special benefits upon certain parcels within the District. These benefits are summarized in the table below:
Improvement Benefit(s)
Street Tree and Other Landscape Maintenance Improved Aesthetics Increased Desirability
The special benefits to be conferred by the Improvements are detailed below.
3.1 Street Tree and Other Landscape Maintenance – Improved Aesthetics and Increased Desirability
The street trees and other landscaping activities will confer aesthetic benefits. Specifically, the street trees are believed to create a more beautiful, aesthetically pleasing environment within the District. A study by the University of George found " People’s preferences for locating areas of social interactions in calming, beautiful, and nature-dominated areas revolve around the presence of community trees and forests " (Coder, 1996). The same study noted “ Large old street trees were found to be the most important indicator of attractiveness in a community ” (Coder). Therefore, the street tree improvements will confer aesthetic benefits to properties in close proximity.
The Improvements will confer desirability benefits upon all parcels within the District. The Improvements are designed to create a more welcoming environment for the residents within the District. They also make properties in the area more desirable. The presence of natural areas and green landscapes are positively related to neighborhood satisfaction (Kearney, 2006). Therefore, the Improvements will confer desirability benefits.
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 6
4. SPECIAL BENEFIT DISTRIBUTION
Once special benefits are identified, they must be assigned based on the estimated proportionate special benefit derived by each parcel. This section describes the assignment of special benefit to each parcel.
4.1 Building Factor
It is believed parcels of the same use will experience different degrees of special benefit in relation to differences in their building size. For example, a parcel with a large building will experience greater special benefit than a parcel with a small building. Accordingly, as building size increases, parcels are considered to receive proportionately greater special benefit. Therefore, these parcel characteristics are deemed appropriate factors for determining proportional special benefit.
The parcels within the District are proposed to be single family residential homes of similar size and use, consequently it is expected the parcels will experience a similar degree of special benefit from the Improvements. Therefore, the Building Factor for each parcel is 1.00.
4.2 Land Use Type
In addition to building size, a parcel’s land use type will also affect the special benefits received. Following the assignment of each planned parcel building factor, Land Use Benefit Points were assigned. These benefit points correspond to the special benefits described in the Benefits section of this report.
Each parcel within the proposed District boundary is assigned a land use type for purposes of determining the special benefits received. Below is a description of the land use type category to be assessed within the District.
Single Family Residential Property consists of parcels that are detached with a residential structure intended exclusively for residential purposes.
4.2.1 APPORTIONING AESTHETIC BENEFIT
The Aesthetic Benefits conferred by the Improvements will be enjoyed by all assessable land use types. The benefit of visual appeal is not restricted to a particular land use. A more attractive public environment can be enjoyed by all parcels irrespective of land use type. Accordingly, each assessable land use type will be assigned one Aesthetic Benefit Point.
As a property-related benefit, improved aesthetics from tree and landscaping improvements can be measured by the characteristics of a parcel, namely the presence of a building and its size. Larger parcels and parcels with larger developments have a greater intensity of use and will experience the Aesthetic Benefits to a greater degree than smaller, less-developed parcels. Therefore, the Building Factor is used to measure Aesthetic Benefits.
4.2.2 APPORTIONING DESIRABILITY BENEFIT
As a result of the Aesthetic benefit conferred by the continued maintenance of the improvements, services and activities, the overall desirability of the District will increase. Desirability is largely affected by conditions in the public realm, places where people naturally interact with each other and their community including streets, parks, transportation terminals and other public facilities. Desirability also refers to the
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 7 environmental and social quality of an area as perceived by residents and visitors. This includes local environmental conditions, the quality of social interactions, opportunities for recreation and entertainment, aesthetics, and existence of unique cultural and environmental resources. Therefore, Improvements will confer desirability benefits upon all parcels within the District.
4.2.3 LAND USE BENEFIT POINTS
The table below summaries the Land Use Benefit Points assigned to each parcel within the District:
Land Use Type Aesthetic Desirability Total Land Use
Benefit Points
Single Family Residential 1 1 2
4.3 Total Special Benefit Points
The calculation of Total Special Benefit Points for each parcel takes into account each component analyzed and described above, parcel characteristics, and land use. The formula for determining each parcel’s Total Benefit Points is as follows:
Building
Factor
X Land Use Benefit
Points = Total Special
Benefit Points
The Total Special Benefit Points are computed for each parcel in the District. The Total District Special Benefit Points are 188. These Total District Special Benefit Points are used to determine the proposed assessment amounts on each parcel.
Below is a sample Total Special Benefit Points calculation for a typical parcel in the District:
Building Factor Land Use Benefit
Points Total Special Benefit
Points
1.00 X 2.00 = 2.00
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 8
5. SEPARATION AND QUANTIFICATION OF GENERAL
BENEFITS
As described in the Introduction, only special benefits are assessable and in order to assess only special benefits, the general benefits resulting from the Improvements must be separated and quantified. This section describes the process used to separate and quantify the general benefits.
5.1 Summary
As detailed below, it is estimated the Improvements will confer an Effective General Benefit of 26.00%.
5.2 General Benefits Identified
Section 4 of Article XIIID of the California Constitution provides that once a local agency which proposes to impose assessments on property has identified those parcels that will have special benefits conferred upon them and upon which an assessment will be imposed, the local agency must next “separate the general benefits from the special benefits conferred,” and only the special benefits can be included in the amount of the assessments imposed.
General benefit is an overall and similar benefit to the public at large resulting from the maintenance of the Improvements provided by the assessments levied. The Improvements to be maintained by the District are located within the District boundaries only. There will be no District maintenance activities provided for Improvements located outside of the District boundaries.
The ongoing maintenance of the Improvements will provide aesthetic and desirability benefits to the property within the District. However, it is recognized that the ongoing maintenance activities will also provide a level of benefit to some property within proximity to the District, as well as individuals passing through. Therefore, the general benefit created as a result of the District maintenance activities has been considered.
5.3 General Benefit Analysis
As a result of the maintenance and operation of the Improvements, there will be a level of general benefit to people that do not work or intend to conduct business within the District. In order for property within the District to be assessed only for that portion of special benefits received from the District’s maintenance activities, general benefits provided by the ongoing maintenance of the improvements need to be quantified. The amount of general benefit that is provided from the District’s maintenance activities cannot be funded via property owners’ assessments.
5.4 General Benefit: Vehicles Passing Through the District
5.4.1 ARTERIAL STREETS
The boundaries of the District include landscaping on two arterial streets, 35 th Street East and East Avenue R. While portions of these streets are within the boundaries of the District, it is recognized that not all traffic will access property within the District, but instead pass-through. As a result of the operational and well-
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 9 maintained landscaping, there will be a level of general benefit conferred to this pass-through vehicle traffic driving along 35th Street East and East Avenue R. As such, the benefit derived by this pass-through vehicle traffic needs to be quantified. In order to do this, we must first estimate the average daily vehicle trips through the District on these arterial streets. Traffic count data for 35th Street East and East Avenue R was provided by the City of Palmdale Traffic Transportation Division. As illustrated in the table below, the total estimated daily traffic through the District is 8,706.50 vehicle trips.
Arterial Streets
Estimated Average Daily
Vehicle Trips
35 th Street East 1,960
East Avenue R 6,747
Total Vehicle Trips 8,706.50
In order to identify the approximate number of pass-through trips, the number of daily vehicle trips that occur within the District must be estimated. To accomplish this, we utilize the average daily trip (“ADT”) rates for single family homes from the ITE Trip Generation Report, 9 th Edition to estimate the daily vehicle
trips for each property within the District. The estimated number of daily vehicle trips generated by properties within the District is approximately 896.80, as summarized below:
Land Use Type
Estimated Daily
Vehicle Trips
Single Family Residential ADT Value (1) 9.44
Total Single Family Residential Homes 95
District Vehicle Trips 896.80
(1) From the ITE Trip Generation Report, 9th Editi on
Therefore, the estimated number of pass-through vehicle trips allocated to the Arterial Streets is 7,809.70:
Estimated Vehicle
Trips Through the District
Estimated District
Generated Vehicle Trips
Estimated Pass-Through
Vehicle Trips
8,706.50 - 896.80 = 7,809.70
To estimate the total time these pass-through vehicles spend within the District and receive benefit from the Improvements, we must take into account the total length of 35th Street East and East Avenue R within the District, as well as the average traffic speed of each street (using current local speed limits):
Arterial Street
Length (in Miles)
Within District
Average Speed
Within District
(MPH)
Travel Time (in
Hours) Through
District per Vehicle
35th Street East 0.250 / 55 = 0.0045
East Avenue R 0.240 / 50 = 0.0048
Totals 0.490 0.0093
Applying the total travel time through the District per vehicle of 0.0093 hours to each of the pass-through vehicle trips results in an aggregate daily pass-through time of 72.99 hours, in which vehicles passing through the District spend in proximity to the Improvements:
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 10 Travel Time (in Hours)
Through District per
Vehicle
Estimated Pass
Through Vehicle Trips
Total Pass-Through
Time (in Hours)
0.0093 7,809.70 72.99
Further, the amount of time that the District properties spend in proximity to the Improvements should also be considered to determine the overall benefit of the Improvements. Properties within the District are permanently located in close proximity to the Improvements and experience the most benefit from these Improvements during the dusk to dawn hours, approximately 12 hours per day. Vehicles passing through only receive benefit from the Improvements while passing through the District. As such, the previously identified daily pass-through time for vehicles receiving limited benefit from the Improvements should be compared to the total time the District properties benefit from being in permanent proximity to the District Improvements:
Time Class Hours Percentage
Total Pass-Through Time 72.99 6.017%
Total District Property Time (1) 1,140 93.983%
Totals 1,213 100.000%
(1) Equals the number of properties in the District (95) multiplied by 12 (hours).
Of the total benefits provided by the District Improvements, the percentage of time allocated to vehicles passing through the District is 6.017%. Therefore, this percentage reflects the amount of general benefit accruing to vehicles passing through the District on Arterial Streets.
5.4.2 LOCAL/COLLECTOR STREETS
For purposes of determining general and special benefits, all streets within the District other than the specific streets listed as arterial streets above are considered local or collector streets. The local/collector streets within the District are intended to serve individual neighborhoods and not to be pass-through streets, but cul-de-sacs or loop roads to reduce through traffic. In addition, according to the City’s Adopted General Plan Circulation Element 1, “a system of local and collector streets serves residential neighborhoods while protecting them from intrusion of through traffic flow…local street patterns should provide access between subdivisions within a neighborhood, with the exception of through traffic which should be directed onto major and secondary arterials” (January 25, 1993).
From a visual inspection of the layout of the District, one must conclude that the purpose of the local/collector streets is exclusively intended for the benefit of the parcels on such streets. There is no local street that provides a direct or efficient means of traveling from one place to another such that one could reasonably expect a driver to purposefully choose the residential community’s local streets as the best route for travel unless necessary because the route either began or ended with a parcel in the District. A route beginning or ending with a parcel within the District does not include the “general public” for purposes of determining general benefit.
1 Extracted from the City of Palmdale General Plan Circulation Element, page C-5, Adopted January 25, 1993
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 11 However, one can imagine a minimal degree of pass-through traffic even on something such as a cul-de- sac. As expressed by the Court in Beutz v. County of Riverside (2010), “... courts of this state have long recognized that virtually all public improvement projects provide general benefits." Given the location to the Oak Tree Learning Center Elementary School and E. Palmdale Boulevard, there are bound to be drivers that make use of the local/collector streets for no other reason but to turn around or go back from where they came, especially if they are dropping their children off at the school.
Additionally, given the nature of the street landscaping, one could imagine a small degree of “residential tourism” wherein drivers and pedestrians are in fact simply “passing through” to enjoy the beautiful views of the homes, the natural surroundings, or visiting friends.
Additionally, the commonly accepted distance people will walk for public transportation, goods and services is one-quarter mile. Although unlikely, a person may decide to use the paths within the District, particularly for those walking children to the school nearby. A conservative estimate of 1.00% for each scenario would result in the general benefit portion of the improved aesthetics and increased desirability resulting from the street landscaping improvements to be 2.00%.
5.4.3 BICYCLE PASS-THROUGH TRAFFIC
An estimated 1% of all US trips are made by bicycle2. There is a bike lane on East Avenue R fronting the District. According to the National Household Travel Surveys, 49% of bike trips are for recreation, exercise, and sports 3. As a result of the District maintenance activities, there will be a level of general benefit to bicycle traffic that is not associated with property in the District. As such, the general benefit portion of the improved aesthetics and increased desirability benefits resulting from the landscaping improvements is estimated to be .50%, rounded up to 1.00%.
Pass-thru Biking General Benefit 1.00%
5.4.4 COLLECTIVE DISTRICT-WIDE GENERAL BENEFIT
Since the District is comprised of improved aesthetics and desirability benefits resulting from the Improvements, the activity of vehicles, pedestrians and bicycles passing through the District must be addressed in a collective form rather than independently. This general benefit result is provided in the table below:
Pass-through Traffic Arterial Streets General Benefit 6.017% Pass-through Traffic Local/Collector Street General Benefit 2.000% Pass-thru Bicycle Traffic General Benefit 1.000%
Total General Benefit 9.017%
2 U.S Department of Transportation. Federal Highway Administration. (2011). Summary of Travel Trends: 2009 National Household Travel Survey. (Report No. FHWA-PL-11-022). Retrieved from http://nhts.ornl.gov 3 Pucher, J., Buehler R., Meron, F., and Bauman, A. American Journals of Public Health, Supplement 1, Vol 101, No S1 (2011).
Walking and Cycling in the United States, 2001-2009: Evidence from the National Household Travel Surveys. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/21551387
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 12
6. BUDGET
The following table summarizes the estimated annual costs to fund the Improvements for Fiscal Year 2022/23:
Description Amount
Maintenance
Street Tree and Landscape Maintenance $59,331.88
Dry Well and Detention Basin Maintenance 49,487.50
Irrigation Maintenance and Repairs 1,814.50
Water and Electric Costs 4,264.24
Administration
Engineer/Consultant Costs 1,000.00
Total Cost of Improvements $115,898.12
6.1 Maximum Balance to Be Assessed
The total maximum amount to be assessed upon the specially benefitting parcels is the total cost of the Improvements, as detailed above, less the portion of Maintenance costs attributable to General Benefit as detailed in the Separation and Quantification of General Benefits section.
The calculation of the balance to be assessed is shown below:
Description Amount
Total Cost of Improvements $115,898.12
Less Maintenance General Benefit Portion (9.017%) ( 10,450.52) Rounding 0.50
Total Cost of Improvements to Be Assessed $105,448.10
6.2 Maximum Assessment Rate per Special Benefit Point
The Maximum Assessment Rate per Special Benefit Point is determined by dividing the Total Cost of Improvements to Be Assessed by the sum of the Total District Special Benefit Points noted in Section 5. The calculation of the Maximum Assessment Rate per Special Benefit Point is shown below:
Description Amount
Balance to Be Assessed $105,448.10
Total District Special Benefit Points 190
Maximum Assessment Rate per Special Benefit Point (1) $554.99 (1) Beginning July 1, 2023 the maximum assessment per Spec ial Benefit Point will be increased by the change in the February to February Consumer Price Index for all Urban Consumers, for the Los Angeles-Long Beach-Anaheim CA region co mpared year over year not to exceed 3% annually.
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 13 The Maximum Assessment Rate per Special Benefit Point is multiplied by each parcel’s Total Special Benefit Points to determine a maximum assessment amount per parcel. Below is a sample total maximum assessment calculation for a typical parcel in the District:
Maximum
Assessment Rate
per Special Benefit
Point
Total Special Benefit
Points
Total Maximum
Assessment Amount
Per Parcel
$554.99 X 2.00 = $1,109.98
6.3 Annual Maximum Assessment Rate Increases
Each parcel’s actual assessment is determined by multiplying the assessment rate by the parcels total specific benefit points. If the total District Special Benefit Points change in future years, the allowable annual Maximum Assessment Rate will not be recalculated. The allowable annual Maximum Assessment Rate per Special Benefit Point, plus the annual cost of living inflator, will remain fixed. The actual annual assessment rate will be calculated by dividing the fiscal year’s net cost estimate to be assessed by the fiscal year’s total Special Benefit Points, not to exceed the allowable annual Maximum Assessment Rate for that fiscal year. The Maximum Assessment Rate per Special Benefit Point is escalated each year on July 1 by the annual change in the February to February Consumer Price Index for all Urban Consumers, for the Los Angeles-Long Beach-Anaheim CA region not to exceed 3% annually, beginning July 1, 2023.
In any given year, the assessments may be levied at any rate sufficient to meet the estimated budget, as long as the actual assessment rate does not exceed the Maximum Assessment Rate for that fiscal year.
6.4 Future Changes to Parcel Characteristics
Future changes to parcel characteristics (building, frontage, and land use) will cause changes in the total assessment revenue. The assessment revenue for any given year will be the product of the District’s parcel characteristics and the budget in effect for such fiscal year. Development within the District that increases the overall building square footage, for example, will lead to increased assessment revenue, even if the assessment rate is not increased.
6.5 Data for Annual Assessment Calculations
Each year, as part of the assessment calculation procedures, the City or its designated consultant shall determine the land use type for each parcel based on the County Assessor's use code or other supplementary information made available and deemed reliable. The parcel characteristics of building square footage shall similarly be based on the County Assessor's secured rolled data for the applicable year and may be supplemented with other reliable data sources.
Assessment amounts may change over time in accordance with changes to parcel characteristics including land use type and building square footage.
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Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 14
6.6 Appeals
If any property owner believes the data used to calculate the assessment is inaccurate for any reason, the property owner shall submit, in writing, a request for review to the City. The property owner shall provide documentation needed to support the request for review. The City or its designated consultant shall review the request and provide a response to the property owner. The property owner must be current in the payment of all assessments when filing the request for review and must remain current during the review process. The property owner should continue to pay any regular property taxes due according to the County's due dates.
If the review conducted by the City or its designated consultant results in changes to any parcel characteristics used to compute the assessment, the City or its designated consultant shall recalculate the assessment. When recalculating the assessment, the assessment rates actually applied in such fiscal year shall be used. Only the assessment for the parcel or parcels subject to review shall be recalculated.
If the recalculated assessment is less than the amount submitted to the County on the secured property tax roll, the difference shall be credited back to the property owner. This credit shall be limited to the current fiscal year and the prior fiscal year, if applicable. The “fiscal year” shall follow the County’s fiscal year for property taxes, from July 1 to June 30. The applicable fiscal year shall be determined by the date the request for review is submitted to the City.
For example, if a request for review is submitted to the City during Fiscal Year 2023/24, the Fiscal Year 2023/24 and 2022/23 assessments will be reviewed. The property owner credit shall be limited to any difference calculated for Fiscal Year 2023/24 (the current fiscal year) and Fiscal Year 2022/23 (the prior fiscal year).
The credit may be provided in the form of a check to the property owner, an adjustment to the current year’s property tax roll (if possible), or a credit to the succeeding year’s assessment thereby reducing the amount placed on the secured property tax roll for such year.
If the recalculated assessment is greater than the amount submitted to the County on the secured property tax roll, the City or its designated consultant shall apply the recalculated assessment to the succeeding year’s property tax roll and no adjustments shall be made to the prior or current fiscal years’ assessments.
In any dispute over parcel characteristic data used to compute assessments, the City shall make a conclusive determination and its decision shall be final.
6.7 Method of Collection
The assessments will be collected annually on the County’s secured property tax roll. The assessments will be subject to the County’s assigned due dates and late penalties. However, the City may choose to collect the assessments in an alternate manner (including directly billing the property owner) as may be deemed appropriate or necessary by the City.
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 16
8. ASSESSMENT DIAGRAM
The following pages contain the assessment diagram for the District.
ASSESSMENT DIAGRAM
LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT NO. 2020-290
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, THIS ____ DAY OF _________, 20__.
________________________________________
CITY CLERK
CITY OF PALMDALE
COUNTY OF LOS ANGELES
RECORDED IN THE OFFICE OF THE SUPERINTENDENT OF STREETS OF THE CITY OF PALMDALE ON THE LOTS, PIECES AND PARCELS OF LAND ON THIS ASSESSMENT DIAGRAM ON THE ____ DAY OF _________, 20__. ________________________________________
CITY CLERK
CITY OF PALMDALE
COUNTY OF LOS ANGELES
AN ASSESSMENT WAS LEVIED BY THE CITY COUNCIL OF THE CITY OF PALMDALE ON THE LOTS, PIECES, AND PARCELS OF LAND SHOWN ON THIS ASSESSMENT DIAGRAM. THE ASSESSMENT WAS LEVIED ON THE ____ DAY OF _________, 20__; THE ASSESSMENT DIAGRAM AND ASSESSMENT ROLL WERE RECORDED IN THE OFFICE OF THE SUPERINTENDENT OF STREETS OF THAT CITY ON THE ____ DAY OF _________, 20__. REFERENCE IS MADE TO THE
ASSESSMENT ROLL RECORDED IN THE OFFICE OF THE SUPERINTENDENT OF STREETS FOR THE EXACT AMOUNT OF EACH ASSESSMENT LEVIED AGAINST EACH PARCEL OF LAND SHOWN ON THIS ASSESSMENT DIAGRAM. ________________________________________
CITY CLERK
CITY OF PALMDALE
COUNTY OF LOS ANGELES
FILED THIS ____ DAY OF _________, 20__, AT THE HOUR OF __ O’CLOCK _M, IN BOOK ________ OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGE ________, IN THE OFFICE OF THE COUNTY RECORDER IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA. ____________________________
COUNTY RECORDER
COUNTY OF LOS ANGELES
FOR PARTICULARS OF THE LINES AND DIMENSIONS OF ASSESSOR PARCELS, REFERENCE IS MADE TO THE MAPS OF THE ASSESSOR, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA.
CITY OF PALMDALE
COUNTY OF LOS ANGELES
STATE OF CALIFORNIA
35th St E
E Avenue R
Bee Ct37th St E
Adobe Dr
Janus Dr
Avenue Q-13
Saddleback Dr
E Avenue Q-12
Debra Ann Pl
Manning Wy
Honeysuckle Ave
37th St E
Bee Ct
37th St E
5 4 6
84 85
3 14
2 9
70 8
1 7
22 69
86 87
23 61
15 13
60 44
59 58
83 24
57 53
56 55 54
96 68
28 97
25 26 27
43 51
52 3536
33 37
3231
16 34
90 38
21 29
89 71
30 92
19 40
11 18
48 9188
81 41
82 10
78 77
39 80
93 62
45 79
12 47
17 20
94 49
95 67
72 73 7574 76
42 63
46 66 65 64
50 Sheet 1 of 1
Source: Los Angeles County GIS
Geographic Coordinate Reference: GCS North American 1983 Projection: NAD 1983 StatePlane California V FIPS 0405 Feet E Avenue R
35th St E
40th St E
E Palmdale Blvd
Viana Dr
Janus Dr
37th St E
Prairie Ln
Maricotte Dr
E Avenue Q-12
Avenue Q-13
Tamara Pl
Bee Ct
Palms Pl
Marbella Ln
E Avenue Q-11
Durango Pl
Mentor Ct
Saddleback Dr
37th St E
Bee Ct
E Avenue R
E Avenue R
E Palmdale Blvd
35th St E
40th St E
V I C I N I T Y M A PV I C I N I T Y M A P
LMD Boundary
LMD Parcels
Non-District Parcels 0 150 30075 Feet
O
ID APN ID APN
1 3020-042-001 50 3020-042-050
2 3020-042-002 51 3020-042-051
3 3020-042-003 52 3020-042-052
4 3020-042-004 53 3020-042-053
5 3020-042-005 54 3020-042-054
6 3020-042-006 55 3020-042-055
7 3020-042-007 56 3020-042-056
8 3020-042-008 57 3020-042-057
9 3020-042-009 58 3020-042-058
10 3020-042-010 59 3020-042-059
11 3020-042-011 60 3020-042-060
12 3020-042-012 61 3020-042-061
13 3020-042-013 62 3020-042-062
14 3020-042-014 63 3020-042-063
15 3020-042-015 64 3020-042-064
16 3020-042-016 65 3020-042-065
17 3020-042-017 66 3020-042-066
18 3020-042-018 67 3020-042-067
19 3020-042-019 68 3020-042-068
20 3020-042-020 69 3020-042-069
21 3020-042-021 70 3020-043-001
22 3020-042-022 71 3020-043-002
23 3020-042-023 72 3020-043-003
24 3020-042-024 73 3020-043-004
25 3020-042-025 74 3020-043-005
26 3020-042-026 75 3020-043-006
27 3020-042-027 76 3020-043-007
28 3020-042-028 77 3020-043-008
29 3020-042-029 78 3020-043-009
30 3020-042-030 79 3020-043-010
31 3020-042-031 80 3020-043-011
32 3020-042-032 81 3020-043-012
33 3020-042-033 82 3020-043-013
34 3020-042-034 83 3020-043-014
35 3020-042-035 84 3020-043-015
36 3020-042-036 85 3020-043-016
37 3020-042-037 86 3020-043-017
38 3020-042-038 87 3020-043-018
39 3020-042-039 88 3020-043-019
40 3020-042-040 89 3020-043-020
41 3020-042-041 90 3020-043-021
42 3020-042-042 91 3020-043-022
43 3020-042-043 92 3020-043-023
44 3020-042-044 93 3020-043-024
45 3020-042-045 94 3020-043-025
46 3020-042-046 95 3020-043-026
47 3020-042-047 96 3020-043-900
48 3020-042-048 97 3020-043-901
49 3020-042-049
LMD Boundary
1-97
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 17
9. ASSESSMENT ROLL
The following pages contain the proposed 2022/23 assessment roll for the District.
City of Palmdale
Landscape Maintenance Assessment District No. 2020-290
Fiscal Year 2022/23 Proposed Maximum Assessment
I.D. Assessor's Parcel Number
Fiscal Year 2022/23 Proposed
Maximum Assessment
1 3020-042-001 $1,109.98
2 3020-042-002 1,109.98
3 3020-042-003 1,109.98
4 3020-042-004 1,109.98
5 3020-042-005 1,109.98
6 3020-042-006 1,109.98
7 3020-042-007 1,109.98
8 3020-042-008 1,109.98
9 3020-042-009 1,109.98
10 3020-042-010 1,109.98
11 3020-042-011 1,109.98
12 3020-042-012 1,109.98
13 3020-042-013 1,109.98
14 3020-042-014 1,109.98
15 3020-042-015 1,109.98
16 3020-042-016 1,109.98
17 3020-042-017 1,109.98
18 3020-042-018 1,109.98
19 3020-042-019 1,109.98
20 3020-042-020 1,109.98
21 3020-042-021 1,109.98
22 3020-042-022 1,109.98
23 3020-042-023 1,109.98
24 3020-042-024 1,109.98
25 3020-042-025 1,109.98
26 3020-042-026 1,109.98
27 3020-042-027 1,109.98
28 3020-042-028 1,109.98
29 3020-042-029 1,109.98
30 3020-042-030 1,109.98
31 3020-042-031 1,109.98
32 3020-042-032 1,109.98
33 3020-042-033 1,109.98
34 3020-042-034 1,109.98
35 3020-042-035 1,109.98
36 3020-042-036 1,109.98
37 3020-042-037 1,109.98
38 3020-042-038 1,109.98
39 3020-042-039 1,109.98
40 3020-042-040 1,109.98
41 3020-042-041 1,109.98
42 3020-042-042 1,109.98
City of Palmdale
Landscape Maintenance Assessment District No. 2020-290
Fiscal Year 2022/23 Proposed Maximum Assessment
I.D. Assessor's Parcel Number
Fiscal Year 2022/23 Proposed
Maximum Assessment
43 3020-042-043 1,109.98
44 3020-042-044 1,109.98
45 3020-042-045 1,109.98
46 3020-042-046 1,109.98
47 3020-042-047 1,109.98
48 3020-042-048 1,109.98
49 3020-042-049 1,109.98
50 3020-042-050 1,109.98
51 3020-042-051 1,109.98
52 3020-042-052 1,109.98
53 3020-042-053 1,109.98
54 3020-042-054 1,109.98
55 3020-042-055 1,109.98
56 3020-042-056 1,109.98
57 3020-042-057 1,109.98
58 3020-042-058 1,109.98
59 3020-042-059 1,109.98
60 3020-042-060 1,109.98
61 3020-042-061 1,109.98
62 3020-042-062 1,109.98
63 3020-042-063 1,109.98
64 3020-042-064 1,109.98
65 3020-042-065 1,109.98
66 3020-042-066 1,109.98
67 3020-042-067 1,109.98
68 3020-042-068 1,109.98
69 3020-042-069 1,109.98
70 3020-043-001 1,109.98
71 3020-043-002 1,109.98
72 3020-043-003 1,109.98
73 3020-043-004 1,109.98
74 3020-043-005 1,109.98
75 3020-043-006 1,109.98
76 3020-043-007 1,109.98
77 3020-043-008 1,109.98
78 3020-043-009 1,109.98
79 3020-043-010 1,109.98
80 3020-043-011 1,109.98
81 3020-043-012 1,109.98
82 3020-043-013 1,109.98
83 3020-043-014 1,109.98
84 3020-043-015 1,109.98
City of Palmdale
Landscape Maintenance Assessment District No. 2020-290
Fiscal Year 2022/23 Proposed Maximum Assessment
I.D. Assessor's Parcel Number
Fiscal Year 2022/23 Proposed
Maximum Assessment
85 3020-043-016 1,109.98
86 3020-043-017 1,109.98
87 3020-043-018 1,109.98
88 3020-043-019 1,109.98
89 3020-043-020 1,109.98
90 3020-043-021 1,109.98
91 3020-043-022 1,109.98
92 3020-043-023 1,109.98
93 3020-043-024 1,109.98
94 3020-043-025 1,109.98
95 3020-043-026 1,109.98
96 3020-043-900 0.00
97 3020-043-901 0.00
97 Parcels $105,448.10
City of Palmdale
Engineer’s Report – Landscape Maintenance Assessment District No. 2020-290 18
10. REFERENCES
Beutz v. County of Riverside , 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007) Coder, Kim D. “Identified Benefits of Community Trees and Forests.” University of Georgia Cooperative Extension Service - Forest Resources Publication , October 1996.
Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) Kearney, Anne R. "Residential Development Patterns and Neighborhood Satisfaction: Impacts of Density and Nearby Nature." Environment and Behavior , 38, 112-139, 2006.
Manteca Unified School District v. Reclamation District No. 17 et al , C077906 (Cal. Ct. App. 2017) City Council Staff Report
DATE: JANUARY 12, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
ENGINEERING DIVISION
DISTRICT: 2
SUBJECT: NOTICE OF COMPLETION – ACCEPT PUBLIC IMPROVEMENTS FOR TRACT 66687 LOCATED AT FAIRWAY DRIVE, 600 FEE T
NORTH OF RANCHO VISTA BOULEVARD
ISSUE
Notice of Completion – Accept Public Improvements for Tract 66687 located at Fairway Drive, 600 feet north of Rancho Vista Boulevard.
RECOMMENDATION
Staff recommends that the City Council:
1. Accept the completed public improvements for Tract 66687 located at Fairway Drive, 600 feet north of Rancho Vista Boulevard.
2. Authorize the City Manager or his designee to file a Notice of Completion and release the security for the completed public improvements.
BACKGROUND
This project constructed public sewer improvements on Fairway Drive within Tract 66687.
The public improvements have been installed per the approved construction plan, inspected, and approved by City Public Works staff.
DISCUSSION
The required public improvements for the project listed in Exhibit “A” and shown in Exhibit “B” have been completed to the satisfaction of the City Engineer as required in the Subdivision/Development Improvement Agreement between the developer and the City. This council action will accept the public improvements as complete and will begin a one-year period, thereafter transferring maintenance responsibility of these improvements from the developer to the City of Palmdale. This council action will also initiate the City ’s release of applicable securities posted for this project in accordance Report to Mayor and City Council
Re: Acceptance of Completed Public Improvements
January 12, 2022