Cities Index.
Agenda packet, first session

Palmdale City Council
February 2, 2022

Document
Agenda packet, first session
Meeting
February 2, 2022
Body
Palmdale City Council
Pages
44
Original file
21.0 MB
Text extracted from the city's file for reading and search. Open the original on d3n9y02raazwpg.cloudfront.net. That file is the official record.

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 February 2, 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: +1 253 215 8782 Webinar ID: 864 5956 1721 Passcode: 561826
Webinar attendee link https://us06web.zoom.us/j/86459561721? pwd=dG9OZXBPRTdoV2l3NndyTmd2WmJ2Zz09.

Verbal comments must be limited to three (3) minutes. Public comments submitted will become part of the official meeting record.

CITY COUNCIL MEETING

SUCCESSOR AGENCY

CITY COUNCIL CHAMBERS
38300 SIERRA HIGHWAY

SUITE B
PALMDALE, CA 93550

WEDNESDAY, FEBRUARY
2, 2022
5:00 PM
7:00 PM
www.cityofpalmdale.org

WELCOME
City Council
Wednesday, February
2, 2022
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.

If you require oral Spanish translation, please contact the City Clerk’s Office at (661) 267- 5151 at least 72 hours prior to the meeting.

Your courtesy is requested to help our meetings run smoothly. If you’ll be kind enough to follow these simple rules, we can make the best possible use of your time and ours:

Please refrain from public displays or outbursts, such as unsolicited applause, comments, cheering, foul language or obscenities.

Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be asked to leave the meeting.

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 HOFBAUER, MAYOR PRO TEM LOA,

COUNCILMEMBERS 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, February
2, 2022

4. PRESENTATION BY CITY ATTORNEY

4.1 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Donald D'Angelo V. County of Los Angeles, et al.

Los Angeles County Superior Court
Case No. 21AVC00441

This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

4.2 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Dimartino v. City of Palmdale
Los Angeles County Superior Court
Case No. 21AVCV00482

This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

4.3 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
CV Communities v. AVEK, et al.

Los Angeles County Superior Court
Case No. BC66107

This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

4.4 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: One case.

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, February
2, 2022

4.5 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: Two case.

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.

4.6 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Ricci v. City of Palmdale, et al.

Los Angeles County Superior Court
Case No. 22STCV01269
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

4.7 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: Patricia Nevarez
City Claim No.: 2022-005
Date Filed: 1/27/22
Date of Loss: Various

4.8 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: Shanae Smith
City Claim No.: 2022-005
Date Filed: 1/10/22
Date of Loss: Various

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 City Council
Wednesday, February
2, 2022
TROOPS

8. PRESENTATIONS

8.1 Presentation of the City of Palmdale's Warrior Award to Miguel Lopez, I.T.

Technician.

8.2 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. (Voice Vote - Requires a majority to waive.)

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. 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.

11.1 Receive and file the monthly and quarterly investment activity reports for December 2021. (Staff Reference: Finance Manager Kang)

01_Staff_Report_-_Investment_Report_December_2021_Qtr_2.docx

02_December_2021_Monthly_&_Quarterly_Investment_Report.pdf

11.2 Adopt Resolution No. CC 2022-016, a Resolution of the City Council of the City of Palmdale approving and authorizing the execution and delivery of a supplemental agreement No. 5 to amended and restated fiscal agent agreement related to Ritter Ranch, and authorizing actions related thereto. (Staff Reference: Finance Manager Kang).

01_Staff_Report_Ritter_Ranch_Fifth_Supplement_to_Fiscal_Agent_Agreement_1- 25-22.docx

02_Reso 2022-016 Apprv SuppNo5 v2.docx

03_Consent of Borrower to Modification of Amended and Restated Fiscal Agent Agreement.pdf
City Council
Wednesday, February
2, 2022

04_5th Amendment to Fiscal Agent Agreement A-4261.pdf

05_Coverltr J18057 011022.pdf

06 Officers Certificate SuppNo5 J18021 1-25-22.pdf

07_Petition Deferral Pymt J18027.pdf

11.3 Approve Legal Services Agreement Between the City of Palmdale and Silver & Wright, LLP in the amount of $500,000. (Staff Reference: City Attorney Beck)

1_19_2021_Staff_Report_Silver___Wright_Agreement (4).docx

[Draft] Legal Services Agreement Between the City of Palmdale and Silver & Wright, LLP (A-7783).pdf

11.4 Approve Agreement with Management Partners, Inc. to Provide Consulting Services Regarding Misdemeanor Prosecutions within the City of Palmdale. (Staff Reference: City Attorney Beck)

2_2_2022_Staff_Report_-_Approve_Agreement_No._A-
7784_Between_the_City_of_Palmdale_and_Management_Partners__Inc. (1).docx

_Draft__City_of_Palmdale_-_Management_Partners__Inc.__A-7784_.pdf

11.5 Approve Final Tract Map No. 74927, (located at the northwest corner of Pevero Court & Range Drive. (Staff Reference: Director of Public Works Heffernan)

TR 74927 Approval - Staff Report.docx

TR 74927 Final.pdf

11.6 Notice of Completion - Accept public improvements for Palmdale Aerospace Academy Street Widening located at 35th Street East south of Palmdale Boulevard. (Staff Reference: Director of Public Works Heffernan)

SR-02022022 18-23A.docx

EXHIBIT A 18-23A.docx

EXHIBIT B.docx

Signed NOC.pdf

11.7 Approve Supplemental Agreement No. 3 with RSB Group, Inc. for PN 784, Rancho Vista Park, in the amount of $218,855.81. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden)

PN_784_Rancho_Vista_Park_Supplemental_No._3_Staff_Report__1_.docx

RSB_SA_3_220202_Contractorsigned.pdf

11.8 Adopt Resolution No. CC 2022-018, a Resolution of the City Council of the City of Palmdale authorizing submission of a Notification of the City's Intent to Comply with Senate Bill (SB) 619, to the State Department of Resources Recycling and Recovery (Calrecycle). (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden)

SR - Resoultion No. CC 2022-018 Final.docx

FINAL - Resolution CC 2022-018.doc

SB 619 App.docx
City Council
Wednesday, February
2, 2022

11.9 Approve the minutes from the previous meetings. (Staff Reference: City Clerk/Agency Secretary Smith)

CC/SA/PCA - January 12, 2022
CC - January 19, 2022

CC-SA-PCA 01 12 2021 final.pdf

CC Minutes 01 19 2022.pdf

12. PUBLIC HEARING

12.1 Public Hearing to review and consider the redistricting draft maps recommended by the Advisory Redistricting Commission. (Staff Reference: Acting City Manager Perez)

2.2.2022 Public Hearing to Review and Consider the Redistricting Draft Maps Recommended by the Advisory Redistricting Commission.docx

Reso. No. 2021-031.pdf

Public_208.pdf

ALVA-Map.pdf

Palmdale_AVP_01242022_legals.pdf

Outreach Summary Report - Palmdale.pdf

13. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON

THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT

PUBLIC EXPENSE

13.1 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
• 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

City Council
Wednesday, February
2, 2022

13.2 MEETINGS ATTENDED AT PUBLIC EXPENSE

Bettencourt Informational Report 020222.docx

14. CITY MANAGER’S REPORT

15. CITY COUNCIL REQUESTS FOR NEW AGENDA ITEMS

16. Adjourn
meeting to February 16, 2022 at 7:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

City Council
Wednesday, February
2, 2022
City Council Staff Report
DATE: FEBRUARY 2, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE MONTHLY AND QUARTERLY
INVESTMENT ACTIVITY REPORTS FOR DECEMBER 2021.

ISSUE
Receive and file the monthly and quarterly investment activity reports for December 2021.

RECOMMENDATION
Staff recommends that the City Council accept the monthly and quarterly investment activity reports for City of Palmdale and Successor Agency for December 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 present ed 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 o btained 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 and Quarterly Reports on Investments
February 2, 2022

Page 2 ends

Compliance with Investment Policy
For December, the invested portfolio amount for the City of Palmdale totaled $232,320,784, an increase of $1,402,465 from the previous month and an increase of $42,625,052 in comparison to last year. The increase in overall portfolio balance from the previous month is a result of interest earned on investments during the month. There were no maturities of securities during the month of December. The City purchased a total of eleven new securities during the month for a total of $71,103,743. Funds for these purchases were previously being held in the City and the PCA LAIF accounts.

The par value of Successor Agency’s portfolio as of December was $5,740,875. The balance decreased by $1,012,631 from last month due to quarterly debt service payments made during the month.

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 $64,967,143 compared to November’s balance of $134,967,143. The decrease in balance is due to funds being withdrawn from LAIF and used for the purchase of eleven new securities during the month.

Successor Agency LAIF balance at the end of June was $3,695,024, a 28.8 percent decrease from June, and a decrease of $1,500,000 from the prior month. The decrease in balance for the year is due to funds being withdrawn from LAIF account to be used to support current financial obligations and debt service payments.

Report to Mayor and City Council
Re: Monthly and Quarterly Reports on Investments
February 2, 2022

Page 3 ends

CAMP’s balance for City of Palmdale is $248,736 compared to November’s balance of $248,725. The slight increase is due to interest received during the month.

The interest rates presented are the most current rates available as of the date of this report. As of December 31, 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 November were at .20 percent and .05 percent. Both rates have been steadily declining since March 2020. This time last year, LAIF and CAMP rates were at 0.54 percent and .12, respectively.

The chart above shows both the Local Agency Investment Fund and California Management Program’s average monthly yields beginning March 2021 through December 2021. The graph depicts the prolonged period of declining rates and shows that rates have begun to level off from September through December 2021.

We anticipate that rates will remain low in the upcoming months, with slight fluctuations, 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.

0.36% 0.34% 0.32%

0.26%

0.22% 0.22% 0.21% 0.20% 0.20% 0.21%

0.08% 0.06% 0.05% 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%
Q3 Mar Apr May Q4 June Jul Aug Q1 Sep Oct Nov Q2 Dec
Pooled Investments Monthly Yields

LAIF CAMP
Report to Mayor and City Council
Re: Monthly and Quarterly Reports on Investments
February 2, 2022

Page 4 ends

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 December 31, 2021.

In December, there were no securities that were called or matured. The City purchased a total of eleven new securities, totaling $71,103,743. Five of those securities are U.S.

Treasury Notes, and six are Government Agency paper.

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 December 31, 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: Ronda Perez, Acting 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

3. Quarterly Report on City of Palmdale Investments

4. Quarterly Report on Successor Agency Investments

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
December 31 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 12-17-21 12-15-23 CITY 91282CBA8 U.S. Treasury Note 0.56 10,000,000.00 9,913,130.25 9,913,198.93 12-17-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note (UBS) 0.85 10,000,000.00 10,045,505.25 10,046,054.70 12-22-21 12-15-23 CITY 91282CBA8 U.S. Treasury Note 0.56 5,000,000.00 4,957,270.88 4,957,391.07 12-22-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note 0.88 5,000,000.00 5,018,208.38 5,019,169.92 12-20-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note (Stifel) 1.00 5,000,000.00 5,017,187.50 5,018,011.68 TOTAL U.S. TREASURY SECURITIES 73,815,000.00$ 76,016,953.20$ 76,085,349.90$

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 12-17-21 11-12-25 CITY 3134GXBM5 FHLMC Note 1.15 1,150,000.00 1,125,785.50 1,126,456.33 12-17-21 12-30-24 CITY 3130AQDY6 FHLB 1.00 6,750,000.00 6,750,000.00 6,750,000.00 12-17-21 06-23-25 CITY 3133ENHW3 FFCB 1.17 10,000,000.00 10,000,000.00 10,000,000.00 12-20-21 07-30-25 CITY 3136G4ZP1 FANNIE MAE 0.65 3,500,000.00 3,444,175.00 3,453,085.42 12-20-21 09-24-25 CITY 3134GWUG9 FREDDIE MAC 0.57 10,000,000.00 9,806,600.00 9,820,375.00 12-21-21 12-22-26 CITY 3133ENJC5 FFCB 1.29 5,000,000.00 5,000,000.00 5,000,000.00 c = callable
TOTAL GOVERNMENT AGENCY PAPER 75,400,000.00$ 75,451,026.13$ 75,524,427.20$

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
December 31 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 30,060,052.63 30,060,052.63 30,060,052.63 06/23/08 n/a PCA ACCOUNT 40-19-060 0.78 17,194,291.68 17,194,291.68 17,194,291.68 n/a ARPA ACCOUNT 19-19-004 0.78 17,700,351.50 17,700,351.50 17,700,351.50 TOTAL LAIF ACCOUNTS 64,954,695.81$ 64,954,695.81$ 64,954,695.81$

CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM
6080-01 n/a CITY ACCOUNT 6080-01 0.30 248,736.10 248,736.10 248,736.10 TOTAL CAMP ACCOUNTS 248,736.10$ 248,736.10$ 248,736.10$

UBS FINANCIAL SERVICES
n/a n/a CITY ACCOUNT 0.00 337,500.00 337,500.00 337,500.00 TOTAL UBS FINANCIAL SERVICES ACCOUNTS 337,500.00$ 337,500.00$ 337,500.00$ TOTAL CITY INVESTMENTS 229,535,931.91$ 232,035,893.09$ 232,320,783.22$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
December 31 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 0.01 154,938.36
City Held Cash(Fund 736-114000) ($255,912.67)
TOTAL SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1 155,044.98$

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 2,585,366.98
04-06-95 n/a BOND 95420887 0.00 0.15
City Held Cash(Fund 738-114000) ($1,000,675.82)
TOTAL RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1 2,585,367.13$

BOND PROCEEDS
ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-01-19 n/a SP TAX - B BOND 242969000 0.00 107,982.54
08-01-19 n/a RESERVE 242969003 0.00 722,959.99
08-01-19 n/a SP TAX - REFUNDING BOND 242969004 0.01 15,149.09 08-01-19 n/a SP TAX - REFUNDING BOND COI242969005 0.01 300.42 City Held Cash(Fund 734-114000) $900,917.97
TOTAL ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1 846,392.04$

LIBRARY INVESTMENTS

FISCAL AGENT CASH

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
December 31 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 0.01 639,070.03
City Held Cash
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021639,084.85$

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 64,453.61
11-08-06 n/a ADM EXP 106844002 0.01 1,594.37
11-08-06 n/a RESERVE FUND 106844003 0.01 105,753.63
City Held Cash(Fund 739-114000) $127,799.09
TOTAL 2006-1 Godde Hill Estate Sewer Improvements LOIB 171,801.61$

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
December 31 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 2,979,524.89
TOTAL 2013 HA TRANSIT VILLAGE HOMES ESCROW 2,979,524.89$ 2015 HA DEBT SERVICE RESERVE
Fiscal Agent: Bank of America
11-19-15 n/a DEBT SVC RESERVE 1257964992 0.08 39,117.78 TOTAL 2015 HA DEBT SERVICE RESERVE 39,117.78$

PARS RESTRICTED CASH FOR PENSION STABILIZATION TRUST FUND 05-23-18 n/a CITY 104790895775 Public Agency Retirement Services2.60 7,144,999.67 TOTAL PARS PENSION TRUST FUND 7,144,999.67$

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 76,373.18
09-03-15 n/a INTEREST ACCT 277067001 0.01 7.06
09-03-15 n/a BOND RESERVE 277067003 0.00 218,016.15
09-03-15 n/a REPAIR & REPLACE FUND 277067004 0.00 1,085,624.44 TOTAL 2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS 1,380,020.83$

FISCAL AGENT CASH

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
December 31 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) $516,817.13
GRAND TOTAL - FISCAL AGENT CASH 15,302,273.56$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
December 31 2021
Cash on Hand 16,741,440$
($1,660,341)
Pooled Cash Investments ($6,178,672)
$6,488,904
City: 221,741,248$ $0 Insur Fund: $10,579,536 232,320,784$
Library Investments $12,447

Subtotal 247,724,562$

City/AD/CFD/PCA/PFA/HA
Fiscal Agent Cash 15,302,274$ *

Grand total 263,026,836$

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 December 31, 2021.

S:\Cash and Investment\Investment\Investment Reports\21-22\06 December 2021\[06 December 2021 Investment Report City.xls]LAIF_CAMP Transactions

SUMMARY OF CASH AND INVESTMENTS

Page 1 of 1 ends

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS

POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF), CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP), & UBS FINANCIAL SERVICES December 31, 2021

TRANSACTION INTEREST

DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
CITY ACCOUNT 98-19-620
Beginning Balance 65,060,052.63$
12/16/21 (35,000,000.00)$

Subtotal -$ (35,000,000.00)$ -$ 30,060,052.63$ PCA ACCOUNT 40-19-060
Beginning Balance 52,194,291.68$
12/16/21 (35,000,000.00)$
Subtotal -$ (35,000,000.00)$ -$ 17,194,291.68$ 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 248,725.47$
12/31/21 10.63 $
Subtotal -$ -$ 10.63$ 248,736.10$ UBS Financial Services
Beginning Balance 38,789.76$
12/06/21 (175.00) $
12/07/21 0.06$
12/16/21 21,085,709.96$
12/17/21 (9,913,198.93)$
12/17/21 (1,126,456.33)$
12/17/21 (10,046,054.70)$
12/21/21 9,976,560.99$
12/22/21 (4,957,391.07)$
12/22/21 (5,019,169.92)$
12/31/21 (38,614.82)$
12/31/21 33,750.00$
12/31/21 65,625.00$
12/31/21 105,000.00$
12/31/21 31,875.00$
12/31/21 101,250.00$
Subtotal 31,062,270.95$ (31,101,060.77)$ 337,500.06$ 337,500.00$ Total 31,062,270.95$ (101,101,060.77)$ 337,510.69$ 65,553,378.74$ 65,304,642.64$
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
December 31, 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 91282CBA8 U.S. Treasury Note 12-17-21 12-15-23 10,000,000.00$ (86,869.75)$ 9,913,130.25$ 68.68$ 9,913,198.93$ 91282CDN8 U.S. Treasury Note (UBS) 12-17-21 12-15-24 10,000,000.00$ 45,505.25$ 10,045,505.25$ $549.45 10,046,054.70$ 91282CBA8 U.S. Treasury Note 12-22-21 12-15-23 5,000,000.00$ (42,729.12)$ 4,957,270.88$ 120.19$ 4,957,391.07$ 91282CDN8 U.S. Treasury Note 12-22-21 12-15-24 5,000,000.00$ 18,208.38$ 5,018,208.38$ 961.54$ 5,019,169.92$ 91282CDN8 U.S. Treasury Note (Stifel) 12-20-21 12-15-24 5,000,000.00$ 17,187.50$ 5,017,187.50$ 824.18$ 5,018,011.68$ 3134GXBM5 FHLMC Note 12-17-21 11-12-25 1,150,000.00$ (24,214.50)$ 1,125,785.50$ $670.83 1,126,456.33$ 3130AQDY6 FHLB 12-17-21 12-30-24 6,750,000.00$ -$ 6,750,000.00$ -$ 6,750,000.00$ 3133ENHW3 FFCB 12-17-21 06-23-25 10,000,000.00$ -$ 10,000,000.00$ -$ 10,000,000.00$ 3136G4ZP1 FANNIE MAE 12-20-21 07-30-25 3,500,000.00$ (55,825.00)$ 3,444,175.00$ 8,910.42$ 3,453,085.42$ 3134GWUG9 FREDDIE MAC 12-20-21 09-24-25 10,000,000.00$ (193,400.00)$ 9,806,600.00$ 13,775.00$ 9,820,375.00$ 3133ENJC5 FFCB 12-21-21 12-22-26 5,000,000.00$ -$ 5,000,000.00$ -$ 5,000,000.00$ 71,400,000.00$ (322,137.24)$ 71,077,862.76$ 25,880.29$ 71,103,743.05$ Total Number of Transactions: 11

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS

POOLED CASH - INVESTMENTS PURCHASED
December 31, 2021
10 SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
December 31, 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 3,695,074.29
TOTAL LAIF ACCOUNTS 3,695,074.29$

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 0.01 527,730.88
08-20-02 n/a INTEREST ACCT 94460701 0.01 28.91
08-20-02 n/a PRINCIPAL ACCT 94460702 0.01 0.15

TOTAL CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) 527,759.94$

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 $527,765

SUMMARY OF CASH AND INVESTMENTS
Cash on Hand 1,518,036$ $1,537,853
($25,599)
Pooled Cash Investments 3,695,074$ $5,782
$1,518,036
Successor Agency Fiscal Agent Cash $527,765*

Grand total 5,740,875$

* The interest rate quoted on LAIF and Fiscal Agent/Trustee accounts is the most current rate available.

LAIF interest rates are as of December 31, 2021.

SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS

POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF)
December 31, 2021

TRANSACTION INTEREST

DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
SA ACCOUNT 65-19-035
Beginning Balance 5,195,074.29$
12/01/21 (1,500,000.00)$
Subtotal -$ (1,500,000.00)$ -$ 3,695,074.29$ Portfolio Review and Analysis Prepared for:

City of Palmdale
As of Date: 12/31/2021
Date of Analysis: 01/10/2022
For Distribution to Institutional Clients Only

REFER TO THE LAST PAGE OF THIS REPORT FOR STIFEL FIXED INCOME CAPITAL MARKETS DISCLOSURES Account Executive: Bill Blackwill
Pricing as of: 12/31/2021
Palmdale, CA

Book Value
229,198
# Securities
53 Average Size (Book)
4,324
Book Yield

1.18 Market Yield

0.96 $ Gain/Loss
1,085
% Gain/Loss

0.5%
Average Life

1.56 Average Life +300bps

2.03 % Price Change +100bps
-1.84
% Price Change +300bps
-5.52
Effective Duration

1.78 Effective Convexity
-0.11
AFS / HTM%
100% / 0%
Fixed / Floating
100% / 0%
ESG/Green Par (000's)
$0 / $0
Portfolio Overview

Page 2 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Historical Portfolio Overview
12/31/2021
09/30/2021
06/30/2021
03/31/2021
Book Value
229,198
229,718
220,812
182,172
Book Yield

1.18 1.18

1.12 1.12
Book Yield (+100)

1.18 1.18

1.12 1.12
Book Yield (+300)

1.18 1.18

1.12 1.12
Book Yield (-100)

1.18 1.18

1.12 1.12
WAL

1.56 0.84

0.76 0.56
WAL (+100)

1.99 1.17

1.06 0.74
WAL (+300)

2.03 1.18

1.06 0.74
WAL (-100)

1.14 0.78

0.71 0.52
% Price Change (+100)
-1.8%
-1.1%
-1.0%
-0.7%
% Price Change (+300)
-5.5%
-3.3%
-2.9%
-2.1%
% Price Change (-100)

1.5%

0.9%

0.8%

0.6%
Effective Duration

1.78 1.00

0.91 0.63
Effective Convexity
-0.11
-0.36
-0.23
-0.15
$ Gain/Loss
1,085
2,626
2,254
1,507
% Gain/Loss

0.5%

1.1%

1.0%

0.8%
Principal Cash Flow 2 yrs out
69%
83%
89%
88%
Principal Cash Flow 2 yrs out (+100)
52%
71%
78%
83%
Principal Cash Flow 2 yrs out (+300)
52%
71%
78%
83%
Principal Cash Flow 2 yrs out (-100)
80%
83%
89%
88%

Page 3 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Portfolio Sector Summary
Portfolio
Par
Book
Market
% Price Change
Gain/(Loss)
Effective
AFS
Sector
%
Value
Cpn
Maturity
Value
Yield
Value
Yield
-100
+100
+300
$
%
WAL
Dur
Cvx
%
Treasury (15)

32.2%
73,815

1.57 2.6 yrs
73,815

1.57 75,161

0.85 2.6
-2.5
-7.2
1,346

1.8%

2.56 2.51

0.08 100 %
Agency Bullet (4)

4.8%
11,000

1.93 2.7 yrs
11,000

1.93 11,235

0.90 2.7
-2.6
-7.5
235

2.1%

2.70 2.63

0.09 100 %
Callable Agency (14)

28.1%
64,400

0.81 3.5 yrs
64,400

0.81 63,696

1.37 1.7
-2.9
-9.2
-704
-1.1%

1.85 2.69
-0.50
100 %
Treasury/Agency (33)

65.1%
149,215

1.27 3.0 yrs
149,215

1.27 150,092

1.07 2.2
-2.7
-8.0
877

0.6%

2.26 2.59
-0.17
100 %
Finance (1)

0.7%
1,500

2.80 1.0 yrs
1,500

2.80 1,527

0.52 0.8
-0.8
-2.5
27 1.8%

0.79 0.79

0.00 100 %
Industrial (6)

4.8%
11,075

1.87 1.1 yrs
11,075

1.87 11,206

0.62 1.1
-1.1
-3.3
131

1.2%

1.11 1.11

0.01 100 %
Corporate (7)

5.5%
12,575

1.98 1.1 yrs
12,575

1.98 12,733

0.61 1.1
-1.1
-3.2
158

1.3%

1.07 1.07

0.01 100 %
NCD (9)

1.0%
2,205

2.86 0.8 yrs
2,205

2.84 2,255

0.21 0.8
-0.8
-2.4
50 2.3%

0.82 0.83

0.01 100 %
CD (9)

1.0%
2,205

2.86 0.8 yrs
2,205

2.84 2,255

0.21 0.8
-0.8
-2.4
50 2.3%

0.82 0.83

0.01 100 %
Cash & Other (4)

28.4%
65,203

0.78 0.1 yrs
65,203

0.78 65,203

0.78 0.1
-0.1
-0.3
0 0.0%

0.08 0.09

0.00 100 %
Other (4)

28.4%
65,203

0.78 0.1 yrs
65,203

0.78 65,203

0.78 0.1
-0.1
-0.3
0 0.0%

0.08 0.09

0.00 100 %
Total (53)
100.0%
229,198

1.18 2.0 yrs
229,198

1.18 230,284

0.96 1.5
-1.8
-5.5
1,085

0.5%

1.56 1.78
-0.11
100 %

Page 4 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Shocked Analysis
-200
-100
Base
+100
+200
+300
+400
Par Value
229,198
229,198
229,198
229,198
229,198
229,198
229,198
Book Value
229,198
229,198
229,198
229,198
229,198
229,198
229,198
Market Value
236,568
233,775
230,284
226,054
221,767
217,570
213,501
Gain/(Loss)
7,369
4,576
1,085
-3,145
-7,431
-11,629
-15,698
Gain/(Loss) %

3.2%

2.0%

0.5%
-1.4%
-3.2%
-5.1%
-6.9%
Gain/(Loss) % - Chg from Base

2.7%

1.5%

0.0%
-1.8%
-3.7%
-5.5%
-7.3%
Book Price
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Book Yield

1.18 1.18

1.18 1.18

1.18 1.18

1.18 Market Price
103.22
102.00
100.47

98.63 96.76

94.93 93.15
Market Yield
-1.51
-0.43

0.96 1.88

2.88 3.89

4.91 WAL

1.14 1.14

1.56 1.99

2.03 2.03

2.03

Page 5 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Price Risk & Market Value Change by Sector
AFS
HTM
% Change in Market Value from Level
Eff
% Change in Market Value from Level
Eff
Sector
-100
Mkt Value
+100
+200
+300
Dur
-100
Mkt Value
+100
+200
+300
Dur
Treasury/Agency

2.2%
150,092
-2.7%
-5.4%
-8.1%

2.6%
Corporate

1.1%
12,733
-1.1%
-2.2%
-3.2%

1.1%
CD

0.8%
2,255
-0.8%
-1.6%
-2.4%

0.8%
Other

0.1%
65,203
-0.1%
-0.2%
-0.3%

0.1%
Total

1.5%
230,284
-1.8%
-3.7%
-5.5%

1.8%
Scenario Market Val
233,775
230,284
226,054
221,767
217,570
Scenario Gain/Loss
4,576
1,085
-3,145
-7,431
-11,629
Total Portfolio (AFS + HTM):
% Change in Market Val from Level
-200 bps

2.7%
-100 bps

1.5%
Level Market Val
230,284
+100 bps
-1.8%
+200 bps
-3.7%
+300 bps
-5.5%
+400 bps
-7.3%
Effective Duration

1.78 Effective Convexity
-0.11

Page 6 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Peer Group Comparison
As of
Book
G/L
Book
Average Life
% Price Change
Effective
UST
Fix
Fix
Flt
Agy
Sm
Prv
CD &
%
%
Peer
Date
Value
%
Yield
Base
-100
+300
-100
+100
+300
Dur
Cvx
Agy
MBS
ARM
CMO
CMO
CMBS
Bus.

Label
Muni
Corp
Oth
Fixed
AFS
1 12/21
248,708
-0.1

1.93 2.2

2.1 2.2

2.2 -2.1
-6.2

2.2 0.1
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
2 11/21
202,145
-1.0

0.31 1.7

0.6 2.5

1.5 -2.3
-6.9

2.2 -0.3
79%
0%
0%
0%
0%
0%
0%
0%
21%
0%
0%
100%
100%
3 12/21
186,188

0.4 1.57

2.7 2.6

2.7 2.6
-2.6
-7.4

2.6 0.1
68%
0%
0%
0%
0%
0%
0%
0%
10%
11%
10%
100%
100%
4 11/21
294,911
-0.6
-0.75

1.0 0.4

1.6 0.8
-1.5
-4.6

1.4 -0.4
64%
0%
0%
0%
0%
0%
0%
0%
29%
7%
0%
100%
100%
5 10/21
142,561
-0.1

0.33 1.2

1.0 1.4

1.2 -1.3
-4.0

1.3 -0.1
89%
0%
0%
0%
0%
0%
0%
0%
4%
0%
7%
100%
100%
6 12/21
120,897
-0.7

0.46 1.5

1.2 1.9

1.5 -1.7
-5.1

1.6 0.0
28%
0%
0%
0%
0%
0%
0%
0%
38%
1%
33%
100%
100%
7 09/21
110,143

0.0 0.43

0.9 0.6

1.8 0.8
-1.6
-4.9

1.3 -1.0
44%
0%
0%
0%
0%
0%
0%
0%
0%
0%
55%
100%
100%
8 09/21
101,494

0.0 0.78

1.7 1.4

3.0 1.2
-2.7
-8.1

2.3 -1.6
50%
0%
0%
0%
0%
0%
0%
0%
17%
20%
13%
99%
100%
9 11/21
98,932
-0.8

0.89 1.8

0.7 3.3

1.6 -2.8
-8.8

2.6 -0.7
98%
0%
0%
0%
0%
0%
0%
0%
0%
0%
2%
100%
100%
10 11/21
49,455

0.2 0.48

0.5 0.4

0.6 0.5
-0.6
-1.7

0.5 0.0
2%
0%
0%
0%
0%
0%
0%
0%
0%
7%
92%
100%
100%
11 10/21
49,225

0.4 0.64

0.4 0.4

0.5 0.4
-0.5
-1.4

0.5 -0.1
3%
0%
0%
0%
0%
0%
0%
0%
2%
4%
92%
100%
100%
12 10/21
48,396

0.3 0.99

2.5 2.5

2.6 2.6
-2.5
-7.2

2.5 0.1
63%
0%
0%
0%
0%
1%
0%
9%
7%
16%
3%
96%
100%
13 09/21
46,875

3.7 2.24

3.4 3.3

3.8 3.4
-3.4
-9.9

3.4 -0.1
47%
3%
0%
0%
0%
0%
0%
0%
6%
28%
15%
97%
100%
14 12/21
44,873
-1.1

0.82 2.4

1.1 4.0

2.1 -3.0
-9.6

2.8 -0.5
73%
1%
0%
1%
0%
0%
0%
0%
0%
11%
13%
95%
100%
15 09/21
36,897
-0.1

1.20 2.1

1.0 4.1

1.9 -3.4
-10.4

3.0 -1.5
67%
0%
0%
0%
0%
0%
0%
0%
1%
0%
32%
99%
100%
16 10/21
426,138
-0.3
-3.23

2.3 2.2

3.1 2.3
-2.4
-7.3

2.4 -0.1
56%
0%
0%
0%
0%
0%
0%
0%
33%
12%
0%
100%
100%
17 12/21
31,578
-1.7

0.86 2.7

0.8 3.9

2.4 -3.3
-10.1

3.2 -0.2
99%
0%
0%
0%
0%
0%
0%
0%
0%
0%
1%
100%
100%
18 12/21
20,613
-1.4

0.77 2.4

0.5 3.5

2.0 -3.1
-9.3

2.9 -0.2
99%
0%
0%
0%
0%
0%
0%
0%
0%
0%
1%
100%
100%
19 09/21
20,315
-0.3

1.07 2.6

2.0 3.6

2.6 -3.3
-9.7

3.1 -0.5
54%
0%
0%
0%
0%
0%
0%
0%
1%
6%
39%
100%
100%
20 09/21
15,237

0.8 1.55

2.9 2.9

2.9 2.8
-2.7
-7.9

2.8 0.1
0%
0%
0%
0%
0%
0%
0%
0%
40%
31%
30%
100%
100%
21 09/21
13,837

1.7 1.68

2.5 2.5

2.6 2.5
-2.4
-7.1

2.5 0.1
0%
0%
0%
0%
0%
0%
0%
0%
25%
38%
37%
100%
100%
22 12/21
11,000
-1.4

0.81 2.7

0.3 4.0

1.8 -3.4
-10.5

3.2 -0.6
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
23 12/21
7,541
-0.4

1.31 3.3

3.0 3.5

3.2 -3.3
-9.5

3.3 0.1
17%
0%
0%
0%
0%
0%
0%
0%
0%
3%
79%
100%
100%
24 12/21
4,442
-2.0

0.67 2.8

0.5 3.9

2.3 -3.5
-10.4

3.3 -0.1
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
25 09/21
490

0.8 2.14

0.4 0.4

0.4 0.4
-0.4
-1.1

0.4 0.0
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
50%
0%
Avg
93,316
-0.2

0.80 2.0

1.4 2.7

1.9 -2.4
-7.2

2.3 -0.3
56%
0%
0%
0%
0%
0%
0%
0%
9%
8%
26%
97%
96%
Port
229,198

0.5 1.18

1.6 1.1

2.0 1.5
-1.8
-5.5

1.8 -0.1
65%
0%
0%
0%
0%
0%
0%
0%
0%
5%
29%
100%
100%
Diff
135,883

0.6 0.38
-0.5
-0.2
-0.7
-0.3

0.5 1.6
-0.5

0.2 9%
0%
0%
0%
0%
0%
0%
0%
-9%
-2%
3%
3%
4%

Page 7 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Yield and Average Life Peer Comparison
Price Risk Peer Comparison
Each box contains the range of your peer group, the top and bottom of the boxes being the max and min. The red box is the avg. of your peers within the range and the gray dot represents your position.

Page 8 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Cash Flow and Yield Rolloff - Next 12 Months
Yield Rolloff
Month
Begin BY
Principal CF
Rolloff Yld
Ending BY
Jan 2022

1.18 65,203

0.78 1.34
Feb 2022

1.34 0

0.00 1.34
Mar 2022

1.34 0

0.00 1.34
Apr 2022

1.34 0

0.00 1.34
May 2022

1.34 2,225

2.65 1.33
Jun 2022

1.33 0

0.00 1.33
Jul 2022

1.33 0

0.00 1.33
Aug 2022

1.33 0

0.00 1.33
Sep 2022

1.33 7,750

1.21 1.33
Oct 2022

1.33 1,500

2.80 1.32
Nov 2022

1.32 10,000

1.17 1.33
Dec 2022

1.33 4,000

2.19 1.30
Shocked Principal and Interest Cash Flow Analysis
Year
-200
-100
Base
+100
+200
+300
+400
Jan 2022
79,786
79,786
65,271
65,271
65,271
65,271
65,271
Feb 2022
3,196
3,196
45 45
45 45
45 Mar 2022
27,129
27,129
90 90
90 90
90 Apr 2022
5,115
5,115
136
136
136
136
136
May 2022
2,330
2,330
2,338
2,338
2,338
2,338
2,338
Jun 2022
10,341
10,341
690
690
690
690
690
Jul 2022
13 13
24 24
24 24
24 Aug 2022
38 38
43 43
43 43
43 Sep 2022
1,068
1,068
7,864
1,097
1,097
88 88
Oct 2022
1,611
1,611
1,649
1,649
1,649
135
135
Nov 2022
70 70
10,127
78 78
78 78
Dec 2022
4,545
4,545
4,591
4,591
4,591
3,581
3,581

Page 9 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Cash Flow and Yield Rolloff - Next 10 Years
Yield Rolloff
Year
Begin BY
Principal CF
Rolloff Yld
Ending BY
2022

1.18 90,678

1.00 1.30
2023

1.30 56,870

1.30 1.30
2024

1.30 64,650

1.04 2.30
2025

2.30 14,000

2.25 2.50
2026

2.50 3,000

2.50 2027
2028
2029
2030
2031
Shocked Principal and Interest Cash Flow Analysis
Year
-200
-100
Base
+100
+200
+300
+400
2022
135,242
135,242
92,867
76,144
76,144
75,146
75,146
2023
52,224
52,224
58,492
47,683
47,683
48,700
48,700
2024
28,714
28,714
65,504
46,964
46,975
46,975
46,975
2025
14,391
14,391
14,391
52,307
52,356
52,356
52,356
2026
3,038
3,038
3,038
12,096
12,123
12,123
12,123

Page 10 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Sector Cash Flow and Yield Rolloff - Next 12 Months
Jan 22
Feb 22
Mar 22
Apr 22
May 22
Jun 22
Jul 22
Aug 22
Sep 22
Oct 22
Nov 22
Dec 22
Bk Yld Chg
Treasury/Agency
Cash Flow
11 43
74 95
54 668
11 43
6,840
95 10,102
3,581
End BY

1.27 1.27

1.27 1.27

1.27 1.27

1.27 1.27

1.28 1.28

1.29 1.27

0.00 Corporate
Cash Flow
12 0
14 39
1,039
21 12
0 1,022
1,553
12 1,010
End BY

1.98 1.98

1.98 1.98

1.92 1.92

1.92 1.92

1.85 1.69

1.69 1.60
-0.38
CD
Cash Flow
2 2
2 2
1,245
1 1
1 1
1 12
1 End BY

2.84 2.84

2.84 2.84

3.13 3.13

3.13 3.13

3.13 3.13

3.13 3.13

0.29 Other
Cash Flow
65,246
0 0
0 0
0 0
0 0
0 0
0 End BY

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 Total
Cash Flow
65,271
45 90
136
2,338
690
24 43
7,864
1,649
10,127
4,591
End BY

1.34 1.34

1.34 1.34

1.33 1.33

1.33 1.33

1.33 1.32

1.33 1.30
-0.04

Page 11 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Sector Cash Flow and Yield Rolloff - Next 3 Years
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
Bk Yld Chg
Treasury/Agency
Cash Flow
128
817
6,894
13,778
128
8,508
9,136
31,591
13,141
17,854
11,263
23,246
End BY

1.27 1.27

1.28 1.27

1.27 1.20

1.27 1.30

1.40 1.41

1.64 2.30

1.03 Corporate
Cash Flow
26 1,099
1,034
2,575
1,009
7,126
0 0
0 0
0 0
End BY

1.98 1.92

1.85 1.60

1.44 0.00

0.00 0.00

0.00 0.00

0.00 0.00
-1.98
CD
Cash Flow
7 1,248
2 14
2 993
0 0
0 0
0 0
End BY

2.84 3.13

3.13 3.13

3.13 0.00

0.00 0.00

0.00 0.00

0.00 0.00
-2.84
Other
Cash Flow
65,246
0 0
0 0
0 0
0 0
0 0
0 End BY

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 Total
Cash Flow
65,406
3,164
7,931
16,367
1,139
16,627
9,136
31,591
13,141
17,854
11,263
23,246
End BY

1.34 1.33

1.33 1.30

1.29 1.20

1.27 1.30

1.40 1.41

1.64 2.30

0.95

Page 12 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Gap Analysis - Potential Income Impact of Principal Reinvestment Assumed
Estimated
Income
Resulting
Reinvestment
Annualized
Difference from
Book
Yield
Income
Current Book
Yield

0.25 227
-681

0.89 0.50
453
-455

0.99 0.75
680
-228

1.08 1.00
907
-1

1.18 1.25
1,133
225

1.28 1.50
1,360
452

1.38 1.75
1,587
679

1.48 2.00
1,814
906

1.58 2.25
2,040
1,132

1.68 2.50
2,267
1,359

1.78 2.75
2,494
1,586

1.88 3.00
2,720
1,812

1.97 3.25
2,947
2,039

2.07 3.50
3,174
2,266

2.17 3.75
3,400
2,492

2.27 4.00
3,627
2,719

2.37 4.25
3,854
2,946

2.47 4.50
4,081
3,173

2.57 4.75
4,307
3,399

2.67 5.00
4,534
3,626

2.77 5.25
4,761
3,853

2.86 5.50
4,987
4,079

2.96 5.75
5,214
4,306

3.06 6.00
5,441
4,533

3.16 6.25
5,667
4,759

3.26 6.50
5,894
4,986

3.36 6.75
6,121
5,213

3.46 7.00
6,347
5,439

3.56 7.25
6,574
5,666

3.66 7.50
6,801
5,893

3.75 7.75
7,028
6,120

3.85 8.00
7,254
6,346

3.95 Principal Maturing(12 Mo.Horizon): $90,678
Current Book Yield of Principal Maturing: 1.00%
Est. Annual Income at Current Book Yield: $908

Page 13 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Shocked Cash Flows By Sector - Next 10 Years

Page 14 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Cash Flows By Sector - Next 30 Years

Page 15 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Cash Flow Projection By Month - Next 5 Years

Page 16 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Agency - Summary
Book
Market
G/L $
G/L %
WAL
% Px
Δ
Dur
Cvx
Sector
Par
Maturity
Price
Price
Base
Base
Base
-100
Base
Base
Subsector
%
Value
Cpn
Next Call
Value
Yield
Value
Yield
+ 300
+ 300
+ 300
+300
AFS %

2.6 yrs
100.00
101.82
1,346

1.8%

2.56 2.6

2.51 0.08
Treasury (15)

49.5%
73,815

1.57 73,815

1.57 75,161

0.85 -4,045
-5.5%

2.56 -7.2
100.0%

2.7 yrs
100.00
102.14
235

2.1%

2.70 2.7

2.63 0.09
Agency Bullet (4)

7.4%
11,000

1.93 11,000

1.93 11,235

0.90 -610
-5.5%

2.70 -7.5
100.0%

3.5 yrs
100.00

98.91 -704
-1.1%

1.85 1.7

2.69 -0.50
Callable Agency (14)

43.2%
64,400

0.81 0.4 yrs
64,400

0.81 63,696

1.37 -6,548
-10.2%

3.50 -9.2
100.0%

3.0 yrs
100.00
100.59
877

0.6%

2.26 2.2

2.59 -0.17
Total (33)
100.0%
149,215

1.27 0.4 yrs
149,215

1.27 150,092

1.07 -11,203
-7.5%

2.97 -8.0
100.0%

Page 17 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Agency - Sector Cash Flow and Yield Rolloff - Next 3 Years 1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
Bk Yld Chg
Treasury
Cash Flow
38 539
38 3,545
38 3,322
38 29,474
38 5,295
38 23,239
End BY

1.57 1.57

1.57 1.55

1.55 1.50

1.50 1.70

1.70 1.62

1.62 2.59

1.02 Agency Bullet
Cash Flow
45 61
45 61
45 5,061
45 8
45 8
45 8
End BY

1.93 1.93

1.93 1.93

1.93 1.76

1.76 1.76

1.76 1.76

1.76 1.76
-0.17
Callable Agency
Cash Flow
45 217
6,812
10,173
45 125
9,053
2,110
13,058
12,551
11,180
0 End BY

0.81 0.81

0.79 0.71

0.71 0.71

0.79 0.80

0.82 0.57

0.00 0.00
-0.81
Total
Cash Flow
128
817
6,894
13,778
128
8,508
9,136
31,591
13,141
17,854
11,263
23,246
End BY

1.27 1.27

1.28 1.27

1.27 1.20

1.27 1.30

1.40 1.41

1.64 2.30

1.03

Page 18 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Callable Agency Rate Shock Analysis
–
Projected Par Value Redeemed at NEXT Call Date
–
Monthly
-100
-75
-50
-25
0 25
50 75
100
Dec 21
-
-
-
-
-
-
-
-
-
Jan 22
14,500
11,000
-
-
-
-
-
-
-
Feb 22
3,150
2,000
-
-
-
-
-
-
-
Mar 22
27,000
13,000
10,000
10,000
-
-
-
-
-
Apr 22
5,000
5,000
-
-
-
-
-
-
-
May 22
-
-
-
-
-
-
-
-
-
Jun 22
9,750
9,750
6,750
6,750
-
-
-
-
-
Jul 22
-
-
-
-
-
-
-
-
-
Aug 22
-
-
-
-
-
-
-
-
-
Sep 22
-
-
-
-
-
-
-
-
-
Oct 22
-
-
-
-
-
-
-
-
-
Nov 22
-
-
-
-
-
-
-
-
-
Callable Agency Rate Shock Analysis
–
Projected Par Value Redeemed at NEXT Call Date
–
Quarterly
-100
-75
-50
-25
0 25
50 75
100
4Q21
-
-
-
-
-
-
-
-
-
1Q22
44,650
26,000
10,000
10,000
-
-
-
-
-
2Q22
14,750
14,750
6,750
6,750
-
-
-
-
-
3Q22
-
-
-
-
-
-
-
-
-
4Q22
-
-
-
-
-
-
-
-
-
1Q23
-
-
-
-
-
-
-
-
-
2Q23
-
-
-
-
-
-
-
-
-
3Q23
-
-
-
-
-
-
-
-
-
4Q23
5,000
5,000
5,000
5,000
-
-
-
-
-
1Q24
-
-
-
-
-
-
-
-
-
2Q24
-
-
-
-
-
-
-
-
-
3Q24
-
-
-
-
-
-
-
-
-
4Q24
-
-
-
-
-
-
-
-
-
1Q25
-
-
-
-
-
-
-
-
-
2Q25
-
-
-
-
-
-
-
-
-
3Q25
-
-
-
-
-
-
-
-
-

Page 19 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Agency Projected Call Report - CUSIP Level
Sec
Cpn
Par
Next
Call
Mkt
Gain/
Projected Shocked Call Dates
No.

CUSIP
Issuer
Cpn
Type
Maturity
Value
Call
Type
Price
Loss
-200
-100
Base
+100
+200
+300
+400
30 3130AQDY6
FHLB

1.00 Fixed
12/30/24
6,750
06/30/22
Anytime

99.745
-17
06/22
06/22
09/22
10/24
12/24
12/24
12/24
26 3133ENHW3
FFCB

1.17 Fixed
06/23/25
10,000
03/23/22
Anytime

99.774
-23
03/22
03/22
11/22
01/25
06/25
06/25
06/25
31 3133EL2X1
FFCB

0.42 Fixed
05/06/24
2,000
01/18/22
Anytime

98.902
-22
01/22
01/22
07/23
05/24
05/24
05/24
05/24
32 3130AMQR6
FHLB

0.35 Fixed
06/07/24
3,000
06/07/22
Quarterly

98.672
-40
06/22
06/22
09/23
06/24
06/24
06/24
06/24
34 3130AMHH8
FHLB

0.41 Fixed
08/01/24
4,000
03/01/22
Quarterly

98.697
-52
03/22
03/22
09/23
08/24
08/24
08/24
08/24
35 3134GWNG7
FHLMC

0.50 Fixed
11/27/24
2,000
02/27/22
Quarterly

98.594
-28
02/22
02/22
11/23
11/24
11/24
11/24
11/24
36 3133EMUP5
FFCB

0.71 Fixed
04/01/25
5,000
04/01/22
Anytime

98.803
-60
04/22
04/22
01/24
04/25
04/25
04/25
04/25
37 3133ELK37
FFCB

0.78 Fixed
06/16/25
5,000
01/18/22
Anytime

98.837
-58
01/22
01/22
01/24
06/25
06/25
06/25
06/25
43 3130AMRQ7
FHLB

0.88 Fixed
12/30/25
3,000
03/30/22
Quarterly

98.696
-39
03/22
03/22
03/24
12/25
12/25
12/25
12/25
44 3130AN5C0
FHLB

1.05 Fixed
04/29/26
4,000
01/29/22
Quarterly

98.783
-49
01/22
01/22
04/24
04/26
04/26
04/26
04/26
52 3133ENJC5
FFCB

1.29 Fixed
12/22/26
5,000
12/22/23
Anytime

99.520
-24
12/23
12/23
04/24
07/26
12/26
12/26
12/26
42 3136G4ZP1
FNMA

0.65 Fixed
07/30/25
3,500
01/30/22
Quarterly

98.279
-60
01/22
01/22
04/24
07/25
07/25
07/25
07/25
46 3134GXBM5
FHLMC

0.60 Fixed
11/12/25
1,150
02/12/22
Quarterly

97.878
-24
02/22
02/22
08/24
11/25
11/25
11/25
11/25
45 3134GWUG9
FHLMC

0.57 Fixed
09/24/25
10,000
03/24/22
Quarterly

97.922
-208
03/22
03/22
09/24
09/25
09/25
09/25
09/25

0.81 64,400

98.907
-704
Shocked Agency Projected Call Schedule - Next 12 Months -200
-100
Base
+100
+200
+300
+400
Dec 21
-
-
-
-
-
-
-
Jan 22
14,500
14,500
-
-
-
-
-
Feb 22
3,150
3,150
-
-
-
-
-
Mar 22
27,000
27,000
-
-
-
-
-
Apr 22
5,000
5,000
-
-
-
-
-
May 22
-
-
-
-
-
-
-
Jun 22
9,750
9,750
-
-
-
-
-
Jul 22
-
-
-
-
-
-
-
Aug 22
-
-
-
-
-
-
-
Sep 22
-
-
6,750
-
-
-
-
Oct 22
-
-
-
-
-
-
-
Nov 22
-
-
10,000
-
-
-
-

Page 20 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Agency - Risk/Reward Analysis
Top 5 Market Yields
Security
Mkt
Mkt
Eff.
% Px
Δ
CUSIP
Description
Subsector
Value
Yld
Dur
Up 300
3130AN5C0
FHLB 1.05 04/29/26
Callable Agency
3,951

1.58%

3.22 -11.1
3133ENJC5
FFCB 1.29 12/22/26
Callable Agency
4,976

1.50%

3.85 -12.4
3130AMRQ7
FHLB 0 7/8 12/30/25
Callable Agency
2,961

1.47%

3.05 -10.4
3134GXBM5
FHLMC 0.6 11/12/25
Callable Agency
1,126

1.43%

3.35 -10.4
3133ENHW3
FFCB 1.17 06/23/25
Callable Agency
9,977

1.43%

1.96 -8.7
Bottom 5 Market Yields
Security
Mkt
Mkt
Eff.
% Px
Δ
CUSIP
Description
Subsector
Value
Yld
Dur
Up 300
912828N30
T 2 1/8 12/31/22
Treasury
3,050

0.45%

1.01 -3.0
9128284S6
T 2 3/4 05/31/23
Treasury
2,902

0.56%

1.41 -4.1
3133EKPT7
FFCB 2 1/8 06/05/23
Agency Bullet
5,110

0.58%

1.43 -4.2
91282CBA8
T 0 1/8 12/15/23
Treasury
4,943

0.71%

1.95 -5.7
91282CBA8
T 0 1/8 12/15/23
Treasury
9,886

0.71%

1.95 -5.7
Top 5 Price Volatility (% price change +300)
Security
Mkt
Mkt
Eff.
% Px
Δ
CUSIP
Description
Subsector
Value
Yld
Dur
Up 300
3133ENJC5
FFCB 1.29 12/22/26
Callable Agency
4,976

1.50%

3.85 -12.4
9128286F2
T 2 1/2 02/28/26
Treasury
3,159

1.19%

3.95 -11.2
3130AN5C0
FHLB 1.05 04/29/26
Callable Agency
3,951

1.58%

3.22 -11.1
9128285T3
T 2 5/8 12/31/25
Treasury
5,289

1.14%

3.82 -10.7
9128285T3
T 2 5/8 12/31/25
Treasury
3,173

1.14%

3.82 -10.7
Next 5 Projected Redemptions
Security
Mkt
Mkt
Eff.

CUSIP
Description
Subsector
Value
Yld
Dur
Mat/Call
3130AQDY6
FHLB 1 12/30/24
Callable Agency
6,733

1.34%

2.01 09/01/22
3133ENHW3
FFCB 1.17 06/23/25
Callable Agency
9,977

1.43%

1.96 11/01/22
912828N30
T 2 1/8 12/31/22
Treasury
3,050

0.45%

1.01 12/01/22
9128284S6
T 2 3/4 05/31/23
Treasury
2,902

0.56%

1.41 05/01/23
3133EKPT7
FFCB 2 1/8 06/05/23
Agency Bullet
5,110

0.58%

1.43 06/01/23

Page 21 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Corporate - Summary
Rating
Book
Market
G/L $
G/L %
WAL
% Px
Δ
Dur
Cvx
Sector
Par
Moody's
Price
Price
Base
Base
Base
-100
Base
Base
Subsector
%
Value
Cpn
Maturity
S&P
Value
Yield
Value
Yield
+ 300
+ 300
+ 300
+300
AFS %
Aa3
100.00
101.80
27 1.8%

0.79 0.8

0.79 0.00
Finance (1)

11.9%
1,500

2.80 1.0 yrs
AA-
1,500

2.80 1,527

0.52 -12
-0.8%

0.96 -2.5
100.0%
Aa1
100.00
101.18
131

1.2%

1.11 1.1

1.11 0.01
Industrial (6)

88.1%
11,075

1.87 1.1 yrs
AA
11,075

1.87 11,206

0.62 -241
-2.2%

1.15 -3.3
100.0%
Aa1
100.00
101.26
158

1.3%

1.07 1.1

1.07 0.01
Total (7)
100.0%
12,575

1.98 1.1 yrs
AA
12,575

1.98 12,733

0.61 -253
-2.0%

1.12 -3.2
100.0%

Page 22 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Corporate - Rating Summary
Combined Rating Summary
Maturity Summary
Combined Rating
% Balance
Par Value
Book Yield
Eff. Duration
Maturity Range
% Balance
Par Value
Book Yield
Combined
Rating
AAA

8.0%
1,000

2.65 0.68
< 1 Yr

27.8%
3,500

2.73 AA+
AA

92.0%
11,575

1.92 1.11

1.00 Yr - 2.99 Yr

72.2%
9,075

1.69 AA+
A
-
-
-
-

3.00 Yr - 4.99 Yr
-
-
-
-
BBB
-
-
-
-

5.00 Yr - 6.99 Yr
-
-
-
-
BB
-
-
-
-

7.00 Yr - 9.99 Yr
-
-
-
-
B or Below
-
-
-
-
10 Yr +
-
-
-
-
NR
-
-
-
-

Page 23 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

CD - Summary
Book
Market
G/L $
G/L %
WAL
Px Chg
Dur
Cvx
Sector
Par
Maturity
Price
Price
Base
Base
Base
-100
Base
Base
Subsector
%
Value
Cpn
Next Call
Value
Yield
Value
Yield
+ 300
+ 300
+ 300
+300
AFS %

0.8 yrs
100.00
102.28
50 2.3%

0.82 0.8

0.83 0.01
NCD (9)
100.0%
2,205

2.86 2,205

2.84 2,255

0.21 -5
-0.2%

0.82 -2.4
100.0%

0.8 yrs
100.00
102.28
50 2.3%

0.82 0.8

0.83 0.01
Total (9)
100.0%
2,205

2.86 2,205

2.84 2,255

0.21 -5
-0.2%

0.82 -2.4
100.0%

Page 24 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Other - Summary
Book
Market
G/L $
G/L %
WAL
Px Chg
Dur
Cvx
Sector
Par
Maturity
Price
Price
Base
Base
Base
-100
Base
Base
Subsector
%
Value
Cpn
Next Call
Value
Yield
Value
Yield
+ 300
+ 300
+ 300
+300
AFS %

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.09 0.00
Cash & Other (4)
100.0%
65,203

0.78 65,203

0.78 65,203

0.78 -168
-0.3%

0.08 -0.3
100.0%

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.09 0.00
Total (4)
100.0%
65,203

0.78 65,203

0.78 65,203

0.78 -168
-0.3%

0.08 -0.3
100.0%

Page 25 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Portfolio Considerations
Par
Book
Market
Gain/
Book
Eff.

Historical CPR
Proj. CPR
Loan
Sector
Cnt
Cpn
Maturity
Value
Price
Price
(Loss)
Yield
WAL
Dur
1 Mo.
3 Mo.

Life
Life
Count
Book Yield < 1.5%
25 0.76

2.0 yrs
169,678
100.00

99.46 -915

0.76 1.3

1.65 Treasury
5 0.63

2.5 yrs
35,000
100.00

99.58 -146

0.62 2.5

2.51 Agency Bullet
1 0.50

3.9 yrs
3,000
100.00

97.43 -77

0.50 3.9

3.81 Callable Agency
14 0.81

3.5 yrs
64,400
100.00

98.91 -704

0.81 1.8

2.69 Industrial
1 1.14

1.4 yrs
2,075
100.00
100.61
13 1.14

1.4 1.37
Cash & Other
4 0.78

0.1 yrs
65,203
100.00
100.00
0 0.78

0.1 0.09

Page 26 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Key Portfolio Sorts
Top 10 Up 300 Market Value Changes (%)
Par
Book
Market
Book
% Px
Δ
$ Amt
Δ
G/L
Eff.

CUSIP
Sector
Description
Cpn
Maturity
Value
Price
Price
G/L
Yield
WAL
+300
+300
+300
Dur
INT
3133ENJC5
Callable Agency
FFCB 1.29 12/22/26

1.29 12/22/26
5,000
100.00

99.52 -24

1.290

2.31 -12.39
-616
-640

3.85 AFS
9128286F2
Treasury
T 2 1/2 02/28/26

2.50 02/28/26
3,000
100.00
105.31
159

2.500

4.17 -11.16
-352
-193

3.95 AFS
3130AN5C0
Callable Agency
FHLB 1.05 04/29/26

1.05 04/29/26
4,000
100.00

98.78 -49

1.050

2.33 -11.08
-438
-486

3.22 AFS
9128285T3
Treasury
T 2 5/8 12/31/25

2.63 12/31/25
5,000
100.00
105.78
289

2.625

4.00 -10.74
-568
-279

3.82 AFS
9128285T3
Treasury
T 2 5/8 12/31/25

2.63 12/31/25
3,000
100.00
105.78
173

2.625

4.00 -10.74
-341
-167

3.82 AFS
3135G06G3
Agency Bullet
FNMA 0 1/2 11/07/25

0.50 11/07/25
3,000
100.00

97.43 -77

0.500

3.85 -10.74
-314
-391

3.81 AFS
3130AMRQ7
Callable Agency
FHLB 0 7/8 12/30/25

0.88 12/30/25
3,000
100.00

98.70 -39

0.875

2.25 -10.39
-308
-347

3.05 AFS
3134GXBM5
Callable Agency
FHLMC 0.6 11/12/25

0.60 11/12/25
1,150
100.00

97.88 -24

0.600

2.62 -10.38
-117
-141

3.35 AFS
3134GWUG9
Callable Agency
FHLMC 0.57 09/24/25

0.57 09/24/25
10,000
100.00

97.92 -208

0.570

2.73 -10.09
-988
-1,196

3.28 AFS
3133EJYM5
Agency Bullet
FFCB 3.02 09/04/25

3.02 09/04/25
1,000
100.00
106.75
67 3.019

3.68 -9.92
-106
-38

3.48 AFS

1.38 38,150
100.00
100.70
268

1.381

3.08 -10.80
-4,148
-3,880

3.55 Top 10 Up 300 Market Value Changes ($)
Par
Book
Market
Book
% Px
Δ
$ Amt
Δ
G/L
Eff.

CUSIP
Sector
Description
Cpn
Maturity
Value
Price
Price
G/L
Yield
WAL
+300
+300
+300
Dur
INT
3134GWUG9
Callable Agency
FHLMC 0.57 09/24/25

0.57 09/24/25
10,000
100.00

97.92 -208

0.570

2.73 -10.09
-988
-1,196

3.28 AFS
3133ENHW3
Callable Agency
FFCB 1.17 06/23/25

1.17 06/23/25
10,000
100.00

99.77 -23

1.170

0.89 -8.72
-870
-892

1.96 AFS
91282CDN8
Treasury
T 1 12/15/24

1.00 12/15/24
10,000
100.00
100.13
13 0.999

2.96 -8.31
-832
-820

2.91 AFS
3133ENJC5
Callable Agency
FFCB 1.29 12/22/26

1.29 12/22/26
5,000
100.00

99.52 -24

1.290

2.31 -12.39
-616
-640

3.85 AFS
9128285T3
Treasury
T 2 5/8 12/31/25

2.63 12/31/25
5,000
100.00
105.78
289

2.625

4.00 -10.74
-568
-279

3.82 AFS
91282CBA8
Treasury
T 0 1/8 12/15/23

0.13 12/15/23
10,000
100.00

98.86 -114

0.125

1.96 -5.65
-559
-673

1.95 AFS
3130AQDY6
Callable Agency
FHLB 1 12/30/24

1.00 12/30/24
6,750
100.00

99.74 -17

1.000

0.75 -7.74
-521
-538

2.01 AFS
3133ELK37
Callable Agency
FFCB 0.78 06/16/25

0.78 06/16/25
5,000
100.00

98.84 -58

0.780

2.04 -9.19
-454
-512

2.73 AFS
3130AN5C0
Callable Agency
FHLB 1.05 04/29/26

1.05 04/29/26
4,000
100.00

98.78 -49

1.050

2.33 -11.08
-438
-486

3.22 AFS
3133EMUP5
Callable Agency
FFCB 0.71 04/01/25

0.71 04/01/25
5,000
100.00

98.80 -60

0.710

2.00 -8.71
-430
-490

2.61 AFS

0.94 70,750
100.00

99.65 -251

0.942

2.14 -8.90
-6,276
-6,527

2.72

Page 27 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Key Portfolio Sorts
Top 10 Marked to Market Up 300 Loss Positions
Par
Book
Market
Book
% Px
Δ
$ Amt
Δ
G/L
Eff.

CUSIP
Sector
Description
Cpn
Maturity
Value
Price
Price
G/L
Yield
WAL
+300
+300
+300
Dur
INT
3134GWUG9
Callable Agency
FHLMC 0.57 09/24/25

0.57 09/24/25
10,000
100.00

97.92 -208

0.570

2.73 -10.09
-988
-1,196

3.28 AFS
3133ENHW3
Callable Agency
FFCB 1.17 06/23/25

1.17 06/23/25
10,000
100.00

99.77 -23

1.170

0.89 -8.72
-870
-892

1.96 AFS
91282CDN8
Treasury
T 1 12/15/24

1.00 12/15/24
10,000
100.00
100.13
13 0.999

2.96 -8.31
-832
-820

2.91 AFS
91282CBA8
Treasury
T 0 1/8 12/15/23

0.13 12/15/23
10,000
100.00

98.86 -114

0.125

1.96 -5.65
-559
-673

1.95 AFS
3133ENJC5
Callable Agency
FFCB 1.29 12/22/26

1.29 12/22/26
5,000
100.00

99.52 -24

1.290

2.31 -12.39
-616
-640

3.85 AFS
3130AQDY6
Callable Agency
FHLB 1 12/30/24

1.00 12/30/24
6,750
100.00

99.74 -17

1.000

0.75 -7.74
-521
-538

2.01 AFS
3133ELK37
Callable Agency
FFCB 0.78 06/16/25

0.78 06/16/25
5,000
100.00

98.84 -58

0.780

2.04 -9.19
-454
-512

2.73 AFS
3133EMUP5
Callable Agency
FFCB 0.71 04/01/25

0.71 04/01/25
5,000
100.00

98.80 -60

0.710

2.00 -8.71
-430
-490

2.61 AFS
3130AN5C0
Callable Agency
FHLB 1.05 04/29/26

1.05 04/29/26
4,000
100.00

98.78 -49

1.050

2.33 -11.08
-438
-486

3.22 AFS
91282CDN8
Treasury
T 1 12/15/24

1.00 12/15/24
5,000
100.00
100.13
6 0.999

2.96 -8.31
-416
-410

2.91 AFS

0.83 70,750
100.00

99.25 -534

0.827

2.07 -8.72
-6,124
-6,658

2.66 Top 10 Average Life Extension Up 300bps
Par
Book
Market
Book
% Px
Δ
Eff.

WAL
Chg in
CUSIP
Sector
Description
Cpn
Maturity
Value
Price
Price
G/L
Yield
+300
Dur
WAL
+300
WAL
INT
3133ENJC5
Callable Agency
FFCB 1.29 12/22/26

1.29 12/22/26
5,000
100.00

99.52 -24

1.290
-12.39

3.85 2.31

4.98 2.67
AFS
3133ENHW3
Callable Agency
FFCB 1.17 06/23/25

1.17 06/23/25
10,000
100.00

99.77 -23

1.170
-8.72

1.96 0.89

3.48 2.59
AFS
3130AQDY6
Callable Agency
FHLB 1 12/30/24

1.00 12/30/24
6,750
100.00

99.74 -17

1.000
-7.74

2.01 0.75

3.00 2.25
AFS
3130AN5C0
Callable Agency
FHLB 1.05 04/29/26

1.05 04/29/26
4,000
100.00

98.78 -49

1.050
-11.08

3.22 2.33

4.33 2.00
AFS
3130AMRQ7
Callable Agency
FHLB 0 7/8 12/30/25

0.88 12/30/25
3,000
100.00

98.70 -39

0.875
-10.39

3.05 2.25

4.00 1.75
AFS
3133ELK37
Callable Agency
FFCB 0.78 06/16/25

0.78 06/16/25
5,000
100.00

98.84 -58

0.780
-9.19

2.73 2.04

3.46 1.42
AFS
3133EMUP5
Callable Agency
FFCB 0.71 04/01/25

0.71 04/01/25
5,000
100.00

98.80 -60

0.710
-8.71

2.61 2.00

3.25 1.25
AFS
3136G4ZP1
Callable Agency
FNMA 0.65 07/30/25

0.65 07/30/25
3,500
100.00

98.28 -60

0.650
-9.63

3.03 2.33

3.58 1.25
AFS
3134GXBM5
Callable Agency
FHLMC 0.6 11/12/25

0.60 11/12/25
1,150
100.00

97.88 -24

0.600
-10.38

3.35 2.62

3.87 1.25
AFS
3134GWNG7
Callable Agency
FHLMC 0 1/2 11/27/24

0.50 11/27/24
2,000
100.00

98.59 -28

0.500
-8.00

2.56 1.91

2.91 1.00
AFS

0.95 45,400
100.00

99.16 -382

0.950
-9.42

2.66 1.69

3.65 1.96

Page 28 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Agency - CUSIP Detail
Maturity
Book
Market
Gain/(Loss)
% Px
Δ
Eff.

CUSIP
Cpn Type
Next Call Dt
Step Date
Proj.

Price
Price
bp
→

call
%
-100
Dur
ESG/Gr
Security Description
Ticker
Par
Coupon
Call Type
Step Cpn
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
912828N30
Fixed
12/22
100.00
101.67

1.7%

1.0 1.01
T 2 1/8 12/31/22
T
3,000

2.125
12/31/22
3,000

2.12 3,050

0.45 50
-3.0

0.01 AFS
9128284S6
Fixed
05/23
100.00
103.08

3.1%

1.4 1.41
T 2 3/4 05/31/23
T
2,815

2.750
05/31/23
2,815

2.74 2,902

0.56 87
-4.1

0.02 AFS
91282CBA8
Fixed
12/23
100.00

98.86 -1.1%

2.0 1.95
T 0 1/8 12/15/23
T
10,000

0.125
12/15/23
10,000

0.12 9,886

0.71 -114
-5.7

0.05 AFS
91282CBA8
Fixed
12/23
100.00

98.86 -1.1%

2.0 1.95
T 0 1/8 12/15/23
T
5,000

0.125
12/15/23
5,000

0.12 4,943

0.71 -57
-5.7

0.05 AFS
9128285U0
Fixed
12/23
100.00
103.72

3.7%

2.0 1.96
T 2 5/8 12/31/23
T
5,000

2.625
12/31/23
5,000

2.62 5,186

0.75 186
-5.7

0.05 AFS
912828V23
Fixed
12/23
100.00
103.00

3.0%

2.0 1.96
T 2 1/4 12/31/23
T
5,000

2.250
12/31/23
5,000

2.25 5,150

0.74 150
-5.7

0.05 AFS
912828V23
Fixed
12/23
100.00
103.00

3.0%

2.0 1.96
T 2 1/4 12/31/23
T
4,000

2.250
12/31/23
4,000

2.25 4,120

0.74 120
-5.7

0.05 AFS
91282CDN8
Fixed
12/24
100.00
100.13

0.1%

3.0 2.91
T 1 12/15/24
T
10,000

1.000
12/15/24
10,000

1.00 10,013

0.96 13
-8.3

0.10 AFS
91282CDN8
Fixed
12/24
100.00
100.13

0.1%

3.0 2.91
T 1 12/15/24
T
5,000

1.000
12/15/24
5,000

1.00 5,006

0.96 6
-8.3

0.10 AFS
91282CDN8
Fixed
12/24
100.00
100.13

0.1%

3.0 2.91
T 1 12/15/24
T
5,000

1.000
12/15/24
5,000

1.00 5,006

0.96 6
-8.3

0.10 AFS
9128283P3
Fixed
12/24
100.00
103.78

3.8%

3.0 2.91
T 2 1/4 12/31/24
T
3,000

2.250
12/31/24
3,000

2.25 3,113

0.97 113
-8.3

0.10 AFS
9128286R6
Fixed
04/24
100.00
103.28

3.3%

2.3 2.27
T 2 1/4 04/30/24
T
5,000

2.250
04/30/24
5,000

2.25 5,164

0.82 164
-6.6

0.06 AFS
9128285T3
Fixed
12/25
100.00
105.78

5.8%

3.9 3.82
T 2 5/8 12/31/25
T
3,000

2.625
12/31/25
3,000

2.63 3,173

1.14 173
-10.7

0.17 AFS
9128285T3
Fixed
12/25
100.00
105.78

5.8%

3.9 3.82
T 2 5/8 12/31/25
T
5,000

2.625
12/31/25
5,000

2.63 5,289

1.14 289
-10.7

0.17 AFS
9128286F2
Fixed
02/26
100.00
105.31

5.3%

4.1 3.95
T 2 1/2 02/28/26
T
3,000

2.500
02/28/26
3,000

2.50 3,159

1.19 159
-11.2

0.18 AFS
Treasury
100.00
101.82

1.8%

2.6 2.51
73,815

1.570
73,815

1.57 75,161

0.85 1,346
-7.2

0.08 3133EJYM5
Fixed
09/25
100.00
106.75

6.7%

3.6 3.48
FFCB 3.02 09/04/25
FFCB
1,000

3.020
09/04/25
1,000

3.02 1,068

1.14 67
-9.9

0.14 AFS

Page 29 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Agency - CUSIP Detail
Maturity
Book
Market
Gain/(Loss)
% Px
Δ
Eff.

CUSIP
Cpn Type
Next Call Dt
Step Date
Proj.

Price
Price
bp
→

call
%
-100
Dur
ESG/Gr
Security Description
Ticker
Par
Coupon
Call Type
Step Cpn
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
3133EJYM5
Fixed
09/25
100.00
106.75

6.7%

3.6 3.48
FFCB 3.02 09/04/25
FFCB
2,000

3.020
09/04/25
2,000

3.02 2,135

1.14 135
-9.9

0.14 AFS
3135G06G3
Fixed
11/25
100.00

97.43 -2.6%

3.9 3.81
FNMA 0 1/2 11/07/25
FNMA
3,000

0.500
11/07/25
3,000

0.50 2,923

1.18 -77
-10.7

0.17 AFS
3133EKPT7
Fixed
06/23
100.00
102.19

2.2%

1.4 1.43
FFCB 2 1/8 06/05/23
FFCB
5,000

2.125
06/05/23
5,000

2.12 5,110

0.58 110
-4.2

0.02 AFS
Agency Bullet
100.00
102.14

2.1%

2.7 2.63
11,000

1.926
11,000

1.93 11,235

0.90 235
-7.5

0.09 3133ENJC5
Fixed
12/22/23
04/24
100.00

99.52 -14
-0.5%

3.2 3.85
FFCB 1.29 12/22/26
FFCB
5,000

1.290
Anytime
12/22/26
5,000

1.29 4,976

1.50 -24
-12.4
-0.14
AFS
3130AMHH8
Fixed
03/01/22
09/23
100.00

98.70 -76
-1.3%

1.5 2.29
FHLB 0.41 08/01/24
FHLB
4,000

0.410
Quarterly
08/01/24
4,000

0.41 3,948

1.20 -52
-7.2

0.05 AFS
3134GWNG7
Fixed
02/27/22
11/23
100.00

98.59 -72
-1.4%

1.7 2.56
FHLMC 0 1/2 11/27/24
FHLMC
2,000

0.500
Quarterly
11/27/24
2,000

0.50 1,972

1.25 -28
-8.0

0.14 AFS
3133EMUP5
Fixed
04/01/22
01/24
100.00

98.80 -63
-1.2%

1.6 2.61
FFCB 0.71 04/01/25
FFCB
5,000

0.710
Anytime
04/01/25
5,000

0.71 4,940

1.32 -60
-8.7
-0.35
AFS
3133ELK37
Fixed
01/18/22
01/24
100.00

98.84 -60
-1.2%

1.3 2.73
FFCB 0.78 06/16/25
FFCB
5,000

0.780
Anytime
06/16/25
5,000

0.78 4,942

1.36 -58
-9.2
-0.48
AFS
3133ENHW3
Fixed
03/23/22
11/22
100.00

99.77 -15
-0.2%

0.7 1.96
FFCB 1.17 06/23/25
FFCB
10,000

1.170
Anytime
06/23/25
10,000

1.17 9,977

1.43 -23
-8.7
-1.80
AFS
3130AQDY6
Fixed
06/30/22
09/22
100.00

99.74 -15
-0.3%

1.2 2.01
FHLB 1 12/30/24
FHLB
6,750

1.000
Anytime
12/30/24
6,750

1.00 6,733

1.34 -17
-7.7
-0.72
AFS
3133EL2X1
Fixed
01/18/22
07/23
100.00

98.90 -73
-1.1%

1.1 2.06
FFCB 0.42 05/06/24
FFCB
2,000

0.420
Anytime
05/06/24
2,000

0.42 1,978

1.15 -22
-6.5
-0.01
AFS
3130AMQR6
Fixed
06/07/22
09/23
100.00

98.67 -74
-1.3%

1.7 2.21
FHLB 0.35 06/07/24
FHLB
3,000

0.350
Quarterly
06/07/24
3,000

0.35 2,960

1.15 -40
-6.8

0.15 AFS
3136G4ZP1
Fixed
01/30/22
04/24
100.00

98.28 -80
-1.7%

1.9 3.03
FNMA 0.65 07/30/25
FNMA
3,500

0.650
Quarterly
07/30/25
3,500

0.65 3,440

1.40 -60
-9.6

0.02 AFS
3130AMRQ7
Fixed
03/30/22
03/24
100.00

98.70 -60
-1.3%

1.8 3.05
FHLB 0 7/8 12/30/25
FHLB
3,000

0.875
Quarterly
12/30/25
3,000

0.88 2,961

1.47 -39
-10.4
-0.56
AFS
3130AN5C0
Fixed
01/29/22
04/24
100.00

98.78 -51
-1.2%

1.4 3.22
FHLB 1.05 04/29/26
FHLB
4,000

1.050
Quarterly
04/29/26
4,000

1.05 3,951

1.58 -49
-11.1
-0.73
AFS
3134GWUG9
Fixed
03/24/22
09/24
100.00

97.92 -86
-2.1%

2.4 3.28
FHLMC 0.57 09/24/25
FHLMC
10,000

0.570
Quarterly
09/24/25
10,000

0.57 9,792

1.35 -208
-10.1
-0.09
AFS

Page 30 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Agency - CUSIP Detail
Maturity
Book
Market
Gain/(Loss)
% Px
Δ
Eff.

CUSIP
Cpn Type
Next Call Dt
Step Date
Proj.

Price
Price
bp
→

call
%
-100
Dur
ESG/Gr
Security Description
Ticker
Par
Coupon
Call Type
Step Cpn
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
3134GXBM5
Fixed
02/12/22
08/24
100.00

97.88 -88
-2.1%

2.3 3.35
FHLMC 0.6 11/12/25
FHLMC
1,150

0.600
Quarterly
11/12/25
1,150

0.60 1,126

1.43 -24
-10.4
-0.08
AFS
Callable Agency
100.00

98.91 -1.1%

1.7 2.69
64,400

0.813
64,400

0.81 63,696

1.37 -704
-9.2
-0.50
Total
100.00
100.59

0.6%

2.2 2.59
149,215

1.269
149,215

1.27 150,092

1.07 877
-8.0
-0.17

Page 31 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Corporate - CUSIP Detail
Rating
Book
Market
Gain/(Loss)
% Px
Δ
Eff.

CUSIP
Sector
Par
Index
S&P
Price
Price
%
-100
Dur
ESG/Gr
Security Description
Subsector
Value
Cpn
Maturity
Margin
Moody's
Value
Yield
Value
Yield
$
+300
Cvx
Intent
92826CAC6
Finance
AA-
100.00
101.80

1.8%

0.8 0.79
V 2.8 12/14/22
Other Financial
1,500

2.800
12/14/22
Aa3
1,500

2.80 1,527

0.52 27
-2.5

0.00 AFS
Finance
AA-
100.00
101.80

1.8%

0.8 0.79
1,500

2.800
Aa3
1,500

2.80 1,527

0.52 27
-2.5

0.00 037833BF6
Industrial
AA+
100.00
100.85

0.9%

0.4 0.37
AAPL 2.7 05/13/22
Manufacturing
1,000

2.700
05/13/22
Aaa
1,000

2.70 1,009

0.39 9
-1.1

0.00 AFS
594918BH6
Industrial
AAA
100.00
101.53

1.5%

0.7 0.68
MSFT 2.65 11/03/22
Manufacturing
1,000

2.650
11/03/22
Aaa
1,000

2.65 1,015

0.37 15
-2.2

0.00 AFS
037833DE7
Industrial
AA+
100.00
101.62

1.6%

1.0 0.95
AAPL 2.4 01/13/23
Manufacturing
1,000

2.400
01/13/23
Aaa
1,000

2.40 1,016

0.69 16
-3.0

0.00 AFS
30231GAR3
Industrial
AA-
100.00
102.10

2.1%

1.0 1.01
XOM 2.726 03/01/23
Energy Company
1,000

2.726
03/01/23
Aa2
1,000

2.73 1,021

0.62 21
-3.2

0.00 AFS
30231GBL5
Industrial
AA-
100.00
101.14

1.1%

1.3 1.29
XOM 1.571 04/15/23
Energy Company
5,000

1.571
04/15/23
Aa2
5,000

1.57 5,057

0.68 57
-3.8

0.02 AFS
166764BV1
Industrial
AA-
100.00
100.61

0.6%

1.4 1.37
CVX 1.141 05/11/23
Energy Company
2,075

1.141
05/11/23
Aa2
2,075

1.14 2,088

0.69 13
-4.0

0.02 AFS
Industrial
AA
100.00
101.18

1.2%

1.1 1.11
11,075

1.869
Aa1
11,075

1.87 11,206

0.62 131
-3.3

0.01 Total
AA
100.00
101.26

1.3%

1.1 1.07
12,575

1.980
Aa1
12,575

1.98 12,733

0.61 158
-3.2

0.01

Page 32 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

CD - CUSIP Detail
Coupon
Step
Maturity
Book
Market
Gain/(Loss)
% Px
Δ
Effective
CUSIP
Par
Type
Date
Proj.

Price
Price
%
-100
Dur
ESG/G
r
Security Description
Ticker
Value
Rate
Rate
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
05580AMR2
Fixed
05/22
100.00
100.99

1.0%

0.4 0.36
BMW 2.95 05/11/22
BMW
245

2.950
05/11/22
245

2.90 247

0.18 2
-1.1

0.00 AFS
86063QAN5
Fixed
05/22
100.00
100.99

1.0%

0.4 0.38
SF 2.85 05/16/22
SF
245

2.850
05/16/22
245

2.83 247

0.19 2
-1.1

0.00 AFS
29278TBF6
Fixed
05/22
100.00
101.04

1.0%

0.4 0.38
Enerbank USA
29278
245

2.950
05/18/22
245

2.97 248

0.23 3
-1.1

0.00 AFS
51210SMT1
Fixed
05/22
100.00
100.73

0.7%

0.4 0.42
LAKESD 2 05/31/22
LAKESD
245

2.000
05/31/22
245

1.99 247

0.23 2
-1.2

0.00 AFS
02587CFM7
Fixed
05/22
100.00
100.90

0.9%

0.4 0.42
AXP 2.4 05/31/22
AXP
245

2.400
05/31/22
245

2.38 247

0.22 2
-1.2

0.00 AFS
61747MX30
Fixed
05/23
100.00
103.98

4.0%

1.4 1.35
MS 3.15 05/10/23
MS
245

3.150
05/10/23
245

3.14 255

0.21 10
-4.0

0.02 AFS
87164WWF1
Fixed
05/23
100.00
103.99

4.0%

1.4 1.35
SYF 3.15 05/11/23
SYF
245

3.150
05/11/23
245

3.14 255

0.21 10
-4.0

0.02 AFS
17312QL23
Fixed
05/23
100.00
103.99

4.0%

1.4 1.35
C 3.15 05/11/23
C
245

3.150
05/11/23
245

3.14 255

0.21 10
-4.0

0.02 AFS
20033AYE0
Fixed
05/23
100.00
103.92

3.9%

1.4 1.36
ADS 3.1 05/15/23
ADS
245

3.100
05/15/23
245

3.11 255

0.23 10
-4.0

0.02 AFS
NCD
100.00
102.28

2.3%

0.8 0.83
2,205

2.856
2,205

2.84 2,255

0.21 50
-2.4

0.01 Total
100.00
102.28

2.3%

0.8 0.83
2,205

2.856
2,205

2.84 2,255

0.21 50
-2.4

0.01

Page 33 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Other - CUSIP Detail
Coupon
Step
Maturity
Book
Market
Gain/(Loss)
% Px
Δ
Effective
Par
Type
Date
Proj.

Price
Price
%
-100
Dur
ESG/G
r
CUSIP
Ticker
Value
Rate
Rate
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
Fixed
01/22
100.00
100.00

0.0%

0.1 0.09

PLMDLCAMP
249

0.300
01/31/22
249

0.30 249

0.30 0
-0.3

0.00 AFS
Fixed
01/22
100.00
100.00

0.0%

0.1 0.09

PLMDLLAIF
17,700

0.780
01/31/22
17,700

0.78 17,700

0.78 0
-0.3

0.00 AFS
Fixed
01/22
100.00
100.00

0.0%

0.1 0.09

PLMDLLAIF
30,060

0.780
01/31/22
30,060

0.78 30,060

0.78 0
-0.3

0.00 AFS
Fixed
01/22
100.00
100.00

0.0%

0.1 0.09

PLMDLLAIF
17,194

0.780
01/31/22
17,194

0.78 17,194

0.78 0
-0.3

0.00 AFS
100.00
100.00

0.0%

0.1 0.09
Cash & Other
65,203

0.778
65,203

0.78 65,203

0.78 0
-0.3

0.00 100.00
100.00

0.0%

0.1 0.09
Total
65,203

0.778
65,203

0.78 65,203

0.78 0
-0.3

0.00

Page 34 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Shocked CUSIP Analysis
-200
-100
Base
+100
+200
+300
+400
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
Dur
WAL
WAL
WAL
WAL
WAL
2,000
23 1.15%
22 1.14%
0 0.00%
-43
-2.15%
-86
-4.36%
-129
-6.52%
-171
-8.63%
3133EL2X1

0.42 100.04
-1.77
100.03
-0.91

98.90 1.15

96.77 1.83

94.59 2.81

92.45 3.81

90.36 4.81
FFCB 0.42 05/06/24
05/06/2024

0.02 0.02

2.06 1.51

2.35 2.35

2.35 2.35
5,000
95 1.92%
79 1.61%
0 0.00%
-139
-2.82%
-286
-5.78%
-430
-8.71%
-570
-11.54%
3133EMUP5

0.71 100.70
-2.03
100.39
-0.84

98.80 1.32

96.02 1.98

93.09 2.95

90.20 3.95

87.40 4.95
FFCB 0.71 04/01/25
04/01/2025

0.25 0.25

2.61 2.00

3.25 3.25

3.25 3.25
5,000
65 1.31%
62 1.26%
0 0.00%
-146
-2.96%
-301
-6.10%
-454
-9.19%
-602
-12.18%
3133ELK37

0.78 100.13
-5.86
100.09
-3.63

98.84 1.36

95.91 2.01

92.81 2.98

89.75 3.98

86.79 4.98
FFCB 0.78 06/16/25
06/16/2025

0.02 0.02

2.73 2.04

3.46 3.46

3.46 3.46
10,000
98 0.98%
75 0.75%
0 0.00%
-258
-2.59%
-562
-5.64%
-870
-8.72%
-1,169
-11.72%
3133ENHW3

1.17 100.75
-2.06
100.52
-1.08

99.77 1.43

97.19 2.12

94.15 2.95

91.08 3.94

88.08 4.94
FFCB 1.17 06/23/25
06/23/2025

0.23 0.23

1.96 0.89

3.06 3.48

3.48 3.48
5,000
281

5.65%
162

3.25%
0 0.00%
-199
-3.99%
-408
-8.21%
-616
-12.39%
-817
-16.41%
3133ENJC5

1.29 105.14
-1.27
102.75
-0.10

99.52 1.50

95.55 2.32

91.35 3.18

87.19 4.17

83.19 5.16
FFCB 1.29 12/22/26
12/22/2026

1.98 1.98

3.85 2.31

4.56 4.98

4.98 4.98
5,000
149

2.91%
74 1.44%
0 0.00%
-73
-1.42%
-144
-2.81%
-214
-4.19%
-283
-5.54%
3133EKPT7

2.13 105.17
-1.44
103.67
-0.43
102.19

0.58 100.74

1.60 99.32

2.61 97.92

3.63 96.54

4.65 FFCB 2 1/8 06/05/23
06/05/2023

1.43 1.43

1.43 1.43

1.43 1.43

1.43 1.43
1,000
78 7.32%
38 3.59%
0 0.00%
-37
-3.44%
-72
-6.74%
-106
-9.92%
-138
-12.96%
3133EJYM5

3.02 114.57
-0.87
110.58

0.14 106.75

1.14 103.08

2.15 99.55

3.15 96.16

4.15 92.91

5.16 FFCB 3.02 09/04/25
09/04/2025

3.68 3.68

3.48 3.68

3.68 3.68

3.68 3.68
2,000
156

7.32%
77 3.59%
0 0.00%
-73
-3.44%
-144
-6.74%
-212
-9.92%
-277
-12.96%
3133EJYM5

3.02 114.57
-0.87
110.58

0.14 106.75

1.14 103.08

2.15 99.55

3.15 96.16

4.15 92.91

5.16 FFCB 3.02 09/04/25
09/04/2025

3.68 3.68

3.48 3.68

3.68 3.68

3.68 3.68
3,000
61 2.06%
52 1.76%
0 0.00%
-99
-3.33%
-204
-6.89%
-308
-10.39%
-408
-13.78%
3130AMRQ7

0.88 100.72
-2.00
100.44
-0.87

98.70 1.47

95.41 2.08

91.90 3.04

88.44 4.03

85.10 5.03
FHLB 0 7/8 12/30/25
12/30/2025

0.25 0.25

3.05 2.25

4.00 4.00

4.00 4.00
3,000
70 2.37%
51 1.72%
0 0.00%
-67
-2.26%
-135
-4.55%
-201
-6.80%
-266
-8.98%
3130AMQR6

0.35 101.01
-1.94
100.37
-0.50

98.67 1.15

96.44 1.85

94.18 2.84

91.97 3.84

89.81 4.83
FHLB 0.35 06/07/24
06/07/2024

0.44 0.44

2.21 1.69

2.44 2.44

2.44 2.44

Page 35 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Shocked CUSIP Analysis
-200
-100
Base
+100
+200
+300
+400
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
Dur
WAL
WAL
WAL
WAL
WAL
4,000
69 1.74%
60 1.53%
0 0.00%
-94
-2.37%
-189
-4.79%
-283
-7.16%
-374
-9.47%
3130AMHH8

0.41 100.42
-2.04
100.20
-0.78

98.70 1.20

96.36 1.86

93.97 2.85

91.63 3.84

89.35 4.84
FHLB 0.41 08/01/24
08/01/2024

0.17 0.17

2.29 1.67

2.59 2.59

2.59 2.59
6,750
120

1.79%
83 1.24%
0 0.00%
-159
-2.36%
-339
-5.04%
-521
-7.74%
-698
-10.37%
3130AQDY6

1.00 101.53
-2.02
100.98
-0.95

99.74 1.34

97.39 1.95

94.72 2.85

92.03 3.84

89.40 4.84
FHLB 1 12/30/24
12/30/2024

0.50 0.50

2.01 0.75

2.83 3.00

3.00 3.00
4,000
59 1.49%
56 1.41%
0 0.00%
-140
-3.53%
-290
-7.33%
-438
-11.08%
-580
-14.69%
3130AN5C0

1.05 100.25
-2.06
100.17
-1.07

98.78 1.58

95.29 2.20

91.54 3.15

87.84 4.15

84.28 5.15
FHLB 1.05 04/29/26
04/29/2026

0.08 0.08

3.22 2.33

4.33 4.33

4.33 4.33
2,000
36 1.85%
33 1.66%
0 0.00%
-52
-2.65%
-105
-5.35%
-158
-8.00%
-208
-10.56%
3134GWNG7

0.50 100.42
-2.11
100.23
-0.98

98.59 1.25

95.98 1.93

93.32 2.91

90.71 3.91

88.18 4.91
FHLMC 0 1/2 11/27/24
11/27/2024

0.16 0.16

2.56 1.91

2.91 2.91

2.91 2.91
10,000
268

2.73%
232

2.37%
0 0.00%
-328
-3.35%
-662
-6.76%
-988
-10.09%
-1,301
-13.29%
3134GWUG9

0.57 100.60
-1.97
100.24
-0.45

97.92 1.35

94.64 2.07

91.30 3.05

88.04 4.05

84.91 5.06
FHLMC 0.57 09/24/25
09/24/2025

0.23 0.23

3.28 2.73

3.73 3.73

3.73 3.73
1,150
28 2.49%
26 2.31%
0 0.00%
-39
-3.44%
-78
-6.96%
-117
-10.39%
-154
-13.68%
3134GXBM5

0.60 100.32
-2.12
100.14
-0.61

97.88 1.43

94.51 2.09

91.07 3.07

87.71 4.07

84.49 5.07
FHLMC 0.6 11/12/25
11/12/2025

0.12 0.12

3.35 2.62

3.87 3.87

3.87 3.87
3,000
233

7.97%
114

3.90%
0 0.00%
-109
-3.73%
-214
-7.31%
-314
-10.74%
-410
-14.02%
3135G06G3

0.50 105.19
-0.82
101.23

0.18 97.43

1.18 93.79

2.19 90.31

3.19 86.97

4.20 83.77

5.20 FNMA 0 1/2 11/07/25
11/07/2025

3.85 3.85

3.81 3.85

3.85 3.85

3.85 3.85
3,500
68 1.99%
65 1.88%
0 0.00%
-109
-3.16%
-221
-6.43%
-331
-9.63%
-437
-12.71%
3136G4ZP1

0.65 100.23
-2.11
100.13
-0.86

98.28 1.40

95.17 2.05

91.96 3.03

88.82 4.03

85.78 5.04
FNMA 0.65 07/30/25
07/30/2025

0.08 0.08

3.03 2.33

3.58 3.58

3.58 3.58
10,000
396

4.00%
196

1.98%
0 0.00%
-191
-1.93%
-377
-3.81%
-559
-5.65%
-736
-7.45%
91282CBA8

0.13 102.82
-1.29
100.81
-0.29

98.86 0.71

96.95 1.72

95.09 2.72

93.27 3.72

91.50 4.73
T 0 1/8 12/15/23
12/15/2023

1.96 1.96

1.95 1.96

1.96 1.96

1.96 1.96
5,000
198

4.00%
98 1.98%
0 0.00%
-95
-1.93%
-189
-3.81%
-279
-5.65%
-368
-7.45%
91282CBA8

0.13 102.82
-1.29
100.81
-0.29

98.86 0.71

96.95 1.72

95.09 2.72

93.27 3.72

91.50 4.73
T 0 1/8 12/15/23
12/15/2023

1.96 1.96

1.95 1.96

1.96 1.96

1.96 1.96

Page 36 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Shocked CUSIP Analysis
-200
-100
Base
+100
+200
+300
+400
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
Dur
WAL
WAL
WAL
WAL
WAL
5,000
302

6.04%
148

2.97%
0 0.00%
-143
-2.87%
-282
-5.63%
-416
-8.31%
-545
-10.90%
91282CDN8

1.00 106.17
-1.05
103.09
-0.05
100.13

0.96 97.26

1.96 94.48

2.96 91.80

3.96 89.22

4.96 T 1 12/15/24
12/15/2024

2.96 2.96

2.91 2.96

2.96 2.96

2.96 2.96
5,000
302

6.04%
148

2.97%
0 0.00%
-143
-2.87%
-282
-5.63%
-416
-8.31%
-545
-10.90%
91282CDN8

1.00 106.17
-1.05
103.09
-0.05
100.13

0.96 97.26

1.96 94.48

2.96 91.80

3.96 89.22

4.96 T 1 12/15/24
12/15/2024

2.96 2.96

2.91 2.96

2.96 2.96

2.96 2.96
10,000
604

6.04%
297

2.97%
0 0.00%
-287
-2.87%
-564
-5.63%
-832
-8.31%
-1,091
-10.90%
91282CDN8

1.00 106.17
-1.05
103.09
-0.05
100.13

0.96 97.26

1.96 94.48

2.96 91.80

3.96 89.22

4.96 T 1 12/15/24
12/15/2024

2.96 2.96

2.91 2.96

2.96 2.96

2.96 2.96
3,000
263

8.34%
129

4.07%
0 0.00%
-123
-3.89%
-240
-7.61%
-352
-11.16%
-460
-14.55%
9128286F2

2.50 114.09
-0.82
109.60

0.18 105.31

1.19 101.22

2.19 97.30

3.20 93.56

4.20 89.99

5.20 T 2 1/2 02/28/26
02/28/2026

4.17 4.17

3.95 4.17

4.17 4.17

4.17 4.17
5,000
242

4.69%
119

2.31%
0 0.00%
-116
-2.25%
-229
-4.43%
-338
-6.55%
-445
-8.62%
9128286R6

2.25 108.13
-1.18
105.67
-0.18
103.28

0.82 100.96

1.82 98.71

2.82 96.51

3.82 94.38

4.82 T 2 1/4 04/30/24
04/30/2024

2.33 2.33

2.27 2.33

2.33 2.33

2.33 2.33
4,000
166

4.03%
82 1.99%
0 0.00%
-80
-1.94%
-158
-3.83%
-234
-5.68%
-308
-7.48%
912828V23

2.25 107.15
-1.27
105.05
-0.27
103.00

0.74 101.00

1.74 99.05

2.74 97.15

3.74 95.30

4.74 T 2 1/4 12/31/23
12/31/2023

2.00 2.00

1.96 2.00

2.00 2.00

2.00 2.00
5,000
207

4.03%
102

1.99%
0 0.00%
-100
-1.94%
-197
-3.83%
-292
-5.68%
-385
-7.48%
912828V23

2.25 107.15
-1.27
105.05
-0.27
103.00

0.74 101.00

1.74 99.05

2.74 97.15

3.74 95.30

4.74 T 2 1/4 12/31/23
12/31/2023

2.00 2.00

1.96 2.00

2.00 2.00

2.00 2.00
3,000
188

6.04%
92 2.97%
0 0.00%
-89
-2.86%
-175
-5.63%
-259
-8.31%
-339
-10.89%
9128283P3

2.25 110.05
-1.04
106.86
-0.03
103.78

0.97 100.81

1.97 97.94

2.97 95.16

3.98 92.48

4.98 T 2 1/4 12/31/24
12/31/2024

3.00 3.00

2.91 3.00

3.00 3.00

3.00 3.00
3,000
62 2.04%
31 1.01%
0 0.00%
-31
-1.00%
-61
-1.99%
-90
-2.97%
-120
-3.93%
912828N30

2.13 103.75
-1.58
102.70
-0.57
101.67

0.45 100.65

1.46 99.65

2.48 98.66

3.50 97.68

4.53 T 2 1/8 12/31/22
12/31/2022

1.00 1.00

1.01 1.00

1.00 1.00

1.00 1.00
2,815
83 2.88%
41 1.43%
0 0.00%
-41
-1.40%
-81
-2.78%
-120
-4.14%
-159
-5.47%
9128284S6

2.75 106.04
-1.46
104.55
-0.45
103.08

0.56 101.63

1.57 100.21

2.59 98.81

3.61 97.44

4.63 T 2 3/4 05/31/23
05/31/2023

1.42 1.42

1.41 1.42

1.42 1.42

1.42 1.42

Page 37 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Shocked CUSIP Analysis
-200
-100
Base
+100
+200
+300
+400
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
Dur
WAL
WAL
WAL
WAL
WAL
5,000
208

4.02%
103

1.98%
0 0.00%
-100
-1.93%
-198
-3.82%
-294
-5.66%
-387
-7.46%
9128285U0

2.63 107.88
-1.26
105.78
-0.25
103.72

0.75 101.71

1.75 99.76

2.75 97.85

3.75 95.98

4.75 T 2 5/8 12/31/23
12/31/2023

2.00 2.00

1.96 2.00

2.00 2.00

2.00 2.00
5,000
423

7.99%
207

3.91%
0 0.00%
-198
-3.74%
-387
-7.32%
-568
-10.74%
-742
-14.02%
9128285T3

2.63 114.24
-0.87
109.92

0.14 105.78

1.14 101.83

2.15 98.04

3.15 94.42

4.15 90.95

5.16 T 2 5/8 12/31/25
12/31/2025

4.00 4.00

3.82 4.00

4.00 4.00

4.00 4.00
3,000
254

7.99%
124

3.91%
0 0.00%
-119
-3.74%
-232
-7.32%
-341
-10.74%
-445
-14.02%
9128285T3

2.63 114.24
-0.87
109.92

0.14 105.78

1.14 101.83

2.15 98.04

3.15 94.42

4.15 90.95

5.16 T 2 5/8 12/31/25
12/31/2025

4.00 4.00

3.82 4.00

4.00 4.00

4.00 4.00
Treasury/Agency
149,215
5,856

3.90%
3,278

2.18%
0 0.00%
-4,018
-2.68%
-8,094
-5.39%
-12,080
-8.05%
-15,939
-10.62%

1.27 104.51
-1.61
102.78
-0.50
100.59

1.07 97.89

1.94 95.16

2.91 92.49

3.91 89.91

4.91 1.62

1.62 2.59

2.26 2.92

2.97 2.97

2.97 1,000
20 1.94%
10 0.97%
0 0.00%
-10
-0.97%
-20
-1.97%
-30
-2.97%
-40
-3.97%
037833DE7

2.40 103.59
-1.34
102.60
-0.33
101.62

0.69 100.63

1.73 99.62

2.81 98.60

3.79 97.59

4.81 AAPL 2.4 01/13/23
01/13/2023

0.95 0.95

0.95 0.95

0.95 0.95

1.04 1.04
1,000
8 0.75%
4 0.37%
0 0.00%
-4
-0.37%
-7
-0.74%
-11
-1.10%
-15
-1.46%
037833BF6

2.70 101.60
-1.60
101.23
-0.61
100.85

0.39 100.48

1.40 100.11

2.40 99.74

3.41 99.37

4.42 AAPL 2.7 05/13/22
05/13/2022

0.37 0.37

0.37 0.37

0.37 0.37

0.37 0.37
2,075
58 2.78%
29 1.38%
0 0.00%
-28
-1.36%
-56
-2.69%
-84
-4.01%
-111
-5.30%
166764BV1

1.14 103.41
-1.33
102.00
-0.32
100.61

0.69 99.25

1.70 97.90

2.72 96.58

3.74 95.28

4.76 CVX 1.141 05/11/23
05/11/2023

1.36 1.36

1.37 1.36

1.36 1.36

1.36 1.36
1,000
14 1.37%
7 0.68%
0 0.00%
-7
-0.68%
-14
-1.41%
-22
-2.21%
-31
-3.02%
594918BH6

2.65 102.93
-1.65
102.23
-0.64
101.53

0.37 100.84

1.40 100.10

2.50 99.29

3.51 98.46

4.53 MSFT 2.65 11/03/22
11/03/2022

0.68 0.68

0.68 0.68

0.68 0.68

0.84 0.84
1,500
24 1.60%
12 0.80%
0 0.00%
-12
-0.80%
-25
-1.64%
-39
-2.54%
-53
-3.45%
92826CAC6

2.80 103.43
-1.50
102.61
-0.49
101.80

0.52 100.98

1.54 100.13

2.64 99.21

3.64 98.28

4.66 V 2.8 12/14/22
12/14/2022

0.79 0.79

0.79 0.79

0.79 0.79

0.96 0.96
5,000
133

2.63%
66 1.31%
0 0.00%
-65
-1.29%
-129
-2.55%
-192
-3.80%
-254
-5.03%
30231GBL5

1.57 103.80
-1.34
102.46
-0.33
101.14

0.68 99.84

1.70 98.56

2.71 97.30

3.73 96.06

4.75 XOM 1.571 04/15/23
04/15/2023

1.29 1.29

1.29 1.29

1.29 1.29

1.29 1.29

Page 38 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Shocked CUSIP Analysis
-200
-100
Base
+100
+200
+300
+400
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
Dur
WAL
WAL
WAL
WAL
WAL
1,000
21 2.04%
10 1.02%
0 0.00%
-10
-1.03%
-21
-2.09%
-33
-3.19%
-44
-4.30%
30231GAR3

2.73 104.19
-1.41
103.14
-0.40
102.10

0.62 101.06

1.66 99.97

2.76 98.84

3.74 97.71

4.76 XOM 2.726 03/01/23
03/01/2023

1.00 1.00

1.01 1.00

1.00 1.00

1.17 1.17
Corporate
12,575
278

2.18%
138

1.08%
0 0.00%
-137
-1.07%
-274
-2.15%
-411
-3.23%
-547
-4.30%

1.98 103.46
-1.41
102.35
-0.40
101.26

0.61 100.17

1.63 99.08

2.67 97.99

3.68 96.90

4.70 1.07

1.07 1.07

1.07 1.07

1.07 1.12

1.12 245
7 2.76%
3 1.37%
0 0.00%
-3
-1.35%
-7
-2.68%
-10
-3.98%
-13
-5.27%
20033AYE0

3.10 106.79
-1.78
105.34
-0.77
103.92

0.23 102.52

1.24 101.14

2.26 99.78

3.27 98.45

4.29 ADS 3.1 05/15/23
05/15/2023

1.38 1.38

1.36 1.38

1.38 1.38

1.38 1.38
245
2 0.85%
1 0.42%
0 0.00%
-1
-0.42%
-2
-0.83%
-3
-1.25%
-4
-1.66%
02587CFM7

2.40 101.75
-1.79
101.32
-0.78
100.90

0.22 100.48

1.23 100.06

2.24 99.64

3.26 99.23

4.27 AXP 2.4 05/31/22
05/31/2022

0.42 0.42

0.42 0.42

0.42 0.42

0.42 0.42
245
2 0.73%
1 0.37%
0 0.00%
-1
-0.36%
-2
-0.73%
-3
-1.09%
-4
-1.44%
05580AMR2

2.95 101.73
-1.82
101.36
-0.82
100.99

0.18 100.62

1.18 100.26

2.19 99.90

3.19 99.54

4.20 BMW 2.95 05/11/22
05/11/2022

0.36 0.36

0.36 0.36

0.36 0.36

0.36 0.36
245
7 2.76%
3 1.37%
0 0.00%
-3
-1.35%
-7
-2.67%
-10
-3.98%
-13
-5.26%
17312QL23

3.15 106.86
-1.81
105.42
-0.80
103.99

0.21 102.59

1.22 101.21

2.23 99.86

3.25 98.52

4.26 C 3.15 05/11/23
05/11/2023

1.36 1.36

1.35 1.36

1.36 1.36

1.36 1.36
245
2 0.77%
1 0.38%
0 0.00%
-1
-0.38%
-2
-0.76%
-3
-1.13%
-4
-1.51%
29278TBF6

2.95 101.82
-1.76
101.43
-0.77
101.04

0.23 100.66

1.23 100.28

2.24 99.90

3.25 99.52

4.26 Enerbank USA
05/18/2022

0.38 0.38

0.38 0.38

0.38 0.38

0.38 0.38
245
2 0.84%
1 0.42%
0 0.00%
-1
-0.42%
-2
-0.83%
-3
-1.24%
-4
-1.65%
51210SMT1

2.00 101.58
-1.78
101.15
-0.78
100.73

0.23 100.31

1.24 99.90

2.25 99.48

3.26 99.07

4.28 LAKESD 2 05/31/22
05/31/2022

0.42 0.42

0.42 0.42

0.42 0.42

0.42 0.42
245
7 2.76%
3 1.37%
0 0.00%
-3
-1.34%
-7
-2.67%
-10
-3.97%
-13
-5.25%
61747MX30

3.15 106.85
-1.81
105.41
-0.80
103.98

0.21 102.59

1.22 101.21

2.23 99.86

3.25 98.52

4.26 MS 3.15 05/10/23
05/10/2023

1.36 1.36

1.35 1.36

1.36 1.36

1.36 1.36
245
2 0.76%
1 0.38%
0 0.00%
-1
-0.37%
-2
-0.75%
-3
-1.12%
-4
-1.49%
86063QAN5

2.85 101.75
-1.80
101.37
-0.81
100.99

0.19 100.61

1.19 100.23

2.20 99.86

3.21 99.49

4.21 SF 2.85 05/16/22
05/16/2022

0.38 0.38

0.38 0.38

0.38 0.38

0.38 0.38

Page 39 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Shocked CUSIP Analysis
-200
-100
Base
+100
+200
+300
+400
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
Dur
WAL
WAL
WAL
WAL
WAL
245
7 2.76%
3 1.37%
0 0.00%
-3
-1.35%
-7
-2.67%
-10
-3.98%
-13
-5.26%
87164WWF1

3.15 106.86
-1.81
105.42
-0.80
103.99

0.21 102.59

1.22 101.21

2.23 99.86

3.25 98.52

4.26 SYF 3.15 05/11/23
05/11/2023

1.36 1.36

1.35 1.36

1.36 1.36

1.36 1.36
CD
2,205
38 1.68%
19 0.83%
0 0.00%
-19
-0.82%
-37
-1.63%
-55
-2.44%
-73
-3.23%

2.86 104.00
-1.79
103.14
-0.79
102.28

0.21 101.44

1.22 100.61

2.23 99.79

3.24 98.98

4.26 0.82

0.82 0.83

0.82 0.82

0.82 0.82

0.82 249
0 0.17%
0 0.09%
0 0.00%
0 -0.09%
0 -0.17%
-1
-0.26%
-1
-0.34%

PLMDLCAMP

0.30 100.17
-1.76
100.09
-0.73
100.00

0.30 99.91

1.34 99.83

2.38 99.74

3.42 99.66

4.48 CAMP
01/31/2022

0.08 0.08

0.09 0.08

0.08 0.08

0.08 0.08
30,060
52 0.17%
26 0.09%
0 0.00%
-26
-0.09%
-52
-0.17%
-77
-0.26%
-103
-0.34%

PLMDLLAIF

0.78 100.17
-1.28
100.09
-0.25
100.00

0.78 99.91

1.82 99.83

2.86 99.74

3.91 99.66

4.97 LAIF
01/31/2022

0.08 0.08

0.09 0.08

0.08 0.08

0.08 0.08
17,194
30 0.17%
15 0.09%
0 0.00%
-15
-0.09%
-30
-0.17%
-44
-0.26%
-59
-0.34%

PLMDLLAIF

0.78 100.17
-1.28
100.09
-0.25
100.00

0.78 99.91

1.82 99.83

2.86 99.74

3.91 99.66

4.97 LAIF
01/31/2022

0.08 0.08

0.09 0.08

0.08 0.08

0.08 0.08
17,700
31 0.17%
15 0.09%
0 0.00%
-15
-0.09%
-30
-0.17%
-46
-0.26%
-61
-0.34%

PLMDLLAIF

0.78 100.17
-1.28
100.09
-0.25
100.00

0.78 99.91

1.82 99.83

2.86 99.74

3.91 99.66

4.97 LAIF
01/31/2022

0.08 0.08

0.09 0.08

0.08 0.08

0.08 0.08
Other
65,203
112

0.17%
56 0.09%
0 0.00%
-56
-0.09%
-112
-0.17%
-168
-0.26%
-224
-0.34%

0.78 100.17
-1.29
100.09
-0.26
100.00

0.78 99.91

1.82 99.83

2.86 99.74

3.91 99.66

4.96 0.08

0.08 0.09

0.08 0.08

0.08 0.08

0.08 Total
229,198
6,284

2.73%
3,491

1.52%
0 0.00%
-4,230
-1.84%
-8,516
-3.70%
-12,714
-5.52%
-16,783
-7.29%

1.18 103.22
-1.51
102.00
-0.43
100.47

0.96 98.63

1.88 96.76

2.88 94.93

3.89 93.15

4.91 2

1.14 1.14

1.78 1.56

1.99 2.03

2.03 2.03

Page 40 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Portfolio Changes
New Securities 9/2021-12/2021
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
3130AQDY6
Treasury/Agency
FHLB 1 12/30/24
12/30/2024

1.00 6,750,000
100.00
AFS
3133ENHW3
Treasury/Agency
FFCB 1.17 06/23/25
06/23/2025

1.17 10,000,000
100.00
AFS
3133ENJC5
Treasury/Agency
FFCB 1.29 12/22/26
12/22/2026

1.29 5,000,000
100.00
AFS
3134GWUG9
Treasury/Agency
FHLMC 0.57 09/24/25
09/24/2025

0.57 10,000,000
100.00
AFS
3134GXBM5
Treasury/Agency
FHLMC 0.6 11/12/25
11/12/2025

0.60 1,150,000
100.00
AFS
3136G4ZP1
Treasury/Agency
FNMA 0.65 07/30/25
07/30/2025

0.65 3,500,000
100.00
AFS
91282CBA8
Treasury/Agency
T 0 1/8 12/15/23
12/15/2023

0.13 15,000,000
100.00
AFS
91282CDN8
Treasury/Agency
T 1 12/15/24
12/15/2024

1.00 20,000,000
100.00
AFS
Partial Buy9/2021-12/2021
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
Redemption Type

PLMDLCAMP
Other
CAMP
01/31/2022

0.30 248,736
100.00
AFS
Same CUSIP buys
Securities Sold/Redeemed 9/2021-12/2021
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
Redemption Type

PLMDLLAIF
Other
LAIF
01/31/2022

0.78 64,954,697
100.00
AFS
Partial Sale

Page 41 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Shocked Assumptions
Scenarios
Down 200
Down 100
Base
Up 100
Up 200
Up 300
Up 400
Shift Amount
-200
-100
0 100
200
300
400
Curve Slope Change
0 0
0 0
0 0
0 Shock Horizon
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Curve Type
Static
Static
Static
Static
Static
Static
Static
Valuation Date
2021-12-31
2021-12-31
2021-12-31
2021-12-31
2021-12-31
2021-12-31
2021-12-31

Page 42 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Assumptions
·

Calculation Engine
The Yield Book © and ZM Financial
·

Cash Flow Model
The Yield Book ©
·

Curve Date
Same as Portfolio As Of Date
·

Curve Type Used
Swap Curve
·

Curve Shape
Immediate Sustained Parallel Shocks
·

Price Shock Methodology
Constant OAS for fixed rate securities; immediate market shift for floating rate securities ·

Horizon Period
Immediate Time Horizon
·

Reinvestment Rate
3 Month T-Bill
·

Cost of Funds

1.00%
·

Tax Rate

21.0%
Additional Information
Rolloff Yield
- Rolloff Yield is the weighted average yield of the cashflows (maturities, calls and paydowns) that roll off during the noted time period. Ending Book Yield is the weighted average yield of the remaining securities at the noted time period.

Shocked Scenarios
- All shocked scenarios are instant and parallel and assume a sustained rate cycle from that point on. LIBOR OAS is held constant in order to generate shocked market scenarios and The Yieldbook was used to generate the projected cash flows. In shocked scenarios, 0.01% is considered the floor.

Bonds Likely to be Called
- The page identifies all callable agencies which will either be called or mature in the next 12 months in any of the shocked scenarios. The methodology used to determine the call assumes a small internal margin to account for the "cost to call." Municipals
- For taxable institutions, the above tax rate detailed - along with TEFRA adjustments for BQs - is used to calculate TEY unless otherwise input. Ratings are a blend of Moody's and Standard & Poors.

Duration
- Duration in the shocked detail section is generated by Yield Book.

Original Face
- If original face was not supplied, original face was estimated by dividing current face by current factor.

Yields
-
All yields are Yield to Projected Scenario. (Assumes 100% of The Yield Book prepayment model).

Page 43 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

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. All rights reserved.

Page 44 of 44 ends

Portfolio ID:
6748
-
58411
As Of Date:
12/31/2021
City of Palmdale

Portfolio Review and Analysis Prepared for:

City of Palmdale - Successor Agency
As of Date: 12/31/2021
Date of Analysis: 01/10/2022
For Distribution to Institutional Clients Only

REFER TO THE LAST PAGE OF THIS REPORT FOR STIFEL FIXED INCOME CAPITAL MARKETS DISCLOSURES Account Executive: Bill Blackwill
Pricing as of: 12/31/2021
Palmdale, CA

Book Value
3,695
# Securities
1 Average Size (Book)
3,695
Book Yield

0.78 Market Yield

0.78 $ Gain/Loss
0 % Gain/Loss

0.0%
Average Life

0.08 Average Life +300bps

0.08 % Price Change +100bps
-0.09
% Price Change +300bps
-0.26
Effective Duration

0.09 Effective Convexity

0.00 AFS / HTM%
100% / 0%
Fixed / Floating
100% / 0%
ESG/Green Par (000's)
$0 / $0
Portfolio Overview

Page 2 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Historical Portfolio Overview
12/31/2021
09/30/2021
06/30/2021
03/31/2021
Book Value
3,695
5,192
5,188
5,182
Book Yield

0.78 0.78

0.78 0.78
Book Yield (+100)

0.78 0.78

0.78 0.78
Book Yield (+300)

0.78 0.78

0.78 0.78
Book Yield (-100)

0.78 0.78

0.78 0.78
WAL

0.08 0.08

0.08 0.08
WAL (+100)

0.08 0.08

0.08 0.08
WAL (+300)

0.08 0.08

0.08 0.08
WAL (-100)

0.08 0.08

0.08 0.08
% Price Change (+100)
-0.1%
-0.1%
-0.1%
-0.1%
% Price Change (+300)
-0.3%
-0.3%
-0.3%
-0.2%
% Price Change (-100)

0.1%

0.1%

0.1%

0.1%
Effective Duration

0.09 0.09

0.09 0.08
Effective Convexity

0.00 0.00

0.00 0.00
$ Gain/Loss
0 0
0 0
% Gain/Loss

0.0%

0.0%

0.0%

0.0%
Principal Cash Flow 2 yrs out
100%
100%
100%
100%
Principal Cash Flow 2 yrs out (+100)
100%
100%
100%
100%
Principal Cash Flow 2 yrs out (+300)
100%
100%
100%
100%
Principal Cash Flow 2 yrs out (-100)
100%
100%
100%
100%

Page 3 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Portfolio Sector Summary
Portfolio
Par
Book
Market
% Price Change
Gain/(Loss)
Effective
AFS
Sector
%
Value
Cpn
Maturity
Value
Yield
Value
Yield
-100
+100
+300
$
%
WAL
Dur
Cvx
%
Cash & Other (1)
100.0%
3,695

0.78 0.1 yrs
3,695

0.78 3,695

0.78 0.1
-0.1
-0.3
0 0.0%

0.08 0.09

0.00 100 %
Other (1)
100.0%
3,695

0.78 0.1 yrs
3,695

0.78 3,695

0.78 0.1
-0.1
-0.3
0 0.0%

0.08 0.09

0.00 100 %
Total (1)
100.0%
3,695

0.78 0.1 yrs
3,695

0.78 3,695

0.78 0.1
-0.1
-0.3
0 0.0%

0.08 0.09

0.00 100 %

Page 4 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Shocked Analysis
-200
-100
Base
+100
+200
+300
+400
Par Value
3,695
3,695
3,695
3,695
3,695
3,695
3,695
Book Value
3,695
3,695
3,695
3,695
3,695
3,695
3,695
Market Value
3,701
3,698
3,695
3,692
3,689
3,686
3,682
Gain/(Loss)
6 3
0 -3
-6
-10
-13
Gain/(Loss) %

0.2%

0.1%

0.0%
-0.1%
-0.2%
-0.3%
-0.3%
Gain/(Loss) % - Chg from Base

0.2%

0.1%

0.0%
-0.1%
-0.2%
-0.3%
-0.3%
Book Price
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Book Yield

0.78 0.78

0.78 0.78

0.78 0.78

0.78 Market Price
100.17
100.09
100.00

99.91 99.83

99.74 99.66
Market Yield
-1.28
-0.25

0.78 1.82

2.86 3.91

4.97 WAL

0.08 0.08

0.08 0.08

0.08 0.08

0.08

Page 5 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Price Risk & Market Value Change by Sector
AFS
HTM
% Change in Market Value from Level
Eff
% Change in Market Value from Level
Eff
Sector
-100
Mkt Value
+100
+200
+300
Dur
-100
Mkt Value
+100
+200
+300
Dur
Other

0.1%
3,695
-0.1%
-0.2%
-0.3%

0.1%
Total

0.1%
3,695
-0.1%
-0.2%
-0.3%

0.1%
Scenario Market Val
3,698
3,695
3,692
3,689
3,686
Scenario Gain/Loss
3 0
-3
-6
-10
Total Portfolio (AFS + HTM):
% Change in Market Val from Level
-200 bps

0.2%
-100 bps

0.1%
Level Market Val
3,695
+100 bps
-0.1%
+200 bps
-0.2%
+300 bps
-0.3%
+400 bps
-0.3%
Effective Duration

0.09 Effective Convexity

0.00

Page 6 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Peer Group Comparison
As of
Book
G/L
Book
Average Life
% Price Change
Effective
UST
Fix
Fix
Flt
Agy
Sm
Prv
CD &
%
%
Peer
Date
Value
%
Yield
Base
-100
+300
-100
+100
+300
Dur
Cvx
Agy
MBS
ARM
CMO
CMO
CMBS
Bus.

Label
Muni
Corp
Oth
Fixed
AFS
1 12/21
4,442
-2.0

0.67 2.8

0.5 3.9

2.3 -3.5
-10.4

3.3 -0.1
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
2 09/21
490

0.8 2.14

0.4 0.4

0.4 0.4
-0.4
-1.1

0.4 0.0
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
50%
0%
3 12/21
7,541
-0.4

1.31 3.3

3.0 3.5

3.2 -3.3
-9.5

3.3 0.1
17%
0%
0%
0%
0%
0%
0%
0%
0%
3%
79%
100%
100%
4 12/21
11,000
-1.4

0.81 2.7

0.3 4.0

1.8 -3.4
-10.5

3.2 -0.6
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
5 09/21
13,837

1.7 1.68

2.5 2.5

2.6 2.5
-2.4
-7.1

2.5 0.1
0%
0%
0%
0%
0%
0%
0%
0%
25%
38%
37%
100%
100%
6 09/21
15,237

0.8 1.55

2.9 2.9

2.9 2.8
-2.7
-7.9

2.8 0.1
0%
0%
0%
0%
0%
0%
0%
0%
40%
31%
30%
100%
100%
7 09/21
20,315
-0.3

1.07 2.6

2.0 3.6

2.6 -3.3
-9.7

3.1 -0.5
54%
0%
0%
0%
0%
0%
0%
0%
1%
6%
39%
100%
100%
8 12/21
20,613
-1.4

0.77 2.4

0.5 3.5

2.0 -3.1
-9.3

2.9 -0.2
99%
0%
0%
0%
0%
0%
0%
0%
0%
0%
1%
100%
100%
9 12/21
31,578
-1.7

0.86 2.7

0.8 3.9

2.4 -3.3
-10.1

3.2 -0.2
99%
0%
0%
0%
0%
0%
0%
0%
0%
0%
1%
100%
100%
10 09/21
36,897
-0.1

1.20 2.1

1.0 4.1

1.9 -3.4
-10.4

3.0 -1.5
67%
0%
0%
0%
0%
0%
0%
0%
1%
0%
32%
99%
100%
11 12/21
44,873
-1.1

0.82 2.4

1.1 4.0

2.1 -3.0
-9.6

2.8 -0.5
73%
1%
0%
1%
0%
0%
0%
0%
0%
11%
13%
95%
100%
12 09/21
46,875

3.7 2.24

3.4 3.3

3.8 3.4
-3.4
-9.9

3.4 -0.1
47%
3%
0%
0%
0%
0%
0%
0%
6%
28%
15%
97%
100%
13 10/21
48,396

0.3 0.99

2.5 2.5

2.6 2.6
-2.5
-7.2

2.5 0.1
63%
0%
0%
0%
0%
1%
0%
9%
7%
16%
3%
96%
100%
14 10/21
49,225

0.4 0.64

0.4 0.4

0.5 0.4
-0.5
-1.4

0.5 -0.1
3%
0%
0%
0%
0%
0%
0%
0%
2%
4%
92%
100%
100%
15 11/21
49,455

0.2 0.48

0.5 0.4

0.6 0.5
-0.6
-1.7

0.5 0.0
2%
0%
0%
0%
0%
0%
0%
0%
0%
7%
92%
100%
100%
16 11/21
98,932
-0.8

0.89 1.8

0.7 3.3

1.6 -2.8
-8.8

2.6 -0.7
98%
0%
0%
0%
0%
0%
0%
0%
0%
0%
2%
100%
100%
17 09/21
101,494

0.0 0.78

1.7 1.4

3.0 1.2
-2.7
-8.1

2.3 -1.6
50%
0%
0%
0%
0%
0%
0%
0%
17%
20%
13%
99%
100%
18 09/21
110,143

0.0 0.43

0.9 0.6

1.8 0.8
-1.6
-4.9

1.3 -1.0
44%
0%
0%
0%
0%
0%
0%
0%
0%
0%
55%
100%
100%
19 12/21
120,897
-0.7

0.46 1.5

1.2 1.9

1.5 -1.7
-5.1

1.6 0.0
28%
0%
0%
0%
0%
0%
0%
0%
38%
1%
33%
100%
100%
20 10/21
142,561
-0.1

0.33 1.2

1.0 1.4

1.2 -1.3
-4.0

1.3 -0.1
89%
0%
0%
0%
0%
0%
0%
0%
4%
0%
7%
100%
100%
21 12/21
186,188

0.4 1.57

2.7 2.6

2.7 2.6
-2.6
-7.4

2.6 0.1
68%
0%
0%
0%
0%
0%
0%
0%
10%
11%
10%
100%
100%
22 11/21
202,145
-1.0

0.31 1.7

0.6 2.5

1.5 -2.3
-6.9

2.2 -0.3
79%
0%
0%
0%
0%
0%
0%
0%
21%
0%
0%
100%
100%
23 12/21
229,198

0.5 1.18

1.6 1.1

2.0 1.5
-1.8
-5.5

1.8 -0.1
65%
0%
0%
0%
0%
0%
0%
0%
0%
5%
29%
100%
100%
24 12/21
248,708
-0.1

1.93 2.2

2.1 2.2

2.2 -2.1
-6.2

2.2 0.1
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
25 11/21
294,911
-0.6
-0.75

1.0 0.4

1.6 0.8
-1.5
-4.6

1.4 -0.4
64%
0%
0%
0%
0%
0%
0%
0%
29%
7%
0%
100%
100%
Avg
85,438
-0.1

0.98 2.0

1.3 2.7

1.8 -2.4
-7.1

2.3 -0.3
56%
0%
0%
0%
0%
0%
0%
0%
8%
8%
27%
97%
96%
Port
3,695

0.0 0.78

0.1 0.1

0.1 0.1
-0.1
-0.3

0.1 0.0
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
100%
Diff
-81,743

0.1 -0.19
-1.9
-1.2
-2.6
-1.7

2.3 6.8
-2.2

0.3 -56%
0%
0%
0%
0%
0%
0%
0%
-8%
-8%
73%
3%
4%

Page 7 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Yield and Average Life Peer Comparison
Price Risk Peer Comparison
Each box contains the range of your peer group, the top and bottom of the boxes being the max and min. The red box is the avg. of your peers within the range and the gray dot represents your position.

Page 8 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Cash Flow and Yield Rolloff - Next 12 Months
Yield Rolloff
Month
Begin BY
Principal CF
Rolloff Yld
Ending BY
Jan 2022

0.78 3,695

0.78 Feb 2022
0 0.00
Mar 2022
0 0.00
Apr 2022
0 0.00
May 2022
0 0.00
Jun 2022
0 0.00
Jul 2022
0 0.00
Aug 2022
0 0.00
Sep 2022
0 0.00
Oct 2022
0 0.00
Nov 2022
0 0.00
Dec 2022
0 0.00
Shocked Principal and Interest Cash Flow Analysis
Year
-200
-100
Base
+100
+200
+300
+400
Jan 2022
3,697
3,697
3,697
3,697
3,697
3,697
3,697

Page 9 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Cash Flow and Yield Rolloff - Next 10 Years
Yield Rolloff
Year
Begin BY
Principal CF
Rolloff Yld
Ending BY
2022

0.78 3,695

0.78 2023
2024
2025
2026
2027
2028
2029
2030
2031
Shocked Principal and Interest Cash Flow Analysis
Year
-200
-100
Base
+100
+200
+300
+400
2022
3,697
3,697
3,697
3,697
3,697
3,697
3,697

Page 10 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Sector Cash Flow and Yield Rolloff - Next 12 Months
Jan 22
Feb 22
Mar 22
Apr 22
May 22
Jun 22
Jul 22
Aug 22
Sep 22
Oct 22
Nov 22
Dec 22
Bk Yld Chg
Other
Cash Flow
3,697
0 0
0 0
0 0
0 0
0 0
0 End BY

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 Total
Cash Flow
3,697
0 0
0 0
0 0
0 0
0 0
0 End BY

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00

Page 11 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Sector Cash Flow and Yield Rolloff - Next 3 Years
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
Bk Yld Chg
Other
Cash Flow
3,697
0 0
0 0
0 0
0 0
0 0
0 End BY

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 Total
Cash Flow
3,697
0 0
0 0
0 0
0 0
0 0
0 End BY

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00

Page 12 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Gap Analysis - Potential Income Impact of Principal Reinvestment Assumed
Estimated
Income
Resulting
Reinvestment
Annualized
Difference from
Book
Yield
Income
Current Book
Yield

0.25 9
-20

0.25 0.50
18 -10

0.50 0.75
28 -1

0.75 1.00
37 8

1.00 1.25
46 17

1.25 1.50
55 27

1.50 1.75
65 36

1.75 2.00
74 45

2.00 2.25
83 54

2.25 2.50
92 64

2.50 2.75
102
73 2.75

3.00 111
82 3.00

3.25 120
91 3.25

3.50 129
100

3.50 3.75
139
110

3.75 4.00
148
119

4.00 4.25
157
128

4.25 4.50
166
137

4.50 4.75
176
147

4.75 5.00
185
156

5.00 5.25
194
165

5.25 5.50
203
174

5.50 5.75
212
184

5.75 6.00
222
193

6.00 6.25
231
202

6.25 6.50
240
211

6.50 6.75
249
221

6.75 7.00
259
230

7.00 7.25
268
239

7.25 7.50
277
248

7.50 7.75
286
257

7.75 8.00
296
267

8.00 Principal Maturing(12 Mo.Horizon): $3,695
Current Book Yield of Principal Maturing: 0.78%
Est. Annual Income at Current Book Yield: $29

Page 13 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Shocked Cash Flows By Sector - Next 10 Years

Page 14 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Cash Flows By Sector - Next 30 Years

Page 15 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Cash Flow Projection By Month - Next 5 Years

Page 16 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Other - Summary
Book
Market
G/L $
G/L %
WAL
Px Chg
Dur
Cvx
Sector
Par
Maturity
Price
Price
Base
Base
Base
-100
Base
Base
Subsector
%
Value
Cpn
Next Call
Value
Yield
Value
Yield
+ 300
+ 300
+ 300
+300
AFS %

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.09 0.00
Cash & Other (1)
100.0%
3,695

0.78 3,695

0.78 3,695

0.78 -10
-0.3%

0.08 -0.3
100.0%

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.09 0.00
Total (1)
100.0%
3,695

0.78 3,695

0.78 3,695

0.78 -10
-0.3%

0.08 -0.3
100.0%

Page 17 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Portfolio Considerations
Par
Book
Market
Gain/
Book
Eff.

Historical CPR
Proj. CPR
Loan
Sector
Cnt
Cpn
Maturity
Value
Price
Price
(Loss)
Yield
WAL
Dur
1 Mo.
3 Mo.

Life
Life
Count
Book Yield < 1.5%
1 0.78

0.1 yrs
3,695
100.00
100.00
0 0.78

0.1 0.09
Cash & Other
1 0.78

0.1 yrs
3,695
100.00
100.00
0 0.78

0.1 0.09

Page 18 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Key Portfolio Sorts
Top 10 Up 300 Market Value Changes (%)
Par
Book
Market
Book
% Px
Δ
$ Amt
Δ
G/L
Eff.

CUSIP
Sector
Description
Cpn
Maturity
Value
Price
Price
G/L
Yield
WAL
+300
+300
+300
Dur
INT

PLMDLLAIF
Cash & Other
LAIF

0.78 01/31/22
3,695
100.00
100.00
0 0.781

0.08 -0.26
-10
-10

0.09 AFS

0.78 3,695
100.00
100.00
0 0.781

0.08 -0.26
-10
-10

0.09 Top 10 Up 300 Market Value Changes ($)
Par
Book
Market
Book
% Px
Δ
$ Amt
Δ
G/L
Eff.

CUSIP
Sector
Description
Cpn
Maturity
Value
Price
Price
G/L
Yield
WAL
+300
+300
+300
Dur
INT

PLMDLLAIF
Cash & Other
LAIF

0.78 01/31/22
3,695
100.00
100.00
0 0.781

0.08 -0.26
-10
-10

0.09 AFS

0.78 3,695
100.00
100.00
0 0.781

0.08 -0.26
-10
-10

0.09

Page 19 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Key Portfolio Sorts
Top 10 Marked to Market Up 300 Loss Positions
Par
Book
Market
Book
% Px
Δ
$ Amt
Δ
G/L
Eff.

CUSIP
Sector
Description
Cpn
Maturity
Value
Price
Price
G/L
Yield
WAL
+300
+300
+300
Dur
INT

PLMDLLAIF
Cash & Other
LAIF

0.78 01/31/22
3,695
100.00
100.00
0 0.781

0.08 -0.26
-10
-10

0.09 AFS

0.78 3,695
100.00
100.00
0 0.781

0.08 -0.26
-10
-10

0.09 Top 10 Average Life Extension Up 300bps
Par
Book
Market
Book
% Px
Δ
Eff.

WAL
Chg in
CUSIP
Sector
Description
Cpn
Maturity
Value
Price
Price
G/L
Yield
+300
Dur
WAL
+300
WAL
INT

PLMDLLAIF
Cash & Other
LAIF

0.78 01/31/22
3,695
100.00
100.00
0 0.781
-0.26

0.09 0.08

0.08 0.00
AFS

0.78 3,695
100.00
100.00
0 0.781
-0.26

0.09 0.08

0.08 0.00

Page 20 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Other - CUSIP Detail
Coupon
Step
Maturity
Book
Market
Gain/(Loss)
% Px
Δ
Effective
Par
Type
Date
Proj.

Price
Price
%
-100
Dur
ESG/G
r
CUSIP
Ticker
Value
Rate
Rate
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
Fixed
01/22
100.00
100.00

0.0%

0.1 0.09

PLMDLLAIF
3,695

0.780
01/31/22
3,695

0.78 3,695

0.78 0
-0.3

0.00 AFS
100.00
100.00

0.0%

0.1 0.09
Cash & Other
3,695

0.780
3,695

0.78 3,695

0.78 0
-0.3

0.00 100.00
100.00

0.0%

0.1 0.09
Total
3,695

0.780
3,695

0.78 3,695

0.78 0
-0.3

0.00

Page 21 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Shocked CUSIP Analysis
-200
-100
Base
+100
+200
+300
+400
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
Dur
WAL
WAL
WAL
WAL
WAL
3,695
6 0.17%
3 0.09%
0 0.00%
-3
-0.09%
-6
-0.17%
-10
-0.26%
-13
-0.34%

PLMDLLAIF

0.78 100.17
-1.28
100.09
-0.25
100.00

0.78 99.91

1.82 99.83

2.86 99.74

3.91 99.66

4.97 LAIF
01/31/2022

0.08 0.08

0.09 0.08

0.08 0.08

0.08 0.08
Other
3,695
6 0.17%
3 0.09%
0 0.00%
-3
-0.09%
-6
-0.17%
-10
-0.26%
-13
-0.34%

0.78 100.17
-1.28
100.09
-0.25
100.00

0.78 99.91

1.82 99.83

2.86 99.74

3.91 99.66

4.97 0.08

0.08 0.09

0.08 0.08

0.08 0.08

0.08 Total
3,695
6 0.17%
3 0.09%
0 0.00%
-3
-0.09%
-6
-0.17%
-10
-0.26%
-13
-0.34%

0.78 100.17
-1.28
100.09
-0.25
100.00

0.78 99.91

1.82 99.83

2.86 99.74

3.91 99.66

4.97 0

0.08 0.08

0.09 0.08

0.08 0.08

0.08 0.08

Page 22 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Portfolio Changes
Securities Sold/Redeemed 9/2021-12/2021
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
Redemption Type

PLMDLLAIF
Other
LAIF
01/31/2022

0.78 3,695,074
100.00
AFS
Partial Sale

Page 23 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Shocked Assumptions
Scenarios
Down 200
Down 100
Base
Up 100
Up 200
Up 300
Up 400
Shift Amount
-200
-100
0 100
200
300
400
Curve Slope Change
0 0
0 0
0 0
0 Shock Horizon
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Curve Type
Static
Static
Static
Static
Static
Static
Static
Valuation Date
2021-12-31
2021-12-31
2021-12-31
2021-12-31
2021-12-31
2021-12-31
2021-12-31

Page 24 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

Assumptions
·

Calculation Engine
The Yield Book © and ZM Financial
·

Cash Flow Model
The Yield Book ©
·

Curve Date
Same as Portfolio As Of Date
·

Curve Type Used
Swap Curve
·

Curve Shape
Immediate Sustained Parallel Shocks
·

Price Shock Methodology
Constant OAS for fixed rate securities; immediate market shift for floating rate securities ·

Horizon Period
Immediate Time Horizon
·

Reinvestment Rate
3 Month T-Bill
·

Cost of Funds

1.00%
·

Tax Rate

21.0%
Additional Information
Rolloff Yield
- Rolloff Yield is the weighted average yield of the cashflows (maturities, calls and paydowns) that roll off during the noted time period. Ending Book Yield is the weighted average yield of the remaining securities at the noted time period.

Shocked Scenarios
- All shocked scenarios are instant and parallel and assume a sustained rate cycle from that point on. LIBOR OAS is held constant in order to generate shocked market scenarios and The Yieldbook was used to generate the projected cash flows. In shocked scenarios, 0.01% is considered the floor.

Bonds Likely to be Called
- The page identifies all callable agencies which will either be called or mature in the next 12 months in any of the shocked scenarios. The methodology used to determine the call assumes a small internal margin to account for the "cost to call." Municipals
- For taxable institutions, the above tax rate detailed - along with TEFRA adjustments for BQs - is used to calculate TEY unless otherwise input. Ratings are a blend of Moody's and Standard & Poors.

Duration
- Duration in the shocked detail section is generated by Yield Book.

Original Face
- If original face was not supplied, original face was estimated by dividing current face by current factor.

Yields
-
All yields are Yield to Projected Scenario. (Assumes 100% of The Yield Book prepayment model).

Page 25 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

The information contained herein has been prepared from sources believed reliable but is not guaranteed by Stifel and is not a complete summary or statement of all available data, nor is it to be construed as an offer to buy or sell any securities referred to herein. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of investors. Employees of Stifel or its affiliates may, at times, release written or oral commentary, technical analysis, or trading strategies that differ from the opinions expressed within. No investments or services mentioned are available to "private customers" in the European Economic Area or to anyone in Canada other than a "Designated Institution." Stifel and/or its employees involved in the preparation or the issuance of this communication may have positions in the securities or options of the issuer/s discussed or recommended herein.

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2022
Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE, One South Street, Baltimore, MD 21202
. All rights reserved.

Page 26 of 26 ends

Portfolio ID:
6753
-
58411
As Of Date:
12/31/2021
City of Palmdale - Successor Agency

City Council Staff Report
DATE: FEBRUARY 2, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: 2
SUBJECT: ADOPT A RESOLUTION NO. CC 2022-016, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE APPROVING AND

AUTHORIZING THE EXECUTION AND DELIVERY OF A
SUPPLEMENTAL AGREEMENT NO. 5 TO AMENDED AND

RESTATED FISCAL AGENT AGREEMENT RELATED TO
COMMUNITY FACILITIES DISTRICT NO. 93 -1 ( RITTER RANCH ), AND AUTHORIZING ACTIONS RELATED THERETO.

ISSUE
Adopt Resolution No. CC 2022 -016, a Resolution of the City Council of the City of Palmdale approving and authorizing the execution and delivery of a Supplemental Agreement No. 5 to Amended and Restated Fiscal Agent Agreement related to Community Facilities District No. 93-1(Ritter Ranch), and authorizing related actions.

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt Resolution No. CC 2022-016, a Resolution of the City Council of the City of Palmdale approving and authorizing the execution and delivery of a Supplemental Agreement No. 5 to Amended and Restated Fiscal Agent Agreement related to Community Facilities District No. 93 -1(Ritter Ranch), and authorizing related actions.

BACKGROUND
In 1994, the City Council formed the City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch), and in 1995 the City issued special tax bonds for the Community Facilities District to finance various public infrastructure improvements within an d in the vicinity of the proposed Ritter Ranch development. The prior owner of the Ritter Ranch property, Ritter Holdings LLC, failed to make required special tax payments due in February of 2020, and its lender, Preston Hollow Capital, LLC (Preston Hollo w), which also is the owner of the special tax bonds, foreclosed on the Ritter Ranch property and became the owner of the Ritter Ranch property and all of the rights and interests of Ritter Holdings, LLC under agreements with the City and others related toRitter Ranch. Preston Hollow subsequently transferred the Ritter Ranch property to RdR Development Report to Mayor and City Council
Re: Adopt Resolution No. CC 2022-016
February 2, 2022

Page 2 ends

Holdings, LLC, a Delaware limited liability company (“RdR”), of which Preston Hollow is the sole member.

On September 1, 2020, the City Council adopted Resolution No. 2020-091, pursuant to which, at the request of Preston Hollow, it approved a supplement to the agreement pursuant to which the special tax bonds were issued, to defer payments otherwise due on the special tax bonds during the period from March 1, 2020 to and including March 1, 2022 to allow time for Preston Hollow and RdR to determine the actions needed to commence development of the Ritter Ranch property. That Resolution also approved a Deposit Agreement (A-7107) between the City and Preston Hollow (the “Deposit Agreement”) pursuant to which Preston Hollow advanced funds to pay costs of the City and its consultants related to requests by it and RdR relative to the development of the Ritter Ranch property. To date, Preston Hollow had advanced a total of $527,096.94 to the City to be used as provided in the Deposit Agreement, including City actions related to the current request to process a supplement to the agreement pursuant to which the special tax bonds were issued.

DISCUSSION
Since their obtaining ownership of the Ritter Ranch property, Preston Hollow and RdR have proceeded to take actions necessary to restart the development of Ritter Ranch.

Preston Hollow and RdR have asked that the City agree to again amend the documents for the special tax bonds to defer bond payments otherwise due for the next year in order to allow them additional time to take the actions needed to continue the development of the property.

The City Council is now requested to approve a supplement to the agreement governing the special tax bonds to defer payments on the bonds. The supplement has been prepared by the City’s bond counsel, Quint & Thimmig LLP, and has been reviewed by City Finance Department Staff and the City Attorney.

FISCAL IMPACT
There is no impact to the General Fund as the bond payment obligation rests solely with the current property owner, RdR Development Holdings, LLC, of which Preston Hollow is the sole member. The deferral of the bonds payment would trigger Community Facilities Districts 93-1 (Ritter Ranch) to stop levying the property tax and in turn not to make the bond payment to the owner of the special tax bonds, Preston Hollow which a sole member of property owner entity. As such, no budget is requested for this action.

The fiscal impact to consider are the costs of City Staff and consultants related to requests by the bond owner and the current owner of the Ritter Ranch property for City actions in respect of the development of the property in the Ritter Ranch Community Facilities District No. 93-1 and otherwise related to the outstanding bonds. The current owner of the outstanding bonds that have been issued by the City for Community Report to Mayor and City Council
Re: Adopt Resolution No. CC 2022-016
February 2, 2022

Page 3 ends

Facilities District No. 93-1 has deposited funds in the amount $527,096.94 with the City to pay for the costs from September, 2020 to November, 2021. The significant portion of the $527,096.94 deposit was disbursed to consultants, primarily attorneys, for the services provided in connection with the requests by the prior owner, Suncal. Currently, the remaining deposit funds is approximately $307,000. As the deposited funds are depleted, staffs will request the additional funds as necessary.

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: Keith Kang, Finance Manager
Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: Ronda Perez, Acting City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS

1. Resolution No. CC 2022-016

2. Consent to Borrower to Modification of Amended and Restated Fiscal Agent Agreement

3. 5 th Amendment to Fiscal Agent Agreement

4. Cover Letter

5. Officer’s Certificate

6. Petition Deferral of Payment

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-016

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A SUPPLEMENTAL AGREEMENT NO. 5 TO AMENDED AND RESTATED

FISCAL AGENT AGREEMENT RELATED TO COMMUNITY FACILITIES
DISTRICT NO. 93-1 (RITTER RANCH), AND AUTHORIZING ACTIONS

RELATED THERETO
WHEREAS, the City Council of the City of Palmdale (the “City”) has formed the City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) (the “CFD”) and has issued its City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) Special Tax Bonds Series 1995-A Senior Bonds (the “Bonds”) proceeds of which were used to finance various public infrastructure improvements within and in the vicinity of the property in Ritter Ranch (the “Ritter Ranch Property”); and WHEREAS, in connection with the issuance and administration of the Bonds, the City, for and on behalf of the CFD, has entered into an Amended and Restated Fiscal Agent Agreement (A-4261), dated as of March 1, 2014 (the “Original Fiscal Agent Agreement”), between the City, for and on behalf of the CFD, and U.S. Bank National Association, as fiscal agent (the “Fiscal Agent”), and four supplements thereto, including a Supplemental Agreement No. 1 to Amended and Restated Fiscal Agent Agreement, dated as of November 1, 2016 (A-4261), a Supplemental Agreement No. 2 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of August 7, 2018, a Supplemental Agreement No. 3 to Amended and Restated Fiscal Agent Agreement (A- 4261), dated as of November 13, 2018, and a Supplemental Agreement No. 4 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of September 1, 2020, each between the City, for and on behalf of the CFD and the Fiscal Agent (the Original Fiscal Agent Agreement, as so supplemented, is referred to herein as the “Fiscal Agent Agreement”); and
WHEREAS, Preston Hollow Capital, LLC (“Preston Hollow”), the current owner of all of the outstanding Bonds, has advised the City that RdR Development Holdings, LLC (“RdR”), the sole member of which is Preston Hollow, is the owner of the Ritter Ranch Property, which includes all of the property located in the CFD, and has requested that the City, for itself and on behalf of the CFD, enter into a Supplemental Agreement No. 5 to Amended and Restated Fiscal Agent Agreement (A-4261) (the “Fifth Supplement”) with the Fiscal Agent amending the Fiscal Agent Agreement to defer repayment of the principal and interest on the Bonds, and has indicated that it and RdR desire to continue to move forward with the development of the Ritter Ranch Property; and Resolution No. CC 2022-016

Page 2 of 3 ends

WHEREAS, the City is willing to cooperate with RdR in response to its request relative to the Fifth Supplement, and otherwise with the efforts of Preston Hollow and RdR in respect of the development of the Ritter Ranch Property, and Preston Hollow has provided funds pursuant to Deposit Agreement (A-7107) (the “Deposit Agreement”), between the City and Preston Hollow, in order to assure payment of the City’s costs and those of its consultants for work related to the proposed development of the Ritter Ranch Property; and
WHEREAS, the City Council now desires to approve the execution and delivery of the Fifth Supplement, and to authorize actions related thereto, as provided in this Resolution.

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 Fifth Supplement, in the form on file with the City Clerk, is hereby approved. The Mayor is hereby authorized and directed to execute and deliver the Fifth Supplement, for and on behalf of the City and the CFD, in said form together with such additions thereto or changes therein as are approved by the Mayor upon consultation with the City Attorney and Bond Counsel to the City, the approval of such additions or changes to be conclusively evidenced by the execution and delivery of the Fifth Supplement by the Mayor.

SECTION 2. The City Council hereby authorizes the Mayor, the City Manager, and all other applicable officers of the City, including but not limited to the Finance Manager, to execute all such documents and to take all actions as are necessary or desirable to implement the Fifth Supplement.

PASSED, APPROVED and ADOPTED this 2nd day of February 2022. _________________________________
Approved as to form: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher L. Beck Shanae S. Smith, City Clerk
City Attorney
Resolution No. CC 2022-016

Page 3 of 3 ends

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 2nd day of February 2022 by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Shanae S. Smith, City Clerk
Quint & Thimmig LLP 1/10/22
16007.44:J18024
CONSENT OF BONDOWNER TO MODIFICATION OF AMENDED AND RESTATED FISCAL AGENT AGREEMENT FOR CITY OF PALMDALE COMMUNITY FACILITIES DISTRICT NO. 93-1 (RITTER RANCH) City of Palmdale, California City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) U.S. Bank National Association, as Fiscal Agent Preston Hollow Capital, LLC, a Delaware limited liability company, by its execution below of this Consent of Bondowner to Modification of Amended and Restated Fiscal Agent Agreement for City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) (this “Consent”), hereby represents and certifies to the City of Palmdale, California (the “City”), the City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) (the “CFD”), and U.S. Bank National Association, as fiscal agent (the “Fiscal Agent”) under the Amended and Restated Fiscal Agent Agreement (A-4261), dated as of March 1, 2014, between the City, for and on behalf of the CFD, and the Fiscal Agent (as amended and supplemented by Supplemental Agreement No. 1 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of November 1, 2016, Supplemental Agreement No. 2 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of August 7, 2018, Supplemental Agreement No. 3 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of November 13, 2018, and Supplemental Agreement No. 4 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of September 1, 2020, each between the City, for and on behalf of the CFD, and the Fiscal Agent, the “Fiscal Agent Agreement”), as follows: (a) it is the sole owner of all right, title and interest in and to the outstanding City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) Special Tax Bonds Series 1995-A Senior Bonds with the CUSIP number 696738BJ1 (the “Bonds”), and the person executing this Consent for it is duly authorized to do so on its behalf; (b) it hereby consents to the amendments to the Fiscal Agent Agreement contemplated by Section 1 of the Supplemental Agreement No. 5 to Fiscal Agent Agreement (A-4261), the form of which is attached hereto as Exhibit A; and (c) it hereby agrees to indemnify, defend and hold the City, the CFD and the Fiscal Agent harmless from any and all claims, costs, liabilities, damages and expenses, including but not limited to attorneys’ fees and costs, originating from any false statement by it in this Consent. Dated: January __, 2022 PRESTON HOLLOW CAPITAL, LLC, a Delaware limited liability company By: Name: Title:

A-1
EXHIBIT A SUPPLEMENTAL AGREEMENT NO. 5 TO AMENDED AND RESTATED FISCAL AGENT AGREEMENT (A-4261) by and between the CITY OF PALMDALE, CALIFORNIA and U.S. BANK NATIONAL ASSOCIATION, as Fiscal Agent dated as of February 2, 2022 relating to: City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) Special Tax Bonds Series 1995-A Senior Bonds

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SUPPLEMENTAL AGREEMENT NO. 5 TO AMENDED AND RESTATED FISCAL AGENT AGREEMENT THIS SUPPLEMENTAL AGREEMENT NO. 5 TO AMENDED AND RESTATED FISCAL AGENT AGREEMENT No. A-4261 (this “Supplement No. 5”), dated as of February 2, 2022, is by and between the City of Palmdale, California, a municipal corporation organized and existing under the laws of the State of California (the “City”), for and on behalf of the City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) (the “CFD”), and U.S. Bank National Association, a national banking association duly organized and existing under the laws of the United States of America, as fiscal agent (the “Fiscal Agent”), and amends and supplements that certain Amended and Restated Fiscal Agent Agreement (A-4261), dated as of March 1, 2014 (as amended and supplemented by Supplemental Agreement No. 1 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of November 1, 2016, Supplemental Agreement No. 2 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of August 7, 2018, Supplemental Agreement No. 3 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of November 13, 2018, and Supplemental Agreement No. 4 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of September 1, 2020, each between the City, for and on behalf of the CFD, and the Fiscal Agent, the “Amended FA Agreement”), by and between the City, for and on behalf of the CFD, and the Fiscal Agent. Capitalized terms used in this Supplement No. 5 and not otherwise defined herein have the meanings given to such terms in the Amended FA Agreement. RECITALS: A. The City has received a request by RdR Development Holdings, LLC, the current owner of all of the property located in the CFD, to amend the Amended FA Agreement in order to defer the principal and interest otherwise due on the Bonds during the period from March 1, 2022 to and including March 1, 2023, as reflected in this Supplement No. 5, and the sole owner of the Bonds is expected to consent to the provisions of Section 1 of this Supplement No. 5. B. Section 8.01 of the Amended FA Agreement provides that it may be amended with the consent of the Owners of at least sixty percent (60%) in aggregate principal amount of the Outstanding Bonds. C. This Supplement No. 5 is a “Supplemental Agreement,” as defined in the Amended FA Agreement. D. The City has requested that the Fiscal Agent enter into this Supplement No. 5. E. This Supplement No. 5 shall become effective as provided in Section 7 of this Supplement No. 5. AGREEMENT: NOW, THEREFORE, the City, for and on behalf of the CFD, and the Fiscal Agent, agree as follows: Section 1. Amendments. (a) The second paragraph of Section 2.02(E) of the Amended FA Agreement and the form of the Bonds in Exhibit A to the Amended FA Agreement are each hereby amended by deleting the second paragraph thereof and by inserting therein, in lieu thereof, the following: “Notwithstanding the foregoing or any other provision of this Agreement

A-3
to the contrary, the interest otherwise due on the Bonds on the Interest Payment Dates occurring on March 1, 2020 to and including March 1, 2023, shall be due and payable on September 1, 2023.” (b) The second paragraph of Section 2.03(A)(ii) of the Amended FA Agreement and the eighth paragraph of the form of the Bonds in Exhibit A to the FA Agreement are each hereby amended and restated in whole to read as follows: “The Bonds maturing on September 1, 2024 are subject to mandatory sinking payment redemption in part on September 1, 2017, and on each September 1 thereafter to maturity by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption without premium, from sinking payments as follows: Redemption Date Sinking Payments September 1, 2017 $ 835,000 September 1, 2018 0 September 1, 2019 0 September 1, 2020 0 September 1, 2021 0 September 1, 2022 0 September 1, 2023 3,770,000 September 1, 2024 (maturity) 18,895,000” Section 2. Execution in Several Counterparts. This Supplement No. 5 may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document. The delivery of an executed counterpart of this Supplement No. 5 by facsimile or PDF or similar attachment to an email shall constitute effective delivery of such counterpart for all purposes with the same force and effect as the delivery of an original, executed counterpart. Section 3. Governing Law. This Supplement No. 5 shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and performed in such State. Section 4. Incorporation By Reference. The City and the Fiscal Agent agree that the amendment contained in this Supplement No. 5 shall be incorporated by this reference thereto into the Amended FA Agreement, which Amended FA Agreement as so amended shall serve as the sole operative Agreement (as such term is defined in the Amended FA Agreement) in connection with the Bonds. Section 5. Ratification and Reaffirmation of Amended FA Agreement. Except as hereby expressly amended, the Amended FA Agreement shall remain in full force and effect; and the Amended FA Agreement, as amended hereby, is ratified and confirmed. Section 6. Interpretation. In the event of any conflict between the provisions of the Amended FA Agreement and the provisions of this Supplement No. 5, the provisions of this Supplement No. 5 shall control. Section 7. Effective Date. This Supplement No. 5 shall become effective upon the last to occur of (a) the execution and delivery of this Supplement No. 5 by the City, for and on behalf of the CFD, and the Fiscal Agent, and (b) a consent hereto by the sole owner of all of the outstanding Bonds is delivered to the City and the Fiscal Agent. The Fiscal Agent shall be entitled to rely on a certificate of an Authorized Officer to the effect that the preceding two conditions have been

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satisfied, and with respect to the date on which the final one was achieved (thereby being the effective date of this Supplement No. 5). Section 8. Replacement Bonds. From and after the effective date of this Supplement No. 5, upon any delivery of any of the Bonds to the Fiscal Agent for any reason, the Fiscal Agent shall provide replacement Bonds in the form of Exhibit A to the Amended FA Agreement, as amended by Section 1 hereof, in exchange for the Bonds so delivered, subject in any event to any applicable provisions of Sections 2.06 and 2.07 of the Amended FA Agreement. Section 9. Binding Effect. Upon the effectiveness of this Supplement No. 5, as provided in Section 7 above, this Supplement No. 5 shall inure to the benefit of and shall be binding upon the City, the CFD, the Fiscal Agent, the owner of the Bonds and their respective successors and assigns. IN WITNESS WHEREOF, the City has caused this Supplement No. 5 to be executed in its name, and the Fiscal Agent has caused this Supplement No. 5 to be executed in its name, all as of the date first set forth above. CITY OF PALMDALE, CALIFORNIA, for and on behalf of the CITY OF PALMDALE COMMUNITY FACILITIES DISTRICT NO. 93-1 (RITTER RANCH) By: Steven D. Hofbauer, Mayor Attest: By: Shanae S. Smith, City Clerk Approved as to form: By: Christopher Beck, City Attorney U.S. BANK NATIONAL ASSOCIATION, as Fiscal Agent By: Authorized Officer Quint & Thimmig LLP 1/10/22
16007.44:J18025
SUPPLEMENTAL AGREEMENT NO. 5 TO AMENDED AND RESTATED FISCAL AGENT AGREEMENT (A-4261) by and between the CITY OF PALMDALE, CALIFORNIA and U.S. BANK NATIONAL ASSOCIATION, as Fiscal Agent dated as of February 2, 2022 relating to: City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) Special Tax Bonds Series 1995-A Senior Bonds Supplemental Agreement No. 5 to A-4261 Amended and Restated Fiscal Agent Agreement U.S. Bank National Association February 2, 2022 -1-
SUPPLEMENTAL AGREEMENT NO. 5 TO AMENDED AND RESTATED FISCAL AGENT AGREEMENT THIS SUPPLEMENTAL AGREEMENT NO. 5 TO AMENDED AND RESTATED FISCAL AGENT AGREEMENT No. A-4261 (this “Supplement No. 5”), dated as of February 2, 2022, is by and between the City of Palmdale, California, a municipal corporation organized and existing under the laws of the State of California (the “City”), for and on behalf of the City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) (the “CFD”), and U.S. Bank National Association, a national banking association duly organized and existing under the laws of the United States of America, as fiscal agent (the “Fiscal Agent”), and amends and supplements that certain Amended and Restated Fiscal Agent Agreement (A-4261), dated as of March 1, 2014 (as amended and supplemented by Supplemental Agreement No. 1 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of November 1, 2016, Supplemental Agreement No. 2 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of August 7, 2018, Supplemental Agreement No. 3 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of November 13, 2018, and Supplemental Agreement No. 4 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of September 1, 2020, each between the City, for and on behalf of the CFD, and the Fiscal Agent, the “Amended FA Agreement”), by and between the City, for and on behalf of the CFD, and the Fiscal Agent. Capitalized terms used in this Supplement No. 5 and not otherwise defined herein have the meanings given to such terms in the Amended FA Agreement. RECITALS: A. The City has received a request by RdR Development Holdings, LLC, the current owner of all of the property located in the CFD, to amend the Amended FA Agreement in order to defer the principal and interest otherwise due on the Bonds during the period from March 1, 2022 to and including March 1, 2023, as reflected in this Supplement No. 5, and the sole owner of the Bonds is expected to consent to the provisions of Section 1 of this Supplement No. 5. B. Section 8.01 of the Amended FA Agreement provides that it may be amended with the consent of the Owners of at least sixty percent (60%) in aggregate principal amount of the Outstanding Bonds. C. This Supplement No. 5 is a “Supplemental Agreement,” as defined in the Amended FA Agreement. D. The City has requested that the Fiscal Agent enter into this Supplement No. 5. E. This Supplement No. 5 shall become effective as provided in Section 7 of this Supplement No. 5.

Supplemental Agreement No. 5 to A-4261 Amended and Restated Fiscal Agent Agreement U.S. Bank National Association February 2, 2022 -2-
AGREEMENT: NOW, THEREFORE, the City, for and on behalf of the CFD, and the Fiscal Agent, agree as follows: Section 1. Amendments. (a) The second paragraph of Section 2.02(E) of the Amended FA Agreement and the form of the Bonds in Exhibit A to the Amended FA Agreement are each hereby amended by deleting the second paragraph thereof and by inserting therein, in lieu thereof, the following: “Notwithstanding the foregoing or any other provision of this Agreement to the contrary, the interest otherwise due on the Bonds on the Interest Payment Dates occurring on March 1, 2020 to and including March 1, 2023, shall be due and payable on September 1, 2023.” (b) The second paragraph of Section 2.03(A)(ii) of the Amended FA Agreement and the eighth paragraph of the form of the Bonds in Exhibit A to the FA Agreement are each hereby amended and restated in whole to read as follows: “The Bonds maturing on September 1, 2024 are subject to mandatory sinking payment redemption in part on September 1, 2017, and on each September 1 thereafter to maturity by lot, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption without premium, from sinking payments as follows: Redemption Date Sinking Payments September 1, 2017 $ 835,000 September 1, 2018 0 September 1, 2019 0 September 1, 2020 0 September 1, 2021 0 September 1, 2022 0 September 1, 2023 3,770,000 September 1, 2024 (maturity) 18,895,000” Section 2. Execution in Several Counterparts. This Supplement No. 5 may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document. The delivery of an executed counterpart of this Supplement No. 5 by facsimile or PDF or similar attachment to an email shall constitute effective delivery of such counterpart for all purposes with the same force and effect as the delivery of an original, executed counterpart. Section 3. Governing Law. This Supplement No. 5 shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and performed in such State. Section 4. Incorporation By Reference. The City and the Fiscal Agent agree that the amendment contained in this Supplement No. 5 shall be incorporated by this reference thereto into the Amended FA Agreement, which Amended FA Agreement as so amended shall serve as the sole operative Agreement (as such term is defined in the Amended FA Agreement) in connection with the Bonds.

Supplemental Agreement No. 5 to A-4261 Amended and Restated Fiscal Agent Agreement U.S. Bank National Association February 2, 2022 -3-
Section 5. Ratification and Reaffirmation of Amended FA Agreement. Except as hereby expressly amended, the Amended FA Agreement shall remain in full force and effect; and the Amended FA Agreement, as amended hereby, is ratified and confirmed. Section 6. Interpretation. In the event of any conflict between the provisions of the Amended FA Agreement and the provisions of this Supplement No. 5, the provisions of this Supplement No. 5 shall control. Section 7. Effective Date. This Supplement No. 5 shall become effective upon the last to occur of (a) the execution and delivery of this Supplement No. 5 by the City, for and on behalf of the CFD, and the Fiscal Agent, and (b) a consent hereto by the sole owner of all of the outstanding Bonds is delivered to the City and the Fiscal Agent. The Fiscal Agent shall be entitled to rely on a certificate of an Authorized Officer to the effect that the preceding two conditions have been satisfied, and with respect to the date on which the final one was achieved (thereby being the effective date of this Supplement No. 5). Section 8. Replacement Bonds. From and after the effective date of this Supplement No. 5, upon any delivery of any of the Bonds to the Fiscal Agent for any reason, the Fiscal Agent shall provide replacement Bonds in the form of Exhibit A to the Amended FA Agreement, as amended by Section 1 hereof, in exchange for the Bonds so delivered, subject in any event to any applicable provisions of Sections 2.06 and 2.07 of the Amended FA Agreement. Section 9. Binding Effect. Upon the effectiveness of this Supplement No. 5, as provided in Section 7 above, this Supplement No. 5 shall inure to the benefit of and shall be binding upon the City, the CFD, the Fiscal Agent, the owner of the Bonds and their respective successors and assigns.

Supplemental Agreement No. 5 to A-4261 Amended and Restated Fiscal Agent Agreement U.S. Bank National Association February 2, 2022 -4-
IN WITNESS WHEREOF, the City has caused this Supplement No. 5 to be executed in its name, and the Fiscal Agent has caused this Supplement No. 5 to be executed in its name, all as of the date first set forth above. CITY OF PALMDALE, CALIFORNIA, for and on behalf of the CITY OF PALMDALE COMMUNITY FACILITIES DISTRICT NO. 93-1 (RITTER RANCH) By: Steven D. Hofbauer, Mayor Attest: By: Shanae S. Smith, City Clerk Approved as to form: By: Christopher Beck, City Attorney U.S. BANK NATIONAL ASSOCIATION, as Fiscal Agent By: Authorized Officer 16007.44:J18025
16007.44:J18057
Quint & Thimmig LLP Attorneys at Law 900 Larkspur Landing Circle, Suite 270 Larkspur, CA 94939-1726 Phone: 415/925-4200 Fax: 415/925-4201 January 10, 2022 VIA EMAIL TO THOSE ON THE ATTACHED INTERESTED PARTIES LIST Re: Fifth Amendment to Amended and Restated Fiscal Agent Agreement for Ritter Ranch Special Tax Bonds – Deferral of Bond Payments Accompanying this letter are revised drafts of the following documents relative to a deferral of payments otherwise due on the Ritter Ranch special tax bonds on September 1, 2022 and March 1, 2023: 1. Consent of Preston Hollow Capital, LLC, as Bondowner, to Modification of Fiscal Agent Agreement, 2. Supplemental Agreement No. 5 to Amended and Restated Fiscal Agent Agreement, 3. City Council Resolution approving Supplemental Agreement No. 5, and 4. Officer’s Certificate Regarding Effective Date of Supplemental Agreement No. 5. Also included with this letter are the Petition of RDR Development Holdings, LLC and the Staff Report for the Resolution as to which no changes have been made from the initial drafts previously circulated. The only changes to the documents listed as 1-4 above were: (a) a correction to the date of Supplemental Agreement No. 4 in the various documents (from September 1, 2022 to September 1, 2020), (b) a change to the date of Supplemental Agreement No. 5 attached to the Consent of Bondowner (from February 1, 2022 to February 2, 2022), (c) a change to the phrase “owner of all of the property located in the CFD (the “Ritter Ranch Property”) in the third recital to the Resolution to “owner of the Ritter Ranch Property, which includes all of the property located in the CFD,” and (d) changes to the Resolution and the Supplemental Agreement No. 5 to have Supplemental Agreement No. 5 executed by the Mayor instead of the City Manager. Please let me know if you have any questions with respect to any of the above-mentioned documents. Preston Hollow is hereby requested to print out two copies of the Petition and the Consent of Preston Hollow, have the copies executed and send one set of the executed Petition and Consent to Keith Kang at the City so he receives them by this Friday, January 14th or as soon thereafter as possible, and to send the other executed documents to me. Following the City Council meeting on February 2nd, and assuming that the City Council adopts the Resolution, I will circulate a revised Bond and related documents, and will follow-up with the City and the Fiscal Agent to obtain their signatures to the various documents. Very truly yours, Paul J. Thimmig PJT:cra Enclosures Quint & Thimmig LLP
16007.44
CITY OF PALMDALE COMMUNITY FACILITIES DISTRICT NO. 93-1 (RITTER RANCH) 2021 MATTERS INTERESTED PARTIES (January 10, 2022) CITY OF PALMDALE -JJ Murphy, City Manager -Chuck Heffernan, Director of Public Works -Bill Padilla, City Engineer CITY OF PALMDALE 38250 Sierra Highway Palmdale, CA 93550 (661) 267-5104 (Murphy) (661) 267-5303 (Heffernan) (661) 267-5363 (Padilla) (661) 267-5292 [FAX] Email: [email protected] [email protected] [email protected] -Keith Kang, Finance Manager/City Treasurer -Willy Galindo, Senior Financial Analyst CITY OF PALMDALE 38300 Sierra Highway, Suite D Palmdale, CA 93550 (661) 267-5429 (Kang) (661) 267-5422 (Galindo) (661) 267-5454 [FAX-Kang] (661) 267-5082 [FAX-Galindo] Email: [email protected] [email protected] CITY ATTORNEY -Christopher Beck, Esq., City Attorney CITY OF PALMDALE 38300 Sierra Highway, Suite A Palmdale, CA 93550 (661) 267-5108 (661) 267-5178 [FAX] Email: [email protected] CITY’S SPECIAL COUNSEL -Debra A. Riley, Esq. ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP 600 West Broadway, 27th Floor San Diego, CA 92101 (619) 235-1520 (619) 623-4510 (cell) (619) 233-1158 [FAX] Email: [email protected] CITY’S MUNICIPAL ADVISOR -Suzanne Q. Harrell HARRELL & COMPANY ADVISORS, LLC 333 City Boulevard West, Suite 1215 Orange, CA 92868 (714) 939-1464 Ext. 102 (714) 227-1790 (cell) (714) 939-1462 [FAX] Email: [email protected] SPECIAL TAX CONSULTANT/CFD ADMINISTRATOR -Kristin Harvey, Senior Consultant NBS GOVERNMENT FINANCE GROUP 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 (800) 676-7516 (951) 296-1998 [FAX] Email: [email protected] DISTRIBUTION LIST Page 2 of 2

BONDOWNER/PROPERTY OWNER -Ramiro Albarran, Managing Director, Co-Head of Originations -John Dinan, Esq., General Counsel -Joe James, Co-Head of Credit/Surveillance -Chad Ohlendorf, Associate Director -Michel Benitez, Esq., Assistant General Counsel PRESTON HOLLOW CAPITAL 1717 Main Street, Suite 3900 Dallas, TX 75201 (214) 389-0811 (Albarran) (203) 822-3311 (cell-Albarran) (214) 389-0809 (Weiner) (214) 389-0833 (Dinan) (972) 587-4334 (James) (214) 389-0816 (Ohlendorf) (214) 389-0803 (Benitez) Email: [email protected] [email protected] [email protected] [email protected] [email protected] BOND OWNER’S/PROPERTY OWNER’S COUNSEL -Greg Harrington, Esq. HERRINGTON & SUTCLIFFE LLP 777 South Figueroa Street, Suite 3200 Los Angeles, CA 90017-5855 (213) 612-2280 Email: [email protected] FISCAL AGENT -Keith R. Marshall, Vice President–Default Group U.S. BANK NATIONAL ASSOCIATION 633 West Fifth Street, 24th Floor LM-CA-T24T Los Angeles, CA 90071 (213) 615-6034 (213) 615-6196 [FAX] Email: [email protected] FISCAL AGENT’S COUNSEL -Dennis Wong, Esq. DORSEY & WHITNEY LLP 600 Anton Boulevard, Suite 2000 Costa Mesa, CA 92626-7655 (714) 800-1457 (Wong) (714) 800-1400 (main) (714) 800-1499 [FAX] Email: [email protected] CITY’S CFD and BOND COUNSEL -Paul Thimmig, Esq. QUINT & THIMMIG LLP 900 Larkspur Landing Circle, Suite 270 Larkspur, CA 94939-1726 (415) 925-4200 (415) 925-4201 [FAX] Email: [email protected] Quint & Thimmig LLP 1/10/22
16007.44:J18021

CITY OF PALMDALE
COMMUNITY FACILITIES DISTRICT NO. 93-1
(RITTER RANCH)

OFFICER'S CERTIFICATE REGARDING EFFECTIVE DATE OF SUPPLEMENTAL AGREEMENT NO. 5

The undersigned hereby states and certifies:

(i) that she is the duly appointed, qualified and Acting City Manager of the City of Palmdale, California, a chartered city and municipal corporation duly organized and existing under the laws of the State of California (the “City”), and as such, is familiar with the facts herein certified and is authorized to certify the same on behalf of the City; and

(ii) that he is an “Authorized Officer” of the City, as such term is defined in that certain Amended and Restated Fiscal Agent Agree ment (A-4261), dated as of March 1, 2014, by and between the City, for and on behalf of the City of Palmdale Community Facilities District No. 93 - 1 (Ritter Ranch) (the “District”), and U.S. Bank National Association, as fiscal agent (the “Fiscal Agent”) (as amended and supplemented by Sup plemental Agreement No. 1 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of November 1, 2016, by Supplemental Agreement No. 2 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of August 7, 2018, by Supplemental Agreement No. 3 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of November 13, 2018, and by Supplemental Agreement No. 4 to Amended and Restated Fiscal Agent Agreement (A-4261), dated as of September 1, 2020, each between the City, for and on behalf of the District, and the Fiscal Agent, the “Fiscal Agent Agreement”); and

(iii) pursuant to Resolution No. CC 2022-____ adopted by the City Council of the City on February 2, 2022 , the City Council authorized the execution and delivery of a Supplementa l Agreement No. 5 to Amended and Restated Fiscal Agent Agreement (A-4261) (the “ Fifth Supplement”), to be executed by the City, for and on behalf of the District, and the Fiscal Agent; and

(iv) this Officer’s Certificate is being delivered pursuant to Section 7 of the Fifth Supplement, in order to advise the Fiscal Agent of the effective date of the Fifth Supplement; and

(v) the City hereby acknowledges that it has received the consent to the Fifth Supplement of the owner of all of the outstanding Bonds, a copy of which is attached hereto as Exhibit A, as mentioned in Section 7 of the Fifth Supplement; and

(vi) under separate cover, the City has submitted to the Fiscal Agent the Fifth Supplement executed by the City for the District, an d the City hereby requests that the Fiscal Agent execute the Fifth Supplement; and
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(vii) upon execution of the Fifth Supplement by the Fiscal Agent, the conditions precedent to the effectiveness of the Fifth Supplement will have been achieved, and such date of execution by the Fiscal Agent will be the effective date of the Fifth Supplement; and

(viii) that capitalized terms used and not otherwise defined herein have the meanings given them in the Fiscal Agent Agreement.

Dated: February __, 2022
CITY OF PALMDALE, CALIFORNIA, for and
on behalf of the City of Palmdale
Community Facilities District No. 93 -1
(Ritter Ranch)

By:

Ronda Perez,
Acting City Manager

Acknowledged:

U.S. BANK NATIONAL ASSOCIATION

By:

Authorized Officer

A-1

EXHIBIT A

BONDOWNER CONSENT

[attach executed Bondowner Consent here]

Quint & Thimmig LLP 12/28/21
16007.44:J18027
PETITION regarding City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) To the City Council City of Palmdale 38300 Sierra Highway Palmdale, California 93550 Members of the City Council: 1. Landowner Submitting Waiver. This petition is submitted by the entity identified below as the current owner of fee title to the parcels of land identified in Exhibit A hereto (the “Landowner”). By submitting this petition, the undersigned warrants to the City that he or she is authorized by the Landowner to execute this petition. 2. Deferral of Mandatory Sinking Fund Payment. The Landowner acknowledges that the City of Palmdale (the “City”) has issued its Special Tax Bonds, Series 1995-A Senior Bonds (the “Bonds”), for and on behalf of the City of Palmdale Community Facilities District No. 93-1 (Ritter Ranch) (the “CFD”) to finance various public improvements. The Landowner hereby requests that the City Council of the City amend the Amended and Restated Fiscal Agent Agreement (the “FA Agreement”) pursuant to which the Bonds were issued (a) to defer the interest due on the Bonds on the interest payment dates occurring on September 1, 2022 and March 1, 2023, to September 1, 2023, and (b) to defer the principal due on the Bonds on September 1, 2022 to September 1, 2024. The Landowner understands that the requested modification of the FA Agreement is subject to (a) the approval of a Supplemental Agreement No. 5 to Amended and Restated Fiscal Agent Agreement (the “FA Amendment”), that provides for such amendment to the FA Agreement (a copy of which FA Amendment has been provided to the Landowner) by the City Council, and (b) the execution and delivery of the FA Amendment by the City, for and on behalf of the CFD, and the Fiscal Agent for the Bonds. This Petition is dated January __, 2022 RDR DEVELOPMENT HOLDINGS, LLC, a Delaware limited liability company By: Preston Hollow Capital, LLC, its sole member By: Name: Title:

Exhibit A
EXHIBIT A LOS ANGELES COUNTY ASSESSORS PARCEL NUMBERS OF LAND OWNED WITHIN THE CFD 3205002028 3206025001 3205002051 3206026003 3205002053 3206026004 3206005008 3206026005 3206006016 3206026006 3206006028 3206026007 3206007001 3206026008 3206008012 3206026009 3206009014 3206027002 3206010011 3206027004 3206016008 3206027005 3206017009 3206027006 3206018014 3206027007 3206020010 3206027008 3206020017 3206027009 3206021002 3206027010 3206021005 3206027012 3206022001 City Council Staff Report
DATE: FEBRUARY 2, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY ATTORNEY’S OFFICE
DISTRICT: ALL
SUBJECT: APPROVE LEGAL SERVIC ES AGREEMENT BETWEEN THE CITY OF PALMDALE AND SILV ER & WRIGHT, LLP (A -7783) IN THE
AMOUNT OF $500,000
ISSUE
Approve an Agreement for Legal Services Between the City of Palmdale and Silver & Right, LLP (A-7783) in the Amount of $500,000.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve an Agreement for Legal Services Between the City of Palmdale and Silver & Wright, LLP (A-7783) in the Amount of $500,000.

BACKGROUND
The law firm of Silver & Wright, LLP has represented the City since 2016, providing general advice regarding code enforcement and prosecuting nuisance abatement actions on behalf of the City. Silver & Wright, LLP has been successful abating nuisance properties within the City and routinely obtains full cost recovery for the City.

DISCUSSION
The most recent contract for legal services with Silver & Wright, LLP (A-6400) ended in September 2021. Because there were no extensions available to the previous contract (A-6400), a new contract is required between the City of Palmdale and Silver & Wright, LLP to cover the resolution of pending matters and allow the City to use the law firm on future matters.

Staff recommends that the City Council approve the Agreement for Legal Services between the City of Palmdale and Silver & Wright, LLP (A-7783) in the amount of $500,000.

Report to Mayor and City Council
Re: Agreement with Silver & Wright, LLP
February 2, 2022

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FISCAL IMPACT
The Legal Services Agreement has the not-to-exceed amount of $500,000, however this amount is not guaranteed. Fees will only be paid to the extent services are provided.

Funds for this agreement are currently budgeted in the City Attorney’s Office budget account, Prosecution Account (10114001-721121).

STRATEGIC PLAN
Goal I: Maintain effective public safety and protection for life, property and the environment.

A. Provide comprehensive and innovative safety services to prevent crime and promote a safe community.

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: Andrew S. Pletcher, Deputy City Attorney
Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: Ronda Perez, Acting City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS

1. [Draft] Agreement with Silver & Wright, LLP
Legal Services Agreement
Agreement No. A-7783

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A

GREEMENT FOR LEGAL SERVICES BETWEEN

THE CITY OF PALMDALE AND SILVER & WRIGHT LLP
AGREEMENT NO. A-7783
Th
is Legal Services Agreement ("Agreement") is made and entered into by and between the City of Palmdale ("City") and Silver & Wright, LLP ("Firm"), collectively identified as "the parties."
R
ECITALS:

A
. T
his Agreement is made pursuant to California Business and Professions Code Section 6148, and is intended to fulfill the requirements of that section.

B
. Th
e City desires to retain the Firm to provide specialized legal services related to the areas of code enforcement, nuisance abatement, as well as general advisory services related to municipal law.

C
. Th
e attorneys of the Firm are duly licensed under the laws of the State of California and are fully qualified to provide the services contemplated by this Agreement.

T
HE PARTIES AGREE AS FOLLOWS:

1. S cope of Services.
a. T
he Firm will provide those legal services as may be authorized and assigned by the Palmdale City Attorney, including, without limitation, legal services related to the areas of code enforcement, nuisance abatement, as well as general advisory services related to municipal law. The firm will provide those legal services reasonably required to accomplish City's stated goals.
b
. T
he legal services the Firm will provide to City will be billed at the rates set forth in Exhibit "A", attached.

2. D esi gnation of Responsible Attorneys.

M
atthew R. Silver, Esq. is designated as the attorney responsible for providing the legal services under this Agreement to City and for supervising any other attorneys within the Firm assisting him in the performance of those services. The Firm's offices are located at 3 Corporate Park, Suite 100, Irvine, California 92606.

3. Co nfidentiality.

A
ll reports, information, data or other documents prepared or assembled by the Firm under this agreement are confidential and the Firm shall not make the same DRAFT

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available to any individual or organization without the prior written approval of the Palmdale City Attorney.

4. Maximum Contract Amount. Billing Procedures. and Monthly Statements.

a. The Firm shall submit to the Palmdale City Attorney, within thirty (30) days after the end of each calendar month, an itemized statement of the professional services provided and the time expended providing those services. This statement will be in the form customarily submitted by the Firm to clients that are billed on an hourly basis. The parties acknowledge that payment of all monthly statements is expected to be made within thirty (30) days of the billing date.

b. The Firm will bill the City for items such as, but not limited to, long distance telephone calls, filing fees (if applicable), document duplication, computerized legal research, word-processing, and similar out-of-pocket expenditures. These items will be separately designated on the Firm's monthly statements as "disbursements," and will be billed in addition to the fees for professional services.

c. If the Firm's services are billed by the hour, time will be charged by the Firm in increments of 1/10 of an hour (i.e., six-minute units). Among the services which are routinely billed are telephone conversations and travel time. ln addition to the fees charged for services, the Firm also bills for costs incurred, which include, but are not limited to, filing fees (if applicable), messenger and air courier expensed, parking expenses, local and out-of-town travel expenses, facsimile and other communication expenses, postage, and printing costs. ln addition, the Firm charges for certain internal costs if incurred on City's behalf, such as photocopying, secretarial overtime, and word processing.

The rate structure in general, or the rates of particular attorneys, may be increased from time to time, after a minimum 30-day written notice to and written consent of the Palmdale City Attorney. To the extent feasible, these adjustments will be made so as to coincide with the beginning of City's fiscal year, which begins on July 1st.

If possible, requests to increase fees should be forwarded to the Palmdale City Attorney in February of any given year

d. The Firm's fees for legal services are based primarily on hourly rates; other factors considered by the Firm in determining a fair fee are set forth in Rule 1.5 of the Rules of Professional Conduct of the California State Bar Association. If persons who are "Of Counsel" to the Firm work on City matters, the Firm and its Of Counsel may from time to time share the fees paid by City; however, if such is the case, City's fees will not be increased in any way, and the fees which City is requested to pay will be the same as would have been payable had there been no such sharing of fees.

e. All fees, charges, costs and reimbursable items for the term of the Agreement shall not exceed a maximum of $500,000.

DRAFT

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Agreement No. A-7783

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5. Resolution of Fee Disputes.

City is entitled to require that any fee dispute be resolved by binding arbitration in Los Angeles in accordance with the arbitration rules of the Los Angeles County Bar Association for legal fee disputes. If City chooses not to use the Los Angeles County Bar Association's arbitration procedures, City agrees that any disputes regarding the professional services rendered or fees charged by the Firm will be submitted to binding arbitration in Los Angeles to be conducted by the American Arbitration Association in accordance with its commercial arbitration rules.

6. Term of the Agreement.

This Agreement will take effect on the date this Agreement is signed by the parties and will remain in full force and effect for a period of three (3) years, which may be extended for two additional one (1) year terms by the City Attorney or until terminated in accordance with the provisions of Section 7.

7. Termination of the Agreement.

City has the right to terminate the Firm's representation at any time, without cause, subject to an obligation to give notice in writing to the Firm at least thirty (30) days prior to termination. The Firm has the same right, subject to an obligation to give City written notice at least ninety (90) days prior to termination so that City will be able to arrange alternative representation. ln either circumstance, City agrees to secure new counsel as quickly as possible and to cooperate fully in the substitution of the new counsel as counsel of record in any pending litigation matters. The Firm agrees to cooperate fully in any such transition, including the transfer of files. Upon termination, all finished or unfinished materials shall become the property of City. Notwithstanding the termination of the Firm's representation, City will remain obligated to pay to the Firm all fees and costs incurred prior to such termination.

8. Modifications to the Agreement.

Unless otherwise provided for in this Agreement, modifications relating to the nature, extent, or duration of the Firm's professional services to be rendered will require the written approval of the Palmdale City Attorney. Any such written approval will be deemed to be a supplement to this Agreement and will specify any changes in the Scope of Services and the agreed-upon billing rate to be charged by the Firm and paid by the City.

9. Independent Contractor.

No employment relationship is created by this Agreement with the Firm or any employees of the Firm. For all purposes, the Firm and its employees are independent contractors to City and shall not incur, nor have the authority to incur any debt, obligation, or liability for or against City.

DRAFT

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10. Assignment and Delegation.

This Agreement contemplates the performance of professional services by the Firm. Neither this Agreement, nor any portion of it, may be assigned or delegated by the Firm without the prior written consent of the Palmdale City Attorney. Delegation to attorneys outside the Firm will be limited to those situations in which the Firm is disqualified by virtue of a conflict of interest, or where the Firm does not possess the expertise to perform services in a particular practice area. The Firm will supervise delegated work, except where precluded from doing so by virtue of a conflict of interest, and where otherwise agreed to by the parties.

11. Conflict of Interest.

The Firm affirms that it presently has no interest and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with the Firm.

12. Insurance.

a. The Firm shall obtain and maintain in full force and effect a professional liability insurance policy that provides coverage in an amount not less than $1,000,000 per occurrence. This insurance policy shall provide coverage to the City for any damages or losses suffered by City as a result of any error, omission, or neglect by the Firm that arises out of the professional services rendered under this Agreement. Such insurance may be subject to a self-insured retention or deductible to be borne entirely by the Firm.

b. The Firm will obtain and maintain workers' compensation insurance in accordance with Section 3700 of the California Labor Code.

c. The Firm will obtain and maintain in full force and effect comprehensive general liability insurance in an amount not less than $1,000,000 per occurrence with a $2,000,000 aggregate.

d. All insurance coverage specified above will provide for a minimum of thirty (30) days’ notice of cancellation by the insurance carrier, and will be maintained in full force and effect throughout the term of this Agreement.

13. Legal Files.

a. During the period that the Firm is actively working upon a matter, the files pertaining thereto will be maintained in its offices. After the Firm has concluded working upon a matter, the files may be transferred to an offsite storage facility, from which they can be retrieved upon reasonable notice. All original agreements, modification or DRAFT

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deeds, easements or similar original documents should be forwarded to the Palmdale City Clerk either as created or at the expiration of the fourth calendar year following the consummation or conclusion of each matter for which a file is opened. City may request copies of its client matter files at any time, including, without limitation, upon termination of the Firm's engagement. City agrees that upon delivery of any client matter files that it will pay the Firm for its costs incurred in photocopying such files.

b. If the firm is called upon to give testimony or produce documents in any legal or administrative proceeding which concerns City in any way, whether before or after the representation and rendition of legal services to City under this agreement terminates, City agrees to pay the Firm, at its then prevailing hourly rates, for its time in investigating, preparing for and in giving testimony and/or in producing documents and for all expense incurred in connection with doing so.

14. Entire Agreement

This Agreement will constitute the full and complete agreement and understanding of the parties and supersedes all prior agreements and all other written or oral statements of either party relating to its subject matter.

TO EFFECTUATE THIS AGREEMENT, the authorized representatives of the parties have caused this Agreement to be executed as of the dates indicated below.

CITY OF PALMDALE SILVER & WRIGHT, LLP

_______________________ _______________________
Steven D. Hofbauer Matthew R. Silver, Esq.

Mayor Partner

Date:__________________ Date:__________________

Attest:

______________________
Shanae Smith
City Clerk

Approved as to form:

_______________________
Christopher Beck, Esq.

City Attorney

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Agreement No. A-7783

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EXHIBIT "A''

RATE SCHEDULE

A. Identification.

Client: City of Palmdale
Matter: Any matters assigned by the Palmdale City Attorney

B. Attorney Fees

Hourly Rate: $235.00 – attorneys; $140 – paralegals/law clerks.

These rates shall automatically increase by three percent each new fiscal year in order to offset rising costs.

C. Standard Charges.

Hourly rate will be billed in minimum units of one-tenth hours.

D. Costs and Expenses.

In-office photocopying $0.25/page
Mileage IRS prevailing mileage rates
Computerized Legal Research At vendor cost
Word Processing Varies
Postage At vendor cost
Courier and Air Freight Charges At vendor cost
Messenger Services At vendor cost
Title Report and/or Litigation Guarantee At vendor cost Notary At vendor cost
Court Photocopying At cost
Incoming or out-going Fax Charges No charge
Conference Call Charges AT&T standard rates or equal Travel Expenses At cost
Other reasonable costs At cost

E. Subject to Change.

The rates on this schedule are subject to change on thirty (30) days written notice and approval by the Palmdale City Attorney. If City declines to pay any increased rates, Firm will have the right to withdraw as Palmdale's counsel.

DRAFT
City Council Staff Report
DATE: FEBRUARY 2, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY ATTORNEY’S OFFICE
DISTRICT: ALL
SUBJECT: APPROVE AGREEMENT WITH MANAGEMENT PARTNERS, INC.

TO PROVIDE CONSULTING SERVICES REGARDING

MISDEMEANOR PROSECUTIONS WITHIN THE CITY OF

PALDMALE
ISSUE
Approve Agreement with Management Partners, Inc. to Provide Consulting Services Regarding Misdemeanor Prosecutions within the City of Palmdale.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve Agreement with Management Partners, Inc. to Provide Consulting Services Regarding Misdemeanor Prosecutions within the City of Palmdale.

2. Authorize appropriation of funds from General Fund unappropriated fund balance.

BACKGROUND
At present, the City Attorney’s office has significant prosecutorial authority to prosecute violations of the Palmdale Municipal Code and Ordinances. Palmdale Municipal Code Section 2.06.060 provides that the City Attorney shall have the power to “initiate all proceedings in law or equity for the criminal or civil enforcement of all City ordinances and for the defense of the City in all legal actions.” PMC 2.06.060.B. In practice, these violations can be charged, or filed, as administrative actions, infractions or misdemeanors. The associated penalty for such is graduated accordingly. California Code of Civil Procedure §731 authorizes a municipalities City Attorney’s office to prosecute public nuisance actions in the name of the People of the State of California.

See, California Code of Civil Procedure §731.

At the City Council meeting on July 13, 2021, the City Attorney provided an informational item on City prosecutions, noting, in part, that there has been a significant increase in the number of cases that have been rejected for filing under Special Directive 20-07, which directed all Deputy District Attorneys to reject for filing, with a few exceptions, the case types below when submitted by law enforcement for filing:
a) Trespass – Penal Code §602 (a)-(y)*
Report to Mayor and City Council
Re: Agreement No. A-7784 between the City of Palmdale and Management Partners February 2, 2022

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b) Disturbing the Peace – Penal Code §415(1)-(3)*
c) Driving Without a Valid License – Vehicle Code §12500(a)-(e)* d) Driving with a Suspended License – Vehicle Code §14601.1(a)* e) Criminal Threats – Penal Code §422*
f) Drug and Paraphernalia Possession – Health and Safety Code §§11350, 11357, 11364 & 11377
g) Under the Influence of a Controlled Substance – Health and Safety Code §11550
h) Minor in Possession of Alcohol – Business and Professions Code §25662(a) i) Drinking in Public – Los Angeles County Municipal Code §13.18.010 j) Public Intoxication – Penal Code 647(f)
k) Loitering – Penal Code §647(b),(c), (d), (e)*
l) Loitering to Commit Prostitution – Penal Code § 653.22(a)(1) m) Resisting Arrest – Penal Code §148(a)*
This report was subsequently received and filed by the City Council.

At the City Council meeting on August 17, 2021, the City Council voted 5-0 and directed the City Attorney’s Office to hire a consultant to conduct a feasibility study expanding the capacity of the City Attorney regarding Municipal and Misdemeanor Prosecutions.

DISCUSSION
In response to the City Council’s vote on August 17, 2021, the City Attorney’s Office is recommending the approval of Management Partners, Inc. to provide consulting services regarding in-house misdemeanor prosecutions within the City of Palmdale.

Management Partners, Inc. was founded in 1994 with a specific mission to help local government leaders improve their service to the public. They have previously performed several City Attorney organizational assessments for cities throughout California including the City of San Bernardino, City of Fremont, and the City of Berkeley.

As discussed in their proposed scope of work, Management Partners, Inc. has developed a six-month plan to compare the staffing costs and feasibility of three options for expanding misdemeanor prosecutions in the City of Palmdale:
(1) Expanding in-house prosecutions gradually. Create a plan to allow the City Attorney’s Office to gradually expand the number and types of prosecutions handled under the current organizational structure;
(2) Establishing an in-house prosecution division. Create a plan that creates a new prosecution division in the City Attorney’s Office which will have grater capacity than a graduated prosecution option; and
(3) Contract with another city or private law firm to expand misdemeanor prosecution. Create a plan that would analyze the feasibility of contracting with another city or a private law firm to handle misdemeanor prosecutions that have been declined by the Los Angeles District Attorney.

Report to Mayor and City Council
Re: Agreement No. A-7784 between the City of Palmdale and Management Partners February 2, 2022

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FISCAL IMPACT
$89,500; The Consulting Services Agreement has the not-to-exceed amount of $89,500, however this amount is not guaranteed. Fees will only be paid to the extent services are provided. Funds for this agreement will be paid out of the City Attorney’s Account (10114001-721121). Funds must be authorized from General Fund unappropriated fund balance.

STRATEGIC PLAN
Goal I: Maintain effective public safety and protection for life, property and the environment.

A. Provide comprehensive and innovative safety services to prevent crime and promote public safety
Prepared by: Andrew S. Pletcher, Deputy City Attorney
Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: Ronda Perez, Acting City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS

1. [Draft] Agreement No. A-7784 Between the City of Palmdale and Management Partners, Inc.

AGREEMENT NO. A-7784

CONTRACT FOR CONSULTANT SERVICES
BETWEEN THE CITY OF PALMDALE AND MANAGEMENT PARTNERS, INC.

THIS CONTRACT FOR CONSULTANT SERVICES (“Contract” herein) is made and entered into this 2nd day of February, 2022 by and between the City of Palmdale a public body corporate and politic, (hereinafter called “CITY”) and MANAGEMENT PARTNERS, INC. (hereinafter called “CONSULTANT”).

RECITALS
WHEREAS, City desires to engage CONSULTANT to provide certain consultant services; and
WHEREAS, CONSULTANT represents that CONSULTANT has the expertise and is qualified to perform the services described in this Contract. And, if required, is duly registered under the laws of the State of California; and WHEREAS, CONSULTANT desires to accept such engagement.

NOW, THEREFORE, the parties agree as follows:
1 DESCRIPTION OF WORK

1.1 The City hereby engages CONSULTANT, and CONSULTANT accepts such engagement, to provide the following services:

Task 1 - Start of Project
CONSULTANT will begin by conducting a kickoff meeting with CITY. The purpose of the meeting will be to confirm details, discuss project objectives, and review the project timeline. CONSULTANT also wants to be clear about CITY's intent in pursuing this avenue of analysis to ensure the work performed will address the CITY's objectives. This activity will form the basis of the partnership between CONSULTANT and CITY.

Task 2 - Gather and Analyze Information
During this tasks, CONSULTANT shall complete the following tasks:

1. Conduct Background Interviews: Shortly after the kickoff meeting is held, CONSULTANT will conduct up to 20 interviews with a variety of individuals. A partial list includes the following:
• City Attorney
• CAO staff
• City Manager
• Court Administrator
• Captain from Palmdale Station of the Los Angeles County Sheriff's Department (LASD), and
• Key staff from the LASD Detective Bureau
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CONSULTANT will follow up with these individuals to confirm data points and background information as necessary during the engagement.

2. Gather and Review Information: CONSULTANT will gather and review a variety of materials including:
• Budget documents;
• Organization charts;
• Staffing in the CAO (including professional and support positions; • Job description of positions that would be required to expand the CAO's prosecutorial role;
• Compensation and benefit costs for relevant positions; • Applicable laws;
• California Attorney General prosecution data;
• The LADA's prosecution data and declination rate;
• Data regarding misdemeanor caseload and type in Palmdale; • Performance data and metrics; and
• Other relevant information

3. Develop a methodology for estimating prosecutions workload and conducting the options analysis. Identifying the prosecutions workload will have four components as outlined below:
• Survey cities with prosecution divisions - CONSULTANT will prepare and administer a survey to collect data from up to five cities that presently have prosecution divisions. The survey will ask about the organizations' information technology, office space needs, staffing and case information. CONSULTANT envisions the five cities to include Alameda, Burbank, Pasadena, Redondo Beach, and Santa Monica
• Determine misdemeanor trends in Palmdale - CONSULTANT will work with the Court administrator and LASD's Palmdale Station to compile the misdemeanor caseload and case types for the last five years. CONSULTANT will analyze this data to understand trends in misdemeanor crimes and to develop an estimated baseline of future prosecutions for three calendar years (2023 - 2025). This analysis will assume the CAO could begin the expended prosecutions in early 2023.
• Estimate workload - Based on the data compiled in as described above, CONSULTANT will work with the CAO to determine the types and volume of misdemeanor cases that are likely to be prosecuted under each option • Survey cities that contract the prosecution function - CONSULTANT will identify three to five cities that contract with other cities or private law firms to conduct prosecutions. The survey will be designed to obtain costs, workload, and staffing metrics, which will be useful in estimating the required resources and staffing for Palmdale. CONSULTANT will also examine the public information available from the annual reports compiled by the State Attorney General that have information on misdemeanor complaint filing data by county going back over time.

Task 3 - Analyze Options for Prosecution Function
There are several options to explore regarding developing a plan for prosecuting 2-14Concord - Document ID: generated after first signature Draft
violations the LADA has declined to prosecute. The most straightforward is to obtain permission from the District Attorney for the City to prosecute said violations.

Authority for a City to prosecute state law misdemeanors can be requested from a county district attorney under California Government Code §41803.5. Within Los Angeles County the cities of Burbank, Hawthorne, Inglewood, Long Beach, Los Angeles, Pasadena, Redondo Beach, Santa Monica, and Torrance currently prosecute state misdemeanors occurring within their cities’ boundaries. In addition, the City of Hermosa Beach contracts with the City of Redondo Beach for this service.

The City of Manhattan Beach is currently considering contracting with Redondo Beach for misdemeanor prosecution services as well. After reaching an agreement with Redondo Beach on contracting, Manhattan Beach has concluded it also needs to obtain an agreement with the District Attorney pursuant to §41803.5. Presumably CITY could follow a similar path. Another option as mentioned above would be to gradually expand the types of violations covered under the Palmdale Municipal Code to cover the types of violations the LADA is declining to prosecute. CONSULTANT will compare the staffing costs and feasibility of three options for expanding misdemeanor prosecutions as listed below:
• Expand in-house prosecutions gradually. The first option is for the CAO to gradually expand the number and types of prosecutions handled under the current organization structure. CONSULTANT will identify the impacts of taking on this additional workload with and without adding new staff and resources. • Establish an in-house prosecution division. This second option would create a new prosecution division in the CAO, which we assume would have a greater capacity than the graduated prosecution option. CONSULTANT will work with the CAO to identify the scope of this potential new division. • Contract with another city or private law firm to expand misdemeanor prosecutions. This third option would analyze the feasibility of contracting with another city or a private law firm to handle misdemeanor prosecutions that have been declined by the LADA.

CONSULTANT's analysis will be based on the anticipated prosecutions and other data identified above. CONSULTANT will develop a three-year cost forecast for 2023 through 2025 for each option. The cost forecast will consider professional and support positions required to conduct the estimated number of prosecutions each year.

Task 4 - Report Results
Using the data compiled and analysis completed in the previous activities, CONSULTANT will meet with CITY to review a PowerPoint presentation that summarizes the data and cost information and outlines our key observations for the three service delivery options.

After this meeting, CONSULTANT will prepare a project report that details the three service delivery options. The report will include a summary of interview themes, a compilation of survey results, and a three-year forecast of the staffing or estimated contract costs. CONSULTANT will present the draft report for review and comment.

We will then make revisions, as necessary, to address comments and questions prior to producing a final report.

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CONSULTANT shall perform and complete all such work and services in a manner satisfactory to CITY.

1.2 Project deliverables shall be reviewed and approved by CITY to determine acceptable completion. CITY shall have the right to review and inspect the work during the course of its performance at such times as may be specified by CITY.

1.3 CONSULTANT shall not accept any change of scope, or change in contract provisions, unless issued in writing, as a contract change order or amendment and signed by CITY. Any extensions of time must be mutually agreed upon in writing and executed by both parties.

1.4 CITY shall provide to CONSULTANT, without charge, all data, program information, including reports, records, maps, and other information, now in CITY’s possession, which may facilitate the timely performance of the work. 2 CITY PROJECT MANAGER
To provide the services required by this Contract, CONSULTANT shall act under the authority and approval of a Project Manager appointed by CITY. The City Project Manager will oversee the work under this Contract, assist CONSULTANT with any necessary information, audit billings, and approve payments. CONSULTANT shall channel reports, deliverables and special requests through the City Project Manager. 3 CONSULTANT’S KEY PERSONNEL
CONSULTANT’s Team and Key Personnel are as follows:

Jay Trevino, Partner
Andrea Miller, Special Advisor
Jarrod Burguan, Special Advisor
Leonard Hyman, Senior Management Analyst
This Consultant Services Contract has been awarded to CONSULTANT based on its representation that those personnel and subcontractors listed above will perform the portions of the work listed herein. CONSULTANT shall not deviate nor substitute any of these team members without prior written approval by CITY. 4 COMMENCEMENT AND COMPLETION OF WORK
The execution of this Contract by the parties does not constitute an authorization to proceed. The services of CONSULTANT shall commence when CITY, acting by and through its Project Manager, has issued an Authorization to Proceed. CONSULTANT shall complete all the work described in Section 1 and submit final deliverables within One-Hundred Twenty (120) Calendar days following CONSULTANT’s receipt of Authorization to Proceed. CONSULTANT shall have no claim for compensation for any services or work, which has not been authorized by CITY’s Authorization to Proceed.
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5 TAXES

5.1 CONSULTANT shall pay all sales, consumer, use, and other similar taxes required to be paid by CONSULTANT in accordance with state and local laws.

5.2 CONSULTANT is an independent contractor and shall have no power or authority to incur any debt, obligation or liability on behalf of CITY. No person employed by CONSULTANT or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.

5.3 CONSULTANT shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.
6 PATENT FEES AND ROYALTIES
CONSULTANT shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, product or device is specified by CITY for use in the performance of the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents. CONSULTANT shall indemnify and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, product or device not specified by CITY, and shall defend all such claims in connection with any alleged infringement of such rights. 7 STANDARDS OF PERFORMANCE
CONSULTANT shall be responsible for the completeness and accuracy of its services and work and documents resulting there from, and CITY shall not be responsible for discovering deficiencies therein. CONSULTANT shall correct any such deficiencies or errors without additional compensation and without cost to CITY, except to the extent any such deficiency is directly attributable to deficiencies in CITY-furnished information.
8 CONSULTANT’S PERSONNEL

8.1 All services required under this Contract shall be performed by CONSULTANT, or under CONSULTANT’S direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services.
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8.2 CONSULTANT shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Contract, and compliance with all reasonable performance standards established by CITY.

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

8.4 CONSULTANT shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all claims, demands, damages or costs arising from CONSULTANT’s acts or omissions with respect to any liability, damages, claims, costs and expenses of any nature arising from alleged violations of personnel practices.
9 COMPENSATION

9.1 For all of work and services including the various phases of tasks as described in Section 1, CITY shall pay to CONSULTANT an amount not to exceed the sum of Eighty-Nine Thousand Five-Hundred dollars ($89500), payable as follows:

CONSULTANT shall invoice CITY monthly as the Tasks are completed. Invoices shall be presented to City as Net 30.

CONSULTANT's invoices shall include the following: A clear, detailed invoice reflecting work being billed for, a summary sheet showing the percentage of work completed to date, amount/percent billed to date, and current status of all tasks within a project, and and any all documentation necessary to support the above items.

The Contract Price is CONSULTANT’S estimate of its charges for all the services, including all labor, equipment, material, subcontractor, and reimbursable costs, to be provided under this Agreement. Progress payments shall be made on a time and material basis. Final payment shall be made upon completion of all services and City acceptance of all deliverables, not-to-exceed the Contract Price.

9.2 CONSULTANT shall perform no work in excess of the total contract price without prior written approval of CITY. Total contract price includes expenses related to travel to and from CITY to meet with City and to appear, if so required, before City Council or any other board or commission of CITY.

9.3 CONSULTANT shall maintain adequate records and shall permit inspection and audit by CITY of CONSULTANT’s charges under this Contract. CONSULTANT shall make such records available to CITY during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records, and 6-14Concord - Document ID: generated after first signature Draft
they will be available only to CITY and any specified public agencies. Such records shall be maintained by CONSULTANT for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONSULTANT shall retain its records for the time required by such laws.

9.4 No payment made hereunder by CITY to CONSULTANT, shall be construed as an acceptance by CITY of any work or materials, nor as evidence of satisfactory performance by CONSULTANT of its obligations under this Contract. 10 INDEMNIFICATION
To the fullest extent permitted by law, CONSULTANT and any contractors or subcontractors working on its behalf agree to indemnify CITY, its officers, employees, agents and elected and appointed boards (hereinafter “Indemnified Parties”) for any loss, claim, demand, cause of action, cost, expense, damage, obligation or liability which arises out of or is in any way connected with the performance of any work under this agreement, including any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONSULTANT, its contractors or subcontractors, and regardless of any acts, omissions or negligence (whether active or passive) of any person or entity indemnified hereunder. At their own expense, CONSULTANT and, as applicable, any contractors or subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONSULTANT shall ensure that the contract of any contractor or subcontractor working under this agreement contain an indemnity agreement, requiring the contractor or subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONSULTANT shall indemnify the Indemnified Parties, and save it harmless from any and all loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
11 INSURANCE

11.1 CONSULTANT, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California.

Proof of Insurance, as identified in Section 11.8, must be reviewed and accepted by the City Attorney.

11.1.1 Workers’ Compensation and Employer’s Liability
 Workers’ Compensation—coverage as required by the State of California  Employer’s Liability:
$1,000,000.00 each accident
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$1,000,000.00 policy limit bodily injury
$1,000,000.00 each employee bodily injury by disease

11.1.2 Professional Liability Insurance*
 $1,000,000.00 with no deductible, or;
 Comparable alternative as determined by the City Attorney; and  Policy form on a claims-made basis

11.1.3 Commercial General Liability
 $1,000,000.00 limit on a per occurrence basis
 $2,000,000.00 general aggregate limit

11.1.4 Commercial Automobile Liability
 $1,000,000.00 combined single limit including owned, non-owned and hired automobile coverage

11.2 All of CONSULTANT’s policies shall contain an endorsement providing that written notice shall be given to CITY at least thirty- (30) calendar days prior to termination, cancellation or reduction of coverage in the policy.

11.3 Policies providing for bodily injury and property damage coverage shall contain the following:

A. An endorsement extending coverage to the CITY as an additional insured, in the same manner as the named insured, as respects liability arising out of the performance of any work under the Contract. Such insurance shall be primary insurance, as respects the interest of the CITY, and any other insurance maintained by the CITY shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The certificate and endorsements shall state: “The City of Palmdale, the Successor Agency of the Community Redevelopment Agency of the City of Palmdale, Palmdale Civic Authority, Industrial Development Authority of the City of Palmdale, Palmdale Airport Authority, their officers, agents, employees and volunteers are named as additional insureds.”
B. “Severability of Interest” clause.

11.4 Promptly on execution of this Contract, and prior to commencement of any work, CONSULTANT shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONSULTANT has the required coverage and showing the required named insureds. Within five (5) days of written request from CITY, CONSULTANT shall deliver to CITY full and complete copies of all insurance policies required by this Contract.

11.5 The requirements as to the types and limits of insurance to be maintained by CONSULTANT are not intended to and shall not in any manner limit or qualify CONSULTANT’s liabilities and obligations under this Contract. 8-14Concord - Document ID: generated after first signature Draft

11.6 Any policy or policies of insurance that CONSULTANT elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.

11.7 All insurance coverage must be maintained throughout the duration of this Contract.

11.8 Acceptable Proof of Insurance:

11.8.1 ACORD Certificate of Insurance listing all coverages, limits, deductibles and insureds; and endorsements for all applicable coverages if agent has authority to issue it. Additional insured Form CG20101185 or CG20100707 and CG20370704 or equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage.

11.8.2 Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements listing all insurers must be submitted to the City Attorney.

11.8.3 *When coverage is provided on a “claims made basis”, CONSULTANT will continue to renew the insurance for a period of five (5) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any acts or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect.

11.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time CONSULTANT fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.
12 TERMINATION WITHOUT CAUSE
CITY reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, CONSULTANT shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and sub-consultants to cease such work. CONSULTANT shall also surrender to CITY all finished or unfinished documents or programs and other materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the CONSULTANT shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
9-14Concord - Document ID: generated after first signature Draft
13 TERMINATION FOR CAUSE

13.1 If the CITY determines that the CONSULTANT has failed to supply an adequate working force, or to provide services of proper quality, or has failed in any other respect to satisfactorily perform the services specified in this Contract, the CITY shall give written notice to the CONSULTANT specifying all defaults to be remedied within thirty (30) days. Such notice shall set forth the basis for the CITY’s dissatisfaction and suggest corrective measures. If, after thirty (30) days, the CONSULTANT has failed to implement the corrective measures, the CITY may elect to terminate this Contract, in whole or in part.

13.2 In the event the CITY terminates this Contract in whole or in part as provided herein above, the CITY may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.

13.3 If this Contract is terminated as provided above, the City may require the CONSULTANT to provide all finished or unfinished documents, data, studies, software, drawings, maps, photographs, reports, etc., prepared by the CONSULTANT. Upon such termination, the CONSULTANT shall be paid an amount equal to the value of the services provided and work performed as of the date of termination. Such payment by the City may take into consideration the costs associated with hiring another CONSULTANT to complete the services. In the event no new CONSULTANT is employed, the CONSULTANT shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete documents when such are delivered to CITY, and to authorized reimbursement expenses.

The above is in addition to any other remedies available by law or equity to the CITY.

13.1 If, after notice of termination of the Contract under the provisions of this Section 13, it is determined, for any reason, that CONSULTANT was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 12. 14 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and CONSULTANT arising out of, or relating to this Contract, or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 15 OWNERSHIP OF DOCUMENTS
All documents, including, but not limited to, research, field notes, investigations, analysis, and studies which are prepared in the performance of this Contract are to be, and remain the property of CITY. CONSULTANT shall furnish CITY, upon its 10-14Concord - Document ID: generated after first signature Draft
request, originals or reproducible or electronic copies of reports, studies and of all other documents listed above.
16 SUBCONTRACTING, DELEGATION AND ASSIGNMENT

16.1 CONSULTANT shall not delegate, subcontract or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY; provided, however, that claims for money due or to become due to CONSULTANT from CITY under this Contract may be assigned to a bank, trust company or other financial institution without such approval. Any proposed delegation, assignment or subcontract shall provide a description of the services covered, identification of the proposed assignee, delegates or subcontractor, and an explanation of why and how the same was selected, including the degree of competition involved. Any proposed agreement with an assignee, delegates or subcontractor shall include the following:

A. The amount involved, together with CONSULTANT’s analysis of such cost or price; and
B. A provision requiring that any subsequent modification or amendment shall be subject to the prior written consent of CITY; and
C. The requirement to hire only those persons authorized by federal law to work in the United States.

16.2 Any assignment, delegation or subcontract shall be made in the name of CONSULTANT and shall not bind or purport to bind CITY and shall not release CONSULTANT from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONSULTANT under this Contract.
17 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY

17.1 In performance of this Contract, CONSULTANT shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, or age. CONSULTANT will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

17.2 The provisions of subsection 17.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONSULTANT for personnel to perform any 11-14Concord - Document ID: generated after first signature Draft
services under this Contract. CITY shall have access to all documents, data and records of CONSULTANT and its subcontractors for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order No. 11246 is available for inspection at, and on file with, the Palmdale City Clerk’s Office. 18 FINANCIAL INTEREST CERTIFICATION

18.1 CONSULTANT warrants that no person has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee; and that no officer or employee of the CITY has any interest, financially or otherwise, in CONSULTANT’s firm.

18.2 For breach or violation of this warranty, CITY shall have the right to annul this Contract without liability, or at its discretion to deduct from the Contract Price or consideration, the full amount of such commission, percentage, brokerage or contingent fee.
19 CONFLICT OF INTEREST

19.1 CONSULTANT stipulates that its officers and employees do not now have a conflict of interest and it further agrees for itself, its officers and its employees that it will not contract for or accept employment for the performance of any work or services with any individual business, corporation or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Contract or which would cause CONSULTANT to be “financial interested” (as provided in California Government Code Section 1090 et seq. or 87100 et seq.) in any contract or decision made by CITY on any matter.

19.2 CONSULTANT shall not employ any Housing Authority/City official or employee to perform any work required pursuant to this Contract.

19.3 If CONSULTANT is a registered professional engineer or licensed land surveyor and the scope of work requires CONSULTANT’S recommendation of the actual formula to spread the costs of an assessment district’s improvements, then CONSULTANT shall not participate in making that recommendation if the additional elements set forth in Government Code section 87100.1(c) apply. Those additional elements are: (1) CONSULTANT has received income of $250 or more for professional services in connection with any parcel included in the benefit assessment district within twelve (12) months prior to the creation of the district; and (2) the district includes other parcels in addition to those parcels for which CONSULTANT received the income. In the event a conflict of interest does arise in that context, CITY shall select a different CONSULTANT to recommend the actual formula to spread the costs of the assessment district’s improvements and the costs 12-14Concord - Document ID: generated after first signature Draft
of such services shall be deducted from the compensation to be paid to CONSULTANT.

19.4 To the extent required by the City Manager/designee, CONSULTANT shall complete and file with the City Clerk a Form 700 Statement of Economic Interests disclosing any reportable property interests, income, gifts, investments, or business positions.
20 COMPLIANCE WITH LAW

20.1 CONSULTANT shall comply with all state and federal laws, including but not limited to, the requirement to hire only those persons authorized by federal law to work in the United States. If CONSULTANT uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by CONSULTANT.

20.2 The law of the state of California shall govern this Contract. The venue of any legal action, either formal or informal, shall be the County of Los Angeles. 21 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
22 ENTIRE CONTRACT AND AMENDMENTS

22.1 This Contract is the complete agreement between the parties and supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally.

22.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by CONSULTANT hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.

22.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract. 13-14Concord - Document ID: generated after first signature Draft

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

In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.

CITY OF PALMDALE: MANAGEMENT PARTNERS, INC.:

J.J Murphy, ICMA-CM Date
City Manager

Jerry Newfarmer Date
President and CEO

ADDRESS FOR NOTICE:

CITY OF PALMDALE
38300 Sierra Highway, Suite A
Palmdale, CA 93550

ADDRESS FOR NOTICE:

MANAGEMENT PARTNERS, INC.
1730 Madison Road
Cincinnati, OH 45206
APPROVE AS TO FORM:

Christopher L. Beck
City Attorney

ATTEST:

Shanae S. Smith
City Clerk
ATTEST: If Corporation

Secretary

14-14Concord - Document ID: generated after first signature Draft
City Council Staff Report
DATE: FEBRUARY 2, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

ENGINEERING DIVISION
DISTRICT: 2
SUBJECT: APPROVE FINAL TRACT MAP NO. 74927, (LOCATED AT THE

NORTHWEST CORNER OF PEVERO COURT & RANGE DRIVE)
ISSUE
Approve Final Tract Map No. 74927, (located at the northwest corner of Pevero Court and Range Drive).

RECOMMENDATION
Staff recommends that the City Council approve Final Tract Map No. 74927 and authorize the City Clerk to execute City Clerk’s Statement and Special Assessments Statement and authorize the Acting City Surveyor to execute the City Surveyor’s Statement and file the map with the County Recorder.

BACKGROUND
Final Tract Map No. 74927 is a 6.98-acre subdivision, legally creating 20 single family residential lots. All proposed lot sizes and dimensions comply with the City’s Zoning Ordinance. The subject property is located at the north west corner of Pevero Court and Range Drive. The applicant for this Final Tract Map is Antelope Valley Fairway Estates, LLC, a California Limited Liability Company . The Tentative Tract Map was approved by the Planning Commission on March 8, 2018, by Resolution No. PC 2018-008.

This Final Tract Map is consistent with the Tentative Tract Map and all Final Map conditions of approval have been met. The Acting City Land Surveyor has reviewed the Final Map for technical accuracy and verifies it is in compliant with the Subdivision Map Act.

FISCAL IMPACT
There is no fiscal impact associated with this action.

Report to Mayor and City Council
Re: Approval of Final Tract Map No. 74927
February 2, 2022

Page 2 ends

STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.

A. 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: Ronda Perez, Acting City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS

1. Final Tract Map No. 74927

SEE SHEET '3'
SCALE 1"=100'W.R. GORMAN L.S. 8767IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIATRACT NO. 74927SHEET 2 OF 3 SHEETS SURVEY DETAIL20 LOTS6.98 ACRES

MONUMENT LEGENDLEGEND

DETAIL 'A'
DETAIL 'B'LOS ANGELES COUNTY CERTIFICATIONS AND SEALS:

SCALE 1"=40'W.R. GORMAN L.S. 8767IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIATRACT NO. 74927

MONUMENT LEGEND
SHEET 3 OF 3 SHEETS20 LOTS6.98 ACRES

LEGENDEXISTING EASEMENTSRESERVED EASEMENTS

NET AREA NOTE
City Council Staff Report
DATE: FEBRUARY 02, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

ENGINEERING DIVISION
DISTRICT: 4
SUBJECT: NOTICE OF COMPLETION – ACCEPT PUBLIC IMPROVEMENTS

FOR PALMDALE AEROSPACE ACADEMY STREET WIDENING
LOCATED AT 35 TH STREET EAST SOUTH OF PALMDALE

BOULEVARD
ISSUE
Notice of Completion – Accept Public Improvements for Palmdale Aerospace Academy Street Widening located at 35th Street East south of Palmdale Boulevard.

RECOMMENDATION
Staff recommends that the City Council:

1. Accept the completed public improvements for Palmdale Aerospace Academy Street Widening located at 35th Street East south of Palmdale 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 street improvements on 35th Street East . The public improvements have been installed per the approved construction plan, inspected, and approved by City Public Works inspection 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
February 02, 2022

Page 2 ends

with the City’s subdivision regulations. This action is being taken pursuant to Section

16.110.060 of the City’s Municipal Code.

FISCAL IMPACT
The City’s maintenance costs will incrementally increase as a result of acceptance of these improvements.

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, P.E., Director of Public Works Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: Ronda Perez, Acting City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS

1. Exhibit A – List of Completed Public Improvements

2. Exhibit B – Site Map Location

3. Notice of Completion – Palmdale Aerospace Academy Street Improvements

EXHIBIT A

LIST OF COMPLETED PUBLIC IMPROVEMENTS
Tract/Project Plan # Quantity Security
Palmdale Aerospace ST 18-23A 629 LF $253,100
Academy Street Widening

EXHIBIT B

SITE MAP

City Council Staff Report
DATE: FEBRUARY 2, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 2
SUBJECT: APPROVE SUPPLEMENTAL AGREEMENT NO. 3 WITH RSB
GROUP, INC. FOR PN 784, RANCHO VISTA PARK, IN THE AMOUNT OF $218,855.81.

ISSUE
Approve Supplemental Agreement No. 3 with RSB Group, Inc. for PN 784, Rancho Vista Park, in the amount of $218,855.81.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve Supplemental No. 3 with RSB Group, Inc. for PN 784 Rancho Vista Park, in the amount of $218,855.81, Agreement No. A-7149; and

2. Authorize the transfer of $ 112,600 of unappropriated park funds into Account P0054220; and

3. Authorize the City Manager or his designee to execute Supplemental Agreement No. 3 to Agreement No. A-7149 with RSB Group, Inc., including making minimal and/or non-substantive changes.

BACKGROUND
Project No. 784, Rancho Vista Park, was awarded to RSB Group, Inc. in November 2020.

This project is creating a neighborhood park on Town Center Drive, between 35th Street West and Bolz Ranch Road, adjacent to Los Angeles County Fire Station #136 and Esperanza Elementary School. The park will include but not belimited to a prefabricated restroom facility, inclusive playground, small parking lot, an ADA accessible walking path with lighting, monument sign, picnic areas and shade trees, story time area, drinking fountain, pet waste station, and therapeutic wellness garden/meditation space.

Report to Mayor and City Council
Amendment No. 3 to PN 784, Rancho Vista Park
February 2, 2022

Page 2 ends

DISCUSSION
This project has two previous Supplemental Agreements that were approved administratively under authority of City Manager. Supplemental Agreement No. 1 included a variety of changes in scope including, but not limited to materials upgrade, regrading, additional wiring, and discrepancies resulting from bidding the project prior to having a fully approved plan set. Supplemental Agreement No. 2 was largely due to the change in electrical scope after Southern California Edison determined they could not achieve the specified and approved electrical run, but also included miscellaneous material/design revisions as recommended by City Maintenance for long-term durability.

This Supplemental Agreement No. 3 includes four (4) changes to the project scope as outlined below. The 1 st change relates to the waterline service connection for the park.

The waterline service connection was not included on the bid set of plans and was therefore not included in the original bid and contract. The cost for this change includes the water connection in the street (trenching, piping and appurtenances), traffic control, and agency coordination.

The 2nd change relates to additional work required to mitigate an elevation discrepancy with a project storm drain catch basin. After field verification, it was determined that the elevation of the existing storm drain line that the park connects to was higher than that taken from existing utility drawings. Due to this discrepancy in elevation, the storm drain connection required an elevation adjustment and construction changes to the catch basin and the storm drain line.

The 3 rd change relates to supply chain problems with the specified, and contracted, playground equipment. Replacement equipment was secured. However, a design change required by this new equipment necessitated additional fibar and concrete border curb. The layout with the least impact to the project was determined in collaboration with the landscape architect, playground equipment manufacturer, and contractor. The approved plans did not provide a detail showing the curb depth necessary for this use zone clearance, necessitating additional fibar cushioning. The additional cost includes concrete, fibar cushion, and the labor to accomplish the proposed solution.

The 4th change relates to the construction of the seat wall adjacent to a retaining wall.

City Inspection staff paused construction of the seat wall with concerns that the seat wall might be required to be tied to the adjacent retaining wall. Upon consulting with the Design Engineer of Record, this requirement was determined to be unnecessary. The seat wall construction was able to resume, but the time spent evaluating the requirement created a delay in the work which was then further delayed due to rain. Additional costs for the rental of concrete forms were incurred by the contractor and the City negotiated to cover half of these rental costs.

Report to Mayor and City Council
Amendment No. 3 to PN 784, Rancho Vista Park
February 2, 2022

Page 3 ends

FISCAL IMPACT
This project is funded through Park Funds (220) and Public Art (156), which have been allocated in Account No. P0054. The adopted project budget total is $3,782,680.

Expenditures to date total $2,610,498 and additional costs to fully close out the project are estimated at $1,284,782, creating a budget shortfall of $112,600. Unappropriated Park Funds in the amount of $112,600 will be transferred into Account P0054220. The shortfall is due to increased costs for construction which exceeded the original contingency, increased costs for labor compliance and special inspection, administration time that was not originally budgeted into the project and a public art component.

The total cost for the project can be seen in the following table:

SCOPE OF WORK ORIGINAL ESTIMATED

PROJECT COST

UPDATED

PROJECT COST
Adopted Project Budget $3,536,155 $3,782,680
Design $224,049 $250,000
A-7149, Construction Contract $2,923,043 $2,923,043
Contingency $233,844
8,000
Supplemental Agreement No. 1
(admin approved) $55,043
Supplemental Agreement No. 2
(admin approved) $169,114
Supplemental Agreement No. 3 $218,856
Labor Compliance $29,230 $36,538
Special Inspection $20,000 $45,605
LA County Water Fees $1,782
Administration $110,000
Public Art $30,000
Anticipated cost to finish out project $47,305
Total Cost: $3,430,166 $3,895,286
Budget Surplus/(Shortfall) $105,989 ($112,600)
Report to Mayor and City Council
Amendment No. 3 to PN 784, Rancho Vista Park
February 2, 2022

Page 4 ends

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, P.E., Public Works Director Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: Ronda Perez, Acting City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS

1. Supplemental No. 3 to Agreement A-7149

A-7149
PN 784- Rancho Vista Park
SUPPLEMENTAL AGREEMENT NO. 3

EXHIBIT A
Change
Order #

DESCRIPTION COST
18 Playground change During construction, it was determined that the "use zone" clearance for the playground equipment required a depth of fiber that was not met by the construction of the playground border curb.

The approved plans did not provide a detail showing the curb depth necessary for this use zone clearance, necessitating a redesign of the playground equipment layout. The best layout with the least impact was determined in collaboration with the landscape architect, playground equipment manufacturer, and contractor.

This cost includes additional concrete, fibar, and labor to accomplish this solution.
$57,088.65
19 Water Connection It was determined that additional scope of work of creating a connection to water service was required for this project due to the lack of existing water service. This water connection was coordinated with Los Angeles County and the Antelope Valley East Kern Water Agency. This additional scope of work will allow the appropriate water connection to be made across Town Center Drive. RSB Group, Inc. has obtained a proposal from this portion of the work from a subcontractor, which includes the water connection, traffic control, and agency coordination. The waterline connection work was inadvertently left off the plans and the a bid item for it was not included in the original bid.
$144,738.26
20 Catch Basin Modified
Installation
Additional work is required to mitigate an issue regarding the new catch basin. After field verification, it was determined that the elevation of the existing storm drain that the park connects to was higher than the elevation noted on the drawings, which was taken from utility drawings. Due to this discrepancy in the elevation, the storm drain connection required an elevation adjustment in order to prevent backflow into the catch basin from the storm drain line.

The contractor will build a concrete extension to provide sufficient cover for the storm drain line and an additional concrete collar around the catch basin to prevent debris from entering the drain. $14,680.24
21 Concrete Forms Extended
Rental
During construction of the seat wall adjacent to Wall B, Building and Safety inspection determined that the seat wall might be required to be tied to the adjacent retaining wall, Wall B. After consulting with the Engineer of Record, this was determined to be a superfluous requirement which did not address horizontal movement between the walls. This however created a delay in the work which was then prevented to continue due to rain. Additional costs for concrete forms were incurred by the contractor and the City negotiated to cover half of these rental costs.
$2,348.66
TOTAL SUPPLEMENTAL AGREEMENT NO. 3 $218,855.81
City Council Staff Report
DATE: FEBRUARY 2, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2022 -018, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE AUTHORIZING
SUBMISSION OF A NOTIFICATION OF THE CITY’S INTENT TO
COMPLY WITH SENATE BILL 619, TO THE STATE DEPARTMENT
OF RESOURCES RECYCLING AND RECOVERY (CalRecycle)
ISSUE
Adopt Resolution No. CC 2022 -018, a Resolution of the City Council of the City of Palmdale authorizing submission of a Notification of the City’s Intent to Comply with Senate Bill (SB) 619, to the State Department of Resources Recycling and Recovery (CalRecycle).

RECOMMENDATION
Adopt Resolution No. CC 2022-018, authorizing submission of a Notification of the City’s Intent to Comply with SB 619 , to the State Department of Resources Recycling and Recovery (CalRecycle).

BACKGROUND
The State has committed to reduci ng greenhouse gas emissions under California’s Short-Lived Climate Pollutant Reduction Strategy also known as Senate Bill (SB) 1383.

The State’s target is to reduce organic waste disposal by 75 percent by 2025 .

Additionally, the State is looking torecover 20 percent of edible food waste that currently is being disposed for consumption by those in need.

SB 1383 was adopted in 2016 and regulations were approved in November 2020.

Regulations took effect January 1, 2022. However, due to the challenges many local governments faced during the COVID-19 pandemic; Governor Newsom signed SB 619 into law to support local governments as they design and implement successful organic waste recycling programs.

SB 619 authorizes CalRecycle to wa ive civil penalties if a jurisdiction submits a Notification of Intent to Comply for some or all of the applicable regulatory requirements (waiver will only apply to the requirements outlined in the application), implements a plan Report to Mayor and City Council
Re: Approval of Resolution No. CC 2022-018
Date of Meeting: February 2, 2022

Page 2 ends

to correct their violations, and is approved. Jurisdictions must successfully implement the plan to correct their shortfalls for compliance with the requirements that take effect during the 2022 calendar year, continuing the compliance deadline to the 2023 calendar year. To avoid penalties, the jurisdiction must adopt a resolution to certify the contents and timeline of the Notification of Intent to Comply. The application along with Notification to Comply and resolution must be submitted to CalRecycle by March 1, 2022. SB 619 does not provide an exemption from compliance; it only allows a deference of compliance for a year. CalRecycle has indicated that if a jurisdiction does not follow-through with its approved proposed actions and schedule as outlined in the notification, then they may rescind approval and impose penalties for violations occurring retroactively to the date of violation.

DISCUSSION
Notice of Intent to Comply includes a description of the continuing violations, an explanation of the reason why the City is unable to comply, a description of the impacts of the COVID-19 pandemic on compliance, and a description of the proposed actions the City will take to remedy the violations.

When the City put its Franchise Agreement out to bid and awarded it to Waste Management in 2017, the City worked with Waste Management to address organics, recognizing the State was going to implement more stringent requirements. The program started with providing organic waste collection services to local businesses.

Many local businesses have been educated about the upcoming changes and site visits have been conducted to assess their waste generation activities and space available to evaluate what size containers and frequency of service they will need to be in compliance.

On January 29, 2020, the City received a Notice of Mandatory Commercial Organics Recycling (MORe) Program Implementation Gap and shortly after that a Notice of Mandatory Commercial Recycling (MCR) Program Implementation Gap from CalRecycle. As a result, the City implemented the following programs to comply:
education and outreach, enforcement, service tracking, and compliance monitoring.

The City also had to be an early implementor of an enforceable ordinance that would require commercial and multifamily complexes to recycle their organic waste. Pursuant to the ordinance, if found to be non-compliant the generator would potentially face a penalty.

The City is in negotiations with Waste Management working on a Franchise Agreement amendment to be in full compliance with SB 1383, which will include several items recommended by CalRecycle’s model agreement and ordinance. Staff is also working with Waste Management on identifying an option and long-term solution for addressing all organic waste generated in the City.

Report to Mayor and City Council
Re: Approval of Resolution No. CC 2022-018
Date of Meeting: February 2, 2022

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FISCAL IMPACT
If the City does not submit Notification of Intent to Comply and the City is found to have violated SB 1383 regulations by CalRecycle, the City may face penalties starting from $500 up to a maximum $10,000 per violation, per day. The penalties can be combined; therefore, depending on the number and severity of the violations, the penalties could potentially be up to $10,000 per day of violation.

STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.

B. Implement and administer environmentally sustainable programs.

Prepared by: Chuck Heffernan, P.E., Director of Public Works Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: Ronda Perez, Acting City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS
Resolutions No. CC 2022-018
Notification of Intent to Comply

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-018

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

AUTHORIZING THE CITY TO SUBMIT NOTIFICATION OF INTENT TO

COMPLY TO THE DEPARTMENT OF RESOURCES RECYCLING AND
RECOVERY AS OUTLINED IN SENATE BILL 619
WHEREAS, the Department of Resources Recycling and Recovery (CalRecycle), in consultation with the California Air Resources Board, has adopted regulatory requirements (Regulations), consistent with the mandate of Senate Bill 1383 (Lara, 2016), that are designed to achieve the organic waste reduction goals established in Section 39730.6 of the Health and Safety Code through a 50 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and a 75 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2025; and
WHEREAS, the City of Palmdale (“City”) is a local jurisdiction required to comply with the Regulations; and
WHEREAS, City is or expects to be facing continuing violations of the Regulations commencing during the 2022 calendar year; and WHEREAS, Senate Bill 619 (Laird, 2021), through amendments to Section 42652.5 of the Public Resources Code (Statute), created a mechanism called a Notification of Intent to Comply through which a local jurisdiction may secure administrative civil penalty relief from any continuing violations of the Regulations for the 2022 calendar year and may be eligible for a broader and longer-term regulatory compliance path, including suspended administrative civil penalties, through a corrective action plan; and
WHEREAS, City is a local jurisdiction authorized by the Statute to submit a Notification of Intent to Comply for CalRecycle approval; and WHEREAS, CalRecycle shall approve a Notification of Intent to Comply that is duly adopted by the jurisdiction by formal written resolution and meets the requirements of the Statute.

Resolution No. CC 2022-018

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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 City Council of the City of Palmdale by and through its Public Works Director and/or his designee hereby formally adopts the Notification of Intent to Comply attached as Exhibit “A.”
SECTION 2. The City Council of the City of Palmdale hereby authorizes and directs the Public Works Director and/or his designee, on its behalf, to submit the Notification of Intent to Comply attached as Exhibit “A” to CalRecycle for approval pursuant to the Statute.

SECTION 3. By submitting the Notification of Intent to Comply pursuant to and subject to the above referenced requirements, the City represents and certifies that it will implement the proposed actions to remedy the violations according to the proposed schedule as approved by CalRecycle and in accordance with the Statute and Regulations.

SECTION 4. The City by and through its Public Works Director and/or his designee also acknowledges and agrees to comply with any maximum compliance deadline in any corrective action plan that CalRecycle, in its sole discretion, determines to be necessary and appropriate under the circumstances for the correction of any violation(s) of the Statute and Regulations identified in its Notification of Intent to Comply.

Resolution No. CC 2022-018

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SECTION 5. The Palmdale City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED and ADOPTED this 2nd day of February, 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 2nd day of February, 2022 by the following roll call vote:

AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT: ___________________________ Date: ______________________________ _____________________________ Shanae S. Smith, City Clerk
Notification of Intent to Comply
CalRecycle is providing this optional form as a convenience to assist jurisdictions (counties, cities, a county and city, or special districts providing solid waste collection services) for purposes of submitting a notification of intent to comply to CalRecycle [see Public Resources Code (PRC) section 42652.5(c)].

A jurisdiction may submit a notification of intent to comply if it is facing continuing violations of the Short-lived Climate Pollutants: Organic Waste Reductions requirements in Title 14 California Code of Regulations (14 CCR). The written notification of intent to comply, adopted by resolution of the jurisdiction’s governing body, shall be sent to CalRecycle no later than March 1, 2022, to [email protected].

A jurisdiction shall, at minimum, include the following in its notification:

1. A description, with specificity, of the continuing violations.

2. A detailed explanation of the reasons, supported by documentation, why the local jurisdiction is unable to comply.

3. A description of the impacts of the COVID-19 pandemic on compliance.

4. A description of the proposed actions the local jurisdiction will take to remedy the violations within the timelines established in 14 CCR section 18996.2 with a proposed schedule for doing so. The proposed actions shall be tailored to remedy the violations in a timely manner.

Upon approval by CalRecycle of a jurisdiction’s notification and implementation of the intent to comply, a jurisdiction may be eligible for both of the following:

1. Administrative civil penalty relief for the 2022 calendar year pursuant to PRC section 42652.5(d).

2. A corrective action plan pursuant to 14 CCR section 18996.2. a. CalRecycle may address through a corrective action plan any violations disclosed in a jurisdiction’s notification that will take more than 180 days to correct. In this situation, the proposed actions and schedule in the jurisdiction’s approved notification will be in effect until a corrective action plan is issued.

CalRecycle will respond in writing to a jurisdiction within 45 business days of receiving its notification with an approval, disapproval, request for additional information, or timeline for a decision on approval or disapproval. CalRecycle will include details about why a jurisdiction did not meet the requirements for a Notification of Intent to Comply when disapproving the jurisdiction’s notification.

Please clearly print or type responses. Attach additional pages as necessary.

Jurisdiction Name: County:

Person Completing the Form:

First Name: Last Name:

Title:

Mailing Address:

City: Zip Code:

Email Address:

Phone Number:

1. Select using the check boxes below or write in the continuing violations for each applicable regulatory section. For each selection, please describe the specific violations related to the regulatory section.

Example:
⾙ (B) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services i. Not implementing mandatory residential foodwaste collection for all residents. Note:

City already provides mandatory greenwaste collection to all residents ii. Not implementing mandatory commercial organics collection for all businesses under 2 cubic yards. Note: City already provides mandatory commercial organics collection to all businesses 2 cubic yard or more.

Disclaimer: The list of possible continuing violations below is not inclusive of all potential violations of the regulations.
(A) 14 CCR section 18984 Combined Organic Waste Collection Services. This requirement is not included since the requirements are further specified in sections 18984.1-18984.11. (B) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services (C) 14 CCR section 18984.2 Two-Container Organic Waste Collection Services (D) 14 CCR section 18984.3 Unsegregated Single Container Collection Services (E) 14 CCR section 18984.4 Recordkeeping Requirements for Compliance with Organic Waste Collection Services
(F) 14 CCR section 18984.5 Container Contamination Minimization (G) 14 CCR section 18984.6 Recordkeeping Requirements for Container Contamination Minimization
(H) 14 CCR section 18984.7 Container Color Requirements (I) 14 CCR section 18984.8 Container Labeling Requirements (J) 14 CCR section 18984.11 Waivers Granted by a Jurisdiction (K) 14 CCR section 18985.1. Organic Waste Recovery Education and Outreach. (L) 14 CCR section 18985.2. Edible Food Recovery Education and Outreach (M) 14 CCR section 18985.3. Recordkeeping Requirements for a Jurisdiction’s Compliance with Education and Outreach Requirements
(N) 14 CCR section 18988.1. Jurisdiction Approval of Haulers and Self-Haulers (O) 14 CCR section 18988.3. Self-haulers of Organic Waste (P) 14 CCR section 18988.4. Recordkeeping Requirements for Compliance with Jurisdiction Hauler Program
(Q) 14 CCR section 18989.1. CALGreen Building Codes
(R) 14 CCR section 18989.2 Model Water Efficient Landscape Ordinance (S) 14 CCR section 18991.1. Jurisdiction Edible Food Recovery Program (T) 14 CCR section 18991.2. Recordkeeping Requirements for Jurisdiction Edible Food Recovery Program
(U) 14 CCR section 18992.1. Organic Waste Recycling Capacity Planning (V) 14 CCR section 18992.2. Edible Food Recovery Capacity (W) 14 CCR section 18993.1. Recovered Organic Waste Product Procurement Target (X) 14 CCR section 18993.2. Recordkeeping Requirements for Recovered Organic Waste Procurement Target
(Y) 14 CCR section 18993.3. Recycled Content Paper Procurement Requirements (Z) 14 CCR section 18993.4. Recordkeeping Requirements for Recycled Content Paper Procurement
(AA) 14 CCR section 18994.2. Jurisdiction Annual Reporting Note: This requirement is not included since jurisdictions are still expected to report to CalRecycle.
(BB) 14 CCR section 18995.1. Jurisdiction Inspection Requirements Note: Section 18995.1(a)(1) should not be included because a jurisdiction should already be completing this action due to the requirements of PRC Chapter 12.9 (commencing with Section 42649.8)
(CC) 14 CCR section 18995.2. Implementation Record and Recordkeeping Requirements (DD) 14 CCR section 18995.3. Jurisdiction Investigation of Complaints of Alleged Violations Note: This requirement is not included since jurisdictions are still expected to investigate complaints.
(EE) 14 CCR section 18995.4. Enforcement by a Jurisdiction Use the check box(es) below to write in the continuing violations for any regulatory section(s) not reflected above and describe the specific violations related to the regulatory section.

Example:
⾙ (1) (Type regulatory section number) (Type regulatory section title) i. Describe the specific violations related to the regulatory section (1)
(2)
(3)
(4)
(5)

2. A detailed explanation of the reasons why the jurisdiction is unable to comply, supported by documentation, if applicable.

3. A description of the impacts of the COVID-19 pandemic on compliance.

4. Provide a description of the proposed actions the jurisdiction will take to remedy the violations with a proposed schedule for completing each action. The proposed actions shall be tailored to remedy the violations in a timely manner. See optional format below.

I hereby certify under penalty of perjury that the information provided herein is true and correct to the best of my knowledge.
------------------------------
Signature
------------------------------
Printed Name
------------------------------
Title
----------------------------
Date
Description of the proposed actions with proposed schedules the jurisdiction will take to remedy the violations. The proposed actions shall be tailored to remedy the violations in a timely manner.

Regulatory Requirement and Description
Action Proposed Schedule
TASK 1: Date to be completed:

TASK 2: Date to be completed:

TASK 3: Date to be completed:

Regulatory Requirement and Description
Action Proposed Schedule
TASK 1: Date to be completed:

TASK 2: Date to be completed:

EXAMPLE
Regulatory Requirement: (B.i.) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services
Description: Not implementing mandatory residential foodwaste collection for all residents. Note:

City already provides mandatory greenwaste collection to all residents Action Proposed Schedule
TASK 1: Purchase two additional collection trucks and modify collection routes
Date to be completed:
4/7/2022
TASK 2: The city will work with its hauler to find a facility to accept mixed organic waste.

Date to be completed:
4/14/2022
Regulatory Requirement: (B.ii.) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services
Description: Not implementing mandatory commercial organics collection for all businesses under 2 cubic yards. Note: City already provides mandatory commercial organics collection to all businesses 2 cubic yard or more.

Action: Proposed Schedule
TASK 1: Purchase two additional collection trucks and modify collection routes
Date to be completed:
4/21/2022
TASK 2: The city will work with its hauler to acquire and distribute appropriate containers to all commercial accounts. The city will obtain monthly reports from the hauler to monitor full distribution of carts.

Date to be completed:
4/28/2022

CC/SA/PCA Minutes 01/19/2022 1

MINUTES

CITY COUNCIL/SUCCESSOR AGENCY/PALMDALE CIVIC AUTHORITY

CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B

PALMDALE, CALIFORNIA
JANUARY 12, 2022

www.cityofpalmdale.org

5:00 P.M.
1) MAYOR TO CALL MEETINGS TO ORDER
Mayor Hofbauer called the meeting to order at 5:05 p.m.

2) ROLL CALL MAYOR/CHAIR HOFBAUER, MAYOR PRO TEM/VICE CHAIR LOA,

COUNCILMEMBERS/DIRECTORS CARRILLO, BISHOP, BETTENCOURT
PRESENT: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

ABSENT: None.
3) PUBLIC COMMENTS
4) PRESENTATION BY CITY ATTORNEY
City Attorney Beck confirmed all items would be heard as listed.

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.: 2021-047Date Filed:
9/27/21Date of Loss: 9/22/21
City Attorney's Office

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.

City Attorney's Office

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.

City Attorney's Office

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.

CC/SA/PCA Minutes 01/19/2022 2
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 ar e not yet known to a potential plaintiff or plaintiffs.

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 3008-041-002~007City 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
All Councilmembers were present and able to participate in all items.

Item 4.1 Conference with Legal Counsel - Anticipated Litigation: Council was provided an update on this matter and provided unanimous direction to staff.

Item 4.2 Employee Evaluation City Manager - Council gave unanimous direction staff.

Item 4.3 Employee Evaluation City Attorney - Council gave unanimous direction to staff.

Item 4.4 Conference with Legal Counsel – Anticipated Litigation, 8 cases: Council was provided an update on these matters and provided unanimous direction to staff.

Item 4.5 Conference with Legal Counsel – Existing Litigation D’Angelo v. County of Los Angeles, this matter was continued to a later date.

CC/SA/PCA Minutes 01/19/2022 3
Item 4.6 Conference with Legal Counsel – Existing Litigation Herrera v. City of Palmdale, this matter was continued to a later date.

Item 4.7 Conference with Legal Counsel – Existing Litigation Dolen v. Builders, this matter was continued to a later date.

Item 4.8 Real Property Negotiations, Council as provided an update on this matter and provided unanimous direction to staff.

There was no further reportable action.

6) ADJOURN CLOSED SESSION MEETING
The Closed Session meeting was adjourned at 7:24 p.m.

7:00 P.M.

Mayor Hofbauer called the meeting to order at 7:25 p.m.

7) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE IN HONOR OF OUR TROOPS
8) PRESENTATIONS

8.1) Director of Parks and Recreation Smith presented the City of Palmdale’s Warrior Award to Becky Bartlett.

8.2) Mayor Hofbauer presented a Proclamation to Fire Chief Stukey declaring January as Firefighter Cancer Awareness Month in the City of Palmdale.

8.3) Mayor Hofbauer presented a Proclamation to Bryan Moon, Chief Operating Officer Palmdale Regional Hospital, declaring January as Cervical Cancer Awareness Month in the City of Palmdale.

8.4) Mayor Hofbauer presented a Proclamation to Elise Levine, Executive Director, declaring January as National Blood Donor Month in the City of Palmdale.

8.5) Mayor Hofbauer presented a Proclamation to Arthur Calloway, Black Chamber of Commerce, declaring January 17, 2022 as Martin Luther King, Jr. Day in the City of Palmdale.

8.6) Public Supervisor German presented the cute critters available for adoption at the Palmdale Animal Care Center.
9) WAIVER OF FULL READING OF RESOLUTION(S) and ORDINANCE(S) Motion: Waive the full reading of Resolution(S) and Ordinances(S) Moved by Richard J. Loa, seconded by Juan Carrillo.

Vote: Motion carried (5-0)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

CC/SA/PCA Minutes 01/19/2022 4

10) PUBLIC COMMENTS
The following individuals made public comments:

Lancaster Resident Dave Bowman commented regarding the evaluation of City Manager Murphy.

Resident Alenna Schofield expressed concerns regarding City leadership.

Resident Jason Zink requested clarification on Item 12.6, consideration of renaming Desert Sands Park and the Antelope Valley Courthouse after Martin Luther King, Jr., and a homeless center.

Resident Betsy Haslett commented regarding City charter provisions.

Residents Amanda Palmer, Yvette Reyes, Abraham Sacedo, Rene, Carol Ross, Ryan Uribe, and Adrianna Sacedo spoke in support of passing Ordinance No. 1577.

Resident Jason Zink commented on the Amazon Project.

11) PALMDALE CIVIC AUTHORITY CONSENT CALENDAR

11.1) Adopt Resolution No. PCA 2022 -001, a Resolution of the P almdale Civic Authority of the City of Palmdale fixing the time and place for regular meetings. (Staff Reference: City Attorney Beck)
Motion: 11.1) Adopt Resolution No. PCA 2022 -001, a Resolution of the Palmdale Civic Authority of the City of Palmdale fixi ng the time and place for regular meetings. (Staff Reference: City Attorney Beck) Moved by Austin Bishop, seconded by Laura Bettencourt.

Vote: Motion carried (5-0)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

12) CONSENT CALENDAR

12.1) Receive and file the monthly investment activity reports for November 2021. (Staff Reference : Finance Manager Kang)
City Manager's Office - Finance Division

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)
City Manager's Office - Finance Division

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)
City Manager's Office - Finance Division

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) City Manager's Office - Finance Division

CC/SA/PCA Minutes 01/19/2022 5

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) City Manager's Office - Finance Division

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) Jason Zink requested clarification on Item 12.6. Director of Public Works Heffernan provided clarification on the sell of water.

12.7) Adopt Resolution No. CC 2022-012, a Resolution of the City Council of the City of Palmdale authorizing the ex ecution of an Emergency Mutual Response Agreement between member of Antelope Valley Agencies. (Staff Reference:

Director of Public Works Heffernan)
Mayor Pro Tem Loa pulled this item for discussion. Director of Public Works Heffernan explained the reimbursement process for the mutual aid agreement.

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)

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)
Councilmember Bishop pulled this item for discussion and expressed concerns regarding the overlay of the cape seal. Director of Public Works Heffernan stated Council and public concerns will be communicated to the contractor to improve the quality of overlays.

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 Ci ty 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.

CC/SA/PCA Minutes 01/19/2022 6

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)
Mayor Pro Tem Loa pulled this item for discussion. Director of Publi c Works Heffernan provided clarification on the acceptance of the sewer.

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

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)

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)

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)

12.16) Approve the minutes from the previous meetings. (Staff Reference: City Clerk/Agency Secretary Smith)

CC - October 20, 2021CC - October 28, 2021
CC - November 1, 2021
CC/SA - November 3, 2021
CC/SA - November 17, 2021
CC/SA - December 1, 2021
CC - December 15, 2021
Motion: Approve all items listed on the Consent Calendar.

Moved by Richard J Loa, seconded by Juan Carrillo.

Vote: Motion carried (5-0)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

13) APPOINTMENT

13.1) Approve Reappointment of Public Member to the Palmdale Recycled Water Authority. (Staff Reference City Clerk Smith)
Motion: 13.1) Approve Reappointment of Public Member to the Palmdale Recycled Water Authority. (Staff Reference City Clerk Smith) Moved by Juan Carrillo, seconded by Richard J. Loa.

Vote: Motion carried (5-0)

CC/SA/PCA Minutes 01/19/2022 7
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

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) This item was heard at 7:30 p.m.

Mayor Hofbauer opened the Public Hearing.

The following individuals provided public input:

Lancaster resident Dave Bowman, commented via Zoom, regarding the various district maps submitted and the selection process.

Resident Sandy Corrales commented regarding maps submitted and fair representation.

Resident Rosie Mainella commented regarding equitable maps and fair representation.

Resident Marcos Alvarez commented on inclusiveness and the selection of district maps.

Resident Jason Zink spoke regarding the establishment of a strong central district.

Resident Vladimir Gomez spoke in favor of maps three (3) and four (4).

Resident Xavier Flores, representing ALVA, thanked Council for accepting maps 203 and 205 and requested additional time for submission of maps.

A motion was made and carried unanimously to close the Public Hearing.

Kristen Parks, National Demographics Corporation, provided a detailed PowerPoint presentation to Council regarding the redistricting process and provided demographic analysis of maps submitted by the public and NDC maps.

Mayor Hofbauer recessed the meeting at 7:54 p.m. - 8:05 p.m.

Ms. Parks continued with the presentation and answered questions asked by Council.

Mayor Pro Tem Loa inquired whether ultimately the final map approval is made by the City Council, and whether they also had the ability to come up with a different map other than the maps recommended by the Advisory Redistricting Commission.

Councilmember Carrillo stated that a couple of members of the public submitted late maps and inquired whether those submissions would be accepted for consideration.

Ms. Parks clarified that the reason that we had given the public a submission deadline was to ensure that their maps would be processed and available online in advance of the public hearing. However, technically, the maps will be

CC/SA/PCA Minutes 01/19/2022 8
accepted throughout the process and it is just a matter of making sure that the maps being received are submitted timely in order to be presented to City Council. The map received the previous night would be available to Council prior to the February 2nd next hearing.

Mayor Hofbauer asked Ms. Parks if the public may continue to submit maps outside of the deadline? Ms. Parks stated that now is a much better time to review the maps that have been submitted and come forward with feedback on the draft maps because if too much more time elapses then someone submitting a map there really won't be enough time to process it and bring it to Council.

Discussion ensued regarding Council’s adoption of one map that would be utilized for the next ten years, however, the Advisory Redistricting Commission may recommend anywhere from zero to fifteen maps to Council for consideration. Hopefully, the commission will form a recommendation of one or two maps.

Councilmember Carrillo stated that during the presentation Ms. Parks stated that the current district maps may also be adopted, but that there would be an additional process that has to be reviewed through a different board. Ms. Parks clarified that there is not a different process, and that when we see the current district numbers not being valid, it is recommended that the client can't keep the current district and that new boundaries must be considered. In the case of Palmdale, if Council desires to consider the current boundaries, they could be considered side-by-side with all of the other maps and you could vote to readopt them if felt they adequately comply with the California Fair Maps Act. Ms. Park cautioned a little bit in that area because we have not seen any lawsuits under that new law yet, and that Cou ncil should be very mindful of the criteria , particularly that fourth criterion of compactness. Ms. Parks concluded that when we look at the current maps, the districts are not necessarily compact, and the reason the NDC maps attempted to make District 1 more compact to follow the Fair Maps Act.

Discussion continued.

14.2) Public Hearing and Review of Proposed Ordinance No. 1576 for adoption. (Staff Reference: Director of Public Works Heffernan)

Director of Public Works Heffernan read the title of Ordinance No. 1576.

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.

A motion was made and carried unanimously to introduce Ordinance No. 1576.

Mayor Hofbauer opened the Public Hearing.

A motion was made and carried unanimously to close the Public Hearing.

CC/SA/PCA Minutes 01/19/2022 9
Motion: Adopt Ordinance No. 1576, with corrections to page 4, 19, and 20.

Moved by Richard J. Loa, seconded by Juan Carrillo.

Vote: Motion carried (5-0)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

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
Motion: Continue this item to a future date pending the decision of the case Supreme Court Case of Biden vs. Missouri.

Moved by Richard J. Loa, seconded by Juan Carrillo.

Vote: Motion carried (3-2)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo.

No: Austin Bishop, Laura Bettencourt.

14.4) Public Hearing and Review of Proposed Ordinance No. 1578 for adoption. (Staff Reference: City Attorney Beck)

City Attorney Beck read the title of Ordinance No. 1578.

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.

A motion was made and carried unanimously to introduce Ordinance No. 1578.

Mayor Hofbauer opened the Public Hearing.

Testimony: None.

A motion was made and carried unanimously to close the Public Hearing.

A substitute motion was made by Councilmember Carrillo to hold the meeting on Thursdays, the motion died for lack of a second.

Motion: Adopt Ordinance No. 1578.

Moved by Richard J. Loa, seconded by Austin Bishop.

Vote: Motion carried (5-0)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

CC/SA/PCA Minutes 01/19/2022 10

14.5) Public Hearing and Review of Proposed Resolution No. CC 2022-001 for adoption. (Staff Reference: Finance Manager Kang)

Finance Manager Kang read the title of Resolution No. CC 2022-001.

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 APPLIC ATIONS 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

Mayor Hofbauer opened the Public Hearing.

Testimony: None.

A motion was made and carried unanimously to close the Public Hearing.

Council inquired regarding the interaction between the "BOLD" program and Mello-Roos, and new home ownership assessments and incentivization.

Consultant Jim Zimmer explained the "BOLD" program and Nelson Chung provided clarification.

Motion: Adopt Resolution No. CC 2022-001.

Moved by Richard J. Loa, seconded by Austin Bishop.

Vote: Motion carried (5-0)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

14.6) Public Hearing and Review of Proposed Resolution No. CC 2022 -005 for adoption. (Staff Reference: Director of Public Works Heffernan)

Director of Public Works Heffernan read the title of Resolution No. CC 2022- 005.

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

Deputy City Clerk Scott opened the ballots and confirmed the district carried.

Mayor Hofbauer opened the Public Hearing.

Testimony: None.

CC/SA/PCA Minutes 01/19/2022 11
A motion was made and carried unanimously to close the Public Hearing.

Motion: Adopt Resolution No. CC 2022-005 for adoption.

Moved by Richard J. Loa, seconded by Laura Bettencourt.

Vote: Motion carried (5-0)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

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)

Senior Planner Magana read the title of Resolution NO. CC 2022-011.

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 B Y 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.

Mayor Hofbauer opened the Public Hearing.

Testimony: None
A motion was made and carried unanimously to close the Public Hearing.

Discussion ensued regarding the timeframe of the Housing Element update.

Veronica, consultant, provided clarification to Council regarding the statutory guidelines.

Motion: Adopt Resolution No. CC 2022-011.

Moved by Richard J. Loa, seconded by Austin Bishop.

Vote: Motion carried (5-0)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

Motion: Continue the meeting after the 10:30 p.m. statutory time.

Moved by Richard J. Loa, seconded by Juan Carrillo.

Vote: Motion carried (5-0)
Yes: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

CC/SA/PCA Minutes 01/19/2022 12
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) City Attorney Beck provided a brief overview of the staff report. Discussion ensued regarding the geographic range of prohibited smoking.

Council directed City Attorney Beck to bring an Ordinance forth in February.

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
• 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

16.2) MEETINGS ATTENDED AT PUBLIC EXPENSE
17) CITY MANAGER’S REPORT
Acting City Manager Perez announced the Martin Luther King, Jr. Day Season of Service will be held this weekend at Legacy Commons and urged the public to reach out to Community Programs Coordinator Morales for more information.

18) CITY COUNCIL REQUESTS FOR NEW AGENDA ITEMS
Councilmember Bettencourt:
• Requested information from staff regarding a quality cemetery for residents in the City of Palmdale. Mayor Hofbauer directed Councilmember Bettencourt to discuss requests for a new cemetery with Dave Owens and the Board Members at the Antelope Valley Cemetery District.

• Requested an update on the surveillance cameras. Acting City Manager Perez stated G4S had been on -site doing the analysis of City facilities and various sites throughout Palmdale and G4S requires at least 90 days to make recommendations before the City can go to bid.

CC/SA/PCA Minutes 01/19/2022 13
• Inquired regarding the use of Measure AV funds for the anti -smoking coalition.

• Requested a quality domestic violence shelter.

Mayor Pro Tem Loa requested an update on the prosecution of misdemeanors from the City Attorney's Office.

Councilmember Carrillo directed staff to review the Quimby Act in our Palmdale Municipal Code and create a policy for the use of development fees collected. City Attorney took the direction to research the Quimby Act.

Councilmember Bishop requested the status on illegal dumping, signage, and possible discussions with Waste Management.

19) Adjournment
Mayor Hofbauer adjourned the meeting at 10:53 p.m., in honor of Los Angeles County Fire Department Jonathan Flagler, to January 19, 2022 at 7:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

APPROVED, PASSED, and ADOPTED this 2nd day of February 2022.

Steven D. Hofbauer, Mayor

ATTEST:

Shanae S. Smith, City Clerk

City Council Meeting 01/19/2022 1

MINUTES

CITY COUNCIL MEETING

CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B

PALMDALE, CALIFORNIA
JANUARY 19, 2022

www.cityofpalmdale.org

5:00 P.M.
1) MAYOR TO CALL MEETINGS TO ORDER
Mayor Pro Tem Loa called the meeting to order at 5:00 p.m.

2) ROLL CALL MAYOR HOFBAUER, MAYOR PRO TEM LOA,

COUNCILMEMBERS CARRILLO, BISHOP, BETTENCOURT
PRESENT: Steven Hofbauer, Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

ABSENT: None.

3) PUBLIC COMMENTS
None.

4) PRESENTATION BY CITY ATTORNEY
City Attorney Beck confirmed items would be heard as listed.

4.1) CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Gerald and Roberta Dolen v. Builders Fence Company, et al Los Angeles County Superior Court
Case No. 21AVC00377

4.2) CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Raul Herrera v. City of Palmdale, et al.

Los Angeles County Superior Court
Case No. 21AVC00044

4.3) CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Donald D'Angelo v. County of Los Angeles, et al
Los Angeles County Superior Court
Case No. 21AVC00441

4.4) 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

City Council Meeting 01/19/2022 2

Associates, LLC; Jaz Investment Corp; Royal & Aframian LLC; 26 Maple LLC. Property: APNs 3008-041-002~007City 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, inc luding price, for the possible purchase of the real property identified above.

4.5) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED
LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9 of the California Government Code. Number of Cases: One.

4.6) CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED
LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: One case.

Closed session is recommended because the City will assess the merits of this matter, and/or threat. Based on existing facts and circumstances, there is a significant exposure to litigation against the City of Palmdale.

The existing facts and circumstances that might result in litigation against the City of Palmdale are that the law firm of Shenkman & Hughes has sent a letter to the City of Palmdale regarding decennial redistricting process which could amount to a threat of litigation. The aforementioned facts and circumstances are stated as required by Government Code Section 54956.9 (e)(2). Based on the existing facts and circumstances, it is the opinion of the City Attorney that it would prejudice the position of the City of Palmdale to discuss this matter in public or to disclose further circumstances in this potential case. Further, such disclosure may harm any settlement attempts or other efforts to resolve the matter without litigation.
5) ANNOUNCEMENT BY CITY ATTORNEY
All Councilmembers were present and able to participate in all items, except item 4.3.

Item 4.1 Conference with Legal Counsel – Existing Litigation: Dolen v. Builders Fence Company – Council was provided an update on this matter and provided unanimous direction to staff. There was no further reportable action.

Item 4.2 Conference with Legal Counsel – Existing Litigation: Herrera v. City of Palmdale – Council was provided an update on this matter and provided unanimous direction to staff. There is no further reportable action at this time.

Item 4.3 Conference with Legal Counsel – Existing Litigation: D’Angelo v.

County of Los Angeles – Council was provided an update on this matter and provided direction to staff with Councilmember Bishop abstaining. There was no further reportable action.

City Council Meeting 01/19/2022 3

Item 4.4 Real Property Negotiations – Council was provided an update on this matter and provided unanimous direction to staff. There was no further reportable action.

Item 4.5 Conference with Legal Counsel – Anticipated Litigation – Council was provided an update on this matter. There was no further reportable action.

Item 4.6 Conference with Legal Counsel – Anticipated Litigation – Council was provided an update on this matter and provided unanimous direction to staff.

There was no further reportable action.

6) ADJOURN CLOSED SESSION MEETING
Mayor Hofbauer adjourned the meeting at 7:14 p.m.

7:00 P.M.

Mayor Pro Tem Loa called the meeting to order at 7:15 p.m.

7) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE IN HONOR OF

OUR TROOPS
Mr. Don Hoperich led the pledge of allegiance.

8) PUBLIC COMMENTS
The following individuals made public comments:

Lancaster Resident Dave Bowman commented regarding the use of public funds and potential lawsuits.

Resident Alenna Schofield regarding proper representation of people of color; Resident Marcos Alvarez discussed the submission of redistricting maps, inclusiveness, and plans for Palmdale Blvd.

Mr. Hoperich, CEO and founder of the Chamber of Commerce of the Greater Antelope Valley requested an extension of the recruitment for the Tourism Improvement District appointments to afford him the opportunity to submit an application for consideration.

9) WORKSHOP PRESENTATION

9.1) New State Waste Diversion Rules. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden)
Management Analyst Mejia and Waste Management Recycling Manager Cortes provided a PowerPoint presentation to Council regarding the New State Waste Diversion Rules. Council inquired regarding the March 1 st deadline, additional cost to residents, and the Waste Management franchise agreement. Environmental Resource Manag er Lucha announced that the City is in negotiations with Waste Management regarding the additional services and he mentioned the potential

City Council Meeting 01/19/2022 4

compounding penalties for non -compliance of the new rules. Waste Management Recycling Manager Cortes stated Wa ste Management is interested in partnering with the City.

10) APPOINTMENTS

10.1) Approve nominations for appointment to the Board of Directors for Visit Palmdale. (Staff Reference: Director of Economic and Community Development Garibay - Presented by Economic Development Coordinator Gonzalez)
Economic and Community Development Garibay provided a brief overview of the item. Discussion ensued regarding reopening the recruitment.

Motion: Move forward with Council and staff appointment and reopen recruitment for public member.

Moved by Laura Bettencourt, seconded by Juan Carrillo.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

Absent: Steven Hofbauer.

Motion: Appoint Economic and Community Development Director Garibay to the Tourism Improvement District.

Moved by Laura Bettencourt, seconded by Richard J. Loa.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

Absent: Steven Hofbauer.

Motion: Appoint Councilmember Bishop.

Moved by Juan Carrillo, seconded by Laura Bettencourt.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

Absent: Steven Hofbauer.

Mayor Pro Tem Loa continued the appointment of the public member to the February 16, 2022 meeting.

10.2) Approve alternate member nomination for appointment to the Measure AV Oversight Committee. (Staff Reference: City Clerk Smith) City Clerk Smith provided a brief overview of the staff report and addressed questions and concerns posed by Council regarding whether the recruitment was widely publicized, as many members of the public reported they were unaware of the job posting. Discussion ensued.

Motion: Continue the appoint to the Measure AV Oversight Committee

City Council Meeting 01/19/2022 5

and reopen the recruitment for the alternate member.

Moved by Laura Bettencourt, seconded by Juan Carrillo.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Juan Carrillo, Austin Bishop, Laura Bettencourt.

Absent: Steven Hofbauer.

11) ADJOURNMENT
Mayor Pro Tem Loa adjourned the meeting at 8:58 p.m.

APPROVED, PASSSED, and ADOPTED this 2nd day of February 2022.

Steven D. Hofbauer, Mayor

ATTEST:

Shanae S. Smith, City Clerk
City Council Staff Report
DATE: FEBRUARY 2, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT, CITY CLERK DIVISION
CITY ATTORNEY’S OFFICE
DISTRICT: ALL
SUBJECT: PUBLIC HEARING TO REVIEW AND CONSIDER THE

REDISTRICTING DRAFT MAPS RECOMMENDED BY THE

ADVISORY REDISTRICTING COMMISSION
ISSUE
Public Hearing to Review and Consider the Redistricting Draft Maps Recommended by the Advisory Redistricting Commission.

RECOMMENDATION
The City Council has the following options:

1. Approve one of the two proposed district boundary maps (Public Map 208 and ALVA Map) recommended by the Advisory Redistricting Commission and direct staff to bring back Ordinance No. 1579, An Ordinance of the City Council of the City of Palmdale Adopting a Map Describing Voting District Boundaries and Amending Chapter 4.10 of Title 4 of the Palmdale Municipal Code at the February 16, 2022 City Council meeting.

2. Reject both proposed district boundary maps and return it to t he Advisory Redistricting Commission with a detailed statement of the reasons for such disapproval and a request to modify the proposed district boundary maps for future consideration by the Advisory Redistricting Commission.

BACKGROUND
Every ten years, California cities with by -district election systems must use new census data to review and, if needed redraw district lines to reflect how local populations have changed. This process, called redistricting, ensures all districts have near ly equal population. The redistricting process for the City of Palmdale must be completed by April 17, 2022.

The City of Palmdale adopted its current district boundaries in 2016 based on 2010 census data, as required by law. The district boundaries must now be reconsidered using the 2020 census data and in compliance with the Fair and Inclusive Redistricting for Municipalities and Political Subdivisions (“ FAIR MAPS”) Act, which was adopted by the Report to Mayor and City Council
Re: Review and Consider the Redistricting Draft Maps Recommended by the Advisory Redistricting Commission
February 2, 2022

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