Palmdale City Council
May 4, 2022

BACKGROUND
The City of Palmdale is an entitlement city for the purpose of determining its eligibility to receive an annual allocation of Community Development Block Grant (CDBG) program funds and a participating jurisdiction for HOME Investment Partnerships (HOME) funds through the U.S. Department of Housing and Urban Development (HUD).

As a prerequisite for receiving its annual CDBG and HOME allocation, the City is required to submit a Consolidated Plan every five years, and an Annual Action Plan each year to HUD for approval. The purpose of the Five-Year Consolidated Plan and Annual Action Plan are to 1) assess the housing and community development needs of low- and moderate- income residents of Palmdale; 2) develop and describe a strategy to meet those needs; 3) describe the City’s programs and projects, and the funding sources to meet those needs for the 2022-2023 Program Year; and 4) describe the geographic distribution of resources and activities. The Draft 2022-2023 Annual Action Plan was prepared by LDM Associates, with staff assistance.

DISCUSSION
Examination of 2011-2015 American Community Survey (ACS) 5-Year Estimates and the 2011-2015 Comprehensive Housing Affordability Strategy (CHAS) data supplied by HUD in the required eConPlanning Suite planning framework, in addition to local data, as well as consultation with citizens and stakeholders revealed six goals to be addressed through the investment of an anticipated $11 million of CDBG and HOME funds over the five-year period of the Consolidated Plan. In consideration of community input and available data from HUD, the following goals were identified:
 Affordable Housing
o Increase the supply of affordable housing (99 housing units) o Preserve the supply of affordable housing (5 housing units) o Provide rental assistance to low-income households at-risk of homelessness (80 households)
 Fair Housing Services
o Ensure equal access to housing opportunities (1,500 people)  Public Services including homelessness
o Prevent and eliminate homelessness and provide public services for residents including those with special needs (25,000 people)  Public Facilities and Infrastructure Improvements (200,000 people)  Economic Opportunity
o Expand economic opportunity for low-income residents and small business owners (40 businesses assisted / 20 jobs created/retained)  Planning and Administration
The CDBG revenue available for programming is summarized below:

Report to Mayor and City Council
Re: Public Hearing Draft 2022-2023 Action Plan
May 4, 2022

Revenue: $1,400,000
Prior Year(s) Funding Available: $50,000
The proposed CDBG eligible activities are:

Applicants Project Descriptions Funding
Requests
South Antelope
Valley Emergency
Services (SAVES)
Support a continuum of services in the
Antelope Valley to prevent and eliminate
homelessness including but not limited to
emergency services, homeless prevention
programs, case management and bridge
housing. This is an eligible activity under
570.201(e) and meets the national objective
under 570.208(a)(2)(1)(B) low/mod limited
clientele.
$210,000
Public Services Subtotal $210,000
ADA Public
Facilities
Improvements
The ADA Improvements project will include the
design and installation ADA improvements and
upgrades to the Domenic Massari Park Soccer
Field and to Palmdale Playhouse. This is an
eligible activity under 570.201(c) of regulation
and meets the low/mod benefit national
objective under 570.208(a)(2).
$386,430
Capital
Improvements
Subtotal $386,430
Section 108 Debt
Service
Annual debt service and trustee fees for
Section 108 Loan Guarantee. This is an
eligible activity under 570.705(c).
$573,570
Housing Rights
Center
Fair Housing Services. This is an eligible
activity under 570.206(c).
$38,620
Program
Administration
Implementation of the CDBG Program (< 20%
of total program award) This is an eligible
activity under 570.206.
$241,380
Administrative
/Other
Subtotal $853,570
Total Estimated CDBG 2022-2023 Allocation $1,450,000
The funding reflected in the Annual Action Plan are estimated amounts. Should the final allocation amount be different from the estimate, proposed activity budgets will be adjusted in the following manners:
 Fair Housing Services and Section 108 Debt Service will remain at the estimated budgets.

Report to Mayor and City Council
Re: Public Hearing Draft 2022-2023 Action Plan
May 4, 2022

 The other activities will be adjusted proportionately to reflect either an increase or decrease for the allocation.

The HOME revenue available for programming is summarized below:
2022-2023 Allocation $400,000
The proposed HOME eligible activities are:

Applicants Project Descriptions Funding
Requests
Tenant Based
Rental Assistance
Implementation of tenant-based rental
assistance to prevent eviction. This is an
eligible activity under 24 CFR Part 92.
$175,000
TBD: Affordable
Rental Housing
A project has not yet been determined. (This
includes the CHDO set aside of $60,000) This
is an eligible activity under 24 CFR Part 92.
(The City will conduct a public hearing to
amend the Action Plan once a suitable project
is identified)
$185,000
Program
Administration
Implementation of the HOME Program (< 10%
of total program award). This is an eligible
activity under 92.207.
$40,000
Total Estimated HOME 2022-2023 Allocation $400,000
The funding reflected in the Annual Action Plan are estimated amounts. Should the final allocation amount be different from the estimate, proposed activity budgets will be adjusted in the following manners:
 Tenant-Based Rental Assistance will remain at the estimated budget.  The other activities will be adjusted proportionately to reflect either an increase or decrease for the allocation.

In compliance with the City’s approved Citizen Participation Plan and Implementing Regulation 24 CFR 91.105, a Public Notice was published in the Antelope Valley Press on April 1, 2022, to inform residents that the Draft 2022-2023 Action Plan was available for review and comments. Citizens were advised that copies of the aforementioned documents were available for review on the City’s website from April 1, 2022, to May 4, 2022, and the documents would be available in hardcopy format at the Neighborhood Services Department office, the Palmdale Public Library, and the Administration Building.

The public notice invited citizens to provide written comments to the Housing staff at the Department of Neighborhood Services, 38250 Sierra Highway, Palmdale, CA 93550 or via email to [email protected] before 5:00 p.m. on May 4, 2022, and also during the public hearing on May 4, 2022 beginning at 7:00 p.m. at the City Council meeting in Council Chambers located at 38300 Sierra Highway, Suite B, Palmdale, CA Report to Mayor and City Council
Re: Public Hearing Draft 2022-2023 Action Plan
May 4, 2022

93550. The public notice also invited citizens submit comments in advance of the meeting utilizing the City’s eComment tool located at https://cityofpalmdale.org/310/City-Council- Meetings. Click on “eComment” next to the meeting Agenda once available.

FISCAL IMPACT
For Fiscal Year 2022-2023 the City will receive an estimated allocation of $1,400,000 in Community Development Block Grant (CDBG) funds, and $400,000 in HOME Investment Partnerships (HOME) funds. Together with $50,000 of prior year CDBG resources, a total of $1,850,000 is available for the 2022-2023 Action Plan.

STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.

A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.

Prepared by: Sophia Reyes, Housing Manager
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Acting City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS
Draft 2022-2023 Action Plan

City Council Staff Report
DATE: May 4, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: NEIGHBORHOOD SERVICES

HOUSING DIVISION
DISTRICT: ALL
SUBJECT: PUBLIC HEARING TO HEAR PUBLIC COMMENTS ON THE DRAFT

HOME-ARP ALLOCATION PLAN AND THE PROPOSED

EXPENDITURE OF HOME INVESTMENT PARTNERSHIPS

PROGRAM AMERICAN RES CUE PLAN (HOME -ARP) FUNDS OF
$2,093,986; REVIEW , APPROVE, AND SUBMIT THE HOME-ARP
ALLOCATION PLAN; AND EXECUTE DOCUMENTS RELATED TO
THE SUBMISSION OF THE HOME-ARP ALLOCATION PLAN.

ISSUE
Public Hearing to hear public comments on the Draft HOME-ARP Allocation Plan and the proposed expenditure of HOME Investment Partnerships Program American Rescue Plan (HOME-ARP) funds; Review and approve the HOME-ARP Allocation Plan; and Authorize the City Manager or their designee to make necessary changes and submit the HOME-ARP Allocation Plan , execute documents related to the submission of the HOME-ARP Allocation Plan.

RECOMMENDATION
Staff recommends that the City Council:

1. Open a public hearing to receive public comments on the Draft HOME-ARP Allocation Plan and the proposed expenditure of HOME-ARP funds in compliance with the requirements of the U.S. Department of Housing and Urban Development (HUD) and the City’s Citizen Participation Plan;

2. Direct staff to incorporate the public comments into the HOME -ARP Allocation Plan;

3. Review and approve the HOME-ARP Allocation Plan; and

4. Authorize the City Manager or their designee to make necessary changes and submit the HOME-ARP Allocation Plan , execute documents related to the submission of the HOME-ARP Allocation Plan.

Report to Mayor and City Council
Re: Public Hearing Draft HOME-ARP Allocation Plan
May 4, 2022

BACKGROUND
The City of Palmdale is a participating jurisdiction for HOME Investment Partnerships (HOME) funds through the U.S. Department of Housing and Urban Development (HUD).

As such, the City has been awarded $2,093,986 of HOME-American Rescue Plan Act (HOME-ARP) funding.

As a prerequisite for receiving the HOME-ARP allocation, the City is required to submit a HOME-ARP Allocation Plan that includes 1) a summary of the consultation process and the results of consultation; 2) a summary of comments received through the public participation process and a summary of any comments or recommendations not accepted and the reason why; 3) a description of HOME-ARP qualifying populations within the jurisdiction; 4) an assessment of unmet needs of each qualifying population; 5) an assessment of gaps in housing and shelter inventory, homeless assistance and services, and homelessness prevention service delivery system; and 6) a summary of planned use of HOME-ARP funds for eligible activities based on the unmet needs of the qualifying populations. The Draft HOME-ARP Allocation Plan was prepared by LDM Associates.

DISCUSSION
The American Rescue Plan Act (ARP) defines qualifying individuals or families, including Veterans, that are 1) homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act; 2) at risk of homelessness, as defined in section 401 of the McKinney-Vento Homeless Assistance Act; 3) fleeing or attempting to flee domestic violence, dating violence, sexual assault, or stalking (as defined by HUD in 24 CFR

5.2003) or human trafficking (as outlined in the Trafficking Victims Protection Act of 2000 as amended [22 USC 7102]); and 4) part of other populations, where providing supportive services or assistance under section 212(a) of the National Affordable Housing Act 42 USC 12472(a) would prevent a family’s homelessness or serve those with the greatest risk of housing instability.

HOME-ARP funds may be used benefit qualifying populations through the following programs:

1. Tenant-based Rental Assistance (TBRA);

2. Development and support of affordable housing;

3. Provision of supportive services;

4. Acquisition and development of non-congregate shelter;

5. Nonprofit capacity building and operating assistance; and

6. Program planning and administration.

To ensure broad input into the HOME-ARP Allocation Plan from stakeholders and the public, the City engaged in consultation with stakeholders and the public, including a virtual consultation session, a survey of stakeholders, and 30-day public comment period.

Additional input may be received in the public hearing on May 4, 2022.

Using data available from HUD, the US Census Bureau, and other reliable sources and input for those consulted through the survey and a virtual meeting with stakeholders, the Report to Mayor and City Council
Re: Public Hearing Draft HOME-ARP Allocation Plan
May 4, 2022

required needs assessment and gap analysis was completed. The needs assessment and gap analysis identified the following needs and gaps within the City:
 In January 2020, the annual Point in Time (PIT) count revealed that 48 people were residing in emergency housing, either in shelter or transitional housing.

Another 237 people were unsheltered on the streets, in tents or makeshift shelters, or in cars, vans, RVs or campers.
 2014-2018 Comprehensive Housing Affordability Strategy (CHAS) Data from HUD reported 5,575 households with incomes at or below 30% AMI are at risk of homelessness in the City.
 The 2014-2019 HUD CHAS data indicates there are 6,115 renter households with an annual income at or below 30% AMI with a cost burden that are at greatest risk of housing instability.
 The CHAS data reports that there are 2,805 households with incomes more than 30 and but equal to or less than 50% AMI that are at risk of homelessness in the City because of at least one of the housing problems as defined by HUD.  The greatest need for supportive services is in the areas of Job training and employment services, housing search and housing counseling services, childcare assistance, mental health services, outreach services, and case management services.

To address these needs within the community the City will continue to fund the development and support of affordable housing, tenant-based rental assistance (TBRA), and supportive services through HUD funding available to the City, including annual allocations of CDBG and HOME and focus this new allocation of HOME-ARP funds towards the development of non-congregate shelter units.

In compliance with the City’s approved Citizen Participation Plan and Implementing Regulation 24 CFR 91.105, a Public Notice was published in the Antelope Valley Press on April 1, 2022, to inform residents that the HOME-ARP Allocation Plan was available for review and comments. Citizens were advised that copies of the aforementioned documents were available for review on the City’s website from April 1, 2022, to May 4, 2022, and the documents would be available in hardcopy format at the Neighborhood Services Department office, the Palmdale Public Library, and the Administration Building.

The public notice invited citizens to provide written comments to the Housing staff at the Department of Neighborhood Services, 38250 Sierra Highway, Palmdale, CA 93550 or via email to [email protected] before 5:00 p.m. on May 4, 2022, and also during the public hearing on May 4, 2022 beginning at 7:00 p.m. at the City Council meeting in Council Chambers located at 38300 Sierra Highway, Suite B, Palmdale, CA 93550. The public notice also invited citizens submit comments in advance of the meeting utilizing the City’s eComment tool located at https://cityofpalmdale.org/310/City-Council- Meetings. Click on “eComment” next to the meeting Agenda once available.

Report to Mayor and City Council
Re: Public Hearing Draft HOME-ARP Allocation Plan
May 4, 2022

FISCAL IMPACT
The City has been allocated $2,093,986 of HOME-American Rescue Plan Act (HOME- ARP) funding.

STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.

A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.

Prepared by: Sophia Reyes, Housing Manager
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Acting City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS
Draft HOME-ARP Allocation Plan

City Council Staff Report
DATE: MAY 4, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS – ENVIRONMENTAL RESOURCES DIVISION
DISTRICT: ALL
SUBJECT: ADOPT ORDINANCE NO. 1587, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALMDALE AMENDING CHAPTER 5.52
(SOLID WASTE HANDLING AND RECYCLING SERVICES) OF TITLE
5 (BUSINESS LICENSES, TAXES, AND REGULATION) OF THE

PALMDALE MUNICIPAL CODE IMPLEMENTING ORGANIC WASTE
DIVERSION REGULATIONS.

ISSUE
Adopt Ordinance No. 1587, an Ordinance of the City Council of the City of Palmdale amending Chapter 5.52 (Solid Waste Handling and Recycling Services) of Title 5 (Business Licenses, Taxes, a nd Regulation) of the Palmdale Municipal Code implementing organic waste diversion regulations.

RECOMMENDATION
Staff recommends that the City Council approve the reading of Ordinance No. 1587, hold a public hearing on said Ordinance No. 1587, close the public hearing and adopt Ordinance No. 1587.

BACKGROUND
The State has committed to reducing greenhouse gas emissions under California’s Short-Lived Climate Pollutant Reduction Strategy also known as SB 1383. To reduce the emissions, one of the State’s targets is to reduce organic waste disposal by 5 0 percent by 2020 and 75 percent by 2025. Also, by 2025, 20 percent of what currently is disposed of as edible food must be recovered for consumption by those in need.

Senate Bill (SB) 1383 was adopted in 2016 and regulations were approved November 2020. Regulations took effect January 1, 2022.

To comply with State Law and these goals , the City must enforce several types of programs. These programs include, but are not limited to:
 Providing mandatory organic waste curbside collection services to all resi dents and businesses;
 Establishing an edible food recovery program that recovers edible food from the waste stream;
Report to Mayor and City Council
Re: Ordinance No. 1587
May 4, 2022

 Conducting outreach and education to all affected parties, including generators, haulers, facilities, edible food recovery organizations, and City departments;  Conducting capacity planning for organic waste and edible food recovery;  Procuring recycled organic waste products like compost, mulch, renewable natural gas, and recycled content paper and paper products; and  Inspecting and enforcing compliance as well as maintaining extensive records and documentation.

DISCUSSION
The City was notified by the Department of Resource Recycling and Recovery (“CalRecycle”) that the City’s current ordinance does not fulfill requirements of SB 1383.

Proposed Ordinance No. 1587 addresses CalRecycle’s concerns and updates the City’s regulations relating to solid waste handling and recycling services to be consistent with State law.

Specifically, Proposed Ordinance No. 1587 amends Chapter 5.52 of the Palmdale Municipal Code regarding solid waste handling and recycling services by adding regulations regarding organic waste recycling.

FISCAL IMPACT
Proposed Ordinance No. 1587 does not have any direct fiscal impact on the General Fund. However, failure to bring the City into compliance with recent changes in the law could have significant financial implications to the City. CalRecycle has the authority to fine cities up to $10,000 per day of noncompliance. If the City cannot bring the ordinance into compliance within time constraints established by CalRecycle, the City will not be eligible for SB 1383 grant funds, which will assist the City with complying with the required changes.

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

A. Use a variety of methods to communicate timely, useful, and trusted information about City programs, services and policies.

Goal III: Invest in infrastructure to improve community livability.

B. Implement and administer environmentally sustainable programs.

Prepared by: Chuck Heffernan, Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim City Manager
Approved as to form: Christopher Beck, City Attorney
Report to Mayor and City Council
Re: Ordinance No. 1587
May 4, 2022

ATTACHMENTS

1. Ordinance No. 1587

CITY OF PALMDALE

COUNTY OF LOS ANGELES, CALIFORNIA
ORDINANCE NO. 1587

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALMDALE AMENDING CHAPTER 5.52 (SOLID WASTE HANDLING AND
RECYCLING SERVICES) OF TITLE 5 (BUSINESS LICENSES, TAXES,

AND REGULATION) OF THE PALMDALE MUNICIPAL CODE

IMPLEMENTING ORGANIC WASTE DIVERSION REGULATIONS
WHEREAS, state recycling law, Assembly Bill 939 of 1989, the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq., as amended, supplemented, superseded, and replaced from time to time), requires cities and counties to reduce, reuse, and recycle (including composting) Solid Waste generated in their Jurisdictions to the maximum extent feasible before any incineration or landfill disposal of waste, to conserve water, energy, and other natural resources, and to protect the environment.

WHEREAS, state recycling law, Assembly Bill 341 of 2011 (approved by the Governor of the State of California on October 5, 2011, which amended Sections 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, as amended, supplemented, superseded and replaced from time to time), places requirements on businesses and Multi-Family property owners that generate a specified threshold amount of Solid Waste to arrange for recycling services and requires Jurisdictions to implement a Mandatory Commercial Recycling program.

WHEREAS, state organics recycling law, Assembly Bill 1826 of 2014 (approved by the Governor of the State of California on September 28, 2014, which added Chapter

12.9 (commencing with Section 42649.8) to Part 3 of Division 30 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time), requires businesses and Multi-Family property owners that generate a specified threshold amount of Solid Waste, Recycling, and Organic Waste per week to arrange for recycling services for that waste, requires jurisdictions to implement a recycling program to divert Organic Waste from businesses subject to the law, and requires Jurisdictions to implement a Mandatory Commercial Organics Recycling program.

WHEREAS, SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, requires CalRecycle to develop regulations to reduce organics in landfills as a source of methane. The regulations place requirements on multiple entities including Jurisdictions, residential households, Commercial Businesses and business owners, Commercial Edible Food Generators, haulers, Self-Haulers, Food Recovery Organizations, and Food Ordinance No. 1587

Recovery Services to support achievement of Statewide Organic Waste disposal reduction targets.

WHEREAS, SB 1383, the Short-lived Climate Pollutant Reduction Act of 2016, and the SB 1383 Regulations require cities to adopt and enforce an ordinance or enforceable mechanisms to mandate that organic waste generators, haulers, and other entities subject to the requirements of this Article, that are subject to the cities authority comply with relevant provisions of the SB 1383 Regulations. This ordinance will also help reduce food insecurity by requiring Commercial Edible Food Generators to arrange to have the maximum amount of their Edible Food, that would otherwise be disposed, be recovered for human consumption.

WHEREAS, on November 17, 2020, in cooperation with CalRecycle the City of Palmdale adopted Ordinance 1554 implementing commercial and multifamily organic waste Recycling regulations; and
WHEREAS, the final regulation text of the SB 1383 Regulations implementing SB 1383 was adopted by CalRecycle on November 3, 2020, and WHEREAS, on January 25, 2021, CalRecycle has published a revised Model Mandatory Organic Waste Disposal Reduction Ordinance and have recently communicated to the City a need to update City regulations to comply; and WHEREAS, CalRecycle has informed City that the City’s eligibility for CalRecycle grant funding for SB 1383 programming is subject to the City updating the City’s regulations; and
WHEREAS, this ordinance is intended to authorize the City Manager to make determinations and undertake or arrange for programs and activities required to implement the relevant provisions of the SB 1383 Regulations; and WHEREAS, nothing in this Ordinance is intended to nor shall it be interpreted or construed as violating 14 California Code of Regulations Sections 18990.1(b) or 18990.2; and
WHEREAS, participation and receipt of CalRecycle grant funds are necessary to fully comply with the SB1383 Regulations and therefore there is an urgent need to adopt this Ordinance to preserve and protect public health, safety, and welfare.

THE CITY COUNCIL OF THE CITY OF PALMDALE DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council of the City of Palmdale finds and declares that the Recitals set forth above are true and correct and are incorporated herein by this reference.

Ordinance No. 1587

SECTION 2. Section 5.52.030 (Definitions) of Chapter 5.52 (Solid Waste Handling and Recycle Services) of Title 5 (Business Licenses, Taxes, and Regulation) of the Palmdale Municipal code shall be amended to delete and replace the following definitions:
“Organic waste” means solid wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, green material, landscape and pruning waste, organic textiles and carpets, untreated lumber, untreated wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges.
“Recyclable Material” means materials source-separated by the generator for the purpose of sorting, processing and being returned to the economic mainstream for use the altered form for manufacture of new, reused or reconstituted products through available processes and markets. A listing of materials considered as Recyclable Material shall be provided by the Collector and may be revised from time to time by agreement of the City and the Collector. “Solid Waste” means and includes all discarded putrescible and non-putrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, rubbish, Construction and Demolition Debris, and any other discarded solid, semisolid, and liquid waste permitted to be disposed of at a Class III landfill and which are included within the definition of “Nonhazardous Solid Waste” set forth in 27 California Code of Regulations Section 20220(a).

In addition, for purposes of Article IX of this Chapter 5.52, Solid Waste does not include source separated Recyclable Material, source separated Organic Waste, construction and demolition debris, manure and/or salvageable materials if such materials have been source separated by the generator for the purpose of recycling, composting, processing or reuse.

SECTION 3. Section 5.52.030 (Definitions) of Chapter 5.52 (Solid Waste Handling and Recycle Services) of Title 5 (Business Licenses, Taxes, and Regulation) of the Palmdale Municipal code shall be amended to delete the following definition:
“Commercial waste generator” shall have the same meaning as described in Public Resources Code Section 42649.8, as it may be amended from time to time. As of the effective date of the ordinance codified in this section, “commercial waste generator” is defined as “business subject to subdivision (a) of [Public Resources Code] Section 42649.2.” For the avoidance of doubt, this definition is intended to apply to any business (including any multifamily dwelling) which the Department of Resources Recycling and Recovery (“CalRecycle”) has determined is subject to collection requirements for organic waste pursuant to Public Resources Code Section 42649.81 (a)(4) or any other authority.

Ordinance No. 1587

SECTION 4. Section 5.52.120 (Rates) of Chapter 5.52 (Solid Waste Handling and Recycle Services) of Title 5 (Business Licenses, Taxes, and Regulation) of the Palmdale Municipal code shall be amended as follows:

The City Council may, by resolution, establish or adjust the rates or fees charged by those collectors which are operating in the City pursuant to permits or nonexclusive or exclusive franchise agreements. No collector shall charge any rate or fee which is greater or less than the permissible maximum or minimum rate established by the City Council, unless otherwise authorized in this chapter. Every commercial/industrial business owner and residential householder or owner shall pay the rates established from time to time by the City Council for collection services rendered pursuant to this chapter in the manner set forth in PMC

5.52.130. The City Council shall establish such rate categories as may be appropriate for collection services provided by any commercial/industrial collector.

SECTION 5. Article IX (Commercial/Multifamily Residential Organic Waste Collection) of Chapter 5.52 (Solid Waste Handling and Recycle Services) of Title 5 (Business Licenses, Taxes, and Regulation) of the Palmdale Municipal code is deleted and shall be replaced and renamed as follows:

Article IX Mandatory Organic Waste Disposal Reduction

5.52.410. Definitions
The following definitions shall be utilized for purposes of implementation of this Article IX.

Capitalized terms used herein but not defined shall have the meaning ascribed to them in the SB 1383 Regulations. In the event of a conflict between a definition set forth in the SB 1383 Regulations and a definition set forth herein, the definition set forth in the SB 1383 Regulations shall control. In the event of a conflict between the definitions set forth in Section 5.52.030 and the definition set forth herein, the definition set forth herein shall control.
(a) “Blue Container” has the same meaning as in 14 California Code of Regulations Section 18982.2(a)(5) and shall be used for the purpose of storage and collection of Source Separated Recyclable Materials.
(b) “CalRecycle” means the California Department of Resources Recycling and Recovery, which is the Department designated with responsibility for developing, implementing, and enforcing SB 1383 Regulations on Jurisdictions (and others). digestion operations or other facility that recovers source separated Organic Waste accepts such material for processing and provides annual written notice thereof to the City.
(c) “Commercial Business” or “Commercial” means a firm, partnership, proprietorship, joint-stock company, corporation, or association, whether for-profit or nonprofit, Ordinance No. 1587

strip mall, industrial facility, or a multifamily residential dwelling with five or more units, or as otherwise defined in California Code of Regulations Section 18982(a)(6). A Multi-Family Residential Dwelling that consists of fewer than five units is not a Commercial Business for purposes of implementing this Article IX. (d) “Commercial Edible Food Generator” or “Edible Food Generator” means a person or entity that is responsible for the initial creation of Edible Food and includes Tier One and Tier Two Commercial Edible Food Generator as more specifically defined herein.
(e) “Community Composting” means any activity that composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed 100 cubic yards and 750 square feet, as specified in 14 California Code of Regulations Section 17855(a)(4); or, as otherwise defined by 14 California Code of Regulations Section 18982(a)(8).
(f) “Compliance Review” means a review of records by the City to determine compliance with this Article.
(g) “Compost” has the same meaning as in 14 California Code of Regulations Section 17896.2(a)(4), which stated, as of the effective date of this ordinance, that “Compost” means the product resulting from the controlled biological decomposition of organic Solid Wastes that are Source Separated from the municipal Solid Waste stream, or which are separated at a centralized facility. (h) “Container contamination” or “contaminated container” means a container, regardless of color, that contains prohibited container contaminants. (i) “C&D” means construction and demolition debris.
(j) “Designee” means an entity that the City contracts with or otherwise arranges to carry out any of the City’s responsibilities of this chapter as authorized in 14 California Code of Regulation Section 18981.2. A designee may be a government entity, a hauler, a private entity, or a combination of those entities. (k) “Edible food” means food intended for human consumption. For the purposes of this chapter, “edible food” is not solid waste if it is recovered and not discarded.

Nothing in this chapter or in 14 California Code of Regulations, Division 7, Chapter 12 requires or authorizes the recovery of edible food that does not meet the food safety requirements of the California Retail Food Code.

Ordinance No. 1587

(l) “Enforcement action” means an action by the City to address noncompliance with this chapter, including, but not limited to, issuing administrative citations, fines, penalties, or using other remedies.
(m) “Excluded waste” means hazardous substance, hazardous waste, infectious waste, designated waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that facility operator(s), which receive materials from the City and its generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that in the City’s, or its designee’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose the City, or its designee, to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in single-family or multifamily solid waste after implementation of programs for the safe collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. (n) “Food distributor” means a company that distributes food to entities, including, but not limited to, supermarkets and grocery stores.
(o) “Food facility” has the same meaning as in Section 113789 of the Health and Safety Code.
(p) “Food recovery” means actions to collect and distribute food for human consumption that otherwise would be disposed.
(q) “Food recovery organization” means an entity that engages in the collection or receipt of edible food from commercial edible food generators and distributes that edible food to the public for food recovery either directly or through other entities, including, but not limited to:

1. A food bank as defined in Section 113783 of the Health and Safety Code;

2. A nonprofit charitable organization as defined in Section 113841 of the Health and Safety code;

3. A nonprofit charitable temporary food facility as defined in Section 113842 of the Health and Safety Code; and

4. A food recovery organization is not a commercial edible food generator for the purposes of this chapter and implementation of 14 California Code of Regulations, Division 7, Chapter 12.

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(r) “Food recovery service” means a person or entity that collects and transports edible food from a commercial edible food generator to a food recovery organization or other entities for food recovery. A food recovery service is not a commercial edible food generator for the purposes of this chapter and implementation of 14 California Code of Regulations, Division 7, Chapter 12. (s) “Food service provider” means an entity primarily engaged in providing food services to institutional, governmental, commercial, or industrial locations of others based on contractual arrangements with these types of organizations. (t) “Gray/Black Container” has the same meaning as in 14 California Code of Regulations Section 18982.2(a)(28) and shall be used for the purpose of storage and collection of Gray/Black Container Waste.
(u) “Gray/Black Container Waste” means Solid Waste that is collected in a Gray and/or Black Container that is part of a three-container Organic Waste collection service that prohibits the placement of Organic Waste in the Gray/Black Container as specified in 14 California Code of Regulations Sections 18984.1(a) and (b), as defined in 14 California Code of Regulations Section 17402(a)(6.5). (v) “Green Container” has the same meaning as in 14 California Code of Regulations Section 18982.2(a)(29) and shall be used for the purpose of storage and collection of Source Separated Green Container Organic Waste.
(w) “Grocery store” means a store primarily engaged in the retail sale of canned food; dry goods; fresh fruits and vegetables; fresh meats, fish, and poultry; and any area that is not separately owned within the store where the food is prepared and served, including a bakery, deli, and meat and seafood departments. (x) “Hauler route” means the designated itinerary or sequence of stops for each segment of the City’s collection service area.
(y) “High diversion organic waste processing facility” means a facility that is in compliance with the reporting requirements of 14 California Code of Regulations Section 18815.5(d) and meets or exceeds an annual average mixed waste organic content recovery rate of 50% between January 1, 2022 and December 31, 2024, and 75% after January 1, 2025, as calculated pursuant to 14 California Code of Regulations Section 18815.5(e) for organic waste received from the “mixed waste organic collection stream” as defined in 14 California Code of Regulations Section 18982(a)(33).
(z) “Inspection” means a site visit where the City or its designee reviews records, containers, and an entity’s collection, handling, recycling, or landfill disposal of organic waste or edible food handling to determine if the entity is complying with requirements set forth in this Article.

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(aa) “Large event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event.
(bb) “Large venue” means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of this chapter and implementation of 14 California Code of Regulations, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, arena, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of this chapter and implementation of 14 California Code of Regulations, Division 7, Chapter 12, a site under common ownership or control that includes more than one large venue that is contiguous with other large venues in the site, is a single large venue. (cc) “Local education agency” means a school district, charter school, or county office of education that is not subject to the control of city or county regulations related to solid waste.
(dd) “Multi-family Residential Dwelling” or “Multi-Family” means residential premises with 5 or more dwelling units. Multi-family does not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses. (ee) “MWELO” refers to the Model Water Efficient Landscape Ordinance (MWELO), 23 California Code of Regulations, Division 2, Chapter 2.7. (ff) “Non-compostable paper” includes, but is not limited to, paper that is coated in a plastic material that will not break down in the composting process. (gg) “Non-organic recyclables” means non-putrescible and non-hazardous recyclable wastes, including, but not limited to, bottles, cans, metals, plastics and glass. (hh) “Organic Waste Generator” means a person or entity that is responsible for the initial creation of Organic Waste, including those entities that serve food or beverages on its premises for immediate consumption.
(ii) “Prohibited Container Contaminants” means the following: (i) discarded materials placed in the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for the City’s Blue Container; (ii) discarded materials placed in the Green Container that are not identified as acceptable Source Separated Green Container Organic Waste for the City’s Green Container; Ordinance No. 1587

(iii) discarded materials placed in the Gray/Black Container that are acceptable Source Separated Recyclable Materials and/or Source Separate Green Container Organic Wastes to be placed in Cities Green Container and/or Blue Container; and (iv) any material prohibited to be placed in any container pursuant to any other section of this Municipal Code.
(jj) “Remote monitoring” means the use of the Internet of Things (IoT) and/or wireless electronic devices to visualize the contents of blue containers, green containers, and gray containers for purposes of identifying the quantity of materials in containers (level of fill) and/or presence of prohibited container contaminants. (kk) “Route review” means a visual Inspection of containers along a hauler route for the purpose of determining container contamination, and may include mechanical inspection methods such as the use of cameras.
(ll) “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code. (mm) “Single-family” means of, from, or pertaining to any residential premises with fewer than five units.
(nn) “Source separating” or “source separated” means the process of removing or separating Recyclable Materials or Organic Waste from Solid Waste at the place of generation, prior to collection, and placing them into separate containers that are separately designated for such materials for the purpose of recycling, composting, processing or reuse.
(oo) “Source Separated Green Container Organic Waste” (or SSGCOW) means Source Separated Organic Waste that can be placed in a Green Container that is specifically intended for the separate Collection of Organic Waste by the Generator, excluding Recyclable Material, carpets, paper products, printing and writing paper, and textiles. SSGCOW is a subset of Organic Waste. (pp) “Source separated recyclable materials” means source separated non-organic recyclables and source separated blue container organic waste. (qq) “Supermarket” means a full-line, self-service retail store with gross annual sales of $2,000,000.00, or more, which sells a line of dry grocery, canned goods, or nonfood items and some perishable items.
(rr) “Tier One Commercial Food Generator” shall have the meaning set forth in 14 California Code of Regulations Sections 189852(a)(73).

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(ss) “Tier Two Commercial Food Generator” shall have the meaning set forth in 14 California Code of Regulations Sections 189852(a)(74)
(tt) “Wholesale food vendor” means a business or establishment engaged in the merchant wholesale distribution of food, where food (including fruits and vegetables) is received, shipped, stored, prepared for distribution to a retailer, warehouse, distributor, or other destination.

5.25.420 Requirements for Single-Family Generators. Single-family organic waste generators shall:

A. Subscribe to the City’s three-container organic waste collection services. The City shall have the right to review the number, size, and location of a generator’s containers to evaluate adequacy of capacity provided for each type of collection service for proper separation of materials and containment of materials; and the generator shall adjust its service level for its collection services as requested by the City.

B. Participate in and comply with the City’s three-container system for source separated recyclable materials, source separated organic materials, and solid waste collection services. Generators shall place source separated organic waste, including food waste, in the designated container; source separated recyclable materials in the designated container; and solid waste in the designated container. Generators shall not place materials designated as solid waste into the organic waste container or source separated recyclable materials container.

Notwithstanding the above, the City is not required to replace functional containers, including containers purchased prior to January 1, 2022, that do not comply with the color requirements of this chapter and the regulations, prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first. Labels will be placed by the franchise hauler on the containers indicating the primary materials accepted and the primary materials prohibited in the containers. Until compliant colored containers are provided, (blue container, green container, and gray container), single-family waste generators shall comply with the container label requirements.

C. Nothing in this section prohibits a generator from preventing or reducing waste generation, managing organic waste on site, and/or using a community composting site pursuant to 14 California Code of Regulations, Section 18984.9(c).

5.52.430 Requirements for Commercial Businesses
Commercial businesses, which includes multifamily residential dwellings shall:

A. Subscribe to the City’s three-container organic waste collection services. The City shall have the right to review the number, size, and location of a generator’s containers Ordinance No. 1587

and frequency of collection to evaluate adequacy of capacity provided for each type of collection service for proper separation of materials and containment of materials; and commercial businesses shall adjust their service level for their collection services as requested by the City.

B. Participate in and comply with the City’s three-container system for source separated recyclable materials, source separated organic materials, and solid waste collection services. Generators shall place source separated organic waste, including food waste, in the designated container; source separated recyclable materials in the designated container; and solid waste in the designated container. Generators shall not place materials designated as solid waste into the organic waste container or source separated recyclable materials container.

Notwithstanding the above, the City is not required to replace functional containers, including containers purchased prior to January 1, 2022, that do not comply with the color requirements of this chapter and the regulations, prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first. Labels will be placed by the franchise hauler on the containers indicating the primary materials accepted and the primary materials prohibited in the containers. Until compliant colored containers are provided, (blue container, green container, and gray container), commercial waste generators shall comply with the container label requirements.

C. Supply and allow access to adequate number, size and location of collection containers with sufficient labels or colors (conforming with Sections 8.30.030(d)(1) and

8.30.030 (d)(2) below) for employees, contractors, tenants, and customers, consistent with the City’s blue container, green container, and gray container collection service or, if self-hauling, per the commercial businesses’ instructions to support its compliance with its self-haul program.

D. Excluding multifamily residential dwellings, provide containers for the collection of source separated green container organic waste and source separated recyclable materials in all indoor and outdoor areas where disposal containers are provided for customers, for materials generated by that business. Such containers do not need to be provided in restrooms. If a commercial business does not generate any of the materials that would be collected in one type of container, then the business does not have to provide that particular container in all areas where disposal containers are provided for customers. Pursuant to 14 California Code of Regulations Section 18984.9(b), the containers provided by the business shall have either:

1. A body or lid that conforms with the container colors provided through the collection service provided by the City, with either lids conforming to the color requirements or bodies conforming to the color requirements or both lids and bodies conforming to color requirements. A commercial business is not required to replace functional containers, including containers purchased prior to January 1, 2022, that do Ordinance No. 1587

not comply with the requirements of the subsection prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first.

2. Container labels that include language or graphic images, or both, indicating the primary material accepted and the primary materials prohibited in that container, or containers with imprinted text or graphic images that indicate the primary materials accepted and primary materials prohibited in the container. Pursuant 14 California Code of Regulations Section 18984.8, the container labels are required on new containers commencing January 1, 2022.

E. Multifamily residential dwellings are not required to comply with container placement requirements or labeling requirements pursuant to 14 California Code of Regulations Section 18984.9(b).

F. To the extent practical through education, training, inspection, and/or other measures, excluding multifamily residential dwellings, prohibit employees from placing materials in a container not designated for those materials per the City’s blue container, green container, and gray container collection service or, if self-hauling, per the commercial businesses’ instructions to support its compliance with its self-haul program, in accordance with Section 5.52.320 of this Article.

G. Excluding multifamily residential dwellings, periodically inspect blue containers, green containers, and gray containers for contamination and inform employees if containers are contaminated and of the requirements to keep contaminants out of those containers pursuant to 14 California Code of Regulations, Section 18984.9(b)(3).

H. Annually provide information to employees, contractors, tenants, and customers about organic waste recovery requirements and about proper sorting of source separated green container organic waste and source separated recyclable materials.

I. Provide education information before or within 14 days of occupation of the premises to new tenants that describes requirements to keep source separated organic waste which includes food waste, and source separated recyclable materials separate from solid waste container (when applicable) and the location of containers and the rules governing their use at each property.

J. Provide or arrange access for the City or its agent to their properties during all inspections conducted in accordance with this chapter to confirm compliance with the requirements of this chapter.

K. If implemented, accommodate and cooperate with the City’s remote monitoring program for inspection of the contents of containers for prohibited container contaminants, to evaluate a generator’s compliance with this chapter.

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L. Nothing in this section prohibits a generator from preventing or reducing waste generation, managing organic waste on site, or using a community composting site pursuant to 14 California Code of Regulations Section 18984.9(c).

M. Commercial businesses that are tier one or tier two commercial edible food generators shall comply with food recovery requirements of this chapter.

5.25.440 WAIVERS FOR GENERATORS
A. De Minimis Waivers . The City may, at its discretion, waive a commercial business’ requirement (including multifamily residential dwellings) to comply with some or all of the organic waste requirements of this chapter if the commercial business:

1. Submits an application specifying the services that they are requesting a waiver from.

2. Provides documentation that either:
a. The commercial business’ total solid waste collection service is two cubic yards or more per week and organic waste subject to collection in a blue container or green container comprises less than 20 gallons per week per applicable container of the business’ total waste; or
b. The commercial business’ total solid waste collection service is less than two cubic yards per week and organic waste subject to collection in a blue container or green container comprises less than 10 gallons per week per applicable container of the business’ total waste; and

3. Notifies the City if circumstances change such that commercial business’ organic waste exceeds the threshold required for waiver, in which case waiver will be rescinded; and

4. Provides written verification of eligibility for de minimis waiver every five years, if the City has approved de minimis waiver.

B. Physical Space Waivers . The City may, at its discretion, waive a commercial business’ or property owner’s obligations (including multifamily residential dwellings) to comply with some or all of the recyclable materials and/or organic waste collection service requirements if the city has evidence from its own staff, a hauler, licensed architect, or licensed engineer demonstrating that the premises lack adequate space for the collection containers required for compliance with the organic waste collection requirements of this chapter.

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A commercial business or property owner may request a physical space waiver through the following process:

1. Submit an application form specifying the type(s) of collection services for which they are requesting a compliance waiver.

2. Provide documentation that the premises lack adequate space for blue containers and/or green containers including documentation from its hauler, licensed architect, or licensed engineer.

3. Provide written verification to the City that it is still eligible for physical space waiver every five years, if the City has approved application for a physical space waiver.

C. Collection Frequency Waiver. The City, at its discretion and in accordance with 14 California Code of Regulations Section 18984.11(a)(3), may allow the owner or tenant of any residence, premises, business establishment or industry that subscribes to the City’s three-container organic waste collection service to arrange for the collection of their blue container, gray container, or both once every 14 days, rather than once a week.

5.25.450 REQUIREMENTS FOR COMMERCIAL EDIBLE FOOD GENERATORS A. Tier one commercial edible food generators must comply with the requirements of this section commencing January 1, 2022, and tier two commercial edible food generators must comply commencing January 1, 2024, pursuant to 14 California Code of Regulations Section 18991.3.

B. Large venue or large event operators not providing food services, but allowing for food to be provided by others, shall require food facilities operating at the large venue or large event to comply with the requirements of this section, commencing January 1, 2024.

C. Commercial edible food generators shall comply with the following requirements:

1. Arrange to recover the maximum amount of edible food that would otherwise be disposed.

2. Contract with, or enter into a written agreement with, food recovery organizations or food recovery services for: (a) the collection of edible food for food recovery; or (b) acceptance of the edible food that the commercial edible food generator self-hauls to the food recovery organization for food recovery.

3. Shall not intentionally spoil edible food that is capable of being recovered by a food recovery organization or a food recovery service.

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4. Allow the City’s designated enforcement entity or designated third party enforcement entity to access the premises and review records pursuant to 14 California Code of Regulations Section 18991.4.

5. Keep records that include the following information, or as otherwise specified in 14 California Code of Regulations Section 18991.4:
a. A list of each food recovery service or organization that collects or receives its edible food pursuant to a contract or written agreement established under 14 California Code of Regulations Section 18991.3(b).
b. A copy of all contracts or written agreements established under 14 California Code of Regulations, Section 18991.3(b).
c. A record of the following information for each of those food recovery services or food recovery organizations:
i. The name, address and contact information of the food recovery service or food recovery organization.
ii. The types of food that will be collected by or self-hauled to the food recovery service or food recovery organization.
iii. The established frequency that food will be collected or self- hauled. iv. The quantity of food, measured in pounds recovered per month, collected or self- hauled to a food recovery service or food recovery organization for food recovery.

6. Commencing no later than February 1, 2022 for tier one commercial edible food generators and February 1, 2024 for tier two commercial edible food generators, commercial edible food generators shall provide a quarterly food recovery report to the City that includes the information required in 14 California Code of Regulations Section 18991.4 “Record Keeping Requirements for Commercial Edible Food Generators.” D. Nothing in this section shall be construed to limit or conflict with the protections provided by the California Good Samaritan Food Donation Act of 2017, the Federal Good Samaritan Act, or share table and school food donation guidance pursuant to Senate Bill 557 of 2017.

5.25.460 REQUIREMENTS FOR FOOD RECOVERY ORGANIZATIONS AND

SERVICES
A. Food recovery services collecting or receiving edible food directly from commercial edible food generators, via a contract or written agreement established under Ordinance No. 1587

14 California Code of Regulations Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 California Code of Regulations Section 18991.5(a)(1):

1. The name, address, and contact information for each commercial edible food generator from which the service collects edible food.

2. The quantity in pounds of edible food collected from each commercial edible food generator per month.

3. The quantity in pounds of edible food transported to each food recovery organization per month.

4. The name, address, and contact information for each food recovery organization that the food recovery service transports edible food to for food recovery.

B. Food recovery organizations collecting or receiving edible food directly from commercial edible food generators, via a contract or written agreement established under 14 California Code of Regulations Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 California Code of Regulations Section 18991.5(a)(2):

1. The name, address, and contact information for each commercial edible food generator from which the organization receives edible food.

2. The quantity in pounds of edible food received from each commercial edible food generator per month.

3. The name, address, and contact information for each food recovery service that the organization receives edible food from for food recovery.

C. Commencing January 1, 2022, food recovery organizations and food recovery services that have their primary address physically located in the City and contract with or have written agreements with one or more commercial edible food generators pursuant to 14 California Code of Regulations Section 18991.3(b) shall report to the City the total pounds of edible food recovered in the previous calendar year from the tier one and tier two commercial edible food generators they have established a contract or written agreement with pursuant to 14 California Code of Regulations Section 18991.3(b), as applicable.

D. In order to support edible food recovery capacity planning assessments or other studies conducted by the City that provides solid waste collection services or its designated entity, food recovery services and food recovery organizations operating in the City shall provide information and consultation to the City, upon request, regarding existing, or proposed new or expanded, food recovery capacity that could be accessed Ordinance No. 1587

by the City and its commercial edible food generators. A food recovery service or food recovery organization contacted by the City shall respond to such request for information within 60 days, unless a shorter timeframe is otherwise specified by the City.

E. Commencing no later than January 1, 2022, food recovery services and organization shall provide a quarterly report to the City which includes the information required in 14 California Code of Regulations, Section 18991.5 “Food Recovery Services and Organizations.”

5.25.470 REQUIREMENTS FOR COLLECTORS AND FACILITY OPERATORS AND

COMMUNITY COMPOSTING OPERATIONS
A. Requirements for Collectors.

1. The collectors providing residential, commercial, or industrial organic waste collection services to generators within the City’s boundaries shall meet the following requirements and standards as a condition of approval of a contract, agreement, or other authorization with the City to collect organic waste:
a. Through written notice to the City annually on or before January 1st, identify the facilities to which they will transport organic waste including the facilities for source separated recyclable materials and source separated green container organic waste, as applicable.
b. Transport source separated recyclable materials and source separated green container organic waste to a facility, operation, activity, or property that recovers organic waste as defined in 14 California Code of Regulations, Division 7, Chapter 12, Article 2. c. Obtain approval from the city to haul organic waste, unless it is transporting source separated organic waste to a community composting site or lawfully transporting C&D in a manner that complies with 14 California Code of Regulations. d. All requirements of 14 California Code of Regulations Section 18989.1 and the Palmdale Municipal Code.
e. The collector shall comply with education, equipment, signage, container labeling, container color, contamination monitoring, reporting, and other requirements contained within its franchise agreement, as may be amended from time to time. f. Notwithstanding any of the foregoing, nothing in this chapter shall restrict or otherwise prohibit the collector from meeting its compliance requirements by any alternative methods or procedures, provided it complies with SB 1383, the SB 1383 Regulations, and/or any other applicable law, as may be amended from time to time.

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B. Requirements for Facility Operators and Community Composting Operations.

1. Owners of facilities, operations, and activities that recover organic waste, including, but not limited to, compost facilities, in-vessel digestion facilities, and publicly owned treatment works shall, upon the City’s request, provide information regarding available and potential new or expanded capacity at their facilities, operations, and activities, including information about throughput and permitted capacity necessary for planning purposes. Entities contacted by the City shall respond within 60 days.

2. Community composting operators, upon the City’s request, shall provide information to the City to support organic waste capacity planning, including, but not limited to, an estimate of the amount of organic waste anticipated to be handled at the community composting operation. Entities contacted by the City shall respond within 60 days.

5.25.480 SELF HAULER REQUIREMENTS
A. Self-Haulers shall source separate all recyclable materials and Organic Waste (materials that City otherwise requires generators to separate for collection in the City’s organics and recycling collection program) generated on-site from Solid Waste in a manner consistent with 14 CCR Sections 18984.1 and 18984.2, or shall haul Organic Waste to a High Diversion Organic Waste Processing Facility as specified in 14 CCR Section 18984.3.

B. Self-Haulers shall haul their Source Separated Recyclable Materials to a facility that recovers those materials; and haul their Source Separated Green Container Organic Waste to a Solid Waste facility, operation, activity, or property that processes or recovers Source Separated Organic Waste. Alternatively, Self- Haulers may haul Organic Waste to a High Diversion Organic Waste Processing Facility.

C. Self-Haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall keep a record of the amount of Organic Waste delivered to each Solid Waste facility, operation, activity, or property that processes or recovers Organic Waste; this record shall be subject to Inspection by the City. The records shall include the following information:
(1) Delivery receipts and weight tickets from the entity accepting the waste. (2) The amount of material in cubic yards or tons transported by the generator to each entity.
(3) If the material is transported to an entity that does not have scales on-site, or employs scales incapable of weighing the Self-Hauler’s vehicle in a Ordinance No. 1587

manner that allows it to determine the weight of materials received, the Self- Hauler is not required to record the weight of material but shall keep a record of the entities that received the Organic Waste.

5.25.490 PROCUREMENT REQUIREMENTS FOR CITY DEPARTMENTS, DIRECT

SERVICE PROVIDERS, AND VENDORS
Procurement Requirements for City departments, direct service providers, and vendors shall be as set forth in Section 3.02.165 of this Municipal Code and all other applicable City procurement policies.

5.25.490 COMPLIANCE WITH CALGREEN RECYCLING REQUIREMENTS Persons applying for a permit from the City for new construction and building additions and alternations shall also comply with the requirements of Chapter 15.30 (CalGreen Recycling Requirements) of Title 15 (Building and Construction) of this Code.

5.25.500 MODEL WATER EFFICIENT LANDSCAPE ORDINANCE REQUIREMENTS As applicable, all persons and/or entities subject to the MWELO shall comply with Sections 492.6(a)(3)(B), (C), (D), and (G), as amended September 15, 2015. The MWELO compliance items listed herein are not an inclusive list of MWELO requirements; therefore, property owners or their building or landscape designers that meet the threshold for MWELO compliance outlined herein shall consult the full MWELO for all requirements.

If after the adoption of this chapter, the California Department of Water Resources, or its successor agency, amends 23 California Code of Regulations Sections 492.6(a)(3)(B), (C), (D), and (G) in a manner that requires the City to incorporate the requirements of an updated MWELO in a local ordinance, and the amended requirements are more stringent than those required in this section, the revised requirements shall be enforced.

5.25.510 INSPECTIONS AND INVESTIGATIONS BY THE CITY
A. City representatives and/or its designated entity, including designees, are authorized to conduct inspections and investigations, at random or otherwise, of any collection container, collection vehicle loads, or transfer, processing, or disposal facility for materials collected from generators, or source separated materials to confirm compliance with this chapter, subject to applicable laws. This section does not allow the City to enter the interior of a private residential property for inspection. For the purposes of inspecting commercial business containers for compliance for this chapter, the City may conduct container Inspections for prohibited container contaminants using remote Ordinance No. 1587

monitoring and commercial businesses shall accommodate and cooperate with the remote monitoring where applicable.

B. Regulated entity shall provide or arrange for access during all inspections (with the exception of residential property interiors) and shall cooperate with the City’s employees or its designated entity/designee during such inspections and investigations.

Such inspections and investigations may include confirmation of proper placement of materials in containers, edible food recovery activities, records, or any other requirement of this chapter described herein. Failure to provide or arrange for: (1) access to an entity’s premises; or (2) access to records for any inspection or investigation is a violation of this Article and may result in penalties described.

C. Any records obtained by a City during its inspections, remote monitoring, and other reviews shall be subject to the requirements and applicable disclosure exemptions of the Public Records Act as set forth in Government Code Section 6250 et seq.

D. City representatives, its designated entity, and/or designee are authorized to conduct any inspections, remote monitoring, or other investigations as reasonably necessary to further the goals of this chapter, subject to applicable laws.

E. The City shall receive written complaints from persons regarding an entity that may be potentially noncompliant with SB 1383 Regulations, including receipt of anonymous complaints.

5.25.520 ENFORCEMENT
A. Violation of any provision of this chapter shall constitute grounds for issuance of a notice of violation and assessment of a fine by a City Enforcement Official or representative. Enforcement actions under this chapter are issuance of an administrative citation and assessment of a fine. The City’s procedures on imposition of administrative fines are hereby incorporated in their entirety, as modified from time to time, and shall govern the imposition, enforcement, collection, and review of administrative citations issued to enforce this chapter and any rule or regulation adopted pursuant to this chapter, except as otherwise indicated in this chapter.

B. Other remedies allowed by law may be used, including civil action or prosecution as misdemeanor or infraction. The City may pursue civil actions in the California courts to seek recovery of unpaid administrative citations. The City may choose to delay court action until such time as a sufficiently large number of violations, or cumulative size of violations exist such that court action is a reasonable use of City staff and resources.

C. Enforcement pursuant to this chapter may be undertaken by the Enforcement Official, which may be the City Manager or their designated entity, legal counsel, or combination thereof.

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D. Process for Enforcement.

1. Enforcement Officials and/or their designee will monitor compliance with this chapter randomly and through compliance reviews, route reviews, investigation of complaints, and an inspection program, which may include remote monitoring.

2. The City may issue an official notification to notify regulated entities of its obligations under this chapter.

3. For incidences of prohibited container contaminants found in containers, the City will issue a notice of violation to any generator found to have prohibited container contaminants in a container. Such notice will be provided via a cart tag or other communication immediately upon identification of the prohibited container contaminants.

If the City or its authorized designee observes prohibited container contaminants in a generator’s containers on three consecutive occasions within a six-month time period, the City may assess contamination processing fees or contamination penalties on the generator.

4. With the exception of violations of generator contamination of container contents, the City shall issue a notice of violation requiring compliance within 60 days of issuance of the notice.

5. Absent compliance by the respondent within the deadline set forth in the notice of violation, the City shall commence an action to impose penalties, via an administrative citation and fine, pursuant to Chapter 1.20 of this Code.

Notices shall be sent to “owner” at the official address of the owner maintained by the tax collector for the City or if no such address is available, to the owner at the address of the dwelling or commercial property or to the party responsible for paying for the collection services, depending upon available information.

E. Penalty Amounts for Types of Violations.

1. For a first violation, the amount of the penalty shall be $100.00 per violation.

2. For a second violation, the amount of the penalty shall be $200.00 per violation.

3. For a third or subsequent violation, the amount of the penalty shall be $500.00 per violation.

F. Compliance Deadline Extension Considerations.

The City may extend the compliance deadlines set forth in a notice of violation issued if it finds that there are extenuating circumstances beyond the control of the respondent that make compliance within the deadlines impracticable, including the following:

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1. Acts of God such as earthquakes, wildfires, flooding, and other emergencies or natural disasters;

2. Delays in obtaining discretionary permits or other government agency approvals; or

3. Deficiencies in organic waste recycling infrastructure or edible food recovery capacity and the City are under a corrective action plan with CalRecycle pursuant to 14 California Code of Regulations Section 18996.2 due to those deficiencies.

G. Appeals Process . Persons receiving an administrative citation containing a penalty for an uncorrected violation may request a hearing to appeal the citation. A hearing will be held only if it is requested within the time prescribed and consistent with the City’s procedures for appeals of administrative citations. Evidence may be presented at the hearing. The City will appoint a hearing officer who shall conduct the hearing and issue a final written order.

H. Education Period for Noncompliance. Beginning January 1, 2022 and through December 31, 2023, the City will conduct inspections, remote monitoring, route reviews or waste evaluations, and compliance reviews, depending upon the type of regulated entity, to determine compliance, and if the city determines that organic waste generator, hauler, tier one commercial edible food generator, food recovery organization, food recovery service, or other entity is not in compliance, it shall provide educational materials to the entity describing its obligations under this chapter and a notice that compliance is required by January 1, 2022, and that violations may be subject to administrative civil penalties starting on January 1, 2024.

I. Civil Penalties for Noncompliance. Beginning January 1, 2022, or an extended date set by CalRecycle if the City determines that an organic waste generator, hauler, tier one or tier two commercial edible food generator, hauler, food recovery organization, food recovery service, or other entity is not in compliance with this chapter, it shall document the noncompliance or violation, issue a notice of violation, and take enforcement action pursuant to this chapter and state law, as needed.

SECTION 6. Chapter 3.08 (Purchasing) of Title 3 (Revenue and Finance) of the Palmdale Municipal code shall be amended to insert Section 3.08.230 (SB1383 Procurement Requirements) as follows:

3.08.230 SB1383 Procurement Requirements
A. Any direct service provider of the City’s Community Choice Aggregation program (CCA) or landscaping, maintenance, renovation, and construction shall comply with the City’s SB 1383 Procurement requirements.

Ordinance No. 1587

1. Use compost, mulch and eligible materials, as practicable, produced from recovered organic waste, for all landscaping renovations, construction, or maintenance performed for the City, whenever available, and capable of meeting quality standards and criteria specified. Renewable gas used for fuel for transportation, electricity, or heating applications. Electricity from biomass conversion. SB 1383 eligible compost, mulch, renewable gas, and electricity used to comply with procurement requirements shall comply with 14 California Code of Regulations, Division 7, Chapter 12, Article 12 and must meet or exceed the standards specified in 14 California Code of Regulations Section 18993.1. Mulch used for land application shall comply with 14 California Code of Regulations, Division 7, Chapter 12, Article 12 and must meet or exceed the standards specified in 14 California Code of Regulations Sections 17852(a)(24.5)(A)(1) through (3).

2. Keep and provide records of procurement of recovered organic waste products (either through purchase or acquisition) to City, upon completion of projects. Information to be provided shall include:
a. General description of how and where the product was used and if applicable, applied;
b. Source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the recovered organic waste products were procured;
c. Type of product;
d. Quantity of each product; and
e. Invoice or other record demonstrating purchase or procurement.

B. All vendors providing paper products and printing and writing paper shall:

1. If fitness and quality are equal, provide recycled-content paper products and recycled-content printing and writing paper that consists of at least 30%, by fiber weight, postconsumer fiber instead of non-recycled products whenever recycled paper products and printing and writing paper are available at the same or lesser total cost than non- recycled items.

2. Provide paper products and printing and writing paper that meet Federal Trade Commission recyclability standard as defined in 16 Code of Federal Regulations (CFR) Section 260.12.

3. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the Paper products and printing and writing paper offered or sold to the City. This certification requirement may be waived if the percentage of Ordinance No. 1587

postconsumer material in the paper products, printing and writing paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.

4. Certify in writing, on invoices or receipts provided, that the paper products and printing and writing paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section 260.12.

5. Provide records to the City or its designee of all paper products and printing and writing paper purchases within 30 days of the purchase (both recycled-content and non- recycled content, if any is purchased) made by any division or department or employee of the City. Records shall include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in Sections 3.12.165(b)(3) and 3.12.165(b)(4) of this title for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-recycled content paper products or printing and writing papers are provided, include a description of why recycled-content paper products or printing and writing papers were not provided.

SECTION 7. Title 15 (Buildings and Construction) of the Palmdale Municipal code shall be amended to create Chapter 15.30 (CalGreen Recycling Requirements) as follows:

15.30 CALGREEN RECYCLING REQUIREMENTS
A. For projects covered by CALGreen, the applicants must, as a condition of the City’s permit approval, comply with the following:

1. Where five or more multifamily dwelling units are constructed on a building site, provide readily accessible areas that serve occupants of all buildings on the site and are identified for the storage and collection of blue container and green container materials, consistent with the three-container collection program offered by the City, or comply with provision of adequate space for recycling for multifamily and commercial premises pursuant to Sections 4.408.1, 4.410.2, 5.408.1, and 5.410.1 of the California Green Building Standards Code, 24 California Code of Regulations, Part 11 as amended, provided that the amended requirements are more stringent than the CALGreen requirements for adequate recycling space effective January 1, 2020.

2. New commercial construction or additions resulting in more than 30% of the floor area shall provide readily accessible areas identified for the storage and collection of blue container and green container materials, consistent with the three-container collection program offered by the City, or shall comply with provision of adequate space for recycling for multifamily and commercial premises pursuant to Sections 4.408.1, 4.410.2, 5.408.1, and 5.410.1 of the California Green Building Standards Code, 24 CCR, Part 11 as Ordinance No. 1587

amended, provided amended requirements are more stringent than the CALGreen requirements for adequate recycling space effective January 1, 2020.

3. Comply with CALGreen requirements and applicable law related to management of construction and demolition debris (C&D), including diversion of organic waste in C&D from disposal. Comply with City’s municipal code, and all written and published City policies and/or administrative guidelines regarding the collection, recycling, diversion, tracking, and/or reporting of C&D.

B. Persons applying for a permit from the City for new construction and building additions and alternations shall comply with all required components of CALGreen, as amended, if its project is covered by the scope of CALGreen, as amended, July 1, 2019 and effective January 1, 2020, including:

1. Section 4.410.2 Recycling by Occupants Residential and Section 5.410.1 Recycling by Occupants Non-residential.

2. For organic waste commingled with construction and demolition debris, Section

4.408.1 Construction Waste Management Residential and Section 5.408.1 Construction Waste Management non-residential.

3. If, after the adoption of this chapter, Sections 4.408.1, 4.410.2, 5.408.1, and

5.410.1 of CALGreen are amended in a manner that requires the City to incorporate the requirements in an updated local ordinance, and the amended requirements are more stringent than those required in this Section, the revised requirements of CALGreen Sections 4.408.1, 4.410.2, 5.408.1, and 5.410.1 shall be enforced.

SECTION 8 . Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one (1) or more subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional, or invalid, or ineffective, provided the basic purposes of this Ordinance and the benefits to the City and the public are not substantially impaired.

SECTION 9. The City Clerk shall certify to the adoption of this ordinance and shall cause this ordinance to be published or posted as required by law.

Ordinance No. 1587

PASSED, APPROVED and ADOPTED this 4th day of May, 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 Ordinance was duly introduced, passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 4th day of May, 2022 effective on the 3rd day of June, 2022 by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Shanae S. Smith, City Clerk
City Council Staff Report
DATE: MAY 4, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2022 -046, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE AUTHORIZING THE

INTERIM CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE

AND EXECUTE AN ORGANIC FEEDSTOCK DISPOSAL

AGREEMENT WITH HZI LANCASTER, LLC
ISSUE
Adopt Resolution No. CC 2022 -046, a Resolution of the City Council of the City of Palmdale authorizing the Interim City Manager and City Attorney to negotiate and execute an Organic Feedstock Disposal Agreement with HZI Lancaster, LLC.

RECOMMENDATION
Pending positive results of an organics feasibility study, adopt Resolution No. CC 2022- 046, authorizing the Interim City Manager and City Attorney to negotiate and execute an Organic Feedstock Disposal Agreement with HZI Lancaster, LLC. Agreement No. A- 7898, which would direct the City of Palmdale’s organic waste to the proposed facility for processing.

BACKGROUND
The State has committed to reducing 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. SB 1383 was adopted in 2016 and regulations were approved in November 2020. Regulations took effect January 1, 2022.

WM, formerly know as Waste Management, provides solid waste collection s pursuant to the Agreement between City of Palmdale and Waste Management of California, Inc., DBA Waste Management of Antelope Valley for Integrated Solid Waste Management Services. According to Section 2.10.1(A), the City may direct WM to “modify the manner in which it performs existing services.” Therefore, if the City sees fit and it’s in the public’s best interest, it may direct WM to adjust how it provides services.

Report to Mayor and City Council
Re: Approval of Resolution No. CC 2022-046
Date of Meeting: May 4, 2022

The City is currently negotiating with WM the full processing of residential organics (going beyond green waste to include non-edible food waste and other organic waste items) and an enhanced commercial organics program, as required by the State of California. Currently, WM has arrangements with Kochergen Farms in Avenal, California to compost the City’s residential green waste and commercial organic waste and will continue to use the facility for all of the City’s organic waste once the newly negotiated program is in effect. However, it takes approximately three hours, one way, to transport the City’s organic materials from the City of Palmdale to Kochergen Farms.

The distance materials are transported, impacts to air quality, and the lack of guaranteed airspace (a guarantee that the City’s materials will be processed and that the City’s organics will not be replaced by the next highest bidder) does not make this option sustainable for the long-term processing of the City’s organic waste.

Another acceptable form of treating non-edible organic waste is to use the process of anaerobic digestion, which uses biological processes in an oxygen depleted environment to decompose organic matter, with the aim to produce Renewable Natural Gas (RNG) as an end product. Hitachi Zosen INOVA (Hitachi) has a proven record of building anaerobic digestion facilities. Hitachi has built one facility in operation in San Luis Obispo, California; another in the process of coming online in Escondido, California; and they have several other facilities in Europe.

Hitachi has obtained the permits necessary to build a facility at the Lancaster Landfill, which is in Unincorporated Los Angeles County north of Lancaster. In order to move forward, Hitachi is requesting the City sign a 30-year Organic Feedstock Disposal Agreement. The Agreement will provide the City with guaranteed airspace through an acceptable processing method for the City’s organics. Additionally, the 30-year agreement does not preclude the City from putting its trash collection services agreement out to bid when it desires; however, any new Franchise Agreement will need to direct all organics collected to the Hitachi facility.

DISCUSSION
Staff is currently in the process of contracting for a third-party consultant to prepare an organics feasibility assessment of the proposed use of the Hitachi facility. However, since timing is of the essence, staff is bringing forth Resolution No. CC 2022-046 which, pending positive results from the organics feasibility study, will authorize the Interim City Manager and the City Attorney to continue negotiating, finalize, and execute the Organic Feedstock Disposal Agreement between City of Palmdale, California, and HZI Lancaster, LLC (Agreement No. A-7898).

Once authorized through the resolution, staff will first work with the City’s consultant and their feasibility study. The study will evaluate the cost of processing the City’s organics, anticipated market changes that could affect services, what long-term solutions are available to the City, etc. If the result of the study is favorable, staff will work with Hitachi to negotiate a final agreement.

Report to Mayor and City Council
Re: Approval of Resolution No. CC 2022-046
Date of Meeting: May 4, 2022

Additional aspects to be negotiated in the agreement include, but aren’t limited to:
 Receiving five percent (5%) of the RNG produced by the facility, with the potential to receive more at a favorable rate if the City so chooses to do so.  Receiving five percent (5%) of the Hydrogen produced by the facility, with the potential to receive more at a favorable rate if the City so chooses to do so.  A Hydrogen fueled box truck for SAVES in addition to the five (5) Hydrogen fueled Toyota Mirai vehicles outlined in the agreement.

The City will be using the RNG credit to offset the City’s natural gas usage. In 2021, the City used 251,086 therms of natural gas, at a cost of $241,801. Although the current pool boiler replacement project for DryTown, Marie Kerr, and McAdam Parks will reduce the City’s natural gas usage significantly, the usage of the pools could potentially increase as well. Therefore, the City could realize monetary savings along with greenhouse gas reductions with the use of the RNG credits.

Additionally, staff will explore how the City’s Community Choice Aggregation (CCA) program, Energy for Palmdale’s Independent Choice (EPIC) could potentially benefit from the RNG credits instead. This option will be used instead if the RNG credits could be transferred over and count towards EPIC’s Renewable Portfolio Standard (RPS) requirements, to the benefit of EPIC ratepayers.

As Hitachi is looking to generate Hydrogen fuel in addition to their RNG production, they will allocate a portion of their Hydrogen to the City. The City could also potentially use the Hydrogen to fuel the above mentioned proposed vehicles and for other uses, leading to further savings through the use of the renewable energy.

According to California Government Code Section 4217.12 (a)(1) the City Council may determine a project would be in the City’s best interest if “the anticipated cost to the public agency for thermal or electrical energy or conservation services provided by the energy conservation facility under the contract will be less than the anticipated marginal cost to the public agency for thermal, electrical, or other energy that would have been consumed by the public agency in the absence of those purchases.” Such determination must be made in a regularly scheduled public meeting, with a notice of the item being posted a minimum of two weeks in advance. Staff recommends the Council approve Resolution No. CC 2022-046, which pending the positive results of the organics feasibility study, will determine that an agreement with Hitachi is in the City’s best interest.

FISCAL IMPACT
Report to Mayor and City Council
Re: Approval of Resolution No. CC 2022-046
Date of Meeting: May 4, 2022

As mandated by the State of California, the need for and use of the Hitachi facility will have an impact on rates for collection services. However, it will provide long term protections for the City since the facility will provide organic processing services that are compliant with SB 1383 for 30 years from commencement of services. If CalRecycle determines the City is not in compliance and in violation of SB 1383, the City may face penalties starting from $500 up to a maximum of $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: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS
Resolutions No. CC 2022-046
DRAFT Organic Feedstock Disposal Agreement Among City of Palmdale, California, and HZI Lancaster, LLC (Agreement No. A-7898)
Notice of Public Hearing

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-046

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

AUTHORIZING THE INTERIM CITY MANAGER AND CITY ATTORNEY

TO NEGOTIATE AND EXECUTE AN ORGANIC FEEDSTOCK
DISPOSAL AGREEMENT WITH HZI LANCASTER, LLC.

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 has the potential to be fined up to $10,000 per day for non- compliance; and
WHEREAS, pursuant to the Agreement between City of Palmdale and Waste Management of California, Inc., DBA Waste Management of Antelope Valley for Integrated Solid Waste Management Services, the City may direct WM, the City’s franchised trash hauler, to modify the manner in which they perform existing services; and
WHEREAS, anaerobic digestion currently is an acceptable form of treating non- edible organic waste by the means of using biological processes in an oxygen depleted environment to decompose organic matter and generate renewable fuels; and
WHEREAS, Hitachi Zosen INOVA (Hitachi) has a proven track record in constructing and operating anaerobic digestion facilities; and WHEREAS, HZI, Lancaster, LLC. on behalf of Hitachi is proposing to construct an anaerobic digestion facility at the Lancaster Landfill in Unincorporated Los Angeles County, north of Lancaster, CA and has obtained the permits necessary to commence construction; and
Resolution No. CC 2022-046

WHEREAS, HZI, Lancaster, LLC is amenable to negotiating an Organic Feedstock Disposal Agreement, and has indicated that it is open to assign five percent (5%) of its Renewable Natural Gas (RNG) production and five percent (5%) of its renewable Hydrogen production to the City of Palmdale and to sell additional amounts of both fuels to the City at a reasonable rate if the City sees fit; and WHEREAS, the City has identified beneficial uses of the fuels and finds that obtaining such fuels would be in the City's best interest; and WHEREAS, the City is using a third party consultant to prepare a feasibility study on the use of the facility; and
WHEREAS, pending positive results of the study, staff will have completed the due diligence required to investigate potential projects for organics processing, energy conservation, and energy savings, including entering into an agreement as contemplated by California Government Code 4217.10 et seq.; and WHEREAS, on April 20, 2022, the City gave notice of its intent to discuss, and possibly authorize the Interim City Manager and City Attorney to negotiate and execute, an Organic Feedstock Agreement with HZI Lancaster, LLC; and WHEREAS, on May 4, 2022, the City Council received and reviewed information and data presented by Staff and HZI Lancaster, LLC demonstrating that the cost to the City for HZI Lancaster, LLC to provide RNG and Hydrogen are anticipated to be less than the projected cost to the City of thermal, electrical, or other energy that will be consumed by the City in the absence of the agreement; and WHEREAS, the Director of Finance has determined that the best interests of the City are served by procuring the energy through a negotiated agreement with HZI Lancaster, LLC; and
WHEREAS, the City desires to retain HZI Lancaster, LLC to process the City residential and commercial organic waste for 30 years following the facility’s commencement of operations.

Resolution No. CC 2022-046

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 requires staff and the City’s franchised hauler to work with the City’s solid waste consultant performing an organic waste processing feasibility study.

SECTION 2. The City Council received comment, information and data at the May 4, 2022 City Council meeting, for which notice was given not less than two weeks in advance.

SECTION 3. Based on comments, staff reports, documentation reviewed by the City Council, and pending favorable results from the organics feasibility study as so determined by Public Works, the City Attorney’s Office, and the City Manager’s Office, the City Council makes the formal findings required by California Government Code section 4217.12 that the renewable energy obtained by the anaerobic digestion facility and the use of the fuel thereof will be less than the anticipated cost to the City of thermal, electrical, or other energy consumed by the City in the absence of the organic feedstock agreement.

SECTION 4. Upon determination of favorable results from the organics feasibility study, the Interim City Manager, in consultation with the City Attorney, is authorized to negotiate, finalize, enter into, and execute the organic feedstock agreement attached as Exhibit A.

SECTION 5. The Interim City Manager or future City Manager is authorized to execute any future amendments to the organic feedstock agreement deemed necessary or beneficial to the City, so long as the amendments do not financially obligate the City and/or extend the term of the agreement.

Resolution No. CC 2022-046

SECTION 6. The Palmdale City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED and ADOPTED this 4th day of May, 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 4th day of May, 2022 by the following roll call vote:

AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT: ___________________________ Date: ______________________________ _____________________________ Shanae S. Smith, City Clerk
DRAFT Agreement No. A-7898

ORGANIC FEEDSTOCK DISPOSAL AGREEMENT
AMONG

CITY OF PALMDALE, CALIFORNIA,
AND

HZI LANCASTER, LLC
Agreement No. A-7898
________ __, 2022
DRAFT Agreement No. A-7898
TABLE OF CONTENTS [page number to be updated at the end] ARTICLE I DEFINITIONS AND INTERPRETATION 1

1.1 Definitions 1

1.2 Construction 1
ARTICLE II PURPOSE; TERM 2

2.1 Term; Early Termination 2

2.2 Purpose 2
ARTICLE III DELIVERY OF ACCEPTABLE WASTE 3

3.1 Concession Regarding Acceptable Waste 5

3.2 Books and Records 5

3.3 Tip Fees Payable to Project Company 5

3.4 Additional Benefits from the Project Company to the City 5 ARTICLE IV PROJECT DEVELOPMENT 6

4.1 Project Development 6

4.2 Authority 6

4.3 Project Development Assistance 6
ARTICLE V EVENTS OF DEFAULT; TERMINATION 7

5.1 Project Company Event of Default 7

5.2 City Event of Default 8

5.3 Remedies upon Event of Default 9

5.4 Change in law 9
ARTICLE VI INDEMNIFICATION 10

6.1 Indemnification 10

6.2 Indemnification Claims 10

6.3 Limitations 10
ARTICLE VII REPRESENTATIONS & WARRANTIES 11

7.1 Representations and Warranties of the City 11

7.2 Representations and Warranties of Project Company 11 ARTICLE VIII MISCELLANEOUS 12

8.1 Sovereign Immunity 12

8.2 Cost and Expenses 12

8.3 Compliance 12

8.4 Confidentiality 12

8.5 Legal Relationship 13

8.6 Limitation of Liability 13

8.7 Governing Law 13

8.8 Intellectual Property 13

8.9 Assignment; Amendment 14

8.10 Waiver 14

8.11 Counterparts; Fax Signatures 14

8.12 No Third-Party Beneficiaries 14

8.13 Limitations on Agreement 14

8.14 Notices 14
01/28/2022 DRAFT
1 ORGANIC FEEDSTOCK DISPOSAL AGREEMENT
This Organic Feedstock Disposal Agreement (this “Agreement”), dated as of _________ __, 2022, is entered into by and between HZI LANCASTER, LLC (“Project Company”), a California limited liability company, and the City of Palmdale (“City”), a California municipal corporation and charter city established under the laws of the State of California. Project Company and City shall each be referred to as a “Party” or collectively as the “Parties.”

W I T N E S E T H
WHEREAS, affiliates of Project Company have developed an anaerobic digestion waste conversion process to produce biogas from organic waste (the “HZI Technology”); WHEREAS, Project Company desires to develop, own and operate a plant to process organic waste products using the HZI Technology to be located at the premises of the landfill at 600 East Avenue F, Lancaster, CA 93535 (the “Project”);
WHEREAS, pursuant to, and under the terms and conditions contained in section 304 of the City’s Charter, the City is authorized to execute and deliver this Agreement, perform its obligations hereunder and enter into the transactions contemplated hereby;
WHEREAS, the City desires a long-term arrangement for the disposal of all of its organic waste products to reduce the use of landfills and other traditional methods of disposal and otherwise manage, dispose and/or treat Acceptable Waste, pursuant to Applicable Law governing the disposal, management and/or treatment of short-lived climate pollutants, including but not limited to, CA SB 1383 and any implementing regulations and/or successor legislation, in an environmentally-conscious and efficient manner and recognizes the significant benefit to its strategic goals to jointly pursue the Project with Project Company; and
NOW, THEREFORE, in consideration of the premises and the covenants and agreements as herein set forth and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereto agree as follows:

AGREEMENT
NOW THEREFORE, in consideration of the foregoing premises, and the mutual conditions, covenants, and promises contained herein, the Parties, intending to be legally bound, do hereby agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

1.1 Definitions. Capitalized terms used herein shall have the meaning set forth in Addendum I.

1.2 Construction. The terms “hereby,” “hereof,” “herein,” “hereunder,” and any similar terms refer to this Agreement. As used in this Agreement: (a) the word “or” is not exclusive; (b) the words “include,” “includes,” and “including” shall be deemed to be followed by the phrase “without limitation”; (c) any pronoun shall include the corresponding masculine, feminine; and neuter forms; and (d) words in the singular number include words in the plural and vice versa unless the context of the usage of such term clearly indicates otherwise. All references to time hereunder shall refer to Pacific DRAFT Agreement No. A-7898
2 Time. Unless expressly provided otherwise, any reference in this Agreement to a period of “days” or “calendar days” means consecutive calendar days.

ARTICLE II
PURPOSE; TERM

2.1 Term; Early Termination.
(a) The term of this Agreement shall commence on the date of execution (the “Effective Date”) and expire on the earlier of (i) the date which is thirty (30) years after the Delivery Start Date, (ii) the date of termination of the Agreement pursuant to the terms hereof, and (iii) the effective date of termination pursuant to a mutual written agreement of the Parties (the “Term”). (b) Notwithstanding anything herein to the contrary, each Party shall have the right to terminate this Agreement by written notice to the other Party, which will be effective upon receipt, if Project Company is unable to obtain financing (through debt, equity or otherwise) to fund the construction of the Project on or before March 31, 2023 (“Outside Date”); provided that if, prior to the Outside Date, Project Company notifies City in writing that Project Company is continuing to diligently pursue its obligations under this Agreement, the foregoing Outside Date shall automatically be extended for an additional period of ninety (90) days. Project Company shall use commercially reasonable efforts to obtain financing for the Project, and carry out its other obligations, on or before the Outside Date.
(c) In addition to the foregoing, Project Company’s obligations under this Agreement are expressly contingent upon Project Company’s ability to secure a Supply Agreement and such other binding agreements with Waste Manager as contemplated in Sections 3(b)(ii) and (iii) on terms that Project Company deems acceptable in its sole discretion and Project Company having taken all commercially reasonable steps to secure all permits, interconnection agreements, and approvals necessary for the Project by the Outside Date. Project Company may terminate this Agreement at any time prior to the Outside Date for failure to satisfy any of the foregoing contingencies by written notice to the City, in which case no damages will be due or owing by either Party. Subject to the City’s cooperation and reasonable assistance to be provided to Project Company, Project Company shall use commercially reasonable efforts to satisfy the foregoing contingencies on or before the Outside Date. (d) Project Company’s obligations herein shall be fully guaranteed and secured by its parent company, Hitachi Zosen Inova AG. The terms of the Guaranty are reflected in Addendum III attached hereto.
(e) In addition to the foregoing, the City’s obligations under this Agreement are expressly contingent upon the City’s ability to secure an amendment or supplemental agreement to the City’s franchise agreement with its existing Waste Manager to the extent necessary to cause the supply of Acceptable Waste to the Project as contemplated by this Agreement, on or before September 1, 2022 (the “WM Agreement Outside Date”); provided, however, that if the City and the Waste Manager reach an agreement in principle regarding such amendment or supplemental agreement that requires additional approval or ratification from the City which is obtained within a reasonable time after the WM Agreement Outside Date, the amendment or supplemental agreement shall be deemed to have been entered into before the WM Agreement Outside Date; provided further, that in the absence of such agreement in principle, prior to the WM Agreement Outside Date, Project Company may extend the WM Agreement Outside Date to a date no later than the Outside Date to allow for additional good DRAFT Agreement No. A-7898
3 faith negotiations. If the City is unable to obtain such amendment or agreement by the WM Agreement Outside Date, the City may terminate this Agreement by written notice to the Project Company within ten (10) days following the WM Agreement Outside Date, as the same may be extended hereunder, in which case no damages will be due or owing by either Party. Subject to Project Company’s cooperation and reasonable assistance to be provided to the City, the City shall use commercially reasonable efforts to satisfy the foregoing contingency on or before the WM Agreement Outside Date. (f) If a Party exercises its termination rights pursuant to Sections 2.1(b), (c), or (e), then no damages will be due or owing by either Party as a result of such termination provided that each Party will remain responsible for a breach prior to such termination.

2.2 Purpose. The purpose of this Agreement is to establish the terms for the City’s participation in the Project, including:
(a) the City’s obligation to cause the supply of all of its Acceptable Waste to the Project and Project Company’s agreement to accept and process such Acceptable Waste, at a mutually agreeable tipping fee or other mutually agreeable compensation; and (b) the City’s assistance and cooperation with the Project Company’s efforts to develop, finance and construct the Project, including Project Company’s procurement of permits and approvals for the Project.

ARTICLE III

DELIVERY OF ACCEPTABLE WASTE

3.1 Concession Regarding Acceptable Waste.
(a) The City hereby grants, gives and concedes to Project Company during the Term the sole and exclusive right and privilege to use all Acceptable Waste in the possession or control of the City or to which City holds title or rights as feedstock for the Project in accordance with the terms of this Agreement. The Parties agree and acknowledge that Project Company is relying upon the grant set forth in this Section 3.1 and that the delivery of such Acceptable Waste to the site of the Project for use by the Project Company is an essential requirement for the operation of the Project. The loss of the supply of the Acceptable Waste at any time during the Term would represent a material loss to Project Company. In furtherance of the foregoing, the City covenants not to grant any Third Party any rights to receive or use the Acceptable Waste during the Term. For the avoidance of doubt, the City agrees that its amendment or addendum to its franchise agreements (and any future franchise agreements) with its Waste Manager shall state that Unacceptable Waste shall not be delivered to the Project, and the Parties hereby agree that Project Company shall not be obligated to accept Unacceptable Waste in satisfaction of the supply obligations under the Supply Agreement. The City shall work with its Waste Manager to educate the public to facilitate separation of Acceptable Waste from Unacceptable Waste at the sites of disposal and pick-up by Waste Manager, and shall otherwise use reasonable efforts to maximize the quality of Acceptable Waste being delivered to Project Company. (b) Commencing on or before the Delivery Start Date, as applicable, and in accordance with the Project schedule, and continuing thereafter throughout the Term, the City shall cause to be delivered to the site of the Project, all Acceptable Waste in its possession or control during the Term by undertaking (and subject to) the following and taking any and all other necessary actions to allow for and implement the same:

DRAFT Agreement No. A-7898
4 (i) notifying its Waste Manager in writing of the concession granted pursuant to Section 3.1(a) above and directing its Waste Manager in writing to identify and deliver any and all of the City’s Acceptable Waste to the Project Company at the site of the Project on a daily basis up to a maximum daily volume of all of the City’s Acceptable Waste on each such day during the Term (“Notice to Waste Manager”);
(ii) requesting (or directing, to the extent the City has such authority) its Waste Manager to formalize the arrangement described in Section 3.1(b)(i) by entering into one or more feedstock supply agreements to deliver all of the City’s Acceptable Waste to the Project Company on terms mutually agreed between the Project Company and the Waste Manager (“Supply Agreement”);
(iii) executing additional written directions, consents or other instruments to implement such direction to the Waste Manager promptly (in any case, no later than three (3) business days) upon a request by Project Company;
(iv) monitoring the performance of the arrangement described in this Section 3.1(b) by its Waste Manager and taking any and all reasonably practicable actions available or permitted pursuant to its Waste Management Agreement, including the exercise of remedies, to cause its Waste Manager to identify and deliver any and all of the City’s Acceptable Waste to the Project Company in compliance with this Agreement and the Supply Agreement; and (v) complying at all times with the Waste Management Agreement and in the event of any termination or expiration thereof, taking immediate steps to ensure the continued supply of all of the City’s Acceptable Waste to Project Company at the site of the Project for the duration of the Term in accordance with this Agreement. (c) Acceptable Waste shall be delivered to Project Company by Waste Manager pursuant to the Supply Agreement described in Section 3.1(b)(ii). (d) As between City and Project Company, Project Company shall be responsible for any penalties if the disposal and processing of the Acceptable Waste does not comply with Applicable Law and/or CalRecycle regulations governing the disposal, management and/or treatment of short-lived climate pollutants. Project Company shall not be responsible for any such penalties related to hauling and delivery of the Acceptable Waste.

3.2 Books and Records.
(a) Throughout the Term, Project Company shall prepare and maintain proper, accurate, and complete books, records, and accounts regarding the operations of the Project sufficient to substantiate the delivery quantities, processing, management and disposal of Acceptable Waste pursuant to this Agreement and to respond to any audit(s) by CalRecycle or any other regulatory body. (b) Project Company shall provide to the City such other information, data, and reports as are in its possession and reasonably required for the City's administration of this Agreement and compliance with reporting or other requirements imposed on the City by statute, law, rule or regulation.

3.3 Tip Fees Payable to Project Company. Project Company shall be paid $98 / ton in fees from the City, with a 3.5% annual escalation, (the “Tip Fee”) in exchange for Project Company’s acceptance DRAFT Agreement No. A-7898
5 of and processing of the Acceptable Waste in conformity with all Applicable Laws governing the disposal, management and/or treatment of short-lived climate pollutants.

3.4 Additional Benefits from the Project Company to the City. Project Company shall provide to the City the following additional benefits:
(a) Gas Revenue Sharing. Project Company shall pay to the City, in a lump sum on an annual basis, an amount equal to five percent (5.0%) of the net revenues received by Project Company from (i) the commodity sale of renewable natural gas (“RNG”) produced by the Project and (ii) the sale of any federal Renewable Identification Number (“RIN”) credits and any California Low Carbon Fuel Standard (“LCFS”) credits that are attached to such RNG ((i) and (ii) together, the “RNG Revenue”).

Such net revenues shall be exclusive of the Project Company’s cost of such sale of RNG and credits and related expenses, and taxes attributable thereto, (for the avoidance of doubt, the net revenues of the RNG sales shall be equal to the RNG Revenue for the RNG sold minus (i) the commissions and fees associated with the execution of sale and transport of such RNG, (ii) the commissions and fees associated with the sale of any RIN and LCFS credits, and (iii) any and all sales tax applicable to such sales) as determined by Project Company’s accountants.
(b) Sustainability Educational Center. As part of the Project, Project Company shall establish an on-site center to provide tours and educational sessions regarding the process of converting municipal waste to decarbonized fuel, all as determined by Project Company, to visitors. (c) Advisory Services. In order to support the City’s economic and community development goals, through the Outside Date, Project Company representatives will advise the City as reasonably required from time to time on (i) the City’s efforts to attract new investment in hydrogen infrastructure, (ii) will continue to support South Antelope Valley Emergency Services (“SAVES”), having already provided two heavy-duty outdoor tents and will purchase a refrigerated food truck, and (iii) will assist the City in procuring its first hydrogen fueling station. (d) Hydrogen Passenger Vehicle Fleet. To assist with the City’s sustainability plans and efforts to further decarbonize, within sixty (60) days after the Delivery Start Date (or the first date thereafter that such vehicles are become available), Project Company will donate to the City five (5) new Toyota Mirai, or substantially equivalent, hydrogen fuel cell passenger vehicles. Project Company will cause the conveyance of title to such vehicles directly from the dealer to the City, and the City shall be responsible for all title, registration, and licensure paperwork and fees and agrees to accept all liability with respect to the ownership and operation of such vehicles and to hold Project Company harmless from any liability with respect thereto.

DRAFT Agreement No. A-7898
6 ARTICLE IV

PROJECT DEVELOPMENT

4.1 Project Development. Subject to the City’s required assistance under Section 4.3, Project Company will be solely responsible for the development, construction and operation of the Project, including costs and expenses incurred in connection therewith. Project Company shall use commercially reasonable efforts to (a) develop the Project and procure the required financing and feedstock for the Project on terms acceptable to Project Company, and (b) contribute or cause its affiliates to contribute its or their technical, operational, and commercial skills and experience to the Project as required to perform Project Company’s obligations pursuant to this Agreement. Project Company shall, as necessary for Project Company to carry out its obligations under this Agreement, cause one or more of its affiliates to (i) grant a license to Project Company with respect to the HZI Technology that is sufficient for the construction and operation of the Project subject to the payment of a license fee to such affiliate, as applicable, (ii) enter into a Management Agreement with Project Company to provide for the performance of management services for the benefit of Project Company, which may be subject to the payment of a service fee and reimbursement of incurred expenses to such affiliate, and (iii) contribute or assign or otherwise grant rights to Project Company in material contracts or assets which are held by or in the name of such affiliate which were obtained for and are necessary for the construction and operation of the Project. Project Company shall deliver copies of such agreement(s) to City promptly following the execution thereof.

4.2 Authority. For the avoidance of doubt, so long as the Project meets all requirements of Applicable Law governing the disposal, management and/or treatment of short-lived climate pollutants, Project Company shall have the authority to make decisions regarding the development, financing, construction and operation of the Project in its sole discretion, including without limitation (a) preparing and finalizing the development plan, construction budget and design for the Project and the Project development and construction schedule; (b) preparing and finalizing each annual operating budget for the Project; (c) the negotiation with key counterparties of project agreements for the Project which Project Company determines are necessary or desirable, and (d) other decisions associated with the development, financing, construction and operation of the Project.

4.3 Project Development Assistance. As reasonably requested from time to time by Project Company, the City shall use reasonable efforts to assist Project Company in connection with Project Company’s activities undertaken in furtherance of the development and permitting of the Project (as more particularly set forth below); provided that, the City shall not be required to incur any monetary obligation or prepare any grant application in connection with such efforts. The Parties expressly acknowledge that the site of the Project is located outside the City’s jurisdiction and, therefore, the City’s ability to directly assist in the development of the Project is limited. Such assistance shall include, without limitation, the following:
(a) The City shall, if requested by Project Company, use commercially reasonable efforts to assist in obtaining required permits and approvals for the Project in accordance with Applicable Law;
(b) City shall use commercially reasonable efforts to assist Project Company in applying for any incentives, subsidies or grants, including state and local tax abatements, for which Project Company might be eligible in connection with the development, construction and operation of the Project;
DRAFT Agreement No. A-7898
7 (c) Without limiting Section 8.9, City shall provide such documentation and/or records as may be reasonably requested by Project Company in its efforts to obtain financing for the Project, including negotiating and entering into a consent to collateral assignment of this Agreement, executing and delivering estoppel certificates certifying compliance under this Agreement and containing other customary terms required by financing parties and executing and delivering, as applicable, any other reasonably-requested documentation with respect to the Project, all in forms mutually agreeable to the City, Project Company and the proposed financing parties; (d) City shall afford Project Company and its representatives (including representatives of the proposed financing parties) the opportunity to discuss the business, financial condition, operations, assets and liabilities of City with City’s employees, attorneys, accountants, consultants and other appropriate representatives of the City;
(e) City shall consult with, cooperate and assist with the development and implementation of strategies for engaging the community with respect to Project; and (f) City shall provide information in the possession of City and reasonably requested by Project Company in connection with the development and financing of the Project to Project Company and its representatives (including representatives of the proposed financing parties), including access to all data, records, sites, facilities and other information necessary for the conduct of a complete commercial, operational, financial, legal, technical and other appropriate due diligence examination with respect to the Project and City.

4.4 Schedule of Performance. Project Company shall use commercially reasonable efforts to cause the Delivery Start Date to occur on or before December 31, 2024; provided, however, that the Parties acknowledge and agree that the Project shall not commence operations before May 15, 2024.

ARTICLE V
EVENTS OF DEFAULT; TERMINATION

5.1 Project Company Event of Default. Any of the following shall constitute an “Event of Default” by Project Company:
(a) the failure or refusal of Project Company to perform or observe any of its material obligations under the provisions of this Agreement (unless such failure or refusal is due to an event of Force Majeure or otherwise excused or justified by the provisions of this Agreement), if such failure or refusal continues uncured thirty (30) days after Project Company has received from the City written notice of the default and the right to cure; provided that, if the nature of the subject failure or refusal is such that it cannot reasonably be cured within thirty (30) days the cure period shall be extended to not more than ninety (90) days after the written notice of default, as shall be necessary for Project Company to cure the breach with all due diligence;
(b) the intentional misrepresentation of any material representation or warranty made by Project Company in this Agreement if the City suffers damages as a result of such falseness or inaccuracy;
(c) the commencement of any bankruptcy, insolvency, liquidation, or similar proceeding by or against Project Company; the consent by Project Company to the appointment of or taking possession by a receiver, liquidator, trustee in bankruptcy, or custodian of Project Company or any DRAFT Agreement No. A-7898
8 substantial part of its assets; or any assignment of all or substantially all of the assets of Project Company for the benefit of its creditors; provided, in the case of the commencement of an involuntary petition or proceeding or entry of a judgment or judicial order that includes or seeks to cause any of the above events, such petition, proceeding, judgment, or order is not discharged or dismissed within ninety (90) days; or
(d) failure of the Project after the Delivery Start Date to comply with Applicable Law and/or CalRecycle regulations governing the disposal, management and/or treatment of short-lived climate pollutants, resulting in rejection and/or decertification of the Project for disposal and processing of Acceptable Waste by CalRecycle for a period of one hundred eighty (180) consecutive days unless Project Company is able to cause the Acceptable Waste to be accepted for disposal and processing at an alternate facility at no additional cost to the City; provided, however, in no event shall the preceding in this Section 5.1(d) be a Project Company Event of Default if such non-compliance is due to a change in Applicable Law and/or CalRecycle regulations following the Delivery Start Date, which circumstance shall be governed by Section 5.4.

5.2 City Event of Default. The following shall constitute an “Event of Default” by City:
(a) the failure or refusal of City to perform or observe any of its obligations pursuant to Article III with respect to the delivery of Acceptable Waste (including without limitation the obligation to issue the Notice to Waste Manager, to request (or direct) the execution of a Supply Agreement or promptly exercise remedies against the Waste Manager), if such failure continues uncured ten (10) business days after City has received from Project Company written notice of the default; (b) except as set forth in (a) above, the failure or refusal of City to perform or observe any of its other obligations under the provisions of this Agreement (unless such failure or refusal is due to an event of Force Majeure), if such failure or refusal continues uncured thirty (30) days after the City has received from Project Company written notice of the default; provided that, if the nature of the subject failure or refusal is such that it cannot reasonably be cured within thirty (30) days, then such period shall be extended to not more than ninety (90) days after the written notice of default, as shall be necessary for such Party to cure the breach with all due diligence; (c) the falseness or inaccuracy of any material representation or warranty made by the City in this Agreement if Project Company suffers damages as a result of such falseness or inaccuracy; or (d) the commencement of any bankruptcy, insolvency, liquidation, or similar proceeding by or against the City; the consent by the City to the appointment of or taking possession by a receiver, liquidator, trustee in bankruptcy, or custodian of the City or any substantial part of its assets; or any assignment of all or substantially all of the assets of the City for the benefit of its creditors; provided, in the case of the commencement of an involuntary petition or proceeding or entry of a judgment or judicial order that includes or seeks to cause any of the above events, such petition, proceeding, judgment, or order is not discharged or dismissed within ninety (90) days.

5.3 Remedies upon Event of Default. Project Company and City agree that a suit for damages shall be an available remedy in the Event of Default, but damages may be an inadequate remedy for an Event of Default under this Agreement, and that each Party will be entitled to seek injunctive and other equitable relief against the other Party to prevent or eliminate such default, or to enforce the provisions of this Agreement. For the avoidance of doubt, except as provided in Sections 2.1(b) and (c) and for an Event of Default by Project Company under Section 5.1(d), no Party shall be entitled to terminate DRAFT Agreement No. A-7898
9 this Agreement prior to the expiration of the Term unless and until the Parties expressly agree in writing to an early termination of this Agreement in accordance with Section 2.1(a)(ii) or a court of law having jurisdiction orders such termination.1

5.4 Change in Law. In the event the Project fails to comply with Applicable Law and/or CalRecycle regulations governing the disposal, management and/or treatment of short-lived climate pollutants, resulting in rejection and/or decertification of the Project for disposal and processing of Acceptable Waste by CalRecycle, and such non-compliance is due to a change in Applicable Law and/or CalRecycle regulations that occurs after the Delivery Start Date, Project Company shall be afforded a period of one hundred eighty (180) days after the date that the Project is unable to accept Acceptable Waste due to such non-compliance to (a) cause the Acceptable Waste to be accepted for disposal and processing at an alternate facility at no additional cost to the City during such period of non- compliance, (b) obtain a waiver or forbearance of enforcement of such Applicable Law or regulations during such period of non-compliance, and/or (c) cause the Project to come into compliance with such Applicable Law and/or regulations, provided that if compliance may be achieved through upgrades or other changes to the Project or the equipment or processes used therein which are not reasonably susceptible to being completed within such one hundred eighty (180) day period and Project Company commences performance of such changes within such one hundred eighty (180) day period and diligently prosecutes the same to completion, Project Company shall be afforded such additional time as is reasonably necessary to complete such changes, not to exceed eighteen (18) calendar months from the date that the Project is unable to accept Acceptable Waste due to such non-compliance. If Project Company determines that it is not willing or able to perform any of the cure options under the foregoing Subsections 5.4(a), (b) or (c), Project Company shall have the right to terminate this Agreement by written notice to the City at any time thereafter. If Project Company does not elect to terminate this Agreement and fails to timely perform any of the cure options under the foregoing Subsections 5.4(a), (b) or (c), the City shall have the right to terminate this Agreement by written notice to Project Company at any time after expiration of such cure period, but prior to Project Company’s actual performance of such cure. In the event of a termination of this Agreement by either Party under this Section 5.4, neither Party shall be deemed to be in default or breach under this Agreement, and neither Party shall have any liability for damages to the other. For the avoidance of doubt, Project Company shall be responsible for the continued disposal of Acceptable Waste during any period of noncompliance as described herein.

1 Note to City: HZI prefers binding arbitration over litigation, if the City is willing/able to agree.

DRAFT Agreement No. A-7898
10 ARTICLE VI

INDEMNIFICATION

6.1 Indemnification.
(a) Except to the extent of any Claims caused by or resulting from the gross negligence or willful misconduct of the City, Project Company shall indemnify, defend, and hold harmless the City and/or its elected officials, commissioners, executives, directors, officers, employees, consultants, agents, and representatives (each, a “City Indemnified Party”) from any and all Claims incurred as a result of: (i) any act or omission of Project Company in connection with performance of its obligations under this Agreement (to the extent resulting from such act or omission), except to the extent that such Claims arise in connection with waste other than Acceptable Waste that the City delivered or caused to be delivered to Project Company; or (ii) bodily injury to or death of any individual, or damage or destruction of property of the City or a Third Party, to the extent resulting from the negligence or willful misconduct of Project Company or its officers, employees, or representatives; provided, however, that Project Company’s indemnification obligations are contingent upon the City asserting as a defense any applicable claim of sovereign immunity, protection from liability under the Government Claims Act (Cal. Gov’t Code §§ 810-998.3), or any similar protection in any matter asserting Claims under which such indemnity may apply.
(b) To the fullest extent permitted by Applicable Law, except to the extent of any Claims caused by or resulting from the negligence, breach of this Agreement, or willful misconduct of Project Company, the City shall indemnify, defend, and hold harmless Project Company and its members, managers, officers, owners, employees, consultants, agents, and representatives (each, a “Project Company Indemnified Party”) from any and all Claims incurred as a result of: (i) any act or omission of the City in connection with performance of its obligations under this Agreement (to the extent resulting from such act or omission); or (ii) bodily injury to or death of any individual, or damage or destruction of property of Project Company or a Third Party, to the extent resulting from the negligence or willful misconduct of the City or its officers, employees, or representatives.

6.2 Indemnification Claims. Within twenty (20) business days of receipt of notice of any Third Party Claim as to which it may be entitled to indemnification hereunder, any indemnified party shall give Project Company or the City, as applicable, written notice of the Claim with details, to the extent known, of the factual basis of the claim and amounts claimed; provided that, a delay in giving such notice shall relieve the indemnifying party of liability for the Claim only to the extent the indemnifying party suffers actual prejudice because of such delay. The indemnifying party shall have the right, at its option and expense, to participate in the defense of such a Claim, but not to control the defense, negotiation, or settlement thereof, which control shall at all times rest with the indemnified party, unless (a) such Claim seeks only monetary remedies and not injunctive or other specific remedies or potential criminal penalties, and (b) the indemnifying party irrevocably acknowledges and confirms, in writing, responsibility for and ability to indemnify against such Claim and agrees to indemnify the indemnified party against the same. The Parties agree to cooperate fully with each other in connection with the defense, negotiation, or settlement of any such Claim.

6.3 Limitations; Survival. The terms and conditions of this Article VI shall (i) remain subject to the limitations set forth in Section 8.6, and (ii) survive the termination or expiration of this Agreement.

DRAFT Agreement No. A-7898
11 ARTICLE VII

REPRESENTATIONS & WARRANTIES

7.1 Representations and Warranties of the City. The City hereby represents and warrants to Project Company as of the Effective Date as follows:
(a) The City is a municipality of the State of California with full legal right, power, and authority to enter into and perform its obligations under this Agreement ; (b) The execution and delivery of this Agreement and the performance of the obligations and duties of the City hereunder and thereunder, have been duly authorized by all necessary and appropriate action in accordance with Applicable Law;
(c) This Agreement has been duly executed and delivered by a duly and properly authorized officer or administrator of the City, and constitutes a legal, valid, and binding obligation of the City, enforceable against the City in accordance with its terms; (d) Subject to the terms and conditions of the AGREEMENT BETWEEN CITY OF PALMDALE AND WASTE MANAGEMENT OF CALIFORNIA, INC., DBA WASTE MANAGEMENT OF ANTELOPE VALLEY FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES for the Collection of Solid Waste entered into by and between the City and Waste Management of California, Inc. and dated as of July 10, 2017 (together with any renewal, extension, supplement, amendment and replacement of such agreement with any Waste Manager, the “Waste Management Agreement”), neither the execution and delivery by the City of this Agreement, nor the performance by the City of its obligations hereunder, nor the consummation by the City of the transactions contemplated hereby and thereby conflicts with, violates, or results in a breach of: (i) any Applicable Law; or (ii) any term or condition of any judgment, decree, mortgage, indenture, lease, agreement, or instrument to which the City is a party or by which the City or any of its properties or assets are bound, or constitutes a default under any such judgment, decree, mortgage, indenture, lease, agreement, or instrument; and (e) There is no action, suit, or other proceeding at law or in equity, before or by any court or governmental authority, pending or, to the City's knowledge, threatened against the City which affects or reasonably could be expected to materially and adversely affect the execution or delivery of this Agreement or the validity or enforceability of this Agreement, or which would materially and adversely affect the performance by the City of its obligations hereunder or thereunder.

7.2 Representations and Warranties of Project Company.

Project Company hereby represents and warrants to the City as of the Effective Date as follows:

7.2.1 Project Company is duly organized and validly existing as a limited liability company under the laws of the State of California, with full legal right, power, and authority to enter into and perform its obligations under this Agreement. Project Company is, or will be prior to commencement of construction of the Project, authorized to do business in the State of California;

7.2.2 The execution and delivery of this Agreement, the contractual arrangements contemplated herein, and the performance of the obligations and duties of Project Company hereunder, have been duly authorized by all necessary and appropriate action in accordance with Applicable Law; DRAFT Agreement No. A-7898
12 7.2.3 This Agreement has been duly executed and delivered by a duly and properly authorized manager or officer of Project Company, and constitutes a legal, valid, and binding obligation of Project Company, enforceable against Project Company in accordance with its terms;

7.2.4 Subject to the receipt of all required permits and approvals, neither the execution and delivery by Project Company of this Agreement, nor the performance by Project Company of its obligations hereunder, nor the consummation by Project Company of the transactions contemplated hereby conflicts with, violates, or results in a breach of: (i) any Applicable Law; or (ii) any term or condition of any judgment, decree, mortgage, indenture, lease, agreement, or instrument to which Project Company is a party or by which Project Company or any of its properties or assets are bound, or constitutes a default under any such judgment, decree, mortgage, indenture, lease, agreement, or instrument; and

7.2.5 There is no action, suit, or other proceeding at law or in equity, before or by any court or governmental authority, pending or, to Project Company's knowledge, threatened against Project Company which affects or reasonably could be expected to materially and adversely affect the execution or delivery of this Agreement or the validity or enforceability of this Agreement, or which would materially and adversely affect the performance by Project Company of its obligations hereunder or thereunder.

ARTICLE VIII

MISCELLANEOUS

8.1 Sovereign Immunity. City represents, warrants and covenants to Project Company that under City’s enabling act, it is not entitled to raise the defense of sovereign immunity with respect to claims arising out of this Agreement. Under its enabling act, City does not have sovereign immunity (and any defense based thereon) as to it in respect of the enforcement and execution of any award or other relief (pecuniary or otherwise) rendered against it in accordance with the provisions of this Agreement.

Nothing in this Agreement shall limit or waive any provision of the Government Claims Act (Cal.

Gov’t Code §§ 810-998.3) or any other provision of Applicable Law.

8.2 Cost and Expenses. Except as and to the extent expressly provided otherwise herein, each Party shall bear its own costs and expenses in the performance of this Agreement.

8.3 Compliance. The Parties shall perform this Agreement in compliance with Applicable Law.

8.4 Confidentiality. Each Party agrees to maintain as confidential and not disclose this Agreement, as well as any financial information, trade secrets, and other confidential information disclosed in the performance of this Agreement, which information is non-public, confidential, or proprietary and which is developed by or on behalf of the other Party during the course of the transactions contemplated hereunder except to the extent disclosure of such information is required by Applicable Law, including, without limitation, the Ralph M. Brown Act (Cal. Gov’t Code §§ 54950-54963) and California Public Records Act (Cal. Gov’t Code §§ 6250-6277), and except that Project Company shall be entitled to disclose such information to its affiliates and Project Company’s and such affiliates’ employees, attorneys, agents, contractors and consultants and to potential investors and financing parties. No Party shall issue any press release regarding this Agreement or the relationship of the Parties except with the prior written consent of the other Party. This provision shall survive termination of this Agreement. If and to the extent that any disclosure of Project Company’s confidential information, including but not limited to any information about the HZI Technology that is not readily available in the public domain, DRAFT Agreement No. A-7898
13 is compelled by Applicable Law, the City shall give Project Company as much advance written notice as is reasonably practicable prior to disclosure so that Project Company may take such action as it deems necessary to protect its confidential information and/or to prevent its disclosure by court order or otherwise.

8.5 Legal Relationship. The legal relationship of the Parties hereunder shall be contractual in nature and shall be governed by the terms of this Agreement. Nothing herein shall be construed to create a partnership or joint venture or impose the duties, obligations or liabilities associated with a partnership or joint venture on or with regard to either Party, or to create a principal/agent relationship between the Parties. Notwithstanding anything herein to the contrary, Project Company shall not have the authority to bind City to any contract or other obligation absent the agreement of City and vice versa.

8.6 Limitation of Liability. NO PARTY SHALL BE LIABLE TO THE OTHER PARTY,

WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY,

OR ANY OTHER LEGAL THEORY FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT,

EXEMPLARY OR PUNITIVE DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOSS OF

REVENUE, LOSS OF PROFIT OR LOSS OF BUSINESS OPPORTUNITY, EXCEPT IN CASES

OF FRAUD OR WILLFUL MISCONDUCT OR WHERE SUCH DAMAGES CONSTITUTE AN

ELEMENT OF A THIRD PARTY CLAIM WITH RESPECT TO WHICH A PARTY HAS INDEMNIFICATION OBLIGATIONS HEREUNDER.

8.7 Governing Law; Jury Trial Waiver.
(a) The construction, validity and performance of this Agreement shall be governed by the laws of the State of California without regard to conflict of law principles. THE PARTIES AGREE

TO SUBMIT TO THE JURISDICTION OF AND VENUE IN THE FEDERAL COURT IN LOS

ANGELES, CALIFORNIA AND THE STATE COURTS IN LOS ANGELES COUNTY,

CALIFORNIA IN ANY SUIT, ACTION OR PROCEEDING SEEKING TO ENFORCE ANY

PROVISION OF, OR BASED ON ANY MATTER ARISING OUT OF OR IN CONNECTION

WITH, THIS AGREEMENT, AND AGREE NOT TO BRING ANY SUIT, ACTION OR

PROCEEDING IN ANY OTHER FORUM OR TRIBUNAL EXCEPT WHERE APPROPRIATE TO ENFORCE THE JUDGMENT OF SUCH A COURT. EACH PARTY HEREBY IRREVOCABLY

CONSENTS TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUCH SUIT, ACTION

OR PROCEEDING BY REGISTERED OR CERTIFIED MAIL ADDRESSED AND SENT TO THE NOTICE ADDRESS SET FORTH IN SECTION 8.14.
(b) TO THE FULLEST EXTENT PERMITTED BY LAW, THE CITY AND PROJECT

COMPANY HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR

COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER

IN ANY MATTERS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, THE PROJECT AND ANY CLAIM OF INJURY OR DAMAGE.

8.8 Intellectual Property. Any disclosure to or use by City of the proprietary information, confidential information or intellectual property of Project Company or its affiliates, including the HZI Technology, shall not be considered as a transfer of title to or a license to use such information or intellectual property, and ownership of the same shall at all times remain with Project Company or the applicable affiliate. Nothing in this Agreement shall be construed as imposing an obligation of Project Company or its affiliates to share with City any information or intellectual property. In the event Project Company or the applicable affiliate discloses information or intellectual property to City, including the DRAFT Agreement No. A-7898
14 HZI Technology, City’s use of such information or intellectual property shall be limited to evaluation of the Project and performance of obligations under this Agreement and for no other purposes. IN THE

EVENT PROJECT COMPANY OR THE APPLICABLE AFFILIATE DISCLOSES

INTELLECTUAL PROPERTY UNDER THIS AGREEMENT, SUCH PARTY MAKES NO

REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, AS TO THE QUALITY,

ACCURACY, MERCHANTABILITY, VALIDITY, ENFORCEABILITY, FITNESS FOR A

PARTICULAR PURPOSE OR COMPLETENESS OF ANY INFORMATION OR INTELLECTUAL

PROPERTY, OR AS TO THE NON- INFRINGEMENT OF INFORMATION OR INTELLECTUAL

PROPERTY RIGHTS OF THIRD PARTIES, AND CITY (ON BEHALF OF ITSELF AND

REPRESENTATIVES) EXPRESSLY ACKNOWLEDGES THE INHERENT RISK OF ERROR IN

THE USE, ACQUISITION, PROCESSING AND INTERPRETATION OF INFORMATION OR INTELLECTUAL PROPERTY. PROJECT COMPANY AND ITS AFFILIATES SHALL HAVE NO

LIABILITY WHATSOEVER WITH RESPECT TO THE USE OF OR RELIANCE UPON ANY

DISCLOSED INFORMATION OR INTELLECTUAL PROPERTY BY CITY (OR ITS REPRESENTATIVES).

8.9 Assignment; Amendment. No Party may assign this Agreement without the prior written consent of the other Party; provided that Project Company shall be entitled to collaterally assign its right, title and interest in this Agreement to the financing parties advancing debt with respect to the Project. City shall enter into a Consent Agreement by and among City, Project Company and such financing parties on terms mutually agreed among such parties. Project Company shall pay all expenses reasonably incurred by City in connection with the negotiation and execution of such Consent Agreement. No waiver of or amendment to this Agreement shall be effective unless it is in writing and executed by the Parties hereto or the Party making the waiver. This Agreement sets forth the entire agreement of the Parties with respect to the subject matter hereof and any prior agreement, oral or written, is hereby superseded by this Agreement. All Article headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement.

8.10 Waiver. No failure or delay on the part of the Parties in exercising any right, power or privilege hereunder, shall operate as a waiver thereof nor shall any single or partial exercise of any right, power or privilege hereunder preclude the simultaneous or later exercise of any other right, power or privilege.

The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies which the Parties would otherwise have.

8.11 Counterparts; Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. Any such executed counterpart may be delivered electronically, by facsimile or in pdf format, and, as so delivered, shall be legally enforceable in accordance with its terms.

8.12 No Third-Party Beneficiaries. The terms and conditions of this Agreement are solely for the benefit of the Parties and no other entity or person shall have any rights hereunder; provided further that any affiliate of Project Company with an ownership interest in the HZI Technology shall be entitled to enforce the terms hereof with respect to the ownership, use, disclosure and protection of the HZI Technology.

8.13 Limitations on Agreement. Nothing in this Agreement is, or shall be interpreted to be, a commitment by the City to (a) dispose of land to Project Company, (b) issue any required permit or DRAFT Agreement No. A-7898
15 approval (land use or otherwise) or (c) perform any other acts or activities not otherwise addressed herein requiring the subsequent independent exercise of discretion by the City.

8.14 Notices. All notices or other communications required or permitted to be given pursuant to this Agreement shall be in writing and shall be considered as properly dispatched if delivered in person, sent by a nationally recognized overnight courier postage prepaid, or mailed by certified mail postage prepaid return receipt requested, to the addresses set forth below.

To Project Company:

HZI LANCASTER, LLC
Attn: Chief Executive Officer
10100 Global Way Suite 210
Knoxville TN 37932
With a copy to:

Hitachi Zosen Inova U.S.A. LLC
Attn: Legal Counsel, North America
10100 Global Way, Suite 210
Knoxville, TN 37932
To City:

City of Palmdale
Attn: City Manager
38300 Sierra Highway
Palmdale, CA 93550
[Signature page follows.]
DRAFT Agreement No. A-7898
16 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.

HZI LANCASTER, LLC
By:

Name:

Title:

By:

Name:

Title:

CITY OF PALMDALE, CA

A MUNICIPAL CORPORATION
By:

Name: Ronda Perez
Title: Interim City Manager
ATTEST:

By:

Name:

Title: City Clerk
APPROVED AS TO FORM:

By:

Name:

Title: City Attorney
DRAFT Agreement No. A-7898
17 ADDENDUM I

DEFINITIONS
“Acceptable Waste” means all of the City’s residential, commercial, industrial and other organic waste including green waste, yard waste and food waste which satisfies the specifications as set forth in Addendum II.
“Agreement” has the meaning set forth in the Preamble hereof. “Applicable Law” means any and all statutes, codes, laws, constitutions, charters, ordinances, resolutions, judgments, orders, writs, decrees, consents, guidelines, rules, requirements, actions, determinations, regulations, directives, standards, or similarly binding authorities of any governmental or judicial authority (whether federal, state, local, municipal or otherwise), whether now existing or hereafter enacted, adopted, promulgated, issued or enforced. “Claims” means claims, demands, lawsuits, causes of action, obligations, liabilities, damages, losses, costs, and/or expenses (including reasonable expenses of litigation, including court costs, expert witness fees and attorneys’ fees).
“City” has the meaning set forth in the Preamble hereof “City Indemnified Party” has the meaning set forth in Section 6.1(a). “Delivery Start Date” means the date designated by Project Company for the commencement of deliveries of Acceptable Waste at the Project after its initial commissioning period (within 6 months after Project Completion), notice of which shall be provided to the Waste Manager in accordance with the Supply Agreement.
“Effective Date” has the meaning set forth in Section 2.1. “Event of Default” has the meaning set forth in Section 5.1 and Section 5.2. “Force Majeure” means an event, condition or development beyond the reasonable control of the City or Project Company, which prevents or delays such party (the “Affected Party”) from complying with any of its obligations under this Agreement (other than an obligation to pay any monies required to be paid hereunder), including, without limitation: (i) acts of God (such as, but not limited to, fires, explosions, earthquakes, pandemics, severe weather, droughts, and floods); (ii) war, hostilities (whether war is declared or not), invasion, act of foreign enemies, mobilization, requisition, or embargo; (iii) rebellion, revolution, insurrection, military or usurped power, or civil war; (iv) riot, commotion, strikes, slow-downs, lock outs, or disorder, unless solely restricted to employees of the City or Project Company; (v) acts or omissions of the other Party; (vi) shortages of or delay in the ability to obtain qualified union labor, equipment or materials, (vii) acts or threats of terrorism; or (ix) any change in Applicable Law after the Effective Date. The Affected Party shall not be considered in breach of this Agreement to the extent that performance of its obligations is prevented or delayed by an event of Force Majeure that arises after the Effective Date. The Affected Party shall give notice to the other party of an event of Force Majeure promptly upon it becoming known to the Affected Party.

Notwithstanding the occurrence of any event of Force Majeure, the Affected Party shall continue to perform all of its remaining obligations under the Agreement, to the extent practicable, and shall use DRAFT Agreement No. A-7898
18 commercially reasonable efforts to mitigate the effects of such event of Force Majeure on its obligations under this Agreement.
“Hazardous Waste” includes waste products which exhibit characteristics for reactivity, ignitability, corrosivity, or toxicity, as defined by RCRA, as amended, as hazardous waste or is otherwise treated as hazardous under Applicable Law. By way of example and not of limitation, Hazardous Waste includes drain cleaners, latex and oil paint, motor oil, antifreeze, fuel, poisons, pesticides, herbicides and rodenticides, fluorescent lamps, lamp ballasts, smoke detectors, medical waste, some types of cleaning chemicals, and consumer electronics (such as televisions, computers, and cell phones). “Outside Date” has the meaning set forth in Section 2.1(b). “Party” or “Parties” has the meaning set forth in the Preamble hereof. “Person” means any individual, firm, corporation, general or limited partnership, company, limited liability company, trust, joint venture, union, estate, organization, association, federal, state, local, or foreign government, court of competent jurisdiction, administrative agency or commission or other governmental authority or instrumentality or self-regulatory authority, or any other similar entity. “Project” has the meaning set forth in the Recitals hereof. “Project Company” has the meaning set forth in the Preamble hereof “Project Company Indemnified Party” has the meaning set forth in Section 6.1(b). “Project Completion” means the Project has been constructed, commissioned and started-up and is capable of processing Acceptable Waste using the HZI Technology in accordance with the applicable Project documents.
“RCRA” means the Resource Conservation and Recovery Act. “Solid Waste” means solid waste materials from residential, commercial, industrial, institutional, agricultural, community, or other activities.
“Supply Agreement” has the meaning set forth in Section 3.1. “Term” has the meaning set forth in Section 2.1.
“Third Party” means any Person other than Project Company, any affiliate of Project Company, or the City.
“Third Party Claim” means any claim, demand, lawsuit, cause of action, or proceeding by a Third Party for which indemnification may be sought by a party under Article VI. “Unacceptable Waste” means anything which is not Acceptable Waste, as further set forth and defined in the specifications in Addendum II.
“Waste Management Agreement” has the meaning set forth in Section 7.1(d).

DRAFT Agreement No. A-7898
19 “Waste Manager” means one or more Third Party vendors or service providers engaged by City from time to time in connection with the treatment and processing of the City’s Acceptable Waste DRAFT Agreement No. A-7898
20 ADDENDUM II

ACCEPTABLE WASTE
Acceptable Waste (or Acceptable Feedstock) means the following; provided that such waste is of a type that the Project is permitted to accept under Applicable Law and/or any permit applicable thereto:
• Food Waste: food material resulting from the processing, storage, preparation, cooking, handling, or consumption of food. This type includes material from industrial, commercial, or residential sources. Examples include discarded meat scraps, dairy products, eggshells, fruit or vegetable peels, and other food items from homes, stores, and restaurants. This may also include limited amounts of Food Soiled Paper. This type includes grape pomace and other processed residues or material from canneries, wineries, or other industrial sources; • Leaves and Grass (Green Waste): plant material, except woody material, from industrial, commercial, or residential sources. Examples include leaves, grass clippings, plants, and seaweed. This type does not include woody material or material from agricultural sources; • Prunings and Trimmings (Green Waste): woody plant material up to 4 inches in diameter from industrial, commercial, or residential sources. Examples include prunings, shrubs, and small branches with branch diameters that do not exceed 4 inches. This type does not include stumps, tree trunks, branches exceeding 4 inches in diameter and 6 feet in length, or material from agricultural sources.

Incidentally Acceptable Waste shall be limited to [2.5%] of Acceptable Waste measured by [weight or volume] and shall mean plastic bags for food waste, plastic film, and food-soiled paper which is incidentally disposed of and included with the green and organic food waste, and which cannot be removed by Waste Manager using reasonable commercial efforts.

Unacceptable Waste (or Unacceptable Feedstock) means anything that is not Acceptable Waste and that is not compatible with any Approval or License including, but not limited to:
• Branches and Stumps - Branches and Stumps means woody plant material, branches, and stumps that exceed 4 inches in diameter and 6 feet in length, from any public or private landscape; • Manures - manure and soiled bedding materials from large domestic, farm, or ranch animals.

Examples include manure and soiled bedding from animal production operations, racetracks, riding stables, animal hospitals, and other sources. Does not include feces from small household pets such as dogs and cats;
• Textile – items made of thread, yarn, fabric, or cloth. Examples include clothes, fabric trimmings, draperies, and all natural and synthetic cloth fibers. This type does not include cloth- covered furniture, mattresses, leather shoes, leather bags, or leather belts; • Carpet – flooring applications consisting of various natural or synthetic fibers bonded to some type of backing material. This type does not include carpet padding or woven rugs with no backing; • Remainder / Composite Organic – organic material that cannot be put in any other type. This type includes items made mostly of organic materials, but combined with other material types.

Examples include leather items, cork, hemp rope, garden hoses, rubber items, hair, carpet padding, cigarette butts, diapers, feminine hygiene products, small wood products (such as Popsicle sticks and DRAFT Agreement No. A-7898
21 toothpicks), treated lumber, sawdust, agricultural crop residues, and animal feces from small household pets such as dogs and cats;
• BioSolids - Solids derived from primary, secondary or advanced treatment of sanitary; • Crop Residues - Materials generated by the production, harvesting and processing of agricultural or horticultural plants. These residues include but are not limited to stalks, stems, leaves, seed pods, husks, bagasse, and roots;
• Silviculture Waste - Residuals and by-products of cutting trees, including but not limited to tree stumps, sawdust, pallets, and lumber that has been treated chemically or with adhesives and coatings such as paint, glue, or any other visible contaminant; • Recyclable materials, either as a single material or co-mingled materials, separated or collected for recycling;
• Hazardous Waste, including any material or substance having characteristics that pose a risk or threat to public health, safety or welfare or to the environment (including any material or substance that is carcinogenic, corrosive, explosive, flammable, infectious, mutagenic, oxidizing, radioactive, teratogenic or toxic);
• liquids and slurries;
• glass;
• plastics;
• rocks;
• salts;
• chemical residues;
• explosives;
• un-shredded bulky goods;
• un-shredded mattresses;
• batteries (including car batteries);
• clinical, medical or hospital waste (including medicines and containers containing medicines, and containers that have contained medicines);
• household goods and electric goods (including white goods), such as tools, equipment (including lawn mowers);
• toys;
• sporting goods and playground equipment;
DRAFT Agreement No. A-7898
22 • e-waste, including computer equipment and mobile telephones; • hot water heaters and bathroom ware (for example baths, shower recesses and vanity cabinets); • acids and alkalis, and containers containing acids and alkalis or which have contained acids or alkalis;
• pesticides and containers containing pesticides or which have contained pesticides; • herbicides and containers containing herbicides or which have contained herbicides; • paints and solvents and containers containing either of them or which have contained either of them;
• automotive components;
• asbestos and asbestos products;
• gas cylinders;
• ammunition;
• radioactive wastes, including nuclear medicine; or
• animal mortalities.

DRAFT Agreement No. A-7898
23 ADDENDUM III

GUARANTY
This Guaranty (this “Guaranty”) is dated as of _____________ __, 202__, and is entered into by Hitachi Zosen Inova AG (“Guarantor”), in favor of the City of Palmdale, California (the “City”), to guaranty certain obligations of HZI Lancaster, LLC (“HZI”).

1. In consideration of City’s willingness to enter that certain Organic Feedstock Disposal Agreement dated on or about the date hereof by and between HZI and the City (the “OFDA”), Guarantor hereby irrevocably and unconditionally guarantees to the City the full and prompt performance of any and all obligations of HZI under the OFDA, when the same shall become due to the City under the OFDA, whether upon demand, upon declaration of termination or otherwise (the “Guaranteed Obligations”). This Guaranty is for the benefit of the City and its successors and permitted assigns, and nothing herein contained shall impair, as between the City and HZI, the obligations of HZI under the OFDA.

2. The City may at any time, and from time to time, without the consent of, or notice to Guarantor, without incurring responsibility to Guarantor and without impairing or releasing the obligations of Guarantor hereunder:
(a) exercise or refrain from exercising any rights against HZI; and (b) consent to or waive any breach of, or any act, omission or default under, the OFDA, or otherwise amend, modify or supplement the OFDA (with HZI consent).

3. Guarantor makes the following representations and warranties to the City as of the date hereof:
(a) Guarantor is a corporation duly incorporated, validly existing and in good standing under the laws of Switzerland and has all requisite power and authority to conduct its business. (b) Guarantor has full power and authority to execute and deliver this Guaranty and to perform its obligations hereunder. The execution and delivery of this Guaranty and the performance by Guarantor of its obligations hereunder have been duly authorized and approved by all necessary corporate action on the part of Guarantor and do not require any further authorization or consent of Guarantor. This Guaranty constitutes the valid and legally binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms, except to the extent such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws and equitable principles relating to or limiting creditors’ rights generally and by general principles of equity. (c) The execution and delivery by Guarantor of this Guaranty, the performance by Guarantor of its obligations hereunder and the consummation of the transactions contemplated hereby do not and will not conflict with, result in any breach or violation of, or constitute a default under (i) the organizational or governing documents of Guarantor, (ii) any law to which Guarantor is subject or by which Guarantor’s assets or properties are bound, or (iii) any material agreement, license or permit to which Guarantor is a party that is necessary for the operation of its business or the ownership or holding of its assets or properties.

DRAFT Agreement No. A-7898
24 (d) There are no proceedings pending or, to Guarantor’s knowledge, threatened before any court or administrative agency, which could reasonably be expected to be decided adversely, and which would materially adversely affect the financial condition of Guarantor or the authority of Guarantor to enter into, or the validity or enforceability of, this Guaranty. (e) As of the date hereof, and after giving effect to this Guaranty and the contingent obligation evidenced hereby, Guarantor is solvent.
(f) Guarantor has a substantial economic interest in HZI and expects to derive substantial benefits from the transactions of HZI under the OFDA.

4. Guarantor hereby unconditionally and irrevocably waives as a condition to performance by Guarantor of the Guaranteed Obligations:
(a) notices of presentment to or demand from the City with respect to the Guaranteed Obligations, and notice of default or protest or failure by HZI to perform and comply with its obligations under the OFDA;
(b) any right to require a proceeding first against HZI or any other person or the security provided by or under the OFDA;
(c) any requirement that HZI or any other person be joined as a party to any proceeding for the enforcement of any term of the OFDA; (d) the filing of claims by the City in the event of the receivership or bankruptcy of HZI;
(e) any duty on the part of the City to keep Guarantor informed of the financial condition of HZI and of any circumstances bearing on the risk of non-performance of any Guaranteed Obligations.

5. This Guaranty is a continuing guaranty of all Guaranteed Obligations arising on or after the date of this Guaranty, and all liabilities to which it applies or may apply under the terms hereof shall be conclusively presumed to have been created in reliance hereon. The obligations of Guarantor under this Guaranty are absolute and unconditional and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged or terminated by, any action or inaction by HZI other than full performance of the Guaranteed Obligations.

6. Notwithstanding anything in this Guaranty, the obligations or liability of Guarantor hereunder to the City shall not be construed as imposing greater obligations or liability on the Guarantor than are imposed on HZI under the terms of the OFDA, and Guarantor shall be entitled to all defenses, limitations and exclusions available to HZI under the OFDA and applicable law (other than defenses in respect of HZI’s insolvency or legal incapacity). Nothing in this Guaranty is intended to or will render HZI or the Guarantor liable for the same loss twice for one breach of the OFDA by HZI.

7. This Guaranty shall be binding upon Guarantor and its successors and permitted assigns. The City may not assign its rights or obligations under this Guaranty without the prior written consent of Guarantor.

DRAFT Agreement No. A-7898
25 8. Guarantor shall be in default under this Guaranty if: (i) Guarantor is in breach of any duty, obligation, representation, warranty or covenant hereunder after written notice of default and 30 days’ opportunity to cure; or (ii) Guarantor files for protection under any state or federal bankruptcy or other insolvency law, or an action shall be filed against Guarantor under any such law.

9. Neither this Guaranty nor any provision hereof may be changed, waived, discharged or terminated except pursuant to a written agreement executed by Guarantor and consented to by the City.

10. Guarantor agrees that its obligations under this Guaranty shall be unaffected by the voluntary or involuntary bankruptcy of HZI, assignment for the benefit of creditors, reorganization, or similar proceedings affecting HZI or any of its assets. If, by reason of any bankruptcy, insolvency or similar laws affecting the rights of creditors, the City is prohibited from exercising any of its rights or remedies against HZI or any of its assets, then, as between the City and Guarantor, such prohibition shall be of no force and effect, and the City shall have the right to make demand upon, and receive performance from, Guarantor of all Guaranteed Obligations that are then due to the City. Guarantor agrees that this Guaranty shall remain in full force and effect or be reinstated (as the case may be) if at any time performance of any of the Guaranteed Obligations is rescinded.

11. This Guaranty shall be interpreted and construed in accordance with the laws of the State of California, without giving effect to the rules, policies, or principles thereof with respect to conflicts of laws. Any and all disputes shall be resolved exclusively through the dispute resolution procedures set forth in the OFDA.
[Signature page follows.]
DRAFT Agreement No. A-7898
26 IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be duly executed as of the date first set forth above.

HITACHI ZOSEN INOVA AG
By:

Name:

Title:

By:

Name:

Title:

NOTICE OF PUBLIC HEARING

BY THE CITY COUNCIL OF THE CITY OF PALMDALE
A Public Hearing will be held by the City Council of the City of Palmdale in the City Hall Council Chamber, 38300 Sierra Highway, Suite B, Palmdale, California, on May 4, 2022, at 7:00 p.m. The City Council will review and consider the following items:

Adopt Resolution No. CC 2022-046, a Resolution of the City Council of the City of Palmdale authorizing the Interim City Manager and City Attorney to negotiate and execute an Organic Feedstock Disposal Agreement with HZI Lancaster, LLC.

The City Council of the City of Palmdale, California, shall hold a public hearing for the purpose of taking public comment and adopting a Resolution authorizing the Interim City Manager and City Attorney to, pending the positive results of an organics feasibility study, negotiate and execute an Organic Feedstock Disposal Agreement with HZI Lancaster, LLC for the processing of City organics and certain energy related improvements to City facilities in accordance with California Government Code Section 4217.10 to 4217.18. The City Council shall adopt findings that provide, and the Organic Feedstock Disposal Agreement shall require, that the cost to the City to implement the energy related stipulations per this contract will be less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the City in absence of the agreement.

Prior to the meeting, the public is invited to submit written comments on these matters to [email protected]. Please address correspondence to the Environmental Resources Division.

The Council Chamber will be open for public comment including public seating. Citizens are asked to practice social distancing.

Please note: 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.

If you challenge the City Council decision in court, you may be limited to raising only those issues you or someone else raised at the public meeting described in this notice, or in written correspondence delivered to the Environmental Resources Division at, or prior to, the public meeting.

Chuck Heffernan, P.E.

DIRECTOR OF PUBLIC WORKS
City Council Staff Report
DATE: MAY 4, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: 4
SUBJECT: ADOPT RESOLUTION NO. CC 2022-050, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE APPROVING THE

ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA MUNICIPAL

FINANCE AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT
NOT TO EXCEED $15,000,000 TO FINANCE AND REFINANCE A 48-

UNIT MULTIFAMILY HOUSING FACILITY FOR THE BENEFI T OF
9TH STREET E. HOUSING, LP, A CALIFORNIA LIMITED

PARTNERSHIP, OR ANOTHER ENTITY TO BE CREATED BY
MILARE HOUSING INVESTMENTS, INC. (OR AN AFFILIATE), AND

CERTAIN OTHER MATTERS RELATING THERETO
ISSUE
Adopt Resolution No. CC 20 22-050, a Resolution of the City Council of the City of Palmdale approving the issuance of revenue bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $ 15,000,000 to finance and refinance a 48-unit multifamily housing facility got the benefit of 9 th Street E. Housing, LP., a limited partnership, or another entity to be created by Milare Housing Investments, Inc. (or an affiliate), and certain other matters relating thereto.

RECOMMENDATION
Adopt Resolution No. CC 2022-050, approving a plan of finance for the issuance of the California Municipal Finance Authority revenue bonds ( Bana at Palmdale Apartments Project) in an aggregate amount not to exceed $ 15,000,000 to finance and refinance the acquisition, construction, improvement and equipping of a 48-unit multifamily rental housing facility for low-income households (the “Project”) located at 38732 9th Street E. in Palmdale, California.

BACKGROUND
Milare Housing Investments, Inc. (the “Sponsor”), on behalf of 9th Street E. Housing, LP, a California limited partnership, (the “Borrower”) has applied to the California Municipal Finance Authority (the “CMFA”) to issue tax-exempt revenue bonds in an amount not to exceed $ 15,000,000 finance and refinance the acquisition, construction, improvement and equipping of a 48 -unit multifamily rental housing facility for low -income households (the “Project”) to be owned and operated by the Borrower and located at 38732 9th Street Report to Mayor and City Council
Re: Adopt Resolution No. CC 2022-050
May 4, 2022

E. in Palmdale, California. The Project will be owned by 9 th Street E. Housing, LP (the “Borrower”) or a partnership of which Milare Housing Investments, Inc. (the “Developer”) or a related person to the Developer is the general partner.

DISCUSSION
The CMFA is a political subdivision of the state of California established under the Joint Exercise of Powers Act for the purpose of issuing tax-exempt and taxable conduit bonds for public and private entities throughout California. The CMFA is authorized to issue bonds to promote economic development and public benefit. It has issued over $25 billion of bonds for more than 330 jurisdictions within the State of California. To initiate such financing and for the Borrower to obtain financing, the City must conduct a public hearing and approve the CMFA's issuance of indebtedness.

Approval by the government jurisdiction in which the proposed facilities are located is a requirement of Section 147(f) of the Internal Revenue Code of 1986 (IRS Code).

The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

FISCAL IMPACT
CMFA is the issuer of the Bonds. The Bonds are not an obligation of the City. The City bears no cost for the issuance of the proposed Bonds and no administrative burden for ongoing reporting and disclosure.

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: Kirsten Perez, Administrative Assistant
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS

1. Resolution No. CC 2022-050

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-050

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA

MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,000,000 TO FINANCE AND REFINANCE A 48-UNIT MULTIFAMILY HOUSING FACILITY FOR THE BENEFIT OF 9TH STREET E. HOUSING, LP, A

CALIFORNIA LIMITED PARTNERSHIP, OR ANOTHER ENTITY TO BE CREATED BY MILARE HOUSING INVESTMENTS, INC. (OR AN AFFILIATE), AND CERTAIN

OTHER MATTERS RELATING THERETO
WHEREAS, Milare Housing Investments, Inc. (the “Sponsor”), on behalf of 9th Street E. Housing, LP, a California limited partnership, or another entity to be created by the Sponsor or an affiliate of the Sponsor for the purpose of owning the project described herein (such limited partnership or other entity being referred to herein as the “Borrower”), has requested that the California Municipal Finance Authority (the “Authority”) issue one or more series of revenue bonds in an aggregate principal amount not to exceed $15,000,000 (the “Bonds”), including but not limited to revenue bonds issued as part of a plan to (1) finance and refinance the acquisition, construction, improvement and equipping of a 48-unit multifamily rental housing facility for low- income households (the “Project”) to be owned and operated by the Borrower and located at 38732 9th Street E. in Palmdale, California (the “City”), and (2) pay certain expenses in connection with the issuance of the Bonds; and WHEREAS, an “applicable elected representative” of a jurisdiction in which the Project is to be located is required to approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the City Council of the City of Palmdale is the elected legislative body of the City and is an “applicable elected representative” for purposes of Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; Resolution No. CC 2022-050

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 foregoing recitals are true and correct.

SECTION 2. The City Council hereby approves the issuance of the Bonds by the Authority, including but not limited to Bonds issued as part of a plan to finance and refinance the facilities described herein. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority for the Project, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of a governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

SECTION 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party.

The City shall have no responsibility or liability whatsoever with respect to the Bonds.

SECTION 4 . The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

SECTION 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

SECTION 6 . The Clerk shall forward a certified copy of this Resolution to the Authority in care of its counsel:

Ronald E. Lee, Esq.

Jones Hall, A Professional Law Corporation
475 Sansome Street, Suite 1700
San Francisco, California 94111
SECTION 7. This resolution shall take effect immediately upon its adoption.

Resolution No. CC 2022-050

PASSED, APPROVED and ADOPTED this 4th day of May, 2022. _________________________________
APPROVED AS TO FORM: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher Beck Shanae S. Smith, City Clerk
City Attorney
I, Shanae Smith, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 4 th day of May, 2022 by the following roll call vote:

AYES: ___________________________________________________________ NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date: ___________________________ _____________________________ Shanae S. Smith, City Clerk

City Council Staff Report
DATE: MAY 4, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: 4
SUBJECT: ADOPT RESOLUTION NO. CC 2022-051, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE APPROVING THE

ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA MUNICIPAL

FINANCE AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT
NOT TO EXCEED $25,000,000 TO FINANCE AND REFINANCE A 70-

UNIT MULTIFAMILY HOUSING FACILITY FOR THE BENEFI T OF A

LIMITED PARTNERSHIP OR ANOTHER ENTITY TO BE CREATED

BY NEWPORT PARTNERS, LLC (OR AN AFFILIATE), AND CERTAIN

OTHER MATTERS RELATING THERETO
ISSUE
Adopt Resolution No. CC 20 22-051, a Resolution of the City Council of the City of Palmdale approving the issuance of revenue bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $ 25,000,000 to finance and refinance a 70-unit multifamily housing facility for the benefit of a Limited Partnership or entity to be created by Newport Partners, LLC. , (or and affiliate), and certain other matters relating thereto.

RECOMMENDATION
Adopt Resolution No. CC 2022-051, approving a plan of finance for the issuance of the California Municipal Finance Authority revenue bonds ( Juniper Valley Homes Apartments Project) in an aggregate amount not to exceed $25,000,000 to finance and refinance the acquisition, construction, improvement and equipping of a 70 -unit multifamily rental housing facility for low-income households (the “Project”) to be located on a site west of 25th Street E, south of E Avenue Q4, north of E Palmdale Boulevard and east of 22nd Street E in the City of Palmdale, California.

BACKGROUND
Newport Partners, LLC(the “Sponsor”), on behalf of a limited partnership or another entity to be created by the Sponsor or an affiliate of the Sponsor for the purpose of owning the project described herein (such limited partnership or other entity being referred to herein as the “Borrower”) has applied to the California Municipal Finance Authority (the “CMFA”) to issue tax-exempt revenue bonds in an amount not to exceed $ 25,000,000 to finance and refinance the acquisition, construction, improvement and equipping of a 70 -unit Report to Mayor and City Council
Re: Adopt Resolution No. CC 2022-051
May 4, 2022

multifamily rental housing facility for low-income households to be owned and operated by the Borrower and to be located on a site west of 25th Street E, south of E Avenue Q4, north of E Palmdale Boulevard and east of 22nd Street E in the City of Palmdale, California

DISCUSSION
The CMFA is a political subdivision of the state of California established under the Joint Exercise of Powers Act for the purpose of issuing tax-exempt and taxable conduit bonds for public and private entities throughout California. The CMFA is authorized to issue bonds to promote economic development and public benefit. It has issued over $25 billion of bonds for more than 330 jurisdictions within the State of California. To initiate such financing and for the Borrower to obtain financing, the City must conduct a public hearing and approve the CMFA's issuance of indebtedness.

Approval by the government jurisdiction in which the proposed facilities are located is a requirement of Section 147(f) of the Internal Revenue Code of 1986 (IRS Code).

The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

FISCAL IMPACT
CMFA is the issuer of the Bonds. The Bonds are not an obligation of the City. The City bears no cost for the issuance of the proposed Bonds and no administrative burden for ongoing reporting and disclosure.

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: Kirsten Perez, Administrative Assistant
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim City Manager
Approved as to form: Christopher Beck, City Attorney
Report to Mayor and City Council
Re: Adopt Resolution No. CC 2022-051
May 4, 2022

ATTACHMENTS

1. Resolution No. CC 2022-051

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-051

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA

MUNICIPAL FINANCE AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $25,000,000 TO FINANCE AND REFINANCE A 70-UNIT MULTIFAMILY

HOUSING FACILITY FOR THE BENEFIT OF A LIMITED PARTNERSHIP OR

ANOTHER ENTITY TO BE CREATED BY NEWPORT PARTNERS, LLC (OR AN

AFFILIATE), AND CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, Newport Partners, LLC (the “Sponsor”), on behalf of a limited partnership or another entity to be created by the Sponsor or an affiliate of the Sponsor for the purpose of owning the project described herein (such limited partnership or other entity being referred to herein as the “Borrower”), has requested that the California Municipal Finance Authority (the “Authority”) issue one or more series of revenue bonds in an aggregate principal amount not to exceed $25,000,000 (the “Bonds”), including but not limited to revenue bonds issued as part of a plan to (1) finance and refinance the acquisition, construction, improvement and equipping of a 70-unit multifamily rental housing facility for low-income households (the “Project”) to be owned and operated by the Borrower and to be located on a site west of 25th Street E, south of E Avenue Q4, north of E Palmdale Boulevard and east of 22nd Street E in the City of Palmdale, California (the “City”), and (2) pay certain expenses in connection with the issuance of the Bonds; and
WHEREAS, an “applicable elected representative” of a jurisdiction in which the Project is to be located is required to approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the City Council of the City (the “City Council”) is the elected legislative body of the City and is an “applicable elected representative” for purposes of Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority; Resolution No. CC 2022-051
Page of 2 of 3

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 foregoing recitals are true and correct.

SECTION 2. The City Council hereby approves the issuance of the Bonds by the Authority, including but not limited to Bonds issued as part of a plan to finance and refinance the facilities described herein. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority for the Project, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of a governmental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.

SECTION 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party.

The City shall have no responsibility or liability whatsoever with respect to the Bonds.

SECTION 4 . The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein.

SECTION 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

SECTION 6 . The Clerk shall forward a certified copy of this Resolution to the Authority in care of its counsel:

Ronald E. Lee, Esq.

Jones Hall, A Professional Law Corporation
475 Sansome Street, Suite 1700
San Francisco, California 94111
SECTION 7. This resolution shall take effect immediately upon its adoption.

Resolution No. CC 2022-051

PASSED, APPROVED and ADOPTED this 4th day of May, 2022. _________________________________
APPROVED AS TO FORM: Steven D. Hofbauer, Mayor
ATTEST:
___________________________ _________________________________ Christopher Beck Shanae S. Smith, City Clerk
City Attorney
I, Shanae Smith, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 4th day of May, 2022 by the following roll call vote:

AYES: ___________________________________________________________ NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date: ___________________________ _____________________________ Shanae S. Smith, City Clerk

City Council Staff Report
DATE: MAY 4, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY ATTORNEY’S OFFICE/CITY MANAGER’S OFFICE
DISTRICT: ALL
SUBJECT: DISCUSS A POTENTIAL AMENDMENT TO THE PALMDALE
MUNICIPAL CODE (CHAPTER 2.08.040) REGARDING REGULAR

MEETING, DATE, TIME, PLACE, AND PROVIDE DIRECTION TO
STAFF
ISSUE
Discuss a potential amendment to the Palmdale Municipal Code (Chapter 2.08.040) regarding regular meeting, date, time, place, and provide direction to staff.

RECOMMENDATION
Staff recommends that the City Council discuss the matter and provide direction to staff.

BACKGROUND
Palmdale Municipal Code 2.08.040 states that regular meetings of the City Council “will be held on the first Wednesday of each month except in January and July where regular meetings will be held on the second Wednesday of those months.” Specifically, PMC 2.08.040 states in full:

2.08.040 Regular meeting day, time and place.

Regular meetings of the City Council will be held on the first Wednesday of each month except in January and July where regular meetings will be held on the second Wednesday of those months.

Meetings of the City Council shall be held at 38300 Sierra Highway, Suite B, Palmdale, California, at 7:00 p.m. If all matters on the agenda for any regular meeting have not been considered by the City Council by the hour of 10:30 p.m., or such earlier or later time as may be fixed by a majority vote of the City Council, then the regular meeting may be adjourned to the next succeeding Wednesday, at the same time and at the same location, unless a different day, time or location is specified in the order of adjournment. When so adjourned, each adjourned meeting shall be a regular meeting for all purposes. Notice of all Report to Mayor and City Council
Re: Discuss Amendment to PMC 2.08.040
May 4, 2022

meetings of the City Council, whether regular, adjourned, special or emergency, will be given in the manner required by statute. When a regular Wednesday meeting of the City Council falls on a national or State holiday and City offices are scheduled to be closed, then such meeting shall not be held and will be deemed adjourned for all purposes with no further action required by the City Council or the City Clerk except such written notices of adjournment as may be required by law. The Ordinance codified in this section shall take effect 30 days after adoption of this Ordinance.

DISCUSSION
At the direction of the City Council, staff is bringing this item back to the City Council and requesting direction as to whether the City Council desires: (1) to move to two regular meetings a month; and (2) to amend the time of the regular meeting to 5:00 p.m.

If the City Council desires to begin the regular meeting at 5:00 p.m., staff would move the closed session to the end of the meeting.

The proposed amendment to PMC 2.08.040 would read as follows:

2.08.040 Regular meeting day, time and place.

Regular meetings of the City Council will be held on the first and third Wednesday of each month except in January and July where regular meetings will be held on the second and third Wednesday of those months. Meetings of the City Council shall be held at 38300 Sierra Highway, Suite B, Palmdale, California, at 7:00 5:00 p.m. If all matters on the agenda for any regular meeting have not been considered by the City Council by the hour of 10:30 p.m., or such earlier or later time as may be fixed by a majority vote of the City Council, then the regular meeting may be adjourned to the next succeeding Wednesday, at the same time and at the same location, unless a different day, time or location is specified in the order of adjournment. When so adjourned, each adjourned meeting shall be a regular meeting for all purposes.

Notice of all meetings of the City Council, whether regular, adjourned, special or emergency, will be given in the manner required by statute.

When a regular Wednesday meeting of the City Council falls on a national or State holiday and City offices are scheduled to be closed, then such meeting shall not be held and will be deemed adjourned for all purposes with no further action required by the City Council or the City Clerk except such written notices of adjournment as may be required by law. The Ordinance codified in this section shall take effect 30 days after adoption of this Ordinance.

Report to Mayor and City Council
Re: Discuss Amendment to PMC 2.08.040
May 4, 2022

FISCAL IMPACT
There is no fiscal impact associated with this action.

STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.

C. Involve and expand engagement to enhance public oversight and transparency.

Prepared by: Andrew S. Pletcher, Deputy City Attorney
Approved by: Ronda Perez, Interim City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS
None
City Council Staff Report
DATE: MAY 4, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY ATTORNEY’S OFFICE
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2 022-053, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE AUT HORIZING

REMOTE TELECONFERENCE MEETINGS OF THE CI TY COUNCIL

AND ALL CITY SUBORDINATE BODIES FOR THE PERIOD OF MAY
4, 2022 – JUNE 3, 2022
ISSUE
Adopt Resolution No. CC 2022-053, a Resolution of the City Council of the City Council of the City of Palmdale Authorizing Remote Teleconference Meetings of the City Council and All City Subordinate Bodies for the Period of May 4, 2022 – June 3, 2022.

RECOMMENDATION
Staff recommends that the City Council:

1. Reconsider the recitals in Resolution No. CC 2021 -102 and determine whether the COVID-19 related findings are still true and correct and relevant to proposed Resolution No. CC 2022-053.

2. If the City Council determines the recitals to not be true and correc t, take no action.

3. If the City Council determines the recitals to be true and correct, Adopt Resolution No. CC 2022-053, a Resolution of the City Council of the City of Palmdale Authorizing Remote Teleconference Meetings of the City Council and All City Subordinate Bodies for the period of May 4, 2022 – June 3, 2022.

BACKGROUND
On September 16, 2021, the Governor signed AB 361 which temporarily amends the Ralph M. Brown Act (California Government Code §§54950, et. al.) to provide more flexibility regarding participation in public meetings from a remote location.

AB 361 went into effect October 1, 2021 and expires on January 1, 2024.

Report to Mayor and City Council
Re: Resolution No. CC 2022-053
May 4, 2022

AB 361 applies to meetings during a state of emergency as declared by the Governor.

Secondarily, there must also be either imposed or recommended measures to promote social distancing by state or local officials, or a finding by the legislative body that meeting in person would present imminent risks to the health or safety of attendees because of the declared emergency.

AB 361 requires several procedural safeguards to protect public participation during a remote meeting, key ones of which are summarized as follows:

1. The public must have the ability to address the legislative body directly and must be given information on how to address the legislative body;

2. The public must be provided with either a call-in or internet-based service option;

3. The legislative body must stop the meeting if the call-in or internet-based option fails;

4. The legislative body cannot require that public comments be submitted in advance (although this option can be provided);

5. Public speakers cannot be required to pre-register for public comment (except as required by an independent call-in or internet platform);

6. Members of the public must be given a reasonable time to register to provide public comment; and

7. Agencies that provide a timed public comment period shall not close the public comment period until that time period has expired.

DISCUSSION
The proposed resolution would permit meetings pursuant to AB 361 for a maximum period of 30 days. If the City Council desires to continue using the teleconference option for public meetings beyond the initial 30-day period, it must confirm the circumstances of the state of emergency and make required findings at least 30 days after adoption of that resolution and every 30 days thereafter.

The relevant recitals found in Resolution No. CC 2021-102 that have been considered and found by the City Council to be true and correct since October 20, 2021 are:

WHEREAS, the Brown Act makes special provisions for remote teleconferencing participation in meetings when the Governor has declared a state of emergency pursuant to California Government Code § 8625, and either state or local officials have imposed or recommended measures to promote social distancing, or an in-person meeting would present imminent risks to the health and safety of attendees; and WHEREAS, such conditions now exist in the City of Palmdale.

Specifically, on March 4, 2020, Governor Gavin Newsom issued a Proclamation of a State of Emergency with regard to the COVID-19 pandemic. On March 17, 2020, the City Council of the City of Palmdale ratified the Director of Emergency Services’ proclamation of a local emergency resulting from COVID-19. Since that time, the Los Angeles Report to Mayor and City Council
Re: Resolution No. CC 2022-053
May 4, 2022

County Department of Public Health has issued numerous Health Orders regarding safety protocols during the COVID-19 pandemic, including most recently a September 28, 2021 Order (“RESPONDING TOGETHER AT WORK AND IN THE COMMUNITY”) that requires, in part, that all persons must wear face masks while in an indoor public setting and/or businesses as a precautionary measure against the spread of COVID-19 and recommends continued social distancing in public settings. This order was made necessary by the rise in the more contagious and easily spread Delta variant of the COVID-19 virus throughout the nation, and specifically in the Los Angeles County region; and
WHEREAS, the City Council of the City of Palmdale finds that the current situation with regard to COVID-19, and particularly the Delta variant, is causing, and will continue to cause, risks to the safety of persons within the City and finds that the City Council and all of its subordinate bodies shall conduct their meetings with remote participation in the manner authorized by California Government Code §54953(e), and such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed by California Government Code § 54953(e)(2).

See, Resolution No. CC 2021-102.

Because of recent legislative decisions by the City Council, City staff is requesting the City Council specifically reconsider the recitals found in Resolution No. CC 2021-102 to determine whether a finding can be made by the City Council that meeting in person would present imminent risks to the health or safety of attendees based on current COVID-19 data and Los Angeles County Department of Public Health guidance.

Should proposed Resolution No. CC 2022-053 not be adopted, the pre-COVID rules of the Ralph M. Brown Act (California Government Code §§54950, et. al.) will apply.

Should proposed Resolution No. CC 2022-053 be adopted, the Resolution would continue to permit meetings pursuant to AB 361 for a maximum period of 30 days (May 4, 2022 – June 3, 2022) without any additional changes to the currently established procedures regarding providing a teleconferencing option for public meetings of the City Council and all of its subordinate bodies.

FISCAL IMPACT
There is no fiscal impact associated with this action.

STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.

C. Involve and expand engagement to enhance public oversight and transparency.

Report to Mayor and City Council
Re: Resolution No. CC 2022-053
May 4, 2022

Prepared by: Andrew S. Pletcher, Deputy City Attorney
Approved by: Ronda Perez, Interim City Manager
Approved as to form: Christopher Beck, City Attorney

ATTACHMENTS

1. Resolution No. CC 2021-102 (Passed October 20, 2021)

2. Proposed Resolution No. CC 2022-053

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2022-053

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

AUTHORIZING REMOTE TELECONFERENCE MEETINGS OF THE

CITY COUNCIL AND ALL CITY SUBORDINATE BODIES FOR THE
PERIOD OF MAY 4, 2022 – JUNE 3, 2022
WHEREAS, the City of Palmdale is committed to preserving and fostering public access and participation in meetings of the City Council and all its subordinate bodies, as required by the Ralph M. Brown Act ( California Government Code §§54950, et. al.), so that any member of the public may attend and participate as the bodies conduct the public’s business; and
WHEREAS, the Brown Act makes special provisions for remote teleconferencing participation in meetings where the Governor has exercised his authority pursuant to California Government Code § 8625, and an in-person meeting may present imminent health risks to elected, appointed, or sitting members during public meetings; and
WHEREAS, the City Council of the City of Palmdale finds that the recitals found to be true and correct in Resolution No. CC 2021-102 (passed on October 20, 2021), incorporated herein by reference, continue to exist making remote participation in meetings important to ensure the public is given full opportunity to participate; and WHEREAS, the City Council of the City of Palmdale finds that the City Council and all of its subordinate bodies shall conduct their meetings with remote participation in the manner authorized by California Government Code §54953(e), and such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed by California Government Code § 54953(e)(2).

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 Recitals set forth above are true and correct and are incorporated herein by reference.

SECTION 2. The City Council and its subordinate bodies shall conduct their meetings with remote participation in a manner authorized by California Government Code §54953(e), and such legislative bodies shall comply with the requirements to Resolution No. CC 2022-053

provide the public with access to the meetings as prescribed by California Government Code §54953(e)(2).

SECTION 3. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of June 3, 2022, or such time as the City Council adopts a subsequent resolution in accordance with California Government Code §54953(e)(3) to extend the time during which meetings may continue to be held remotely by teleconference in compliance with that section.

SECTION 4. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED and ADOPTED this 4th day of May 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 4th day of May 2022 by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Shanae S. Smith, City Clerk

CITY OF PALMDALE

OFFICE OF THE CITY COUNCIL

M E M O R A N D U M
TO: City Clerk
FROM: Laura Bettencourt, Councilmember
SUBJECT: Monthly Informational Report – Events and Meetings DATE: May 4, 2022
During the period April 1, through April 30, 200, I attended the following meetings and events:

April 1: Vets4Veterans 5th Annual Evening of Community Support April 6: Regular Council Meeting
April 9: Rodney W. Bruce Memorial Grove Dedication
April 9: Springfest & Egg Hunt
April 18: Palmdale Recycled Water Authority (PRWA) Meeting April 20: Audit Committee Meeting
April 20: Council Workshop