Agenda packet, first session — Palmdale City Council, January 11, 2023 (part 1 of 2)

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CITY COUNCIL MEETING

REVISED

SUCCESSOR AGENCY

CITY COUNCIL CHAMBERS
38300 SIERRA HIGHWAY

SUITE B
PALMDALE, CA 93550
WEDNESDAY, JANUARY 11, 2023
5:00 PM
7:00 PM
www.cityofpalmdale.org

WELCOME
City Council
Wednesday, January 11, 2023
Please note that you are not required to complete this form or state your name and residence in order to speak. Each person addressing the Council is generally given up to three minutes to speak (with double the time allotted to non-English speakers using a translator). The amount of time authorized may be adjusted by the chair. If you wish to provide information to the Council, please present the City Clerk with 7 copies. Otherwise, your materials will simply be added to the administrative record. If you are attending the meeting by phone, please press *9 to "raise your hand." If attending by personal computer, please click the "raise your hand" button. Press *6 to un-mute yourself, state your name and begin speaking. Please note use of City Council Chamber technology equipment to present electronic material during meetings is not allowed.

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5:00 P.M.

1. CALL MEETINGS TO ORDER

2. ROLL CALL

MAYOR BETTENCOURT, MAYOR PRO TEM ALARCON, COUNCILMEMBERS

BISHOP, LOA, OHLSEN

3. PUBLIC COMMENTS ON CLOSED SESSION ITEMS
This portion of the Agenda allows an individual the opportunity to address the Council on Closed Session items ONLY.

PLEASE NOTE: In general, a three-minute time limit
will
be imposed on each speaker.

City Council
Wednesday, January 11, 2023

4. PRESENTATION BY CITY ATTORNEY

4.1 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Government Code Section 54956.9(d)(1)
John J. Murphy v. City of Palmdale
Los Angeles County Superior Court Case Number: 22STCV22544 Related City Claim Number: 2022-007

4.2 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Shanae Smith, Patricia Nevarez and Michael "Mike" Behen vs. City of Palmdale, et al.

Los Angeles County Superior Court
Case No. 22STCV18219
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

4.3 CONFERENCE WITH LABOR NEGOTIATORS
City designated representatives: Ronda Perez, Interim City Manager Unrepresented employee: City Attorney

4.4 PUBLIC EMPLOYEE PERFORMANCE EVALUATION

Title: Interim City Attorney
Name: Scott E. Porter

4.5 CONFERENCE WITH LABOR NEGOTIATORS
City representative: Scott Porter, Interim City Attorney Unrepresented employee: Ronda Perez, Interim City Manager This Closed Session is being held pursuant to the authority of California Government Code Section 54957.6

4.6 PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE

This closed session is being held pursuant to the authority of California Government Code Section 54957.

5. ANNOUNCEMENT BY CITY ATTORNEY

City Council
Wednesday, January 11, 2023

6. ADJOURN CLOSED SESSION MEETING

7:00 P.M.

7. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

8. PRESENTATION

8.1 Presentation to Mayor and Council of the Distinguished Budget Presentation Award received from the Government Finance Officers Association (GFOA).

9. WAIVER OF FULL READING OF RESOLUTION(S) and ORDINANCE(S) Staff Recommendation: Move to waive full reading of the Resolution (s) and/or Ordinance(s) to be considered and voted on at this meeting.

10. PUBLIC COMMENTS ON LISTED AGENDA ITEMS (EXCLUDING PUBLIC

HEARINGS)
If you wish to comment on any item(s) listed on the Consent Calendar and Appointment(s) section on this agenda, please come forward to the podium when called or acknowledged by the Chair and state the item number(s) and your comments.

PLEASE NOTE: In general, a three-minute time limit
will be imposed on each
speaker.

11. CONSENT CALENDAR
All matters listed under the Consent Calendar will be enacted by one motion unless an item(s) is pulled by Council/Successor Agency, in which case the item(s) will be removed from the Calendar and will be considered separately following this portion of the Agenda.

11.1 Receive and file the Monthly Investment Reports for November 2022. (Staff Reference: Director of Finance Samson)

1._Staff_Report_-_Investment_Report_Nov_2022.docx

04 November 2022 COP & Successor Agency Investment Report.pdf

11.2 Adopt Resolution No. CC 2023-006, a Resolution of the City Council of the City of Palmdale stating the City's Investment Policy and Repealing Resolution No. CC 2022-008. (Staff Reference: Director of Finance Samson)

1. Staff Report - City Investment Policy 1.11.22.docx

Reso CC 2023-006 -
Investment Policy 2023.docx

11.3 Adopt Resolution No.CC 2023-007, a Resolution of the City Council of the City of Palmdale stating the Investment Policy for City contributions to the Retiree Health Reimbursement Arrangement (HRA) plan and the Retiree Health Premium Supplement (HPS) plan and repealing Resolution No.CC 2022-009. (Staff City Council
Wednesday, January 11, 2023
Reference: Director of Finance Samson)

2. Staff Report - City Retiree Investment Policy 1.11.23.docx

Reso CC 2023-007
-
Retiree Investment Policy 2023.docx

11.4 Adopt Resolution No. SA 2023-001, a Resolution of the Successor Agency of the Community Redevelopment Agency of the City of Palmdale approving the Recognized Obligation Payment Schedule (ROPS 23-24) for the period of July 1, 2023 through June 30,2024. (Staff Reference: Director of Finance Samson)

1. Staff Report - ROPS 1.11.23.docx

2._Reso_SA_2023-001__-_Approve_ROPS_23-24.doc

Exhibit A - Palmdale Annual ROPS 23-24.pdf

11.5 Adopt Resolution No. SA 2023-002, a Resolution of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale approving the Administrative Budget for the period of July 1, 2023 through June 30, 2024 (Administrative Budget 23-24). (Staff Reference: Director of Finance Samson)

1. Staff Report - SA Adminstrative Budget 1.11.23.docx

Exhibit B - Admin Budget 23-24.pdf

2._Reso_SA_2023-002__-_Approve_Administrative_Budget_23-24.doc

11.6 Adopt Resolution CC 2023-002, a Resolution of the City Council of the City of Palmdale approving funding with the State of California Department of Veterans Affairs (Cal Vet) for AB-179 funding of $2,700,000 to the City of Palmdale Neighborhoods Services for the Homes 4 Families Housing Construction in a Veteran Enriched Neighborhood. (Staff Reference: Interim Assistant City Manager Miller - Presented by Housing Manager Reyes)

SR - CC State Funding AB179.docx

Reso_CC_2023-002_1.11.2023.docx

11.7 Adopt Resolution No. CC 2023-001, a Resolution of the City Council of the City of Palmdale authorizing the grant application, acceptance, and execution of the grant funds from the State of California Budget Act of 2021 (SB 129). (Staff Reference:

Director of Public Works Glidden)

Staff Report - Resolution 2023-001.docx

Resolution_No._CC_2023-001.docx

11.8 Approve Final Tract Map No. 82636-02 (located at the northwest corner of Rancho Vista Blvd and 15th Street West). (Staff Reference: Director of Public Works Glidden)

TR 82636-02 Approval - Staff Report.docx

TR 82636-02 - Final Mylars.pdf

11.9 Approve consultant agreement with KUTA for professional design services on PN City Council
Wednesday, January 11, 2023
839, McAdam Park Renovation, in the amount of $473,995. (Staff Reference:

Director of Public Works Glidden)

PN 839 Staff Report - Award Design KTUA.docx

KTUA-McAdam A-8166.pdf

11.10 Award construction agreement with Dash Construction Company, Inc. for PN 831, 47th St. East & Palmdale Blvd. Roundabout Landscaping Project, at the intersection of 47th St. East and Palmdale Blvd., in the amount of $204,604.45 and determine this project to be exempt from CEQA. (Staff Reference: Director of Public Works Glidden)

Staff Report - Award Construction.docx

PN 831 - Landscape Exhibit.pdf

11.11 Approve funding agreement with Caltrans to provide California Public Utilities Commission (CPUC) funds for preliminary engineering on Project STPLR- 130L(297), Avenue R & Sierra Highway Railroad Safety Project, in the amount of $550,000. (Staff Reference: Director of Public Works Glidden)

PN860 - Design Staff Report - Caltrans funding agreement.docx

Avenue R_Palmdale_Section.130.PSA_DOT.750602K_Nov.21.2022.pdf

11.12 Adopt Resolution No. CC 2023-003, a Resolution of the City Council of the City of Palmdale authorizing the budget transfer of $250,000 from Emergency Reserves, for fire and water clean up and asbestos testing of the Chimbole Cultural Center and approve Purchase Order No. 20230423 with ServPro, DBA to GLW Enterprises Inc., in the amount not to exceed $220,000. (Staff Reference: Director of Public Works Glidden)

Chimbole Staff report.docx

Resolution_2023-003.doc

Email-PO#_20230423_2023_3R.pdf

11.13 Adopt Resolution No.CC 2023-004, a Resolution of the City Council of the City of Palmdale Declaring Opposition to the City of Los Angeles Using Emergency Powers to Create a Homeless "Village" in the Palmdale Area. (Staff Reference:

Interim City Manager Perez)

SR_-_Homeless_-_for_Jan_11__2023 (1).docx

RESO_-_Homeless_-_For_Jan_11_2023_meeting.docx

11.14 Approve the minutes from the previous meetings. (Staff Reference: Acting City Clerk Scott)

CC - November 16, 2022
CC - December 1, 2022
CC/SA - December 7, 2022
CC - December 13, 2022
City Council
Wednesday, January 11, 2023

CC Minutes 11 16 2022 5pm & 7pm.pdf

CC Minutes 12 01 2022 3pm.pdf

CC_SA_HA Minutes 12 07 2022.pdf

CC Minutes 12 13 2022 6pm.pdf

12. APPOINTMENT(S)

12.1 Approve Reappointment Of Public Member To The Palmdale Recycled Water Authority. (Staff Reference: Acting City Clerk Faber)

PRWA Reappointment SR.docx

JPA_PRWA_A-4113.pdf

12.2 Discussion And Possible Action Regarding City Council Standing Committee Appointments. (Staff Reference: Acting City Clerk Faber)

CC Appointments SR.docx

13. PUBLIC HEARING

13.1 Public Hearing to obtain Resident input on community needs for the 2023-2024 Action Plan. (Staff Reference: Interim Assistant City Manager Miller - Presented by Housing Manager Reyes.)

Call for Public Testimony

Close Public Testimony

SR - CC Public Hearing Action Plan.docx

13.2 INTRODUCTION AND ADOPTION OF ORDINANCE NO. 1601, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALMDALE ADDING CHAPTER 8.06

REGARDING RECYCLING AND DIVERSION OF CONSTRUCTION AND

DEMOLITION (C&D) WASTE, AND SETTING THE INITIAL C&D ORDINANCE PERMIT FEE AMOUNT. (STAFF REFERENCE: DIRECTOR OF PUBLIC

WORKS GLIDDEN)

Staff to read the title of Ordinance No. 1601

Call for Public Testimony

Close Public Testimony

Introduce and Adopt Ordinance No. 1601

SR - Ordinance No. 1601 - C&D.docx

Ordinance No. 1601 Construction Demolition.docx

City Council
Wednesday, January 11, 2023

13.3 INTRODUCTION AND ADOPTION OF ORDINANCE NO. 1605, AN ORDINANCE

OF THE CITY COUNCIL OF THE CITY OF PALMDALE UPDATING,

CONSOLIDATING, AND STREAMLINING SELECTED PROVISIONS OF THE

PALMDALE MUNICIPAL CODE TO COMPLY WITH RECENT STATE AND

FEDERAL LAW ENACTMENTS AND DECISIONS AND PROVIDE FOR MORE

EFFICIENT ENFORCEMENT OF CODE VIOLATIONS (AMENDING PMC
SECTIONS 1.12.040, 1.20.010(A), 1.20.040(B), 1.20.100(B), 1.20.170,

5.04.190(B)(1), 5.04.200(A)(1), 5.04.200(B)(1), 5.04.240(A), 5.04.250(E),

5.04.300(B), 5.04.310(A), 5.04.310(B), 5.04.360(B), 5.04.400(L)(2)(b),

5.04.400(M)(2)(b), 5.04.460, 5.04.660(H)(4)(d), 5.04.660(I)(2), 5.05.080,

5.44.090(C)(2), 8.04.200, 8.04.530, 8.04.820, 8.04.920, 8.20.090(B), 8.24.260(A),

9.30.070(A), 9.30.090, 9.30.100, 9.46.010, 9.46.020, 9.46.030, 12.04.020,

12.04.100(G), 12.08.030, 13.11.140; ADDING PMC SECTIONS 2.08.090,

9.30.110; REPEALING AND DELETING PMC CHAPTERS 8.10, 8.36; ADDING PMC CHAPTERS 8.36, 12.28)

Staff to read the title of Ordinance No. 1605

Call for Public Testimony

Close Public Testimony

Introduce and Adopt Ordinance No. 1605

Palmdale - Ordinance Revisions - Staff Report re to Enhance Enforcement -

01.03.docx

Palmdale - Ordinance Revising PMC To Enhance Enforcement (clean) CITY CLERK.docx

13.4 INTRODUCTION AND ADOPTION OF ORDINANCE NO. 1607, AN ORDINANCE

OF THE CITY COUNCIL OF THE CITY OF PALMDALE AMENDING PALMDALE MUNICIPAL CODE SECTION 1.06.040, REMOVING THE REQUIREMENTS

FOR A NOTICED PUBLIC HEARING FOR THE ADOPTION OF ORDINANCES, AND SECTION 2.08.040 CHANGING THE REGULAR MEETING DATES OF

THE CITY COUNCIL TO THE FIRST AND THIRD THURSDAYS OF THE MONTH AT 5:00 P.M.

Staff to read the title of Ordinance No. 1607

Call for Public Testimony

Close Public Testimony

Introduce and Adopt Ordinance No. 1607

City Council
Wednesday, January 11, 2023

SR - Meeting date.docx

ORD - Meeting Date.docx

14. PUBLIC COMMENTS ON NON-AGENDA ITEMS
This portion of the Agenda allows an individual the opportunity to address the Council on any subject regarding City business not on the Agenda. Under state legislation, no action can be taken on items not specifically referenced on the Agenda and the Chair may refer you to the City Manager or staff to address your request.

PLEASE NOTE: In general, a
three-minute time limit
will be imposed on each speaker and your topic must remain relevant to items within the City's authority or purview.

15. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON

THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT

PUBLIC EXPENSE

15.1 COMMITTEE MEMBERSHIPS.

• ANTELOPE VALLEY AIR QUALITY MANAGEMENT DISTRICT
• ANTELOPE VALLEY TRANSIT AUTHORITY
• CALIFORNIA CONTRACT CITIES ASSOCIATION
• CITY OF PALMDALE AUDIT COMMITTEE
• CITY OF PALMDALE INVESTMENT OVERSIGHT COMMITTEE
• HIGH DESERT CORRIDOR JOINT POWERS AUTHORITY
• LEAGUE OF CALIFORNIA CITIES
• LOS ANGELES COUNTY SANITATION DISTRICT
• NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION
• PALMDALE RECYCLED WATER AUTHORITY
• SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS REGIONAL

COUNCIL
• UNITED STATES/MEXICO SISTER CITIES ASSOCIATION
• CALIFORNIA STATE PRISON – LOS ANGELES COUNTY, CITIZENS

ADVISORY COMMITTEE

15.2 MEETINGS ATTENDED AT PUBLIC EXPENSE

Alarcon Informational Report 011123.docx

Bettencourt Informational Report 011123.docx

Ohlsen Informational Report 011123.docx

16. CITY COUNCIL REQUESTS FOR NEW AGENDA ITEMS

City Council
Wednesday, January 11, 2023

17. CITY MANAGER’S REPORT

18. Adjourn
meeting to January 18, 2023 at 7:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

City Council
Wednesday, January 11, 2023
City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE MONTHLY INVESTMENT ACTIVITY REPORTS FOR NOVEMBER 2022
ISSUE
Receive and file the monthly investment activity reports for November 2022.

RECOMMENDATION
Staff recommends that the City Councilaccept the monthly investment activity report for City of Palmdale and Successor Agency for November 2022.

BACKGROUND
Pursuant to Section 16 of the City of Palmdale and Successor Agency Investment Policy, the City Treasurer shall prepare and present monthly and quarterly reports on investments to the City Manager/Executive Director and the City Council/Directors. The reports shall detail the type of investment, name of the issuer, purchase date, date of maturity, amount of deposit, and rate of interest. This information shall be provided for all City and Successor Agency pooled investments, as well as for Certificates of Participation, Revenue Bonds, Tax Allocation Bonds, Assessment Districts and Community Facilities District accounts which are managed by outside Fiscal Agents.

The monthly and quarterly reports provide a synopsis of the investment activity for the City of Palmdale and Successor Agency. The report s provide information on assets, allocations, average maturities, yields, and book valuations.

The interest rates presented are the most current rates a vailable as of the date of this report.

The market values presented for pooled City and Successor Agency investments are based on closing prices for the related investment as of the date of this report. This information was obtained from the Wall Street Journal, Bloomberg Financial Markets, Capital Market Finances, or other reliable source of market prices.

Report to Mayor and City Council
Re: Monthly Report on Investments
January 11, 2023

Page 2 ends

DISCUSSION
Compliance with Investment Policy
For November, the invested portfolio amount for the City of Palmdale totaled $285,640,258 a decrease of $2,648,485 from the previous month, and an increase of $54,721,939 in comparison to last year. The decrease is due to a withdrawal from LAIF COVID Relief fund during this period to cover expenditures during the quarter.

The par value of Successor Agency’s portfolio as of November was $6,125,038. The balance decreased by $38,541 from the last month due to LAIF withdrawal during the month to pay for operating expenditures.

All investments meet criteria appropriate to Section 8 of the Investment Policy. The portfolios are based on a combination of various investments, including CDs, Corporate Notes, U.S. Treasury Securities and Government Agency Paper, each adhering to portfolio percentage limitations.

The Finance Division is the custodian for the City and Successor Agency’s investment portfolio and follows the three main principles of both entity’s investment policy to 1) Investment in financial instruments that mitigate the risk of monetary losses stemming from market fluctuations; 2) Establish and maintain a portfolio that has sufficient liquidity to allow the City and Successor Agency to meet all anticipated cash requirements; and 3) Seek out investment instruments that provide a competitive market rate of return.

Liquidity
One core approach the Finance Division focuses on, is providing liquidity to measure up to the City and Successor Agency’s operational requirements. Thus, the Finance Department is currently investing in two pooled funds, LAIF and CAMP. These are intended for the daily operational activities, used for economic uncertainties and maintenance needs. The pooled funds provide a higher liquidity ratio to ensure the City and Successor Agency meet cash flow requirements.

Total LAIF balance for the City of Palmdale at the end of November is $110,271,309, a decrease of 2,679,529 due to withdrawal from LAIF investment account to cover operational expenses compared to the prior month.

Successor Agency LAIF balance at the end of November was $4,432,717, an decrease of $1,000,000 from the previous month due to withdrawal.

CAMP’s balance for City of Palmdale at the end of November is $252,167 compared to October balance of $251,360 a slight increase due to interest earned. The interest rates presented are the most current rates available as of the date of this report. As of November 30, 2022, the interest rates for LAIF and CAMP investments were at 2.01 Report to Mayor and City Council
Re: Monthly Report on Investments
January 11, 2023

Page 3 ends

percent and 3.90 percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of October were at 1.77 percent and 3.14 percent. Both rates have slightly increased within this month. This time last year, LAIF and CAMP rates were at

0.203 percent and 0.05, respectively.

The chart above shows both the Local Agency Investment Fund and California Asset Management Program’s average monthly yields beginning February 2022 through November 2022.

We anticipate that rates will begin to level off in the upcoming months, considering the current state of the economy. In recent months, CAMP shows better performance than LAIF in interest rates, however, the historical trend shows that LAIF rates generally outperform CAMP rates. The difference between the performance of the two funds is partly due to the varying pool characteristics. CAMP’s portfolio composition is much more subject to market volatility, resulting in performance variation.

Diversity
The Finance Division aims to diversify the investment portfolios to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.

City of Palmdale and Successor Agency’s investment portfolios remain strongly diversified. The monthly reports include all investments held by both entities and current book values as of November 30, 2022.

It is anticipated that both the City of Palmdale and Successor Agency will have sufficient moneys to meet its expenditure requirements for the next 6 months as we continue to

0.28% 0.37% 0.52%

0.68% 0.86%

1.09% 1.28%

1.51%

1.77% 2.01%

0.06% 0.25%

0.50% 0.82%

1.14%

1.64%

2.30% 2.61%

3.14%

3.90%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%
Feb Q3 Mar Apr May Q4 Jun Jul Aug Q1 Sep Oct Nov
Pooled Investments Monthly Yields

LAIF CAMP
Report to Mayor and City Council
Re: Monthly Report on Investments
January 11, 2023

Page 4 ends

monitor any financial impact due to the Coronavirus pandemic and the current economic conditions and the impact on interest rates.

Attached are summaries of the investments on the City of Palmdale and Successor Agency’s books as of November 30, 2022.

FISCAL IMPACT
There is no fiscal impact associated with the recommended actions for this report.

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

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

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

Prepared by: Gohar Avetisyan, Financial Analyst
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim City Manager
Approved as to form: Scott E. Porter, Interim City Attorney

ATTACHMENTS

1. Monthly Report on City of Palmdale Investments

2. Monthly Report on Successor Agency Investments

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022

PURCHASE MATURITY ACCOUNT/ FDIC INTEREST PAR PURCHASE INVESTED DATE DATE FUND INSTITUTION Number RATE AMOUNT AMOUNT AMOUNT U.S. TREASURY SECURITIES Yield
05-31-19 04-30-24 CITY 9128286R6 U.S. Treasury Note 2.03 5,000,000.00 5,051,650.00 4,938,670.00 01-19-21 05-31-23 CITY 9128284S6 U.S. Treasury Note 2.75 2,815,000.00 2,985,994.41 2,811,030.85 03-19-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 3,000,000.00 3,260,634.36 2,961,090.00 05-11-21 02-28-26 CITY 9128286F2 U.S. Treasury Note 0.66 3,000,000.00 3,261,331.50 2,945,970.00 05-11-21 12-31-24 CITY 9128283P3 U.S. Treasury Note 0.40 3,000,000.00 3,200,040.56 2,946,930.00 06-04-21 12-31-22 CITY 912828N30 U.S. Treasury Note 0.05 3,000,000.00 3,097,665.56 2,994,150.00 06-04-21 12-31-23 CITY 912828V23 U.S. Treasury Note 0.20 4,000,000.00 4,210,026.50 3,959,360.00 07-12-21 12-31-23 CITY 9128285U0 U.S. Treasury Note 2.63 5,000,000.00 5,289,959.94 4,977,950.00 07-12-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 5,000,000.00 5,451,958.35 4,935,150.00 07-12-21 12-31-23 CITY 912828V23 U.S. Treasury Note 2.25 5,000,000.00 5,244,161.50 4,949,200.00 12-17-21 12-15-23 CITY 91282CBA8 U.S. Treasury Note 0.56 10,000,000.00 9,913,130.25 9,602,000.00 12-17-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note (UBS) 0.85 10,000,000.00 10,045,505.25 9,531,600.00 12-22-21 12-15-23 CITY 91282CBA8 U.S. Treasury Note 0.56 5,000,000.00 4,957,270.88 4,801,000.00 12-22-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note 0.88 5,000,000.00 5,018,208.38 4,765,800.00 12-20-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note (Stifel) 1.00 5,000,000.00 5,017,187.50 4,765,820.00 TOTAL U.S. TREASURY SECURITIES 73,815,000.00$ 76,004,724.94$ 71,885,720.85$

GOVERNMENT AGENCY PAPER
06-05-19 06-05-23 CITY 3133EKPT7 Fed Farm Credit Bk 2.13 5,000,000.00 5,008,600.00 4,971,627.90 06-10-20 06-16-25 CITY 3133ELK37 Federal Farm Credit 0.78 5,000,000.00 5,000,000.00 4,672,635.10 08-07-20 05-06-24 CITY 3133EL2X1 Federal Farm Credit 0.42 2,000,000.00 2,000,000.00 1,905,188.04 08-27-20 11-27-24 CITY 3134GWNG7 Freddie Mac Domestic 0.50 2,000,000.00 2,000,000.00 1,885,345.78 04-01-21 04-01-25 CITY 3133EMUP5 Fed Farm Credit 0.71 5,000,000.00 5,000,000.00 4,682,977.35 05-11-21 09-04-25 CITY 3133EJYM5 FFCB Bond 0.59 1,000,000.00 1,103,275.25 999,450.00 05-11-21 09-04-25 CITY 3133EJYM5 FFCB Bond 0.57 0.57 2,000,000.00 2,208,460.00 1,998,900.00 06-04-21 11-07-25 CITY 3135G06G3 Fannie Mae 0.55 3,000,000.00 2,993,675.25 2,757,300.00 06-04-21 08-01-24 CITY 3130AMHH8 FHLB NOTE 0.41 4,000,000.00 4,000,000.00 3,809,357.72 06-07-21 06-07-24 CITY 3130AMQR6 FHLB NOTE 0.35 3,000,000.00 3,000,000.00 2,864,376.87 06-30-21 12-30-25 CITY 3130AMRQ7 FHLB NOTE 0.88 3,000,000.00 3,000,000.00 2,792,028.33 07-29-21 04-29-26 CITY 3130AN5C0 FHLB NOTE 1.05 4,000,000.00 4,010,455.13 3,730,680.00 12-17-21 11-12-25 CITY 3134GXBM5 FHLMC Note 1.15 1,150,000.00 1,125,785.50 1,055,366.50 12-17-21 12-30-24 CITY 3130AQDY6 FHLB 1.00 6,750,000.00 6,750,000.00 6,454,656.18 12-17-21 06-23-25 CITY 3133ENHW3 FFCB 1.17 10,000,000.00 10,000,000.00 9,422,494.90 12-20-21 07-30-25 CITY 3136G4ZP1 FANNIE MAE 0.65 3,500,000.00 3,444,175.00 3,255,845.57 12-20-21 09-24-25 CITY 3134GWUG9 FREDDIE MAC 0.57 10,000,000.00 9,806,600.00 9,209,435.10 12-21-21 12-22-26 CITY 3133ENJC5 FFCB 1.29 5,000,000.00 5,000,000.00 4,611,433.30 01-14-22 01-14-25 CITY 3130AQEA7 FHLB 1.05 7,000,000.00 7,000,000.00 6,656,914.81 06-29-22 08-12-25 CITY 3133EL3P7 Federal Farm Credit Bank 3.34 1,810,000.00 1,660,349.20 1,675,477.99 06-29-22 03-28-25 CITY 3130A5DH9 Federal Home Loan Bank 3.34 1,950,000.00 1,937,715.00 1,944,638.69 06-24-22 02-26-27 CITY 3130AL5A8 Federal Home Loan Bank 3.33 5,000,000.00 4,479,000.00 4,493,981.15 08-17-22 10-27-26 CITY 3134GW4C7 Freddie Mac Global Unsecured0.80 5,000,000.00 4,539,500.00 4,539,500.00 c = callable
TOTAL GOVERNMENT AGENCY PAPER 96,160,000.00$ 95,067,590.33$ 90,389,611.28$

CERTIFICATES OF DEPOSIT
05-10-18 05-10-23 CITY 61747MX30 Morgan Stanley Bank Na 32992 3.15 245,000.00 245,000.00 546,098.34 05-11-18 05-11-23 CITY 87164WWF1 Synchrony Bank 27314 3.15 245,000.00 245,000.00 246,091.97 05-11-18 05-11-23 CITY 17312QL23 Citibank Na 7213 3.15 245,000.00 245,000.00 246,091.97 05-15-18 05-15-23 CITY 20033AYE0 Comenity Capital Bank 57570 3.10 245,000.00 245,000.00 245,960.65 TOTAL CERTIFICATES OF DEPOSIT 980,000.00$ 980,000.00$ 1,284,242.93$

CITY OF PALMDALE INVESTMENTS

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022

CORPORATE NOTES
03-10-20 03-01-23 CITY 30231GAR3 Exxon Mobil 2.73 1,000,000.00 1,045,330.00 999,932.43 03-10-20 11-03-22 CITY 594918BH6 Microsoft Corp 2.65 1,000,000.00 1,047,870.00 1,000,837.38 03-10-20 01-13-23 CITY 037833DE7 Apple Inc 2.40 1,000,000.00 1,041,800.00 999,766.91 03-10-20 12-14-22 CITY 92826CAC6 VISA Inc 2.80 1,500,000.00 1,572,135.00 1,501,316.52 06-10-20 04-15-23 CITY 30231GBL5 Exxon Mobil Corp 1.75 5,000,000.00 5,000,000.00 4,950,765.95 06-10-20 05-11-23 CITY 166764BV1 Chevron Corp 1.14 2,075,000.00 2,075,000.00 2,039,686.86 TOTAL CORPORATE BONDS 11,575,000.00$ 11,782,135.00$ 11,492,306.05$

STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
09-01-84 n/a CITY ACCOUNT 98-19-620 0.78 40,321,639.35 40,321,639.35 40,321,639.35 06/23/08 n/a PCA ACCOUNT 40-19-060 0.78 37,425,685.17 37,425,685.17 37,425,685.17 n/a ARPA ACCOUNT 19-19-004 0.78 32,511,455.72 32,511,455.72 32,511,455.72 TOTAL LAIF ACCOUNTS 110,258,780.24$ 110,258,780.24$ 110,258,780.24$

CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM
6080-01 n/a CITY ACCOUNT 6080-01 0.30 252,167.20 252,167.20 252,167.20 TOTAL CAMP ACCOUNTS 252,167.20$ 252,167.20$ 252,167.20$

UBS FINANCIAL SERVICES
n/a n/a CITY ACCOUNT 0.00 77,430.27 77,430.27 77,430.27 TOTAL UBS FINANCIAL SERVICES ACCOUNTS 77,430.27$ 77,430.27$ 77,430.27$ TOTAL CITY INVESTMENTS 293,118,377.71$ 294,422,827.98$ 285,640,258.82$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022

PURCHASE MATURITY ACCOUNT INTEREST INVESTED

DATE DATE FUND NUMBER RATE AMOUNT

STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
11-20-84 n/a LIBRARY 16-19-012 0.78 12,529.63
TOTAL LIBRARY INVESTMENTS 12,529.63$

PURCHASE MATURITY ACCOUNT INTEREST INVESTED

DATE DATE FUND NUMBER RATE AMOUNT

BOND PROCEEDS
SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 05-10-95 n/a BOND 95421220 0.34 107.70
05-10-95 n/a IMPROVEMENT 95421222 0.10 156,518.27
City Held Cash(Fund 736-114000) ($255,912.67)
TOTAL SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1 156,625.97$

BOND PROCEEDS
RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-06-95 n/a RESERVE-SEN 95420880 n/a 0.00
04-06-95 n/a IMPV-ACQUI 95420884 0.01 2,611,730.29
04-06-95 n/a BOND 95420887 0.15 0.15
City Held Cash(Fund 738-114000) ($1,000,675.82)
TOTAL RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1 2,611,730.44$

BOND PROCEEDS
ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-01-19 n/a SP TAX - B BOND 242969000 0.00 99,145.57
08-01-19 n/a RESERVE 242969003 0.00 722,957.02
08-01-19 n/a SP TAX - REFUNDING BOND 242969004 0.01 15,149.75 08-01-19 n/a SP TAX - REFUNDING BOND COI242969005 0.01 300.42 City Held Cash(Fund 734-114000) $237,084.89
TOTAL ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1 837,552.76$

LIBRARY INVESTMENTS

FISCAL AGENT CASH

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022

BOND PROCEEDS
2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-02-05 n/a SPEC TRB SER A/B 790330000 0.01 0.00
08-02-05 n/a RESERVE FUND 790330002 0.01 0.00
City Held Cash(Fund 735-114000) $420,217.84
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) -$

BOND PROCEEDS
2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021 Fiscal Agent: U.S. Bank National Association (fka First Trust) n/a SPEC TRB SER A/B 251009000 0.01 227,729.07
n/a RESERVE FUND 251009001 0.01 642,342.21
City Held Cash
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021870,071.28$

BOND PROCEEDS
2006-1 Godde Hill Estate Sewer Improvements LOIB
Fiscal Agent: U.S. Bank National Association (fka First Trust) 11-08-06 n/a REDEMPTION FUND 106844000 0.01 77,544.96
11-08-06 n/a ADM EXP 106844002 0.01 1,606.11
11-08-06 n/a RESERVE FUND 106844003 0.01 100,304.67
City Held Cash(Fund 739-114000) $8,372.84
TOTAL 2006-1 Godde Hill Estate Sewer Improvements LOIB 179,455.74$

BOND PROCEEDS
2007 $19.9M COP Power Plant Land Acquisition
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-12-07 n/a LEASE PAYMENT 112055000 0.01 0.00
04-12-07 n/a RESERVE FUND 112055001 0.00 0.00
TOTAL 2007 $19.9M COP Power Plant Land Acquisition -$

BOND PROCEEDS
2007 $6.5M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-23-07 n/a BOND FUND 117856000 0.01 0.00
08-23-07 n/a RESERVE FUND 117856002 0.01 0.00
TOTAL 2007 $6.5M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) -$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022

PURCHASE MATURITY ACCOUNT INTEREST INVESTED

DATE DATE FUND NUMBER RATE AMOUNT

BOND PROCEEDS
2012 PFA $8.7M LEASE REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 12-19-12 n/a REVENUE FD 201546000 0.00 502.08
12-19-12 n/a INTEREST ACCOUNT 201546001 n/a 0.00
12-19-12 n/a PRINCIPAL ACCOUNT 201546002 n/a 0.00
TOTAL 2012 PFA $8.7M LEASE REVENUE BONDS 502.08$
2013 HA PALMDALE TRANSIT VILLAGE HOMES LLC ESCROW
Fiscal Agent: U.S. Bank National Association (fka First Trust) 10-11-13 n/a ESCROW FUND 206455000 0.00 2,979,512.65
TOTAL 2013 HA TRANSIT VILLAGE HOMES ESCROW 2,979,512.65$ 2015 HA DEBT SERVICE RESERVE
Fiscal Agent: Bank of America
11-19-15 n/a DEBT SVC RESERVE 1257964992 0.08 39,264.80 TOTAL 2015 HA DEBT SERVICE RESERVE 39,264.80$

PARS RESTRICTED CASH FOR PENSION STABILIZATION TRUST FUND 05-23-18 n/a CITY 104790895775 Public Agency Retirement Services2.60 6,024,716.06 TOTAL PARS PENSION TRUST FUND 6,024,716.06$

BOND PROCEEDS
2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 09-03-15 n/a BOND FUND 277067000 0.00 144,321.16
09-03-15 n/a INTEREST ACCT 277067001 0.01 6.95
09-03-15 n/a BOND RESERVE 277067003 0.00 281,022.06
09-03-15 n/a REPAIR & REPLACE FUND 277067004 0.00 1,165,700.78 TOTAL 2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS 1,591,050.95$

BOND PROCEEDS
2017 PFA $17.4M LEASE REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-05-17 n/a REVENUE FUND 271128000 0.00 2.39
04-05-17 n/a PRINCIPAL ACCT 271128002 n/a 0.00
TOTAL 2017 PFA $17.4M LEASE REVENUE BONDS 2.39$
Total City Held Cash (XXX-114000) ($590,912.92)
GRAND TOTAL - FISCAL AGENT CASH 14,420,413.84$

FISCAL AGENT CASH

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022
Cash on Hand 2,354,568$
Pooled Cash Investments

City: 287,601,599$
Insur Fund: ($1,961,340) 285,640,259$
Library Investments $12,530

Subtotal 288,007,357$

City/AD/CFD/PCA/PFA/HA
Fiscal Agent Cash 14,420,414$ *

Grand total 302,427,771$

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

LAIF & AIM interest rates are as of November 30, 2022.

SUMMARY OF CASH AND INVESTMENTS

Page 1 of 1 ends

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022

CITY OF PALMDALE

POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF), CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP), & UBS FINANCIAL SERVICES November 30, 2022

TRANSACTION INTEREST

DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
CITY ACCOUNT 98-19-620
Beginning Balance 40,321,639.35$

Subtotal -$ -$ -$ 40,321,639.35$ PCA ACCOUNT 40-19-060
Beginning Balance 37,425,685.17$
-$
Subtotal -$ -$ -$ 37,425,685.17$ LIBRARY ACCOUNT 16-19-012
Beginning Balance 12,529.63$
-$
Subtotal -$ -$ -$ 12,529.63$ ARPA ACCOUNT 19-19-004
Beginning Balance 35,178,455.72$
11/07/22 (2,667,000.00)$
Subtotal -$ (2,667,000.00)$ -$ 32,511,455.72$

CAMP - CALIFORNIA ASSET MANAGEMENT PROGRAM
Beginning Balance 251,360.50$
11/30/22 - $ 806.70$ Subtotal -$ -$ 806.70$ 252,167.20$ UBS Financial Services
Beginning Balance 59,722.20$
11/30/22 49,658.07 $
11/30/22 (31,950.00)$
Subtotal -$ (31,950.00)$ 49,658.07$ 77,430.27$ Total -$ (2,698,950.00)$ 50,464.77$ 110,600,907.34$ 110,348,740.14$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022
TN= US Treasury C= Call
FP= Federal Paper M= Maturity
CD= Certificate of Deposit CB= Corporate Bond
FACE

PURCHASEMATURITY REDEMPTION VALUE INTEREST NET INVESTED GAIN/

ISSUER DATE DATE DATE REDEEMED RECEIVED FUNDS AMOUNT (LOSS) -$ -$ -$ -$ $0.00 Total Number of Transactions: 0

CITY OF PALMDALE

POOLED CASH - INVESTMENTS MATURED OR CALLED
November 30, 2022

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022
TN = US Treasury
FP = Federal Paper
CD = Certificate of Deposit
CN = Corporate Notes ACCRUED
PURCHASE MATURITY FACE PREMIUM / PURCHASE INTEREST NET Yield

ISSUER DATE DATE VALUE (DISCOUNT) PRICE PURCHASED PURCHASE -$ -$
-$ -$
-$ -$
-$ -$
-$
-$ -$ -$ -$ -$ Total Number of Transactions: 0

CITY OF PALMDALE

POOLED CASH - INVESTMENTS PURCHASED
November 30, 2022

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

TREASURER'S REPORT OF INVESTMENTS
November 30, 2022

PURCHASE MATURITY ACCOUNT/ INTEREST INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT TOTAL

STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
09-01-84 n/a SA ACCOUNT 65-19-035 0.78 4,432,717.27
TOTAL LAIF ACCOUNTS 4,432,717.27$

FISCAL AGENT CASH

BOND PROCEEDS
CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) Fiscal Agent: U.S. Bank National Association
08-20-02 n/a RESERVE FUND 94460700 2.54 530,420.57
08-20-02 n/a INTEREST ACCT 94460701 0.04 644,041.27
08-20-02 n/a PRINCIPAL ACCT 94460702 0.04 325,958.65

TOTAL CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) 1,500,420.49$

BOND PROCEEDS
2016 SA $31.5M Tax Allocation Refunding Bonds Series A
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-26-16 n/a DEBT SERVICE 245113000 0.00 5.38
04-26-16 n/a INTEREST ACCT 245113001 N/A 0.00
TOTAL 2016 SA $31.5M Tax Allocation Refunding Bonds Series A 5.38$ GRAND TOTAL - FISCAL AGENT CASH $1,500,426

SUMMARY OF CASH AND INVESTMENTS
Cash on Hand 191,895$ $179,662
($2,438)
Pooled Cash Investments 4,432,717$ $14,670
$191,895
Successor Agency Fiscal Agent Cash 1,500,426$ *

Grand total 6,125,038$

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

LAIF interest rates are as of November 30, 2022.

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

TREASURER'S REPORT OF INVESTMENTS

POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF)
November 30, 2022

TRANSACTION INTEREST

DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
SA ACCOUNT 65-19-035
Beginning Balance 5,432,717.27$
11/21/22 (1,000,000.00)$
Subtotal -$ (1,000,000.00)$ -$ 4,432,717.27$ City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE - FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 202 3-006, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE STATING THE CITY’S INVESTMENT POLICY AND REPEALING RESOLUTION NO. CC
2022-008.

ISSUE
Adopt Resolution No. C C 2023-006, A Resolution of the City Council of the City of Palmdale stating the City’s Investment policy and repealing Resolution No. CC 2022-008.

RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. CC 2023-006 stating the Investment Policy for the City of Palmdale and repeal Resolution No. CC 2022-008.

BACKGROUND
The City Council adopted Resolution No. CC 2022-008 on January 12, 2022, stating the City’s Investment Policy . The City reviews the Investment Policy annually and makes changes where necessary. All changes conform to California Government Codes [53600 - 53610].

DISCUSSION
There are no changes to the Investment Policy, however, staff seeks council approval of the policy annually whether changes exist or not per California Government Code 53607, where it states that the code provides the authority for the legislative body of the local agency to invest the funds of the local agency, or to delegate the full responsibility to the treasurer of the local agency for a one-year period.

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

Report to Mayor and City Council
Re: A Resolution of the City Council of the City of Palmdale Stating the City’s Investment Policy and Repealing Resolution No. CC 2022-008.

January 11, 2023

Page 2 ends

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

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

B. Establish healthy reserves for ongoing replacement and repair of capital while stabilizing the annual spending.

C. Pursue alternative financing opportunities for continued infrastructure improvements and quality community programs.

Prepared by: Janelle Samson, Director of Finance
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim City Manager
Approved as to form: Scott E. Porter, Interim City Attorney

ATTACHMENTS
Resolution No. CC 2023-006

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2023-006

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE STATING THE CITY’S INVESTMENT POLICY AND REPEALING
RESOLUTION NO. CC 2022-008.

NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF

PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. Purpose
This Resolution states the City’s investment policy which is intended to provide guidelines to the City Treasurer for the prudent investment of the City’s temporary idle cash not otherwise governed by bond indentures or bond resolutions, and to outline policies for maximizing the efficiency of the City's cash management system. The goal is to enhance the economic status of the City while protecting its pooled cash. These guidelines do not supersede applicable State laws and City ordinances. A Glossary of investment terms is provided at the end of the resolution for reference.

SECTION 2. Scope
This investment policy applies to the investment of all cash and various funds of the City as identified in the Annual Comprehensive Financial Report, except for the employee’s retirement and deferred compensation funds and those cash assets governed by bond indentures or bond resolutions. The following is a list of funds included:

2.1 General Fund

2.2 Special Revenue Funds

2.3 Capital Project Funds

2.4 Trust and Successor Agency Funds not otherwise invested with the Trustee/Fiscal Agent
SECTION 3. Prudence
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

Page 2 of 10 ends

economic conditions and the anticipated needs of the agency when investing, reinvesting, purchasing, acquiring, exchanging, and selling or managing public funds.

3.2 The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

SECTION 4. Objectives
The City's cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City Treasurer maintains a diversified portfolio to accomplish the primary objectives of safety, liquidity, and yield (in that order of priority).

4.1 Safety: The safety/risk associated with an investment refers to the potential loss of principal, accrued interest or a combination of these. The City seeks to mitigate credit risk by continual monitoring of financial institutions with which it will do business and by careful scrutiny of the credit worthiness of the investment instruments as well as the institutions. Such resources as Moody’s Investor, Standard & Poor’s and Fitch rating services are utilized for this review. The City seeks to mitigate rate risk through diversification of instruments as well as maturities.

4.2 Liquidity: The portfolio will be structured with sufficient liquidity to allow the City to meet all anticipated cash requirements. This will be accomplished through matching maturities to expected cash needs, the State Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), and AAA/Aaa rated money market funds with immediate withdrawal provision.

4.3 Yield: A competitive market rate of return is the third objective of the investment program after the fundamental requirements of safety and liquidity have been met.

SECTION 5. Delegation of Authority
California Government Code Section 53607 provides the authority for the legislative body of the local agency to invest the funds of the local agency, or to delegate the full responsibility to the treasurer of the local agency for a one-year period. The legislative body may renew such delegation of authority to the treasurer each year.

5.1 City Council: By adoption of this policy, the City Council has authorized the City Treasurer to invest City surplus funds in accordance with California Government Code Section 53600, et. seq. and to invest Agency bond or COP proceeds in accordance with California Government Code Section 5922(d) and 53601(I). The delegation of authority to the City Treasurer shall remain in effect until it expires or is revoked, Resolution No. CC 2023-006

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whichever occurs first. The City Treasurer shall make a monthly report to the City Council of all transactions made pursuant to this delegation of authority.

5.2 City Treasurer: The execution of investment transactions on a daily basis will be conducted by the City Treasurer or may be delegated to the Deputy City Treasurer.

The City Treasurer has established a system of controls and a segregation of responsibilities of investment functions to assure maintenance of internal control over the investment function.

5.3 The City Treasurer retains the authority to amend the Investment Policy, Guidelines, and Procedures at any time in order to carry out the duties as chief investment officer for the City. Notice of any such required amendment will be given to the Investment Oversight Committee and the City Council.

SECTION 6. Ethics and Conflicts of Interest
Employees involved in the investment of City funds shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair, or appear to impair, their ability to make impartial investment decisions. The City Treasurer shall comply with the reporting requirements of the Political Reform Act of 1974 regarding disclosure of material financial interests and shall file an annual Statement of Economic Interests.

SECTION 7. Authorized Financial Dealers and Institutions

7.1 The City shall transact business only with nationally or state-chartered banks and licensed investment securities dealers. The City Treasurer shall maintain a listing of financial institutions authorized to provide investment services to the City.

7.2 Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City.

7.3 The Treasurer and the Investment Oversight Committee shall obtain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives and can provide written agreements to abide by the conditions set forth in the City of Palmdale Investment Policy. Investment accounts with all financial institutions shall be standard non-discretionary accounts and may not be margin accounts.

7.4 All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply to the Treasurer the following: audited financial statements, proof of National Association of Security Dealers certification, proof of state registration, broker/dealer questionnaire, and certification of having read the California Government Code Section 53600 et seq. and the City’s Investment policy and that all securities offered to the City shall comply fully and in every instance with all provisions of the California Government Code.

Resolution No. CC 2023-006

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7.5 The signatures of two individuals shall be required for the opening and closing of any bank account and broker account (the Treasurer or City Manager, and the Mayor or Mayor Pro Tem). The Accounting Officer, who is independent of the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shall provide this list of accounts to the City’s independent auditor.

7.6 Public deposits shall be made only in qualified public depositories within the State of California as established by State law. The Federal Deposit Insurance Corporation shall insure deposits, or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law.

7.7 Whenever possible, investment staff shall obtain a minimum of two quotations, preferably three, prior to entering into an investment transaction. Staff will buy or sell at the price that is most advantageous to the City and meets investment requirements. Treasury bills, treasury notes, and federal agency securities will only require one quotation due to minimal commissions.

SECTION 8. Authorized and Suitable Investments for Surplus Funds California Government Code Section 53601 defines eligible securities for the investment of surplus funds by local agencies. Surplus funds of the City are invested in compliance with this statute and as further limited in this Investment Policy. In any event, no security may be purchased with a remaining maturity in excess of five years without specific legislative authority.

8.1 Demand deposits of up to $2,000,000 (and $2,500,000 in the aggregate) with Bank of America or Wells Fargo Bank.

8.2 Bank of America Cash Management Sweep Agreement.

8.3 U.S. Government: United States Treasury Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. The maturity on these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.

8.4 U.S. Government: United States Federal Agency Securities are backed by the implied support of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. The maturity on these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.

8.5 Municipal Obligations: Bonds, notes, warrants, or other evidence of indebtedness of the State of California or of any local agency within the State of California.

A maximum of 10 percent may be invested in municipal obligations. The maturity on these investments shall not exceed State investment guidelines of five years without the prior approval of the Investment Oversight Committee. In addition, the issuer itself must meet the minimum State investment guidelines of having a minimum credit rating of “A” or Resolution No. CC 2023-006

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equivalent by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch).

8.6 Corporate Notes: Medium Term Corporate Notes, with a maximum maturity of five years may be purchased. Securities eligible for investment shall be rated A or better by Moody's or Standard & Poor's rating services. A maximum of 15 percent of the portfolio may be invested in medium term corporate notes.

8.7 Bankers Acceptances: Bills of exchange or time drafts drawn on and accepted by commercial banks, which are eligible for purchase by the Federal Reserve System, are known as banker’s acceptances. Purchases of these instruments may not exceed 180 bankers days maturity. A maximum of 2 percent may be invested in the bankers acceptances of any one commercial bank except the two banks listed in Section

8.1 above, in which case the limit, when aggregated with the funds in demand deposits in any one of those two banks, will not be more than 40 percent of the City's total invested funds.

8.8 Certificates of Deposit (CDs): Certificates of deposit or “time deposits” of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities. Statute does not limit CDs; however, this Investment Policy shall limit such investments to a maximum of 25 percent of the portfolio and to a maximum of 15 percent deposited in any one institution.

In addition, time deposits shall be placed in institutions meeting all capital requirements and rated” AA” or higher by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch) for any deposits over $250,000.

If a local bank does not have two ratings from two of the three rating agencies that are double AA or higher (Moody’s, Standard & Poor’s, and Fitch), then the City Treasurer will use alternative methods to determine the financial strength of the local bank when depositing over $250,000. The alternative methods will include a review of the latest three-year earnings trend and a review of the ratios showing bank capital as a percentage of weighted assets and average assets. These ratios are shown in the audited annual report for each bank and will be reviewed annually. The Federal Deposit Insurance Corporation (FDIC) issues standards for the determination of well capitalized.

Investments in local banks will be limited to banks that are well capitalized as exhibited in the audited annual report. Initial investments with local banks will be no more than $250,000. Additional amounts may be invested with local banks subject to the approval of City Council. The maximum allowable investment in any local bank will be $1,000,000.

The maximum allowable investment for local banks will be reviewed annually and may be adjusted up or down subject to City Council approval.

Investments in the CDARS program are permitted. CDARS, the Certificate of Deposit Account Registry Service, is an investment vehicle established to allow investing participants to have full federal insurance on deposits up to $50 million and to earn one Resolution No. CC 2023-006

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interest rate per deposit. A deposit is placed with a network member institution that uses CDARS to place the deposit into several certificates of deposits issued by network banks.

The maximum placed into each certificate of deposit by the network member institution is $250,000 to ensure full federal insurance by the FDIC.

8.9 Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53630, are permitted investments. Section 53601(k) further defines requirements. A maximum of 15 percent of the portfolio may be so invested in funds that have the highest rating (e.g., AAA) provided by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch).

8.10 Local Agency Investment Fund (LAIF): The Local Agency Investment Fund has been established by the State Treasurer for the benefit of local agencies. The City may invest up to the maximum permitted by the LAIF.

8.11 Capital Asset Management Program (CAMP): Pooled money market investment program has been established by California public agents (board of trustees) for the benefit of local agencies. The Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). The City may invest up to the maximum permitted by the CAMP.

8.12 Ineligible Investments: Investments not described herein, including but not limited to common stocks and financial futures contracts and options, are prohibited in this fund. Additionally, the Treasurer shall not invest in reverse floaters, range notes, or interest only strips that are derived from a pool of mortgages, nor may the Treasurer invest in any security that could result in zero interest accrued if held to maturity.

8.13 Permitted Investments Summary:

Investment Type Maximum
Maturity
Maximum
Specified % of
Portfolio
Minimum Quality
Requirements
Demand Deposits with Bank of America or
Wells Fargo Bank
N/A $2 million each or
$2.5 million in
aggregate
N/A
Overnight banks investment pools that
invest solely in Investments allowable
under this policy
N/A 10% None
U.S. Treasury bonds/notes/bills 5 years None None
U.S. Government Agency obligations 5 years None None
Resolution No. CC 2023-006

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Municipal Obligations 5 years 10% “A” rating
Bankers' acceptances 180 days 40% Federal Reserve
eligible
Certificates of deposit 5 years 25% “AA” rating above
$250,000 deposit
Mutual Funds N/A 15% “AAA” rating
Local Agency Investment Fund (LAIF) (not
to exceed $65,000,000 per account)
N/A None None
California Asset Management Program
(CAMP)
(not to exceed $65,000,000 per account)
N/A None None
SECTION 9. Authorized and Suitable Investments for Bond or COP Proceeds California Government Code Section 5922 authorizes “Investment Securities”, “Permitted Investments”, or “Qualified Investments” defined in the Bond or COP documentation for each issuance. This Code Section was enacted in recognition of the unique needs inherent in the investment of these proceeds. In addition to the investments authorized for the City’s surplus funds in Section 8 above, the bond indenture can expand the investments in accordance with the documents to include such investment instruments such as Investment Agreements as defined in the documentation as per California Government Codes 53601(l) and 5922(d).

SECTION 10. Collateral
The issue of collateral requirements is addressed in California Code Section 53652. All active and inactive deposits must be secured at all times with eligible securities in securities pools pursuant to Sections 53656 and 53657. Eligible securities held as collateral shall have a market value in excess of the total amount of all deposits of a depository as follows:
* Government securities, at least 10 percent in excess
* Mortgage-backed securities, at least 50 percent in excess * Letters of credit, at least 5 percent in excess
SECTION 11. Safekeeping and Custody
All security transactions entered by the City shall be conducted on a delivery versus payment or debit checking basis, whichever is more beneficial to the City. A third- Resolution No. CC 2023-006

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party custodian designated by the City Treasurer and evidenced by safekeeping receipts will hold securities.

SECTION 12. Diversification
To reduce portfolio risk while attaining market average rates, type and institution will suitably diversify the City’s portfolio.

12.1 Security Type and Institution: With the exception of U.S. Treasury securities, U.S. Federal Agency Securities, and authorized pools, no more than 50 percent of the total portfolio will be invested in a single security type and no more than 15 percent with a single financial institution. Investments are further limited by specific language relating to each investment type as stated in Section 8 of this Policy.

12.2 Maximum Maturities: To the extent possible, the City Treasurer will attempt to match investments with anticipated cash flow requirements. The City’s surplus portfolio will not be directly invested in securities that mature more than five years from the date of purchase. Reserve funds of bond or COP issues may be invested in instruments exceeding the five years in accordance with bond documents adopted by Council (maturity of such investments should coincide as nearly as practicable with expected use of funds).

SECTION 13. Internal Control
The City Treasurer shall provide for an annual review by an external independent auditor. This review will provide internal control by assuring compliance with the City’s investment policies and procedures.

SECTION 14. Investment Oversight Committee
There is hereby created an Investment Oversight Committee consisting of the City Manager, City Treasurer, City Attorney, one rotating Council member, and the Mayor.

Members of the Committee shall serve without additional compensation and shall meet at least quarterly to determine general strategies and to monitor results. The Committee shall include in its deliberations such topics as portfolio diversification, maturity structure, potential risks to City funds, authorized depositories, brokers and dealers, the target rate of return on investments, and such other topics as it may determine or as may be directed by the City Council. Any two members of the
Committee may request a special meeting. Four members shall constitute a quorum. The Committee shall establish its own rules of procedure. Minutes will be prepared for all Investment Committee meetings.

SECTION 15. Performance Standards
The City's investment portfolio shall be maintained to obtain a market average rate of return during various economic cycles. The rate of return will consider the City's constraints on investment risk and the City’s cash flow needs. The City's investment strategy is active. Given this strategy, the criteria applied by the City Treasurer to Resolution No. CC 2023-006

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determine whether market yields are being achieved shall be the six-month United States Treasury Bill rate.

SECTION 16. Reporting
The City Treasurer shall prepare and present a monthly report to the City Manager and the City Council. This report shall be provided for all City and Successor Agency to the Community Redevelopment Agency pooled investments, as well as for Certificates of Participation, Revenue Bonds, Tax Allocation Bonds, Assessment Districts and Community Facilities District accounts that are managed by outside Fiscal Agents. The report shall contain the following information.

16.1 Cash receipts, disbursements and balances in total.

16.2 A summary of the portfolio at month end.

16.3 Information regarding interest earnings.

16.4 Reconciliation of cash disbursements.

16.5 A statement that provides the source of the market value presented.

16.6 A statement of compliance with investment policy, including a schedule of any transactions or holdings, which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution.

16.7 A statement of the City’s ability to meet its expenditure requirements for the next six months.

16.8 Each quarter a supplement to the monthly report shall be prepared which details the following information for all City and Successor Agency to the Community Redevelopment Agency pooled investments under the management of the City.  A listing of cost and market value of the portfolio.
 A listing of individual investment transactions during the month as required by Government Code section 53607.
 A listing showing par value, cost and accurate and complete market value of each investment type of investment, issuer, interest rate, maturity date and the weighted average maturity.

SECTION 17. Investment Policy Review
In addition to the reports described in Section 16, the City Treasurer must submit annually to the City Council, and to the Investment Oversight Committee, a statement of investment policy. This statement must be reviewed by the Investment Oversight Resolution No. CC 2023-006

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Committee and considered by the City Council at a public meeting. Any change in the City’s investment policy must also be considered by the City Council at a public meeting.

SECTION 18. Repeal
Resolution No. CC 2022-008, adopted on January 12, 2022, is hereby repealed in its entirety.

SECTION 19. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED and ADOPTED this 11th day of January 2023. _________________________________
Approved as to form: Laura Bettencourt, Mayor
ATTEST:
___________________________ _________________________________ Scott E. Porter Rochelle Scott, Acting City Clerk
Interim City Attorney
I, Rochelle Scott, Acting 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 11th day of January 2023 by the following roll call vote:

GLOSSARY
AGENCIES: Federal agency securities.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of Palmdale. It includes combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BASIS POINT: A basis point equals one one-hundredth of 1% (.01%).

BID: The price offered for securities:

BOOK ENTRY SECURITIES: All U.S. Treasury and Federal Agencies are maintained on computerized records at the Federal Reserve now known as "wireable" securities.

BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.

CALIFORNIA ASSET MANAGEMENT PROGRAM: Pooled money from various California public agencies that invests in obligations of the United States Government and its agencies, high-quality, short-term debt obligations of U.S. companies and financial institutions. The Pool is a permitted investment for all local agencies under California Government Code Section 53601(p).

CDARS: The Certificate of Deposit Account Registry Service is an investment vehicle established to allow investing participants to have full federal insurance on deposits up to $50 million and to earn one interest rate per deposit. A deposit is placed with a network member institution that uses CDARS to place the deposit into several certificates of deposits issued by network banks. The maximum placed into each certificate of deposit by the network member institution is $250,000 to ensure full federal insurance by the FDIC.

COLLATERAL: Securities, evidence of deposit or other property that a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.

COMMERCIAL PAPER (CP): An unsecured promissory note with a fixed maturity no longer than 270 days. Public offerings are exempt from SEC registration. The largest issuers include General Motors Acceptance Corporation (GMAC), General Electric Capital Corporation (GECC) and other major corporations.

COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DEBENTURE: A bond secured only by the general credit of the issuer.

DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL AGENCY SECURITIES: Debt instruments issued by federal credit agencies; fully backed by the U.S. government guarantee but not by its full faith and credit.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL FUNDS: Non-interest-bearing deposits held by member banks at the Federal Reserve. Also used to denote "immediately available" funds in the clearing sense. "Fed Funds" also used to refer to these funds.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. The Federal Reserve through open-market operations currently pegs this rate.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): A U.S. Corporation and instrumentality of the U.S. government. Through its purchases of conventional mortgages, it provides liquidity to the mortgage markets, much like FNMA. FHLMC's securities are highly liquid and widely accepted. FHLMC assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks and about 5,700 commercial banks that are members of the system.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages. The term pass-throughs are often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MEDIUM TERM CORPORATE NOTE: A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIME RATE: The rate at which banks lend to their best or "prime" customers. Also known as the "reference rate."
PRUDENT PERSON RULE: An investment standard. In some states the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one which would be brought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution which does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which was segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this.

Dealers use RP extensively to finance their positions. Exception: When the Federal Reserve Bank is said to be doing RP, it is lending money that is increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the banks' vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SEC RULE 15C3-1: See uniform net capital rule.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds. This date may be the same as the trade date or later.

TRADE DATE: The date on which a transaction is initiated or entered into by the buyer and seller.

TREASURY BILL: A non-interest bearing (discount) security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years.

TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of from one to ten years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities. This is one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

WHEN-ISSUED TRADES: Typically, there is a delay between the time a new bond is announced and sold, and the time when it is actually issued. During this interval, the security trades "wi", "when, as, and if issued."
YIELD: The rate of annual income returns on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

YIELD TO MATURITY: The rate of return yielded by a debt security held to maturity when both interest payments and the investor's capital gain or loss on the security are taken into account.

City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE

FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 202 3-007, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE STATING THE

INVESTMENT POLICY FOR CITY CONTRIBUTIONS TO THE

RETIREE HEALTH REIMBURSEMENT ARRANGEMENT ( HRA)

PLAN AND THE RETIREE HEALTH PREMIUM SUPPLEMENT (HPS)
PLAN AND REPEALING RESOLUTION NO. CC 2022-009.

ISSUE
Adopt Resolution No. C C 2023-007, A Resolution of the City Council of the City of Palmdale stating the City’s Investment policy for City contributions to the Retiree H RA and the Retiree HPS Plan and repealing Resolution No. CC 2022-009.

RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. CC 202 3-007 Investment Policy for City Contributions to the Retiree HRA Plan and the Retiree HPS Plan and repeal Resolution No. CC 2022-009.

BACKGROUND
The City Council adopted Resolution No. CC 2022-009 on January 12, 2022, stating the Investment Policy for City contributions to the Retiree HRA and Retiree HPS Plan . The City reviews the Retiree Investment Policy annually and makes changes where necessary.

DISCUSSION
There are no changes to the Investment Policy, which currently conforms to California Government Codes, however, staff seeks council approval of the policy annually whether changes exist or not per California Government Code 53607, where it states that the code provides the authority for the legislative body of the local agency to invest the funds of the local agency, or to delegate the full responsibility to the treasurer of the local agency for a one-year period.

Report to Mayor and City Council
Re: A Resolution of the City Council of the City of Palmdale Stating the Investment Policy for City Contributions to the Retiree HRA Plan and the Retiree HPS Plan and Repealing Resolution No. CC 2022-009.

January 11, 2023

Page 2 ends

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

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

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

B. Establish healthy reserves for ongoing replacement and repair of capital while stabilizing the annual spending.

D. Pursue alternative financing opportunities for continued infrastructure improvements and quality community programs.

ATTACHMENTS
Resolution No. CC 2023-007

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2023-007

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

STATING THE INVESTMENT POLICY FOR CITY CONTRIBUTIONS TO

THE RETIREE HEALTH REIMBURSEMENT ARRANGEMENT (HRA)

PLAN AND THE RETIREE HEALTH PREMIUM SUPPLEMENT (HPS)
PLAN AND REPEALING RESOLUTION NO. CC 2022-009.

NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF

PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. Purpose
This Resolution states the City’s investment policy for contributions and earnings accumulated under the Retiree HRA Plan and the Retiree HPS Plan Trusts, which have been adopted by the City Council of the City of Palmdale to assist in meeting applicable funding requirements for the future payment of other post-employment benefit obligations (generally referred to as “OPEB Liability”). The Investment Policy Statement is intended to provide guidelines to the City Treasurer and the authorized Investment Advisor for the prudent investment of the City’s Retiree HRA and HPS Plan contributions and earnings.

This Investment Policy Statement shall be consistent with the governing law, including the Internal Revenue Code of 1986 as amended from time to time (the “Code”), applicable provisions of Governmental Accounting Standards Board Statement Nos. 43 and 45, California laws, including applicable provisions of the California Government Code and City ordinances. A Glossary of investment terms is provided at the end of the resolution for reference.

SECTION 2. Scope
This investment policy applies to the investment of all cash and various funds of the City as identified in the adopted budget document for the purpose of funding the City OPEB Liability.

2.1 Funding sources for this purpose will include the General Fund, Successor Agency to the Community Redevelopment Agency of the City of Palmdale Funds, and Special Revenue Funds through which participants are financed.

2.2 Participant GROUPS 1, 2, and 3 are defined in the Retiree HRS and Retiree HPS Plan documents.

2.3 Investment strategies for this purpose are as follows:
a) Participant directed investment portfolio choices (age-based custom portfolio or self-directed alternative) – This investment strategy for Resolution No. CC 2023-007

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contributions and earnings applies to the Retiree HRA Plan Trust and encompasses Group 2 Employees that elect the defined contribution option and Group 3 Employees. Employees in these Groups must have met the age and years of service requirements for vesting purposes. b) Plan Sponsor directed portfolio using a 5-year Treasury benchmark – This investment strategy for contributions and earnings applies to the Retiree HRA Plan Trust and encompasses Group 2 Employees that elect the defined contribution option and Group 3 Employees. Employees in these Groups subject to this investment strategy have not yet met the age and years of service requirements for vesting purposes.
c) Plan Sponsor directed long-term diversified portfolio – This investment strategy for contributions and earnings applies to the Retiree HPS Plan Trust and encompasses eligible Group 1 Retirees and eligible Group 2 Employees that elected the defined benefit option.

SECTION 3. Prudence
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

3.1 Governing bodies of local agencies, or persons authorized to make investment decisions on behalf of the agency, are trustees, and therefore fiduciaries subject to the prudent investor standard. The trustee is required to consider the general economic conditions and the anticipated needs of the agency when investing, reinvesting, purchasing, acquiring, exchanging, and selling or managing public funds.

SECTION 4. Objectives
The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City Treasurer and authorized Investment Advisor maintain a diversified portfolio to accomplish the primary objectives of safety, liquidity, and yield (in that order of priority).

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the institutions. Such resources as Moody’s Investor, Standard & Poor’s and Fitch rating services are utilized for this review. The City seeks to mitigate rate risk through diversification of instruments as well as maturities.

4.2 Liquidity: The portfolio will be structured with sufficient liquidity to allow the City/Agency to meet all anticipated cash requirements. This will be accomplished through matching maturities to expected cash needs and AAA/Aaa rated money market funds with immediate withdrawal provision.

4.3 Yield: A competitive market rate of return is the third objective of the investment program after the fundamental requirements of safety and liquidity have been met.

SECTION 5. Delegation of Authority
Notwithstanding Section 53601 or 53635, the governing body of a local agency may invest funds designated for the payment of retiree health benefits in any form or type of investment deemed prudent by the governing body pursuant to Section 53622.

5.1 City Council: By adoption of this policy, the City Council has authorized the City Treasurer and the authorized Investment Advisor to invest Retiree HRA and HPS Plan contributions and earnings in accordance with California Government Code Section 53622.

5.2 City Treasurer: The execution of investment transactions on a daily basis will be conducted by the authorized Investment Advisor under the direction of the City Treasurer. The City Treasurer has established a system of controls and a segregation of responsibilities of investment functions to assure maintenance of internal control over the investment function.

5.2 The City Treasurer retains the authority to amend the Investment Policy, Guidelines, and Procedures at any time in order to carry out the duties as chief investment officer for the City. Notice of any such required amendment will be given to the Investment Oversight Committee and the City Council.

SECTION 6. Ethics and Conflicts of Interest
Employees and authorized persons involved in the investment of City funds shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair, or appear to impair, their ability to make impartial investment decisions. The City Treasurer shall comply with the reporting requirements of the Political Reform Act of 1974 regarding disclosure of material financial interests, and shall file an annual Statement of Economic Interests.

SECTION 7. Authorized Financial Dealers and Institutions

Resolution No. CC 2023-007

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7.2 Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City.

7.3 The City Treasurer, the authorized Investment Advisor, and the Investment Oversight Committee shall obtain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives and can provide written agreements to abide by the conditions set forth in the City of Palmdale Investment Policy. Investment accounts with all financial institutions shall be standard non-discretionary accounts and may not be margin accounts.

7.4 The signatures of two individuals shall be required for the opening and closing of any bank account and broker account (the City Treasurer or City Manager, and the Mayor or Mayor Pro Tem). The Accounting Officer, who is independent of the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shall provide this list of accounts to the City independent auditor.

SECTION 8. Authorized and Suitable Investments for Retiree HRA and HPS Plan Contributions and Earnings
California Government Code Section 53622 defines eligible securities for the investment of retiree health benefits. Retiree HRA and HPS Plan contributions and earnings of the Trusts will be invested in compliance with this statute and as further limited by this Investment Policy.

8.1 U.S. Government: United States Treasury Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. The maturity on these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.

8.2 U.S. Government: United States Federal Agency Securities are backed by the implied support of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. The maturity on these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.

8.3 Bankers Acceptances: Bills of exchange or time drafts drawn on and accepted by commercial banks, which are eligible for purchase by the Federal Reserve System, are known as banker’s acceptances. Purchases of these instruments may not exceed 180 bankers days maturity. A maximum of 2 percent may be invested in the bankers acceptances of any one commercial bank.

8.4 Certificates of Deposit (CDs): Certificates of deposit or “time deposits” of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or Resolution No. CC 2023-007

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collateral of at least 150 percent if mortgage-backed securities. Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 30 percent of the portfolio and to a maximum of 15 percent deposited in any one institution.

In addition, time deposits shall be placed in institutions meeting all capital requirements and rated “AA” or higher by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch) for any deposits over $250,000.

8.5 Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53622. A maximum of 20 percent of the portfolio may be so invested in any individual fund.

8.6 Ineligible Investments: Investments not described herein, including but not limited to common stocks and financial futures contracts and options, are prohibited in this fund. Additionally, the City Treasurer shall not invest in reverse floaters, range notes, or interest only strips that are derived from a pool of mortgages, nor may the City Treasurer invest in any security that could result in zero interest accrued if held to maturity.

SECTION 9. Diversification
In an effort to reduce portfolio risk while attaining market average rates, type and institution will suitably diversify the Trust portfolio.

9.1 Security Type and Institution: With the exception of U.S. Treasury securities and U.S. Federal Agency Securities, no more than 50 percent of the total portfolio will be invested in a single security type and no more than 15 percent with a single financial institution. Investments are further limited by specific language relating to each investment type as stated in Section 8 of this Policy.

9.2 Maximum Maturities: To the extent possible, the City Treasurer and the authorized Investment Advisor will attempt to match investments with anticipated cash flow requirements. The Trusts’ portfolio will not be directly invested in securities that mature more than five years from the date of purchase.

9.3 Diversification Parameters:

Investment Strategy Cash Fixed income* Domestic Equities Foreign Equities Participant Directed – Self Directed Participant Driven Allocation Participant Directed – Age Based Allocation determined via actuarial age-based algorithm Plan Sponsor Directed – 5 Yr Treasury 0%-
100% 0%-100% 0%-20% 0%-10%
Plan Sponsor Directed – LT Portfolio 0%-50% 40%-60% 40%-60% 5%-20% *See Section 8 for specific fixed income category parameters Resolution No. CC 2023-007

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Domestic Equity Asset Class
Parameters Allocation
Large Cap 20%-40%
Mid Cap 10%-30%
Small Cap 5%-20%
SECTION 10. Internal Control
The City Treasurer shall provide for an annual review by an external independent auditor. This review will provide internal control by assuring compliance with the City’s investment policies and procedures.

SECTION 11. Investment Oversight Committee
There is hereby created an Investment Oversight Committee consisting of the City Manager, City Treasurer, City Attorney, one rotating Council member, and the Mayor.

Members of the Committee shall serve without additional compensation and shall meet at least quarterly to determine general strategies and to monitor results. The Committee shall include in its deliberations such topics as portfolio diversification, maturity structure, potential risks to City funds, authorized depositories, brokers and dealers, the target rate of return on investments, and such other topics as it may determine or as may be directed by the City Council Board. Any two members of the Committee may request a special meeting. Four members shall constitute a quorum. The Committee shall establish its own rules of procedure. Minutes will be prepared for all Investment Committee meetings.

SECTION 12. Performance Standards

12.1 Mutual Funds & Separate Accounts: In populating its recommended Managed Portfolio(s), the Investment Consultant can make recommendations from publicly traded mutual funds, separate accounts, and bank collective trust funds subject to the following limitations:
d) Active and Passive (Index) Investment Management will be used together. e) Minimum Investment Option Age will be 3 Years and Minimum Management Tenure (Asset Class Experience) will be 3 Years.
f) Minimum assets under management must be equal to or greater than $100 Million.
g) Published Expense Ratios must be equal to or less than 125% of peer group.

12.2 Managed Portfolio Performance Metrics: The Managed Portfolio(s) point specific return benchmark will be the S&P 500 Index and the Barclays Aggregate U.S.

Bond Index combined to create a portfolio of equivalent allocation to the Managed Portfolio being measured.

Resolution No. CC 2023-007

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12.3 Fixed Income & Structured Product Performance Metrics: To the extent that they are used in this plan’s portfolio, individual fixed income securities and/or structured products shall be monitored against mutual fund data related to intermediate bond peer group performance.

12.4 Mutual Fund & Separate Account Performance Metrics:
a) Investment out performance, over rolling periods of time, compared to peer group: One Year, Three Years, and Five Years – 50% of the time. b) Point specific investment performance relative to peer group: Percentile Rank for One Year, Three Years, and Five Years – 50% or greater. c) Point specific investment performance relative to specific asset class index over a five-year period.
d) Style Consistency will be reported as “Pass” or “Fail.” The allowable period of deviation will be two quarters.
e) Sharpe Ratio and Alpha will be equal to or greater than that of peer group.

Standard Deviation will not be applicable.

SECTION 13. Watchlist Review

13.1 While all of the Performance Metrics For Quarterly Investment Review are relevant to the subject of a Watchlist, none of them alone or in combination with others absolutely requires putting an Investment Option on Watchlist. With that caveat, the general chronology of this Investment Policy Statement’s Watchlist shall be:

Quarter Quarter Following
Formally putting an Investment Option
on Watchlist  1st
Review Watchlist Status  2nd  3rd  4th
Review Investment Option Alternatives  2nd  3rd  4th Select Investment Option Replacement  2nd  3rd  4th

13.2 An Investment Option can be removed from Watchlist status for one of three reasons:
a) The Performance Metrics For Quarterly Investment Review of an Investment Option change so that it meets the Performance Metrics; b) The Investment Committee understands why the Investment Option is not meeting a stated Performance Metric and is comfortable that the Investment Option is still meeting the objectives for which it was chosen; or c) The Investment Committee replaces the Investment Option.

SECTION 14. Reporting
The authorized Investment Advisor shall prepare on a quarterly basis reports that highlight the current portfolio allocation, time-weighted performance and any transactions Resolution No. CC 2023-007

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that occurred during the quarter. The advisor will also prepare a quarterly fiduciary review packet that analyzes the plan’s current investments to its investment policy statement.

The plan’s trust provider will also provide monthly trust reports that outline the plan’s asset allocation and any transactions that occurred during the month.

SECTION 15. Investment Policy Review
The City Treasurer must submit annually to the City Council, and to the Investment Oversight Committee, a statement of investment policy. This statement must be reviewed by the Investment Oversight Committee and considered by the City Council at a public meeting. Any change in the City’s investment policy must also be considered by the City Council at a public meeting.

SECTION 16. Repeal
Resolution No. CC 2022-009, adopted on January 12, 2022, is hereby repealed in its entirety.

SECTION 17. The City Clerk shall certify to the adoption of this resolution.

Resolution No. CC 2023-007

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PASSED, APPROVED and ADOPTED this 11th day of January 2023. _________________________________
Approved as to form: Laura Bettencourt, Mayor
ATTEST:
___________________________ _________________________________ Scott E. Porter Rochelle Scott, Acting City Clerk
Interim City Attorney
I, Rochelle Scott, Acting 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 11 th day of January 2023 by the following roll call vote:

AYES:__________________________________________________________ NOES:__________________________________________________________ ABSTAIN:____________________ABSENT: ___________________________ Date: ___________________________ ___________________________ Rochelle Scott, Acting City Clerk

GLOSSARY
AGENCIES: Federal agency securities.

ASKED: The price at which securities are offered.

BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BASIS POINT: A basis point equals one one-hundredth of 1% (.01%).

BID: The price offered for securities:

BOOK ENTRY SECURITIES: All U.S. Treasury and Federal Agencies are maintained on computerized records at the Federal Reserve now known as "wireable" securities.

COLLATERAL: Securities, evidence of deposit or other property that a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.

COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL FUNDS: Non-interest bearing deposits held by member banks at the Federal Reserve. Also used to denote "immediately available" funds in the clearing sense. "Fed Funds" also used to refer to these funds.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. The Federal Reserve through open-market operations currently pegs this rate.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. GNMA securities are backed by FHA, VA or FMHM mortgages. The term pass-throughs are often used to describe Ginnie Mae’s.

LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase--reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

PORTFOLIO: Collection of securities held by an investor.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Dealers use RP extensively to finance their positions. Exception: When the Federal Reserve Bank is said to be doing RP, it is lending money that is increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the banks' vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SEC RULE 15C3-1: See uniform net capital rule.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds. This date may be the same as the trade date or later.

TRADE DATE: The date on which a transaction is initiated or entered into by the buyer and seller.

TREASURY BILL: A non-interest bearing (discount) security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years.

TREASURY NOTES: Intermediate term coupon bearing U.S. Treasury securities having initial maturities of from one to ten years.

WHEN-ISSUED TRADES: Typically, there is a delay between the time a new bond is announced and sold, and the time when it is actually issued. During this interval, the security trades "wi", "when, as, and if issued."
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

YIELD TO MATURITY: The rate of return yielded by a debt security held to maturity when both interest payments and the investor's capital gain or loss on the security are taken into account.

Successor Agency
Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE CHAIR AND DIRECTORS
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. SA 202 3-001, A RESOLUTION OF THE

SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT

AGENCY OF THE CITY OF PALMDALE APPROVING THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 2 3-24)
FOR THE PERIOD OF JULY 1, 2023 THROUGH JUNE 30, 2024.

ISSUE
Adopt Resolution No. SA 202 3-001 a Resolut ion of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale approving the Recognized Obligation Payment Schedule (ROPS 23-24) for the period of July 1, 2023 through June 30, 2024.

RECOMMENDATION
Staff recommends that the Successor Agency to the Community Redevelopment Agency of the City of Palmdale adopt Resolution No. SA 2023-001 approving the Recognized Obligation Payment Schedule (ROPS 23-24) for the period of July 1, 2023 through June 30, 2024.

BACKGROUND
Assembly Bill 1X 26 (AB 26) was signed by the Governor on June 28, 2011 and upheld as constitutional by the California Supreme Court. On June 27, 2012, the Governor signed Assembly Bill 1484 (AB 1484). AB 26 and AB 1484 (together the Dissolution Bills) made sweeping changes to California Redevelopment Law eliminating redevelopment agencies statewide, establishing successor agencies, and requiring the successor agencies to pay, perform and enforce the enf orceable obligations of the former redevelopment agencies and to wind down the affairs of the former redevelopment agencies.

Section 34177(l) of the Dissolution Bills requires the Successor Agency to prepare a Recognized Obligation Payment Schedule (ROPS) listing the enforceable obligations of the former Redevelopment Agency . Section 34177(l) further requires that (i) the ROPS shall be submitted to the county administrative officer, the Los Angeles County Auditor - Report to Chair and Directors of the Successor Agency
Re: Adopt Resolution No. SA 2023-001 Authorizing the ROPS 23-24 January 11, 2023

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Controller (Auditor-Controller) and the State Department of Finance (Department of Finance) at the same time that the Successor Agency submits the ROPS to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for approval; (ii) the ROPS shall be submitted to and duly approved by the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board; (iii) the approved ROPS shall be posted on the Successor Agency’s website; and (iv) the approved ROPS shall be submitted to the Auditor Controller, the State Controller and the State Department of Finance.

Section 34180 of the Dissolution Bills (Section 34180) requires certain successor agency actions to be approved by the oversight board, including Section 34180(c) “Setting aside of amounts in reserves as required by indentures, trust indentures, or similar documents governing the issuance of outstanding redevelopment agency bonds.” The attached ROPS 22-23 details amounts in accordance with Section 34180(c).

The attached ROPS 23-24 also includes an enforceable obligation for the repayment of the Educational Revenue Augmentation Fund (“ERAF”) and Supplemental Educational Revenue Augmentation Fund (“SERAF”) loans borrowed from the former Redevelopment Agency’s Low and Moderate Income Housing Fund.

DISCUSSION
The attached Resolution No. SA 2023-001 seeks approval to the setting aside of funds as detailed in ROPS 23-24 in accordance with Section 34180(c) to comply with bond documents.

Resolution No. SA 2023-001 also seeks approval of ROPS 23-24, and authorization and direction for the Executive Director, or his designee, to: (i) submit the Successor Agency approved ROPS 23-24 to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its review and approval and to concurrently submit ROPS 23-24 to the county administrative officer, the Auditor-Controller and the Department of Finance; (ii) submit the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board approved ROPS 23-24 to the Auditor Controller, the State Controller, the Department of Finance and any and all other entities as necessary or appropriate; (iii) post the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board approved ROPS 23-24 on the City’s website; and (iv) take any and all other actions and execute any and all such other documents as are necessary, convenient or appropriate to comply with the Dissolution Bills, and to effectuate the intent of this Resolution on behalf of the Successor Agency.

Report to Chair and Directors of the Successor Agency
Re: Adopt Resolution No. SA 2023-001 Authorizing the ROPS 23-24 January 11, 2023

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FISCAL IMPACT
The total payments estimated during the one-year period of ROPS 23-24 is $16,348,878, of which $10,956,047 is expected to be funded by Redevelopment Property Tax Trust Funds (RPTTF) to be received from the Los Angeles County Auditor Controller (including Administrative Cost Allowance), $5,337,744 is from reserve balance funds, and $55,087 is from other funds. Amounts are budgeted in various areas of the Successor Agency and Housing Successor Agency budgets.

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

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

Prepared by: Willy Galindo, Senior Financial Analyst
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim Executive Director
Approved as to form: Scott Porter, Interim General Counsel

ATTACHMENTS
 Resolution No. SA 2023-001
 Exhibit A - Palmdale Annual ROPS 23-24

SUCCESSOR AGENCY

TO THE COMMUNITY REDEVELOPMENT AGENCY

OF THE CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. SA 2023-001

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COMMUNITY

REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 23-24) FOR THE PERIOD OF JULY 1, 2023 THROUGH JUNE 30, 2024.

WHEREAS, the Community Redevelopment Agency of the City of Palmdale (“Redevelopment Agency”) was a redevelopment agency in the City of Palmdale (“City”), duly created pursuant to the California Community Redevelopment Law (Part 1 (commencing with SECTION 33000) of Division 24 of the California Health and Safety Code) (“Redevelopment Law”); and
WHEREAS, the City Council has adopted redevelopment plans for Palmdale’s redevelopment project areas, and from time to time, the City Council has amended such redevelopment plans; and
WHEREAS, the Redevelopment Agency was responsible for the administration of redevelopment activities within the City; and
WHEREAS, Assembly Bill 1X 26 (“AB 26”) was signed by the Governor on June 28, 2011 and upheld to be constitutional by the California Supreme Court on December 29, 2011; and
WHEREAS, AB 26 made certain changes to the California Community Redevelopment Law (Part 1 (commencing with SECTION 33000) of Division 24 of the California Health and Safety Code), including adding Part 1.8 (commencing with SECTION 34161) and Part 1.85 (commencing with SECTION 34170) (“Part 1.85”) to Division 24 of the California Health and Safety Code (“Health and Safety Code”); and WHEREAS, on February 1, 2012, as a result of the Supreme Court’s decision, all California redevelopment agencies were dissolved, successor agencies were established as successor agencies to the former redevelopment agencies pursuant to Health and Safety Code SECTION 34173, and successor agencies are tasked with paying, performing and enforcing the enforceable obligations of the former redevelopment agencies and winding down the affairs of the former redevelopment agencies; and
WHEREAS, on June 27, 2012, the Governor of California signed Assembly Bill 1484 (“AB 1484”) into law, making several substantive and technical amendments to AB 26 (AB 26 and AB 1484 together referred to as the “Dissolution Bills”); and Resolution No. SA 2023-001

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WHEREAS, on January 4, 2012, the City Council adopted Resolution No. CC 2012-002 declaring itself as the Successor Agency to the Community Redevelopment Agency of the City of Palmdale (“Successor Agency”) upon the dissolution of the Redevelopment Agency; and
WHEREAS, on April 4, 2012 the City Council, acting in its capacity as the Successor Agency, adopted Resolution No. CC 2012-041 SA naming itself the “Successor Agency to the Community Redevelopment Agency of the City of Palmdale”, the sole name by which it will exercise its powers and fulfill its duties pursuant to Part

1.85 of AB 26, and establishing itself as a separate legal entity with rules and regulations that will apply to the governance and operations of the Successor Agency; and
WHEREAS, pursuant to Health and Safety Code Section 34179 (q), commencing on and after July 1, 2018, the County of Los Angeles, where more than 40 oversight boards were created by the Dissolution Act, shall have five consolidated oversight boards each encompassing the five supervisorial districts; and WHEREAS, the Fifth Supervisorial District Consolidated Oversight Board ("Fifth District Consolidated Oversight Board") has jurisdiction over the Successor Agency of the Former Redevelopment Agency to the City of Palmdale; and

WHEREAS, the Fifth District Consolidated Oversight Board held a regular/special meeting on January 12, 2023; and
WHEREAS, Health & Safety Code SECTION 34177(l) (“SECTION 34177(l)”) requires the Successor Agency to prepare, a forward-looking Recognized Obligation Payment Schedule (ROPS) listing the enforceable obligations of the former Redevelopment Agency that are due in the next annual period; and WHEREAS, SECTION 34177(l), as amended by AB 1484, also provides that (i) the ROPS shall be submitted to the county administrative officer, the Los Angeles County Auditor-Controller (“Auditor-Controller”) and the State Department of Finance (“Department of Finance”) at the same time that the Successor Agency submits the ROPS to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for approval; (ii) the ROPS shall be submitted to and duly approved by the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board; (iii) the approved ROPS shall be posted on the Successor Agency’s website; and (iv) the approved ROPS shall be submitted to the Auditor Controller, the State Controller and the State Department of Finance; and
WHEREAS, Health & Safety Code SECTION 34179.7(o)(1), requires the Successor Agency to prepare a forward looking, annual Recognized Obligation Payment Schedule (ROPS) listing the enforceable obligations of the former Redevelopment Agency that are due in the next annual period and submitting an Resolution No. SA 2023-001

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oversight board approved annual ROPS to the Department of Finance and Auditor- Controller by February 1, 2023; and
WHEREAS, Health and Safety Code SECTION 34183(a) provides that the Auditor-Controller disburse funds to successor agencies on June 1, 2023 and January 2, 2024 based on ROPS 23-24 in accordance with the prescribed order of priority and the Dissolution Bills require that such disbursements be made as and when necessary for the Successor Agency to repay and perform enforceable obligations when due; and WHEREAS, Health and Safety Code SECTION 34180 (“SECTION 34180”) requires certain successor agency actions to be approved by the oversight board, including SECTION 34180(c) “Setting aside of amounts in reserves as required by indentures, trust indentures, or similar documents governing the issuance of outstanding redevelopment agency bonds”; and
WHEREAS, the attached ROPS 23-24 (Exhibit A) details amounts in accordance with SECTION 34180(c); and
WHEREAS, SECTION 34171(d)(1)(G) of the Dissolution Act provides for the repayment, and deposit into the Low and Moderate Income Housing Asset Fund of the Authority, of funds that had been borrowed from the Redevelopment Agency’s Low and Moderate Income Housing Fund to make Educational Revenue Augmentation Fund (“ERAF”) and Supplemental Educational Revenue Augmentation Fund (“SERAF”) payments; and
WHEREAS, the Redevelopment Agency had borrowed money from its Low and Moderate Income Housing Fund for purposes of making ERAF and SERAF payments (“Loans”) and the Loans were included in the Housing Asset Transfer Form that was prepared by the Authority and submitted on August 1, 2012 to the California Department of Finance (“DOF”) as required by SECTION 34176(a)(2) of the Dissolution Act and on October 5, 2012, DOF notified the Authority that it did not object to the transfer of the Loans to the Authority; and
WHEREAS, an enforceable obligation is deemed to be created for the repayment of the ERAF & SERAF loans and shall be listed on the ROPS; and WHEREAS, the Successor Agency now desires to approve ROPS 23-24 that is attached hereto and incorporated herein by reference; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

Resolution No. SA 2023-001

Page 4 of 5 ends

NOW THEREFORE, BE IT RESOLVED, THE SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. The Board of Directors hereby finds and determines that the foregoing recitals are true and correct.

SECTION 2. The Board of Directors hereby approves the setting aside of funds as detailed in ROPS 23-24 in accordance with SECTION 34180(c) to comply with bond documents.

SECTION 3. The adoption of this Resolution is not intended to and shall not constitute a waiver by the Successor Agency of any rights the Successor Agency may have to challenge the effectiveness and/or legality of all or any portion of the Dissolution Bills through administrative or judicial proceedings.

SECTION 4. The ROPS 23-24 (Exhibit A), that is attached hereto and incorporated by reference is hereby approved and adopted.

SECTION 5. The Executive Director, or designee, is hereby authorized and directed to make any and all non-substantive changes to the approved ROPS in order to conform to any changes or to address further guidance or direction from the Department of Finance, or to address any other new information, including but not limited to new report forms, and such revised ROPS shall be considered approved by the Successor Agency.

SECTION 6. The Executive Director, or designee, is hereby authorized and directed to: (i) submit the Successor Agency approved ROPS 23-24 to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its review and approval and to concurrently submit ROPS 23-24 to the county administrative officer, the Auditor-Controller and the Department of Finance; (ii) submit the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board approved ROPS 23-24 to the Auditor Controller, the State Controller, the Department of Finance and any and all other entities as necessary or appropriate; (iii) post the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board approved ROPS 23-24 on the City’s website; and (iv) take any and all other actions and execute any and all such other documents as are necessary, convenient or appropriate to comply with the Dissolution Bills, and to effectuate the intent of this Resolution on behalf of the Successor Agency.

SECTION 7. This Resolution shall take effect immediately upon its adoption.

SECTION 8. The Agency Secretary shall certify as to the adoption of this Resolution.

Resolution No. SA 2023-001

Page 5 of 5 ends

PASSED, APPROVED and ADOPTED this 11th day of January 2023. _________________________________
Approved as to form: Laura Bettencourt, Chair
ATTEST:
___________________________ _________________________________ Scott Porter Rochelle Scott, Acting Agency Secretary
Interim General Counsel
I, Rochelle Scott, Acting Agency Secretary of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the Successor Agency at a regular meeting of said Agency held on the 11th day of January 2023 by the following roll call vote:

AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT:___________________________ Date: ______________________________ _____________________________ Rochelle Scott, Acting Agency Secretary
Recognized Obligation Payment Schedule (ROPS 23-24) - Summary Filed for the July 1, 2023 through June 30, 2024 Period Successor Agency: Palmdale
County: Los Angeles
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
23-24A Total
(July -
December)
23-24B Total
(January -
June)
ROPS 23-24
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ 5,027,831 $ 365,000 $ 5,392,831 B Bond Proceeds - - -
C Reserve Balance 4,972,744 365,000 5,337,744
D Other Funds 55,087 - 55,087
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 4,678,786 $ 6,277,261 $ 10,956,047 F RPTTF 4,366,514 6,277,261 10,643,775
G Administrative RPTTF 312,272 - 312,272
H Current Period Enforceable Obligations (A+E) $ 9,706,617 $ 6,642,261 $ 16,348,878 Certification of Oversight Board Chairman:

Name Title
Pursuant to Section 34177 (o) of the Health and Safety
code, I hereby certify that the above is a true and
accurate Recognized Obligation Payment Schedule for
the above named successor agency. /s/
Signature Date
Palmdale
Recognized Obligation Payment Schedule (ROPS 23-24) - ROPS Detail July 1, 2023 through June 30, 2024

A B C D E F G H I J K M N O P Q S U W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
23-24 Total
ROPS 23-24A (Jul - Dec)
23-24A
Total
ROPS 23-24B (Jan -
Jun)
23-24B
Total Fund Sources Fund Sources
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Reserve
Balance RPTTF
$97,346,415 $16,348,878 $4,972,744 $55,087 $4,366,514 $312,272 $9,706,617 $365,000 $6,277,261 $6,642,261 6 Loan from
Housing for
SERAF
SERAF/
ERAF
05/05/
2010
11/30/2036 Housing
Authority for
deposit into
Housing
Asset Fund
Statutory Obligation FY
2009-10 SERAF - Merged
Proj Area
Merge 2,520,491 N $250,000 - - 250,000 - $250,000 - - $- 7 Loan from
Housing for
SERAF
SERAF/
ERAF
03/02/
2011
02/28/2034 Housing
Authority for
deposit into
Housing
Asset Fund
Statutory Obligation FY
2010-11 SERAF - Proj
Area No 1
PA 1 521,581 N $- - - - - $- - - $-
8 Loan from
Housing for
SERAF
SERAF/
ERAF
03/02/
2011
11/30/2036 Housing
Authority for
deposit into
Housing
Asset Fund
Statutory Obligation FY
2010-11 SERAF - Merged
Proj Area
Merge 1,867,705 N $- - - - - $- - - $-
13 2010 Tax Alloc
Ref
Notes($27.5M)
Bonds
Issued On or
Before 12/
31/10
12/23/
1998
03/01/2026 AC Warnack
Trust/
Shaughne
S. Warnack
Trust
Notes issued for non-
housing projects
PA 1 9,997,132 N $1,375,330 - 55,087 1,320,243 - $1,375,330 - - $- 14 2010 Tax Alloc
Ref
Notes($27.5M)
Reserves 12/23/
1998
03/01/2026 AC Warnack
Trust
Bond Covenants - H&S
Code Sec 34171(d)(1)(A)
PA 1 1,375,330 N $1,375,330 - - 1,375,330 - $1,375,330 - - $- 23 2002 Tax Alloc
Bonds ($5.3M)
Bonds
Issued On or
Before 12/
31/10
08/20/
2002
12/01/2032 US Bank Bonds issued for non-
housing projects
Merge 9,510,000 N $975,000 975,000 - - - $975,000 - - $- 24 2002 Tax Alloc
Bonds ($5.3M)
Reserves 08/20/
2002
12/01/2032 US Bank Bond Covenants - H&S
Code Sec 34171(d)(1)(A)
Merge 970,000 N $970,000 - - - - $- - 970,000 $970,000
30 Bond
Administration
Fees
Fees 06/15/
1993
09/01/2034 US Bank Fiscal Agent/Trustee fees
on Bond issues
Merge 121,000 N $11,000 - - 7,000 - $7,000 - 4,000 $4,000 32 Arbitrage
Calculation
Reports
Fees 07/16/
2002
09/01/2034 BondLogistix
LLC
Arbitrage rebate calc svcs Merge 37,000 N $6,000 - - 6,000 - $6,000 - - $- 35 Bond Fees 05/24/ 09/01/2034 NBS Disclosure reporting Merge 97,000 N $7,300 - - 500 - $500 - 6,800 $6,800

Maintenance - Costs of
maintaining assets prior to
disposition, allowable by
H&S Code Sec
34171(d)(1)(F).

PA 1 - N $- - - - - $- - - $-
60 Property
Assessments
Property
Maintenance
03/31/
2004
06/30/2023 Fairway
Business
Pk-LOA
Lot Owners Assoc.

Maintenance - Costs of
maintaining assets prior to
disposition, allowable by
H&S Code Sec
34171(d)(1)(F).

PA 1 - N $- - - - - $- - - $-
61 Property
Costs-Fencing
Property
Maintenance
07/01/
2022
06/30/2023 Andy Gump
Inc
Fencing - Fairway
Business Park - Costs of
maintaining assets prior to
disposition, allowable by
H&S Code Sec
34171(d)(1)(F).

PA 1 - N $- - - - - $- - - $-
62 Property
Assessments
Property
Maintenance
07/01/
2023
06/30/2024 COP -
Streetlight
Maint Dist
Streetlight Maint. Dist.

Assessments - Costs of
maintaining assets prior to
disposition, allowable by
H&S Code Sec
34171(d)(1)(F).

PA 1 600 N $600 - - 300 - $300 - 300 $300
63 Property
Assessments
Property
Maintenance
07/01/
2022
06/30/2023 COP-
Landscape
Dist Zone 2
Landscape Maint. Dist.

Assessments - Costs of
maintaining assets prior to
disposition, allowable by
H&S Code Sec
34171(d)(1)(F).

Merge - N $- - - - - $- - - $-
65 Property Property 07/01/ 06/30/2024 CFD 05-1 Special Tax Assessment - Merge 120,000 N $120,000 - - 60,000 - $60,000 - 60,000 $60,000

PA 1 100 N $100 - - 50 - $50 - 50 $50
68 Property
Assessments -
PA 1
Property
Maintenance
07/01/
2023
06/30/2024 AV Mosquito
& Vector
Control
Mosquito Abatement
Assessments - Costs of
maintaining assets prior to
disposition, allowable by
H&S Code Sec
34171(d)(1)(F).

PA 1 20 N $20 - - 10 - $10 - 10 $10
76 DDA Transit
Vlg
Townhomes
(A-1977)

OPA/DDA/
Construction
07/10/
2007
12/31/2061 Palmdale
Transit
Village
Townhomes,
LLC
Transit Village townhome
development
Housing 65,000 N $65,000 - - - - $- 65,000 - $65,000
80 DDA Transit
Vlg
Townhomes
(A-1977)

OPA/DDA/
Construction
07/10/
2007
12/31/2061 Palmdale
Transit
Village
Townhomes,
LLC
Reimbursement to
Developer of Parks & Rec
Impact Fees
Housing 300,000 N $300,000 - - - - $- 300,000 - $300,000 160 Commission
charges
Property
Dispositions
07/01/
2021
06/30/2022 Various Costs of commission
relating to sale of
Successor Agency land to
developers
PA1/
Merge
- N $- - - - - $- - - $-
161 Escrow
Services
Property
Dispositions
07/01/
2021
06/30/2022 Various Escrow Service costs
relating to sale of
Successor Agency land to
developers
PA1/
Merge
- N $- - - - - $- - - $-
162 Title Services Property
Dispositions
07/01/
2021
06/30/2022 Various Title Service costs relating
to sale of Successor
Agency land to developers
PA1/
Merge
- N $- - - - - $- - - $-
163 Appraisal
Services
Property
Dispositions
07/01/
2022
06/30/2023 Various Appraisal Service costs
relating to sale of
Successor Agency land to
developers
PA1/
Merge
- N $- - - - - $- - - $-

A B C D E F G H I J K M N O P Q S U W
Item
# Project Name Obligation
Type
Agreement
Execution
Date
Agreement
Termination
Date
Payee Description Project
Area
Total
Outstanding
Obligation
Retired ROPS
23-24 Total
ROPS 23-24A (Jul - Dec)
23-24A
Total
ROPS 23-24B (Jan -
Jun)
23-24B
Total Fund Sources Fund Sources
Reserve
Balance
Other
Funds RPTTF Admin
RPTTF
Reserve
Balance RPTTF
170 Agency
Adminstrative
Cost
Allowance
Admin Costs 07/01/
2021
06/30/2022 City of
Palmdale
SA Overhead and
Administrative Costs
PA1/
Merge
2,964,556 N $312,272 - - - 312,272 $312,272 - - $-
175 Tax Allocation
Refunding
Bonds, 2016
Series A
Refunding
Bonds
Issued After
6/27/12
04/26/
2016
09/01/2034 US Bank Bonds issued to refund
1998, 1999 and 2003
Bonds
PA1/
Merge
24,164,312 N $2,942,250 1,868,250 - 622,750 - $2,491,000 - 451,250 $451,250 176 Tax Allocation
Refunding
Bonds, 2016
Series A
Reserves 04/26/
2016
09/01/2034 US Bank Reserve for Next ROPS
Period Debt Service per
Indenture
PA1/
Merge
1,909,688 N $1,909,688 - - - - $- - 1,909,688 $1,909,688 177 Tax Allocation
Refunding
Bonds, 2016
Series B
Refunding
Bonds
Issued After
6/27/12
06/23/
2016
09/01/2034 US Bank Bonds issued to refund
2003C, 2003D, 2004A,
2004 Sub, 2005E, 2005F
and 2009 Bonds
PA1/
Merge
38,369,187 N $3,531,275 2,129,494 - 709,831 - $2,839,325 - 691,950 $691,950 178 Tax Allocation
Refunding
Bonds, 2016
Series B
Reserves 06/23/
2016
09/01/2034 US Bank Reserve for Next ROPS
Period Debt Service per
Indenture
PA1/
Merge
2,172,713 N $2,172,713 - - - - $- - 2,172,713 $2,172,713 Palmdale
Recognized Obligation Payment Schedule (ROPS 23-24) - Report of Cash Balances July 1, 2020 through June 30, 2021
(Report Amounts in Whole Dollars)
Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation.

A B C D E F G H
ROPS 20-21 Cash Balances
(07/01/20 - 06/30/21)
Fund Sources
Comments
Bond Proceeds Reserve Balance Other Funds RPTTF
Bonds issued
on or before
12/31/10
Bonds issued
on or after
01/01/11
Prior ROPS
RPTTF and
Reserve
Balances retained
for future
period(s)
Rent, grants,
interest, etc.

Non-Admin
and Admin

1 Beginning Available Cash Balance (Actual 07/01/20)
RPTTF amount should exclude "A" period distribution
amount.
726,029 21 365,000 600,646 420,461
2 Revenue/Income (Actual 06/30/21)
RPTTF amount should tie to the ROPS 20-21 total
distribution from the County Auditor-Controller
73 37 55,087 13,420,910
3 Expenditures for ROPS 20-21 Enforceable Obligations
(Actual 06/30/21)
104,950 13,215,096
4 Retention of Available Cash Balance (Actual 06/30/21) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
726,102 58 365,000 495,696 349,987
5 ROPS 20-21 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 20-21 PPA
form submitted to the CAC
No entry required 276,288
6 Ending Actual Available Cash Balance (06/30/21)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $55,087 $- Col F applied to ROPS 23-24 Item 13 Palmdale
Recognized Obligation Payment Schedule (ROPS 23-24) - Notes July 1, 2023 through June 30, 2024
Item # Notes/Comments
6 7
8 13
14 Reserve for Debt Service due 3/1/2024
23 24 Reserve for Debt Service due 12/1/2024
30 32
35 37
39 59
60 61
62 63
65 66
68 76 Funded in a prior year and SA allowed to retain as a reserve for expenditure in 22-23B; not likely to be spent until 23-24 so included again as reserve in this ROPS 80 Funded in a prior year and SA allowed to retain as a reserve for expenditure in 22-23B; not likely to be spent until 23-24 so included again as reserve in this ROPS 160
161
162
163
170
175
176 75% of Debt Service due 9/1/2024
177
178 75% of Debt Service due 9/1/2024
Successor Agency
Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE CHAIR AND DIRECTORS
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. SA 202 3-002, A RESOLUTION OF THE

SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT

AGENCY OF THE CITY OF PALMDALE APPROVING THE
ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1, 202 3
THROUGH JUNE 30, 2024 (ADMINISTRATIVE BUDGET 23-24).

ISSUE
Adopt Resolution No. SA 202 3-002 a Resolut ion of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale approving the Administrative Budget for the Period of July 1, 202 3 through June 30, 2024 (Administrative Budget 23- 24).

RECOMMENDATION
Staff recommends that the Successor Agency to the Community Redevelopment Agency of the City of Palmdale adopt Resolution No. SA 2023-002 approving the Administrative Budget for the Period of July 1, 202 3 through June 30, 2024 (Administrative Budget 23- 24).

Section 34177(j) of the Dissolution Bills requires the Successor Agency to prepare an Administrative Budget annually and submit it to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for approval.

Report to Chair and Directors of the Successor Agency
Re: Adopt Resolution No. SA 2023-002 Authorizing the Administrative Budget 23-24 January 11, 2023

Page 2 ends

Section 34177(k) of the Dissolution Bills further requires the Successor Agency to provide the Los Angeles County Auditor-Controller the administrative cost estimates from its approved Administrative Budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund.

Health & Safety Code Section 34171(b)(3) states that commencing July 1, 2016, the administrative cost allowance shall be up to 3 percent of the actual property tax distributed to the successor agency by the county auditor-controller in the preceding fiscal year for payment of approved enforceable obligations, reduced by the successor agency’s administrative cost allowance and loan repayments made to the city pursuant to Section 34191.4(b) during the preceding fiscal year, subject to a minimum of $250,000, unless such amount is reduced by the Oversight Board or by agreement between the successor agency and the State Department of Finance (“Department of Finance”). Staff has estimated this amount and allocated it to various Successor Agency costs as detailed in Exhibit B to Resolution No. SA 2023-001.

DISCUSSION
The attached Resolution No. SA 2023-002 seeks the Successor Agency’s approval of the Administrative Budget and their authorization to i) forward the Administrative Budget to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its approval, and ii) forward the information required by Section 34177(k) to the Los Angeles County Auditor Controller, and iii) take any and all other actions and execute any and all such other documents as are necessary, convenient or appropriate to comply with the Dissolution Bills and to effectuate the intent of this Resolution on behalf of the Successor Agency.

FISCAL IMPACT
The Administrative Budget for the period of July 1, 2023 through June 30, 2024 totals $312,272. These funds will be included in various line items in Program 20 of Fund 460 in the fiscal year 2023-24 budget and are included on the Recognized Obligation Payment Schedule (ROPS). These funds will be used to reimburse the City for its staff hours Report to Chair and Directors of the Successor Agency
Re: Adopt Resolution No. SA 2023-002 Authorizing the Administrative Budget 23-24 January 11, 2023

Page 3 ends

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.

ATTACHMENTS
 Resolution No. SA 2023-002
 Exhibit B - Admin Budget 23-24
Exhibit B to Resolution No. SA 2023-002
Successor Agency to the Community Redevelopment Agency
of the City of Palmdale Administrative Budget
For the Period of July 1, 2023 through June 30, 2024

Successor
Agency
MUNIS Item Fund 460
701000 -
708000Salaries & Benefits 190,244$
City Manager's Office Hours Rate
City Manager 35 507 $ 17,750$
Assistant City Manager 50 406 $ 20,281$
Director of Finance 70 237 $ 16,613$
Senior Financial Analyst 110 184 $ 20,203$
Senior Account Clerk 135 123 $ 16,569$
City Attorney's Office
City Attorney 30 349 $ 10,480$
Assistant City Attorney 45 296 $ 13,308$
Senior Administrative Assistant 80 133 $ 10,613$ City Clerk's Office -$
City Clerk 80 209 $ 16,683$
Deputy City Clerk 120 133 $ 15,919$
Economic Development
Director of Economic Development 50 248 $ 12,395$ Economic Development Manager 55 209 $ 11,470$
Senior Administrative Assistant 60 133 $ 7,959$
721110 Cont Svc - Agency Attorney 20,000$
721960 Cont Svc-Professional Svcs 13,700$
722310 Cont Svc - Legal Advertising 4,500$
723410 Cont Svc-Landscape Maintenance 706$
722450Cont Svc - Document Center & Copier Lease 636$
726500 Postage 300$
729100 Utilities - Water 300$
731000 Utilities - Gas 550$
731700 Utilities - Electric 19,000$
831101 Rent 37,500$
Total 287,436$
Administrative Allowance 312,272$
Excess Allowance to be used for potential overages 24,836$ Source of Funding:

Redevelopment Property Tax Trust Fund

SUCCESSOR AGENCY

TO THE COMMUNITY REDEVELOPMENT AGENCY

OF THE CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. SA 2023-002

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COMMUNITY

REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE

APPROVING THE ADMINISTRATIVE BUDGET FOR THE PERIOD OF
JULY 1, 2023 THROUGH JUNE 30, 2024 (ADMINISTRATIVE BUDGET 22-23)
WHEREAS, The Community Redevelopment Agency of the City of Palmdale (“Redevelopment Agency”) was a redevelopment agency in the City of Palmdale (“City”), duly created pursuant to the California Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code) (“Redevelopment Law”); and
WHEREAS, The City Council has adopted redevelopment plans for Palmdale’s redevelopment project areas, and from time to time, the City Council has amended such redevelopment plans; and
WHEREAS, The Redevelopment Agency was responsible for the administration of redevelopment activities within the City; and WHEREAS, Assembly Bill 1X 26 (“AB 26”) was signed by the Governor on June 28, 2011 and upheld to be constitutional by the California Supreme Court on December 29, 2011; and
WHEREAS, AB 26 made certain changes to the California Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the California Health and Safety Code), including adding Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section 34170) (“Part 1.85”) to Division 24 of the California Health and Safety Code (“Health and Safety Code”); and WHEREAS, On February 1, 2012, as a result of the Supreme Court’s decision, all California redevelopment agencies were dissolved, successor agencies were established as successor agencies to the former redevelopment agencies pursuant to Health and Safety Code Section 34173, and successor agencies are tasked with paying, performing and enforcing the enforceable obligations of the former redevelopment agencies and winding down the affairs of the former redevelopment agencies; and
WHEREAS, On June 27, 2012 the Governor of California signed Assembly Bill 1484 (“AB 1484”) into law, making several substantive and technical amendments to AB 26 (AB 26 and AB 1484 together referred to as the “Dissolution Bills”); and
WHEREAS, On January 4, 2012 the City Council adopted Resolution No.

CC 2012-002 declaring itself as the Successor Agency to the Community Resolution No. SA 2023-002

Page 2 of 4 ends

Redevelopment Agency of the City of Palmdale (“Successor Agency”) upon the dissolution of the Redevelopment Agency; and
WHEREAS, On April 4, 2012 the City Council, acting in its capacity as the Successor Agency, adopted Resolution No. CC 2012-041 SA naming itself the “Successor Agency to the Community Redevelopment Agency of the City of Palmdale”, the sole name by which it will exercise its powers and fulfill its duties pursuant to Part 1.85 of AB 26, and establishing itself as a separate legal entity with rules and regulations that will apply to the governance and operations of the Successor Agency; and
WHEREAS, pursuant to Health and Safety Code Section 34179 (q), commencing on and after July 1, 2018, the County of Los Angeles, where more than 40 oversight boards were created by the Dissolution Act, shall have five consolidated oversight boards each encompassing the five supervisorial districts; and WHEREAS, the Fifth Supervisorial District Consolidated Oversight Board ("Fifth District Consolidated Oversight Board") has jurisdiction over the Successor Agency of the Former Redevelopment Agency to the City of Palmdale; and

WHEREAS, the Fifth District Consolidated Oversight Board held a regular/special meeting on January 12, 2023; and
WHEREAS, Health and Safety Code Section 34177(j) (“Section 34177(j)”) requires the Successor Agency to prepare an administrative budget for the period July 1, 2023 through June 30, 2024 and submit the administrative budget to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for approval. The administrative budget shall include all of the following: (i) estimated amounts for Successor Agency administrative costs for the upcoming annual fiscal period; (ii) proposed sources of payment for Successor Agency administrative costs; and (iii) proposals for arrangements for administrative and operations services provided by the City or other entity; and
WHEREAS, Health and Safety Code Section 34177(k) (“Section 34177(k)”) requires the Successor Agency to provide to the Los Angeles County Auditor- Controller for the period July 1, 2023 through June 30, 2024 the administrative cost estimates from its approved administrative budget that are to be paid from property tax revenues (i.e. former tax increment revenues) deposited in the County’s Redevelopment Property Tax Trust Fund established for the Successor Agency; and WHEREAS, Health & Safety Code Section 34179.7 (o) (1), requires the Successor Agency to prepare a forward looking, annual Recognized Obligation Payment Schedule (ROPS) listing the enforceable obligations of the former Redevelopment Agency that are due in the next annual period and submitting an oversight board approved annual ROPS to the Department of Finance and Auditor- Controller by February 1, 2023; and
WHEREAS, Health & Safety Code Section 34171(b)(3) states that, the Resolution No. SA 2023-002

Page 3 of 4 ends

administrative cost allowance shall be up to 3 percent of the actual property tax distributed to the successor agency by the county auditor-controller in the preceding fiscal year for payment of approved enforceable obligations, reduced by the successor agency’s administrative cost allowance and loan repayments made to the city pursuant to Section 34191.4(b) during the preceding fiscal year, subject to a minimum of $250,000, unless such amount is reduced by the Oversight Board or by agreement between the successor agency and the State Department of Finance (“Department of Finance”); and
WHEREAS, Staff of the Successor Agency seeks the Successor Agency’s approval of the administrative budget for the period of July 1, 2023 through June 30, 2024 (“Administrative Budget 23-24”), in the form attached to this Resolution as Exhibit B, and the Successor Agency’s authorization to submit the approved Administrative Budget 23-24 to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its approval and to forward the information required by Section 34177(k) to the Los Angeles County Auditor-Controller; and WHEREAS, All other legal prerequisites to the adoption of this Resolution have occurred.

NOW THEREFORE, BE IT RESOLVED, THE SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. The Board of Directors hereby finds and determines that the foregoing recitals are true and correct.

SECTION 2. The adoption of this Resolution is not intended to and shall not constitute a waiver by the Successor Agency of any rights the Successor Agency may have to challenge the effectiveness and/or legality of all or any portion of the Dissolution Bills through administrative or judicial proceedings.

SECTION 3. The Successor Agency’s Administrative Budget 23-24 that is attached hereto as Exhibit Be is hereby approved and adopted.

SECTION 4. The Executive Director, or designee, is hereby authorized and directed to: i) submit the approved Administrative Budget 23-24 to the Los Angeles County Fifth Supervisorial District Consolidated Oversight Board for its review and approval; and ii) submit to the Los Angeles County Auditor-Controller the administrative cost estimates from Administrative Budget 23-24 that are to be paid from property tax revenues deposited in the County’s Redevelopment Property Tax Trust Fund established for the Successor Agency; and iii) take any and all other actions and execute any and all such other documents as are necessary, convenient or appropriate to comply with the Dissolution Bills and to effectuate the intent of this Resolution on behalf of the Successor Agency.

SECTION 5. This Resolution shall take effect immediately upon its adoption.

SECTION 6. The Agency Secretary shall certify as to the adoption of this Resolution.

Resolution No. SA 2023-002

Page 4 of 4 ends

PASSED, APPROVED and ADOPTED this 11th day of January 2023. ______________________________
Approved as to form: Laura Bettencourt, Chair
ATTEST:
___________________________ ______________________________ Scott Porter Rochelle Scott, Acting Agency
Interim General Counsel Secretary
I, Rochelle Scott, Acting Agency Secretary of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the Successor Agency at a regular meeting of said Agency held on the 11th day of January 2023 by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, Acting
Agency Secretary
City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: NEIGHBORHOOD SERVICES

HOUSING DIVISION
DISTRICT: 1
SUBJECT: ADOPT RESOLUTION NO. CC 2023 -002, A RESOLUTION OF THE

CITY OF PALMDALE APPROVING FUNDING WITH THE STATE OF

CALIFORNIA DEPARTMENT OF VETERANS AFFAIRS (CAL VET)
FOR AB-179 FUNDING OF $2,700,000 TO THE CITY OF PALMDALE

DEPARTMENT OF NEIGHBORHOOD SERVICES FOR THE HOMES
4 FAMILIES HOUSING CONSTRUCTION IN A VETERAN ENRICHED

NEIGHBORHOOD
ISSUE
Adopt Resolution CC 2023-002, a resolution of the City of Palmdale approving funding with the State of California Department of Veterans Affairs (Cal Vet) for AB-179 funding of $2,700,000 to the City of Palmdale Department of Neighborhood Services for the Homes 4 Families Housing Construction in a Veteran Enriched Neighborhood.

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt Resolution CC 2023 -002, a resolution of the City of Palmdale approving funding with the State of California Department of Veterans Affairs (Cal Vet) for AB-179 funding of $2,700,000 to the City of Palmdale Department of Neighborhood Services for the Homes 4 Families Housing Construction in a Veteran Enriched Neighborhood; and

2. Authorize the City Manager or their designee to execute all necessary documents and take all actions necessary and convenient to implement the approved actions.

BACKGROUND
Assembly Bill 179 (Ting), Budget Act of 2022 was passed on September 6, 2022. This bill amended the Budget Act of 2022 amending, adding, and repealing items of appropriation and making other changes. Included in Assembly Bill 179 is an allocation by the Department of Veterans Affairs (CalVet) of $2,700,000 to the City of Palmdale Department of Neighborhood Services for the Homes 4 Families Housing Construction in a Veteran Enriched Neighborhood.

Report to Mayor and City Council
Re: Resolution CC 2023-002 CalVet funds for Homes 4 Families January 11, 2023

Page 2 ends

DISCUSSION
Homes 4 Families CalVet REN Veteran housing consists of 56 duplex units for veteran ownership by low income households, includes open space, veggies for vets garden, tot- lot, three little free libraries, and neighborhood walkability for physical and mental health and community building. Forty-six homes are 3 bedroom and 10 are fully ADA 2 bedroom.

During the pandemic, Homes 4 Families experienced increased cost for construction materials and labor, including lumber, drywall, insulation, and garage doors. In addition, Homes 4 Families was unable to hold TEAMBuilds events due to quarantine orders, improvements planned for completion by volunteers, such as interior and exterior painting, required hiring subcontractors to complete these and other construction tasks.

The increased cost for vertical construction is $53,670 per home for 54 homes, totaling $2,898,180.

Assemblyman Tom Lackey requested a one-time appropriation from the general fund of $2.68 million to complete the construction of 40 affordable homes within a Veteran Enriched Neighborhood being built by Homes 4 Families. This funding matches the $2.8 million committed by the Housing Authority of the City of Palmdale.

The City of Palmdale will receive $2,700,000 allocated from the State of California Department of Veterans Affairs and will remit the funds to Homes 4 Families for reimbursement of construction expenditures.

FISCAL IMPACT
The 2022 CalVet allocation of $2,700,000 for Homes 4 Families construction expenses will be received to Account 2416400-463067 State Grant. Expenditure of $2,700,000 will be budgeted in Account 24164005-782942 Habitat – Homes for Families.

STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability and to plan and maintain safe and attractive neighborhoods, streets and facilities.

C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.

Prepared by: Sophia Reyes, Housing Manager
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim City Manager
Approved as to form: Scott E. Porter, Interim City Attorney

ATTACHMENTS
Resolution CC 2023-002

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2023 -002

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

APPROVING FUNDING WITH THE STATE OF CALIFORNIA
DEPARTMENT OF VETERANS AFFAIRS FOR AB179 FUNDING OF
$2,700,000 TO THE CITY OF PALMDALE DEPARTMENT OF
NEIGHBORHOOD SERVICES FOR THE HOMES 4 FAMILIES HOUSING

CONSTRUCTION IN A VETERAN ENRICHED NEIGHBORHOOD
WHEREAS, the State of California Assembly Bill 179 (Ting), Budget Act of 2022 was passed on September 6, 2022. This bill amended the Budget Act of 2022 amending, adding, and repealing items of appropriation and making other changes; and WHEREAS, Assembly Bill 179 includes an allocation by the Department of Veterans Affairs (CalVet) of $2,700,000 to the City of Palmdale Department of Neighborhood Services for the Homes 4 Families Housing Construction in a Veteran Enriched Neighborhood.

NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF

PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

SECTION 1 . City of Palmdale Department of Neighborhood Services is authorized and directed to receive the Department of Veterans Affairs (CalVet) allocation of $2,700,000 for the Homes 4 Families Housing Construction in a Veteran Enriched Neighborhood.

SECTION 2. City of Palmdale Department of Neighborhood Services hereby agrees to provide funds to Homes 4 Families for reimbursement of housing construction expenditures in the Palmdale Veteran Enriched Neighborhood.

SECTION 3. City Manager or their designee is/are hereby authorized to receive the CalVet allocation of $2,700,000 for the Homes 4 Families Housing Construction in a Veteran Enriched Neighborhood and to execute all necessary documents and take all actions necessary and convenient to implement the approved actions.

Resolution No. CC 2023-002

Page 2 of 3 ends

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

PASSED, APPROVED and ADOPTED this 11th day of January, 2023. _________________________________
Approved as to form: Laura Bettencourt, Mayor
ATTEST:
___________________________ _________________________________ Scott E. Porter Rochelle Scott, Acting City Clerk
Interim City Attorney
I, Rochelle Scott, Acting 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 11th day of January, 2023 by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, Acting City Clerk
City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS

CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 1
SUBJECT: ADOPT RESOLUTION NO. CC 2023-001, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE AUTHORIZING THE

GRANT APPLICATION, ACCEPTANCE, AND EXECUTION OF THE

GRANT FUNDS FROM THE STATE OF CALIFORNIA BUDGET ACT
OF 2021 (SB 129).

ISSUE
Adopt Resolution No. CC 2023-001, a Resolution of the City Council of the City of Palmdale authorizing the grant application, acceptance, and execution of the grant funds from the State of California Budget Act of 2021 (SB 129).

RECOMMENDATION
Staff recommends that the City Council authorize, accept, and execute the grant funds from the State of California Budget Act of 2021 (SB 129).

BACKGROUND
On July 12, 2021, the Governor signed Senate Bill 129 which is known as the Budget Act of 2021. To make appropriations for the support of state government for the 21-22 fiscal year, SB 129 amends the Budget Act of 2021 by amending, adding, and repealing items of appropriation and making other changes.

The Building Forward Library Infrastructure Grant Program provides California’s public libraries with support for capital projects addressing critical maintenance needs, improving energy efficiency and sustainability, and expanding access digitally and physically. The California legislature allocated $439 million one -time funds toward this program in 2021 (SB129).

Projects from high poverty areas of the state were prioritized. Although grantees are required to provide matching funds on a dollar -for-dollar basis, the California State Library reduced the grantee match requirement to no match required based on the City of Palmdale’s Local Operating Income Per Capita (LIPC).

Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-001
January 11, 2023

Page 2 ends

DISCUSSION
The City of Palmdale (Grantee) was selected by the California State Library (State Library) to receive state grants funds in the amount of $698,000 through the process adopted by the State Library in administering such grants. These funds can be used for Project Administration, Planning, Design, Pre-Construction, Construction, Implementation, and Contingency.

In accordance with the above requirement, for FY 2022-2023 and FY 2023-2024, the allocated amount of $698,000 will be budgeted in the City’s Capital Improvement budget and will be used for the project listed below:
 PN 877 Palmdale City Library Improvement Project
a. Elevator Repair & Modernization
b. HVAC Replacement
c. Carpet Replacement

FISCAL IMPACT
This project has no fiscal impact to the City, as the grant award was approved without a local match requirement. The City will receive its funding in three allocations, which will all be deposited in Account No. F0047. The first allocation of $349,000 will be provided upon approval of this resolution, the second allocation of $279,200 will be provided after the State Library’s approval of the City’s January 2024 grant report, and the final allocation of $69,800 will be provided after the State Library’s approval of the City’s final grant report.

STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community viability.

C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.

Prepared by: Lynn Glidden 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: Scott E. Porter, Interim City Attorney

ATTACHMENTS
Resolution No. CC 2023-001

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2023-001

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

AUTHORIZING THE GRANT APPLICATION, ACCEPTANCE, AND

EXECUTION OF THE GRANT FUNDS FROM THE STATE OF
CALIFORNIA BUDGET ACT OF 2021 (SB 129)
WHEREAS, the Legislature and Governor of the State of California have provided funds for the program shown above; and
WHEREAS, the California State Library has been delegated the responsibility for the administration of this grant program, establishing necessary procedures; and WHEREAS, said procedures established by the California State Library require a resolution certifying the approval by the potential grantee’s governing board either before submission of said application(s) to the State or prior to execution of the grant agreement; and
WHEREAS, the Applicant/Grantee, if selected, will enter into an agreement with the State of California to carry out the project; and
WHEREAS, the City Council of the City of Palmdale proposes to implement the Palmdale City Library Improvement Project; and
WHEREAS, the City Council of the City of Palmdale has the legal authority and is authorized to enter into a funding agreement with the State of California; and WHEREAS, the City Council of the City of Palmdale intends to apply for grant funding from the California State Library for the Palmdale City Library Improvement Project.

NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF

PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

Resolution No. CC 2023-001

Page 2 of 3 ends

SECTION 1. That pursuant and subject to all of the terms and provisions of the California Budget Act of 2021, the Director of Public Works, or designee is hereby authorized and directed to prepare and file an application for funding with the California State Library and take such other actions necessary or appropriate to obtain grant funding.

SECTION 2. The Director of Public Works, or designee is hereby authorized and directed to execute the funding agreement with the California State Library and any amendments thereto.

SECTION 3. The Director of Public Works, or designee is hereby authorized and directed to submit any required documents, funding requests, and reports required to obtain grant funding.

SECTION 4. Certifies that the project will comply with any laws and regulations including, but not limited to, the California Environmental Quality Act (CEQA), legal requirements for building codes, health and safety codes, the California Labor Code, disabled access laws, and that prior to commencement of the project, all applicable permits will have been obtained.

Resolution No. CC 2023-001

Page 3 of 3 ends

SECTION 5. The City Clerk shall certify to the adoption of this resolution.

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, Acting City Clerk
City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

ENGINEERING DIVISION
DISTRICT: 1
SUBJECT: APPROVE FINAL TRACT MAP NO. 82636-02 (LOCATED AT THE NORTHWEST CORNER OF RANCHO VISTA BLVD AND 15TH

STREET WEST)
ISSUE
Approve Final Tract Map No. 82636-02 (located at the northwest corner of Rancho Vista Blvd and 15th Street West)

RECOMMENDATION
Staff recommends that the City Council approve Final Tract Map No. 82636-02 and authorize the City Clerk to execute City Clerk’s Statement and Special Assessments Statement and authorize the Acting City Surveyor to execute the City Surveyor’s Statement and file the map with the County Recorder.

BACKGROUND
Final Tract Map No. 82636-02 is a 7.03-acre subdivision, legally creating three (3) lots.

All proposed lot sizes and dimensions comply with the City’s Zoning Ordinance and Plan Development 19-001. The subject property is located at the northwest corner of Rancho Vista Blvd and 15th Street West. The applicant for this final tract map is Sage RV Palmdale, LLC , a California Limited Liability Company . This tentative tract map was originally approved by the Planning Commission on July 11, 2019, by Resolution No. PC- 2019-027. A major modification No. 1 to phase the tentative tract map into 3 different phases was later approved by Planning Commission on May 13, 2021 by Resolution No.

PC 2021-012.

This final tract map is consistent with the tentative tract map and all final map conditions of approval for phase 2 have been met. The Acting City Land Surveyor has reviewed the final map for technical accuracy and verifies it is in compliant with the Subdivision Map Act.

Report to Mayor and City Council
Re: Approval of Final Tract Map No. 82636-02
January 11, 2023

Page 2 ends

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

STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.

A. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.

Prepared by: Lynn Glidden 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: Scott E. Porter, Interim City Attorney

ATTACHMENTS

1. Final Tract Map No. 82636-02

City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 5
SUBJECT: APPROVE CONSULTANT AGREEMENT WITH KTUA FOR
PROFESSIONAL DESIGN SERVICES ON PN 839, MCADAM PARK
RENOVATION, IN THE AMOUNT OF $473,995
ISSUE
Approve consultant agreement with KTUA for professional design services on PN 839, McAdam Park Renovation, in the amount of $473,995.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve Agreement No. A -8166, with KTUA for landscape architecture design services on PN 839, McAdam Park Renovation.

2. Authorize the Interim City Manager or her designee to execute Agreement No. A- 8166, with KTUA, including minimal and/or non-substantive changes.

BACKGROUND
McAdam Park has been designated to serve as the new home for the Palmdale Pony League and Capital Improvement Project Number 839 will provide upgrades and improvements to multiple a reas of the park, including accessibility, utility, sports field lighting, playground, and parking lot upgrades, as well as anew baseball field, concession stand, and accessible restroom building. The existing restroom building will be repurposed as a storage room and the existing storage building will be renovated as well.

The project will also study the planning, occupancy, and environmental impacts these improvements have on the existing park entitlements and prepare the appropriate planning and environmental documents to satisfy the applicable codes and ordinances.

DISCUSSION
A Request for Qualifications and Proposal was released publicly on Planet Bids in September and over twenty-six (26) vendors were notified. Staff received five (5) statements of qualification and cost proposal packages and reviewed each through an Report to Mayor and City Council
Re: Approve Agreement No. A-8166
January 11, 2023

Page 2 ends

evaluation committee. Selection of the most qualified consultant was based upon the following scoring methodology.

CATEGORY MAXIMUM VALUE
Project Understanding and Approach 30
Relevant Consultant Experience 30
Quality of Consultant Staff 20
General Conformance to RFP 20
TOTAL EARNED VALUE 0-100
Consultants were required to demonstrate experience in providing similar services to public agencies and validate their approach and management of the project. The following firms submitted statements of qualifications and cost proposal packages.

NAME OF PROPOSING FIRM LOCATION SCORE

1. KTUA San Diego, CA 92.25

2. RHA Landscape Architects Planners, Inc. Riverside, CA 91.50

3. Nuvis Landscape Architecture Newport Beach, CA 88.25

4. David Evans and Associates Inc. Tustin, CA 87.50

5. Sustainable Recreation Design Bishop, CA 85.75
Staff evaluated all qualification packages and determined KTUA to be the most qualified landscape architect for the project based on their comprehensive project approach and prior experience with facilities of similar scope and size. After determination of the most qualified bidder, staff evaluated the cost proposal, deemed it responsive and within the project budget, and are recommending project award to KTUA.

FISCAL IMPACT
The McAdam Park Renovation Project will be funded through Measure AV Funds (157), which have been allocated in Account No. P0130 in the amount of $550,000. The fiscal impact and remaining account balance can be seen in the following table:

SCOPE OF WORK PROJECT COST
A-8166, Design Contract $473,995
Contingency (10%) $47,400
Administration (5%) $23,700
Total Cost: $545,095
Account Number Starting Balance Remaining Balance
P0130157 $550,000 $4,905
Report to Mayor and City Council
Re: Approve Agreement No. A-8166
January 11, 2023

Page 3 ends

STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.

C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.

Prepared by: Lynn Glidden, 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: Scott Porter, Interim City Attorney

ATTACHMENTS
Agreement No. A-8166

1-13
Concord - Document ID: generated after first signature
AGREEMENT NO. A-8166

CONTRACT FOR DESIGN PROFESSIONAL SERVICES

BETWEEN THE CITY OF PALMDALE AND KTUA

THIS CONTRACT FOR DESIGN PROFESSIONAL SERVICES

(“Contract” herein) is

made and entered into this 12th day of January, 2023 by and between the City of

Palmdale a public body corporate and politic, (hereinafter called “CITY”) and KTUA (hereinafter called “PROJECT DESIGNER”).

RECITALS

WHEREAS
,

City desires to engage PROJECT DESIGNER to perform certain

technical and professional services, as provided herein, in connection with that

certain project identified as PN 839 - McAdam Park Renovation.

WHEREAS, PROJECT DESIGNER represents that PROJECT DESIGNER

has the expertise and is qualified to perform the services described in this Contract

and is duly registered under the laws of the State of California.

WHEREAS, PROJECT DESIGNER desires to accept such engagement.

NOW, THEREFORE,

the parties agree as follows:
1 DESCRIPTION OF WORK

1.1 The City hereby engages PROJECT DESIGNER, and PROJECT DESIGNER

accepts such engagement, to perform the following design professional services in a

manner satisfactory to CITY:

PROJECT DESIGNER shall provide landscape architectural design services for the

renovation of McAdam Park located at 38115 30th Street East. Design shall include

upgrades and improvements to park accessibility, utility infrastructure and sports field

lighting, expansion of the existing parking lot, renovation of the existing restroom and

storage buildings, and the addition of a new ballfield, concession stand, and

accessible restroom building, as more specifically described in the Contract

Documents for the above listed Project.

PROJECT DESIGNER shall also study the planning and/or occupancy impacts these

improvements have on the existing park entitlements and prepare the appropriate

planning and environmental documents as required by the applicable codes and

ordinances.

1.2 Project deliverables shall be reviewed and approved by CITY to determine

acceptable completion. CITY shall have the right to review and inspect the work

during the course of its performance at such times as may be specified by CITY.

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

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

Brooke Whalen............Principal Landscape Architect
Josef Gutierrez........... Associate Landscape Architect Bernard Everling..........Irrigation Design Manager
Gwen Stark..................Landscape Dsigner
Subconsultants:

Baranek Consulting.........................Environmental Kim Baranek...................................CEQA Compliance/Environmental Documentation Andrew Goodwin Designs...............Architect
Cumming.........................................Cost Estimator Peterson Structural Engineering.....Structural Engineer Delane.............................................Civil Engineer Earth Systems.................................Geotech
Turpin & Rattan................................MEP
This Design Professional Services Contract has been awarded to PROJECT DESIGNER based on its representation that those personnel and subcontractors listed above will perform the portions of the work listed above. PROJECT DESIGNER shall not deviate nor substitute any of these team members without prior written approval by CITY.
4 COMMENCEMENT AND COMPLETION OF WORK
2-13Concord - Document ID: generated after first signature The execution of this Contract by the parties does not constitute an authorization to proceed. The services of PROJECT DESIGNER shall commence when CITY, acting by and through its Project Manager, has issued an Authorization to Proceed.

PROJECT DESIGNER shall complete all the work described in Section 1 and submit final deliverables within Two Hundred Forty (240) CALENDAR days following PROJECT DESIGNER’s receipt of Authorization to Proceed. PROJECT DESIGNER shall have no claim for compensation for any services or work, which has not been authorized by CITY’s Authorization to Proceed.
5 TAXES

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

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

5.3 PROJECT DESIGNER shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.
6 PATENT FEES AND ROYALTIES
PROJECT DESIGNER shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, product or device is specified by CITY for use in the performance of the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents. PROJECT DESIGNER shall indemnify and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, product or device not specified by CITY, and shall defend all such claims in connection with any alleged infringement of such rights. 7 STANDARDS OF PERFORMANCE

7.1 PROJECT DESIGNER shall be responsible for the completeness and accuracy of its services and work and documents resulting there from, and CITY shall not be responsible for discovering deficiencies therein. PROJECT DESIGNER shall correct any such deficiencies or errors without additional compensation and without 3-13Concord - Document ID: generated after first signature cost to CITY, except to the extent any such deficiency is directly attributable to deficiencies in CITY-furnished information.

7.2 PROJECT DESIGNER shall be familiar with CITY’s Standard Details and Specifications and other relevant CITY regulations. PROJECT DESIGNER shall ensure there are no conflicts among the Contract Documents including, but not limited to, the CITY’s Standard Specifications and Special Provisions for Construction Contracts, the plans and specifications prepared by PROJECT DESIGNER, any standard details or specifications incorporated therein by reference, and the Construction Contract.
8 PROJECT DESIGNER’S PERSONNEL

8.1 All services required under this Contract shall be performed by PROJECT DESIGNER, or under PROJECT DESIGNER’s direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services.

8.2 PROJECT DESIGNER shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Contract, and compliance with all reasonable performance standards established by CITY.

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

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

8.5 PROJECT DESIGNER shall pay, if required by applicable law, not less than the general prevailing hourly wage rates, as determined by the Director of the Department of Industrial Relations pursuant to the California Labor Code, for each craft, classification, or type of worker needed to perform the Contract. Copies of the prevailing rate of per diem wages are on file in the office of the Director of Public Works.
9 COMPENSATION

9.1 For all of work and services including the various phases of tasks as described in Section 1, Scope of Services, CITY shall pay to PROJECT DESIGNER an amount not to exceed the sum of Four Hundred Seventy Three Thousand, Nine Hundred Hinety Five dollars ($473995), as follows:
4-13Concord - Document ID: generated after first signature Task 1 Survey, Initial Study, Major Mod......................$96,210 Task 2 Construction Documents 60%.......................$125,926 Task 3A Construction Documents 90%.....................$102,270 Task 3B Construction Documents 100%/Final............$54,501 Task 4 Bid....................................................................$12,215 Task 5 Construction Administration.............................$62,590 Task 6 Record Drawings.............................................$14,283 TOTAL LABOR..........................................................$467,995 Direct Costs...................................................................$6,000 TOTAL LABOR AND DIRECT COSTS......................$473,995 PROJECT DESIGNER shall perform no work in excess of the total contract price without prior approval of CITY. Total contract price includes expenses related to travel to and from CITY to meet with City and to appear before City Council or any other board or commission of CITY.

9.2 An application and certification for payment form must be submitted to CITY which shall include the following: a clear, detailed invoice reflecting hours being billed for, a summary sheet showing percentage of work completed to date, amount/percent billed to date and current status of all tasks within the project; any/all backup documentation supporting the above items. Work schedule updates must also be included in the monthly progress payment requests.

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

9.4 No payment made hereunder by CITY to PROJECT DESIGNER, shall be construed as an acceptance by CITY of any work or materials, nor as evidence of satisfactory performance by PROJECT DESIGNER of its obligations under this Contract.
10 INDEMNIFICATION
To the fullest extent of the law, and consistent with Civil Code section 2782.8, PROJECT DESIGNER agrees to defend, indemnify, hold free and harmless the CITY, its elected and 5-13Concord - Document ID: generated after first signature appointed officials, officers, agents and employees, at PROJECT DESIGNER’s sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against CITY, its elected and appointed officials, officers, agents, and employees to the extent arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of the PROJECT DESIGNER, its employees, and/or authorized subcontractors, in performing design professional services pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence, recklessness or willful misconduct of the PROJECT DESIGNER, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, recklessness, or willful misconduct of PROJECT DESIGNER, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the CITY, its elected and appointed officials, officers, agents, and employees based upon such negligence, recklessness, or willful misconduct, whether or not the PROJECT DESIGNER, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the PROJECT DESIGNER shall not be liable for the defense or indemnification of the CITY for claims, actions, complaints or suits arising out of the sole or active negligence or willful misconduct of the CITY. Further, in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault, unless otherwise specified in Civil Code section 2782.8.

This provision shall supersede and replace all other indemnity provisions contained either in the CITY’s specifications or PROJECT DESIGNER’s Proposal, which shall be of no force and effect.
11 INSURANCE

11.1 PROJECT DESIGNER, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California. Proof of Insurance, as identified in Section 11.8, must be reviewed, and accepted by the City Attorney.

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

11.1.2 Professional Liability (Errors & Omissions) Insurance*  $2,000,000 limit on a per occurrence basis

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

6-13Concord - Document ID: generated after first signature

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

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

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

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

B. “Severability of Interest” clause.

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

11.5 The requirements as to the types and limits of insurance to be maintained by PROJECT DESIGNER are not intended to and shall not in any manner limit or qualify PROJECT DESIGNER’s liabilities and obligations under this Contract.

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

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

11.8 Acceptable Proof of Insurance:

11.8.1 ACORD Certificate of Insurance listing all coverages, limits, deductibles and insureds; and endorsements for all applicable coverages if agent has authority to issue it; Additional insured Form CG20101185 or CG20100707 and CG20370704 or 7-13Concord - Document ID: generated after first signature equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage.

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

11.8.3 *When professional (E&O) liability coverage is provided on a “claims made basis”, PROJECT DESIGNER will continue to renew the insurance for a period of five (5) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover PROJECT DESIGNER, or its officers, employees, or agents during the time this Agreement was in effect.

11.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time PROJECT DESIGNER fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.

11.10 CONTRACTOR shall require any and all subcontractor's working on its behalf to provide insurance coverages and limits that are based on the scope of work and nature of risk being performed by the subcontractor. Any and all subcontractors working on behalf of CONTRACTOR shall be subject to all other insurance requirements that are stated herein.

Any deviation in this requirement will be CONTRACTOR's sole risk. CONTRACTOR's insurance requirements in Section 11 will not be impacted and/or limited by such deviation.

12 TERMINATION WITHOUT CAUSE
City reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, PROJECT DESIGNER shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and sub-consultants to cease such work.

PROJECT DESIGNER shall also surrender to CITY all finished or unfinished documents or programs and other materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the PROJECT DESIGNER shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract. 13 TERMINATION FOR CAUSE

13.1 If the City determines that the PROJECT DESIGNER has failed to supply an adequate working force, or to provide services of proper quality, or has failed in any 8-13Concord - Document ID: generated after first signature other respect to satisfactorily perform the services specified in this Contract, the City shall give written notice to the PROJECT DESIGNER specifying all defaults to be remedied within thirty (30) days. Such notice shall set forth the basis for the City’s dissatisfaction and suggest corrective measures. If, after thirty days, the PROJECT DESIGNER has failed to implement the corrective measures, the City may elect to terminate this Contract, in whole or in part.

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

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

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

13.4 If, after notice of termination of the Contract under the provisions of this Section 13, it is determined, for any reason, that the PROJECT DESIGNER was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 12.
14 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and PROJECT DESIGNER arising out of, or relating to this Contract, or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties.
15 OWNERSHIP OF DOCUMENTS
All documents, including, but not limited to, tracings, drawings, plans, specifications, original mylars, estimates, field notes, investigations, design analysis and studies which are prepared in the performance of this Contract are to be, and remain the property of, CITY. PROJECT DESIGNER shall furnish CITY, upon its request, originals or reproducible or electronic copies of technical specifications and of all 9-13Concord - Document ID: generated after first signature other documents listed above. PROJECT DESIGNER shall endorse, by his professional seal, all plans and data furnished by him. 16 RE-USE OF DOCUMENTS
The parties agree the documents, drawings, specifications, and designs, although the property of CITY, are prepared for a specific project and are not intended nor represented by PROJECT DESIGNER to be suitable for re-use for any other project.

Any reuse without written verification or adaptation by PROJECT DESIGNER for the specific purpose intended will be at CITY’s sole risk and without liability or legal exposure to PROJECT DESIGNER.
17 SUBCONTRACTING, DELEGATION AND ASSIGNMENT

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

Any proposed agreement with an assignee, delegee or subcontractor shall include the following:

A. The amount involved, together with PROJECT DESIGNER’s analysis of such cost or price; and
B. A provision requiring that any subsequent modification or amendment shall be subject to the prior written consent of CITY.

C. The requirement to hire only those persons authorized by federal law to work in the United States.

17.2 Any assignment, delegation or subcontract shall be made in the name of PROJECT DESIGNER and shall not bind or purport to bind CITY and shall not release PROJECT DESIGNER from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegees and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to PROJECT DESIGNER under this Contract.
18 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY

18.1 In performance of this Contract, PROJECT DESIGNER shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, or age. PROJECT DESIGNER will take affirmative action 10-13Concord - Document ID: generated after first signature to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, ancestry, sex, national origin, handicap, or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

18.2 The provisions of subsection 18.1 above shall be included in all solicitations or advertisements placed by or on behalf of PROJECT DESIGNER for personnel to perform any services under this Contract. CITY shall have access to all documents, data and records of PROJECT DESIGNER and its subcontractors for purposes of determining compliance with the equal employment opportunity and non- discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order No. 11246 is available for inspection at, and on file with, the Palmdale City Clerk’s Office.
19 FINANCIAL INTEREST CERTIFICATION

19.1 PROJECT DESIGNER warrants that no person has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee; and that no officer or employee of the CITY has any interest, financially or otherwise, in PROJECT DESIGNER’s firm.

19.2 For breach or violation of this warranty, CITY shall have the right to annul this Contract without liability, or at its discretion to deduct from the Contract Price or consideration, the full amount of such commission, percentage, brokerage or contingent fee.
20 CONFLICT OF INTEREST

20.1 PROJECT DESIGNER stipulates that its officers and employees do not now have a conflict of interest and it further agrees for itself, its officers and its employees that it will not contract for or accept employment for the performance of any work or services with any individual business, corporation or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Contract or which would cause PROJECT DESIGNER to be “financial interested” (as provided in California Government Code Section 1090 et seq. or 87100 et seq.) in any contract or decision made by CITY on any matter.

20.2 PROJECT DESIGNER shall not employ any City official or employee to perform any work required pursuant to this Contract.

20.3 If PROJECT DESIGNER is a registered professional engineer or licensed land surveyor and the scope of work requires PROJECT DESIGNER’s recommendation of the actual formula to spread the costs of an assessment district’s 11-13Concord - Document ID: generated after first signature improvements, then PROJECT DESIGNER shall not participate in making that recommendation if the additional elements set forth in Government Code section 87100.1(c) apply. Those additional elements are: (1) PROJECT DESIGNER has received income of $250 or more for professional services in connection with any parcel included in the benefit assessment district within 12 months prior to the creation of the district; and (2) the district includes other parcels in addition to those parcels for which PROJECT DESIGNER received the income. In the event a conflict of interest does arise in that context, City shall select a different PROJECT DESIGNER to recommend the actual formula to spread the costs of the assessment district’s improvements and the costs of such services shall be deducted from the compensation to be paid to PROJECT DESIGNER.

20.4 To the extent required by the City Manager/designee, PROJECT DESIGNER shall complete and file with the City Clerk a Form 700 Statement of Economic Interests disclosing any reportable property interests, income, gifts, investments, or business positions.
21 COMPLIANCE WITH LAW

21.1 PROJECT DESIGNER shall comply with all state and federal laws, including but not limited to, the requirement to hire only those persons authorized by federal law to work in the United States. If PROJECT DESIGNER uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by PROJECT DESIGNER.

21.2 The law of the state of California shall govern this Contract. The venue of any legal action, either formal or informal, shall be the County of Los Angeles. 22 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
23 ENTIRE CONTRACT AND AMENDMENTS

23.1 This Contract is the complete agreement between the parties and supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally.

23.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by PROJECT DESIGNER hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.
12-13Concord - Document ID: generated after first signature

23.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract.

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

In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.

CITY OF PALMDALE: KTUA:

Ronda Perez Date
Interim City Manager

Brooke Whalen Date
Principal

ADDRESS FOR NOTICE:

CITY OF PALMDALE
38300 Sierra Highway
Palmdale, CA 93550

ADDRESS FOR NOTICE:

KTUA
3916 Normal Street, San
Diego, CA 92103
APPROVE AS TO FORM:

Scott E. Porter
Interim City Attorney

ATTEST:

Roxanne Faber
Acting City Clerk
ATTEST: If Corporation

Secretary

13-13Concord - Document ID: generated after first signature City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 4
SUBJECT: AWARD CONSTRUCTION AGREEMENT WITH DASH
CONSTRUCTION, INC. FOR PROJECT NO. 831, 47TH ST. EAST & PALMDALE BLVD. ROUNDABOUT LANDSCAPING PROJECT , AT
THE INTERSECTION OF 47TH ST. EAST AND PALMDALE BLVD., IN THE AMOUNT OF $204,604.45 AND DETERMINE THIS PROJECT
TO BE EXEMPT FROM CEQA.

ISSUE
Award construction agreement with Dash Construction Company, Inc., for PN 831, 47th St. East & Palmdale Blvd. Roundabout Landscaping Project, at the intersection of 47th St. East and Palmdale Blvd. , in the amount of $204,604.45 and determine this project to be exempt from CEQA.

RECOMMENDATION
Staff recommends that the City Council:

1. Award construction Agreement No. A -8120 with Dash Construction Company, Inc. for PN 831, 47th St. E. and Palmdale Blvd Roundabout Landscaping Project, in the amount of $204,604.45.

2. Determine this project to categorically exempt from the California Environmental Quality Act (CEQA) pursuant to 2 CCR 15301.

3. Authorize the Interim City Manager or her designee to execute Agreement No.

A-8120 with Dash Construction Company, Inc. in a form substantially similar to the city’s form contract provided in the bid package, which form may include minimal and/or non-substantive changes.

BACKGROUND
Project No. 831, 47th St. East and Palmdale Blvd. Rounda bout Landscaping Project, includes a new cultured stone veneer wall, new cobble and gravel surfacing, boulders, arid planting, and installation of additional Joshua trees within the existing traffic round about at the intersection of Palmdale Boulevard and 47th Street East. Work also includes traffic control, and material certification submittals. All work will be performed within the Report to Mayor and City Council
Re: Award of PN 831, Agreement No. A-8120
January 11, 2023

Page 2 ends

existing roundabout. It is anticipated that construction will take approximately ninety (90) calendar days from the date the City issues the Notice to Proceed and is projected to occur between March 2023 and July 2023.

DISCUSSION
Four (4) bids were received for this project on December 6, 2022, and are summarized below:

BIDDER LOCATION AMOUNT

1. Dash Construction Company, Inc. Woodland Hills $204,604.45

2. Marina Landscape, Inc. Garden Grove $228,381.50

3. C.S. Legacy Construction, Inc. Walnut $334,439.00

4. R.C. Becker and Son, Inc. Santa Clarita $395,704.14
The project was released for public bid electronically on November 2, 2022. Eighteen (18) vendors registered with this project as prospective bidders and downloaded the bid documents for review. The prospective bidders included nine (9) vendors classified as prime contractors, five (5) as subcontractors, and four (4) classified as other. This project was reviewed and considered by many contractors and vendors, however Dash Construction Company, Inc. was the sole contractor to attend the pre-bid meeting for the project.

References have been checked and staff recommends that the City Council award Project No. 831 to the lowest bidder, Dash Construction Company, Inc., in the amount of $204,604.45.

CEQA
The proposed project is Categorically Exempt pursuant to Section 15301, Class 1, of the California Environmental Quality Act (CEQA) Guidelines, which permits the minor alteration of existing public structures/facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The proposed project involves alteration and upgrades to existing landscaping within the roundabout. A Notice of Exemption for the project was filed with the Los Angeles County Clerk on October 20, 2021, for compliance with the California Environmental Quality Act (CEQA).

FISCAL IMPACT
The project will be funded through Prop C Funds (204), which have been allocated in Account No. L0088. The account has a current available balance of $234,853. The fiscal impact and remaining account balance can be seen in the following table:

Report to Mayor and City Council
Re: Award of PN 831, Agreement No. A-8120
January 11, 2023

Page 3 ends

SCOPE OF WORK COST
PN 831 47th St. E & Palmdale Blvd R.A.B. Landscape Project $204,604.45 Construction Contingency (10%) $20,460.45
Administration and Inspection $7,288
Labor Compliance $2,500
Total Cost: $234,853
Account Number Starting Balance Remaining Balance
L0088 $234,853 -0-

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: Lynn Glidden, 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: Scott E. Porter, Interim City Attorney

ATTACHMENTS
Site Plan

City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 1 & 5
SUBJECT: APPROVE FUNDING AGREEMENT WITH CALTRANS TO PROVIDE

CALIFORNIA PUBLIC UTILITIES COMMISION (CPUC) FUNDS FOR
PRELIMINARY ENGINEERING ON PROJECT STPLR -130L(297),

AVENUE R & SIERRA HIGHWAY RAILROAD SAFETY PROJECT , IN
THE AMOUNT OF $550,000.

ISSUE
Approve funding a greement with Caltrans to provide California Public Utilities Commission (CPUC) funds for preliminary engineering on Project STPLR -130L(297), Avenue R & Sierra Highway Railroad Safety Project, in the amount of $550,000.

RECOMMENDATION
Staff recommends that the City Council:

A. Approve Agreement No. A-8181 with Caltrans to provide California Public Utilities Commission (CPUC) funds for preliminary engineering on Project STPLR - 130L(297), Avenue R & Sierra Highway Railroad Grade Crossing Program.

B. Authorize the City Manager, or h er designee to execute Agreement No. A-8181 with Caltrans for the referenced project, including minimal and/or non-substantive amendments.

BACKGROUND
This project will provide for the upgrade of the existing railway system at the intersection of Avenue R and Sierra Highway. The California Public Utilities Commissions (CPUC) Rail Crossings and Engineering Branchhas proposed safety improvements to the existing railway system that will be funded under the Railroad-Highway Grade Crossing Program (RHGCP), Sec tion 130 funds. The improvements will be contracted by both railroad agencies, Union Pacific Railroad (UPRR) and Southern California Regional Rail Authority (SCRRA/Metrolink) along with the City of Palmdale and will be managed by the Caltrans Division of Local Assistance.

Report to Mayor and City Council
Re: Agreement No. A-8181, Caltrans Agreement for Avenue R and Sierra Highway Railroad Safety Project
January 11, 2023

Page 2 ends

DISCUSSION
The approval of this funding agreement allows the City to receive funds to complete the preliminary engineering phase of this railway system improvement project. The City will advertise and award these services to a licensed engineering consultant.

The scope of work for this project includes the preparation of engineering studies, construction documents with detailed plans, specifications, and cost estimate (PS&E), sufficient for a competitively bid, federal-aid construction project for a Railway-Highway Crossings Safety Project developed through the Diagnostic Study Method. The work involved for the City of Palmdale, or its awarded consultant, will include:
 Conduct a traffic queuing study for eastbound vehicles through the crossing at the intersection of Avenue R and Sierra Highway.
 Install pre-signal or queue-cutter, as recommended by traffic study and diagnostic team.
 Review and modify traffic signal operation, including railroad preemption operation, at the intersection of Avenue R and Sierra Highway.
 Reconstruct, widen, and/or extend raised medians east and west of the crossing.  Conduct a pedestrian study, including counts/video studies identifying:
o Daily pedestrian/bicycle counts for seven consecutive days o Routes of users including origination and destination o Pedestrians and bicycle users crossing Avenue R to access the pathway along the north sidewalk at the crossing
 Evaluate the necessity/feasibility of extended sidewalks and pedestrian warning devices at the south quadrants of the crossing.
 Reconstruct sidewalk at the north side of the crossing, and install pedestrian channelization, tactile strips, and egress gates.
 Install additional street lighting near the crossing.

The City of Palmdale shall provide the Key Stakeholders (Caltrans/CPUC/Railroads) with 30% Preliminary Design Plans, 60% Plans and 90% PS&E, for review, comment, and coordination, prior to the 100% Final PS&E, which is required for Construction Authorization and GO-88B Approval.

FISCAL IMPACT
Caltrans is the agency responsible for programming CPUC funds for the above referenced project. Under the terms and condition contained in the Funding Agreement, Caltrans has authorized the programming of CPUC funds in the amount of $550,000 for the design of this project. Under this agreement, funding is authorized for work in phases, beginning with the Preliminary Engineering (PE) phase. Additional funding to complete the contract will only be provided through the execution of amendments for the Report to Mayor and City Council
Re: Agreement No. A-8181, Caltrans Agreement for Avenue R and Sierra Highway Railroad Safety Project
January 11, 2023

Page 3 ends

subsequent phases(s) of work needed; Right of Way (RW), Utility Relocation (R/W-UTIL), and Construction (CON). This project is budgeted in Account No. S0145242-724525- 3051, Avenue R and Sierra Highway RR Safety Crossing. Funds will be utilized from this account and will be 100% reimbursed by Caltrans.

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: Lynn Glidden, P.E., Director of Public Works Certified as to availability of Funds: Janelle Sampson, Director of Finance Approved by: Ronda Perez, Interim City Manager
Approved as to form: Scott E. Porter, Interim City Attorney

ATTACHMENT
Agreement No. A-8181
STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT
Sheet 1 of 12
November 21, 2022
The City of Palmdale (hereinafter referred to as Local Agency) hereby agrees to do the work set forth herein for the State of California, Department of Transportation (hereinafter referred to as Caltrans) in accordance with the terms set established for Federal-Aid Funding under Local Agency Master Agreement No. 07-5378F15 and in accordance with the covenants set forth in this Program Supplement , including but not limited to, California Streets and Highways Code section 114(b) and California Government Code 14038 and the specific regulations and the provisions of this form including Exhibits A, B and C.

This Program Supplement shall be effective the date defined herein and when executed by all parties and is subject to all the terms and conditions thereof and authorizes reimbursement of eligible costs incurred during the effective dates of this agreement.

The work is located in the City of Palmdale at the grade crossing of Avenue R and the Union Pacific Railroad (UPRR) tracks and the Southern California Regional Rail Authority (SCRRA), identified as; California Public Utilities Commission (CPUC) ID # 001B-414.20, 101VY-67.92 / LA -1290, DOT # 750602K. The work to be completed by Local Agency under the terms of this Program Supplement is hereinafter referred to as the Project.

Under this agreement, funding is authorized for work in phases, beginning with the Preliminary Engineering ( PE) phase. Additional funding to complete this Program Supplement will only be provided through the execution of amendments for additional work and with authorization for subsequent phase(s); Right of Way /Utility Relocation (RW), Construction (CON)/Construction Engineering (CE).

AMOUNT OF PROGRAM SUPPLEMENT
(Preliminary Engineering)
$550,000.00
It is expressly agreed that all persons engaged on this work are employees of the Local Agency and/or contractors hired by the Local Agency pursuant to its own policies and procedures and that none are employees of Caltrans.

Further, Caltrans hereby agrees to the terms as above set forth, and hereby agrees to pay the actual allowable costs incurred up to the limit set forth herein; provided, that by mutual consent of the Local Agency and Caltrans, this Program Supplement may be modified at any time.
[Signatures are on the next page.]
Item Chapter Budget Act Caltrans Project ID Unit Amount State Fiscal Year
2660-102-0890 21 2021 0723000007 3328 $550,000.00 2021/2022 The funds listed above are available for the period and purpose of the expenditures stated herein.

Railway-Highway Crossings Program
Section 130 Program Supplement
Avenue R, Palmdale
PROJECT NUMBER (FED ID); STPLR-130L(297)
CALTRANS ACCOUNTING ID: 0723000007
PROGRAM SUPPLEMENT: 50LP297
LOCODE: 5378
(The numbers above shall be included with all invoices submitted to Caltrans) Caltrans Division of Local Assistance
Office of Federal Programs – Section 130
P.O. Box 942874, MS 1
Sacramento, CA 94274-0001

LOCAL AGENCY
ADDRESS:

PHONE
City of Palmdale
38300 Sierra Highway
Palmdale, CA 93550
661-267-5100
Effective Date of Program Supplement : August 11, 2022 E
xpiration Date of Program Supplement December 31, 2025 Agreement No. A-8181
STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 2 of 12
November 21, 2022

PROJECT NUMBER (FED ID); STPLR-130L(297)
CALTRANS ACCOUNTING ID: 0723000007
PROGRAM SUPPLEMENT: 50LP297
LOCODE: 5378

IN WITNESS WHEREOF, the parties have duly executed this Program Supplement as of the dates shown below with the effective date being the later hereunder.

CALIFORNIA DEPARTMENT OF TRANSPORTATION CITY OF PALMDALE

Signature Signature
Name Bruce Roberts Name Ronda Perez
Title Caltrans Section 130 Program Manager Title Interim City Manager Date Date

STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 3 of 12
November 21, 2022

1. It is mutually understood between the parties that this Program Supplement may have been written before ascertaining the availability of congressional or legislative appropriation of funds, for the mutual benefit of both parties, in order to avoid program and fiscal delays that might occur if the Program Supplement were executed after appropriations are actually made.

2. This Program Supplement is valid and enforceable only if sufficient funds are made available to Caltrans by the United States Government or the California State Legislature for the purpose of this program. In addition, this Program Supplement is subject to any additional restrictions, limitations, conditions, or any statute enacted by the Congress or the State Legislature that may affect the provisions, terms or funding of this Program Supplement in any manner. It is mutually agreed that if the Congress or the State Legislature does not appropriate sufficient funds for the program, this Program Supplement shall be amended to reflect any reduction of funds.

3. This Program Supplement is for the elimination of hazards at railway-highway crossings with funds provided to Caltrans through the Federal Highway Administration (FHWA) for the Railway-Highway Crossings (Section 130) Program (23 U.S. Code § 130) and in accordance with 23 USC 130(f), Section 130 projects are funded at a 100% federal share. Said elimination of hazards are a cooperative effort between Local Agency, Railroads, Caltrans, and the CPUC. The CPUC has evaluated the railroad highway intersection and determined what improvements are most likely necessary, Caltrans provides oversight and stewardship for the federal funds provided to the Local Agency and the Railroads to design and construct the Project.

4. The Local Agency agrees to lead and coordinate the concurrent efforts being undertaken by the Railroads under separate contact with Caltrans. The Project’s safety improvements are to be completed in an expeditious manner without undue delay. Frequent coordination must be extended to the Railroads and the State Agencies associated with the Program Supplement (CPUC & Caltrans). The Project is for improved public s afety, as such, the Local Agency is to P rosecute the Project Diligently t hrough Completion. Caltrans under its USDOT/FHWA Stewardship Agreement , as a conduit for disbursement of Federal Surface Transportation Program funds for hazard elimination at railroad intersections on city streets, county roads and State Highways is reliant on the Local Agency to implement th ese safety improvements. Caltran s and Local Agency agree that the Project work as provided herein, is pursuant to f ederal rules and regulations and shall adhere to the guidance for local federal-aid projects as defined in the Caltrans Local Assistance Procedures Manual (LAPM).

Additionally, Local Agency agrees to ensure that all construction work is performed in accordance with the provisions of Form FHWA-1273.

5. The basis of the design for the work to be performed by the Local Agency is identified in Exhibit A and made a part hereof (hereinafter referred to as Scope of Work). The Scope of work is based on; an analysis of existing conditions, accident history, and scoping reviews, to define the initial mutually agreed upon recommendations of improvements best suited for railroad-highways grade crossing hazards eliminations for the specific location and is subject to refinements or revisions ; based on field diagnosis meeting(s), the progression of design, traffic engineering, signal pre-emption, or changed conditions, and only if approved by Caltrans and CPUC.

6. The Project’s overall completion schedule is identified in Exhibit B and made a part hereof (hereinafter referred to as Schedule).

STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 4 of 12
November 21, 2022

7. The reimbursement of federal funds is limited to the amount shown on the E-76. Only work performed after the date of federal authorization is eligible for federal reimbursement and all eligible reimbursements must be incurred prior to the FHWA Project End Date (PED). The E-76 for the authorized work under this supplement is attached hereto as Exhibit C, E-76 and made a part hereof.

8. Each phase of work; Preliminary Engineering (PE), Right of Way (R/W), Util ity Relocation (R/W), and Construction (CON), will require additional federal funds with authorization through the issuance of an updated E-76 and an amendment to this Program Supplement . Any unexpended prior obligations from the completed phase(s), will be carried forward and used in conjunction with the additional federal funds for the next phase of work. All subsequent phases of work (R/W, CON) and any requests for additional funds, must be initiated by the Local Agency , in compliance with the Caltrans Local Assistance Procedures Manual (LAPM), aligned with the P roject schedule and will be approved only if the state has sufficient Obligation Authority (OA) and available federal funds to undertake this action.

9. If federal funds are not available for a requested Construction (CON) obligation, the local agency may request in writing authorization to proceed with the project under the Local Assistance advance construction procedures. Under local advance construction procedures, the local agency will use its own funds to perform work eligible for future federal reimbursement. The local agency must have sufficient local funds to pay for all project costs until such time as federal funds become available.

10. Federal funds that have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date , per Government Code Section 16304, all project funds not liquidated prior to the end of the last day of the state fiscal reversion year, will revert unless an executed Cooperative Work Agreement extending these dates is requested by the Local Agency, supported by Caltrans and approved by the California Department of Finance.

11. Local Agency will not invoice for any work on the Project, nor will Local Agency purchase any materials, until authorized through the execution of this Program Supplement . Authorization shall not be issued by Caltrans until sufficient State or Federal funds have been obligated for the project s. State liability pursuant to this Program Supplement is limited to the amount set forth in this Program Supplement

12. The Local Agency shall comply w ith Build America Buy America Act (BABA), enacted as part of Infrastructure Investment and Jobs Act (IIJA, § 70912(2)), which requires the recipient of all federal-aid funds to ensure all iron, steel, manufactured products, and construction materials used on projects are produced in the United States. The Buy America provisions set forth in 23 CFR 635.410, for steel, iron and manufactured goods produced in the United States, apply to the Project and are subject to the conditions therein set forth.

13. Any person, company or corporation who performs construction work authorized under terms of this Program Supplement must have a valid and current California contractor’s license. All authorized work performed by employees of Local Agency and any CPUC regulated public utility, City, County or Public Service District is not subject to the above contractor’s license requirement.

14. Local Agency must coordinate Project work with the Railroads that owns and operates the tracks where the Project is located, and Local Agency is wholly responsibly to execute and maintain all agreements required by the Railroads for the Local Agency’s access and encroachment over the crossing.

STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 5 of 12
November 21, 2022

15. Local Agency will secure all legally required and necessary permits and approvals before commencing Project construction.

16. Where Project work is in conjunction with work done by Railroads , Railroads will construct railroad track and signal work to its own standard specifications, Local Agency will not perform any work on the Railroad tracks or within railroad right of way without securing permission from the railroad. Project work done within twenty- five feet of the centerline of the Railroad track may require a Railroad employee to protect the workers of Local Agency or its contractors. This provision is pursuant to federal law regulation and must be clearly agreed to in writing between Local Agenc y and Railroad before commencement of Project work at the railroad -highway intersection. A copy of this agreement between Railroad and Local Agency shall be provided to Caltrans by Local Agency as soon as it is executed.

17 Any warning devices, medians, signs, pavement markings, structures or other improvements, which may be installed in conjunction with Project must be agreed upon between Railroads, the Local Agency, Caltrans and the CPUC. The Local Agency shall be the lead applicant and must receive approval of a CPUC General Order 88-B authorization of rail crossing modifications, prior to commencing any construction activities and Local Agency is responsible from initiation through close-out of the GO-88B permit.

18. Guidance, regulatory, warning, and temporary traffic control signs, curb and pavement, or other markings and traffic signals installed or placed on any project constructed with federal funds shall conform to the Manual of Uniform Traffic Control Devices (MUTCD) and its California Supplement (CAMUTCD). Deviations from the Mandatory Standards for signs, markings, and traffic signals as defined and shown in the MUTCD and CAMUTCD are not permitted.

19. Caltrans will reimburse the Local Agency on the basis of actual cost, not to exceed the Project costs set forth herein. Any cost of the work determined by Caltrans to be not reimbursable, shall be borne and paid for solely and exclusively by Local Agency.

20. Local Agency invoice procedures shall conform to the California Prompt Payment Act (Gov. Code § 927 et seq.,) and submittals comply with LAPM procedures. Correspondence and/or invoices are to be mailed to:

Caltrans Division of Local Assistance
Office of Federal Programs Section 130, MS-1
P.O. Box 942874
Sacramento, CA 94274

Physical Address:

California Department of Transportation
Division of Local Assistance,
1200 N Street, Room 2400
Sacramento, California 95814.

21. Not more frequently than once a month, but at least quarterly, Local Agency will prepare and submit to Caltrans invoices for actual allowable costs incurred. Caltrans will review the invoice for compliance with this Program Supplement. Payment will be made by Caltrans to Local Agency within forty-five (45) days of the date of receipt of an invoice by Caltrans, unless disputed. Invoices which are determined not in compliance, or include unallowable costs, will be returned to Local Agency for correction of deficiencies, after which Local Agency will resubmit the invoice to Caltrans as prescribed above.

STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 6 of 12
November 21, 2022

22. The Local Agency shall prepare and submit to Caltrans, at least quarterly (4x per year), a written project status report that includes, at a minimum; a comprehensive summary of the overall project status, accomplishments to date, activities under way, risks, issues, planned activities and schedule updates. Status reports can be submitted in conjunction with invoice submittals. U pon written request by Caltrans, quarterly project status updates may be conducted through either teleconference or as in-person meetings with the Local Agency’s project manager and key project staff members that are able to address project delivery topics and the actions being taken to resolve issues.

23. The Local Agency , upon completion of the work required of the Project , will provide to Caltrans a written declaration/notification that the Project has been final billed and ready to be closed. This declaration shall be based upon actual allowable Project cost, Project Scope and Project cost limits set forth herein.

Upon receipt of this declaration, Caltrans will pay all outstanding allowable invoiced Project costs. If upon final accounting, it is determined that Caltrans previously paid more than its share of said project, Local Agency shall refund the difference between Caltrans’ share and the amount paid by Caltrans. All records of the Local Agency, its co ntractors and subcontractors are subject to audit by representatives of the State of California and Federal Highway Administration. Such records will be retained and made immediately available for inspection by Caltrans’ Auditors for a period of three years from Caltrans’ date of final payment of aforementioned final invoice. Further, Local Agency agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Program Supplement. (Gov. Code §8546.7, Pub. Contract Code §10115 et seq., CCR Title 2, Section 1896).

24 Local Agency agrees to pay prevailing wages for the work performed, pursuant to the California Labor Code §1720, or any other applicable law.

25. All work to be done hereunder by Local Agency shall be done only by its employees on a force account basis, or by contractors, the cost thereof to be paid to Local Agency by Caltrans in the manner hereinafter set forth.

26. The Local Agency agrees that the 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards shall be used to determine the allowable individual items of indirect cost. Local Agency agrees to comply with the applicable Federal procedures in accordance with Office of Management and Budget Circular 2 CFR §200.

27. All applicable portions of 23CFR §140, Subpart I and 23 CFR §646, Subparts A and B are incorporated into this Agreement by reference. are by reference incorporated herein and made a part hereof.

28. Caltrans agrees to reimburse Local Agency for qualified insurance expenses as authorized by 23 CFR §646 et seq., and as set forth in the cost estimates or approved through amendment.

29. The Local Agency has 180 days after the expiration date of this Program Supplement to submit the final invoice to Caltrans for verification and payment. No compensation or reimbursement is payable for any cost or expense that is submitted on an invoice following 180 days after the expiration date of the Program Supplement.

30. In accordance with the California Public Utilities Commission General Orders, and in cooperation with the Railroad, the Local Agency shall maintain the Project improvements located in its right of way.

STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 7 of 12
November 21, 2022

31. Subject to the availability of labor and material and securing the required and necessary permits and approvals of phase authorizations, it is the intent of the parties hereto that all construction work under this Program Supplement shall be completed within the effective date of this Program Supplement , unless a time extension is requested by Local Agency and approved in writing by Caltrans . The expiration date of this Program Supplement is shown on the face sheet. Costs incurred a fter the expiration date of Program Supplement are unallowable and shall not be billed by the Local Agency to Caltrans.

32. AMENDMENT: No amendment or variation of the terms of this Program Supplement shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or Agreement not incorporated in this Program Supplement is binding on any of the parties.

33. ASSIGNMENT: This Program Supplement is not assignable, in whole or in part, without the consent of Caltrans in the form of a formal written amendment.

34. AUDIT: Local Agency agrees that Caltrans or its designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of this Program Supplement at all reasonable times during the entire period of this Program Supplement and Local Agency agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Local Agency agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records.

35. INDEMNIFICATION: Local Agency agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Program Supplement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be killed, injured or damaged except to the extent that such death injury or damage results from the sole or active negligence of Caltrans.

36. DISPUTES: Local Agency shall continue to perform under this Program Supplement during any dispute.

37. TERMINATION: State reserves the right to terminate this contract without cause upon 30 days written notice to the Local Agency . In the event of a termination; failure to receive funding, failure to acquire the required and necessary permits or approvals, loss of funding or inadequate funding for completion of the entire Project, or absence of a concurrent but separate Caltrans contract with the Railroad (hereinafter referred to as Terminating Event), State shall pay all actual Project costs incurred by Local Agency on the Project prior to receiving notice of any of the Terminating Event, and for actual Project costs that cannot be reasonably avoided following termination.

38. INDEPENDENT CONTRACTOR : Local Agency, and the agents and employees of Local Agency, in the performance of this Program Supplement, shall act in an independent capacity and not as officers or employees or agents of Caltrans or State.

39. NON-DISCRIMINATION CLAUSE: During the performance of this Program Supplement , Local Agency and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 8 of 12
November 21, 2022

applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), mental dis ability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. Contractor and subcontractor s shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.

Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code §12990 (a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Sect ion 7285 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Program Supplement by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other Agreement.

Local Agency shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Program Supplement.

40. GOVERNING LAW: This Program Supplement is governed by and shall be interpreted in accordance with the laws of the State of California.

41. FORUM SELECTION CLAUSE: Sacramento County shall be used as the primary venue for any action arising from this Program Supplement, or an alternative location of competent jurisdiction within the State of California may be used, only if mutually agreed upon in writing.

42. ORDER OF PRECEDENCE; The Federal-Aid Master Agreement, this Program Supplement, Exhibit A, Scope of Work; Exhibit B, Schedule; Exhibit C, E-76; are incorporated by reference and constitute the entire agreement between Caltrans and Local Agency. The documents listed in this paragraph shall be hereinafter referred to as the “ Contract”. In the event of a conflict between the contract documents, the controlling document shall be the Federal-Aid Master Agreement, this Program Supplement, then Exhibit A, Exhibit B, Exhibit C. In the event and to the extent any provisions contained in multiple documents address the same or substantially the same subject matter but do not actually conflict, the more recent provisions shall be deemed to have superseded provisions over any conflicting provisions defined in the body of the Program Supplement or its exhibits.

43. ANTITRUST CLAIMS: The Local Agency by signing this Program Supplement hereby certifies that if these services or goods are obtained by means of a competitive bid, the Local Agency shall comply with the requirements of the Government Code Sections set out below:
a. The Government Code Chapter on Antitrust claims contains the following definitions:

1. "Public purchase" means a purchase by means of competitive bids of goods, services, or materials by the State or any of its political subdivisions or public agencies on whose behalf the Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the Business and Professions Code.

2. "Public purchasing body" means the State or the subdivision or agency making a public purchase.

Government Code Section 4550.
b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 9 of 12
November 21, 2022

pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder. Government Code Section 4552. c. If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code Section 4553. d. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (a) the assignee has not been injured thereby, or (b) the assignee declines to file a court action for the cause of action. See Government Code Section 4554.

44. CHILD SUPPORT COMPLIANCE ACT: “For any Contract in excess of $100,000, the Local Agency acknowledges in accordance with Public Contract Code 7110, that:
a. The Local Agency recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and com pliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and
b. The Local Agency, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.”

45. UNENFORCEABLE PROVISION: In the event that any provision of this Program Supplement is unenforceable or held to be unenforceable, then the parties agree that all other provisions of this Program Supplement have force and effect and shall not be affected thereby.

46. PRIORITY HIRING CONSIDERATIONS: If this Program Supplement includes services in excess of $200,000, the Contractor shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Public Contract Code Section 10353.

Expiration of this Program Supplement does not release any party hereto from any ongoing performance requirements agreed to herein.

STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 10 of 12
November 21, 2022

Exhibit A – Scope of Work
Avenue R
Fed Xing ID: 750602K
CPUC ID: 001B-414.20, 101VY-67.92 / LA-1290

Scope of Work*
Includes the preparation of engineering studies, construction documents with detailed plans, specifications, and cost estimate (PS&E), sufficient for a competitively bid, federal-aid construction project for a Railway- Highway Crossings Safety Project developed through the Diagnostic Study Method**.

The Local Agency SHALL provide the Key Stakeholders (Caltrans/CPUC/Railroads) with 30% Preliminary Design Plans, 60% Plans and 90% PS&E, for review, comment, and coordination***, prior to the 100% Final PS&E, which is required for Construction Authorization and GO-88B Approval.

Engineering Inputs and Design Requirements
• Conduct a traffic queuing study for eastbound vehicles through the crossing at the intersection of Avenue R and Sierra Highway.
• Install pre-signal or queue-cutter, as recommended by traffic study and diagnostic team. • Review and modify traffic signal operation, including railroad preemption operation, at the intersection of A venue R and Sierra Highway.
• Reconstruct, widen, and/or extend raised medians east and west of the crossing. • Conduct a pedestrian study, including counts/video studies identifying:
o Daily pedestrian/bicycle counts for seven consecutive days o Routes of users including origination and destination o Pedestrians and bicycle users crossing A venue R to access the pathway along the north sidewalk at the crossing
• Evaluate the necessity/feasibility of extended sidewalks and pedestrian warning devices at the south quadrants of the crossing.
• Reconstruct sidewalk at the north side of the crossing, and install pedestrian channelization, tactile strips, and egress gates.
• Install additional street lighting near the crossing.

*Scope of Work from CPUC Project Initiation Document, August 4, 2022.

** Highway-Rail Crossing Handbook, 3rd Edition (July 2019) https://safety.fhwa.dot.gov/hsip/xings/com_roaduser/fhwasa18040/

*** Level of details to be provided with each design submittal (30/60/90/100%) should follow local agency standards of practices, (additional information on expected level details can be requested from Caltrans).

The design shall conform and comply, as needed, to ADA Title II regulations, Caltrans Standard Specifications and Standard Plans, and the California Manual on Uniform Traffic Control Devices (CAMUTCD)

STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 11 of 12
November 21, 2022

Exhibit B – Schedule
Avenue R
Fed Xing ID: 750602K
CPUC ID: 001B-414.20, 101VY-67.92 / LA-1290

Milestones Requirement Completion Dates
(After Contract Execution)
Preliminary Engineering
Project Manager Named / Design Team Established /
Consultant Selection Complete Mandatory Less Than ≤ 180 Days

Local Agency Project Delivery Schedule &
Stakeholder Coordination Plan with RR/CPUC/Caltrans. Mandatory Less Than ≤ 180 Days 30% Plans Mandatory Less Than ≤ 365 Days

Diagnostic Field Meeting (w/ attendance of key
stakeholders & record of issues and next steps) Mandatory Less Than ≤ 365 Days

60% Plans Target ≤ 16 Months
Environmental Clearance (NEPA) Target ≤ 18 Months
90% Plans and Draft Specifications Target ≤ 20 Months
100% Plans, Specs and Estimate (PS&E) Target ≤ 24 Months CPUC GO-88B Target ≤ 24 Month

Right of Way
Utilities Target Undetermined
Right of Way Certification Target ≤ 24 Months
Construction
Construction Authorization Target ≤ 24 Months

End Project
End Construction Target ≤ 48 Months
Final Invoice Target ≤ 180 Days
After End Construction
Legend: ≤ [Less Than; Task is be completed on or before the calendar date established by adding the defined duration to the effective date the Program Supplement is executed by all parties]

Milestones Requirements
• Mandatory – Due to project selection and scope development being conducted through teleconferencing, Mandatory Milestones must be completed by the Local Agency within the duration defined. Failure to complete Mandatory Milestones by the Completion Dates, may lead to, delays in future funding, development of a corrective action plan, potential de-obligation of federal funds or contract termination. Changes to Mandatory Milestones will only be approved in writing.

• Target – Milestone Dates present the State’s expectation for timely completion of this safety project and the timeframes should be incorporated into Project Delivery Schedule.

STATE OF CALIFORNIA Avenue R, Palmdale

DEPARTMENT OF TRANSPORTATION
SECTION 130 PROGRAM SUPPLEMENT

Sheet 12 of 12
November 21, 2022

Exhibit C – E-76
Avenue R
Fed Xing ID: 750602K
CPUC ID: 001B-414.20, 101VY-67.92 / LA-1290

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City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS
DISTRICT: 1
SUBJECT: ADOPT RESOLUTION NO. CC 2023-003, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE AUTHORIZING THE
BUDGET TRANSFER OF $250,000, FROM EMERGENCY

RESERVES, FOR FIRE AND WATER CLEAN UP AND ASBESTOS

TESTING OF THE CHIMBOLE CULTURAL CENTER AND APPROVE
PURCHASE ORDER NO. 20230423 WITH SERVPRO, DBA to GLW
ENTERPRISES INC. IN THE AMOUNT NOT TO EXCEED $220,000.

ISSUE
Adopt Resolution No. CC 2023-003, a Resolution of the City Council of the City of Palmdale authorizing the budget transfer of $250,000, from emergency reserves, for fire and water cleanup and a sbestos testing of the Chimbole Cultural Center and approve Purchase Order No. 20230423 with ServPro , DBA to GLW Enterprises, Inc., in the amount not to exceed $220,000.

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt Resolution No. CC 2023 -003, authorizing the transfer of $250,000 from emergency reserves for fire and water cleanup and asbestos testing;

2. Authorize the Interim City Manager or her designee to approve Purchase Order No. 20230423, Agreement No. 8198, with ServPro, including minimal and/or non- substantive changes.

BACKGROUND
On December 26, 2022 , a fire was started in the upstairs ballroom of the Chimbole Cultural Center. The fire’s source was an artificial Christmas tree that was ignited by an outside source. There was significant fire damage to the ballroom and significant water intrusion in the ceiling, walls, and flooring throughout the entire facility. City Maintenance staff contacted ServPro immediately to provide for initial water extraction , cleanup, and initial drying. During the course of the week, ServPro provided moisture readings, continued extraction of water, restorative cleaning procedure s, air filtration devices to minimize the spread of contaminant, application of anti-microbial agents, deodorization of carpet, removal of fire debris, etc. This emergency work is estimated at $41,000. Due Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-003
January 11, 2023

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to the water intrusion in the ceiling and walls, it is recommended that areas of the building be opened up to allow for additional drying and decontamination. ServPro provided an updated estimate to remove all carpeting, affected drywall, ceiling tiles and insulation and provide additional drying equipment to remove the potential of mold growth in the building.

The estimated cost of the removal of affected walls, ceiling, ducting, and insulation is estimated at $166,000.

DISCUSSION
Staff is requesting an emergency transfer of $250,000 into the Chimbole Cultural Center Rehabilitation Project to cover much needed fire and water removal services provided by Servpro. Additional services rendered included was emergency asbestos testing done of the floors, walls, and ceiling tiles to determine if the building contained asbestos. Although asbestos was found in the vinyl floor tile of two small areas of the building, it is not urgent to remove the flooring at this time.

Palmdale Municipal Code 3.08.080.D allows the City Manager to dispense with the standard competitive bidding requirement provided that "such emergency procurements shall be made with such competition as is practicable under the circumstances." The subsection states:
"(D) Emergencies. “Emergency procurement” means the procurement of goods, materials, equipment, supplies or services which are required to remedy a situation where the health, safety, welfare or quality of welfare of the public or public property is endangered or severely reduced if immediate corrective or preventive action is not taken and the emergency will not permit a delay resulting from a competitive procurement and that the action is necessary to respond to the emergency. Notwithstanding any other provisions of this chapter, the City Manager, upon finding that there exists an emergency situation as described herein, may authorize the Chief Procurement Officer/designee and/or Public Works Director/designee to make emergency procurements of goods, materials, equipment, supplies or services; provided, that such emergency procurements shall be made with such competition as is practicable under the circumstances. An emergency procurement shall be limited to those goods, materials, equipment, supplies and services necessary to satisfy the emergency need."
This unanticipated emergency work exceeds the signing authority of the City Manager.

Therefore, staff recommends that the City Council adopt Resolution No. 2023-003 to transfer $250,000 to Chimbole Cultural Center Rehabilitation Project and approve PO 20230423, Agreement No. 8198, for a not to exceed amount of $220,000 with ServPro to complete much needed emergency material removals.

FISCAL IMPACT
It is requested that $250,000 from City Emergency Reserves be transferred into Account F0161101-724525. To date, the current estimate with ServPro is $207,000. As this is an estimate only, it is requested that City Council approve Purchase Order No. 20230423 in the amount of $220,000 to cover additional costs that may incur during the removal process. Additional costs also have been incurred for asbestos testing.

Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-003
January 11, 2023

Page 3 ends

STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community viability.

C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.

ATTACHMENTS
Resolution No. CC 2023-003
Purchase Order No. 20230423

CITY OF PALMDALE

COUNTY OF LOS ANGELES, CALIFORNIA
RESOLUTION NO. CC 2023-003

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE ADOPTING THE TRANSFER OF $250,000 FROM CITY EMERGENCY RESERVES TO THE

CHIMBOLE CULTURAL CENTER REHABILITIATION PROJECT FOR EMERGENCY

FIRE AND WATER DAMAGES
WHEREAS, the Chimbole Cultural Center experienced a fire on December 26, 2022, causing significant fire and water damage to the entire building; and WHEREAS, the transfer of $250,000 is needed for emergency fire and water cleanup and asbestos testing;
WHEREAS, the Chimbole Cultural Center Rehabilitation Project does not have funds to cover these expenses;
WHEREAS, this unanticipated work exceeds the signing authority of the City Manager.

NOW THEREFORE, THE CITY COUNCIL DOES HEREBY RESOLVE, FIND, DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. Adopt a budget transfer of $250,000 from the City Emergency Reserves into the Chimbole Cultural Center Rehabilitation Project to cover the emergency clean up services provided.

Resolution No. CC 2023-003
January 11, 2023

Page 2 ends

2 SECTION 2. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED and ADOPTED this ______ day of ________, ________. _________________________________
Approved as to form: Laura Bettencourt, Mayor
ATTEST:
___________________________ _________________________________ Scott E. Porter Rochelle Scott, Acting City Clerk
Interim City Attorney
I, Rochelle Scott, Acting 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 ______ day of _____________, 20___ by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:__________________________ _
Date:

Rochelle Scott, Acting City Clerk

THIS NUMBER

MUST APPEAR ON ALL INVOICES,
PACKAGES AND SHIPPING PAPERS.

Purchase
Order #

NO SUBSTITUTIONS WITHOUT APPROVAL OF
PURCHASING DIVISION. USE

CITY OF PALMDALE
ADDRESS SPECIFIED BELOW. MERCHANDISE MUST
BE DELIVERED TO SPECIFIC DEPARTMENT.

Purchase Order
Fiscal Code
Revisions
Fiscal
Period
Expiration Date

PURCHASING DIVISION
PHONE: (661) 267-5444 FAX (661) 267-5454
BILL TO: ACCOUNTS PAYABLE
38300 Sierra Highway
Palmdale, CA 93550
(661) 267-5460
V
E
N
D
O
R
S
H
I
P
T
O
Vendor Phone Number Vendor Fax Number Requisition Number Buyer Date Ordered Vendor Number Date Required Freight Method/ Terms Department/Location
Item# Description/PartNo QTY UOM Unit Price Extended Price RECEIVING COPY
Partial Order
Purchase Order Complete
Receiving
Copy
Internal
Purpose
Only
Please
Do
not
forward

to
Vendor
Page: 1 of: 1
20230423
N
002
07 06/30/2023

GLW ENTERPRISES INC

SERVPRO OF LANCASTER/PALMDALE/ACTON
29059 THE OLD ROAD
VALENCIA, CA 91355
Fax: 661-272-5796
PUBLIC

WORKS DEPARTMENT
38250 SIERRA HWY
PALMDALE, CA 93550
Email: [email protected]
Phone: 661-267-5300

LYNN GLIDDEN
661-723-7141 661-272-5796 Matthew Harris
01/05/2023 5949 DESTI
NATION/NET 45 CAPITAL IMPROVEMENT PROJECTS

CHIMBOLE CENTER RESTORATION CLEANING
The Above Purchase Order Number Must Appear On All
Correspondence - Packing Sheets And
Bills Of Lading
1 DL1.0 $220,000.00$220,000.00MODIFIED: CHIMBOLE CENTER RESTORATION CLEANING PURCHASE ORDER 20230423 AND AGREEMENT A-8198 ARE

PENDING CITY COUNCIL APPRO
VAL ON JANUARY 11, 2023.

F0161101 - 724525 $220,000.00
Sales Tax $0.00
Order Total $220,000.00

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.

11. 12.
13 14.

15. 16.

17. 18.

19. 20.

21. 22.

ACCEPTANCE ACCEPTANCE OF THIS PURCHASE ORDER BY THE VENDOR IS EXPRESSLY LIMITED TO THE TERMS AND CONDITIONS CON TAINED HEREIN. ANY TERM OR
CONDITION STATED BY THE VENDOR IN ANY PRIOR PROPOSAL , ON VENDOR’S ACKNOWLEDGEMENT FORM, OR IN OTH

ERWISE ACKNOWLEDGING OR ACCEPTING THIS

ORDER IS DEEMED BY BUYER TO BE A MATERIAL ALTERATION OF THIS ORDER AND IS HEREBY OBJ ECTED TO BY THE BUYER. ANY SUCH TERM OR CONDITION SHALL BE

INAPPLICABLE TO THIS ORDER UNLESS EXPRESSLY AGREED TO IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF BUYER. ACCEPTANCE OF THE

MERCHANDISE COVERED BY THIS ORDER WILL NOT CONSTITUTE
ACCEPTANCE BY BUYER OF VENDOR’S TERMS AND CONDITIONS. ANY OF THE FOLLOWING ACTS BY

VENDOR SHALL CONSTITUTE ACCEPTANCE OF
THIS OFFER AND ALL OF ITS TERMS AND CONDITIONS; SIGNING AND RETURNING A COPY OF THIS ORDER; DELIVERY OF

ANY OF THE MERCHANDISE
ORDERED; INFORMING THE BUYER OF COMMENCEMENT OF PERFORMANCE; OR RETURNING VENDOR’S OWN FORM OF ACKNOWLEDGEMENT.

PRICE AND DELIVE
RY Vendor shall furnish the merchandise covered by this order (which may consist of or include services of a non-te chnical and non-professional nature or construction
work) in accordance with the prices and delivery schedule stated on the face of this order. If prices or delivery dates are not stated, Vendor shall offer its lowest prices or best delivery dates, bot
h of which shall be subject to written acceptance by Buyer. All prices include all applicable taxes, except sales taxes which are separately shown where applicable. Vendor warrants that the prices charged for the merchandise ordered will be
as low as the lowest price charged by the Vendor to any customers purchasing similar merchandise in the same or smaller quanti ties
and under like circumstances.

PAYMENT Buyer shall pay to Vendor the full sales price within forty five (45) day s of invoice date, or sooner if otherwise specified on the face of this order.

PACKING AND SHIPPING Vendor warrants tha
t prices include all charges for packing, crating, and transportation to F.O.B. point. All merchandise shall be packaged, mar ked, and
otherwise prepared in accordance with good commercial practices to obtain the lowest shipping rates and to assure ade quate protection of the merchandise in shipment and storage and its arrival at F.O.B. point in undamaged condition. An itemiz ed packing list shall accompany each shipment.

F.O.B, TITLE AND RISK OF LOSS Unless otherwise specified on the face of this order, the F.O.B. point shall be Buyer’s location designated on the face of this order . If transportation is F.O.B.

Vendor’s location, Vendor shall bear all risk of loss or damage to the merchandise, and title shall not shift to Buyer, until del ivery of the merchandise to Buyer’s designated location.

INVOICING After shipping or otherwise providing merchandise und er this order, Vendor shall send a separate invoice, in duplicate, including item numbers and accompanied by a bill of lading or express receipt. The time for payment of Vendor’s invoices shall commence upon the date of actual receipt of merchandise and acceptable invoices consistent with the requirements of this order.

ADVANCE SHIPMENTS AND COMMITMENTS Buy
er may, at its option, either merchandise received in advance of the delivery schedule set forth herein, or return it to Ven dor at Vendor’s
risk and expense. If retained, time for payment and discount, if any, shall be based upon scheduled delivery dates. Vendor shall place all orders for, and schedule deliveries of materials necessary for its performance under this order
at such times as will enable Vendor to meet, but not unreasonably anticipate, the stated delivery schedule. In the event of termin ation of or
changes to this order, Buyer shall not be liable for any charges or costs arising form commitments by Vendor for the acquisition of materials, or work performed, in advance of the time necessary to meet the specified delivery schedule,
unless Buyer has given its prior written consent to such advance commitments or work.

CHANGES Buyer may, by wri
tten change order, suspend performance in whole or in part, make changes in quantities, in drawings, designs or specifica tions, in the method of shipment or
packing in the time or place of delivery, or require additional or diminished work. If any such changed causes an increase or decrease in the cost of or the time required for, performance of this order, an equ
itable adjustment shall be made in the contract price or delivery dates, or both and this order shall be modified in writin g accordingly. Any claim for adjustment under this Section 8 may, at Buyer’s option, be deemed to be absolutely and unconditionally waived unless asserted in writing (including the amount of the claim) and delivered to Buyer within thirty (30) day s
from the date of receipt by Vendor of the change order. No change order will be binding on Buyer unless issued and signed by an authorized representative of Buyer’s purchasing
department. Nothing in this Section 8 shall excuse Vendor from pro ceeding with the order as changed.

INSPECTION Final inspection and acceptance of the merchandise shall be at the F.O .B. point unless otherwise specified in this order. Such inspection shall be in accordance with the customary established ins
pection procedures of Buyer at the location where the merchandise is received. Buyer reserves the right to use sampling proced ures for the acceptance or rejection
of any or all items ordered. If a lot is rejected by the sampling procedure, the entire lot may be returned to Vendor for screening at the Vendor’s expense or, at the option of Buyer, the rejected lot may be screened by Buyer
at Vendor’s expense, and the costs thereof shall be deducted from Vendor’s invoice. Buyer may reject any merchandise which con tains defective materials or
workmanship or does not conform to specifications or samples. In such event, Buyer may, at its option, and upon written notice to Vendor: (i) rescind this order as to such merchandise; (ii) accept such merchandi
se at an equitable reduction in price; or (iii) reject such merchandise and require the delivery of replacements. Deliveries of replacement merchandise shall be
accompanied by a written notice specifying that such merchandise is a replacement.

If Vendor fails to deliver required replacements promptly, Buyer may: (I) replace or correct such merchandise and charge
the Vendor the cost thereby incurred by Buyer; or (ii) terminate this order for cause as provided in Section 16 hereof. Th e rights of Buyer under this Section 9 are in
addition to any other rights or remedies herein or by law.

WARRANTIES
In addition to all other warranties, expressed or implied, Vendor warrants that the merchandise will be: (I) free from def ect in workmanship and materials; (ii) free from defects in design except to the extent that such merchandise complies wit h the specifications provided by Buyer, (iii) suitable for purposes, if any, which are stated on the face of this order or in any
attachments hereto; and (iv) in conformity with all other requirements of this order. These warranties, and all other warranties, express or implied, shall survive delivery, inspection, acceptance and payment.

In addition to all other rig
hts Buyer may have, if merchandise is determined not to e as warranted within a period of one (1) year acceptance by Buyer, Buy er may return such merchandise to
Vendor, at Vendor’s expense, for correction, replacement or credit, as Buyer may direct.

Any merchandise corrected or furnished in replacement shall, from the date of delivery of such corrected or replacement mer
chandise, be subject to the provision of this Section 10 for the same period and to the same extent as merchandise initially fur nished pursuant to this order.

PROPRIETARY INFORMATION All written information obtained by Vendor from Buyer concernin g this order, and which is identified as proprietary by Buyer, shall be received in confidence and shall remain the property
of the Buyer, and shall be used and disclosed by Vendor only to the extent necessary for performance of this order.

COMPLIANCE
WITH LAWS Vendor shall comply with all federal, state and local laws, ordinances, rules and regulations in the manufacture and sale of the merchandise (including the
performance of any services or construction work). Vendor will defend and hold Buy er harmless from any loss, damage or costs attributable to or arising out of any actual or alleged violation of any such law,
ordinance, rule or regulation.

USE OF VENDOR’S LITERATURE Buyer shall have the right, at no additional charge, to use and reproduce the Vendor’s applicable literature, such as operating and maintenance manuals, technical publications, prints
, drawings, training manuals, and other similar supporting documentation and sales literature. Vendor shall advise Buyer in writing of any updated information
relating to the foregoing literature and documentation.

LIABILITY FOR INJURY Ven
dor shall indemnify Buyer against any loss and liability for all personal injury and property damage caused by the merchandise sold or the services of
construction work.

ASSIGNMENT PROHIBITED Vendor shall not assign this order, or any rights or obligatio ns hereunder, without the prior written consent of Buyer, and no attempted or purported assignment by Vendor shall be bindin
g on Buyer without such written consent.

DEFAULT AND TERMINATION Buyer may, by written notice of default to the Vendor, terminate this order, or any part thereof, under the following circumstances:

A. If Vendor fails to deliver the mercha
ndise (or to commence performance of any services or construction work included therein) in accordance with the delivery sch edule specified herein,
or any extension thereof; or if vendor fails to perform any other provision of this order, or so fails to make progress as to endanger performance of this order in accordance with its terms, and any such failure or default
is not cured within ten (10) days after written notice from the Buyer, or B. In the event of the appointment of a trustee, rec
eiver or liquidator for all or a portion of Vendor’s property, or the institution of bankruptcy, reorganization, arrangement or liquidation
proceedings by or against the Vendor, or any assignments by Vendor for the benefit of creditors.

Upon any ter
mination to this Section 16, Buyer may purchase similar merchandise elsewhere, or secure the delivery of the merchandise by contract, or otherwise and Vendor shall be liable to
Buyer for any excess cost to Buyer; provided, however, that Vendor shall not be liable for such excess costs when the delay of Vendor in performing or in making deliveries is due to causes beyond the control
and without fault or negligence on the part of the Vendor. No cause shall constitute a basis for excusable delay unless Ven dor has notified Buyer in writing of the existence
of such cause within ten (10) days from the commencement thereof. The rig hts and remedies of Buyer under this Section 16 shall not be exclusive and are in addition to all other rights and remedies provid
ed by law or by the terms and condition of this order.

WAIVER Buyer’s failure to insist upon the performance of any provis ion of this order, or to exercise any right or privilege granted to Buyer under this order, shall not be construed as a waiver of any provision of this order, and the same shall continue in full force and effect. If any provision of this order is determ ined by a court of competent jurisdiction to be void or otherwise unenforceable, the other provisions of this order shall not be affected thereby.

DISPUTE RESOLUTION Disputes regarding the interpretation or application of any provisions of this order shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. If any
action at law or in equity is brought to enforce or interpret any provisions of this order, the prevailing party in such act ion shall be entitled to reasonable
attorney’s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.

GOVERNING LAW The validity, performance and construction of the order, including all terms and condit ions thereof, shall be construed in accordance with and governed by the laws of the State of California.

ENTIRE AGREEMENT
This order, its terms and conditions, and any supplemental attachments, addenda or riders annexed hereto by Buyer, contai n the entire agreement between the
parties as to the subject matter hereof, and replace and supersede any prior or contempor aneous communications, representations or agreements, whether written oral, with respect to such subject matter, unles
s specifically provided otherwise herein.

NOTICES All notices, demands, requests or approvals to be given in connectio n with this order shall be in writing and delivered in person or by mail, postage prepaid, and addressed to the other party
at the address set forth on the face of this order, or to such other address as may be subsequently be designated in writin g by either party.

SPECIAL PROVISIONS Notwithstanding any terms or conditions herein above, to the contrary, the Specia l Provisions set forth in Attachment A, attached hereto, shall be deemed to be incorporated herein by reference and shall be
binding on Vendor and shall superceded any provision of this Purchase Order set forth herein above which are in conflict therew ith.

City Council Staff Report
DATE: JANUARY 11, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE
DISTRICT: ALL
SUBJECT: RESOLUTION DECLARING OPPOSITION TO THE CITY OF LOS

ANGELES USING EMERGENCY POWERS TO CREATE A
HOMELESS “VILLAGE” IN THE PALMDALE AREA
ISSUE
Discussion and possible action declaring Palmdale’s opposition to the City of Los Angeles using its emergency powers to create a homeless “village” in the Antelope Valley.

RECOMMENDATION
Staff recommends that the City Council adopt the proposed resolution declaring its opposition.

BACKGROUND
Karen Bass was elected to the office of Mayor of Los Angeles in November and sworn in December 11, 2022. In her first act as mayor, she declared a state of emergency related to homelessness in the city of Los Angeles. More specifically, in an interview given and published on May 7, 2022, when asked about how she would address the homelessness issue she responded, “ There’s a big chunk of land in Palmdale and maybe we could create a village out there.”
The Palmdale City Council immediately denounced then mayoral candidate Bass’ comments and invited her to visit Palmdale to work collaboratively on solutions before trying to export her city’s homeless to our community. She has yet to accept o ur offer.

Bass’ emergency order allows her to demand that departments identify all city -owned properties that can be used for some form of housing. The City of Los Angeles owns approximately 17,000 acres of bare land with few if any improvements in and around the Plant 42 installation.

Report to Mayor and City Council
Re: Resolution Opposing Relocating Homeless to the Palmdale Area January 11, 2023

Page 2 ends

DISCUSSION
There exists little to no infrastructure or services in place to effectively manage and assist in addressing this crisis. The idea the Los Angeles could export homelessness problems on Palmdale’s working class, family-oriented desert community on an emergency basis, without allowing time for community and cross-agency communications is deeply disturbing. Rather the City of Los Angeles should take the time to collaborate on equitable, community-based solutions to address this humanitarian crisis.

At the December 21, 2022, the City Council majority concurred that Los Angeles should not export their homeless problem to Palmdale, and declined to adopt a resolution to declare a city state of emergency in Palmdale.

The proposed resolution would memorialize the city’s opposition to the City of Los Angeles using its emergency powers to create a homeless “village” in the Antelope Valley.

FISCAL IMPACT
None.

STRATEGIC PLAN
Prepared by: Ronda Perez, Interim City Manager
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim City Manager
Approved as to form: Scott E. Porter, Interim City Attorney

ATTACHMENTS
Resolution No. CC 2023-004

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2023-004

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF PALMDALE CALIFORNIA DECLARING ITS

OPPOSITION TO THE CITY OF LOS ANGELES

POTENTIALLY USING EMERGENCY POWERS TO

RELOCATE PEOPLE WHO ARE HOMELESS TO A
“VILLAGE” IN THE PALMDALE AREA
WHEREAS, the Los Angeles Times has reported that there are currently more than 42,000 people who are homeless in the City of Los Angeles; WHEREAS, the City of Los Angeles owns approximately 17,000 acres of undeveloped land with few if any improvements in and around Palmdale’s Plant 42 installation;
WHEREAS, on May 7, 2022, Karen Bass, when running to serve as Mayor of Los Angeles, was asked about how she would address the homelessness issue and stated, “There’s a big chunk of land in Palmdale and maybe we could create a village out there”; WHEREAS, on her first day of office as Mayor of Los Angeles, Karen Bass declared a state of emergency relating to homelessness; WHEREAS, it is currently unclear as to exactly what actions the City of Los Angeles would take to attempt to resolve the homeless crisis, and whether, or to what extent its emergency powers might be used to create a homeless “village” in Palmdale or its vicinity;
WHEREAS, the City of Palmdale supports taking well-reasoned and long-term solutions to the ongoing issues relating to housing and homelessness; WHEREAS, the City of Palmdale opposes short-term solutions which, when not properly planned, can cause multiple negative and unplanned secondary impacts which can cause significant legal issues;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:

SECTION 1. Declaration of Opposition. For the above reasons, the City Council declares its opposition to the City of Los Angeles using its emergency powers to create a homeless “village” in the Antelope Valley.

Resolution No. CC 2023-004

Page 2 ends

Palmdale City CouncilJanuary 11, 2023

Palmdale City Council
January 11, 2023