Cities Index.
Agenda packet, first session

Palmdale City Council
May 3, 2023

Document
Agenda packet, first session
Meeting
May 3, 2023
Body
Palmdale City Council
Pages
44
Original file
15.2 MB
Text extracted from the city's file for reading and search. Open the original on d3n9y02raazwpg.cloudfront.net. That file is the official record.

Mayor Pro Tem Alarcon will be participating via teleconference from JW Marriott
Desert Springs Resort & Spa, Quiet Library, 74855 Country Club Drive, Palm Desert CA 92260
pursuant to Government Code Section 54953

How to observe the meeting:

1. Spectrum local access Channel 27

2. Online live webcast at www.cityofpalmdale.org.

How to Address the City Council
Any person who would like to address the Council regarding an item on the agenda, please fill out a Speaker's Form and submit it to the City Clerk prior
to the agenda item
you would like to discuss. You may address the Council once per meeting, per public comment section of the agenda on only those matters within the Council's jurisdiction.

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 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.

In accordance with the Americans with Disabilities Act of 1990, if you require a disability-

CITY COUNCIL MEETING

REVISED

SUCCESSOR AGENCY

CITY COUNCIL CHAMBERS
38300 SIERRA HIGHWAY

SUITE B
PALMDALE, CA 93550

WEDNESDAY, MAY
3, 2023
5:00 PM
www.cityofpalmdale.org

WELCOME
City Council
Wednesday, May
3, 2023
related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (661) 267-5151 at least 72 hours prior to the meeting.

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

Your courtesy is requested to help our meetings run smoothly. Please follow these simple rules so we can make the best possible use of your time and ours:

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

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

Please turn off/mute your cell phones and mobile devices.

5:00 P.M.

1. CALL MEETING TO ORDER

*Note: All City Council memberships are reflected in their City Council titles.

2. ROLL CALL

MAYOR BETTENCOURT, MAYOR PRO TEM ALARC
Ó

N, COUNCILMEMBERS

BISHOP, LOA, OHLSEN

3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

4. PRESENTATIONS

4.1 Presentation by Mayor and Council of a Commendation to Tony Tortolano naming him City of Palmdale’s Veteran of the Year.

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

6. PUBLIC COMMENTS ON CONSENT CALENDAR ITEMS ONLY
This portion of the Agenda allows an individual the opportunity to address the Council on Consent Calendar items ONLY. If you wish to comment on any item(s) listed on the Consent Calendar, please come forward to the podium when called or acknowledged by City Council
Wednesday, May
3, 2023
the Chair and state the item number(s) and your comments.

PLEASE NOTE: A three-
minute time limit
will be imposed on each speaker.

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

7.1 Receive and File the Monthly and Quarterly Investment Activity for March 2023.

1. Staff_Report_-_Investment_Report_Mar_2023.docx

02 March 2023 City & Successor Monthly and Quarterly Investment Rprt.pdf

7.2 Approve Agreement with Eide Bailly, LLP. for Auditing Services in the amount of $960,000, for a five (5) year term through June 30, 2028.

1. Staff Report Eide Bailly, LLC Contract A-8300.docx

EIDE BAILLY
(A-8300).pdf

7.3 Approve First Amendment to Legal Services Agreement with Civica Law Group, APC (A-8272) to increase the total amount of the Agreement by $500,000 not to exceed the sum of $600,000.

SR - Civica Law Group A-8272 Amend 1 - 050323.docx

Civica Law Group, APC - (A-8272) Amendment 1.pdf

Civica Law Group, APC (A-8272).pdf

7.4 Adopt Resolution No. CC 2023-024, a Resolution of the City Council of the City of Palmdale directing the preparation of the Engineer's Report for the continuation of the annual levy of assessments and designating the Engineer of Work for the City of Palmdale Drainage Benefit Assessment Districts No. 1, and No. 2006-02.

Palmdale DBAD - Staff Report 5-3-2023 v2.docx

Palmdale DBAD - Res 1 #CC 2023-024 for 5-3-2023 v2.doc

7.5 Adopt Resolution No. CC 2023-025, a Resolution of the City Council of the City of Palmdale directing the preparation of the annual Engineer's Reports for the continuation of the annual levy of assessments and designating the Engineer of Work for fiscal year 2023/2024 for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations.

Palmdale LMD - Staff Report 5-3-2023 v2.docx

Palmdale LMDParkSMD - Res 1 #CC 2023-025 for 5-3-2023 tc.doc

7.6 Approve Purchase Order No. 20230522 with Nixon-Egli Equipment Company for One(1) New JAJ-600WH Easement Machine in an amount not to exceed $114,109.

City Council
Wednesday, May
3, 2023

SR Approve PO 20230522 Nixon-Egli - Easement Machine.docx

1. Purchase Order NO. 20230522 Nixon-Egli Equipment.pdf

2. Sourcewell Contract No. 101221-SCA.pdf

3. Nixon-Egli Quote 100710 Easement Machine.pdf

Picture.docx

7.7 Approve the transfer of SB 1: Funds, The Road Repair and Accountability Act (RMRA) of 2017, from Account No. S0025210, Pavement Resurfacing to Account No. S0062210, County Pavement Projects, in the amount of $1,235,000.

SB1 transfer staff report.docx

10TH ST EAST ET AL.pdf

Avenue P - 15th St East to 30th St East.pdf

CHESEBORO RD - PEARBLOSSOM HWY TO COUNTY BOUNDARY.pdf

LAGO LINDO RD ET AL.pdf

SIERRA HWY - PEARBLOSSOM HW TO AVE S.pdf

7.8 Approve the minutes from the previous meetings.

CC - March 15, 2023
CC/SA/IDA/PAA/PCA/PFA - April 5, 2023
CC - April 19, 2023

CC Minutes 03 15 2023.pdf

CC_SA_HA_IDA_PAA_PCA_PFA Minutes 04 05 2023.pdf

CC Minutes 04 19 2023.pdf

8. PUBLIC HEARING

8.1 Introduction and Adoption of Ordinance No. 1610, an Ordinance of the City Council of the City of Palmdale, amending Ordinance U-1582; as it amended Palmdale Municipal Code Section 16.40.120 to increase the initial term of Tentative Maps by two years, and to increase the term of certain phased Tentative Maps by one additional two-year period.

Staff Report TTM Extension.docx

Ordinance_No._1610.docx

8.2 Public Hearing to hear public comments on the Draft 2023-2024 Action Plan Programming estimated $2,650,709 in Consolidated Plan funds; review, approve, and submit the 2023-2024 Action Plan; and execute documents related to the submission of the Action Plan, and Sub-Recipient agreements.

Staff Report 2023-24 Action Plan.docx

2023- 2024 Draft AAP_Palmdale.pdf

8.3 Public Hearing to review the Substantial Amendment to the 2022-2023 Annual Action Plan, the proposed Section 108 application and the expenditure of City Council
Wednesday, May
3, 2023
Community Development Block Grant (CDBG) Funds; receive public comment in compliance with the requirements of the U.S. Department of Housing and Urban Development (HUD) and the City's Citizen Participation Plan; approve the Substantial Amendment to the 2022-2023 Action Plan; and adopt Resolution No.

CC 2023-02, a resolution of the City Council of the City of Palmdale, authorizing the City manager or their designee to submit the Section 108 Loan Guarantee Application to the United States Department of Housing and Urban Development for a $6,000,000 Loan for SAVES Facility Improvements.

Staff Report Section 108.docx

Resolution No.

CC 2023-021.doc

Palmdale Draft Section 108 Application.pdf

9. APPOINTMENT(S)

9.1 City Council Nomination and Appointment of seven (7) Members and seven (7) Alternates to the Measure AV Oversight Committee.

StaffReport MAV Appointments 2023.docx

MAV Apps redacted.pdf

10. 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: 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.

11. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON

THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT

PUBLIC EXPENSE

11.1 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
City Council
Wednesday, May
3, 2023
• UNITED STATES/MEXICO SISTER CITIES ASSOCIATION
• CALIFORNIA STATE PRISON – LOS ANGELES COUNTY, CITIZENS

ADVISORY COMMITTEE

11.2 MEETINGS ATTENDED AT PUBLIC EXPENSE

Alarcon Informational Report 050323.docx

Bettencourt Informational Report 050323.docx

Bishop Informational Report 050323.docx

Ohlsen Informational Report 050323.docx

12. CITY COUNCIL ANNOUNCEMENTS AND REQUESTS FOR NEW AGENDA ITEMS

13. CITY MANAGER’S REPORT

14. 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: A three-minute time limit
will be
imposed on each speaker.

15. PRESENTATION BY CITY ATTORNEY

15.1 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).

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

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

15.3 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Ricky Thorstensen v. City of Palmdale, et al.

Los Angeles County Superior Court
Case No. 22STCV29463
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

City Council
Wednesday, May
3, 2023

15.4 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Kenya Torres vs. City of Palmdale, et al.

Los Angeles County Superior Court
Case No. 22STCV37041
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

15.5 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Edman Discua v. City of Palmdale, et al.

Los Angeles Superior Court
Case No. 21STCV45406
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

15.6 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Land Developers & Associates Corporation v. Successor Agency to the Community Redevelopment Agency of the City of Palmdale, et al.

Los Angeles County Superior Court
Case No. 22AVCV01093
The closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

16. ANNOUNCEMENT BY CITY ATTORNEY

17. ADJOURN meeting to May 17, 2023 at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

City Council
Wednesday, May
3, 2023
City Council Staff Report
DATE: MAY 3, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE MONTHLY AND QUARTERLY
INVESTMENT ACTIVITY REPORTS FOR MARCH 2023
ISSUE
Receive and file the monthly and quarterly investment activity reports for March 2023.

RECOMMENDATION
Staff recommends that the City Council receive and file the monthly and quarterly investment activity reports for City of Palmdale and Successor Agency for March 2023.

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 presen ted are the most current rates available as of the date of this report.

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

Report to Mayor and City Council
Re: Monthly and Quarterly Reports on Investments
May 3, 2023

Page 2 ends

DISCUSSION
Compliance with Investment Policy
For March, the invested portfolio amount for the City of Palmdale totaled $299,514,504, a decrease of $999,225 from the previous month, and an increase of $60,459,869 in comparison to last year. The monthly decrease is the result of a maturity of a corporate note that was pulled out from the investment portfolio.

The par value of Successor Agency’s portfolio as of March was $10,964,331. The balance decreased by $1,245,024 from the last month due to debt service payments made out of the agency’s cash account.

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 March is $119,234,729. No changes compared to prior month.

Successor Agency LAIF balance at the end of March was $4,458,763. No changes from the prior month.

CAMP’s balance for City of Palmdale at the end of March was $256,027 compared to February balance of $254,985. The slight increase is due to interest earned during the month. The interest rates presented are the most current rates available as of the date of this report. As of March 31, 2023, the interest rates for LAIF and CAMP investments were at 2.831 percent and 4.80 percent, respectively. By comparison, the LAIF and Report to Mayor and City Council
Re: Monthly and Quarterly Reports on Investments
May 3, 2023

Page 3 ends

CAMP interest rates at the end of February were at 2.624 percent and 4.73 percent.

Both rates have slightly increased within this month. This time last year, LAIF and CAMP rates were at 0.365 percent and 0.25, respectively.

The chart above shows both the Local Agency Investment Fund and California Asset Management Program’s average monthly yields beginning June 2022 through March 2023.

We anticipate that rates will remain fairly consistent, increasing only in small percentages in the upcoming months, considering the history in the past year and the current state of economy. CAMP shows better performance than LAIF in interest rates.

The difference between the performance of the two funds is partly due to the varying pool characteristics. CAMP’s portfolio composition is much more subject to market volatility, resulting in performance variation.

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

City of Palmdale and Successor Agency’s investment portfolios remain strongly diversified. The monthly and quarterly reports include all investments held by both entities and current book values as of March 31, 2023.

It is anticipated that both the City of Palmdale and Successor Agency will have sufficient moneys to meet its expenditure requirements for the next 6 months as we continue to monitor any financial impact due to the Coronavirus pandemic and the current economic conditions and the impact on interest rates.

0.86%

1.09%

1.28%

1.51%

1.77%

2.01% 2.17%

2.43% 2.62% 2.83%

1.14% 1.64% 2.30% 2.61%

3.14%

3.90%

4.30% 4.53% 4.73% 4.80%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Q4 Jun Jul Aug Q1 Sep Oct Nov Q2 Dec Jan Feb Q3 Mar
Pooled Investments Monthly Yields

LAIF CAMP
Report to Mayor and City Council
Re: Monthly and Quarterly Reports on Investments
May 3, 2023

Page 4 ends

Attached are summaries of the investments on the City of Palmdale and Successor Agency’s books as of March 31, 2023.

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: William P. Curley, III, Special Counsel

ATTACHMENTS

1. Monthly and Quarterly Reports on City of Palmdale Investments

2. Monthly and Quarterly Report on Successor Agency Investments

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
March 31, 2023

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 12-31-23 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 Note1/3/2023 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 03-08-23 03-31-26 CITY 9128286L9 U.S. Treasury Note (UBS) 2.25 3,200,000.00 3,029,330.80 3,029,330.80 TOTAL U.S. TREASURY SECURITIES 74,015,000.00$ 75,936,390.18$ 71,920,901.65$

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 01-06-23 02-25-27 CITY 3130AQRH8 Federal Home Loan Bank 4.38 5,000,000.00 4,590,638.89 4,590,638.89 01-06-23 04-19-27 CITY 3130ARHJ3 Federal Home Loan Bank 4.38 5,000,000.00 4,801,354.86 4,801,354.86 TOTAL GOVERNMENT AGENCY PAPER 106,160,000.00$ 104,459,584.08$ 99,781,605.03$

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
March 31, 2023

CORPORATE NOTES
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 7,075,000.00$ 7,075,000.00$ 6,990,452.81$

STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
09-01-84 n/a CITY ACCOUNT 98-19-620 0.78 47,529,033.02 47,529,033.02 47,529,033.02 06/23/08 n/a PCA ACCOUNT 40-19-060 0.78 40,617,787.13 40,617,787.13 40,617,787.13 n/a ARPA ACCOUNT 19-19-004 0.78 31,087,908.78 31,087,908.78 31,087,908.78 TOTAL LAIF ACCOUNTS 119,234,728.93$ 119,234,728.93$ 119,234,728.93$

CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM
6080-01 n/a CITY ACCOUNT 6080-01 0.30 256,024.07 256,024.07 256,024.07 TOTAL CAMP ACCOUNTS 256,024.07$ 256,024.07$ 256,024.07$

UBS FINANCIAL SERVICES
n/a n/a CITY ACCOUNT 0.00 46,548.23 46,548.23 46,548.23 TOTAL UBS FINANCIAL SERVICES ACCOUNTS 46,548.23$ 46,548.23$ 46,548.23$ TOTAL CITY INVESTMENTS 307,767,301.23$ 307,988,275.49$ 299,514,503.65$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
March 31, 2023

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 12,595.08
TOTAL LIBRARY INVESTMENTS 12,595.08$

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 0.35 108.75
05-10-95 n/a IMPROVEMENT 95421222 0.10 158,043.56
City Held Cash(Fund 736-114000) ($255,912.67)
TOTAL SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1 158,152.31$

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 2,637,181.87
04-06-95 n/a BOND 95420887 0.15 0.15
City Held Cash(Fund 738-114000) ($1,000,675.82)
TOTAL RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1 2,637,182.02$

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 20.28
08-01-19 n/a RESERVE 242969003 0.00 722,950.68
08-01-19 n/a SP TAX - REFUNDING BOND 242969004 0.01 15,149.99 08-01-19 n/a SP TAX - REFUNDING BOND COI242969005 0.01 Account Closed on 12/20/22 0.00 City Held Cash(Fund 734-114000) $892,871.96
TOTAL ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1 738,120.95$

LIBRARY INVESTMENTS

FISCAL AGENT CASH

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
March 31, 2023

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) $824,004.56
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) -$

BOND PROCEEDS
2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021 Fiscal Agent: U.S. Bank National Association (fka First Trust) n/a SPEC TRB SER A/B 251009000 0.01 81,928.64
n/a RESERVE FUND 251009001 0.01 641,043.92
City Held Cash
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021722,972.56$

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 59,760.09
11-08-06 n/a ADM EXP 106844002 0.01 1,626.30
11-08-06 n/a RESERVE FUND 106844003 0.01 96,324.83
City Held Cash(Fund 739-114000) $70,972.70
TOTAL 2006-1 Godde Hill Estate Sewer Improvements LOIB 157,711.22$

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
March 31, 2023

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 0.00 122.49
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 $8.7M LEASE REVENUE BONDS 122.49$
2013 HA PALMDALE TRANSIT VILLAGE HOMES LLC ESCROW
Fiscal Agent: U.S. Bank National Association (fka First Trust) 10-11-13 n/a ESCROW FUND 206455000 0.00 2,979,524.08
TOTAL 2013 HA TRANSIT VILLAGE HOMES ESCROW 2,979,524.08$ 2015 HA DEBT SERVICE RESERVE
Fiscal Agent: Bank of America
11-19-15 n/a DEBT SVC RESERVE 1257964992 0.08 39,443.54 TOTAL 2015 HA DEBT SERVICE RESERVE 39,443.54$

PARS RESTRICTED CASH FOR PENSION STABILIZATION TRUST FUND 05-23-18 n/a CITY 104790895775 Public Agency Retirement Services2.60 6,355,667.03 TOTAL PARS PENSION TRUST FUND 6,355,667.03$

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 0.00 147,311.74
09-03-15 n/a INTEREST ACCT 277067001 0.01 14.01
09-03-15 n/a BOND RESERVE 277067003 0.00 281,019.61
09-03-15 n/a REPAIR & REPLACE FUND 277067004 0.00 1,194,820.06 TOTAL 2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS 1,623,165.42$

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) $531,260.73
GRAND TOTAL - FISCAL AGENT CASH 14,689,091.45$

FISCAL AGENT CASH

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
March 31, 2023
Cash on Hand 5,070,157$
Pooled Cash Investments

City: 293,667,303$
Insur Fund: $5,847,200 299,514,503$
Library Investments $12,595

Subtotal 304,597,255$

City/AD/CFD/PCA/PFA/HA
Fiscal Agent Cash 14,689,091$ *

Grand total 319,286,346$

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 March 31, 2023.
\\cityofpalmdale.org\Finance\general\Cash and Investment\Investment\Investment Reports\22-23\09 Mar 2023\[09 Mar 2023 Investment Report City.xls]Staff Report Notes

SUMMARY OF CASH AND INVESTMENTS

Page 1 of 1 ends

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
March 31, 2023

CITY OF PALMDALE

POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF), CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP), & UBS FINANCIAL SERVICES March 31, 2023

TRANSACTION INTEREST

DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
CITY ACCOUNT 98-19-620
Beginning Balance 47,529,033.02$

Subtotal -$ -$ -$ 47,529,033.02$ PCA ACCOUNT 40-19-060
Beginning Balance 40,617,787.13$
Subtotal -$ -$ -$ 40,617,787.13$ LIBRARY ACCOUNT 16-19-012
Beginning Balance 12,595.08$
Subtotal -$ -$ -$ 12,595.08$ ARPA ACCOUNT 19-19-004
Beginning Balance 31,087,908.78$
Subtotal -$ -$ -$ 31,087,908.78$

CAMP - CALIFORNIA ASSET MANAGEMENT PROGRAM
Beginning Balance 254,985.10$
03/31/23 - $ 1,038.97$ Subtotal -$ -$ 1,038.97$ 256,024.07$ UBS Financial Services
Beginning Balance 3,076,210.16$
03/31/23 82,468.87 $
03/31/23 (82,800.00)$
03/08/23 (3,029,330.80)$
Subtotal -$ (3,112,130.80)$ 82,468.87$ 46,548.23$ Total -$ (3,112,130.80)$ 83,507.84$ 119,549,896.31$ 119,293,872.24$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
March 31, 2023
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) 30231GAR3 Exxon Mobil 03-10-20 03-01-23 03-01-23 1,000,000.00 13,630.00$ 1,013,630.00$ 999,932.43 $67.57 -$ $0.00
-$ $0.00
1,000,000.00$ 13,630.00$ 1,013,630.00$ 999,932.43$ $67.57 Total Number of Transactions: 1

CITY OF PALMDALE

POOLED CASH - INVESTMENTS MATURED OR CALLED
March 31, 2023

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
March 31, 2023
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 US Treasury Note 9128286L9 03-08-23TN 03-31-26 3,200,000.00$ (170,669.20)$ 3,029,330.80 31,450.55$ 3,060,781.35$ 2.25 -$ -$
-$ -$
-$ -$
-$
3,200,000.00$ (170,669.20)$ 3,029,330.80$ 31,450.55$ 3,060,781.35$ Total Number of Transactions: 1

CITY OF PALMDALE

POOLED CASH - INVESTMENTS PURCHASED
March 31, 2023

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

TREASURER'S REPORT OF INVESTMENTS
March 31, 2023

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 4,458,763.64
TOTAL LAIF ACCOUNTS 4,458,763.64$

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 2.54 534,371.14
08-20-02 n/a INTEREST ACCT 94460701 0.04 4,430.03
08-20-02 n/a PRINCIPAL ACCT 94460702 0.04 249.30

TOTAL CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) 539,050.47$

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 2.05
04-26-16 n/a INTEREST ACCT 245113001 N/A 0.00
TOTAL 2016 SA $31.5M Tax Allocation Refunding Bonds Series A 2.05$ GRAND TOTAL - FISCAL AGENT CASH $539,053

SUMMARY OF CASH AND INVESTMENTS
Cash on Hand 5,966,514$ 5,967,940.29$
($6,160)
Pooled Cash Investments 4,458,764$ $4,734
5,966,514.44$
Successor Agency Fiscal Agent Cash 539,053$ *

Grand total 10,964,331$

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

LAIF interest rates are as of March 31, 2023.
\\cityofpalmdale.org\Finance\general\Cash and Investment\Investment\Investment Reports\22-23\09 Mar 2023\[09 Mar 2023 Successor Investment Report.xls]Staff Report Notes

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

TREASURER'S REPORT OF INVESTMENTS

POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF)
March 31, 2023

TRANSACTION INTEREST

DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
SA ACCOUNT 65-19-035
Beginning Balance 4,458,763.64$
Subtotal -$ -$ -$ 4,458,763.64$

PORTFOLIO REVIEW AND ANALYSIS
City of Palmdale
Palmdale, CA
As of Date: 03/31/2023
Pricing as of: 03/31/2023
Date of Analysis: 04/11/2023
Account Executive: Bill Blackwill

Book Value
305,771
# Securities
49 Average Size (Book)
6,240
Book Yield

1.11 Market Yield

2.92 $ Gain/Loss
-9,844
% Gain/Loss
-3.2%
Average Life

1.22 Average Life +300bps

1.22 % Price Change +100bps
-1.09
% Price Change +300bps
-3.21
Effective Duration

1.08 Effective Convexity

0.00 AFS / HTM%
100% / 0%
Fixed / Floating
100% / 0%
ESG/Green Par (000's)
$0 / $0
Portfolio Overview
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 2 of 44 ends

Portfolio ID: 6748 - 58411

Historical Portfolio Overview
03/31/2023
12/31/2022
09/30/2022
06/30/2022
Book Value
305,771
277,592
292,384
275,907
Book Yield

1.11 1.07

1.09 1.11
Book Yield (+100)

1.11 1.07

1.09 1.11
Book Yield (+300)

1.11 1.07

1.09 1.11
Book Yield (-100)

1.11 1.07

1.09 1.11
WAL

1.22 1.29

1.40 1.57
WAL (+100)

1.22 1.29

1.40 1.57
WAL (+300)

1.22 1.29

1.40 1.57
WAL (-100)

1.22 1.29

1.40 1.55
% Price Change (+100)
-1.1%
-1.2%
-1.3%
-1.4%
% Price Change (+300)
-3.2%
-3.4%
-3.7%
-4.2%
% Price Change (-100)

1.1%

1.2%

1.3%

1.4%
Effective Duration

1.08 1.16

1.28 1.45
Effective Convexity

0.00 0.01

0.02 0.00
$ Gain/Loss
-9,844
-11,062
-11,635
-7,369
% Gain/Loss
-3.2%
-4.0%
-4.0%
-2.7%
Principal Cash Flow 2 yrs out
73%
73%
61%
59%
Principal Cash Flow 2 yrs out (+100)
73%
73%
61%
59%
Principal Cash Flow 2 yrs out (+300)
73%
73%
61%
59%
Principal Cash Flow 2 yrs out (-100)
73%
73%
61%
59%
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 3 of 44 ends

Portfolio ID: 6748 - 58411

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

24.2%
74,015

1.58 1.4 yrs
74,015

1.58 71,510

4.40 1.4
-1.4
-4.0
-2,505
-3.4%

1.44 1.37

0.03 100 %
Agency Bullet (4)

3.6%
11,000

1.93 1.5 yrs
11,000

1.92 10,646

4.43 1.4
-1.4
-3.9
-354
-3.2%

1.45 1.37

0.04 100 %
Callable Agency (20)

30.5%
93,210

1.02 2.6 yrs
93,210

1.02 86,242

4.33 2.3
-2.3
-6.9
-6,968
-7.5%

2.56 2.29
-0.03
100 %
Treasury/Agency (39)

58.3%
178,225

1.31 2.0 yrs
178,225

1.31 168,398

4.37 1.8
-1.8
-5.5
-9,827
-5.5%

2.03 1.84

0.00 100 %
Industrial (2)

2.3%
7,075

1.44 0.1 yrs
7,075

1.44 7,060

4.57 0.1
-0.1
-0.2
-15
-0.2%

0.06 0.06

0.00 100 %
Corporate (2)

2.3%
7,075

1.44 0.1 yrs
7,075

1.44 7,060

4.57 0.1
-0.1
-0.2
-15
-0.2%

0.06 0.06

0.00 100 %
NCD (4)

0.3%
980

3.14 0.1 yrs
980

3.09 979

4.10 0.1
-0.1
-0.3
-1
-0.1%

0.12 0.12

0.00 100 %
CD (4)

0.3%
980

3.14 0.1 yrs
980

3.09 979

4.10 0.1
-0.1
-0.3
-1
-0.1%

0.12 0.12

0.00 100 %
Cash & Other (4)

39.1%
119,491

0.78 0.1 yrs
119,491

0.78 119,491

0.78 0.1
-0.1
-0.2
0 0.0%

0.08 0.08

0.00 100 %
Other (4)

39.1%
119,491

0.78 0.1 yrs
119,491

0.78 119,491

0.78 0.1
-0.1
-0.2
0 0.0%

0.08 0.08

0.00 100 %
Total (49)
100.0%
305,771

1.11 1.2 yrs
305,771

1.11 295,927

2.92 1.1
-1.1
-3.2
-9,844
-3.2%

1.22 1.08

0.00 100 %
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 4 of 44 ends

Portfolio ID: 6748 - 58411

Shocked Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
305,771
305,771
305,771
305,771
305,771
305,771
305,771
Book Value
305,771
305,771
305,771
305,771
305,771
305,771
305,771
Market Value
305,019
302,188
299,118
295,927
292,714
289,539
286,433
Gain/(Loss)
-752
-3,583
-6,652
-9,844
-13,057
-16,231
-19,338
Gain/(Loss) %
-0.3%
-1.2%
-2.2%
-3.2%
-4.3%
-5.3%
-6.3%
Gain/(Loss) % - Chg from Base

3.1%

2.1%

1.1%

0.0%
-1.1%
-2.2%
-3.2%
Book Price
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Book Yield

1.11 1.11

1.11 1.11

1.11 1.11

1.11 Market Price

99.75 98.83

97.82 96.78

95.73 94.69

93.68 Market Yield

0.11 1.02

1.96 2.92

3.90 4.88

5.87 WAL

1.15 1.22

1.22 1.22

1.22 1.22

1.22 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 5 of 44 ends

Portfolio ID: 6748 - 58411

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

1.8%
168,398
-1.9%
-3.7%
-5.5%

1.8%
Corporate

0.1%
7,060
-0.1%
-0.1%
-0.2%

0.1%
CD

0.1%
979
-0.1%
-0.2%
-0.4%

0.1%
Other

0.1%
119,491
-0.1%
-0.2%
-0.3%

0.1%
Total

1.1%
295,927
-1.1%
-2.2%
-3.2%

1.1%
Scenario Market Val
299,118
295,927
292,714
289,539
286,433
Scenario Gain/Loss
-6,652
-9,844
-13,057
-16,231
-19,338
Total Portfolio (AFS + HTM):
% Change in Market Val from Level
-200 bps

2.1%
-100 bps

1.1%
Level Market Val
295,927
+100 bps
-1.1%
+200 bps
-2.2%
+300 bps
-3.2%
+400 bps
-4.2%
Effective Duration

1.08 Effective Convexity

0.00 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 6 of 44 ends

Portfolio ID: 6748 - 58411

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

Label
Muni
Corp
Oth
Fixed
AFS
1 03/23
301,944
-3.5

1.34 1.6

1.6 1.6

1.5 -1.5
-4.3

1.5 0.0
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
2 01/23
265,032
-4.2

0.44 1.1

1.1 1.1

1.1 -1.0
-3.1

1.1 0.0
83%
0%
0%
0%
0%
0%
0%
0%
17%
0%
0%
100%
100%
3 01/23
351,754
-4.7

1.21 1.7

1.6 1.7

1.5 -1.5
-4.5

1.5 0.0
77%
0%
0%
0%
0%
0%
0%
0%
18%
0%
6%
100%
100%
4 01/23
249,874
-4.7

2.04 2.5

2.5 2.5

2.4 -2.3
-6.6

2.3 0.1
67%
0%
0%
0%
0%
0%
0%
0%
12%
11%
10%
100%
100%
5 12/22
376,463
-2.9

1.31 1.0

1.0 1.1

0.9 -1.0
-2.9

0.9 0.0
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
6 01/23
229,612
-1.0

3.77 2.1

1.8 2.3

1.7 -1.7
-5.3

1.7 0.0
76%
0%
0%
0%
0%
0%
0%
0%
0%
4%
20%
100%
100%
7 12/22
217,820
-6.9

1.56 2.4

2.4 2.4

2.2 -2.1
-6.3

2.2 0.0
63%
0%
0%
0%
0%
0%
0%
0%
13%
21%
4%
100%
100%
8 01/23
402,382
-5.1

1.87 2.2

2.2 2.2

1.6 -1.6
-4.8

1.6 0.0
37%
2%
2%
0%
0%
0%
8%
0%
16%
36%
0%
84%
100%
9 01/23
189,125
-5.9
-0.04

1.6 1.5

1.6 1.4
-1.4
-4.3

1.4 0.0
50%
0%
0%
0%
0%
0%
0%
0%
47%
3%
0%
100%
100%
10 03/23
187,875
-6.5

2.38 4.7

4.7 4.8

4.2 -4.0
-11.6

4.1 0.1
56%
2%
0%
0%
0%
2%
0%
0%
28%
13%
0%
100%
100%
11 02/23
187,030
-7.6

1.68 2.6

2.6 2.6

2.3 -2.3
-6.9

2.3 0.0
85%
0%
0%
0%
0%
0%
0%
0%
1%
14%
0%
100%
100%
12 03/23
186,118
-1.6

3.65 2.2

2.1 2.4

1.8 -1.8
-5.3

1.8 0.0
17%
1%
5%
9%
1%
9%
0%
0%
23%
36%
0%
77%
100%
13 03/23
176,960
-5.4

1.82 2.3

2.2 2.5

1.9 -2.0
-6.1

1.9 -0.1
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
14 02/23
166,340
-4.9

2.70 2.8

2.8 2.8

2.6 -2.6
-7.5

2.6 0.0
66%
0%
0%
0%
0%
0%
0%
0%
21%
0%
13%
100%
100%
15 02/23
451,528
-0.6

4.48 5.3

6.5 3.8

0.8 -0.4
-1.3

0.2 0.0
11%
0%
0%
0%
0%
0%
89%
0%
0%
0%
0%
11%
100%
16 03/23
142,777
-3.3

2.87 1.4

1.4 1.5

1.2 -1.2
-3.6

1.2 0.0
38%
0%
0%
0%
0%
0%
0%
0%
31%
10%
21%
100%
16%
17 12/22
134,469
-4.9

2.26 2.3

2.2 2.3

2.1 -2.0
-5.9

2.0 0.0
55%
0%
0%
0%
0%
0%
0%
0%
14%
10%
22%
100%
100%
18 02/23
128,268
-5.8

1.41 2.1

2.1 2.1

2.0 -1.9
-5.6

1.9 0.1
74%
0%
0%
0%
0%
0%
0%
0%
0%
0%
26%
100%
100%
19 02/23
110,808

0.1 1.75

1.8 1.4

2.7 1.4
-1.7
-5.6

1.5 -0.5
71%
0%
0%
0%
0%
1%
0%
0%
0%
0%
28%
100%
100%
20 03/23
89,963
-4.6

2.79 2.7

2.4 2.9

2.0 -2.2
-6.6

2.1 -0.1
83%
0%
0%
0%
0%
0%
0%
0%
0%
9%
7%
98%
100%
21 01/23
533,804
-2.8

3.36 2.4

2.3 2.6

1.8 -1.9
-5.9

1.8 -0.1
86%
0%
0%
0%
0%
0%
0%
0%
14%
0%
0%
98%
100%
22 02/23
72,574
-5.6

2.01 2.2

2.1 2.2

1.9 -1.9
-5.7

1.9 -0.1
71%
0%
0%
0%
0%
8%
0%
0%
0%
0%
21%
99%
100%
23 02/23
61,606
-11.4

2.27 5.7

5.0 7.1

4.3 -4.2
-12.6

4.2 0.1
2%
21%
1%
38%
0%
4%
2%
0%
24%
0%
7%
96%
100%
24 02/23
54,573
-2.5

4.14 2.4

2.1 2.4

1.8 -1.9
-5.6

1.8 0.0
91%
9%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
25 02/23
46,275
-8.8

1.91 3.2

2.9 3.2

2.6 -2.7
-8.0

2.6 -0.1
72%
0%
0%
0%
0%
0%
0%
0%
2%
0%
26%
100%
100%
Avg
212,599
-4.6

2.20 2.5

2.4 2.6

1.9 -2.0
-5.8

1.9 0.0
65%
1%
0%
2%
0%
1%
4%
0%
11%
7%
8%
94%
97%
Port
305,771
-3.2

1.11 1.2

1.2 1.2

1.1 -1.1
-3.2

1.1 0.0
58%
0%
0%
0%
0%
0%
0%
0%
0%
2%
39%
100%
100%
Diff
93,172

1.4 -1.09
-1.3
-1.2
-1.4
-0.9

0.9 2.6
-0.8

0.0 -7%
-1%
0%
-2%
0%
-1%
-4%
0%
-11%
-4%
31%
6%
3%
* Peer group includes Public Entitys that have received portfolio analysis from Stifel in the last three months with the closest portfolio book values.

City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 7 of 44 ends

Portfolio ID: 6748 - 58411

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

City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 8 of 44 ends

Portfolio ID: 6748 - 58411

Cash Flow and Rolloff Yield - Next 12 Months
Yield Rolloff
Month
Begin BY
Principal CF
Rolloff Yld
Ending BY
Apr 2023

1.11 124,491

0.81 1.32
May 2023

1.32 5,870

2.23 1.28
Jun 2023

1.28 5,000

2.12 1.26
Jul 2023

1.26 0

1.26 Aug 2023

1.26 0

1.26 Sep 2023

1.26 0

1.26 Oct 2023

1.26 0

1.26 Nov 2023

1.26 0

1.26 Dec 2023

1.26 29,000

1.22 1.27
Jan 2024

1.27 0

1.27 Feb 2024

1.27 0

1.27 Mar 2024

1.27 0

1.27 Shocked Principal and Interest Cash Flow Analysis
Year
-300
-200
-100
Base
+100
+200
+300
Apr 2023
129,805
124,805
124,805
124,805
124,805
124,805
124,805
May 2023
5,948
5,948
5,948
5,948
5,948
5,948
5,948
Jun 2023
5,637
5,637
5,637
5,637
5,637
5,637
5,637
Jul 2023
48 48
48 48
48 48
48 Aug 2023
120
120
120
120
120
120
120
Sep 2023
110
110
110
110
110
110
110
Oct 2023
115
195
195
195
195
195
195
Nov 2023
15 15
15 15
15 15
15 Dec 2023
29,587
29,587
29,587
29,587
29,587
29,587
29,587
Jan 2024
48 48
48 48
48 48
48 Feb 2024
120
120
120
120
120
120
120
Mar 2024
110
110
110
110
110
110
110
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 9 of 44 ends

Portfolio ID: 6748 - 58411

Cash Flow and Rolloff Yield - Next 10 Years
Yield Rolloff
Year
Begin BY
Principal CF
Rolloff Yld
Ending BY
2023

1.11 164,361

0.97 1.27
2024

1.27 45,750

1.08 1.36
2025

1.36 60,460

1.16 1.70
2026

1.70 20,200

1.45 2.02
2027

2.02 15,000

2.02 2028
2029
2030
2031
2032
Shocked Principal and Interest Cash Flow Analysis
Year
-300
-200
-100
Base
+100
+200
+300
2023
171,385
166,465
166,465
166,465
166,465
166,465
166,465
2024
47,316
47,474
47,474
47,474
47,474
47,474
47,474
2025
61,469
61,628
61,628
61,628
61,628
61,628
61,628
2026
20,544
20,703
20,703
20,703
20,703
20,703
20,703
2027
10,073
15,152
15,152
15,152
15,152
15,152
15,152
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 10 of 44 ends

Portfolio ID: 6748 - 58411

Sector Cash Flow - Next 12 Months
Apr 23
May 23
Jun 23
Jul 23
Aug 23
Sep 23
Oct 23
Nov 23
Dec 23
Jan 24
Feb 24
Mar 24
Bk Yld Chg
Treasury/Agency
Cash Flow
194
2,869
5,637
48 120
110
195
15 29,587
48 120
110
End BY

1.31 1.28

1.26 1.26

1.26 1.26

1.26 1.26

1.27 1.27

1.27 1.27
-0.04
Corporate
Cash Flow
5,039
2,087
End BY

1.14 CD
Cash Flow
1 992
End BY

3.09 Other
Cash Flow
119,571
End BY
Total
Cash Flow
124,805
5,948
5,637
48 120
110
195
15 29,587
48 120
110
End BY

1.32 1.28

1.26 1.26

1.26 1.26

1.26 1.26

1.27 1.27

1.27 1.27
-0.05
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 11 of 44 ends

Portfolio ID: 6748 - 58411

Sector Cash Flow - Next 3 Years
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
2Q25
3Q25
4Q25
1Q26
Bk Yld Chg
Treasury/Agency
Cash Flow
8,699
278
29,797
278
10,618
4,280
32,298
7,273
20,377
18,546
15,432
6,346
End BY

1.26 1.26

1.27 1.27

1.26 1.29

1.36 1.38

1.51 1.70

1.70 1.55

0.29 Corporate
Cash Flow
7,126
End BY
CD
Cash Flow
993
End BY
Other
Cash Flow
119,571
End BY
Total
Cash Flow
136,389
278
29,797
278
10,618
4,280
32,298
7,273
20,377
18,546
15,432
6,346
End BY

1.26 1.26

1.27 1.27

1.26 1.29

1.36 1.38

1.51 1.70

1.70 1.55

0.29 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 12 of 44 ends

Portfolio ID: 6748 - 58411

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

0.25 411
-1,190

0.72 0.50
822
-779

0.86 0.75
1,233
-369

0.99 1.00
1,644
42 1.12

1.25 2,055
453

1.26 1.50
2,465
864

1.39 1.75
2,876
1,275

1.53 2.00
3,287
1,686

1.66 2.25
3,698
2,097

1.80 2.50
4,109
2,508

1.93 2.75
4,520
2,919

2.06 3.00
4,931
3,330

2.20 3.25
5,342
3,740

2.33 3.50
5,753
4,151

2.47 3.75
6,164
4,562

2.60 4.00
6,574
4,973

2.74 4.25
6,985
5,384

2.87 4.50
7,396
5,795

3.01 4.75
7,807
6,206

3.14 5.00
8,218
6,617

3.27 5.25
8,629
7,028

3.41 5.50
9,040
7,439

3.54 5.75
9,451
7,849

3.68 6.00
9,862
8,260

3.81 6.25
10,273
8,671

3.95 6.50
10,683
9,082

4.08 6.75
11,094
9,493

4.21 7.00
11,505
9,904

4.35 7.25
11,916
10,315

4.48 7.50
12,327
10,726

4.62 7.75
12,738
11,137

4.75 8.00
13,149
11,548

4.89 Principal Maturing(12 Mo.Horizon): $164,361
Current Book Yield of Principal Maturing: 0.97%
Est. Annual Income at Current Book Yield: $1,601
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 13 of 44 ends

Portfolio ID: 6748 - 58411

Shocked Cash Flows By Sector - Next 10 Years
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 14 of 44 ends

Portfolio ID: 6748 - 58411

Cash Flows By Sector - Next 30 Years
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 15 of 44 ends

Portfolio ID: 6748 - 58411

Cash Flow Projection By Month - Next 5 Years
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 16 of 44 ends

Portfolio ID: 6748 - 58411

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

1.4 yrs
100.00

96.62 -2,505
-3.4%

1.44 1.4

1.37 0.03
Treasury (15)

41.5%
74,015

1.58 74,015

1.58 71,510

4.40 -5,357
-7.2%

1.44 -4.0
100.0%

1.5 yrs
100.00

96.78 -354
-3.2%

1.45 1.4

1.37 0.04
Agency Bullet (4)

6.2%
11,000

1.93 11,000

1.92 10,646

4.43 -774
-7.0%

1.45 -3.9
100.0%

2.6 yrs
100.00

92.52 -6,968
-7.5%

2.56 2.3

2.29 -0.03
Callable Agency (20)

52.3%
93,210

1.02 0.2 yrs
93,210

1.02 86,242

4.33 -12,877
-13.8%

2.56 -6.9
100.0%

2.0 yrs
100.00

94.49 -9,827
-5.5%

2.03 1.8

1.84 0.00
Total (39)
100.0%
178,225

1.31 0.2 yrs
178,225

1.31 168,398

4.37 -19,008
-10.7%

2.03 -5.5
100.0%
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 17 of 44 ends

Portfolio ID: 6748 - 58411

Agency - Sector Cash Flow and Yield Rolloff - Next 3 Years 2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
2Q25
3Q25
4Q25
1Q26
Bk Yld Chg
Cash Flow
8,699
278
29,797
278
10,618
4,280
32,298
7,273
20,377
18,546
15,432
6,346
End BY

1.26 1.26

1.27 1.27

1.26 1.29

1.36 1.38

1.51 1.70

1.70 1.55

0.29 Cash Flow
8,699
278
29,797
278
10,618
4,280
32,298
7,273
20,377
18,546
15,432
6,346
End BY

1.26 1.26

1.27 1.27

1.26 1.29

1.36 1.38

1.51 1.70

1.70 1.55

0.29 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 18 of 44 ends

Portfolio ID: 6748 - 58411

Shocked Agency Projected Call Schedule
Callable Agency Rate Shock Analysis
–
Projected Par Value Redeemed at NEXT Call Date
–
Monthly
-100
-75
-50
-25
0 25
50 75
100
Mar 23
-
-
-
-
-
-
-
-
-
Apr 23
-
-
-
-
-
-
-
-
-
May 23
-
-
-
-
-
-
-
-
-
Jun 23
-
-
-
-
-
-
-
-
-
Jul 23
-
-
-
-
-
-
-
-
-
Aug 23
-
-
-
-
-
-
-
-
-
Sep 23
-
-
-
-
-
-
-
-
-
Oct 23
-
-
-
-
-
-
-
-
-
Nov 23
-
-
-
-
-
-
-
-
-
Dec 23
-
-
-
-
-
-
-
-
-
Jan 24
-
-
-
-
-
-
-
-
-
Feb 24
-
-
-
-
-
-
-
-
-
Callable Agency Rate Shock Analysis
–
Projected Par Value Redeemed at NEXT Call Date
–
Quarterly
-100
-75
-50
-25
0 25
50 75
100
1Q23
-
-
-
-
-
-
-
-
-
2Q23
-
-
-
-
-
-
-
-
-
3Q23
-
-
-
-
-
-
-
-
-
4Q23
-
-
-
-
-
-
-
-
-
1Q24
-
-
-
-
-
-
-
-
-
2Q24
-
-
-
-
-
-
-
-
-
3Q24
-
-
-
-
-
-
-
-
-
4Q24
-
-
-
-
-
-
-
-
-
1Q25
-
-
-
-
-
-
-
-
-
2Q25
-
-
-
-
-
-
-
-
-
3Q25
-
-
-
-
-
-
-
-
-
4Q25
-
-
-
-
-
-
-
-
-
1Q26
-
-
-
-
-
-
-
-
-
2Q26
-
-
-
-
-
-
-
-
-
3Q26
-
-
-
-
-
-
-
-
-
4Q26
-
-
-
-
-
-
-
-
-
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 19 of 44 ends

Portfolio ID: 6748 - 58411

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

CUSIP
Issuer
Cpn
Type
Maturity
Value
Call
Type
Price
Loss
-300
-200
-100
Base
+100
+200
+300
19 3133EL2X1
FFCB

0.42 Fixed
05/06/24
2,000
04/18/23
Anytime

95.280
-94
05/24
05/24
05/24
05/24
05/24
05/24
05/24
20 3130AMQR6
FHLB

0.35 Fixed
06/07/24
3,000
06/07/23
Quarterly

94.890
-153
06/24
06/24
06/24
06/24
06/24
06/24
06/24
21 3130AMHH8
FHLB

0.41 Fixed
08/01/24
4,000
06/01/23
Quarterly

94.490
-220
08/24
08/24
08/24
08/24
08/24
08/24
08/24
22 3134GWNG7
FHLMC

0.50 Fixed
11/27/24
2,000
05/27/23
Quarterly

93.640
-127
11/24
11/24
11/24
11/24
11/24
11/24
11/24
26 3130AQDY6
FHLB

1.00 Fixed
12/30/24
6,750
04/18/23
Anytime

94.280
-386
12/24
12/24
12/24
12/24
12/24
12/24
12/24
28 3130AQEA7
FHLB

1.05 Fixed
01/14/25
7,000
07/14/23
Quarterly

93.990
-421
01/25
01/25
01/25
01/25
01/25
01/25
01/25
29 3133EMUP5
FFCB

0.71 Fixed
04/01/25
5,000
04/18/23
Anytime

92.980
-351
04/25
04/25
04/25
04/25
04/25
04/25
04/25
30 3133ENHW3
FFCB

1.17 Fixed
06/23/25
10,000
04/18/23
Anytime

93.400
-660
06/25
06/25
06/25
06/25
06/25
06/25
06/25
31 3133ELK37
FFCB

0.78 Fixed
06/16/25
5,000
04/18/23
Anytime

92.670
-367
06/25
06/25
06/25
06/25
06/25
06/25
06/25
32 3136G4ZP1
FNMA

0.65 Fixed
07/30/25
3,500
04/30/23
Quarterly

92.130
-275
07/25
07/25
07/25
07/25
07/25
07/25
07/25
33 3133EL3P7
FFCB

0.53 Fixed
08/12/25
1,810
04/18/23
Anytime

91.770
-149
08/25
08/25
08/25
08/25
08/25
08/25
08/25
36 3134GWUG9
FHLMC

0.57 Fixed
09/24/25
10,000
06/24/23
Quarterly

91.520
-848
09/25
09/25
09/25
09/25
09/25
09/25
09/25
37 3134GXBM5
FHLMC

0.60 Fixed
11/12/25
1,150
05/12/23
Quarterly

91.150
-102
11/25
11/25
11/25
11/25
11/25
11/25
11/25
39 3130AMRQ7
FHLB

0.88 Fixed
12/30/25
3,000
06/30/23
Quarterly

91.480
-256
12/25
12/25
12/25
12/25
12/25
12/25
12/25
44 3130AN5C0
FHLB

1.05 Fixed
04/29/26
4,000
04/29/23
Quarterly

90.990
-360
04/26
04/26
04/26
04/26
04/26
04/26
04/26
47 3134GW4C7
FHLMC

0.80 Fixed
10/27/26
5,000
04/27/23
Quarterly

89.090
-546
10/26
10/26
10/26
10/26
10/26
10/26
10/26
48 3133ENJC5
FFCB

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

90.310
-485
12/26
12/26
12/26
12/26
12/26
12/26
12/26
49 3130AL5A8
FHLB

0.90 Fixed
02/26/27
5,000
05/26/23
Quarterly

88.850
-558
02/27
02/27
02/27
02/27
02/27
02/27
02/27
46 3130AQRH8
FHLB

2.00 Fixed
02/25/27
5,000
05/25/23
Quarterly

92.360
-382
02/27
02/27
02/27
02/27
02/27
02/27
02/27
42 3130ARHJ3
FHLB

3.18 Fixed
04/19/27
5,000
04/19/23
Monthly

95.430
-229
04/23
04/27
04/27
04/27
04/27
04/27
04/27

1.02 93,210

92.525
-6,968
Shocked Agency Projected Call Schedule - Next 12 Months -300
-200
-100
Base
+100
+200
+300
Mar 23
-
-
-
-
-
-
-
Apr 23
5,000
-
-
-
-
-
-
May 23
-
-
-
-
-
-
-
Jun 23
-
-
-
-
-
-
-
Jul 23
-
-
-
-
-
-
-
Aug 23
-
-
-
-
-
-
-
Sep 23
-
-
-
-
-
-
-
Oct 23
-
-
-
-
-
-
-
Nov 23
-
-
-
-
-
-
-
Dec 23
-
-
-
-
-
-
-
Jan 24
-
-
-
-
-
-
-
Feb 24
-
-
-
-
-
-
-
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 20 of 44 ends

Portfolio ID: 6748 - 58411

Agency - Risk/Reward Analysis
Top 5 Market Yields
Security
Mkt
Mkt
Eff.
% Px
Δ
CUSIP
Description
Subsector
Value
Yld
Dur
Up 300
3133EL2X1
FFCB 0.42 05/06/24
Callable Agency
1,906

4.88%

1.06 -3.1
3133EKPT7
FFCB 2 1/8 06/05/23
Agency Bullet
4,976

4.87%

0.18 -0.5
3130AMQR6
FHLB 0.35 06/07/24
Callable Agency
2,847

4.83%

1.14 -3.3
9128284S6
T 2 3/4 05/31/23
Treasury
2,805

4.81%

0.17 -0.5
912828V23
T 2 1/4 12/31/23
Treasury
3,927

4.77%

0.73 -2.1
Bottom 5 Market Yields
Security
Mkt
Mkt
Eff.
% Px
Δ
CUSIP
Description
Subsector
Value
Yld
Dur
Up 300
9128286L9
T 2 1/4 03/31/26
Treasury
3,060

3.80%

2.84 -8.1
9128286F2
T 2 1/2 02/28/26
Treasury
2,890

3.84%

2.75 -7.9
9128285T3
T 2 5/8 12/31/25
Treasury
2,903

3.87%

2.59 -7.5
9128285T3
T 2 5/8 12/31/25
Treasury
4,839

3.87%

2.59 -7.5
3130AL5A8
FHLB 0.9 02/26/27
Callable Agency
4,443

4.01%

3.57 -10.4
Top 5 Price Volatility (% price change +300)
Security
Mkt
Mkt
Eff.
% Px
Δ
CUSIP
Description
Subsector
Value
Yld
Dur
Up 300
3130AL5A8
FHLB 0.9 02/26/27
Callable Agency
4,443

4.01%

3.57 -10.4
3130AQRH8
FHLB 2 02/25/27
Callable Agency
4,618

4.14%

3.20 -9.9
3133ENJC5
FFCB 1.29 12/22/26
Callable Agency
4,516

4.12%

3.30 -9.8
3134GW4C7
FHLMC 0.8 10/27/26
Callable Agency
4,455

4.11%

3.30 -9.6
3130ARHJ3
FHLB 3.175 04/19/27
Callable Agency
4,772

4.42%

2.59 -9.3
Next 5 Projected Redemptions
Security
Mkt
Mkt
Eff.

CUSIP
Description
Subsector
Value
Yld
Dur
Mat/Call
9128284S6
T 2 3/4 05/31/23
Treasury
2,805

4.81%

0.17 05/01/23
3133EKPT7
FFCB 2 1/8 06/05/23
Agency Bullet
4,976

4.87%

0.18 06/01/23
9128285U0
T 2 5/8 12/31/23
Treasury
4,924

4.72%

0.73 12/01/23
912828V23
T 2 1/4 12/31/23
Treasury
3,927

4.77%

0.73 12/01/23
912828V23
T 2 1/4 12/31/23
Treasury
4,909

4.77%

0.73 12/01/23
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 21 of 44 ends

Portfolio ID: 6748 - 58411

Corporate - Summary
Rating
Book
Market
G/L $
G/L %
WAL
% Px
Δ
Dur
Cvx
Sector
Par
Moody's
Price
Price
Base
Base
Base
-100
Base
Base
Subsector
%
Value
Cpn
Maturity
S&P
Value
Yield
Value
Yield
+ 300
+ 300
+ 300
+300
AFS %
Aa2
100.00

99.78 -15
-0.2%

0.06 0.1

0.06 0.00
Industrial (2)
100.0%
7,075

1.44 0.1 yrs
AA-
7,075

1.44 7,060

4.57 -29
-0.4%

0.06 -0.2
100.0%
Aa2
100.00

99.78 -15
-0.2%

0.06 0.1

0.06 0.00
Total (2)
100.0%
7,075

1.44 0.1 yrs
AA-
7,075

1.44 7,060

4.57 -29
-0.4%

0.06 -0.2
100.0%
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 22 of 44 ends

Portfolio ID: 6748 - 58411

Corporate - Rating Summary
Combined Rating Summary
Maturity Summary
Combined Rating
% Balance
Par Value
Book Yield
Eff. Duration
Maturity Range
% Balance
Par Value
Book Yield
Combined
Rating
AAA
-
-
-
-
< 1 Yr
100.0%
7,075

1.44 AA
AA
100.0%
7,075

1.44 0.06

1.00 Yr - 2.99 Yr
-
-
-
-
A
-
-
-
-

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

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

7.00 Yr - 9.99 Yr
-
-
-
-
B or Below
-
-
-
-
10 Yr +
-
-
-
-
NR
-
-
-
-
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 23 of 44 ends

Portfolio ID: 6748 - 58411

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

0.1 yrs
100.00

99.89 -1
-0.1%

0.12 0.1

0.12 0.00
NCD (4)
100.0%
980

3.14 980

3.09 979

4.10 -5
-0.5%

0.12 -0.3
100.0%

0.1 yrs
100.00

99.89 -1
-0.1%

0.12 0.1

0.12 0.00
Total (4)
100.0%
980

3.14 980

3.09 979

4.10 -5
-0.5%

0.12 -0.3
100.0%
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 24 of 44 ends

Portfolio ID: 6748 - 58411

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

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.08 0.00
Cash & Other (4)
100.0%
119,491

0.78 119,491

0.78 119,491

0.78 -297
-0.2%

0.08 -0.2
100.0%

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.08 0.00
Total (4)
100.0%
119,491

0.78 119,491

0.78 119,491

0.78 -297
-0.2%

0.08 -0.2
100.0%
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 25 of 44 ends

Portfolio ID: 6748 - 58411

Portfolio Considerations
Par
Book
Market
Gain/
Book
Eff.

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

Life
Life
Count
Book Yield < 2%
31 0.81

1.1 yrs
252,776
100.00

96.62 -8,537

0.81 1.1

1.00 Treasury
5 0.63

1.3 yrs
35,000
100.00

95.65 -1,524

0.63 1.3

1.23 Agency Bullet
1 0.50

2.6 yrs
3,000
100.00

91.38 -259

0.50 2.6

2.52 Callable Agency
19 0.90

2.5 yrs
88,210
100.00

92.36 -6,739

0.90 2.5

2.27 Industrial
2 1.44

0.1 yrs
7,075
100.00

99.78 -15

1.44 0.1

0.06 Cash & Other
4 0.78

0.1 yrs
119,491
100.00
100.00
0 0.78

0.1 0.08
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 26 of 44 ends

Portfolio ID: 6748 - 58411

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

CUSIP
Sector
Description
Cpn
Maturity
Value
Price
Price
G/L
Yield
WAL
+300
+300
+300
Dur
INT
3130AL5A8
Callable Agency
FHLB 0.9 02/26/27

0.90 02/26/27
5,000
100.00

88.85 -558

0.900

3.91 -10.41
-462
-1,020

3.57 AFS
3130AQRH8
Callable Agency
FHLB 2 02/25/27

2.00 02/25/27
5,000
100.00

92.36 -382

2.000

3.90 -9.93
-458
-840

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

1.29 12/22/26
5,000
100.00

90.31 -485

1.290

3.73 -9.84
-444
-929

3.30 AFS
3134GW4C7
Callable Agency
FHLMC 0.8 10/27/26

0.80 10/27/26
5,000
100.00

89.09 -546

0.800

3.58 -9.62
-429
-974

3.30 AFS
3130ARHJ3
Callable Agency
FHLB 3.175 04/19/27

3.18 04/19/27
5,000
100.00

95.43 -229

3.175

4.05 -9.29
-443
-672

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

1.05 04/29/26
4,000
100.00

90.99 -360

1.050

3.08 -8.33
-303
-664

2.82 AFS
9128286L9
Treasury
T 2 1/4 03/31/26

2.25 03/31/26
3,200
100.00

95.64 -140

2.250

3.00 -8.10
-248
-387

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

2.50 02/28/26
3,000
100.00

96.34 -110

2.500

2.92 -7.87
-227
-337

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

0.88 12/30/25
3,000
100.00

91.48 -256

0.875

2.75 -7.53
-207
-462

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

2.63 12/31/25
5,000
100.00

96.77 -162

2.624

2.75 -7.46
-361
-523

2.59 AFS

1.75 43,200
100.00

92.54 -3,225

1.747

3.44 -8.96
-3,583
-6,808

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

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

0.57 09/24/25
10,000
100.00

91.52 -848

0.570

2.48 -6.89
-631
-1,479

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

1.17 06/23/25
10,000
100.00

93.40 -660

1.170

2.23 -6.14
-574
-1,234

2.06 AFS
3130AL5A8
Callable Agency
FHLB 0.9 02/26/27

0.90 02/26/27
5,000
100.00

88.85 -558

0.900

3.91 -10.41
-462
-1,020

3.57 AFS
3130AQRH8
Callable Agency
FHLB 2 02/25/27

2.00 02/25/27
5,000
100.00

92.36 -382

2.000

3.90 -9.93
-458
-840

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

1.00 12/15/24
10,000
100.00

94.75 -525

1.001

1.71 -4.78
-453
-978

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

1.29 12/22/26
5,000
100.00

90.31 -485

1.290

3.73 -9.84
-444
-929

3.30 AFS
3130ARHJ3
Callable Agency
FHLB 3.175 04/19/27

3.18 04/19/27
5,000
100.00

95.43 -229

3.175

4.05 -9.29
-443
-672

2.59 AFS
3134GW4C7
Callable Agency
FHLMC 0.8 10/27/26

0.80 10/27/26
5,000
100.00

89.09 -546

0.800

3.58 -9.62
-429
-974

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

2.63 12/31/25
5,000
100.00

96.77 -162

2.624

2.75 -7.46
-361
-523

2.59 AFS
3130AQEA7
Callable Agency
FHLB 1.05 01/14/25

1.05 01/14/25
7,000
100.00

93.99 -421

1.050

1.79 -4.99
-328
-749

1.70 AFS

1.32 67,000
100.00

92.82 -4,813

1.324

2.78 -7.37
-4,583
-9,396

2.45 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 27 of 44 ends

Portfolio ID: 6748 - 58411

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

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

0.57 09/24/25
10,000
100.00

91.52 -848

0.570

2.48 -6.89
-631
-1,479

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

1.17 06/23/25
10,000
100.00

93.40 -660

1.170

2.23 -6.14
-574
-1,234

2.06 AFS
3130AL5A8
Callable Agency
FHLB 0.9 02/26/27

0.90 02/26/27
5,000
100.00

88.85 -558

0.900

3.91 -10.41
-462
-1,020

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

1.00 12/15/24
10,000
100.00

94.75 -525

1.001

1.71 -4.78
-453
-978

1.64 AFS
3134GW4C7
Callable Agency
FHLMC 0.8 10/27/26

0.80 10/27/26
5,000
100.00

89.09 -546

0.800

3.58 -9.62
-429
-974

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

1.29 12/22/26
5,000
100.00

90.31 -485

1.290

3.73 -9.84
-444
-929

3.30 AFS
3130AQRH8
Callable Agency
FHLB 2 02/25/27

2.00 02/25/27
5,000
100.00

92.36 -382

2.000

3.90 -9.93
-458
-840

3.20 AFS
3130AQEA7
Callable Agency
FHLB 1.05 01/14/25

1.05 01/14/25
7,000
100.00

93.99 -421

1.050

1.79 -4.99
-328
-749

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

1.00 12/30/24
6,750
100.00

94.28 -386

1.000

1.75 -4.87
-310
-696

1.65 AFS
3130ARHJ3
Callable Agency
FHLB 3.175 04/19/27

3.18 04/19/27
5,000
100.00

95.43 -229

3.175

4.05 -9.29
-443
-672

2.59 AFS

1.20 68,750
100.00

92.67 -5,038

1.197

2.68 -7.11
-4,532
-9,570

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

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

0.57 09/24/25
10,000
100.00

91.52 -848

0.570
-6.89

2.35 2.48

2.48 0.00
AFS
3133ENHW3
Callable Agency
FFCB 1.17 06/23/25

1.17 06/23/25
10,000
100.00

93.40 -660

1.170
-6.14

2.06 2.23

2.23 0.00
AFS
3130AL5A8
Callable Agency
FHLB 0.9 02/26/27

0.90 02/26/27
5,000
100.00

88.85 -558

0.900
-10.41

3.57 3.91

3.91 0.00
AFS
91282CDN8
Treasury
T 1 12/15/24

1.00 12/15/24
10,000
100.00

94.75 -525

1.001
-4.78

1.64 1.71

1.71 0.00
AFS
3134GW4C7
Callable Agency
FHLMC 0.8 10/27/26

0.80 10/27/26
5,000
100.00

89.09 -546

0.800
-9.62

3.30 3.58

3.58 0.00
AFS
3133ENJC5
Callable Agency
FFCB 1.29 12/22/26

1.29 12/22/26
5,000
100.00

90.31 -485

1.290
-9.84

3.30 3.73

3.73 0.00
AFS
3130AQRH8
Callable Agency
FHLB 2 02/25/27

2.00 02/25/27
5,000
100.00

92.36 -382

2.000
-9.93

3.20 3.90

3.90 0.00
AFS
3130AQEA7
Callable Agency
FHLB 1.05 01/14/25

1.05 01/14/25
7,000
100.00

93.99 -421

1.050
-4.99

1.70 1.79

1.79 0.00
AFS
3130AQDY6
Callable Agency
FHLB 1 12/30/24

1.00 12/30/24
6,750
100.00

94.28 -386

1.000
-4.87

1.65 1.75

1.75 0.00
AFS
3130ARHJ3
Callable Agency
FHLB 3.175 04/19/27

3.18 04/19/27
5,000
100.00

95.43 -229

3.175
-9.29

2.59 4.05

4.05 0.00
AFS

1.20 68,750
100.00

92.67 -5,038

1.197
-7.11

2.36 2.68

2.68 0.00
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 28 of 44 ends

Portfolio ID: 6748 - 58411

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

CUSIP
Cpn Type
Next Call Dt
Step Date
Proj.

Price
Price
bp
→

call
%
-100
Dur
ESG/Gr
Security Description
Ticker
Par
Coupon
Call Type
Step Cpn
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
91282CBA8
Fixed
12/23
100.00

96.84 -3.2%

0.7 0.69
T 0 1/8 12/15/23
T
10,000

0.125
12/15/23
10,000

0.12 9,684

4.71 -316
-2.0

0.01 AFS
91282CBA8
Fixed
12/23
100.00

96.84 -3.2%

0.7 0.69
T 0 1/8 12/15/23
T
5,000

0.125
12/15/23
5,000

0.12 4,842

4.71 -158
-2.0

0.01 AFS
9128285U0
Fixed
12/23
100.00

98.48 -1.5%

0.7 0.73
T 2 5/8 12/31/23
T
5,000

2.625
12/31/23
5,000

2.63 4,924

4.72 -76
-2.1

0.01 AFS
912828V23
Fixed
12/23
100.00

98.17 -1.8%

0.7 0.73
T 2 1/4 12/31/23
T
5,000

2.250
12/31/23
5,000

2.26 4,909

4.77 -92
-2.1

0.01 AFS
912828V23
Fixed
12/23
100.00

98.17 -1.8%

0.7 0.73
T 2 1/4 12/31/23
T
4,000

2.250
12/31/23
4,000

2.26 3,927

4.77 -73
-2.1

0.01 AFS
9128286R6
Fixed
04/24
100.00

97.50 -2.5%

1.0 1.03
T 2 1/4 04/30/24
T
5,000

2.250
04/30/24
5,000

2.25 4,875

4.64 -125
-3.0

0.02 AFS
91282CDN8
Fixed
12/24
100.00

94.75 -5.3%

1.7 1.64
T 1 12/15/24
T
10,000

1.000
12/15/24
10,000

1.00 9,475

4.22 -525
-4.8

0.04 AFS
91282CDN8
Fixed
12/24
100.00

94.75 -5.3%

1.7 1.64
T 1 12/15/24
T
5,000

1.000
12/15/24
5,000

1.00 4,738

4.22 -263
-4.8

0.04 AFS
91282CDN8
Fixed
12/24
100.00

94.75 -5.3%

1.7 1.64
T 1 12/15/24
T
5,000

1.000
12/15/24
5,000

1.00 4,738

4.22 -263
-4.8

0.04 AFS
9128283P3
Fixed
12/24
100.00

96.72 -3.3%

1.7 1.67
T 2 1/4 12/31/24
T
3,000

2.250
12/31/24
3,000

2.25 2,902

4.22 -98
-4.9

0.04 AFS
9128284S6
Fixed
05/23
100.00

99.66 -0.3%

0.2 0.17
T 2 3/4 05/31/23
T
2,815

2.750
05/31/23
2,815

2.75 2,805

4.81 -10
-0.5

0.00 AFS
9128285T3
Fixed
12/25
100.00

96.77 -3.2%

2.6 2.59
T 2 5/8 12/31/25
T
5,000

2.625
12/31/25
5,000

2.62 4,839

3.87 -162
-7.5

0.08 AFS
9128285T3
Fixed
12/25
100.00

96.77 -3.2%

2.6 2.59
T 2 5/8 12/31/25
T
3,000

2.625
12/31/25
3,000

2.62 2,903

3.87 -97
-7.5

0.08 AFS
9128286F2
Fixed
02/26
100.00

96.34 -3.7%

2.8 2.75
T 2 1/2 02/28/26
T
3,000

2.500
02/28/26
3,000

2.50 2,890

3.84 -110
-7.9

0.09 AFS
9128286L9
Fixed
03/26
100.00

95.64 -4.4%

2.9 2.84
T 2 1/4 03/31/26
T
3,200

2.250
03/31/26
3,200

2.25 3,060

3.80 -140
-8.1

0.10 AFS
Treasury
100.00

96.62 -3.4%

1.4 1.37
74,015

1.577
74,015

1.58 71,510

4.40 -2,505
-4.0

0.03 3133EKPT7
Fixed
06/23
100.00

99.51 -0.5%

0.2 0.18
FFCB 2 1/8 06/05/23
FFCB
5,000

2.125
06/05/23
5,000

2.12 4,976

4.87 -25
-0.5

0.00 AFS
3135G06G3
Fixed
11/25
100.00

91.38 -8.6%

2.6 2.52
FNMA 0 1/2 11/07/25
FNMA
3,000

0.500
11/07/25
3,000

0.50 2,741

4.02 -259
-7.2

0.07 AFS
3133EJYM5
Fixed
09/25
100.00

97.63 -2.4%

2.3 2.30
FFCB 3.02 09/04/25
FFCB
1,000

3.020
09/04/25
1,000

3.02 976

4.05 -24
-6.6

0.06 AFS
3133EJYM5
Fixed
09/25
100.00

97.63 -2.4%

2.3 2.30
FFCB 3.02 09/04/25
FFCB
2,000

3.020
09/04/25
2,000

3.02 1,953

4.05 -47
-6.6

0.06 AFS
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 29 of 44 ends

Portfolio ID: 6748 - 58411

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

CUSIP
Cpn Type
Next Call Dt
Step Date
Proj.

Price
Price
bp
→

call
%
-100
Dur
ESG/Gr
Security Description
Ticker
Par
Coupon
Call Type
Step Cpn
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
Agency Bullet
100.00

96.78 -3.2%

1.4 1.37
11,000

1.926
11,000

1.92 10,646

4.43 -354
-3.9

0.04 3134GWUG9
Fixed
06/24/23
09/25
100.00

91.52 -517
-8.5%

2.3 2.35
FHLMC 0.57 09/24/25
FHLMC
10,000

0.570
Quarterly
09/24/25
10,000

0.57 9,152

4.20 -848
-6.9

0.06 AFS
3134GXBM5
Fixed
05/12/23
11/25
100.00

91.15 -525
-8.9%

2.5 2.47
FHLMC 0.6 11/12/25
FHLMC
1,150

0.600
Quarterly
11/12/25
1,150

0.60 1,048

4.21 -102
-7.2

0.03 AFS
3130AMRQ7
Fixed
06/30/23
12/25
100.00

91.48 -504
-8.5%

2.5 2.56
FHLB 0 7/8 12/30/25
FHLB
3,000

0.875
Quarterly
12/30/25
3,000

0.87 2,744

4.19 -256
-7.5

0.03 AFS
3130AQRH8
Fixed
05/25/23
02/27
100.00

92.36 -399
-7.6%

3.0 3.20
FHLB 2 02/25/27
FHLB
5,000

2.000
Quarterly
02/25/27
5,000

2.00 4,618

4.14 -382
-9.9
-0.17
AFS
3134GW4C7
Fixed
04/27/23
10/26
100.00

89.09 -514
-10.9%

3.3 3.30
FHLMC 0.8 10/27/26
FHLMC
5,000

0.800
Quarterly
10/27/26
5,000

0.80 4,455

4.11 -546
-9.6
-0.03
AFS
3133ENJC5
Fixed
12/22/23
12/26
100.00

90.31 -445
-9.7%

3.2 3.30
FFCB 1.29 12/22/26
FFCB
5,000

1.290
Anytime
12/22/26
5,000

1.29 4,516

4.12 -485
-9.8
-0.02
AFS
3130AL5A8
Fixed
05/26/23
02/27
100.00

88.85 -506
-11.2%

3.5 3.57
FHLB 0.9 02/26/27
FHLB
5,000

0.900
Quarterly
02/26/27
5,000

0.90 4,443

4.01 -558
-10.4
-0.08
AFS
3130AN5C0
Fixed
04/29/23
04/26
100.00

90.99 -482
-9.0%

2.8 2.82
FHLB 1.05 04/29/26
FHLB
4,000

1.050
Quarterly
04/29/26
4,000

1.05 3,640

4.20 -360
-8.3

0.01 AFS
3130ARHJ3
Fixed
04/19/23
04/27
100.00

95.43 -296
-4.6%

2.3 2.59
FHLB 3.175 04/19/27
FHLB
5,000

3.175
Monthly
04/19/27
5,000

3.17 4,772

4.42 -229
-9.3
-0.56
AFS
3130AQEA7
Fixed
07/14/23
01/25
100.00

93.99 -470
-6.0%

1.7 1.70
FHLB 1.05 01/14/25
FHLB
7,000

1.050
Quarterly
01/14/25
7,000

1.05 6,579

4.59 -421
-5.0

0.03 AFS
3133EMUP5
Fixed
04/18/23
04/25
100.00

92.98 -518
-7.0%

1.9 1.90
FFCB 0.71 04/01/25
FFCB
5,000

0.710
Anytime
04/01/25
5,000

0.71 4,649

4.41 -351
-5.6
-0.02
AFS
3133ENHW3
Fixed
04/18/23
06/25
100.00

93.40 -463
-6.6%

2.0 2.06
FFCB 1.17 06/23/25
FFCB
10,000

1.170
Anytime
06/23/25
10,000

1.17 9,340

4.30 -660
-6.1

0.02 AFS
3133ELK37
Fixed
04/18/23
06/25
100.00

92.67 -504
-7.3%

2.1 2.08
FFCB 0.78 06/16/25
FFCB
5,000

0.780
Anytime
06/16/25
5,000

0.78 4,634

4.29 -367
-6.1
-0.04
AFS
3136G4ZP1
Fixed
04/30/23
07/25
100.00

92.13 -516
-7.9%

2.2 2.20
FNMA 0.65 07/30/25
FNMA
3,500

0.650
Quarterly
07/30/25
3,500

0.65 3,225

4.23 -275
-6.5
-0.01
AFS
3133EL3P7
Fixed
04/18/23
08/25
100.00

91.77 -532
-8.2%

2.2 2.24
FFCB 0.53 08/12/25
FFCB
1,810

0.530
Anytime
08/12/25
1,810

0.53 1,661

4.22 -149
-6.6

0.03 AFS
3130AQDY6
Fixed
04/18/23
12/24
100.00

94.28 -470
-5.7%

1.6 1.65
FHLB 1 12/30/24
FHLB
6,750

1.000
Anytime
12/30/24
6,750

1.00 6,364

4.43 -386
-4.9

0.02 AFS
3133EL2X1
Fixed
04/18/23
05/24
100.00

95.28 -523
-4.7%

1.1 1.06
FFCB 0.42 05/06/24
FFCB
2,000

0.420
Anytime
05/06/24
2,000

0.42 1,906

4.88 -94
-3.1

0.02 AFS
3130AMQR6
Fixed
06/07/23
06/24
100.00

94.89 -525
-5.1%

1.2 1.14
FHLB 0.35 06/07/24
FHLB
3,000

0.350
Quarterly
06/07/24
3,000

0.35 2,847

4.83 -153
-3.3

0.02 AFS
3130AMHH8
Fixed
06/01/23
08/24
100.00

94.49 -521
-5.5%

1.3 1.28
FHLB 0.41 08/01/24
FHLB
4,000

0.410
Quarterly
08/01/24
4,000

0.41 3,780

4.71 -220
-3.7

0.02 AFS
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 30 of 44 ends

Portfolio ID: 6748 - 58411

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

CUSIP
Cpn Type
Next Call Dt
Step Date
Proj.

Price
Price
bp
→

call
%
-100
Dur
ESG/Gr
Security Description
Ticker
Par
Coupon
Call Type
Step Cpn
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
3134GWNG7
Fixed
05/27/23
11/24
100.00

93.64 -507
-6.4%

1.6 1.59
FHLMC 0 1/2 11/27/24
FHLMC
2,000

0.500
Quarterly
11/27/24
2,000

0.50 1,873

4.52 -127
-4.6

0.02 AFS
Callable Agency
100.00

92.52 -7.5%

2.3 2.29
93,210

1.020
93,210

1.02 86,242

4.33 -6,968
-6.9
-0.03
Total
100.00

94.49 -5.5%

1.8 1.84
178,225

1.307
178,225

1.31 168,398

4.37 -9,827
-5.5

0.00 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 31 of 44 ends

Portfolio ID: 6748 - 58411

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

CUSIP
Sector
Par
Index
S&P
Price
Price
%
-100
Dur
ESG/Gr
Security Description
Subsector
Value
Cpn
Maturity
Margin
Moody's
Value
Yield
Value
Yield
$
+300
Cvx
Intent
30231GBL5
Industrial
AA-
100.00

99.89 -0.1%

0.0 0.04
XOM 1.571 04/15/23
Energy Company
5,000

1.571
04/15/23
Aa2
5,000

1.57 4,995

4.23 -6
-0.1

0.00 AFS
166764BV1
Industrial
AA-
100.00

99.52 -0.5%

0.1 0.11
CVX 1.141 05/11/23
Energy Company
2,075

1.141
05/11/23
Aa2
2,075

1.14 2,065

5.41 -10
-0.3

0.00 AFS
Industrial
AA-
100.00

99.78 -0.2%

0.1 0.06
7,075

1.445
Aa2
7,075

1.44 7,060

4.57 -15
-0.2

0.00 Total
AA-
100.00

99.78 -0.2%

0.1 0.06
7,075

1.445
Aa2
7,075

1.44 7,060

4.57 -15
-0.2

0.00 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 32 of 44 ends

Portfolio ID: 6748 - 58411

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

Price
Price
%
-100
Dur
ESG/G
r
Security Description
Ticker
Value
Rate
Rate
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
61747MX30
Fixed
05/23
100.00

99.73 -0.3%

0.1 0.11
MS 3.15 05/10/23
MS
245

3.150
05/10/23
245

3.09 244

5.54 -1
-0.3

0.00 AFS
87164WWF1
Fixed
05/23
100.00
100.00

0.0%

0.1 0.11
SYF 3.15 05/11/23
SYF
245

3.150
05/11/23
245

3.09 245

3.09 0
-0.3

0.00 AFS
17312QL23
Fixed
05/23
100.00

99.82 -0.2%

0.1 0.11
C 3.15 05/11/23
C
245

3.150
05/11/23
245

3.09 245

4.68 0
-0.3

0.00 AFS
20033AYE0
Fixed
05/23
100.00
100.00

0.0%

0.1 0.12
ADS 3.1 05/15/23
ADS
245

3.100
05/15/23
245

3.08 245

3.08 0
-0.4

0.00 AFS
NCD
100.00

99.89 -0.1%

0.1 0.12
980

3.138
980

3.09 979

4.10 -1
-0.3

0.00 Total
100.00

99.89 -0.1%

0.1 0.12
980

3.138
980

3.09 979

4.10 -1
-0.3

0.00 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 33 of 44 ends

Portfolio ID: 6748 - 58411

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

Price
Price
%
-100
Dur
ESG/G
r
CUSIP
Ticker
Value
Rate
Rate
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
Fixed
04/23
100.00
100.00

0.0%

0.1 0.08

PLMDLCAMP
256

0.300
04/30/23
256

0.30 256

0.30 0
-0.2

0.00 AFS
Fixed
04/23
100.00
100.00

0.0%

0.1 0.08

PLMDLLAIF
31,088

0.780
04/30/23
31,088

0.78 31,088

0.78 0
-0.2

0.00 AFS
Fixed
04/23
100.00
100.00

0.0%

0.1 0.08

PLMDLLAIF
47,529

0.780
04/30/23
47,529

0.78 47,529

0.78 0
-0.2

0.00 AFS
Fixed
04/23
100.00
100.00

0.0%

0.1 0.08

PLMDLLAIF
40,618

0.780
04/30/23
40,618

0.78 40,618

0.78 0
-0.2

0.00 AFS
100.00
100.00

0.0%

0.1 0.08
Cash & Other
119,491

0.779
119,491

0.78 119,491

0.78 0
-0.2

0.00 100.00
100.00

0.0%

0.1 0.08
Total
119,491

0.779
119,491

0.78 119,491

0.78 0
-0.2

0.00 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 34 of 44 ends

Portfolio ID: 6748 - 58411

Shocked CUSIP Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
WAL
Dur
WAL
WAL
WAL
WAL
2,000
61 3.21%
41 2.15%
20 1.07%
0 0.00%
-20
-1.05%
-40
-2.08%
-59
-3.09%
3133EL2X1

0.42 98.34

1.95 97.33

2.91 96.30

3.89 95.28

4.88 94.28

5.86 93.30

6.85 92.34

7.82 FFCB 0.42 05/06/24
05/06/2024

1.10 1.10

1.10 1.06

1.10 1.10

1.10 1.10
1,810
105

6.30%
73 4.38%
37 2.24%
0 0.00%
-37
-2.24%
-74
-4.43%
-109
-6.58%
3133EL3P7

0.53 97.55

1.59 95.79

2.37 93.82

3.26 91.77

4.22 89.72

5.20 87.70

6.20 85.73

7.19 FFCB 0.53 08/12/25
08/12/2025

2.37 2.37

2.37 2.24

2.37 2.37

2.37 2.37
5,000
249

5.36%
173

3.71%
88 1.89%
0 0.00%
-88
-1.90%
-175
-3.76%
-260
-5.59%
3133EMUP5

0.71 97.96

1.75 96.43

2.55 94.74

3.45 92.98

4.41 91.22

5.40 89.48

6.39 87.78

7.38 FFCB 0.71 04/01/25
04/01/2025

2.00 2.00

2.00 1.90

2.00 2.00

2.00 2.00
5,000
267

5.77%
187

4.03%
96 2.06%
0 0.00%
-96
-2.08%
-191
-4.13%
-284
-6.14%
3133ELK37

0.78 98.02

1.70 96.40

2.46 94.58

3.34 92.67

4.29 90.74

5.27 88.84

6.26 86.98

7.26 FFCB 0.78 06/16/25
06/16/2025

2.21 2.21

2.21 2.08

2.21 2.21

2.21 2.21
10,000
514

5.50%
365

3.91%
190

2.03%
0 0.00%
-193
-2.07%
-385
-4.13%
-574
-6.14%
3133ENHW3

1.17 98.54

1.84 97.05

2.54 95.30

3.38 93.40

4.30 91.47

5.27 89.55

6.26 87.66

7.26 FFCB 1.17 06/23/25
06/23/2025

2.23 2.23

2.23 2.06

2.23 2.23

2.23 2.23
5,000
385

8.52%
278

6.16%
147

3.24%
0 0.00%
-151
-3.34%
-300
-6.64%
-444
-9.84%
3133ENJC5

1.29 98.01

1.85 95.87

2.46 93.24

3.23 90.31

4.12 87.30

5.07 84.32

6.05 81.43

7.04 FFCB 1.29 12/22/26
12/22/2026

3.73 3.73

3.73 3.30

3.73 3.73

3.73 3.73
5,000
27 0.55%
18 0.37%
9 0.18%
0 0.00%
-9
-0.18%
-18
-0.36%
-27
-0.55%
3133EKPT7

2.13 100.06

1.79 99.88

2.81 99.69

3.84 99.51

4.87 99.33

5.90 99.15

6.93 98.97

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

0.18 0.18

0.18 0.18

0.18 0.18

0.18 0.18
1,000
70 7.20%
46 4.73%
23 2.33%
0 0.00%
-22
-2.27%
-44
-4.48%
-65
-6.63%
3133EJYM5

3.02 104.66

1.07 102.25

2.06 99.91

3.06 97.63

4.05 95.41

5.05 93.26

6.05 91.16

7.04 FFCB 3.02 09/04/25
09/04/2025

2.43 2.43

2.43 2.30

2.43 2.43

2.43 2.43
2,000
141

7.20%
92 4.73%
46 2.33%
0 0.00%
-44
-2.27%
-87
-4.48%
-129
-6.63%
3133EJYM5

3.02 104.66

1.07 102.25

2.06 99.91

3.06 97.63

4.05 95.41

5.05 93.26

6.05 91.16

7.04 FFCB 3.02 09/04/25
09/04/2025

2.43 2.43

2.43 2.30

2.43 2.43

2.43 2.43
3,000
190

6.94%
134

4.89%
69 2.53%
0 0.00%
-70
-2.56%
-139
-5.08%
-207
-7.53%
3130AMRQ7

0.88 97.83

1.69 95.96

2.40 93.80

3.25 91.48

4.19 89.14

5.16 86.84

6.15 84.59

7.14 FHLB 0 7/8 12/30/25
12/30/2025

2.75 2.75

2.75 2.56

2.75 2.75

2.75 2.75
3,000
99 3.47%
66 2.32%
33 1.15%
0 0.00%
-32
-1.13%
-64
-2.24%
-95
-3.33%
3130AMQR6

0.35 98.18

1.91 97.09

2.86 95.98

3.84 94.89

4.83 93.82

5.82 92.76

6.81 91.73

7.78 FHLB 0.35 06/07/24
06/07/2024

1.19 1.19

1.19 1.14

1.19 1.19

1.19 1.19
4,000
146

3.86%
98 2.60%
49 1.30%
0 0.00%
-48
-1.27%
-95
-2.52%
-142
-3.75%
3130AMHH8

0.41 98.14

1.83 96.95

2.75 95.72

3.73 94.49

4.71 93.29

5.70 92.11

6.68 90.95

7.67 FHLB 0.41 08/01/24
08/01/2024

1.34 1.34

1.34 1.28

1.34 1.34

1.34 1.34
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 35 of 44 ends

Portfolio ID: 6748 - 58411

Shocked CUSIP Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
WAL
Dur
WAL
WAL
WAL
WAL
5,000
423

9.52%
302

6.80%
156

3.52%
0 0.00%
-158
-3.56%
-313
-7.05%
-462
-10.41%
3130AL5A8

0.90 97.31

1.61 94.89

2.28 91.98

3.10 88.85

4.01 85.68

4.98 82.59

5.96 79.60

6.95 FHLB 0.9 02/26/27
02/26/2027

3.91 3.91

3.91 3.57

3.91 3.91

3.91 3.91
6,750
292

4.59%
204

3.21%
104

1.64%
0 0.00%
-105
-1.65%
-208
-3.27%
-310
-4.87%
3130AQDY6

1.00 98.61

1.81 97.30

2.59 95.83

3.48 94.28

4.43 92.73

5.41 91.19

6.40 89.69

7.39 FHLB 1 12/30/24
12/30/2024

1.75 1.75

1.75 1.65

1.75 1.75

1.75 1.75
7,000
314

4.77%
218

3.31%
111

1.69%
0 0.00%
-111
-1.69%
-221
-3.36%
-328
-4.99%
3130AQEA7

1.05 98.47

1.92 97.10

2.72 95.58

3.62 93.99

4.59 92.40

5.57 90.83

6.56 89.30

7.56 FHLB 1.05 01/14/25
01/14/2025

1.79 1.79

1.79 1.70

1.79 1.79

1.79 1.79
4,000
275

7.56%
196

5.38%
102

2.79%
0 0.00%
-103
-2.83%
-205
-5.62%
-303
-8.33%
3130AN5C0

1.05 97.87

1.76 95.88

2.45 93.53

3.27 90.99

4.20 88.41

5.17 85.88

6.15 83.41

7.14 FHLB 1.05 04/29/26
04/29/2026

3.08 3.08

3.08 2.82

3.08 3.08

3.08 3.08
5,000
339

7.34%
256

5.54%
140

3.03%
0 0.00%
-152
-3.29%
-307
-6.64%
-458
-9.93%
3130AQRH8

2.00 99.14

2.23 97.48

2.68 95.16

3.33 92.36

4.14 89.32

5.05 86.22

6.01 83.19

6.99 FHLB 2 02/25/27
02/25/2027

3.90 3.90

3.90 3.20

3.90 3.90

3.90 3.90
5,000
231

4.84%
189

3.96%
111

2.33%
0 0.00%
-137
-2.87%
-288
-6.04%
-443
-9.29%
3130ARHJ3

3.18 100.05

2.21 99.21

3.38 97.66

3.80 95.43

4.42 92.69

5.20 89.67

6.09 86.57

7.04 FHLB 3.175 04/19/27
04/19/2027

0.05 4.05

4.05 2.59

4.05 4.05

4.05 4.05
2,000
88 4.67%
60 3.18%
30 1.60%
0 0.00%
-30
-1.58%
-59
-3.13%
-87
-4.65%
3134GWNG7

0.50 98.02

1.72 96.62

2.60 95.14

3.54 93.64

4.52 92.16

5.51 90.71

6.50 89.29

7.49 FHLMC 0 1/2 11/27/24
11/27/2024

1.66 1.66

1.66 1.59

1.66 1.66

1.66 1.66
10,000
603

6.59%
420

4.59%
215

2.35%
0 0.00%
-215
-2.34%
-425
-4.65%
-631
-6.89%
3134GWUG9

0.57 97.55

1.58 95.72

2.36 93.67

3.24 91.52

4.20 89.37

5.19 87.27

6.18 85.21

7.18 FHLMC 0.57 09/24/25
09/24/2025

2.48 2.48

2.48 2.35

2.48 2.48

2.48 2.48
1,150
72 6.91%
50 4.82%
26 2.46%
0 0.00%
-26
-2.46%
-51
-4.88%
-76
-7.24%
3134GXBM5

0.60 97.45

1.60 95.54

2.37 93.40

3.25 91.15

4.21 88.90

5.19 86.70

6.18 84.55

7.18 FHLMC 0.6 11/12/25
11/12/2025

2.62 2.62

2.62 2.47

2.62 2.62

2.62 2.62
5,000
402

9.02%
284

6.38%
146

3.28%
0 0.00%
-147
-3.30%
-290
-6.51%
-429
-9.62%
3134GW4C7

0.80 97.12

1.63 94.77

2.33 92.01

3.18 89.09

4.11 86.15

5.08 83.29

6.07 80.52

7.06 FHLMC 0.8 10/27/26
10/27/2026

3.58 3.58

3.58 3.30

3.58 3.58

3.58 3.58
3,000
217

7.92%
143

5.20%
70 2.56%
0 0.00%
-68
-2.49%
-134
-4.90%
-199
-7.25%
3135G06G3

0.50 98.62

1.04 96.13

2.03 93.72

3.03 91.38

4.02 89.11

5.02 86.90

6.01 84.76

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

2.60 2.60

2.60 2.52

2.60 2.60

2.60 2.60
3,500
198

6.14%
138

4.28%
71 2.19%
0 0.00%
-71
-2.20%
-141
-4.36%
-209
-6.47%
3136G4ZP1

0.65 97.79

1.62 96.08

2.39 94.15

3.28 92.13

4.23 90.10

5.21 88.11

6.20 86.17

7.20 FNMA 0.65 07/30/25
07/30/2025

2.33 2.33

2.33 2.20

2.33 2.33

2.33 2.33
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 36 of 44 ends

Portfolio ID: 6748 - 58411

Shocked CUSIP Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
WAL
Dur
WAL
WAL
WAL
WAL
10,000
205

2.12%
136

1.40%
67 0.70%
0 0.00%
-66
-0.69%
-132
-1.36%
-196
-2.03%
91282CBA8

0.13 98.89

1.70 98.20

2.71 97.51

3.71 96.84

4.71 96.18

5.71 95.52

6.70 94.88

7.69 T 0 1/8 12/15/23
12/15/2023

0.71 0.71

0.71 0.69

0.71 0.71

0.71 0.71
5,000
103

2.12%
68 1.40%
34 0.70%
0 0.00%
-33
-0.69%
-66
-1.36%
-98
-2.03%
91282CBA8

0.13 98.89

1.70 98.20

2.71 97.51

3.71 96.84

4.71 96.18

5.71 95.52

6.70 94.88

7.69 T 0 1/8 12/15/23
12/15/2023

0.71 0.71

0.71 0.69

0.71 0.71

0.71 0.71
5,000
243

5.12%
160

3.37%
79 1.67%
0 0.00%
-77
-1.63%
-153
-3.22%
-226
-4.78%
91282CDN8

1.00 99.60

1.24 97.95

2.23 96.33

3.23 94.75

4.22 93.21

5.21 91.70

6.20 90.22

7.18 T 1 12/15/24
12/15/2024

1.71 1.71

1.71 1.64

1.71 1.71

1.71 1.71
5,000
243

5.12%
160

3.37%
79 1.67%
0 0.00%
-77
-1.63%
-153
-3.22%
-226
-4.78%
91282CDN8

1.00 99.60

1.24 97.95

2.23 96.33

3.23 94.75

4.22 93.21

5.21 91.70

6.20 90.22

7.18 T 1 12/15/24
12/15/2024

1.71 1.71

1.71 1.64

1.71 1.71

1.71 1.71
10,000
485

5.12%
320

3.37%
158

1.67%
0 0.00%
-154
-1.63%
-305
-3.22%
-453
-4.78%
91282CDN8

1.00 99.60

1.24 97.95

2.23 96.33

3.23 94.75

4.22 93.21

5.21 91.70

6.20 90.22

7.18 T 1 12/15/24
12/15/2024

1.71 1.71

1.71 1.64

1.71 1.71

1.71 1.71
3,000
251

8.69%
165

5.69%
81 2.80%
0 0.00%
-78
-2.71%
-154
-5.33%
-227
-7.87%
9128286F2

2.50 104.71

0.86 101.83

1.85 99.04

2.85 96.34

3.84 93.73

4.83 91.20

5.82 88.76

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

2.92 2.92

2.92 2.75

2.92 2.92

2.92 2.92
3,200
274

8.96%
180

5.87%
88 2.89%
0 0.00%
-85
-2.79%
-168
-5.49%
-248
-8.10%
9128286L9

2.25 104.21

0.83 101.26

1.82 98.40

2.81 95.64

3.80 92.97

4.79 90.39

5.79 87.89

6.78 T 2 1/4 03/31/26
03/31/2026

3.00 3.00

3.00 2.84

3.00 3.00

3.00 3.00
5,000
157

3.21%
103

2.12%
51 1.05%
0 0.00%
-50
-1.03%
-99
-2.04%
-148
-3.03%
9128286R6

2.25 100.63

1.66 99.57

2.66 98.52

3.65 97.50

4.64 96.50

5.63 95.51

6.61 94.55

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

1.08 1.08

1.08 1.03

1.08 1.08

1.08 1.08
5,000
110

2.24%
73 1.48%
36 0.74%
0 0.00%
-36
-0.73%
-71
-1.44%
-105
-2.14%
912828V23

2.25 100.37

1.76 99.63

2.76 98.89

3.77 98.17

4.77 97.46

5.77 96.76

6.76 96.07

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

0.75 0.75

0.75 0.73

0.75 0.75

0.75 0.75
4,000
88 2.24%
58 1.48%
29 0.74%
0 0.00%
-28
-0.73%
-57
-1.44%
-84
-2.14%
912828V23

2.25 100.37

1.76 99.63

2.76 98.89

3.77 98.17

4.77 97.46

5.77 96.76

6.76 96.07

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

0.75 0.75

0.75 0.73

0.75 0.75

0.75 0.75
3,000
151

5.22%
100

3.44%
49 1.70%
0 0.00%
-48
-1.66%
-95
-3.28%
-141
-4.87%
9128283P3

2.25 101.77

1.23 100.04

2.23 98.36

3.22 96.72

4.22 95.11

5.21 93.55

6.20 92.01

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

1.75 1.75

1.75 1.67

1.75 1.75

1.75 1.75
2,815
14 0.51%
10 0.34%
5 0.17%
0 0.00%
-5
-0.17%
-9
-0.34%
-14
-0.51%
9128284S6

2.75 100.17

1.73 100.00

2.75 99.83

3.78 99.66

4.81 99.49

5.84 99.32

6.88 99.16

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

0.17 0.17

0.17 0.17

0.17 0.17

0.17 0.17
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 37 of 44 ends

Portfolio ID: 6748 - 58411

Shocked CUSIP Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
WAL
Dur
WAL
WAL
WAL
WAL
5,000
110

2.24%
73 1.48%
36 0.74%
0 0.00%
-36
-0.72%
-71
-1.44%
-105
-2.14%
9128285U0

2.63 100.69

1.71 99.94

2.71 99.20

3.72 98.48

4.72 97.77

5.72 97.06

6.71 96.37

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

0.75 0.75

0.75 0.73

0.75 0.75

0.75 0.75
5,000
396

8.19%
260

5.38%
128

2.65%
0 0.00%
-124
-2.56%
-244
-5.05%
-361
-7.46%
9128285T3

2.63 104.70

0.89 101.97

1.89 99.33

2.88 96.77

3.87 94.29

4.87 91.88

5.86 89.55

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

2.75 2.75

2.75 2.59

2.75 2.75

2.75 2.75
3,000
238

8.19%
156

5.38%
77 2.65%
0 0.00%
-74
-2.56%
-147
-5.05%
-217
-7.46%
9128285T3

2.63 104.70

0.89 101.97

1.89 99.33

2.88 96.77

3.87 94.29

4.87 91.88

5.86 89.55

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

2.75 2.75

2.75 2.59

2.75 2.75

2.75 2.75
Treasury/Agency
178,225
8,777

5.21%
6,051

3.59%
3,087

1.83%
0 0.00%
-3,108
-1.85%
-6,178
-3.67%
-9,181
-5.45%

1.31 99.41

1.61 97.88

2.49 96.22

3.41 94.49

4.37 92.74

5.35 91.02

6.34 89.33

7.34 1.92

2.03 2.03

1.84 2.03

2.03 2.03

2.03 2,075
7 0.34%
5 0.23%
2 0.11%
0 0.00%
-2
-0.11%
-5
-0.23%
-7
-0.34%
166764BV1

1.14 99.86

2.37 99.75

3.38 99.63

4.39 99.52

5.41 99.41

6.44 99.29

7.46 99.18

8.49 CVX 1.141 05/11/23
05/11/2023

0.11 0.11

0.11 0.11

0.11 0.11

0.11 0.11
5,000
6 0.13%
4 0.08%
2 0.04%
0 0.00%
-2
-0.04%
-4
-0.08%
-6
-0.13%
30231GBL5

1.57 100.02

1.19 99.97

2.20 99.93

3.21 99.89

4.23 99.85

5.25 99.81

6.27 99.76

7.30 XOM 1.571 04/15/23
04/15/2023

0.04 0.04

0.04 0.04

0.04 0.04

0.04 0.04
Corporate
7,075
13 0.19%
9 0.13%
4 0.06%
0 0.00%
-4
-0.06%
-9
-0.13%
-13
-0.19%

1.44 99.97

1.54 99.91

2.54 99.84

3.56 99.78

4.57 99.72

5.59 99.66

6.62 99.59

7.65 0.06

0.06 0.06

0.06 0.06

0.06 0.06

0.06 245
1 0.37%
1 0.25%
0 0.12%
0 0.00%
0 -0.12%
-1
-0.25%
-1
-0.37%
20033AYE0

3.10 100.37

0.07 100.25

1.07 100.12

2.07 100.00

3.08 99.88

4.09 99.75

5.10 99.63

6.12 ADS 3.1 05/15/23
05/15/2023

0.13 0.13

0.13 0.12

0.13 0.13

0.13 0.13
245
1 0.34%
1 0.23%
0 0.11%
0 0.00%
0 -0.11%
-1
-0.23%
-1
-0.34%
17312QL23

3.15 100.16

1.65 100.05

2.66 99.93

3.67 99.82

4.68 99.71

5.70 99.59

6.72 99.48

7.75 C 3.15 05/11/23
05/11/2023

0.11 0.11

0.11 0.11

0.11 0.11

0.11 0.11
245
1 0.34%
1 0.22%
0 0.11%
0 0.00%
0 -0.11%
-1
-0.22%
-1
-0.33%
61747MX30

3.15 100.07

2.50 99.95

3.51 99.84

4.52 99.73

5.54 99.62

6.57 99.51

7.59 99.40

8.62 MS 3.15 05/10/23
05/10/2023

0.11 0.11

0.11 0.11

0.11 0.11

0.11 0.11
245
1 0.34%
1 0.23%
0 0.11%
0 0.00%
0 -0.11%
-1
-0.23%
-1
-0.34%
87164WWF1

3.15 100.34

0.08 100.23

1.08 100.11

2.08 100.00

3.09 99.89

4.10 99.77

5.11 99.66

6.13 SYF 3.15 05/11/23
05/11/2023

0.11 0.11

0.11 0.11

0.11 0.11

0.11 0.11
CD
980
3 0.35%
2 0.23%
1 0.12%
0 0.00%
-1
-0.12%
-2
-0.23%
-3
-0.35%

3.14 100.24

1.07 100.12

2.08 100.00

3.08 99.89

4.10 99.77

5.11 99.66

6.13 99.54

7.15 0.12

0.12 0.12

0.12 0.12

0.12 0.12

0.12 City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 38 of 44 ends

Portfolio ID: 6748 - 58411

Shocked CUSIP Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
WAL
Dur
WAL
WAL
WAL
WAL
256
1 0.25%
0 0.17%
0 0.08%
0 0.00%
0 -0.08%
0 -0.17%
-1
-0.25%

PLMDLCAMP

0.30 100.25
-2.67
100.17
-1.69
100.08
-0.70
100.00

0.30 99.92

1.30 99.83

2.30 99.75

3.31 CAMP
04/30/2023

0.08 0.08

0.08 0.08

0.08 0.08

0.08 0.08
47,529
119

0.25%
79 0.17%
39 0.08%
0 0.00%
-39
-0.08%
-79
-0.17%
-118
-0.25%

PLMDLLAIF

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 LAIF
04/30/2023

0.08 0.08

0.08 0.08

0.08 0.08

0.08 0.08
40,618
101

0.25%
68 0.17%
34 0.08%
0 0.00%
-34
-0.08%
-67
-0.17%
-101
-0.25%

PLMDLLAIF

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 LAIF
04/30/2023

0.08 0.08

0.08 0.08

0.08 0.08

0.08 0.08
31,088
78 0.25%
52 0.17%
26 0.08%
0 0.00%
-26
-0.08%
-52
-0.17%
-77
-0.25%

PLMDLLAIF

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 LAIF
04/30/2023

0.08 0.08

0.08 0.08

0.08 0.08

0.08 0.08
Other
119,491
298

0.25%
199

0.17%
99 0.08%
0 0.00%
-99
-0.08%
-198
-0.17%
-297
-0.25%

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 0.08

0.08 0.08

0.08 0.08

0.08 0.08

0.08 Total
305,771
9,092

3.07%
6,261

2.12%
3,191

1.08%
0 0.00%
-3,213
-1.09%
-6,387
-2.16%
-9,494
-3.21%

1.11 99.75

0.11 98.83

1.02 97.82

1.96 96.78

2.92 95.73

3.90 94.69

4.88 93.68

5.87 1

1.15 1.22

1.22 1.08

1.22 1.22

1.22 1.22
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 39 of 44 ends

Portfolio ID: 6748 - 58411

Portfolio Changes
New Securities 12/2022-3/2023
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
3130AQRH8
Treasury/Agency
FHLB 2 02/25/27
02/25/2027

2.00 5,000,000
100.00
AFS
3130ARHJ3
Treasury/Agency
FHLB 3.175 04/19/27
04/19/2027

3.18 5,000,000
100.00
AFS
9128286L9
Treasury/Agency
T 2 1/4 03/31/26
03/31/2026

2.25 3,200,000
100.00
AFS
Partial Buy12/2022-3/2023
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
Redemption Type

PLMDLCAMP
Other
CAMP
04/30/2023

0.30 256,024
100.00
AFS
Same CUSIP buys

PLMDLLAIF
Other
LAIF
04/30/2023

0.78 119,234,729
100.00
AFS
Same CUSIP buys
Securities Sold/Redeemed 12/2022-3/2023
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
Redemption Type
037833DE7
Corporate
AAPL 2.4 01/13/23
01/13/2023

2.40 1,000,000
100.00
AFS
Expired/Matured
30231GAR3
Corporate
XOM 2.726 03/01/23
03/01/2023

2.73 1,000,000
100.00
AFS
Expired/Matured
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 40 of 44 ends

Portfolio ID: 6748 - 58411

Shocked Assumptions
Scenarios
Down 300
Down 200
Down 100
Base
Up 100
Up 200
Up 300
Shift Amount
-300
-200
-100
0 100
200
300
Curve Slope Change
0 0
0 0
0 0
0 Shock Horizon
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Curve Type
Static
Static
Static
Static
Static
Static
Static
Valuation Date
2023-03-31
2023-03-31
2023-03-31
2023-03-31
2023-03-31
2023-03-31
2023-03-31
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 41 of 44 ends

Portfolio ID: 6748 - 58411

Report Assumptions
Assumptions
·

Calculation Engine
The Yield Book © and ZM Financial
·

Cash Flow Model
The Yield Book ©
·

Curve Date
Same as Portfolio As Of Date
·

Curve Type Used
Swap Curve
·

Curve Shape
Immediate Sustained Parallel Shocks
·

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

Horizon Period
Immediate Time Horizon
·

Reinvestment Rate
3 Month T-Bill
·

Cost of Funds

1.00%
·

Tax Rate

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

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

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

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

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

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

City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 42 of 44 ends

Portfolio ID: 6748 - 58411

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

Securities identified herein are subject to availability and changes in price.

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Moreover, Stifel and its affiliates and their respective shareholders, directors, officers, and/or employees, may from time to time have long or short positions in such securities or in options or other derivative instruments based thereon.

Readers of this report should assume that Stifel or one of its affiliates is seeking or will seek investment banking and/or other business relationships with the issuer or issuers, or borrower or borrowers, mentioned in this report. Stifel ’
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t have credit ratings from nationally recognized statistical rating organizations, may be subject to greater fluctuations in price and greater risk of loss of income and principal, due to greater potential default risk by the associated borrowers than fixed income securities that have investment grade credit ratings from the nationally recognized statistical rating organizations.

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’
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’
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’
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©
2023
Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE, One South Street, Baltimore, MD 21202
. All rights reserved.

Disclaimer
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 43 of 44 ends

Portfolio ID: 6748 - 58411

Portfolio Exceptions
Hld
Exception
Sub
Indic
Par
Book
Market
ID
Description
CUSIP
Sector
Sector
Table
Security Description
Value
Price
Price
1 7357742
Called
3130A5DH9
AGY
FHLB 2.000 05/18/20 CALd
1,950
100.000
100.000
Portfolio Exceptions Summary
Total Par
Total Par
Total Par
% Par
Holding Count
Holding Count
Holding Count
% Count
From Customer
Excluded
In Analysis
Excluded
From Customer
Excluded
In Analysis
Excluded
307,721
1,950
305,771

0.63 %
50 1
49 2.00 %
City of Palmdale - Palmdale, CA
As of 3/31/2023

Page 44 of 44 ends

Portfolio ID: 6748 - 58411

PORTFOLIO REVIEW AND ANALYSIS
City of Palmdale - Successor Agency
Palmdale, CA
As of Date: 03/31/2023
Pricing as of: 03/31/2023
Date of Analysis: 04/11/2023
Account Executive: Bill Blackwill

Book Value
4,459
# Securities
1 Average Size (Book)
4,459
Book Yield

0.78 Market Yield

0.78 $ Gain/Loss
0 % Gain/Loss

0.0%
Average Life

0.08 Average Life +300bps

0.08 % Price Change +100bps
-0.08
% Price Change +300bps
-0.25
Effective Duration

0.08 Effective Convexity

0.00 AFS / HTM%
100% / 0%
Fixed / Floating
100% / 0%
ESG/Green Par (000's)
$0 / $0
Portfolio Overview
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 2 of 26 ends

Portfolio ID: 6753 - 58411

Historical Portfolio Overview
03/31/2023
12/31/2022
09/30/2022
06/30/2022
Book Value
4,459
4,433
5,408
8,701
Book Yield

0.78 0.78

0.79 0.78
Book Yield (+100)

0.78 0.78

0.79 0.78
Book Yield (+300)

0.78 0.78

0.79 0.78
Book Yield (-100)

0.78 0.78

0.79 0.78
WAL

0.08 0.01

0.08 0.08
WAL (+100)

0.08 0.01

0.08 0.08
WAL (+300)

0.08 0.01

0.08 0.08
WAL (-100)

0.08 0.01

0.08 0.08
% Price Change (+100)
-0.1%

0.0%
-0.1%
-0.1%
% Price Change (+300)
-0.2%

0.0%
-0.3%
-0.3%
% Price Change (-100)

0.1%

0.0%

0.1%

0.1%
Effective Duration

0.08 0.01

0.09 0.09
Effective Convexity

0.00 0.00

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

0.0%

0.0%

0.0%

0.0%
Principal Cash Flow 2 yrs out
100%
100%
100%
100%
Principal Cash Flow 2 yrs out (+100)
100%
100%
100%
100%
Principal Cash Flow 2 yrs out (+300)
100%
100%
100%
100%
Principal Cash Flow 2 yrs out (-100)
100%
100%
100%
100%
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 3 of 26 ends

Portfolio ID: 6753 - 58411

Portfolio Sector Summary
Portfolio
Par
Book
Market
% Price Change
Gain/(Loss)
Effective
AFS
Sector
%
Value
Cpn
Maturity
Value
Yield
Value
Yield
-100
+100
+300
$
%
WAL
Dur
Cvx
%
Cash & Other (1)
100.0%
4,459

0.78 0.1 yrs
4,459

0.78 4,459

0.78 0.1
-0.1
-0.2
0 0.0%

0.08 0.08

0.00 100 %
Other (1)
100.0%
4,459

0.78 0.1 yrs
4,459

0.78 4,459

0.78 0.1
-0.1
-0.2
0 0.0%

0.08 0.08

0.00 100 %
Total (1)
100.0%
4,459

0.78 0.1 yrs
4,459

0.78 4,459

0.78 0.1
-0.1
-0.2
0 0.0%

0.08 0.08

0.00 100 %
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 4 of 26 ends

Portfolio ID: 6753 - 58411

Shocked Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
4,459
4,459
4,459
4,459
4,459
4,459
4,459
Book Value
4,459
4,459
4,459
4,459
4,459
4,459
4,459
Market Value
4,470
4,466
4,462
4,459
4,455
4,451
4,448
Gain/(Loss)
11 7
4 0
-4
-7
-11
Gain/(Loss) %

0.3%

0.2%

0.1%

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

0.3%

0.2%

0.1%

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

0.78 0.78

0.78 0.78

0.78 0.78

0.78 Market Price
100.25
100.17
100.08
100.00

99.92 99.83

99.75 Market Yield
-2.20
-1.21
-0.22

0.78 1.78

2.79 3.80
WAL

0.08 0.08

0.08 0.08

0.08 0.08

0.08 City of Palmdale - Successor Agency - Palmdale, CA As of 3/31/2023

Page 5 of 26 ends

Portfolio ID: 6753 - 58411

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

0.1%
4,459
-0.1%
-0.2%
-0.3%

0.1%
Total

0.1%
4,459
-0.1%
-0.2%
-0.3%

0.1%
Scenario Market Val
4,462
4,459
4,455
4,451
4,448
Scenario Gain/Loss
4 0
-4
-7
-11
Total Portfolio (AFS + HTM):
% Change in Market Val from Level
-200 bps

0.2%
-100 bps

0.1%
Level Market Val
4,459
+100 bps
-0.1%
+200 bps
-0.2%
+300 bps
-0.2%
+400 bps
-0.3%
Effective Duration

0.08 Effective Convexity

0.00 City of Palmdale - Successor Agency - Palmdale, CA As of 3/31/2023

Page 6 of 26 ends

Portfolio ID: 6753 - 58411

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

Label
Muni
Corp
Oth
Fixed
AFS
1 03/23
4,542
-8.6

0.81 2.8

2.8 2.8

2.6 -2.6
-7.5

2.6 0.0
94%
0%
0%
0%
0%
0%
0%
0%
0%
0%
6%
100%
100%
2 12/22
4,971
-2.7

2.32 1.5

1.5 1.7

1.5 -1.5
-4.4

1.5 0.0
15%
0%
0%
0%
0%
0%
0%
0%
0%
0%
85%
100%
100%
3 12/22
7,134
-7.4

2.30 4.0

3.9 4.0

3.3 -3.2
-9.1

3.2 0.1
0%
17%
0%
16%
0%
0%
0%
0%
0%
0%
67%
100%
100%
4 03/23
8,000
-8.7

1.25 3.1

3.1 3.1

2.8 -2.9
-8.4

2.9 0.0
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
5 03/23
8,253
-9.2

1.48 3.3

3.3 3.3

3.0 -2.9
-8.6

2.9 0.0
27%
0%
0%
0%
0%
0%
0%
0%
0%
0%
73%
100%
100%
6 01/23
9,235
-10.8

1.39 8.2

7.3 8.2

4.9 -4.9
-14.2

4.9 0.1
0%
0%
0%
0%
0%
0%
0%
0%
83%
3%
14%
100%
100%
7 12/22
12,139
-6.0

2.02 2.3

2.3 2.3

2.2 -2.1
-6.2

2.2 0.1
0%
0%
0%
0%
0%
0%
0%
0%
26%
41%
34%
100%
100%
8 01/23
12,908
-6.4

1.78 2.7

2.7 2.7

2.4 -2.4
-7.1

2.4 0.0
29%
0%
0%
0%
0%
4%
0%
0%
23%
12%
33%
100%
100%
9 12/22
12,967
-2.0

3.66 2.5

2.5 2.5

2.3 -2.3
-6.6

2.3 0.0
65%
0%
0%
0%
0%
0%
0%
0%
35%
0%
0%
100%
100%
10 12/22
16,381
-7.2

1.79 2.8

2.8 2.8

2.6 -2.6
-7.4

2.6 0.1
0%
0%
0%
0%
0%
0%
0%
0%
44%
29%
26%
100%
100%
11 12/22
18,096
-3.1

1.83 1.8

1.8 1.8

1.7 -1.6
-4.8

1.7 0.0
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
12 02/23
19,810
-0.7

6.35 1.0

0.9 1.1

0.8 -0.9
-2.7

0.8 0.0
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
13 12/22
25,965
-5.8

2.26 2.7

2.7 2.7

2.5 -2.5
-7.2

2.5 0.0
82%
0%
0%
0%
0%
0%
0%
0%
14%
0%
4%
100%
100%
14 12/22
30,164
-2.7

3.04 2.3

2.0 2.7

1.9 -2.0
-6.1

2.0 0.0
62%
0%
0%
0%
0%
0%
0%
0%
0%
0%
38%
100%
100%
15 03/23
36,570
-8.2

1.13 3.1

3.1 3.1

2.7 -2.7
-8.1

2.7 0.0
98%
0%
0%
0%
0%
0%
0%
0%
0%
0%
2%
100%
100%
16 03/23
39,644
-2.7

2.21 1.1

1.0 1.1

1.0 -1.0
-2.9

1.0 0.0
25%
0%
0%
0%
0%
0%
0%
0%
40%
0%
36%
100%
96%
17 12/22
39,823
-5.5

1.76 2.3

2.3 2.3

2.2 -2.1
-6.1

2.1 0.1
62%
0%
0%
0%
0%
0%
0%
0%
35%
0%
4%
100%
100%
18 12/22
40,326
-3.0

1.13 0.9

0.9 1.0

0.9 -0.9
-2.7

0.9 0.0
63%
0%
0%
0%
0%
0%
0%
0%
29%
0%
8%
100%
100%
19 03/23
43,494
-5.9

2.34 3.3

3.2 3.3

2.5 -2.7
-8.3

2.6 -0.2
98%
0%
0%
0%
0%
0%
0%
0%
0%
0%
2%
100%
100%
20 12/22
44,243
-8.3

1.40 3.0

3.0 3.1

2.6 -2.6
-7.7

2.6 0.0
60%
0%
0%
0%
0%
0%
0%
0%
1%
0%
39%
100%
100%
21 02/23
46,275
-8.8

1.91 3.2

2.9 3.2

2.6 -2.7
-8.0

2.6 -0.1
72%
0%
0%
0%
0%
0%
0%
0%
2%
0%
26%
100%
100%
22 02/23
54,573
-2.5

4.14 2.4

2.1 2.4

1.8 -1.9
-5.6

1.8 0.0
91%
9%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
23 02/23
61,606
-11.4

2.27 5.7

5.0 7.1

4.3 -4.2
-12.6

4.2 0.1
2%
21%
1%
38%
0%
4%
2%
0%
24%
0%
7%
96%
100%
24 02/23
72,574
-5.6

2.01 2.2

2.1 2.2

1.9 -1.9
-5.7

1.9 -0.1
71%
0%
0%
0%
0%
8%
0%
0%
0%
0%
21%
99%
100%
25 03/23
89,963
-4.6

2.79 2.7

2.4 2.9

2.0 -2.2
-6.6

2.1 -0.1
83%
0%
0%
0%
0%
0%
0%
0%
0%
9%
7%
98%
100%
Avg
30,386
-5.9

2.22 2.8

2.7 2.9

2.4 -2.4
-7.0

2.4 0.0
56%
2%
0%
2%
0%
1%
0%
0%
14%
4%
21%
100%
100%
Port
4,459

0.0 0.78

0.1 0.1

0.1 0.1
-0.1
-0.2

0.1 0.0
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
100%
Diff
-25,927

5.9 -1.43
-2.7
-2.6
-2.9
-2.3

2.3 6.7
-2.3

0.0 -56%
-2%
0%
-2%
0%
-1%
0%
0%
-14%
-4%
79%
0%
0%
* Peer group includes Public Entitys that have received portfolio analysis from Stifel in the last three months with the closest portfolio book values.

City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 7 of 26 ends

Portfolio ID: 6753 - 58411

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

City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 8 of 26 ends

Portfolio ID: 6753 - 58411

Cash Flow and Rolloff Yield - Next 12 Months
Yield Rolloff
Month
Begin BY
Principal CF
Rolloff Yld
Ending BY
Apr 2023

0.78 4,459

0.78 Shocked Principal and Interest Cash Flow Analysis
Year
-300
-200
-100
Base
+100
+200
+300
Apr 2023
4,462
4,462
4,462
4,462
4,462
4,462
4,462
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 9 of 26 ends

Portfolio ID: 6753 - 58411

Cash Flow and Rolloff Yield - Next 10 Years
Yield Rolloff
Year
Begin BY
Principal CF
Rolloff Yld
Ending BY
2023

0.78 4,459

0.78 2024
2025
2026
2027
2028
2029
2030
2031
2032
Shocked Principal and Interest Cash Flow Analysis
Year
-300
-200
-100
Base
+100
+200
+300
2023
4,462
4,462
4,462
4,462
4,462
4,462
4,462
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 10 of 26 ends

Portfolio ID: 6753 - 58411

Sector Cash Flow - Next 12 Months
Apr 23
May 23
Jun 23
Jul 23
Aug 23
Sep 23
Oct 23
Nov 23
Dec 23
Jan 24
Feb 24
Mar 24
Bk Yld Chg
Other
Cash Flow
4,462
End BY
Total
Cash Flow
4,462
End BY
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 11 of 26 ends

Portfolio ID: 6753 - 58411

Sector Cash Flow - Next 3 Years
2Q23
3Q23
4Q23
1Q24
2Q24
3Q24
4Q24
1Q25
2Q25
3Q25
4Q25
1Q26
Bk Yld Chg
Other
Cash Flow
4,462
End BY
Total
Cash Flow
4,462
End BY
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 12 of 26 ends

Portfolio ID: 6753 - 58411

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

0.25 11
-24

0.25 0.50
22 -13

0.50 0.75
33 -1

0.75 1.00
45 10

1.00 1.25
56 21

1.25 1.50
67 32

1.50 1.75
78 43

1.75 2.00
89 54

2.00 2.25
100
65 2.25

2.50 111
77 2.50

2.75 123
88 2.75

3.00 134
99 3.00

3.25 145
110

3.25 3.50
156
121

3.50 3.75
167
132

3.75 4.00
178
144

4.00 4.25
189
155

4.25 4.50
201
166

4.50 4.75
212
177

4.75 5.00
223
188

5.00 5.25
234
199

5.25 5.50
245
210

5.50 5.75
256
222

5.75 6.00
268
233

6.00 6.25
279
244

6.25 6.50
290
255

6.50 6.75
301
266

6.75 7.00
312
277

7.00 7.25
323
288

7.25 7.50
334
300

7.50 7.75
346
311

7.75 8.00
357
322

8.00 Principal Maturing(12 Mo.Horizon): $4,459
Current Book Yield of Principal Maturing: 0.78%
Est. Annual Income at Current Book Yield: $35
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 13 of 26 ends

Portfolio ID: 6753 - 58411

Shocked Cash Flows By Sector - Next 10 Years
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 14 of 26 ends

Portfolio ID: 6753 - 58411

Cash Flows By Sector - Next 30 Years
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 15 of 26 ends

Portfolio ID: 6753 - 58411

Cash Flow Projection By Month - Next 5 Years
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 16 of 26 ends

Portfolio ID: 6753 - 58411

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

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.08 0.00
Cash & Other (1)
100.0%
4,459

0.78 4,459

0.78 4,459

0.78 -11
-0.2%

0.08 -0.2
100.0%

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.08 0.00
Total (1)
100.0%
4,459

0.78 4,459

0.78 4,459

0.78 -11
-0.2%

0.08 -0.2
100.0%
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 17 of 26 ends

Portfolio ID: 6753 - 58411

Portfolio Considerations
Par
Book
Market
Gain/
Book
Eff.

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

Life
Life
Count
Book Yield < 2%
1 0.78

0.1 yrs
4,459
100.00
100.00
0 0.78

0.1 0.08
Cash & Other
1 0.78

0.1 yrs
4,459
100.00
100.00
0 0.78

0.1 0.08
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 18 of 26 ends

Portfolio ID: 6753 - 58411

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

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

PLMDLLAIF
Cash & Other
LAIF

0.78 04/30/23
4,459
100.00
100.00
0 0.781

0.08 -0.25
-11
-11

0.08 AFS

0.78 4,459
100.00
100.00
0 0.781

0.08 -0.25
-11
-11

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

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

PLMDLLAIF
Cash & Other
LAIF

0.78 04/30/23
4,459
100.00
100.00
0 0.781

0.08 -0.25
-11
-11

0.08 AFS

0.78 4,459
100.00
100.00
0 0.781

0.08 -0.25
-11
-11

0.08 City of Palmdale - Successor Agency - Palmdale, CA As of 3/31/2023

Page 19 of 26 ends

Portfolio ID: 6753 - 58411

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

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

PLMDLLAIF
Cash & Other
LAIF

0.78 04/30/23
4,459
100.00
100.00
0 0.781

0.08 -0.25
-11
-11

0.08 AFS

0.78 4,459
100.00
100.00
0 0.781

0.08 -0.25
-11
-11

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

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

PLMDLLAIF
Cash & Other
LAIF

0.78 04/30/23
4,459
100.00
100.00
0 0.781
-0.25

0.08 0.08

0.08 0.00
AFS

0.78 4,459
100.00
100.00
0 0.781
-0.25

0.08 0.08

0.08 0.00
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 20 of 26 ends

Portfolio ID: 6753 - 58411

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

Price
Price
%
-100
Dur
ESG/G
r
CUSIP
Ticker
Value
Rate
Rate
Final
Value
Yield
Value
Yield
$
+300
Cvx
Intent
Fixed
04/23
100.00
100.00

0.0%

0.1 0.08

PLMDLLAIF
4,459

0.780
04/30/23
4,459

0.78 4,459

0.78 0
-0.2

0.00 AFS
100.00
100.00

0.0%

0.1 0.08
Cash & Other
4,459

0.780
4,459

0.78 4,459

0.78 0
-0.2

0.00 100.00
100.00

0.0%

0.1 0.08
Total
4,459

0.780
4,459

0.78 4,459

0.78 0
-0.2

0.00 City of Palmdale - Successor Agency - Palmdale, CA As of 3/31/2023

Page 21 of 26 ends

Portfolio ID: 6753 - 58411

Shocked CUSIP Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
WAL
Dur
WAL
WAL
WAL
WAL
4,459
11 0.25%
7 0.17%
4 0.08%
0 0.00%
-4
-0.08%
-7
-0.17%
-11
-0.25%

PLMDLLAIF

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 LAIF
04/30/2023

0.08 0.08

0.08 0.08

0.08 0.08

0.08 0.08
Other
4,459
11 0.25%
7 0.17%
4 0.08%
0 0.00%
-4
-0.08%
-7
-0.17%
-11
-0.25%

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 0.08

0.08 0.08

0.08 0.08

0.08 0.08

0.08 Total
4,459
11 0.25%
7 0.17%
4 0.08%
0 0.00%
-4
-0.08%
-7
-0.17%
-11
-0.25%

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 0

0.08 0.08

0.08 0.08

0.08 0.08

0.08 0.08
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 22 of 26 ends

Portfolio ID: 6753 - 58411

Portfolio Changes
Partial Buy12/2022-3/2023
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
Redemption Type

PLMDLLAIF
Other
LAIF
04/30/2023

0.78 4,458,764
100.00
AFS
Same CUSIP buys
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 23 of 26 ends

Portfolio ID: 6753 - 58411

Shocked Assumptions
Scenarios
Down 300
Down 200
Down 100
Base
Up 100
Up 200
Up 300
Shift Amount
-300
-200
-100
0 100
200
300
Curve Slope Change
0 0
0 0
0 0
0 Shock Horizon
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Curve Type
Static
Static
Static
Static
Static
Static
Static
Valuation Date
2023-03-31
2023-03-31
2023-03-31
2023-03-31
2023-03-31
2023-03-31
2023-03-31
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 24 of 26 ends

Portfolio ID: 6753 - 58411

Report Assumptions
Assumptions
·

Calculation Engine
The Yield Book © and ZM Financial
·

Cash Flow Model
The Yield Book ©
·

Curve Date
Same as Portfolio As Of Date
·

Curve Type Used
Swap Curve
·

Curve Shape
Immediate Sustained Parallel Shocks
·

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

Horizon Period
Immediate Time Horizon
·

Reinvestment Rate
3 Month T-Bill
·

Cost of Funds

1.00%
·

Tax Rate

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

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

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

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

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

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

City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 25 of 26 ends

Portfolio ID: 6753 - 58411

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City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2023

Page 26 of 26 ends

Portfolio ID: 6753 - 58411

City Council Staff Report
DATE: MAY 3, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT

FINANCE DIVISION
DISTRICT: ALL
SUBJECT: APPROVE AGREEMENT WITH EIDE BAILLY , LLP TO PROVIDE AUDIT SERVICES FOR AN AMOUNT OF $ 960,000, FOR A FIVE (5) YEAR TERM THROUGH JUNE 30, 2028.

ISSUE
Approve Agreement with Eide Bailly, LLP to provide audit services for an amount of $960,000, for a five (5) year term through June 30, 2028.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve Agreement A-8300 for audit services between the City of Palmdale and Eide Bailly , LLP for an amount of $960,000, for a term of Five (5) years commencing on July 1st, 2023, through June 30th, 2028.

2. Authorize the City Manager or her Designee to execute Agreement No. A-8300 with Eide Bailly, LLP.

BACKGROUND
The City of Palmdale is required to have annual audits performed by an independent audit firm in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in the Governmental Auditing Standards issued by the Comptroller General of the United States, the provisions of the Federal Single Audit Act as amended in 1996, and the U.S. Office of Management and Budget (OMB) circular A-133 Audits of State and Local Governments and Non-Profit Organizations.

The Government Finance Officers Association (GFOA) issues best practices relating to audit procurement. The GFOA recommends that entities undertake a full -scale competitive process for the selection of independent auditors at the end of each audit contract, consistent with applicable legal requirements. It is recommended that the entity actively seek the participation of qualified firms, including current auditors, assuming that the past performance of the current auditors has proven satisfactory. Governmental entities should enter into multi -year agreements of at least five years in duration. Such Report to Mayor and City Council
Re: Approve Agreement with Eide Bailly, LLP
May 3, 2023

Page 2 ends

agreements allow for greater continuity and help to minimize the potential for disruption in connection with the independent audit. Multi-year agreements can also help to reduce audit costs by allowing auditors to recover certain “startup” costs over several years, rather than over a single year. The principal factor in the selection of an independent auditor should be the auditor’s ability to perform a quality audit.

The Auditor must comply with all standards set forth for financial audits by the Government Accounting Standards Board (GASB), in the General Accounting Office’s (GAO) Government Auditing Standards, and in the U.S. Office of Management (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (including ARPA rules, regulations and guidance).

DISCUSSION
The current Auditing Contract expires on June 30, 2022.

The City of Palmdale advertised a Request for Proposal (RFP) for Professional Auditing Services beginning on December 8, 2022, and closing on January 19, 2023.

The RFP was sent to 94 vendors.

Four (4) vendors responded.

Three (3) vendors were selected for interviews.

The vendor with the highest aggregate score (RFP evaluation and interview requirements) is Eide Bailly, LLP.

The City is entering into a five (5) year agreement with Eide Bailly, LLP to perform the audit of the City’s Annual Comprehensive Financial Report for the City of Palmdale and all Component Units, including the Palmdale Civic Authority, Palmdale Finance Authority, City of Palmdale Housing Authority and the Palmdale Community Foundation.

Eide Bailly will perform the Single Audit, an audit of the City’s compliance with federally funded programs and other services, which are outlined in the attached Agreement. In addition, the Auditor will prepare financial statements for Assessment and Community Facility Districts, will transcribe and summarize data to develop the Annual Development Impact Fee Report, and provide other services as outlined in Section 1 – Description of Work in the attached Agreement.

Eide Bailly, LLP is a top 25 CPA and consulting firm. Their knowledge and expertise will benefit the City, solidifying our financial strength and positioning us for future growth and stability. Eide Bailly, LLP has extensive experience auditing California Cities, Counties, School Districts, and Other Special Districts creating a vast knowledge of California Revised Statutes and California Administrative Codes. The firm also has extensive experience auditing the City of Palmdale – in depth knowledge of the City’s Departments and employees including operations, internal controls, and risks.

Report to Mayor and City Council
Re: Approve Agreement with Eide Bailly, LLP
May 3, 2023

Page 3 ends

FISCAL IMPACT
Professional Services 2023 2024 2025 2026 2027
Financial Statement Audit $70,500 $75,788 $81,472 $87,582 $94,151 Single Audit (assumes 2 major
programs)
18,000 19,350 20,801 22,361 24,038
Agreed-Upon Procedures - GANN 1,300 1,398 1,503 1,616 1,737 Housing Authority Audit Report 10,000 10,750 11,556 12,423 13,355 City of Palmdale Civic Authority
Audit Report
7,500 8,063 8,668 9,318 10,017
City of Palmdale Financing
Authority Audit Report
9,000 9,675 10,401 11,181 12,020
City of Palmdale Community
Foundation Audit Report
6,500 6,988 7,512 8,075 8,681
Assessment & Community Facility
Districts Audit Reports
36,000 38,700 41,603 44,723 48,077
Annual Development Impact Fees
Report
5,500 5,913 6,356 6,833 7,345
Total Fees $164,300 $176,625 $189,872 $204,112 $219,421

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.

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

Prepared by: Janelle Samson, Director of Finance
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney

ATTACHMENTS

1. Agreement A-8300 Eide Bailly, LLP
AGREEMENT NO. A-8300

CONTRACT FOR CONSULTANT SERVICES
BETWEEN THE CITY OF PALMDALE AND EIDE BAILLY, LLP.

THIS CONTRACT FOR CONSULTANT SERVICES (“Contract” herein) is made and entered into this 1st day of July, 2023 by and between the City of Palmdale a public body corporate and politic, (hereinafter called “CITY”) and EIDE BAILLY, LLP. (hereinafter called “CONSULTANT”).

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

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

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

The CONSULTANT shall express an Audit opinion on the fair presentation of its basic financial statements in conformity with generally accepted accounting principles.

The CONSULTANT shall include an examination of all City funds. The CONSULTANT will be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board, as mandated by generally accepted auditing standards.

The CONSULTANT shall review and verify all trial balance worksheets and summary schedules including balance sheets, revenues, expenditures, and changes in fund balance for each City fund. The data source for the schedules will be the financial statements supplied by the City. An initial draft of the ACFR will be prepared by City staff and will be given to the auditors during the final stage of the audit. Final report preparation and necessary editing shall be the responsibility of the City.

A. Financial Statement Audits:

The CONSULTANT shall audit the financial statements of the below government activities, each major fund, and the aggregate remaining fund information, which collectively compromises the basic financial statements of the City as of and for each 1-20Concord - Document ID: N2U2NWE0MzktYT
year of the Contract term:

B. Annual Comprehensive Financial Report (ACFR).
- The City desires the CONSULTANT to issue an opinion on the fair presentation of its basic financial statements. The CONSULTANT is not required to issue an opinion on the combining and individual non- major fund financial statements and schedules.

However, the CONSULTANT is to provide an “in-relation-to” report based on the auditing procedures applied during the audit of the basic financial statements. Certain limited procedures should be applied to management’s discussion and analysis and budgetary comparison information, but an expression of an opinion is not required.

The CONSULTANT is not required to express an opinion on the introductory and statistical sections.
- The CONSULTANT will conduct the examination of the City’s Financial statements in accordance with generally accepted auditing standards and Government Auditing Standards for fiscal years ending June 30, 2023, June 30, 2024, June 30, 2025, June 30, 2026, and June 30, 2027.
- The City will have the responsibility of preparing the annual ACFR - Management and SAS 114 Letters, which includes findings, statements, observations, opinion, comments, or recommendations, related to:
- Systems of internal control based upon the auditors’ understanding of the control structure and assessment of control risk.
- Compliance with applicable laws and regulations.
- Accounting systems, functions, procedures, and processes, especially regarding cost effectiveness.

C. Single Audit Report.
-The City receives federal funds which come under the provision of the Single Audit Act. The CONSULTANT is not required to audit the Schedule of Expenditures of Federal Awards; however, the CONSULTANT is to provide an “in-relation-to” report on that schedule based on the auditing procedures applied during the audit of the financial statements.
- The CONSULTANT shall supply a multiple part auditor’s report on the City’s compliance with requirements of Federally-funded programs for which it receives funding, in accordance with the Single Audit Act Amendments of 1996, the Office of Management and Budget’s (OMB) Circular A-133 (“Audits of States, Local 2-20Concord - Document ID: N2U2NWE0MzktYT
Governments and Non-Profit Organizations”), and the GAO’s Government Auditing Standards, January 2007 Revisions for fiscal years ending June 30, 2023, June 30, 2024, June 30, 2025, June 30, 2026, and June 30, 2027.
- The CONSULTANT shall submit the Single Audit and the Single Audit Form SF- SAC with the Federal Audit Clearing House (FAC)
- Agreed-Upon Procedures Performed Related to the calculation of the Gann Appropriations Limit.
- The CONSULTANT shall conduct an Agreed Upon Procedures Examination of the Appropriations Limit Calculation in accordance with procedures as presented in the League of California Cities publication Agreed Upon Procedures Applied to the Appropriations Limitation Prescribed by Article Xlll-8 of the California Constitution for the fiscal years ending June 30, 2023, June 30, 2024, June 30, 2025, June 30, 2026, and June 30, 2027.

D. Housing Authority Audit Report
- The CONSULTANT shall conduct an examination of the Housing Authority’s financial statements in accordance with generally accepted auditing standards and Government Auditing Standards for fiscal years ending June 30, 2023, June 30, 2024, June 30, 2025, June 30, 2026, and June 30, 2027.
- The City will have the responsibility of preparing the annual Financial Statement.

E. City of Palmdale Civic Authority Audit Report
- The CONSULTANT shall conduct an examination of the Civic Authority’s financial statements in accordance with generally accepted auditing standards and Government Auditing Standards for fiscal years ending June 30, 2023, June 30, 2024, June 30, 2025, June 30, 2026, and June 30, 2027.
- The City will have the responsibility of preparing the annual Financial Statement.

F. City of Palmdale Financing Authority Audit Report
- The CONSULTANT shall conduct an examination of the Palmdale Financing Authority’s financial statements in accordance with generally accepted auditing standards and Government Auditing Standards for fiscal years ending June 30, 2023, June 30, 2024, June 30, 2025, June 30, 2026, and June 30, 2027. - The City will have the responsibility of preparing the annual Financial Statement. 3-20Concord - Document ID: N2U2NWE0MzktYT
G. City of Palmdale Community Foundation Audit Report
- The CONSULTANT shall conduct an examination of the Palmdale Community Foundation Authority’s financial statements in accordance with generally accepted auditing standards and Government Auditing Standards for fiscal years ending June 30, 2023, June 30, 2024, June 30, 2025, June 30, 2026, and June 30, 2027. - The CONSULTANT shall prepare the tax returns for each fiscal year by May 15th of the following year.
- The City will have the responsibility of preparing the annual Financial Statement.

H. Assessment and Community Facility Districts Audit Reports - The CONSULTANT shall prepare the following financial statements on behalf of the City as of and for the years ending June 30, 2023, June 30, 2024, June 30, 2025, June 30, 2026, and June 30, 2027.
-This includes the Governmental Activities and each major fund, for the year then ended. The CONSULTANT will issue an accountant's report thereon in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants:
i. Community Facilities District No. 91-1 (Sierra Gateway) ii. Community Facilities District No. 93-1 (Ritter Ranch) iii. Community Facilities District No. 2003-1 (Anaverde Improvement Area A) iv. Community Facilities District No. 05-1 (Trade & Commerce Center) v. Assessment District No. 2006-1 (Godde Hills Estates Sewer Improvements) - The CONSULTANT'S submission to the City will include required supplementary information, including management's discussion and analysis and budgetary comparison information required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.

The Auditor shall indicate the degree of responsibility taken regarding such information but will not audit such information nor express an opinion on it. - The objective of a review is to obtain limited assurance that there are no material modifications that should be made to the financial statements for the statements to be in conformity with accounting principles generally accepted in the United States of 4-20Concord - Document ID: N2U2NWE0MzktYT
America.
- The CONSULTANT shall prepare the financial statements for the above-mentioned reports for the fiscal years ending June 30, 2023, June 30, 2024, June 30, 2025, June 30, 2026, and June 30, 2027.

I. Annual Development Impact Fees Report
- The CONSULTANT shall transcribe data from expenditure and revenue information and trial balances provided by the City onto spreadsheets that summarizes expenditure and revenue items in accordance with Government Code Section 66000 et al.
- The CONSULTANT shall sort the revenue and expenditure data in accordance with Government Code that will be consistent with the manner used by the City in prior annual reports. If such a manner is inconsistent with Government Code, the City will provide direction to the CONSULTANT as to which method of presentation to use.

The summary spreadsheets will provide the following:
i. The beginning and ending fund balance for each development fee account. ii. The amount of funds expended on each project for the year just ended. iii. The amount of developer fees collected, and interest earned for the year just ended.
iv. If applicable, a description of each inter-fund transfer or loan made from each development fee account.
v. If applicable, the amount of refunds made pursuant to the Government Code Section 66001.
- The CONSULTANT shall transcribe cash balance totals and fund balance totals from trial balances or drafted financial statements provided by the City onto spreadsheets for the purpose of documenting the length of time the City has held such funds.
- If fund balance or cash totals in the development fee accounts are being held by the City for more than five years, the CONSULTANT will identify such development fee accounts to the City .
- From copies of ordinances and resolutions provided to us by the City, the CONSULTANT will summarize the existing developer fee levies by fee type in a schedule and summarize the work in a written report to the City. 5-20Concord - Document ID: N2U2NWE0MzktYT
-The CONSULTANT shall submit for management review a draft of all reports. The final reports are subject to review by the City Council. The CONSULTANT shall incorporate, as part of the basic proposal, meeting time with staff and City Council for the purpose of discussing the audits or management letter and its conclusions.

J. Additional Services to Be Requested at City’s Option:
-Reports on other audits or agreed-upon procedures may be agreed to in writing and as stated in a supplemental audit agreement. Prior to beginning work, the scope of the study and associated costs shall be approved by the City.

Such as but not limited to:
- Responsibility of preparing the Annual Financial Statement. - Consulting services in connection with the implementation of new GASB pronouncements.
- City’s Financial Transactions Report to the State Controller Number of Copies of Report to Be Produced:
- ACFR – 1 pdf file
- Management and SAS 114 Letters – 1 pdf file
- Single Audit – 1 pdf file
- Gann Limit - 1 pdf file
- City of Palmdale Housing Authority – 1 pdf
- City of Palmdale Civic Authority – 1 pdf
- City of Palmdale Financing Authority – 1 pdf
- City of Palmdale Community Foundation – 1 pdf
- Assessment and Community Facilities District – 1 pdf
- Annual Development Impact Fees Report – 1 pdf
- Cities Financial Transactions Report – 1 pdf file
6-20Concord - Document ID: N2U2NWE0MzktYT
CONSULTANT shall perform and complete all such work and services in a manner satisfactory to CITY.

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

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

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

ROGER ALFARO, KARLEE RANSOM, JESSICA ANDERSEN.

This Consultant Services Contract has been awarded to CONSULTANT based on its representation that those personnel and subcontractors listed above will perform the portions of the work listed herein. CONSULTANT shall not deviate nor substitute any of these team members without prior written approval by CITY, which approval may not be unreasonably withheld.
4 CONTRACT TERM
The term of this contract is Five Years (5) years, commencing on July 01, 2023. 5 TAXES

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

5.2 CONSULTANT is an independent contractor and shall have no power or authority to incur any debt, obligation, or liability on behalf of CITY. No person 7-20Concord - Document ID: N2U2NWE0MzktYT
employed by CONSULTANT or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.

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

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

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

8.3 CONSULTANT shall be responsible for payment of all CONSULTANT’s employees’ and subcontractor’s wages and benefits and shall comply with all 8-20Concord - Document ID: N2U2NWE0MzktYT
requirements pertaining to the employer’s liability, workers’ compensation, unemployment insurance, and Social Security.

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

9.1 For all of work and services including the various phases of tasks as described in Section 1, CITY shall pay to CONSULTANT an amount not to exceed the sum of Nine Hundred and Sixty Thousand dollars ($960000), payable as follows:

[CONTINUED ON NEXT PAGE]

9-20Concord - Document ID: N2U2NWE0MzktYT
10-20Concord - Document ID: N2U2NWE0MzktYT
The Contract Price is CONSULTANT’S estimate of its charges for all of the services, including all labor, equipment, material, subcontractor and reimbursable costs, to be provided under this Agreement. Progress payments shall be made on a time and material basis. Final payment shall be made upon completion of all services and City acceptance of all deliverables, not-to-exceed the Contract Price.

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

9.3 CONSULTANT shall maintain adequate records and shall permit inspection and audit by CITY of CONSULTANT’s charges under this Contract. CONSULTANT shall make such records available to CITY during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records, and 11-20Concord - Document ID: N2U2NWE0MzktYT
they will be available only to CITY and any specified public agencies. Such records shall be maintained by CONSULTANT for five (5) years following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONSULTANT shall retain its records for the time required by such laws.

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

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

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

11.1.1 Workers’ Compensation and Employer’s Liability
 Workers’ Compensation—coverage as required by the State of California  Employer’s Liability:
$1,000,000.00 each accident
$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
12-20Concord - Document ID: N2U2NWE0MzktYT

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

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

11.1.5 Cyber Liability
-$1,000,000 limit on a per occurrence basis

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

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

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

11.4 Promptly on execution of this Contract, and prior to commencement of any work, CONSULTANT shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONSULTANT has the required coverage and showing the required named insureds.

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

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

11.8 Acceptable Proof of Insurance:

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

Additional insured form CA0001 must be provided for automobile liability coverage.

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

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

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

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, CONSULTANT shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and sub-consultants to cease such work. CONSULTANT shall also surrender to CITY all finished or unfinished documents or programs and other materials, which shall be City’s property. As compensation in full for services 14-20Concord - Document ID: N2U2NWE0MzktYT
performed to the date of such termination, the CONSULTANT shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
13 TERMINATION FOR CAUSE

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

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

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

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

13.4 If, after notice of termination of the Contract under the provisions of this Section 13, it is determined, for any reason, that CONSULTANT was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 12. 14 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and CONSULTANT arising out of, or relating to this Contract, or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 15-20Concord - Document ID: N2U2NWE0MzktYT
15 OWNERSHIP OF DOCUMENTS
All documents, including, but not limited to, research, field notes, investigations, analysis, and studies which are prepared by CONSULTANT specifically for and required to be delivered to CITY in the performance of this Contract are to be, and remain the property of CITY. CONSULTANT shall furnish CITY, upon its request, originals or reproducible or electronic copies of reports, studies and of all other documents listed above.
16 SUBCONTRACTING, DELEGATION AND ASSIGNMENT

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

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

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

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

17.1 In performance of this Contract, CONSULTANT shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, or age. CONSULTANT will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation or age. Affirmative action relating to 16-20Concord - Document ID: N2U2NWE0MzktYT
employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

17.2 The provisions of subsection 17.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONSULTANT for personnel to perform any services under this Contract. CITY shall have access to all documents, data and records of CONSULTANT and its subcontractors for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order No. 11246 is available for inspection at, and on file with, the Palmdale City Clerk’s Office. 18 FINANCIAL INTEREST CERTIFICATION

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

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

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

19.2 CONSULTANT shall not employ any City official or employee to perform any work required pursuant to this Contract.

19.3 If CONSULTANT is a registered professional engineer or licensed land surveyor and the scope of work requires CONSULTANT’S recommendation of the actual formula to spread the costs of an assessment district’s improvements, then CONSULTANT shall not participate in making that recommendation if the additional elements set forth in Government Code section 87100.1(c) apply. Those additional elements are: (1) CONSULTANT has received income of $250 or more for professional services in connection with any parcel included in the benefit assessment district within 12 months prior to the creation of the district; and (2) the 17-20Concord - Document ID: N2U2NWE0MzktYT
district includes other parcels in addition to those parcels for which CONSULTANT received the income. In the event a conflict of interest does arise in that context, City shall select a different CONSULTANT to recommend the actual formula to spread the costs of the assessment district’s improvements and the costs of such services shall be deducted from the compensation to be paid to CONSULTANT.

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

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

20.2 The law of the state of California shall govern this Contract. The venue of any legal action, either formal or informal, shall be the County of Los Angeles. 21 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
22 ENTIRE CONTRACT AND AMENDMENTS

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

22.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by CONSULTANT hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.

22.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract. 18-20Concord - Document ID: N2U2NWE0MzktYT

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

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

CITY OF PALMDALE: EIDE BAILLY, LLP.:

RONDA PEREZ

CITY MANAGER

JESSICA ANDERSEN

PARTNER
ADDRESS FOR NOTICE:

CITY OF PALMDALE
38300 SIERRA HIGHWAY SUITE D
Palmdale, CA 93550

ADDRESS FOR NOTICE:

EIDE BAILLY, LLP.
10681 FOOTHILL BLVD
RANCHO CUCAMONGA, CA 91730
APPROVE AS TO FORM:

William P. Curley, III
Interim City Attorney

ATTEST:

Roxanne Faber
Acting City Clerk

---------------------------------------- INTERNAL USE ONLY ----------------------------------------

■Certificate(s) and Endorsement(s) attached
■Confirmed business name on contract with certificate(s) ■Attached Agreement Checklist and met all requirements
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20-20Concord - Document ID: N2U2NWE0MzktYT
Record of Signing
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City Council Staff Report
DATE: MAY 3, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY ATTORNEY’S OFFICE
DISTRICT: ALL
SUBJECT: APPROVE FIRST AMENDMENT TO LEGAL SERVICES
AGREEMENT WITH CIVICA LAW GROUP, APC (A-8272) TO

INCREASE THE TOTAL A MOUNT OF THE AGREEME NT BY
$500,000 NOT TO EXCEED THE SUM OF $600,000
ISSUE
Approve First Amendment to Legal Services Agreement with Civica Law Group, APC (A-8272) to increase the total amount of the Agreement by $ 500,000 not to exceed the sum of $600,000.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve the First Amendment to Legal Services Agreement with Civica Law Group, APC to increase the total amount of the Agreement by $ 500,000 not to exceed the sum of $600,000; and

2. Authorize the City Manager or her designee to execute the First Amendment with Civica Law Group, APC substantially in the same form as presented to the City Council.

BACKGROUND
This action is part of a transition from working with the same prosecution attorneys, but under the new law firm, Civica Law Group, APC. The law firm of Civica Law Group, APC has represented the City, providing general advice regarding code enforcement and prosecuting nuisance abatement actions on behalf of the City. Civica Law Group, APC has been successful abating nuisance properties within the City and routinely obtains full cost recovery for the City.

DISCUSSION
To continue with Civica Law Group’s representation of the City, an amendment must be executed to extend the maximum contract amount. By extending the maximum contract amount by $500,000, it will allow payment of future services rendered by Civica Law Group, APC for ongoing code enforcement, nuisance abatement, and general advisory Report to Mayor and City Council
Re: First Amendment to Legal Services Agreement with Civica Law Group, APC May 3, 2023

Page 2 ends

services. Staff proposes that the City Council authorize the City Manager to execute the Amendment and allow Civica Law Group, APC to continue to provide legal services.

FISCAL IMPACT
The Legal Services Agreement has the not-to-exceed amount of $600,000, however this amount is not guaranteed. Fees will only be paid to the extent services are provided.

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

In 2022, and through April 2023, Civica Law Group, APC has recovered approximately $183,300 in costs for the City (not including pending cases where cost recovery is expected or cases where cost recovery is in progress).

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

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

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

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

Prepared by: Angie Barajas, Legal & Risk Coordinator
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney

ATTACHMENTS

1. First Amendment with Civica Law Group, APC

2. Agreement with Civica Law Group, APC (A-8272)
FIRST AMENDMENT TO AGREEMENT A-8272

BETWEEN THE CITY OF PALMDALE AND CIVICA LAW GROUP, APC
This First Amendment to Agreement No. A-8272 (“Agreement”) is made and entered into by and between the City of Palmdale (hereinafter called “CITY”) and Civica Law Group, APC (hereinafter called "FIRM"). This Contract shall become effective on the date of the last signatory.

WHEREAS, CITY and FIRM entered into an Agreement on March 8, 2023 for legal services pursuant to California Business and Professions Code Section 6148; and WHEREAS, CITY and FIRM desire to amend the contract amount of the Agreement to provide for additional services.

NOW THEREFORE, in consideration of the foregoing, the parties agree as follows:

1. The compensation identified in Section 4(e) shall be amended to increase the total amount of the Agreement by Five-Hundred Thousand Dollars ($500,000) not to exceed the sum of Six-Hundred Thousand Dollars ($600,000).

2. All other terms and conditions remain the same.

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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

CIVICA LAW GROUP, APC

Ronda Perez
City Manager

Matthew Silver, Esq.

Partner
ADDRESS FOR NOTICE:

CITY OF PALMDALE
38300 Sierra Hwy
Palmdale, CA 93550

ADDRESS FOR NOTICE:

CIVICA LAW GROUP, APC
4000 Barranca Parkway, Suite 250,
PMB #782
Irvine, CA 92604
APPROVE AS TO FORM:

William P. Curley, III
Interim City Attorney

ATTEST:

Roxanne Faber
Acting City Clerk

---------------------------------------- INTERNAL USE ONLY ----------------------------------------

□Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) □Original contract and previous amendment(s) (if any) are attached □Attached Agreement Checklist and met all requirements
2-2Concord - Document ID: generated after first signature

AGREEMENT FOR LEGAL SERVICES BETWEEN

THE CITY OF PALMDALE AND CIVICA LAW GROUP, APC
AGREEMENT NO. A-8272
This Legal Services Agreement (“Agreement”) is made and entered into by and between the City of Palmdale (“City”), a California municipal corporation, and Civica Law Group, APC, a California Professional Corporation engaged in the practice of law in the State of California (“Firm”), collectively identified as “the parties.” RECITALS:

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

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

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

THE PARTIES AGREE AS FOLLOWS:

1.Scope of Services.
a. The Firm will provide those legal services as may be authorized and assigned by the Palmdale City Attorney, including, without limitation, legal services related to the areas of code enforcement, nuisance abatement, as well as general advisory services related to municipal law. The firm will provide those legal services reasonably required to accomplish City’s stated goals. b. The legal services the Firm will provide to City will be billed at the rates set forth in Exhibit "A", attached.

2.Designation of Responsible Attorneys.

Matthew R. Silver, Esq. is designated as the attorney responsible for providing the legal services under this Agreement to City and for supervising any other attorneys within the Firm assisting him in the performance of those services.

The Firm’s offices are located at 4000 Barranca Parkway, Suite 250, PMB #782, Irvine, CA 92604.

3.Confidentiality.
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All reports, information, data, or other documents prepared or assembled by the Firm under this Agreement are confidential and the Firm shall not make the same available to any individual or organization without the prior written approval of the Palmdale City Attorney.

4.Maximum Contract Amount, Billing Procedures, and Monthly Statements.
a. The Firm shall submit to the Palmdale City Attorney, within thirty (30) days after the end of each calendar month, an itemized statement of the professional services provided and the time expended providing those services. This statement will be in the form customarily submitted by the Firm to clients that are billed on an hourly basis. Block billing is not permitted. The parties acknowledge that payment of all monthly statements is expected to be made within thirty (30) days of the billing date.
b. The Firm will bill the City for items such as, but not limited to, long distance telephone calls, filing fees (if applicable), document duplication, computerized legal research, word-processing, and similar out-of-pocket expenditures. These items will be separately designated on the Firm’s monthly statements as “disbursements,” and will be billed in addition to the fees for professional services.
c. If the Firm’s services are billed by the hour, time will be charged by the Firm in increments of 1/10 of an hour (i.e., six-minute units). Among the services which are routinely billed are telephone conversations and travel time. In addition to the fees charged for services, the Firm also bills for costs incurred, which include, but are not limited to, filing fees (if applicable), messenger and air courier expenses, parking expenses, local and out-of-town travel expenses, facsimile and other communication expenses, postage, and printing costs. In addition, the Firm charges for certain internal costs if incurred on City’s behalf, such as photocopying, secretarial overtime, and word processing.

The rate structure in general, or the rates of particular attorneys, may be increased from time to time, after a minimum 30-day written notice to and written consent of the Palmdale City Attorney. To the extent feasible, these adjustments will be made so as to coincide with the beginning of City’s fiscal year, which begins on July 1st. If possible, requests to increase fees should be forwarded to the Palmdale City Attorney in February of any given year. d. The Firm’s fees for legal services are based primarily on hourly rates; other factors considered by the Firm in determining a fair fee are set forth in Rule 4-200 of the Rules of Professional Conduct of the California State Bar Association. If persons who are “Of Counsel” to the Firm work on City matters, the Firm and its Of Counsel may from time to time share the fees paid by City; however, if such is the case, City’s fees will not be increased in any way, and the fees which City is requested to pay will be the same as would have been payable had there been no such sharing of fees.
e. All fees, charges, costs and reimbursable items for
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the entire term of this Agreement shall not exceed a maximum of $100,000.00.

5.Resolution of Fee Disputes.

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

6.Term of the Agreement.

This Agreement shall become effective on the date of the last signatory and will remain in full force and effect for a period of two (2) years or until terminated in accordance with the provisions of Section 7. Notwithstanding the above, if the Firm is currently working on an assigned project, the term of this Agreement shall be extended until the assigned project is completed or terminated pursuant to Section 7.

7.Termination of the Agreement.

City has the right to terminate the Firm’s representation at any time, without cause, subject to an obligation to give notice in writing to the Firm at least thirty (30) days prior to termination. The Firm has the same right, subject to an obligation to give City written notice at least ninety (90) days prior to termination so that City will be able to arrange alternative representation. In either circumstance, City agrees to secure new counsel as quickly as possible and to cooperate fully in the substitution of the new counsel as counsel of record in any pending litigation matters.

The Firm agrees to cooperate fully in any such transition, including the transfer of files. Upon termination, all finished or unfinished materials shall become the property of City. Notwithstanding the termination of the Firm’s representation, City will remain obligated to pay to the Firm all fees and costs incurred prior to such termination.

8.Modifications to the Agreement.

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

9.Independent Contractor.

No employment relationship is created by this Agreement with the Firm or any employees of the Firm. For all purposes, the Firm and its employees 3-7Concord - Document ID: YmE3OTcyYWEtZT
are independent contractors to City and shall not incur, nor have the authority to incur any debt, obligation, or liability for or against City.

10.Assignment and Delegation.

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

11.Conflict of Interest.

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

12.Insurance.
a. The Firm shall obtain and maintain in full force and effect a professional liability insurance policy that provides coverage in an amount not less than $1,000,000 per occurrence. This insurance policy shall provide coverage to the City for any damages or losses suffered by City as a result of any error, omission, or neglect by the Firm that arises out of the professional services rendered under this Agreement. Such insurance may be subject to a self-insured retention or deductible to be borne entirely by the Firm. If such insurance is on a claims-made basis, firm shall maintain such coverage for no less than three years following the termination of the Agreement. This insurance policy shall provide coverage to the City for any damages or losses suffered by City as a result of any error, omission, or neglect by the Firm that arises out of the professional services rendered under this Agreement.

Such insurance may be subject to a self-insured retention or deductible to be borne entirely by the Firm.
b. The Firm will obtain and maintain workers’ compensation insurance in accordance with Section 3700 of the California Labor Code. c. The Firm will obtain and maintain in full force and effect commercial general liability insurance in an amount not less than $1,000,000 per occurrence with a $2,000,000 aggregate.
d. The Firm will obtain and maintain in full force and effect a commercial automobile liability policy in an amount not less than $1,000,000 including owned (if any), non-owned and hired automobile coverage.

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e. All insurance coverage specified above will provide for a minimum of thirty (30) days notice of cancellation by the insurance carrier, and will be maintained in full force and effect throughout the term of this Agreement. Such insurance shall name the City as an additional insured, and shall include a waiver of subrogation.

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

13.Legal Files.
a. During the period that the Firm is actively working upon a matter, the files pertaining thereto will be maintained in its offices. After the Firm has concluded working upon a matter, the files may be transferred to an offsite storage facility, from which they can be retrieved upon reasonable notice. All original agreements, modification or deeds, easements or similar original documents should be forwarded to the Palmdale City Clerk either as created or at the expiration of the fourth calendar year following the consummation or conclusion of each matter for which a file is opened. City may request copies of its client matter files at any time, including, without limitation, upon termination of the Firm’s engagement. City agrees that upon delivery of any client matter files that it will pay the Firm for its costs incurred in photocopying such files.
b. If the firm is called upon to give testimony or produce documents in any legal or administrative proceeding which concerns City in any way, whether before or after the representation and rendition of legal services to City under this agreement terminates, City agrees to pay the Firm, at it’s then prevailing hourly rates, for it’s time in investigating, preparing for and in giving testimony and/or in producing documents and for all expense incurred in connection with doing so.

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

15. Nondiscrimination

In performance of this Agreement, the Firm shall not
discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, or age, gender, gender identity, gender expression, genetic information, or military and veteran status. The Firm will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, or age, gender, 5-7Concord - Document ID: YmE3OTcyYWEtZT
gender identity, gender expression, genetic information, or military and veteran status. 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.

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

CITY OF PALMDALE CIVICA LAW GROUP, APC

Ronda Perez
City Manager

Matthew R. Silver, Esq.

Partner
ADDRESS FOR NOTICE:

CITY OF PALMDALE
38300 Sierra Hwy
Palmdale, CA 93550

ADDRESS FOR NOTICE:

Civica Law Group, APC
4000 Barranca Parkway, Suite 250, PMB #782
Irvine, CA 92604
APPROVE AS TO FORM:

William P. Curley, III
Interim City Attorney

ATTEST:

Roxanne Faber
Acting City Clerk

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EXHIBIT "A''

RATE SCHEDULE

A. Identification.

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

B. Attorney Fees

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

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

C. Standard Charges.

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

D. Costs and Expenses.

In-office photocopying (Black & White) $0.16/page
In-office photocopying (Color) $0.60/page
Mileage IRS prevailing mileage rates
Computerized Legal Research At vendor cost
Word Processing No charge
Postage At vendor cost
Courier and Air Freight Charges At vendor cost
Messenger Services At vendor cost
Title Report and/or Litigation Guarantee At vendor cost Notary At vendor cost
Court Photocopying At cost
Incoming or out-going Fax Charges No charge
Conference Call Charges AT&T standard rates or equal
Travel Expenses At cost
Other reasonable costs At cost

---------------------------------------- INTERNAL USE ONLY ----------------------------------------

■Certificate(s) and Endorsement(s) attached
■Confirmed business name on contract with certificate(s) ■Attached Agreement Checklist and met all requirements
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City Council Staff Report
DATE: MAY 3, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS

ENGINEERING DIVISION
DISTRICT: 1 AND 2
SUBJECT: ADOPT RESOLUTION NO. CC 202 3-024, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE DIRECTING THE
PREPARATION OF THE ANNUAL ENGINEER’S REPORT FOR THE

CONTINUATION OF THE ANNUAL LEVY OF ASSESSMENTS AND

DESIGNATING THE ENGINEER OF WORK FOR FISCAL YEAR
2023/2024 FOR THE CITY OF PALMDALE DRAINAGE BENEFIT
ASSESSMENT DISTRICTS NO. 1, AND NO. 2006-02.

ISSUE
Adopt Resolution No. CC 2023-024, a Resolution of the City Council of the City of Palmdale directing the preparation of the annual Engineer’s Report for the continuation of the annual levy of assessments and designating the Engineer of Work for the City of Palmdale Drainage Benefit Assessment Districts No. 1, and No. 2006-02.

RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. CC 2023-024 directing the preparation of the annual Engineer’s Report for the continuation of the annual levy of assessments and designating the Engineer of Work for the City of Palmdale Drainage Benefit Assessment Districts No. 1, and No. 2006-02.

BACKGROUND
The Anaverde (Drainage Benefit Assessment District No. 1, formed in 2004), and Ritter Ranch (Drainage Benefit Assessment District No. 2006 -02, formed in 2007) developments required the formation of a drainage benefit assessment district as a condition of approval in order to provide the funds to maintain the drainage facilities for the developments. As a result, the formation of the Drainage Benefit Assessment Districts No. 1, and No. 2006 -02 were approved by the property owners on May 12, 2004 and January 3, 2 007, respectively, pursuant to mailed ballot elections conducted in accordance with Article XIIID of the California Constitution.

The purpose of the Drainage Benefit Assessment Districts is to fund the installation, construction or maintenance of any autho rized improvements under the Benefit Assessment Act of 1982 (California Government Code Section 54703 et seq.), including, but not limited to, drainage improvements and any facilities which are appurtenant to Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-024
May 3, 2023

Page 2 ends

any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.

DISCUSSION
Resolution No. CC 2023-024 designates NBS as the Engineer of Work and directs the preparation of the annual Engineer’s Report for Fiscal Year 2023/2024 for the City of Palmdale Drainage Benefit Assessment Districts No. 1, and No. 2006-02.

Each year, in order for the City to continue to levy annual assessments within the Drainage Benefit Assessment Districts No. 1, and No. 2006-02, the City must have a detailed Engineer’s Report approved by the City Council. The attached resolution, ordering the preparation of the combined annual Engineer’s Report, initiates the proceedings for the annual levy of assessments for the Drainage Benefit Assessment Districts No. 1, and No. 2006-02 for Fiscal Year 2023/2024.

The annual Engineer’s Report will be presented to the City Council at the June 7, 2023 meeting. A public hearing will be held at the July 12, 2023 City Council meeting in order to accept public testimony regarding the annual report and authorize the levy of assessments for Fiscal Year 2023/2024.

FISCAL IMPACT
Levy amounts will be included with the Engineer’s Report that will be presented at the June 7, 2023 City Council meeting.

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

A. Seek innovative, cost effective, customer focused methods of service delivery.

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

Prepared by: Lynn Glidden, Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley III, Interim City Attorney

ATTACHMENTS

1. Resolution No. CC 2023-024

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2023-024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

DIRECTING PREPARATION OF THE ANNUAL ENGINEER'S REPORT

FOR THE CONTINUATION OF THE ANNUAL LEVY OF ASSESSMENTS

AND DESIGNATING THE ENGINEER OF WORK FOR FISCAL YEAR
2023/2024 FOR THE DRAINAGE BENEFIT ASSESSMENT DISTRICTS NO. 1, AND NO. 2006-02
WHEREAS, the City of Palmdale Drainage Benefit Assessment Districts No. 1, and No. 2006-02 (the “Assessment Districts” or “Districts”) were approved by property owners pursuant to mailed ballot elections conducted in accordance with Article XIIID of the California Constitution, and the "Benefit Assessment Act of 1982" (the “Act”), being Chapter 6.4 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (commencing with Section 54703 thereof).

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

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

SECTION 1. The City Council hereby proposes to continue to levy and collect annual assessments against the lots and parcels of land within the City of Palmdale Drainage Benefit Assessment Districts No. 1, and No. 2006-02 to pay for the costs and expenses of the improvements described in Section 3 below, for the fiscal year commencing July 1, 2023 and ending June 30, 2024, pursuant to the Act, and as provided by Article XIIID of the California Constitution.

SECTION 2. The purpose of the Assessment Districts is for the installation, maintenance, and servicing of public improvements, as described in Section 3 below.

SECTION 3. Within the Assessment Districts, the existing and proposed improvements to be undertaken may be briefly described as follows: the installation, construction or maintenance of any authorized improvements under the Act, including, but not limited to, drainage improvements and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.

Resolution No. CC 2023-024

Page 2 of 2 ends

SECTION 4. NBS is hereby designated as Engineer of Work for purposes of these proceedings and is hereby ordered to prepare an Engineer's Report in accordance with Article 4 of Chapter 6.4 of the Act and Article XIIID of the California Constitution. Upon completion, the Engineer of Work shall file the Engineer's Report with the City Clerk for submission to the City Council.

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

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

PASSED, APPROVED and ADOPTED this 3rd day of May, 2023. _________________________________
Approved as to form: Laura Bettencourt, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III 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 3 rd day of May, 2023 by the following roll call vote:

AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT:___________________________ Date: ______________________________ _____________________________ Rochelle Scott, Acting City Clerk
City Council Staff Report
DATE: MAY 3, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS

ENGINEERING DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2023-025, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE DIRECTING THE
PREPARATION OF THE ANNUAL ENGINEER’S REPORT S FOR

THE CONTINUATION OF THE ANNUAL LEVY OF ASSESSMENTS

AND DESIGNATING THE ENGINEER OF WORK FOR FISCAL YEAR
2023/2024 FOR THE CITY OF PALMDALE LANDSCAPE

MAINTENANCE ASSESSMENT DISTRICTS AND ANNEXATIONS ,

PARK MAINTENANCE AND RECREATION IMPROVEMENT

DISTRICT, AND STREETLIGHT MAINTENANCE ASSESSMENT
DISTRICTS AND ANNEXATIONS.

ISSUE
Adopt Resolution No. CC 2023-025, a Resolution of the City Council of the City of Palmdale directing the preparation of the annual Engineer’s Reports for the continuation of the annual levy of assessments and designating the Engineer of Work for fiscal year 2023/2024 for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations.

RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. CC 2023-025 directing the preparation of the annual En gineer’s Report s for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations.

BACKGROUND
The City of Palmdale Landscape Maintenance Assessment Districts and Annexations , Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations, were approved by property owners pursuant to several mailed ballot elections conducted in accordance with Article XIIID of the California Constitution and the Landscaping and Lighting Act of 1972 (the "Act"), Part 2 Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-025
May 3, 2023

Page 2 ends

of Division 15 of the California Streets and Highways Code (commencing with Section 22500 thereof).

The purpose of the Landscape Maintenance Assessment Districts and Annexations is to fund the installation, maintenance, and servicing of ornamental structures, landscaping, including trees, shrubs, grass and other ornamental vegetation, and appurtenant facilities, including irrigation systems, drainage devices and drywells located in public places within the boundaries of the Landscape Maintenance Assessment Districts and Annexations.

The purpose of the Park Maintenance and Recreation Improvement District is to fund the installation, maintenance and servicing of public parks and recreational facilities throughout the City.

The purpose of the Streetlight Maintenance Assessment Districts and Annexations is to fund the installation, maintenance, and servicing of any authorized improvements under the Act, including, but not limited to streetlight, traffic signal, and highway safety light improvements, and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.

DISCUSSION
Resolution No. CC 2023-025 designates NBS as the Engineer of Work and directs the preparation of the annual Engineer’s Reports for Fiscal Year 2023/2024 for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations.

Each year, the Landscaping and Lighting Act of 1972 requires that, in order to continue the annual levy of assessments, the Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations have a detailed Engineer’s Report approved by the City Council. The attached resolution, ordering the preparation of the annual Engineer’s Reports, initiates the proceedings for the annual levy of assessments for the Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations for Fiscal Year 2023/2024.

The annual Engineer’s Reports will be presented to the City Council at the June 7, 2023 meeting. A public hearing will be held at the July 12, 2023 Council meeting in order to accept public testimony regarding the combined annual Engineer’s Report and levy of assessments for Fiscal Year 2023/2024.

Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-025
May 3, 2023

Page 3 ends

FISCAL IMPACT
Levy amounts will be included with the combined annual Engineer’s Reports that will be presented at the June 7, 2023 City Council meeting.

STRATEGIC PLAN
Invest in infrastructure to improve community viability.

Prepared by: Lynn Glidden, Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley III, Interim City Attorney

ATTACHMENTS

1. Resolution No. CC 2023-025

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2023-025

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

DIRECTING PREPARATION OF THE ANNUAL ENGINEER'S REPORT

FOR THE CONTINUATION OF THE ANNUAL LEVY OF ASSESSMENTS

AND DESIGNATING THE ENGINEER OF WORK FOR FISCAL YEAR
2023/2024 FOR THE CITY OF PALMDALE LANDSCAPE

MAINTENANCE ASSESSMENT DISTRICTS AND ANNEXATIONS,

PARK MAINTENANCE AND RECREATION IMPROVEMENT DISTRICT,

AND STREETLIGHT MAINTENANCE ASSESSMENT DISTRICTS AND

ANNEXATIONS
WHEREAS, the City of Palmdale Landscape Maintenance Assessment Districts and Annexations (the “Landscape Assessment Districts”), Park Maintenance and Recreation Improvement District (the “Park District”), and Streetlight Maintenance Assessment Districts and Annexations (the “Streetlight Assessment Districts”, or all together, the Landscape Assessment Districts, Park District, and Streetlight Assessment Districts may be referred to as the “Districts”) were approved by property owners pursuant to several mailed ballot elections conducted in accordance with Article XIIID of the California Constitution, and the Landscaping and Lighting Act of 1972 (the "Act"), Part 2 of Division 15 of the California Streets and Highways Code (commencing with Section 22500 thereof).

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

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

SECTION 1. The City Council hereby proposes to continue to levy annual assessments for existing City of Palmdale Districts and to levy and collect assessments against the lots and parcels of land within such Districts to pay for the costs and expenses of the improvements described in Section 3 below, for the fiscal year commencing July 1, 2023 and ending June 30, 2024, pursuant to the Act, and as provided by Article XIIID of the California Constitution.

SECTION 2. The purpose of the Districts is for the installation, maintenance and servicing of public improvements, as described in Section 3 below.

SECTION 3. Within the Landscape Assessment Districts, the existing and proposed improvements to be undertaken may be briefly described as follows: the installation, maintenance and servicing of ornamental structures, landscaping, including trees, shrubs, grass and other ornamental vegetation, and appurtenant facilities, including irrigation systems, drainage devices and drywells located in public places within the boundaries of the Landscape Assessment Districts. Maintenance means the Resolution No. CC 2023-025

Page 2 of 3 ends

furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the ornamental structures, landscaping and appurtenant facilities, including repair, removal or replacement of all or part of any of the ornamental structures, landscaping or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of electricity for the lighting and operation of the ornamental structures, landscaping, and appurtenant facilities, and water for the irrigation and control of the landscaping and the maintenance of any of the ornamental structures, landscaping, and appurtenant facilities.

Within the Park District, the existing and proposed improvements to be undertaken by the Park District are generally described as: installation, maintenance and servicing of public facilities, including but not limited to, landscaping, sprinkler systems, park grounds, park facilities, amphitheaters, landscape corridors, ground cover, shrubs and trees, street frontages, multi-use trails, camp sites and picnic areas, equestrian facilities, playground equipment and hardcourt areas, senior and community centers, drainage systems, lighting, fencing, entry monuments, sport and recreation fields, concession stands, basketball courts, tennis courts, running tracks, aquatic parks, swimming pools and pool enclosures, other recreational facilities, security guards, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, for property owned, operated or maintained by the City of Palmdale. Whereas, installation means the construction of recreational improvements, including, but not limited to, land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage, lights, playground equipment, play courts, recreational facilities, and public restrooms. Whereas, maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of said improvements, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health and beauty of landscaping; and cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti. Whereas, servicing means the furnishing of electric current or energy for the operation or lighting of any improvements, and water for irrigation of any landscaping or the maintenance of any other improvements.

Within the Streetlight Assessment Districts, the existing and proposed improvements to be undertaken may be briefly described as follows: the installation, maintenance, and servicing of any authorized improvements under the Act, including, but not limited to streetlight, traffic signal, and highway safety light improvements, and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.

Resolution No. CC 2023-025

Page 3 of 3 ends

SECTION 4. NBS is hereby designated as Engineer of Work for purposes of these proceedings and is hereby ordered to prepare an Engineer's Report in accordance with Article 4 of Chapter 1 of the Act and Article XIIID of the California Constitution. Upon completion, the Engineer of Work shall file the Engineer's Report with the City Clerk for submission to the City Council.

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

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

PASSED, APPROVED and ADOPTED this 3rd day of May, 2023. _________________________________
Approved as to form: Laura Bettencourt, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III 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 3 rd day of May, 2023 by the following roll call vote:

AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT:___________________________ Date: ______________________________ _____________________________ Rochelle Scott, Acting City Clerk
City Council Staff Report
DATE: MAY 3, 2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

MAINTENANCE DIVISION
DISTRICT: ALL
SUBJECT: APPROVE PURCHASE ORDER NO. 202 30522 WITH NIXON-EGLI EQUIPMENT COMPANY FOR ONE (1) NEW JAJ-600WH EASEMENT
MACHINE IN AN AMOUNT NOT TO EXCEED $114,109.

ISSUE
Approve Purchase Order No. 20230522 with Nixon-Egli Equipment Company for One (1) New JAJ-600WH Easement Machine in an amount not to exceed $114,109.

RECOMMENDATION
Staff recommends that the City Council:

1. Approve Purchase Order No. 20230522 with Nixon-Egli Equipment Company for One (1) New JAJ-600WH Easement Machine in an amount not to exceed $114,109.

2. Authorize the City Manager or her designee to authorize Purchase Order No. 20230522 with Nixon-Egli Equipment Company , including minimal and/or non - substantive changes.

BACKGROUND
With the adoption of the Fiscal Year 2022 -2023 Budget, the City approved the purchase of a new JAJ -600WH easement machine for Sewer Maintenance to help meet their operational needs.

The City is utilizing cooperative pricing through Sourcewell Contract No. 101221-SCA with Sewer Equipment Co. of Americafor the purchase of this equipment from authorized distributor Nixon-Egli Equipment Company of Southern California . This cooperative agreement has an initial four -year term effective from November 24 , 2021 through November 29, 2 025, with an option to renew for one (1) additional one -year period through November 29, 2026 at Sourcewell’s discretion.

Report to Mayor and City Council
Re: Approve Purchase Order No. 20230522 with Nixon-Egli Equipment Company May 3, 2023

Page 2 ends

DISCUSSION
Currently, Sewer Maintenance has no means of reaching certain manholes and mainlines to perform necessary preventative maintenance. These manholes and mainlines are in easements with very limited access resulting in substandard cleaning and maintenance.

The addition of a sewer easement machine would allow crews to gain access to areas where the full-size equipment cannot reach and greatly enhance sewer maintenance possibilities.

The JAJ-600WH easement machine is a self-propelled four-wheel drive, all terrain, hose reel that will be used in conjunction with a high-pressure hydro jetter or GapVax sewer truck. It is equipped with a safety pressure relief valve, 180-degree rotating safety reel, automatic “hands free” level wind hose, hydraulic tool circuit, and a “caterpillar type” independently suspended track drive system, and has the ability to fit through standard 36” gates. These features extend the capabilities of the City’s current sewer trucks by 500 feet or more, allowing crews to perform preventative maintenance more adequately in these normally unreachable areas and reducing the likelihood of sewer overflows.

Therefore, staff recommends that the City Council Approve purchase order 20230522 with Nixon-Egli Equipment Company for a new JAJ-600WH Easement Machine in an amount not to exceed $114,109.

FISCAL IMPACT
The purchase order amount for One (1) New JAJ-600WH Easement Machine for FY 2022-2023 will not exceed $114,109. Sufficient funds are budgeted in Fleet Maintenance Account 15433006-774400.

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.

Goal III: Invest in infrastructure to improve community livability.

B. Seek innovative, cost effective, customer focused methods of service delivery.

Prepared by: Lynn Glidden, Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, Interim City Attorney Report to Mayor and City Council
Re: Approve Purchase Order No. 20230522 with Nixon-Egli Equipment Company May 3, 2023

Page 3 ends

ATTACHMENTS

1. Purchase Order No. 20230522 Nixon-Egli Equipment

2. Sourcewell Contract No. 101221-SCA

3. Nixon-Egli Quote 100710 Easement Machine

101221-SCA

Rev. 3/2021 1

Solicitation Number: RFP #101221

CONTRACT

This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Sewer Equipment Co. of America, 1590 Dutch Rd., Dixon, IL 61021 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Sewer Vacuum, Hydro-Excavation, and Municipal Pumping Equipment with Related Accessories and Supplies from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT

A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

B. EXPIRATION DATE AND EXTENSION. This Contract expires November 29, 2025, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.

C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All rights will cease upon expiration or termination of this Contract.

2. EQUIPMENT, PRODUCTS, OR SERVICES

A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above. 













101221-SCA

Rev. 3/2021 2

Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.

In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING

All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.

When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.

A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be 













101221-SCA

Rev. 3/2021 3

returned within a reasonable time at no cost to Sourcewell or its Participating Entities.

Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid tax- exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.

4. PRODUCT AND PRICING CHANGE REQUESTS

Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:

x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change; 













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x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS

A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.

The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at government- owned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING

A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell 













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contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum; the terms of which will be negotiated directly between the Participating Entity and the Supplier. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as e- commerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE

A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:















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x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT

A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:

x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.

The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased 













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by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE

Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE

A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Agreement are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.

D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.














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E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party.For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS

Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.

12. GOVERNMENT DATA PRACTICES

Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT

A. INTELLECTUAL PROPERTY

1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use thetrademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.

2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, 













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resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.

3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.

4. As applicable, Supplier agrees to indemnify and hold harmless Sourcewell and its Participating Entities against any and all suits, claims, judgments, and costs instituted or recovered against Sourcewell or Participating Entities by any person on account of the use of any Equipment or Products by Sourcewell or its Participating Entities supplied by Supplier in violation of applicable patent or copyright laws.

5. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.

C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.















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14. GOVERNING LAW, JURISDICTION, AND VENUE

The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.

15. FORCE MAJEURE

Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.

16. SEVERABILITY

If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES

A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract. 













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The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:

x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.

18. INSURANCE

A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease

2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for Products-Completed operations
$2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms 













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no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
$1,000,000 each accident, combined single limit

4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000

5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.

Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate

Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is 













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primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.

D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.

E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE

A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION

Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.















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21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS

Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government.

The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.

A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-

1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.

B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non- federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions. 













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C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).

Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.

F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names 













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of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.

G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).

H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.

I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.

J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.

K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.

L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation 













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and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier not use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.

N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by an Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.

O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.

P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.

Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.

R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.

Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.

S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.















101221-SCA

Rev. 3/2021 18

T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.

22. CANCELLATION

Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.

Sourcewell Sewer Equipment Co. of America

By: __________________________ By: __________________________ Jeremy Schwartz Shawn Bondele
Title: Chief Procurement Officer Title: Inside Sales Manager

Date: ________________________

Date: ________________________

Approved:

By: __________________________
Chad Coauette
Title: Executive Director/CEO

Date: ________________________
























 


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City Council Staff Report
DATE: MAY 3, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: ALL
SUBJECT: APPROVE THE TRANS FER OF SB 1 FUNDS,THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 , FROM ACCOUNT NO.

S0025210, PAVEMENT RESURFACING TO ACCOUNT NO.

S0062210, COUNTY PAVEMENT PROJECT S, IN THE AMOUNT OF
$1,235,000
ISSUE
Approve the transfer of SB1 Funds, The Road Repair and Accountability Act (RMRA) of 2017, from Account No. S0025210, Pavement Resurfacing to Account No. S0062210, County Pavement Projects, in the amount of $1,235,000.

RECOMMENDATION
Staff recommends that the City Council:

Approve the transfer of SB1 Funds, The Road Repair and Accountability Act of 2017 , from Account No. S0025210, Pavement Resurfacing to Account No. S0062210, County Pavement Project Contribution, in the amount of $1,235,000 and recommend the Finance Department to make that budget adjustment.

BACKGROUND
On April 28, 2017, the Governor signed Senate Bill (SB) 1 (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017 . To address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system, SB 1, increases per gallon fuel excise taxes; increases diesel fuel sales taxes and vehicle registration fees; and provides for inflationary adjustments to tax rates in future years.

Beginning November 1, 2017, the State Controller (Controller) began depositing various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding is apportioned by formula to eligible cities and counties pursuant to Streets and Highway Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.

Report to Mayor and City Council
Re: SB1 Funding Transfer
May 3, 2023

Page 2 ends
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