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
COMMISSIONERS FRAGA-SAENZ, DENNY
3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE
4. PRESENTATION
4.1 Presentation by Mayor and Council of a Proclamation declaring June 2023 as Immigrant Heritage Month in the City of Palmdale.
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.)
CITY COUNCIL MEETING
SUCCESSOR AGENCY/HOUSING AUTHORITY
CITY COUNCIL CHAMBERS
38300 SIERRA HIGHWAY
SUITE B
PALMDALE, CA 93550
WEDNESDAY, JUNE
7, 2023
5:00 PM
www.cityofpalmdale.org
WELCOME
City Council
Wednesday, June
7, 2023
6. PUBLIC COMMENTS
Please see the City Clerk to make your request to speak. When addressing the City Council, state your name for the official record. If presenting handout materials for the City Council, please provide eight copies to the City Clerk before speaking. Your materials will become public record.
NON-AGENDA ITEMS: You may address the City Council on matters NOT listed on the agenda during “Public Comments.” You will be allotted up to three (3) minutes to speak on any item in the City’s subject matter jurisdiction that is not already scheduled for discussion. Under the Ralph M. Brown Act, the City Council cannot act on items raised during public comment but may respond briefly to statements made or questions posed, request clarification or refer the item to staff.
AGENDA ITEMS: If you wish to address the Council on an item that is listed on the agenda, please make your request to speak before the Mayor announces the public comment item. You will be allotted up to three (3) minutes to speak, and your remarks should be limited to the discussion of that specific agenda item.
7. HOUSING AUTHORITY CONSENT CALENDAR
All matters listed under the Housing Authority Consent Calendar will be enacted by one motion unless an item(s) is pulled by the Authority, 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 Adopt Resolution No. HA 2023-002, a Resolution of the Housing Authority of the City of Palmdale; repealing Resolution No. HA 2017-004 and approving the Housing Authority of the City of Palmdale’s Homelessness Prevention and Rapid Rehousing Program; approve agreement A-8366 with The Salvation Army to conduct the Homelessness Prevention and Rapid Rehousing Program (HPRP); and authorizing the Executive Director or their designee to make necessary changes and execute documents related to the Homelessness Prevention and Rapid Rehousing Program.
Staff Report HPRP June 7v2.docx
HPRP Agreement A-8366.pdf
HA RESO HPRP 2023-002.doc
7.2 Approve the minutes from the previous meeting.
HA - April 5, 2023
HA - May 17, 2023
04 05 2023 - HA Minutes.pdf
05 17 2023 - HA Minutes.pdf
City Council
Wednesday, June
7, 2023
8. 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.
8.1 Receive and file the Monthly Investment Activity Reports for April 2023.
1. Staff_Report_-_Investment_Report_Apr_2023.docx
Investment Report City of Palmdale & Successor Agency_April 23.pdf
8.2 Receive and file the Annual Report on Development Impact Fees for Fiscal Year Ended June 30, 2022 and adopt findings to commit funds held in the Littlerock Drainage Fee Fund, Fire Facilities Fund, and the Sewer Upgrade Fee Fund.
1. Staff Report - Development Impact Fee Report FY22.docx
2. City of Palmdale 2022 Final AB1600 Development Impact Fees.pdf
8.3 Approve agreement with Harrell & Company Advisors, LLC. for Municipal Advisory Services, in the amount of $125,000, for a five (5) year term through June 30, 2028.
Staff Report - Harrell & Company Agreement.docx
City of Palmdale - HARRELL & COMPANY ADVISORS, LLC.
(A-8387) - 05-10-2023
- Signed v7.pdf
8.4 Approve Agreement with Flock Group, Inc to provide a fixed location Automated License Plate Recognition (ALPR) system, fifty LPR cameras, and provide implementation services in a not to exceed amount of $157,500 for a one (1) year term.
Flock LPR Staff Report 2023.docx
CA - City of Palmdale - Flock Group, Inc Agreement.pdf
8.5 Approve First Amendment to Agreement with True Point, LLC to provide implementation services for Accela land use, plan review, permitting, and inspection tracking system for an additional amount of $150,000 and a not to exceed amount of $450,000 for a three (3) year term through December 31, 2024.
TruePoint_Amendment_Staff_Report_2023 (2).docx
TruePoint Solutions, LLC (A-7699) Amendment #1 - 04-20-2023 - for council packet.pdf
8.6 Approval of 36 Fireworks booth permits for non-profit organizations.
2023_Staff_Report_Fireworks.docx
2023_Firework_Booths_Map.pdf
2023_Fireworks_PP.pptx
City Council
Wednesday, June
7, 2023
8.7 Adopt Resolution No. CC 2023-026, a Resolution of the City Council of the City of Palmdale of intention to continue assessments for Fiscal Year 2023/2024, preliminarily approving the annual Engineer's Report and providing for notice of hearing for the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02.
Palmdale DBAD - Staff Report 6-7-23.docx
Palmdale DBAD - Res 2 #CC 2023-026 for 6-7-23.doc
Drainage Engineers Report FY 2023-24_v1.pdf
8.8 Adopt Resolution No. CC 2023-027, a Resolution of the City Council of the City of Palmdale of intention to continue assessments for Fiscal Year 2023/2024, preliminarily approving the annual Engineer's Report and providing for notice of hearing 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 LLs - Staff Report 6-7-23.docx
Palmdale L&Ls - Res 2 #CC 2023-027 for 6-7-23.doc
LMD Engineers Report FY 2023-24_v1.pdf
Park Engineers Report FY 2023-24_v1.pdf
Streetlight Engineers Report FY 2023-24_v1.pdf
8.9 Approve lease agreement between the City of Palmdale and New Cingular Wireless, dba AT&T Wireless for a cellular wireless facility lease located at McAdam Memorial Park.
ATT Lease Agreement-Staff Report.docx
A-8298 AT&T Agreement McAdams Park.pdf
8.10 Adopt Resolution No. CC 2023-039, a Resolution of the City Council of the City of Palmdale to repeal and replace Resolution No. CC 2020-035 with Resolution No.
CC 2023-039 which adopts the updated Title VI Plan for the City of Palmdale for 2023-2026.
Resolution 2023-039 staff report.docx
Resolution 2023-039.doc
2023 Update FINAL Title VI and LED.pdf
8.11 Adopt Resolution No. CC 2023-040, a Resolution of the City Council of the City of Palmdale to adopt the City of Palmdale Sustainable Transportation Plan.
Staff Report Resolution STP CC 2023-040.docx
STP Resolution CC 2023-040.docx
PalmdaleSustainableTransportationPlan_CityCouncilPresentation_v4 5.31.23.pptx
8.12 Adopt Resolution No. CC 2023-034, a Resolution of the City Council of the City of Palmdale to adopt a list of projects for Fiscal Year 2023-2024 Funded by SB 1:
The Road Repair and Accountability Act of 2017.
Resolution_2023-034_staff_report RMRA.docx
City Council
Wednesday, June
7, 2023
Resolution 2023-034.doc
8.13 Approve the minutes from the previous meeting.
May 17, 2023 - CC/SA/IDA/PAA/PCA/PFA
05 17 2023 - CC_SA_HA_IDA_PAA_PCA_PFA Minutes.pdf
9. NEW BUSINESS
9.1 Presentation of the City's Homelessness Plan Update.
Homelessness Plan Update June 2023.pdf
9.2 Discussion and possible direction on the relinquishment of Palmdale Blvd by Caltrans to the City of Palmdale.
10. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON
THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT
PUBLIC EXPENSE
10.1 Council Reports on Committee Memberships and Meetings Attended at Public Expense.
Alarcon Informational Report 060723.docx
Bettencourt Informational Report 060723.docx
Bishop Informational Report 060723.docx
LOA Informational Report 060723.docx
Ohlsen Informational Report 060723.docx
11. CITY COUNCIL ANNOUNCEMENTS AND REQUESTS FOR NEW AGENDA ITEMS
12. CITY MANAGER’S REPORT
13. PRESENTATION BY CITY ATTORNEY
13.1 CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION
Gerald Lynn Dolen and Roberta Dora Dolen v. City of Palmdale et al. Los Angeles County Superior Court Case No. 21AVCV00377
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).
13.2 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Edman Discua v. City of Palmdale, et al.
Los Angeles Superior Court
Case No. 21STCV45406
City Council
Wednesday, June
7, 2023
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).
14. ANNOUNCEMENT BY CITY ATTORNEY
15. ADJOURN
meeting to June 21, 2023 at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
Americans with Disabilities Act (ADA) Accommodations
In accordance with the Americans with Disabilities Act of 1990, if you require a disability- related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (661) 267-5151 at least 72 hours prior to the meeting.
If you require oral Spanish translation, please contact the City Clerk’s Office at (661) 267- 5151 at least 72 hours prior to the meeting.
City Council
Wednesday, June
7, 2023
Housing Authority
Staff Report
DATE: JUNE 7, 2023
TO: HONORABLE CHAIR AND COMMISSIONERS
FROM: NEIGHBORHOOD SERVICES
HOUSING DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION HA 2023 -002 A RESOLUTION OF THE
HOUSING AUTHORITY OF THE CITY OF PALMDALE REPEALING
RESOLUTION HA 2017 -004 AND APPROV ING THE HOUSING
AUTHORITY OF THE CITY OF PALMDALE’S HOMELESSNESS
PREVENTION AND RAPID REHOUSING PROGRAM; APPROVE
AGREEMENT A-8366 WITH THE SALVATION ARMY TO CONDUCT
THE HOMELESSNESS PREVENTION AND RAPID REHOUSING
PROGRAM; AND AUTHORIZING THE EXECUTIVE DIRECTOR OR
THEIR DESIGNEE TO IMPLEMENT THE PROGRAM, MAKE
NECESSARY CHANGES AND EXECUTE DOCUMENTS RELATED
TO THE HOMELESSNESS PREVENTION AND RAPID REHOUSING
PROGRAM.
ISSUE
Adopt Resolution HA 2023 -002 a resolution of the Housing Authority of the City of Palmdale; repealing resolution HA 201 7-004 and approv ing The Housing Authority of The City of Palmdale’s Homelessness Prevention and Rapid Rehousing Program; approve agreement A-8366 with The Salvation Army for the Homelessness Prevention; and Rapid Rehousing Program (HPRP) and authorizing the Executive Director or their designee to implement the program, make necessary changes and execute documents related to the Homelessness Prevention and Rapid Rehousing Program.
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution HA 2023 -002 Repealing Resolution HA 2017 -004 and approve the Housing Authority of the City of Palmdale’s Home lessness Prevention an d Rapid Rehousing Program;
2. Approve Agreement A-8366 with The Salvation Army for the Homelessness Prevention and Rapid Rehousing Program (HPRP); and
Report to Chair and Commissioners of the Housing Authority Re: HPRP Program
June 7, 2023
3. Authorize the Executive Director or their designee to make necessary changes and execute documents and implement the Homelessness Prevention and Rapid Rehousing Program.
BACKGROUND
The Homelessness Prevention and Rapid Rehousing Program is funded by the Low- and Moderate-Income Housing Asset Funds to provide homelessness prevention and rapid re-housing. The Housing Authority of the City of Palmdale’s Homelessness Prevention and Rapid Rehousing Program (HPRP) pursuant to California Health and Safety Code Section 34176.1(a)(2) provides financial assistance for individuals and families who are homeless or would be homeless but for the assistance of the HPRP Program.
The objectives of the HPRP program are to assist: a) individuals and families who are currently in housing but are at risk of becoming homeless and need temporary rent or utility assistance to prevent them from becoming homeless, or assistance to move to another unit (homeless prevention) and b) to assist individuals and families who are experiencing homelessness (residing in emergency or transitional shelters or on the street) and need temporary assistance in order to obtain housing and retain it (rapid re- housing). Program resources must be targeted and prioritized to serve households that are most in need of this temporary assistance and are most likely to achieve stable housing.
DISCUSSION
The Homelessness Prevention and Rapid Rehousing Program (HPRP) has been successful in previous years assisting households with financial burdens. Program assistance may include the provision of short-term or medium-term rental assistance, housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.
The need for assistance continues to increase as the pandemic has ended. Many programs offering assistance due to COVID have come to an end and funding is no longer available. Many City Departments are currently experiencing a high call volume from residents inquiring about rental assistance. The Salvation Army experienced 214 requests for assistance in 2021-2022 and 477 requests for assistance to date in 2022- 2023. There is a high demand for Case Management therefore funding was increased from $25,000 to $50,000 for Case Management services. The Homelessness Prevention and Rapid Rehousing Program supports the strategies and goals of Los Angeles County’s Homeless Initiative approved by the County Board of Supervisors, Initiative strategies include to Prevent, House and Stabilize the unhoused. HPRP meets the City of Palmdale’s Plan to Prevent and Combat Homelessness goal to prevent episodes of Report to Chair and Commissioners of the Housing Authority Re: HPRP Program
June 7, 2023
homelessness in the community, including individuals and families, to assist homeless individuals and families by providing relevant and accurate information that creates a path for them to no longer be homeless, and to create housing opportunities that meet their needs.
A Request for Proposal was published in PlanetBids, 245 vendors were notified of the request, 12 prospective bidders showed interest and 1 proposal was received. The Salvation Army was selected to provide Case Management services for the Homelessness Prevention and Rapid Rehousing Program. The Salvation Army currently provides Case Management services and has assisted 119 unduplicated households over the last 5 years. An increase in funding has been provided for Case Management, a part-time position to increase their availability for assisting clients. The Case Manager works with individuals and families at risk of becoming homeless, providing referrals for services as needed and determining the level of assistance including rental assistance, utility payments, housing relocation and/or stabilization services.
FISCAL IMPACT
Funding of $240,000 of restricted Housing Asset Funds in account 29364012 will be allocated for consultant services per year. The allocation of $190,000 for direct assistance including rental assistance, housing relocation and stabilization services, $50,000 for Case Management. Funding of $10,000 is allocated for unit inspections and Housing Authority administration of Homelessness Prevention and Rapid Rehousing Program.
The contract term will be for 3 years commencing on July 1, 2023, with the option to extend it for two additional one-year terms.
A total of $1,250,000 will be allocated for the term of the agreement.
STRATEGIC PLAN
Goal IV: Maintain a desirable community where everyone wants to live, work and play.
B. Provide inclusive access to a variety of supportive services that build a resilient and healthy community.
Prepared by: Becky Bartlett, Management Analyst
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Executive Director
Approved as to form: William P. Curley III, Interim Authority Attorney
ATTACHMENTS
1. Agreement for The Salvation Army A-8366
2. Resolution HA 2023-002
AGREEMENT NO. A- 8366
CONTRACT FOR CONSULTANT SERVICES
BETWEEN THE HOUSING AUTHORITY OF THE CITY OF PALMDALE AND THE
SALVATION ARMY
THIS CONTRACT FOR CONSULTANT SERVICES (“Contract” herein) is made and entered into by and between the Housing Authority of the City of Palmdale a public body corporate and politic, (hereinafter called “HOUSING AUTHORITY”) and THE SALVATION ARMY (hereinafter called “CONSULTANT”). This Contract shall become effective on the date of the last signatory.
RECITALS
WHEREAS, HOUSING AUTHORITY 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 HOUSING AUTHORITY hereby engages CONSULTANT, and CONSULTANT accepts such engagement, to provide the following services:
Consultant shall provide program staff, supplies and necessary administrative support to fully implement the HPRP in conformance with the program regulations pursuant to Health and Safety Section 34176.1(a)(2) and Program Guidelines. Program staffing to be provided by Consultant shall include a minimum of one (1) Case Manager to serve the City of Palmdale community.
The Case Manager assigned to Palmdale HPRP shall conduct regularly scheduled office hours and shall be available to meet with HPRP participants by appointment at City locations, including but not limited to City Hall, South Antelope Valley Emergency Services (SAVES) and the Neighborhood Houses.
The three (3) categories of HPRP eligible activities include:
• Direct Financial assistance, which is limited to the following activities: short term rental assistance (1-3 months) and medium term (4-6 months) rental assistance. • Housing relocation and stabilization services, which are services that assist program participants with housing stability and placement. These services are limited to the 1-14Concord - Document ID: ODIwOGU2MGItMj
following eligible activities: housing search, mediation or outreach to property owners, credit repair, security deposits, utility deposits, utility payments, rental assistance for a final month at a location, and moving cost assistance, or other appropriate activities for homeless prevention and rapid rehousing of persons who have become homeless.
• Program delivery costs, which are direct personnel costs associated with HPRP program delivery cost category, limited to the following: all efforts necessary to determine the eligibility of the Program Participant, case management, housing search, outreach to property owners, data collection and reporting, and other appropriate activities for homeless prevention and rapid rehousing of persons who have become homeless. This cost shall not exceed the amount of funds budgeted for program delivery costs in the Agreement. Consultant may submit a Request for Reimbursement as often as is practicable to ensure that funds are continually reimbursed.
In all cases, HPRP regulations require that an initial evaluation be conducted of all potential HPRP beneficiaries to evaluate if their current homelessness or at-risk of homelessness situation can be reversed with HPRP assistance. Program resources must be “targeted and prioritized to serve households that are most in need of this temporary assistance and are most likely to achieve stable housing.” The purpose of the HPRP program is to prevent homelessness and ensure the rapid rehousing of households experiencing homelessness. The Authority has established HPRP guidelines requiring that Program Participants receiving HPRP funds must have a gross household income (as defined in Section 6914 of Title 25 of the California Code of Regulations and adjusted for the actual size of the applicant’s household) within the established limits for Low, Very Low or Extremely Low income as set forth in the table below. The selected respondent shall track the income level of all eligible Program Participant Households. In accordance with the California Department of Housing and Community Development (HCD) has established the 2022 income limits and the Authority will provide HCD’s annual updates as they become available.
Program Monitoring
Respondents approved for funding will be required to maintain and submit adequate information necessary to monitor program accountability and progress in accordance with the terms and conditions of the contract. On-site monitoring and inspection of financial and client files will also be undertaken by the Authority.
Monthly Reporting
By the fifteenth calendar day of each month, Consultant shall submit Performance Outcomes on the process of the program to the Housing Authority. Totals should reflect monthly, and cumulative data of all persons/households assisted, the number 2-14Concord - Document ID: ODIwOGU2MGItMj
of persons/households who contacted Consultant but were ineligible and provided referrals or information to other resources. A supporting narrative will also be required, that describes in measurable terms, the accomplishments and activities attained during the reporting month.
CONSULTANT shall perform and complete all such work and services in a manner satisfactory to HOUSING AUTHORITY.
1.2 Project deliverables shall be reviewed and approved by HOUSING AUTHORITY to determine acceptable completion. HOUSING AUTHORITY shall have the right to review and inspect the work during the course of its performance at such times as may be specified by HOUSING AUTHORITY.
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 HOUSING AUTHORITY. Any extensions of time must be mutually agreed upon in writing and executed by both parties.
1.4 HOUSING AUTHORITY shall provide to CONSULTANT, without charge, all data, program information, including reports, records, maps, and other information, now in HOUSING AUTHORITY’s possession, which may facilitate the timely performance of the work.
2 HOUSING AUTHORITY PROJECT MANAGER
To provide the services required by this Contract, CONSULTANT shall act under the authority and approval of a Project Manager appointed by HOUSING AUTHORITY.
The Housing Authority 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 Housing Authority Project Manager.
3 CONSULTANT’S KEY PERSONNEL
CONSULTANT’s Team and Key Personnel are as follows:
Case Manager, Karla Ramirez and Business Specialist, Cynthia Foster 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 HOUSING AUTHORITY. 4 CONTRACT TERM
The term of this contract is Three ( 3) years, commencing on July 1, 2023 with the option to extend for two additional one year terms.
5 TAXES
3-14Concord - Document ID: ODIwOGU2MGItMj
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 HOUSING AUTHORITY.
No person employed by CONSULTANT or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of HOUSING AUTHORITY.
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 HOUSING AUTHORITY for use in the performance of the work and if, to the actual knowledge of HOUSING AUTHORITY, 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 HOUSING AUTHORITY in the contract documents. CONSULTANT shall indemnify and hold harmless HOUSING AUTHORITY and anyone directly or indirectly employed by HOUSING AUTHORITY 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 HOUSING AUTHORITY, and shall defend all such claims in connection with any alleged infringement of such rights.
7 STANDARDS OF PERFORMANCE
CONSULTANT shall be responsible for the completeness and accuracy of its services and work and documents resulting there from, and HOUSING AUTHORITY shall not be responsible for discovering deficiencies therein. CONSULTANT shall correct any such deficiencies or errors without additional compensation and without cost to HOUSING AUTHORITY, except to the extent any such deficiency is directly attributable to deficiencies in HOUSING AUTHORITY-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.
4-14Concord - Document ID: ODIwOGU2MGItMj
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 HOUSING AUTHORITY.
8.3 CONSULTANT shall be responsible for payment of all CONSULTANT’s employees’ and subcontractor’s wages and benefits and shall comply with all requirements pertaining to the employer’s liability, workers’ compensation, unemployment insurance, and Social Security.
8.4 CONSULTANT shall indemnify and hold harmless HOUSING AUTHORITY, 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, HOUSING AUTHORITY shall pay to CONSULTANT an amount not to exceed the sum of Seven hundred twentyThousand dollars dollars ($ 720,000), payable as follows:
Not to exceed $240,000 per year for direct financial costs.
Rental Assistance Payments, Housing Relocation and Stabilization Services $190,000
Program Delivery Costs $50,000
HPRP Program Total $240,000
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 HOUSING AUTHORITY 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 HOUSING AUTHORITY. Total contract price includes expenses related to travel to and from HOUSING AUTHORITY to meet with HOUSING AUTHORITY and to appear, if so required, before City Council or any other board or commission of HOUSING AUTHORITY.
9.3 CONSULTANT shall maintain adequate records and shall permit inspection and audit by HOUSING AUTHORITY of CONSULTANT’s charges under this Contract. CONSULTANT shall make such records available to HOUSING 5-14Concord - Document ID: ODIwOGU2MGItMj
AUTHORITY during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records, and they will be available only to HOUSING AUTHORITY and any specified public agencies. Such records shall be maintained by CONSULTANT for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONSULTANT shall retain its records for the time required by such laws.
9.4 No payment made hereunder by HOUSING AUTHORITY to CONSULTANT, shall be construed as an acceptance by HOUSING AUTHORITY 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 HOUSING AUTHORITY, its officers, employees, agents and elected and appointed boards (hereinafter “Indemnified Parties”) for any loss, claim, demand, cause of action, cost, expense, damage, obligation or liability which arises out of or is in any way connected with the performance of any work under this agreement, including any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONSULTANT, its contractors or subcontractors, and regardless of any acts, omissions or negligence (whether active or passive) of any person or entity indemnified hereunder. At their own expense, CONSULTANT and, as applicable, any contractors or subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONSULTANT shall ensure that the contract of any contractor or subcontractor working under this agreement contain an indemnity agreement, requiring the contractor or subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above.
CONSULTANT shall indemnify the Indemnified Parties, and save it harmless from any and all loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
11 INSURANCE
11.1 CONSULTANT, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California.
Proof of Insurance, as identified in Section 11.8, must be reviewed and accepted by the Housing Authority Attorney.
11.1.1 Workers’ Compensation and Employer’s Liability
Workers’ Compensation—coverage as required by the State of California 6-14Concord - Document ID: ODIwOGU2MGItMj
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* $1,000,000 limit on a per occurrence basis
11.1.3 Commercial General Liability
$1,000,000.00 limit on a per occurrence basis
$2,000,000.00 general aggregate limit
11.1.4 Commercial Automobile Liability
$1,000,000.00 combined single limit including owned, non-owned and hired automobile coverage
11.2 All of CONSULTANT’s policies shall contain an endorsement providing that written notice shall be given to HOUSING AUTHORITY 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 HOUSING AUTHORITY 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 HOUSING AUTHORITY, and any other insurance maintained by the HOUSING AUTHORITY 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 HOUSING AUTHORITY certificates of insurance and endorsements to all required policies demonstrating that CONSULTANT has the required coverage and showing the required named insureds. Within five (5) days of written request from HOUSING AUTHORITY, CONSULTANT shall deliver to HOUSING AUTHORITY full and complete copies of all insurance policies required by this Contract.
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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 HOUSING AUTHORITY.
11.7 All insurance coverage must be maintained throughout the duration of this Contract.
11.8 Acceptable Proof of Insurance:
11.8.1 ACORD Certificate of Insurance listing all coverages, limits, deductibles and insureds; and endorsements for all applicable coverages if agent has authority to issue it; Additional insured Form CG20101185 or CG20100707 and CG20370704 or equivalent must be provided for general liability coverage.
Additional insured form CA0001 must be provided for automobile liability coverage.
11.8.2 Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements listing all insurers must be submitted to the Housing Authority Attorney.
11.8.3 *When professional (E&O) liability coverage is provided on a “claims made basis”, CONTRACTOR 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 CONTRACTOR, or its officers, employees, or agents during the time this Agreement was in effect.
11.9 Notwithstanding any other provision of this Contract, HOUSING AUTHORITY 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.
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12 TERMINATION WITHOUT CAUSE
HOUSING AUTHORITY 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 HOUSING AUTHORITY all finished or unfinished documents or programs and other materials, which shall be HOUSING AUTHORITY’s property. As compensation in full for services performed to the date of such termination, the CONSULTANT shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract. 13 TERMINATION FOR CAUSE
13.1 If the HOUSING AUTHORITY 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 HOUSING AUTHORITY 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 HOUSING AUTHORITY’s dissatisfaction and suggest corrective measures. If, after thirty days, the CONSULTANT has failed to implement the corrective measures, the HOUSING AUTHORITY may elect to terminate this Contract, in whole or in part.
13.2 In the event the HOUSING AUTHORITY terminates this Contract in whole or in part as provided herein above, the HOUSING AUTHORITY 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 HOUSING AUTHORITY 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 HOUSING AUTHORITY 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 HOUSING AUTHORITY, and to authorized reimbursement expenses.
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The above is in addition to any other remedies available by law or equity to the HOUSING AUTHORITY.
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 HOUSING AUTHORITY and CONSULTANT arising out of, or relating to this Contract, or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties.
15 OWNERSHIP OF DOCUMENTS
All documents, including, but not limited to, research, field notes, investigations, analysis and studies which are prepared in the performance of this Contract are to be, and remain the property of HOUSING AUTHORITY. CONSULTANT shall furnish HOUSING AUTHORITY, 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 HOUSING AUTHORITY; provided, however, that claims for money due or to become due to CONSULTANT from HOUSING AUTHORITY 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 HOUSING AUTHORITY.
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 HOUSING AUTHORITY and shall not release CONSULTANT from any obligations under this Contract including, 10-14Concord - Document ID: ODIwOGU2MGItMj
but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONSULTANT under this Contract. 17 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY
17.1 In performance of this Contract, CONSULTANT shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, or age. CONSULTANT will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
17.2 The provisions of subsection 17.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONSULTANT for personnel to perform any services under this Contract. HOUSING AUTHORITY 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 HOUSING AUTHORITY has any interest, financially or otherwise, in CONSULTANT’s firm.
18.2 For breach or violation of this warranty, HOUSING AUTHORITY 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 11-14Concord - Document ID: ODIwOGU2MGItMj
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 HOUSING AUTHORITY 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 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, HOUSING AUTHORITY 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
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22.1 This Contract is the complete agreement between the parties and supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally.
22.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by CONSULTANT hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.
22.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract. 13-14Concord - Document ID: ODIwOGU2MGItMj
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.
HOUSING AUTHORITY OF THE
CITY OF PALMDALE:
THE SALVATION ARMY:
Ronda Perez
Executive Director
Terry Hughes
General Counsel
ADDRESS FOR NOTICE:
THE HOUSING AUTHORITY OF
THE CITY OF PALMDALE
38500 Sierra Hwy
Palmdale, CA 93550
ADDRESS FOR NOTICE:
THE SALVATION ARMY
30840 Hawthorne Blvd
Rancho Palos Verde, CA 90275
APPROVE AS TO FORM:
William P. Curley, III
Special Counsel
ATTEST:
Roxanne Faber
Acting Authority Secretary
---------------------------------------- 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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Record of Signing
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Signed on 2023-05-11 19:38:20 GMT
Secured by Concord™
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Signing date: 5/11/2023
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Signed on 2023-05-15 18:30:08 GMT
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HOUSING AUTHORITY
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. HA 2023-002
A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF
PALMDALE REPEALING RESOLUTION HA 2017-004 AND APPROVING THE HOUSING AUTHORITY OF THE CITY OF PALMDALE’S
HOMELESS PREVENTION AND RAPID REHOUSING PROGRAM
WHEREAS, The City Council of the City of Palmdale (“City Council”) adopted the Redevelopment Plans for the Merged Redevelopment Projects (“Project Area”) on March 24, 1994 by Ordinances Nos. 1042, 1043, and 1044, which resulted in the allocation of property taxes from the Project Area to the former Community Redevelopment Agency of the City of Palmdale (“Redevelopment Agency”) for purposes of redevelopment. On May 4, 2011 the City Council adopted the Expansion Area Amendment by Ordinance No. 1418 adding additional territory to the Merged Project Area, and amending and restating the redevelopment plans into a single Amended and Restated Redevelopment Plan for the Merged Project Area (“Redevelopment Plan”). Project Area No. 2, Project Area No. 3, Project Area No. 4 and the Expansion Area collectively are referred to as the “Merged Project Area”.
WHEREAS, The Housing Authority of the City of Palmdale
(“Authority”) is implementing certain proposed uses in the Merged Project Area including low-income housing, which use will aid in carrying out the Redevelopment Plan, pursuant to its obligations under Assembly Bill No. 26 (2011-2012 First Extraordinary Session.) as amended by Assembly Bill No. 1484 (2011-2012 Regular Session) and as further amended from time to time (collectively, the “Dissolution Bills”) wherein the Authority, as the designated entity, will perform the housing functions previously performed by the former Redevelopment Agency to carry out the purposes of the Redevelopment Plan and the Dissolution Bills.
WHEREAS, The Housing Authority of the City of Palmdale
(“Authority”) has Low and Moderate Income Housing Asset Funds, has fulfilled all obligations pursuant to Sections 33413 and 33418 and wishes to continue a Homeless Prevention and Rapid Rehousing Program (HPRP) pursuant to Section 34176.1(a)(2) to provide services for individuals and families who are homeless or would be homeless but for this assistance, including the provision of short-term or medium-term rental assistance, housing relocation and stabilization services including housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homeless prevention and rapid rehousing of persons who have become homeless.
WHEREAS. Homeless Prevention and Assistance is a goal of the City’s Homeless Plan.
Resolution No. HA 2023-002
NOW THEREFORE, BE IT RESOLVED, THE HOUSING AUTHORITY OF THE
CITY OF PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. Repeals Resolution HA 2017-004.
SECTION 2. The Authority approves the Homelessness Prevention and Rapid Rehousing Program.
SECTION 3. The Authority authorizes Staff to identify a nonprofit organization to provide the Homelessness Prevention and Rapid Re-Housing services and enter into an agreement providing Homelessness Prevention and Rapid Re-Housing services to eligible recipients based on the Authority’s determined needs, procedures and guidelines, and case management.
SECTION 3 . The Authority hereby authorizes the Executive Director or their designee to implement the Authority’s Homelessness Prevention and Rapid Re- Housing Program and to execute all documents and take all actions necessary and convenient to carry out and implement the Program and to administer the Authority’s obligations, responsibilities, and duties to be performed thereunder.
SECTION 4. The Authority Secretary shall certify to the adoption of this resolution.
PASSED, APPROVED and ADOPTED this 7th day of June 2023. _________________________________
Approved as to form: Laura Bettencourt, Chair
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott,
Interim Authority Attorney Acting Authority Secretary
Resolution No. HA 2023-002
I, Rochelle Scott, Acting Authority Secretary of the Housing Authority of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the Housing Authority of the City of Palmdale at a special meeting of said Authority held on the 7th day of June by the following roll call vote:
AYES: __
NOES:_____________________________________________________________ ABSTAIN:______________________ABSENT:_____________________________ Date: ______________________ __________________________________ Rochelle Scott, Acting Authority Secretary
City Council/SA/HA/IDA/PAA/PCA/PFA - 04/05/2023 - 5pm
1 MINUTES
CITY COUNCIL/SA/HA/IDA/PAA/PCA/PFA
CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B
PALMDALE, CALIFORNIA
APRIL 5, 2023
www.cityofpalmdale.org
5:00 P.M.
1) CALL MEETING TO ORDER
Mayor Bettencourt called the meeting to order at 5:00 p.m.
2) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE
*Note: All City Council memberships are reflected in their City Council titles.
3) ROLL CALL MAYOR BETTENCOURT, MAYOR PRO TEM ALARCÓN,
COUNCILMEMBERS BISHOP, LOA, OHLSEN COMMISSIONERS FRAGA- SAENZ, DENNY
PRESENT: Laura Bettencourt, Austin Bishop, Eric Ohlsen, Richard J. Loa, Christina Fraga-Saenz, Phil Denny.
ABSENT: Andrea Alarcón.
4) PRESENTATIONS
4.1) Councilmember Ohlsen presented a Proclamation to Rosie Mainella declaring April 2023 as Child Abuse Awareness Month in the City of Palmdale. Ms.
Mainella announced that death rates are down by 73%.
4.2) Housing Coordinator Nichols presented the Proclamation declaring April 2023 as Fair Housing Month in the City of Palmdale. Ms. Chancela Al-Mansour, Executive Director of Housing Rights Center, accepted the proclamation and spoke regarding housing discrimination.
4.3) Councilmember Bishop presented a Proclamation to Karma Rescue declaring April 2023 as Prevention of Cruelty to Animals Month in the City of Palmdale.
4.4) Councilmember Loa, Councilmember Bishop and a representative from Assemblyman Carrillo’s office presented Commendations to outgoing Planning Commissioners Marcos Alvarez and Christina Fraga-Saenz.
5) WAIVER OF FULL READING OF RESOLUTION(S) and ORDINANCE(S)
A motion was made and carried unanimously to waive the full reading of the Resolution (s) and/or Ordinance(s) to be considered and voted on at this meeting.
City Council/SA/HA/IDA/PAA/PCA/PFA - 04/05/2023 - 5pm
2 6) PUBLIC COMMENTS ON CONSENT CALENDAR ITEMS ONLY
The following individuals provided public input:
Steve Angebrandt and Sandy Corrales spoke in opposition to the approval of Item
8.2 Eugene Hernandez commented regarding the lack of bus benches in Palmdale.
Mayor Bettencourt requested a list of bus stops without benches.
Marsha Furman spoke regarding the use of Measure AV funds.
Jason Zink commented regarding public comment section, and the use of Measure AV funds.
A motion was made and carried unanimously to close the Public Comments.
7) JOINT CONSENT CALENDAR CC/SA/HA/IDA/PAA/PCA/PFA
7.1) Receive and file the Annual Comprehensive Financial Reports for the Year Ended June 30, 2022, for the City of Palmdale, the Housing Authority of the City of Palmdale, the Palmdale Civic Authority, the Palmdale Financing Authority, and the Palmdale Community Foundation. (Staff reference: Director of Finance Samson)
7.2) Approve the minutes from the previous meetings.
HA - February 1, 2023
HA - February 15, 2023
CC/SA/HA/IDA/PAA/PCA/PFA - March 1, 2023
Motion: Approve all items listed on the Joint Consent Calendar.
Moved by Laura Bettencourt, seconded by Christina Fraga-Saenz.
Vote: Motion carried (6-0)
Yes: Laura Bettencourt, Austin Bishop, Eric Ohlsen, Richard J. Loa, Christina Fraga-Saenz, Phil Denny.
Absent: Andrea Alarcón.
Mayor Bettencourt adjourned the Housing Authority meeting at 5:37 pm.
Mayor Pro Tem Alarcón arrived at 5:38 p.m. and was able to participate in the remainder of the meeting.
8) CONSENT CALENDAR
8.1) Receive and file the Monthly Investment Reports for February 2023.
8.2) Ratify the approval of the Memorandum of Understanding between the City of Palmdale and the Antelope Valley Fair Authority defining the City’s benefits resulting from the City’s financial contribution to the Multi -Agency Regional Resiliency Center (MARRC).
City Council/SA/HA/IDA/PAA/PCA/PFA - 04/05/2023 - 5pm
3 Councilmember Ohlsen pulled this item for discussion.
Councilmember Bishop recused himself from this item.
City Manager Perez presented a detailed overview of this item. Dan Jacobs, Chief Executive Officer of the Antelope Valley Fair, gave a PowerPoint presentation. There was discussion among Council, staff and Mr. Jacob's regarding the timeframe on the amendment to add a seat for Palmdale and the County on the JPA, and the status of the request for and America Rescue Plan Act (ARPA) opinion on the funding for the Multi -Agency Regional Resiliency Center (MARRC). Interim City Attorney provided clarification on the timeline for an ARPA response.
Motion: Ratify the approval of the Memorandum of Understanding between the City of Palmdale and the Antelope Valley Fair defining the City's benefits resulting from the City's financial contribution to the Multi -Agency Regional Resiliency Center (MARRC) contingent upon it being approved as an expenditure under ARPA and that the State of California sign off on the City of Palmdale having a seat on the Joint Powers Authority.
Moved by Andrea Alarcón, seconded by Laura Bettencourt.
Interim City Attorney Curley asked Mr. Jacobs of the AV Fair if they were amenable to the revised motion, and if Mr. Jacobs could speak on behalf of the AV Fair. Mr. Jacobs confirmed he had the authority to speak on behalf of the AV Fair and that they were amenable to waiting while these issues were sorted out.
Vote: Motion carried (4-0)
Yes: Laura Bettencourt, Andrea Alarcón, Richard J. Loa, Eric Ohlsen.
Councilmember Bishop returned to the dais.
8.3) Summary of Annual Housing Element Progress Report.
8.4) Award Agreement with Tangram Interiors in the amount, not to exceed $325,000, for purchase and installation of furniture associated with the Code Enforcement and Public Safety relocation to the Aero Institute Building.
Mayor Bettencourt pulled this item for discussion. Director of Public Works Glidden provided c larification regarding the purchase of new furniture. There was Council and staff discussion regarding the hiring of Code Enforcement Officers and future office space.
Motion: Award Agreement with Tangram Interiors in the amount, not to exceed $325,000, for purchase and installation of furniture associated with the Code Enforcement and Public Safety relocation to the Aero Institute Building Moved by Austin Bishop, seconded by Richard J. Loa.
Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Andrea Alarcón, Austin Bishop, Richard J. Loa, Eric Ohlsen.
City Council/SA/HA/IDA/PAA/PCA/PFA - 04/05/2023 - 5pm
4 8.5) Approve additional funds of $84,323.37 for Purchase Order No. 20230423, with Servpro of Palmdale North, dba P&C Restoration Cleaning Corp. for emergency clean up services for the Chimbole Cultural Center in the amount not to exceed $304,324.
Councilmember Bishop pulled this item and recused himself.
Motion: Approve additional funds of $84,323.37 for Purchase Order No. 20230423, with Servpro of Palmdale North, dba P&C Restoration Cleaning Corp. for emergency clean up services for the Chimbole Cultural Center in the amount not to exceed $304,324.
Moved by Richard J. Loa, seconded by Laura Bettencourt.
Vote: Motion carried (4-0)
Yes: Laura Bettencourt, Andrea Alarcón, Eric Ohlsen, Richard J. Loa.
Councilmember Bishop returned to the dais.
8.6) Approve proposal to amend the 2019 -2020 Action Plan to reprogram Community Development Block Grant COVID (CDBG -CV) funds, review and approve budget adjustments to SAVES CDBG and SAVES CDBG-CV budgets, and decrease SAVES CDBG budget.
Mayor Pro Tem Alarcón pulled this item for discussion. Management Analyst I Bartlett provided a brief overview of this item. There was Council and staff discussion regarding the Mortgage Assistance Program, COVID relief funds, outreach to the public, and justification for reprogramming of funds.
Motion: Approve proposal to amend the 2019 -2020 Action Plan to reprogram Community Development Block Grant COVID (CDBG -CV) funds, review and approve budget adjustments to SAVES CDBG and SAVES CDBG-CV budgets, and decrease SAVES CDBG budget.
Moved by Andrea Alarcón, seconded by Laura Bettencourt.
Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Andrea Alarcón, Austin Bishop, Richard J. Loa, Eric Ohlsen.
8.7) Award construction agreement with SOV Security, for PN 872, Citywide Security Infrastructure Project, at the City facilities, including City Hall, Palmdale Transportation Center, Palmdale Playhouse, and the Maintenance Yard, in the amount not to exceed $973,833 and determine this project is to be exempt from CEQA.
Mayor Bettencourt pulled this item for discussion. Director of Public Works Glidden provided a brief staff report. There was discussion regarding the number of crimes and selection of locations f or Phase 1. Information Technology Manager Thompson stated G4S assessed the locations and set the priorities for security. City Manager Perez stated the sites were identified based on the traffic and the amount of children that attend the Playhouse performances. There was City Council/SA/HA/IDA/PAA/PCA/PFA - 04/05/2023 - 5pm
5 further discussion among Council and staff regarding security systems, public safety, change order to contract, fast- tracking of Phase 2, and timeline for Phase
1. Motion: Award construction agreement with SOV Security, for PN 872, Citywide Security Infrastructure Project, at the City facilities, including City Hall, Palmdale Transportation Center, Palmdale Playhouse, and the Maintenance Yard, in the amount not to exceed $973,833
Moved by Austin Bishop, seconded by Richard J. Loa.
Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Andrea Alarcón, Austin Bishop, Richard J. Loa, Eric Ohlsen.
8.8) Adopt Resolution No. CC 2023-023, a Resolution of the City Council of the City of Palmdale authorizing the execution of a Surety Bond to meet the financial security requirement for energy for Palmdale’s Independent Choice.
Motion: Approve all items listed on the Consent Calendar with the exception of Items
8.2, 8.4, 8.5, 8.6, and 8.7.
Moved by Laura Bettencourt, seconded by Austin Bishop.
Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Andrea Alarcón, Austin Bishop, Richard J. Loa, Eric Ohlsen,
9) APPOINTMENTS
9.1) City Council Nomination and Appointment of seven (7) Members and one (1) Alternate to the Human Rights Advisory Committee.
Acting City Clerk Scott provided the process for selecting the members of the Human Right Advisory Committee.
Motion: Appoint the following individuals to the Human Rights Advisory Committee: Marcos Alvarez, Sky Jung, Margaret Hicks, Rudolpho Perez II, Covel Jenkins, Xavier Flores, Jovan Hicks, and Elizabeth Henriquez (Alternate).
Moved by Richard J. Loa, seconded by Andrea Alarcón.
Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Andrea Alarcón, Austin Bishop, Richard J. Loa, Eric Ohlsen.
10) NEW BUSINESS
10.1) Discussion and possible action regarding Animal Care and Control Operations.
City Manager Perez provided a brief overview of this item.
Mayor Bettencourt called for Public Comments.
The following individuals provided public inputs:
City Council/SA/HA/IDA/PAA/PCA/PFA - 04/05/2023 - 5pm
6 Jason Zink encouraged the City to increase the budget for Animal Care and Control.
Rosie Mainella commented regarding showcasing pets.
There was discussion among Council and staff regarding cost of services, showcasing pets, reduced hours at the shelter, kill rates, preventative measures, reduced services, non-profit options, outreach, feasibility study, and increase of operating hours.
City Manager Perez requested thirty (30) days to come back with options to facilitate more of a rescue approach to augment Animal Care and Control services. Councilmember Bishop suggested pulling the four -hundred thousand allocated in the mid-year budget. City Manager Perez stated if the bill is not paid, City services will cease. Mayor Pro Tem Alarcón directed Interim City Attorney Curley to take a look at who is legally responsible for the provision of the specified services and scope of work in the County contract.
11) PUBLIC COMMENTS ON NON-AGENDA ITEMS
The following indviduals provided public input
Corbin Ingram asked about the status of the local airport. City Manager Perez provided an update on the local airport.
Peter Denning, Cub Scout, asked the Councilmembers their profession.
Eugene Hernandez commented regarding celebrating the Latino community.
Jason Zink spoke regarding crime, film, art and technology academy, free basic cable and internet for senior citizens, American flags, addition of community groups added to website, water, animal control, and the emergency center.
Marsha Furman commented regarding food trucks at events and ADA compliance, Measure AV information on the website, and Joint Recreation Center.
Steve Hill spoke regarding the settlement agreement with the Department of Justice and law enforcement.
A motion was made and carried unanimously to close Public Comments.
12) INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON
THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT
PUBLIC EXPENSE
12.1) COMMITTEE MEMBERSHIPS.
• ANTELOPE VALLEY AIR QUALITY MANAGEMENT DISTRICT
• ANTELOPE VALLEY TRANSIT AUTHORITY
• CALIFORNIA CONTRACT CITIES ASSOCIATION
• CITY OF PALMDALE AUDIT COMMITTEE
• CITY OF PALMDALE INVESTMENT OVERSIGHT COMMITTEE
• HIGH DESERT CORRIDOR JOINT POWERS AUTHORITY
• LEAGUE OF CALIFORNIA CITIES
City Council/SA/HA/IDA/PAA/PCA/PFA - 04/05/2023 - 5pm
7 • LOS ANGELES COUNTY SANITATION DISTRICT
• NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION
• PALMDALE RECYCLED WATER AUTHORITY
• UNITED STATES/MEXICO SISTER CITIES ASSOCIATION
• CALIFORNIA STATE PRISON – LOS ANGELES COUNTY, CITIZENS
ADVISORY COMMITTEE
Councilmember Loa attended/reported the following:
• Cesar Chavez event on March 25th at Domenic Massari Park • Sheriff's Boosters meeting
• Spanish Radio program on March 1st
• Hispanic Chamber 26th Annual Installation Gala on March 3rd • AV Rural Museum on March 4th;
• Meeting with Executive Directors of the Antelope Valley Fair and Supervisor Barger regarding implementation of a regional facility
• Ribbon cutting at the AV Rural Museum
• Zoning Ordinance meeting with developers regarding drive thru fast facilities • County Sanitation District meeting
• Public Safety Forum at Legacy Commons; and
• Briefing on vending Ordinance; reported on meetings with legislators regarding the resiliency center
Councilmember Bishop attended/reported the following:
• Palmdale Community Clean-up day on March 25th
• AVAQMD grant money for businesses
• Palmdale Recycled Water Authority (PRWA) is moving efforts from recycled water to potable water
• Home for Families Builders Ball on March 10th
• Council retreat on March 10th
• AV Rural Museum
• Attended Nothing Bundt Cakes grand opening.
Councilmember Ohlsen reported/attended the following:
• Participated in the Read Across America event
• Attended Vets for Veterans support dinner and Welcome Home Veteran Ceremony
• Attended the Cesar Chavez Day event.
Mayor Pro Tem Alarcón reported:
• Meetings were held with California U.S. Senators, and Representatives to discuss appropriations for an Emergency Operation Center and transportation projects.
12.2) MEETINGS ATTENDED AT PUBLIC EXPENSE
13) CITY COUNCIL ANNOUNCEMENTS AND REQUESTS FOR NEW AGENDA ITEMS
None.
City Council/SA/HA/IDA/PAA/PCA/PFA - 04/05/2023 - 5pm
8 14) CITY MANAGER’S REPORT
City Manager Perez reported/announced the following:
• Nothing Bundt Cakes donated $1400 to SAVES.
• Kicking off the Fentanyl Awareness Campaign in the community • Presented Council with photos of the utility raps
• Announced the promotion of Sara Gallagher and Nardy Lopez to Deputy City Manager
15) PUBLIC COMMENTS ON CLOSED SESSION ITEMS
Jason Zink commented regarding acquisition of property, lawsuits, real estate signs, and Measure AV funds.
There was further discussion among Council regarding real estate signs.
16) PRESENTATION BY CITY ATTORNEY
Interim City Attorney Curley spoke regarding public comments that were made.
Interim City Attorney confirmed items would be heard as listed and stated the address for Item 16.6 should be 838 E. Palmdale Boulevard.
16.1) 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).
16.2) CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Ricci v. City of Palmdale, et al.
Los Angeles County Superior Court Case No. 22STCV01269
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).
16.3) 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).
16.4) 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).
16.5) PUBLIC EMPLOYMENT
Title: City Attorney
City Council/SA/HA/IDA/PAA/PCA/PFA - 04/05/2023 - 5pm
9 16.6) CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 828 E. Palmdale Blvd. (APN: 3009-015-001)
Agency Negotiator for the City: Ronda Perez, City Manager and Mike Miller, Assistant City Manager
Negotiating parties: Pat Hunt
Under negotiations is both price and terms
17) ANNOUNCEMENT BY CITY ATTORNEY
Interim City Attorney announced Council was updated on all items and there were no reportable actions.
18) ADJOURN
Mayor Bettencourt adjourned the meeting at 9:30 p.m., in honor of the victims in Nashville, Tennessee, to April 19, 2023 at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
PASSED, APPROVED, and ADOPTED this 7th day of June 2023.
Laura Bettencourt, Mayor
ATTEST:
Rochelle Scott, Acting City Clerk
CC/SA/HA/IDA/PAA/PCA/PFA - 05/17/2023 – 5pm
1 MINUTES
CITY COUNCIL/SA/HA/IDA/PAA/PCA/PFA
CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B
PALMDALE, CALIFORNIA
MAY 17, 2023
www.cityofpalmdale.org
1) CALL MEETING TO ORDER
Interim City Attorney Curley made an announcement regarding public comments.
Mayor Bettencourt called the meeting to order at 5:03 p.m.
2) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE
*Note: All City Council memberships are reflected in their City Council titles.
3) ROLL CALL MAYOR BETTENCOURT, MAYOR PRO TEM ALARCÓN,
COUNCILMEMBERS BISHOP, LOA, OHLSEN COMMISSIONERS FRAGA-
SAENZ, DENNY
PRESENT: Laura Bettencourt, Andrea Alarcón, Austin Bishop, Richard J. Loa, Eric Ohlsen, Christina Fraga-Saenz, Phil Denny.
ABSENT: None.
4) WAIVER OF FULL READING OF RESOLUTION(S) and ORDINANCE(S)
A motion was made and carried unanimously to move to waive the full reading of the Resolution (s) and/or Ordinance(s) to be considered and voted on at this meeting.
PUBLIC COMMENTS
The following individuals provided public comments: Diane, Rich Gallego, Michelle B, and Marsha spoke regarding the Council code of conduct; Jessica Pavia and Martha Pavia commented regarding a property matter; Jason Zink spoke on several topics; Chuck Mur phy spoke regarding his previous comments to Council; Eugene Hernandez spoke regarding Dolores Huerta food drive; and Steve Hill commented regarding the Sheriff's Department.
CC/SA/HA/IDA/PAA/PCA/PFA - 05/17/2023 – 5pm
2 5) CONSENT CALENDAR
5.1) Approve the renewal of the General Services Agreement between the City of Palmdale and the County of Los Angeles.
5.2) Approve First Amendment to provide temporary electrical and general services for special events with Henisey Electric (A -6998) to increase the total amount of the agreement by $95,000 not to exceed the sum of $335,000 and extend contract term.
5.3) Approve supplemental agreement No. 1 with Sully Miller Contracting Co., for PN 698, Avenue R Complete Streets Project, in the amount of $889,797.42.
Councilmember Loa pulled this item for discussion. Director of Public Works Glidden presented the staff report. Discussion ensued regarding the relocation of SCE poles and the project costs.
Motion: Approve supplemental agreement No. 1 with Sully Miller Contracting Co., for PN 698, Avenue R Complete Streets Project, in the amount of $889,797.42 with a 160-day extension.
Moved by Austin Bishop, seconded by Andrea Alarcón.
Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Andrea Alarcón, Aust in Bishop, Richard J. Loa, Eric Ohlsen.
5.4) Award construction agreement with Landscape Structures Inc. dba: RecWest Outdoor Products, for PN 881, Palmdale Oasis Park Playground Project, in the amount of $646,624.78.
5.5) Award construction agreement with PlayCore Wisconsin, Inc. dba Game Time for PN 883, Desert Sands Park Playground Project, in the amount of $776,875.88.
5.6) Adopt Resolution No. CC 2023 -032, a Resolution of the City Council of the City of Palmdale adopting the Joint Resolution of the Board of Supervisors of the County of Los Angeles acting in behalf of the Los Angeles County General Fund, the Los Angeles County Consolidated Fire Protection District, the Board of Directors of the County Sanitation District No. 14 of Los Angeles County, and the governing bodies of the Antelope Valley Resource Conservation District, City of Palmdale, Antelope Valley -East Kern Wate r Agency, Antelope Valley Cemetery District, and the Antelope Valley Mosquito and Vector Control District approving and accepting negotiated exchange of property tax revenues resulting from Annexation No. 14 -438 to County Sanitation District No. 14.
5.7) Adopt Resolution No. CC 2023 -033, a Resolution of the City Council of the City of Palmdale adopting the Joint Resolution of the Board of Supervisors of the County of Los Angeles acting in behalf of the Los Angeles County General Fund and Los Angeles County Consolidated Fire Protection District, the Board of Directors of the County Sanitation District No. 20 of Los Angeles County, and governing bodies of the Antelope Valley Cemetery District, Antelope CC/SA/HA/IDA/PAA/PCA/PFA - 05/17/2023 – 5pm
3 Valley Mosquito and Vector Control District, Antelope Valley Resource Conservation District, City of Palmdale, and the Antelope Valley - East Kern Water Agency approving and accepting negotiated exchange of property tax revenues resulting from Annexation No. 20 -103 to County Sanitation District No. 20.
5.8) Approve the minutes from the previous meeting.
CC/SA - May 3, 2023
Motion: Approve all items listed on the Consent Calendar with the exception of Item 5.3 Moved by Andrea Alarcón, seconded by Austin Bishop.
Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Andrea Alarcón, Austin Bishop, Richard J. Loa, Eric Ohlsen.
6) NEW BUSINESS
6.1) Adopt Resolution No. CC 2023-038, a Resolution of the City Council of the City of Palmdale, CA, adopting the Guidelines and Bylaws for the Citizens Advisory Committee (Measure AV Oversight Committee); pursuant to Ordinance No. 1549; section 3.21.160.
Interim City Attorney Curley provided a brief overview of this item. Discussion ensued regarding the purpose of Measure AV funds.
Mayor Bettencourt called for public comments.
Jason Zink and Steve Angebrandt commented regarding the number of alternates.
Mayor Bettencourt closed the public comments.
Motion: Adopt Resolution No. CC 2023-038
Moved by Andrea Alarcón, seconded by Austin Bishop.
Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Andrea Alarcón, Austin Bishop, Richard J. Loa, Eric Ohlsen.
7) APPOINTMENTS
7.1) City Council Nomination and Appointment of seven (7) Members and two (2) Alternates to the Measure AV Oversight Committee.
Council discussion ensued regarding the current Measure AV Committee Members and their institutional knowledg e. Discussion ensued regarding qualifications for the members.
Motion: Appoint: Cynthia Garcia, Rick Carr, Charles Murphy, Judy Vacarro-Fry, Steven Angebrandt, Marina Hickerson, Barbara Smart
Moved by Laura Bettencourt, seconded by Richard J. Loa.
CC/SA/HA/IDA/PAA/PCA/PFA - 05/17/2023 – 5pm
4 Vote: Motion carried (4-1)
Yes: Laura Bettencourt, Austin Bishop, Richard J. Loa, Eric Ohlsen.
No: Andrea Alarcón.
Motion: Appoint Alternates: Diana Love, Samuel Roman
Moved by Andrea Alarcón, seconded by Austin Bishop.
Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Andrea Alarcón, Austin Bishop, Richard J. Loa, Eric Ohlsen.
8) JOINT NEW BUSINESS CC/SA/HA/IDA/PAA/PCA/PFA
8.1) Presentation of the City of Palmdale Proposed Budget for Fiscal Year 2023-
24. City Manager Perez and Director of Finance Samson provided a detailed overview of the FY 2023-2024 budget.
There were Council questions and discussion regarding health and wel lness, allocation of restricted funds, Home -Sharing Program, general fund reserves, development projects, license fees, projections for community programs, Measure AV reserves, and funds for services to disproportionately impacted communities.
The followi ng individuals provided public input: Jason Zink spoke regarding economic development in the City; Xavier Flores requested details on the services to disproportionately impacted communities; and Rosie Mainella commented regarding allocating funds to youth activities and educational resources.
Mayor Bettencourt closed the Public Comments.
9) CITY COUNCIL ANNOUNCEMENTS AND REQUESTS FOR NEW AGENDA ITEMS
None.
10) CITY MANAGER’S REPORT
City Manager Perez provided the following information: A couple of bus benches will be installed in FY 2023/2024; the Homes 4 Families event was held last weekend; the City is currently in the midst of G626 Action Planning, Emergency Operation Center development program; Yellen Park groundbreaking will be held on June 2nd; playgrounds will be installed at Oasis Park & Desert Sands Park; and Summer Concert tickets are on sale.
CC/SA/HA/IDA/PAA/PCA/PFA - 05/17/2023 – 5pm
5 11) PRESENTATION BY CITY ATTORNEY
Mayor Bettencourt called for Public Comments.
Jason Zink commented regarding lawsuits.
Interim City Attorney Curley confirmed the Closed Session items would be heard as listed.
11.1) 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).
11.2) 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).
11.3) CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATIONRicky 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).
11.4) 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).
11.5) CONFERENCE WITH LEGAL COUNSEL-EXISTING LITIGATION Gerald Lynn Dolen and Roberta Dora Dolen v. City of Palmdale et al.
Los Angeles County Superior Court Case No. 21AVCV00377
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).
11.6) PUBLIC EMPLOYMENT
Title: City Attorney
12) ANNOUNCEMENT BY CITY ATTORNEY
Interim City Attorney Curley announced Council was provided an update on Items
11.1 through 11.5 and there were no reportable actions.
City Manager Perez announced Council was provided an update on Item 11.6 and there was no reportable action.
CC/SA/HA/IDA/PAA/PCA/PFA - 05/17/2023 – 5pm
6 13) ADJOURN
Mayor Pro Tem Alarcón adjourned the meeting at 8:15 p.m., in memory of the Honorable Gloria Molina, to June 7, 2023, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
PASSED, APPROVED, and ADOPTED this 7th day of June 2023.
Laura Bettencourt, Mayor
ATTEST:
Rochelle Scott, Acting City Clerk
City Council Staff Report
DATE: JUNE 7, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE MONTHLY INVESTMENT ACTIVITY REPORTS FOR APRIL 2023
ISSUE
Receive and file the monthly investment activity reports for April 2023.
RECOMMENDATION
Staff recommends that the City Council receive and file the monthly investment activity reports for City of Palmdale and Successor Agency for April 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 reports provide a synopsis of the investment activity for the City of Palmdale and Successor Agency. The reports provide information on assets, allocations, average maturities, yields, and book valuations.
The interest rates presented are the mo st 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 Reports on Investments
June 7, 2023
DISCUSSION
Compliance with Investment Policy
For April, the invested portfolio amount for the City of Palmdale totaled $290,303,564, a decrease of $9,210,939 from the previous month, and an increase of $31,176,589 in comparison to last year. The monthly decrease is the result of maturity of a corporate note and a withdrawal from LAIF to fund operations and debt service.
The par value of Successor Agency’s portfolio as of April was $10,203,614. The balance decreased by $760,717 from 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 April is $115,009,432. A decrease of $4,225,296 compared to the prior month, due to a withdraw to cover monthly operational expenditures, including debt service, for the City.
Successor Agency LAIF balance at the end of April was $4,488,812. An increase of $30,048 compared to the prior month, due to earned interest.
CAMP’s balance for City of Palmdale at the end of April was $257,070 compared to March balance of $256,024. 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 April 30, 2023, the interest rates for LAIF and CAMP investments Report to Mayor and City Council
Re: Monthly Reports on Investments
June 7, 2023
were at 2.870 percent and 4.97 percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of March were at 2.831 percent and 4.8 percent. Both rates have slightly increased within this month. This time last year, LAIF and CAMP rates were at 0.523 percent and 0.50, respectively.
The chart above shows both the Local Agency Investment Fund and California Asset Management Program’s average monthly yields beginning July 2022 through April 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 reports include all investments held by both entities and current book values as of April 30, 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
1.09%
1.28%
1.51%
1.77%
2.01%
2.17% 2.43% 2.62% 2.83% 2.87%
1.64% 2.30% 2.61% 3.14% 3.90%
4.30% 4.53% 4.73% 4.80% 4.97%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Jul Aug Q1 Sep Oct Nov Q2 Dec Jan Feb Q3 Mar Apr
Pooled Investments Monthly Yields
LAIF CAMP
Report to Mayor and City Council
Re: Monthly Reports on Investments
June 7, 2023
monitor any financial impact due to the Coronavirus pandemic and the current economic conditions and the impact on interest rates.
Attached are summaries of the investments on the City of Palmdale and Successor Agency’s books as of April 30, 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, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney
ATTACHMENTS
1. Monthly Reports on City of Palmdale Investments
2. Monthly Report on Successor Agency Investments
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
April 30 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 Note 1/3/2023 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 Unsecured 0.80 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
April 30 2023
CORPORATE NOTES
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 2,075,000.00$ 2,075,000.00$ 2,039,686.86$
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
09-01-84 n/a CITY ACCOUNT 98-19-620 0.78 42,829,922.50 42,829,922.50 42,829,922.50 06/23/08 n/a PCA ACCOUNT 40-19-060 0.78 40,876,573.72 40,876,573.72 40,876,573.72 n/a ARPA ACCOUNT 19-19-004 0.78 31,302,935.84 31,302,935.84 31,302,935.84 TOTAL LAIF ACCOUNTS 115,009,432.06$ 115,009,432.06$ 115,009,432.06$
CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM
6080-01 n/a CITY ACCOUNT 6080-01 0.30 257,070.82 257,070.82 257,070.82 TOTAL CAMP ACCOUNTS 257,070.82$ 257,070.82$ 257,070.82$
UBS FINANCIAL SERVICES
n/a n/a CITY ACCOUNT 0.00 10,624.80 10,624.80 10,624.80 TOTAL UBS FINANCIAL SERVICES ACCOUNTS 10,624.80$ 10,624.80$ 10,624.80$ TOTAL CITY INVESTMENTS 298,507,127.68$ 298,728,101.94$ 290,303,564.15$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
April 30 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 12,679.97
TOTAL LIBRARY INVESTMENTS 12,679.97$
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 0.35 109.14
05-10-95 n/a IMPROVEMENT 95421222 0.10 158,616.02
City Held Cash (Fund 736-114000) ($255,912.67)
TOTAL SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1 158,725.16$
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 2,646,734.14
04-06-95 n/a BOND 95420887 0.15 0.15
City Held Cash (Fund 738-114000) ($1,000,675.82)
TOTAL RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1 2,646,734.29$
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 0.00 722,953.75
08-01-19 n/a SP TAX - REFUNDING BOND 242969004 0.01 15,150.05 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) $892,871.96
TOTAL ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1 738,124.08$
LIBRARY INVESTMENTS
FISCAL AGENT CASH
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
April 30 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 82,212.89
n/a RESERVE FUND 251009001 0.01 643,268.38
City Held Cash
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021725,481.27$
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 59,979.30
11-08-06 n/a ADM EXP 106844002 0.01 1,632.19
11-08-06 n/a RESERVE FUND 106844003 0.01 96,673.73
City Held Cash (Fund 739-114000) $70,972.70
TOTAL 2006-1 Godde Hill Estate Sewer Improvements LOIB 158,285.22$
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
April 30 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 0.00 122.92
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 $8.7M LEASE REVENUE BONDS 122.92$
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 2,979,500.00
TOTAL 2013 HA TRANSIT VILLAGE HOMES ESCROW 2,979,500.00$ 2015 HA DEBT SERVICE RESERVE
Fiscal Agent: Bank of America
11-19-15 n/a DEBT SVC RESERVE 1257964992 0.08 39,490.92 TOTAL 2015 HA DEBT SERVICE RESERVE 39,490.92$
PARS RESTRICTED CASH FOR PENSION STABILIZATION TRUST FUND 05-23-18 n/a CITY 104790895775 Public Agency Retirement Services 2.60 6,460,447.93 TOTAL PARS PENSION TRUST FUND 6,460,447.93$
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 0.00 170,429.01
09-03-15 n/a INTEREST ACCT 277067001 0.01 14.01
09-03-15 n/a BOND RESERVE 277067003 0.00 281,020.80
09-03-15 n/a REPAIR & REPLACE FUND 277067004 0.00 1,202,100.12 TOTAL 2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS 1,653,563.94$
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 0.00 225,393.76
04-05-17 n/a PRINCIPAL ACCT 271128002 n/a 0.00
TOTAL 2017 PFA $17.4M LEASE REVENUE BONDS 225,393.76$
Total City Held Cash (XXX-114000) $531,260.73
GRAND TOTAL - FISCAL AGENT CASH 15,060,388.22$
FISCAL AGENT CASH
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
April 30 2023
Cash on Hand 20,751,875 $
Pooled Cash Investments
City: 284,582,018 $
Insur Fund: $5,721,546 290,303,564 $
Library Investments $12,680
Subtotal 311,068,119 $
City/AD/CFD/PCA/PFA/HA
Fiscal Agent Cash 15,060,388 $ *
Grand total 326,128,507 $
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 April 30, 2023.
S:\Cash and Investment\Investment\Investment Reports\22-23\10 Apr 2023\[09 Mar 2023 Investment Report City.xls]LAIF_CAMP Transactions
SUMMARY OF CASH AND INVESTMENTS
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
April 30, 2023
CITY OF PALMDALE
POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF), CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP), & UBS FINANCIAL SERVICES April 30, 2023
TRANSACTION INTEREST
DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
CITY ACCOUNT 98-19-620
Beginning Balance 47,529,033.02 $
04/13/23 (5,000,000.00) $
04/14/23 300,889.48 $
Subtotal - $ (5,000,000.00)$ 300,889.48 $ 42,829,922.50 $ PCA ACCOUNT 40-19-060
Beginning Balance 40,617,787.13 $
04/14/23 258,786.59 $
Subtotal - $ - $ 258,786.59$ 40,876,573.72 $ LIBRARY ACCOUNT 16-19-012
Beginning Balance 12,595.08 $
04/14/23 84.89 $
Subtotal - $ - $ 84.89 $ 12,679.97 $ ARPA ACCOUNT 19-19-004
Beginning Balance 31,087,908.78 $
04/14/23 215,027.06 $
Subtotal - $ - $ 215,027.06$ 31,302,935.84 $
CAMP - CALIFORNIA ASSET MANAGEMENT PROGRAM
Beginning Balance 256,024.07 $
04/28/23 - $ 1,046.75$ Subtotal - $ - $ 1,046.75$ 257,070.82 $ UBS Financial Services
Beginning Balance 46,548.23 $
04/30/23 76.57 $
04/30/23 (36,000.00) $
Subtotal - $ (36,000.00)$ 76.57 $ 10,624.80 $ Total - $ (5,036,000.00)$ 775,911.34 $ 115,289,807.65 $ 115,032,736.83$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
APRIL 30, 2023
TN= US Treasury C = Call
FP= Federal Paper M = Maturity
CD= Certificate of Deposit CB = Corporate Bond
FACE
PURCHASE MATURITY REDEMPTION VALUE INTEREST NET INVESTED GAIN/
ISSUER DATE DATE DATE REDEEMED RECEIVED FUNDS AMOUNT (LOSS) 30231GBL5 Exxon Mobil Corp 06-10-20 04-15-23 04-15-23 5,000,000.00 39,275.00$ 5,039,275.00$ 4,950,765.95 $49,234.05 -$ $0.00
-$ $0.00
5,000,000.00$ 39,275.00 $ 5,039,275.00$ 4,950,765.95$ $49,234.05 Total Number of Transactions: 1
CITY OF PALMDALE
POOLED CASH - INVESTMENTS MATURED OR CALLED
April 30, 2023
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
April 30, 2023
TN = US Treasury
FP = Federal Paper
CD = Certificate of Deposit
CN = Corporate Notes ACCRUED
PURCHASE MATURITY FACE PREMIUM / PURCHASE INTEREST NET Yield
ISSUER DATE DATE VALUE (DISCOUNT) PRICE PURCHASED PURCHASE -$ - $
-$ - $
-$ - $
-$ - $
-$
-$ - $ - $ - $ - $ Total Number of Transactions: 0
CITY OF PALMDALE
POOLED CASH - INVESTMENTS PURCHASED
April 30, 2023
SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
April 30, 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 4,488,812.40
TOTAL LAIF ACCOUNTS 4,488,812.40 $
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 2.54 536,305.71
08-20-02 n/a INTEREST ACCT 94460701 0.04 4,446.08
08-20-02 n/a PRINCIPAL ACCT 94460702 0.04 250.20
TOTAL CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) 541,001.99 $
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 $541,004
SUMMARY OF CASH AND INVESTMENTS
Cash on Hand 5,173,798 $ 5,167,637.86$
$0
Pooled Cash Investments 4,488,812 $ $6,160
5,173,798.10$
Successor Agency Fiscal Agent Cash 541,004 $ *
Grand total 10,203,614 $
* The interest rate quoted on LAIF and Fiscal Agent/Trustee accounts is the most current rate available.
LAIF interest rates are as of April 30, 2023.
S:\Cash and Investment\Investment\Investment Reports\22-23\10 Apr 2023\[09 Mar 2023 Successor Investment Report.xls]LAIF Transactions
SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF)
April 30, 2023
TRANSACTION INTEREST
DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
SA ACCOUNT 65-19-035
Beginning Balance 4,458,763.64 $
04/14/23 30,048.76 $
Subtotal - $ - $ 30,048.76$ 4,488,812.40 $ City Council Staff Report
DATE: JUNE 7, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE ANNUAL REPORT ON DEVELOPMENT IMPACT FEES FOR FISCAL YEAR ENDED JUNE 30, 202 2 AND
ADOPT FINDINGS TO COMMIT FUNDS HELD IN THE LITTLEROCK
DRAINAGE FEE FUND, FIRE FACILITIES FUND, AND THE SEWER
UPGRADE FEE FUND.
ISSUE
Receive and file the Annual Report on Development Impact Fees for Fiscal Year Ended June 30, 2022 and adopt findings to commit funds held in the Littlerock Drainage Fee Fund, Fire Facilities Fee Fund, and the Sewer Upgrade Fee Fund.
RECOMMENDATION
Staff recommends that the Ci ty Council accept the Annual Report on Development Impact Fees for Fiscal Year Ended June 30, 202 2 and adopt findings to commit funds held in the Pearland Drainage Fee Fund, Littlerock Drainage Fee Fund, Fire Facilities Fee Fund, and the Sewer Upgrade Fee Fund. Drainage Funds held and totaling $50,662 in the Littlerock Drainage Fee Fund are to be held for projects noted in the City of Palmdale Master Plan of Drainage dated August 1996. Funds held and totaling $3,780,375 in the Fire Facilities Fee Fund will be held for the benefit of the Consolidated Fire Protection District of the Los Angeles County District to benefit area three within the City of Palmdale for future fire station projects. Funds held and totaling $440,146 in the Sewer Upgrade Fee Fund will be held for projects noted in the Ten-Year Capital Improvement Plan.
BACKGROUND
The City of Palmdale is authorized under state law to require development applicants to contribute fees towards the cost of off-site public improvements which are needed as a result of the new development. The fees are charged based upon a pro -rata share of the cost of the new improvements. This report is issued annually at the conclusion of the City’s financial audit for the prior fiscal year. The Fiscal Year 2022 audit concluded March 30, 2023, at which point this report was developed to provide information related to the status of these funds for the year ended June 30, 2022.
Report to Mayor and City Council
Re: Development Impact Fee Report for Year Ended June 30, 2022 June 7, 2023
State law requires the City to provide a public notice that specifies that this report is available for inspection not less than 15 days before the public meeting. The public notice was issued and the report was available for inspection on May 23, 2023.
Government Code Section 66001 (AB1600) requires the City to review on an annual basis the status of collected development impact and mitigation fees. In the event that any fees remain unexpended and unencumbered for more than five years, the City may retain the fees if the City Council adopts certain findings which substantiate the need for retaining such funds. In the event that the findings are not adopted to support the retention of the funds, the unexpended fees must be returned to the current owner(s) of the subject property.
DISCUSSION
The attached schedule provides a breakdown of accounts for the year ending June 30, 2022. All the accounts presently maintain positive cash positions and were allocated interest earnings on a pro-rata basis as prescribed by state law. The statute also specifies that the report include the following:
•The amount of each development fee.
•The beginning and ending fund balance for each development fee account. •The amount of funds expended on each project for the year just ended. •The amount of developer fees collected and interest earned for the year just ended. •A description of each interfund transfer or loan made from each development fee account.
•If applicable, the amount of refunds made pursuant to the Government Code Section 66001.
As of June 30, 2022, the Littlerock Drainage Fee Fund, Fire Facilities Fund, and the Sewer Upgrade Fee Fund hold funds that are five years old. Based on this report, $50,662 of the $53,876 balance in the Littlerock Drainage Fee Fund, $3,780,375 of the $8,088,817 in the Fire Facilities Fee Fund, and $440,146 of the $481,420 balance in the Sewer Upgrade Fee Fund have been held for longer than five years. At this time, the City Council can make a finding that these uncommitted funds have a specified purpose and that there is a reasonable relationship between the fee and the purpose for which it was charged. Unless this finding is made, the collected fees will need to be refunded to the current record owner or owners of lots or units of the development project.
The funds being accumulated in the Littlerock Drainage Fund are to be used for several large first priority drainage projects. The funds being accumulated in the Fire Facilities Fee Fund are to be used for fire facility projects. The funds being Report to Mayor and City Council
Re: Development Impact Fee Report for Year Ended June 30, 2022 June 7, 2023
accumulated in the Sewer Upgrade Fund are to be used for sewer upgrade projects.
Presently, there are not funds available to commence any of the projects.
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.
Prepared by: Gohar Avetisyan, Financial Analyst
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
ATTACHMENTS
1. Annual Report on Development Impact Fees for Year Ended June 30, 2022 eidebailly.com
Ci
ty of Palmdale
Annual Report
On
Development Impact Fees
For
Fiscal Year Ended
June 30, 2022
Prepared by
Eide Bailly, LLP
Rancho Cucamonga, California
What inspires you, inspires us. | eidebailly.com
10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE May 3, 2023
Janelle Samson, Director of Finance
City of Palmdale
38300 N. Sierra Highway
Palmdale, CA 93550
Re: Acceptance of Annual Report on Development Impact Fees and Adopt Findings to Commit Funds Held in the Littlerock Drainage Fee Fund, Fire Facilities Fee Fund and the Sewer Upgrade Fee Fund
Dear Ms. Samson:
The firm of Eide Bailly LLP, recently completed an analysis of the City’s accounting records for completing the City’s annual report on development impact fees. This correspondence and accompanying schedules comprises the annual report and should be made available for public inspection.
The City of Palmdale is authorized under state law to require development applicants to contribute fees towards the cost of off-site public improvements which are needed as a result of the new development.
The fees are charged based upon a pro-rata share of the cost of the new improvements. This report provides information related to the status of these funds for the year ended June 30, 2022. State law requires the City to provide a public notice that specifies that this report is available for inspection.
Government Code Section 66001 (AB1600) requires the City to review on an annual basis the status of collected development impact and mitigation fees. In the event that any fees remain unexpended and unencumbered for more than five years, the City may retain the fees if the City Council adopts certain findings which substantiate the need for retaining such funds. In the event that the findings are not adopted to support the retention of the funds, the unexpended fees must be returned to the current owner(s) of the subject property.
The attached schedule provides a breakdown of accounts for the year ending June 30, 2022. All the accounts maintaining positive cash positions were allocated interest earnings on a pro-rata basis as prescribed by state law. The statues also specify that the report include the following:
• The amount of each development fee
• The beginning and ending fund balance for each development fee account • The amount of funds expended on each project for the year just ended • The amount of developer fees collected and interest earned for the year just ended • A description of each interfund transfer or loan made from each development fee account • If applicable, the amount of refunds made pursuant to the Government Code Section 66001 As of June 30, 2022, the following accounts holds funds that are over five years old:
Littlerock Drainage Fee Fund $ 50,662
Fire Facilities Fee Fund 3,780,375
Sewer Upgrade Fee Fund 440,146
At this time, the City Council can make a finding that these uncommitted funds have a specified purpose and that there is a reasonable relationship between the fee and the purpose for which it was charged.
Unless this finding is made, the collected fees will need to be refunded to the current record owner or owners of lots or units of the development project.
The funds being accumulated in the Littlerock Drainage Fee Fund are to be used for large drainage projects. Funds being accumulated in the Fire Facilities Fee Fund are being accumulated for fire facility projects and the funds being accumulated in the Sewer Upgrade Fee Fund are to be used for large sewer upgrade projects. Presently, there are not funds available to commence the projects. City staff recommends that the City Council specify that the uncommitted funds in the Littlerock Drainage Fee Fund are to be used for the projects noted in the City of Palmdale Master Plan of Drainage dated August 1996.
That the uncommitted funds in the Fire Facilities Fee Fund will be held for the benefit of the Consolidated Fire Protection District of Los Angeles County District Area 3 for future fire station projects. And the uncommitted funds held in the Sewer Upgrade Fee Fund will be held for projects noted in the Ten-Year Capital Improvement Plan.
Action To Be Taken By City Council
1. At the recommendation of City Management accept the Annual Report on Development Impact Fees held longer than five years and adopt the following findings.
2. That the Drainage funds held and totaling $50,662 in the Littlerock Drainage Fee Fund are to be held for projects noted in the City of Palmdale Master Plan of Drainage dated August 1996. That the funds held totaling $3,780,375 in the Fire Facilities Fee Fund will be held for the benefit of the Consolidated Fire Protection District of the Los Angeles County District Area 3 for future fire station projects. And that the funds totaling $440,146 in the Sewer Upgrade Fee Fund will be held for projects noted in the Ten-Year Capital Improvement Plan.
Our firm appreciates the assistance and cooperation your City staff extended to us during our work. If you or any City officials have questions regarding this report, I can be contacted at 909.466.4410.
Sincerely yours,
Roger Alfaro, CPA
Eide Bailly LLP
Attachments
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
N
on Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Traffic Impact Fee (Fund 209/221)
Street Signal Debt Service 861,248$ 861,248$
Ave R 45th St E Traffic Signal 312 312
Traffic Signal Left Phasing 1,801 1,801
Totals 863,361$ - $ 863,361$ -$ 891,289$ (77,833)$ - $ - $ - $ 2,794,728$ 2,744,823$ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
Non Interest Total Non Developer
Project AB 1600 Expense AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue General Fund Expenditures Expenditures Coll ected Income Income Transfers Transfers Balance Balance Project Expended 2021-2022 Advance 2021-2022 2021-2022 2021 -2022 2021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Parks Development Fee (Fund 208/220)
Playhouse HVAC Upgrade 4,873 $ 4,873 $
Courson Connection Infrastructure 5,837 5,837 Sam Yellen Park 223,677 223,677
Rancho Vista Park 1,997,361 1,997,361
Park Improvements 10,549 10,549
Sports Field Maintenance 9,236 9,236
Totals 2,251,533 $ - $ - $ 2,251,533 $ 239,200 $ 2,413,127 $ (360,712) $ - $ - $ - $ 7,838,830 $ 7,400,512 $ Note: Ending balance includes the following:
Advance due to General Fund of $5,000,000.
(Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Inco me Transfers Transfers Balance Balance Project Expended 2021-2022 2021-2022 2021-2022 2021-2022 2 021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Amargosa Drainage Fee (Fund 212/222)
Drainage Admin 48,024 $ 48,024 $
Amargosa Creek Upper Rechg 8,863 8,863
Totals 56,887 $ - $ 56,887 $ - $ 408,982 $ (21,227) $ - $ - $ - $ 379,034 $ 709,902 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
N
on Interest Total Non Developer
Project AB 1600 Expense AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Interfund Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2021-2022 Drainage 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Anaverde Drainage Fee (Fund 213/223)
Drainage Admin 6,000$ 6,000$
Amargosa Crk Upper Rechg Proj (485) (485)
5,515$ - $ 7,496$ 5,515$ -$ 553,956 $ (52,250)$ - $ - $ -$ (3,785,906) $ (3,297,211)$ Note: Ending balance includes the following:
Loan payable due to Pearland Drainage Fund of $2,136,221. (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
Non Interest Total Non Developer
Project AB 1600 Expense AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Interfund Expenditures Expenditures Collecte d Income Income Transfers Transfers Balance Balance Project Expended 2021-2022 Drainage 2021-2022 2021-2022 20 21-2022 2021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Portal Ridge Drainage Fee (Fund 214/224)
Drainage Admin 6,000 $ 6,000 $
6,000 $ - $ - $ 6,000 $ - $ 114,833 $ (3,771) $ - $ - $ - $ (9,238) $ 95,824 $ Note: Ending balance includes the following:
Due to General Fund of $18,476.
(Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
N
on Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Pearland Drainage Fee (Fund 215/225)
Drainage Admin 6,000$ 6,000$
Amargosa Creek Upper Rechg - -
6,000$ - $ 6,000$ -$ 1,115,209 $ (35,409)$ - $ - $ - $ 10,289,512$ 11,363,312$ Note: Ending balance includes loan receivable due from Anaverde Drainage Fund of $2,136,221 and $4,100,000 from the Sewer Maintenance Fund.
Note: There is no finding in the Pearland Fund, since the loan reduced the cash balance of the fund. (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
N
on Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Littlerock Drainage Fee (Fund 216/226)
Drainage Admin 6,000$ 6,000$
6,000$ - $ 6,000$ -$ -$ (1,497) $ - $ - $ - $ 61,373$ 53,876$ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Inco me Transfers Transfers Balance Balance Project Expended 2021-2022 2021-2022 2021-2022 2021-2022 2 021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Fire Facilities Impact Fee (Fund 217/227)
City Admin Charges 43,003 $ 43,003 $
43,003 $ - $ 43,003 $ - $ 860,059 $ (228,375) $ - $ - $ - $ 7,500,136 $ 8,088,817 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Inco me Transfers Transfers Balance Balance Project Expended 2021-2022 2021-2022 2021-2022 2021-2022 2 021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Sewer Upgrade Impact Fee (Fund 225/228)
Sewer Upgrd-45th E/Ave R to S 26,973 $ 26,973 $
26,973 $ - $ 26,973 $ - $ - $ (13,721) $ - $ - $ - $ 522,114 $ 481,420 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
N
on Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Public Facilities Impact Fee (Fund 247/229)
City Facilities 10,525$ 10,525$
Saves/Oasis Generators 551 551
Fire Supression Retrofitting 11,705 11,705
Desert Sands Park Improvements 3,066 3,066
25,847$ - $ 25,847$ -$ 562,559$ (43,102)$ - $ - $ - $ 980,568$ 1,474,178$ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2022
N
on Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 2021-2022 In Out 7/1/2021 6/30/2022 Big Rock Drainage Impact Fee (Fund 230)
Drainage Admin 6,000$ 6,000$
Amargosa Creek Upper Rechg Proj 1,500 1,500
7,500$ - $ 7,500$ -$ -$ (283)$ - $ - $ - $ 18,263$ 10,480$ (Unaudited)
City Council Staff Report
DATE: JUNE 7, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: FINANCE DEPARTMENT
DISTRICT: ALL
SUBJECT: APPROVE AGREEMENT WITH HARRELL & COMPANY ADVISORS, LLC. TO PROVIDE MUNICIPAL ADVISORY SERVICES IN THE
AMOUNT OF $125,000 FOR A FIVE (5) YEAR TERM THROUGH
JUNE 30, 2028.
ISSUE
Approve agreement with Harrell & Company Advisors, LLC to provide municipal advisory services in the amount of $125,000 for a five (5) year term through June 30, 2028.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve agreement A -8387 with Harre ll & Company Advisors, LLC to provide municipal advisory services in an amount of $125,000 for a five (5) year term through June 30, 2028; and
2. Authorize the City Manager or her designee to execute the Agreement A-8387 with Harrell & Company Advisors , LLC, including making minimal and/or non - substantive changes.
BACKGROUND
The City seeks professional services for municipal advisory on matters that provide long- term fiscal health of the City as part of the City’s strategic planning goals. Municipal Advisory services assist public agencies with the issuance of bonds, financial analysis, modeling, forecasting and planning associated with funding capital improvements.
Municipal Advisors are guided by the Municipal Securities Rulemaking Board, wh ich establishes core standards of conduct for municipal advisors engaging in municipal advisory activities. Under Rule G-17 of the MSRB, a municipal advisor is subject to a duty of fair dealing and is prohibited from engaging in any deceptive, dishonest, or unfair practice.
Harrell & Company has provided municipal advisory services to the City of Palmdale since 2009 and has provided such services, including (but not limited to) providing financial advisory services for a variety of debt issues (both new and refunding issues), Report to Mayor and City Council
Re: Approve Agreement A-8387 with Harrell & Company Advisors, LLC June 7, 2023
providing guidance for financing programs for on-going and new programs, and current and new projects; assisting in developing and maintaining a long-term financial plan for operating programs; ongoing operational costs as well as capital projects for the City, assisting in developing factors to evaluate the City's financial condition, providing financial analysis and guidance regarding the feasibility of the City's participation in public-public or public-private partnerships where respective financial interests must be determined, assisting in the development of investment strategies, policies and programs, providing analysis of and recommending alternatives for the impact of state and national legislation, providing financial analysis and guidance regarding the feasibility of the City's implementation of or a continuation in a City service or program, and assisting in gathering and preparation of SEC required continuing disclosure materials for the City’s Community Facility Districts as well as assist with the preparation of Successor Agency’s annual Required Obligations and Payments Schedule (ROPS) for submission to the Los Angeles County Oversight Board (LACOB) and the California State Department of Finance (DOF).
DISCUSSION
Harrell & Company possess historical knowledge of the City of Palmdale’s finances, including debt issuance and refunding capability, that will help to guide the future of the City of Palmdale. The City wishes to enter into a new agreement with Harrell & Company Advisors, LLC to continue to provide municipal advisory services as it pertains to the City’s business affairs.
The term of the contract is for five (5) years, commencing on the effective date of July 1, 2023, through June 30, 2028.
FISCAL IMPACT
$125,000; the fiscal impact associated with this agreement totals $125,000 over the five-year term, with annual amounts of $25,000 per year. Funds are to be budgeted and available in various accounts under the City, Successor Agency, Assessment District and Community Facility District funds as a part of the annual operating budgets.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
A. Manage resources, costs and liabilities to ensure the City’s long-term fiscal health.
D. Pursue alternative financing opportunities for continued infrastructure improvements and quality community programs.
Prepared by: Willy Galindo, Senior Financial Analyst
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 Report to Mayor and City Council
Re: Approve Agreement A-8387 with Harrell & Company Advisors, LLC June 7, 2023
ATTACHMENTS
Harrell & Company Advisors, LLC Agreement A-8387
AGREEMENT NO. A-8387
CONTRACT FOR CONSULTANT SERVICES
BETWEEN THE CITY OF PALMDALE AND HARRELL & COMPANY ADVISORS, LLC.
THIS CONTRACT FOR CONSULTANT SERVICES (“Contract” herein) is made and entered into by and between the City of Palmdale a public body corporate and politic, (hereinafter called “CITY”) and HARRELL & COMPANY ADVISORS, LLC. (hereinafter called “CONSULTANT”). This Contract shall become effective on the date of the last signatory.
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:
Consultant will provide municipal advisory services for a variety of debt issues (both new and refunding issues).
Consultant will provide guidance for financing programs for on-going and new programs, and current and new projects.
Consultant will assist in developing financial condition factors to evaluate the City's financial condition.
Consultant will provide financial analysis and guidance regarding the feasibility of the City's participation in public-public or public-private partnerships where respective financial interests must be determined.
Consultant will provide an analyses of recommend alternatives for the impact of state 1-14Concord - Document ID: ZTUwOWIwOTctND
and national legislation.
Consultant will prepare documents required for ROPS approvals.
Consultant will review financial information and assist with the negotiation of special tax rates for community facilities districts and drafting related staff documents.
Consultant will assist with the gathering and preparation of SEC required continuing disclosure materials.
Consultant will be available on short-notice basis, to provide immediate responses to requests for guidance or answers to questions received from the City Manager or Finance Director.
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:
2-14Concord - Document ID: ZTUwOWIwOTctND
SUZANNE HARRELL
This Consultant Services Contract has been awarded to CONSULTANT based on its representation that those personnel and subcontractors listed above will perform the portions of the work listed herein. CONSULTANT shall not deviate nor substitute any of these team members without prior written approval by CITY. 4 CONTRACT TERM
The term of this contract is FIVE (5) YEARS, commencing on the effective date. 5 TAXES
5.1 CONSULTANT shall pay all sales, consumer, use, and other similar taxes required to be paid by CONSULTANT in accordance with state and local laws.
5.2 CONSULTANT is an independent contractor and shall have no power or authority to incur any debt, obligation, or liability on behalf of CITY. No person employed by CONSULTANT or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.
5.3 CONSULTANT shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.
6 PATENT FEES AND ROYALTIES
CONSULTANT shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, product or device is specified by CITY for use in the performance of the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents. CONSULTANT shall indemnify and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, product or device not specified by CITY, and shall defend all such claims in connection with any alleged infringement of such rights. 7 STANDARDS OF PERFORMANCE
CONSULTANT shall be responsible for the completeness and accuracy of its services and work and documents resulting there from, and CITY shall not be responsible for discovering deficiencies therein. CONSULTANT shall correct any such deficiencies or errors without additional compensation and without cost to CITY, 3-14Concord - Document ID: ZTUwOWIwOTctND
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 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 ONE HUNDRED AND TWENTY FIVE THOUSAND dollars ($125000), payable as follows:
Harrell & Company proposes the following fees for various services:
1.Ongoing general financial advisory services $300 per hour,
2. ROPS preparation and documentation $350 per hour,
Fees will for Items (1) and (2) will be payable upon receipt of periodic invoices, in annual amounts not to exceed $25,000.
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 4-14Concord - Document ID: ZTUwOWIwOTctND
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 they will be available only to CITY and any specified public agencies. Such records shall be maintained by CONSULTANT for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONSULTANT shall retain its records for the time required by such laws.
9.4 No payment made hereunder by CITY to CONSULTANT, shall be construed as an acceptance by CITY of any work or materials, nor as evidence of satisfactory performance by CONSULTANT of its obligations under this Contract. 10 INDEMNIFICATION
To the fullest extent permitted by law, CONSULTANT and any contractors or subcontractors working on its behalf agree to indemnify CITY, its officers, employees, agents and elected and appointed boards (hereinafter “Indemnified Parties”) for any loss, claim, demand, cause of action, cost, expense, damage, obligation or liability which arises out of or is in any way connected with the performance of any work under this agreement, including any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONSULTANT, its contractors or subcontractors, and regardless of any acts, omissions or negligence (whether active or passive) of any person or entity indemnified hereunder. At their own expense, CONSULTANT and, as applicable, any contractors or subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONSULTANT shall ensure that the contract of any contractor or subcontractor working under this agreement contain an indemnity agreement, requiring the contractor or subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONSULTANT shall indemnify the Indemnified Parties, and save it harmless from any and all loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
5-14Concord - Document ID: ZTUwOWIwOTctND
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* $1,000,000 limit on a per occurrence basis
11.1.3 Commercial General Liability
$1,000,000.00 limit on a per occurrence basis
$2,000,000.00 general aggregate limit
11.1.4 Commercial Automobile Liability
$1,000,000.00 combined single limit including owned, non-owned and hired automobile coverage
11.2 All of CONSULTANT’s policies shall contain an endorsement providing that written notice shall be given to CITY at least thirty- (30) calendar days prior to termination, cancellation or reduction of coverage in the policy.
11.3 Policies providing for bodily injury and property damage coverage shall contain the following:
A. An endorsement extending coverage to the City as an additional insured, in the same manner as the named insured, as respects liability arising out of the performance of any work under the Contract. Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The certificate and endorsements shall state: “The City of Palmdale, the Successor Agency of the Community Redevelopment Agency of the City of Palmdale, Palmdale Civic Authority, Industrial Development Authority of the City of Palmdale, Palmdale Airport Authority, their officers, agents, employees and volunteers are named as additional insured’s.”
B. “Severability of Interest” clause.
6-14Concord - Document ID: ZTUwOWIwOTctND
11.4 Promptly on execution of this Contract, and prior to commencement of any work, CONSULTANT shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONSULTANT has the required coverage and showing the required named insureds. Within five (5) days of written request from CITY, CONSULTANT shall deliver to CITY full and complete copies of all insurance policies required by this Contract.
11.5 The requirements as to the types and limits of insurance to be maintained by CONSULTANT are not intended to and shall not in any manner limit or qualify CONSULTANT’s liabilities and obligations under this Contract.
11.6 Any policy or policies of insurance that CONSULTANT elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.
11.7 All insurance coverage must be maintained throughout the duration of this Contract.
11.8 Acceptable Proof of Insurance:
11.8.1 ACORD Certificate of Insurance listing all coverages, limits, deductibles and insureds; and endorsements for all applicable coverages if agent has authority to issue it; Additional insured Form CG20101185 or CG20100707 and CG20370704 or equivalent must be provided for general liability coverage.
Additional insured form CA0001 must be provided for automobile liability coverage.
11.8.2 Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements listing all insurers must be submitted to the City Attorney.
11.8.3 *When professional (E&O) 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 7-14Concord - Document ID: ZTUwOWIwOTctND
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 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 8-14Concord - Document ID: ZTUwOWIwOTctND
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 OWNERSHIP OF DOCUMENTS
All documents, including, but not limited to, research, field notes, investigations, analysis, and studies which are prepared in the performance of this Contract are to be, and remain the property of CITY. CONSULTANT shall furnish CITY, upon its 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, 9-14Concord - Document ID: ZTUwOWIwOTctND
the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONSULTANT under this Contract.
17 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY
17.1 In performance of this Contract, CONSULTANT shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, or age. CONSULTANT will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
17.2 The provisions of subsection 17.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONSULTANT for personnel to perform any 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 10-14Concord - Document ID: ZTUwOWIwOTctND
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 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.
11-14Concord - Document ID: ZTUwOWIwOTctND
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. 12-14Concord - Document ID: ZTUwOWIwOTctND
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: HARRELL & COMPANY ADVISORS,
LLC.:
RONDA PEREZ
CITY MANAGER
SUZANNE HARRELL
MANAGING DIRECTOR
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38300 Sierra Highway Suite D
Palmdale, CA 93550
ADDRESS FOR NOTICE:
HARRELL & COMPANY ADVISORS,
LLC.
13891 Newport Avenue, Suite 145
Tustin, CA 92780
APPROVE AS TO FORM:
William P. Curley, III
Interim City Attorney
ATTEST:
Roxanne Faber
Acting City Clerk
---------------------------------------- INTERNAL USE ONLY ----------------------------------------
13-14Concord - Document ID: ZTUwOWIwOTctND
■Certificate(s) and Endorsement(s) attached
■Confirmed business name on contract with certificate(s) ■Attached Agreement Checklist and met all requirements
14-14Concord - Document ID: ZTUwOWIwOTctND
Record of Signing
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City Council Staff Report
DATE: JUNE 7, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: FINANCE DEPARTMENT
INFORMATION TECHNOLOGY DIVISION
DISTRICT: ALL
SUBJECT: APPROVE AGREEMENT WITH FLOCK GROUP, INC. TO PROVIDE
A FIXED LOCATION AUTOMATED LICENSE PLATE RECOGNITION
(ALPR) SYSTEM, FIFTY LPR CAMERAS , AND PROVIDE
IMPLEMENTATION SERVICES IN A NOT TO EXCEED AMOUNT OF
$157,500 FOR A ONE (1) YEAR TERM.
ISSUE
Approve Agreement with Flock Group, Inc to provide a fixed location Automated License Plate Recognition (ALPR) system , fifty LPR cameras, and provide implementation services in a not to exceed amount of $157,500 for a one (1) year term.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve Agreement No. A-8391 with Flock Group, Inc. to provide a fixed location License Plate Recognition (ALPR) System, the purchase of a subscription for 50 Automated License Plate Reader (“ALPR”) cameras from Flock Safety (“Flock”) in the amount of $157,500. This project includes a one-year lease of the cameras at $3,000 per camera and a one -time fee of $150 per camera installation. This consists of a license to access the application to view cameras and camera footage, which will be stored in the cloud, all mou nting equipment, installation, maintenance, upgrades, and no -cost replacement of faulty manufacturer equipment. This is a one-year agreement.
2. Authorize the City Manager or her designee to execute Agreement A -8391 with Flock Group Inc., including making minimal and/or non-substantive changes.
BACKGROUND
Flock Safety is the sole manufacturer and distributor of the Flock Safety Automatic License Plate Recognition (ALPR) Camera. Flock Safety is also the sole provider of comprehensive monitoring, processing, and machine vision services that integrate with the Flock Safety Camera. Other local Southern California government agencies currently Report to Mayor and City Council
Re: Approve Agreement A-8391 with Flock Group, Inc.
June 7, 2023
using Flock Systems include Alhambra, Azusa, Covina, El Monte, Glendale, Lancaster, Pomona, and West Covina to name a few.
Flock Safety provides crime-fighting technology (cameras and software) under a service subscription model. Flock Safety’s service is a flat annual fee that includes ALPR camera hardware, hardware maintenance, ALPR software, software updates, unlimited users, 30 days of unlimited data storage, LTE connectivity, solar panels, and mounting equipment.
Flock Safety provides all supplies and equipment under standard operating procedures and complies with all government regulations and workplace safety guidelines. Flock Safety will remove the cameras if the city chooses not to renew the agreement. If a camera suffers from a manufacturer defect, Flock Safety will replace the camera at no additional fee.
The Sheriff’s Department has collaborated with Flock and City of Palmdale Public Safety on the placement of the cameras. Flock cameras utilize motion capture to start and stop the photographs with machine learning and artificial intelligence, allowing Flock Safety to capture vehicle characteristics without needing a reflective license plate. The cameras can capture and process 30,000 vehicles per day and capture two (2) lanes of traffic simultaneously with a single camera from a vertical mass powered by solar power. Flock Safety analyzes vehicle license plate, color and make objects (roof rack, unique hub cap, etc.). The software transmits alerts for wanted plates and can set up alerts based on vehicle descriptions.
The software makes actionable evidence available when needed that is easily searchable by vehicle type, make, model, color, timeframe, partial/full license plate, and object detection. This technology will aid the Sheriff’s Department in detecting and stop vehicles that were used in crimes more accurately. This not only can save law enforcement time in investigating criminal activity but also help prevent unnecessary stops and detentions of motorists driving similar vehicles. People’s privacy is protected by not using facial recognition technology and not recording any personally identifiable information such as names, addresses, or phone numbers.
The City of Palmdale will own their data, and Flock Safety does not sell the data to third parties. The camera footage is stored, secured, and encrypted in AWS Government Cloud and automatically deleted every thirty (30) days on a rolling basis. The camera only takes photos, and there is no live feed. No one monitors the system and is not used for surveillance purposes.
DISCUSSION
The City of Palmdale seeks to join surrounding law enforcement agencies in deploying Automatic License Plate Reader (ALPR) technology throughout the city.
Report to Mayor and City Council
Re: Approve Agreement A-8391 with Flock Group, Inc.
June 7, 2023
Flock Group Inc. is the sole manufacturer and distributor of the Flock Safety Automatic License Plate Recognition (ALPR) camera, which is currently utilized by Sheriff’s Departments across Southern California.
By joining the existing Flock Safety camera platform, the Palmdale Sheriff’s Office will be able to utilize systems within the surrounding jurisdiction, allowing a more extensive network of resources than if the city were to utilize a different product.
An initial purchase of this system would include fifty Flock Safety cameras, propriety software, and professional services to install the cameras and implement the system for $157,500.
The purpose of the cameras is to read license plates. The technology will aid in locating stolen vehicles, vehicles used in the commission of a crime, or vehicles relating to an investigation. The cameras do not capture anything inside a vehicle.
The license plate is read, and that data is run through the state database for stolen vehicles, or vehicles entered the system as felony wanted vehicles.
Any information provided through the state database is transferred to the Sheriff’s dispatch, and then local dispatch follows LASD protocol to locate the vehicle.
FISCAL IMPACT
Funds for this project have been budgeted in the following accounts:
15725601-774400 = $157,500
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.
B. Be prepared to protect life, property, and the environment in the event of catastrophic disasters and emergencies.
Prepared by: Stuart Thompson, IT Manager
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
Agreement No A-8391 with Flock Group, Inc.
Flock Safety + CA - City of Palmdale ______________ Flock Group Inc. 1170 Howell Mill Rd, Suite 210 Atlanta, GA 30318 ______________ MAIN CONTACT: Jesse Mund [email protected] 7138996379
EXHIBIT A
ORDER FORM
Customer: CA - City of Palmdale Initial Term: 12 Months Legal Entity Name: CA - City of Palmdale Renewal Term: 24 Months Accounts Payable Email: [email protected] Payment Terms: Net 30 Address: 38300 Sierra Hwy Palmdale, California 93550 Billing Frequency: 50% of Annual Contract + 100% of Implementation Invoiced at Signing. 25% of Annual Contract Invoiced at First Camera Validation. 25% of Annual Contract Invoiced at Last Camera Validation. Annual payments invoiced for remainder of
subscription term.
Retention Period: 30 Days
Hardware and Software Products
Annual recurring amounts over subscription term
Item Cost Quantity Total
Flock Safety Platform $150,000.00
Flock Safety Flock OS
FlockOS ™ Included 1 Included
Flock Safety LPR Products
Flock Safety Falcon ® Included 50 Included
Professional Services and One Time Purchases
Item Cost Quantity Total
One Time Fees
Flock Safety Professional Services
Professional Services - Existing Infrastructure
Implementation Fee $150.00 50 $7,500.00
Subtotal Year 1: $157,500.00
Annual Recurring Subtotal: $150,000.00
Estimated Tax: $0.00
Contract Total: $157,500.00
Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.
Billing Schedule
Billing Schedule Amount (USD)
Year 1
At Contract Signing $82,500.00
At First Device Installed $37,500.00
At Last Device Installed $37,500.00
Annual Recurring after Year 1
Contract Total $157,500.00
*Tax not included
Product and Services Description
Flock Safety Platform Items Product Description Terms
Flock Safety Falcon ®
An infrastructure-free license plate reader camera that utilizes Vehicle Fingerprint® technology to capture vehicular attributes.
The Term shall commence upon first installation and validation of Flock Hardware.
One-Time Fees Service Description
Installation on existing
infrastructure
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.
Professional Services - Standard
Implementation Fee
One-time Professional Services engagement. Includes site and safety assessment, camera setup and testing, and shipping and handling in accordance with the Flock Safety Standard Implementation Service Brief.
Professional Services -
Advanced Implementation Fee
One-time Professional Services engagement. Includes site & safety assessment, camera setup & testing, and shipping & handling in accordance with the Flock Safety Advanced Implementation Service Brief.
FlockOS Features & Description
Package: Essentials
FlockOS Features Description
Community Cameras (Full Access) Access to all privately owned Flock devices within your jurisdiction that have been shared with you.
Unlimited Users Unlimited users for FlockOS
State Network (LP Lookup Only) Allows agencies to look up license plates on all cameras opted in to the statewide Flock network.
Nationwide Network (LP Lookup Only) Allows agencies to look up license plates on all cameras opted in to the nationwide Flock network.
Direct Share - Surrounding Jurisdiction (Full Access) Access to all Flock devices owned by law enforcement that have been directly shared with you. Have ability to search by vehicle fingerprint, receive hot list alerts, and view devices on the map.
Time & Location Based Search Search full, partial, and temporary plates by time at particular device locations License Plate Lookup Look up specific license plate location history captured on Flock devices Vehicle Fingerprint Search Search footage using Vehicle Fingerprint™ technology. Access vehicle type, make, color, license plate state, missing / covered plates, and other unique features like bumper stickers, decals, and roof racks.
Flock Insights/Analytics page Reporting tool to help administrators manage their LPR program with device performance data, user and network audits, plate read reports, hot list alert reports, event logs, and outcome reports.
ESRI Based Map Interface
Flock Safety’s maps are powered by ESRI, which offers the ability for 3D visualization, viewing of floor plans, and layering of external GIS data, such as City infrastructure (i.e., public facilities, transit systems, utilities), Boundary mapping (i.e., precincts, county lines, beat maps), and Interior floor plans (i.e., hospitals, corporate campuses, universities)
Real-Time NCIC Alerts on Flock ALPR Cameras Alert sent when a vehicle entered into the NCIC crime database passes by a Flock camera Unlimited Custom Hot Lists Ability to add a suspect’s license plate to a custom list and get alerted when it passes by a Flock camera
By executing this Order Form, Customer represents and warrants that it has read and agrees to all of the terms and conditions contained in the Master Services Agreement attached. The Parties have executed this Agreement as of the dates set forth below.
FLOCK GROUP, INC. Customer: CA - City of Palmdale
By: \FSSignature2\ By: \FSSignature1\
Name: \FSFullname2\ Name: \FSFullname1\
Title: \FSTitle2\ Title: \FSTitle1\
Date: \FSDateSigned2\ Date: \FSDateSigned1\
PO Number:
Master Services Agreement
This Master Services Agreement (this “Agreement”) is entered into by and between Flock Group, Inc. with a place of business at 1170 Howell Mill Road NW Suite 210, Atlanta, GA 30318 (“Flock”) and the entity identified in the signature block (“Customer”) (each a “Party,” and together, the “Parties”) on this the 30 day of May 2023. This Agreement is effective on the date of mutual execution (“Effective Date”). Parties will sign an Order Form (“Order Form”) which will describe the Flock Services to be performed and the period for performance, attached hereto as Exhibit A. The Parties agree as follows:
RECITALS
WHEREAS, Flock offers a software and hardware situational awareness solution through Flock’s technology platform that upon detection is capable of capturing audio, video, image, and recording data and provide notifications to Customer (“Notifications”);
WHEREAS, Customer desires access to the Flock Services (defined below) on existing devices, provided by Customer, or Flock provided Flock Hardware (as defined below) in order to create, view, search and archive Footage and receive Notifications, via the Flock Services;
WHEREAS, Customer shall have access to the Footage in Flock Services. Pursuant to Flock’s standard Retention Period (defined below) Flock deletes all Footage on a rolling thirty (30) day basis, except as otherwise stated on the Order Form. Customer shall be responsible for extracting, downloading and archiving Footage from the Flock Services on its own storage devices; and
WHEREAS, Flock desires to provide Customer the Flock Services and any access thereto, subject to the terms and conditions of this Agreement, solely for the awareness, prevention, and prosecution of crime, bona fide investigations and evidence gathering for law enforcement purposes, (“Permitted Purpose”).
AGREEMENT
NOW, THEREFORE, Flock and Customer agree that this Agreement, and any Order Form, purchase orders, statements of work, product addenda, or the like, attached hereto as exhibits and incorporated by reference, constitute the complete and exclusive statement of the Agreement of the Parties with respect to the subject matter of this Agreement, and replace and supersede all prior agreements, term sheets, purchase orders, correspondence, oral or written communications and negotiations by and between the Parties.
1. DEFINITIONS
Certain capitalized terms, not otherwise defined herein, have the meanings set forth or cross- referenced in this Section 1.
1.1 “Anonymized Data” means Customer Data permanently stripped of identifying details and any potential personally identifiable information, by commercially available standards which irreversibly alters data in such a way that a data subject (i.e., individual person or entity) can no longer be identified directly or indirectly.
1.2 “Authorized End User(s)” means any individual employees, agents, or contractors of Customer accessing or using the Services, under the rights granted to Customer pursuant to this Agreement.
1.3 “Customer Data” means the data, media and content provided by Customer through the Services. For the avoidance of doubt, the Customer Data will include the Footage.
1.4. “Customer Hardware” means the third-party camera owned or provided by Customer and any other physical elements that interact with the Embedded Software and the Web Interface to provide the Services.
1.5 “Embedded Software” means the Flock proprietary software and/or firmware integrated with or installed on the Flock Hardware or Customer Hardware.
1.6 “Flock Hardware” means the Flock device(s), which may include the pole, clamps, solar panel, installation components, and any other physical elements that interact with the Embedded Software and the Web Interface, to provide the Flock Services as specifically set forth in the applicable product addenda.
1.7 “Flock IP” means the Services, the Embedded Software, and any intellectual property or proprietary information therein or otherwise provided to Customer and/or its Authorized End Users. Flock IP does not include Footage (as defined below).
1.8 “Flock Network End User(s)” means any user of the Flock Services that Customer authorizes access to or receives data from, pursuant to the licenses granted herein.
1.9 “Flock Services” means the provision of Flock’s software and hardware situational awareness solution, via the Web Interface, for automatic license plate detection, alerts, audio detection, searching image records, video and sharing Footage.
1.10 “Footage” means still images, video, audio and other data captured by the Flock Hardware or Customer Hardware in the course of and provided via the Flock Services.
1.11 “Hotlist(s)” means a digital file containing alphanumeric license plate related information pertaining to vehicles of interest, which may include stolen vehicles, stolen vehicle license plates, vehicles owned or associated with wanted or missing person(s), vehicles suspected of being involved with criminal or terrorist activities, and other legitimate law enforcement purposes.
Hotlist also includes, but is not limited to, national data (i.e., NCIC) for similar categories, license plates associated with AMBER Alerts or Missing Persons/Vulnerable Adult Alerts, and includes manually entered license plate information associated with crimes that have occurred in any local jurisdiction.
1.12 “Installation Services” means the services provided by Flock for installation of Flock Services.
1.13 “Retention Period” means the time period that the Customer Data is stored within the cloud storage, as specified in the product addenda.
1.14 “Vehicle Fingerprint™” means the unique vehicular attributes captured through Services such as: type, make, color, state registration, missing/covered plates, bumper stickers, decals, roof racks, and bike racks.
1.15 “Web Interface” means the website(s) or application(s) through which Customer and its Authorized End Users can access the Services.
2. SERVICES AND SUPPORT
2.1 Provision of Access. Flock hereby grants to Customer a non-exclusive, non-transferable right to access the features and functions of the Flock Services via the Web Interface during the Term, solely for the Authorized End Users. The Footage will be available for Authorized End Users to access and download via the Web Interface for the data retention time defined on the Order Form (“Retention Period”). Authorized End Users will be required to sign up for an account and select a password and username (“User ID”). Customer shall be responsible for all acts and omissions of Authorized End Users, and any act or omission by an Authorized End User which, including any acts or omissions of authorized End user which would constitute a breach of this agreement if undertaken by customer. Customer shall undertake reasonable efforts to make all Authorized End Users aware of all applicable provisions of this Agreement and shall cause Authorized End Users to comply with such provisions. Flock may use the services of one or more third parties to deliver any part of the Flock Services, (such as using a third party to host the Web Interface for cloud storage or a cell phone provider for wireless cellular coverage).
2.2 Embedded Software License. Flock grants Customer a limited, non-exclusive, non- transferable, non-sublicensable (except to the Authorized End Users), revocable right to use the Embedded Software as it pertains to Flock Services, solely as necessary for Customer to use the Flock Services.
2.3 Support Services. Flock shall monitor the Flock Services, and any applicable device health, in order to improve performance and functionality. Flock will use commercially reasonable efforts to respond to requests for support within seventy-two (72) hours. Flock will provide Customer with reasonable technical and on-site support and maintenance services in-person, via phone or by email at [email protected] (such services collectively referred to as “Support Services”).
2.4 Upgrades to Platform. Flock may make any upgrades to system or platform that it deems necessary or useful to (i) maintain or enhance the quality or delivery of Flock’s products or services to its agencies;the competitive strength of, or market for, Flock’s products or services;such platform or system’s cost efficiency or performance, or (ii) to comply with applicable law. Parties understand that such upgrades are necessary from time to time and will not diminish the quality of the services or materially change any terms or conditions within this Agreement.
2.5 Service Interruption. Services may be interrupted in the event that: (a) Flock’s provision of the Services to Customer or any Authorized End User is prohibited by applicable law; (b) any third-party services required for Services are interrupted; (c) if Flock reasonably believe Services are being used for malicious, unlawful, or otherwise unauthorized use; (d) there is a threat or attack on any of the Flock IP by a third party; or (e) scheduled or emergency maintenance (“Service Interruption”). Flock will make commercially reasonable efforts to provide written notice of any Service Interruption to Customer,to provide updates, and to resume providing access to Flock Services as soon as reasonably possible after the event giving rise to the Service Interruption is cured. Flock will have no liability for any damage, liabilities, losses (including any loss of data or profits), or any other consequences that Customer or any Authorized End User may incur as a result of a Service Interruption. To the extent that the Service Interruption is not caused by Customer’s direct actions or by the actions of parties associated with the Customer, the time will be tolled by the duration of the Service Interruption (for any continuous suspension lasting at least one full day). For example, in the event of a Service Interruption lasting five (5) continuous days, Customer will receive a credit for five (5) free days at the end of the Term.
2.6 Service Suspension. Flock may temporarily suspend Customer’s and any Authorized End User’s access to any portion or all of the Flock IP or Flock Service if (a) there is a threat or attack on any of the Flock IP by Customer; (b) Customer’s or any Authorized End User’s use of the Flock IP disrupts or poses a security risk to the Flock IP or any other customer or vendor of Flock; (c) Customer or any Authorized End User is/are using the Flock IP for fraudulent or illegal activities; (d) Customer has violated any term of this provision, including, but not limited to, utilizing Flock Services for anything other than the Permitted Purpose; or (e) any unauthorized access to Flock Services through Customer’s account (“Service Suspension”). Customer shall not be entitled to any remedy for the Service Suspension period, including any reimbursement, tolling, or credit. If the Service Suspension was not caused by Customer, the Term will be tolled by the duration of the Service Suspension.
2.7 Hazardous Conditions. Flock Services do not contemplate hazardous materials, or other hazardous conditions, including, without limit, asbestos, lead, toxic or flammable substances. In the event any such hazardous materials are discovered in the designated locations in which Flock is to perform services under this Agreement, Flock shall have the right to cease work immediately.
3. CUSTOMER OBLIGATIONS
3.1 Customer Obligations. Flock will assist Customer Authorized End Users in the creation of a User ID. Authorized End Users agree to provide Flock with accurate, complete, and updated registration information. Authorized End Users may not select as their User ID, a name that they do not have the right to use, or any other name with the intent of impersonation. Customer and Authorized End Users may not transfer their account to anyone else without prior written permission of Flock. Authorized End Users shall not share their account username or password information and must protect the security of the username and password. Unless otherwise stated and defined in this Agreement, Customer shall not designate Authorized End Users for persons who are not officers, employees, or agents of Customer. Authorized End Users shall only use Customer-issued email addresses for the creation of their User ID. Customer is responsible for any Authorized End User activity associated with its account. Customer shall ensure that Customer provides Flock with up to date contact information at all times during the Term of this agreement. Customer shall be responsible for obtaining and maintaining any equipment and ancillary services needed to connect to, access or otherwise use the Flock Services. Customer shall (at its own expense) provide Flock with reasonable access and use of Customer facilities and Customer personnel in order to enable Flock to perform Services (such obligations of Customer are collectively defined as “Customer Obligations”).
3.2 Customer Representations and Warranties. Customer represents, covenants, and warrants that Customer shall use Flock Services only in compliance with this Agreement and all applicable laws and regulations, including but not limited to any laws relating to the recording or sharing of data, video, photo, or audio content.
4. DATA USE AND LICENSING
4.1 Customer Data. As between Flock and Customer, all right, title and interest in the Customer Data, belong to and are retained solely by Customer. Customer hereby grants to Flock a limited, non-exclusive, royalty-free, irrevocable, worldwide license to use the Customer Data and perform all acts as may be necessary for Flock to provide the Flock Services to Customer. Flock does not own and shall not sell Customer Data.
4.2 Customer Generated Data. Flock may provide Customer with the opportunity to post, upload, display, publish, distribute, transmit, broadcast, or otherwise make available, messages, text, illustrations, files, images, graphics, photos, comments, sounds, music, videos, information, content, ratings, reviews, data, questions, suggestions, or other information or materials produced by Customer (“Customer Generated Data”). Customer shall retain whatever legally cognizable right, title, and interest in Customer Generated Data. Customer understands and acknowledges that Flock has no obligation to monitor or enforce Customer’s intellectual property rights of Customer Generated Data. Customer grants Flock a non-exclusive, irrevocable, worldwide, royalty-free, license to use the Customer Generated Data for the purpose of providing Flock Services. Flock does not own and shall not sell Customer Generated Data.
4.3 Anonymized Data. Flock shall have the right to collect, analyze, and anonymize Customer Data and Customer Generated Data to the extent such anonymization renders the data non- identifiable to create Anonymized Data to use and perform the Services and related systems and technologies, including the training of machine learning algorithms. Customer hereby grants Flock a non-exclusive, worldwide, perpetual, royalty-free right to use and distribute such Anonymized Data to improve and enhance the Services and for other development, diagnostic and corrective purposes, and other Flock offerings. Parties understand that the aforementioned license is required for continuity of Services. Flock does not own and shall not sell Anonymized Data.
5. CONFIDENTIALITY; DISCLOSURES
5.1 Confidentiality. To the extent required by any applicable public records requests, each Party (the “Receiving Party”) understands that the other Party (the “Disclosing Party”) has disclosed or may disclose business, technical or financial information relating to the Disclosing Party’s business (hereinafter referred to as “Proprietary Information” of the Disclosing Party).
Proprietary Information of Flock includes non-public information regarding features, functionality and performance of the Services. Proprietary Information of Customer includes non-public data provided by Customer to Flock or collected by Flock via Flock Services, which includes but is not limited to geolocation information and environmental data collected by sensors. The Receiving Party agrees: (i) to take the same security precautions to protect against disclosure or unauthorized use of such Proprietary Information that the Party takes with its own proprietary information, but in no event less than commercially reasonable precautions, and (ii) not to use (except in performance of the Services or as otherwise permitted herein) or divulge to any third person any such Proprietary Information. The Disclosing Party agrees that the foregoing shall not apply with respect to any information that the Receiving Party can document (a) is or becomes generally available to the public; or (b) was in its possession or known by it prior to receipt from the Disclosing Party; or (c) was rightfully disclosed to it without restriction by a third party; or (d) was independently developed without use of any Proprietary Information of the Disclosing Party.
Nothing in this Agreement will prevent the Receiving Party from disclosing the Proprietary Information pursuant to any judicial or governmental order, provided that the Receiving Party gives the Disclosing Party reasonable prior notice of such disclosure to contest such order. At the termination of this Agreement, all Proprietary Information will be returned to the Disclosing Party, destroyed or erased (if recorded on an erasable storage medium), together with any copies thereof, when no longer needed for the purposes above, or upon request from the Disclosing Party, and in any case upon termination of the Agreement. Notwithstanding any termination, all confidentiality obligations of Proprietary Information that is trade secret shall continue in perpetuity or until such information is no longer trade secret.
5.2 Usage Restrictions on Flock IP. Flock and its licensors retain all right, title and interest in and to the Flock IP and its components, and Customer acknowledges that it neither owns nor acquires any additional rights in and to the foregoing not expressly granted by this Agreement.
Customer further acknowledges that Flock retains the right to use the foregoing for any purpose in Flock’s sole discretion. Customer and Authorized End Users shall not: (i) copy or duplicate any of the Flock IP; (ii) decompile, disassemble, reverse engineer, or otherwise attempt to obtain or perceive the source code from which any software component of any of the Flock IP is compiled or interpreted, or apply any other process or procedure to derive the source code of any software included in the Flock IP; (iii) attempt to modify, alter, tamper with or repair any of the Flock IP, or attempt to create any derivative product from any of the foregoing; (iv) interfere or attempt to interfere in any manner with the functionality or proper working of any of the Flock IP; (v) remove, obscure, or alter any notice of any intellectual property or proprietary right appearing on or contained within the Flock Services or Flock IP; (vi) use the Flock Services for anything other than the Permitted Purpose; or (vii) assign, sublicense, sell, resell, lease, rent, or otherwise transfer, convey, pledge as security, or otherwise encumber, Customer’s rights. There are no implied rights.
5.3 Disclosure of Footage. Subject to and during the Retention Period, Flock may access, use, preserve and/or disclose the Footage to law enforcement authorities, government officials, and/or third parties, if legally required to do so or if Flock has a good faith belief that such access, use, preservation or disclosure is reasonably necessary to comply with a legal process, enforce this Agreement, or detect, prevent or otherwise address security, privacy, fraud or technical issues, or emergency situations.
6. PAYMENT OF FEES
6.1 Billing and Payment of Fees. Customer shall pay the fees set forth in the applicable Order Form based on the billing structure and payment terms as indicated in the Order Form. If Customer believes that Flock has billed Customer incorrectly, Customer must contact Flock no later than thirty (30) days after the closing date on the first invoice in which the error or problem appeared to receive an adjustment or credit. Customer acknowledges and agrees that a failure to contact Flock within this period will serve as a waiver of any claim. If any undisputed fee is more than thirty (30) days overdue, Flock may, without limiting its other rights and remedies, suspend delivery of its service until such undisputed invoice is paid in full. Flock shall provide at least thirty (30) days’ prior written notice to Customer of the payment delinquency before exercising any suspension right.
6.2 Notice of Changes to Fees. Flock reserves the right to change the fees for subsequent Renewal Terms by providing sixty (60) days’ notice (which may be sent by email) prior to the end of the Initial Term or Renewal Term (as applicable).
6.3 Late Fees. If payment is not issued to Flock by the due date of the invoice, an interest penalty of 1.0% of any unpaid amount may be added for each month or fraction thereafter, until final payment is made.
6.4 Taxes. Customer is responsible for all taxes, levies, or duties, excluding only taxes based on Flock’s net income, imposed by taxing authorities associated with the order. If Flock has the legal obligation to pay or collect taxes, including amount subsequently assessed by a taxing authority, for which Customer is responsible, the appropriate amount shall be invoice to and paid by Customer unless Customer provides Flock a legally sufficient tax exemption certificate and Flock shall not charge customer any taxes from which it is exempt. If any deduction or withholding is required by law, Customer shall notify Flock and shall pay Flock any additional amounts necessary to ensure that the net amount that Flock receives, after any deduction and withholding, equals the amount Flock would have received if no deduction or withholding had been required.
7. TERM AND TERMINATION
7.1 Term. The initial term of this Agreement shall be for the period of time set forth on the Order Form (the “Term”). Following the Term, unless otherwise indicated on the Order Form, this Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.
7.2 Termination. Upon termination or expiration of this Agreement, Flock will remove any applicable Flock Hardware at a commercially reasonable time period. In the event of any material breach of this Agreement, the non-breaching Party may terminate this Agreement prior to the end of the Term by giving thirty (30) days prior written notice to the breaching Party; provided, however, that this Agreement will not terminate if the breaching Party has cured the breach prior to the expiration of such thirty (30) day period (“Cure Period”). Either Party may terminate this Agreement (i) upon the institution by or against the other Party of insolvency, receivership or bankruptcy proceedings, (ii) upon the other Party's making an assignment for the benefit of creditors, or (iii) upon the other Party's dissolution or ceasing to do business. In the event of a material breach by Flock, and Flock is unable to cure within the Cure Period, Flock will refund Customer a pro-rata portion of the pre-paid fees for Services not received due to such termination.
7.3 Survival. The following Sections will survive termination: 1, 3, 5, 6, 7, 8.3, 8.4, 9, 10.1 and
10.6. 8. REMEDY FOR DEFECT; WARRANTY AND DISCLAIMER
8.1 Manufacturer Defect. Upon a malfunction or failure of Flock Hardware or Embedded Software (a “Defect”), Customer must notify Flock’s technical support team. In the event of a Defect, Flock shall make a commercially reasonable attempt to repair or replace the defective Flock Hardware at no additional cost to the Customer. Flock reserves the right, in its sole discretion, to repair or replace such Defect, provided that Flock shall conduct inspection or testing within a commercially reasonable time, but no longer than seven (7) business days after Customer gives notice to Flock.
8.2 Replacements. In the event that Flock Hardware is lost, stolen, or damaged, Customer may request a replacement of Flock Hardware at a fee according to the reinstall fee schedule (https://www.flocksafety.com/reinstall-fee-schedule). In the event that Customer chooses not to replace lost, damaged, or stolen Flock Hardware, Customer understands and agrees that (1) Flock Services will be materially affected, and (2) that Flock shall have no liability to Customer regarding such affected Flock Services, nor shall Customer receive a refund for the lost, damaged, or stolen Flock Hardware.
8.3 Warranty. Flock shall use reasonable efforts consistent with prevailing industry standards to maintain the Services in a manner which minimizes errors and interruptions in the Services and shall perform the Installation Services in a professional and workmanlike manner. Services may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by Flock or by third-party providers, or because of other causes beyond Flock’s reasonable control, but Flock shall use reasonable efforts to provide advance notice in writing or by e-mail of any scheduled service disruption.
8.4 Disclaimer. THE REMEDY DESCRIBED IN SECTION 8.1 ABOVE IS CUSTOMER’S SOLE REMEDY, AND FLOCK’S SOLE LIABILITY, WITH RESPECT TO DEFECTS.
FLOCK DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SERVICES. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES ARE PROVIDED “AS IS” AND FLOCK
DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT
LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. THIS DISCLAIMER ONLY
APPLIES TO THE EXTENT ALLOWED BY THE GOVERNING LAW OF THE STATE MENTIONED IN SECTION 10.6.
8.5 Insurance. Flock will maintain commercial general liability policies as stated in Exhibit B.
8.6 Force Majeure. Parties are not responsible or liable for any delays or failures in performance from any cause beyond their control, including, but not limited to acts of God, changes to law or regulations, embargoes, war, terrorist acts, pandemics (including the spread of variants), issues of national security, acts or omissions of third-party technology providers, riots, fires, earthquakes, floods, power blackouts, strikes, supply chain shortages of equipment or supplies, financial institution crisis, weather conditions or acts of hackers, internet service providers or any other third party acts or omissions.
9. LIMITATION OF LIABILITY; INDEMNITY
9.1 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY,
FLOCK, ITS OFFICERS, AFFILIATES, REPRESENTATIVES, CONTRACTORS AND
EMPLOYEES SHALL NOT BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY
SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED
THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCT LIABILITY, OR OTHER THEORY: (A) FOR LOSS OF REVENUE, BUSINESS OR BUSINESS INTERRUPTION; (B) INCOMPLETE, CORRUPT, OR INACCURATE DATA; (C) COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY; (D)
FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; (E) FOR ANY MATTER BEYOND FLOCK’S ACTUAL KNOWLEDGE OR
REASONABLE CONTROL INCLUDING REPEAT CRIMINAL ACTIVITY OR INABILITY TO CAPTURE FOOTAGE; OR (F) FOR ANY AMOUNTS THAT, TOGETHER WITH
AMOUNTS ASSOCIATED WITH ALL OTHER CLAIMS, EXCEED THE FEES PAID
AND/OR PAYABLE BY CUSTOMER TO FLOCK FOR THE SERVICES UNDER THIS AGREEMENT IN THE TWELVE (12) MONTHS PRIOR TO THE ACT OR OMISSION THAT
GAVE RISE TO THE LIABILITY, IN EACH CASE, WHETHER OR NOT FLOCK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS LIMITATION OF
LIABILITY OF SECTION ONLY APPLIES TO THE EXTENT ALLOWED BY THE GOVERNING LAW OF THE STATE REFERENCED IN SECTION 10.6.
NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE FOREGOING
LIMITATIONS OF LIABILITY SHALL NOT APPLY (I) IN THE EVENT OF GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT, OR (II) INDEMNIFICATION OBLIGATIONS.
9.2 Responsibility. Each Party to this Agreement shall assume the responsibility and liability for the acts and omissions of its own employees, officers, or agents, in connection with the performance of their official duties under this Agreement. Each Party to this Agreement shall be liable for the torts of its own officers, agents, or employees.
9.3 Flock Indemnity. Flock shall indemnify and hold harmless Customer, its agents and employees, from liability of any kind, including claims, costs (including defense) and expenses, on account of: (i) any copyrighted material, patented or unpatented invention, articles, device or appliance manufactured or used in the performance of this Agreement; or (ii) any damage or injury to property or person directly caused by Flock’s installation of Flock Hardware, except for where such damage or injury was caused solely by the negligence of the Customer or its agents, officers or employees. Flock’s performance of this indemnity obligation shall not exceed the fees paid and/or payable for the services rendered under this Agreement in the preceding twelve (12) months.
10. INSTALLATION SERVICES AND OBLIGATIONS
10.1 Ownership of Hardware. Flock Hardware is owned and shall remain the exclusive property of Flock. Title to any Flock Hardware shall not pass to Customer upon execution of this Agreement, except as otherwise specifically set forth in this Agreement. Except as otherwise expressly stated in this Agreement, Customer is not permitted to remove, reposition, re-install, tamper with, alter, adjust or otherwise take possession or control of Flock Hardware. Customer agrees and understands that in the event Customer is found to engage in any of the foregoing restricted actions, all warranties herein shall be null and void, and this Agreement shall be subject to immediate termination for material breach by Customer. Customer shall not perform any acts which would interfere with the retention of title of the Flock Hardware by Flock. Should Customer default on any payment of the Flock Services, Flock may remove Flock Hardware at Flock’s discretion. Such removal, if made by Flock, shall not be deemed a waiver of Flock’s rights to any damages Flock may sustain as a result of Customer’s default and Flock shall have the right to enforce any other legal remedy or right.
10.2 Deployment Plan. Flock shall advise Customer on the location and positioning of the Flock Hardware for optimal product functionality, as conditions and locations allow. Flock will collaborate with Customer to design the strategic geographic mapping of the location(s) and implementation of Flock Hardware to create a deployment plan (“Deployment Plan”). In the event that Flock determines that Flock Hardware will not achieve optimal functionality at a designated location, Flock shall have final discretion to veto a specific location, and will provide alternative options to Customer.
10.3 Changes to Deployment Plan. After installation of Flock Hardware, any subsequent requested changes to the Deployment Plan, including, but not limited to, relocating, re- positioning, adjusting of the mounting, removing foliage, replacement, changes to heights of poles will incur a fee according to the reinstall fee schedule located at (https://www.flocksafety.com/reinstall-fee-schedule). Customer will receive prior notice and confirm approval of any such fees.
10.4 Customer Installation Obligations. Customer is responsible for any applicable supplementary cost as described in the Customer Implementation Guide, attached hereto as Exhibit C (“Customer Obligations”). Customer represents and warrants that it has, or shall lawfully obtain, all necessary right title and authority and hereby authorizes Flock to install the Flock Hardware at the designated locations and to make any necessary inspections or maintenance in connection with such installation.
10.5 Flock’s Obligations. Installation of any Flock Hardware shall be installed in a professional manner within a commercially reasonable time from the Effective Date of this Agreement. Upon removal of Flock Hardware, Flock shall restore the location to its original condition, ordinary wear and tear excepted. Flock will continue to monitor the performance of Flock Hardware for the length of the Term. Flock may use a subcontractor or third party to perform certain obligations under this agreement, provided that Flock’s use of such subcontractor or third party shall not release Flock from any duty or liability to fulfill Flock’s obligations under this Agreement.
11. MISCELLANEOUS
11.1 Compliance With Laws. Parties shall comply with all applicable local, state and federal laws, regulations, policies and ordinances and their associated record retention schedules, including responding to any subpoena request(s).
11.2 Severability. If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect.
11.3 Assignment. This Agreement is not assignable, transferable or sublicensable by either Party, without prior consent. Notwithstanding the foregoing, either Party may assign this Agreement, without the other Party's consent, (i) to any parent, subsidiary, or affiliate entity, or (ii) to any purchaser of all or substantially all of such Party's assets or to any successor by way of merger, consolidation or similar transaction.
11.4 Entire Agreement. This Agreement, together with the Order Form(s), the reinstall fee schedule (https://www.flocksafety.com/reinstall-fee-schedule), and any attached exhibits are the complete and exclusive statement of the mutual understanding of the Parties and supersedes and cancels all previous or contemporaneous negotiations, discussions or agreements, whether written and oral , communications and other understandings relating to the subject matter of this Agreement, and that all waivers and modifications must be in a writing signed by both Parties, except as otherwise provided herein. None of Customer’s purchase orders, authorizations or similar documents will alter the terms of this Agreement, and any such conflicting terms are expressly rejected. Any mutually agreed upon purchase order is subject to these terms. In the event of any conflict of terms found in this Agreement or any other terms and conditions, the terms of this Agreement shall prevail. Customer agrees that Customer’s purchase is neither contingent upon the delivery of any future functionality or features nor dependent upon any oral or written comments made by Flock with respect to future functionality or feature.
11.5 Relationship. No agency, partnership, joint venture, or employment is created as a result of this Agreement and Parties do not have any authority of any kind to bind each other in any respect whatsoever. Flock shall at all times be and act as an independent contractor to Customer.
11.6 Governing Law; Venue. This Agreement shall be governed by the laws of the state in which the Customer is located. The Parties hereto agree that venue would be proper in the chosen courts of the State of which the Customer is located. The Parties agree that the United Nations Convention for the International Sale of Goods is excluded in its entirety from this Agreement.
11.7 Special Terms. Flock may offer certain special terms which are indicated in the proposal and will become part of this Agreement, upon Customer’s prior written consent and the mutual execution by authorized representatives (“Special Terms”). To the extent that any terms of this Agreement are inconsistent or conflict with the Special Terms, the Special Terms shall control.
11.8 Publicity. Flock has the right to reference and use Customer’s name and trademarks and disclose the nature of the Services in business and development and marketing efforts.
11.9 Feedback. If Agency or Authorized End User provides any suggestions, ideas, enhancement requests, feedback, recommendations or other information relating to the subject matter hereunder, Agency or Authorized End User hereby assigns to Flock all right, title and interest (including intellectual property rights) with respect to or resulting from any of the foregoing.
11.10 Export. Customer may not remove or export from the United States or allow the export or re-export of the Flock IP or anything related thereto, or any direct product thereof in violation of any restrictions, laws or regulations of the United States Department of Commerce, the United States Department of Treasury Office of Foreign Assets Control, or any other United States or foreign Customer or authority. As defined in Federal Acquisition Regulation (“FAR”), section
2.101, the Services, the Flock Hardware and Documentation are “commercial items” and according to the Department of Defense Federal Acquisition Regulation (“DFAR”) section 252.2277014(a)(1) and are deemed to be “commercial computer software” and “commercial computer software documentation.” Flock is compliant with FAR Section 889 and does not contract or do business with, use any equipment, system, or service that uses the enumerated banned Chinese telecommunication companies, equipment or services as a substantial or essential component of any system, or as critical technology as part of any Flock system. Consistent with DFAR section 227.7202 and FAR section 12.212, any use, modification, reproduction, release, performance, display, or disclosure of such commercial software or commercial software documentation by the U.S. Government will be governed solely by the terms of this Agreement and will be prohibited except to the extent expressly permitted by the terms of this Agreement.
11.11 Headings. The headings are merely for organization and should not be construed as adding meaning to the Agreement or interpreting the associated sections.
11.12 Authority. Each of the below signers of this Agreement represent that they understand this Agreement and have the authority to sign on behalf of and bind the Parties they are representing.
11.13 Conflict. In the event there is a conflict between this Agreement and any applicable statement of work, or Customer purchase order, this Agreement controls unless explicitly stated otherwise.
11.14 Public Disrepute. In the event Customer or its employees become the subject of an indictment, arrest, public disrepute, contempt, scandal or behaves in a manner that, in the reasonable judgment of Flock, reflects unfavorably upon Flock, and/or their officers or principals, licensees, such act(s) or omission(s) shall constitute a material breach of this Agreement and Flock shall, in addition to any other rights and remedies available to it hereunder, whether at law or in equity, have the right to elect to terminate this Agreement.
11.15 Notices. All notices under this Agreement will be in writing and will be deemed to have been duly given when received, if personally delivered; when receipt is electronically confirmed, if transmitted by email; the day after it is sent, if sent for next day delivery by recognized overnight delivery service; and upon receipt, if sent by certified or registered mail, return receipt requested.
FLOCK NOTICES ADDRESS:
1170 HOWELL MILL ROAD, NW SUITE 210
ATLANTA, GA 30318
ATTN: LEGAL DEPARTMENT
EMAIL: [email protected]
Customer NOTICES ADDRESS:
ADDRESS:
ATTN:
EMAIL:
EXHIBIT B
INSURANCE
Required Coverage. Flock shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the services under this Agreement and the results of that work by Flock or its agents, representatives, employees or subcontractors. Insurance shall be placed with insurers with a current A. M. Best rating of no less than “A” and “VII”. Flock shall obtain and, during the term of this Agreement, shall maintain policies of professional liability (errors and omissions), automobile liability, and general liability insurance for insurable amounts of not less than the limits listed herein. The insurance policies shall provide that the policies shall remain in full force during the life of the Agreement.
Types and Amounts Required. Flock shall maintain, at minimum, the following insurance coverage for the duration of this Agreement:
(i) Commercial General Liability insurance written on an occurrence basis with minimum limits of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate for bodily injury, death, and property damage, including personal injury, contractual liability, independent contractors, broad-form property damage, and product and completed operations coverage;
(ii) Umbrella or Excess Liability insurance written on an occurrence basis with minimum limits of Ten Million Dollars ($10,000,000) per occurrence and Ten Million Dollars ($10,000,000) in the aggregate; (iii) Professional Liability/Errors and Omissions insurance with minimum limits of Five Million Dollars ($5,000,000) per occurrence and Five Million Dollars ($5,000,000) in the aggregate; (iv) Commercial Automobile Liability insurance with a minimum combined single limit of One Million Dollars ($1,000,000) per occurrence for bodily injury, death, and property coverage, including owned and non-owned and hired automobile coverage; and
(v) Cyber Liability insurance written on an occurrence basis with minimum limits of Five Million Dollars ($5,000,000).
City Council Staff Report
DATE: JUNE 7, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: FINANCE DEPARTMENT
INFORMATION TECHNOLOGY DIVISION
DISTRICT: ALL
SUBJECT: APPROVE FIRST AMENDMENT TO AGREEMENT WITH TRUE
POINT SOLUTIONS, LLC TO PROVIDE IMPLEMENTATION
SERVICES FOR ACCELA LAND USE, PLAN REVIEW, PERMITTING,
AND INSPECTION TRACKING SYSTEM FOR AN ADDITIONAL
AMOUNT OF $1 50,000 AND A NOT TO EXCEED AMOUNT OF
$450,000 FOR A THREE (3) YEAR TERM THROUGH DECEMBER31,
2024.
ISSUE
Approve First Amendment to Agreement with True Point, LLC to provide implementation services for Accela land use, plan review, permitting, and inspection tracking system for an additional amount of $1 50,000 and a not to exceed amount of $450,000 for a three (3) year term through December 31, 2024.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve First Amendment to Agreement A-7699 with True Point Solutions, LLC , to provide implementation services for Accela Land Use, Plan Review, Permitting, and Inspection Tracking System for an additional amount of $150,000 and a not to exceed amount of $450,000 for a term of 3 years through December 31, 2024; and
2. Authorize the City Manager or her designee to execute the First Amendment to Agreement A-7699 with TruePoint Solutions, LLC , including making minimal and/or non-substantive changes.
BACKGROUND
In an effort to streamline and improve the City’s ability to process, review, and track online permit applications and payments , the City released a Request for Proposal (RFP) in February 2021 to solicit proposals for a Land Use, Plan Review, Permitting and Inspection Tracking software system. One of the primary goals is to utilize web-based technology to improve inter departmental collaboration, strengthen the City’s business -friendly Report to Mayor and City Council
Re: Approve First Amendment to Agreement A-7699 with True Point Solutions, LLC June 7, 2023
environment, and provide an enhanced overall customer experience for those applying for permits in the City of Palmdale.
The RFP solicitation period closed in March 2021. A notice of intent to award was sent out in August 2021, and an agreement with TruePoint, LLC was entered into in December 2021. The project was kicked off in early 2022. Staff have been working with the consultants at TruePoint throughout the year to build the environment to City specifications, convert data, perform testing procedures, and update internal City procedures.
DISCUSSION
The Accela permitting system is scheduled to launch in late July 2023. Once launched, technical support will be needed to ensure a smooth transition for both applicants and City staff. In addition to technical support, the City will work with TruePoint to host a series of workshops to provide training to the public, and to assist with the application process in the new Accela system. The aforementioned support and trainings were not included as part of the initial scope of work; however, these services are essential in ensuring a smooth transition in the weeks and months following go-live. The funds being requested will cover 880 hours of technical support over the term of the agreement, through December 31, 2024. The City will only be charged for the hours it utilizes, and there are no penalties if the full $150,000 budget allocation is not used.
FISCAL IMPACT
$150,000; funds are budgeted and available. The City will only be charged for services rendered, and there are no penalties if the City does not utilize the full number of hours allotted in the agreement.
$45,000 to be transferred from account 10122001-721200 to the project account 15316001-721610. The remaining amount of $105,000 is budgeted and available in account 15316001-721610.
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
A. Seek innovative, cost-effective, customer-focused methods of service delivery.
B. Implement and administer environmentally sustainable programs.
Prepared by: Rene Montano, IT Analyst I
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 Report to Mayor and City Council
Re: Approve First Amendment to Agreement A-7699 with True Point Solutions, LLC June 7, 2023
ATTACHMENTS
Agreement A-7699, Amendment #1
1ST AMENDMENT TO AGREEMENT A-7699
BETWEEN THE CITY OF PALMDALE AND TRUEPOINT SOLUTIONS, LLC
This 1st Amendment to Agreement No. A-7699 (“Agreement”) is made and entered into by and between the City of Palmdale (hereinafter called “CITY”) and TRUEPOINT SOLUTIONS, LLC (hereinafter called "CONTRACTOR"). This Contract shall become effective on the date of the last signatory.
WHEREAS, on December 3, 2021 ("Original Agreement") the CITY and CONTRACTOR entered into an agreement to provide:
Implementation of Land Use, Plan Review, Permitting and Inspection Tracking System, Accela; approximately 1700 service hours.
WHEREAS, the parties desire to amend the Original Agreement to:
Provide additional support as needed, including, but not limited to:
- 880 hours of support service
- On-site & remote support / travel expenses, if applicable
NOW THEREFORE, the parties agree as follows:
The compensation identified in Section 5 is amended to increase the total price of the Agreement by One Hundred Fifty Thousand Dollars ($150,000), not to exceed the amount of Four Hundred Fifty Thousand dollars ($450,000).
All other terms and conditions of the Original Agreement not amended herein, remain in full force and effect.
1-2Concord - Document ID: MjMzYmI2MjgtOW
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:
TRUEPOINT SOLUTIONS, LLC:
Ronda Perez
City Manager
Kent Johnson
CEO
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38300 Sierra Hwy., Suite D
Palmdale, CA 93550
ADDRESS FOR NOTICE:
TRUEPOINT SOLUTIONS, LLC
3262 Penryn Road, Suite 100B
Loomis, CA 95650
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
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Record of Signing
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City Council Staff Report
DATE: JUNE 7, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
PLANNING DIVISION
DISTRICT: ALL
SUBJECT: APPROVAL OF 36 FIREWORKS BOOTH PERMITS FOR NON -
PROFIT ORGANIZATIONS
ISSUE
Approval of 36 fireworks booth permits for non-profit organizations.
RECOMMENDATION
Staff recommends that the City Council approve 36 fireworks booth permits for non-profit organizations within Table 1.
BACKGROUND
Prior to each Fourth of July, the City processes applications to permit the sale of Safe and Sane Fireworks . Pursuant to the provisions of Palmdale Municipal Code (PMC) Section 8.04.490, all proposed fireworks booths must be operated by non -profit organizations for fundraising purposes. In order to qualify, each organization must:
• Be a non -profit organization primarily for youth, veteran, patriotic, welfare, civic betterment, or charitable purposes;
• Have its principal meeting place in the City , or draw more than 50 percent of its active members from within the incorporated City;
• Have been organized and established in the area that is within the City for at least 12 months preceding the filing; and,
• Have at least 20 members.
As specified within PMC Section 8.04.500.E, one booth is allowed for every 3,000 residents. Based upon the current population estimate of 167,398 obtained from the State of California Department of Finance, a maximum of 55 booths may be approved. As depicted within T able 1, 3 6 booths have been requested by qualifying non -profit organizations. As specified within PMC Section 17.98.020.E(1)(a), fireworks booths are allowed in any zone provided that the site is:
• Not residentially developed;
Report to Mayor and City Council
Re: Approval of Fireworks Booths
June 7, 2023
• 200 feet from any residential use; and,
• Not located in a very high fire hazard severity zone.
DISCUSSION
Of the 36 applications submitted for review, 31 applications are from non-profit groups renewing from last year. Five applications are from new organizations that qualify and have met the criteria referenced above.
Table 1 contains a list of the proposed booth locations and operators. The Fireworks Booth Location Map is included as Attachment 1 of this report.
TABLE 1 – PROPOSED BOOTH LOCATIONS AND OPERATORS
Organization Booth Location
1. Adorable Baby’s Jump Start 1301 West Rancho Vista Boulevard (in the parking lot south of Rockin’ Jump
Trampoline)
2. American Indian Little League 39626 10 th Street West (south of Applebee’s)
3. Antelope Valley Desert Divers, Inc. 5038 West Avenue N
4. Antelope Valley Youth Athletics, Inc. 1123 West Rancho Vista Boulevard (10th Street West entrance)
5. Bet-El Casa De Dios 39700 30th Street West (Marie Kerr Park)
6. Community Development Center
USA
Northeast corner of 40 th Street East and
Avenue S
7. Cornerstone Apostolic Church of
Antelope Valley
3053 West Rancho Vista Boulevard (El
Pollo Loco parking lot)
8. Crosswind Community Church 41337 10th Street West (church parking lot)
9. DDE Academy, Inc. 37716 55th Street East (Domenic
Massari Park)
10. G.O. Resources, Inc. 120 West Palmdale Boulevard
11. Great Commission Community Dirt lot on the west side of Sierra Highway, south of Rancho Vista
Boulevard
12. Help for Heroes 37951 47th Street East
13. Highland High School Instrumental
Music Booster Club
2535 East Avenue S (Stater Bros
parking lot)
14. Iglesia Emmanuel Antelope Valley 2419 East Avenue S (east side of parking lot near 25th Street East)
15. Kingdom Builders 440 East Palmdale Boulevard (parking lot between Vallarta and Chevron)
Report to Mayor and City Council
Re: Approval of Fireworks Booths
June 7, 2023
TABLE 1 – PROPOSED BOOTH LOCATIONS AND OPERATORS - CONTINUED Organization Booth Location
16. Kiwanis Club of Palmdale 1803 East Palmdale Boulevard (Vallarta parking lot)
17. Knight High School Wrestling Team
Booster Club
5100 East Avenue S (Yellen Park)
18. LACOSEPA 3005 E Palmdale Boulevard
19. Lions Club of Palmdale 2049 East Palmdale Boulevard
20. Littlerock High School Band
Boosters
4644 East Avenue S (southwest corner
of Avenue S and 47th Street East)
21. Marine Corps League, Antelope
Valley Detachment 930
37218 47th Street East (Stater Bros
parking lot)
22. Next Dimension Ministries Church SWC of Sierra Highway and Avenue S
23. Nueva Vida En Cristo Antelope
Valley
2534 East Avenue S (Del Taco parking
lot)
24. Palmdale American Legion Post
NO 348
856 West Palmdale Boulevard
25. Palmdale Chamber of Commerce 40130 10th Street West (Walmart parking lot near Dragon Garden)
26. Palmdale Elks Lodge #2027 39940 10th Street West (Sam’s Club parking lot, east of Panda Express)
27. Palmdale Repertory Theatre 37140 47th Street East (Walmart parking lot)
28. Palmdale Vineyard 41520 10th Street West
29. St. Mary’s Catholic Church 4343 Pearblossom Highway (dirt lot west of 45th Street East)
30. St. Stephen’s of the Valley Lutheran
Church
38727 Tierra Subida Avenue
(Albertson’s parking lot)
31. The Highland Gridiron Booster Club 266 East Palmdale Boulevard
32. The Palmdale Aerospace Academy
PTSO
3875 West Rancho Vista Boulevard
(Neighborhood Walmart parking lot)
33. US Naval Sea Cadets Corps 39212 10th Street West (parking lot near O’Reilly Auto Parts)
34. Victory Outreach 37419 25th Street East
35. Water of Life of Antelope Valley,
Inc.
39522 10th Street West (parking lot
south of Sharky’s Woodfired Mexican
Grill)
36. Word of Life Outreach Ministries,
Inc.
5645 East Avenue T (dirt lot north of
Avenue T)
Report to Mayor and City Council
Re: Approval of Fireworks Booths
June 7, 2023
FISCAL IMPACT
The fiscal impact to the City’s General Fund will be $32,708.74 in revenue consisting of $903.54 for each of the 31 renewing organizations and $939.80 each for the five new organizations. The fee includes $518 per organization for fireworks enforcement. In addition, proceeds from fireworks sales will benefit charitable and non-profit organizations within the community.
STRATEGIC PLAN
Goal IV: Maintain a desirable community where everyone wants to live, work and play.
D. Develop and maintain diverse programs and events that inspire growth, pride, and lifelong learning.
Prepared by: Leslie Andrews, Business License 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 ATTACHMENT:
1. Fireworks Booth Location Map
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110TH STREET EAST
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60TH STREET EAST
50TH STREET EAST
40TH STREET EAST
20TH STREET EAST
30TH STREET EAST
AVENUE L
COLUMBIA WAY / AVENUE M
AVENUE N
AVENUE O
AVENUE P
AVENUE Q
PALMDALE BLVD
AVENUE S
AVENUE TPEARBLOSSOM HIGHWAY
70TH STREET WEST
60TH STREET WEST
50TH STREET WEST
30TH STREET WEST
AVENUE P
SIERRA HIGHW
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DIVISION STREET
10TH STREET WEST
20TH STREET WEST
AVENUE N
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CALIFORNIA
120TH STREET EAST
80TH STREET WEST
90TH STREET WEST
10TH STREET EAST
40TH STREET WEST
AVENUE M
AQUEDUCT
AMARGOSA
CREEK
BARREL SPRINGS
RD 47TH STREET EAST
25TH STREET EAST
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DISCLAIMER: CONFIDENTIALITY NOTICE.
THE CITY OF PALMDALE ASSUMES NO LIABILITY FOR DAMAGES THAT
MAY ARISE FROM THE USE OF INFORMATION RETRIEVED FROM THIS MAP. THE MAP AND ASSOCIATED DATA ARE PROVIDED WITHOUT
WARRANTY OF ANY KIND, EITHER EXPRESS, OR IMPLIED, INCLUDING
BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANT- ABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE PUBLIC
SHOULD NOT MAKE BUSINESS OR PERSONAL DECISIONS BASED ON
THE MAP BEFORE VALIDATING DATA WITH THE CITY OF PALMDALE OR OTHER LOCAL, COUNTY, STATE OR FEDERAL AGENCIES.
THE CITY OF PALMDALE HAS MADE EVERY EFFORT TO ENSURE THAT THIS MAP IS CORRECT; NEVERTHELESS, SOME INFORMATION MAY NOT BE ENTIRELY ACCURATE.
LACO LACO
LACO
LA
CO LACO
0 1 2 3 40.5
Miles
µ
City of Palmdale
Fireworks Vendors
( 2023 )
) Fireworks Booth Location City of Palmdale
LACO: Unincorporated LA County Pocket
Data Source: Copyright 2022. All rights reserved. The City of Palmdale owns and licenses geographic data from a variety of sources. The information contained herein is the proprietary property of the following owners supplied under license and may not be reproduced except as licensed by those owners: City of Palmdale, Los Angeles County Assessor's Office, Environmental Systems Research Institute (ESRI) Data & Maps, United States Geological Survey (USGS), California Department of Forestry and Fire Protection (FRAP) & Tele Atlas (courtesy of the Southern California Association of Governments (SCAG)).
O F F I C E O F T H E E C O N O M I C A N D C O M M U N I T Y
D E V E L O P M E N T D E P A R T M E N T
Safe and Sane Fireworks 2023
Presented by Leslie Andrews, Business License Coordinator Requirements to Operate a Fireworks Booth -
PMC 8.04.490
1. Must be a non-profit organization;
2. Have its principal meeting place in the City, or draw more than 50 percent of its active members from within the incorporated City;
3. Have been organized and established in the area that is within the City for at least 12 months preceding the filing; and
4. Have at least 20 members.
How many booths are allowed?
PMC 8.04.500.E
• One booth is allowed for every 3,000 residents.
• Current population estimate 167,398 (State of California Department of Finance). • Maximum of 55 booths may be approved.
36 fireworks booths have been requested by
qualifying non-profit organizations for 2023
• 36 applications submitted for review
• 31 applications are renewals from last year
• 5 applications are new qualifying organizations
Reviewing Applications – all organizations
must have the following items to qualify:
Fireworks Permit Application
Entity Status Letter – Franchise Tax Board
Roster of group members
Seller’s Permit
FW-1 Form – Report of disbursements; itemization of where the net proceeds for the prior year’s sales were spent.
Aerial Map of Firework Booths for 2023
Know the difference between
Safe and Sane and illegal fireworks
• Safe and Sane usually means
they do not fly or explode. • Illegal fireworks are any fireworks that do not bear the California Fire Marshal
"Safe and Sane“ designation. Any
firework that shoots up in the air or
explodes is illegal anywhere in the City
of Palmdale.
• More than half of the money collected
from permits goes to enforcement of
illegal fireworks.
City Council Staff Report
DATE: JUNE 7, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS
ENGINEERING DIVISION
DISTRICT: 1 AND 2
SUBJECT: ADOPT RESOLUTION NO. CC 2023-026, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE OF INTENTION TO
CONTINUE ASSESSMENTS FOR FISCAL YEAR 2023/2024,
PRELIMINARILY APPROVING THE ANNUAL ENGINEER'S REPORT
AND PROVIDING FOR NOTICE OF HEARING FOR THE CITY OF
PALMDALE DRAINAGE BENEFIT ASSESSMENT DISTRICTS NO. 1
AND NO. 2006-02
ISSUE
Adopt Resolution No. CC 2023-026, a Resolution of the City Council of the City of Palmdale of intention to continue assessments for Fiscal Year 202 3/2024, preliminarily approving the annual Engineer's Report and providing for notice of hearing for the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02.
RECOMMENDATION
Staff recommends the City Council adopt Resolution No. CC 2023-026 providing intention to continue assessments, to preliminarily approve the annual Engineer’s Report, and to provide notice of the annual public hearing 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, 2007, 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 a uthorized 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 2023-026
June 7, 2023
any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.
DISCUSSION
On May 3, 2023, the City Council took the first step to continue assessing the levies for Fiscal Year 2023/2024 by adopting Resolution No. CC 2023-024, which directed NBS, as the Engineer of Work, to prepare the annual Engineer’s Report for the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02 for Fiscal Year 2023/2024.
This Resolution No. CC 2023-026 is the second step which provides intention to continue the assessments for Fiscal Year 2023/2024, preliminarily approves the annual Engineer’s Report prepared by NBS, and establishes the date, time, and place of a public hearing to receive testimony regarding the continued assessments to be placed on LA County tax rolls.
The third and final step will be the public hearing regarding the final approval of the annual Engineer’s Report and the ordering of the levies for Fiscal Year 2023/2024 that will be held by the City Council on July 12, 2023.
The annual Engineer’s Report contains information required by the Benefit Assessment Act of 1982 and Article XIIIC and XIIID of the California Constitution (Proposition 218) determining the special benefit to property owners within the Drainage Benefit Assessment Districts No. 1 and No. 2006-02, identifying the methodology for assigning assessments to each parcel, and estimating the cost for improvements. The annual Engineer’s Report establishes the important foundation and justification for the continued collection of the assessments for Fiscal Year 2023/2024.
FISCAL IMPACT
The annual Engineer’s Report indicates the proposed assessments for the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02 and is included as an attachment.
Based on the annual CPI increase of 5.10%, the total proposed assessments for both Districts for Fiscal Year is $146,102.39.
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.
Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-026
June 7, 2023
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 2023-026
2.Fiscal Year 2023/24 Engineer’s Report For: Drainage Benefit Assessment Districts
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2023-026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
OF INTENTION TO CONTINUE ASSESSMENTS FOR FISCAL YEAR
2023/2024, PRELIMINARILY APPROVING THE ANNUAL ENGINEER'S
REPORT AND PROVIDING FOR NOTICE OF HEARING FOR THE CITY OF PALMDALE 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 “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); and
WHEREAS, NBS has been designated as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and ordered to prepare an Engineer’s Report in accordance with Act and Article XIIID of the California Constitution; and WHEREAS, the Engineer of Work has filed an Engineer’s Report (the “Report”) with the City Clerk, copies of which have been submitted to this City Council, which Report contains the following: (a) a calculation of the portion of the improvements to be provided by the Districts that constitute a special benefit to the parcels in the Districts; (b) a methodology for assigning assessments to individual parcels; (c) a listing of each lot or parcel of property that would be subject to the proposed assessment, including public parcels; (d) the estimate of cost for the improvements; and (e) the amount of the proposed assessment for each lot or parcel for the Fiscal Year 2023/2024.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. It is the intention of this City Council to continue to levy and collect assessments within the Districts for Fiscal Year 2023/2024.
SECTION 3. The Report, in the form on file with the City Clerk, is hereby received, filed, and preliminarily approved.
Resolution No. CC 2023-026
SECTION 4. The proposed improvements to be made in the Districts 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.
SECTION 5. The general location and boundaries of the existing Districts are shown on maps on file in the office of the Director of Public Works, are incorporated herein by reference, and are open to public inspection. The designation of the Districts is as follows: Drainage Benefit Assessment District No. 1 and Drainage Benefit Assessment District No. 2006-02.
SECTION 6. Reference is hereby made to the Report for a full and detailed description of the improvements, the boundaries of the Districts and the assessments upon assessable lots and parcels of land within the Districts.
SECTION 7. The assessments are subject to an annual adjustment tied to the annual change in the Consumer Price Index for the Los Angeles Area as of February of each succeeding year (“CPI”). The change in the CPI from February 2022 to February 2023 was 5.10%, therefore, the maximum authorized assessment rates for Fiscal Year 2023/2024 are the previous year maximum authorized assessment rate for each District increased by 5.10%. The amount of the assessments proposed does not exceed the authorized amount.
SECTION 8. A public hearing regarding the proposed assessments for the Districts shall be held by the City Council on July 12, 2023 at 5:00 p.m. or as soon thereafter as the matter may be heard in the City Council Chambers located at 38300 Sierra Highway, Suite B, Palmdale, California.
SECTION 9. The City Clerk is hereby authorized and directed to cause a notice of the hearing for the continuation of the assessments for the Districts to be given by publishing a notice once, at least fourteen (14) days prior to the date of the hearing above specified, in a newspaper circulated in the Districts.
SECTION 10. The City Clerk shall certify to the adoption of this resolution.
Resolution No. CC 2023-026
PASSED, APPROVED and ADOPTED this 7th day of June, 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 7 th day of June, 2023 by the following roll call vote:
AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT:___________________________ Date: ______________________________ _____________________________ Rochelle Scott, Acting City Clerk
nbsgov.com
Prepared by:
Corporate Headquarters
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
Toll free: 800.676.7516
Fiscal Year 2023/24 Engineer’s Report For:
Drainage Benefit Assessment Districts
May 2023
TABLE OF CONTENTS
1. Engineer’s Letter ............................................................................................................. 1
2. Introduction ................................................................................................................... 2 Background .............................................................................................................. 2 Process for Annual Assessment .............................................................................. 2 Legislative Context .................................................................................................. 3
3. Plans and Specifications .................................................................................................. 6
4. Estimate of Costs ............................................................................................................ 7
5. Method of Apportionment.............................................................................................. 9 Special Benefit ......................................................................................................... 9 General Versus Special Benefit ............................................................................. 10 Quantification General Benefit ............................................................................. 10 Method of Assessment.......................................................................................... 11 Cost of Living Inflator ............................................................................................ 12 Fiscal Year 2023/24 Maximum Assessment .......................................................... 13 Duration of Assessment ........................................................................................ 13 Appeals and Public Hearing ................................................................................... 13
6. Assessment Diagram ..................................................................................................... 14
7. Assessment Roll ............................................................................................................ 15
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 1
1. ENGINEER’S LETTER
WHEREAS, the City Council of the City of Palmdale (the “City”), State of California, under the Benefit Assessment Act of 1982 (the “Act”), directed NBS to prepare and file the Annual Engineer’s Report for the Drainage Benefit Assessment District No. 1 and No. 2006-02 (the “Districts”) for Fiscal Year 2023/24, in accordance with Article 4 of Chapter 6.4 of the Act and Article XIII D of the California Constitution. The report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the administration, maintenance, operations and servicing of the improvements for Fiscal Year 2023/24, the diagram for the Districts, showing the area and properties to be assessed, and assessing the net amount upon the assessable lots and/or parcels within the Districts in proportion to the special benefit received.
NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation and servicing of said improvements to be paid by the assessable real property within the Districts in proportion to the special benefit received.
District Parcels
EDUs per
District(1)
FY 2023/24
Assessment
Amount
Proposed
Assessment
Rate per EDU
Maximum
Assessment
Rate Per EDU
DBAD No. 1 1,417 1,417.00 $73,372.26 $51.78 $51.78
DBAD No. 2006-02 44 6,841.99 72,730.13 10.63 54.82
Totals: 1,461 8,258.99 $146,102.39
(1) Equivalent Dwelling Unit. See “Method of Assessment” for explanation of EDU apportionment.
I, the undersigned, respectfully submit this Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed and levied in accordance with the assessment methodology adopted, approved and ordered by the City Council of the City of Palmdale at the time of each District formation.
____________________________________________
John G. Egan, P. E.
Assessment Engineer
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 2
2. INTRODUCTION
Background
The City provides maintenance and servicing of certain publicly owned stormwater detention and drainage basins throughout the City. In order to fund the maintenance of these projects and improvements, the City has formed two Drainage Benefit Assessment Districts covering an area of approximately 6,600 acres and approximately 1,470 parcels. The Districts have been formed and the levies have been made pursuant to Section 54703 et seq. of the California Government Code, commonly known as the Benefit Assessment Act of 1982, and Article XIII D of the California Constitution (the “Article XIII D”).
Drainage Benefit Assessment District No. 1 (“DBAD No. 1”) (Anaverde Master Planned Community Avenue S at Approximately 20th Street West) is located within the Anaverde Master Planned Community at Avenue S and approximately 20th Street West. Drainage Benefit Assessment District No. 2006-02 (“DBAD No. 2006-02”) (Ritter Ranch Master Planned Community, Phase I through phase V, South of Elizabeth Lake Road at Approximately 40th Street West) is located within the Ritter Ranch Master Planned Community along Elizabeth Lake Road and west of the Anaverde Community.
Drainage Benefit Districts
District
Tract/Parcel
Map Land Use General Location
DBAD No. 1 Anaverde Residential 20th Street West and Avenue S DBAD No. 2006-02 Ritter Ranch Residential/
Commercial Elizabeth Lake Road and Ranch Center Drive
The Districts were formed in previous years; DBAD No. 1 was formed in 2004 and DBAD No. 2006-02 was formed in 2007. The 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 Districts was approved by the property owners (on May 12, 2004 and January 3, 2007, respectively) pursuant to mailed ballot elections conducted in accordance with the Act and Article XIII D.
Process for Annual Assessment
In each subsequent year for which the assessment will be continued, the City Council may direct an Engineer’s Report to be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the Districts.
The City Council may also annually adopt a resolution of intention which:
• Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein.
• Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 3 • Refers to the assessment district by its distinctive designation and indicates the general location of the district.
• Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• States whether the assessment is proposed to increase from the previous year.
If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the resolution of intention to be published.
Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218.
The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment.
Legislative Context
In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments.
Article XIII D imposes four basic substantive requirements on assessments1:
• All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
• The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit.
1 California Constitution Article XIII D Section 4.
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 4 Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below.
GENERAL BENEFIT
Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable.
The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011) (Golden Hills)2 clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” The Court of Appeal in Beutz v. County of Riverside (2010) (Beutz)3 quoted from the Legislative Analyst’s Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”
The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (SVTA) 4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors.
BENEFIT-BASED NOT COST-BASED
In Bonander v. Town of Tiburon (2009) (Tiburon)5, the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “Proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.”
The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.”
2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) 3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007)
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 5
PUBLIC PROPERTY
Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed.
The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017) (Manteca)6 clarified this issue by stating, “section 4, subdivision (a) of article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.”
IMPRECISION
The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits, however, it must be both defensible and consistently applied.”
6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017)
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 6
3. PLANS AND SPECIFICATIONS
The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the Districts defined in the Method of Assessment herein. Consistent with the Act, the improvements are generally described as follows:
Article XIII D of the California Constitution defines "maintenance and operation expenses" as, "the cost of rent, repair, replacement, rehabilitation, fuel, power, electrical current, care and supervision necessary to properly operate and maintain a permanent public improvement" (hereafter referred to as the “improvements”). The Districts funding includes, but is not limited to, the removal, repair, replacement and appurtenances, electrical energy, supplies, engineering and incidental costs relating to the maintenance and operation of the drainage improvements benefiting Districts parcels.
The improvements for DBAD No. 1 consist of five drainage basins (DB) located just outside of DBAD No. 1 along the southern boundary of DBAD No. 1, DB No. 1 (0.5 acres), DB No. 2 (0.5 acres), DB No. 5 (10.0 acres), DB No. 6 (3.0 acres), and DB No. 7 (4.0 acres). There is also one drainage basin located on the northern side of the California Aqueduct, DB No. 9 (15.0 acres).
The improvements for DBAD No. 2006-02 consist of 126,658 cubic feet of drainage basin/storm water improvements which are detailed in the Ritter Ranch Specific Plan on file with the City.
Plans and Specifications for the improvements of the Districts are voluminous and are not bound in this Engineer’s Report but by this reference are incorporated and made a part of this Engineer’s Report. The Plans and Specifications are on file in the office of the Director of Public Works where they are available for public inspection.7
7 As detailed in the Annual Engineer’s Report, City of Palmdale, Drainage Benefit Assessment Districts, Fiscal Year 2020/21 dated April 2020 and approved by City Council on June 2, 2020.
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 7
4. ESTIMATE OF COSTS
The Fiscal Year 2023/24 estimated costs of maintenance and servicing the improvements as described in the Plans and Specifications are summarized below. The full itemized budget for the Districts is voluminous and is not bound in this Engineer’s Report but by reference is incorporated and made a part of this Engineer’s Report. The itemized budget is on file in the Department of Public Works, where it is available for public inspection. The tables below show the budget summary for each District.
Drainage Benefit Assessment District No. 1 Budget
Description
Proposed
FY 2023/24 Costs
Direct Maintenance Costs $53,557.46
Other Costs 19,814.80
Estimated Expenditures $73,372.26
Fiscal Year 2023/24 Net Amount to be Assessed $73,372.26 Total Equivalent Dwelling Units (EDUs) 1,417.00
Total Parcels 1,417
Total Cost Per EDU $51.78
Maximum Rate per EDU $51.78
Drainage Benefit Assessment District No. 2006-02 Budget Description
Proposed
FY 2023/24 Costs
Direct Maintenance Costs $53,093.00
Other Costs 19,637.13
Estimated Expenditures $72,730.13
Fiscal Year 2023/24 Net Amount to be Assessed $72,730.13 Total Equivalent Dwelling Units (EDUs) 6,841.99
Total Parcels 44
Total Cost Per EDU $10.63
Maximum Rate per EDU $54.82
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 8 The following cost descriptions apply to the budget8:
DIRECT COSTS
Maintenance Costs. Labor, Material, and Equipment - Includes all labor, material, and equipment required to properly maintain and service the drainage structures, and appurtenant facilities within the district, including the maintenance and servicing of fencing, and drainage facilities. All improvements within the district will be maintained and serviced on a regular basis. City staff will determine the frequency and specific maintenance operations required.
Utilities. Gas and Electric - The furnishing of electricity and gas required for the operation of the drainage structures, and appurtenant facilities such as pumps.
Renovation. Repairs, which are unforeseen and not normally included in the yearly maintenance cost. This may include repair of damage due to vandalism, storms, and frost. Planned upgrades of the improvements that provide a direct benefit to the district could also be included in renovation costs.
OTHER COSTS
Personnel/Overhead. The cost of City staff for providing the coordination for maintenance and servicing, responding to public concerns, and levying and collecting assessments. This includes reimbursement for time spent by Finance and Accounting, the City Attorney, the City Manager, and the Public Works staff.
Consultants. The cost of contracting with professionals to provide services specific to the levy and annual administration.
Professional Fees. These are the costs of contracting with professionals for annual certification of all irrigation back flow devices, and for professionals to provide any additional administrative or engineering services specific to the district such as the cost to prepare and mail notices of the public meeting and hearing, or preparation of assessment diagrams.
County Administration Fees. The costs charged by the County to place the assessments on the property tax rolls.
8 As detailed in the Annual Engineer’s Report, City of Palmdale, Drainage Benefit Assessment Districts, Fiscal Year 2020/21 dated April 2020 and approved by City Council on June 2, 2020.
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 9
5. METHOD OF APPORTIONMENT
The following section includes an explanation of the benefits to be derived from the installation, maintenance and servicing of the improvements throughout each District, as well as a description of the assessment methodology used to apportion the total assessment to properties within each District.
Previous annual Engineer’s Reports were prepared by a different engineer of record and specific language from the prior year Engineer’s Report9 has been referenced to describe the Method of Apportionment within the following section of this report.10 The Districts consist of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this report and the parcels identified by the Assessor Parcel Numbers listed with the included levy roll. The parcel list includes all privately and publicly owned parcels with the boundaries. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the Districts over and above general benefits conferred on real property or to the public at large. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property.
Special Benefit
The improvements are expected to confer certain special benefits to parcels within each District. Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows:
Each and every parcel within the Districts receives a particular and distinct benefit from the improvements over and above general benefits conferred by the improvements.
First, all of the improvements were conditions of approval for the creation or development of the parcels. In order to create or develop the parcels, the City of Palmdale required the developer to install and guarantee the maintenance of storm water control structures and appurtenant facilities to serve the parcels. Therefore, each and every parcel within the Districts could not have been developed in the absence of the installation and promised maintenance of these facilities.
In addition, the improvements continue to confer a particular and distinct special benefit upon parcels within the Districts because of the nature of the improvements. The proper maintenance of storm water control and appurtenant facilities specially benefit parcels within the Districts by alleviating excess water during periods of rain. This allows individual parcels to be used to their fullest extent. All of the above- mentioned improvements contribute to a specific enhancement of each of the parcels within the Districts.
9 Annual Engineer’s Report, City of Palmdale, Drainage Benefit Assessment Districts, Fiscal Year 2020/21 dated April 2020 and approved by City Council on June 2, 2020 (“Prior Engineer’s Report”). 10 Method of Apportionment and subsections as detailed in the Annual Engineer’s Report, City of Palmdale, Drainage Benefit Assessment Districts, Fiscal Year 2020/21 dated April 2020 and approved by City Council on June 2, 2020.
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 10 General Versus Special Benefit
General benefit is an overall and similar benefit to the public at large resulting from the improvements to be maintained by the assessments levied. Within the Prior Engineer’s Report, the Engineer found that while the overwhelming majority of the benefit was special, there was a small amount of general benefit.
Specific language describing the relationship and proportion of Special Benefit versus General Benefit from the Prior Engineer’s Report has been included below:
In addition to the special benefits received by the parcels within the Districts, there are incidental general benefits conferred by the improvements.
The total benefits are thus a combination of the special benefits to the parcels within the Districts and the general benefits to the public at large and to adjacent property owners. The portion of the total drainage maintenance costs, which are associated with general benefits, will not be assessed to the parcels in the Districts, but will be paid from other City Funds.
Because the drainage facilities are located immediately adjacent to properties within the Districts and are maintained solely for the benefit of the properties within the Districts, any benefit received by properties outside of the Districts is merely incidental. It is estimated that the general benefit portion of the benefit received from the improvements for the Districts are less than one (1) percent of the total benefit. Nonetheless, the City has agreed to ensure that no property is assessed in excess of the reasonable cost of the proportional special benefit conferred on that property.
Quantification General Benefit
Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general.
General benefits cannot be funded by these assessments – the funding must come from other sources.
The maintenance and servicing of these improvements is also partially funded, directly and indirectly from other sources including the City of Palmdale, Los Angeles County, and the State of California. This funding comes in the form of grants, development fees, special programs, and general funds, as well as direct maintenance and servicing of facilities (e.g. curbs, gutters, streets, drainage systems, etc.). The funding from other sources more than compensates for general benefits, if any, received by the properties within the Districts.
STEP 1 – CALCULATE GENERAL BENEFIT
The general benefits from this assessment may be quantified as illustrated in the following table.
Calculation of General Benefit(1)
Benefit Factor
Relative
Weight
General
Benefit
Contribution
Relative
General
Benefit
Increased safety from flood control 10 25% 2.5
Creation of individual lots for development or approval of building permits 90 0% 0
100 2.5
Total Calculated General Benefit = 2.5%
(1) Per the Prior Engineer’s Report.
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 11 As a result, the City will contribute at least 2.5% of the total budget from sources other than the assessment. The following contribution offsets any general benefits from the assessment services.
STEP 2 – CALCULATE THE CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY Pursuant to the Prior Engineer’s Report, this general benefit contribution is the sum of the following components:
The City owns, maintains, rehabilitates and replaces curb and gutter along the border of the Districts’ improvements. This curb and gutter serves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the improvements. The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 1%.
The City owns and maintains a storm drainage system along the border of the Districts’ improvements. This system serves to prevent flooding and associated damage to the improvements and manage urban runoff including local pollutants loading from the improvements. The contribution from the City towards general benefit from the maintenance and operation of the local storm drainage system is conservatively estimated to be 1%.
The City owns and maintains local public streets along the border of the Districts’ improvements. These public streets provide access to the improvements for its enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 1%.
The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs and is conservatively estimated to contribute 25%.
Therefore, the total general benefit is conservatively quantified at 2.5% which is more than offset by the total non-assessment contribution towards general benefit of 28%.
Method of Assessment
The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. (As part of the transition between assessment engineers in 2010/2011, the existing methodology was reviewed and confirmed, and fundamentally maintained with some minor updates.) The precise language from the Prior Engineer’s Report has been provided below:
The Districts assessments are based on land use so that property owners are assessed in proportion to the benefits received. The land uses defined below are descriptive of the parcels expected to exist in the Districts. In the event there is a question regarding the land use designation of any parcel in the Districts the Director of Public Works will be responsible for administratively assigning one of the land uses listed below.
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 12 • Residential Single family residential parcels
• Condo Condominium or town home parcels
• Non-Res Non-residential parcels
• Exempt Parcels exempt by law from the assessment, or those parcels that do not benefit from the improvements
For DBAD No.1, in a single-family residential district, all the parcels in the Districts receive the same special benefit from the improvements due to their similarity in size and use and their similar proximity to the improvements. Therefore, each parcel is assessed an equal amount.
Storm drain improvements intercept storm runoff from the properties and convey the runoff through the area in a controlled manner providing flood protection. To properly serve development in the Districts the developers were required to provide storm water retention/detention basins within their projects.
Since storm runoff is a function of area the special benefit shall be apportioned to the respective developed lots or parcels in the Districts on a gross acreage basis net of arterial and collector streets. Within a residential tract, once the improvements have been allocated based on acreage as described above, it will be apportioned further based on the number of similar lots or parcels or multi-family units such that each lot or parcel or unit is assessed an equal amount. Within non- residential developments, the improvement costs shall be apportioned based on net parcel area.
Parcels in the Districts will be assigned a weighting factor known as an equivalent dwelling unit (EDU). This method is used to relate dissimilar land uses such as non-residential and residential.
Single family residential parcels are assigned an EDU of 1.0. The total number of EDUs in a District is divided into the total balance to levy for the district. This establishes the levy per EDU (rate). The rate is then multiplied by the parcel's individual number of EDUs to establish the parcel's levy amount.
The following table shows the EDU factors for each parcel type in the Districts.
Property Type Factor Basis
Developed/Vacant Residential 1.00 Parcel
Developed/Vacant Multi-Family 1.00 Unit
Developed/Vacant Non-Residential 6.00 Acre
Cost of Living Inflator
Annually, the assessment rates for the Districts may be increased, based upon the Consumer Price Index, All Urban Consumers, for the Los Angeles-Long Beach-Anaheim Area ("CPI”), as determined by the United States Department of Labor, Bureau of Labor Statistics, or its successor. The Assessment Engineer shall compute the percentage difference between the CPI for February of each year and the CPI for the previous February and shall then adjust the existing assessment rates by an amount not to exceed such percentage for the following fiscal year. Should the Bureau of Labor Statistics revise such index or discontinue the
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 13 preparation of such index, the Assessment Engineer shall use the revised index or a comparable system as approved by the City Council for determining fluctuations in the cost of living. 11 The annual calendar year percentage change in the CPI applicable to the Fiscal Year 2023/24 assessment is
5.10%, based on the increase of the February 2022 to February 2023 CPI of 5.10%.
Fiscal Year 2023/24 Maximum Assessment
The maximum authorized assessment rate for Fiscal Year 2023/24 is increased by 5.10% which equates to $51.78 per EDU for DBAD No. 1 and $54.82 per EDU for DBAD No. 2006-02. Each District’s budget, provided in the Estimate of Costs section of this Engineer’s Report, proposes assessments for Fiscal Year 2023/24 at the rate of $51.78 per EDU for DBAD No. 1, which is equal to the maximum authorized assessment rate, and $10.63 per EDU for DBAD No. 2006-02 which is less than the maximum authorized assessment rate.
Duration of Assessment
DBAD No. 1 was formed in 2004 and DBAD No. 2006-02 was formed in 2007. It is proposed that the assessments be continued every year thereafter, so long as the drainage improvements need to be maintained and improved, and the City requires funding from the assessments for these improvements in each District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment.
Appeals and Public Hearing
Any property owner who feels that the assessment levied on the subject property is in error, as a result of incorrect information being used to apply the foregoing method of assessment, may file a written appeal with the City of Palmdale Public Works Department. Any such appeal is limited to correction of an assessment during the then current fiscal year or, if before July 1, the upcoming fiscal year. Upon the filing of any such appeal, the City of Palmdale Public Works Engineer or his or her designee will promptly review the appeal and any information provided by the property owner. If the Public Works Engineer of the City of Palmdale or her or his designee finds that the assessment should be modified, the appropriate changes shall be made to the assessment roll. If any such changes are approved after the assessment roll has been filed with the County for collection, the City Engineer or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Engineer or her or his designee shall be referred to the Director of Public Works of the City of Palmdale, and the decision of the Director of Public Works of the City of Palmdale shall be final.
11 As detailed in the Annual Engineer’s Report, City of Palmdale, Drainage Benefit Assessment Districts, Fiscal Year 2020/21 dated April 2020 and approved by City Council on June 2, 2020.
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 14
6. ASSESSMENT DIAGRAM
The boundaries of the Districts are displayed on the following Assessment Diagram. The lines and dimensions of each lot or parcel within the Districts are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Engineer’s Report was prepared, and are incorporated by reference herein and made part of this Engineer’s Report.
City of Palmdale
Drainage Benefit Assessment Districts - Fiscal Year 2023/24 Engineer’s Report 15
7. ASSESSMENT ROLL
Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.
A listing of assessor’s parcels subject to the assessments for Fiscal Year 2023/24, along with the assessment amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.
The following table summarizes the Fiscal Year 2023/24 assessments for the Districts.
District Parcels
EDUs per
District
FY 2023/24
Maximum
Assessment Rate
Per EDU
FY 2023/24
Assessment
Rate Per EDU
FY 2023/24
Assessment
Amount
DBAD No. 1 1,417 1,417.00 $51.78 $51.78 $73,372.26
DBAD No. 2006-02 44 6,841.99 54.82 10.63 72,730.13
Totals: 1,461 8,258.99 $146,102.39
City Council Staff Report
DATE: JUNE 7, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS
ENGINEERING DIVISON
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2023-027, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE OF INTENTION TO
CONTINUE ASSESSMENTS FOR FISCAL YEAR 2023/2024,
PRELIMINARILY APPROVING THE ANNUAL ENGINEER'S
REPORTS AND PROVIDING FOR NOTICE OF HEARING 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 2023-027, a Resolution of the City Council of the City of Palmdale of intention to continue assessments for Fiscal Year 2023/2024, preliminarily approving the annual Engineer’s Reports and providing for notice of hearing 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 the City Council adopt Resolution No. CC 2023-027 providing intention to continue assessments, to preliminarily approve the annual Engineer’s Reports, and to provide notice of the annual public hearing 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 (all combined and 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.
Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-027
June 7, 2023
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.
Each year, the Landscaping and Lighting Act of 1972 requires that, in order to continue the annual levy of assessments, the Districts have a detailed annual Engineer’s Report approved by the City Council.
DISCUSSION
On May 3, 2023, the City Council took the first step to continue assessing the levies for Fiscal Year 2023/2024 by adopting Resolution No. CC 2023-025, which directed NBS, the Engineer of Work, to prepare the annual Engineer’s Reports for the Districts for Fiscal Year 2023/2024.
This Resolution No. CC 2023-027 is the second step which provides intention to continue the assessments for Fiscal Year 2023/2024, preliminarily approves the annual Engineer’s Reports prepared by NBS, and establishes the date, time, and place of a public hearing to receive testimony regarding the continued assessments to be placed on LA County tax rolls.
The third and final step will be the public hearing regarding the final approval of the annual Engineer’s Reports and the ordering of the levies for Fiscal Year 2023/2024 that will be held by the City Council on July 12, 2023.
The annual Engineer’s Reports contain information required by the Landscaping and Lighting Act of 1972 and Article XIIIC and XIIID of the California Constitution (Proposition 218) determining the special benefit to property owners within each district, identifying the methodology for assigning assessments to each parcel, and estimating the cost for improvements. The annual Engineer’s Reports establish the important foundation and justification for the continued collection of the assessments for Fiscal Year 2023/2024.
Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-027
June 7, 2023