Agenda packet, regular meeting, first session — Palmdale City Council, April 17, 2024 (part 2 of 2)

2. Adopt Resolution No. PFA 2024-001, a Resolution of the Board of Directors of the Palmdale Financing Authority providing for the release of a portion of the real property securing the Lease Agreement, dated as of October 1, 2014, by and between the Palmdale Financing Authority and the City of Palmdale, assigned to TPB Investments, Inc., a wholly-owned subsidiary of Western Alliance Bank, an Arizona Corporation, and authorizing and directing certain actions relating thereto.

BACKGROUND
In 2014, the City secured the refinancing of previously issued debt with a lease of property consisting of Marie Kerr Park and Dry Town Water Park (2014 Lease). Due to the reduction in the outstanding balance of the 2014 Lease, the City can release Marie Kerr Park from the 2014 Lease, leaving it secured only by Dry Town Water Park until its final maturity in September 2032.

DISCUSSION
The City issued Certificates of Participation in 2002 (2002 COPs) to finance various improvements, including Dry Town Water Park and improvements to Marie Kerr Park and Avenue S. In 2014, the City refinanced a portion of the 2002 COPs and secured the payments due with a lease of property consisting of Marie Kerr Park and Dry Town Water Park.

The original 2014 Lease was issued for $25.9 million. The current balance is $15.86 million. Due to the reduction in the outstanding balance, Marie Kerr Park can be released from the 2014 Lease, leaving only Dry Town Water Park as security for the lease payments. The lease payments will be paid in full by September 2032 and are currently paid from Park Assessment Funds.

Once Marie Kerr Park is released from the 2014 lease, it can be used to secure financing for other City leases in the future.

The 2014 Lease was entered into between the City and the Palmdale Financing Authority (Authority). Payments due to the Authority under the 2014 Lease were then assigned to the lender, TPB Investments (TPB). TPB has been succeeded by Western Alliance Business Trust (Western Alliance), a wholly-owned subsidiary of Western Alliance Bank. To accomplish this, the Bank has agreed to the release of Marie Kerr Park and the amendment of the existing financing documents.

Resolutions of the City and the Authority presented to the City Council and the Board of Directors approve the form of the following documents, which remove Marie Kerr Park from the description of the leased property:

Report to Mayor and City Council
Re: Adopt Resolutions CC 2024-030 and PFA 2024-001
April 17, 2024

Page 3 ends

 First Amendment to Site and Facility Lease between the City and the Authority;  First Amendment to Lease Agreement between the City and the Authority; and  First Amendment to Assignment Agreement between the Authority and the Western Alliance.

FISCAL IMPACT
$2,500; Western Alliance Bank will charge $2,500 for their legal counsel’s review of the amendments. Funds are budgeted and available for FY 2023-24.

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

ATTACHMENTS
Reso. No. CC 2024-030
Reso. No. PFA 2024-001
Agrmt First Amendment to Site and Facility Lease
Agrmt First Amendment to Lease Agreement
Agrmt First Amendment to Assignment Agreement

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-030

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

PROVIDING FOR THE RELEASE OF A PORTION OF THE REAL

PROPERTY SECURING THE LEASE AGREEMENT, DATED AS OF
OCTOBER 1, 2014, BY AND BETWEEN THE PALMDALE FINANCING

AUTHORITY AND THE CITY OF PALMDALE, ASSIGNED TO TPB
INVESTMENTS, INC., A WHOLLY-OWNED SUBSIDIARY OF WESTERN

ALLIANCE BANK, AN ARIZONA CORPORATION, AND AUTHORIZING

AND DIRECTING CERTAIN ACTIONS RELATING THERETO
WHEREAS, the City of Palmdale (the “City”) and the Palmdale Financing Authority (the “Authority”) have heretofore entered into that certain Site and Facility Lease, dated as of October 1, 2014, by and between the Authority and the City (the “Site and Facility Lease”), pursuant to which the City leased certain real property, described in Exhibit A thereto (the “Site”), and certain facilities on the Site, described in Exhibit B thereto (the “Facility” and, with the Site, the “Property”), to the Authority and the Authority leased the Property from the City;
WHEREAS, the Authority and the City have heretofore entered into that certain Lease Agreement, dated as of October 1, 2014, by and between the Authority and the City (the “Lease Agreement”), pursuant to which the Authority leased the Property to the City and the City leased the Property from the Authority; WHEREAS, the Authority and TPB Investments, Inc., since succeeded by Western Alliance Business Trust, a Delaware statutory trust (the “Assignee”), have heretofore entered into that certain Assignment Agreement, dated as of October 1, 2014, by and between the Authority and the Assignee (the “Assignment Agreement”), pursuant to which the Authority assigned to the Assignee its right to receive lease payments made by the City under the Lease Agreement;
WHEREAS, the City has determined that it is necessary to amend the description of the Site, as set forth in the Site and Facility Lease, the Lease Agreement and the Assignment Agreement to release a portion of the real property described therein and the Assignee has approved such amendment;
WHEREAS, Section 4.11 of the Lease Agreement grants to the City the option to release any portion of the Site, provided that the City shall satisfy certain requirements which are conditions precedent to such release;
WHEREAS, the City has satisfied all such requirements; and Resolution No. CC 2024-030

Page 2 of 3 ends

WHEREAS, the documents below specified have been filed with the City and the members of the Board, with the aid of its staff, have reviewed said documents.

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 below-enumerated documents, in the forms on file with the City Clerk, be and are hereby approved, and the Mayor, the City Manager or the Director of Operations/City Treasurer, or the designee of any such official, is hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such official, upon consultation with the City Attorney:
(a) an amendment to the Site and Facility Lease; and
(b) an amendment to the Lease Agreement.

SECTION 2. The Mayor, the City Manager, the Director of Operations/City Treasurer, the City Clerk, and all other appropriate officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates as may be necessary to effect the purposes of this resolution.

SECTION 3. The City Clerk shall certify to the passage and adoption of this Resolution, which shall take effect immediately upon its adoption.

PASSED, APPROVED, and ADOPTED this 17th day of April 2024. _________________________________
Approved as to form: Austin Bishop, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, City Clerk
City Attorney
I, Rochelle Scott, Acting City Clerk of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Resolution No. CC 2024-030

Page 3 of 3 ends

Council of the City of Palmdale at a regular meeting of said Council held on the 17th day of April 2024 by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, City Clerk

PALMDALE FINANCING AUTHORITY

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. PFA 2024-001

A RESOLUTION OF THE PALMDALE FINANCING AUTHORITY OF THE

CITY OF PALMDALE PROVIDING FOR THE RELEASE OF A PORTION

OF THE REAL PROPERTY SECURING THE LEASE AGREEMENT,
DATED AS OF OCTOBER 1, 2014, BY AND BETWEEN THE PALMDALE

FINANCING AUTHORITY AND THE CITY OF PALMDALE, ASSIGNED TO TPB INVESTMENTS, INC., A WHOLLY-OWNED SUBSIDIARY OF

WESTERN ALLIANCE BANK, AN ARIZONA CORPORATION, AND

AUTHORIZING AND DIRECTING CERTAIN ACTIONS RELATING

THERETO
WHEREAS, the City of Palmdale (the “City”) and the Palmdale Financing Authority (the “Authority”) have heretofore entered into that certain Site and Facility Lease, dated as of October 1, 2014, by and between the Authority and the City (the “Site and Facility Lease”), pursuant to which the City leased certain real property, described in Exhibit A thereto (the “Site”), and certain facilities on the Site, described in Exhibit B thereto (the “Facility” and, with the Site, the “Property”), to the Authority and the Authority leased the Property from the City;
WHEREAS, the Authority and the City have heretofore entered into that certain Lease Agreement, dated as of October 1, 2014, by and between the Authority and the City (the “Lease Agreement”), pursuant to which the Authority leased the Property to the City and the City leased the Property from the Authority; WHEREAS, the Authority and TPB Investments, Inc., since succeeded by Western Alliance Business Trust, a Delaware statutory trust (the “Assignee”), have heretofore entered into that certain Assignment Agreement, dated as of October 1, 2014, by and between the Authority and the Assignee (the “Assignment Agreement”), pursuant to which the Authority assigned to the Assignee its right to receive lease payments made by the City under the Lease Agreement;
WHEREAS, the City has determined that it is necessary to amend the description of the Site, as set forth in the Site and Facility Lease, the Lease Agreement, and the Assignment Agreement to release a portion of the real property described therein and the Assignee has approved such amendment; WHEREAS, Section 4.11 of the Lease Agreement grants to the City the option to release any portion of the Site, provided that the City shall satisfy certain requirements which are conditions precedent to such release; WHEREAS, the City has satisfied all such requirements; and Resolution No. PFA 2024-001

Page 2 of 3 ends

WHEREAS, the documents below specified shall be filed with the Authority and the members of the Board, with the aid of its staff, shall review said documents;

NOW THEREFORE, BE IT RESOLVED, THE PALMDALE FINANCING AUTHORITY

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

SECTION 1 . The below-enumerated documents, in the forms on file with the Secretary, be and are hereby approved, and the Chair, the Executive Director or the Treasurer of the Authority, or the designee of any such official, is hereby authorized and directed to execute said documents, with such changes, insertions and omissions as may be approved by such official, upon consultation with counsel:
(a) an amendment to the Site and Facility Lease;
(b) an amendment to the Lease Agreement; and
(c) an amendment to the Assignment Agreement.

SECTION 2. The Chair, the Executive Director, the Treasurer, the Secretary and other officials of the Authority are hereby authorized and directed to execute such other agreements, documents and certificates as may be necessary to effect the purposes of this resolution.

SECTION 3. The Secretary shall certify to the passage and adoption of this Resolution, which shall take effect immediately upon its adoption.

PASSED, APPROVED, and ADOPTED this 17th day of April 2024. _________________________________
Approved as to form: Austin Bishop, Chair
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, Authority Attorney Authority Secretary
Resolution No. PFA 2024-001

Page 3 of 3 ends

I, Rochelle Scott, Acting Authority Secretary of the Palmdale Financing Authority of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the Palmdale Financing Authority of the City of Palmdale at a special meeting of said Authority held on the 17 day of April 2024 by the following roll call vote:

AYES: __
NOES:_____________________________________________________________ ABSTAIN:______________________ABSENT:_____________________________ Date:__________________________ __ __________ Rochelle Scott, Authority Secretary
Quint & Thimmig LLP 03/07/24
16007.29
AFTER RECORDATION PLEASE RETURN TO: Quint & Thimmig LLP 900 Larkspur Landing Circle, Suite 270 Larkspur, CA 94939-1726 Attention: Brian D. Quint, Esq. THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11929 OF THE CALIFORNIA REVENUE AND TAXATION CODE. THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE. FIRST AMENDMENT TO SITE AND FACILITY LEASE (Amending that certain Site and Facility Lease, dated as of October 1, 2014, by and between the City of Palmdale and the Palmdale Financing Authority) dated as of April 1, 2024 by and between the CITY OF PALMDALE, as Lessor and the PALMDALE FINANCING AUTHORITY, as Lessee

FIRST AMENDMENT TO SITE AND FACILITY LEASE THIS FIRST AMENDMENT TO SITE AND FACILITY LEASE, dated as of April 1, 2024, is by and between CITY OF PALMDALE, a municipal corporation and chartered city duly organized and existing under the laws of the State of California, as lessor (the “City”), and the PALMDALE FINANCING AUTHORITY, a joint exercise of powers entity organized and existing under the laws of the State of California, as lessee (the “Authority”), amending that certain Site and Facility Lease, dated as of October 1, 2014, recorded on October 16, 2014, as document number 20141093688, in the Official Records of Los Angeles County, California (the “Site and Facility Lease”); W I T N E S S E T H: WHEREAS, the City and the Authority have heretofore entered into the Site and Facility Lease, pursuant to which the City leased certain real property, described in Exhibit A thereto (the “Site”), and certain facilities on the Site, described in Exhibit B thereto (the “Facility” and, with the Site, the “Property”), to the Authority and the Authority leased the Property from the City; WHEREAS, the Authority and the City have heretofore entered into that certain Lease Agreement, dated as of October 1, 2014, by and between the Authority and the City, and recorded by memorandum on recorded on October 16, 2014, as document number 20141093689, in the Official Records of Los Angeles County, California, as amended by that certain First Amendment to Lease Agreement, dated as of April 1, 2024, by and between the Authority and the City, recorded concurrently herewith (collectively, the “Lease Agreement”), pursuant to which the Authority leased the Property to the City and the City leased the Property from the Authority; WHEREAS, the Authority and TPB Investments, Inc., since succeeded by Western Alliance Business Trust, a Delaware statutory trust (the “Assignee”), have heretofore entered into that certain Assignment Agreement, dated as of October 1, 2014, by and between the Authority and the Assignee, as amended by that certain First Amendment to Assignment Agreement, dated as of April 1, 2024, by and between the Authority and the Assignee, recorded concurrently herewith (the “Assignment Agreement”), pursuant to which the Authority assigned to the Assignee its right to receive lease payments made by the City under the Lease Agreement; WHEREAS, the City has determined that it is necessary to amend the description of the Site, as set forth in the Site and Facility Lease, the Lease Agreement and the Assignment Agreement to release a portion of the real property described therein and the Assignee has approved such amendment; WHEREAS, Section 8.3(c) of the Lease Agreement grants to the City the option to release any portion of the Site, provided that the City shall satisfy certain requirements which are conditions precedent to such release; and WHEREAS, the City has satisfied all such requirements; NOW, THEREFORE, in consideration of the above premises and of the mutual covenants hereinafter contained and for other good and valuable consideration, the parties hereto agree as follows:

-2-
SECTION 1. Amendment of the Site and Facility Lease. (a) The existing description of the Site contained in Exhibit A to the Site and Facility Lease is set forth in Exhibit A attached hereto. (b) The Site is hereby amended by excluding a portion of the Site described in Exhibit B attached hereto. (c) The resulting description of the Site shall be as described in Exhibit C attached hereto. (c) By virtue of such revisions, the City hereby leases to the Authority and the Authority hereby leases from the City, the Site, as now described in Exhibit C attached hereto. SECTION 2. Execution in Counterparts. This First Amendment to Site and Facility Lease may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 3. Applicable Law. This First Amendment to Site and Facility Lease shall be governed by and construed in accordance with the laws of the State of California.

-3-
IN WITNESS WHEREOF, the City and the Authority have caused this First Amendment to Site and Facility Lease to be executed by their respective officers thereunto duly authorized, all as of the day and year First above written. CITY OF PALMDALE By Ronda Perez City Manager PALMDALE FINANCING AUTHORITY By Ronda Perez Executive Director

[NOTARY ACKNOWLEDGMENTS TO BE ATTACHED]

Exhibit A
EXHIBIT A EXISTING DESCRIPTION OF THE SITE All that certain real property situated in Los Angeles County, State of California, described as follows: Marie Kerr Park Site PARCEL A: THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 17, TOWNSHIP 6 NORTH RANGE 12 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND, LYING WESTERLY OF THE WESTERLY LINE, AND SOUTHERLY PROLONGATION THEREOF, OF PARCEL 1 AS SHOWN ON THE MAP FILED IN BOOK 78 PAGES 17 TO 19 INCLUSIVE OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT FORTY PERCENT OF ALL OIL, GAS AND MINERALS, AND ALL OIL, GAS, AND MINERAL RIGHTS THEREUNDER BELOW 500 FEET, BUT WITHOUT ANY SURFACE RIGHTS OR RIGHTS OF ENTRY, AS RESERVED IN DEED FROM H.C. LAND CORPORATION, A CORPORATION RECORDED AUGUST 23, 1956 AS INSTRUMENT NO. 265 OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM ALL OF OIL, GAS, MINERALS, AND MINERAL RIGHTS "WHETHER SAID MINERALS BE METALLIC OR NON-METALLIC LYING BELOW A DEPTH OF 100 FEET BELOW THE SURFACE THEREOF, BUT WITHOUT SURFACE RIGHTS OF ENTRY OR SURFACE RIGHTS OF INGRESS AND EGRESS IN, ON OR TO THE PROPERTY, AS RESERVED BY SUNNYSLOPE FARMS, A PARTNERSHIP BY DEED RECORDED OCTOBER 21, 1968 AS INSTRUMENT NO. 395 OF OFFICIAL RECORDS. PARCEL B: PARCELS 1, 3, 6, 9, 11, 14, 15 AND 16 IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN IN THE RECORD OF SURVEY FILED IN BOOK 78 PAGES 17 TO 19 INCLUSIVE OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT FROM SAID LAND, 40 PERCENT OF ALL OIL, GAS AND MINERALS AND ALL OIL, GAS AND MINERAL RIGHTS THEREUNDER BELOW 500 FEET BUT WITHOUT ANY SURFACE RIGHTS OR RIGHTS OF ENTRY, AS RESERVED IN DEED FROM H.C. LAND CORPORATION, RECORDED AUGUST 23, 1956 AS INSTRUMENT NO. 265 IN BOOK 52101 PAGE 112, OF OFFICIAL RECORDS. PARCEL B-1: AN EASEMENT FOR PRIVATE STREETS, PEDESTRIAN AND VEHICULAR INGRESS AND EGRESS, PUBLIC UTILITIES, DRAINAGE, SEWER AND INCIDENTAL PURPOSES OVER THOSE PORTIONS OF SAID LAND, WHICH IS INCLUDED WITHIN THE AREAS SHOWN AS PRIVATE STREET OR PRIVATE STREETS ON THE MAP OF SAID RECORD OF SURVEY.

Exhibit A
Eastside Park Site PARCEL A: THE EAST HALF OF THE WEST HALF OF THE NORTH HALF OF THE WESTERLY PORTION OF LOT 2, SHOWN AS CONTAINING 50.37 ACRES IN THE NORTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND. PARCEL B: THE WEST HALF OF THE WEST HALF OF THE NORTH HALF OF THE WESTERLY PORTION OF LOT 2, SHOWN AS CONTAINING 50.37 ACRES, IN THE NORTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND. PARCEL C: THE WEST HALF OF THE SOUTH HALF OF THE WESTERLY PORTION OF LOT 2, SHOWN AS CONTAINING 50.37 ACRES, IN THE NORTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND. EXCEPTING THEREFROM ANY PORTION INCLUDED WITHIN THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 5. ALSO EXCEPTING THEREFROM THAT PORTION LYING WITHIN TRACT NO. 45219, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1141 PAGES 75 THROUGH 78 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

Exhibit B
EXHIBIT B PORTION OF THE SITE TO BE EXCLUDED All that certain real property situated in the City of Palmdale, Los Angeles County, State of California, described as follows: Marie Kerr Park Site PARCEL A: THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 17, TOWNSHIP 6 NORTH RANGE 12 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND, LYING WESTERLY OF THE WESTERLY LINE, AND SOUTHERLY PROLONGATION THEREOF, OF PARCEL 1 AS SHOWN ON THE MAP FILED IN BOOK 78 PAGES 17 TO 19 INCLUSIVE OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT FORTY PERCENT OF ALL OIL, GAS AND MINERALS, AND ALL OIL, GAS, AND MINERAL RIGHTS THEREUNDER BELOW 500 FEET, BUT WITHOUT ANY SURFACE RIGHTS OR RIGHTS OF ENTRY, AS RESERVED IN DEED FROM H.C. LAND CORPORATION, A CORPORATION RECORDED AUGUST 23, 1956 AS INSTRUMENT NO. 265 OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM ALL OF OIL, GAS, MINERALS, AND MINERAL RIGHTS "WHETHER SAID MINERALS BE METALLIC OR NON-METALLIC LYING BELOW A DEPTH OF 100 FEET BELOW THE SURFACE THEREOF, BUT WITHOUT SURFACE RIGHTS OF ENTRY OR SURFACE RIGHTS OF INGRESS AND EGRESS IN, ON OR TO THE PROPERTY, AS RESERVED BY SUNNYSLOPE FARMS, A PARTNERSHIP BY DEED RECORDED OCTOBER 21, 1968 AS INSTRUMENT NO. 395 OF OFFICIAL RECORDS. PARCEL B: PARCELS 1, 3, 6, 9, 11, 14, 15 AND 16 IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS SHOWN IN THE RECORD OF SURVEY FILED IN BOOK 78 PAGES 17 TO 19 INCLUSIVE OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT FROM SAID LAND, 40 PERCENT OF ALL OIL, GAS AND MINERALS AND ALL OIL, GAS AND MINERAL RIGHTS THEREUNDER BELOW 500 FEET BUT WITHOUT ANY SURFACE RIGHTS OR RIGHTS OF ENTRY, AS RESERVED IN DEED FROM H.C. LAND CORPORATION, RECORDED AUGUST 23, 1956 AS INSTRUMENT NO. 265 IN BOOK 52101 PAGE 112, OF OFFICIAL RECORDS. PARCEL B-1: AN EASEMENT FOR PRIVATE STREETS, PEDESTRIAN AND VEHICULAR INGRESS AND EGRESS, PUBLIC UTILITIES, DRAINAGE, SEWER AND INCIDENTAL PURPOSES OVER THOSE PORTIONS OF SAID LAND, WHICH IS INCLUDED WITHIN THE AREAS SHOWN AS PRIVATE STREET OR PRIVATE STREETS ON THE MAP OF SAID RECORD OF SURVEY.

Exhibit C Page 1
DESCRIPTION OF THE RESULTING SITE All that certain real property situated in the City of Palmdale, Los Angeles County, State of California, described as follows: Eastside Park Site PARCEL A: THE EAST HALF OF THE WEST HALF OF THE NORTH HALF OF THE WESTERLY PORTION OF LOT 2, SHOWN AS CONTAINING 50.37 ACRES IN THE NORTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND. PARCEL B: THE WEST HALF OF THE WEST HALF OF THE NORTH HALF OF THE WESTERLY PORTION OF LOT 2, SHOWN AS CONTAINING 50.37 ACRES, IN THE NORTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND. PARCEL C: THE WEST HALF OF THE SOUTH HALF OF THE WESTERLY PORTION OF LOT 2, SHOWN AS CONTAINING 50.37 ACRES, IN THE NORTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND. EXCEPTING THEREFROM ANY PORTION INCLUDED WITHIN THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 5. ALSO EXCEPTING THEREFROM THAT PORTION LYING WITHIN TRACT NO. 45219, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1141 PAGES 75 THROUGH 78 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

Quint & Thimmig LLP 03/07/24
16007.29
AFTER RECORDATION PLEASE RETURN TO: Quint & Thimmig LLP 900 Larkspur Landing Circle, Suite 270 Larkspur, CA 94939-1726 Attention: Brian D. Quint, Esq. THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11929 OF THE CALIFORNIA REVENUE AND TAXATION CODE. THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE. FIRST AMENDMENT TO LEASE AGREEMENT (Amending that certain Lease Agreement, dated as of October 1, 2014, by and between the Palmdale Financing Authority and the City of Palmdale) Dated as of April 1, 2024 by and between the PALMDALE FINANCING AUTHORITY, as Lessor and CITY OF PALMDALE, as Lessee

FIRST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEMENT, dated as of April 1, 2024, is by and between the PALMDALE FINANCING AUTHORITY, a joint exercise of powers authority organized and existing under the laws of the State of California, as lessor (the “Authority”), and CITY OF PALMDALE, a municipal corporation and chartered city organized and existing under the laws of the State of California, as lessee (the “City”), amending that certain Lease Agreement, dated as of October 1, 2014 by and between the Authority and the City, and recorded by memorandum on October 16, 2024, as document number 20241093689, in the Official Records of Los Angeles County, California (the “Lease Agreement”); W I T N E S S E T H: WHEREAS, the City and the Authority have heretofore entered into that certain Site and Facility Lease, dated as of October 1, 2014, recorded on October 16, 2024, as document number 20241093688, in the Official Records of Los Angeles County, California, as amended by that certain First Amendment to Site and Facility Lease, dated as of April 1, 2024, by and between the Authority and the City, recorded concurrently herewith (collectively, the “Site and Facility Lease”), pursuant to which the City leased certain real property, described in Exhibit A thereto (the “Site”), and certain facilities on the Site, described in Exhibit B thereto (the “Facility” and, with the Site, the “Property”), to the Authority and the Authority leased the Property from the City; WHEREAS, the Authority and the City have heretofore entered into the Lease Agreement, pursuant to which the Authority leased the Property to the City and the City leased the Property from the Authority; WHEREAS, the Authority and TPB Investments, Inc., since succeeded by Western Alliance Business Trust, a Delaware statutory trust (the “Assignee”), have heretofore entered into that certain Assignment Agreement, dated as of October 1, 2014, by and between the Authority and the Assignee, as amended by that certain First Amendment to Assignment Agreement, dated as of April 1, 2024, by and between the Authority and the Assignee, recorded concurrently herewith (the “Assignment Agreement”), pursuant to which the Authority assigned to the Assignee its right to receive lease payments made by the City under the Lease Agreement; WHEREAS, the City has determined that it is necessary to amend the description of the Site, as set forth in the Site and Facility Lease, the Lease Agreement and the Assignment Agreement to release a portion of the real property described therein and the Assignee has approved such amendment; WHEREAS, Section 8.3(c) of the Lease Agreement grants to the City the option to release any portion of the Site, provided that the City shall satisfy certain requirements which are conditions precedent to such release; and WHEREAS, the City has satisfied all such requirements; NOW, THEREFORE, in consideration of the above premises and of the mutual covenants hereinafter contained and for other good and valuable consideration, the parties hereto agree as follows:

-2-
SECTION 1. Amendment of the Lease Agreement. (a) The existing description of the Site contained in Exhibit A to the Lease Agreement is set forth in Exhibit A attached hereto. (b) The Site is hereby amended by excluding a portion of the Site shown in Exhibit B attached hereto. (c) The resulting description of the Site shall be as described in Exhibit C attached hereto. (d) By virtue of such revisions, the Authority hereby leases to the City and the City hereby leases from the Authority, the Site, as now described in Exhibit C attached hereto. SECTION 2. Execution in Counterparts. This First Amendment to Lease Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 3. Applicable Law. This First Amendment to Lease Agreement shall be governed by and construed in accordance with the laws of the State of California.

-3-
IN WITNESS WHEREOF, the Authority and the City have caused this First Amendment to Lease Agreement to be executed by their respective officers thereunto duly authorized, all as of the day and year First above written. PALMDALE FINANCING AUTHORITY By Ronda Perez Executive Director CITY OF PALMDALE By Ronda Perez City Manager

[NOTARY ACKNOWLEDGMENTS TO BE ATTACHED]

Exhibit C Page 1
EXHIBIT C DESCRIPTION OF THE RESULTING SITE All that certain real property situated in the City of Palmdale, Los Angeles County, State of California, described as follows: Eastside Park Site PARCEL A: THE EAST HALF OF THE WEST HALF OF THE NORTH HALF OF THE WESTERLY PORTION OF LOT 2, SHOWN AS CONTAINING 50.37 ACRES IN THE NORTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND. PARCEL B: THE WEST HALF OF THE WEST HALF OF THE NORTH HALF OF THE WESTERLY PORTION OF LOT 2, SHOWN AS CONTAINING 50.37 ACRES, IN THE NORTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND. PARCEL C: THE WEST HALF OF THE SOUTH HALF OF THE WESTERLY PORTION OF LOT 2, SHOWN AS CONTAINING 50.37 ACRES, IN THE NORTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND. EXCEPTING THEREFROM ANY PORTION INCLUDED WITHIN THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 5. ALSO EXCEPTING THEREFROM THAT PORTION LYING WITHIN TRACT NO. 45219, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 1141 PAGES 75 THROUGH 78 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

Quint & Thimmig LLP 03/07/24
16007.29
AFTER RECORDATION PLEASE RETURN TO: Quint & Thimmig LLP 900 Larkspur Landing Circle, Suite 270 Larkspur, CA 94939-1726 Attention: Brian D. Quint, Esq. THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11929 OF THE CALIFORNIA REVENUE AND TAXATION CODE. THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE. FIRST AMENDMENT TO ASSIGNMENT AGREEMENT (Amending that Assignment Agreement, dated as of October 1, 2014, by and between the Palmdale Financing Authority and TPB Investments, Inc., a wholly owned subsidiary of Western Alliance Bank) Dated as of April 1, 2024 by and between the PALMDALE FINANCING AUTHORITY and WESTERN ALLIANCE BUSINESS TRUST, a Delaware statutory trust, as successor in interest to TPB Investments, Inc., as Assignee

FIRST AMENDMENT TO ASSIGNMENT AGREEMENT THIS FIRST AMENDMENT TO ASSIGNMENT AGREEMENT, dated as of April 1, 2024, is by and between the PALMDALE FINANCING AUTHORITY, a joint exercise of powers entity organized and existing under and by virtue of the laws of the State of California (the “Authority”), and WESTERN ALLIANCE BUSINESS TRUST, a Delaware statutory trust, as successor in interest to TPB Investments, Inc. (the “Assignee”), amending that certain Assignment Agreement, dated as of October 1, 2014, by and between the Authority and the Assignee, recorded on October 16, 2014, as document number 20241093690 in the Official Records of Los Angeles County, California, (collectively, the “Assignment Agreement”); W I T N E S S E T H: WHEREAS, the City of Palmdale (the “City”) and the Authority have heretofore entered into that certain Site and Facility Lease, dated as of October 1, 2014, recorded on October 16, 2014, as document number 20241093688, in the Official Records of Los Angeles County, California, as amended by that certain First Amendment to Site and Facility Lease, dated as of April 1, 2024, by and between the Authority and the City, recorded concurrently herewith (collectively, the “Site and Facility Lease”), pursuant to which the City leased certain real property, described in Exhibit A thereto (the “Site”), and certain facilities on the Site, described in Exhibit B thereto (the “Facility” and, with the Site, the “Property”), to the Authority and the Authority leased the Property from the City; WHEREAS, the Authority and the City have heretofore entered into that certain Lease Agreement, dated as of October 1, 2014, by and between the Authority and the City, and recorded by memorandum on October 16, 2014, as document number 20241093689, in the Official Records of Los Angeles County, California, as amended by that certain First Amendment to Lease Agreement, dated as of April 1, 2024, by and between the Authority and the City, recorded concurrently herewith (collectively, the “Lease Agreement”), pursuant to which the Authority leased the Property to the City and the City leased the Property from the Authority; WHEREAS, the Authority and the Assignee have heretofore entered into the Assignment Agreement pursuant to which the Authority assigned to the Assignee its right to receive lease payments made by the City under the Lease Agreement; WHEREAS, the City has determined that it is necessary to amend the description of the Site, as set forth in the Site and Facility Lease, the Lease Agreement and the Assignment Agreement to release a portion of the real property described therein and the Assignee has approved such amendment; WHEREAS, Section 8.3(b) of the Lease Agreement grants to the City the option to release any portion of the Site, provided that the City shall satisfy certain requirements which are conditions precedent to such release; and WHEREAS, the City has satisfied all such requirements; NOW, THEREFORE, in consideration of the above premises and of the mutual covenants hereinafter contained and for other good and valuable consideration, the parties hereto agree as follows:

-2-
SECTION 1. Amendment of the Assignment Agreement. (a) The existing description of the Site contained in Exhibit A to the Assignment Agreement is set forth in Exhibit A attached hereto. (b) The Site is hereby amended by excluding a portion of the Site shown in Exhibit B attached hereto. (c) The resulting description of the Site shall be as described in Exhibit C attached hereto. SECTION 2. Execution in Counterparts. This First Amendment to Assignment Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 3. Applicable Law. This First Amendment to Assignment Agreement shall be governed by and construed in accordance with the laws of the State of California.

-3-
IN WITNESS WHEREOF, the Authority and the Assignee have caused this First Amendment to Assignment Agreement to be executed by their respective officers thereunto duly authorized, all as of the day and year first above written. PALMDALE FINANCING AUTHORITY By Ronda Perez Executive Director WESTERN ALLIANCE BUSINESS TRUST, a Delaware statutory trust, as successor in interest to TPB Investments, Inc., a wholly owned subsidiary of Western Alliance Bank, an Arizona corporation, as Assignee By Name Title

[NOTARY ACKNOWLEDGMENTS TO BE ATTACHED]

City Council Staff Report
DATE: APRIL 17, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

ENGINEERING DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2024-031, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE TO ESTABLISH A

VEHICLE MILES TRAVELED (VMT) PROGRAM WHICH INCLUDES

VMT THRESHOLDS, VMT ANALYSIS REQUIREMENTS AND
PROGRAM; AND ESTABLISH ES TWO NEW CITY FEES : A VMT

ANALYSIS FEE AND A VMT IMPACT FEE

RECOMMENDATION
Staff recommends that the City Council:

1. Hold a public hearing to accept public testimony and adopt Resolution No. CC 2024-031; and,

2. Adopt Resolution No. CC 2024-031, which recommends a four percent (4%) VMT threshold, analysis requirement and mitigation program, including a new VMT Analysis Fee and a VMT Impact Fee of $261 as provided for in the City of Palmdale SB 743 VMT Implementation Guidelines.

BACKGROUND
SB 743 , s igned into law by California Governor Jerry Brown in 2013, updated how transportation impacts were measured in California for new development projects, ensuring they were built to allow Californians more options to drive less. However, SB 743 effectively resulted in automobile delay, as measured by the “level of service” (LOS), and no longer constitutes a significant environmental effect under the California Environmental Quality Act (CEQA). (Pub. Resources Code, § 21099(b)(2)). This change in the analysis of transportation impacts went into effect when the CEQA Guidelines were updated to make the revisions called for in SB 743 and were certified by the Natural Resources Agency in December 2018.

Report to Mayor and City Council
Re: Resolution No. CC 2024-031
April 17, 2024

Page 2 ends

The Governor’s Office of Planning and Research (OPR) selected VMT as the principal measure to replace LOS for determining significant transportation impacts. VMT measures total vehicular travel that accounts for the number and length of vehicle trips.

OPR selected VMT in part because jurisdictions are already familiar with this metric. VMT is used in CEQA to study other potential impacts such as greenhouse gases (GHG), air quality, and energy impacts and is used in planning for regional Sustainable Communities Strategies (SCS).

To date, projects across the State identified as having a significant transportation project have relied heavily on Transportation Demand Measures (TDMs) if they could not mitigate with on-site solutions. While TDMs can be effective, particularly in highly urbanized areas, they are generally less effective in suburban and rural contexts. TDMs can also be challenging from the standpoint of mitigation monitoring and can result in the requirement that a project manage and pay for them in perpetuity. These limitations have led jurisdictions to consider programmatic approaches and TDMs for VMT mitigation.

DISCUSSION
The City has relied on the Los Angeles County Public Works Transportation Impact Analysis Guidelines, dated July 23, 2020, for SB 743 analysis. To better reflect the unique character and needs of the City of Palmdale, new implementation guidelines have been prepared and are recommended for adoption. The proposed implementation guidelines include thresholds and analysis requirements for land use and transportation improvement projects. The implementation guidelines also include a VMT mitigation program to meet the needs of projects that require solutions beyond those directly available to a project or that can be achieved through TDMs.

The proposed program allows for a project to use site-specific mitigation solutions, TDMs, purchase VMT reduction credits, or a combination of solutions to address its VMT impact.

Note that projects not subject to CEQA are not required to follow the implementation guidelines. This includes projects reviewed under existing ministerial or administrative processes, site plan review, and other actions that do not require environmental review.

FISCAL IMPACT
Staff will manage a new VMT mitigation program and associated reporting. Other costs may be incurred by projects that participate in the proposed VMT mitigation program to mitigate a significant transportation impact.

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

Report to Mayor and City Council
Re: Resolution No. CC 2024-031
April 17, 2024

Page 3 ends

B. Implement and administer environmentally sustainable programs; and D. Launch an efficient regional multi-modal transportation hub connecting rail, air, auto, and public transit.

Prepared by: Lynn Glidden, P.E., Director of Public Works Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, City Attorney

ATTACHMENTS
Reso. No. CC 2024-031
Atch 1 City of Palmdale SB 743 Implementation Guidelines

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-031

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

TO ESTABLISH A VEHICLE MILES TRAVELED (VMT) PROGRAM,

WHICH INCLUDES VMT THRESHOLDS, VMT ANALYSIS
REQUIREMENTS AND PROGRAM; AND ESTABLISH TWO NEW CITY
FEES: A VMT ANALYSIS FEE AND A VMT IMPACT FEE
WHEREAS, the City of Palmdale wants to enhance traffic safety, analyze vehicle miles traveled (VMT), and equity within its communities, and WHEREAS, the City of Palmdale has updated its California Environmental Quality Act (CEQA) guidelines to comply with statewide VMT requirements. The traffic division recommends a VMT policy that is appropriate for Palmdale, serves the best interests of the people of Palmdale, balances the need for growth and prosperity, and WHEREAS, the City of Palmdale proposes implementing guidelines, including thresholds and analysis requirements for land use and transportation improvement projects. The implementation guidelines also include a VMT mitigation program to meet the needs of projects that require mitigation solutions beyond those directly available to a project or that can be achieved through Transportation Demand Measures (TDM); and
WHEREAS, the City of Palmdale establishes VMT thresholds, VMT analysis requirements, and a VMT mitigation program, including a new VMT Analysis Fee for city staff to run and maintain the VMT Analysis tool and a VMT Impact Fee for VMT above the adopted threshold is provided for in the City of Palmdale SB 743 VMT Implementation Guidelines;

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

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

SECTION 1 . The City of Palmdale SB 743 VMT Implementation Guidelines, including a VMT Impact Fee of $261 for VMT above the recommended threshold of four percent (4%), are hereby adopted.

Resolution No. CC 2024-031

Page 2 of 2 ends

SECTION 2. The City of Palmdale adopts a new VMT Analysis Fee for city staff to run and maintain the VMT Analysis tool and a VMT Impact Fee.

SECTION 3. The City Clerk shall certify the adoption of this resolution.

PASSED, APPROVED and ADOPTED this ______ day of ____________, ________. _________________________________
Approved as to form: Austin Bishop, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, City Clerk
City Attorney
I, Rochelle Scott, City Clerk of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the ______ day of _____________, 20___ by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, City Clerk

Analyzing Vehicle
Miles Traveled (VMT)
for CEQA Compliance
SB 743 VMT IMPLEMENTATION GUIDELINES FOR THE

CITY OF PALMDALE
April 1, 2024

Public Works Department
38250 Sierra Highway
Palmdale, CA 93550

SB 743 VMT Implementation Guidelines for the City of Palmdale 2 Background
In 2013, SB 743 was signed into law by California Governor Jerry Brown with a goal of reducing Greenhouse Gas (GHG) emissions, promoting the development of infill land use projects and multimodal transportation networks, and to promote a diversity of land uses within developments. One significant outcome resulting from this statute is that automobile delay, as measured by “level of service” (LOS) and other similar metrics, generally no longer constitutes a significant environmental effect under the California Environmental Quality Act (CE QA). (Pub. Resources Code, § 21099( b)(2)). This change in the analysis of transportation impacts went into effect when the CEQA Guideline s were updated to make the revisions called for in SB 743 and were certified by the Natural Resources Agency in December, 2018.

The Governor’s Office of Planning and Research (OPR) selected Vehicle Miles Traveled (VMT) as the principal measure to replace LOS for determining significant transportation impacts. VMT is a measure of total vehicular travel that accounts for the number of vehicle trips and the length of those trips. OPR selected VMT, in part, because jurisdictions are already familiar with this metric. VMT is already used in CEQA to study other potential impacts such as GHG, air quality, and energy impacts and is used in planning for regional Sustainable Communities Strategies (SCS) . As of July 1, 2020, agencies analyzing the transportation impacts of new projects must look at VMT as a metric known as vehicle miles traveled (VMT) instead of LOS.

VMT also allows for an analysis of a project’s impact throughout the jurisdiction rather than only in the vicinity of the proposed project allowing for a better understanding of the full extent of a project’s transportation-related impact.

Use of this Document
This document has been developed to serve both as the basis of SB 743 implementation and VMT analysis within the City. While this document includes footnotes and references to other documents, the use of this document does not require the reader to reference the footnotes unless they are interested in understanding the technical basis of elements of this document’s preparation. The analysis guidelines are separated into two distinct approaches, those that relate to land use projects and those that relate to transportation improvement projects. If a project includes both land use and transportation improvement elements, analysis would be required to be carried out for both. Projects not subject to CEQA are not required to follow these guidelines. This includ es projects that are reviewed under existing ministerial or administrative processes, site plan review, and other actions that do not require environmental review.

Land Use Projects
The approach included within this document for identifying transportation impacts under CEQA for land - use projects, in part, aligns with guidance provided within the OPR Technical Advisory on Evaluating Transportation Impacts in CEQA (2018).

While the OPR guidance related to SB 743 has been a helpful introduction to using VMT to evaluate projects, it does not provide a complete solution. There are a multitude of complex practical issues that are not addressed by the OPR guidance. OPR Guidance does not specifically address land uses beyond residential, office, and retail, and it provides latitude on some elements of implementation. In response to this, a specific series of analy tical steps for SB 743 project evaluation have been developed to cla rify requirements and reduce potential confusion. Exhibit 1 provides a graphical representation of th is analytical process.

SB 743 VMT Implementation Guidelines for the City of Palmdale 3 Exhibit 1 – Process for CEQA VMT Analysis for Land Use Projects

SB 743 VMT Implementation Guidelines for the City of Palmdale 4 Step 1: Evaluate Land Use Type
During the initial step, the land use projects will need to be evaluated for the following considerations:
▪ Land use type. For the purposes of analysis, the Institute of Transportation Engineers (ITE) land use codes serve as the basis of land use definitions. Although it is recognized that VMT evaluation tools and methodologies are typically not fully sensitive to some of the distinctions between some ITE categories, the use of ITE land use codes is useful for maintaining consistency across analyses, determining trip generation for other planning level tools, and maintaining a common understanding of trip making characteristics amongst transportation professionals. T he ITE land use code is also used as an input into the City’s VMT analysis tool. ▪ Mixed Use. If there are multiple distinct land uses within the project (residential, office, retail, etc.), they will be required to be analyzed separately unless they are determined to be insignificant to the total VMT. Mixed use projects are permitted to account for internal capture which depending on the methodology may require a distinct approach not covered in this documentation. ▪ Redevelopment projects. As described under the Non -Significant Screening Criteria section, redevelopment projects which have lower VMT than the existing on-site use can be determined to have a non-significant impact.

Step 2: Screen for Non-Significant Transportation Impact The purpose of this step is to determine if a presumption of a non-significant transportation impact can be made on the facts of the project. The guidance in this section is primarily intended to avoid unnecessary analysis and findings that would be inconsistent with the City’s implementation of SB 743. A detailed CEQA transportation analysis will not be required for land use elements of a project that meet the screening criteria shown in Exhibit 2. If a project is mixed use in nature, only those elements of the project that do not comply with the elements in Exhibit 2 would require further evaluation to determine transportation significance for CEQA purposes.

SB 743 VMT Implementation Guidelines for the City of Palmdale 5 Exhibit 2 – Land Use Project Screening Criteria
Land Use Screening
Criteria1
Impact Analysis
SMALL PROJECTS2 Presumed to cause a less-than-significant impact:
▪ Exclusive Single Family Housing projects less than or equal to 202 Dwelling Units
▪ Exclusive Multi Family (low rise) Housing projects less than or equal to 213 Dwelling Units
▪ Exclusive Multi Family (mid-rise) Housing projects less than or equal to 341 Dwelling Units
▪ Exclusive General Office Building with area less than or equal to 254,000 sq ft.
▪ Exclusive Retail buildings with area less than or equal to 64,000 sq ft. ▪ Any other exclusive land use projects or a combination of multiple land uses that in total produce less than 3,000 metric tons of CO2 equivalent emissions3
Unless:
▪ It is inconsistent with the Sustainable Communities Strategy or General Plan as determined by the City of Palmdale

PROJECTS NEAR HIGH
QUALITY TRANSIT4

Presumed to cause a less-than-significant impact:
▪ Within a ½ mile of an existing major transit stop, which maintains a service interval frequency of 15 minutes or less during the morning and afternoon peak commute periods.

Unless:
▪ Has a Floor Area Ratio (FAR) of less than 0.75
▪ Includes more parking for use by residents, customers, or employees of the project than required by the City of Palmdale
▪ It is inconsistent with the Sustainable Communities Strategy as determined by the City of Palmdale
▪ Replaces affordable residential units with a smaller number of moderate- or high-income residential units

1 When the Screening Criteria are met no further analysis of VMT Impacts under CEQA is necessary. 2 Based on Substantial Evidence for thresholds for small projects, Appendix B. 3 The maximum land use quantities that would be under the 3,000 metric ton CO2 equivalent threshold were modeled using the CalEEMod 2022 emissions modeling software using the default inputs.
4 Ibid., p. 13.

SB 743 VMT Implementation Guidelines for the City of Palmdale 6 Land Use Screening
Criteria1
Impact Analysis

LOCAL-SERVING
RETAIL5

Presumed to cause a less-than-significant impact:
▪ No single store on-site exceeds 50,000 square feet
▪ Project is local-serving as determined by the City of Palmdale Unless:
▪ If the nature of the service is regionally focused6 as determined by the City of Palmdale

AFFORDABLE
HOUSING7
Presumed to cause a less-than-significant impact:
▪ If the residential component of a project consists of 100-percent affordable residential units as determined by the City of Palmdale Unless:
▪ The percentage of affordable housing is determined by the City of Palmdale to be less than 100-percent of the residential element of a project

LOCAL ESSENTIAL
SERVICE8

Presumed to cause less-than-significant impact:
▪ Day care center
▪ Public K-12 School
▪ Police or Fire facility
▪ Medical/Dental office building
▪ Government offices (in-person services such as post office, library, and utilities)
Unless:
▪ The nature of the service is regionally focused as determined by the City of Palmdale

5 Ibid., p. 16. For purposes of these Guidelines, “Local Serving” shall mean retail operations that primarily serve nearby residential neighborhoods within the City of Palmdale. A determination that a project is “Local Serving” may be supported by a market study or other studies of similar uses elsewhere in the City.
6 For purposes of these Guidelines, “Regionally Focused” shall mean retail operations that primarily serve a regional customer base. A determination that a project is “Regionally Focused” may be supported by a market study or other studies of similar uses elsewhere in the region surrounding the City.
7 Ibid., p. 14. As described, “Evidence supports a presumption of less than significant impact for a 100 percent affordable residential development (or the residential component of a mixed-use development) in infill locations. Lead agencies may develop their own presumption of less than significant impact for residential projects (or residential portions of mixed-use projects) containing a particular amount of affordable housing, based on local circumstances and evidence.”
8 Based on assumption that, like local-serving retail, the addition of necessary local in-person services will reduce VMT given that trips to these locations will be made irrespective of distance given their non-discretionary nature.

SB 743 VMT Implementation Guidelines for the City of Palmdale 7 Land Use Screening
Criteria1
Impact Analysis

MAP-BASED
SCREENING9

Presumed to cause a less-than-significant impact:
▪ Area of development is under the threshold as shown on a screening map included in Appendix A
Unless:
▪ Represent significant growth as to substantially change regional travel patterns as determined by the City of Palmdale

REDEVELOPMENT
PROJECTS10
Presumed to cause a less-than-significant impact:
▪ Project replaces an existing VMT-generating land use and does not result in a net overall increase in VMT
Unless:
▪ Project replaces an existing VMT-generating land use and results in a net overall increase in VMT

Step 3: Significance Threshold and Methodology
The purpose of this step is to determine the threshold of significance for application to a land use project.

Significance thresholds are based on land use type, broadly categorized as efficiency and net change metrics. Efficiency metrics include VMT/capita and work VMT/employee11. As shown in Exhibit 1, projects involving residential and office land uses would be evaluated using efficiency metrics; whereas, projects that include a significant customer/user base, such as retail and other commercial uses, would be evaluated based on the net change in regional VMT based on customer/user trips. Exhibit 3 provides a few examples of the variety of uses that have similar characteristics for using Efficiency or Net Change metrics.

For projects with a significant customer/user base, it is typically appropriate to separate employee trip characteristics from the customer base trip characteristics, unless the customer base is minimal in nature.

Under these circumstances, it is most appr opriate to evaluate the total of the delta in regional VMT resulting from the customer base plus the delta of VMT resulting from employees based on the following formula:
(number of employees) x (estimated VMT/employee – threshold VMT/employee) The threshold of significance will accordingly correspond to the “Net Change” threshold as described in Exhibit 3. Under these circumstances, it is most appropriate to evaluate this total Net Change as the basis

9 OPR (2018), p. 12.
10 Ibid., p. 18.
11 Work VMT specifically applies to commute trips as represented by the home-based work trip attractions in the City’s General Plan Travel Demand Model.

SB 743 VMT Implementation Guidelines for the City of Palmdale 8 for evaluating the outcome of mitigations in terms of determining transportation significance although each element of the project should be tallied and evaluated separately.

Exhibit 3 – Significance Threshold and Methodology
Threshold Basis Efficiency Net Change
Example Land Uses Residential, Professional Office,
Industrial Retail, Medical Office, Sports Venue
Example VMT Thresholds Per capita, per employee Regional VMT change Customer/User Component
(Primary source of VMT) No Yes
Allowable Methods
Non-Significant Screening Criteria,
The City of Palmdale VMT Analysis
Tool, City of Palmdale General Plan
Travel Demand Model
Non-Significant Screening Criteria,
City of Palmdale General Plan Travel
Demand Model

VMT Thresholds of Significance
OPR recommends a 15 -percent VMT reduction relative to existing development may be a reasonable threshold. While OPR’s Technical Advisory is not binding on public agencies, CEQA allows lead agencies to “consider thresholds of significance …recommended by other public agencies, provided the decision to adopt those thresholds is supported by substantial evidence.”12 According to OPR, achieving 15 -percent lower per capita (for residential development) or per employee (for employment-based development) VMT compared with VMT resulting from existing development is both generally achievable and is supported by evidence that connects this level of reduction to the State’s emissions goals .13 The thresholds of significance recommended by OPR, as they relate to the City of Palmdale, are summarized in Exhibit 4.

Exhibit 4 – OPR suggested VMT Thresholds of Significance Land Use OPR Guidance14
Residential 15% below existing North Los Angeles County average VMT per capita Employment 15% below existing North Los Angeles County average VMT per employee Retail Net increase in total regional VMT

Exhibit 5 provides the City’s VMT thresholds of significance for residential, employment uses, retail, and related land use projects based on these criteria.

12 CEQA Guidelines, § 15064.7(c).
13 OPR (2018), pp. 10-12.
14 Ibid., pp. 15-16.

SB 743 VMT Implementation Guidelines for the City of Palmdale 9 Exhibit 5 – VMT Thresholds of Significance*
Land Use VMT Threshold Basis
Residential 19.0 VMT/capita15 15% below existing North Los Angeles County average VMT per capita.

Employment 16.15 Work VMT/Employee16 15% below existing North Los Angeles County average Work VMT per employee
Retail Net regional change Using North Los Angeles County VMT as the basis Other
Customer Net regional change Using North Los Angeles County VMT as the basis *Current as of March 2024. Note that the values in this table will be updated periodically based on the availability of new information as determined by the City of Palmdale. As such, care should be taken in the use of this document to verify the then current values for Exhibit 5.

Note that the inclusion of “Other Customer” refers to all other service and goods providers that are not included in the basic retail category.

Based on changes to the City’s General Plan travel demand model , the availability of new information, and/or improvements to calculation methods, there will be periodic updates to the numerical threshold values shown in Exhibit 5. As such, care should be taken in the use of this document to verify the then current values for Exhibit 5. However, the relative approach for calculating the thresholds should remain the same. Furthermore the values in the City’s current VMT analysis tool, discussed in the next section, will supersede the information provided in Exhibit 5.

VMT Analysis Tool
The City of Palmdale has developed a VMT analysis tool for use in SB 743 land use project analysis. The purpose of the tool is to calculate VMT for a land use project without the use of the City’s General Plan travel demand model . As with any sketch planning tool, there are distinct limitations in terms of its application including limits on the type and size of development that the tool can be applied to. Generally speaking, it is not appropriate that the tool be applied to land use projects that have greater than 2,500 total trips per day unless the City has made a determination that it is an appropriate application. Note that it is anticipated that the tool will continue to evolve in response to data and methodological changes and as such, it is important that the most current version of the tool be utilized. Broadly, the tool provides the following information:
▪ Institute of Transportation Engineers (ITE) Trip Generation ▪ VMT Threshold Analysis
▪ Greenhouse Gas (GHG) Estimation
▪ Transportation Demand Management (TDM) Evaluation
▪ Potential VMT Mitigation Bank Costs

15 Residential VMT specifically applies to all Home-Based trips residential trips as represented in the City’s General Plan Travel Demand Model. 16 Work VMT specifically applies to commute trips as represented in the Travel Demand Model.

SB 743 VMT Implementation Guidelines for the City of Palmdale 10 Step 4: VMT Analysis
Prior to undertaking a VMT analysis for a proposed project, a scope of work that is compliant with the City of Palmdale’s requirements should be prepared and submitted for approval. Given the potential complexities of some uses, particularly those not identified as residential, retail, or other primary employment uses such as office or industrial , an agreement with the City regarding the threshold and methodology is important to avoid completing an analysis that is not compliant with CEQA and the City of Palmdale’s standards.

Relevant documentation should be provided that includes enough detail that assumptions are clearly understandable and methods that can be replicated . In addition, the results of the VMT analysis for the proposed project should be provided in the relevant documentation.

Step 5: Mitigation Measures
If a significant transportation impact is identified, the City of Palmdale, as the lead agency, will require that mitigation or alternatives be considered. CEQA requires that the mitigation measures or alternatives are included in the project’s environmental assessment analysis. OPR has provided a list of potential measures to reduce VMT but CEQA allows for a lead agency, such as the City of Palmdale, discretion in the selection of mitigation measures.

The type and size of the project will determine the most appropriate mitigation strategies for VMT impacts.

For large projects such as general plans or specific plans, VMT mitigations should concentrate on the project’s density and land use mix, site desig n, regional policies, and availability of transit, bicycle, and pedestrian facilities. For smaller projects such as an individual development project, VMT mitigations will typically require the preparation of a transportation demand management (TDM) program. A TDM program is a combination of strategies to reduce VMT. The program is created by an applicant for their land use project based on a list of strategies agreed to with the City of Palmdale.

The City of Palmdale has developed a list of potential TDM strategies appropriate for the City and what magnitude of VMT reduction could be achieved. The TDM options are based on those identified in by the California Air Pollution Control Officers Association (CAPCOA) recommendations as provided in the 2021 publication Handbook for Analyzing Greenhouse Gas Emission Reductions, Assessing Climate Vulnerabilities, and Advancing Health and Equity. The City of Palmdale’s VMT analysis tool includes TDM options and the ability to calculate the total VMT reduction based on a combination of the TDMs selected and their relative efficacy at reducing the project’s VMT.

The City of Palmdale has also established a VMT Banking Mitigation Program to address mitigation needs.

Discussion on this program is provided in the next section.

Step 6: Monitoring Mitigation
As required by CEQA, the City of Palmdale will require ongoing mitigation monitoring and reporting when mitigation measures are adopted as part of an approved project. The specifics of this will be developed on a project -by-project basis. As an example, the City may require the determination of a “trip cap” (the number of vehicle trips entering/existing the site that would correspond with the threshold VMT estimate) as part of the mitigation plan. Subsequently, the project could be required to provide annua l reporting of driveway counts collected by an acceptable third party to demonstrate the effectiveness of the adopted mitigation measures.

SB 743 VMT Implementation Guidelines for the City of Palmdale 11 Transportation Projects
Depending on the specific nature of a transportation project , it can alter trip patterns, trip lengths, and even trip generation. Research has determined that capacity-enhancing projects can and often do increase VMT. This phenomenon is commonly referred to as “induced demand”. While methods are generally less developed for the analysis of induced demand compared to other areas of transportation analysis, there is still the need to quantify and understand its impact to the transportation system considering the requirements of SB 743.

Similar to land use projects, the approach to transportation project analysis closely align s with the 2018 OPR Guidance. In terms of analysis, the analyst should first determine whether the transportation project has been prescreened and determined to have a non -significant impact as described in the following section.

Screen for Non-Significant Transportation Impact
The following non-significant impact examples are provided directly from the 2018 OPR Guidance17:
▪ Rehabilitation, maintenance, replacement, safety, and repair projects designed to improve the condition of existing transportation assets (e.g., highways, roadways, bridges, culverts); ▪ Transportation Management System field elements such as cameras, message signs, detection, or signals; tunnels; transit systems; and assets that serve bicycle and pedestrian facilities) and that do not add additional motor vehicle capacity;
▪ Roadside safety devices or hardware installation such as median barriers and guardrails; ▪ Roadway shoulder enhancements to provide “breakdown space,” dedicated space for use only by transit vehicles, to provide bicycle access, or to otherwise improve safety, but which will not be used as automobile vehicle travel lanes;
▪ Addition of an auxiliary lane of less than one mile in length designed to improve roadway safety; ▪ Installation, removal, or reconfiguration of traffic lanes that are not for through traffic, such as left, right, and U -turn pockets, two -way left turn lanes, or emergency breakdown lanes that are not utilized as through lanes;
▪ Addition of roadway capacity on local or collector streets provided the project also substantially improves conditions for pedestrians, cyclists, and, if applicable, transit; ▪ Conversion of existing general-purpose lanes (including ramps) to managed lanes or transit lanes, or changing lane management in a manner that would not substantially increase vehicle travel; ▪ Addition of a new lane that is permanently restricted to use only by transit vehicles; ▪ Reduction in number of through lanes;
▪ Grade separation to separate vehicles from rail, transit, pedestrians or bicycles, or to replace a lane in order to separate preferential vehicles (e.g., HOV, HOT, or trucks) from general vehicles; ▪ Installation, removal, or reconfiguration of traffic control devices, including Transit Signal Priority (TSP) features;

17 OPR (2018), p. 20.

SB 743 VMT Implementation Guidelines for the City of Palmdale 12 ▪ Installation of traffic metering systems, detection systems, cameras, changeable message signs and other electronics designed to optimize vehicle, bicycle, or pedestrian flow; ▪ Timing of signals to optimize vehicle, bicycle, or pedestrian flow; ▪ Installation of roundabouts or traffic circles;
▪ Installation or reconfiguration of traffic calming devices; ▪ Adoption of or increase in tolls;
▪ Addition of tolled lanes, where tolls are sufficient to mitigate VMT increase; ▪ Initiation of new transit service;
▪ Conversion of streets from one-way to two-way operation with no net increase in number of traffic lanes;
▪ Removal or relocation of off-street or on-street parking spaces; ▪ Adoption or modification of on-street parking or loading restrictions (including meters, time limits, accessible spaces, and preferential/reserved parking permit programs); ▪ Addition of traffic wayfinding signage;
▪ Rehabilitation and maintenance projects that do not add motor vehicle capacity; ▪ Addition of new or enhanced bike or pedestrian facilities on existing streets/highways or within existing public rights-of-way;
▪ Addition of Class I bike paths, trails, multi -use paths, or other off -road facilities that serve non - motorized travel;
▪ Installation of publicly available alternative fuel/charging infrastructure; and ▪ Addition of passing lanes, truck climbing lanes, or truck brake-check lanes in rural areas that do not increase overall vehicle capacity along the corridor.
▪ Construction of new park and ride facilities.

Significance Threshold and Methodology
For projects that increase roadway capacity and are not identified under the Non -Significant Screening Criteria in the prior section, the significance criterion should be “Net Change” in regional VMT. A finding of a significant impact would be determined if a transportation project results in a net increase in regional VMT using the City’s General Plan travel demand model.

VMT Mitigation Banking Program
This section discusses a programmatic approach to respond to the need for feasible VMT mitigation within the City of Palmdale. In suburban areas such as the City of Palmdale, VMT impact analyses can result in a finding of a significant adverse transportation impact, particularly in undeveloped areas, due to a lack of land use density and diversity. In addition, with fewer transportation options compared to more urbanized areas, mitigating impacts in suburban areas can prove to be more difficult than under the former LOS methodology for analyzing traffic impacts . For many jurisdictions like the City of Palmdale, the switch to SB 743 VMT Implementation Guidelines for the City of Palmdale 13 the VMT methodology under SB 743 is resulting in a reversal in the results of transportation impact significance findings as compared to the analyses conducted under the former LOS-based methodology.

As a practical matter, the new VMT methodology is also a more restrictive approach to identifying transportation impacts both because of the basis for setting an impact threshold and limited mitigation opportunities. In terms of the threshold of significance, OPR recommends that projects consisting of residential or general employment category land uses effectively need to be located in an area where they are 15 -percent less than the regional average VMT 18 for similar uses. Effectively this means that new projects must be located in an area where they are more efficient than 65 -percent of similar uses from a VMT standpoint. Given that most development in the City of Palmdale and elsewhere is still not planned as infill, this is resulting in an increasing need for additional feasible mitigation solutions for VMT impacts.

To date, VMT mitigation across the State has relied heavily on TDMs. These measures generally represent two basic approaches: infrastructure and policy. The documents produced by CAPC OA regarding mitigation, as noted previously, are some of the primary bases for estimating the effect of TDM mitigation in California. Although CAPCOA is an invaluable resource, many of the TDM mitigation options provided have less efficacy in suburban and rural contexts. TDMs can also be challenging from the standpoint of mitigation monitoring and are often unpopular with project applicants because they may need to be managed and paid for in perpetuity. These limitations have led jurisdictions, including the City of Palmdale, to increasingly consider programmatic approaches, in addition to TDMs, for VMT mitigation. Programmatic approaches can allow for collectively funding larger mitigation projects such that a land use or transportation project can obtain an amount of mitigation commensurate with their impact with a single monetary payment. Programmatic approaches can also provide a public benefit in terms of funding transportation improvements that would not otherwise be constructed, resulting in improvements to congestion, GHG emissions, increased transportation choices, and additional opp ortunities for active transportation.

The City of Palmdale has developed a VMT Mitigation Banking Program to help address the need for VMT mitigation. A mitigation bank attempts to create a monetary value for VMT reduction such that a developer could purchase VMT reduction credits. These credits are then purchased for the purposes of mitigating VMT in excess of determined impact thresholds. The underlying projects may be either regionally or locally beneficial to the area in which the project is located.

Feasible Mitigation
This section discusses how CEQA, and the State of California, treat cases in which a project has a significant transportation impact and therefore is required to provide feasible mitigation. Site-specific solutions often rely on TDMs, as discussed in the previous section, although project land use modifications can also be utilized to mitigate impacts. Projects that cannot mitigate their VMT impact fully using TDMs must rely on non-site-specific approaches if full mitigation is to be achieved. If full miti gation is not possible, CEQA nonetheless requires that feasible mitigation measures be imposed to reduce the severity of the impact even if the impact remains significant with the mitigation.

Based on this, if a project cannot fully mitigate its VMT impact by implementing TDMs , it will require a combination of site-specific measures and non-site-specific measures, including the VMT mitigation bank discussed in the next section, in order to achieve mitigation. This could mean using only site -specific mitigation measures to the City’s threshold, using only the VMT mitigation bank to reach the City’s threshold, or using a combination of both site-specific mitigation measures and the VMT mitigation bank

18 OPR (2018), pp. 12 & 15
SB 743 VMT Implementation Guidelines for the City of Palmdale 14 to reach the City’s threshold. For example, a project that is 15-percent above the City’s threshold could use TDM measures to reduce the project’s VMT by 6-percent and then use the VMT mitigation bank to reduce VMT by the remaining 9-percent.

Initial VMT Banking Projects
Exhibit 6 below provides information on the initial VMT banking projects that land use and transportation projects can contribute funds to for the purpose of mitigating their VMT impacts. The primary focus of these projects is to construct or improve active transportation facilities that will replace vehicular trips , thereby reducing VMT. Note that the City may, at its discretion, add additional projects to this list which may alter the then current fee structure discussed in the Maximum Banking Credit Rate provided later in this document. A key map of all the trails is provided as part of Appendix C.

Exhibit 6 – Initial VMT Banking Projects
Trail ID Type Name of Project Description Length
(Bi-Directional)
Cost Estimate
($)
1 Bike/Ped Rancho Vista Blvd,
Avenue N to SR-14
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

10.78 mi $91,454
2 Bike/Ped
45th Street, Bolz
Ranch to W
Avenue O
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

4.52 mi $74,934
3 Bike/Ped 30th Street W to
W Avenue P-8
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

6.69 mi $80,666
4 Bike/Ped
W Avenue Q, 10th
Street W to 60th
St E
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

14.04 mi $100,066
5 Bike/Ped
E Avenue R, Tierra
Subida to 70th
Street E
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

5.10 mi $97,356
6 Bike/Ped
Avenue R-8 (Palm
Vista to 45th
Street E)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

6.73 mi $80,774
7 Bike/Ped
10th Street W
(Marketplace
Entrance to W
Avenue S)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

6.14 mi $79,209
SB 743 VMT Implementation Guidelines for the City of Palmdale 15 8 Bike/Ped
20th Street E
(Palmdale
Boulevard to
Avenue S)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

3.00 mi $70,914
9 Bike/Ped
35th Street E
(Avenue Q to
Fairfield Avenue)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

4.85 mi $75,794
10 Bike/Ped
40th Street E
(Avenue Q to
Avenue S)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

4.09 mi $73,807
11 Bike/Ped 10th St E (Ave P8
to Palmdale Blvd)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

2.08 mi $68,491
12 Bike/Ped
15th St E (East Ave
P to Palmdale
Blvd)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

3.12 mi $71,237
13 Bike/Ped
20th St E
(Palmdale Blvd to
Ave S)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

1.49 mi $66,934
14 Bike/Ped 25th St E (Ave P to
E Ave S)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

6.12 mi $79,157
15 Bike/Ped 30th St E ( Ave P to
Palmdale Blvd)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

3.02 mi $70,973
16 Bike/Ped 40th St E (Ave S12
to Aqueduct Trail)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

2.42 mi $69,389
17 Bike/Ped 60th St E (E Ave R
to E Ave S)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

1.84 mi $67,858
SB 743 VMT Implementation Guidelines for the City of Palmdale 16 18 Bike/Ped
30th St E
(Palmdale Blvd E
Ave S)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

3.04 mi $71,026
19 Bike/Ped Palmdale Blvd (E
47th to E 70th)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

4.58 mi $75,091
20 Bike/Ped
Elizabeth Lake Rd
(Godde Hill Rd to
Tierra Subida Ave)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

9.42 mi $87,869
21 Bike/Ped
Class I: Ave R 12
from Oxford Dr to
37th St E, 37th St E
from E Ave R-12 to
Ave S)
Class I Separated
Bikeway 3.38 mi $71,923
22 Bike/Ped
Sprinline, R12, and
Halfmoon (E Ave
P8 to E Ave S
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

2.14 mi $68,650
23 Bike/Ped
Olive Ave and
Fairfield Ave (25th
to 35th)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

2.24 mi $68,914
24 Bike/Ped E Ave S8 (37th St E
to Fort Tejon Rd)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

2.58 mi $69,811
25 Bike/Ped Avenue S (45th St
E to 75th St E)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

6.10 mi $79,104
26 Bike/Ped
70th St E
(Palmdale Blvd to
E Ave S)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

3.16 mi $71,342
27 Bike/Ped
75th St E
(Palmdale Blvd to
E Ave S)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

2.98 mi $70,867
28 Bike/Ped E Ave P8 75th St to
110th St E
Stripe buffered
bike lanes and 7.02 mi $81,533
SB 743 VMT Implementation Guidelines for the City of Palmdale 17 some pavement
and shoulder
rehabilitation
29 Bike/Ped E 110th St (Ave M
to Ave P-8)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

7.08 mi $81,691
30 Bike/Ped Ave M (50th St E
to 110th St E)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

12.14 mi $95,050
31 Bike/Ped 50th and P (Ave O
to 50th)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

3.82 mi $73,085
32 Bike/Ped
Airport Loop (Ave
M, 50th, Rancho
Vista
Class I Separated
Bikeway 27.28 mi $135,019
33 Bike/Ped
Technology Drive
(10th St W to
Sierra Hwy)
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

1.46 mi $66,859
34 Bike/Ped
Creek Trail Class I
(Ave M to
Elizabeth Lake)
Class I Separated
Bikeway 9.78 mi $88,819
35 Bike/Ped W Ave O (30th St
W to Sierra Hwy
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

3.46 mi $72,134
36 Bike/Ped
W 60th St from
Columbia Way to
Approx Crane
Court, Entar Drive
and W ave N8 to
45th St W
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

7.76 mi $83,486
37 Bike/Ped
Columbia Way
(80th St W to 60th
St W
Stripe buffered
bike lanes and
some pavement
and shoulder
rehabilitation

6.30 mi $79,632
38 Park and Ride 10th St West New Park and Ride
Facility N/A $3,000,000
Total $.5,910,917

SB 743 VMT Implementation Guidelines for the City of Palmdale 18 Maximum VMT Banking Credit Rate and Nexus
The four steps to identify the VMT Mitigation Banking projects and calculate the VMT Banking credit rate are as follows:

1. Identify appropriate mitigation projects

2. Determine the cost of construction of the mitigation projects

3. Determine the total VMT that can be mitigated by the projects

4. Calculate the maximum mitigation credit rate per VMT by dividing total cost of the mitigation projects by the total VMT mitigated by the projects to determine the rate per unit of VMT The approach outlined above results in a calculation of the maximum rate per VMT mitigated based on the list of projects identified in Exhibit 6. The full cost of funding these improvements is used to calculate the maximum VMT Mitigation Banking credit rate per VMT the City could apply to all new residential and non- residential development in the City that result in VMT impacts.

As part of this analysis, a nexus evaluation was undertaken to support the basis of the VMT Mitigation Bank’s development and credit rate. Consistent with California’s Mitigation Fee Act, to develop a fee program a local agency must identify the purpose of the fee (Section 66001(a)(1)). The City of Palmdale’s policy is that new development shall only contribute to the VMT banking credit rate if needed for mitigation of their VMT impacts. In addition, the costs of constructing the improvements to help mitigate VMT citywide will be implemented through the VMT mitigation banking program administered by t he City of Palmdale.

As noted above, the projects that are included in the City of Palmdale’s VMT Mitigation Banking Program will fund the construction of facilities that support active transportation (cycling) to mitigate VMT impacts from new development by moving trips from automobiles to bike facilities. As the benefit provided by the VMT reducing projects could not be sufficiently analyzed using the City’s General Plan travel demand model given limitations within the model related to the representation of bike facilities , the projects were analyzed using off-model techniques. Specifically, bicycle improvements were evaluated based on NCHRP 552 Guidelines for Analysis of Investments in Bicycle Facilities. This approach relies on spatial analysis techniques to determine the likely number of new active transportation users resulting from the introduction of a new bicycle facility. This approach also removes the number of new users who will use the facility for exercise as exercise will not replace vehicle trips and thus, will no t reduce existing VMT.

Based on survey data of bicyclists throughout the United States, both for adults and children, the percentage of those cycling for commute purposes was estimated to be 11-percent of all riders and those cycling for exercise was estimated to be 28-percent of all riders. Child cyclists are included in the analysis as they may use the new facility to access schools, friends, or stores among other destinations that previously they would need a parent to drive them to. Thus, with the remov al of riders for exercise, only riders that would use the facilities to replace vehicle trips were included in the analysis. Exhibit 7 shows the comparison between the existing ridership and future induced riders based on the construction of the projects.

Exhibit 7 – Future Project Induced Daily Bicycle Demand Demand Existing
(2023)
Future Induced
Riders (2033)
Adult Bicyclists 2,708 4,663
Child Bicyclists 2,828 5,815
Total Facility Users 5,536 10,478
SB 743 VMT Implementation Guidelines for the City of Palmdale 19 As shown in Exhibit 7, the VMT-reducing projects could add almost 10,480 bicycle trips per day throughout the City by 203 3. The replacement of vehicle trips by the induced riders will provide an alternative to vehicular travel, as well as significant health and recreational value. While not related to VMT mitigation, it should also be noted that construction of the pedestrian and bicycle improvements will result in additional safety benefits by reducing the potential for vehicle-bicycle and vehicle-pedestrian conflicts.

The park and ride facility at 10th Street West (Project #38) was examined for its VMT reduction capabilities as part of the Palmdale Park and Ride Study. The total market for the new park and ride was calculated based on the service area taken from existing facilities, capture of the existing carpool market due to added convenience of additional park and ride facilities, and the ability to trans fer to transit routes that serve stops near the park and ride. The total reduction of VMT from the opening of the proposed location at 10th Street West is 1,378,627 VMT travelled per year or roughly 3,777 VMT per day. For more information on the methodology and the calculations, see the Palmdale Park and Ride Study dated March 2024.

Total VMT Reduction
The total VMT reduction per project for the bicycle projects was calculated by multiplying the average bicycle trip length taken by new riders induced by the construction of a project by the total number of new riders and the project’s lifecycle. For the purposes of this analysis, the average bicycle trip length used was

1.8-miles, based on data from the Replica transportation analytics platform. The number of new bicycle riders for each project was multiplied by the average trip length to obtain the total daily VMT reduction for each project. Each project’s VMT reduction was added together to determine the total VMT reduction for all bicycle projects, which for the projects listed in Exhibit 6 total 18,860 daily VMT.

VMT Banking Credit Rate
To determine the overall VMT banking credit rate, the total project cost s of for the bicycle and park and ride lot projects were estimated as $2,910,917 and $3,000,000, respectively, for a total project cost of $5,910,917. This cost was divided by the total VMT reduction s for the bicycle and park and ride projects, which are 18,860 and 3,777 daily VMT, respectively, for a total daily VMT reduction of 22,637 VMT. This calculation resulted in a cost per VMT reduction of $261. Note that this rate does not include any non-fee funding sources (grants, etc.). The addition of any funding sources for these projects could reduce the cost to fully implement projects included in Exhibit 6.

Note that the VMT Banking Credit Rate provided above will be updated on an ongoing basis in response to changes to the program, underlying projects, and/or updated cost information. As such, the VMT banking credit rate provided above should not be assumed to represent the current rate and instead that should be obtained directly from the City’s website.

VMT Mitigation Banking Program Administration and Monitoring The City of Palmdale shall set up a separate account for the purpose of tracking the collection of payments into the VMT Mitigation Banking Program and the VMT Analysis Fee to run and maintain the TREDLite analysis tool. The fee for the City of Palmdale to run TREDLite for new projects is $600. These accounts shall be monitored by the City Engineer or person designated by the City Engineer to ensure purchased VMT credits are used for constructing appropriate projects, as identified in Exhibit 6, to achieve the intended VMT reduction. As part of the annual city budget process , the City Engineer , Public Works Director, or person designated by either of these individuals shall include a progress report on any funds accumulated in the VMT Mitigation Banking Program and expenditures on constructing or improving active transportation facilities providing additional VMT -reducing investments that would not have occurred if bank funding were not available.

Appendix A
Screening Maps

SB 743 VMT Implementation Guidelines for the City of Palmdale 21 Appendix B
Substantial Evidence for Unit-Based Screening Thresholds for Small Projects This document identifies a 3,000 Metric Tons of Carbon Dioxide Equivalent (MTCO2e) per year screening level threshold to identify projects that require the use of the screening tables or a project-specific technical analysis to quantify and mitigate project emissions. Projects that generate less than 3,000 Metric Tons (MT) of "Carbon Dioxide Equivalent (CO2e)" per year can be presumed to have less than significant impact on VMT since the intent and goals of SB 743 are to meet the State’s GHG reduction goals. A threshold of 3,000 MT of CO2e per year is consistent with the CEQA GHG threshold of significance recommended by the South Coast Air Quality Management District (SCAQMD), which is the most stringent in the region. Several recent CEQA documents produced for development projects within the City of Palmdale use the 3,000 MTCO2e threshold including the Palmdale Logistics Park EIR and the 8th Street Industrial EIR.

The City of Palmdale determined the size of development that is too small to be able to provide the level of greenhouse gas (GHG) emission reductions expected from the screening tables or alternate emission analysis method. To do this the City determined the GHG emission amount allowed by a project such that 90-percent of the emissions, on average, from all projects would exceed that level and be “captured” by the screening table or alternate emission analysis method. The GHG emissions calculations from the City’s VMT Analysis Tool should be used in conjunction with the City’s GHG emissions screening tables.

California Emissions Estimator Model (CalEEMod 2022.1) was used to determine the maximum number of dwelling units or square footage that would remain within the 3,000 MTCO2e per year screening threshold.

CalEEMod is a statewide land use emissions computer model designed to quantify potential criteria pollutant emissions associated with both construction and operations from a variety of land use projects.

This model was selected because it is provided by the California Air Resources Board (CARB) to be used statewide for developing project‐level GHG emissions. CalEEMod was used with the built‐in default trip lengths and types.

CalEEMod runs were conducted for a variety of land uses in order to determine the land use units that trigger the 3,000 MT CO2e/year threshold, as well the CO2e emissions on a per -unit (dwelling unit or thousand square feet) rate that could be used in the City’s VMT Analysis Tool. The land uses and corresponding CO2e emissions rates are shown in Table B-1.

Table B-1 - Land Uses and CO2e Emissions Rates
Land Use DU or TSF Total MTCO2e MTCO2e per DU or TSF
Single Family 202 2,996 14.83
Multi-Family (low-rise) 213 2,996 14.07
Multi-Family (mid-rise) 341 2,996 8.79
General Office Building 254 3,000 11.81
Retail 64 2,991 46.73
* DU = dwelling unit, TSF = Thousand Square Feet
CalEEMod relies on known emissions data associated with certain activities or equipment (i.e. default values) that can be used if site -specific information is not available. CalEEMod contains default values to use in each specific local air district region or county. Input values were selected to be specific to the South Coast portion of Riverside County as the majority of future development that would utilize the screening SB 743 VMT Implementation Guidelines for the City of Palmdale 23 thresholds is anticipated in this area of the County. The following outlines the assumptions used in the CalEEMod calculations:
▪ CalEEMod uses the daily trip generation rates contained within the Institute of Transportation Engineer’s (ITE) Trip Generation Manual, 10th Edition by default. ▪ Rural trip lengths are longer than urban trip lengths and were conservatively used. ▪ The CalEEMod mobile source (vehicle) emissions are based on emissions rates from CARB’s EMissions FACtor Model (EMFAC). CalEEMod uses the default vehicle fleet mix from EMFAC2021 v1.0.1 for determining vehicle emissions.
▪ The CalEEMod carbon intensity factor was adjusted within the model to represent Southern California Edison’s (SCE) current emissions rate. The electricity emission intensity factor in CalEEMod was revised to use the SCE’s reported rate in their 2018 Corpor ate Responsibility and Sustainability Report. As of 2017, SCE’s power mix was at 32 percent renewable energy and will be required to achieve the 60 percent renewable energy goal by 2030 established by SB 100. ▪ Energy savings from water conservation resulting from the Green Building Code Standards for indoor water use and California Model Water Efficient Landscape Ordinance for outdoor water use are not included in CalEEMod. Conservatively, no updates were made to CalEEMod to account for these measures.

The 2019 Building Energy Efficiency Standards (adopted on May 9, 2018) took effect on January 1, 2020.

Under the 2019 standards, homes would use about 53 percent less energy and nonresidential buildings would use about 30 -percent less energy than buildings under the 2016 standards. Conservatively, no updates were made to CalEEMod to account for these reductions under the 2019 Building Energy Efficiency Standards.

Appendix C
Key Map

City Council Staff Report
DATE: APRIL 17, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT

PLANNING DIVISION
DISTRICT: 4
SUBJECT: ADOPT RESOLUTION NO. CC 2024-048; APPROVING A FORM OF DENSITY BONUS AGREEMENT WITH MAISON’S PALMDALE BLVD
150, LLC, TO FACILITATE THE CONSTRUCTION OF TENTATIVE
TRACT MAP 83359 LOCATED ON THE SOUTH SIDE OF PALMDALE
BOULEVARD BETWEEN 50 th STREET EAST AND 55 th STREET
EAST (APN: 3023-002-084)

RECOMMENDATION
The Planning Commission recommends that the City Council:

1. Receive public testimony regarding the proposed Density Bonus Agreement (AGR) 24-0002 (A-8767);

2. Adopt Resolution No. CC 2024-048 approving a form of Density Bonus Agreement (AGR) 24-0002 (A-8767); and,

3. Authorize City Manager or her designee to exercise the option to amend Density Bonus Agreement (AGR ) 24-0002 (A -8767), including minimal and or/non - substantial changes.

BACKGROUND
On March 14, 2024, the Planning Commission adopted Resolution No. PC-2024-004 approving Tentative Tract Map 83359 and recommending City Council approv e a form of Density Bonus Agreement (AGR) 24-0002 (A-8767). The Tentative Tract Map will subdivide a 20 -acre parcel into 66 parcels to facilitate the future construction of approximately 190 dwelling units comprised of a detached single -family dwelling unit, an accessory dwelling unit (ADU), and a junior accessory dwelling unit (JADU) on the 64 lots dedicated for resid ential uses. The two remaining parcels will be used for a drainage basin and a parcel dedicated to a shared common area for recreation purposes.

Report to Mayor and City Council
Re: Reso. No. CC 2024-048
April 17, 2024

Page 2 ends

Ten percent of the units will be available to households with incomes that do not exceed the maximum income of low-income households in Los Angeles County, as determined by the California Department of Housing and Community Development. The request includes two concessions from the development standards as allowed by the State Density Bonus Law (California Government Code Section 65915).

DISCUSSION
A density bonus is an increase in the overall number of housing units that a developer may build on a site in exchange for providing affordable housing. State Density Bonus Law, pursuant to Section 65915 of the California Government Code, offers incentives that are intended to encourage the development of affordable housing, including up to an 80 percent increase in density.

The project site has a General Plan Land Use designation and zone of Single-Family Residential 3 (SFR 3, 7,000 square foot lots; up to six dwelling units per acre). The project site is approximately 20 acres, and the maximum density is 120 detached single-family residential units. Density Bonus Law requires that when 10 percent of all units are for low- income households, the City must grant a 20 percent density bonus over the base density, which would allow an additional four units for this development. Although the maximum density for the project site is 120 units, the residential development does not require an increased density and the applicant proposes to construct a total of 64 detached single- family residential units and 127 ADU’s and JADU’s for a total of 191 residential units.

Under California Fair Housing Laws, the proposed ADUs and JADUs are not subject to a jurisdiction's density requirements.

Of the 191 units proposed, 10 percent of the units are required to be reserved for low- income households. Additionally, the owner has requested cost-saving concessions in accordance with Government Code Section 65915, et seq. and PMC Section 17.25.020 (Density Bonus Agreements), as follows:

1. To allow composite shingles for roofing material.

2. To allow a reduction of the required garage width of 20 feet.

The Housing Division has determined that granting the concessions listed above will result in actual and identifiable cost reductions to provide affordable housing. In addition, the proposed project will contribute to the City’s Regional Housing Needs Assessment (RHNA) allocation.

Report to Mayor and City Council
Re: Reso. No. CC 2024-048
April 17, 2024

Page 3 ends

FIGURE 1 – AERIAL MAP

FISCAL IMPACT
$0; The applicant paid the fees associated with the submittal of the application.

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

E. Transform housing inventory to meet the changing lifestyle and market demands.

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

ATTACHMENTS
Reso. No. CC 2024-048
Reso. No. PC-2024-004
East Palmdale Boulevard
55thStreet East
50th Street East
Project Site

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-048

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE APPROVING DENSITY BONUS AGREEMENT (AGR) 24-0002 (A-8767) WITH MAISON’S PALMDALE BLVD 150, LLC; TO FACILITATE THE FUTURE CONSTRUCTION OF APPROXIMATELY 191 DWELLING
UNITS COMPRISED OF 64 DETACHED SINGLE-FAMILY DWELLING
UNITS AND 127 ACCESSORY DWELLING UNITS AND JUNIOR

ACCESSORY DWELLING UNITS AND DRAINAGE BASIN LOCATED ON
THE SOUTH SIDE OF PALMDALE BOULEVARD BETWEEN 50th STREET EAST AND 55th STREET EAST (APN: 3023-002-184)
WHEREAS, Maison’s Palmdale Blvd 150, LLC has filed an application requesting the Planning Commission recommend City Council approve a form of Density Bonus Agreement (AGR) 24-0002 (A-8767), described herein (hereinafter “Application”); and WHEREAS, The Application applies to a parcel located on the south side of Palmdale Boulevard, between 50th Street East and 55th Street East indicated on the Los Angeles Assessor roll as Assessor Parcel Number 3023-002-184, legally described on Exhibit A hereto and shown on the map attached as Exhibit B.

WHEREAS, On March 14, 2024, the Planning Commission of the City of Palmdale conducted a duly noticed public hearing on the Application and recommended City Council approval of the Application on that date; and
WHEREAS, on April 17, 2024, the City Council of the City of Palmdale conducted a duly noticed public hearing on the Application and concluded said hearing on that date.

Evidence, both written and oral, was duly presented and considered by the City Council at the aforesaid public hearing, including but not limited to, the staff report dated April 17, 2024; and
WHEREAS, All legal prerequisites to the adoption of this Resolution have occurred.

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

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

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The City Council hereby finds as follows with respect to the environmental document prepared for the project:

Resolution No. CC 2024-048

Page 2 ends

A Pursuant to the California Environmental Quality Act (CEQA), an Initial Study, Mitigated Negative Declaration, and Mitigation Monitoring and Reporting Program were prepared for the project finding that, with the incorporation of mitigation measures, the project would not have a significant impact on the environment.

The proposed project has the potential to have a significant effect on the environment in the following areas: Biological Resources, Cultural Resources, Geology/Soils, and Greenhouse Gas Emissions. Mitigation measures established by the MMRP will be implemented to reduce potential impacts to a level that is less than significant.

B The custodian of records for all other materials which constitute the record of proceedings upon which the City Council’s decision is based, is the Planning Manager of the City of Palmdale. These documents are available for public review in the Planning Division of the City of Palmdale located at 38250 Sierra Highway, Palmdale, California 93550, telephone (661) 267-5200.

SECTION 3. Based upon substantial evidence presented to the City Council during the above-referenced April 17, 2024, public hearing, including public testimony, and written and oral staff reports, the City Council specifically finds as follows:

A The proposed development agreement conforms with the maps and policies of the General Plan or any applicable Specific Plan; The proposed project involves the subdivision of a 20-acre parcel for the future construction of 191 dwelling units comprised of detached single- family residences, accessory dwelling units (ADU) and junior accessory dwelling units (JADU). The project is consistent and compatible with both the General Plan and Zoning Ordinance as modified with the DBA, as described in Exhibits C and D. The project site has a General Plan Land Use designation and zone of Single Family Residential 3 (SFR 3), which allows up to six dwelling units per acre. Per State Density Bonus Law, when 10 percent of all units are reserved for low-income households, the City must grant a 20 percent density bonus over the base density, which would allow an additional 4 units for this development. Although the maximum density for the project site is 120 units, the residential development does not require an increased density and the applicant proposes to construct a total of 64 detached single-family residential units and 127 ADU’s and JADU’s for a total of 191 residential units. Under California Fair Housing Laws, the proposed ADUs and JADUs are not subject to a jurisdiction's density requirements.

Resolution No. CC 2024-048

Page 3 ends

Of the 191 units proposed, 10 percent of the units are required to be reserved for low-income households. Furthermore, Density Bonus Law allows for the granting of concessions to the development standards in order to achieve cost-savings in the production of affordable housing. With the exception of the concessions related to design, the project will comply with the development standards for the SFR 3 zone.

B The proposed Density Bonus Agreement complies with the requirements of California Government Code Section 65915 et. seq. (DBA) The project site has a General Plan Land Use designation and zone of SFR

3. Density Bonus Law requires that, when 10 percent of all units are for low-income households, the City must grant a 20 percent density bonus over the base density, which would allow an additional 4 units for this development. Although the maximum density for the project site is 120 units, the residential development does not require an increased density and the applicant proposes to construct a total of 64 detached single-family residential units and 127 ADU’s and JADU’s for a total of 191 residential units.

Of the 191 units proposed, 10 percent of the units are required to be reserved for low-income households. Additionally, the owner has requested cost-saving concessions in accordance with Government Code Section 65915, et seq. and PMC Section 17.25.110, as follows:

1. To allow composite shingles for roofing material.

2. To allow a reduction of the required garage width of 20 feet.

SECTION 4. Based on the findings and conclusions set forth in Sections 1, 2, and 3 above, the City Council approves a form of (AGR) 24-0002 (A-8767) set forth in Exhibit C.

Resolution No. CC 2024-048

Page 4 ends

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

PASSED, APPROVED and ADOPTED this 17th day of April, 2024. _________________________________
Approved as to form: Austin Bishop, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, City Clerk
City Attorney
I, Rochelle Scott, City Clerk of the City 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 17th day of April, 2024, by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, City Clerk

EXHIBIT A
LEGAL DESCRIPTION FOR DENSITY BONUS AGREEMENT 24-0002 AND TENTATIVE TRACT MAP 83359

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

LOT 10 OF TRACT NO, 2916, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 31, PAGE 13, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

APN: 3023-002-184

EXHIBIT B
AERIAL MAP FOR TENTATIVE TRACT MAP 83359
East Palmdale Boulevard
55thStreet East
50th Street East
Project Site

OFFICIAL BUSINESS )
Document entitled to free )
Recording per California )
Government Code Section 27383 )
)

RECORDING REQUESTED BY AND )
WHEN RECORDED MAIL TO: )
)
City of Palmdale )
38300 Sierra Highway, Suite C )
Palmdale, CA 93550 )
Attn: City Clerk )
______________________________________________________________________________ SPACE ABOVE THIS LINE IS FOR RECORDER’S USE
APN: 3023-002-184

DENSITY BONUS HOUSING AGREEMENT
Maison’s Palmdale Blvd 150, LLC
Agreement No. A-8767
THIS DENSITY BONUS HOUSING AGREEMENT (this “Agreement”), dated as of ___________ ____, 2024, is entered into by and between the City of Palmdale, a municipal corporation of the State of California (the “City”), and Maison’s Palmdale Blvd 150, LLC, a Delaware limited liability company and/or its assigns (the “Owner”), as follows:

RECITALS
A. The Owner is the owner of a fee interest in certain real property located in the City of Palmdale, County of Los Angeles, State of California, identified as APN 3023-002-184, located at the Southeast corner of East Palmdale Boulevard and Hudsonia Street and legally described in Exhibit “A” attached hereto and incorporated by reference (the “Property”).

B. The Owner will construct a 191-unit affordable housing development, 64 three- and four-bedroom single family homes, 64 one-bedroom junior accessory dwelling units, 48 two- bedroom accessory dwelling units (“ADUs”), 15 three-bedroom ADUs, and associated landscaping and parking (“Residential Development” of “Project”).

C. The Owner proposes construction of a rental housing development of 189 units for low-income individuals and families and two manager’s unit. At least ten percent (10%) of the units that count towards the Project’s base density as defined pursuant to Government Code section 65915 (64 units) will be available to and occupied by households whose incomes do not exceed the maximum income of low-income households in Los Angeles County as determined by the California Department of Housing and Community Development.

Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 2
APN: 3023-002-184
D. Under California Government Code Section 65915, et seq. and Palmdale Municipal Code Section 17.25.020, the City must, upon the request of an applicant, grant a density bonus and/or certain incentives/concessions and/or waivers/modifications for any development applicant that seeks and agrees to construct a minimum number of housing units that are affordable to low or very low-income households (the “Density Bonus Law”).

E. The subject site has a General Plan Land Use Designation of Single Family Residential 3 (up to 6 dwelling units per acre) and is zoned Single Family Residential 3 (up to 6 dwelling units per acre). The Density Bonus Law requires that, when an applicant includes at least 10% low-income units, the City must grant a 20% density bonus over the base density, which would allow an additional 4 units per acre in the Residential Development. Because ADUs do not count towards density, the Project does not require a density bonus. To provide for affordable housing cost of the low-income units and fit the Project on the Property as designed, the Owner has requested a cost-saving concession and a waiver in accordance with California Government Code Section 65915, et seq. and Palmdale Municipal Code Section 17.25.020, as follows:
a. A concession pursuant to Palmdale Municipal Code Section 17.37.010.D.7, to allow composite shingles for the roofing material.

F. The Owner has also requested one waiver to development standards that, if applied, would have the effect of physically precluding the construction of the Project in accordance with California Government Code Section 65915, subdivision (e)(1), as follows:
a. A waiver to the minimum garage length in Palmdale Municipal Code Section 17.37.010.C.3.b to allow a minimum garage length of 20 feet.

G. The City and the Owner enter into this Agreement pursuant to and in accordance with California Government Code Section 65915, et seq., and Section 17.25.020 of the Palmdale Municipal Code, in order to provide housing for lower income households.

H. The City finds that granting the concession and waiver listed under Recital E and F, above, will result in actual and identifiable cost reductions to provide for affordable housing cost, will not have an adverse impact upon public health and safety, the physical environment, or any property that is listed in the California Register of Historical Resources, and is consistent with state and federal law. The City also finds that the Residential Development is consistent with the General Plan.

NOW, THEREFORE, in consideration of the mutual covenants and provisions contained herein, the parties hereto agree as follows:

AGREEMENT

1. Recitals. The Recitals set forth above are true and correct, and incorporated herein.

Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 3
APN: 3023-002-184

2. Definitions. For purposes of this Agreement, the terms listed below shall have the meanings thereafter specified:
a. “Adjusted for Household Size Appropriate for the Unit” means a household of two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, and four persons in the case of a three-bedroom unit. b. “Affordable Rent” means a rent that, when added to the Utility Allowance, does not exceed thirty (30) percent of sixty (60) percent of the Los Angeles County median income as determined annually by the California Department of Housing and Community Development, Adjusted for Household Size Appropriate for the Unit.
c. “Affordable Unit” means a dwelling unit that will be offered for rent exclusively to an Income Eligible Household at an Affordable Rent pursuant to this Agreement.
d. “Director” means City’s Department of Neighborhood Services Director, or his or her designee.
e. “Income Eligible Household” means a Low-Income Household which is eligible to rent a particular Affordable Unit.
f. “Low Income Household” shall have the meaning ascribed to it under California Health and Safety Code Section 50079.5. The upper income limit for Low Income Households shall be the income limits for such households published annually by the California Department of Housing and Community Development with adjustments for household size. g. “Management Plan” means a plan prepared by the Owner and approved by the Director describing in detail the management of the Affordable Units, including marketing of the Affordable Units, tenant selection criteria and process, waiting list management, application of Utility Allowances in setting Affordable Rents, and similar details of the operation, annual monitoring inspections and file review, and a schedule of initial rents. h. “Occupancy Date” means the earlier to occur of (i) issuance of a Certificate of Occupancy by the City or (ii) issuance of a Temporary Certificate of Occupancy by the City.
i. “Other Units” means units in the Residential Development that are not Affordable Units. The Other Units may be subject to Other Regulatory Agreements limiting the income of tenants and the rents that can be charged but are not subject to this Agreement.

Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 4
APN: 3023-002-184
j. “Other Regulatory Agreement” means any regulatory agreement that specifies maximum rents for units and income limits for tenants in the Residential Development other than this Agreement.
k. “Owner” means the person or entity defined as such in the introductory paragraph of this Agreement and includes all successors and assigns of that person or entity.
l. “Property” shall have the meaning defined in Recital A, as more particularly described in Exhibit “A” attached hereto and incorporated herein. m. “Residential Development” shall have the meaning given in Recital B. n. “Utility Allowance” means an amount designated annually by the City as a reasonable estimate of the cost of utilities for the Affordable Unit, for purposes of calculating the applicable Affordable Rent.

3. Approvals. The Residential Development shall be developed in accordance with all applicable provisions of the Palmdale Municipal Code.

4. Affordable Units. The Owner hereby covenants and agrees that at least ten percent (10%) of the base units in the Residential Development (at least 7 units) shall be rented exclusively to Low-Income Households at an Affordable Rent. The Affordable Units also may be subject to an additional affordable housing regulatory agreement (“Other Regulatory Agreement”). In the event of a conflict between this Agreement and Other Regulatory Agreement, the Other Regulatory Agreement shall control. Notwithstanding the foregoing, the rents of the Affordable Units shall not exceed the Affordable Rents as defined in this Agreement and the Term shall be no less than 55 years.

5. Affordable Rents. Affordable Rents for Affordable Units, including Utility Allowances, shall be based on the Los Angeles County Area Median Income published in Title 25, California Code of Regulations, Section 6932 by the California Department of Housing and Community Development, as may be amended from time to time. Affordable Rents may not be increased more frequently than annually to reflect increases in Area Median Income.

6. Term of Affordability Covenants. The covenants to restrict the rental of the Affordable Units in accordance with this Agreement shall remain in effect for a term commencing on the Occupancy Date and continuing for fifty-five (55) years (the “Term”). Prior to recording of this Agreement, the Owner must deliver to the City a Lenders Consent and Subordination Agreement (“Lender Consent”), in the form appended to this Agreement, from each lender that will hold a security interest in the Property. Such Lender Consents shall be recorded as a substantive part of this Agreement.

7. Management Plan. The Owner shall submit the Management Plan for the Director’s consideration and approval at least one hundred eighty (180) days prior to the date that Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 5
APN: 3023-002-184
the Owner applies for a Certificate of Occupancy for the Residential Development. Such approval shall not be unreasonably withheld. In addition to other components, the Management Plan shall contain the following:
i. Whenever an Affordable Unit becomes available, the Director shall be notified promptly in writing.
ii. The Owner shall conduct affirmative marketing of the Affordable Units, as they become available from time to time, including wide circulation of information of the availability of Affordable Units for rent during the marketing period required by the Management Plan.
iii. The Owner shall determine the eligibility of Low-Income Households that may lease the Affordable Units in accordance with the Management Plan.

8. Changes in Tenant Income. A tenant who initially qualified as a Low Income Household, but who, due to an increase in income, no longer qualifies as a Low Income Household shall pay as rent an amount that is the least of the amount that would be payable by the tenant under (i) low-income housing tax credit regulations, (ii) State or local law, or (iii) thirty percent (30%) of the household’s adjusted gross income.

9. Utilization of Affordable Rental Units. All Affordable Units required by this Agreement shall be leased or rented and fully utilized in accordance with this Agreement; notwithstanding any other provision of law to the contrary, for the Term, no Affordable Unit shall be withdrawn from the market or otherwise held vacant except as may be necessary for reasonable maintenance and repair.

10. No Sublease. A tenant occupying an Affordable Unit may not sublet the unit without the written permission of both the Owner and the City. The City shall not grant permission to lease, rent, or sublet the unit if it finds that the prospective tenant or occupant is not an Income Eligible Household. Any individual who subleases an Affordable Unit in violation of the provisions of this Agreement shall be required to forfeit to the City all monetary amounts so obtained.

11. Lease Agreement. A fully executed copy of the lease agreement for each Affordable Unit, which shall comply with the provisions of this Agreement, shall be delivered to the City’s Department of Neighborhood Services, Housing Division within thirty (30) days after the date of its execution.

12. Maintenance of Units. The Owner shall: (a) maintain and operate all units on the Property so as to provide decent, safe, and sanitary housing consistent with federal housing quality standards and the Palmdale Municipal Code; (b) make any required repairs or provide any required cleanup; and (c) provide the Affordable Units with the same levels of services and maintenance as are provided to any of the other dwelling units on the Property.

Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 6
APN: 3023-002-184

13. Annual Report. The Owner shall maintain complete and accurate records pertaining to the Affordable Units and shall prepare and provide the Director with a written annual report commencing one year after the Occupancy Date and continuing every year for fifty-five (55) years, regarding the rental status of the units. The report shall include information regarding the name, address, and income of each resident of the Affordable Units, identify the number of bedrooms of the unit and the monthly rent paid by the tenant. So long as permitted by law, concurrently with the submittal of each annual report to the City, the Owner shall pay a monitoring fee to the City in the amount of Fifteen Hundred Dollars ($1,500) with a maximum increase of 2% per year to defray the City’s cost of monitoring the Owner’s compliance with this Agreement. The Owner’s failure to make such required payment shall be a default under this Agreement.

14. Federal and State Laws. Notwithstanding the above provisions, nothing contained herein shall require the Owner or the City to do anything contrary to or refrain from doing anything required by Federal and State laws and regulations promulgated thereunder applicable to the construction, management, maintenance, and rental of Affordable Units in the City of Palmdale.

15. Prohibition Against Discrimination. The Owner shall not discriminate against any tenant or potential tenant on the basis of sex, color, race, ethnicity, religion, ancestry, national origin, age, pregnancy, marital status, family composition, sexual orientation, or the potential or actual occupancy of minor children. The Owner further agrees to take affirmative action to ensure that no such person is discriminated against for any of the above-mentioned reasons.

16. Indemnification. The Owner shall defend, indemnify, and hold harmless the City of Palmdale and its officers, agents, employees, representatives, and volunteers from and against third party actions, including any loss, liability, claim, or judgment, relating solely to this Agreement, including those claims that arise out of: (a) a breach of this Agreement by the Owner; (b) related in any manner to the Owner’s administration of this Agreement; or (c) arising out of the City’s interest in this Agreement or Affordable Units. This indemnification shall not apply to claims arising out of the negligence or willful misconduct of the City, its officers, agents, employees, representatives, or volunteers.

17. City’s Right to Inspect Units and Documents. The City may inspect the Affordable Units (subject to the tenant’s privacy rights and lease provisions) and any documents or records relating thereto, at any reasonable time in order to determine the Owner’s compliance with this Agreement.

18. Successors and Assigns. This Agreement and its covenants and conditions shall run with the land and be binding upon and inure to the benefit of the City and the Owner, and their respective successors, owners by deed, deed in-lieu of foreclosure, foreclosure or otherwise, and assigns. The City reserves the right to designate another public agency within the City of Palmdale to perform the City’s obligations or to exercise the City’s rights under this Agreement.

19. Notices. All notices required herein shall be sent by certified mail, return receipt requested, or express delivery service with a delivery receipt and shall be deemed to be effective on the date received or the date delivery was refused as indicated on the return receipt, as follows:

Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 7
APN: 3023-002-184
To Owner: Maison’s Palmdale Blvd. 150, LLC
2007 Cedar Avenue
Manhattan Beach, CA 90266
Attn: Kevin Harbison
with a copy to: Cox, Castle, & Nicholson, LLP
50 California Street
Suite 3200
San Francisco, CA 94111
Attn: Linda C. Klein
To City: City of Palmdale
38250 Sierra Highway
Palmdale, California 93550-4798
Attn: Director of Neighborhood Services
with a copy to: City of Palmdale
38300 Sierra Highway
Palmdale, California 93550-4798
Attn: City Attorney
The parties hereto may subsequently change addresses by providing written notice of the change in address to the other party hereto in accordance with this Section.

20. Governing Law. The laws of the State of California shall govern this Agreement.

Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Los Angeles, State of California, in an appropriate municipal court in that County, or in Federal District Court in the Central District of California.

21. Default. Failure or delay by either party hereto to perform any term or provision of this Agreement, which is not cured within thirty (30) days after receipt of notice from the other party, constitutes a default under this Agreement. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction, or remedy with due diligence. The injured party shall give written notice of default to the party in default specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not initiate proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. If applicable, the City agrees to accept cures tendered by the Investor Limited Partner of the Owner within the cure periods provided in this Agreement.

22. Remedies.

Density Bonus Housing Agreement Agreement No. A-8767
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APN: 3023-002-184
a. Any individual who rents (including subleasing) an Affordable Unit in violation of the provisions of this Agreement shall be required to forfeit to the City all monetary amounts so obtained.
b. The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this Agreement, including, but not limited to, actions for injunctive relief or damages.
c. It is agreed and understood that the covenants to maintain the Affordable Units as set forth herein are a requirement of the Palmdale Municipal Code and as a condition to receiving zoning and parking concessions/incentives and waivers under the Palmdale Municipal Code, the Owner agrees that a breach of the covenants to maintain the Affordable Units as affordable housing for the Term specified herein constitutes a violation of the Palmdale Municipal Code, subject to enforcement by all legally available means.

23. Attorneys’ Fees. In any action brought to declare the rights granted herein or to enforce or to interpret any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys’ fees and costs in an amount determined by the court.

24. Non-Waiver. Failure to exercise any right either party hereto may have or be entitled to in the event of default hereunder shall not constitute a waiver of such right or any other right in the event of a subsequent default.

25. Further Assurances and Recordation. The parties hereto shall cause this Agreement to be recorded in the Official Records of the County of Los Angeles. The Owner shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form and do such further acts as may be necessary, desirable, or proper as the City shall from time to time find necessary or appropriate in order to effectuate its purpose in entering into this Agreement.

26. Entire Agreement. This Agreement, including any Lender’s Consent and Subordination Agreements, and all attached Exhibits, constitutes the entire agreement between the parties hereto. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Each party to this Agreement acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that any other agreement, statement, or promise not contained in this Agreement shall not be valid or binding. This Agreement may be amended only by written instrument signed by both the City and the Owner.

27. Third Party Beneficiaries. There are no third-party beneficiaries of or to this Agreement.

28. Amendment of Agreement.

Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 9
APN: 3023-002-184
a. Generally. This Agreement may be amended from time to time in whole or in part by mutual consent of the original parties hereto or their successors in interest, in accordance with this Agreement, the Palmdale Municipal Code, and the Density Bonus Law.
b. Administrative Amendments. Notwithstanding subdivision (a) of this Section, any amendment to this Agreement, whether requested by the Owner or by the City, which does not relate to the Term; the number, percentage, or type of Affordable Units; or the number or type of any incentives or concessions given by the City, may be determined by the Director to be an administrative amendment and, if so, the Director shall approve the administrative amendment without notice or hearing, and this Agreement and its pertinent exhibits shall be automatically amended without further action by the parties hereto. A memorandum of the amendment shall be executed and recorded in order to reflect such administrative amendment.

29. Counterparts. This Agreement may be executed by each party hereto on a separate signature page, and when the executed signature pages are combined, shall constitute one single instrument.
[signatures follow]
Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 10
APN: 3023-002-184
IN WITNESS WHEREOF, the City and the Owner have executed this Agreement as of the date set forth above.

CITY

CITY OF PALMDALE,
a municipal corporation
By:
________________________________
Ronda Perez
City Manager
Dated:
______________________________
ATTEST:

By:
________________________________
Roxanne Faber
City Clerk
APPROVED AS TO FORM:

By:
________________________________
William P. Curley III
City Attorney

KANE, BALLMER & BERKMAN
City Special Counsel
By:
________________________________
Todd C. Mooney
OWNER
MAISON’SPALMDALE BLVD 150, LLC
a Delaware limited liability company,
its Administrative General Partner
Ravello Holdings, Inc.,
a California limited liability company,
its Manager
By:________________________________
Dilip K. Ram
President
Dated: ________________________
AHA High Desert MGP, LLC,
a California limited liability company,
its Managing General Partner
Affordable Housing Access, Inc.
a California nonprofit public benefit
corporation
its Manager
By:________________________________
Vasilios Salamandrakis
President
Dated: ________________________
Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 11
APN: 3023-002-184
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of Los Angeles )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _____________________________
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _____________________________
Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 11
APN: 3023-002-184

FORM OF
LENDER’S CONSENT AND SUBORDINATION AGREEMENT
NOTICE: THIS LENDER’S CONSENT AND SUBORDINATION RESULTS IN YOUR

SECURITY INTERESTS IN THE PROPERTY BECOMING SUBJECT TO AND OF A LOWER

PRIORITY THAN THIS DENSITY BONUS HOUSING AGREEMENT
The undersigned (the “Lender”), as owner and holder of security interests (“Security Interests”) evidenced by that certain [Deed of Trust With Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing] made by the Owner as trustor in favor of ____________________________ as beneficiary, dated as of ________________ and recorded on _______________ as Instrument No._____________ in the Official Records of the County of Los Angeles, State of California, hereby acknowledges its consent to the terms and provisions of this Density Bonus Housing Agreement. The undersigned further agrees that its Security Interests are and shall unconditionally be and remain at all times junior, subordinate, and subject to the terms, covenants, conditions, and restrictions of Sections 4, 5, and 6 of this Density Bonus Housing Agreement, provided that in consideration of the Lender’s covenants and agreements contained in this Agreement, the City and its designated agencies hereby agree for the benefit of the Lender that concurrently with any notice from the City to the Owner that a default or breach exists under the terms of this Density Bonus Housing Agreement, the City shall send a copy of such notice to the Lender, and the Lender shall have the right, but not the obligation, to cure any defaults within thirty (30) days after the expiration of any cure period set forth in the notice from the City to the Owner regarding such Owner default. The provisions of this consent are intended to supplement, and not to limit, waive, modify, or replace those provisions of law pertaining to notice and cure rights of junior lenders including, without limitation, those set forth in California Civil Code Sections 2924b and 2924c. The Lender intentionally and unconditionally waives, relinquishes, and subordinates the lien or charge of the Security Interests in favor of this Density Bonus Housing Agreement.

AGREED AND ACKNOWLEDGED:

Dated as of: _________________ “LENDER”
By. _______________________________
Name: _____________________________
Title: ______________________________
[notarized signature required]
Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 12
APN: 3023-002-184
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _____________________________
Density Bonus Housing Agreement Agreement No. A-8767
Maison’s Palmdale Blvd 150, LLC Page 13
APN: 3023-002-184

EXHIBIT A
Legal Description of Property

THE LAND REFERRED TO HEREIN BELOW IS SITUATED, IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:

LOT 10 OF TRACT NO, 2916, IN THE CITY OF PALMDALE, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 31, PAGE 13, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

APN: 3023-002-184

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 P l a n n i n g D i v i s i o n
AGR 24-0002
Maison’s Palmdale Blvd 150, LLC
City Council
April 17, 2024
Tentative Tract Map 83359
• Located south side
of East Palmdale
Boulevard between
50th Street East
and east of 55th
Street East

Density Bonus Agreement
• Density bonus - Increase in the overall number of housing units that may be built on a site in exchange for including affordable housing units in a project
• General Plan Land Use designation and zone of SFR 3
• 120 units are allowed; the applicant proposes to construct a total of 64 detached single-family residential units and 127 ADU’s and JADU’s for a total of 191 residential units.

Under California Fair Housing Laws, the proposed ADUs
and JADUs are not subject to a jurisdiction's density
requirements
Recommendation
Adopt Resolution No. CC-2024-048
recommending City Council approve AGR 24-
0002 (A-8767).

City Council Staff Report
DATE: APRIL 17, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PARKS & RECREATION DEPARTMENT
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2024 -018, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE APPROVING THE

FIVE-YEAR PUBLIC ART WORK PLAN FOR PROJECTS IN THE
CITY OF PALMDALE IN ACCORDANCE WITH CHAPTER 15.01 OF

THE PALMDALE MUNICIPAL CODE

RECOMMENDATION
Adopt Resolution No. CC 2024 -018, approving the Five -Year Public Art Work Plan in accordance with Chapter 15.01 of the Palmdale Municipal Code.

BACKGROUND
The City Council adopted Resolution No. CC 2020-084, approving the Public Art Master Plan (Master Plan) and directed staff to implement the Master Plan’s recommendations diligently. Consistent with this direction, the Public Art Commission and staff developed an annual Five-Year Public Art Work Plan (Five-Year Plan) that charts current and future public art projects and determines resources and funding priorities. The Five-Year Plan strategy is updated annually to include City-funded projects, public/private partnerships, maintenance, and a conservation plan. The City Council approves the proposed Five- Year Plan as part of the City’s annual budget adoption process.

DISCUSSION
The Five-Year Plan sets the course for implementing all municipal public art projects , including the artwork's scope, concept, location, budget, and timeline . The preliminary Public Art Fund balance as of June 30, 2023, is $1,491,630. Most of these funds were allocated from the City’s General Fund to initiate the program.

The Public Art Commission reviewed the draft Five-Year Plan at their January 23, 2024, meeting, and the final form was reviewed and discussed at their March 26, 2024, meeting.

After discussion, the commission adopted Resolution No. PAC 2024-002, recommending the Five-Year Plan for City Council approval in accordance with Chapter 15.01 of the Report to Mayor and City Council
Re: Five-Year Public Art Work Plan
April 17, 2024

Page 2 ends

Palmdale Municipal Code. The Five-Year Plan is provided herewith for Council consideration.

FISCAL IMPACT
$0; There is no fiscal impact associated with this action. Proposed expenditures for Public Art will be proposed through the annual budget process for FY 2024-25 and future years.

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

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

Prepared by: George Davis, Public Art Program Manager
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, City Attorney

ATTACHMENTS
Reso. No. CC 2024-018
Exh A Five-Year Public Art Work Plan
Exh B Five-Year Public Art Work Plan Presentation

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-018

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

APPROVING THE FIVE-YEAR PUBLIC ART WORK PLAN

RECOMMENDED BY THE PUBLIC ART COMMISSION IN
ACCORDANCE WITH CHAPTER 15.01 OF THE PALMDALE MUNICIPAL CODE
WHEREAS, on March 26, 2024, the Public Art Commission adopted Resolution No. PAC 2024-002 recommending the Five-Year Public Art Work Plan, attached as Exhibit A, for City Council approval in accordance with Chapter 15.01 of the Palmdale Municipal Code; and
WHEREAS, the Public Art Commission of the City of Palmdale shall develop an annual Public Art Work Plan that charts current and future public art projects and determines resources and funding priorities in accordance with Section 3, Item 10 of the Public Art Commission Bylaws; and
WHEREAS, the Five-Year Public Art Work Plan sets the course for the implementation of all municipal public art projects; and WHEREAS, the Five-Year Public Art Work Plan will be updated annually to include all proposed projects that meet City of Palmdale Public Art Fund criteria as specified in Chapter 15.01 of the Palmdale Municipal Code; and WHEREAS, Public art in Palmdale has the power to express Palmdale’s identity through the built environment and provide equitable access to a diversity of artists and artistic experiences, elevating the role the artist and the creative process play in connecting people and places.

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

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

SECTION 1. The City Council hereby specifically finds that all of the facts set forth in the Recitals are true and correct.

Resolution No. CC 2024-018

Page 2 of 3 ends

SECTION 2 . In accordance with Section 15.01.050, Section D, of Palmdale’s Municipal Code, the Public Art Commission shall present annually to the City Council for approval a public art work plan that recommends the use of public art fund monies.

SECTION 3 . In accordance with Section 15.01.070, Section C, Item 10, of Palmdale’s Municipal Code, the Public Art Commission will develop an annual public art work plan that charts current and future public art projects and determines resources and funding priorities.

SECTION 4 . In accordance with Section 15.01.110, Section B, of Palmdale’s Municipal Code, the City Council will approve the annual public art work plan as part of the City’s annual budget adoption process, which outlines the projects and expenses the public art program will undertake each year.

SECTION 5 . Based on the findings and conclusions set forth above, the City Council hereby approves the Five-Year Public Art Work Plan recommended by the Public Art Commission and staff.

Resolution No. CC 2024-018

Page 3 of 3 ends

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

PASSED, APPROVED and ADOPTED this ______ day of ____________, ________. _________________________________
Approved as to form: Austin Bishop, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, Acting City Clerk City Attorney
I, Rochelle Scott, Acting City Clerk of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the ______ day of _____________, 20___ by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, Acting City Clerk

FUNDING PERIOD PROJECT LOCATION FUNDING NOTES STATUS LOCATION PRIORITY FY 23-24 Palmdale Plein Air Murals Palmdale City Library $5K Public Art Fund Three murals painted on alcoves Completed September 2023
High
Temporary artwork to be
featured at Kaleidoscope
Palmdale Amphitheater $9.3K Public Art Fund Honeycomb Harmonies (musical art installation), four chalk artists, two cellograff artists
Completed October 2023 High
Antelopes on Parade Legacy Commons lobby and
Palmdale Playhouse lobby
$3K Program Supplies Two antelope sculptures to be painted by local artists Completion anticipated by July 2024
Medium
Small Mural Mentor Program Three locations on 10th St. E $9K Public Art Fund Seasoned muralists were paired with three novice artists to collaboratively design and install murals across Palmdale
Completion anticipated by
July 2024
Medium
Palmdale Playhouse Historical
Narrative Mural
Palmdale Playhouse $100K Public Art Fund $25K for costs associated with artist selection application management and paint contractor. $75K will cover the artist fee, the stipend for the proposal design, paint, and equipment supplies
Completion anticipated by
August 2024
Medium
Walk on Words Sam Yellen Park $1.2K Program Supplies Theme: Diversity Installation anticipated by June 2024
Medium
Undetermined maintenance and
repair projects
Various $10K Contract Services Various locations, as required - -

TOTAL PUBLIC ART
EXPENSES FY 23-24
$137,500
FY 24-25 Antelope Valley Walls Various City-owned facilities (TBD)
$40K Public Art Fund Four artists to create four murals September 2024 High, Medium Temporary artwork to be
featured at Kaleidoscope
Palmdale Amphitheater $10K Public Art Fund Honeycomb Harmonies (musical art installation), 6 chalk artists October 2024 High Sam Yellen Park (Phase II) Public Art
Elements
Sam Yellen Park $175K (1% CIP project
contribution to Public Art
Fund)
Sculpture ($70K), Performance Engagement ($25K), Ceramic Tile piece - with Elementary School children ($35K); Artist selection and plaques ($5K); Save $40K; Site construction: May 2023 - November 2024 Coordinate with school
calendar and construction
schedule
Medium
Sculpture for Roundabout Ave. S-8 and 40th St. E $50K Public Art Fund Site construction: February - September 2024 Coordinate with construction schedule
High
Palmdale Amphitheater
Entertainment Themed Mural
Palmdale Amphitheater $35K Public Art Fund Painting contractor: $12K; product: $1K November 2024 - March 2025
High
Walk on Words Sam Yellen Park $1.2K Program Supplies Theme: TBD April - June 2024 Medium Undetermined maintenance and
repair projects
Various $10K Contract Services Various locations, as required - - McAdam Cultural Art Project - NEA Our
Town Grant
William J. McAdam Park $75K Public Art Fund Project dependent on grant funding; $75K NEA Grant; additional $75K from Park Development Fund
April 2024: Earliest
announcement of grant award
or rejection
Medium

TOTAL PUBLIC ART
EXPENSES FY 24-25
$396,200

FUNDING PERIOD PROJECT LOCATION FUNDING NOTES STATUS LOCATION PRIORITY FY 25-26 through FY 27-
28 Courson Park Mural Project Courson Park $41.5K Prop 68 Grant Funds This is a $4,150,000 project funded by Prop 68; 1% will be spent on on-site art to satisfy the requirement of the public art ordinance To be scheduled Medium
Amargosa Temporary Sculptures Amargosa Creek Natural Park $30K Public Art Fund To be scheduled Medium Sculpture for Roundabout Palmdale Transportation
Center
$100K Public Art Fund To be scheduled High
Avenue M Avenue M Interchange $250K Measure R Local
Return
Partnership with City of Lancaster, LA County, and Caltrans; Two sculptures, retaining wall designs and railing designs
To be scheduled High
Walk on Words Sam Yellen Park $1.2K Program Supplies Theme: TBD; annual poetry contest To be scheduled Medium Temporary artwork to be
featured at Kaleidoscope
Palmdale Amphitheater $10K Public Art Fund TBD; annual art and music festival To be scheduled High Undetermined maintenance and
repair projects
Various $10K Contract Services Various locations, as required; annual budget for maintenance and repair
To be scheduled -
Antelope Valley Walls Various City-owned facilities
(TBD)
$40K Public Art Fund Biennial Antelope Valley mural festival in collaboration with the City of Lancaster
To be scheduled -
Back Home sculpture deaccession
and removal
Palmdale Transportation
Center
$1K Contract Services Preparing deaccession request for review by the Public Art Commisssion
To be scheduled High
Palmdale "Legacy" project TBD $500K Public Art Fund Destination public art to increase tourism appeal To be scheduled -

O F F I C E O F T H E C I T Y M A N A G E R
Exh B: FIVE-YEAR PUBLIC ART WORK PLAN ANNUAL UPDATE
Presented by the Public Art Commission
Chair: Lisa Sarno Commissioner: Warren Scherich
Vice-Chair: Nathaniel Ancheta Commissioner: Brandon Singleton Commissioner: Doug Grove Commissioner: Edwin Vasquez
Commissioner: Ayeasha Jones

DEPARTMENT OF PARKS AND RECREATION

Policy &
Work Plan
Adoption
November 23, 2021 Mural Policy and Guidelines adopted
Public Art Guidelines for Developers adopted
April 20, 2022 FY22-23 Five-Year Public Art Work Plan approved by City Council May 24, 2022 Temporary Artwork Policy adopted
July 26, 2022 Deaccession of Artwork Policy adopted
March 15, 2023 Zoning Clearance Review for installation of public art approved by City Council April 19, 2023 FY 23-24 Five Year Public Art Work Plan approved by City Council July 25, 2023 Donations and Loans of Artwork Policy adopted

PROGRAM GUIDING PRINCIPLES
MUNICIPAL PROJECTS – PUBLIC ART FUND

YEAR PROJECT ARTIST LOCATION
2020 Walk on Words: Everyone Counts Randy Bass Sam Yellen Park Mural: Poolside Fantasy Sophia Mavrolas Courson Park Pool Antelopes on Parade: Mandala Antelope Lori Antoinette Marie Kerr Park Recreation Center Antelopes on Parade: Modern Mars I Xochilt Garcia Oasis Park Recreation Center Antelopes on Parade: When the Stars Come Out Debbie Haeberle Development Services Lobby Antelopes on Parade: Pearblossom Antelope Kierstyn Swann Development Services Lobby

2021 Mosaic Mural: On Fire Kris Holladay Palmdale City Library Walk on Words: Palmdale Cares Martha Gregory Sam Yellen Park Asphalt Art: Peace Together I Volunteers DryTown Water Park Asphalt Art: Peace Together II Volunteers Best of the West Mural: Recycle Your Paint Christopher Minsal Maintenance Yard

2022 Walk on Words: Dogs in the Park Linda Terry Sam Yellen Park Kinetic Sculpture: Cosmo Roger Heitzman Rancho Vista Park Antelope Valley Walls: A New Digital Connection Sean Banister Desert Sands Park Antelope Valley Walls: Desert Bloom Kim Sielbeck Marie Kerr Park Recreation Center Antelope Valley Walls: Hummingbirds and Desert Flowers Christopher Minsal Palmdale Film Stage Antelope Valley Walls: Ravenhorns Tina Dille Manzanita Heights Park Kaleidoscope: Chalk Artists Various (5) Palmdale Amphitheater Kaleidoscope: Cellograff Artist Deon Zender Palmdale Amphitheater Kaleidoscope: Performance Engagement Living Butterfly Vines Palmdale Amphitheater Sculpture: Revolution Heath Satow Palmdale Auto Mall 2023 Walk on Words: Sister Cities Zsanette Osawaru Poncitlan Square Mural: Reaching Purity AQMNI Maintenance Yard
Kaleidoscope: Interactive musical art installation Honeycomb Harmonies Palmdale Amphitheater Kaleidoscope: Chalk Artists Various (4) Palmdale Amphitheater Kaleidoscope: Cellograff Artists Various (2) Palmdale Amphitheater Murals: Palmdale Plein Air Rich Gallego Palmdale City Library COMMUNITY PROJECTS – ALTERNATE FUNDING

YEAR PROJECT COMMUNITY PARTNERS LOCATION
2020 Marketing Mural: Palmdale Cares Nuri Amanatullah 10th Street East

2021 Marketing Mural: The Legend Comes Alive Lori Antoinette DryTown Water Park

2023 Beautification + Graffiti Removal: Utility Cabinet Wraps N/A Citywide Veteran Memorial: Battlefield Cross N/A Poncitlan Square Asphalt Art: Peace Together I Refresh Community Volunteers

2024 Mural: SAVES 40th Anniversary iSERVE Participants Palmdale SAVES Youth Artwork in our Parks: Utility Cabinet Wraps Various youth artists (9) Citywide Beautification + Graffiti Removal: Utility Cabinet Wraps Community selects designs Citywide Proposed Graffiti Committee concept for community led tapestries Residents Walls subject to frequent graffiti

YEAR PROJECT COMMUNITY PARTNERS LOCATION
2022 Mural: Lizards of the Antelope Valley Christopher Minsal 2641 E Palmdale Blvd.

2024 East Palmdale Mural Project: Third Gear Disrumpo + AQMNI Andy’s Auto Parts East Palmdale Mural Project: Silent Echoes Disrumpo + AQMNI The Furniture Club East Palmdale Mural Project: Modern Ancestry Disrumpo + AQMNI Furniture Plus MURALS ON PRIVATE PROPERTY – PRIVATE FUNDING

COMMUNITY OUTREACH
The community engagement process in public art helps to develop criteria for artist selection, the artwork character and location, and provides background information on the project that informs the artist’s scope of work. In the Public Art Master Plan, the top four responses from the public art community survey What Makes Palmdale Unique are:
• Diversity (Cultures, Friendly People, Community, Multi-Cultural); • Landscape (Desert, Joshua Trees, Yucca Trees, Poppies, Lake); • Aerospace (History, Military, Northrop, Lockheed); and • Views (Mountains, Sunsets, Sunrises, Stars, Foothills, Blue Skies).

In addition to the themes above, residents are asked to reflect on the property and its impact on the surrounding neighborhood. These topics have been included in our recent public art surveys (English and Spanish). Community outreach for public art projects has been conducted via our online survey portal, available through the City’s social media platforms, the monthly newsletter, City-owned facilities, neighborhood watch captains, Partners Against Crime apartment managers, on-site signage and project QR code, and at several City programs hosted at the Palmdale Amphitheater and the Palmdale Playhouse. The results of our 2023 outreach efforts indicates that people identifying as Latino completed the largest number of surveys, averaging at 36%, with people identifying as White following closely at 31%.

FY23-24 PUBLIC ART PROJECTS

PROJECT DETAILS LOCATION BUDGET
Murals: Palmdale Plein Air Three murals of local landscape Palmdale City Library $5,000 Kaleidoscope: Temporary Artwork Honeycomb Harmonies interactive musical Palmdale Amphitheater $9,300 art installation, Chalk and Cellograff Art
Antelopes on Parade Two antelopes to be painted by local area artists; Palmdale Playhouse and $3,000 Outreach completed - themes to reflect on our Legacy Commons landscapes and Palmdale’s diversity
Small Mural Mentor Program Three murals pairing experienced artists 10th Street East $9,000 with local muralists; Outreach completed-
themes to reflect on creating meaningful,
authentic, and culturally appropriate artworks
and on our views
Mural: Historical Narrative of Mural to detail programming history; Palmdale Playhouse $100,000 the Playhouse Outreach completed – themes to reflect on history and impact of the Playhouse and
Palmdale’s diversity
Walk on Words Annual poetry contest; Theme: Diversity Yellen Park $1,200 Maintenance Repair Projects Various undetermined projects, as required Various $10,000 ______________
TOTAL $137,500

FY 24-25 PROPOSED PUBLIC ART PROJECTS

PROJECT DETAILS LOCATION BUDGET
Antelope Valley Walls Four murals to be painted during event; Palmdale Film Stage, $40,000 partnership with City of Lancaster City Hall, Sam Yellen Park, and Pelona Vista
Park

Kaleidoscope: Temporary Artwork Honeycomb Harmonies interactive musical Palmdale Amphitheater $10,000 art installation, Chalk Art
Sam Yellen Park (Phase II) Sculpture in Gathering Plaza, Performance Sam Yellen Park $175,000 Engagement, and Ceramic Tile Piece in
Building Breezeway (community design
meetings TBD); Public Art Commission
recommends dogs, sports, and gathering as
themes for this park; Outreach completed - themes
to reflect on our landscapes and create
meaningful, authentic and culturally appropriate
artworks.

Sculpture: New City Roundabout Outreach completed - themes to reflect on our Ave. S-8 and 40th St. E $50,000 landscapes and on sculpture that enhances our
environment and transforms the urban landscape
Mural: Entertainment Theme Outreach completed - themes to reflect on our Palmdale Amphitheater $35,000 our landscapes and our views
Walk on Words Annual poetry contest; Theme: TBD Yellen Park $1,200 Maintenance Repair Projects Various undetermined projects, as required Various $10,000 ______________
TOTAL $321,200

PUBLIC ART PROJECT DEPENDENT ON GRANT FUNDING
IF AWARDED, PROJECT TO BEGIN IN FY24-25 AND COMPLETED IN FY25-26

PROJECT DETAILS LOCATION BUDGET
Native American Cultural Art NEA Our Town Grant proposal includes design McAdam Park $75,000 and installation of two sculptures in collaboration
with Art-In-Residence and five tribal partners:

Fernandeno Tataviam Band of Mission Indians
Morongo Band of Mission Indians
San Fernando Band of Mission Indians
San Manuel Band of Mission Indians
Tejon Indian Tribe ______________
Matching grant award or rejection TOTAL $75,000
announced Summer 2024

Images from work samples submitted with application
FY 25-26 PROPOSED PUBLIC ART PROJECTS

PROJECT DETAILS LOCATION BUDGET
Mural: Courson Park Project Prop 68 Grant Funds Courson Park $41,500

Temporary Sculptures Display three existing sculptures on temporary Amargosa Creek $30,000 loans from artists to City (1-3 years) Natural Park
Kaleidoscope: Temporary Artwork Ongoing research for compatible projects Palmdale Amphitheater $10,000 Walk on Words Annual poetry contest; Theme: TBD Yellen Park $1,200 ______________
TOTAL $82,700

FY 26-27 THRU FY 28-29 PROPOSED PUBLIC ART

PROJECT DETAILS LOCATION BUDGET
Sculpture: Roundabout Community Outreach results will inform Palmdale Transportation $100,000 theme of sculpture Center
Two sculptures, retaining wall Partnership with City of Lancaster, LA Avenue M Interchange $250,000 (Measure R Fund) designs, and railing designs County, and Caltrans

PROJECTS SCHEDULED ANNUALLY
Kaleidoscope: Temporary Artwork Ongoing research for compatible projects Palmdale Amphitheater $10,000 each year Walk on Words Annual poetry contest; Theme: TBD Yellen Park $1,200 each year

PROJECT SCHEDULED BIENNIALLY
Antelope Valley Walls FY 26-27 and FY28-29 Various (TBD) $40,000 each year

City Council Staff Report
DATE: APRIL 17, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT
DISTRICT: ALL
SUBJECT: APPROVE THIRD AMENDMENT TO THE FRANCHISE AGREEMENT

BETWEEN THE CITY OF PALMDALE AND WASTE MANAGEMENT
OF CALIFORNIA, INC. , DBA WASTE MANAGEMENT OF

ANTELOPE VALLEY (WM) FOR INTEGRATED SOLID WASTE
MANAGEMENT SERVICES FOR ONE-TIME REVENUES OF $8.6M

PLUS AN INCREASE IN ANNUAL FRANCHISE FEES FOR A TERM
OF 10 YEARS

RECOMMENDATION
Staff recommends that the City Council:

1. Approve Third Amendment to the Franchise Agreement No. A-5852 between the City of Palmdale and Waste Management of California, Inc. dba Waste Management of Antelope Valley (WM) for Integrated Solid Waste Management Services for one-time revenues of $8.6M plus an increase in annual franchise fees for a term of 10 years and,

2. Authorize the City Manager or her designee to execute the Third Amendment for Agreement No. A -5852 for an implementation date of July 1, 202 4; including minimal and/or non-substantial changes.

BACKGROUND
On July 1, 2018, the City entered into a Franchise Agreement with Waste Management of Antelope Valley (WM) for Integrated Solid Waste Management services for residents and commercial properties. On September 1, 2019, the City Council approved the First Amendment of the Agreement to clarify language omitted by the then procurement consultant and to prepare for changes in solid waste regulations.

The City of Palmdale continues to work on compliance with the requirements of Senate Bill 1383 (SB 1383). This law was voted in place in 2016 with various requirements including the implementation of an organics recycling program.

Report to Mayor and City Council
Re: Agreement No. A-5852 Third Amendment
Date of Meeting: April 17, 2024

Page 2 ends

DISCUSSION
Under the new proposed scope of services, the following updates have been negotiated and are before you for consideration:
 Ten (10) year agreement term extension, making the new expiration date June 30, 2036;
 One-time adjustment to rates commencing on July 1, 2024. The current Standard Service Rate (FY23/24) of $35.08 will increase to an Estimated Standard Service Rate (FY24/25) of $40.22. This increase includes both the regular annual adjustment outlined in the existing agreement and the negotiated increase;  Memorialize actual curb miles swept (2,268) from existing (1,505) to account for City growth;
 Increase curb mile rate to align with market rates and better prepare for upcoming changes in law;
 Regular street sweeping performance meetings;
 Consolidates the Biennial Audit fee; and,
 Consolidates the SB1383 Support fee.

The following City benefits were negotiated:
 $8.5M Franchise Extension Fee upon execution of the amendment;  $100K for cameras to capture illegal dumping activity purchased directly by WM upon execution of the amendment at the direction of the City;  Franchise Fee adjustment from 14.3% to 17.0%; and,
 To incentivize participation and minimize illegal dumping, simplify and rebalance roll off rates starting July 1, 2024, including a decrease in rates for most utilized sizes (40 yds & 50 yds bins):

The proposed updates to the scope of services present a comprehensive and balanced approach consistent with industry standards and direction. The negotiated changes extend the Agreement term, align rates with neighboring jurisdictions, and improve accountability through performance meetings while adjusting certain fees.

Additionally, the City stands to gain significant benefits, including investments in surveillance technology and adjustments to franchise fees. Moreover, the proposed simplification and rebalancing of roll-off rates aim to provide more equitable pricing for services. Overall, these updates reflect a collaborative effort to enhance service delivery in accordance with current industry practices, addressing the impact of new state regulations and providing funding for state-mandated programs. All remaining contract items not specifically outlined in this amendment, remain in full force and effect.

Report to Mayor and City Council
Re: Agreement No. A-5852 Third Amendment
Date of Meeting: April 17, 2024

Page 3 ends

FISCAL IMPACT
$8.6M; includes one-time revenues of $8.5M plus $100,000 in cameras; the third amendment will provide updates and additions to WM’s rate structure starting in July 2024.

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

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

Goal III: Invest in infrastructure to improve community livability.

B. Implement and administer environmentally sustainable programs.

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

ATTACHMENTS
Agrmt No. A-5852 Third Amendment with Waste Management
Agrmt No. A-5852 Second Amendment with Waste Management Agrmt No. A-5852 First Amendment with Waste Management
Agrmt No. A-5852 Waste Management

THIRD AMENDMENT TO AGREEMENT A-5852 BETWEEN

CITY OF PALMDALE AND
WASTE MANAGEMENT OF CALIFORNIA, INC.

FOR

INTEGRATED SOLID WASTE MANAGEMENT SERVICES
* * *

[DATE]

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THIRD AMENDMENT TO AGREEMENT A-5852 BETWEEN THE CITY OF PALMDALE AND WASTE MANAGEMENT OF CALIFORNIA, INC.

This Third Amendment to Agreement No. A-5852 (“Third Amendment”) is made and entered into by and between the City of Palmdale (hereinafter called "City") and Waste Management of California, Inc., a California corporation (hereinafter called " Company") as of the date signed by both parties, set forth below, for the collection, transportation, recycling, processing and disposal of residential, commercial and industrial solid waste and other services related to meeting the requirements of the California Integrated Waste Management Act of 1989 (AB 939) and other applicable law.

RECITALS:

WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 ("AB 939") (California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdictions; and,
WHEREAS, City declares its intention of maintaining reasonable rates and quality service related to the Collection, transfer and transportation, Recycling, processing, and Disposal of Solid Waste and other services; and,
WHEREAS, the City and Company entered into a Solid Waste Franchise Agreement effective July 1, 2018, City of Palmdale Agreement Number A-5852 (“Franchise Agreement”) whereby Company was franchised to provide exclusive residential, commercial and industrial solid waste services in the City; and,
WHEREAS, the City and Company entered into a First Amendment to Solid Waste Franchise Agreement, City of Palmdale Agreement Number A-5852, effective September 1, 2019 (“First Amendment”); and,
WHEREAS, the City and Company entered into a Second Amendment to Solid Waste Franchise Agreement, City of Palmdale Agreement Number A -5852, effective July 1, 2022 (“Second Amendment”); and,
NOW, THEREFORE, City and Company ("Parties") hereto desire to revise the terms and conditions of said Franchise Agreement , as amended by the First Amendment and Second Amendment (collectively “Amended Franchise Agreement”) to, among other things, extend the term of the Amended Franchise Agreement, as set forth below; and, NOW THEREFORE, the Parties agree as follows:

1. The terms and conditions of the Third Amendment shall become effective as of July 1, 2024.

2. As part of the consideration for entering into this Third Amendment, Company has agreed to purchase certain digital camera equipment on City’s behalf, which the City will use to monitor Agreement A-5852 Amendment 3

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illegal dumping activity in the City. Upon execution of this Third Amendment, the parties shall meet and confer to determine the digital camera equipment needed and, subject to and in accordance with Company and the City’s respective procurement and purchasing policies, Company shall purchase such digital camera equipment on the City’s behalf, for an amount not to exceed One Hundred Thousand Dollars ($100,000).

3. Section 1.32 is amended and restated in its entirety as follows:
"Gross Receipts" means all monetary amounts actually collected by the Company for the collection of Solid Waste pursuant to this Agreement. The term Gross Receipts, for purposes of this Agreement, shall not include the Franchise Fee and any other fees, charges, or surcharges paid by Contractor to City under Article 3 of this Agreement (including, without limitation, the Franchise Fee and the Franchise Extension Payment) , interest, revenues generated from the sale of Recyclable Material (including Department of Conservation rebates), Organic Waste or other receipts from state and local government accounts (including amounts paid to or retained by Company pursuant to Section 3.3).

4. Section 2.4 is amended and restated in its entirety as follows:

2.4 Term of Agreement
The term of this Agreement (the "Term") shall commence July 1, 2018 and expire on June 30, 2036, subject to extension as provided in Section 2.5, as applicable. Notwithstanding the foregoing, the unexcused failure or refusal of Collector to perform any material term, covenant, obligation or condition contained in this Agreement shall give rise to the right, in favor of City, for earlier termination of this Agreement for cause in accordance with the procedures elsewhere contained herein.

5. Section 2.5 is amended and restated in its entirety as follows:

2.5 Option to Extend
The Term may be extended by mutual agreement of the parties for a period of no less than one (1) year and no more than two (2) additional years. If either party desires to extend the Term, such party shall provide the other party with written notice of its desire to extend the Agreement at least ninety (90) days before the expiration of the then applicable Term. Such notice shall specify the desired duration of the extension.

6. Section 3.2 is amended and restated in its entirety as follows:

3.2.1 Franchise Fee.

In consideration of the Franchise granted pursuant to this Agreement and the value of its exclusivity, the Company agrees that it is appropriate that it compensate City for that privilege and its commercial value. Commencing July 1, 2024, Company shall pay to City a Franchise Fee equal to seventeen percent (17%) of the Gross Receipts derived from services rendered to accounts within the City. In accordance with Section 1.32, Gross Receipts excludes amounts billed and collected for the Franchise Fee and the Franchise Extension Payment.

3.2.2 Payment of Franchise Fee.

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Company shall pay to City the Franchise Fee for each quarter of the Operating Year within thirty (30) days following the close of each successive calendar quarter. Each such payment by Company to City shall be accompanied by a statement setting forth total Gross Receipts collected by Company, the c omputation of the total Franchise Fee due and other such information relating to the calculation and payment of this fee as may be reasonably requested by the City Manager.

7. Section 3.5 is amended and restated in its entirety as follows:

8. 3.5 [RESERVED]Section 3.10 is amended and restated in its entirety as follows:

If the fees, as provided in Sections 3.1, 3.2, 3.3, 3.4, 3.6, 3.7 and 3.8 are not paid by the specified dates as described above, Company shall pay to City a penalty in an amount equal to two percent (2%) of the amount that is late, plus interest at a rate of ten percent 10% per annum prorated to each day of delinquency. City may charge the same late payment penalties for other payments due to City pursuant to the terms thereof.

9. Section 3.11 is amended and restated in its entirety as follows:

3.11 Franchise Extension Fee.

Company will pay to the City Eight Million Five Hundred Thousand Dollars ($8,500,000.00) (the “ Franchise Extension Payment”) on July 1, 2024 . In the event this Agreement is terminated prior to expiration of the Term for any reason other than for an event of default under Section 11.4 and in accordance with Section 11.5 of this Agreement , Company shall prorate the Franchise Extension Payment as of that date . The City shall reimburse to Company such prorated Franchise Extension Payment within ninety (90) days of the date of the City’s notice of termination.

10. Section 4.5.5(C) is amended and restated in its entirety as follows:

Company shall be entitled to a rate adjustment to the rates set forth in Exhibit A under Section

6.5 of this Agreement if the number of curb miles swept substantially increases without a proportional increase in the number of customers. Company and City shall meet and confer in good faith to determine the increase in the number of curb miles and the resulting adjustment to the rates.

11. A new Section 4.11.2(K) is added:

K) Zero- and Near-Zero Emissions Vehicl es. The City and Company agree that Company’s obligations and/or scope of services under this Agreement exclude any existing requirements regarding the future conversion of fleets, or any part thereof, to Zero-emissions (ZEV) or Near -zero-emissions (NZEV) vehicle(s) or the future acquisition, hiring or use of ZEVs or NZEVs under Applicable Law, including without limitation Sections 2015 et seq. of Title 13 of the California Code of Regulations. Should such existing applicable law apply to any Company’s vehicles used in the provision of services under this Agreement during the Term, then the City and Company agree to meet and confer in good faith to amend this Agreement to incorporate provisions and obligations reasonably necessary to comply with such applicable law, and Company shall be entitled to a rate adjustment for such change in Company’s obligations and/or scope of services under this Agreement.

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12. Section 8.2.6 is amended and restated in its entirety as follows:

8.2.6 [RESERVED]

13. Exhibit A is hereby amended and restated in its entirety with Exhibit A attached hereto.

14. Unless revised in this Third Amendment, all other terms and conditions of the Franchise Agreement, First Amendment, and Second Amendment remain in full force and effect. To the extent that any capitalized term used herein is not defined in this Third Amendment, the First Amendment, Second Amendment, or the Franchise Agreement, those terms shall have the meanings ascribed to them in 14 CCR Section 18982(a).

15. Each Party hereby represents and warrants to the other Party that: (a) It has the full right, power, and authority to enter into this Third Amendment and to perform its obligations hereunder; and (b) The execution of this Third Amendment by the individual whose signature is set forth at the end of this Third Amendment on behalf of such Party, and the delivery of this Third Amendment by such Party, have been duly authorized by all necessary action on the part of such Party.

16. This Third Amendment shall be governed by, and construed and enforced in accordance with, the laws of the State of California without reference to its conflicts of law principles.

17. The Parties each agree to execute and deliver any instruments and to perform any acts as may be necessary or reasonably requested by the other in order to give full effect to this Third Amendment. The Parties each agree to act reasonably in exercising any action, discretion, judgment, approval or extension of time that may be required to affect the purpose and intent of this Third Amendment.

18. This Third Amendment may be executed in counterparts, each of which is deemed an original, but all of which constitute one and the same agreement. Delivery of an executed counterpart of this Third Amendment electronically or by facsimile shall be effective as delivery of an original executed counterpart of this Third Amendment.

19. This Third Amendment constitutes the sole and entire agreement between the Parties with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter.
[signature page follows]

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

CITY OF PALMDALE: WASTE MANAGEMENT OF
CALIFORNIA, INC.:

Ronda Perez Date
City Manager
Mike Hammer Date
President – Southern California Area

ADDRESS FOR NOTICE:

CITY OF PALMDALE
Public Works Department
38250 Sierra Hwy
Palmdale, CA 93550

ADDRESS FOR NOTICE:

Waste Management of California, Inc.

Attn: Assistant General Counsel
9081 Tujunga Ave.

Sun Valley, CA 91352

APPROVE AS TO FORM:

William P. Curley, III
Interim City Attorney

ATTEST: ATTEST: If Corporation

Rochelle Scott
Acting City Clerk
Asteghik Khajetoorians
Assistant Secretary
Agreement A-5852 Amendment 3

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Exhibit A-1

EXHIBIT A

FEE SCHEDULE

Flnsr Avrruovrrur To Ae nrevlENT A-s8s2
Berwe rru
Crrv or PalvlDALE
AND
Wnsrr MRTaceMENT op CnltroRNtA, lNc., osn WRsre MnTAGEMENT oF Arureuopr Vlluv
tJ?h ANAG E M r rur s e nvr crs
r¡*rt
@ffiËGE?{AE
Agreement A-5852 Amendment 1

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Agreement No. A-5852 Amendment I
FIRST AMENDMENT TO AGREEMENT A-5852 BETWEEN THE CITY OF PALMDALE AND WASTE MANAGEMENT OF CALIFORNIA, INC. DBA WASTE

MANAGEMENT OF ANTELOPE VALLEY
This First Amendment to Agreement No. A-5852 between the City of Palmdale and Waste Management of Antelope Valley is made and entered into by and between the City of Palmdale (hereinafter called "CITY") and Waste Management of California, Inc., a California corporation dba Waste Management of Antelope Valley (hereinafter called 'COMPANY") for the collection, transportation, recycling, processing and disposal of residential, commercial and industrial solid waste and other services related to meeting the requirements of the California lntegrated Waste Management Act of 1989 (AB 929) and other applicable law.

REGITALS:

WHEREAS, the Legislature of the State of California, by enactment of the California lntegrated Waste Management Act of 1989 ("AB 939") (California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdictions; and,
WHEREAS, the Legislature of the State of California, by enactment of Assembly Bill 341 (California Public Resources Code Section 41780 et seq.), has declared that it is the policy goal of the state that not less than 75 percent of solid waste generated be source reduced, recycled, or composted by the year 2020, and annually thereafter; and, WHEREAS, the CITY's estimated diversion rate was 7 4o/o in 2017; and, WHEREAS, pursuant to California Public Resources Code Section 40000 et. seq., including section 49300 inclusive, the City has determined that the public health, safety, and well-being require that an exclusive Franchise be awarded to a qualified company for the Collection, transfer and transportation, Recycling, processing, and Disposal of Solid Waste and other services related to meeting the Diversion goals required by AB 939, and other requirements of the California lntegrated Waste Management Act; and, WHEREAS, CITY has determined through prior Solid Waste Collection and disposal agreements that an integral component of protecting the public health, safety and well-being of its citizens through exclusive Solid Waste Collection requires that street sweeping be coordinated with and integrated into the overall collection activities; and,
Agreement A-5852 Amendment 1

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WHEREAS, CITY declares its intention of maintaining reasonable rates and quality service related to the Collection, transfer and transportation, Recycling, processing, and Disposal of Solid Waste and other services; and,
WHEREAS, the CITY and COMPANY entered into a Solid Waste Franchise Agreement effective July 1 ,2018, City of Palmdale Agreement Number A-5852 whereby COMPANY was franchised to provide exclusive residential, commercial and industrial solid waste services in the CITY; and,
WHEREAS, CITY and COMPANY are mindful of the provisions of the laws governing the safe Collection, transfer, transport, Recycling, processing and Disposal of Solid Waste, including AB 939, the Resource Conservation and Recovery Act ("RCRA"), and the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). CITY and COMPANY desire to leave no doubts as to their respective roles and to memorialize that by entering into this Agreement, CITY is not thereby becoming an "arranger" or a "generator" as those terms are used in CERCLA, and that it is COMPANY, not CITY, who is "arranging for" the Collection from Premises in the CITY, transport for Disposal, composting or other processing, and Recycling of municipal Solid Waste which may contain Hazardous Substances; and further to confirm that as a material inducement to CITY entering into this Agreement, COMPANY has agreed to fully indemnify CITY in connection with any claims, losses, liabilities, lawsuits or actions relating to the inadvertent or intentional Collection, transportation and/or Disposal of hazardous materials that may occur in connection with COMPANY's performance under this Agreement; and,
WHEREAS, COMPANY has agreed, as part of this Agreement, acting as an independent COMPANY to provide such personnel, equipment and supplies as are necessary to ensure CITY complies with the requirements of Public Resources Code Section 40000, et seq.,
NOW, THEREFORE, CITY and COMPANY ("Parties") hereto desire to revise the terms and conditions of said Franchise Agreement as set forth below; and, NOW THEREFORE, the parties agree as follows

1. The effective date of this First Amendment is September 1, 2019'

2. The reactivation fee outlined Section 5.1.4, Suspension of Service Due to Non Payment; Reactivation Fee and Exhibit A (A-1) is amended to increase the fee to $75 per incident with a $50 discount for first-time instances where, in restoring service the resident enrolls in automatic payment program. The fee schedule in Exhibit A would be updated from $15.59 per incident to reflect $75 per incident with a $50 discount applied upon enrollment in the automatic payment plan.

Agreement A-5852 Amendment 1

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3. As outlined in Section 4.9 Recycling Gontamination are materials placed in a Recyclable Materials Container other than those recyclable materials which are appropriate for collection. This section shall be amended to also cover organics collection containers. This would allow Waste Management to "tag" and provide the customer an explanation of contamination for organics containers and charge the contamination fee for special handling to that container as warranted. Exhibit A (A- 4) would be amended to read "Overfilled Container Fee and Contaminated Recycling and Organics Container Fee".

4. Section 4.11.3 Containers; Subsection G. Bins, 1. Cleaning, shall be amended from Bin Cleaning to CarUBin Cleaning and continue to be provided at no charge for the first request each year and subsequent requests would be charged as outlined under Exhibit A. Exhibit A (A-4) would be amended to read "CarUBin Cleaning (over once per year)" and charged at the same fee.

5. Section 4.11.3 Containers, subsection D. Scout and Push-Out Seruice provides service where bins are relocated from a confined area such as an enclosure or driveway that is more than 15 feet from the point the bin can be serviced by a collection truck. Due to the labor intensiveness of the service Exhibit A will be amended to add ScouUPush-Out Valet Service (Waste Bins Only) at a monthly rate of $25 per month per bin. The fee shall only apply to waste bins; recycling and organics bins shall receive this service at no cost.

6. Section 4.11.3 Containers, subsection F. Locking Bins provides this service to customers that request it for their bins at the approved rate schedule in Exhibit A.

This section shall be amended to Lock/Gate Service to also cover requests for a locking gate or enclosures. Exhibit A will be amended to show this service at the same fee as the locking bin fee ($S.OO x the number of locks service per week x 4.33 weeks per month).

7. Exhibit A shall be amended to add a "Dry Run Trip/Relocation Fee" for industrial customers when collection vehicles visit a location, are required to relocate containers, or are unable to provide a requested service due to actions by the customer. ln these cases no actual disposal services are provided and the trucks have made a "dry run" to the customer's location. This provision is applicable when the truck has adhered to the agreed to delivery date, time period, and location.

Exhibit A will reflect a Dry Run Trip/Relocation fee at $100 per occurrence.

8. Amend agreement to add clean soil or dirt as a listed material under the Roll-Off Box Charges listed in Exhibit A. Currently clean soil or dirt is not listed as a material and it is commonly disposed of. To avoid confusion over the acceptance of the material and the corresponding per ton rate Exhibit A will be amended to list DirUSoil at the same rate as Asphalt/Concrete al $12.29 per ton. ln addition recyclables including materials such as clean paper, cardboard, plastic containers and metal cans are not listed as a material under Roll-Off Box Charges listed in Exhibit A. To avoid confusion over the acceptance of recyclable materials and the corresponding per ton Agreement A-5852 Amendment 1

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rate Mixed Recyclables will be added to the existing WasteÆrash/ Organic Waste rate at $58.79 per ton.

9. Exhibit A fee schedule shall be amended to allow for a "Cardboard Contamination Fee". ln Exhibit A (A-3) the Clean Cardboard Compactor Roll-Off is charged at a flat rate per yard and doesn't outline how to charge for contaminated cardboard. Exhibit A will be updated to charge for contaminated cardboard at the same per ton rate charged under Roll-Off Box Charges for Waste/Trash/ Organic Waste rate at $58.79 per ton.

10. All other terms and conditions remain in full force and effect. ln Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.

CITY OF PALMDALE: WASTE MANAGEMENT OF
CALIFORNIA, lNC. dba WASTE

T OF ANTELOPE VALLEY
r' \--
n D. Hofbauer
Mayor
ADDRESS FOR NOTICE:

CITY OF PALMDALE
Public Works Maintenance
391 10 3'd Street East, Suite C
Palmdale, California 93550

APP AS TO FORM
Wm. Matth Ditzhazy
City Attorney
me Title,
Corcoran, Vice President
ADDRESS FOR NOTICE:

Waste Management of California, lnc.

Attn: District Manager
1200 W. City Ranch Road
Palmdale, CA 93351
ATTEST: lf Corporation
Da Date
ot¡ trQ¡zoto
A
ith, City Clerk Secretary
A-5852

EXHIBIT A

INITIAL MAXIMUM RATES
Followin are the rates for Se 20L9 thro June 30,2020:
*lncluding all City fees.
(1) Super Recycler Rate includes one 32-gallon refuse cart, one 96-gallon recycling cart, and one 96-gallon green waste cart' (2) At-your-Door HHW Collection Service is an optional service provided and charged to all residential accounts if approved by City Council. As of June 6,20L7, City Council has not approved this optional service, Residential Cart Service Rates*Monthly
Standard Service includes one Refuse, one or more Recycling, and one or more Green Waste Carts. All carts are 96- gallon (except Super Recycler Rate).

Without Street SweepingW¡th Street Sweeping
s24.10s24.98Standard Service
S19.28s20.00Low-lncome Senior Rate - 20% of standard rate s19.28520.00Super Recycler Rate - 32-gallon refuse cart (1) s20.1e N/AMobile Home (per sp.)
N/A522.79Mobile Home w/ GW (per sp.)
N/As24.!0Mobile Home 96-gal w/ GW (per sp.)
Sgz.¡gs33.ssDuplex
s38.s2S40.38Triplex
Ssg.zsSor.gsFourplex
5t2.7s5t3.2tApartment 5+ (per unit)
s13.12S13.12Addit¡onal Refuse Cart - above one
No chargeNo chargeAdditional Recycling Cart
No chargeNo chargeAdditional Green Waste Cart
Other Res¡dential Rates and Services* (Charged in Addition to Monthly Cart Service Rates) No chargeWalk-Out Service - authorized disabled Customers S0.41lmonthSpecialized Cart Lock Service (per cart)
S20.63 per pickupSpecial Bulky ltem Pick-up (over two free per year for Single-Family and Multi-Family Residents) S75.00 per reactivationResidential Account Reactivation Fee (only if Carts were removed for nonpayment) (S50 discount applied upon enrollment in automatic payment plan) S0.99/monthAt-Your-Door HHW Collection Service (2)
July 75,2079 A-1 City of Palmdale

EXHIBIT A
lNlTlAL MAXIMUM RATES (continued)
Following are the rates for September L,2Ot9 through June 30, 2O2O:
*lncluding all City fees.
(1) Refuse service offered once per week. Organics service offered up to three times per week.

A-5852
Monthly Bin and Commercial Cart Rates*
Container Size
Pickups per week
1 2 3 4 5 6
Extre
Refuse I Oreanic Waste Containers
Commercial Cart
(1)
Sg¡.oz 567.34 S101.02 N/A N/A N/A 5L7.t7
l yard Bin 567.20 stzt.63 S163.17 SzoqJo N/A N/A s2s.87

1..5 yard Bin s82.e6 s1,48.le s2os.20 Szta.tz Sga+.sz S448.01 Sgs.er 2 yard Bin Sgs.gz s170.s2 5zß.qt s2e4.oo 5412.26 547e.48 548.s6 3 yard Bin Srgz.sE 5232.32 s333.s1 54L1.64 s448.36 s4e4.0s sss.0s 4 yard Bin S1se.87 Sgoo.¿g S428.30 ss41..L7 s61s.60 s660.14 Sog.r+ 6 yard Bin $zu.gq Sgos.¿g s48s.s1 So+z.go 5723.6e Ssrz.rs s70.36 3 yard compactor 527s.07 Sqoq.aq s667.00 Segs.zs Sgge.zr Sggs.oe N/A 4 yard compactor 53te.7t s600.97 Saso.sr st,o82.32 5L,23t.22 $t,3zo.zl N/A 6 yard compactor S434.6e S736.e9 s971.01 5L,294.60 5L,447.38 5L,634.37 N/A Recvcling Containers
CommercialCart $rr.rr N/A N/A N/A N/A N/A ss.67
L yard Bin 5zz.tt S40.i.4 ss3.8s iot.st N/A N/A s8.s3

1.5 yard Bin 527.38 s48.e0 567.72 578.78 s126.90 5!47.82 Srz.ar 2 yard Bin Sgr.oo Ssa.zt 572.43 5e7.02 s136.0s $1s8.22 s16.02 3 yard Bin s4s.39 576.67 Srro.oe 5L37.82 st47.es S163.04 S18.16 4 yard Bin 5s2.76 see.16 s141.34 S178.s9 s203.14 Szn.eq s20.83 6 yard Bin 571.72 s121.60 irco.zz s213.61 s238.81 s26e.68 izt.zt Lock/Gate Service 521.6s S43.30 So+.gs Seo,oo S108.2s Srzg.go N/A July 15,2019 A-2 City of Palmdole

EXHIBIT A
lNlTlAL MAXIMUM RATES (continued)
Following are the rates for September I,2Ot9 through June 30, 2O2O:
*lncluding all City fees.

A-5852
Roll-off Box Charges*
Container
Size
Handling
Fee Per
Pickup
Material Cost Per Ton Rental Fees After 7 Days
Waste/
Trash/
Organic
Waste/Mixed
Recyclables
Wood
Only
Asphalt/
Concrete
or Clean
Soil/Dirt
Daily Weekly Monthly
L0 Yard 5235.17 Ssg.zg 541.zs itz.zg So.+o s4s.29 s181.03 25 Yard 52ee.e7 Sss.zg $qt.zs sL2.2e $a.os ss6.s4 5226.34 30 Yard 532e.26 Sss.zg 541.zs 5r2.2e 5s.72 s67.86 5277.56 40 Yard 5411.e3 Sss.zg s4r.2s 5t2.2s s11.33 57e.zt s316.78 Clean Cardboard Compactor Roll-off
Container Size Per Pickup
10 Yard 560.76
25 Yard s82.60
30 Yard se1.e8
40 Yard S101.3o
Contaminated Cardboard 558.79 per ton
July 75, 2079 A-3 City of Palmdole

EXHIBIT A
lNlTlAL MAXIMUM RATES (continued)
Following are the rates for September t,20Lg through June 30, 2O2O:
*lncluding all City fees.

A-5852
Additional Service Charges Rate Per Service*
3-yard Temporary Bin
- Per dump (delivery, Disposal and 7-day rental included) s12s.3e - Rental fee per day (after 7-days) s12.68
Cart/Bin Cleaning (over once per year) s63.e8
Overfilled Container Fee and Contaminated Recycling and Organics Container Fee
s63.e8
Commercial Cart Reactivation Fee (Only if Carts were removed for nonpayment) s2s.e9
Dry Run Trip/Relocation Fee
S100.oo /occurrence
Scout and Push-Out Service Valet Service (Waste Bins Only) 525.00 per bin (per month)
July 75,2079 A-4 City of Palmdale
A-5852

EXHIBIT A
lNlTlAL MAXIMUM RATES (continued)
Following are the rates for September t,2OLg through June 30, 2O2O:
*lncluding all City fees.

Additional 565.OO deposit required which will count towards the final payment when the program is discontinued at the Certified Collection Center.

Used Oil Collection Program Rate Per Service*
Door-to-Door Residential Used Oil Collections 574.85 per stop Certified Used Oil Collection Center lnspections S103.96 per hour plus mileage
Used Oil Filter Drum Collection (1) 546.78
Uncrushed Filter Drum 567.s7
Crushed Filter Drum s88.36
CalRecycle Used OilAnnual Report Preparation 5103.96 per hour July 75, 2079 A-5 City of Polmdale

Agreement
No
.
:

A
-
5852
IN

WITNESS

WHEREOF
,
City
and
Company
have
executed
this
Agreement
as
of
the
day
and
year
first
above
written
.

CITY
OF

PALMDALE
(
"
Cit
Jalj
2 ^
0 )
7 WASTE

MANAGEMENT
OF

CALIFORNIA
,
INC
.
,
dba
WASTE

MANAGEMENT
OF

ANTELOPE
VALLEY
DATED
:

CITY
OF
PALiyfDALE
By
:

By
:
[
Name
]
Mayor
resentative
Title
:

President
—
Southern
California
Rrpa
i
June
.
2017
By
:

Authorized
Representative
Title
:

Vice
President
and
As
sistant
Secretary
Date
;
June
27 .
2 pl
7 App
rovedas
to
form
;
By
:

F
5 T
:
¥
mel
,
S
\
u
CijtyClerk
June
21 ,
2017
-
130
-
City
of
Palmdale

City Council Staff Report
DATE: APRIL 17, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT

CITY CLERK DIVISION
DISTRICT: ALL
SUBJECT: STAFF FOLLOW-UP RESPONSE TO APRIL 3, 2024, CITY COUNCIL DIRECTION: DISCUSSION ON OPTIONS FOR L ANGUAGE

INTERPRETATION SERVICES AT COUNCIL MEETINGS

RECOMMENDATION
Adopt the use of City Staff as interpreters while further investigation into software services is being carried out.

BACKGROUND
At the April 3, 2024, meeting, the Council directed staff to bring back a report on potential options for providing language interpretation services at council meetings.

DISCUSSION
City staff is exploring the possible use of Artificial Intelligence (AI) solutions and providing interpreting services through our certified Spanish-speaking employees.

The City has a number of certified employees who provide Spanish interpretation assistance to residents and customers. The employees will be polled to see w ho is available to interpret at the meetings.

The Information Technology Division is reviewing several Artificial Intelligence ( AI) platforms for security and compatibility.

For efficiency and cost containment, we are not recommending third-party translation services at this time.

FISCAL IMPACT
$0; there is no fiscal impact associated with this action.

Report to Mayor and City Council
Re: Discussion on options provided for language interpretation services April 17, 2024

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

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

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

Palmdale City CouncilApril 17, 2024

Palmdale City Council
April 17, 2024