Agenda packet, regular meeting, first session — Palmdale City Council, May 1, 2024 (part 2 of 6)

Portfolio ID: 6748 - 58411

Shocked Assumptions
Scenarios
Down 300
Down 200
Down 100
Base
Up 100
Up 200
Up 300
Shift Amount
-300
-200
-100
0 100
200
300
Curve Slope Change
0 0
0 0
0 0
0 Shock Horizon
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Immediate
Curve Type
Static
Static
Static
Static
Static
Static
Static
Valuation Date
2024-03-31
2024-03-31
2024-03-31
2024-03-31
2024-03-31
2024-03-31
2024-03-31
City of Palmdale - Palmdale, CA
As of 3/31/2024

Page 44 of 46 ends

Portfolio ID: 6748 - 58411

Report Assumptions
Assumptions
·

Calculation Engine
The Yield Book © and ZM Financial
·

Cash Flow Model
The Yield Book ©
·

Curve Date
Same as Portfolio As Of Date
·

Curve Type Used
Swap Curve
·

Curve Shape
Immediate Sustained Parallel Shocks
·

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

Horizon Period
Immediate Time Horizon
·

Reinvestment Rate
3 Month T-Bill
·

Cost of Funds

1.00%
·

Tax Rate

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

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

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

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

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

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

City of Palmdale - Palmdale, CA
As of 3/31/2024

Page 45 of 46 ends

Portfolio ID: 6748 - 58411

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

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’
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’
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’
s licensors
’,
as applicable).

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©
2024
Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE, One South Street, Baltimore, MD 21202
. All rights reserved.

Disclaimer
City of Palmdale - Palmdale, CA
As of 3/31/2024

Page 46 of 46 ends

Portfolio ID: 6748 - 58411

PORTFOLIO REVIEW AND ANALYSIS
City of Palmdale - Successor Agency
Palmdale, CA
As of Date: 03/31/2024
Pricing as of: 03/28/2024
Date of Analysis: 04/05/2024
Account Executive: Bill Blackwill

Book Value
6,283
# Securities
1 Average Size (Book)
6,283
Yield at Book

0.78 Market Yield

0.78 $ Gain/Loss
0 % Gain/Loss

0.0%
Average Life

0.08 Average Life +300bps

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

0.08 Effective Convexity

0.00 AFS / HTM%
100% / 0%
Fixed / Floating
100% / 0%
ESG/Green Par (000's)
$0 / $0
Portfolio Overview
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 2 of 26 ends

Portfolio ID: 6753 - 58411

Historical Portfolio Overview
03/31/2024
12/31/2023
09/30/2023
06/30/2023
Book Value
6,283
6,216
7,025
12,989
Yield at Book

0.78 0.78

0.78 0.78
Yield at Book (+100)

0.78 0.78

0.78 0.78
Yield at Book (+300)

0.78 0.78

0.78 0.78
Yield at Book (-100)

0.78 0.78

0.78 0.78
WAL

0.08 0.01

0.08 0.08
WAL (+100)

0.08 0.01

0.08 0.08
WAL (+300)

0.08 0.01

0.08 0.08
WAL (-100)

0.08 0.01

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

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

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

0.1%

0.0%

0.1%

0.1%
Effective Duration

0.08 0.01

0.09 0.09
Effective Convexity

0.00 0.00

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

0.0%

0.0%
$ Gain/Loss (+300)
-16
-1
-18
-33
Principal Cash Flow 2 yrs out
100%
100%
100%
100%
Principal Cash Flow 2 yrs out (+100)
100%
100%
100%
100%
Principal Cash Flow 2 yrs out (+300)
100%
100%
100%
100%
Principal Cash Flow 2 yrs out (-100)
100%
100%
100%
100%
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 3 of 26 ends

Portfolio ID: 6753 - 58411

Portfolio Sector Summary
Portfolio
Par
Book
Yield
Market
% Price Change
Gain/(Loss)
Effective
AFS
Sector
%
Value
Cpn
Maturity
Value
@Bk
Value
Yield
-100
+100
+300
$
%
WAL
Dur
Cvx
%
Cash & Other (1)
100.0%
6,283

0.78 0.1 yrs
6,283

0.78 6,283

0.78 0.1
-0.1
-0.2
0 0.0%

0.08 0.08

0.00 100 %
Other (1)
100.0%
6,283

0.78 0.1 yrs
6,283

0.78 6,283

0.78 0.1
-0.1
-0.2
0 0.0%

0.08 0.08

0.00 100 %
Total (1)
100.0%
6,283

0.78 0.1 yrs
6,283

0.78 6,283

0.78 0.1
-0.1
-0.2
0 0.0%

0.08 0.08

0.00 100 %
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 4 of 26 ends

Portfolio ID: 6753 - 58411

Shocked Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
6,283
6,283
6,283
6,283
6,283
6,283
6,283
Book Value
6,283
6,283
6,283
6,283
6,283
6,283
6,283
Market Value
6,299
6,294
6,289
6,283
6,278
6,273
6,268
Gain/(Loss)
16 10
5 0
-5
-10
-16
Gain/(Loss) %

0.3%

0.2%

0.1%

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

0.3%

0.2%

0.1%

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

0.78 0.78

0.78 Market Price
100.25
100.17
100.08
100.00

99.92 99.83

99.75 Market Yield
-2.20
-1.21
-0.22

0.78 1.78

2.79 3.80
WAL

0.08 0.08

0.08 City of Palmdale - Successor Agency - Palmdale, CA As of 3/31/2024

Page 5 of 26 ends

Portfolio ID: 6753 - 58411

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

0.1%
6,283
-0.1%
-0.2%
-0.3%

0.1%
Total

0.1%
6,283
-0.1%
-0.2%
-0.3%

0.1%
Scenario Market Val
6,289
6,283
6,278
6,273
6,268
Scenario Gain/Loss
5 0
-5
-10
-16
Total Portfolio (AFS + HTM):
% Change in Market Val from Level
-200 bps

0.2%
-100 bps

0.1%
Level Market Val
6,283
+100 bps
-0.1%
+200 bps
-0.2%
+300 bps
-0.2%
+400 bps
-0.3%
Effective Duration

0.08 Effective Convexity

0.00 City of Palmdale - Successor Agency - Palmdale, CA As of 3/31/2024

Page 6 of 26 ends

Portfolio ID: 6753 - 58411

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

Label
Muni
Corp
Oth
Fixed
AFS
1 03/24
7,014
-6.0

2.85 3.3

3.2 3.5

2.7 -2.6
-7.5

2.7 0.1
0%
15%
0%
15%
0%
0%
0%
0%
0%
0%
71%
100%
100%
2 12/23
4,999
-0.6

3.43 0.4

0.3 0.4

0.3 -0.4
-1.1

0.4 0.0
90%
0%
0%
0%
0%
0%
0%
0%
0%
0%
10%
100%
100%
3 03/24
8,000
-7.5

1.25 2.1

2.1 2.1

2.1 -2.0
-5.8

2.0 0.1
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
4 03/24
4,042
-7.3

0.91 2.0

2.0 2.0

1.9 -1.9
-5.4

1.9 0.1
94%
0%
0%
0%
0%
0%
0%
0%
0%
0%
6%
100%
100%
5 12/23
8,728
-6.9

1.86 2.8

2.7 2.8

2.6 -2.6
-7.5

2.6 0.1
31%
0%
0%
0%
0%
0%
0%
0%
0%
0%
69%
100%
100%
6 01/24
9,934
-12.7

4.08 6.8

6.0 6.9

4.0 -4.0
-11.9

4.0 -0.1
11%
0%
0%
0%
0%
0%
0%
0%
74%
3%
12%
100%
100%
7 12/23
2,520
-3.9

2.98 2.2

2.2 2.2

2.1 -2.1
-6.0

2.1 0.1
42%
0%
0%
0%
0%
0%
0%
0%
0%
0%
58%
100%
100%
8 12/23
11,453
-4.1

1.61 2.2

2.2 2.2

2.1 -2.0
-5.8

2.0 0.1
3%
0%
0%
0%
0%
0%
0%
0%
27%
37%
34%
100%
100%
9 12/23
12,884
-3.7

2.74 2.0

1.8 2.3

1.7 -1.7
-5.2

1.7 0.0
27%
0%
0%
0%
0%
0%
0%
0%
0%
0%
73%
100%
100%
10 02/24
13,495
-0.3

4.39 1.4

1.1 1.4

1.0 -1.1
-3.5

1.1 -0.1
48%
0%
0%
0%
0%
0%
0%
0%
0%
0%
52%
100%
100%
11 01/24
24,884
-0.2

4.35 0.8

0.4 0.8

0.5 -0.6
-1.9

0.5 -0.1
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
12 01/24
24,999
-0.3

3.45 0.8

0.4 0.8

0.5 -0.6
-1.9

0.5 -0.1
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
13 02/24
25,738
-2.4

3.00 2.4

2.2 2.4

2.0 -2.0
-6.0

2.0 0.0
65%
0%
0%
0%
0%
0%
0%
0%
0%
14%
21%
100%
100%
14 12/23
26,100
-4.0

0.23 1.1

1.1 1.1

1.0 -1.0
-2.9

1.0 0.0
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
15 12/23
26,691
-5.6

2.01 2.5

2.4 2.6

2.1 -2.2
-6.6

2.1 0.0
60%
0%
0%
0%
0%
3%
0%
0%
0%
0%
37%
100%
100%
16 03/24
35,570
-6.9

1.27 2.1

2.1 2.1

2.0 -1.9
-5.7

2.0 0.0
98%
0%
0%
0%
0%
0%
0%
0%
0%
0%
2%
100%
100%
17 03/24
37,196
-1.3

3.21 1.3

1.2 1.3

1.2 -1.2
-3.4

1.2 0.0
22%
0%
0%
0%
0%
0%
0%
0%
35%
2%
41%
100%
100%
18 01/24
37,962
-1.9

3.68 2.1

1.8 2.1

1.6 -1.7
-5.1

1.6 -0.1
25%
0%
0%
0%
0%
0%
0%
0%
0%
0%
75%
100%
100%
19 03/24
38,657

0.9 5.31

3.8 3.8

3.9 3.4
-3.3
-9.5

3.3 0.2
0%
0%
0%
0%
0%
77%
0%
0%
2%
0%
21%
100%
100%
20 12/23
40,613
-2.1

2.15 1.6

1.3 1.7

1.1 -1.2
-3.7

1.1 -0.1
53%
0%
0%
0%
0%
1%
0%
0%
1%
1%
44%
100%
100%
21 03/24
52,019
-4.6

2.64 2.2

2.0 2.2

1.8 -1.9
-5.6

1.8 -0.1
99%
0%
0%
0%
0%
0%
0%
0%
0%
0%
1%
100%
100%
22 03/24
60,211
-0.8

4.87 2.3

1.1 2.7

1.1 -1.4
-5.1

1.2 -0.4
60%
0%
0%
0%
0%
5%
0%
0%
0%
0%
35%
100%
100%
23 12/23
62,546
-2.2

3.07 2.9

2.9 2.9

2.7 -2.6
-7.5

2.6 0.1
72%
0%
0%
0%
0%
0%
0%
0%
3%
11%
14%
100%
100%
24 01/24
91,316
-3.4

2.35 2.0

1.7 2.0

1.6 -1.7
-5.1

1.6 -0.1
71%
0%
0%
0%
0%
0%
0%
0%
2%
0%
27%
100%
100%
25 12/23
103,028
-3.0

3.32 2.7

2.4 2.8

2.0 -2.1
-6.5

2.1 -0.1
76%
0%
0%
0%
0%
1%
0%
1%
0%
10%
11%
99%
100%
Avg
30,824
-3.6

2.84 2.2

2.0 2.3

1.8 -1.8
-5.4

1.8 0.0
58%
1%
0%
1%
0%
3%
0%
0%
6%
3%
29%
100%
100%
Port
6,283

0.0 0.78

0.1 0.1

0.1 0.1
-0.1
-0.2

0.1 0.0
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
100%
100%
Diff
-24,541

3.6 -2.06
-2.1
-1.9
-2.2
-1.7

1.7 5.2
-1.7

0.0 -58%
-1%
0%
-1%
0%
-3%
0%
0%
-6%
-3%
71%
0%
0%
* Peer group includes Public Entitys that have received portfolio analysis from Stifel in the last three months with the closest portfolio book values.

City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 7 of 26 ends

Portfolio ID: 6753 - 58411

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

City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 8 of 26 ends

Portfolio ID: 6753 - 58411

Cash Flow and Rolloff Yield - Next 12 Months
Yield Rolloff
Month
Begin BY
Principal CF
Rolloff Yld
Ending BY
Apr 2024

0.78 6,283

0.78 Shocked Principal and Interest Cash Flow Analysis
Year
-300
-200
-100
Base
+100
+200
+300
Apr 2024
6,288
6,288
6,288
6,288
6,288
6,288
6,288
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 9 of 26 ends

Portfolio ID: 6753 - 58411

Cash Flow and Rolloff Yield - Next 10 Years
Yield Rolloff
Year
Begin BY
Principal CF
Rolloff Yld
Ending BY
2024

0.78 6,283

0.78 2025
2026
2027
2028
2029
2030
2031
2032
2033
Shocked Principal and Interest Cash Flow Analysis
Year
-300
-200
-100
Base
+100
+200
+300
2024
6,288
6,288
6,288
6,288
6,288
6,288
6,288
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 10 of 26 ends

Portfolio ID: 6753 - 58411

Sector Cash Flow - Next 12 Months
Apr 24
May 24
Jun 24
Jul 24
Aug 24
Sep 24
Oct 24
Nov 24
Dec 24
Jan 25
Feb 25
Mar 25
Bk Yld Chg
Other
Cash Flow
6,288
End BY
Total
Cash Flow
6,288
End BY
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 11 of 26 ends

Portfolio ID: 6753 - 58411

Sector Cash Flow - Next 3 Years
2Q24
3Q24
4Q24
1Q25
2Q25
3Q25
4Q25
1Q26
2Q26
3Q26
4Q26
1Q27
Bk Yld Chg
Other
Cash Flow
6,288
End BY
Total
Cash Flow
6,288
End BY
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 12 of 26 ends

Portfolio ID: 6753 - 58411

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

0.25 16
-33

0.25 0.50
31 -18

0.50 0.75
47 -2

0.75 1.00
63 14

1.00 1.25
79 29

1.25 1.50
94 45

1.50 1.75
110
61 1.75

2.00 126
77 2.00

2.25 141
92 2.25

2.50 157
108

2.50 2.75
173
124

2.75 3.00
189
139

3.00 3.25
204
155

3.25 3.50
220
171

3.50 3.75
236
187

3.75 4.00
251
202

4.00 4.25
267
218

4.25 4.50
283
234

4.50 4.75
298
249

4.75 5.00
314
265

5.00 5.25
330
281

5.25 5.50
346
296

5.50 5.75
361
312

5.75 6.00
377
328

6.00 6.25
393
344

6.25 6.50
408
359

6.50 6.75
424
375

6.75 7.00
440
391

7.00 7.25
456
406

7.25 7.50
471
422

7.50 7.75
487
438

7.75 8.00
503
454

8.00 Principal Maturing(12 Mo.Horizon): $6,283
Current Yield at Book of Principal Maturing: 0.78%
Est. Annual Income at Current Yield at Book: $49
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 13 of 26 ends

Portfolio ID: 6753 - 58411

Shocked Cash Flows By Sector - Next 10 Years
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 14 of 26 ends

Portfolio ID: 6753 - 58411

Cash Flows By Sector - Next 30 Years
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 15 of 26 ends

Portfolio ID: 6753 - 58411

Cash Flow Projection By Month - Next 5 Years
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 16 of 26 ends

Portfolio ID: 6753 - 58411

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

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.08 0.00
Cash & Other (1)
100.0%
6,283

0.78 6,283

0.78 -16
-0.2%

0.08 -0.2
100.0%

0.1 yrs
100.00
100.00
0 0.0%

0.08 0.1

0.08 0.00
Total (1)
100.0%
6,283

0.78 6,283

0.78 -16
-0.2%

0.08 -0.2
100.0%
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 17 of 26 ends

Portfolio ID: 6753 - 58411

Portfolio Considerations
Par
Book
Market
Gain/
Yield
Eff.

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

Life
Life
Count
Yield at Book < 2%
1 0.78

0.1 yrs
6,283
100.00
100.00
0 0.78

0.1 0.08
Cash & Other
1 0.78

0.1 yrs
6,283
100.00
100.00
0 0.78

0.1 0.08
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 18 of 26 ends

Portfolio ID: 6753 - 58411

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

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

PLMDLLAIF
Cash & Other
LAIF

0.78 04/30/24
6,283
100.00
100.00
0 0.781

0.08 -0.25
-16
-16

0.08 AFS

0.78 6,283
100.00
100.00
0 0.781

0.08 -0.25
-16
-16

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

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

PLMDLLAIF
Cash & Other
LAIF

0.78 04/30/24
6,283
100.00
100.00
0 0.781

0.08 -0.25
-16
-16

0.08 AFS

0.78 6,283
100.00
100.00
0 0.781

0.08 -0.25
-16
-16

0.08 City of Palmdale - Successor Agency - Palmdale, CA As of 3/31/2024

Page 19 of 26 ends

Portfolio ID: 6753 - 58411

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

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

PLMDLLAIF
Cash & Other
LAIF

0.78 04/30/24
6,283
100.00
100.00
0 0.781

0.08 -0.25
-16
-16

0.08 AFS

0.78 6,283
100.00
100.00
0 0.781

0.08 -0.25
-16
-16

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

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

PLMDLLAIF
Cash & Other
LAIF

0.78 04/30/24
6,283
100.00
100.00
0 0.781
-0.25

0.08 0.08

0.08 0.00
AFS

0.78 6,283
100.00
100.00
0 0.781
-0.25

0.08 0.08

0.08 0.00
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 20 of 26 ends

Portfolio ID: 6753 - 58411

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

Bk Price
Yield
Mkt Price
%
-100
Dur
ESG/G
r
CUSIP
Ticker
Value
Rate
Rate
Final Mat.

Bk Value
@ Bk
Mkt Value
Mkt Yield
$
+300
Cvx
Intent
Fixed
04/24
100.00
100.00

0.0%

0.1 0.08

PLMDLLAIF
6,283

0.780
04/30/24
6,283

0.78 6,283

0.78 0
-0.2

0.00 AFS
100.00
100.00

0.0%

0.1 0.08
Cash & Other
6,283

0.780
6,283

0.78 6,283

0.78 0
-0.2

0.00 100.00
100.00

0.0%

0.1 0.08
Total
6,283

0.780
6,283

0.78 6,283

0.78 0
-0.2

0.00 City of Palmdale - Successor Agency - Palmdale, CA As of 3/31/2024

Page 21 of 26 ends

Portfolio ID: 6753 - 58411

Shocked CUSIP Analysis
-300
-200
-100
Base
+100
+200
+300
Par Value
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
$ Amt
Δ
% Px
Δ
CUSIP
Coupon
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Mkt Px
Mkt Yld
Description
Maturity
WAL
WAL
WAL
Dur
WAL
WAL
WAL
WAL
6,283
16 0.25%
10 0.17%
5 0.08%
0 0.00%
-5
-0.08%
-10
-0.17%
-16
-0.25%

PLMDLLAIF

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 LAIF
04/30/2024

0.08 0.08

0.08 0.08
Other
6,283
16 0.25%
10 0.17%
5 0.08%
0 0.00%
-5
-0.08%
-10
-0.17%
-16
-0.25%

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 0.08

0.08 0.08

0.08 Total
6,283
16 0.25%
10 0.17%
5 0.08%
0 0.00%
-5
-0.08%
-10
-0.17%
-16
-0.25%

0.78 100.25
-2.20
100.17
-1.21
100.08
-0.22
100.00

0.78 99.92

1.78 99.83

2.79 99.75

3.80 0

0.08 0.08

0.08 0.08
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 22 of 26 ends

Portfolio ID: 6753 - 58411

Portfolio Changes
Partial Buy12/2023-3/2024
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
Redemption Type

PLMDLLAIF
Other
LAIF
04/30/2024

0.78 6,283,347
100.00
AFS
Same CUSIP buys
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 23 of 26 ends

Portfolio ID: 6753 - 58411

Page 24 of 26 ends

Portfolio ID: 6753 - 58411

Report Assumptions
Assumptions
·

Calculation Engine
The Yield Book © and ZM Financial
·

Cash Flow Model
The Yield Book ©
·

Curve Date
Same as Portfolio As Of Date
·

Curve Type Used
Swap Curve
·

Curve Shape
Immediate Sustained Parallel Shocks
·

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

Horizon Period
Immediate Time Horizon
·

Reinvestment Rate
3 Month T-Bill
·

Cost of Funds

1.00%
·

Tax Rate

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

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

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

City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 25 of 26 ends

Portfolio ID: 6753 - 58411

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

Disclaimer
City of Palmdale - Successor Agency - Palmdale, CA
As of 3/31/2024

Page 26 of 26 ends

Portfolio ID: 6753 - 58411

City Council Staff Report
DATE: MAY 1, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE ANNUAL REPORT ON DEVELOPMENT IMPACT FEES FOR THE FISCAL YEAR ENDED JUNE 30, 2023, AND

ADOPT FINDINGS TO COMMIT FUNDS HELD IN THE LITTLEROCK

DRAINAGE FEE FUND, FIRE FACILITIES FEE FUND , AND SEWER

UPGRADE FEE FUND

RECOMMENDATION
Staff recommends that the City Council:

1. Accept the Annual Report on Development Impact Fees for the Fiscal Year Ended June 30, 2023; and,

2. Adopt findings to commit funds held in the Littlerock Drainage Fee Fund , Fire Facilities Fee Fund, and Sewer Upgrade Fee Fund.

BACKGROUND
The City is authorized under state law to require development applicants to contribute fees for off-site public improvements needed because of new developments. The fees are charged based upon a pro -rata share of the cost of the new imp rovements. This report is issued annually at the conclusion of the City’s financial audit for the prior fiscal year. The Fiscal Year 2023 audit concluded on January 29, 2024, at which point this report was developed to provide information related to the st atus of these funds for the year ended June 30, 2023.

State law requires the City to provide a public notice specifying that this report is available for inspection no less than 15 days before the public meeting. The public notice was issued, and the report was available for inspection on April 16, 2024.

Government Code Section 66001 (AB1600) requires the City to review the status of collected development impact and mitigation fees on an annual basis. If any fees remain Report to Mayor and City Council
Re: Development Impact Fee Report for Year Ended June 30, 2023 May 1, 2024

Page 2 ends

unexpended and unencumbered for more than five years, the City may retain them if the City Council adopts certain findings that substantiate the need for retaining such funds. If the findings are not adopted to support the retention of the funds, the unexpended fees must be returned to the subject property’s current owner(s).

DISCUSSION
The attached schedule provides a breakdown of accounts for the year ending June 30, 2023. All the accounts presently maintain positive cash positions and were allocated interest earnings pro-rata as prescribed by state law. The statute also specifies that the report includes the following:
 The amount of each development fee;
 The beginning and ending fund balance for each development fee account;  The amount of funds expended on each project for the year ended;  A description of each inter-fund transfer or loan made from each development fee account; and,
 If applicable, the refund amounts made pursuant to the Government Code Section 66001.

As of June 30, 2023, the Littlerock Drainage Fee Fund, Fire Facilities Fee Fund, and the Sewer Upgrade Fee Fund hold over five years of funds as follows:
.
 $44,672 of the $48,323 balance in the Littlerock Drainage Fee Fund,  $4,617,106 of the $8,644,380 balance in the Fire Facilities Fee Fund, and,  $436,560 of the $482,095 balance in the Sewer Upgrade Fee Fund.

At this time, the City Council can make a finding that these uncommitted funds have a specified purpose and that there is a reasonable relationship between the fee and the purpose for which it was charged. The funds accumulated in the Littlerock Drainage Fee Fund will be used for large drainage projects. The funds in the Fire Facilities Fee Fund are being accumulated for fire facility projects. The funds in the Sewer Upgrade Fee Fund will be used for large sewer upgrade projects.

Unless this finding is made, the collected fees must be refunded to the correct record owner or owners of lots or units of the development project.

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

STRATEGIC PLAN
Report to Mayor and City Council
Re: Development Impact Fee Report for Year Ended June 30, 2023 May 1, 2024

Page 3 ends

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: Bilkeyshia Jester, Senior Financial Analyst 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
Rpt. Annual Report on Development Impact Fees for Year Ended June 30, 2023 eidebailly.com
C
ity of Palmdale
Annual Report
On
Development Impact Fees
For
Fiscal Year Ended
June 30, 2023
Prepared by
Eide Bailly LLP
What inspires you, inspires us. | eidebailly.com
10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE A
pril 1, 2024
Janelle Samson, Director of Finance
City of Palmdale
38300 N. Sierra Highway
Palmdale, CA 93550
Re: Acceptance of Annual Report on Development Impact Fees and Adopt Findings to Commit Funds Held in the Littlerock Drainage Fee Fund, Fire Facilities Fee Fund and the Sewer Upgrade Fee Fund
Dear Ms. Samson:

The firm of Eide Bailly LLP recently completed an analysis of the City’s accounting records for completing the City’s annual report on development impact fees. This correspondence and accompanying schedules comprise the annual report and should be made available for public inspection.

The City of Palmdale is authorized under state law to require development applicants to contribute fees towards the cost of off-site public improvements which are needed as a result of the new development.

The fees are charged based upon a pro-rata share of the cost of the new improvements. This report provides information related to the status of these funds for the year ended June 30, 2023. State law requires the City to provide a public notice that specifies that this report is available for inspection.

Government Code Section 66001 (AB1600) requires the City to review on an annual basis the status of collected development impact and mitigation fees. In the event that any fees remain unexpended and unencumbered for more than five years, the City may retain the fees if the City Council adopts certain findings which substantiate the need for retaining such funds. In the event that the findings are not adopted to support the retention of the funds, the unexpended fees must be returned to the current owner(s) of the subject property.

The attached schedule provides a breakdown of accounts for the year ending June 30, 2023. All the accounts maintaining positive cash positions were allocated interest earnings on a pro-rata basis as prescribed by state law. The statues also specify that the report include the following:
• The amount of each development fee
• The beginning and ending fund balance for each development fee account • The amount of funds expended on each project for the year just ended • The amount of developer fees collected and interest earned for the year just ended • A description of each interfund transfer or loan made from each development fee account • If applicable, the amount of refunds made pursuant to Government Code Section 66001 As of June 30, 2023, the following accounts holds funds that are over five years old:

Littlerock Drainage Fee Fund $44,672
Fire Facilities Fee Fund $4,617,106
Sewer Upgrade Fee Fund $436,560
A
t this time, the City Council can make a finding that these uncommitted funds have a specified purpose and that there is a reasonable relationship between the fee and the purpose for which it was charged.

Unless this finding is made, the collected fees will need to be refunded to the current record owner or owners of lots or units of the development project.

The funds being accumulated in the Littlerock Drainage Fee Fund are to be used for large drainage projects. Funds being accumulated in the Fire Facilities Fee Fund are being accumulated for fire facility projects and the funds being accumulated in the Sewer Upgrade Fee Fund are to be used for large sewer upgrade projects. Presently, there are not funds available to commence the projects. City staff recommends that the City Council specify that the uncommitted funds in the Littlerock Drainage Fee Fund are to be used for the projects noted in the City of Palmdale Master Plan of Drainage dated August 1996.

That the uncommitted funds in the Fire Facilities Fee Fund will be held for the benefit of the Consolidated Fire Protection District of Los Angeles County District Area 3 for future fire station projects. And the uncommitted funds held in the Sewer Upgrade Fee Fund will be held for projects noted in the Ten-Year Capital Improvement Plan.

Action To Be Taken By City Council

1. At the recommendation of City Management accept the Annual Report on Development Impact Fees held longer than five years and adopt the following findings.

2. That the Drainage funds held and totaling $44,672 in the Littlerock Drainage Fee Fund are to be held for projects noted in the City of Palmdale Master Plan of Drainage dated August 1996. That the funds held totaling $4,617,106 in the Fire Facilities Fee Fund will be held for the benefit of the Consolidated Fire Protection District of the Los Angeles County District Area 3 for future fire station projects. And that the funds totaling $436,560 in the Sewer Upgrade Fee Fund will be held for projects noted in the Ten-Year Capital Improvement Plan.

Our firm appreciates the assistance and cooperation your City staff extended to us during our work. If you or any City officials have questions regarding this report, I can be contacted at 909.466.4410.

Sincerely yours,
Roger Alfaro, CPA
Eide Bailly LLP
Attachments
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
N
on Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2022-2023 2022-2023 2022-2023 2022-2023 2022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Traffic Impact Fee (Fund 209/221)
Street Signal Debt Service 867,122$ 867,122$
Ave R 45th St E Traffic Signal 1,090,311 1,090,311
Totals 1,957,433$ - $ 1,957,433$ -$ 677,674$ 23,041$ - $ - $ - $ 2,744,823$ 1,488,105$ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Non Interest Total Non Developer
Project AB 1600 Expense AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue General Fund Expenditures Expenditures Coll ected Income Income Transfers Transfers Balance Balance Project Expended 2022-2023 Advance 2022-2023 2022-2023 2022 -2023 2022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Parks Development Fee (Fund 208/220)
Playhouse HVAC Upgrade 14,740 $ 14,740 $
Sam Yellen Park 1,233,363 1,233,363
Rancho Vista Park 130,275 130,275
Totals 1,378,378 $ - $ 119,600 $ 1,378,378 $ - $ 1,339,284 $ 103,256 $ - $ - $ - $ 7,400,512 $ 7,345,074 $ Note: Ending balance includes the following:

Advance due to General Fund of $5,000,000.
(Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Inco me Transfers Transfers Balance Balance Project Expended 2022-2023 2022-2023 2022-2023 2022-2023 2 022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Amargosa Drainage Fee (Fund 212/222)
Drainage Admin 57,900 $ 57,900 $
Amargosa Creek Upper Rechg 994 994
Totals 58,894 $ - $ 58,894 $ - $ 613,814 $ 2,485 $ - $ - $ - $ 709,902 $ 1,267,307 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
N
on Interest Total Non Developer
Project AB 1600 Expense AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Interfund Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2022-2023 Drainage 2022-2023 2022-2023 2022-2023 2022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Anaverde Drainage Fee (Fund 213/223)
Drainage Admin 6,000$ 6,000$
Amargosa Crk Upper Rechg Proj 192 192
6,192$ - $ 47,604$ 6,192$ -$ 54,961 $ 19,693$ - $ - $ -$ (3,297,211) $ (3,276,353)$ Note: Ending balance includes the following:

Loan payable due to Pearland Drainage Fund of $2,136,221. (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Non Interest Total Non Developer
Project AB 1600 Expense AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Interfund Expenditures Expenditures Collecte d Income Income Transfers Transfers Balance Balance Project Expended 2022-2023 Drainage 2022-2023 2022-2023 20 22-2023 2022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Portal Ridge Drainage Fee (Fund 214/224)
Drainage Admin 6,000 $ 6,000 $
6,000 $ - $ - $ 6,000 $ - $ 16,662 $ 558 $ - $ - $ - $ 95,824 $ 107,044 $ Note: Ending balance includes the following:

Due to General Fund of $18,476.
(Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Inco me Transfers Transfers Balance Balance Project Expended 2022-2023 2022-2023 2022-2023 2022-2023 2 022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Pearland Drainage Fee (Fund 215/225)
Drainage Admin 6,000 $ 6,000 $
6,000 $ - $ 6,000 $ - $ 712,452 $ 81,534 $ - $ - $ - $ 11,363,312 $ 12,151,298 $ Note: Ending balance includes loan receivable due from Anaverde Drainage Fund of $2,136,221 and $3,800,000 from the Sewer Maintenance Fund.

Note: There is no finding in the Pearland Fund, since the loan reduced the cash balance of the fund. (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Inco me Transfers Transfers Balance Balance Project Expended 2022-2023 2022-2023 2022-2023 2022-2023 2 022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Littlerock Drainage Fee (Fund 216/226)
Drainage Admin 6,000 $ 6,000 $
6,000 $ - $ 6,000 $ - $ - $ 447 $ - $ - $ - $ 53,876 $ 48,323 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
N
on Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2022-2023 2022-2023 2022-2023 2022-2023 2022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Fire Facilities Impact Fee (Fund 217/227)
City Admin Charges 25,794$ 25,794$
25,794$ - $ 25,794$ -$ 515,830$ 65,527$ - $ - $ - $ 8,088,817$ 8,644,380$ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Inco me Transfers Transfers Balance Balance Project Expended 2022-2023 2022-2023 2022-2023 2022-2023 2 022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Sewer Upgrade Impact Fee (Fund 225/228)
Sewer Upgrd-45th E/Ave R to S 3,162 $ 3,162 $
3,162 $ - $ 3,162 $ - $ - $ 3,837 $ - $ - $ - $ 481,420 $ 482,095 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Inco me Transfers Transfers Balance Balance Project Expended 2022-2023 2022-2023 2022-2023 2022-2023 2 022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Public Facilities Impact Fee (Fund 247/229)
Fire Supression Retrofitting 933 $ 933 $
Desert Sands Park Improvements 75,742 75,742
76,675 $ - $ 76,675 $ - $ 282,433 $ 12,233 $ - $ - $ - $ 1,474,178 $ 1,692,169 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2023
N
on Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2022-2023 2022-2023 2022-2023 2022-2023 2022-2023 2022-2023 In Out 7/1/2022 6/30/2023 Big Rock Drainage Impact Fee (Fund 230)
Drainage Admin 6,000$ 6,000$
Amargosa Creek Upper Rechg Proj 729 729
6,729$ - $ 6,729$ -$ -$ 99$ - $ - $ - $ 10,480$ 3,850$ (Unaudited)
City Council Staff Report
DATE: MAY 1, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2024-047, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE APPROVING THE

APPLICATION FOR LOCAL STREETS AND ROADS FUNDS
AUTHORIZED UNDER ARTICLE 8 OF THE TRANSPORTATION

DEVELOPMENT ACT

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt Resolution No. CC 2024-047 approving the application for Local Streets and Roads Funds authorized under Article 8 of the Transportation Development; and,

2. Authorize the Director of Public Works as the City’s authorized signer and designated contact person for allocation of Transportation Development Act (TDA) funds for street and road improvements.

BACKGROUND
Transportation Development Act (TDA) Article 8 funds are intended to fund unmet transit needs in areas outside the Los Angeles County Metropolitan Transportation Authority (Metro) service area, i.e., North Los Angeles County and Santa Catalina Island.

However, if there are no unmet transit needs in these areas that are reasonable to meet, the Article 8 funds can be used for street and road expenditures.

DISCUSSION
A public hearing must be held each year in each eligible area to determine whether unmet transit needs can be met using an allocation of Article 8 funds. Since the City of Palmdale has met its unmet public transportation needs through an agreement with Antelope Valley Transit Authority (AVTA) to provide public transportation in the City of Palmdale, TDA funds will be allocated for minor street and road improvements.

Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2024-047
May 1, 2024

Page 2 ends

Article 8 claims are filed by the Cities of Avalon, Lancaster, Palmdale, Santa Clarita, and the County (for the unincorporated area in the North Los Angeles County and Santa Catalina Island outside the Metro service area). When utilizing Article 8 monies for Local Streets and Roads purposes, the State Controller’s Guidelines on Gas Tax Expenditures (Sections 100-400) are used as general guidance for eligible use of funds.

Metro adopted the FY 2023-24 TDA Article 8 allocations on June 22, 2023. To claim and receive funds, the City must submit the claim forms and approved Resolution no later than June 30, 2024. Staff recommends that the City Council approve Resolution No. CC 2024-047 approving the application for Local Streets and Roads Funds authorized under Article 8 of the Transportation Development.

FISCAL IMPACT
$10,395,000; Annual allocation of TDA Article 8 revenue for FY 2023-24 is budgeted and will be used for Street Maintenance and Traffic Signal Operations, GIS Operations, and local streets and roads projects. To ensure that TDA funds are spent in a timely manner and that interest earned on these funds are accrued, allocated, and expended consistently with the original allocations, local jurisdictions can claim, each year, only the funds needed for expenditures anticipated within the fiscal year.

Los Angeles County Metropolitan Authority (LACMTA) has a policy that all allocation funds claimed and received must be spent or encumbered through August each year.

Any unencumbered funds remaining in local jurisdictions' accounts on June 30 of the fiscal year must be returned to Metro for placement on reserve and future drawdown by the jurisdiction.

The following expenditures are budgeted or will be encumbered for FY 2023-2024:

ACCOUNT PROJECT TDA 8 ALLOCATION

NUMBER DESCRIPTION AMOUNT
20732003 Traffic Signal Maintenance $2,268,292
20732004 Traffic Engineering $636,879
20733001 Street Maintenance Operations $4,121,700
20716001 GIS Operations $142,009
2071500 Operating Expenditures - Transfers $90,000
S0025207 Arterial Road Rehabilitation $2,486,234
S0058207 Ave R Complete Streets $624,580
S0062207 County Payment Program – FY 2024 $25,306
TOTAL ESTIMATED EXPENDITURES/ENCUMBRANCES $10,395,000
Street Resurfacing Program – reserved for FY 2025 $1,141,136 TOTAL TDA ARTICLE 8 ALLOCATION FY 2024 $11,536,136
Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2024-047
May 1, 2024

Page 3 ends

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

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

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

ATTACHMENTS
Reso. No. CC 2024-047
Atch 1 TDA Claim Forms FY 2024

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-047

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

PALMDALE, CALIFORNIA, APPROVING THE APPLICATION FOR

LOCAL STREETS AND ROADS FUNDS AUTHORIZED UNDER ARTICLE
8 OF THE TRANSPORTATION DEVELOPMENT ACT
WHEREAS, Article 8 of the Transportation Development Act provides that cities can use eligible funds of the County’s Local Transportation Fund for local streets and road expenditures when the City’s unmet transportation needs have been satisfied; and WHEREAS, the City of Palmdale has met its unmet public transportation needs through an agreement with Antelope Valley Transit Authority to provide public transportation in the City of Palmdale; and
WHEREAS, the City of Palmdale desires to use its portion of its allocation of Transportation Development Act funds for street and road improvements.

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

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

SECTION 1 . To authorize the Director of Public Works as the City’s authorized signer and designated contact person.

SECTION 2. To apply for all funds available to the City of Palmdale allocated for street and road improvements.

Resolution No. CC 2024-047

Page 2 of 2 ends

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

PASSED, APPROVED and ADOPTED this 1st day of May , 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 1st day of May , 2024 by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, City Clerk

LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY FY 2023-24 TDA ARTICLE 8 (PUC 99400) CLAIM FORM
PART I
Joyce Workman, Sr. Management Analyst

CONTACT PERSON
City of Palmdale

CLAIMANT/PAYMENT RECIPIENT

ADDRESS
38300 Sierra Highway
Palmdale, CA 93550
Finance Department

SEND CHECK ATTENTION TO

PART II
Janelle Samson
(NAME AND TITLE)
REQUEST FOR DISBURSEMENT AND RESERVES:

Disbursement from FY 2023-24 Allocation
Disbursement from Prior-Year Reserves

TOTAL DISBURSEMENT REQUESTED
Reserve for Future Disbursement
661-267 -5423
PHONE
AMOUNT
$ 11 36
$ -0-
$ 11 536 136
$ -0-
CONDITION OF APPROVAL: Approval of
this claim and payment by the County
Auditor to this claimant are subject to monies
being available and to the provisions that
such monies will be used only in accordance
with the terms and conditions set forth by this
claim and Metro allocation instructions.

AUTHORIZED SIGNATURE
Lynn Glidden, P.E., Director of Public Works
Print Name and Title
4/15/2024
Date
TDA Article 8 Claim and Guidelines
FY2023-24

Page 11 ends

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AMENDMENT REQUEST AND YEAR-END RESERVE FORM *
CONTACT PERSON: PHONE:

CLAIMANT/DISBURSEMENT RECIPIENT:

ADDRESS:

AMENDMENT REQUEST:

The (agency's name) __ _______ _ ____ wishes to amend its Transportation Development Act, Article 8 Program in the following manner:
_ Reallocate $______ of FY TDA Article 8 funds from the _ project(s) to the __ __ _ __ _ __ ___ _ __ roject(s). Project information form is attached for the new project(s).
_ Reallocate$ __ of unexpended carryover funds from all previous project(s) to the __________ project(s). Project information form is attached for the new project( s ).

Revise the _ ____ _ _ __ __ project description, cost, or limits as shown on the attached project information form.
*
Other: ------------------------------
Use this form: 1) to amend a claim submitted earlier in the current fiscal year, and/or 2) to return unused funds at the end of the fiscal year.

TOA Article 8 Claim and Guidelines
FY2023-24

Page 6 ends

City Council Staff Report
DATE: MAY 1, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 1
SUBJECT: AWARD CONSTRUCTION AGREEMENT WIT H COMET ELECTRIC, INC. FOR PN 867/868, TRAFFIC SIGNAL MODIFICATION AT
AVENUE M AND 20TH STREET EAST AND 30TH STREET EAST, FOR A NOT TO EXCEED AMOUNT OF $1,308,129 FOR A TERM OF 75

WORKING DAYS FROM THE DATE OF THE NOTICE TO PROCEED

RECOMMENDATION
Staff recommends that the City Council:

1. Approve Construction Agreement No. A -8705 to Comet Electric, Inc . for PN 867/868 Traffic Signal Modification at Avenue M and 20th and 30th Street East, for a not to exceed amount of $1,308,129, which includes a contract amount of $1,189,208, plus a 10% contingency amount of $118,921; and,

2. Authorize the City Manager or her designee to execute Agreement No. A-8705 with Comet Electric, Inc., including minimal and/or non-substantial changes.

BACKGROUND
Project No. 867/868 will modify two existing traffic signals along Avenue M at 20th East and 30th East to incorporate left turn phasing and yellow retroreflective backplates. Along with upgrading the existing signals, the road will be widened at 20th Street East to add a southbound left turn lane.

Report to Mayor and City Council
Re: Award of PN 867/868, Agreement No. A-8705
May 1, 2024

Page 2 ends

DISCUSSION
On February 15, 2024, the project was advertised electronically through Planet Bids with fifteen (15) vendors registered as prime contractors. On March 28, 2024, five (5) bids for this project were received, summarized, and listed below:

Bidder Location Amount

1. Comet Electric, Inc. Chatsworth, CA $1,189,208

2. POLO Engineering, Inc. Castaic, CA $1,383,075

3. Elecnor Belco Electric, Inc. Chino, CA $1,422,569

4. Baker Electric, Inc. Escondido, CA $1,489,167

5. Crosstown Electrical & Data, Inc. Irwindale, CA $1,619,996 Comet Electric, Inc. was found to be the lowest responsible and responsive bidder. Comet Electric, Inc. has provided services for the City on other capital improvement projects, and their quality of work is good.

FISCAL IMPACT
$1,308,129; Includes a contract amount of $1,189,208, plus a 10% contingency amount of $118,921. This project is funded using Measure M Local Return funds in Account No.

T0127219-724525. Total project costs are summarized as follows:

Council Action Cost

1. Agreement No. A-8705 for Construction – Comet Electric Inc $1,189,208

2. Construction Contingency Amount (10%) $118,921
Construction Total $1,308,129
Total Project Budget Summary Cost
Construction (Items 1-2) $1,308,129
Construction Labor Compliance $10,000
Administration $7,000
Total Project Cost $1,325,129
Account Number Available Budget
Total Total Project Costs Remaining
Balance
T0127219 $1,520,716 $1,325,129 $195,587
Report to Mayor and City Council
Re: Award of PN 867/868, Agreement No. A-8705
May 1, 2024

Page 3 ends

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

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

ATTACHMENTS
Agrmt No. A-8705 with Comet Electric, Inc.

Atch A Site Map Ave M and 20th St East
Atch B Site Map Ave M and 30th St East
AGREEMENT NO. A- 8705

CONSTRUCTION CONTRACT

BETWEEN THE CITY OF PALMDALE AND COMET ELECTRIC INC

THIS CONTRACT (“Contract”) is made and entered into by and between City of Palmdale, a public entity ("City"), and COMET ELECTRIC INC, a Contractor ("Contractor"). Contractor and City are collectively referred to herein as the “parties.” This Contract shall become effective on the date of the last signatory. 1 Scope of Work
Contractor shall complete the Project in accordance with this Contract. Contractor shall furnish all materials and perform all work required for the completion of the following Project:

This project has an erosion control plan / SWPPP preparation and implementation; earthwork; street; street improvements including mill and overlay, leveling courses, and street widening; street drainage improvement, and furnishment and installation of all appurtenances; utility coordination; utility adjustments and improvements; and signing and striping improvements. Widen the road to add a southbound left-turn lane with 250 feet left turn lane. Traffic signal modification to add left-turn phasing.

Removal of existing poles and installing new poles, new conduits, detector loops, wiring, and new traffic control cabinet. Restriping all the roadways. Install ramps at 5 locations to fit existing conditions and right of way. 2 Standard Specifications
Standard Specifications for City projects are those contained in the 2021 Greenbook edition of the "Standard Specifications for Public Works Construction" (the "Greenbook"). Except as otherwise expressly provided herein, the Standard Specifications shall control the general provisions, construction materials, and construction methods for this Contract (except as amended by the Plans for the Project), the General Specifications for the Project, the Special Provisions for the Project, any technical specifications for the Project, and any other contract documents.
3 Compensation
City shall pay Contractor the total, all-inclusive, NOT-TO-EXCEED amount of One Million One Hundred Eighty-Nine Thousand Two Hundred Eight Dollars ($1189208.00) for the construction of the Project. This amount shall cover all expenses for labor, materials, and any and all other costs incurred by Contractor to satisfactorily construct the Project. Unless otherwise provided in the bid documents or agreed upon by the parties, Contractor shall submit detailed, monthly invoices for work actually performed.

1-13Concord - Document ID: generated after first signature 4 Completion Date

The construction of the Project shall commence upon Contractor being given a written notice to proceed, and shall be completed within 75 working days of said notice.

5 Payment and Performance Bonds; Guaranty

Unless otherwise expressly provided in the bid documents, prior to commencing work, Contractor shall provide a payment bond and performance bond, each in an amount equal to 100% of the Contract price. The bond forms required to be executed are attached hereto and incorporated by reference herein. Pursuant to the bid documents for this Project, the Contractor is required to provide a written guaranty of Contractor’s work. In furtherance thereof, Contractor shall execute the written form of Guaranty attached hereto and incorporated by reference herein.

6 Licenses

At all times during the term of this Contract, Contractor shall possess a valid and current Class A Contractor's License [or Specialty Contractor License consisting of Class A license] to perform the required work (“Work”). Contractor’s DIR registration number is 1000005203. Contractor hereby certifies that it holds the required license(s).

7 Subcontracting

Subject to any self-performance requirements herein, Contractor may subcontract any portion of the work required by this Contract to other persons or firms, and Contractor submitted with its bid a list of those subcontractors who will perform work in an amount in excess of one-half of one percent (1%) of the Contractor’s total bid, in compliance with the Subletting and Subcontracting Fair Practices Act, California Public Contract Code § 4100, et seq. Only such listed subcontractors may perform on this Project.

8 Non-Assignability

Neither this Contract nor any rights, title, interest, duties or obligations under this Contract may be assigned, transferred, conveyed or otherwise disposed of by Contractor without the prior written consent of City.

9 Administration

2-13Concord - Document ID: generated after first signature This Contract will be administered by the Public Works Department of the City. The Director of Public Works or his or her designee shall be considered the Project Administrator and shall have the authority to act for the City under this Contract.

10 Indemnification

To the maximum extent permitted by law, Contractor shall indemnify, protect, defend and hold harmless the City, its Board of Director, the City's officers, employees, agents, volunteers, and representatives (“Indemnitees”) with respect to any and all claims, suits, actions, stop notices, liabilities and/or damages, including related expenses, attorney's fees and costs, based on, arising out of, or in any way related to the work undertaken by Contractor pursuant to this Contract, and in connection with the Project.

11 Liability Insurance

11.1 Without limiting Contractor's indemnification of City, as described in paragraph 10, and unless modified by City, Contractor shall obtain, provide and maintain, at its own expense, during the term of this Contract, a policy or policies of insurance, satisfactory to the City, from insurance carriers admitted to do business in the State of California and rated in A.M. Best’s Insurance Guide with a rating of A:VII or better, which contain the coverage described below.

11.1.1 Commercial General Liability
 $5,000,000.00 limit on a per occurrence basis
 $10,000,000.00 general aggregate limit

11.1.2 Commercial Automobile Liability
 $5,000,000.00 combined single limit including owned, non-owned and hired automobile coverage

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

11.1.4 Pollution/Environmental Liability*
 $2,000,000.00 limit on a per occurrence basis

11.1.4 Professional Liability (Errors & Omissions)*
 $2,000,000.00 limit on a per occurrence basis

11.1.4 Cyber Liability*
 $2,000,000.00 limit on a per occurrence basis
3-13Concord - Document ID: generated after first signature

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

A. An endorsement extending coverage to the City as an additional insured, as respects liability arising out of the performance of any work under the Contract.

Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder.

The certificates shall state: “The City of Palmdale, Successor Agency to the Community Redevelopment Agency of the City of Palmdale, Palmdale Civic Authority, Housing Authority, Industrial Development Authority, Airport Authority, their officers, agents, employees and volunteers are named as additional insured”.

B. “Severability of Interest” Clause.

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

11.4 Said Certificates of Insurance shall provide that thirty (30) days’ prior written notice of cancellation shall be given to the City in the event of cancellation and/or reduction in coverage of any nature.

11.5 The required policies of insurance shall be endorsed to waive all rights of subrogation. Contractors waives all rights of subrogation.

11.6 Acceptable Proof of Insurance:

A. ACORD Certificate of Insurance listing all coverage, limits, deductibles and insured; and endorsements for all applicable coverage if agent has authority to issue it; or additional insured Form CG20100704 and CG20370704 or equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage.

B. Binders of insurance for all coverage. Agents must confirm that policy endorsements have been ordered from the respective insurance companies.

Upon issuance, policy endorsements and a corresponding Certificate of Insurance listing all insurers and coverage must be submitted to the City Attorney.

C. *When professional/errors & omissions, pollution/environmental and/or cyber liability coverage is provided on a “claims made basis”, CONTRACTOR will continue to renew the insurance for a period of five (5) years after this 4-13Concord - Document ID: generated after first signature Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONTRACTOR, or its officers, employees, or agents during the time this Agreement was in effect.

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

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

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

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

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

12.1 This Contract calls for work to be performed constituting public works.

Contractor and all subcontractors shall pay the general prevailing rate of per diem wages as determined and as published by the State Director of the Department of Industrial Relations pursuant to Article 2 of Chapter 1 of Part 7, of Division 2 of the State Labor Code, including, but not limited to, Sections 1770, 1771, 1773, 1773.2 and 1774.

12.2 This is a public work and requires the payment of prevailing wages for the work or craft in which the worker is employed for any public work done under the contract by Contractor or by any subcontractor pursuant to Section 1771 of the Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of California, the City has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this contract from the Director of 5-13Concord - Document ID: generated after first signature the Department of Industrial Relations. These rates are on file with the City or may be obtained at http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm.

Contractor shall post a copy of such wage rates at the job site and shall pay the adopted prevailing wage rates as a minimum. Contractor shall comply with the provisions of Sections 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code. Pursuant to the provisions of 1775 of the Labor Code, Contractor shall forfeit to the City, as a penalty, not more than $200.00 for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work done under this Contract, by him or by any subcontractor under him, in violation of the provisions of this Agreement.

12.3 Contractors and subcontractors who are ineligible to bid for work on, or be awarded, a public works project pursuant to Labor Code Sections 1777.1 and 1777.7 are prohibited from bidding on, being awarded, or performing work as a subcontractor, on this Project pursuant to Public Contract Code Section 6109.

12.4 Contractor's attention is directed to the provisions in Sections 1774, 1775, 1776, 1777.5 and 1777.6 of the Labor Code. Contractor shall comply with the provisions in these Sections. The statutory provisions for penalties for failure to comply with the State's wage and hours laws will be enforced. Pursuant to Section 1775 of the Labor Code, the Contractor and any subcontractors, shall, as a penalty to the City forfeit the prescribed amounts per calendar day, or portion thereof, for each worker paid less than the prevailing wage rates.

12.5 Pursuant to Labor Code Section 1771.4, the Project is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.

12.6 Each Contractor and subcontractor shall furnish the records specified in Labor Code Section 1776 directly to the State Labor Commissioner at least monthly in the format prescribed by the State Labor Commissioner.

12.7 Sections 1774 and 1775 require the Contractor and all subcontractors to pay not less than the prevailing wage rates to all workmen employed in the execution of the Contract and specify forfeitures and penalties for failure to do so. The minimum wages to be paid are those determined by the State Director of the Department of Industrial Relations. Section 1776 requires the Contractor and all subcontractors to keep accurate payroll records, specifies the contents thereof, their inspection and duplication procedures and certain notices required of the Contractor pertaining to their location.

12.8 Section 1777.5 of the Labor Code requires Contractor or subcontractor employing workers in any apprenticeable occupation to apply to the Joint Apprenticeship Committee nearest the site of the public works project, which administers the apprenticeship program in that trade for a certificate of approval. The 6-13Concord - Document ID: generated after first signature certificate will also fix the ratio of apprentices to journeymen to be used in the performance of the Contract. The Contractor is required to make contributions to funds established for the administration of apprenticeship programs if he employs registered apprentices or journeymen in any apprenticeable trade and if other contractors on the public works site are making such contributions. Information relative to apprenticeship standards, contributions, wage schedules and other requirements may be obtained from the State Director of Industrial Relations or from the Division of Apprenticeship Standards. Section 1777.6 of the Labor Code provides that it shall be unlawful to refuse to accept otherwise qualified employees as registered apprentices solely on the grounds of race, religious creed, color, national origin, ancestry, sex, or age.

12.9 Eight hours labor constitutes a legal day's work, as set forth in Labor Code Section 1810. The statutory provisions for penalties for failure to comply with the State's wage and hour laws will be enforced as set forth in Labor Code Section 1813. 13 Antitrust Claims
In entering into this Agreement, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the California Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the Agreement. This assignment shall be made and become effective at the time the City tenders final payment to Contractor without further acknowledgment by the parties.
14 Trenching and Excavations
Pursuant to Public Contract Code Section 7104, if the Project involves trenching more than four (4) feet deep, Contractor shall promptly and before the following conditions are disturbed notify the City in writing of any:

14.1 Material that Contractor believes may be material that is hazardous waste, as defined in California Health and Safety Code Section 25117, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; and/or

14.2 Subsurface or latent physical conditions at the site differing from those indicated; and/or

14.3 Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract.

7-13Concord - Document ID: generated after first signature

14.4 As required by Labor Code Section 6705 and in addition thereto, whenever work under the Contract that involves an estimated expenditure in excess of twenty- five thousand dollars ($25,000) for the excavation of any trench or trenches five (5) feet or more in depth, Contractor shall submit for acceptance by City in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation, of such trench or trenches. If such plan varies from the shoring system standards established by the Construction Safety Orders of the Division of Industrial Safety, the plan shall be prepared by a registered civil or structural engineer employed by Contractor, and all costs therefor shall be included in the price of the Contract. Nothing in this provision shall be deemed to allow the use of a shoring, sloping, or other protective system less effective than that required by the Construction Safety Orders. Nothing in this provision shall be construed to impose tort liability on the City or on any City officer, agent, consultant, representative, or employee. All plans, processing and shoring costs are Contractor’s responsibility and must be included in Contractor’s bid.

15 Location of Existing Elements
Pursuant to Government Code Sections 4216 to 4216.9, the methods used and costs involved to locate existing elements, points of connection and all construction methods are Contractor’s sole responsibility. Accuracy of information furnished, as to existing conditions, is not guaranteed. Contractor, at its sole expense, must make all investigations necessary to determine locations of existing elements, which may include, without limitation, contacting U.S.A. alert and other private underground locating firm(s), and/or utilizing potholes, specialized locating equipment and/or hand trenching.
16 Third Party Claims
Pursuant to Public Contract Code Section 9201, the City has full authority to compromise or otherwise settle any claim relating to this Contract at any time. The City shall timely notify Contractor of the receipt of any third-party claim relating to the Contract. The City shall be entitled to recover its reasonable costs incurred in providing the notification required by Public Contract Code Section 9201(b). 17 Non-Collusion
Contractor hereby certifies that this bid is genuine and not a sham or collusive, or made in the interest or on behalf of any person or business not herein named. Contractor further certifies that Contractor has not directly or indirectly induced or solicited any other bidder to furnish a sham bid, or any other person or business to refrain from bidding, and Contractor has not in any manner sought by collusion to secure itself an advantage over any other bidder. Contractor also affirms that it has signed and submitted with its bid to the City a Non-collusion Declaration as required by Public Contract Code Section 7106.
8-13Concord - Document ID: generated after first signature 18 Conflicts of Interest
Contractor agrees not to accept any employment or representation during the term of this Contract or within twelve (12) months after completion of the work under this Contract which is or may likely make Contractor “financially interested,” as provided in Government Code Section 1090 and 87100, in any decisions made by City on any matter in connection with which Contractor has been retained pursuant to this Contract.
19 Audit
The City or its representative shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its billings to the City as a condition precedent to any payment to Contractor. Contractor will promptly furnish documents requested by the City. Additionally, pursuant to Government Code Section 8546.7, if this Contract involves the expenditure of public funds in excess of ten thousand dollars ($10,000), Contractor shall be subject to State Auditor examination and audit at the request of the City or as part of any audit of the City, for a period of three (3) years after final payment under this Contract. 20 Substitute Security
Pursuant to Public Contract Code Section 22300, the substitution of securities for any moneys withheld by the City to ensure performance under a contract is permitted, except where financing will be provided by the Farmers Home Administration of the United States Department of Agriculture pursuant to the Consolidated Farm and Rural Development Act (7 U.S.C. Sec. 1921 et seq.) or where federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in the State of California as the escrow agent, that shall then pay those moneys to Contractor. Upon satisfactory completion of the Contract, the securities shall be returned to Contractor.

Alternatively, Contractor may request and the City shall make payment of retentions earned directly to the escrow agent at the expense of Contractor. At the expense of Contractor, Contractor may direct the investment of the payments into securities, and Contractor shall receive the interest earned on the investments upon the same terms provided for securities deposited by Contractor. Upon satisfactory completion of the Contract, Contractor shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from the City, pursuant to the terms of this section.

Securities eligible for investment shall include those listed in California Government Code Section 16430, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security to which Contractor and the City agree in writing. Contractor shall be the beneficial owner of 9-13Concord - Document ID: generated after first signature any securities substituted for moneys withheld and shall receive any interest thereon.

If Contractor elects to receive interest on moneys withheld in retention by the City, it shall, at the request of any subcontractor performing more than five percent (5%) of Contractor’s total bid, make that option available to the subcontractor regarding any moneys withheld in retention by Contractor from the subcontractor. If Contractor elects to receive interest on any moneys withheld in retention by the City, then the subcontractor shall receive the identical rate of interest received by Contractor on any retention moneys withheld from the subcontractor by Contractor, less any actual pro rata costs associated with administering and calculating that interest. In the event that the interest rate is a fluctuating rate, the rate for the subcontractor shall be determined by calculating the interest rate paid during the time that retentions were withheld from the subcontractor. If Contractor elects to substitute securities in lieu of retention, then, by mutual consent of Contractor and its subcontractor, the subcontractor may substitute securities in exchange for the release of moneys held in retention by Contractor. No Contractor shall require any subcontractor to waive any provision of this paragraph.

The escrow agreement for security deposits in lieu of retention shall be substantially similar to the form provided in Public Contract Code Section 22300(f). 21 Claims Dispute Resolution
In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of Work, but shall proceed with the performance of the Work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The Disputed Work will be categorized as an “unresolved dispute” and payment, if any, shall be as later determined by mutual agreement or a court of law. The Contractor shall keep accurate, detailed records of all Disputed Work, claims and other disputed matters.

All claims arising out of or related to the Contract documents or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims. All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Contract hereby incorporates those provisions as though fully set forth herein. Thus, the Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 9204 and Article 1.5 (if applicable), and must then adhere to Section 9204 and Article 1.5 (as applicable), pursuant to the definition of “claim” as individually defined therein. 22 Non-discrimination and Equal Employment Opportunity 10-13Concord - Document ID: generated after first signature

22.1 In performance of this Contract, CONTRACTOR shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status.

CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status . Affirmative action relating to employment shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.

22.2 The provisions of subsection 16.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONTRACTOR for personnel to perform any services under this Contract. CITY shall have access to all documents, data and records of CONTRACTOR and its subcontractors for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order No. 11246 is available for inspection at, and on file with, the Palmdale City Clerk’s Office. 23 Integration
This Contract supersedes any and all agreements, either oral or written, between the parties hereto with respect to the construction of the Project by Contractor for City and contains all of the covenants and agreements between the parties with respect to the construction of the Project. Each party to this Contract acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made with regard to the construction of the Project by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise regarding work not contained in this Contract shall be valid or binding. Any modification or amendment of this Contract will be effective only if it is in writing and signed by the parties to this Contract. Any changes to the work required by this Contract will be by change order signed by the parties. 24 Governing Law
This Contract will be governed by and construed in accordance with the laws of the State of California without reference to change of venue laws. Any legal action in which enforcement of the terms and conditions of this Contract is requested, or in 11-13Concord - Document ID: generated after first signature which it is alleged that a breach of this Contract has taken place, shall be filed and prosecuted in the County of Los Angeles, California.
25 Successors and Assigns
The terms and conditions of this Contract shall be binding on the successors and assigns of the parties to this Contract.
26 Exhibits
The exhibits and attachments referenced in this Contract are attached hereto and incorporated herein by this reference as though set forth in full in the Contract. 27 Authority to Sign
The person or persons executing this Contract on behalf of the Contractor warrant and represent that they have the authority to execute this Contract on behalf of the Contractor and have the authority to bind Contractor to the construction of the Project.
28 Time is of the Essence
Time is of the essence in every provision of this Agreement in which time to perform is a factor.

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

12-13Concord - Document ID: generated after first signature

CITY OF PALMDALE COMET ELECTRIC INC

Ronda Perez Date
City Manager

Adam Saitman Date
President

ADDRESS FOR NOTICE:

CITY OF PALMDALE
38300 Sierra Hwy, Suite A
Palmdale, CA 93550

ADDRESS FOR NOTICE:

COMET ELECTRIC INC
21625 Prairie St
Chatsworth, California 91311
APPROVE AS TO FORM:

William P. Curley, III
City Attorney

ATTEST:

Roxanne Faber
City Clerk
ATTEST: If Corporation

Secretary

[Signatures of contractor on bond(s) must be notarized. Obtain two corporate signatures if contractor is a corporation.]

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

□Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) □Attached notarized bond(s), Worker's Compensation Certificate, and Guaranty □Attached Agreement Checklist and met all requirements

13-13Concord - Document ID: generated after first signature Atch A
Ave M and 20th St East

Atch B
Ave M and 30th St East
City Council Staff Report
DATE: MAY 1, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

ENGINEERING DIVISION
DISTRICT: 1, 2
SUBJECT: ADOPT RESOLUTION NO. CC 2024-032, A RESOLUTION OF THE

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

CONTINUATION OF THE ANNUAL LEVY OF ASSESSMENTS AND

DESIGNATING THE ENGINEER OF WORK FOR FISCAL YEAR
2024-2025 FOR THE CITY OF PALMDALE DRAINAGE BE NEFIT
ASSESSMENT DISTRICTS NO. 1 AND NO. 2006-02

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt Resolution No. CC 2024-032, directing the preparation of the annual Engineer’s Report for the continuation of the annual levy of assessments and designating the Engineer of Work for the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02; and,

2. Authorize the Mayor to execute Resolution No. 2024 -032, directing the preparation of the annual Engineer’s Report for the continuation of the annual levy of assessments and designating the Engineer of Work for the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02.

BACKGROUND
The Anaverde (Drainage Benefit Assessment District No. 1, formed in 2004) and Ritter Ranch (Drainage Benefit Assessment District No. 2006 -02, formed in 2007) developments required the formation of a Drainage Benefit Assessment District (DBAD) as a condition of approval to provide the funds to maintain the drainage facilities for the developments. As a result, the formation of DBAD No. 1 and No. 2006-02 was approved by the property owners on May 12, 2004, and January 3, 2007, respectively, pursuant to mailed ballot elections conducted in accordance with Article XIII D of the California Constitution.

Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2024-032
May 1, 2024

Page 2 ends

The purpose of the DBAD is to fund the installation, construction, or maintenance of any authorized improvements under the Benefit Assessment Act of 1982 (California Government Code Section 54703 et seq.), including, but not limited to, drainage improvements and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.

DISCUSSION
Resolution No. CC 2024-032 designates NBS as the Engineer of Work and prepares the annual Engineer’s Report for Fiscal Year 2024-2025 for the City of Palmdale DBAD No. 1 and No. 2006-02.

Each year, for the City to continue to levy annual assessments within the DBAD No. 1 and No. 2006-02, the City must have a detailed Engineer’s Report approved by the City Council. The attached resolution, ordering the preparation of the combined annual Engineer’s Report, initiates the proceedings for the annual levy of assessments for the DBAD No. 1 and No. 2006-02 for Fiscal Year 2024-2025.

The annual Engineer’s Report will be presented to the City Council on June 5, 2024. A public hearing will be held on July 10, 2024, to accept public testimony regarding the annual report and authorize the levy of assessments for Fiscal Year 2024-2025.

FISCAL IMPACT
Levy amounts will be included with the Engineer’s Report presented at the June 5, 2024, City Council meeting.

Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2024-032
May 1, 2024

Page 3 ends

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

A. Seek innovative, cost-effective, customer-focused methods of service delivery.

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

ATTACHMENTS
Reso. No. CC 2024-032

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-032

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

FOR THE CONTINUATION OF THE ANNUAL LEVY OF ASSESSMENTS

AND DESIGNATING THE ENGINEER OF WORK FOR FISCAL YEAR
2024-2025 FOR THE DRAINAGE BENEFIT ASSESSMENT DISTRICTS NO. 1, AND NO. 2006-02
WHEREAS, the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02 (the “Assessment Districts” or “Districts”) were approved by property owners pursuant to mailed ballot elections conducted in accordance with Article XIII D of the California Constitution, and the “Benefit Assessment Act of 1982” (the “Act”), being Chapter 6.4 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (commencing with Section 54703 thereof).

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

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

SECTION 1. The City Council hereby proposes to continue to levy and collect annual assessments against the lots and parcels of land within the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02 to pay for the costs and expenses of the improvements described in Section 3 below, for the fiscal year commencing July 1, 2024, and ending June 30, 2025, pursuant to the Act, and as provided by Article XIII D of the California Constitution.

SECTION 2. The purpose of the Assessment Districts is for the installation, maintenance, and servicing of public improvements, as described in Section 3 below.

SECTION 3. Within the Assessment Districts, the existing and proposed improvements to be undertaken may be briefly described as follows: the installation, construction, or maintenance of any authorized improvements under the Act, including, but not limited to, drainage improvements and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.

Resolution No. CC 2024-032

Page 2 of 2 ends

SECTION 4. NBS is hereby designated as Engineer of Work for purposes of these proceedings and is hereby ordered to prepare an Engineer’s Report in accordance with Article 4 of Chapter 6.4 of the Act and Article XIII D of the California Constitution. Upon completion, the Engineer of Work shall file the Engineer’s Report with the City Clerk for submission to the City Council.

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

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

PASSED, APPROVED, and ADOPTED this 1st day of May, 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 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 1st day of May 2024 by the following roll call vote:

AYES: ___________________________________________________________ NOES: ___________________________________________________________ ABSTAIN: ______________________ABSENT:___________________________ Date: ______________________________ _____________________________ Rochelle Scott, City Clerk
City Council Staff Report
DATE: MAY 1, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

ENGINEERING DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2024-035, A RESOLUTION OF THE

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

THE CONTINUATION OF THE ANNUAL LEVY OF ASSESSMENTS

AND DESIGNATING THE ENGINEER OF WORK FOR FISCAL YEAR
2024-2025 FOR THE CITY OF PALMDALE LANDSCAPE

MAINTENANCE ASSESSMENT DISTRICTS AND ANNEXATIONS ,

PARK MAINTENANCE AND RECREATION IMPROVEMENT

DISTRICT, AND STREETLIGHT MAINTENANCE ASSESSMENT

DISTRICTS AND ANNEXATIONS

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt Resolution No. CC 2024-035, directing the preparation of the annual Engineer’s Report s for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations , Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations; and,

2. Authorize the Mayor to execute Resolution No. CC 2024 -035, directing the preparation of the annual Engineer’s Reports for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations , Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations.

BACKGROUND
The City ’s Landscape Maintenance Assessment Districts and Annexations , Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations were approved by property owners pursuant to Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2024-035
May 1, 2024

Page 2 ends

several mailed ballot elections conducted in accordance with Article XIII D of the California Constitution and the Landscaping and Lighting Act of 1972 (the "Act"), Part 2 of Division 15 of the California Streets and Highways Code (commencing with Section 22500 thereof).

The purpose of the Landscape Maintenance Assessment Districts and Annexations is to fund the installation, maintenance, and servicing of ornamental structures, landscaping, including trees, shrubs, grass and other ornamental vegetation, and appurtenant facilities, including irrigation systems, drainage devices, and dry wells located in public places within the boundaries of the Landscape Maintenance Assessment Districts and Annexations.

The purpose of the Park Maintenance and Recreation Improvement District is to fund the installation, maintenance, and servicing of public parks and recreational facilities throughout the City.

The purpose of the Streetlight Maintenance Assessment Districts and Annexations is to fund the installation, maintenance, and servicing of any authorized improvements under the Act, including, but not limited to, streetlight, traffic signal, and highway safety light improvements, and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.

DISCUSSION
Resolution No. CC 2024-035 designates NBS as the Engineer of Work and directs the preparation of the annual Engineer’s Reports for Fiscal Year 2024-2025 for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations.

Each year, the Landscaping and Lighting Act of 1972 requires that to continue the annual levy of assessments, the Landscape Maintenance Assessment Districts and Annexations, Park Maintenance, and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations have a detailed Engineer’s Report approved by the City Council. The attached resolution, ordering the preparation of the annual Engineer’s Reports, initiates the proceedings for the annual levy of assessments for the Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations for Fiscal Year 2024-2025.

The annual Engineer’s Reports will be presented to the City Council on June 5, 2024. A public hearing will be held on July 10, 2024, to accept public testimony regarding the combined annual Engineer’s Report and levy of assessments for Fiscal Year 2024- 2025.

Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2024-035
May 1, 2024

Page 3 ends

FISCAL IMPACT
Levy amounts will be included with the combined annual Engineer’s Reports presented at the June 5, 2024, City Council meeting.

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

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

ATTACHMENTS
Reso. No. CC 2024-035

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-035

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

FOR THE CONTINUATION OF THE ANNUAL LEVY OF ASSESSMENTS

AND DESIGNATING THE ENGINEER OF WORK FOR FISCAL YEAR
2024-2025 FOR THE CITY OF PALMDALE LANDSCAPE

MAINTENANCE ASSESSMENT DISTRICTS AND ANNEXATIONS,

PARK MAINTENANCE AND RECREATION IMPROVEMENT DISTRICT,

AND STREETLIGHT MAINTENANCE ASSESSMENT DISTRICTS AND

ANNEXATIONS
WHEREAS, the City of Palmdale Landscape Maintenance Assessment Districts and Annexations (the “Landscape Assessment Districts”), Park Maintenance and Recreation Improvement District (the “Park District”), and Streetlight Maintenance Assessment Districts and Annexations (the “Streetlight Assessment Districts”, or all together, the Landscape Assessment Districts, Park District, and Streetlight Assessment Districts may be referred to as the “Districts”) were approved by property owners pursuant to several mailed ballot elections conducted in accordance with Article XIII D of the California Constitution, and the Landscaping and Lighting Act of 1972 (the "Act"), Part 2 of Division 15 of the California Streets and Highways Code (commencing with Section 22500 thereof).

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

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

SECTION 1. The City Council hereby proposes to continue to levy annual assessments for existing City of Palmdale Districts and to levy and collect assessments against the lots and parcels of land within such Districts to pay for the costs and expenses of the improvements described in Section 3 below, for the fiscal year commencing July 1, 2024 and ending June 30, 2025, pursuant to the Act, and as provided by Article XIIID of the California Constitution.

SECTION 2. The purpose of the Districts is for the installation, maintenance, and servicing of public improvements, as described in Section 3 below.

SECTION 3. Within the Landscape Assessment Districts, the existing and proposed improvements to be undertaken may be briefly described as follows: the installation, maintenance, and servicing of ornamental structures, landscaping, including trees, shrubs, grass, and other ornamental vegetation, and appurtenant facilities, including irrigation systems, drainage devices and drywells located in public places within the boundaries of the Landscape Assessment Districts. Maintenance means the Resolution No. CC 2024-035

Page 2 of 3 ends

furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of the ornamental structures, landscaping, and appurtenant facilities, including repair, removal, or replacement of all or part of any of the ornamental structures, landscaping or appurtenant facilities; providing for the life, growth, health, and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of electricity for the lighting and operation of the ornamental structures, landscaping, and appurtenant facilities, and water for the irrigation and control of the landscaping and the maintenance of any of the ornamental structures, landscaping, and appurtenant facilities.

Within the Park District, the existing and proposed improvements to be undertaken by the Park District are generally described as installation, maintenance, and servicing of public facilities, including but not limited to landscaping, sprinkler systems, park grounds, park facilities, amphitheaters, landscape corridors, ground cover, shrubs and trees, street frontages, multi-use trails, campsites and picnic areas, equestrian facilities, playground equipment, and hardcourt areas, senior and community centers, drainage systems, lighting, fencing, entry monuments, sport and recreation fields, concession stands, basketball courts, tennis courts, running tracks, aquatic parks, swimming pools and pool enclosures, other recreational facilities, security guards, graffiti removal and repainting, and labor, materials, supplies, utilities and equipment, as applicable, for property owned, operated or maintained by the City of Palmdale. Whereas installation means the construction of recreational improvements, including, but not limited to, land preparation, such as grading, leveling, cutting and filling, sod, landscaping, irrigation systems, sidewalks and drainage, lights, playground equipment, play courts, recreational facilities, and public restrooms. Maintenance means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of said improvements, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping; and cleaning, sandblasting and painting of walls and other improvements to remove or cover graffiti. Servicing means the furnishing of electric current or energy for the operation or lighting of any improvements, and water for irrigation of any landscaping or the maintenance of any other improvements.

Within the Streetlight Assessment Districts, the existing and proposed improvements to be undertaken may be briefly described as follows: the installation, maintenance, and servicing of any authorized improvements under the Act, including, but not limited to streetlight, traffic signal, and highway safety light improvements, and any facilities which are appurtenant to any of the aforementioned or which are necessary or convenient for the maintenance or servicing thereof.

Resolution No. CC 2024-035

Page 3 of 3 ends

SECTION 4. NBS is hereby designated as Engineer of Work for purposes of these proceedings and is hereby ordered to prepare an Engineer’s Report in accordance with Article 4 of Chapter 1 of the Act and Article XIII D of the California Constitution. Upon completion, the Engineer of Work shall file the Engineer’s Report with the City Clerk for submission to the City Council.

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

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

ADMINISTRATION DIVISION
DISTRICT: 3, 4
SUBJECT: ADOPT RESOLUTION NO. CC 2024-046, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALEADOPTING A LIST OF
PROJECTS FOR FISCAL YEAR 2024 -2025 FUNDED BY S ENATE
BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017

RECOMMENDATION
Staff recommends that the City Council:

1. Adopt Resolution No. CC 2024-046, a Resolution of the City Council of the City of Palmdale adopting a list of projects for Fiscal Year 2024 -2025 funded by S enate Bill 1: The Road Repair and Accountability Act of 2017; and,

2. Authorize the Mayor to execute Resolution No. CC 2024-046, approving a list of the projects for Fiscal Year 2024 – 2025 funded by S enate Bill 1: The Road Repair and Accountability Act of 2017.

BACKGROUND
In April 2017, the Governor signed Senate Bill 1 (SB 1) (Beall, Chapter 5, Statutes of 2017), known as the Road Repair and Accountability Act of 2017.To address basic road maintenance, rehabilitation, and critical safety needs on state highway and local streets and road system, SB 1 increases per gallonfuel excise taxes, increases diesel fuel sales taxes and vehicle registration fees, and provides for inflationary adjustments to tax rates in future years.

Beginning in November 2017, the State Controller (Controller) began depositing various portions of this new funding into the newly created Road Maintenance and Rehabilitation Account (RMRA). A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highway Code (SHC) Section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and road system.

Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2024-046
May 1, 2024

Page 2 ends

SB 1 emphasizes the importance of accountability and transparency in the delivery of California’s transportation programs. Therefore, to be eligible for RMRA funding, the statutes require cities and counties to provide basic RMRA project reporting to the California Transportation Commission (Commission).

DISCUSSION
Before receiving an apportionment of RMRA funds from the Controller in a fiscal year, a city or county must submit to the Commission a list of projects proposed to be funded with these funds. All projects proposed to receive funding must be included in a city or county budget that is adopted by the applicable city council or county board of supervisors at a regular public meeting [SHC 2032(a)(1)].

In accordance with the above requirement, for FY 2024-2025, the allocated amount of $4,300,000 will be budgeted in the City’s Capital Improvement Project budget. Also, any carryforward from previous years will be used for the projects listed below:
 Avenue T Reconstruction Project – Provide environmental planning and design of roadway improvements along Avenue T from 47th Street East to 82nd Street East.

It is recommended that the design be a full-depth reclamation (FDR). FDR is a pavement rehabilitation technique to transform deteriorating road surfaces into durable, high-quality pavements. FDR recycles existing pavement materials to create a stable, durable base for new road construction. It involves pulverizing the existing pavement and blending it with additives such as cement or asphalt emulsion. The estimated cost of environmental and design is $2.5 million. The estimated construction cost is $12-15 million; and,
 Local Streets Cape Seal Resurfacing Project: to provide street resurfacing treatment to local streets. The estimated cost is approximately $1.8 million.

Locations listed:
o Area 1 – Avenue R-11 to Avenue S (47th Street East to 55th Street East) o Area 2 – Avenue S-4 to Avenue S-8 (41st Street East to 45th Street East)

FISCAL IMPACT
Since the inception of RMRA funds, the City has received $17,314,479. The allocated amount for FY 2024-2025 of $4,300,000 will be budgeted in Account S0025210. These funds have been used for local streets and roads for basic road maintenance and road rehabilitation projects, safety projects, traffic control devices, and complete street components. Once the project is established and meets the criteria, a project number will be assigned along with the appropriate funding.

Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2024-046
May 1, 2024

Page 3 ends

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

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

ATTACHMENTS
Reso. No. CC 2024-046
Atch 1 Site Map

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-046

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2024-2025
FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City of Palmdale are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of Palmdale must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Palmdale, will receive an estimated $4.3 million in RMRA funding in Fiscal Year 2024-2025 from SB 1; and
WHEREAS, this is the eight year in which the City of Palmdale is receiving SB 1 funding and will enable the City of Palmdale to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City of Palmdale has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list through our Five Year Capital Improvement Program and yearly budget process; and WHEREAS, the City of Palmdale uses a Pavement Management System and also community requests to develop the SB1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities’ priorities for transportation investment; and Resolution No. CC 2024-046

Page 2 of 3 ends

WHEREAS, the funding from SB 1 will help the City of Palmdale maintain and rehabilitate 172 street segments (approximately 4.5 million square feet of roadway) throughout the City of Palmdale this year in accordance with the City of Palmdale’s Pavement Resurfacing Program and similar projects into the future; and WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the City of Palmdale streets and roads are in an “at risk” condition, and this revenue will help us increase the overall quality of our road system and over the next decade, will get us out of the “at risk” category and bring the City into a more cost-effective preventative maintenance condition; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials, and practices will have significant positive co-benefits statewide.

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’s 2024-2025 Capital Improvement Budget will incorporate the following list of projects planned to be funded with Road Maintenance and Rehabilitation Account revenues:

Project Title Project Location Estimated
Completion
Estimated
Useful Life
Avenue T
Reconstruction (includes
design, environment for
a proposed full depth
reclamation (FDR) of
roadway
Avenue T (47th Street
East to 82nd Street
East)
Fall 2027 50 year
Local Streets Cape Seal
Resurfacing (System 1
or 2)
Area 1 – Avenue R-
11 to Avenue S (47th
St. E. to 55th St. E.)
Area 2 – Avenue S-4
to Avenue S-8 (41st
St. East to 45th St.

East)
Summer
2025
5-10 years
Resolution No. CC 2024-046

Page 3 of 3 ends

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

PASSED, APPROVED, and ADOPTED this 1st day of May 2024.

Approved as to form: Austin Bishop, Mayor
William P. Curley III
City Attorney
ATTEST:

Rochelle Scott, City Clerk
I, Rochelle Scott, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 1st day of May 2024 by the following roll call vote:

AYES:

NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:

Rochelle Scott, City Clerk
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E AVENUE S
E AVENUE R-12
E AVENUE R-11
50TH ST E
51ST ST E
52ND ST E

SABAL AVE
47TH ST E
55TH ST E
53RD ST E
M
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CEDRELA AVE

MINSTREL DR
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KARLING PL ARBOR LN
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FESTIVAL CT
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CAROUSEL CIR
53RD ST E
51ST ST E
55TH ST E

KARLING PL

FESTIVAL CT
2 41
35 CC 2024-046 : FY 24-25 Local
Street Cape Seal (Area 1)Map Revision Date: 04/24/2024
*Not to scale.

Yellow area is only intended to highlight the
local street to receive the cape seal treatment.

Area 1 Project Streets*
Area 1 Project Streets*
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Centerline
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Parcel
City Boundaryµ ´
0 250 500 750 1,000125
Feet
Data Source: Copyright 2024. All rights reserved. The City of Palmdale owns and licenses geographic data from a variety of sources. The information contained herein is the proprietary property of the following owners, supplied under license, and may not be reproduced except as licensed by those owners: City of Palmdale, Los Angeles County Assessor's Office, ESRI Date & Maps, USGS, & TeleAtlas (courtesy of SCAG). Aerial imagery may be outdated and not match the actual ground condition.

Cape Seal
Atch 1 Site Map
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Cimarron
Elementary
E AVENUE S-8
E AVENUE S-4
45TH ST E
42ND ST E
SO

LVAY ST

COBALT ST
CALDRO
N ST

SEREDIPITY W
AY

WINDSTAR WAY

LIMA AVE

AUBURN CT

AZURE AVE

SYLVAN ST
ELM
IRA ST

SAFFRON AVE

SPRINGFIELD ST

AUBURN CT
CALDRO
N ST

WINDSTAR WAY
2 41
35 CC 2024-046 : FY 24-25 Local
Street Cape Seal (Area 2)Map Revision Date: 04/24/2024
*Not to scale.

Yellow area is only intended to highlight the
local street to receive the cape seal treatment.

Area 2 Project Streets*
Area 2 Project Streets*
kj Fire Station
!. Traffic Signal
nm School
Centerline
Park
Parcel
City Boundaryµ ´
0 200 400 600 800100
Feet
Data Source: Copyright 2024. All rights reserved. The City of Palmdale owns and licenses geographic data from a variety of sources. The information contained herein is the proprietary property of the following owners, supplied under license, and may not be reproduced except as licensed by those owners: City of Palmdale, Los Angeles County Assessor's Office, ESRI Date & Maps, USGS, & TeleAtlas (courtesy of SCAG). Aerial imagery may be outdated and not match the actual ground condition.

Cape Seal
City Council Staff Report
DATE: MAY 1, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 1, 5
SUBJECT: APPROVE THE SECOND AMENDMENT TO AGREEMENT WITH SULLY MILLER CONTRACTING CO., FOR PN 698, AVENUE R

COMPLETE STREETS AND SAFE ROUTES PROJECT, FOR A NOT
TO EXCEED AMOUNT OF $14,245,965, INCLUDING AN
ADDITIONAL $152,731 CONTRACT VALUE AND $1,000,000

CONTINGENCY, PER THE ORIGINAL TERM OF FOUR HUNDRED
(400) CALENDAR DAYS

RECOMMENDATION
Staff recommends that the City Council:

1. Approve the Second Amendment to Agreement No. A -7596 with Sully Miller Contracting Co., for PN 698, Avenue R Complete Streets Project, for a not to exceed amount of $1,152,731, which includes a Contract amount of $152,731, plus a contingency amount of $1,000,000 , per the original term of four hundred (400) calendar days;

2. Authorize the City Manager or her designee to execute the Second Amendment to Agreement No. A-7596 with Sully Miller Contracting Co.;

3. Authorize the transfer of $1,152,731 of unappropriated Highway User Tax Account Funds (2 01) into account S0058201-724525, for PN 698, Avenue R Complete Streets Project; and,

4. Authorize the City Manager or her designee to execute any future change orders or amendment s in a not to exceed amount of $1,000,000, including minimal and/or non-substantial changes.

Report to Mayor and City Council
Re: Second Amendment to Agreement No. A-7596
May 1, 2024

Page 2 ends

BACKGROUND
Project No. 698, Avenue R Complete Streets and Safe Routes Project includes roadway widening improvements along Avenue R from Sierra Highway to 25th Street East, sidewalk gap closures, driveway and curb ramp construction, traffic signal modification, streetlight improvements, storm drain improvements, roadway rehabilitation, and signing & striping.

On March 2, 2022, the City Council awarded Sully Miller Contracting Co. a $10,690,000 construction contract.

On July 19, 2022, the City approved the first amendment to the construction contract to increase the insurance coverage and pay for the additional insurance cost. The amendment amount was $324,244.11. This increase represented 3.03% over the contract’s original amount and was approved administratively.

On May 17, 2023, the City Council approved Supplemental Agreement No.1, increasing the contract amount by $889,797.42 to cover delays and construction cost escalations caused by utilities delaying relocating their facilities. The City Council approval was required as the cumulative increase, including Amendment No. 1, would have resulted in over 10% of the original cost.

On March 12, 2024, the City Manager approved Supplemental Agreement No. 2 for $777,994.31. This supplement agreement represented 6.54% of the contract value and was within the City Manager’s authority. The changes involved a utility conflict between the sewer and the proposed storm drain at a cost of $581,304.11. The balance of the change order for $196,690.20 included bid item revisions for additional items of work for a slough wall, vehicular gate, fence, pedestrian gate, relocating electrical motor for a gate, tree stumps removal, sewer cleanout adjustment, additional survey, and potholing, delays due to sewer lateral conflicts and relocating the sewer laterals.

On April 1, 2024, the City Manager approved Supplemental Agreement No. 3 for $411,199.88. This supplemental agreement represented 3.44% of the contract value and was within the City Manager’s authority. The changes involved the installation of squash boxes due to utility conflict between the water line crossings and the new storm drainpipe, removal of buried pipe, additional sewer lateral relocations, and additional water meter relocations.

DISCUSSION
The Second Amendment includes the cost of a shoring shield, one additional squash box for the storm drainpipe, setting and relocating additional water meters, potholing utilities for Palmdale Water District, and additional contingency. Please see Exhibit A.

Report to Mayor and City Council
Re: Second Amendment to Agreement No. A-7596
May 1, 2024

Page 3 ends

Palmdale Water District (PWD) is planning to replace portions of its water line near Avenue R and 10th Street East. To expedite their project and coordinate with the City’s project, PWD agreed to reimburse the City for potholing the water line in the amount of $26,335.92. Staff will request the payment of the said amount after the second amendment is approved.

There are a number of potential change orders that the City staff is negotiating with the contractor. The cost of these items has not been finalized. The change orders have been as a result of unforeseen conditions, utility conflicts, and requests by the City to the contractor to perform additional scope of work. These items of work include relocation of sewer laterals as a result of conflicts with the new storm drain pipe, change of fence height per property owner requests, traffic signal conduit relocation, the lining of corrugated metal pipe, additional squash boxes with transitions, electric shield and potential change order for pavement thickness
The contingency amount will be used to pay for these work items.

FISCAL IMPACT
$1,152,731; This project is currently funded in Account No. S0058 with a total project budget of $13,640,340. The second Amendment increases the total contract amount to $13,245,965. Staff are requesting an additional $1,000,000 contingency. Total costs are summarized as follows:

Project Summary Cost
Sully Miller Contracting – A-7596 $10,690,000
Amendment No. 1 (administratively) $324,244
Supplemental Agreement No. 1 (Council action) $889,797
Supplemental Agreement No. 2 (administratively) $777,994 Supplemental Agreement No. 3 (administratively) $411,200 Total Contract Amount $13,093,235
Council Council Action Cost

1. Second Amendment to the Agreement A-7596 $152,730

2. Additional Contingency $1,000,000
Total Contract Balance $14,245,965
Report to Mayor and City Council
Re: Second Amendment to Agreement No. A-7596
May 1, 2024

Page 4 ends

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

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

ATTACHMENTS
Agrmt No. A-7596 Second Amendment with Sully Miller
Exh A Change Order Summary
2nd AMENDMENT TO AGREEMENT A-7596
BETWEEN THE CITY OF PALMDALE AND SULLY MILLER CONTRACTING Co.

This 2nd Amendment to Agreement No. A-7596 (“Agreement”) is made and entered into by and between the City of Palmdale (hereinafter called “CITY”) and SULLY MILLER CONTRACTING Co. (hereinafter called "CONTRACTOR"). This Contract shall become effective on the date of the last signatory.

WHEREAS, on July 19, 2022 ("Original Agreement") the CITY and CONTRACTOR entered into an agreement to provide:

Construction of Avenue R Complete Streets and Safe Routes Project - ATPL - 5378 (049), PN 698

WHEREAS, the parties desire to amend the Original Agreement to:

Add additional scope of work and the associated costs according to the following:

NOW THEREFORE, the parties agree as follows:

1 CCO #10: SHIELD RENTAL $3,991.20
For safety reasons, the shoring shields remained in the storm drain trench for two months during the redesign of the storm drain, which was in conflict with the existing water line mains. This change order is done on a Time & Material basis. 2 CCO #13: SQUASH BOX (1 @ $93,081.75) $93,081.75
The proposed Storm Drain conflicted with existing utilities. Several squash boxes and transition structures needed to be constructed to prevent costly utility relocations and unacceptable delays to the contractor and the Agency.
3 CCO #15: SETTING WATER METER AND GRADE MANHOLE R-4 $2,722.36 On 11th Street East and R-4, the existing water meters and manhole, which were not shown on the plans, needed to be relocated and adjusted to the new curb grade. This work is done on a Time & Material basis.
4 CCO #17: POTHOLING FOR PALMDALE WATER DISTRICT – $26,335.92 Palmdale Water District (PWD) needed their lines within the Ave R project limits potholed. Sully-Miller performed the potholing for PWD. Palmdale Water District will reimburse the city for the cost of potholing. This work was done on a Time & Material basis.
5 CCO #19: RELOCATE WATER METERS (6) $26,599.75
Project plans called for the relocation of 24 water meter services; the actual number of meters was 42. This change order covers the cost of the additional meters that needed to be relocated. This work was done on a Time & Material basis.

TOTAL AMOUNT OF THIS AMENDMENT: $152,730.98

THE FOLLOWING IS A SUMMARY OF THE PROJECT SCOPE AND CHANGES TO DATE:
1-3Concord - Document ID: generated after first signature Project No. 698, Avenue R Complete Streets and Safe Routes Project includes roadway widening improvements along Avenue R from Sierra Highway to 25th Street East, sidewalk gap closures, driveway and curb ramp construction, traffic signal modification, streetlight improvements, storm drain improvements, roadway rehabilitation, and signing & striping.

On March 2, 2022, the City Council awarded Sully Miller Contracting Co. a $10,690,000 construction contract.

On May 17, 2023, the City Council approved Supplemental Agreement No.1, increasing the contract amount by $889,797.42 for the cost of delays and construction cost escalations due to utilities delaying relocating their facilities. The City Council approval was required as the cumulative increase, including Amendment No. 1, would have resulted in over 10% of the original cost.

All other terms and conditions of the Original Agreement not amended herein, remain in full force and effect.

2-3Concord - Document ID: generated after first signature

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

CITY OF PALMDALE:

SULLY MILLER CONTRACTING Co.:

Ronda Perez
City Manager

Jeff Galterio
General Manager
ADDRESS FOR NOTICE:

CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550

ADDRESS FOR NOTICE:

SULLY MILLER CONTRACTING Co.
135 S State College Blvd., Suite 400
Brea, CA 92821
APPROVE AS TO FORM:

William P. Curley, III
City Attorney

ATTEST:

Roxanne Faber
City Clerk

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

□Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) ■Original contract and previous amendment(s) (if any) are attached ■Attached Agreement Checklist and met all requirements
3-3Concord - Document ID: generated after first signature Exhibit A

CHANGE ORDER SUMMARY
Second Amendment to Agreement No. A-7596
Project No. 698, East Avenue R Complete Streets and Safe Routes Project

Page 1 of 1 ends

ITEM
NO. DESCRIPTION OF CHANGE AND JUSTIFICATION AMOUNT
1 CCO #10: SHIELD RENTAL $3,991.20
For safety reasons, the shoring shields remained in the storm drain trench for two months during the redesign of the storm drain, which was in conflict with the existing water line mains. This change order is done on a Time & Material basis.

2 CCO #13: SQUASH BOX (1 @ $93,081.75) $93,081.75
The proposed Storm Drain conflicted with existing utilities. Several squash boxes and transition structures needed to be constructed to prevent costly utility relocations and unacceptable delays to the contractor and the Agency.

3 CCO #15: SETTING WATER METER AND GRADE MANHOLE R-4 $2,722.36 On 11th Street East and R-4, the existing water meters and manhole, which were not shown on the plans, needed to be relocated and adjusted to the new curb grade.

This work is done on a Time & Material basis.

4 CCO #17: POTHOLING FOR PALMDALE WATER DISTRICT $26,335.92 Palmdale Water District (PWD) needed their lines within the Ave R project limits potholed. Sully-Miller performed the potholing for PWD. Palmdale Water District will reimburse the city for the cost of potholing. This work was done on a Time & Material basis.

5 CCO #19: RELOCATE WATER METERS (6) $26,599.75
Project plans called for the relocation of 24 water meter services; the actual number of meters was 42. This change order covers the cost of the additional meters that needed to be relocated. This work was done on a Time & Material basis.

TOTAL AMOUNT OF CHANGES: $152,730.98

CC PFA – April 17, 2024 – 5pm 1

MINUTES

CITY COUNCIL/PFA

CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B

PALMDALE, CALIFORNIA
APRIL 17, 2024

www.cityofpalmdale.org

1) CALL MEETING TO ORDER

Mayor Bishop called the meeting to order at 5:04 pm.

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

2) ROLL CALL MAYOR BISHOP, MAYOR PRO TEM LOA, COUNCILMEMBERS OHLSEN, BETTENCOURT, ALARCÓN
PRESENT: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.

ABSENT: None.

3) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

Mayor Pro Tem Loa led the pledge of allegiance.

4) PRESENTATION

4. 1) Certificate of Recognition to Kalkidan Samuel of Pete Knight High School a 2024 Edison Scholar.

Mayor Bishop shared the video of Kalkidan Samuel, Pete Knight High School, and presented her with a certificate.

City Manager Perez removed Items 6.6 and 8.1 from the agenda.

5) PUBLIC COMMENTS:

CONSENT CALENDAR, APPOINTMENT(S), NEW BUSINESS, AND CLOSED SESSION:

The following individuals provided public input: David Harris, Gerry Rice of Vets 4 Veterans, AV BOGA, John of Vets 4 Veterans, and Mr. Gomez of the Young Marines; Ethel Zafranco, Chris Minsal, Jetzybeth, Janet Lopez, Carlo Zafranco, Yolotli and Jodi Kyman commented in support of Item 9. 1 Five-Year Public Art Work Plan; Jacqueline Fontana spoke in support of Item 9.2 Waste Management contract; Eduardo Medina commented regarding the importance of translation services Item

9.3;

Councilmember Alarcón pulled Item 6.4 for discussion , and Councilmember Bettencourt pulled Item 6.5 for discussion.

CC PFA – April 17, 2024 – 5pm 2

6) CONSENT CALENDAR

6.1) Waive full reading of the Resolution(s) to be considered and voted on at this meeting. (This allows for reading the title only in lieu of reciting the entire text).

6.2) Approve Agreement with PFD Management, Inc. to provide Concession Services at DryTown Water Park, for revenues of $42,000 annually for a term of three years with the option to extend two one-year terms.

6.3) Approve Second Amendment with Pacific West Sound, Inc. to provide Audio Production and Equipment Services at the Palmdale Amphitheater to increase the amount of the agreement by $680,300 for a total amount not to exceed $946,500 for a three -year term through June 30, 2025, with the option to extend two additional one-year terms.

6.4) Approve Third Amendment to Legal Services Agreement with Bradley, Gmelich & Wellerstein, LLP for legal services to increase the amount of the Agreement by $400,000 for a total not to exceed amount of $1,390,000 for the remainder of the term through February 2025.

City Attorney Curley presented the staff report.

Councilmember Alarcón discussed the rate schedule for legal services.

There was additional Council and staff discussion regarding fees for legal services.

Motion: Approve Third Amendment to Legal Services Agreement with Bradley, Gmelich & Wellerstein, LLP for legal services to increase the amount of the Agreement by $400,000 for a total not to exceed amount of $1,390,000 for the remainder of the term through February 2025.

Moved by Richard J. Loa, seconded by Laura Bettencourt.

Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.

6.5) Summary of the 2023 Annual Housing Element Progress Report.

Councilmember Bettencourt stated that the State of California mandates a certain amount of housing in each City.

Brenda Magana provided further clarification on the Housing Element item.

Motion: Receive the summary of the 2023 Annual Housing Element Progress Report.

Moved by Richard J. Loa, seconded by Laura Bettencourt.

CC PFA – April 17, 2024 – 5pm 3
Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.

6.6) Approve the Second Amendment to Agreement with Retail Strategies, LLC for retail attraction and recruitment services to increase the amount of the agreement BY $45,000, for a total not to exceed amount of $135,000 and extend the Agreement term by one year to April 1, 2025.

City Manager Perez removed this item from the agenda.

6.7) Approve Final Tract Map No. 81337 (located between 65th Street West and 70th Street West, south of Avenue M).

6.8) Approve the minutes from the April 3, 2024 meeting.

Motion: Approve the items listed on the Consent Calendar with the exception of those items pulled.

Moved by Richard J. Loa, seconded by Eric Ohlsen.

Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.

7) JOINT CONSENT CALENDAR CC/PFA

7.1) Adopt 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, and 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.

Motion: Adopt Resolution No. CC 2024-030 and PFA 2024-001 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.

Moved by Laura Bettencourt, seconded by Richard J. Loa.

Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.

CC PFA – April 17, 2024 – 5pm 4
8) PUBLIC HEARING

8.1) 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 establishes two new City fees: a VMT Analysis Fee and a VMT Impact Fee.

City Manager Perez removed this item from the agenda.

8.2) Adopt Resolution No. CC 2024 -048, a Resolution of the City Council of the City of Palmdale, 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 50th Street East and 55th Street East (APN: 3023-002-084).

City Clerk Scott read the title of Resolution No. CC 2024-048.

Mayor Bishop opened the Public Hearing.

Brenda Magana provided a PowerPoint presentation. City Attorney Curley discussed California State law, housing allocations, and local control.

Hunt Braly, Poole & Shaffery, spoke about the Ravello Holdings project.

Discussion ensued regarding the total number of units for the project, street configuration, shingle roof tops, and the adoption of the Housing Element.

The following individuals commented in opposition of the project: Jacqueline Cardona, Richard Docas, Tori, Rosa Sedano, Carli, Karina Barajas, Johnathan Huddleston, Corrine and Joel Stephenson, and Estella Sipin.

The following individuals commented in support of the project: Mrs. Flowers, Sindi Escobar, Mike Parker, Blanca Marroquin, and Raquel.

Mayor Bishop closed the Public Hearing.

Motion: Continue the Item to May 1, 2024.

Moved by Richard J. Loa, seconded by Eric Ohlsen.

Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.

9) NEW BUSINESS

9.1) Adopt Resolution CC 2024-018, a Resolution of the City Council 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.

Public Art Program Manager Davis and Chair Sarno of the Public Arts Commission provided a detailed PowerPoint presentation.

CC PFA – April 17, 2024 – 5pm 5

Councilmember Alarcón spoke regarding the lack of art in District 5.

There was Council discussion in support of the Public Art Plan.

Motion: Adopt Resolution CC 2024 -018, a Resolution of the City Council 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.

Moved by Richard J. Loa, seconded by Laura Bettencourt.

Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.

9.2) 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.

City Manager Perez presented the staff report.

Waste Management representatives spoke regarding their services, outreach to customers, and updated technology and infrastructure.

Mayor Bishop thanked Waste Management for their partnership and spoke about illegal dumping, trash trucks, street sweeping, and landfield management.

Councilmember Bettencourt suggested tiered senior citizen discounts.

Motion: Approve Third Amendment to the Franchise Agreement with 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.

Moved by Richard J. Loa, seconded by Eric Ohlsen.

Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.

9.3) Staff follow-up response to April 3, 2024, City Council direction: Discussion on options for language interpretation services at council meetings.

City Clerk Scott presented the staff report.

There was Council discussion regarding translation services, the budgetary process, and the use of technology.

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

CC PFA – April 17, 2024 – 5pm 6
Moved by Eric Ohlsen, seconded by Richard J. Loa.

Vote: Motion carried (4-1)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt.

No: Andrea Alarcón.

10) COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE

AGENDA ITEMS

Councilmember Bettencourt requested an update on the Chimbole Cultural Center, an improved public cemetery , and possibly a military cemetery. City Manager Perez discussed the architect, funding, and design phase of the Chimbole Cultural Center, Library, and City Hall project. Mrs. Perez also reported the City is in conversations with the Cemetery District regarding assuming control of the existing cemetery.

Mayor Pro Tem Loa asked for an update on the progress of the acquisition of Palmdale Boulevard and the status of the 2nd Street East and Palmdale Boulevard projects. City Manager Perez reported that Caltrans is handling the 2nd Street East project and that the City would request an update.

Councilmember Alarcón spoke about hosting a District 5 town hall meeting.

Mayor Bishop requested update s on the Avenue R and downtown area projects.

Director of Public Works Glidden provided an update and estimated completion date in September for the Avenue R project. She also reported that 10th Street East would be open the week of April 29.

Mayor Bishop commented on the benefits of public engagement.

11) CITY MANAGER’S REPORT

City Manager Perez reported on the following: Air Force Plant 42 Earth Day; Season of Service events; Earth Day Park activities at Marie Kerr Park; Annual Seniors Resource Fair; Aerospace Valley Career Fair; Farmer's Market at Oasis Park; Art Exhibit at Legacy Commons; Palmdale Sheriff's Boosters Car and Bike Show at DryTown; Vet at the Park; Books and Barks; and graffiti abatement and public safety updates.

Mayor Pro Tem Loa spoke regarding the eradication of graffiti and Councilmember Bettencourt encouraged the public to report graffiti.

12) NON-AGENDA PUBLIC COMMENTS:

The following individuals provided public input: Megan Smith spoke regarding the homeless crisis; Isabella Llamas commented regarding the repair of tennis courts; Eugene Hernandez spoke about the treatment of veterans in America; Marco Ramos spoke about the Parks & Recreation Master Plan; Robert and Rebecca Broughton spoke about accidents in the Rancho Vista area; Rosie Mainella commented regarding cooling park equipment during the summer , Child Abuse Prevention and Sexual Assault Awareness month; Vicky Ventura thanked the Mayor for participating in the Young Entrepreneurs Academy; and citizen (no name provided) spoke

CC PFA – April 17, 2024 – 5pm 7
regarding Item 6.2 and translating cost.

Councilmember Alarcón requested that the meeting be adjourned in honor of Pastor Sandra Crouch.

13) PRESENTATION BY CITY ATTORNEY

City Attorney Curley confirmed there was one properly agendized item.

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

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

14) ANNOUNCEMENT BY CITY ATTORNEY

Closed Session was held from 9:24 pm – 9:45 pm

City Attorney Curley announced: 13.1 - Council was updated , and there was no reportable action.

15) ADJOURN

Mayor Bishop adjourned the meeting, in honor of Pastor Sandra Crouch, at 9:46 pm to May 1, 2024, at 5:00 pm in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

PASSED, APPROVED, and ADOPTED this 1st day of May 2024.

Austin Bishop, Mayor

ATTEST:

Rochelle Scott, City Clerk
City Council Staff Report
DATE: MAY 1, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: NEIGHBORHOOD SERVICES DEPARTMENT
DISTRICT: ALL
SUBJECT: PUBLIC HEARING TO RECEIVE PUBLIC COMMENTS ON THE 2024- 2025 DRAFT ACTION PLAN PROGRAMMING ESTIMATED AT
$4,454,266 IN CONSOLIDATED PLAN FUNDS; REVIEW, APPROVE, AND SUBMIT THE 2024-2025 ACTION PLAN ; AND EXECUTE

DOCUMENTS RELATED TO THE SUBMISSION OF THE ACTION

PLAN AND SUB-RECIPIENT AGREEMENTS

RECOMMENDATION
Staff recommends that the City Council:

1. Open a public hearing to receive public comments on the 2024-2025 Draft Action Plan;

2. Review and approve the 2024-2025 Action Plan; and,

3. Authorize the City Manager or her designee to submit the 2024-2025 Action Plan and execute all documents related to the submission of the Action Plan, and sub- recipient agreements, including making necessary non-substantial changes

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

As a prerequisite for receiving its annual CDBG and HOME allocation, the City is required to submit a Consolidated Plan every five years and an annual Action Plan to HUD for approval. The purpose of the se plans is to 1) assess the housing and community development needs of low- and moderate-income residents of Palmdale; 2) develop and describe a strategy to meet those needs; 3) describe the City’s programs and projects, Report to Mayor and City Council
Re: Public Hearing 2024-2025 Draft Action Plan
May 1, 2024

Page 2 ends

and the funding sources to meet those needs for the 2024-2025 Program Year; and, 4) describe the geographic distribution of resources and activities.

DISCUSSION
Six goals were identified through consultation with citizens and stakeholders and evaluation of available data from HUD. The goals will be addressed through the investment of an anticipated $11 million of CDBG and HOME funds over the five-year period of the 2020-2024 Consolidated Plan.

Goals:
 Affordable Housing
o Increase the supply of affordable housing (99 housing units) o Preserve the supply of affordable housing (5 housing units) o Provide rental assistance to low-income households at risk of homelessness (80 households)
 Fair Housing Services
o Ensure equal access to housing opportunities (1,500 people)  Public Services, including homelessness
o Prevent and eliminate homelessness and provide public services for residents, including those with special needs (25,000 people)  Public Facilities and Infrastructure Improvements (200,000 people)  Economic Opportunity
o Expand economic opportunity for low-income residents and small business owners (40 businesses assisted / 20 jobs created/retained)  Planning and Administration
The estimated available CDBG funds for programming are summarized below and listed by categories in Table 1:

Estimated 2024-2025 Allocation $1,400,000
Program Income 4,000 Prior Year Unprogrammed Funds 970,881 Total $2,374,881 Report to Mayor and City Council
Re: Public Hearing 2024-2025 Draft Action Plan
May 1, 2024

Page 3 ends

Table 1 - Proposed CDBG-eligible activities:

Category Applicants Project Descriptions Funding
Requests
Public
Services
South
Antelope
Valley
Emergency
Services
(SAVES)
Support a continuum of services in
the Antelope Valley to prevent and
eliminate homelessness, including,
but not limited to, emergency
services, homeless prevention
programs, case management, and
bridge housing. This is an eligible
activity under 570.201(e) and meets
the national objective under
570.208(a)(2)(1)(B) low/mod limited
clientele.
$210,600
Public Services Subtotal $210,600
Infrastructure/
Affordable
Housing
Infrastructure/
Affordable
Housing
Improve Palmdale’s infrastructure in
low- and moderate-income residential
areas to benefit low- and moderate-
income people or those presumed
under HUD regulations to be low-
and moderate-income, such as
elderly people and disabled adults,
as well as residents of low- and
moderate-income housing in support
of affordable housing. The project is
eligible under Section 570.201(c),
and meets the national objective
under 570.208(a).
$386,763
Infrastructure/Affordable Housing Subtotal $386,763
Capital
Improvements
ADA
Improvements
The ADA Improvements project will
include the design and installation
ADA improvements to public
facilities. This is an eligible activity
under 570.201(c) of regulation and
meets the low/mod benefit national
objective under 570.208(a)(2).
$500,000
Capital
Improvements
ADA Sidewalk
Gap Closure
and Ramps
The project provides for activities,
including sidewalks, curbs, and
gutters. The project provides for the
design and installation or
replacement of damaged sidewalks,
$650,000
Report to Mayor and City Council
Re: Public Hearing 2024-2025 Draft Action Plan
May 1, 2024

Page 4 ends

Category Applicants Project Descriptions Funding
Requests
curbs, gutters, and drive approaches,
including the removal of existing
trees, removal of tree stumps and
root systems, and stump grinding
necessary to facilitate the
improvements. The project will also
provide for the removal of existing
curbs and the installation of curb
ramps with truncated domes at
existing locations in residential
neighborhoods. The project is eligible
under Section 570.201(c) and meets the
national objective under 570.208(a).

Capital Improvements Subtotal $1,150,000
Administrative
/Other
Section 108
Debt Service
Annual debt service and trustee fees
for Section 108 Loan Guarantee. This
is an eligible activity under
570.705(c).
$347,518
Administrative
/Other
Housing
Rights Center
Fair Housing Services. This is an
eligible activity under 570.206(c).
$38,620
Administrative
/Other
Program
Administration
Implementation of the CDBG
Program (< 20% of total program
award) This is an eligible activity
under 570.206.
$241,380
Administrative /Other $627,518
Total Estimated CDBG 2024-2025 Allocation $2,374,881
The funding reflected in the annual Action Plan is estimated. Should the final allocation amount be different from the estimate, proposed activity budgets will be adjusted in the following manner:
 Fair Housing Services and Section 108 Debt Service will remain within the estimated budget.
 The other activities will be adjusted proportionately to reflect either an increase or decrease in the allocation.

Report to Mayor and City Council
Re: Public Hearing 2024-2025 Draft Action Plan
May 1, 2024

Page 5 ends

The estimated available HOME funds for programming are summarized below and listed by proposed activity in Table 2:
2024-2025 Estimated Allocation $ 540,000 Unprogrammed Funds 1,539,385 Total $2,079,385 Table 2 - proposed HOME-eligible activities are:

Applicants Project Descriptions Funding
Requests
Tenant Based
Rental Assistance/
Valley Oasis
Implementation of tenant-based rental
assistance to prevent eviction. This is an
eligible activity under 24 CFR Part 92.
$175,000
Applicant to be
determined
Community Housing Development
Organization (CHDO). Funds set aside for
Applicant to be determined (<15% of program
award). This is an eligible activity under

92.300.
$81,000
Applicant to be
determined
In partnership with a developer the City will
fund the construction of new affordable rental
units, Multi-Family New Construction
Program. This is an eligible activity under

92.205(a)(1).
$1,769,385
Program
Administration
Implementation of the HOME Program (< 10%
of total program award). This is an eligible
activity under 92.207.
$54,000
Total Estimated HOME 2024-2025 Allocation $2,079,385
The funding reflected in the Annual Action Plan is estimated. Should the final allocation amount be different from the estimate, proposed activity budgets will be adjusted in the following manners:
 Tenant-Based Rental Assistance will remain at the estimated budget.  The other activities will be adjusted proportionately to reflect either an increase or decrease in the allocation.

In compliance with the City’s approved Citizen Participation Plan and Implementing Regulation 24 CFR 91.105, a Public Notice was published in the Antelope Valley Press on March 30, 2024, to inform residents that the 2024-2025 Draft Action Plan was available for review and comments. Citizens were informed that copies of the aforementioned documents are available for review on the City’s website from March 30, 2024, to May 1, 2024, and available in hardcopy format at the Neighborhood Services Department, the Palmdale Public Library, and the Administration Building.

Report to Mayor and City Council
Re: Public Hearing 2024-2025 Draft Action Plan
May 1, 2024

Page 6 ends

The public notice invited citizens to provide written comments to the Housing staff at the Department of Neighborhood Services, 38250 Sierra Highway, 2 nd Floor, Palmdale, CA 93550 or via email to [email protected] before 2:00 p.m. on May 1, 2024, and during the public hearing on May 1, 2024 beginning at 5:00 p.m. at the City Council meeting in Council Chambers located at 38300 Sierra Highway, Suite B, Palmdale, CA 93550.

FISCAL IMPACT
$4,454,266; For Fiscal Year 2024-2025 the City will receive an estimated allocation of $1,400,000 in Community Development Block Grant (CDBG) funds, $4,000 of Program Income, $970,881 of unprogrammed prior-year funds; an estimated $540,000 in HOME Investment Partnerships (HOME) funds, and $1,539,385 of prior year unprogrammed funds. A total of $4,454,266 is available for the CDBG and HOME activities for the 2024- 2025 Action Plan.

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

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

Prepared by: Becky Bartlett, Management Analyst II
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
2024-2025 Draft Action Plan

Annual Action Plan
FY 2024-25

Draft
Public Review
May 1, 2024

City of Palmdale i 2024 Draft Annual Action Plan

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City of Palmdale ii 2024 Draft Annual Action Plan

Table of Contents
Executive Summary ............................................................................................................................ - 1 - AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) ............................................................... - 1 - PR-05 Lead & Responsible Agencies – 91.200(b) ............................................................................. - 4 - AP-10 Consultation – 91.100, 91.200(b), 91.215(l) .......................................................................... - 5 - AP-12 Participation – 91.105, 91.200(c) ........................................................................................ - 22 - Expected Resources ......................................................................................................................... - 23 - AP-15 Expected Resources – 91.220(c)(1,2) ................................................................................. - 23 - Annual Goals and Objectives ............................................................................................................ - 28 - AP-20 Annual Goals and Objectives............................................................................................... - 28 - AP-35 Projects – 91.220(d) ........................................................................................................... - 31 - AP-38 Project Summary ................................................................................................................ - 33 - AP-50 Geographic Distribution – 91.220(f) ..................................................................................... - 33 - Affordable Housing ........................................................................................................................... - 42 - AP-55 Affordable Housing – 91.220(g) ........................................................................................... - 42 - AP-60 Public Housing – 91.220(h) ................................................................................................. - 44 - AP-65 Homeless and Other Special Needs Activities – 91.220(i) ..................................................... - 44 - AP-75 Barriers to affordable housing – 91.220(j) ............................................................................ - 48 - AP-85 Other Actions – 91.220(k) ................................................................................................... - 49 - Program Specific Requirements ........................................................................................................ - 52 - AP-90 Program Specific Requirements – 91.220(l)(1,2,4) ............................................................... - 52 - Action Plan Tables
Table 1 - Responsible Agencies ........................................................................................................... - 4 - Table 2 - Agencies, groups, organizations who participated................................................................ - 20 - Table 3 - Other local / regional / federal planning efforts ..................................................................... - 21 - Table 4 – Citizen Participation Outreach ............................................................................................ - 22 - Table 5 - Expected Resources – Priority Table ................................................................................... - 24 - Table 6 – Goals Summary ................................................................................................................. - 30 - Table 7 - Project Information ............................................................................................................. - 32 - Table 8 - Geographic Distribution ...................................................................................................... - 41 - Table 9 - One Year Goals for Affordable Housing by Support Requirement.......................................... - 43 - Table 10 - One Year Goals for Affordable Housing by Support Type ................................................... - 43 -

City of Palmdale iii 2024 Draft Annual Action Plan

Version History
No. Summary of Changes
1 Published Draft for Public
Comment:

March 30,
2024 Sent to HUD for Approval: TBD
Conducted Public Hearing: May 1, 2024 Approved by HUD: TBD Original 2024-2025 Annual Action Plan.

City of Palmdale - 1 - 2024 Draft Annual Action Plan

Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction
The City of Palmdale has prepared the 2024- 25 Annual Action Plan as required to receive federal Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) funds.

The Action Plan provides the United States Department of Housing and Urban Development (HUD) with a summary of the proposed activities to be carried out with CDBG and HOME resources.

The CDBG and HOME programs generally provide for a wide range of eligible activities for the benefit of low- and moderate-income Palmdale residents.

Community Development Block Grant (CDBG)
The Housing and Community Development Act of 1974 created the CDBG Program with three primary objectives against which HUD evaluates the Consolidated Plan and the City’s performance under the Plan. Those primary objectives are decent housing, suitable livi ng environments, and expanded economic opportunities for low - and moderate-income persons. The CDBG regulations require that each activity meet one of the following national objectives:
• Benefit low- and moderate-income persons;
• Aid in the prevention or elimination of slums and blight; or • Meet other community development needs having a particular urgency (usually the result of a natural disaster).

HOME Investment Partnerships (HOME)
The Cranston-Gonzalez National Affordable Housing Act of 1990 created the HOME program to expand the supply of affordable housing for low - and moderate-income households. Often used in partnership with local nonprofit housing development organizations, the HOME program can support a wide range of affordable housing activities, including building, buying, and/or rehabilitating rental and ownership housing or providing direct rental assistance to low - and moderate-income people.

For the 2024 program year, the City will receive an estimated $1,400,000 of CDBG funds, $4,000 of CDBG Program Income, unprogrammed prior year funds of $ 970,881 and an estimated $540,000 of HOME funds , and $ 1,539,385 of unprogrammed funds. An estimated total of $4,454,266 is available for the CDBG and HOME activities listed below.

City of Palmdale - 2 - 2024 Draft Annual Action Plan

2024 CDBG Activities
Fair Housing Services (Admin) $ 38,620
South Antelope Valley Emergency Services (SAVES) 210,600 Section 108 Debt Service 347,518
ADA Sidewalk Gap Closure and Ramps 650,000
ADA Improvements 500,000
Infrastructure/Affordable Housing 386,763
CDBG Program Administration $241,380
Total $2,374,881
2024 HOME Activities
Tenant-Based Rental Assistance $ 175,000
Affordable Housing Development (CHDO set-aside) 81,000
Affordable Housing Development 1,769,385
HOME Program Administration (including PA) 54,000
Total $2,079,385

2. Summarize the objectives and outcomes identified in the Plan The 2024-2025 Annual Action Plan addresses the priority needs and goals established in the FY 2020-24 Consolidated Plan. The eight priority needs listed below are established as part of this Plan:
• Increase the supply of affordable housing
• Provide rental assistance to low-income households
• Ensure equal access to housing opportunities
• Prevent and eliminate homelessness
• Provide public services for residents, including those with special needs • Improve public facilities and infrastructure
• Preserve the supply of affordable housing
• Expand economic opportunity for low-income residents

3. Evaluation of past performance
City of Palmdale - 3 - 2024 Draft Annual Action Plan

The investment of HUD resources during the 2023 Program Year resulted in measurable accomplishments that contributed to positive outcomes for Palmdale residents. Together with other federal, state and local investments, HUD resources allowed the City of Palmdale and its partners to provide:
• Fair housing services to Palmdale residents
• Homelessness prevention and assistance
• Tenant-based rental assistance to extremely-low-income seniors • Public Facility Improvements
• Support affordable housing developments

4. Summary of Citizen Participation Process and consultation process A public notice was published in the Antelope Valley Press on March 30, 2024, to inform residents that the Draft 2024-2025 Action Plan was available for review and comments. Citizens were advised that copies of the aforementioned documents were available for review on the City’s website from March 30, 2024, to May 1, 2024, and the documents would be available in hardcopy format at the Neighborhood Services Department office, the Palmdale Public Library, and the Administration Building.

The public notice invited citizens to provide written comments before 2:00 p.m. on May 1 , 2024, and also during the public hearing on May 1, 2024. The public notice also invited citizens submit comments in advance of the meeting.

5. Summary of public comments
To be completed after the public hearing scheduled for May 1, 2024.

6. Summary of comments or views not accepted and the reasons for not accepting them To be completed after the public hearing scheduled for May 1, 2024.

City of Palmdale - 4 - 2024 Draft Annual Action Plan

PR-05 Lead & Responsible Agencies – 91.200(b)

1. Agency/entity responsible for preparing/administering the Consolidated Plan The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Agency Role Name Department/Agency
CDBG and HOME Administrator City of Palmdale Neighborhood Services Table 1 - Responsible Agencies
Narrative
The City of Palmdale Department of Neighborhood Services is the lead agency responsible for the administration of the CDBG and HOME programs. The Department of Neighborhood Services contracted with LDM Associates, Inc. to review the 2024-2025 Annual Action Plan.

In the development of the Consolidated Plan, the City developed and implemented a comprehensive citizen participation and consultation process and conducted a needs assessment and market analysis to identify levels of relative need regarding affordable housing, homelessness, speci al needs, and community development. This information was gathered through consultation with public officials and local agencies, public outreach and community meetings, review of demographic and economic data, and housing market analysis.

In the implementation of the 2024-2025 Annual Action Plan, the Department of Neighborhood Services shall be responsible for all grants planning, management and monitoring duties necessary to comply with HUD regulations and City policy.

Consolidated Plan Public Contact Information
Department of Neighborhood Services / Housing Division
Attn: Becky Bartlett, Management Analyst II
38250 Sierra Highway, 2nd Floor
Palmdale, CA 93550
(661) 267-5548

City of Palmdale - 5 - 2024 Draft Annual Action Plan

AP-10 Consultation – 91.100, 91.200(b), 91.215(l)

1. Introduction
The City of Palmdale consulted with representatives from multiple agencies, groups, and organizations involved in the development of affordable housing, creation of job opportunities for low- and moderate-income residents, and/or provision of services to c hildren, elderly persons, persons with disabilities, persons with HIV/AIDS and their families, and homeless persons. To facilitate this consultation, the City solicited feedback through the following methods:
• Stakeholder surveys
• Individual stakeholder consultations
• Community meetings
• Public hearings
• Receipt of written comments
To gather the greatest breadth and depth of information, the City consulted with a wide variety of agencies, groups and organizations concerning the housing, community and economic development needs of the community as part of the Consolidated Plan process . Each of the agencies, groups or organizations consulted is represented below. The input received from these consultation partners helped establish and inform the objectives and goals described in the Strategic Plan.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(I)).

The City recognizes the importance of careful coordination and alignment among various service providers to maximize the effectiveness of the CDBG and HOME programs. As a result, during the development of this Consolidated Plan, the City consulted closely with organizations that provide assisted housing, health services and other community -focused programs. Outreach efforts included surveys including specific questions associated with coordination, invitations to community meetings and follow-up in-person interviews where appropriate.

The City further recognizes the importance of continued coordination and alignment during the upcoming five-year planning period with these organizations and agencies. The City will strengthen relationships and alignment among these organizations in the implementation of the NOFA process for CDBG and HOME funds and through technical assistance provided to subrecipients of CDBG and HOME funds each year.

City of Palmdale - 6 - 2024 Draft Annual Action Plan

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.

Los Angeles County’s homeless system of care is comprised of a network of public, private, faith-based, for- profit, and non -profit service providers who utilize several federal, state and local resources to provide services for homeless people. The region’s municipalities, including the City of Palmdale, also provide resources for services that assist the homeless and those at risk of becoming homeless. The County’s non- profit community plays a key role in the current Continuum of Care (CoC) system. Hundreds of agencies throughout the County provide programs ranging fr om feeding the homeless on the street to creating permanent supportive housing opportunities. These services are available to homeless families with children, and single men and women.

The Los Angeles Homeless Services Authority (LAHSA) is the lead agency for the CoC in Los Angeles County. LAHSA guides the development of homeless strategies and the implementation of programs to end homelessness throughout the region. The City provided a detailed questionnaire to LAHSA to identify the CoC’s perceived needs in the county and its objectives to address the needs of different homeless persons populations, specifically chronically homeless families and individuals, families with children, veter ans, unaccompanied youth, and persons at risk of homelessness. Following the delivery and response to this questionnaire, the City followed up with the CoC to clarify existing needs and objectives and understand opportunities for collaboration and coordination during the 5-year planning process.

Coordination to address homelessness — including chronically homeless individuals and families, families with children, veterans, and unaccompanied youth — is guided by the CoC. All service providers within the CoC can refer people with varying needs to the appropriate service provider(s) in their area.

Describe consultation with the Continuum(s) of Care that serves the jurisdiction’s area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies and procedures for the administration of HMIS.

The City of Palmdale does not receive Emergency Solutions Grant (ESG) funds, but will continue to support the efforts of LAHSA and the County of Los Angeles in their development of performance standards for the County’s ESG program that provide a measure to evaluate each subrecipients’ effectiveness, such as how well the service provider succeeds at 1) targeting those who need the assistance most; 2) reducing the number of people living on the streets or emergency shelters; 3) shortening the time people spend homeless; and 4) reducing each program participant’s housing barriers or housing stability risks.

City of Palmdale - 7 - 2024 Draft Annual Action Plan

Describe Agencies, groups, organizations, and others who participated in the process and describe the jurisdictions consultations with housing, social service agencies and other entities 1 Agency/Group/Organization Los Angeles County Child Protective Services Agency/Group/Organization Type
Child Welfare Agency
Services-Children
Other government – Local
What section of the Plan was
addressed by Consultation?
Non-Homeless Special Needs
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
2 Agency/Group/Organization Los Angeles County Health Department Agency/Group/Organization Type
Services-Health
Health Agency
Mental Health Agency/Facility
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
Lead-Based Paint Strategy
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
3 Agency/Group/Organization AMCAL Multi-Housing, Inc.

How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
5 Agency/Group/Organization National Community Renaissance Dev Corp Agency/Group/Organization Type Housing
What section of the Plan was
addressed by Consultation?
Housing Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
6 Agency/Group/Organization The Michaels Organization
Agency/Group/Organization Type Housing
What section of the Plan was
addressed by Consultation?
Housing Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
7 Agency/Group/Organization America’s Job Center
Agency/Group/Organization Type Services-Employment
What section of the Plan was
addressed by Consultation? Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 9 - 2024 Draft Annual Action Plan

8 Agency/Group/Organization Advancing Communities Together Inc.

Agency/Group/Organization Type Housing
What section of the Plan was
addressed by Consultation?
Housing Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
9 Agency/Group/Organization AHF Healthcare Center – Antelope Valley Agency/Group/Organization Type Services – HIV/AIDS
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
10 Agency/Group/Organization Federal Emergency Management Agency (FEMA) Agency/Group/Organization Type Emergency Management Agency Floodplain Management Agency
What section of the Plan was
addressed by Consultation?
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
11 Agency/Group/Organization City of Palmdale Information Technology Agency/Group/Organization Type Local Government
What section of the Plan was
addressed by Consultation?
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 10 - 2024 Draft Annual Action Plan

12 Agency/Group/Organization Los Angeles County Development Authority Agency/Group/Organization Type
Housing
Services – Housing
PHA
What section of the Plan was
addressed by Consultation?
Housing Need Assessment
Public Housing Needs
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
In-Person Meeting
Conference Calls
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
13 Agency/Group/Organization Housing Authority of the City of Palmdale Agency/Group/Organization Type Housing
Services – Housing
What section of the Plan was
addressed by Consultation?
Housing Need Assessment
Public Housing Needs
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
In-Person Meeting
Conference Calls
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
14 Agency/Group/Organization Hispanic Chamber
Agency/Group/Organization Type Business Leader
What section of the Plan was
addressed by Consultation? Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
15 Agency/Group/Organization California Department of Technology Agency/Group/Organization Type Broadband Advocates
What section of the Plan was
addressed by Consultation? Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
16 Agency/Group/Organization HighSpeedInternet.com
Agency/Group/Organization Type Broadband ISP
City of Palmdale - 11 - 2024 Draft Annual Action Plan

What section of the Plan was
addressed by Consultation? Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
17 Agency/Group/Organization Children’s Bureau
Agency/Group/Organization Type Services-Children
Foster Care Agency/Facility
What section of the Plan was
addressed by Consultation?
Public Services
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
18 Agency/Group/Organization Kaiser Permanente
Agency/Group/Organization Type Health Agency
Services-Health
What section of the Plan was
addressed by Consultation?
Market Analysis
Lead-Based Paint Strategy
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
19 Agency/Group/Organization Antelope Valley Domestic Violence Council dba Valley Oasis
Agency/Group/Organization Type Services-Victims of Domestic Violence Services-Homelessness
What section of the Plan was
addressed by Consultation?
Anti-Poverty Strategy
Non-Homeless Special Needs
Housing Need Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meeting
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
20 Agency/Group/Organization Penny Lane
Agency/Group/Organization Type Services-Unaccompanied Youth What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
City of Palmdale - 12 - 2024 Draft Annual Action Plan

How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
21 Agency/Group/Organization Vets4Veterans
Agency/Group/Organization Type Services-Homeless Veterans What section of the Plan was
addressed by Consultation?
Needs Assessment
Homelessness Needs – Veterans
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
22 Agency/Group/Organization Desert Haven Enterprises
Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
23 Agency/Group/Organization Palmdale Chamber
Agency/Group/Organization Type Business Leader
What section of the Plan was
addressed by Consultation? Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 13 - 2024 Draft Annual Action Plan

24 Agency/Group/Organization Palmdale School District
Agency/Group/Organization Type
Services-Children
Services-Education
Other government – Local
What section of the Plan was
addressed by Consultation?
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
25 Agency/Group/Organization Antelope Valley Union High School District Agency/Group/Organization Type
Services-Children
Services-Education
Other government – Local
What section of the Plan was
addressed by Consultation?
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
26 Agency/Group/Organization L.A. County Board of Supervisors District 5 Agency/Group/Organization Type Other Government-County
What section of the Plan was
addressed by Consultation?
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
27 Agency/Group/Organization Legacy Commons (City of Palmdale) Agency/Group/Organization Type Services-Elderly
What section of the Plan was
addressed by Consultation?
Non-housing Community Development Strategy
Non-Homeless Special Needs
Public Services
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meeting
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 14 - 2024 Draft Annual Action Plan

28 Agency/Group/Organization City of Palmdale Economic Development Agency/Group/Organization Type Services-Employment
What section of the Plan was
addressed by Consultation?
Market Analysis
Economic Development
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Conference Calls
In-Person Meetings
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
29 Agency/Group/Organization Mental Health America, Antelope Valley Agency/Group/Organization Type Mental Health Agency/Facility Services-Homeless Veterans
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
Homelessness Strategy
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meeting
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
30 Agency/Group/Organization Housing Rights Center
Agency/Group/Organization Type Services-Fair Housing
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meetings
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
31 Agency/Group/Organization Antelope Valley Community Clinic Agency/Group/Organization Type Services-Health
What section of the Plan was
addressed by Consultation? Needs Assessment
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 15 - 2024 Draft Annual Action Plan

32 Agency/Group/Organization Palmdale Regional Medical Center Agency/Group/Organization Type Health Agency
What section of the Plan was
addressed by Consultation?
Market Analysis
Lead-Based Paint Strategy
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?

Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
33 Agency/Group/Organization South Antelope Valley Emergency Services (SAVES) Agency/Group/Organization Type Services-homeless
What section of the Plan was
addressed by Consultation?
Homelessness Strategy
Homeless Needs – Chronically homeless
Homeless Needs – Families with children
Homelessness Needs – Veterans
Homelessness Needs – Unaccompanied youth
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meetings
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
34 Agency/Group/Organization Los Angeles County Regional Broadband Consortium Agency/Group/Organization Type Broadband Advocates
What section of the Plan was
addressed by Consultation? Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 16 - 2024 Draft Annual Action Plan

35 Agency/Group/Organization Los Angeles Homeless Services Authority (LAHSA) Agency/Group/Organization Type Continuum of Care – Information and Referral What section of the Plan was
addressed by Consultation?

Homelessness Strategy
Homeless Needs – Chronically homeless
Homeless Needs – Families with children
Homelessness Needs – Veterans
Homelessness Needs – Unaccompanied youth
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Conference Calls
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
36 Agency/Group/Organization North LA County Regional Center Agency/Group/Organization Type Services-Disabilities
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
Non-Homeless Special Needs
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
37 Agency/Group/Organization Victory Outreach
Agency/Group/Organization Type Services-homeless
What section of the Plan was
addressed by Consultation?
Homelessness Strategy
Homeless Needs – Chronically homeless
Homeless Needs – Families with children
Homelessness Needs – Veterans
Homelessness Needs – Unaccompanied youth
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meeting
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 17 - 2024 Draft Annual Action Plan

38 Agency/Group/Organization Homeless Solutions Access Center Agency/Group/Organization Type Services-homeless
What section of the Plan was
addressed by Consultation?
Homelessness Strategy
Homeless Needs – Chronically homeless
Homeless Needs – Families with children
Homelessness Needs – Veterans
Homelessness Needs – Unaccompanied youth
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?

Survey
In-Person Meeting
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
39 Agency/Group/Organization Neighborhood Legal Services of Los Angeles County Agency/Group/Organization Type Services-Fair Housing
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meetings
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
40 Agency/Group/Organization Salvation Army-Palmdale
Agency/Group/Organization Type Services-Homeless
What section of the Plan was
addressed by Consultation?
Homelessness Strategy
Homeless Needs – Chronically homeless
Homelessness Needs – Veterans
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 18 - 2024 Draft Annual Action Plan

41 Agency/Group/Organization Westside Union School District Agency/Group/Organization Type
Services-Children
Services-Education
Other government – Local
What section of the Plan was
addressed by Consultation?
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
42 Agency/Group/Organization City of Palmdale (Development Services) Agency/Group/Organization Type Planning Organization
Local Government
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meeting
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
43 Agency/Group/Organization City of Palmdale (Neighborhood Services) Agency/Group/Organization Type Local Government
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meeting
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
44 Agency/Group/Organization City of Palmdale (Public Works) Agency/Group/Organization Type Local Government
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meeting
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 19 - 2024 Draft Annual Action Plan

45 Agency/Group/Organization City of Palmdale (Recreation and Culture) Agency/Group/Organization Type Local Government
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
In-Person Meeting
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
46 Agency/Group/Organization The Trust for Public Land
Agency/Group/Organization Type Public Land Agency
What section of the Plan was
addressed by Consultation? Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
47 Agency/Group/Organization Southern California Association of Governments Agency/Group/Organization Type Planning Organization
What section of the Plan was
addressed by Consultation?
Housing Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
48 Agency/Group/Organization State Assembly 36th District Agency/Group/Organization Type State Government
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.

City of Palmdale - 20 - 2024 Draft Annual Action Plan

49 Agency/Group/Organization State Senate 21st Senate District Agency/Group/Organization Type State Government
What section of the Plan was
addressed by Consultation?
Needs Assessment
Market Analysis
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Survey
This consultation provided the stakeholder an
opportunity to actively participate in the planning
effort. The City requested input concerning the topics
highlighted above from this stakeholder.
50 Agency/Group/Organization U.S. Department of Housing and Urban Development Agency/Group/Organization Type Federal Government
What section of the Plan was
addressed by Consultation? All
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
Consulted with HUD concerning Consolidated Plan,
CDBG, and HOME requirements.
51 Agency/Group/Organization City of Palmdale City Council Agency/Group/Organization Type Local Government
Civic Leaders
What section of the Plan was
addressed by Consultation? All
How was the
Agency/Group/Organization consulted
and what are the anticipated outcomes
of the consultation or areas for
improved coordination?
In-Person Meeting
Public Hearings for the Consolidated Plan
Table 2 – Agencies, groups, organizations who participated Identify any Agency Types not consulted and provide rationale for not consulting The City maintains a list of agencies, organizations and other stakeholders that have expressed an interest in City’s CDBG and HOME programs and invited representatives from each entity to participate at multiple points in the planning process. All agencies were strongly encouraged to attend meetings and participate in surveys. Any agency or organization that was not consulted and would like to be included in the City’s list of stakeholders, the agency or organization may contact the Department of Neighborh ood Services at (661) 267-5126.

City of Palmdale - 21 - 2024 Draft Annual Action Plan

Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
Continuum of
Care
Los Angeles Homeless Services
Authority (LAHSA)
The Public Services including Homelessness goal
of the Strategic Plan is consistent with the County
of Los Angeles strategies to address
homelessness.
2021-2029
Housing
Element
City of Palmdale Economic and
Community Development
Department – Planning Division
The housing goals included in the Strategic Plan
are consistent with the City of Palmdale Housing
Element.

Table 3 – Other local / regional / federal planning efforts Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l)) In the development of the Consolidated Plan, the City afforded the following other public entities with the opportunity to provide input on the Consolidated Plan and welcomes their input concerning the future implementation of projects to address the ten Strategic Plan goals:
• City of Lancaster
• City of Santa Clarita
• Los Angeles County Development Authority
• State of California Department of Housing and Community Development

City of Palmdale - 22 - 2024 Draft Annual Action Plan

AP-12 Participation – 91.105, 91.2001. Summary of citizen participation process/Efforts made to broaden citizen participation In accordance with the City of Palmdale’s Citizen Participation Plan, the City invites residents to actively contribute to the development of the Annual Action Plan. The City conducted a public hearing on Decembre 6, 2023, during the development of the Action Plan to gather comment and feedback on potential activities. The City also published the Action Plan for public review for a 30 -day comment period and will facilitate a second comment period on May 5, 2024, to approve the Action Plan.

Citizen Participation Outreach
Sort
Order
Mode of
Outreach
Target of
Outreach
Summary of
response/attendance
Summary of
comments
received
Summary of comments
not accepted
and reasons
URL (If
applicable)
1 Public
Hearing
Non-
targeted/
broad
community
A public meeting/hearing was held before
the City Council on Dec 6, 2023, to receive
public comments on the housing,
community and economic development
needs of the City in anticipation of the 2024
Annual Action Plan
Homeless
shelter, flood
control basin,
Grocery store
close to
Courson.

Consider mental
health and
suicide
prevention
services
None.
2 30-day
comment
period
Non-
targeted/
broad
community
The City of Palmdale published a notice of
public hearing and comment period in the
Antelope Valley Press and at offices at City
Hall on March 30, 2024 – inviting the public
to review and provide comment on the draft
Action Plan and/ or attend a public hearing
on May 1, 2024.

3 Public
Hearing
Non-
targeted/
broad
community
A public meeting/hearing was held before
the City Council on May 1, 2024, to receive
public comments on the 2024 Annual Action
Plan and for City Council approval of the
2024-2025 Annual Action Plan.

Table 4 – Citizen Participation Outreach
City of Palmdale - 23 - 2024 Draft Annual Action Plan

Expected Resources
AP-15 Expected Resources – 91.220(c)(1,2)
Introduction
The Strategic Plan goals included in this Consolidated Plan are based on resources that are reasonably anticipated to be available to the City from federal, state, local and private sources from July 1, 2024, through June 30, 2025 . The actual resources available to support activities during the implementation of this Consolidated Plan may vary significantly due to factors outside of the City’s control. For example, HUD formula grant allocations are subject to change each year based on a number of factors such as the amount of the national appropriation, changes in ACS population data applied to the CPD grant formulas, statutory changes to the CPD grant formulas, the addition or removal of entitlements receiving a particular CPD grant and the availability of reallocated funds. Additionally, state, local, and private resources will vary significantly depending on economic conditions.

The funding reflected in the Annual Action Plan are estimated amounts. Should the final allocation amount be different from the estimate, proposed activity budgets will be adjusted in the following manners:

2024 CDBG Activities:

Fair Housing Services and Section 108 Debt Service will remain at the estimated budgets. The other activities will be adjusted proportionately to reflect either an increase or decrease in the allocation.

2024 HOME Activities:

Tenant-Based Rental Assistance will remain at the estimated budget. The other activities will be adjusted proportionately to reflect either an increase or decrease in the allocation.

City of Palmdale - 24 - 2024 Draft Annual Action Plan

Anticipated Resources
Program Source of
Funds Uses of Funds
Expected Amount Available Year 5 Expected
Amount
Available
Remainder of
ConPlan
$
Narrative
Description
Annual
Allocation: $
Program
Income: $
Prior Year
Resources:
$
Total:
$
CDBG Public -
federal
Acquisition
Admin and
Planning
Economic
Development
Housing
Public
Improvements
Public Services
$1,400,000 $4,000 $970,881 $2,374,881 $0
Based on level
funding in
subsequent
years.

HOME Public -
federal
Admin and
Planning
Housing
Public Services
$540,000 $0 $1,539,385 $2,079,385 $0
Based on level
funding in
subsequent
years.

Table 5 - Expected Resources – Priority Table

City of Palmdale - 25 - 2024 Draft Annual Action Plan

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied To address housing and community development needs in Palmdale, the City will leverage its CDBG and HOME entitlement grants with a variety of funding resources in order to maximize the effectiveness of available funds. The City and its development partners will continue to seek new opportunities to leverage federal funds, such as the Low-Income Housing Tax Credit program and other State of California resources made available as a result of recent State laws that took effect in 2019 and 2020.

Federal Resources
• Continuum of Care (CoC) Program
• HUD Veterans Affairs supportive Housing (HUD-VASH)
• Supportive Housing for the Elderly (Section 202)
• Supportive Housing for Persons with Disabilities (Section 811) • Housing Opportunities for Persons with AIDS (HOPWA)
• YouthBuild
• Federal Low-Income Housing Tax Credit Program
• Emergency Food and Shelter Program (EFSP)
State Resources
• State Low-Income Housing Tax Credit Program
• Building Equity and Growth in Neighborhoods Program (BEGIN) • CalHome Program
• Multifamily Housing Program (MHP)
• Housing Related Parks Grant
• CalHFA Single and Multi-Family Program
• Mental Health Service Act (MHSA) Funding
Local Resources
• Los Angeles County CoC
• Los Angeles County Development Authority (LACDA)
• Southern California Home Financing Authority (SCHFA)
Private Resources
• Federal Home Loan Bank Affordable Housing Program (AHP) • Community Reinvestment Act Programs
• United Way Funding
• Private Contributions
City of Palmdale - 26 - 2024 Draft Annual Action Plan

HOME Matching Requirements
HUD requires HOME recipients (PJs) to match 25 percent of their HOME annual allocation. In accordance with 24 CFR 92.222, PJs satisfying the distress criteria established by the HOME Program regulations are provided a match reduction. The match reductions are granted due to fiscal distress, severe fiscal distress, and Presidential disaster declarations. For those PJs with both fiscal distress and Presidential disaster match reductions, the PJ may take the higher match reduction for the current fiscal year.

When a local jurisdiction meets one of the distress criteria, it is determined to be in fiscal distress and receives a 50 percent reduction of match. If a local jurisdiction satisfies both of the distress criteria, it is determined to be in severe fiscal distress and receives a 100 percent reduction of match. The City of Palmdale has received a 100 percent match reduction from HUD, and therefore, is required to match 0 percent of HOME Funds using non-federal funds.

The City of Palmdale leverages HOME funds with other local and private non-federal resources even though it has received a 100 percent match reduction from the 25 percent matching requirement. Any funds that are used in a HOME activity in excess of the required match will be documented by the City and reported to HUD as part of the Consolidated Annual Performance and Evaluation Report (CAPER) each year.

If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan
In 2011, the elimination of local Redevelopment Agencies by the State of California resulted in the loss of a crucial resource for the development and preservation of affordable housing. This negatively impacted affordable housing and residential investmen t. While there are mechanisms whereby certain affordable housing assets tied to the former Redevelopment Agencies may be utilized today, the available resources for affordable housing are scarce.

Land or property necessary to address the needs identified in the Consolidated Plan would need to be acquired using HUD grant funds or other resources.

Discussion
Assuming continued level funding of the CDBG and HOME programs, the City expects to spend several million dollars of CDBG and HOME funds on projects that provide affordable housing to low-income residents between July 1, 2020, and June 30, 2025. It is anticipated that approximately $2.0 million of this will be spent on affordable housing development and preservation. Based on prior project experience, we anticipate that these funds will leverage other public and private funding, including but not limited to:
• Low-Income Housing Tax Credits
• Project-based Section 8 certificates
• Project financing at favorable interest rates from local lenders • Private contributions to local CHDOs
• Private market real estate investments
City of Palmdale - 27 - 2024 Draft Annual Action Plan

• Market rate housing that subsidizes affordable units on the same development site Assuming continued level funding of the CDBG program, the City expects to spend approximately $3.3 million of CDBG funds on public facilities and infrastructure improvement activities that promote a suitable living environment between July 2020 and June 2025. Anticipated projects include:
• Public Facilities Improvements (including ADA)
• Infrastructure Improvements (affordable housing)
• Section 108 Debt Service for prior Public Facilities

City of Palmdale - 28 - 2024 Draft Annual Action Plan

Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
2020-2024 Strategic Plan Goals
Goal Name Time Period Category Geographic
Area Needs Addressed Funding Goal Outcome
Indicator
Goal 1
Affordable
Housing
2020 - 2024 Affordable
Housing Citywide
• Provide rental assistance
to low-income households
• Increase the supply of
affordable housing
• Preserve the supply of
affordable housing
HOME:
$1,769,385

30 Households
Assisted with
Rental
Assistance

MF New
Construction
Activities: TBD
Description: Provide short- and medium-term rental assistance to individuals and families experiencing economic distress and at-risk of homelessness. In partnership with housing developers, leverage HOME and CDBG funds in support of the development or creation of rental housing opportunities that are affordable to households earning less than 30, 50, or 60 percent of Area Median Income, including units for individuals, families, persons with special needs, and persons experiencing homelessness or at-risk of homelessness.

Subject to funding availability, design and implement programs for the preservation of the physical and functional integrity of existing housing units occupied by low- and moderate-income households. Include, where appropriate, incentives for energy efficiency and conservation measures to increase sustainability and reduce monthly household utility costs to promote greater affordability.

Goal 2
Fair Housing
Services
2020 - 2024 Affordable
Housing Citywide • Ensure equal access to
housing opportunities CDBG: $38,620

300 Persons
Assisted
Description: Fulfill the HUD regulatory mandate to affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination and landlord-tenant mediation services.

City of Palmdale - 29 - 2024 Draft Annual Action Plan

2020-2024 Strategic Plan Goals
Goal Name Time Period Category Geographic
Area Needs Addressed Funding Goal Outcome
Indicator
Goal 3
Public Services
including
Homelessness
2020 - 2024
Homelessness

Non-Housing
Community
Dev.

Citywide
• Prevent and eliminate
homelessness
• Provide public services for
residents, including those
with special needs
CDBG: $210,000

6,000 Persons
Assisted
Description: Provide public services designed to support a continuum of services in the Antelope Valley to prevent and eliminate homelessness including but not limited to emergency services, food and necessities of life, homelessness prevention programs, case management, and temporary housing assistance. Provide public services for youth and seniors including but not limited to those concerned with nutrition, education, health, transportation, and recreation, including programs that incorporate the creation of public art as a focus of the activity to foster a more suitable living environment. Provide public services to persons with special needs including but not limited to those concerned with disabilities, domestic violence, substance abuse and HIV/AIDS.

Goal 4
Public
Facilities and
Improvements
2020 - 2024
Non-Housing
Community
Dev.

Citywide
• Improve public facilities
and infrastructure
• Section 108 Loan Debt
Service and Trustee Fees
CDBG:
$1,884,881

9,571 Persons
Assisted
Description: Improve public facilities and infrastructure to benefit low- and moderate-income people or those presumed under HUD regulations to be low- and moderate-income such as elderly people and disabled adults as well as residents of low- and moderate-income housing. This strategy includes the installation of infrastructure in support of affordable housing. Public improvements undertaken with CDBG funds may incorporate public art into projects that otherwise meet a National Objective of the CDBG program. This strategy also includes current Section 108 loan debt service fees and trustee fees.

City of Palmdale - 30 - 2024 Draft Annual Action Plan

2020-2024 Strategic Plan Goals
Goal Name Time Period Category Geographic
Area Needs Addressed Funding Goal Outcome
Indicator
Goal 5
Economic
Opportunity
2020 - 2024
Non-Housing
Community
Dev.

Citywide
• Expand economic
opportunity for low-income
residents and small
business owners
$0

Description: Expand economic opportunity for low-income residents and business owners through technical assistance, small business loans/grants, and other forms of assistance to facilitate recovery from the economic disruption of early 2020. This includes activities focused on job creation/retention and employment training, in addition to financial and technical assistance to businesses including microenterprises. This goal does not have activities associated with it for FY2024.

Goal 6
Planning and
Administration
2020 - 2024 All Citywide All CDBG: $241,380
HOME: $54,000

Other: 1
Description: Provide for the timely and compliant administration of the CDBG and HOME programs in accordance with HUD policy and federal regulations. Provide for housing, transportation, environmental and other studies or plans necessary to ensure sustainable long-term growth that includes decent housing and a suitable living environment for low- and moderate-income residents. CDBG funds will also be used to make annual repayment on Section 108 loan.

Table 6 – Goals Summary
Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2)
In accordance with Goal 1 above, the City anticipates serving 30 extremely-low- or low-income households with tenant-based rental assistance. HOME-assisted units shall meet the requirements of 24 CFR 92.254.

City of Palmdale - 31 - 2024 Draft Annual Action Plan

AP-35 Projects – 91.220(d)
Introduction
To address the high priority needs identified in the Strategic Plan to the Consolidated Plan, the City of Palmdale will invest CDBG and HOME funds in projects that will provide short- and medium-term tenant-based rental assistance, increase the supply of affordable housing, provide fair housing services, provide public services for homeless residents and residents at -risk of homelessness, improve public facilities and infrastruct ure, and expand economic opportunity for low -income residents and small business owners. Together, these projects will address the housing, community, and economic development needs of Palmdale residents-particularly those residents residing in low- and moderate-income areas.

2024 CDBG Activities:

2024 HOME Activities:

Tenant-Based Rental Assistance will remain at the estimated budget. The other activities will be adjusted proportionately to reflect either an increase or decrease for the allocation.

City of Palmdale - 32 - 2024 Draft Annual Action Plan

Projects
# Project Name
1 Tenant-Based Rental Assistance
2 Affordable Rental Housing
3 Affordable Rental Housing (CHDO)
4 Fair Housing Services
5 South Antelope Valley Emergency Services
(SAVES)
6 Section 108 Loan Debt Services & Trustee
Fees
7 Public Facilities and Improvements
8 Planning and Administration
Table 7 - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs Based on the Strategic Plan, the City is allocating 100 percent of its CDBG funds (excluding CDBG Section 108 Debt Service & Trustee Fees funds and CDBG administration) and HOME funds (excluding HOME administration) for program year 2024 to projects and activities that benefit low- and moderate-income people. Due to the nature of the projects and activities to be undertaken, investments in all projects concerning Public Facilities and Infrastructure Improvements, benefit low- and moderate-income limited clientele or housing preservation, affordability and development are available citywide.

The primary obstacles to meeting the underserved needs of low - and moderate- income people include lack of funding from federal, state, and other local sources, the high cost of housing that is not affordable to low -income people and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the
2024-2025 Annual Action Plan in projects that will be used to provide rental assistance, increase the supply of affordable housing, ensure equal access to housing opportunities, provide for public facilities and infrastructure improvements, promote economic opportunity for low- income residents and small business owners, and provide public services to low - and moderate- income residents to prevent and eliminate homelessness.

City of Palmdale - 33 - 2024 Draft Annual Action Plan

AP-38 Project Summary
Project Summary Information

1 Project Name Tenant-Based Rental Assistance
Target Area Citywide
Goals Supported Affordable Housing
Needs Addressed Provide rental assistance to low-income households Funding HOME: $175,000
Description Provide short- and medium-term Tenant-Based Rental Assistance to low-income households.

Target Date 6/30/2024
Estimate the number and type of
families that will benefit from the
proposed activities
Approximately 30 low-income seniors will benefit from the proposed activity.

Location Description Citywide
Planned Activities Tenant-Based Rental Assistance

City of Palmdale - 34 - 2024 Draft Annual Action Plan

2 Project Name Affordable Rental Housing Development
Target Area Citywide
Goals Supported Affordable Housing
Needs Addressed Increase the supply of affordable housing Funding HOME: $1,769,385
Description TBD:

Target Date TBD
Estimate the number and type of
families that will benefit from the
proposed activities
TBD
Location Description Citywide
Planned Activities Affordable Housing

City of Palmdale - 35 - 2024 Draft Annual Action Plan

3 Project Name Affordable Rental Housing (CHDO)
Target Area Citywide
Goals Supported Affordable Housing
Needs Addressed Increase the supply of affordable housing Funding HOME: $81,000 (CHDO set-aside)
Description TBD: The City will conduct a public hearing to amend the Action Plan once a suitable project is identified
Target Date 6/30/2024
Estimate the number and type of
families that will benefit from the
proposed activities
TBD
Location Description Citywide
Planned Activities TBD: The City will conduct a public hearing to amend the Action Plan once a suitable project is identified

City of Palmdale - 36 - 2024 Draft Annual Action Plan

4 Project Name Fair Housing Services
Target Area Citywide
Goals Supported Fair Housing Services
Needs Addressed Ensure equal access to housing opportunities Funding CDBG: $38,620
Description Fulfill the HUD regulatory mandate to affirmatively further fair housing choice through the provision of fair housing education, counseling, anti-discrimination, and landlord-tenant mediation services.

Target Date 6/30/2024
Estimate the number and type
of families that will benefit from
the proposed activities
Approximately 300 people will benefit from the proposed activity.

Location Description Citywide
Planned Activities Housing Rights Center: Fair Housing Services

City of Palmdale - 37 - 2024 Draft Annual Action Plan

5 Project Name South Antelope Valley Emergency Services (SAVES) Target Area Citywide
Goals Supported Public services including homelessness
Needs Addressed Prevent and eliminate homelessness
Provide public services for residents, including those with special needs
Funding CDBG: $210,600
Description Support a continuum of services in the Antelope Valley to prevent and eliminate homelessness including but not limited to emergency services, homeless prevention programs, case management and bridge housing.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the proposed
activities
Approximately 9,000 people will benefit from the proposed activities.

Location Description Citywide
Planned Activities South Antelope Valley Emergency Services

City of Palmdale - 38 - 2024 Draft Annual Action Plan

6 Project Name
Target Area Citywide
Goals Supported Public Facilities and Improvements
Needs Addressed Not Applicable
Funding CDBG: $347,518
Description Annual debt service for Section 108 Loan Guarantee.

Target Date 6/30/2024
Estimate the number and type
of families that will benefit from
the proposed activities
Not Applicable
Location Description Not Applicable
Planned Activities Section 108 Debt Service $347,518

City of Palmdale - 39 - 2024 Draft Annual Action Plan

7 Project Name Public Facilities and Improvements
Target Area Low- and Moderate-Income Areas
Goals Supported Public Facilities and Improvements
Needs Addressed Improve public facilities and Infrastructure Funding CDBG: $1,536,763
Description Improve City of Palmdale public facilities and infrastructure to benefit low- and moderate-income people or those presumed under HUD regulations to be low- and moderate-income such as elderly people and disabled adults as well as residents of low- and moderate-income housing as well as conduct ADA improvements to existing city public facilities and spaces.

Infrastructure for affordable housing.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the proposed
activities
Approximately 9,571 people will benefit from the proposed activities.

Location Description Activities will be conducted in areas that qualify as low- or moderate-income areas
Planned Activities ADA Sidewalk, gap closure and ramps, ADA Improvements, Affordable housing and infrastructure

City of Palmdale - 40 - 2024 Draft Annual Action Plan

8 Project Name Planning and Administration
Target Area Citywide
Goals Supported All
Needs Addressed All
Funding CDBG: $241,380
HOME: $54,000
Description This project provides for the administration of the CDBG and HOME programs. Funds may also be used to support
comprehensive general plan housing element updates
currently underway to comply with State law and to plan effectively for fair, affordable housing.

Target Date 6/30/2024
Estimate the number and
type of families that will
benefit from the proposed
activities
Not Applicable
Location Description Not Applicable
Planned Activities CDBG Program Administration and Planning $241.380 HOME Program Administration $54,000

City of Palmdale - 41 - 2024 Draft Annual Action Plan

AP-50 Geographic Distribution – 91.220(f)
Description of the geographic areas of the entitlement (including areas of low -income and minority concentration) where assistance will be directed
Assistance will be directed to eligible low- and moderate-income areas where applicable. These areas are comprised of low- and moderate-income Census Tract Block Groups as defined by HUD.

Residents of these areas have incomes at or below 80 percent of the area median income (AMI) based on household size for the County of Los Angeles. A total of 117,480 residents live in these Census Tract Block Groups, of which 87,805 or 75 percent are members of low - and moderate- income households according to HUD low - and moderate-income summary data available at the Census Tract Block Group level. Based on available data and mapping in the Consolidated Plan, these areas are primarily Hispanic.

Geographic Distribution
Target Area Percentage of Funds
Citywide 100%
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically For the 2024 program year, the City will invest 100% of CDBG funds (excluding administration and Section 108 debt service) which are targeted to low- and moderate-income residents.

Discussion
Based on the Strategic Plan, the City is allocating 100 percent of its CDBG funds (excluding Section 108 Debt Service, administration, and the spot blight activity) and HOME funds (excluding Administration) for program year 2024 to projects and activities that benefit low - and moderate- income people.

City of Palmdale - 42 - 2024 Draft Annual Action Plan

Affordable Housing
AP-55 Affordable Housing – 91.220(g)
Introduction
The City placed a high priority on affordable housing in the Consolidated Plan. The top three goals in the Consolidated Plan’s Strategic Plan include Affordable Housing, Fair Housing Services, and Public Services including Homelessness. These goals establish a framework to invest CDBG and HOME funds to address the affordable housing needs of the City.

Increase the Supply of Affordable Housing
Based on evaluation of 2011-2015 ACS and CHAS data, there is a high need for housing units affordable for low-income households. Of the 25,195 households earning 0-80 percent of AMI in the City, 17,537 are cost burdened households—meaning households paying more than 30 percent of their income for housing. Of the 17,537 cost burdened households, 9,699 are renters, with 5,675 earning 0 -30 percent of AMI, 2,590 earning 30-50 percent of AMI, and 1,434 earning 50-80 percent of AMI.

Of the 17,537 cost-burdened households, 9,639 are severely cost burdened households—meaning that they pay more than 50 percent of their income for housing. Of these, 5,789 are severely cost burdened renters.

Of the severely cost burdened renters, 4,770 earn 0-30 percent of AMI, 885 earn 30-50 percent of AMI, and 134 earn 50-80 percent of AMI.

Severely cost burdened renter households earning less than 80 percent of AMI are at-risk of homelessness, particularly those earning less than 50 or less than 30 percent of AMI.

Increasing the supply of housing units affordable for low -income households that are restricted for low - income households for a long term (generally 20-55 years or more) is rated as the highest priority need due to the number of severely cost burdened households in Palmdale.

Additionally, preservation of the physical and functional integrity of existing housing units occupied by low - and moderate-income households is a cost-effective way to invest limited resources to retain existing housing units that are already affordable t o low- and moderate-income households in the community. Addressing substandard housing conditions through housing preservation activities provide that all economic segments of the community have the means to ensure that their property meets local standards and that all Palmdale residents have the opportunity to live in decent housing. During the 2024 program year, the City prioritized funding for increasing the supply of affordable housing and providing rental assistance. Therefore, no rehabilitation projects are planned.

City of Palmdale - 43 - 2024 Draft Annual Action Plan

One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 30
Special-Needs 0
Total 30
Table 9 - One Year Goals for Affordable Housing by Support Requirement One Year Goals for the Number of Households Supported Through Rental Assistance 30
The Production of New Units 0
Rehab of Existing Units 0
Acquisition of Existing Units 0
Total 30
Table 10 - One Year Goals for Affordable Housing by Support Type

City of Palmdale - 44 - 2024 Draft Annual Action Plan

AP-60 Public Housing – 91.220(h)
Introduction
The City of Palmdale Housing Authority was formed in 1994 under State of California Housing Authority Law to actively improve existing neighborhoods and develop affordable housing opportunities using local, state and federal resources. The Palmdale Housing Authority does not administer Section 8 and does not own HUD Public Housing; however, the City is within the service area of the Los Angeles County Development Authority (LACDA) for the purposes of Section 8 and Public Housing.

Actions planned during the next year to address the needs to public housing During the 2024-2025 program year, LACDA will continue providing housing and public services to existing residents of the City of Palmdale. LACDA takes in feedback fromresidents collected through resident surveys distributed throughout the City of Palmdale to improve services.

Actions to encourage public housing residents to become more involved in management and participate in homeownership
LACDA actively encourages residents to be involved in the organization through resident councils and active participation in housing authority decisions via surveys and other forms of engagement. Resident surveys were distributed with translation services available on request. Community meetings in low -income areas were hosted with copies of the Consolidated Plan draft available in these areas. A public hearing is conducted to accept public comment s on the draft plan before its approval and submittal to HUD . Grant funding is administered to increase housing availability and accessibility to residents to encourage greater participation in homeownership. LACDA also maintains quarterly newsletters for Section 8 tenants, public housing residents, and Section 8 property owners.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance
Not applicable. LACDA is considered a High Performing PHA.

Discussion
LACDA is well-positioned to continue providing Section 8 Housing Choice Vouchers in the City of Palmdale and throughout Los Angeles County.

City of Palmdale - 45 - 2024 Draft Annual Action Plan

AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction
The City will invest CDBG funds during the 2024-2025 program year to address high priority needs identified in the 2020-2024 Consolidated Plan including providing public services that address homelessness.

Describe the jurisdictions one -year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community-based organizations and faith-based groups. Consistent with this approach, the City of Palmdale supports the efforts of The Los Angeles Homeless Service Authority (LAHSA), County Continuum of Care (CoC), and its member organizations that address homelessness throughout Los Angeles County and more specifically in SPA1. In alignment with this strategy, the City will use CDBG funds to support local service providers as well as City run programs to prevent homelessness and to expand the supply of affordable housing in Palmdale for low- and moderate-income residents.

In February 2016, the Los Angeles County Board of Supervisors and the City of Los Angeles approved a new joint Homeless Initiative plan to address homelessness in the Los Angeles region (Homeless Initiative). The strategies were developed after it held 18 policy summits that brought together more than 100 community organizations, 25 County departments and 30 cities including the City of Palmdale. In March 2017, voters approved Measure H, a 10-year, 0.25% sales tax increase. Through the Homeless Initiative, the City was one of 47 Cities to receive a planning grant in 2017, resulting in the City of Palmdale’s Homeless Plan, which identifies the local need and strategies to partner with local service providers to meet those needs. In this program year, the City will work with the CoC and the County to address the needs identified through collaboration and coordination of resources and services.

Addressing the emergency shelter and transitional housing needs of homeless persons Through the Homeless Initiative, the County and CoC are working to strengthen and increase the availability of housing and services at all levels. The ultimate solution to ending homelessness is transitional to permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, because the demand for affordable housing far outpaces the region’s supply, the CoC continues to rely on its emergency and bridge housing system in order to address the immediate needs of Los Angeles County’s homeless population. At the same time, the only year-round emergency shelter in the Antelope Valley closed in August 2017. As a result, the CoC is collaborating with a range of non-profit and community organizations to fill the gap, including providing funding for a local winter shelter. Additional funding has been infused into the community through Project Roomkey to provide families with emergency motel vouchers and provide households with rapid rehousing assistance.

City of Palmdale - 46 - 2024 Draft Annual Action Plan

Los Angeles County has implemented policy and program changes aimed at ensuring homeless persons in Los Angeles County are rapidly housed and offered an appropriate level of support services to meet their circumstances and keep them stably housed.

This increase in rapid rehousing and permanent supportive housing for the most vulnerable populations is attributed to Los Angeles County homeless service providers re-tooling their programs and shifting their focus to moving people quickly into permanent supportive housing throughout the County. Homelessness can be significantly reduced and the quality of life of our residents, especially those precariously housed or homeless can be improved.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the peri od of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again Leveraging CoC efforts, this Strategic Plan provides for the use of CDBG public service funds to support the social safety net activities of SAVES and HOME funds to provide short- and medium-term tenant-based rental assistance to keep individuals and families housed or to rapidly re-house individuals and families experiencing homelessness. Additionally, the homeless plan goals and efforts included in the foregoing paragraphs also will help homeless persons, especially chronically homeless individuals and fa milies, families with children, veterans, and unaccompanied youth make the transition to permanent housing and independent living. The City’s goals are consistent with HUD’s goal to shorten the period that individuals and families experience homelessness and to facilitate access for homeless individuals and families to affordable housing units. The City’s goals are aligned with HUD’s goal to prevent individuals and families who were recently homeless from becoming homeless again.

Helping low -income individuals and families avoid becoming homeless, especially extremely low -income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs An individual or family is considered to be at-risk of becoming homeless if they experience extreme difficulty maintaining their housing and has no reasonable alternatives for obtaining subsequent housing.

Homelessness often results from a complex set of c ircumstances that require people to choose between food, shelter and other basic needs. Examples of common circumstances that can cause homelessness include eviction, loss of income, insufficient income, disability, increase in the cost of housing, discharge from an institution, irreparable damage or deterioration to housing, and fleeing from family violence.

The “Approved Strategies to Combat Homelessness” published by L.A. County on February 9, 2016 , (Homeless Initiative) are consistent with State and Federal initiatives for ending homelessness and consists of 47 strategies arranged by six guiding principles including A) Prevent Homelessness, B) Subsidize Housing, City of Palmdale - 47 - 2024 Draft Annual Action Plan

C) Increase Income, D) Provide Case Management and Services, E) Create a Coordinated System, and F) Increase Affordable/Homeless Housing. The Homeless Initiative represents a commitment by all stakeholders throughout the County to prevent and end homelessn ess. In 2022, the Homeless Initiative updated the strategies and framework to five strategies to Coordinate, Prevent, Connect, House and Stabilize.

Through implementation of the collaborative goals of the City of Palmdale’s Homeless Plan and implementation of best practices developed through the CoC, the community will be able to serve people discharged from publicly funded institutions or systems of care such as health care facilities or correction programs. Full implementation of the Coordinated Entry System will reduce the number of people discharged from publicly funded institutions into homelessness.

City of Palmdale - 48 - 2024 Draft Annual Action Plan

AP-75 Barriers to affordable housing – 91.220(j)
Introduction
A barrier to affordable housing is a public policy or nongovernmental condition that constrains the development or rehabilitation of affordable housing, such as land use controls, property taxes, state prevailing wage requirements, environmental protection, cost of land and availability of monetary resources. Barriers to affordable housing are distinguished from impediments to fair housing choice in the sense that barriers are lawful and impediments to fair housing choice are usually unlawful.

Based on information gathered during community meetings, the Consolidated Plan survey, the 2013 -2021 Housing Element and market analysis, the primary barriers to affordable housing in Palmdale are housing affordability and the lack of monetary resources ne cessary to develop and sustain affordable housing. The two barriers are related in the sense that demand for affordable housing exceeds the supply and insufficient resources are available to increase the supply of affordable housing to meet demand.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment In the development of the 2013-2021 Housing Element, the City evaluated significant public policies affecting affordable housing development such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges and growth limitations. Based on this evaluation, the City determined that it has taken all necessary steps to ameliorate the negative effects of public policies that may have been a barrier to affordable housing. Moreover, the City is actively engaged with affor dable housing developers concerning the siting of affordable housing and ensuring that the entitlement process runs smoothly from inception to completion.

City of Palmdale - 49 - 2024 Draft Annual Action Plan

AP-85 Other Actions – 91.220(k)
Introduction
In the implementation of the 2024-2025 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meet underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, reduce the number of poverty -level families, develop institutional str ucture and enhance coordination between public and private housing and social service agencies.

Actions planned to address obstacles to meeting underserved needs The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state, and other local sources, the high cost of housing that is not affordable to low- income people and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2024-2025 Annual Action Plan in projects that will provide public services to low - and moderate- income people to prevent homelessness, rental assistance to low -income households, and projects that provide the infrastructure necessary to facilitate access to public facilities where services are provided. To address underserved needs, the City is allocating the majority of its CDBG and HOME funds (excluding Section 108 Debt Service and Administration) for program year 2024-2025 to projects that benefit low- and moderate-income people.

Actions planned to foster and maintain affordable housing In the implementation of the 2024-2025 Annual Action Plan, the City will invest HOME funds to foster affordable housing by partnering with housing developers in an effort to support the development of new rental housing units and provide tenant-based rental assistance to low-income tenants requiring affordable housing.

Actions planned to reduce lead-based paint hazards
The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing -based approaches. To reduce lead -based paint hazards, the City of Palmdale will conduct lead-based paint testing and risk assessments for future rehabilitation projects where the property to be assisted was built prior to January 1, 1978, and will incorporate safe work practices or abatement into the scope of work as required to reduce lead -based paint hazards in accordan ce with 24 CFR Part 35.

City of Palmdale - 50 - 2024 Draft Annual Action Plan

Actions planned to reduce the number of poverty-level families The implementation of CDBG and HOME activities meeting the goals established in the 2020 -2024 Consolidated Plan - Strategic Plan and this Annual Action Plan will help to reduce the number of poverty - level families by:
• Supporting activities that increase the supply of housing that is affordable to low - and moderate- income households;
• Supporting activities that ensure equal access to housing opportunities; • Supporting public service activities that address homelessness and special needs populations; • Supporting activities that improve public facilities and infrastructure; and • Supporting economic opportunity programs to help families recover from the economic impacts of the COVID-19 pandemic that began in early 2020.

In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start provide pathways out of poverty for families who are ready to pursue employment and educational opportunities. Additionally in California, the primary programs that assist families in poverty are CalWORKS, CalFresh (formerly food stamps) and Medi -Cal. Together, these programs provide indi viduals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition, and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence, and mental illness.

Actions planned to develop institutional structure
To address the lack of resources necessary to support local programs in Palmdale for special needs populations and persons experiencing homelessness, the City’s Departments continue to facilitate strategic regional partnerships in L.A. County to bring resources into the Antelope Valley. The City’s partnership between SAVES and the Los Angeles Regional Foodbank, forged during the previous planning cycle, is an example of the level of determination the City has to provide essential services to its residents. The Department of Neighborhood Services continues to search for alternate funding sources.

Actions planned to enhance coordination between public and private housing and social service agencies To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low - and moderate -income residents in Palmdaleparticularly the low-and moderate- income areas.

City of Palmdale - 51 - 2024 Draft Annual Action Plan

Discussion
In the implementation of the 2024-2025 Annual Action Plan, the City will invest CDBG and HOME resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead - based paint hazards, reduce the number of poverty -level families, develop institutional structure , and enhance coordination between public and private housing and social service agencies.

City of Palmdale - 52 - 2024 Draft Annual Action Plan

Program Specific Requirements
AP-90 Program Specific Requirements – 91.220(l)(1,2,4)
Introduction
In the implementation of programs and activities under the 2024 Annual Action Plan, the City of Palmdale will follow all HUD regulations concerning the use of program income, forms of investment, overall low - and moderate-income benefit for the CDBG program and recapture requirements for the HOME program.

Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(l)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use and is included in projects to be carried out.

1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0

2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan. 0

3. The amount of surplus funds from urban renewal settlements 0

4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan 0

5. The amount of income from float-funded activities 0
Total Program Income: 0
Other CDBG Requirements

1. The amount of urgent need activities 0

2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low- and moderate-income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan.
100%

City of Palmdale - 53 - 2024 Draft Annual Action Plan

HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(l)(2)

1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:

The City does not use forms of investment other than what is included in § 92.205(b).

2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:

The City’s HOME-funded homebuyer programs incorporate a recapture provision in accordance with § 92.254 (a)(5)(ii). As a condition of funding, the homebuyer must enter into a HOME Participation Agreement with the City of Palmdale. The City’s investment in the property is made as a forgivable loan in exchange for a 15 -year affordability period as required under the HOME Program Regulations. The affordability period is enforced by a recorded affordability covenant against the property.

Recapture of funds is required in the event of any of the following during the period of affordability:

1. Sale of the property or transfer of any kind to non -income qualified homebuyers (excluding those related to the dissolution of marriage);

2. When the residence ceases to be used as the primary residence, subleasing or renting of the property;

3. Refinancing; and

4. Failure to maintain the property in decent, safe, and sanitary condition.

The funds subject to recapture include all funds advanced in connection with the City’s homebuyer assistance, less forgiveness payments credited proportionally each year on the anniversary of the Note. HOME funds shall be recaptured from net proceeds, which are defined as the sales price minus superior loan repayment (other than HOME assistance) and closing costs. The City will recapture the entire amount of HOME funds invested from net proceeds, less any forgiveness payments credited. In the event that the net proceeds resulting from a sale are not sufficient to provide for the full return of the Borrower’s original down payment and Borrower’s cost of capital improvements to the Property (subject to City verification and approval), then the Borrower shall be entitled to recover their original down payment amount and City approved capital improvement amounts before the recapture of the HOME Loan. The recaptured funds will be used to carry out HOME eligible activities.

3. A description of the guidelines for resale or recapture that ensures the affordability of units City of Palmdale - 54 - 2024 Draft Annual Action Plan

acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:

See above.

4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:

The City does not intend to use HOME funds under the 2024-2025 Annual Action Plan to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.

Discussion
In the implementation of programs and activities under the 2024-2025 Annual Action Plan, the City of Palmdale will follow all HUD regulations concerning the use of CDBG and HOME funds.

City Council Staff Report

DATE: MAY 1, 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 residential 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
May 1, 2024

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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).

On April 17, 2024, the City Council conducted a public hearing and continued the item to May 1, 2024.

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. Alt hough 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
May 1, 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
55th Street 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 19 1 DWELLING
UNITS COMPRISED O F 64 DETACHED SINGLE -FAMILY DWELLING UNITS AND 127 ACCESSORY DWELLING UNIT S 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 A pplication 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 continued the item to May 1, 2024, City Council meeting; and
WHEREAS, On May 1, 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 May 1, 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:

Resolution No. CC 2024-048

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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:

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 May 1, 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 co nsistent 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 Resolution No. CC 2024-048

Page 3 ends

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 . 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

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Palmdale City CouncilMay 1, 2024

Palmdale City Council
May 1, 2024