1. CALL MEETING TO ORDER
Note: All City Council memberships are reflected in their City Council titles.
2. ROLL CALL
MAYOR BISHOP, MAYOR PRO TEM LOA, COUNCILMEMBERS OHLSEN,
BETTENCOURT, ALARC
Ó
N
COMMISSIONERS FRAGA-SAENZ, BETTS
3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE
4. PRESENTATIONS
4.1 Antelope Valley College update.
4.2 Illegal Dumping Plan update.
PUBLIC COMMENT RULES
“(California Government Code Section 54954.3).
(a) Every agenda for regular meetings shall provide an opportunity for members of the public to directly address the legislative body on any item of interest to the public, before or during the legislative body’s consideration of the item, that is within the subject matter jurisdiction of the legislative body, provided that no action shall be taken on any item not appearing on the agenda unless the action is otherwise authorized by subdivision (b) of
CITY COUNCIL
HOUSING AUTHORITY
CITY COUNCIL CHAMBERS
38300 SIERRA HIGHWAY
SUITE B
PALMDALE, CA 93550
WEDNESDAY, AUGUST 21, 2024
5:00 PM
www.cityofpalmdaleca.gov
WELCOME
City Council
Wednesday, August 21, 2024
Section 54954.2 [section omitted].
(b) (1) The legislative body of a local agency may adopt reasonable regulations to ensure that the intent of the subdivision (a) is carried out, including, but not limited to, regulations limiting the total amount of time allocated for public testimony on particular issues and for each individual speaker.
(2) Notwithstanding paragraph (1), when the legislative body of a local agency limits time for public comment, the legislative body of a local agency shall provide at least twice the allotted time to a member of the public who utilizes a translator to ensure that non- English speakers receive the same opportunity to directly address the legislative body of a local agency.”
In furtherance of Section 54954.3 of the Brown Act, the public is allotted to speak a total of two (2) minutes on the entirety of the Consent Calendar, Appointment(s), New Business and Closed Session, with two (2) minutes on each Public Hearing, and, if desired, an additional two (2) minutes on items not on the agenda that are within the subject matter jurisdiction of the City Council. As specified in the Brown Act, a speaker utilizing a translator will receive twice the amount of time specified.
5. PUBLIC COMMENTS
CONSENT CALENDAR, APPOINTMENT(S), NEW BUSINESS, AND CLOSED SESSION: Now is the time for public participation on items listed on the Consent Calendar, Appointment(s), New Business, and Closed Session. Each speaker is allotted two (2) minutes in total for the entirety of the above sections.
6. CONSENT CALENDAR
All matters listed under the Consent Calendar will be enacted by one motion unless an item(s) is pulled by Council, in which case the item(s) will be removed from the Calendar and will be considered separately following this portion of the Agenda.
6.1 Waive full reading of the Resolution(s) and/or Ordinance(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 and Adopt Ordinance No. 1645, an Ordinance of the City Council of the City of Palmdale to promote Public Health, Safety, and Welfare by deleting, amending, and adding select provisions of the Palmdale Municipal Code related to procedures and policies governing construction of Public Works Projects and Professional Services in order to streamline and ensure consistency with State Law.
SR Ord. No. 1645.docx
Ord. No. 1645.docx
City Council
Wednesday, August 21, 2024
6.3 Adopt Resolution No. CC 2024-075, a Resolution of the City Council of the City of Palmdale to apply for and accept the Los Angeles County Council of Governments Interim Housing (IH) Service Fund.
SR Reso. No. CC 2024-075.docx
Reso. No. CC 2024-075.docx
6.4 Adopt Resolution No. CC 2024-076, a Resolution of the City Council of the City of Palmdale declaring its intention to renew the Palmdale Tourism Improvement District, establish the time and place of a public meeting and a public hearing and giving notice of such public meeting and public hearing.
SR Reso. No. CC 2024-076.docx
Reso. No. CC 2024-076.docx
Atch 1 PTID Management District Plan.pdf
Atch 2 Petition forms in support of PTID.pdf
6.5 Notice of Completion - Accept Public Street and Landscape Improvements for Tract 73068 located at Palmdale Boulevard and Oak Street.
SR NOC 21-31.docx
NOC 21-31.pdf
Exh A List of Completed Public Improvements.pdf
Exh B Site Map Location.pdf
Site Photo.pdf
6.6 Approve pre-qualified list of consultants to perform on-call professional engineering and architectural services with a not to exceed total aggregate amount of $12,000,000 for a three-year term with the option to extend two one- year terms.
SR Approve Prequalified List of On-Call Consultants.docx
Atch 1 List of On-Call Consultants.pdf
6.7 Approve the minutes from the previous meeting.
Minutes 08 07 2024 CC SA 5pm.pdf
7. JOINT PUBLIC HEARING CITY COUNCIL/HOUSING AUTHORITY
7.1 Adopt Resolution No. CC 2024-074, a Resolution of the City Council of the City of Palmdale approving an Affordable Housing Agreement between the Housing Authority of the City of Palmdale and Advancing Communities Together, Approving and Authorizing the Conveyance of Property located at 5th Street East and East Avenue Q-2 APN 3008-010-904 from the Housing Authority of the City of Palmdale to Advancing Communities Together, Approving a Permanent Local Housing Allocation Loan Agreement between the City of Palmdale and Advancing Communities Together, and making certain findings; and Adopt Resolution No.
HA 2024-006, a Resolution of the Housing Authority of the City of Palmdale City Council
Wednesday, August 21, 2024
Approving an Affordable Housing Agreement between the Housing Authority of the City of Palmdale and Advancing Communities Together, Approving and Authorizing the Conveyance of Property from the Housing Authority of the City of Palmdale to Advancing Communities Together located at 5th Street East and East Avenue Q-2 APN 3008-010-904 and making certain findings
SR Reso. No. CC 2024-074 and HA 2024-006.docx
Reso. No. CC 2024-074.pdf
Reso. No. HA 2024-006.pdf
Agrmt No. A-8909 (City) with Advancing Communities Together.pdf
Agrmt No. A-8908 (Housing Authority) with Advancing Communities Together.pdf
8. CITY MANAGER’S REPORT
9. COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE AGENDA ITEMS
10. NON-AGENDA PUBLIC COMMENTS
:
Now is the time for public participation on items not listed on the agenda. Each speaker is allotted two (2) minutes total.
11. ADJOURN
meeting to September 4, 2024, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
Americans with Disabilities Act (ADA) Accommodations
In accordance with the Americans with Disabilities Act of 1990, if you require a disability- related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (661) 267-5151 at least 48 hours prior to the meeting.
If you require oral translation, please contact the City Clerk’s Office at (661) 267-5151 at least 48 hours prior to the meeting.
City Council
Wednesday, August 21, 2024
City Council Staff Report
DATE: AUGUST 21, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: WILLIAM P. CURLEY, III, CITY ATTORNEY
SUBJECT: BIANNUAL ORDINANCE UPDATING AND AMENDING THE
PALMDALE MUNICIPAL CODE
RECOMMENDATION
Consider and adopt Ordinance No. 1645, an Ordinance of the City Council of the City of Palmdale to promote Public Health, Safety, and Welfare by deleting, amending, and adding select provisions of the Palmdale Municipal Code (PMC) related to procedures and policies governing the construction of Public Works Projects and Professional Services in order to streamline and ensure consistency with State Law.
BACKGROUND AND DISCUSSION
As statutes, City organizational duties, job titles, and policies change, it is important to maintain and update the PMC. This Ordinance is a general clean -up and consistency enactment that keeps the PMC current. From time to time, similar “housekeeping” ordinances will be presented to ensure consistency and accuracy among City enactments.
FISCAL IMPACT
$0; There is no fiscal impact associated with this action.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding services.
A. Manage resources, costs, and liability to ensure the City’s long -term fiscal health.
Prepared by: William P. Curley, III, City Attorney
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
ATTACHMENT
Ord. No. 1645
CITY OF PALMDALE, A CHARTER CITY,
COUNTY OF LOS ANGELES, CALIFORNIA
ORDINANCE NO. 1645
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALMDALE
TO PROMOTE PUBLIC HEALTH, SAFETY, AND WELFARE BY
DELETING, AMENDING, AND ADDING SELECT PROVISIONS OF THE
PALMDALE MUNICIPAL CODE RELATED TO PROCEDURES AND
POLICIES GOVERNING CONSTRUCTION OF PUBLIC WORKS
PROJECTS AND PROFESSIONAL SERVICES IN ORDER TO
STREAMLINE AND ENSURE CONSISTENCY WITH STATE LAW.
A. Intent of City Council
1. WHEREAS, Section VII of Article XI of the California Constitution provides that a City may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws;
2. WHEREAS, the City Council finds it necessary to update, consolidate, and streamline the Palmdale Municipal Code (“PMC”) periodically to comply with recent law enactments and decisions and to achieve more efficient enforcement of code violations to promote public health, safety and welfare;
3. WHEREAS, in light of recent state law enactments and decisions as well as recent efforts to ensure a more efficient enforcement of the Palmdale Municipal Code and other laws which the City is empowered to enforce, the City Council has identified amendments, adoptions, and/or deletions to be made to the PMC relating to regulations governing public works projects and professional services; and other related provisions;
4. WHEREAS, said amendments, adoptions, and/or deletion of the PMC are permitted by law, including the California Constitution, City of Palmdale Charter and Government Code;
5. WHEREAS, all legal preconditions to the adoption of this Ordinance have occurred as required by law,
B. Ordinance
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALMDALE HEREBY ORDAINS AS FOLLOWS:
SECTION 1. The existing text of PMC Section 2.04.060 is hereby amended to read as follows:
2.04.030 Bond.
The City Manager may be required to furnish a corporate surety bond in an amount to be determined by the City Council, which surety bond shall be Ordinance No. 1645
conditioned on the faithful performance of the duties imposed on the City Manager as herein prescribed. Any premium for such bond shall be a proper charge against the City. (Ord. 1366 § 1, 2008; Ord. 1058 § 1, 1995)
2.04.060 Powers and duties.
The City Manager shall be the administrative head of the City government under the direction and control of the City Council, except as otherwise provided in this code. The City Manager shall be responsible for the efficient administration of all the affairs of the City which are under the control of the City Manager. In addition to general powers as administrative head, and not as a limitation thereon, it shall be the City Manager’s duty, and the City Manager shall have the power:
(A) To ensure, in cooperation with the City Attorney, that all laws of the state pertaining to the City, and all laws and ordinances of the City, are duly enforced, and that all franchises, permits, and privileges granted by the City are faithfully observed and performed;
(B) To control, order, and give directions to all heads of departments, subordinate officers, and employees of the City, except the City Attorney and the City Treasurer; to transfer employees from one department to another; and to consolidate or combine offices, positions, departments or units under the City Manager’s direction;
(C) To appoint, promote, discipline, demote, and remove any officers or employees of the City, except the City Attorney and the City Treasurer; (D) To exercise control over and to supervise in general all departments and divisions of the City, and all appointive officers and employees thereof, except the City Attorney and the City Treasurer;
(E) To attend all meetings of the City Council and its committees unless excused therefrom by the City Council, unless the City Manager’s removal is under consideration by the City Council;
(F) To recommend to the City Council for the adoption of such measures, actions, resolutions, and ordinances as may be deemed necessary or expedient; (G) To keep the City Council, at all times, fully advised as to the financial condition and needs of the City;
(H) To prepare and submit to the City Council the annual budget and to administer it after adoption;
Ordinance No. 1645
(I) To purchase or cause to be purchased all equipment, services, materials, and supplies for all departments or divisions of the City;
(J) To make investigations into the affairs of the City, and any department or division thereof, and any contract, or the proper performance of any obligation running to the City;
(K) To investigate all complaints in relation to matters concerning the administration of the City government and the services provided by public utilities in the City;
(L) To exercise general supervision over all public buildings, public parks, streets, and other public properties which are under the control and jurisdiction of the City Council;
(M) To devote fully to the duties of this office and the interests of the City; (N) To make reports and recommendations as may be desirable or as requested by the City Council;
(O) To serve in any appointed office or as head of any department within the City government to which the City Manager may be qualified when appointed thereto by the City Council and to hold and perform the duties thereof at the pleasure of the City Council;
(P) To provide leadership for civic activities designed to benefit the residents of the City when so authorized by the City Council;
(Q) To perform such other duties and exercise such other powers as may be delegated to the City Manager from time to time by ordinance, resolution, or motion of the City Council; and
(R) To review all mail or other written communications addressed to the City Council and to give it immediate attention to the end that all administrative matters requiring Council action may be acted upon between City Council meetings. Such correspondence may be copied for administrative purposes and shall be delivered to Councilmembers in a timely manner. Correspondence addressed to an individual Councilmember shall not be duplicated, reproduced, or otherwise copied, and the contents thereof shall not be divulged to any other person unless written consent from the addressee has been obtained. Any correspondence addressed to individual Councilmembers which is marked “PERSONAL,” “PRIVATE,” “CONFIDENTIAL,” or with other similar words or phrases on the envelope, wrapper, or cover which would indicate the sender intended the contents to be seen only by the eyes of the addressed Councilmember shall not be opened Ordinance No. 1645
by the City Manager except by written consent of the addressee and shall be delivered to that Councilmember in a timely manner.
(S) The authority to approve and execute on behalf of the City compromise and settlement agreements and/or releases for disputes, claims, and/or lawsuits up to a maximum value of $125,000, exclusive of City costs and attorney fees, with the advice and consent of the City Attorney and as per State and local law. The City Manager shall annually compile a confidential report in cooperation with the City Attorney on all such agreements or releases, including the name(s) of the opposing party, significant terms, settlement amount, and date. The City Attorney shall provide such confidential report to the City Council under seal of the attorney-client and attorney work-product privileges if he or she deems such necessary. (Ord. 1568 §§ 1 – 3, 2021; Ord. 1541 § 1, 2020; Ord. 1439 § 1, 2013; Ord. 1424 § 1, 2011; Ord. 1399 § 2, 2010; Ord. 1299 §§ 2, 3, 2007; Ord. U-1299 §§ 2, 3, 2006; Ord. 1202 § 1, 2002; Ord. 1058 § 1, 1995)
2.04.120 Inconsistent nomenclature
Wherever it appears in this code, or in any ordinance or resolution previously adopted by the City Council or by any of the City’s boards or commissions, the term “City Administrator” shall be construed to mean “City Manager.” (Ord. 1058 § 1, 1995)
SECTION 2. The existing text of PMC Section 3.02 is hereby amended to add the following section as follows:
3.02.070 Inconsistent nomenclature
Wherever it appears in this code, or in any ordinance or resolution previously adopted by the City Council or by any of the City’s boards or commissions, the term “Finance Director” shall be construed to mean Director of Finance, Director of Operations, or Controller. (Ord. 1058 § 1, 1995)
SECTION 3. The existing text of PMC Section 3.08.060 is hereby amended to read as follows:
3.08.06 Definitions.
As used in this chapter, unless the context otherwise clearly indicates:
(A) “Awarding authority” means the Palmdale City Council employee of the City of Palmdale authorized to award or enter into any contract, as defined in this chapter, on behalf of the City.
(B) “Bid” means a response to a procurement solicitation, including a bid, a proposal, and a statement of qualifications and experience.
Ordinance No. 1645
(C) “Bidder” means a person or company that submits a bid or any response to a procurement solicitation.
(D) “Competitive procurement process” means a selection process where contractors and vendors who supply goods, materials, equipment, supplies, and services to the City are selected through a formal or informal process that allows full, fair, and open competition for all qualified contractors with selection based on specified criteria established to best meet the needs of the City. Invitations for bids, requests for proposals, and requests for qualifications and experience are examples of competitive procurement processes.
(E) “Construction projects” and “public projects” mean those public projects as defined in California Public Contract Code Section 22002. (F) “Contract” is synonymous with “agreement” and, regardless of which term is used, means a written agreement between the City and a vendor, including a purchase order issued to a vendor, for the procurement or disposition of goods, materials, equipment, supplies, and services.
(G) “Contractor” includes vendor and means any person who has entered into a contract with the City.
(H) “Designee” means any person to whom the Procurement Officer delegates authority under this chapter.
(I) “Director of Finance” shall mean that individual who is appointed to that position and in their absence, the City Manager shall act as the Director of Finance, subject to PMC section 3.02.070.
(J) “Eligible local provider” shall mean a local provider who is an otherwise responsible bidder and responsive to the City’s procurement solicitation. (K) “Local provider Palmdale” shall mean a manufacturer, supplier, or provider of goods, materials, equipment, supplies, or services that has an established place of business within the City of Palmdale, which has complied with City of Palmdale business license requirements, and which has paid all currently due business license fees and taxes prior to the City’s solicitation for the respective purchase. (L) “Materials” means all property, including, but not limited to, equipment and supplies, but does not include land, a permanent interest in land, or leases of real property.
(M) “Procurement” and “procure” mean the acquisition of materials or services, professional services, or construction projects by the City, including but not limited to purchasing, renting, or leasing, and all functions and procedures pertaining to Ordinance No. 1645
such acquisitions, such as a description of requirements, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration.
(N) “Procurement Officer” means the Director of Finance or their designee. The Procurement Officer shall manage the City’s Purchasing Office to procure goods, materials, equipment, supplies, and services for the City. (O) “Proposal” means any response to a City solicitation for proposals. (P) “Purchasing Office” means the division in the Finance Division that handles the procurement process to procure goods, materials, equipment, supplies and services for the City.
(Q) “Services” means the furnishing of labor, time, or effort by a contractor. (R) “Solicitation” means an invitation for bids, a request for technical offers, a request for proposals, a request for qualifications, a request for quotations, or any other invitation or request by which the City invites a person to participate in a procurement.
(S) “Using department” means any office, department, commission, board or other agency of the City using goods, materials, equipment, supplies or services. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008.
Formerly 3.08.030)
SECTION 4. The existing text of PMC Section 3.08.080 is hereby amended to read as follows:
3.08.080 Procurement officer duties and authority.
(A) The Director of Finance is hereby designated as the Procurement Officer of the City. The Director of Finance may delegate procurement authority to any designee, as well as such other duties and functions as may be required. (B) Except as specifically exempted herein, upon the Director of Finance’s designation of a separate Procurement Officer, that Procurement Officer shall have authority to:
(1) Procure, purchase, and contract for all goods, materials, equipment, supplies, and services required by any using department in accordance with purchasing procedures prescribed by this chapter;
(2) Negotiate and recommend execution of contracts for the purchase of goods, materials, equipment, supplies, and services;
Ordinance No. 1645
(3) Act to procure for the City the needed quality in goods, materials, equipment, supplies, and services at least expense to the City; (4) Discourage collusive bidding and endeavor to obtain as full and open competition as possible on all purchases;
(5) Prepare and recommend to the Director of Finance rules governing purchasing, maintaining an inventory, and warehousing of goods, materials, equipment, supplies and services of the City;
(6) Keep informed of current developments in the fields of purchasing, prices, market conditions and new products;
(7) Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations; (8) Be responsible for the inspection of all goods, materials, equipment, supplies, and services purchased to ensure conformance with specifications and, where necessary, to require chemical and physical tests of samples submitted with bids and samples of deliveries to determine their quality and conformance with specifications; and
(9) Maintain a vendors list of qualified vendors and contractors. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008.
Formerly 3.08.050)
SECTION 5. The existing text of PMC Section 3.08.090 is hereby amended to read as follows:
3.08.090 Delegation to other departments.
(A) The Director of Finance may authorize, in writing, any using department to purchase and contract for specified goods, materials, equipment, supplies, and services independently of the Central Purchasing Office; but the Director of Finance shall require that such purchases and contracts be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the using department on the purchases and contracts made under such written authorization.
(B) Contracts to implement the capital improvement program and for construction services for public projects shall be procured by the Director of Public Works/designee in cooperation with the Finance Director/Procurement Officer and in compliance with the requirements of this chapter and the Palmdale Charter. For contracts to be procured by the Public Works Department, the references in this chapter to the separately designated Procurement Officer’s authority and duties shall apply to the Director of Public Works/Designee unless, by mutual agreement Ordinance No. 1645
between the departments, the Director of Finance agrees to perform such tasks. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008.
Formerly 3.08.060)
SECTION 6. The existing text of PMC Section 3.08.130 is hereby amended to read as follows:
3.08.130 Bid protest procedures/solicitations.
All protests regarding a solicitation must be submitted in writing to the Procurement Officer. This includes all protests relating to advertising of the solicitation notice, deadlines, or proposal opening, as well as any protest relating to alleged improprieties with the solicitation process. To be considered valid, the protest must be submitted in writing by an authorized representative of the contractor and (1) specify the grounds upon which the protest is based and (2) come from a bidder who claims to be the successful bidder. A protest will not be considered valid if filed by a bidder who cannot show they would be awarded the contract if their protest were accepted.
(A) Bidders who have submitted a bid proposal are permitted to challenge the City’s intent to award a contract. A bidder shall have five business days after the issuance of the notice of intent to award (NOIA) to file a protest. A protest must include:
(1) The name, address, and telephone number of the protester. (2) The signature of the protester or its representative. (3) Identification of the project and the solicitation or contract number. (4) A detailed statement of all the grounds for the protest, including, without limitation, all facts, supporting documentation, legal authorities, and arguments in support of the grounds for the protest, including providing copies of all relevant documents. All factual contentions must be supported by competent, admissible, and credible evidence. Any matters not set forth in the written protest shall be deemed waived. Any protest not conforming to these procedures shall be rejected as invalid.
(5) The form of relief requested.
Failure to protest within the time allotted shall constitute a waiver of any protest. (B) The Procurement Officer shall review the merits and timeliness of the protest and issue a written decision to the respondent within seven calendar days of receipt of the protest.
Ordinance No. 1645
(C) The respondent may appeal the decision of the Procurement Officer to the Director of Finance by filing a letter of appeal within 10 calendar days from the date of the Procurement Officer’s decision. The letter must be addressed to the Director of Finance and set forth the information required in subsection (A) of this section.
A letter of appeal not conforming to these procedures shall be rejected as invalid. (D) The Director of Finance shall review the merits and timeliness of the letter of appeal and shall issue a written decision to the respondent within 14 calendar days of receipt of the letter of appeal. The decision of the Director of Finance is final.
However, the decision is reviewable under the California Code of Civil Procedure Section 1094.5 et seq. The time in which judicial review of the decision must be sought shall be governed by California Code of Civil Procedure Section 1094.6, or as such section may be amended from time to time. (Ord. 1599 § 1 (Exh. A), 2022) SECTION 7. The existing text of PMC 3.08.140 is hereby amended to read as follows:
3.08.140 Exceptions to competitive procurement requirements. (A) Specified Professional Services. The procurement of services from specified professional classifications, without regard to the dollar amount of the contract, is exempt from the competitive process but shall be selected based on qualifications.
Such services include, but are not limited to, financial services, actuaries, psychologists, medical doctors, entertainers and performers, specialty services required for parks and recreation programs, claims consultants, insurance brokers, attorneys-at-law, and consultants and experts used during the ongoing course of litigation in which the City, Successor Agency of Redevelopment Agency, Housing Authority, or any of the boards, commissions, officers or employees are involved.
The Director of Finance shall have the authority to approve similar professional classifications exempt from competitive procurement requirements. (B) Sole Source. Where the Director of Finance determines that the materials or services are unique and available only from one source, so that the quotation procedure required by this section would be meaningless, or where it would be undesirable or impossible for the City to solicit bids for a particular work, a contract may be let to a sole source. Sole source procurements may include proprietary items sold directly from the manufacturer, items that have only one distributor authorized to sell in this area, or a specified product that the Director of Finance determines to be the only product that is acceptable. The basis upon which this determination is made shall be supported by written documentation signed by the requesting department head and provided to the Director of Finance. No sole source purchases may be made where to do so would show favoritism, improvidence, extravagance, fraud, or corruption or result in the waste of public funds, but may be used only to obtain the best economic result for the public.
Ordinance No. 1645
(C) City’s Best Interest. Except where competitive bidding is required by Federal law or by reason of the source of funding for the project, goods, materials, equipment, supplies, and services may be procured by negotiated contract and without competition when the Director of Finance determines that, due to the nature of the supplies or equipment, bidding is not likely to serve the best interests of the City or to result in the lowest price.
(D) Cooperative Purchasing. The Central Purchasing Office may participate in, sponsor, conduct, or administer cooperative purchasing with other public agencies and with nonprofit groups or organizations established by public entities for the purpose of cooperative purchasing, provided that competitive purchasing procedures similar to those required in the City of Palmdale are employed. Such participation may also consist of the following:
(1) Purchasing goods, materials, equipment, supplies, or services through contracts or bid award lists of others, provided that competitive purchasing procedures similar to those required in the City were employed to create such contracts or bid award lists.
(2) Purchasing supplies and equipment through Federal programs when authorized by City Council.
(3) Participating in joint or cooperative sale or disposal of City property. (E) Competitive Procurement. Any procurement for goods that are procured from a bidder who offers the same or better price, terms and conditions as the bidder previously offered as the lowest responsive bidder under a competitive procurement conducted by the City or another public agency under competitive purchasing procedures similar to those required in the City; provided, that, in the opinion of the Director of Finance, it is in the best interest of the City to do so. (F) Technology – Owner. Procurement of a renewal of maintenance, license(s), support, or a similar need for existing technology systems, including hardware, and the items procured are from the owner/developer of the software/hardware or from a sole source provider and the Director of Finance is satisfied that the best price, terms and conditions have been negotiated.
(G) Technology – Reseller. Procurement of a renewal of maintenance, license(s), support or a similar need for existing technology systems, including hardware, and the items procured are from a vendor/reseller that was originally selected based on the City’s procurement standards; provided, that (1) the vendor has been used continuously since such selection, (2) there are no substantive changes to the procurement and (3) when it is determined by the Director of Finance to be in the best interests of the City to do so.
Ordinance No. 1645
(H) City Equipment Repair. Procurement of parts and/or service for repairs to City equipment, which includes City vehicles and other motorized fleet related equipment.
(I) Emergencies. The City Manager, Assistant City Manager, or Director of Finance may execute contracts without the use of a competitive method without prior approval of the City Council when procurements are (1) for goods, materials, equipment, supplies, or services that are required to remedy an exigent situation where the health, safety, welfare or quality of welfare of the public or public property is endangered or severely reduced if immediate corrective or preventive action is not taken, (2) to prevent or minimize serious disruption in City services, or (3) in the reasonable opinion of the City Manager, Assistant City Manager, or Director of Finance, whenever the best interests of the City is served. The Procurement Officer/Designee shall implement procedures to meet these requirements and, when practicable, conduct an open market procurement for the award of an emergency contract. Any emergency purchases made in excess of the City Manager’s threshold authority shall be submitted to City Council for approval as soon as practicable. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.080) SECTION 8. The existing text of PMC Section 3.08.170 is hereby amended to read as follows:
3.08.170 Public works projects and construction projects.
Except where specifically exempted from such laws by ordinance of the City Council, contracts for construction projects in the City shall be governed by applicable State laws, including the California Public Contract Code, Division 2, Part 1 and Division 2, Part 3, the Local Agency Public Construction Act, including the Alternate Provisions of the Uniform Public Construction Cost Accounting Act, which are hereby adopted for use in the City. Contracts for construction shall also be governed by the current edition of the standard specifications for public works construction and the latest supplement thereto, adopted by the Greenbook Committee of the Public Works Standards, Inc., or other standards required depending on the project, except as otherwise provided by the City Council or the Procurement Officer if the contract is within his/her authority. (A) Bidding Thresholds.
(1) Construction projects less than the amount specified in Section 22032(a) (currently $60,000 or less) of the California Public Contract Code may be performed by City forces, by negotiated contract or by purchase order. (2) Construction projects less than the amount specified in Section 22032(b) (currently $200,000 or less) of the California Public Contract Code may be let to Ordinance No. 1645
contract by informal bidding procedures set forth in subsection (D) of this section, to the lowest responsible bidder.
(3) Construction projects of more than the amount specified in Section 22032(c) (currently $200,000 and over) of the California Public Contract Code shall be let by formal bidding procedure, set forth in subsection (E) of this section, to the lowest responsible bidder.
(4) It shall be unlawful to split projects into smaller work orders or projects for the purpose of evading the provisions of this chapter or applicable state laws. (5) After the effective date of any contract approved by the City Council for work on a public project, the City Manager shall have the authority to approve in writing any amendment or change order directing an addition, deletion, or revision in such contract, including, without limitation, plans, specifications, and the nature or quantity of services, equipment, supplies or work, so long as the cumulative dollar value of all such change orders relating to any one contract shall not exceed 15 percent of the contract price unless City Council has authorized a different change order amount for a specific contract.
(B) Bidder’s Security. A bidder’s security in an amount equal to at least 10 percent of the amount of the bid shall be submitted with a bid. Bidders shall be entitled to return of bid security, provided that a successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within the time specified in the invitation to bid unless the City is responsible for the delay. The City may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsive bidder. If the City awards the contract to the next lowest responsive bidder, the amount of the lowest bidder’s security shall be applied by the City to the difference between the lowest bid and the next lowest bid, if any, and the surplus, if any, shall be returned to the lowest bidder. (C) Registering With the City’s Electronic Bid Management System. All prospective bidders must be registered as a vendor with the City’s electronic bid management system to access all notice inviting bids and solicitation documents, including any attachments.
(D) Notice Inviting Bids, Informal Bidding. The notice inviting bids shall describe the project in general terms and how to obtain more detailed information about the project and state the time and place for the submission of bids. Notice shall be provided in accordance with either subsection (D)(1) or (2) of this section, or both. (1) The Central Purchasing Office or the Public Works Department, through the City’s electronic bid management system, shall maintain a list of qualified contractors, identified according to categories of work. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice Ordinance No. 1645
inviting informal bids unless the product or service is proprietary. All mailing of notices to contractors pursuant to this subsection shall be completed not less than 10 calendar days before bids are due.
(2) The Central Purchasing Office or the Public Works Department may elect to mail, fax, or email a notice inviting informal bids to all construction trade journals specified in Section 22036 of the California Public Contract Code. (3) If all the bids received are in excess of $200,000, the City Council may, by adoption of a resolution by a four-fifths vote, award the contract, at $212,500 or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable.
(E) Notice Inviting Bids, Formal Bidding. The notice inviting bids shall distinctly state the project to be done. Notice shall be provided as set forth in subsection (E)(1) of this section.
(1) Notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the jurisdiction of the City. The notice inviting formal bids shall also be sent electronically by either facsimile or electronic mail through the City’s electronic bid management system and mailed to all construction trade journals specified in Section 22036 of the California Public Contract Code. The notice shall be sent at least 14 calendar days before the date of opening the bids.
(2) Additional Notice. In addition to the notice required by subsection (E)(1) of this section, the City may also give such other notice as it deems proper, including mailing or emailing the notice to prospective vendors and contractors whose names are or are not on the City’s vendors list.
(F) Bid Submittals and Opening Procedure. All bids shall only be submitted electronically through the City’s electronic bid management system unless otherwise specified in the notice inviting bids. Paper-sealed bids shall not be accepted. Bids shall be opened and evaluated on the City’s electronic bid management system. After the completion of the evaluation and scoring process, the City will issue an update on its electronic bid management system, changing the award status to pending, and will indicate the successful bidder, bid amount, and date of the applicable City Council meeting where the contract will be recommended for award.
(G) Award of Bid. The City Manager, or designee, has the authority to award informal bids up to the amount specified in PMC 3.08.240. Any informal bid over the threshold set forth in PMC 3.08.240 shall be awarded by City Council. All Ordinance No. 1645
formal bids shall only be awarded by the City Council. A bid shall be awarded to the lowest responsible bidder.
(H) Rejection of Bids. Any and all bids may be rejected at the discretion of the City.
If the City intends to reject all bids, the Procurement Officer/designee must mail notice of the City’s intent to reject the bid at least two business days prior to the City Council meeting at which the bids will be considered. After rejecting all bids, the City may:
(1) Abandon the project;
(2) Re-advertise the project; or
(3) By a passage of a resolution by a four-fifths vote of the City Council, perform the work with City forces. (Ord. 1599 § 1 (Exh. A), 2022) SECTION 9. The existing text of PMC Section 3.08.240 is hereby amended to read as follows:
3.08.240 Approval of purchase orders, contracts, contract amendments, and change orders.
(A) The approval authority for all purchase orders, contracts, contract amendments, and change orders shall be set forth as follows:
(1) The City Manager shall have the authority to review, approve, and execute, on behalf of the City, all purchase orders or contracts for the purchase or acceptance of goods, materials, supplies, and services in an amount not exceeding $125,000 per purchase order or contract, so long as the proper procurement procedures set forth in this chapter have been followed.
(2) All purchase orders or contracts in excess of $125,000 or change orders that cause the total contract or purchase order to exceed $125,000 shall be submitted to the City Council for approval.
(3) The City Manager shall have the authority and discretion, up to the amount authorized under subsection (A)(1) of this section, to delegate the authority to review, approve, and execute contracts, purchase orders, contract amendments, and change orders of goods, materials, supplies, and services to specific department representatives based on the needs of the organization.
The department representative exercising such authority given above shall ensure that the total of all contracts, purchase orders, contract amendments, and change Ordinance No. 1645
orders does not exceed their delegated authority on a single contract or purchase order per fiscal year period, so long as the proper procurement procedures set forth in this chapter have been followed.
(B) For contracts under $125,000, the City Manager shall have the authority to approve in writing any change order directing an addition, deletion, or revision to such purchase orders or contracts; however, in no event shall the sum total of the purchase order or contract, including all such change orders, exceed $125,000 per purchase order or contract. Any change order in which a contract or purchase order will exceed $125,000 will require City Council approval. (C) After the effective date of any contract approved by the City Council for the purchase of services, equipment or supplies, the retention of professional services, or work on a public project, the City Manager shall have authority to approve in writing any amendment or change order directing an addition, deletion or revision in such contract, including, without limitation, plans, specifications, and the nature or quantity of services, equipment, supplies or work, so long as the cumulative dollar value of all such change orders relating to any one contract shall not exceed 15 percent of the original contract price unless City Council has authorized a different change order amount for a specific contract.
(D) Any change order exceeding the limitations set forth in subsection (C) of this section shall be submitted to the City Council for approval in the form of a contract amendment or supplemental agreement. Such amendment or supplemental agreement shall set forth the amended contract price, which will constitute the new contract price for purposes of the authority for City Manager-approved change orders or amendments in accordance with subsection (A) of this section. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1542 § 1, 2020; Ord. 1440 § 1, 2013; Ord. 1425 § 1, 2011; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.210,
3.08.220)
SECTION 10. This Ordinance is exempt from the California Environmental Quality Act (“CEQA”) under CEQA Guidelines 15378, 15061(b)(3), 15183, and Public Resources Code Section 21083.3(e).
(A) Under CEQA Guidelines Section 15061(b)(3), CEQA review is not required because there is no possibility that this Ordinance may have a significant effect upon the environment.
(B) Under CEQA Guidelines Section 15378, the proposed amendments are not a project under CEQA because they will not cause a “direct physical change in the environment” or a “reasonably foreseeable indirect physical change in the environment” because they do not authorize any specific development activity or promote new construction or growth.
Ordinance No. 1645
(C) Any potential indirect physical change in the environment is speculative and not reasonably foreseeable in light of the administrative changes set forth in this Ordinance.
SECTION 11. This Ordinance will become effective immediately upon adoption.
PASSED, APPROVED and ADOPTED this 21st day of August, 2024. ________________________________
Austin Bishop, Mayor
APPROVED AS TO FORM: 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 Ordinance was duly introduced, passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the ______ day of _____________, 20___ effective on the ____ day of ___________, 20___ by the following roll call vote:
AYES: ____
NOES:_______________________________________________________________ ABSTAIN:______________________ABSENT:_______________________________ Date: ____
Rochelle Scott, City Clerk
City Council Staff Report
DATE: AUGUST 21, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: NEIGHBORHOOD SERVICES
DISTRICT: 1
SUBJECT: ADOPT RESOLUTION NO. CC 2024 -075, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE TO APPLY FOR AND
ACCEPT THE LOS ANGELES COUNTY COUNCIL OF
GOVERNMENTS INTERIM HOUSING (IH) SERVICES FUND
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. CC 2024-075, a Resolution of the City Council of the City of Palmdale to apply for and accept the Los Angeles County Council of Governments Interim Housing (IH) Services Fund; and,
2. Authorize the City Manager or her designee to execute any documents related to the application, acceptance, and implementation of approved grant programs and projects of the Los Angeles County Council of Governments Interim Housing (IH) Services Fund.
BACKGROUND
Homelessness is a regional crisis. As such, one of the top priorities of the Chief Executive Office’s Homeless Initiative (CEO -HI) is to continue strengthening the collaboration between Los Angeles County and diverse stakeholders, including the County’s 88 cities. The County Board of Supervisors (“Board”) recognizes the importance of supporting cities and Councils of Governments (COG) across the County to strengthen the region’s homeless housing and services system. As such, the Board directed the Chief Executive Office Homeless Initiative (CEO-HI) to create a $10 million Cities and Councils of Governments Interim Housing Services (CCOGIHS) Fund to support services at interim housing projects located in local jurisdictions to create a pathway for People Experiencing Homelessness (PEH) to secure permanent housing.
The County was allocated State of California Homeless Housing, Assistance, and Prevention Program Round 3 (HHAP 3) funding which provides flexible block grant Report to Mayor and City Council
Re: Resolution No. CC 2024-075
August 21, 2024
funds to Continuums of Care, large cities with populations of 300,000 and above, and counties to build on the regional coordination created through previous California Homeless Coordinating and Financing Council grant funding and supports local jurisdictions in their unified regional responses to reduce and end homelessness. On November 2, 2021, the Board approved allocating $10 million of the County’s HHAP 3 funds to the CCOGIHS Fund. The IH Services Fund is allocated on a yearly basis.
DISCUSSION
Advancing Communities Together (ACT) is developing IH, the Palmdale Dream Village, a tiny home development. The Dream Village, through Case Management and Services (Program), supports disproportionately impacted individuals with goals of having a safe place to rest with standards of dignity, purpose, and a solid foundation on which to begin their transition from unhoused to stable and productive residents of Palmdale. The Program aims to increase the involvement of unhoused individuals and offer them a chance to be part of a supportive and transformative environment that helps them work toward stability. This will involve leveraging their strengths, resilience, and community support to achieve their personal goals. Palmdale’s Dream Village aligns with the City’s Homelessness Plan and related initiatives, aiming to offer safe and supportive housing conditions, comprehensive wraparound services, and workforce development programs.
The Antelope Valley does not have a COG structure in place; therefore, the CEO-HI is working directly with the cities in the Antelope Valley. The City of Palmdale has submitted an application for fiscal year 2024-2025 for $584,000 to sub-grant to ACT for the operation of the Palmdale Dream Village Interim Housing.
This project will be a vital resource, providing stability and support to up to 60 individuals annually as they transition from crisis to stable housing. The Program will include trauma-informed care, de-escalation strategies, and consistent engagement to ensure that each resident is treated with dignity and respect. The goal is to communicate and advocate for everyone to seek stability while addressing any challenges and barriers in their lives.
FISCAL IMPACT
$584,000; IH Services Fund of $584,000 from the Los Angeles County Council of Governments will be allocated to account 24225001.
Report to Mayor and City Council
Re: Resolution No. CC 2024-075
August 21, 2024
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
C. Pursue alternative financing opportunities for continued infrastructure improvements and quality community programs.
Prepared by: Sophia Reyes, Director of Neighborhood
Services
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 2024-075
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-075
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
TO APPLY FOR AND ACCEPT THE LOS ANGELES COUNTY COUNCIL
OF GOVERNMENTS INTERIM HOUSING (IH) SERVICES FUND
WHEREAS, Homelessness is a regional crisis. As such, one of the top priorities of the Chief Executive Office’s Homeless Initiative (CEO-HI) is to continue strengthening the collaboration between the County and diverse stakeholders, including the 88 cities in Los Angeles County. The Los Angeles County (“County”) Board of Supervisors (“Board”) recognizes the importance of supporting cities and Councils of Governments (“COGs”) across the County to strengthen the region’s homeless housing and services system. As such, the Board directed the Chief Executive Office Homeless Initiative (“CEO-HI”) to create a $10 million Cities and Councils of Governments Interim Housing Services (“CCOGIHS”) Fund to support services at interim housing projects located in local jurisdictions to create a pathway for people experiencing homelessness (“PEH”) to secure permanent housing; and WHEREAS, The County was allocated State of California Homeless Housing, Assistance, and Prevention Program Round 3 (“HHAP 3”) funding. HHAP 3 provides flexible block grant funds to Continuums of Care, large cities with populations of 300,000 and above, and counties to build on the regional coordination created through previous California Homeless Coordinating and Financing Council grant funding and supports local jurisdictions in their unified regional responses to reduce and end homelessness. On November 2, 2021, the Board approved allocating $10 million of the County’s HHAP 3 funds to the CCOGIHS Fund. The Interim Housing Services Fund is allocated on a yearly basis; and
WHEREAS, Advancing Communities Together (ACT) is developing Interim Housing, the Palmdale Dream Village is a tiny home development. The Dream Village, through Case Management and Services (Program), supports disproportionately impacted individuals with goals of having a safe place to rest with standards of dignity, purpose, and a solid foundation on which to begin their transition from unhoused to stable and productive residents of Palmdale. The Program aims to increase the involvement of unhoused individuals and offer them a chance to be part of a supportive and transformative environment that helps them work toward stability. This will involve leveraging their strengths, resilience, and community support to achieve their personal goals. Palmdale’s Dream Village aligns with the City’s Homelessness Plan and related initiatives, aiming to offer safe and supportive housing conditions, comprehensive wraparound services, and workforce development programs; and Resolution No. CC 2024-075
WHEREAS, The Antelope Valley does not have a Council of Governments structure in place, therefore, the CEO-HI is working directly with the cities in the Antelope Valley. The City of Palmdale has submitted an application for fiscal year 2024- 2025 for $584,000 to sub-grant to ACT for the operation of the Palmdale Dream Village Interim Housing.
WHEREAS, This project will be a vital resource, providing stability and support to up to 60 individuals annually as they transition from crisis to stable housing.
The Program will include trauma-informed care, de-escalation strategies, and consistent engagement to ensure that each resident is treated with dignity and respect.
The goal is to communicate and advocate for everyone to seek stability while addressing any challenges and barriers in their lives.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. The City of Palmdale authorizes the application and, if approved, the acceptance of the Los Angeles County Local Solutions Funds of $584,000 for fiscal year 2024-2025 and funding allocated in subsequent years.
SECTION 2. The City Manager or her designee is authorized and empowered to execute, in the name of the City of Palmdale, all necessary documents including, but not limited to, ratification, submission of applications, agreements, amendments, requests for payment, and reports. This is necessary to secure Los Angeles County Council of Governments Regional Homelessness Coordination and Local Solutions Funds, and to implement approved grant programs and projects.
SECTION 3. These authorizations are effective for four (4) years from the date of adoption of this resolution
SECTION 4. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED, and ADOPTED this 21st day of August, 2024. _________________________________
Approved as to form: Austin Bishop, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, City Clerk
City Attorney
Resolution No. CC 2024-075
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 21st day of August, 2024 by the following roll call vote:
AYES:
NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:
Rochelle Scott, City Clerk
City Council Staff Report
DATE: AUGUST 21, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
ECONOMIC DEVELOPMENT DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2024-076, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE DECLARING ITS
INTENTION TO RENEW THE PALMDALE TOURISM IMPROVEMENT
DISTRICT, ESTABLISH THE TIME AND PLACE OF A PUBLIC
MEETING AND A PUBLIC HEARING , AND GIVING NOTICE OF
SUCH PUBLIC MEETING AND PUBLIC HEARING
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. CC 2024-076, a Resolution of the City of Palmdale declaring its intention to renew the Palmdale Tourism Improvement District (PTID), establishing a public meeting date of September 18, 2024, establishing a public hearing date of October 16, 2024 , and giving notice of such pub lic meeting and public hearing; and,
2. Authorize the City Manager or her designee to execute any document related to the renewal of the PTID.
BACKGROUND
In California, Tourism Improvement Districts (TID) are primarily formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area.
The key difference between TIDs and othe r special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TID.
TID benefits include:
They are customized to fit the needs of each destination; They allow for a wide range of services, including destination marketing, tourism promotion, and sales lead generation;
Report to Mayor and City Council
Re: Reso No. CC 2024-076
August 21, 2024
They are designed, created, and governed by those who pay the assessment; They provide a stable funding source for tourism promotion; and, Funds cannot be diverted for other government programs.
Since creation of the PTID in 2021, lodging businesses have been self-assessed monthly with funds dedicated to increasing overnight stays during typically slower days (holidays and weekends) by helping to market Palmdale as a tourist, meeting and event destination.
Renewal of the PTID would continue to build upon the partnership between the City and the hotels in Palmdale to create additional tourism and visitor opportunities that both visitors and residents can enjoy. By continuing to utilize funds to host signature events, enhance tourism attractions, develop additional destinations, and make infrastructure improvements tourism and business travel would continue to increase, which would positively impact hotels, restaurants, and entertainment businesses.
DISCUSSION
Hotel owners and managers throughout Palmdale request to renew the PTID for an additional nine-year, eight-month term. Continued programs will include the attraction of special events, building upon existing partnerships that support regional and local events and programs, and improving infrastructure.,. All services provided by the PTID are intended to attract visitors and generate room nights for Palmdale hotels.
Hotel business owners are requesting that the PTID be renewed to continue a revenue source devoted to marketing Palmdale as a tourist, meeting and event destination. If renewed, the PTID would generate approximately $1,375,000 annually for the promotion of travel and tourism to the City.
The self-assessment rate is two percent of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than 30 consecutive days or stays of any officer or employee of a foreign government who is exempt by federal law or international treaty.
The City will collect the self-assessment from each lodging business located within the PTID boundaries and distribute the assessment to Visit Palmdale, which will be responsible for managing PTID programs as provided in the Management District Plan.
The Management District Plan also includes the boundary of the PTID, a service plan, budget, and means of governance. The PTID will include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City.
Report to Mayor and City Council
Re: Reso No. CC 2024-076
August 21, 2024
If the Resolution of Intention is approved, the next steps are as follows:
August 29, 2024 NOTICE
The Property and Business Improvement Law of 1994 requires the City to mail a written notice to the owners of all lodging businesses that will be assessed within the PTID. Mailing the notice begins a mandatory 45-day period in which owners may protest PTID renewal.
September 18, 2024 PUBLIC HEARING
Allow public testimony on the renewal of the PTID and levy of assessments. No Council action is required.
October 16, 2024 FINAL PUBLIC HEARING
If written protests are received from the owners of businesses in the PTID which will pay more than 50% of the assessments proposed to be levied, no further proceedings will be taken for a period of one year from the date of the finding of a majority protest by the Council.
Following the public hearing, if the Council decides to renew the PTID, the Council must adopt a Resolution of Formation.
FISCAL IMPACT
$0; There is no fiscal impact associated with this action. If the renewal of the PTID is approved at a later meeting, the City will receive a fee of one percent of the total amount collected to cover the costs of administration.
In addition, during the current PTID’s management, lodging businesses have reported increased weekend and holiday stays. As such, renewal of the PTID will likely continue to contribute toward increased transient occupancy tax and sales tax revenues as PTID programs are intended to increase visitation to the City.
STRATEGIC PLAN
Goal IV: Maintain a desirable community where everyone wants to live, work and play.
D. Develop and maintain diverse programs and events that inspire growth, pride and lifelong learning.
Report to Mayor and City Council
Re: Reso No. CC 2024-076
August 21, 2024
Prepared by: Luis Garibay, Director of Economic and
Community Development
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 2024-076
Palmdale Tourism and Improvement District Management District Plan Petition forms in support of Tourism Improvement District Renewal
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-076
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
DECLARING ITS INTENTION TO RENEW THE PALMDALE TOURISM
IMPROVEMENT DISTRICT, ESTABLISH THE TIME AND PLACE OF A
PUBLIC MEETING AND A PUBLIC HEARING, AND GIVING NOTICE OF
SUCH PUBLIC MEETING AND PUBLIC HEARING
WHEREAS, the City of Palmdale created the Palmdale Tourism Improvement District (PTID) on October 5, 2021, through Resolution No. CC 2021-096; and WHEREAS, the PTID was established for a five-year term which expires on October 31, 2026; and
WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the City to establish business improvement districts for the purposes of promoting tourism; and
WHEREAS, Visit Palmdale, lodging business owners, and representatives from the City of Palmdale have met to consider the renewal of the PTID; and WHEREAS, Visit Palmdale has drafted a Management District Plan (MDP) which sets forth the boundary of the PTID, a service plan, budget, and means of governance; and
WHEREAS, the PTID renewal includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City; and WHEREAS, lodging businesses that will pay more than 50% of the assessment under the PTID have petitioned the City Council to renew the PTID; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The City Council hereby finds as follows:
Resolution No. CC 2024-076
A. The City Council finds that lodging businesses that will pay more than 50% of the assessment proposed in the MDP have signed and submitted petitions supporting the renewal of the PTID. The City Council accepts the petitions and adopts this Resolution of Intention to renew the PTID and to levy an assessment on certain lodging businesses within the PTID boundaries in accordance with the Property and Business Improvement District Law of 1994.
B. The City Council finds that the MDP satisfies all requirements of Streets and Highways Code § 36622.
C. The City Council declares its intention to renew the PTID and to levy and collect assessments on lodging businesses within the PTID boundaries pursuant to the Property and Business Improvement District Law of 1994.
D. The PTID includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City as shown in the map attached as Exhibit A.
E. The name of the district will continue to be PTID.
F. The annual assessment rate is two percent of gross short-term room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than 30 consecutive days or stays of any officer or employee of a foreign government who is exempt by federal law or international treaty.
G. The assessments levied for the PTID must be applied toward sales, marketing and communications, and destination development programs to market assessed lodging businesses in Palmdale as tourist, meeting, and event destinations, as described in the MDP. Funds remaining at the end of any year may be used in subsequent years in which PTID assessments are levied as long as they are used consistent with the requirements of this Resolution and the MDP.
H. The renewed PTID will have a nine-year, eight-month term, beginning November 1, 2026, and ending on June 30, 2036, unless renewed pursuant to Streets and Highways Code § 36660.
I. Bonds will not be issued.
J. The time and place for the public meeting to hear testimony on renewing the PTID and levying assessments is set for September 18, 2024, at 5:00 pm, or as soon Resolution No. CC 2024-076
thereafter as the matter may be heard, at the Council Chambers located at 38300 Sierra Highway, Suite B, Palmdale, CA 93550.
K. The time and place for the public hearing to renew the PTID and the levy of assessments is set for October 16, 2024, at 5:00 pm, or as soon thereafter as the matter may be heard, at the Council Chambers located at 38300 Sierra Highway, Suite B, Palmdale, CA 93550. The City Clerk is directed to provide written notice to the lodging businesses subject to an assessment of the date and time of the meeting and hearing and to provide that notice as required by Streets and Highways Code § 36623, no later than August 29, 2024.
L. At the public meeting and hearing the testimony of all interested persons for or against the renewal of the PTID may be received. If at the conclusion of the public hearing, there is record of written protests by the owners of the lodging businesses within the proposed PTID that will pay more than 50% of the estimated total assessment of the PTID, no further proceedings to establish the PTID will occur for a period of one year.
M. The complete MDP is on file with the Department of Economic and Community Development and may be reviewed upon request.
N. This resolution shall take effect immediately upon its adoption by the City Council.
SECTION 3. The City Clerk shall certify the adoption of this Resolution.
PASSED, APPROVED and ADOPTED this 21st day of August, 2024. _________________________________
Approved as to form: Austin Bishop, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, City Clerk
City Attorney
Resolution No. CC 2024-076
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 21 st day of August, 2024, by the following roll call vote:
AYES:
NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:
Rochelle Scott, City Clerk
EXHIBIT A
Palmdale Tourism Improvement District Boundary Map
N
PALMDALE TOURISM IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN
Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq.
July 10, 2024
CONTENTS
I. OVERVIEW ........................................................................................................................................ 3 II. BACKGROUND ................................................................................................................................ 4 III. ACCOMPLISHMENTS ..................................................................................................................... 5 IV. BOUNDARY ....................................................................................................................................... 6 V. ASSESSMENT BUDGET AND SERVICES ................................................................................ 7 A. Annual Service Plan ............................................................................................................................. 7 B. Annual Budget ...................................................................................................................................... 9 C. California Constitutional Compliance ............................................................................................. 10 D. Assessment .......................................................................................................................................... 11 E. Interest and Overdue Charges .......................................................................................................... 12 F. Time and Manner for Collecting Assessments .............................................................................. 12 VI. GOVERNANCE ............................................................................................................................... 14 A. Owners’ Association .......................................................................................................................... 14 B. Brown Act and California Public Records Act Compliance ........................................................ 14 C. Annual Report .................................................................................................................................... 14 APPENDIX 1 – LAW .................................................................................................................................... 15 APPENDIX 2 – ASSESSED BUSINESSES ............................................................................................. 26 Prepared by
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PTID Management District Plan
July 10, 2024
3 I. OVERVIEW
Developed by Palmdale lodging businesses and the City of Palmdale (City), the Palmdale Tourism Improvement District (PTID) is a n assessment district proposed to continue to provide specific benefits to payors, by funding marketing and sales promotion efforts for assessed businesses. This approach has been used successfully in other destination areas throughout the country to provide the benefit of additional room night sales directly to payors. The PTID was created in 2021 for a five (5) year term. Visit Palmdale (VP) and Palmdale lodging businesses now wish to renew the PTID for an additional nine (9) year and eight (8) month term.
Location: The renewed PTID includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Palmdale, as shown on the map in Section IV.
Services: The PTID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Sales, marketing & communications, and destination development programs will increase demand for overnight tourism and market payors as tourist, meeting and event destination s, thereby increasing demand for room night sales.
Budget: The total PTID annual assessment budget for each full fiscal year (July 1 – June 30) of operation is anticipated to be approximately $ 1,375,000. The initial “year” of operations will be a partial year consisting of eight (8) months, with an anticipated assessment budget of $1,001,000. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and as lodging businesses open and close.
Cost: The annual assessment rate is two percent (2%) of gross short -term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days or stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
Collection: The City will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each lodging business located in the boundaries of the PTID. The City shall take all reasonable efforts to collect the assessments from each lodging business.
Duration: The renewed PTID will have a nine (9) year and eight (8) month life, beginning November 1, 2026, or as soon as possible thereafter, and ending nine (9) years and eight (8) months from its start date . After nine (9) years and eight (8) months , the PTID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if assessed business owners support continuing the PTID programs.
Management: Visit Palmdale (VP) shall continue to serve as the PTID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan and must provide annual reports to the City Council.
PTID Management District Plan
July 10, 2024
4 II. BACKGROUND
TIDs are an evolution of the traditional Business Improvement District. The first TID was formed in West Hollywood, California in 1989. Since then, over 100 California destinations have followed suit. In recent years, other states have begun adopting the California model – Illinois, Minnesota, Massachusetts, Montana, South Dakota, Washington, Colorado, Texas and Louisiana have adopted TID laws. Several other states are in the process of adopting their own legislation. The cities of Wichita, Kansas and Newark, New Jersey used an ex isting business improvement district law to form a TID. Additionally, some cities, like Portland, Oregon and Memphis, Tennessee have utilized their home rule powers to create TIDs without a state law.
California’s TIDs collectively raise over
$300 million annually for local
destination marketing. With competitors
raising their budgets, and increasing
rivalry for visitor dollars, it is important
that Palmdale lodging businesses
continue to invest in stable, commerce-
specific marketing programs.
TIDs utilize the efficiencies of private
sector operation in the market -based
promotion of tourism districts. TIDs allow tourism business owners to organize their efforts to increase commerce. Lodging business owners within the TID pay an assessment and those funds are used to provide services that increase commerce.
In California, most TIDs are formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a benefit assessment district to raise funds within a specific geographic area. The key difference between TIDs and other benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the district.
There are many benefits to TIDs:
• Funds must be spent on services and improvements that provide a specific benefit only to those who pay;
• Funds cannot be diverted to general government programs; • They are customized to fit the needs of payors in each destination; • They allow for a wide range of services;
• They are designed, created and governed by those who will pay the assessment; and • They provide a stable, long-term funding source for tourism promotion.
PTID Management District Plan
July 10, 2024
5 III. ACCOMPLISHMENTS
Since the inception of the PTID, large strides have been taken to further Palmdale’s position in the tourist economy with the intention to drive overnight visitation to assessed businesses. The PTID has embarked on a collaborative journey, partnering with U.S. Air Force Plant 42, the AV Walls Public Art Program, the Palmdale Amphitheater, the AV Fair, and the Aerospace Valley Air Show. Amidst these efforts, Visit Palmdale successfully launched the High Desert Beer and Wine Festival at the Palmdale Amphitheater, drawing enthusiastic crowd s to drive overnight visitation to assessed businesses. Concurrently, the PTID focused on refining Palmdale's brand identity with Simpleview and revamping the Visit Palmdale website, aiming to enhance the PTID’s online presence. Looking ahead, the PTID is anticipating the launch of its first visitor's guide, marking another milestone in Palmdale's ongoing development as a destination.
PTID Management District Plan
July 10, 2024
6 IV. BOUNDARY
The PTID will include all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Palmdale, as shown in the map below.
Lodging business means: any structure, or any portion of any such structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof.
A complete listing of assessed lodging businesses within the renewed PTID can be found in Appendix
2. PTID Management District Plan
July 10, 2024
7 V. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the City conferring the benefits or gra nting the privileges. The privileges and services provided with the PTID funds are sales, marketing & communications and destination development programs available only to assessed businesses.
A service plan assessment budget has been developed to deliver services that benefit the assessed businesses. A detailed annual assessment budget will be developed and approved by VP. The chart below illustrates the initial annual assessment budget for the fiscal year November 1, 2026 – June 30, 2027, which covers the initial eight (8) month period of the PTID. These activities and allocations will also apply in sequent years.
Although actual revenues will fluctuate due to market conditions, the proportional allocations of the budget shall remain the same. The chart below illustrates the annual assessment budget for fiscal year two (July 1, 202 7 - June 30, 2028). However, the City and the VP board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the PTID, any and all assessment funds may be used for the costs of defending the PTID.
Sales, Marketing &
Communications (76%)
$760,760
Destination Development (6%)
$60,060
Administration (15%)
$150,150
Contingency/Reserve (2%)
$20,020
City Collection (1%)
$10,010
Fiscal Year 2026 - 2027 (November- June)
Assessment Budget- $1,001,000
PTID Management District Plan
July 10, 2024
8 Each budget category includes all costs related to providing that service. For example, the sales and marketing budget may include project management, graphic design, promotional materials, media buys, staff time dedicated to overseeing and implementing the sales and marketing program, as well as other related costs and servic es. The costs of an individual staff member may be allocated to multiple budget categories.
Sales, Marketing, and Communications
A sales, marketing and communications program will promote assessed businesses as tourist, meeting, and event destination. The sales, marketing and communications program will have a central theme of promoting the destination as a desirable place for overnight visits. The program will have the goal of increasing demand for overnight visitation and sales at assessed businesses, and may include the following activities:
• Development of a marketing plan to ensure district funds are strategically spent to market assessed businesses;
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation to assessed businesses;
• Content development for photoshoots and video shoots for digital promotion, featuring assessed businesses to drive overnight visitation and sales to assessed businesses; • Preparation and production of collateral promotional materials such as brochures, visitor guides, promotional items, postcards, flyers and maps featuring assessed businesses; • Advertising targeted at potential visitors to drive overnight visitation and sales to assessed businesses;
• Implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to drive overnight visitation and increase sales at assessed businesses;
Sales, Marketing &
Communications (76%)
$1,045,000
Destination Development (6%)
$82,500
Administration (15%)
$206,250
Contingency/Reserve (2%)
$27,500
City Collection (1%)
$13,750
Fiscal Year 2027/2028 (July - June)
Assessment Budget- $1,375,000
PTID Management District Plan
July 10, 2024
9 • Attendance and sponsorship of trade shows, professional industry conferences, and affiliation events to promote assessed businesses;
• Lead generation activities designed to attract tourists, business travelers, and group events to assessed businesses;
• Familiarization tours of assessed businesses;
• Visitor Service programs and enhancements, such as kiosks and Visitor Centers, that will enhance the visitor experience;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses;
• Joint partnerships with local businesses as well as local and state tourism organizations to increase overnight visitation at assessed businesses; and
• Development of Visitor Studies and Return on Investment (ROI) analysis on effectiveness of district funds to improve effectiveness and increase demand for overnight visitation at assessed businesses.
Destination Product Development
The Destination Project Development projects may include:
• Infrastructure improvements, acquisition and/or site development that enhance the destination’s competitive position to attract visitors, filming, sporting events, and special events year-round, to increase sales at assessed businesses;
• Comprehensive and integrated wayfinding signage system and/or banner program targeted to increase demand for visitation and increase sales at assessed businesses; and • Other programs and activities that will enhance the visitor experience to increase sales at assessed businesses.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, audits, legal, and accounting fees.
Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, or higher than anticipated program costs, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program or administrat ion costs at the discretion of the Board.
Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of the Owners’ Association.
Additionally, in the event there are contingency/reserve funds remaining near the end of the PTID’s term, contingency/reserve funds may be used for the cost of renewing the PTID.
City Collection Fee
The City shall retain a fee equal to one percent (1%) of the amount of assessments collected, to cover collection and administration costs.
B. Annual Budget
The total PTID annual assessment budget for each full fiscal year (July 1 – June 30) of operation is anticipated to be approximately $1,375,000. The initial “year” of operation will be a partial year consisting of eight (8) months, with an anticipated assessment budget of $1,001,000. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate 10 as room sales do, and as businesses open and close . The total assessment budget for the entire nine (9) year and eight (8) month term of the PTID is anticipated to be approximately $13,376,000.
The annual assessment rate is two percent (2%) of gross short -term sleeping room rental revenue.
Based on the benefit received, assessments will not be collected on: stays of more than thirty (30) consecutive days; stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
C. California Constitutional Compliance
The PTID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property. 1 Rather, the PTID assessment is a business -based assessment, and is subject to Proposition 26.
Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions. Two of these exceptions apply to the PTID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the City of Palmdale conferring the benefits or providing the services.
1. Specific Benefit
Proposition 26 requires that assessment funds be expe nded on, “ a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed businesses, and are intended only to provide benefits and services directly to those businesses paying the assessment. These services are tailored not to serve the general public , businesses in general, or parcels of land, but rather to serve the specific businesses within the PTID. The activities described in this Plan are specifically targeted to increase demand for room night sales for assessed lodging businesses within the boundaries of the City of Palmdale, and are narrowly tailored. PTID funds will be used exclusively to provide the specific benefit of increased demand for room night sales directly to the assessees. Assessment funds shall not be used to feature non -assessed lodging businesses in PTID programs, or to directly generate sales for non-assessed businesses. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. Nothing in this Plan limits the ability of the Owners’ Association to enter into private contracts with non-assessed lodging businesses for the provision of services to those businesses.
The assessment imposed by this PTID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in demand for room night sales. The specific benefit of an increase in demand for room night sales for assessed lodging businesses w ill be provided only to lodging businesses paying the district assessment, with sales, marketing & communications and destination developmen t programs promoting lodging businesses paying the PTID assessment. The sales, marketing & communications and destination development programs will be designed to increase room night sales at each assessed lodging businesses. Because the y are necessary to provide the sales, marketing & communications and destination developmen t programs that specifically benefit the assessed lodging businesses, the administration and contingency services also provide the specific benefit of increased demand for room night sales to the assessed lodging businesses.
1 Jarvis v. the City of San Diego 72 Cal App. 4th 230
2 Cal. Const. art XIII C § 1(e)(1)
PTID Management District Plan
July 10, 2024
11 Although the PTID, in providing specific benefits to payors, may produce incidental benefits to non- paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3
2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product .”4 The legislature has recognized that marketing and promotions services like those to be provided by the PTID are government services within the meaning of Proposition 26 5. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6
3. Reasonable Cost
PTID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the PTID, and reports submitted on an annual basis to the City. Only assessed lodging businesses will be featured in marketing materials, receive sales leads generated from PTID-funded activities, be featured in advertising campaigns, and benefit from other PTID-funded services. Non- assessed lodging businesses will not receive these, nor any other, PTID-funded services and benefits.
The PTID-funded programs are targeted directly to benefit assessed businesses. PTID funds shall only be spent to benefit the assessed businesses, and shall not be spent on that portion of any program which directly generates incidental room nights for non-assessed businesses.
D. Assessment
The annual assessment rate is two percent (2%) of gross short-term sleeping room rental revenue.
Based on the benefit received, assessments will not be collected on stays of more th an thirty (30) consecutive days or stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
The assessment was calculated based on the total cost of the activities to be provided for the benefit of the businesses within the PTID, with costs allocated based on the proportional benefit conferred to each business. Activities funded by the PTID, are specifically targeted to increase room nights at assessed businesses. All room night sales do not represent the same benefit to the payors. For example, a higher priced room night is of greater benefit than a lower priced room night because the asses see derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to asses sed businesses with higher priced room nights.
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)
PTID Management District Plan
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The term “gross room rental revenue” as used herein means: the consideration charged for the occupancy of space in a hotel, valued in money, not including other changes such as destination fees, resort fees, reservation fees, forfeited deposits, cancelation fees, attrition fees, no -show fees, parking fees, internet fees, roll-a-way beds fees, early and/or late checkout fees, or any other charges or fees (existing or in the future).
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the PTID assessment is identified separately it shall be disclosed as the “PTID Assessment.” As an alternative, the disclosure may include the amount of the PTID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be con sidered revenue for calculation of transient occupancy taxes.
Bonds shall not be issued.
E. Interest and Overdue Charges
The PTID shall reimburse the City of Palmdale for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent PTID assessment are sought to be recovered in the same collection action by the City, the PTID shall bear its pro rata share of such collection costs.
Assessed lodging businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency: Any lodging business owner who fails to remit any assessment imposed by this section within the time required shall pay a overdue charge of 10 percent (10%) of the amount of the unpaid assessment in addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business owner who fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency overdue charge of 10 percent (10%) of the amount of unpaid assessment, in addition to the amount of the assessment and the 10 percent (10%) overdue charge first imposed.
3. Fraud: If the City determines that the nonpayment of any remittance due under this section is due to fraud, an overdue charge of 25 percent (25%) of the amount of the assessment shall be added thereto in addition to the overdue charge stated in this section.
4. Interest: In addition to the overdue charge imposed, any lodging business owner who fails to remit any assessment imposed by this section shall pay interest at the rate of one and one-half percent (1.50%) per month or fraction thereof on the amount of unpaid assessment, exclusive of overdue charges, from the date on which the remittance first became delinquent until paid.
5. Overdue Charges Merged with Assessment: Every overdue charge imposed and such interest as accrued under the provisions of this chapter shall become a part of the assessment herein required to be paid.
F. Time and Manner for Collecting Assessments
The PTID assessm ent will be imple mented beginning November 1, 2026, or as soon as possible thereafter, and ending nine (9) years and eight (8) months from its start date. The City will be responsible for collecting the assessment on a monthly basis (including a ny delinquencies, interest a nd overdue charges) from each lodging business located in their respectiv e jurisdictions. The City shall take all PTID Management District Plan
July 10, 2024 12
PTID Management District Plan
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13 reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association.
PTID Management District Plan
July 10, 2024
14 VI. GOVERNANCE
A. Owners’ Association
The City Council , through adoption of this Management District Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the PTID as defined in Streets and Highways Code §36612.
The City Council has determined that VP will continue to serve as the Owner s’ Association for the PTID. VP shall be comprised of up to (7) directors as follows:
i. A majority of the Directors shall be owners or owner representatives of businesses paying the Palmdale Tourism Improvement District (PTID) assessment. ii. At least one (1) Director shall be an owner or owner representative of a lodging business with 100 rooms or less.
iii. Two (2) Directors shall be representatives from the City of Palmdale, (1) from the Palmdale City Council and one (1) City Representative.
iv. At least one (1) Director shall be a representative of a non-lodging business in hospitality or tourism sector located in the City of Palmdale.
B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act. Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record-keeping and disclosure requirements of the California Public Records Act.
C. Annual Report
VP shall present an annual report at the end of each year of operation to the City Council pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient deta il to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
PTID Management District Plan
July 10, 2024
15 APPENDIX 1 – LAW
*** THIS DOCUMENT IS CURRENT THROUGH THE 2023 SUPPLEMENT *** (ALL 2022 LEGISLATION)
STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part
This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed.
Therefore, for special benefits to exist as a separate and distinct category from general benefits, the PTID Management District Plan
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16 incidental or collateral effects of those special benefits are inherently part of those special benefits.
The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits.
(3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits.
Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part
The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act. This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes.
36603. Preemption of authority or charter city to adopt ordinances levying assessments Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)). 36603.5. Part prevails over conflicting provisions
Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability
This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.
ARTICLE 2. Definitions
36606. “Activities”
“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”
“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”
“Business” means all types of businesses and includes financial institutions and professions.
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17 36608. “City”
“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”
“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement, and which is a city within the meaning of this part. 36609.4. “Clerk”
“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”
“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”
“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”
“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”
“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this sec tion, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, disc ussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district.
36614. “Property”
“Property” means real property situated within a district.
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18 36614.5. “Property and business improvement district”; “District” “Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”
“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”
“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”
“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. W herever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”
(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value.
(b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant”
“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.
ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the ra ising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.
CHAPTER 2. Establishment
36620. Establishment of property and business improvement district A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council
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19 A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city.
36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district.
The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed t o be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan
The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district c reated pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities and a PTID Management District Plan
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20 statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shal l satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or bu siness. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years. Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The mana gement district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or busin esses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a publi c improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property -based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improv ements, maintenance, or activities of a property -based district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identif ied parcel. (3) In a property -based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property -based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan. (m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment
(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be mailed to the owners of the businesses propose d to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the PTID Management District Plan
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21 public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a descripti on of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivi sion (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners.
36624. Changes to proposed assessments
At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclu de territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation
(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to p rovide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.
Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district.
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22 (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property -based district, that property within the district will receive a special benefit.
(8) In a property -based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram
Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners
The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improveme nts, maintenance, and activities, provided that any property - based assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.
CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property
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23 (a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of det ermining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining t he benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part.
36633. Time for contesting validity of assessment
The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan
The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention (a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627.
CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments PTID Management District Plan
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24 (a)The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks -Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.
CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council (a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.
The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district. 36651. Designation of owners’ association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.
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25 CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.
CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30 -day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continu e for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. Th e public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.
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26 APPENDIX 2 – ASSESSED BUSINESSES
Lodging Business* Business Address
Best Western 600 W Palmdale Blvd, Palmdale, CA 93551
Courtyard by Marriott 530 W Rancho Vista Blvd, Palmdale, CA 93551 Doubletree 300 W Palmdale Blvd, Palmdale, CA 93551
Element Hotel 39325 Trade Center Drive, Palmdale, CA 93551 Embassy Suites 39375 5th St W, Palmdale, CA 93551
Palms Inn & Suites 430 W Palmdale Blvd, Palmdale, CA 93551 Fairfield Inn & Suites 1052 W Ave O-8, Palmdale, CA 93551 Hampton Inn & Suites 9428 Trade Center Dr, Palmdale, CA 93551 Hilton Garden Inn 1309 W Rancho Vista Blvd, Palmdale, CA 93551 Holiday Inn 38630 5th St W, Palmdale, CA 93551
Home2 Suites 38750 5th St W, Palmdale, CA 93551
Motel 6 407 West Palmdale Blvd, Palmdale, CA, 93551
OYO Hotel 217 E Palmdale Blvd, Palmdale, CA 93550
Palm Motel 38535 6th St E, Palmdale, CA 93550
Red Roof Inn 200 W Palmdale Blvd, Palmdale, CA 93551
Residence Inn by Marriot 514 West Avenue P, Rancho Vista Blvd, Palmdale, CA 93551 Sherwood Motel 1331 E Palmdale Blvd, Palmdale, CA 93550 Staybridge Suites Palmdale 420 W Park Dr, Palmdale, CA 93550 *List as of July 2024
PETITION TO THE CITY OF PALMDALE
TO RENEW THE PALMDALE TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Palmdale Tourism Improvement District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.
Business Establishment & Address
Business Owner
The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.
Owner /Owner Representative Name (printed) Title
Owner/Owner Representative Signature Date A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:
Visit Palmdale
Megan Taggart
38300 Sierra Highway
Palmdale, CA 93550
(661) 443-2781
Ramy Ammar
General Manager
8/8/24
EMBASSY SUITES PALMDALE
39375 5th ST W, Palmdale, CA 93551
Palmdale Lodging ASS.
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
Location: The renewed Palmdale Tourism Improvement District (PTID) includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Palmdale, as shown on the map in luded herein.
Services: The PTID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Sales, marketing & communications, and destination development programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.
Budget: The total PTID annual assessment budget for each full fiscal year (July 1 – June 30) of operation is anticipated to be approximately $1,375,000. The initial “year” of operations will be a partial year consisting of eight (8) months, with an anticipated assessment budget of $ 1,001,000. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and as lodging businesses open and close.
Cost: The annual assessment rate is two percent (2%) of gross short -term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days or stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
Collection: The City of Palmdale will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each lodging business located in the boundaries of the PTID. The City of Palmdale shall take all reasonable efforts to collect the assessments from each lodging business.
Duration: The renewed PTID will have a nine (9) year and eight (8) month life, beginning November 1, 2026 or as soon as possible thereafter, and ending nine (9) years and eight (8) months from its start date. After nine (9) years and eight (8) months, the PTID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. if assessed business owners support continuing the PTID programs.
Management: Visit Palmdale shall continue to serve as the PTID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs, and must provide annual reports to the City Council.
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
PETITION TO THE CITY OF PALMDALE
TO RENEW THE PALMDALE TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Palmdale Tourism Improvement District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.
Business Establishment & Address
Business Owner
The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.
Owner /Owner Representative Name (printed) Title
Owner/Owner Representative Signature Date A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:
Visit Palmdale
Megan Taggart
38300 Sierra Highway
Palmdale, CA 93550
(661) 443-2781
Hilventures, LP
Authorized Representative
7/16/2024
By:
1309 W Rancho Vista Blvd., Palmdale, CA 93551
HilVentures, LP
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
Location: The renewed Palmdale Tourism Improvement District (PTID) includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Palmdale, as shown on the map in luded herein.
Services: The PTID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Sales, marketing & communications, and destination development programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.
Budget: The total PTID annual assessment budget for each full fiscal year (July 1 – June 30) of operation is anticipated to be approximately $1,375,000. The initial “year” of operations will be a partial year consisting of eight (8) months, with an anticipated assessment budget of $ 1,001,000. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and as lodging businesses open and close.
Cost: The annual assessment rate is two percent (2%) of gross short -term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days or stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
Collection: The City of Palmdale will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each lodging business located in the boundaries of the PTID. The City of Palmdale shall take all reasonable efforts to collect the assessments from each lodging business.
Duration: The renewed PTID will have a nine (9) year and eight (8) month life, beginning November 1, 2026 or as soon as possible thereafter, and ending nine (9) years and eight (8) months from its start date. After nine (9) years and eight (8) months, the PTID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. if assessed business owners support continuing the PTID programs.
Management: Visit Palmdale shall continue to serve as the PTID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs, and must provide annual reports to the City Council.
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
PETITION TO THE CITY OF PALMDALE
TO RENEW THE PALMDALE TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Palmdale Tourism Improvement District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.
Business Establishment & Address
Business Owner
The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.
Owner /Owner Representative Name (printed) Title
Owner/Owner Representative Signature Date A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:
Visit Palmdale
Megan Taggart
38300 Sierra Highway
Palmdale, CA 93550
(661) 443-2781
Holiday Inn Palmdale
38630 5th St W
Palmdale, CA 93551
Palmdale Park, LLC
38630 5th St W
Palmdale, CA 93551
Rory Casalla
General Manager
8/7/2024
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
Location: The renewed Palmdale Tourism Improvement District (PTID) includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Palmdale, as shown on the map in luded herein.
Services: The PTID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Sales, marketing & communications, and destination development programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.
Budget: The total PTID annual assessment budget for each full fiscal year (July 1 – June 30) of operation is anticipated to be approximately $1,375,000. The initial “year” of operations will be a partial year consisting of eight (8) months, with an anticipated assessment budget of $ 1,001,000. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and as lodging businesses open and close.
Cost: The annual assessment rate is two percent (2%) of gross short -term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days or stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
Collection: The City of Palmdale will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each lodging business located in the boundaries of the PTID. The City of Palmdale shall take all reasonable efforts to collect the assessments from each lodging business.
Duration: The renewed PTID will have a nine (9) year and eight (8) month life, beginning November 1, 2026 or as soon as possible thereafter, and ending nine (9) years and eight (8) months from its start date. After nine (9) years and eight (8) months, the PTID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. if assessed business owners support continuing the PTID programs.
Management: Visit Palmdale shall continue to serve as the PTID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs, and must provide annual reports to the City Council.
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
PETITION TO THE CITY OF PALMDALE
TO RENEW THE PALMDALE TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Palmdale Tourism Improvement District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.
Business Establishment & Address
Business Owner
The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.
Owner /Owner Representative Name (printed) Title
Owner/Owner Representative Signature Date A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:
Visit Palmdale
Megan Taggart
38300 Sierra Highway
Palmdale, CA 93550
(661) 443-2781
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
Location: The renewed Palmdale Tourism Improvement District (PTID) includes all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Palmdale, as shown on the map in luded herein.
Services: The PTID is designed to provide specific benefits directly to payors by increasing awareness and demand for room night sales. Sales, marketing & communications, and destination development programs will increase demand for overnight tourism and market payors as tourist, meeting and event destinations, thereby increasing demand for room night sales.
Budget: The total PTID annual assessment budget for each full fiscal year (July 1 – June 30) of operation is anticipated to be approximately $1,375,000. The initial “year” of operations will be a partial year consisting of eight (8) months, with an anticipated assessment budget of $ 1,001,000. A similar assessment budget is expected to apply to subsequent years, but this budget is expected to fluctuate as room sales do, and as lodging businesses open and close.
Cost: The annual assessment rate is two percent (2%) of gross short -term sleeping room rental revenue. Based on the benefit received, assessments will not be collected on stays of more than thirty (30) consecutive days or stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty.
Collection: The City of Palmdale will be responsible for collecting the assessment on a monthly basis (including any delinquencies, interest, and overdue charges) from each lodging business located in the boundaries of the PTID. The City of Palmdale shall take all reasonable efforts to collect the assessments from each lodging business.
Duration: The renewed PTID will have a nine (9) year and eight (8) month life, beginning November 1, 2026 or as soon as possible thereafter, and ending nine (9) years and eight (8) months from its start date. After nine (9) years and eight (8) months, the PTID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. if assessed business owners support continuing the PTID programs.
Management: Visit Palmdale shall continue to serve as the PTID’s Owners’ Association. The Owners’ Association is charged with managing funds and implementing programs, and must provide annual reports to the City Council.
EXHIBIT A
MANAGEMENT DISTRICT PLAN SUMMARY
PETITION TO THE CITY OF PALMDALE
TO RENEW THE PALMDALE TOURISM IMPROVEMENT DISTRICT
We petition you to initiate proceedings to renew the Palmdale Tourism lmprovement District in accordance with the Property and Business lmprovement Distrist Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.
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owner /owner Representative Name (printed) Title
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Owner/Owner presentati ignature Date
A complete copy of the Management District Plan will be furnished upon request. Requestsfora complete copy of the Management District Plan should be made to:
Visit Palmdale
Megan Taggart
38300 Sierra HighwaY
Palmdale, CA 93550
l66tl 443-2787
Business Establishment & Address Business Owner
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City Council Staff Report
DATE: AUGUST 21, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
ENGINEERING DIVISION
DISTRICT: 4
SUBJECT: NOTICE OF COMPLETION – ACCEPT PUBLI C STREETS AND LANDSCAPE IMPROVEMENTS FOR TRACT 73068 LOCATED AT
PALMDALE BOULEVARD AND OAK STREET
RECOMMENDATION
Staff recommends that the City Council:
1. Accept the Notice of Completion (NOC) for completed public streets and landscape improvements for Tract 73068 located at Palmdale Boulevard & Oak Street; and,
2. Authorize the City Manager or her designee to file an NOC and release the security for the completed public streets and landscape improvements.
BACKGROUND
This project, located east of Caltrans right-of-way on Palmdale Boulevard and Oak Street (52nd Street East), constructed public street and landscape improvements within Tract 73068 and the existing City’s right -of-way on Palmdale Boulevard . Improvements included 38 streetlights, two drainage basin pumps, one basin, streets, irrigation , and landscaping. Said public improvements have been installed per the approved construction plan, inspected, and approved by City Public Works inspection staff.
DISCUSSION
The NOC is being brought forth in accordance with Section 16.110.060 of the Palmdale Municipal Code. This Council action will accept the public streets and landscape improvements as complete and initiate the City’s release of applicable securities posted for this project per the City’s subdivision regulation.
The required public streets and landscape improvements for the project are listed in Exhibit A and shown in Exhibit B and have been completed to the satisfaction of the City Report to Mayor and City Council
Re: NOC Completed Public Improvements – Tract 73068
August 21, 2024
Engineer as required in the Subdivision/Development Improvement Agreement between the developer and the City. After the developer fulfills a one-year maintenance period, the improvements along Palmdale Blvd. and within Tract 73068 will be transferred from the developer to the City.
FISCAL IMPACT
$59,781; The estimated additional maintenance and administrative costs are $59,781 annually. The landscaping annual maintenance valuation is $32,102.50, and the streetlight annual maintenance valuation is $27,678.50. Both sets of improvements have been incorporated into Community Facilities District (CFD) 2022-1, Citywide Maintenance and Services, Annexation No. 1. The maintenance and administrative costs are expected to be sustained by the annual levy and cost recovery provided within the annexation documents.
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: Hamed Hashemian, P.E., Deputy 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
NOC 21-31
Exh A List of Completed Public Improvements
Exh B Site Map Location
Site Photo
RECORDING REQUESTED BY:
CITY OF PALMDALE
WHEN RECORDED MAIL TO:
CITY OF PALMDALE
OFFICE OF THE CITY CLERK
38300 SIERRA HIGHWAY, SUITE C
PALMDALE, CA 93550
Space above this line is for Recorder’s Use
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 3093, is hereby given that:
1. The undersigned is owner or corporate officer of the interest or estate stated below in the property hereinafter described.
2. The full name of the owner is City of Palmdale, a Municipal Corporation.
3. The full address of the owner is 38300 Sierra Highway, Palmdale, CA 93550.
4. The nature of interest or estate of the owner is: Streets and Landscape Maintenance District Improvements-TR73068.
5. A work of improvement on the property hereinafter described was completed on July 16, 2024
6. The work done was: “ Streets and Landscape Maintenance District Improvements- TR73068”,
7. The name of the Contractor for such work of improvement: Maison’s Palmdale Blvd. 170, LP.
8. The property on which said work of improvement was completed is in the City of Palmdale, County of Los Angeles, State of California, and is described as follows: Palmdale Boulevard and Oak Street.
9. The address of said property is: Tract 73068.
Dated: August 21, 2024
CITY OF PALMDALE
Hamed Hashemain, P.E., Deputy Director of
Public Work
____________________________________________________________________________
VERIFICATION
I, the undersigned, say: I am the Interim Director of Public Works , the declarant of the foregoing notice of completion; I have read the said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.
Executed on August 21, 2024, in the City of Palmdale, California.
Hamed Hashemian, P.E., Deputy Director of Public
Works
EXHIBIT A
LIST OF COMPLETED PUBLIC IMPROVEMENTS
Tract/Project Plan # Quantity Security
TR73068 ST 21-31 4,702 LF $1,423,900 Streets Improvement
TR73068 LS 21-31 16,036 SQFT $113,900 LMD Improvement
EXHIBIT B
SITE MAP
EHX C
Palmdale Blvd. & Oak Street
City Council Staff Report
DATE: AUGUST 21, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: ALL
SUBJECT: APPROVE PRE-QUALIFIED LIST OF CONSULTANTS TO PERFORM
ON-CALL PROFESSIONAL ENGINEERING AND ARCHITECTURAL
SERVICES WITH A NOT TO EXCEED TOTAL AGGREGATE AMOUNT
OF $ 12,000,000 FOR A THREE-YEAR TERM WITH THE OPTION TO
EXTEND TWO ONE-YEAR TERMS
RECOMMENDATION
Staff recommends that the City Council:
1. Approve pre-qualified list of consult ants to perform on-call professional engineering services with a not to exceed total aggregate amount of $12,000,000 for a three-year term with the option to extend two one-year terms;
2. Authorize the City Manager or her designee to execute multiple on -call professional engineering and architectural services agreements , with the pre - qualified consultants, including minimal and/or non-substantial changes; and,
3. Authorize the City Manager or her designee to exercise the option to extend the agreements for two additional one-year terms.
BACKGROUND
The Public Works Department is responsible for administering the Capital Improvement Program (CIP) budget of approxim ately $197,895,100 , which includes overseeing the project planning, environmental review, right -of-way review, design , plans, and specifications, construction, and construction oversight of infrastructure improvements projects relating to street s, traffic signals, sanitary sewer, storm drain, landscape maintenance districts, parks, and facilities.
There are f ive vacancies in the Engineering and CIP Divisions. On-call contracts allow the Divisions to continue providing essential engineering tasks and CIP ca pital Report to Mayor and City Council
Re: Approve Pre-qualified List of On-Call Consultants
August 21, 2024
improvement project services without delay and interruption while recruitment is in the process to fill vacancies and during substantial project periods.
DISCUSSION
On March 1, 2024, the City advertised a Request for Qualifications (RFQ) for on-call professional engineering and architectural services for a three-year term with option to extend two one-year terms. The RFQ included ten engineering and architectural disciplines including general civil engineering, traffic engineering, environmental planning, geotechnical engineering, architectural design, parks, landscape and irrigation design, construction management, storm water pollution prevention, asset management and condition assessment, and engineering staff augmentation.
On April 3, 2024, the City received 41 Statements of Qualifications (SOQ) from consultants across all the RFQ disciplines. Staff reviewed the SOQs and recommends 21 firms, listed in Attachment 1, for City Council consideration.
As the need arises, a job proposal from three or more consultants will be requested. The consultants will be required to include a brief work description, staff resumes, the total proposed costs, and references for similar past projects performed. Funding will be allocated from designated project budgets. All work will proceed on the written approval of the Director of Public Works.
A Request for Proposal (RFP) or Invitation for Bid (IFB) will be prepared and advertised for Public Works projects in accordance with California Public Contract Code, Division 2, Part 1 and Division 2, Part 3, the Local Agency Public Construction Act, including the Alternate Provisions of the Uniform Public Construction Cost Accounting Act, and the Palmdale Municipal Code Section 3.08.170
FISCAL IMPACT
$12,000,000; Funding sources will vary for each capital project ranging from but not limited to the following: General Fund, Measure M, Measure R, Proposition C, and RMRA SB1 grants. A budget of $4,000,000 is allocated for FY 2024-25 and future allocations will be proposed through the annual budget process.
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
A. Seek innovative, cost-effective, customer-focused methods of service delivery.
C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
Report to Mayor and City Council
Re: Approve Pre-qualified List of On-Call Consultants
August 21, 2024
Prepared by: Hamed Hashemian, P.E.,
Deputy 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
Atch 1 - List of On-Call Consultants
Attachment 1
City Council Meeting 8/21/2024
List of Pre-Qualified Consultants
General Civil Engineering Parks, Landacape and Irrigation Design Antelop Valley Engineering Interwest Consulting Group
Rick Engineering Kimley-Horn and Associates, Inc.
Wildan Wildan
MNS Engineers RJM Design Group, Inc.
Onward Engineering David Volz Design Landscape Architects, Inc.
Michael Baker International, Inc.
Construction Management
Traffic Engineering
Psomas
Psomas MNS Engineers
Rick Engineering Ardurra Group, Inc.
STC Traffic, Inc. Wildan
Transtech Engineering, Inc.
Wildan Engineering Survey and Mapping
Environmental Planning JT Engineering
Michael Baker International, Inc.
Kimley-Horn and Associates MNS Engineers
Michael Baker International, Inc.
MNS Engineers StormWater Pollution Prevention
Geotechnical Engineering Encompass Consultant Group, Inc.
MNS Engineers
Geocon West, Inc. JT Engineering
The converse Professional Group Wildan
Wildan Engineering
Engineering Staff Augmentation
Architectural Design
Ardurra Group, Inc.
Perkins Eastman Interwest Consulting Group
CWA AIA, Inc. Onward Engineering
Huitt-Zollars Inc. Psomas
Rick Engineering
Asset Management and Condition Assessment STC Traffic, Inc.
No selection
CC/SA – August 7, 2024 – 5pm 1
MINUTES
CITY COUNCIL/SA
CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B
PALMDALE, CALIFORNIA
AUGUST 7, 2024
www.cityofpalmdale.org
1) CALL MEETING TO ORDER
Mayor Bishop called the meeting to order at 5:03 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.
The following observances were ackn owledged for the month of August: National Traffic Awareness Month and National Night Out.
4) PRESENTATION
4.1) Presentation by Kids Feeding Kids thru Agriculture and Recognition of 2024 Palmdale High School Students who participated in the 2024 Antelope Valley Livestock Auction.
Ms. Dino provided a PowerPoint presentation on the Kids Feeding Kids program.
Mayor Bishop called for a break from 5:44 pm - 5:56 pm.
5) PUBLIC COMMENTS CONSENT CALENDAR, APPOINTMENT(S), NEW
BUSINESS, AND CLOSED SESSION
Public Comments: None.
Councilmember Alarcón pulled Items 6.4 and 6.5, and Mayor Bishop pulled Item 6.6.
CC/SA – August 7, 2024 – 5pm 2
6) CONSENT CALENDAR
6.1) Waive full reading of the Resolution(s) and/or Ordinance(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) Receive and file the Monthly and Quarterly Investment Reports for June 2024.
6.3) Approve Agreement with Willdan Engineering to provide Innovative Solutions and Smart City Program consulting services in an amount not to exceed $750,000 for a term of three (3) years with an option to extend two one -year terms in an amount not to exceed $250,000 each additional year.
6.4) Approve Agreement with JAD Hoyos, Inc., dba Feathers Custom Signs to provide anti -graffiti vinyl wrap services for 160 City -owned utility cabinets along roadways in the amount of $150,000 for a term of one year with the option to extend two one-year terms.
Management Analyst Garcia and Councilmember Alarcón provided detailed information on the project.
Motion: Approve Agreement with JAD Hoyos, Inc., dba Feathers Custom Signs to provide anti -graffiti vinyl wrap services for 160 City -owned utility cabinets along roadways in the amount of $150,000 for a term of one year with the option to extend two one-year terms.
Moved by Richard J. Loa, seconded by Andrea Alarcón.
Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.
6.5) Approve Fourth Amendment to Agreement with Library Systems and Services, LLC, for Literacy and English as a Second Language (ESL) services at the Palmdale City Library, increasing the agreement by $349,472 for a total not to exceed the amount of $13,109,618 for the remainder of the term through June 2028.
Councilmember Alarcón pulled this item for discussion. Deputy Director of Parks and Recreation Dombrowski presented the staff report and provided detailed information on English as a Second Language (ESL) services at the Library.
Motion: Approve Fourth Amendment to Agreement with Library Systems and Services, LLC, for Literacy and English as a Second Language (ESL) services at the Palmdale City Library, increasing the agreement by $349,472 for a total not to exceed the amount of $13,109,618 for the remainder of the term through June 2028.
Moved by Andrea Alarcón, seconded by Laura Bettencourt.
CC/SA – August 7, 2024 – 5pm 3
Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.
6.6) Approve Third Amendment with OPSEC Specialized Protection for Security Services for Parks and Recreation to increase the amount of the agreement by $15,000 for a total not to exceed $114,926 to reconcile invoices for Fiscal Year 2023-24.
Mayor Bishop pulled this item and recused himself because he has done business with OPSEC Specialized Protection.
Motion: Approve Third Amendment with OPSEC Specialized Protection for Security Services for Parks and Recreation to increase the amount of the agreement by $15,000 for a total not to exceed $114,926 to reconcile invoices for Fiscal Year 2023-24.
Moved by Andrea Alarcón, seconded by Laura Bettencourt.
Vote: Motion carried (4-0)
Yes: Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.
Absent: Austin Bishop.
Mayor Bishop returned to the dais.
6.7) Award Construction Agreement with Manhole Adjusting, Inc., for PN 904, Fiscal Year 2024-25 Local Street Asphalt Rubber Aggregate Membrane (ARAM) Cape Seal Project, for a not to exceed amount of $1,563,898 for a term of 50 working days from the date of Notice to Proceed.
6.8) Adopt Resolution No. CC 2024 -071, a Resolution of the City Council of the City of Palmdale adopting a Joint Resolution of the Board of Supervisors of the County of Los Angeles acting on behalf of the Los Angeles County General Fund, Los Angeles County Consolidated Fire Protection District, Los Angeles, County Waterworks #40 - Antelope Valley, Los Angeles County Waterworks #40 ACO Fund, the Board of Directors of the County Sanitation District No. 14 of Los Angeles County, and the governing bodies of the Antelope Valley Cemetery District, Antelope Valley Mosquito & Vector Control District, Antelope Valley Resource Conservation District, City of Palmdale, and the Antelope Valley- East Kern Water Agency approving and accepting negotiated exchange of property tax revenues resulting from annexation to County Sanitation District No. 14.
6.9) Award Consultant Agreement with Psomas for PN 796, 45th Street East Trunk Sewer and Storm Drain Improvements Project, for a not to exceed amount of $338,514 for a term of 42 weeks from the date of Notice to Proceed.
6.10) Award Invitation for Bid with SiteOne Landscape Supply and Wilbur-Ellis Company for fertilizer supplies each for an amount not to exceed $101,750,
CC/SA – August 7, 2024 – 5pm 4
for a combined total of $203,500 for Fiscal Year 2024-25.
6.11) Award Invitation for Bid with SiteOne Landscape Supply for Irrigation and Water Conservation Supplies in an amount not to exceed $284,000 for Fiscal Year 2024-25.
6.12) Adopt Resolution No. CC 2024-073, a Resolution of the City Council of the City of Palmdale declaring its intention to conduct a public hearing to consider the vacation of portions of 8th Street East south of Rancho Vista Drive and north of Avenue P-8.
6.13) Approve the minutes from the previous meeting.
Motion: Approve all items listed under the Consent Calendar with the exception of those items pulled.
Moved by Eric Ohlsen, seconded by Andrea Alarcón.
Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.
7) APPOINTMENT
7.1) City Council nomination and appointment of one (1) member and one (1) alternate to the Library Board of Trustees.
Motion: Appoint Sarah Busbee as a Member to the Library Board of Trustees.
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.
Motion: Appoint Jamar Perkins as an Alternate to the Library Board of Trustees.
Moved by Andrea Alarcón, seconded by Laura Bettencourt.
Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.
8) CITY MANAGER’S REPORT
City Manager Perez reported on the following: Farmer's Market; National Night Out; Elle King concert on August 10 at the Palmdale Amphitheater ; Dine and Drive Food Truck event Friday at the Auto Mall; Chris Lane concert on August 17 at the Palmdale Amphitheater; District 5 Neighborhood Watch on August 19; and the Alert Palmdale Mobile App.
CC/SA – August 7, 2024 – 5pm 5
9) SHERIFF’S REPORT
Captain Bardon reported on the following: the Palmdale Sheriff ’s Department launched community surveys in the month of July and received 172 submissions; discussed response times; call s for service; Part 1 Crimes; enforcement teams; property crimes down in July; flock technology has been helpful in arrests; traffic enforcement; announced gun buyback event on September 20 in Poncitl án Square; and a Halloween themed open house will be held at the Palmdale Sheriff's station on October 19, 2024.
Councilmember Bettencourt provided instructions on how to access the Palmdale Sheriff's Department website, www.lasd.org, click on “YOUR LASD,” and select your station.
Council thanked Captain Bardon for his leadership and partnership with the City of Palmdale.
Captain Bardon announced the Palmdale Sheriff’s Department is working on a project to have a virtual deputy.
10) COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE
AGENDA ITEMS
10.1) Council reports, announcements, and requests for future agenda items.
Councilmember Bettencourt spoke about her vacation.
Councilmember Loa reported on the following: Spanish Talk Radio; Palmdale Boosters meeting; 4th of July celebration at the Palmdale Amphitheater; High Desert Corridor press conference on the Brightline; Neighborhood Watch meeting at Rancho Vista Park; Multi-Agency Regional Resiliency Center groundbreaking; County Sanitation District 20 meeting; JPA Board of Directors meeting; Retirement event for Dr. David G. Smith, Director of 412th Test Wing Operating Location Air Force Plant 42 in Palmdale; Club Pilates grand opening; Antelope Valley Air Quality Management District meeting; Edwards Air Force Base Civilian Military barbeque event; Flo Rida concert; Antelope Valley Transit Authority Board of Directors meeting; AV Fair JPA meeting; and Baracoa Cuban Restaurant patio grand opening.
Mayor Bishop reported on the following: the 4th of July celebration at the Palmdale Amphitheater; Movie Nights; the MedStat ribbon cutting; meeting with Sheriff Luna; the Pathway to Home Operation event; the Fight Fentanyl Summer graduation event; and the Back-Pack Giveaway event.
Councilmember Alarcón reported on the following: the Back-Pack Giveaway event; meeting with the Campos Family; attended Los Angeles County Boards of Supervisors meeting regarding homeless encampments; and the District 5 Neighborhood Watch meeting to be held on August 19 at McAdam Park at 6 pm.
CC/SA – August 7, 2024 – 5pm 6
Councilmember Ohlsen reported on the following: 4th of July celebration at the Palmdale Amphitheater; High Desert Corridor, North County Transportation Coalition, and AVTA meetings; labor agreement with local trades; meeting with Sheriff Luna; Fight Fentanyl Summer graduation event; AV Alta Team; and Pearblossom Highway community meeting regarding traffic safety concerns on Highway 138.
11) NON-AGENDA PUBLIC COMMENTS:
The following individuals provided public input: Carla Hubler commented regarding the animal shelter, rescues, resources, and spay & neuter; Alexine Rivas, Kristina Rivas, Anessa Rivas, Aubrielle Rivas, Isaiah Rivas, and grandmother discussed the loss of their home due to fireworks, lack of support from the Sheriff's Department, and support from the City; Sonia Burke commented regarding the rising homeless population, graffiti, home robberies, Rancho Vista and Division Street fire and clearing the brush; Rick Kerwin discussed City of Palmdale parking restrictions and parking enforcement; Stephen discussed homeless animals, resources, and euthanasia rates; Eugene Hernandez discussed Council Chamber security measures, establishing a month to honor Latino heritage. Councilmember Alarcón commented regarding the City's involvement in Latino heritage events; Renee Kimbrough discussed shelter problems and life-saving measures; Jackie Quillen discussed animal shelter euthanasia rate s and shelter expansion; Roger Soderstedt discussed potholes in the road. Councilmember Alarcón and City Manager Perez updated the public on road repair; Linda Sharp discussed street cleaning signs and enforcement; Marsha Furman announced the animal shelter would be having a private event for veterans on August 18 from 12 -4 to adopt pets, and the City offers lap swimming and senior swimming free to veterans; and Chuck Murphy commented on the Council cleaning up the City and building businesses.
There was further Council and staff discus sion regarding the assistance provided to the Rivas Family.
Council and staff discussed street sweeping enforcement, homelessness, Measure H funds, and addressing encampments.
Director of Neighborhood Services Reyes, Sher i Gorman of Valley Oasis, and Councilmember Alarcón spoke highly of Ms. Termeko Coplin, Domestic Violence Regional Coordinator of Valley Oasis, and her dedication and contributions to the community and adjourned the meeting in memory of her passing.
12) PRESENTATION BY CITY ATTORNEY
City Attorney Curley stated there were two properly agendized items to be heard as listed.
12.1) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION William Robert Herrera, et al vs. City of Palmdale, et al.
Central District of California Federal District Court
Case No. 2:16-cv-09453-MWF-MAR
CC/SA – August 7, 2024 – 5pm 7
This closed session is being held pursuant to the authority of California Government Code Section 54956.9.
12.2) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Priscilla Huerta, et al vs. City of Palmdale, et al.
Central District of California Federal District Court
Case No. 2:18-10354-MWF-FFM
This closed session is being held pursuant to the authority of California Government Code Section 54956.9.
13) ANNOUNCEMENT BY CITY ATTORNEY
City Attorney announced the Council was updated on the two wins.
14) ADJOURN
Mayor Bishop adjourned the meeting at 8:04 pm, in honor of Termeko Coplin, to August 21, 2024, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
PASSED, APPROVED, and ADOPTED this 21st day of August 2024.
Austin Bishop, Mayor
ATTEST:
Rochelle Scott, City Clerk
Joint Staff Report
DATE: AUGUST 21, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
HONORABLE CHAIR AND COMMISSIONERS
FROM: NEIGHBORHOOD SERVICES
HOUSING DIVISION
DISTRICT: 1
SUBJECT: ADOPT RESOLUTION NO. CC 2024 -074, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE APPROVING AN
AFFORDABLE HOUSING AGREEMENT BETWEEN THE HOUSING
AUTHORITY OF THE CITY OF PALMDALE AND ADVANCING
COMMUNITIES TOGETHER, APPROVING AND AUTHORIZING THE
CONVEYANCE OF PROPERTY LOCATED AT 5 th STREET EAST
AND EAST AVENUE Q -2 APN 3008 -010-904 FROM THE HOUSING
AUTHORITY OF THE CITY OF PALMDALE TO ADVANCING
COMMUNITIES TOGETHER , APPROVING A PERMANENT LOCAL
HOUSING ALLOCATION LOAN AGREEMENT BETWEEN THE CITY
OF PALMDALE AND ADVANCING COMMUNITIES TOGETHER ;
AND MAKING CERTAIN FINDINGS; AND ADOPT RESOLUTION NO.
HA 2024-006, A RESOLUTION OF THE HOUSING AUTHORITY OF
THE CITY OF PALMDALE APPROVING AN AFFORDABLE
HOUSING AGREEMENT BETWEEN THE HOUSING AUTHORITY OF
THE CITY OF PALMDALE AND ADVANCING COMMUNITIES
TOGETHER APPROVING AND AUTHORIZING THE CONVEYANCE
OF PROPERTY FROM THE HOUSING AUTHORITY OF THE CITY OF
PALMDALE TO ADVANCING COMMUNITIES TOGETHER
LOCATED AT 5th STREET EAST AND EAST AVENUE Q-2 APN 3008- 010-904; AND MAKING CERTAIN FINDINGS
RECOMMENDATION
Staff recommends that the City Council and the Housing Authority of the City of Palmdale:
1. Adopt Resolution No. CC 2024-074, A Resolution of the City Council of the City of Palmdale Approving An Affordable Housing Agreement Between the Housing Authority of the City of Palmdale and Advancing Communities Together (Agreement No. A-8908) Approving and Authorizing the Conveyance of Property Report to Mayor and City Council
Re: Joint Public Reso. Nos. CC 2024-074 & HA 2024-006
August 21, 2024
located at 5 th Street East and East Avenue Q-2 APN 3008-010-904 from the Housing Authority of the City of Palmdale to Advancing Communities Together, and: Approving a Permanent Local Housing Allocation Loan Agreement between the City of Palmdale and Advancing Communities Together (Agreement No. A- 8909); and making certain findings;
2. Authorize the City Manager or her designee to execute Agreement No. A-8909 with Advancing Communities Together, including minimal and/or non-substantial changes;
3. Adopt Resolution No. HA 2024-006, a Resolution of the Housing Authority of the City of Palmdale Approving an Affordable Housing Agreement between the Housing Authority of the City of Palmdale and Advancing Communities Together (Agreement No. A-8908); Approving and Authorizing the Conveyance of Property from the Housing Authority of the City of Palmdale to Advancing Communities Together located at 5th Street East and East Avenue Q-2 APN 3008-010-904; and making certain findings, and,
4. Authorize the Executive Director or her designee to execute Agreement No. A- 8908 with Advancing Communities Together, including minimal and/or non- substantial changes.
BACKGROUND
Since the Fall of 2007, the former Community Redevelopment Agency partnered with Advancing Communities Together (ACT) in an effort to rehabilitate and develop affordable housing within the City of Palmdale (City) through the Neighborhood Improvement Program. Since that time, ACT has been active within the community, providing an opportunity for older teens and young adults to work toward completing their high school education and providing workforce development.
As the designated successor housing agency under the Redevelopment Dissolution Act, the Housing Authority of the City of Palmdale (Housing Authority) assumed all responsibilities of the former Community Redevelopment Agency’s housing functions, including assets directly associated with the requirement to develop affordable housing.
As part of the portfolio of assets, two parcels located within Focus Neighborhood No. 3 were acquired with Housing Set-Aside Funds on October 15, 2004. On April 3, 2012, the Housing Authority approved a letter of commitment to ACT to provide two parcels to develop affordable housing in Focus Neighborhood No. 3 secure financing to develop units; of these two parcels, ACT developed one duplex for affordable housing in 2013.
DISCUSSION
The Housing Authority and ACT have negotiated an Affordable Housing Agreement (AHA) to convey the second parcel in accordance with Health and Safety Code Section 33433(c), as a “small housing project”, for the development of a duplex consisting of two Report to Mayor and City Council
Re: Joint Public Reso. Nos. CC 2024-074 & HA 2024-006
August 21, 2024
(2) two-story units of three (3) bedrooms and two (2) baths per unit (Project), with Permanent Local Housing Allocation (PLHA) funds being made available for the Project by the City under the terms of a separate agreement to be considered concurrently herewith.
Under the AHA and in accordance with the Community Redevelopment Law, long-term affordability covenants will be recorded on the land for 55 years to ensure the units are available to lower-income households. As additional consideration for the conveyance of the parcel, residual rent proceeds for the Project will be used to provide community outreach programs to residents in Focus Neighborhood No. 3.
The City receives an annual allocation of Permanent Local Housing Allocation (PLHA) funds. The City and ACT have negotiated a PLHA Loan Agreement to provide $821,985.94 in PLHA funds (PLHA Loan) for the development of the Project. The PLHA Loan is contingent on the acquisition of the parcel pursuant to the AHA.
As a “small housing project”, Community Redevelopment Law provides the Housing Authority may sell the parcel if the City Council authorizes the Housing Authority to sell the parcel for the Project pursuant to the AHA after a properly noticed public hearing. A public hearing notice was published in the Antelope Valley Press on August 7, 2024, and August 14, 2024, stating that the AHA was available for public review at the Library, City Administration office, and the Neighborhood Services Department.
FISCAL IMPACT
$821,985.94 City PLHA; $80,000 HA; Funds for the PLHA Loan for construction is available in account 24164007-782950 New Construction Fiscal Year 2025 of $448,040 and funds to be carried forward from Fiscal Year 2023-2024 of $373,950. In addition, under the AHA, the Housing Authority will take a carryback loan from ACT for the sale of the parcel in the amount of $80,000, which is the fair market value of the parcel.
STRATEGIC PLAN
Goal III: Maintain a desirable community where everyone wants to live, work, and play.
C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
Prepared by: Sophia Reyes, Director of Neighborhood
Services
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 Report to Mayor and City Council
Re: Joint Public Reso. Nos. CC 2024-074 & HA 2024-006
August 21, 2024
ATTACHMENTS
1. Reso. No. CC 2024-074
2. Reso. No. HA 2024-006
3. Agrmt No. A-8909 (City) with Advancing Communities Together
4. Agrmt No. A-8908 (HA) with Advancing Communities Together
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-074
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
APPROVING AN AFFORDABLE HOUSING AGREEMENT BETWEEN
THE HOUSING AUTHORITY OF THE CITY OF PALMDALE AND
ADVANCING COMMUNITIES TOGETHER; APPROVING AND
AUTHORIZING THE CONVEYANCE OF PROPERTY LOCATED AT 5
TH
STREET EAST AND EAST AVENUE Q-2 APN 3008-010-904 FROM THE
HOUSING AUTHORITY OF THE CITY OF PALMDALE TO ADVANCING
COMMUNITIES TOGETHER; APPROVING A PERMANENT LOCAL
HOUSING ALLOCATION LOAN AGREEMENT BETWEEN THE CITY OF
PALMDALE AND ADVANCING COMMUNITIES TOGETHER; AND
MAKING CERTAIN FINDINGS
WHEREAS, The City Council of the City of Palmdale (“City Council”) adopted the Redevelopment Plans for the Merged Redevelopment Projects (“Project Area”) on March 24, 1994, by Ordinances Nos 1042, 1043, and 1044, which resulted in the allocation of property taxes from the Project Area to the former Community Redevelopment Agency of the City of Palmdale (“Redevelopment Agency”) for purposes of redevelopment. On May 4, 2011, the City Council adopted the Expansion Area Amendment by Ordinance No. 1418, adding additional territory to the Merged Project Area and amending and restating the redevelopment plans into a single Amended and Restated Redevelopment Plan for the Merged Project Area (“Redevelopment Plan”). Project Area No. 2, Project Area No. 3, Project Area No. 4 , and the Expansion Area collectively are referred to as the “Merged Project Area”; and
WHEREAS, The Housing Authority of the City of Palmdale (“Authority”) is implementing certain proposed uses in the Merged Project Area, including low-income housing, which use will aid in carrying out the Redevelopment Plan, pursuant to its obligations under Assembly Bill No. 26 (2011- 2012 1
st Ex. Sess.), as amended by
Assembly Bill No. 1484 (2011- 2012 Regular Session) , and as further amended from time to time (collectively, the “Dissolution Bills”) wherein the Authority, as the designated entity, will perform the housing functions previously performed by the former Redevelopment Agency, including to carry out the purposes of the Dissolution Bills; and
WHEREAS, In accordance with its obligations under the Dissolution Bills, the Authority wishes to enter into a proposed Affordable Housing Agreement (“AHA”) with Advancing Communities Together ( “ACT”), a California nonprofit public benefit corporation, wherein the Authority will convey certain real property located in the City of Palmdale, California, APN 3008- 010-904 (“Property”) for the acquisition, development and use by ACT of a residential duplex for affordable housing (“Project”), Resolution No. CC 2024-074
a “small housing project” within the meaning of Health and Safety Code Section 33013; and
WHEREAS, The City receives an allocation of Permanent Local Housing Allocation (PLHA) funds, beginning on A ugust 5, 2021 . The City staff and ACT have negotiated a PLHA Loan Agreement to provide $821,985.94 in PLHA funds (PLHA loan) for development of the Project. The PLHA Loan is contingent on the acquisition of the Property pursuant to the AHA.
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 has duly considered the terms and conditions of the proposed AHA and all comments received at the joint public hearing pursuant to California Health and Safety Code Section 33433(c)(1), duly noticed in accordance with California Health and Safety Code Section 33431, and determines that the proposed AHA is in the best interests of the Merged Project Area and the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local law and requirements.
SECTION 2. The City hereby approves the proposed AHA in substantially the form presented at this hearing, with such minor or non-substantive changes as may be approved by the Authority Executive Director with approval as to form by Authority Legal Counsel. The City hereby approves of and authorizes the Authority to sell the Property to ACT pursuant to the AHA and authorizes the Authority Executive Director, or designee, to execute the AHA and to execute all documents and take all actions necessary and convenient to carry out and implement the AHA and to administer the Authority’s obligations, responsibilities, and duties to be performed thereunder.
SECTION 3. In furtherance of the Project, the City desires to provide a loan of Permanent Local Housing Allocation ( PLHA) funds in the amount of $821,985.94 (“PLHA Loan”) to ACT to pay development costs for the Project pursuant to the proposed PLHA Loan Agreement.
SECTION 4. The City has duly considered the terms and conditions of the proposed PLHA Loan Agreement and all comments received at the joint public hearing, and determines that the proposed PLHA Loan Agreement is in the best interests of the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local law and requirements.
Resolution No. CC 2024-074
SECTION 5. The City hereby approves the PLHA Loan to ACT pursuant to the PLHA Loan Agreement to pay development costs for the Project, in an amount not to exceed $821,985.94.
SECTION 6. The City hereby approves the proposed PLHA Loan Agreement in substantially the form presented at this hearing, with such minor or non- substantive changes as may be approved by the City Manager with approval as to form by the City Attorney.
SECTION 7. The City hereby authorizes its City Manager, or designee, to execute the PLHA Loan Agreement and to execute all documents and take all actions necessary and convenient to carry out and implement the PLHA Loan Agreement and to administer the City’s obligations, responsibilities , and duties to be performed thereunder.
SECTION 8. The AHA and PLHA Loan Agreements are subject to the environmental review requirements of the California Environmental Quality Act (“CEQA”). The development of the Property pursuant to the AHA and PLHA Loan Agreement is an exempt project pursuant to State CEQA Guidelines Section 15303(b) in that the Project is categorically exempt as a duplex or similar multi -family residential structure totaling no more than four dwelling units. Accordingly, pursuant to CEQA, the State CEQA Guidelines , and the City’s local CEQA Guidelines, the City Clerk, or designee, is directed to file a Notice of Exemption with the Clerk of the Board of Supervisors for the County of Los Angeles regarding the Project.
SECTION 9. The City Clerk shall certify to the adoption of this resolution.
PASSED, APPROVED and ADOPTED this 21
st day of August, 2024.
_________________________________
Approved as to form: Austin Bishop, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, City Clerk
City Attorney
Resolution No. CC 2024-074
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 21 st day of
August, 2024 by the following roll call vote:
AYES:
NOES:___________________________________________________________
ABSTAIN:______________________ABSENT:___________________________
Date:
Rochelle Scott, City Clerk
HOUSING AUTHORITY
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. HA 2024-006
A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF PALMDALE
APPROVING AN AFFORDABLE HOUSING AGREEMENT BETWEEN THE
HOUSING AUTHORITY OF THE CITY OF PALMDALE AND ADVANCING COMMUNITIES TOGETHER; APPROVING AND AUTHORIZING THE
CONVEYANCE OF PROPERTY FROM THE HOUSING AUTHORITY OF THE CITY OF PALMDALE TO ADVANCING COMMUNITIES TOGETHER LOCATED AT 5TH STREET EAST AND EAST AVENUE Q -2 APN 3008- 010-904; AND MAKING
CERTAIN FINDINGS
WHEREAS, The City Council of the City of Palmdale (“City Council”) adopted the Redevelopment Plans for the Merged Redevelopment Projects (“Project Area”) on March 24, 1994, by Ordinances Nos. 1042, 1043, and 1044, which resulted in the allocation of property taxes from the Project Area to the former Community Redevelopment Agency of the City of Palmdale (“Redevelopment Agency”) for purposes of redevelopment. On May 4, 2011 , the City Council adopted the Expansion Area Amendment by Ordinance No. 1418, adding additional territory to the Merged Project Area and amending and restating the redevelopment plans into a single Amended and Restated Redevelopment Plan for the Merged Project Area. Project Area No. 2, Project Area No. 3, Project Area No. 4, and the Expansion Area collectively are referred to as the “Merged Project Area”. On May 4, 2011, the City Council adopted the Expansion Area Amendment by Ordinance No. 1418, adding additional territory to the Merged Project Area and amending and restating the redevelopment plans into a single Amended and Restated Redevelopment Plan for the Merged Project Area (“Redevelopment Plan”). Project Area No. 2, Project Area No. 3, Project Area No. 4, and the Expansion Area collectively are referred to as the “Merged Project Area”; and
WHEREAS, The Housing Authority of the City of Palmdale (“Authority”) is implementing certain proposed uses in the Merged Project Area, including low-income housing, which use will aid in carrying out the Redevelopment Plan, pursuant to its obligations under Assembly Bill No. 26 (2011- 2012 1
st Ex. Sess.), as amended by
Assembly Bill No. 1484 (2011- 2012 Regular Session) , and as further amended from time to time (collectively, the “Dissolution Bills”) wherein the Authority, as the designated entity, will perform the housing functions previously performed by the former Redevelopment Agency, including to carry out the purposes of the Dissolution Bills; and
WHEREAS, In accordance with its obligations under the Dissolution Bills, the Authority wishes to enter into a proposed Affordable Housing Agreement (“AHA”) with Advancing Communities Together ( “ACT”), a California nonprofit public benefit corporation, wherein the Authority will convey certain real property located in the City Resolution No. HA 2024-006
of Palmdale, California, APN 3008- 010-904 (“Property”) for the acquisition, development and use by ACT of a residential duplex for affordable housing (“Project”)., a “small housing project” within the meaning of Health and Safety Code Section 33013.
NOW THEREFORE, BE IT RESOLVED, T HE HOUSING AUTHORITY OF THE CITY
OF PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1 . The AHA requires the recording of covenants against ACT’s interest in the Property restricting the use of the Property for a term of not less than 55 years to affordable housing for low-income households.
SECTION 2. ACT has submitted to the Authority copies of a proposed A HA in a form desired by ACT.
SECTION 3. The Authority has duly considered the terms and conditions of the proposed AHA and all comments received at the joint public hearing pursuant to California Health and Safety Code Section 33433(c)(1), duly noticed in accordance with California Health and Safety Code Section 33431, and determines that the proposed AHA is in the best interests of the Merged Project Area and the City and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local law and requirements.
SECTION 4. The Authority hereby approves of and authorizes the Authority to sell the Property to ACT pursuant to the AHA and approves the proposed AHA in substantially the form presented at this hearing, with such minor or non- substantive changes as may be approved by the Authority Executive Director with approval as to form by Authority Legal Counsel.
SECTION 5. The Authority hereby authorizes its Executive Director, or designee, to execute the A HA and to execute all documents and take all actions necessary and convenient to carry out and implement the AHA and to administer the Authority’s obligations, responsibilities, and duties to be performed thereunder.
SECTION 6. The AHA is subject to the environmental review requirements of the California Environmental Quality Act (“CEQA”). The development of the Property pursuant to the AHA is an exempt project pursuant to State CEQA Guidelines Section 15303(b) in that the Project is categorically exempt as a duplex or similar multi -family residential structure totaling no more than four dwelling units. Accordingly, pursuant to CEQA, the State CEQA Guidelines , and the City’s local CEQA Guidelines, the City Clerk, or designee, is directed to file a Notice of Exemption with the Clerk of the Board of Supervisors for the County of Los Angeles regarding the Project.
Resolution No. HA 2024-006
SECTION 7. The Authority Secretary shall certify to the adoption of this resolution.
PASSED, APPROVED and ADOPTED this 21st day of August, 2024.
_________________________________
Approved as to form: Austin Bishop, Chair
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott,
Authority Attorney Authority Secretary
I, Rochelle Scott, Authority Secretary of the Housing Authority of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the Housing Authority of the City of Palmdale at a special meeting of said Authority held on the 21
st day of August, 2024 by the following roll call vote:
AYES: __
NOES:_____________________________________________________________
ABSTAIN:______________________ABSENT:_____________________________
Date: ______________________ __________________________________ Rochelle Scott, Authority Secretary
PERMANENT LOCAL HOUSING ALLOCATION FUNDS
LOAN AGREEMENT
BY AND BETWEEN
THE CITY OF PALMDALE, CALIFORNIA
AND
ADVANCING COMMUNITIES TOGETHER
AGREEMENT NO. A-8909
August 21, 2024
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
Page i
TABLE OF CONTENTS
Page
ARTICLE I SUBJECT OF AGREEMENT .........................................................................2 Section 101 Purpose of the Agreement. ...............................................................2 Section 102 Definitions........................................................................................2 Section 103 The Property.....................................................................................6 Section 104 City ...................................................................................................6 Section 105 Owner ...............................................................................................6 Section 106 Assignments and Transfers. .............................................................6 ARTICLE II FINANCING ..................................................................................................8 Section 201 Use of PLHA Funds .........................................................................8 Section 202 PLHA Loan ......................................................................................8 Section 203 PLHA Loan Terms ...........................................................................8 Section 204 Security ............................................................................................9 Section 205 Conditions Precedent to PLHA Loan Disbursement .......................9 ARTICLE III IMPROVEMENT OF THE PROPERTY ...................................................11 Section 301 Land Use Approvals ......................................................................11 Section 302 Condition of the Property...............................................................11 Section 303 Scope of Development ...................................................................11 Section 304 Basic Concept and Schematic Drawings .......................................12 Section 305 Demolition, Grading and Landscaping Plans ................................12 Section 306 Construction Drawings and Related Documents ...........................12 Section 307 City Approval of Plans...................................................................13 Section 308 Cost of Construction ......................................................................13 Section 309 Schedule .........................................................................................13 Section 310 Indemnification and Insurance .......................................................14 Section 311 Permits ...........................................................................................17 Section 312 Rights of Access ............................................................................17 Section 313 Disclaimer of Responsibility by City .............................................18 Section 314 Taxes, Assessments, Encumbrances and Liens .............................18 Section 315 Local, State and Federal Laws .......................................................18 Section 316 Nondiscrimination..........................................................................20 Section 317 Prohibition against Transfer ...........................................................20 Section 318 Removal of Liens and Encumbrances............................................20 ARTICLE IV USE OF THE PROPERTY ........................................................................20 Section 401 Uses ................................................................................................20 Section 402 Maintenance of the Property ..........................................................21 Section 403 Obligation to Refrain from Discrimination....................................21 Section 404 Effect and Duration of Covenants ..................................................21 Section 405 Regulatory Agreement ...................................................................21 ARTICLE V DEFAULTS AND REMEDIES ...................................................................22 PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
Page ii
S
ection 501 Defaults - General ..........................................................................22 Section 502 Institution of Legal Actions ...........................................................22 Section 503 Applicable Law ..............................................................................23 Section 504 Acceptance of Service of Process ..................................................23 Section 505 Rights and Remedies Are Cumulative ...........................................23 Section 506 Damages .........................................................................................23 Section 507 Specific Performance .....................................................................23 Section 508 Non-Recourse ................................................................................24 Section 509 Termination by City .......................................................................24 ARTICLE VI GENERAL PROVISIONS .........................................................................26 Section 601 Notices ...........................................................................................26 Section 602 Enforced Delay: Extension of Time of Performance .....................26 Section 603 Conflict of Interest .........................................................................27 Section 604 Nonliability of City Officials and Employees ...............................27 Section 605 Inspection of Books and Records ..................................................27 Section 606 Approvals .......................................................................................27 Section 607 Real Estate Commissions ...............................................................28 Section 608 Construction and Interpretation of Agreement ..............................28 Section 609 Time of Essence .............................................................................29 Section 610 No Partnership ...............................................................................29 Section 611 Compliance with Law ....................................................................29 Section 612 Binding Effect ................................................................................29 Section 613 No Third Party Beneficiaries .........................................................29 Section 614 Authority to Sign............................................................................29 Section 615 Incorporation by Reference............................................................30 Section 616 Counterparts ...................................................................................30 Section 617 Severability ....................................................................................30 ARTICLE VII ENTIRE AGREEMENT, WAIVERS AND AMENDMENTS ................30 ARTICLE VIII PLHA REQUIREMENTS .......................................................................30 PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
Page iii
ATTACHMENTS
ATTACHMENT NO. 1 - SITE MAP
ATTACHMENT NO. 2 - LEGAL DESCRIPTION
ATTACHMENT NO. 3 - PROJECT BUDGET
ATTACHMENT NO. 4 - PLHA NOTE
ATTACHMENT NO. 5 - PLHA DEED OF TRUST
ATTACHMENT NO. 6 - ASSIGNMENT OF AGREEMENTS
ATTACHMENT NO. 7 - ENVIRONMENTAL INDEMNITY
ATTACHMENT NO. 8 - ASSIGNMENT OF RENTS
ATTACHMENT NO. 9 - REGULATORY AGREEMENT
P
ERMANENT LOCAL HOUSING ALLOCATION FUNDS
LOAN AGREEMENT
BY AND BETWEEN
THE CITY OF PALMDALE, CALIFORNIA
ADVANCING COMMUNITIES TOGETHER
(A-8909)
This Permanent Local Housing Allocation Funds Loan Agreement (“Agreement”), dated as o f August 21, 2024, is made by and between THE CITY OF PALMDALE, a municipal corporation (“City”), and ADVANCING COMMUNITIES TOGETHER, a California nonprofit public benefit corporation (“Owner”). City and Owner and their respective permitted successors and assigns, referred to as the “Parties,” agree as follows.
R
ECITALS
A. Owner has entered into an Affordable Housing Agreement dated as of August 21, 2024 (“AHA”) with the Housing Authority of the City of Palmdale, California (“Housing Authority”).
B. The AHA obligates Owner to develop vacant property located at a cul-de-sac on E Avenue Q-2 between Avenue Q and E Avenue Q3 and east of 5th Street E, in the City of Palmdale, California (as shown on the Site Map attached as Attachment No. 1 and more specifically described in the Legal Description attached as Attachment No. 2 (the “Property”) with an affordable residential rental development for hereinafter defined Low Income households, consisting of a duplex rental apartment with two (2) two-story units (3 bedrooms/ 2 bath per unit), as described in more detail in the Scope of Development attached as Attachment No. 3 to the AHA (the “Project”). The units shall be limited to occupancy by Low Income households.
C. Owner has acquired title to the Property using a loan in the amount of $80,000 from the Housing Authority as set forth in the AHA (the “Housing Authority Loan”).
D. The terms of the AHA anticipate funding for the Project to include a loan of funds (“PLHA Funds”) from the City received from the California Department of Housing and Community Development (“HCD”) f rom the Permanent Local Housing Allocation (“PLHA”) program in the principal amount of $821,985.94, pursuant to the terms of this Agreement, and other financing sources described in the Method of Financing attached to the AHA as Attachment No . 3 and identified in the Project Budget attached hereto as Attachment No. 3.
E. In accordance with the Permanent Local Housing Allocation Program Guidelines adopted by HCD with regard to the use of the PLHA Funds certain income and affordability requirements are required of the Project.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
F. Owner wishes to borrow and City wishes to lend PLHA Funds in the amount of Eight Hundred Twenty- One Thousand Nine Hundred Eight y-Five Dollars and Ninety -Four Cents ($821,985.94) (“PLHA Loan”), which will be used exclusively for Development Costs for the Project.
G. The City’s making of the PLHA Loan pursuant to this Agreement and the fulfillment generally of this Agreement are in the vital and best interests of the City, and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of applicable federal, state and local laws and requirements.
NOW THEREFORE, IN CONSIDER ATION of the foregoing recitals and the covenants and mutual agreements, obligations, and representations contained in this Agreement, and in reliance on the representations and warranties set forth herein, City and Owner hereby agree as follows:
ARTICLE I SUBJECT OF AGREEMENT
Section 101 Purpose of the Agreement.
The Recitals set forth above are true and accurate, and incorporated herein. Owner has submitted a proposal for the use of PLHA Funds for an eligible activity under the Permanent Local Housing Allocation Final Guidelines dated October 2019, as the same may be amended or modified from time to time (“PLHA Guidelines”).
Section 102 Definitions.
For purposes of this Agreement, the following capitalized terms will have the following meanings:
“Affiliate” shall mean (1) any Person directly or indirectly controlling, controlled by or under common control with another Person; (2) any Person owning or controlling ten percent (10%) or more of the outstanding voting securities of such other Person; or (3) if that other Person is an officer, director, member or partner, any company for which such Person acts in any such capacity. The term “control” as used in the immediately preceding sentence, shall mean the power to direct the management or the power to control election of the board of directors. It shall be a presumption that control with respect to a corporation or limited liability company is the right to exercise or control, directly or indirectly, more than fifty percent (50%) of the voting rights attributable to the controlled corporation or limited liability company, and, with respect to any individual, partnership, trust, other entity or association, control is the possession, indirectly or directly, of the power to direct or cause the direct ion of the management or policies of the controlled entity.
“Affordable Rent” shall comply with the PLHA Guidelines and shall mean gross monthly rent that does not exceed the maximum monthly rent for an individual or household with a household income equal to or less than sixty percent (60%) of the then current Area Median PLHA Loan Agreement Agreement No. A-8909
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Income adjusted for family size appropriate for the unit, as published by from time to time by TCAC.
“Affordable Units” shall mean the duplex rental apartment with two (2) two-story units (3 bedrooms/ 2 bath per unit) to be constructed on the Property and rented exclusively to and occupied by Low Income households at Affordable Rent.
“Area Median Income” or “AMI” means the median gross income for Los Angeles County as determined by the Secretary of the Treasury of the United States for purposes of Section 42 of the Internal Revenue Code of 1986, and any related regulations published from time to time by TCAC.
“Approved Title Conditions ” shall mean title that is subject to assessments as of the Closing and any other easements and other encumbrances specifically approved in writing by the City Manager prior to the Closing.
“Assignment of Agreements” shall mean an instrument substantially in the form attached to this Agreement as Attachment No. 6.
“Assignment of Rents” shall mean an instrument substantially in the form attached to this Agreement as Attachment No. 8.
“City Manager” shall mean the City Manager of the City of Palmdale, or designee. “Close of Escrow ” or “ Closing” shall mean the point in time when (i) all conditions precedent to the closing as set forth in the AHA have been satisfied; and (ii) the PLHA Loan Documents and Regulatory Agreement are executed (and recorded against the Property, as applicable) in accordance with all of the terms and conditions of this Agreement. “Closing Date” shall mean the date on which the Close of Escrow is scheduled to take place.
“Completion” shall mean the point in time when all of the following shall have occurred:
(1) issuance of a permanent certificate of occupancy by the City of Palmdale for the Project; (2) recordation of a Notice of Completion by Owner or its contractor for the Project ; (3) certification by the project architect that development of the Project (with the exception of minor “punchlist” items) has been completed in a good and workmanlike manner in accordance with the approved plans and specifications; (4) payment, settlement or other extinguishment, discharge, release, waiver, bonding or insuring against of any mechanic’s liens that have been recorded or stop notices that have been delivered for the Project; and (5) the Property has been developed in accordance w ith the AHA, this Agreement, the Standard Agreement, the Scope of Development attached to the AHA, and Plans approved by the City pursuant to this Agreement. “Development Costs” shall mean all costs which are actually incurred by the Owner for the development of the Project on the Property as set forth in the Project Budget.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
“Environmental Indemnity” shall mean an instrument substantially in the form attached to this Agreement as Attachment No. 7.
“Hazardous Materials” shall have the meaning set forth in the Environmental Indemnity. “Housing Authority” shall mean the Housing Authority of the City of Palmdale, a public body, corporate and politic.
“Legal Description ” shall mean the legal description of the Property attached to this Agreement as Attachment No. 2.
“Low Income” means an individual or household with a household income equal to or less than sixty percent (60%) of the then current Area Median Income, including Utilities Allowance, adjusted for family size appropriate for the unit, as published from time to time by TCAC.
“Permitted Transfer” means any of the following:
a. A conveyance of the Property to any Affiliate;
b. The lease for occupancy of any Affordable Unit in accordance with this Agreement; and
c. The granting of easements or permits to facilitate the development of the Property in accordance with this Agreement.
Any transfer described in clauses a. through b. shall be subject to the reasonable approval of documentation by the City Manager or designee.
“Person” means an individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company or other entity, domestic or foreign. “PLHA Deed of Trust ” shall mean the deed of trust securing the PLHA Loan, to be recorded against the Property upon the Close of Escrow substantially in the form attached to this Agreement as Attachment No. 5.
“PLHA Loan” shall mean the loan by the City to Owner in the amount and pursuant to the terms and conditions of this Agreement, which shall be evidenced by the PLHA Note and secured by the PLHA Deed of Trust and the other PLHA Loan Documents. The PLHA Loan shall be derived from the City’s allocation of PLHA Funds.
“PLHA Loan Documents” shall mean the PLHA Note, PLHA Deed of Trust, Assignment of Agreements, Assignment of Rents, and the UCC-1 financing statements to be recorded and filed at the Closing.
“PLHA Note” shall mean the promissory note evidencing the PLHA Loan substantially in the form attached to this Agreement as Attachment No. 4.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
“Project” shall mean the construction of the improvements located on the Property for use as affordable housing in accordance with this Agreement and the AHA including the Scope of Development attached to the AHA.
“Project Budget” shall mean the applicable schedule of Development Costs attached to this Agreement as Attachment No. 3.
“Property” means the real property described in Attachment No. 2. “Regulatory Agreement ” shall mean the Regulatory Agreement and Declaration of Restrictive Covenants to be recorded upon the Close of Escrow, substantially in the form attached to this Agreement as Attachment No. 9.
“Relocation Laws” shall mean all applicable state and local relocation laws, including, without limitation, the California Relocation Assistance Law, Government Code Section 7260 et seq. and the implementing regulations thereto in the California Code of Regulations, Title 24, Section 6000 et seq . and the local implementing regulations thereto, and all applicable federal relocation laws, including, without limitation, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. 4201- 4655, and 49 CFR Part 24, the acquisitions and eminent domain laws in Government Code Section 7267 et seq. and Code of Civil Procedure Section 1240.000 et seq . and any other applicable federal, state or local enactment, regulation or practice providing for relocation assistance and benefits, acquisition and/or compensation of property interests (including, without limitation, goodwill and furnishings, fixtures and equipment, leasehold bonus value, and moving expenses).
“Site Map” means the document which is attached to this Agreement as Attachment No.
1. “Standard Agreement” means Standard Agreement No. 20-PLHA-15629 (A-7538) by and between HCD and the City signed by HCD on August 5, 2021, as amended by that Amendment to Standard Agreement by and between HCD and the City signed by HCD on July 29, 2022, as the same may be amended or modified from time to time.
“TCAC” means the California Tax Credit Allocation Committee, established by Revenue and Taxation Code Section 18410.2.
“Title Company ” shall mean a title company mutually acceptable to the City and the Owner.
“Title Insurance Policies” shall mean the following policies of title insurance to be issued by the Title Company at the Close of Escrow, subject to the Approved Title Conditions:
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
a. An ALTA extended coverage owner’s policy of title insurance in favor of Owner insuring the Owner’s fee title in the Property, in an amount and with reasonable endorsements as requested by the Owner without cost or expense to the City (the “Owner’s Title Policy”).
b. A standard form CLTA Lender’s Title Insurance Policy in favor of the City together with such endorsements as the City may reasonably require, in the amount of the PLHA Loan insuring the PLHA Deed of Trust as a first lien on the Property (the “Lender’s Title Policy”).
“Utilities Allowance” means an allowance for utilities services costs as established from time to time by the County of Los Angeles.
Section 103 The Property.
The Property is that certain vacant property in the City of Palmdale, illustrated on the “Site Map” and as described in the “Legal Description of the Property”. Owner is or will be the owner of fee title to the Property and will have control of the Property as of the Close of Escrow.
Section 104 City
a. The City is a municipal corporation of the State of California, organized and existing under the laws of the State of California and the Palmdale Municipal Code. b. The address of the City for purposes of receiving notices pursuant to this Agreement will be c/o City Manager, City of Palmdale, 38300 Sierra Highway, Palmdale, California 93550. c. “City” as used in this Agreement includes the City of Palmdale, California, and any assignee or successor to its rights, power and responsibilities.
Section 105 Owner
a. The Owner is Advancing Communities Together, a California nonprofit public benefit corporation.
b. The address of Owner for purposes of receiving notices pursuant to this Agreement shall be 38626 9th Street East, Palmdale, California, 93550. c. Whenever the term “Owner” is used herein, such term means and includes: (1) the Owner a s of the date hereof; or (2) an assignee of or successor to its rights, powers and responsibilities permitted by this Agreement.
Section 106 Assignments and Transfers.
a. Owner represents and agrees that its undertakings pursuant to this Agreement are for the purpose of developing and operating the Project and providing affordable housing on the PLHA Loan Agreement Agreement No. A-8909
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Property and not for speculation in land holding. Owner further recognizes that the qualifications and identity of Owner are of particular concern to the City, in light of the following: (1) the importance of the improvement of the Property to the general welfare of the community; (2) the public assistance that has been made available by law and by the City for the purpose of making such development possible; and (3) the fact that a change in ownership or control of Owner or any other act or transaction in volving or resulting in a significant change in ownership or control of Owner, is for all practical purposes a transfer or disposition of the property then owned by Owner.
Owner further recognizes that it is because of such qualifications and identity tha t the City is entering into this Agreement with Owner. Therefore, no voluntary or involuntary successor in interest of Owner shall acquire any rights or powers under this Agreement except as expressly set forth herein.
b. For the reasons cited above, Owner represents and agrees for itself and every successor in interest that prior to the full reconveyance of the PLHA Deed of Trust and expiration of the term of the Regulatory Agreement; Owner shall not assign all or any part of this Agreement, or any interest herein, without the prior written approval of the City. Subject to review of documentation effectuating any such proposed assignment or transfer, the City agrees to reasonably give such approval if the assignment is a Permitted Transfer. c. For the reasons cited above, Owner represents and agrees for itself and every successor in interest that prior to the full reconveyance of the PLHA Deed of Trust and expiration of the term of the Regulatory Agreement, without the prior written approval of the City, there shall be no significant change in the ownership of Owner or in the relative proportions thereof, or with respect to the identity of the parties in control of Owner or the degree thereof, by any method or means, except Permitted Transfers.
d. Any assignment or transfer of this Agreement or any interest herein or significant change in ownership of Owner, other than a Permitted Transfer, shall require the approval of the City, which may be withheld in its sole and absolute discretion. To the extent the City’s approval of an assignment or transfer is required by this Agreement, in granting or withholding its approval, the City shall base its decision upon the relevant experience, financial capability and reputation of the proposed assignee or transferee, and the effect, if any, of such proposed transfer on the public purposes of this Agreement. In addition, the City shall not have any obligation to approve any assignment or transfer of this Agreement, or any interest herein, or significant change in ownership of Owner that would result in payment of consideration to any Person from the net proceeds of a sale or refinance of the Property or the Project, or any portion thereof or interest therein, prior to payment of the PLHA Loan as set forth in the PLHA Note. e. Owner shall promptly notify the City of any and all changes whatsoever in the identity of the parties in control of Owner or the degree thereof, of which it or any of its officers have been notified or otherwise have knowledge or information. This Agree ment may be terminated by the City if there is any significant change (voluntary or involuntary) in membership, management or control, of Owner (other than such changes occasioned by the death or incapacity of any individual) prior to the full reconveyance of the PLHA Deed of Trust and expiration of the term of the Regulatory Agreement, if such change is not a Permitted Transfer.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
f. The restrictions of this Section shall terminate upon full reconveyance of the PLHA Deed of Trust and expiration of the term of the Regulatory Agreement.
ARTICLE II FINANCING
Section 201 Use of PLHA Funds
Owner hereby warrants to the City and agrees that the PLHA Loan will be used solely for the purpose of paying Development Costs and for no other purpose.
Section 202 PLHA Loan
In accordance with and subject to the terms and conditions of this Agreement, City agrees to lend to Owner , and Owner agrees to borrow from City, the PLHA Loan. At or prior to the Closing, the City and Owner will execute and deliver such instruments and documents as may be necessary to evidence and secure the PLHA Loan, consistent with the terms of this Agreement, each in a form that is acceptable to the City Manager or designee.
Section 203 PLHA Loan Terms
a. Owner has entered or will enter into the AHA. Pursuant to the AHA, the Owner shall acquire the Property and commence construction of the Project as provided in the AHA and this Agreement. The PLHA Loan is intended to provide financing for construction of the Project, without which the Project would not be completed. The Owner is responsible for all additional costs to complete the construction of the Project pursuant to this Agreement and the AHA. b. The PLHA Loan shall be disbursed based on actual expenses incurred or paid.
Requests for payment must be submitted by Owner on forms specified by the City, with adequate and proper documentation of eligible costs incurred. The PLHA Loan shall be disbursed based upon City’s receipt of contractor invoices and other information and documentation (e.g., lien releases) requested or required by the City Manager or designee. City shall have the right to condition any disbursement upon receipt and approval of such documentation, evidence , or information that City may request, including, but not limited to, vouchers, invoices, and architect’s, inspector’s and/or engineer’s periodic certifications of the percentage and/or stage of development that has been completed.
c. Disbursements upon applications for p ayment shall be subject to a ten percent (10%) retention. The City shall have the right in its sole discretion to make disbursements of funds directly to third parties entitled to such payment. Owner may submit a final invoice upon Completion. Final payment, including retention previously withheld, shall be made after the City has determined that Owner has submitted all documentation of the final cost of completing the Project, and proof of Completion of the Project.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
d. City shall have the right to review and audit all records of Owner pertaining to any payment by the City. Subject to and without limiting Article VIII hereof , said records shall be maintained for a period of five years after Completion.
Section 204 Security
Owner’s obligation to repay the PLHA Loan will be secured by the PLHA Deed of Trust, to be recorded in a first mortgage lien against the Property.
Section 205 Conditions Precedent to PLHA Loan Disbursement Disbursement of the PLHA Loan is conditioned upon each of the following occurring to the satisfaction of the City prior to the time for the Closing set forth in the AHA:
a. Owner submits evidence that the final working drawings for the Project have been approved by the City;
b. Owner submits a copy of the fully executed general construction contract with a licensed general contractor approved by the City, covering all construction required by this Agreement and the AHA and the approved final working drawings for the Project; c. Owner submits a final Project Budget, current as of the Closing D ate, demonstrating to the satisfaction of the City the availability of sufficient funds to pay all acquisition and Development Costs;
d. Owner submits evidence satisfactory to the City that the Owner has firm financing commitments sufficient to pay all acquisition and Development Costs in accordance with the Method of Financing attached to the AHA as Attachment No. 3; e. Owner submits copies of final loan documents for each of the loans described in the Method of Financing attached to the AHA;
f. Owner submits evidence of the insurance policies and endorsements required by this Agreement;
g. Owner submits evidence satisfactory to the City that Owner has satisfied all conditions precedent to the issuance of all permits necessary for the construction of the Project, other than payment of fees (for which funds have been budgeted in the Project Budget); h. Owner submits an estimated draw schedule for any other loans for the Project; i. Owner deposits into Escrow payment and performance bonds, including a multiple- obligee rider naming the City of Palmdale, in a form approved by the City; PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
j. Title Company shall be committed to issue a standard form CLTA Lender’s Title Insurance Policy in favor of the City, subject to the Approved Title Conditions, together with such endorsements as the City may reasonably require, in the amount of the PLHA Loan insuring the PLHA Deed of Trust as a first lien on the Property;
k. Submission by Owner and City approval of documentation relating to the corporate status of Owner, including, without limitation: articles of incorporation; copies of all resolutions or other necessary actions taken by such entity to authorize the execution of this Agreement and related documents; and a current certificate of good standing issued by the California Secretary of State;
l. City, Owner and/or other parties, as appropriate, shall have duly executed, and filed or recorded as appropriate, the following documents:
1. PLHA Note;
2. PLHA Deed of Trust;
3. Assignment of Rents;
4. Assignment of Agreements;
5. Environmental Indemnity;
6. A UCC-1 Financing Statement (recorded and filed);
7. Regulatory Agreement; and
m. Close of Escrow has occurred under the AHA and Owner is the fee simple owner of the Property; and
n. The City determines that Owner is not in default of its obligations to the City under this Agreement or the AHA.
Notwithstanding the foregoing, the City may waive any of the foregoing conditions precedent. A waiver of any of the foregoing conditions will not operate in any way as a waiver or estoppel with respect to any subsequent or other failure to comply with such condition, or any other condition contained in this Section or any of the PLHA Loan documents.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
ARTICLE III IMPROVEMENT OF THE PROPERTY
Section 301 Land Use Approvals
It is the responsibility of Owner, without cost to the City, to ensure that zoning of the Property and all applicable City of Palmdale land use requirements will be such as to permit construction and completion of the Project and the use, operation and maintenance of the Project in accordance with the provisions of this Agreement. The review and approval rights set forth in this Article 3 are for the benefit of the City acting in its capacity as a lender to the Project, and will not be deemed to waive, limit or condition in any way the power and authority of the City of Palmdale, acting in its governmental capacity. Nothing contained herein shall be deemed to entitle Owner to any City of Palmdale permit or other City land use approval necessary for the development of the Property, or waive any applicable governmental requirements relating thereto.
This Agreement does not (a) grant any land use entitlement to Owner, (b) supersede, nullify or amend any condition which may be imposed by the City of Palmdale in its governmental capacity in connection with approval of the improvements described herein, (c) guarantee to Owner or any other party any profits from the development of the Property, or (d) amend any City laws, codes or rules. This is not a Development Agreement under Government Code Section 65864.
Section 302 Condition of the Property
a. In making the PLHA Loan, the City makes no representation or warranty, express or implied regarding any condition of the Property. It shall be the sole responsibility of Owner, at Owner’s expense, to investigate and determine all conditions of the Property and its suitability for the uses to which the Property is to be put in accordance with this Agreement. If the conditions of the Property are not in all respects entirely suitable for the use or uses to which the Property will be put, then it is the sole responsibility and obligation of Owner, without cost to the City, to take such action as may be necessary to place the Property in all respects in a condition entirely suitable for its development and use in accordance with this Agreement. b. Owner agrees to perform and be solely responsible for the clean- up of any Hazardous Materials on, in, under or within the Property, at the sole cost, risk and expense of Owner. Owner shall defend, indemnify and hold harmless the City and the Indemnified Parties from any claims, liability, injury, damages, costs and expenses (including, without limiting the generality of the foregoing, the cost of any required clean up of Hazardous Materials, and the cost of reasonable attorneys’ fees) which may be sustained as the result of the presence or clean up of Hazardous Materials on, in, or under the Property. As a condition precedent to the Closing, Owner shall execute and deliver to the City the Environmental Indemnity attached hereto as Attachment No. 7.
Section 303 Scope of Development
The Property shall be developed in accordance with and within the limitations established in the Scope of Development attached to the AHA as Attachment No. 4. Owner shall carry out the development and management of the Property in conformity with all applicable requirements of the AHA, this Agreement, the Standard Agreement, and the PLHA Guidelines.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
Section 304 Basic Concept and Schematic Drawings
a. Owner shall prepare and submit Basic Concept and Schematic Drawings and related documents for the improvements to the Property to the City for review and written approval within the time established in the Schedule of Performance attached to the AHA as Attachment No. 5. Basic Concept and Schematic Drawings shall include a site plan, elevations and sections of the improvements as they are to be developed on the Property. b. The Property shall be improved as established in the Basic Concept and Schematic Drawings and related documents, except as changes may be mutually agreed upon between Owner and the City. All such changes shall be within the limitations of the Scope of Development.
Section 305 Demolition, Grading and Landscaping Plans
a. Owner shall prepare and submit to the City for its approval preliminary and final landscaping and preliminary and finish grading plans for the Property. The plans shall be prepared and submitted within the times established in the Schedule of Performance attached to the AHA as Attachment No. 5.
b. The landscaping plans shall be prepared by a professional landscape architect and the grading plans shall be prepared by a licensed civil engineer. Such landscape architect and/or civil engineer may be the same firm as Owner’s architect. Within the ti mes established in the Schedule of Performance attached to the AHA as Attachment No. 5, Owner shall submit to the City for approval the name and qualifications of its architect, landscape architect and civil engineer.
Section 306 Construction Drawings and Related Documents a. Owner shall prepare and submit construction drawings and related documents (collectively called the “Plans”) to the City for review (including but not limited to architectural review), and written approval in the times established in the Schedule of Performance attached to the AHA as Attachment No. 5. Such construction drawings and related documents shall be submitted as 50% and Final Construction Drawings. Final Construction Drawings are hereby defined as those in sufficient detail to obtain all building permits. b. Approval of progressively more detailed Plans will be granted by the City if developed as a logical evolution of Plans theretofore approved. Any items so submitted and approved by the City shall not be subject to subsequent disapproval. c. During the preparation of all Plans, the City and Owner shall hold regular progress meetings to coordinate the preparation of, submission to, and review of Plans and related documents by the City. The City and Owner shall communicate and consult informally as frequently as is necessary to insure that the formal submittal of any documents to the City can receive prompt and speedy consideration.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
d. If any revisions or corrections of Plans approved by the City as lender to the Project shall be required by any government official, agency, department, or bureau having jurisdiction over the development of the Property, Owner and the City shall cooperate in efforts to obtain waiver of such requirements or to develop a mutually acceptable alternative.
Section 307 City Approval of Plans
a. Subject to the terms of this Agreement, the City shall have the right of review (including without limitation architectural review) of all Plans and submissions, including all proposed substantial changes to any such Plans or submissions previously approved by the City.
Owner, upon receipt of a disapproval, shall revise the Plans, and shall resubmit to the City as soon as possible after receipt of the notice of disapproval. Disapprovals shall state in writing the reasons for disapproval and changes to submitted Plans which the City determines must be made in order to obtain approval. Such reasons and such changes shall be consistent with the Scope of Development and all items previously approved hereunder. The City’s failure to notify Owner of approval or disapproval within thirty (30) days shall not be deemed to be approval of any matter. b. If Owner desires to make any substantial change in the Final Construction Drawings after their approval, such proposed change must be submitted to the City for approval.
Section 308 Cost of Construction
The Development Costs of the Project, including all offsite or onsite improvements required by the City in connection therewith, and the cost of relocation claims (if any) under Relocation Laws shall be the responsibility of Owner, without any cost to the City except as expressly set forth in this Agreement. Owner shall establish procurement procedures to ensure that materials and services are obtained in a cost-effective manner.
Section 309 Schedule
a. Each party to this Agreement shall perform the obligations to be performed by such party pursuant to this Agreement within the respective times provided herein, and if no such time is provided, within a reasonable time.
b. After the Closing, Owner shall promptly begin and thereafter diligently prosecute to completion the Project as described in the Scope of Development and the Plans approved by the City. Owner shall begin and complete all construction within the times specified in the Schedule of Performance attached to the AHA as Attachment No. 5 with such reasonable extensions of said dates as may be granted by the City Manager, provided Owner submits a timely written request with substantiating documentation that establishes good cause for such an extension, and provided such an extension will not have a detrimental effect on the City’s interests. c. During periods of construction, Owner shall submit to the City a written report of the progress of construction when and as reasonably requested by the City, but not more frequently than once every quarter. The report shall be in such form and detail as may be reasonably required PLHA Loan Agreement Agreement No. A-8909
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by the City and shall include a reasonable number of construction photographs (if requested) taken since the last report by the Owner.
Section 310 Indemnification and Insurance
a. Owner’s Indemnity. To the maximum extent permitted by law, Owner agrees to and shall defend, indemnify and hold harmless the City and its officers, employees, contractors, attorneys, agents, insurers , and volunteers ( collectively, the “Indemnified Parties ”) from and against all claims, liabilities, losses, damages, costs or expenses (including reasonable attorneys’ fees and court costs) arising from or as a result of the death of any person or any accident, injury, loss or damage whatsoever caused to any person or the property of any person resulting or arising from or in any way connected with the following, provided Owner shall not be responsible for (and such indemnity shall not apply to) any gross negligence or willful misconduct of the City or the Indemnified Parties:
(1) The existence, release, presence or disposal on, in, under, about or adjacent to the Property of any Hazardous Materials;
(2) The development, construction, marketing, use, operation or condition of the Property and the improvements thereon by Owner, its contractors, subcontractors, agents, employees or other persons acting on Owner’s behalf;
(3) Any accident, personal injury or casualty on the Property or the improvements thereon;
(4) All Plans or designs for improvements prepared by or on behalf of Owner or its contractors, subcontractors, agents, employees or other persons acting on Owner’s behalf, including without limitation all errors or omissions with respect to such Plans or designs; (5) All loss or damage to City resulting from any inaccuracy in or breach of any representation or warranty of Owner, or resulting from any breach or default by Owner, under this Agreement;
(6) Claims of any kind related to Relocation Laws, including, without limitation, claims for relocation assistance pursuant to the Relocation Law s, Government Code Section 7260, inverse condemnation, taking, threatened taking or temporary taking or loss of good will; and
(7) A ny and all actions, claims, damages, injuries, challenges and/or costs or liabilities arising from the approval of any and all entitlements or permits for the Project.
The obligation to indemnify will not be construed to negate, abridge, or otherwise reduce other rights or obligations of indemnity which would otherwise exist as to the Indemnified Parties.
The foregoing indemnification will apply to the extent of the violation of a legal duty, including but not limited to active or passive negligence, strict liability, breach of contract, or intentional or willful misconduct, by Owner or its contractors, suppliers, or vendors, of any contracting tier, or anyone PLHA Loan Agreement Agreement No. A-8909
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directly or indirectly employed by any of them, or anyone for whose acts Owner may be responsible.
The Indemnified Parties will be entitled to recover attorney’s fees incurred as a result of Owner’s failure to provide the defense and indemnity required by this Section. The foregoing indemnit ies will survive termination of this Agreement.
b. Insurance Policies.
1. In addition to the insurance policies required by the PLHA Deed of Trust, Owner will provide the following insurance coverage. Commencing upon the first to occur of (i) entry by Owner onto the Property for any purposes hereunder and (ii) the Closing, and remaining in full force and effect until the Completion of the Project, Owner will maintain in effect and deliver to the City duplicate originals or appropriate certificates of the following insurance policies (collectively, the “Insurance Policies”) naming the City and the Indemnified Parties as additional insureds or loss payees, as their interests may appear:
(A) All-Risk Policies: Owner will furnish evidence of, and will thereafter maintain or cause to be maintained a policy or policies of insurance against direct physical loss or damage by fire, lightning, wind, storm, explosion, collapse, underground hazards, flood, vandalism, malicious mischief, glass breakage and such other causes as are covered by such form of insurance. Such policy will include (1) an endorsement for broad form property damage, breach of warranty, demolition costs and debris removal, (2) a “Replacement Cost Endorsement” in an amount sufficient to prevent Owner from becoming a co-insurer under the terms of the policy, but in any event in an amount not less than 100% of the then full replacement cost, to be determined at least once annually and subject to reasonable approval by City, and (3) an endorsement to include coverage for budgeted soft costs. The replacement cost coverage will be for work performed and equipment, supplies and materials furnished to the Property or any adjoining sidewalks, streets and passageways, or to any bonded warehouse for storage pending incorporation into the work, without deduction for physical depreciation and with a deductible not exceeding $25,000 per occurrence (except that earthquake coverage, if required by the City , will carry a deductible not to exceed 25% of the policy amount, or such other deductible amount as the City may reasonably determine is acceptable, in light of the cost of the premium for such insurance); (B) Liability Insurance: Owner will maintain or cause to be maintained general liability insurance, to protect against loss from liability imposed by law for damages on account of personal injury, including death therefrom, suffered or alleged to be suffered by any person or persons whomsoever on or about the Property and the business of Owner on the Property, or in connection with the operation thereof, resulting directly or indirectly from any acts or activities of Owner, or any person acting for Owner , or under its control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person occurring on or about the Property, or in connection with the operation thereof, caused directly or indirectly by or from acts or activities of Owner or any person acting for Owner , or under its control or direction. Such property damage and personal injury insurance will also provide for and protect the Indemnified Parties against incurring any legal cost in defending claims for alleged PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
loss. Such personal injury and property damage insurance will be maintained in full force and effect until Completion of the Project in the following amounts: commercial general liability in a general aggregate amount of not less than Five Million Do llars ($ 5,000,000), Products and Completed Operations Aggregate of not less than Two Million Dollars ($2,000,000) and One Million Dollars ($1,000,000) each occurrence. Owner agrees that provisions of this paragraph as to maintenance of insurance will not be construed as limiting in any way the extent to which Owner may be held responsible for the indemnification of the Indemnified Parties or the payment of damages to persons or property resulting from Owner’s activities or the activities of any other person or persons for which Owner is otherwise responsible. (C) Automobile Insurance: Owner will maintain or cause to be maintained Commercial Automobile Liability insurance in an amount of not less than Two Million Dollars ($2,000,000) combined single limit, including owned, non- owned and hired automobile coverage.
(D) Workers’ Compensation Insurance: Owner shall maintain or cause to be maintained workers’ compensation insurance issued by a responsible carrier authorized under the laws of the State of California to insure employers against liability for compensation under the workers’ compensation laws now in force in California, or any laws hereafter enacted as an amendment or supplement thereto or in lieu thereof. Such workers’ compensation insurance shall cover all persons employed by Owner in connection with the Property and shall cover liability within statutory limits for compensation under any such act aforesaid, based upon death or bodily injury claims made by, for or on behalf of any person incurring or suffering injury or death in connection with the Property or the operation thereof by Owner. Notwithstanding the foregoing, Owner may, in compliance with the laws of the State of California and in lieu of maintaining such insurance, self -insure for workers’ compensation in which event Owner shall deliver to City evidence that such self-insurance has been approved by the appropriate State authorities.
2. All policies or certificates of insurance shall provide that such policies shall not be canceled, reduced in coverage or limited in any manner without at least thirty (30) days prior written notice to City. All fire and liability insurance policies (not automobile and Workers’ Compensation) shall name the City, the Indemnified Parties, and Owner as insureds, additional insureds, and/or loss payable parties as their interests may appear.
3. The Insurance Policies shall name as additional insureds the following:
“The City of Palmdale and its officers, employees,
contractors, agents and attorneys.”
4. Owner agrees to timely pay all premiums for such insurance and, at its sole cost and expense, to comply and secure compliance with all insurance requirements necessary for the maintenance of such insurance. Owner agrees to submit endorsements and binders or certificates evidencing such insurance to City at least 15 days prior to the Closing. Within thirty (30) days, if practicable, but in any event prior to expiration of any such policy, copies of renewal PLHA Loan Agreement Agreement No. A-8909
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policies, or certificates evidencing the existence thereof, shall be submitted to City. All insurance herein provided for under this Section shall be provided by insurers licensed to do business in the State of California and rated A-VII or better.
5. Owner must cause all contractors and subcontractors performing work relating to the Project to maintain insurance of the types and in the amount described in thi s Section. In addition, Owner must cause its architects and engineers to maintain Architects and Engineers Professional Liability (Errors and Omissions) insurance on a “claims made basis” in an amount of not less One Million Dollars ($1,000,000). When coverage is provided on a “claims made basis”, Owner must cause all contractors and subcontractors to continue to renew the insurance, with the same coverage and limits, for a period of ten (10) years after Completion of the Project, providing coverage for all claims arising out of any acts or omissions of Owner, or its officers, employees or agents.
6. If Owner fails or refuses to procure or maintain insurance as required by this Agreement, the City will have the right, but not the obligation, at City’s election, and upon ten (10) days prior notice to Owner, to procure and maintain such insurance. The premiums paid by the City will be treated as a loan, due from Owner, to be paid on the first day of the month following the date on which the premiums were paid. The City will give prompt notice of the payment of such premiums, stating the amounts paid and the name of the insured(s).
7. Owner shall have the right in its discretion to provide the insurance coverage required by this Section through one or more umbrella policies, so long as the type and level of insurance protection to be maintained by Owner in accordance with this Section is not diminished by so doing (as reasonably determined by the City).
Section 311 Permits
Before commencement of construction of any buildings, structures or other work of improvement upon any portion of the Property, the Owner will, at its own expense, secure or cause to be secured, any and all permits which may be required by the City or any other governmental agency affected by such work. The disbursement of the PLHA Loan is subject, among other conditions, to the issuance of all permits required by the City for the development and construction of the Project.
Section 312 Rights of Access
Representatives of the City will have the right of access to the Property , without charges or fees, at any time, with reasonable prior notice, during the period of construction, for the purposes of this Agreement, including, but not limited to, the inspection of the work being performed in constructing the Improvements.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
Section 313 Disclaimer of Responsibility by City
The City neither undertakes nor assumes nor will have any responsibility or duty to Owner or to any third party to review, inspect, supervise, pass judgment upon or inform Owner or any third party of any matter in connection with the construction or development of the Project , whether regarding the quality, adequacy or suitability of the plans, any labor, service, equipment or material furnished to the Project, any person furnishing the same, or otherwise. Owner and all third parties will rely upon its or their own judgment regarding such matters, and any review, inspection, supervision, exercise of judgment or information supplied to Owner or to any third party by the City in connection with such matter is for the public purpose of developing the Project, and neither Owner (except for the purposes set forth in this Agreement) nor any third party is entitled to rely thereon. The City will not be responsible for any of the work of development of the Property or the Project.
Section 314 Taxes, Assessments, Encumbrances and Liens
a. Owner will not allow any liens or encumbrances to be placed on the Property, except as expressly provided by this Agreement or otherwise approved in writing by the City, and will promptly take all necessary actions to remove any such liens or encumbrances. Nothing herein contained will be deemed to prohibit Owner from contesting in good faith the validity or amount of any encumbrance or lien, or to limit the remedies available to Owner in respect thereto. b. Prior to the full reconveyance of the PLHA Deed of Trust and expiration of the term of the Regulatory Agreement , Owner will not place, or allow to be placed, on title to the Property or any portion thereof, any mortgage, trust deed, encumbrance or lien not authorized by this Agreement. In addition, Owner will remove, or will have removed, any levy or attachment made on title to the Property (or any portion thereof), or will assure the satisfaction thereof within a reasonable time but in any event prior to a sale thereunder. Owner will pay prior to delinquency, but not later than the imposition of any penalty, all real estate taxes and assessments assessed and levied on or against the Property. Nothing herein contained will be deemed to prohibit Owner from contesting in good faith the validity or amount of any tax assessment, or to limit the remedies available to Owner in respect thereto. The covenants of the Owner set forth in this Section will remain in effect until full reconveyance of the PLHA Deed of Trust and expiration of the term of the Regulatory Agreement.
Section 315 Local, State and Federal Laws
a. Owner hereby agrees to carry out construction, development (as defined by applicable law) and operation of the improvements on the Property, including, without limitation, any and all public works (as defined by applicable law), in conformity with all applicable federal and state labor laws, including, without limitation, the payment of state prevailing wages. Owner also covenants and warrants that it will comply with all applicable laws, ordinances, codes, rules and regulations of the state local and federal governments, and all amendment s thereto. Owner PLHA Loan Agreement Agreement No. A-8909
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also agrees to take such action as the federal, state or local government may direct to enforce aforesaid provisions.
b. Owner agrees that it will have the obligation to provide any and all disclosures, representations, statements, rebidding, and/or identifications which may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law. Owner agrees that it will have the obligation to provide and maintain any and all bonds to secure the payment to contractors (including the payment of wages to workers performing any public work) which may be required by the Civil Code, Labor Code Section 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law.
Owner agrees that it will have the obligation, at Owner’s sole cost, risk and expense, to obligate any party as may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law. Owner will indemnify, protect, defend and hold harmless the Indemnified Parties, with counsel rea sonably acceptable to City, from and against any and all loss, liability, damage, claim, cost, expense, and/or “increased costs” (including labor costs, penalties, reasonable attorney’s fees, court and litigation costs, and fees of expert witnesses) which, in connection with the construction, development (as defined by applicable law) and/or operation of the Project, including the Pool Improvements, including, without limitation, any and all public works (as defined by applicable law), results or arises in any way from any of the following: (1) the noncompliance by Owner of any applicable local, state and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages); (2) the implementation of Sections 1726 and 1781 of the Labor Code, as the same may be enacted, adopted or amended from time to time, or any other similar law; (3) failure by Owner to provide any required disclosure, representation, stat ement, rebidding and/or identification which may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law; (4) failure by Owner to provide and maintain any and all bonds to secure the payment to contractors (including the payment of wages to workers performing any public work) which may be required by the Civil Code, Labor Code Section 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law; and/or (5) failure by Owner to obligate any party as may be required by Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, or any other provision of law.
c. It is agreed by the parties that, in connection with the construction, development (as defined by applicable law) and operation of the Project, including, without limitation, any public work (as defined by applicable law), Owner will bear all risks of payment or nonpayment of state prevailing wages and/or the implementation of Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, and/or any other provision of law. “Increased costs” as used in this Section will have the meaning ascribed to it in Labor Code Section 1781, as the same may be enacted, adopted or amended from time to time. d. The foregoing indemnity will survive termination of this Agreement.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
Section 316 Nondiscrimination
Owner shall not discriminate on the basis of race, gender, religion, national origin, ethnicity, sexual orientation, age or disability in the solicitation, selection, hiring or treatment of any contractors or consultants, to participate in subcontracting/subconsulting opportunities. Owner understands and agrees that violation of this clause shall be considered a material breach of this Agreement and may result in termination, debarment or other sanctions. This language shall be incorporated into all contracts between Owner and any contractor, consultant, subcontractor, subconsultants, vendors and suppliers.
Section 317 Prohibition against Transfer
a. Prior to the full reconveyance of the PLHA Deed of Trust and expiration of the term of the Regulatory Agreement, Owner shall not, except as permitted by this Agreement, assign or attempt to assign this Agreement or any right herein, nor make any total or partial sale, transfer, conveyance or assignment of the whole or any part of the Property or the improvements thereon, without prior written approval of the City . This prohibition shall not be deemed to prohibit Permitted Transfers.
b. In the event Owner does or attempts to assign this Agreement or any of the rights herein, or does or attempts to sell, transfer, convey or assign the Property or the buildings or structures thereon prior to the full reconveyance of the PLHA Deed of Trust without the approval of the City in violation of this Agreement, subject to the notice and cure provisions hereof, the City shall have the right to terminate this Agreement.
c. In the absence of a specific written agreement by the City, and except as otherwise provided in this Agreement, no such sale, transfer, conveyance or assignment of this Agreement or the Property (or any portion thereof), or approval by the City of any s uch sale, transfer, conveyance or assignment, shall be deemed to relieve Owner or any other party from any obligations under this Agreement.
Section 318 Removal of Liens and Encumbrances
Owner shall not allow any liens or encumbrances to be placed on the Property, except as expressly provided by this Agreement or otherwise approved in writing by the City, and shall promptly take all necessary actions to remove any such liens or encumbrances.
ARTICLE IV USE OF THE PROPERTY
Section 401 Uses
Owner, its successor and assigns shall use the Property only for the uses specified in the AHA, the Regulatory Agreement, and this Agreement specifically including the following:
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
a. The Property shall be developed and used for the operation of affordable housing, consisting of a duplex rental apartment with two (2) two-story units (3 bedrooms/ 2 bath per unit) rented exclusively to and occupied by Low Income households at an Affordable Rent. No change in the use of the Property shall be permitted without the prior written approval of the City. b. City, and its successors and assigns, shall have the right, but not the obligation, to monitor and enforce the covenants contained in this Section. Owner covenants that it shall comply with any monitoring program set up by City to enforce said covenants. In complying with such monitoring program, Owner or its agent shall prepare and submit to City an occupancy report, financial information and in come verification documents for each tenant of a n Affordable Unit, and all supporting documentation, on forms provided by Owner, annually, setting forth the required information for the preceding year. On an annual basis, Owner or its agent shall additionally submit to City evidence of each tenant’s continuing eligibility for the units. City shall review such reports for certification of continuing affordability of units and eligibility of tenants. c. No officer, employee, agent, official or consultant of Owner may occupy either of the units.
Section 402 Maintenance of the Property
Owner shall maintain the Property in accordance with the requirements of the Regulatory Agreement.
Section 403 Obligation to Refrain from Discrimination
Owner covenants and agrees for itself, its successors and its assigns in interest to the Property or any part thereof, that there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Owner itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Property.
Section 404 Effect and Duration of Covenants
The covenants established in this Agreement shall, without regard to technical classification and designation, be binding for the benefit and in favor of the City for 55 years after the issuance of a certificate of occupancy for the Project.
Section 405 Regulatory Agreement
Concurrently with the Close of Escrow, Owner and City shall execute and cause the recordation of the Regulatory Agreement substantially in the form attached to this Agreement as Attachment No. 9. The covenants contained in the Regulatory Agreement shall remain in effect for 55 years after the issuance of a certificate of occupancy for the Project.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
ARTICLE V DEFAULTS AND REMEDIES
Section 501 Defaults - General
a. Subject to the extensions of time set forth in Section 602, failure or delay by either party to perform any term or provision of this Agreement constitutes a default under this Agreement. The party who fails or delays must commence to cure, correct or remedy such failure or delay and shall complete such cure, correction or remedy with reasonable diligence. b. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. Except as otherwise expressly provided in this Agreement, any failures or delays by either party in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies. Delays by either party in asserting any of its rights and remedies shall not deprive either party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. c. If a monetary event of default occurs, prior to exercising any remedies hereunder, the injured party shall give the party in default written notice of such default. The party in default shall have a period of ten (10) calendar days after such notice is received or deemed received within which to cure the default prior to exercise of remedies by the injured party. d. If a non -monetary event of default occurs, prior to exercising any remedies hereunder, the injured party shall give the party in default notice of such default. If the default is reasonably capable of being cured within thirty (30) calendar days after such notice is received or deemed received, the party in default shall have such period to effect a cure prior to exercise of remedies by the injured party. If the default is such that it is not reasonably capable of being cured within thirty (30) days, and the party in default (1) initiates corrective action within said period, and (2) diligently, continually, and in good faith works to effect a cure as soon as possible, then the party in default shall have such addi tional time as is reasonably necessary to cure the default prior to exercise of any remedies by the injured party, but in no event shall such period exceed sixty (60) days from the date such notice is received or deemed received. In no event shall the injured party be precluded from exercising remedies if its security becomes or is about to become materially jeopardized by any failure to cure a default.
Section 502 Institution of Legal Actions
In addition to any other rights or remedies (and except as otherwise provided in this Agreement), either party may institute legal action to cure, correct or remedy any default, to recover damages for any default, or to obtain any other remedy consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the County of Los Angeles, State of California, in any other appropriate court of that county.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
Section 503 Applicable Law
The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement, without giving effect to the principles governing conflicts of laws.
Section 504 Acceptance of Service of Process
a. In the event that any legal action is commenced by the Owner against the City, service of process on the City will be made by personal service upon the City Manager or in such other manner as may be provided by law.
b. In the event that any legal action is commenced by the City against the Owner, service of process on the Owner will be made by personal service upon the Owner (or upon a general partner, managing member or officer of the Owner) and will be valid whether made within or without the State of California, or in such manner as may be provided by law.
Section 505 Rights and Remedies Are Cumulative
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either party of one or more of such rights or remedies will not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
Section 506 Damages
Subject to the notice and cure provisions of Section 501, if either party defaults with regard to any of the provisions of this Agreement, the non- defaulting party will serve written notice of such default upon the defaulting party. If the default is not cured within the time provided in Section 501, the defaulting party will be liable to the non-defaulting party for any damages caused by such default, and the non-defaulting party may thereafter (but not before) commence an action for damages against the defaulting party with respect to such default.
Section 507 Specific Performance
Subject to the notice and cure provisions of Section 501, if either party defaults with regard to any of the provisions of this Agreement (except with respect to monetary defaults) , the non- defaulting party will serve written notice of such default upon the defaulting party. If the default is not cured within the time provided in Section 501, the non- defaulting party, at its option, may thereafter (but not before) commence an action for specific performance of the terms of this Agreement pertaining to such default.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
Section 508 Non-Recourse
The obligation to repay the PLHA Loan is a nonrecourse obligation of Owner and its partners. Neither Owner nor any of its general or limited partners, nor any other party, shall have any personal liability for repayment of the loan. The sole recourse of the City with respect to repayment of the PLHA Loan shall be the exercise of its rights against the Property and the Improvements and any related security for the PLHA Loan. Notwithstanding the foregoing, the City may:
a. obtain a judgment or order (including, without limitation, an injunction) requiring Owner or any other party to perform (or refrain from) specified acts other than repayment of the PLHA Loan; and
b. recover directly from Owner or any other party:
1. all damages, costs and expenses incurred by the City as a result of fraud or any criminal act or acts of Owner or any partner, shareholder, officer, director or employee of Owner or of any general partner of Owner or of any member of a general partner of Owner;
2. all damages, costs and expenses incurred by the City as a result of misappropriation of funds provided for the construction of the Improvements, as described in this Agreement, rents and revenues from the operation of the Project, or proceeds of insurance policies or condemnation proceeds;
3. all amounts owing by Owner pursuant to Owner’s indemnification regarding Hazardous Materials provided to the City in connection with this Agreement; and
4. all court costs and attorneys’ fees reasonably incurred in enforcing or collecting upon any of the foregoing exceptions.
Section 509 Termination by City
a. Subject to the notice and cure provisions of Section 501, the City will have the right to terminate this Agreement prior to Closing by providing written notice to Owner in the event any of the following occurs:
(1) failure of any condition precedent to the occurrence of the Closing; or (2) Owner fails to submit to the City the evidence of financing within the time established therefor in the Schedule of Performance attached to the AHA as Attachment No. 5, and has failed to cure such default within thirty (30) days after receiving written notice from the City; or
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
(3) Except for a Permitted Transfer, Owner (or any successor in interest) assigns or attempts to assign the Agreement or any right therein, or transfers the Property (or any portion thereof or interest therein), in violation of this Agreement; or (4) there is substantial change in the ownership of the Owner , or with respect to the identity of the parties in control of Owner , or the degree thereof in violation of this Agreement; or
(5) Owner fails to submit any of the plans, drawings and related documents required by this Agreement by the respective dates provided in the Schedule of Performance attached to the AHA as Attachment No. 5, and has failed to cure such default within thirty (30) days after receiving written notice from the City.
b. After the Closing, subject to the notice and cure provisions of Section 501, the City will have the right to terminate this Agreement by providing written notice to Owner , and all outstanding amounts due under the PLHA Note will become immediately due and payable by Owner in the event of a default by Owner, including but not limited to the following:
(1) Owner fails to commence construction of the Project within the time provided in the Schedule of Performance attached to the AHA as Attachment No. 5, subject to Force Majeure delays; or
(2) Owner abandons or suspends the Project for a period of thirty (30) days; or (3) except for a Permitted Transfer, there is substantial change in the ownership of the Owner, or with respect to the identity of the parties in control of Owner, or the degree thereof in violation of this Agreement; or
(4) except for a Permitted Transfer, Owner assigns or attempts to assign this Agreement, or any rights herein, or transfer, or suffer any involuntary transfer of the Property , or any part thereof, in violation of this Agreement; or
(5) Owner fails to comply with the PLHA Guidelines or the terms and conditions of the PLHA Loan or otherwise materially breaches this Agreement. c. Without any right to notice and cure, the City will have the right to terminate this Agreement by providing written notice to Owner, and all outstanding amounts due under the PLHA Note will become immediately due and payable by Owner in the event that t he AHA terminates for any reason.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904
ARTICLE VI GENERAL PROVISIONS
Section 601 Notices
Formal notices, demands and communications between City and Owner will be deemed sufficiently given if dispatched by first class mail, registered or certified mail, postage prepaid, return receipt requested, or by electronic facsimile transmission followed by delivery of a “hard” copy, or by personal delivery (including by means of professional messenger service, courier service such as United Parcel Service or Federal Express, or by U.S. Postal Service), to the addresses of City and Owner as set forth herein. Such written notices, demands and communications may be sent in the same manner to such other addresses as either party may from time to time designate by mail. Any notice that is transmitted by electronic facsimile transmission followed by delivery of a “hard” copy, will be deemed delivered upon its transmission; any notice that is personally delivered (including by means of professional messenger service, courier service such as United Parcel Service or Federal Express, or by U.S. Postal Service), will be deemed received on the documented date of receipt; and any notice that is sent by registered or certified mail, postage prepaid, return receipt required will be deemed received on the date of receipt thereof.
Section 602 Enforced Delay: Extension of Time of Performance a. Performance by either party hereunder shall not be deemed to be in default where delays or defaults are due to war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes, lack of transportation, governmental restrictions or priority, unusually severe weather, inability to secure necessary labor, material or tools, delays of any contractor, subcontractor or supplier, acts of the other party, or acts or failure to act of the City of Palmdale in its governmental capacity or any other public or governmental agency or entity (except that acts or failure to act of the City in its capacity as lender to the Project shall not excuse performance of the City). b. An extension of time for any such cause (a “ Force Majeure Delay”) shall be for the period of the enforced delay but in no event longer than ninety (90) days and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of knowledge of the commencement of the cause. Notwithstanding the foregoing, none of the foregoing events shall constitute a Force Majeure Delay unless and until the party claiming such delay and interference delivers to the other party written notice describing the event, its cause, when and how such party obtained knowledge, the date and the event commenced, and the estimated delay resulting therefrom. Any party claiming a Force Majeure Delay shall deliver such written notice within thirty (30) days after it obtains actual knowledge of the event. Times of performance under this Agreement may also be extended in writing by the City and Owner.
PLHA Loan Agreement Agreement No. A-8909
Advancing Communities Together APN: 3008-010-904