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
3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE
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 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
CITY COUNCIL
CITY COUNCIL CHAMBERS
38300 SIERRA HIGHWAY
SUITE B
PALMDALE, CA 93550
WEDNESDAY, SEPTEMBER 18, 2024
5:00 PM
www.cityofpalmdaleca.gov
WELCOME
City Council
Wednesday, September 18, 2024
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.
4. 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.
5. 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.
5.1 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).
5.2 Approve First Amendment to Agreement with the Wellbeing Lab dba Louis Alloro, LLC, to provide four Mental Health and Wellbeing Youth Leadership Summits and an Appreciative Inquiry Mental Health & Wellbeing Summit for an additional $170,000 for a total not to exceed agreement amount of $445,000 for a term of December 30, 2025.
SR Agrmt No. A-8696 First Amendment with The Wellbeing Lab dba Louis Alloro LLC.docx
Agrmt No. A-8696 First Amendment with the Wellbeing Lab dba Louis Alloro LLC.pdf
Agrmt No. A-8696 with the Wellbeing Lab dba Louis Alloro LLC.pdf
5.3 Adopt Resolution CC 2024-078, a Resolution of the City Council of the City of Palmdale to transfer unclaimed checks from their respective funds to the general fund pursuant to California Government Code section 50050-50057.
SR Unclaimed Checks Sept 2024.docx
Reso. No. CC 2024-078 Unclaimed Checks Sept 2024.docx
Publication FY 2024 Unclaimed checks.pdf
City Council
Wednesday, September 18, 2024
5.4 Approve Agreement with Impex Technologies, Inc., to provide data backup solution hardware, configuration services, and software support in the amount of $159,326 for a term of five years.
SR Agrmt No. A-8997 with IMPEX Technologies, INC.docx
Agrmt No. A-8997 IMPEX Technologies Inc.pdf
5.5 Receive and file the Annual Report for the Palmdale Tourism Improvement District for Fiscal Year 2024-25.
SR Receive and File the Annual Report for the PTID for FY 2024-25.docx
Rpt. PTID Annual Report FY 2024-25.pdf
5.6 Adopt Resolution No. CC 2024-072, a Resolution of the City Council of the City of Palmdale approving Municipal Law Enforcement Services Agreement with the County of Los Angeles for public services provided by the Los Angeles County Sheriff’s Department and authorizing the City Manager to procure services of the Los Angeles County Sheriff’s Department annually up to an amount approved in the City’s Operating and Capital Budget for a five-year period of July 1, 2024 through June 30, 2029.
SR Agrmt No. A-8944 with County of Los Angeles.docx
Reso. No. CC 2024-072.docx
Agrmt No. A-8944 with County of Los Angeles.pdf
Exh A 1977 Assumption of Liability Agreement.pdf
Exh B 1991 Joint Indemnity Agreement.pdf
Exh C 2009 Special Indemnity Agreement.pdf
Exh D Contract Cities Indemnification Letter of Understanding.pdf
5.7 Approve the Term Sheet between Energy for Palmdale's Independent Choice (EPIC) and Deer Creek Solar, LLC for the purchase of long-term RPS-eligible renewable energy and mid-term reliability capacity.
SR Approve Term Sheet.docx
Term Sheet.pdf
5.8 Approve the minutes from the previous meeting.
CC SA Minutes 9 04 2024 5PM.pdf
6. PUBLIC HEARING
6.1 Receive Public Testimony Regarding the Renewal of the Palmdale Tourism Improvement District.
SR Receive Public Testimony Regarding the Renewal of the Palmdale Tourism Improvement District.docx
PTID Management District Plan 7-10-24.pdf
7. CITY MANAGER’S REPORT
City Council
Wednesday, September 18, 2024
8. COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE AGENDA ITEMS
9. 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.
10. PRESENTATION BY CITY ATTORNEY
10.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Maria Zuniga v. City of Palmdale et al.
[Sedwick Claim No.: L22-0097; Prism Risk Claim No.: 20210023359] This closed session is being held pursuant to the authority of California Government Code Section 54956.9.
11. ANNOUNCEMENT BY CITY ATTORNEY
12. ADJOURN
meeting to October 2, 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, September 18, 2024
City Council Staff Report
DATE: SEPTEMBER 18, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT
DISTRICT: ALL
SUBJECT: APPROVE FIRST AMENDMENT TO AGREEMENT WITH THE
WELLBEING LAB DBA LOUIS ALLORO, LLC , TO PROVIDE FOUR
MENTAL HEALTH AND WELLBEING YOUTH LEADERSHIP
SUMMITS AND A N APPRECIATIVE INQUIRY MENTAL HEALTH
AND WELLBEING SUMMIT FOR AN ADDITIONAL $ 170,000 FOR A
TOTAL AGREEMENT NOT TO EXCEED AMOUNT OF $445,000 FOR
A TERM OF DECEMBER 30, 2025
RECOMMENDATION
Staff recommends that the City Council:
1. Approve First Amendment to Agreement No. A-8696 with The Wellbeing Lab dba Louis Alloro, LLC, to provide four Mental Health & Wellbeing Youth Leadership sessions and an Appreciative Inquiry Mental Health & Wellbeing Summit for an additional $170,000 for a total not to exceed the amount of $445,000 for a term of December 30, 2025; and,
2. Authorize the City Manager or her designee to execute the First Amendment to Agreement No. A-8696 with The Wellbeing Lab dba Louis Alloro, LLC, including minimal and/or non-substantial changes.
BACKGROUND
In 2021, in response to the community’s strong interest in making wellbeing resources more widely available, the City offered the Wellbeing Lab Certificate in Applied Positive Psychology Program (CAPP). The program provides guidance and support to help teams thrive despite ongoing turbulence, uncertainty, disappointment, depression, or worse. Research shows that wellbeing, the ability to feel good and function effectively, helps us create workplaces, schools, organizations, and communities that are also optimally functioning. The Program provides intelligent, evidence -based insights and tools that deliver measurable results.
Report to Mayor and City Council
Re: Approve First Amendment to Agreement No. A-8696 with The Wellbeing Lab dba Louis Alloro, LLC
September 18, 2024
A Request for Proposal was released in January 2024. The City received one proposal that an evaluation committee reviewed. Qualified firms were rated based on proof of successful past performance and experience, cost proposal, technical, plan, and scheduled approach. The City Council awarded a contract to The Wellbeing Lab dba Louis Alloro, LLC in May 2024.
The program has proven to be a success, reaching full capacity for each of the three cohorts, and based on the participant's positive experience and their continued desire to serve the community, staff is seeking to expand the program to provide a broader range of wellbeing resources to our community.
DISCUSSION
The program would offer two additional opportunities via a Mental Health and Wellbeing Youth Leadership Summit and an Appreciative Inquiry (AI) Summit.
The Youth Leadership Summit will provide the opportunity to invest in community building by empowering young people to drive positive change and wellbeing. Youth engagement is vital for building a strong and vibrant community. The sessions will provide interactive activities and discussions, aim to harness the youth’s strengths, and encourage them to envision a brighter future for Palmdale. The outcome of the sessions will include:
Understanding what wellbeing is and ways to expand wellbeing in the community Visualizing what is possible in the City of Palmdale and the AV as a region Identifying potential allies and learning from each other; who needs to come to the table?
Introducing psychological safety and the importance of collaboration Reflecting on individual vision and commitment to change and wellbeing.
Additionally, taking ownership of the community’s mental health and wellbeing is essential for long-term sustainability. The AI Summit will offer an ideal platform to gather stakeholders to engage in meaningful dialogue and collectively build partnerships, create a shared vision, and catalyze innovation and change. By harnessing collective wisdom, we can lay the groundwork for a healthier and more resilient Palmdale.
The AI Summit is a large-group process that enables every voice to be heard as people’s hopes and ideas are integrated into an agreed set of actions through an evidence-based approach. A report capturing the key insights, ideas, and actions will be compiled, and tools and support will be provided for the teams that go on to drive these changes.
The approval of the First Amendment to Agreement No. A-8696 will allow the City to offer:
Report to Mayor and City Council
Re: Approve First Amendment to Agreement No. A-8696 with The Wellbeing Lab dba Louis Alloro, LLC
September 18, 2024
Four one-day Wellbeing/Mental Health Youth Leadership Summits; and, One two-day Appreciative Inquiry Mental Health Summit.
FISCAL IMPACT
$170,000; The cost for the four Youth Leadership Summits is $98,000 and the cost for the AI Summit is $72,000.
Funds for this program have been allocated under maintaining a healthy community and mental health resources within ARPA Funding; account 15818501-737100-1305 for FY 2024-25.
STRATEGIC PLAN
Goal IV: Maintain a desirable community where everyone wants to live, work and play.
B. Provide inclusive access to a variety of supportive services that build a resilient and healthy community.
D. Develop and maintain diverse programs and events that inspire growth, pride and lifelong learning.
Prepared by: Nardy Lopez, Deputy City Manager
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, City Attorney
ATTACHMENTS
Agrmt No. A-8696 First Amendment with the Wellbeing Lab dba Louis Alloro, LLC Agrmt No. A-8696 with the Wellbeing Lab dba Louis Alloro, LLC FIRST AMENDMENT TO AGREEMENT A- 8696
BETWEEN THE CITY OF PALMDALE AND THE WELLBEING LAB dba LOUIS
ALLORO, LLC
This First Amendment to Agreement No. A-8696 (“Agreement”) is made and entered into by and between the City of Palmdale (hereinafter called “CITY”) and THE WELLBEING LAB dba LOUIS ALLORO, LLC (hereinafter called "CONTRACTOR").
This Contract shall become effective on the date of the last signatory.
WHEREAS, on 03/19/2024 ("Original Agreement") the CITY and CONTRACTOR entered into an agreement to provide:
The Certificate In Applied Positive Psychology (CAPP) program.
WHEREAS, the parties desire to amend the Original Agreement to:
Broaden the scope of work, increase the amount and extend the term of Agreement.
NOW THEREFORE, the parties agree as follows:
The Original Agreement is amended to include the following:
SECTION 2 - DESCRIPTION OF WORK:
Mental Health & Wellbeing Youth Leadership Summits (four one-day summits):
CONTRACTOR, will facilitate four (4) one-day events of the Mental Health & Wellbeing Youth Leadership Summit focusing on community building, youth engagement, and young people's power to drive positive change and wellbeing in the community; comprising of a two hour Summit Part I workshop, one 90-minute Summit Part II workshop, two 60-minute Summit logistics check follow-up calls, one Summit event (one day x two lead facilitators). Cost: $98,000; comprised of $20,000 per summit and a one-time pre-summit planning workshop $18,000.
Mental Health & Wellbeing Appreciative Inquiry (one two-day summit):
CONTRACTOR will facilitate a Mental Health & Wellbeing Appreciative Inquiry Summit comprising of a two hour Summit Part I workshop, one 90-minute Summit Part II workshop, two 60-minute Summit Logistics Check follow-up calls, one AI Summit delivery event (one day x 2 lead facilitators), AI Summit Report, Post AI Summit Review (90-minute virtual workshop), and AI Summit Coaching (2 x 45- minute virtual calls). Cost: $72,000; comprised of $34,000 two-day summit, $20,000 post summit workshop and $18,000 one-time pre-summit planning workshop.
SECTION 5 - PRICE:
The compensation identified in the Original Agreement is amended to increase the total price of the Agreement by $170,000 for a new total not to exceed amount of $445,000. The additional $170,000 will distributed as follows:
1-3Concord - Document ID: generated after first signature Youth Summits: $18,000 will be paid at the commencement of Pre-Sumit workshop and $20,000 will be at the commencement of each Youth Summit.
AI Summit: $17,900 will be paid at commencement of the Pre-Summit work, $40,000 will be paid at the commencment of the AI Summit, and $13,900 will be paid at the commencement of the Post AI Summit.
The Term of the Agreement is extended to December 30, 2025.
All other terms and conditions of the Original Agreement not amended herein, remain in full force and effect.
In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.
CITY OF PALMDALE:
THE WELLBEING LAB dba LOUIS
ALLORO, LLC:
Ronda Perez
City Manager
Louis Alloro
Director
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38300 Sierra Hwy
Palmdale, CA 93550
ADDRESS FOR NOTICE:
THE WELLBEING LAB dba LOUIS
ALLORO, LLC
412 Middlebury Court
Claremont, CA 91711
APPROVE AS TO FORM:
William P. Curley, III
City Attorney
ATTEST:
Roxanne Faber
City Clerk
2-3Concord - Document ID: generated after first signature
---------------------------------------- INTERNAL USE ONLY ----------------------------------------
□Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) □Original contract and previous amendment(s) (if any) are attached □Attached Agreement Checklist and met all requirements
3-3Concord - Document ID: generated after first signature AGREEMENT NO. A-8696
CONTRACT FOR SERVICES
BETWEEN THE CITY OF PALMDALE AND THE WELLBEING LAB dba LOUIS
ALLORO, LLC
ARPA FUNDING
This CONTRACT for services (“Contract” herein) is made and entered into by and between the City of Palmdale, a public body corporate and politic, (hereinafter called “CITY”), and THE WELLBEING LAB dba LOUIS ALLORO, LLC, a Limited Liability Company, (hereinafter called “CONTRACTOR”). This Contract shall become effective on the date of the last signatory.
RECITALS
WHEREAS, CONTRACTOR represents that CONTRACTOR has the expertise and is qualified to perform the services described in this Contract.
NOW THEREFORE, CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows:
1 CITY PROJECT MANAGER
To provide the services required by this Contract, CONTRACTOR shall act under the authority and approval of City Manager/ Director/designee, who shall oversee this Contract, the work performed by CONTRACTOR, assist CONTRACTOR with any necessary information, audit billings, and approve payments. The CONTRACTOR shall channel all contacts and requests through the City project manager. 2 DESCRIPTION OF WORK
2.1 CONTRACTOR shall provide the following services in a manner satisfactory to CITY:
CONTRACTOR's Scope of Work attached as Exhibit "D"
2.2 CONTRACTOR shall have no claim for compensation for any services or work, which has not been authorized by CITY’s Authorization to Proceed.
2.3 CONTRACTOR shall not accept any change of scope, or change in contract provisions, to this Contract unless issued in writing, as a contract change order or amendment and signed by CITY. Any extensions of time must be mutually agreed upon in writing and executed by both parties.
2.4 CONTRACTOR shall maintain in current status all Federal, State, and local licenses and permits required for the operation of the business conducted by the CONTRACTOR as applicable to this contract.
1-23Concord - Document ID: ODQzMTQ5NjktYm
2.5 All work supplied under this Contract shall be fully guaranteed by CONTRACTOR for a minimum period of zero days from the date of acceptance by CITY. Any defects of design, workmanship, or materials that would result in non- compliance with the Contract specifications shall be fully corrected by CONTRACTOR (including parts and labor) without cost to CITY. The written warranty shall be included with the delivered products to the using Department.
CITY shall provide to CONTRACTOR, without charge, all data, program information, including reports, records, maps, and other information, now in CITY’s possession, which may facilitate the timely performance of the work.
2.6 CONTRACTOR, understands, acknowledges, and agrees that the funding source for its work is from the American Rescue Plan, Coronavirus State and Local Fiscal Recovery Funds (collectively “ARPA”) and as such, CONTRACTOR is required to comply with the regulations associated with ARPA funds pursuant to 31 CFR Part
35. Those regulations and reporting requirements are set forth in Exhibit “A” attached hereto and incorporated herein by reference. By executing this Contract, CONTRACTOR agrees to comply with all such regulations and reporting requirements and shall familiarize itself with those requirements. 3 CONTRACTOR’S KEY PERSONNEL
3.1 Key Staff. CITY reserves the right to review and approve CONTRACTOR’S staff including all subcontractors to be assigned to any project by CONTRACTOR during the term of this Contract.
This Contract has been awarded to CONTRACTOR based partially on the key personnel proposed to perform the services required herein. CONTRACTOR shall not change nor substitute any of these key staff for work on this Contract without prior written approval by CITY.
CONTRACTOR’s Team and Key Personnel are as follows:
Louis Alloro, partner and co-creator shall be the primary contact and lead 50% of this cohort.
Dr. Talma Shultz shall support the project as a coach and facilitator for 35% of this cohort.
Wellbeing Lab team including Dr. Michelle McQuaid shall support the additional 15% of this project.
The office that shall support this project is located at 412 Middlebury Court in Claremont, CA 91711.
2-23Concord - Document ID: ODQzMTQ5NjktYm
This Services Contract has been awarded to CONTRACTOR based on its representation that those personnel and subcontractors submitted as part of its bid and listed above will perform the portions of the work listed above.
CONTRACTOR shall not deviate nor substitute any of these team members without prior written approval by CITY.
3.2 Subcontractors. During the performance of the Agreement, CONTRACTOR may engage such additional SUBCONTRACTORS as may be required for the timely completion of this Agreement. In the event of subcontracting, the sole responsibility for fulfillment of all terms and conditions of this Agreement rests with CONTRACTOR.
CONTRACTOR shall not enter into any Subcontract under this Contract for the performance of this Contract without the advance written approval of CITY. The subcontract shall incorporate by reference the terms and conditions of this Contract.
3.3 Direct Responsibility. All services required under this Contract shall be performed by CONTRACTOR, or under CONTRACTOR’s direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services.
3.3.1 CONTRACTOR shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Contract, and compliance with all reasonable performance standards established by CITY.
3.3.2 CONTRACTOR shall be responsible for payment of all CONTRACTOR’s employees’ and subcontractor’s wages and benefits and shall comply with all requirements pertaining to the employer’s liability, workers’ compensation, unemployment insurance, and Social Security.
3.3.3 CONTRACTOR shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all claims, demands, damages or costs arising from CONTRACTOR’s acts or omissions with respect to any liability, damages, claims, costs and expenses of any nature arising from alleged violations of personnel practices.
4 ACCEPTANCE AND DOCUMENTATION
Each task shall be reviewed and approved by the Contract Project Manager to determine acceptable completion.
4.1 Records. The CONTRACTOR shall retain and shall contractually require each SUBCONTRACTOR to retain all data and other “records” relating to the acquisition and performance of the Contract for a period of five years after the completion of the Contract.
3-23Concord - Document ID: ODQzMTQ5NjktYm
4.2 Property of CITY. All materials, including reports, computer programs and other deliverables, supplied or created under this Contract are the sole property of CITY. CONTRACTOR is not entitled to a patent or copyright on those materials and may not transfer the patent or copyright to anyone else. CONTRACTOR shall not use or release these materials without the prior written consent of CITY.
4.3 Products. All equipment, materials, parts, and other components incorporated in the work or services performed pursuant to this Contract shall be new, or the latest model and of the most suitable grade for the purpose intended. All work shall be performed in a skilled and workmanlike manner.
5 PRICE
CITY shall pay to CONTRACTOR an amount not to exceed TWO HUNDRED SEVENTY-FIVE THOUSAND dollars ($275000) for the completion of all the work and services described in Section 2, which sum shall include all costs or expenses incurred by CONTRACTOR, payable as follows:
CONTRACTOR shall charge an amount not to exceed $5,500.00 for each participant who attends the contract program. With a minimum of at least 30 participants, payment will be guaranteed, with an aggregated maximum of 50 participants.
The first payment on the contract shall be 30% of the not-to-exceed amount of $275,000; the balance of payments will be distributed evenly monthly and will be based on the total number of registered participants who attend the first day of class and complete the program.
CONTRACTOR shall provide all printed materials for all class sessions.
5.1 An application for payment form must be submitted to CITY which shall include the following: a clear, detailed invoice reflecting work being billed for, a summary sheet showing percentage of work completed to date, amount/percent billed to date and current status of all tasks within a project; any/all backup documentation supporting the above items. Work schedule updates must also be included with the payment requests.
5.2 CONTRACTOR shall maintain adequate records and shall permit inspection and audit by CITY of CONTRACTOR’s charges under this Contract.
CONTRACTOR shall make such records available to CITY during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records, and they will be available only to CITY and any specified public agencies.
Such records shall be maintained by CONTRACTOR for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONTRACTOR shall retain its records for the time required by such laws.
4-23Concord - Document ID: ODQzMTQ5NjktYm
5.3 Payment. A separate invoice shall be issued for each shipment of material or service performed, and no payment will be issued prior to receipt of material and/or completion of specified services and receipt of a correct invoice. 6 COMMENCEMENT AND COMPLETION OF WORK
6.1 The execution of this Contract by the parties does not constitute an authorization to proceed. The services of CONTRACTOR shall commence when CITY, acting by and through its Project Manager, has issued an Authorization to Proceed. CONTRACTOR shall complete all the work described in Section 1 and be ready for final acceptance of the work within TEN (10) WORKING days following CONTRACTOR’s receipt of Authorization to Proceed.
6.2 Time is of the essence. All of the time limits for Milestones, if any, and for completion of the work, are of the essence of this Contract.
6.3 Failure of CONTRACTOR to perform any covenant or condition contained herein within the time periods specified therein shall constitute a material breach of this Contract, entitling CITY to terminate this Contract, unless CONTRACTOR applies for and receives an extension of time in accordance with the procedures set forth herein.
7 TAXES
7.1 CONTRACTOR shall pay all sales, consumer, use, and other similar taxes required to be paid by CONTRACTOR in accordance with state and local laws.
7.2 CONTRACTOR is an independent contractor and shall have no power or authority to incur any debt, obligation, or liability on behalf of CITY. No person employed by CONTRACTOR or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.
7.3 CONTRACTOR shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.
7.4 When equipment, materials or supplies generally taxable to CONTRACTOR are eligible for a tax exemption due to the nature of the work, CONTRACTOR shall assist the City in applying for and obtaining such tax credits and exemptions, which shall be paid or credited to the City. 8 PATENT FEES AND ROYALTIES
CONTRACTOR shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, program, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, program, product or device is specified in the contract documents for use in the performance of 5-23Concord - Document ID: ODQzMTQ5NjktYm
the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents.
CONTRACTOR shall indemnify and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, program, product or device not specified in the contract documents, and shall defend all such claims in connection with any alleged infringement of such rights. 9 INDEMNIFICATION
To the fullest extent permitted by law, CONTRACTOR and any subcontractors working on its behalf agree to indemnify CITY, its officers, employees, agents and elected and appointed boards (hereinafter “Indemnified Parties”) for any loss, claim, demand, cause of action, cost, expense, damage, obligation or liability which arises out of or is in any way connected with the performance of any work under this agreement, including any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONTRACTOR, or its subcontractors, and regardless of any acts, omissions or negligence (whether active or passive) of any person or entity indemnified hereunder. At their own expense, CONTRACTOR and, as applicable, any subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONTRACTOR shall ensure that the contract of any subcontractor working under this agreement contain an indemnity agreement, requiring the subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONTRACTOR shall indemnify the Indemnified Parties, and save it harmless from any and all loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
10 INSURANCE
10.1 CONTRACTOR, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California.
Proof of Insurance, as identified in Section 10.8, must be reviewed and accepted by the City Attorney.
10.1.1 Workers’ Compensation and Employer’s Liability
Workers’ Compensation -- coverage as required by the State of California
Employer’s Liability --
6-23Concord - Document ID: ODQzMTQ5NjktYm
$1,000,000.00 each accident
$1,000,000.00 policy limit bodily injury
$1,000,000.00 each employee bodily injury by disease
10.1.2 Commercial General Liability
$1,000,000.00 limit on a per occurrence basis
$2,000,000.00 general aggregate limit
10.1.3 Commercial Automobile Liability
$1,000,000.00 combined single limit including owned, non-owned and hired automobile coverage
10.2 All of CONTRACTOR’s policies shall contain an endorsement providing that written notice shall be given to CITY at least thirty (30) calendar days prior to termination, cancellation, or reduction of coverage in the policy.
10.3 Policies providing for bodily injury and property damage coverage shall contain the following:
A. An endorsement extending coverage to the City as an additional insured, as respects liability arising out of the performance of any work under the Contract.
Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The certificates shall state: “The City of Palmdale, Successor Agency to the Community Redevelopment Agency of the City of Palmdale, Palmdale Civic Authority, Housing Authority, Industrial Development Authority, Airport Authority, their officers, agents, employees and volunteers are named as additional insured”.
B. “Severability of Interest” Clause.
10.4 Promptly upon execution of this Contract, and prior to commencement of any work, CONTRACTOR shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONTRACTOR has the required coverage and showing the required named insured. Within five (5) days of written request from CITY, CONTRACTOR shall deliver to CITY full and complete copies of all insurance policies required by this Contract.
10.5 The requirements as to the types and limits of insurance to be maintained by CONTRACTOR are not intended to and shall not in any manner limit or qualify CONTRACTOR’s liabilities and obligations under this Contract.
10.6 Any policy or policies of insurance that CONTRACTOR elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.
7-23Concord - Document ID: ODQzMTQ5NjktYm
10.7 All insurance coverage must be maintained throughout the duration of this Contract.
10.8 Acceptable Proof of Insurance:
10.8.1 ACORD Certificate of Insurance listing all coverage, limits, deductibles and insured; and endorsements for all applicable coverage if agent has authority to issue it; or additional insured Form CG20100704 and CG20370704 or equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage.
10.8.2 Binders of insurance for all coverage. Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements and a corresponding Certificate of Insurance listing all insurers and coverage must be submitted to the City Attorney.
10.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time CONTRACTOR fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.
10.10 CONTRACTOR shall require any and all subcontractor's working on its behalf to provide insurance coverages and limits that are based on the scope of work and nature of risk being performed by the subcontractor. Any and all subcontractors working on behalf of CONTRACTOR shall be subject to all other insurance requirements that are stated herein.
Any deviation in this requirement will be CONTRACTOR's sole risk. CONTRACTOR's insurance requirements in Section 10 will not be impacted and/or limited by such deviation.
11 TERMINATION WITHOUT CAUSE
City reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, CONTRACTOR shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and subcontractors to cease such work. CONTRACTOR shall also surrender to CITY all finished or unfinished documents, processes, programs and other supplies and materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the CONTRACTOR shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
12 TERMINATION FOR CAUSE
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If CITY determines that CONTRACTOR has failed to supply an adequate working force, or to provide services of proper quality, or has failed in any other respect to satisfactorily perform the services specified in this Contract, CITY shall give written notice to CONTRACTOR specifying all defaults to be remedied within thirty (30) days.
Such notice shall set forth the basis for CITY’s dissatisfaction and suggest corrective measures. If, after thirty days, CONTRACTOR has failed to implement appropriate corrective measures, CITY may elect to terminate this Contract in whole or in part.
12.1 In the event CITY terminates this Contract, in whole or in part, for cause, CITY may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.
12.2 CONTRACTOR shall provide all finished or unfinished documents, data, studies, software, drawings, programs, processes, maps, photographs, reports, etc., prepared by CONTRACTOR within fifteen (15) working days after notice of termination. Upon such termination, CONTRACTOR shall be paid an amount equal to the value of the services provided and work performed as of the date of termination, taking into consideration the costs associated with hiring another CONTRACTOR to complete the services. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete documents when such are delivered to CITY, and to authorized reimbursement expenses. The above is in addition to any other remedies available by law or equity to CITY.
12.3 If, after notice of termination of the Contract under the provisions of this Section 12, it is determined, for any reason, that CONTRACTOR was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 11. 13 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and CONTRACTOR arising out of or relating to this Contract or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 14 OWNERSHIP OF PRODUCT
All product, data, documents, programs and software including, but not limited to, research, field notes, investigations, analysis, studies, processes, software, instructions for use and other manuals, whether complete or incomplete, which are prepared or produced in the performance of this Contract are to be, and remain the property of CITY and shall be delivered to or left with CITY upon the completion or termination of this Agreement. CONTRACTOR shall furnish CITY, upon its request, originals and reproducible and electronic copies of product, data reports, studies and of all other documents listed above. Electronic copies shall be provided in an 9-23Concord - Document ID: ODQzMTQ5NjktYm
unprotected format which allows CITY to copy, reproduce and makes changes as CITY deems necessary.
15 DELEGATION AND ASSIGNMENT
15.1 CONTRACTOR shall not delegate or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY; provided, however, that claims for money due or to become due to CONTRACTOR from CITY under this Contract may be assigned to a bank, trust company or other financial institution without such approval.
15.2 Any assignment, delegation or subcontract shall be made in the name of CONTRACTOR and shall not bind or purport to bind CITY and shall not release CONTRACTOR from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONTRACTOR under this Contract.
16 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY
16.1 In performance of this Contract, CONTRACTOR shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status.
CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status . Affirmative action relating to employment shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
16.2 The provisions of subsection 16.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONTRACTOR for personnel to perform any services under this Contract. CITY shall have access to all documents, data and records of CONTRACTOR and its subcontractors for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order No. 11246 is available for inspection at, and on file with, the Palmdale City Clerk’s Office. 10-23Concord - Document ID: ODQzMTQ5NjktYm
17 FINANCIAL INTEREST CERTIFICATION
17.1 CONTRACTOR warrants that no person has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee; and that no officer or employee of the CITY has any interest, financially or otherwise, in CONTRACTOR’s firm.
17.2 For breach or violation of this warranty, CITY shall have the right to annul this Contract without liability or at its discretion to deduct from the Contract Price or consideration, the full amount of such commission, percentage, brokerage or contingent fee.
18 CONFLICT OF INTEREST
18.1 CONTRACTOR stipulates that its officers and employees do not now have a conflict of interest and it further agrees for itself, its officers and its employees that it will not contract for or accept employment for the performance of any work or services with any individual business, corporation or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Contract or which would cause CONTRACTOR to be “financial interested” (as provided in California Government Code Section 1090 et seq. or 87100 et seq.) in any contract or decision made by CITY on any matter.
18.2 CONTRACTOR shall not employ any City official or employee to perform any work required pursuant to this Contract.
18.3 To the extent required by the City Manager or his designee, CONTRACTOR shall complete and file with the City Clerk a Form 700 Statement of Economic Interests disclosing any reportable property interests, income, gifts, investments, or business positions.
19 COMPLIANCE WITH LAW
19.1 CONTRACTOR shall comply with all state and federal laws, including but not limited to, the requirement to hire only those persons authorized by federal law to work in the United States. If CONTRACTOR uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by CONTRACTOR.
19.2 The law of the state of California shall govern this Contract. The venue of any legal action, either formal or informal, shall be the County of Los Angeles.
19.3 If applicable, CONTRACTOR acknowledges and understands it must comply with the prevailing wage requirements as set forth in Exhibit “B” attached hereto and incorporated herein by reference, as well as the execution of a Worker’s Compensation Certificate attached hereto as Exhibit “C” and incorporated herein by reference.
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20 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
21 ENTIRE AGREEMENT AND AMENDMENTS
21.1 This Contract is the complete Agreement between the parties and supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally.
21.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by CONTRACTOR hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.
21.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract.
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22 ATTORNEY’S FEES
If any action at law or in equity is brought to enforce or interpret any provisions of this Contract, the prevailing party in such action shall be entitled to reasonable attorney’s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.
In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.
CITY OF PALMDALE: THE WELLBEING LAB dba LOUIS
ALLORO, LLC:
Ronda Perez
City Manager
Louis Alloro
Director
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38300 Sierra Highway, Suite A
Palmdale, CA 93550
ADDRESS FOR NOTICE:
THE WELLBEING LAB dba LOUIS
ALLORO, LLC
412 Middlebury Court
Claremont, CA 91711
APPROVE AS TO FORM:
William P. Curley, III
City Attorney
ATTEST:
Roxanne Faber
Acting City Clerk
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EXHIBIT “A”
ARPA REQUIREMENTS
RECITAL:
On March 11, 2021, the American Rescue Plan Act (“ARP Act”) was signed into law.
The ARP Act was intended to provide increased aid to individuals, families, businesses, and governments affected by the COVID-19 pandemic. The ARP Act established and funded the Coronavirus State and Local Fiscal Recovery Funds (the “CSLFRF”), which included two hundred forty (240) billion dollars for state, territorial, local, and Tribal governments that are being used to fight the pandemic and accelerate local economic recovery.
MANDATORY CONTRACT PROVISIONS FOR ARP ACT EXPENDITURES:
Procurement processes for expenditures using American Rescue Plan Act (ARPA) funds generally follow state and local rules. In most cases, city procurement policies will satisfy the federal requirements. One notable difference is that federal procurement regulations mandate specific contract provisions in certain circumstances. There are no requirements for contracts or expenditures of less than $10,000. However, using ARPA funds for contracts in excess of $10,000 triggers the mandatory contract provisions in 2 CFR Part 200, Appendix II.
Most contract provisions are required only on those exceeding $100,000 or those for construction projects of any amount. However, mandatory contract provisions will apply if a city obligates ARPA funds to a contract that exceeds $100,000.
For ease of administration, below is an explanation of the mandatory contract provisions and model language necessary for compliance with federal law disclosures.
2 C.F.R. PART 200: APPENDIX II, CONTRACT PROVISIONS
•For contracts over $10,000, cities must include a provision that addresses termination for cause and convenience by the local government, including the process for termination and the basis for settlement.
•For contracts over $100,000, cities must include a provision that addresses administrative, contractual, or legal remedies if a contractor violates or breaches the contract, including sanctions and penalties for the breach. •In accepting the ARPA award, local governments agreed to include an EEO statement in any federally assisted construction contract defined in 41 CFR Part 60-1.3. A federally assisted construction contract is defined as follows:
oAny agreement or modification thereof between any applicant and a person for construction work which is paid for in whole or in part with funds obtained from the government or borrowed on the credit of the government pursuant to any federal program involving a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any federal program involving such grant, contract, loan, insurance, or guarantee, or any application or modification thereof approved by the government 14-23Concord - Document ID: ODQzMTQ5NjktYm
for a grant, contract, loan, insurance, or guarantee under which the applicant itself participates in the construction work.
EQUAL EMPLOYMENT OPPORTUNITY:
During the performance of this contract, the contractor agrees as follows:
(1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The contractor will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin.
Such action shall include, but not be limited to the following:
1.Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.
2.The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.
3.The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information.
4.The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding a notice to be provided advising the said labor union or workers' representatives of the contractor's commitments under this section and shall post copies of the notice in conspicuous places available to employees and applicants for employment.
5.The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
6.The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary 15-23Concord - Document ID: ODQzMTQ5NjktYm
of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
7.In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part, and the contractor may be declared ineligible for further government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.
8.The contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs (1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance:
Provided, however, that in the event a contractor becomes involved in or is threatened with litigation with a subcontractor or vendor as a result of such direction by the administering agency, the contractor may request the United States to enter into such litigation to protect the interests of the United States.
Contracts that are in excess of $100,000 and involve the employment of mechanics or laborers must include provisions requiring compliance with the Contract Work Hours and Safety Standards Act as follows:
(1) Overtime requirements: No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such a workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such a workweek.
(2) Violation: liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (1) of this section, the contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory) for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (1) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (1) of this section. 16-23Concord - Document ID: ODQzMTQ5NjktYm
(3) Withholding for unpaid wages and liquidated damages. The City of Palmdale shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (2) of this section.
(4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (1) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower-tier subcontracts.
The prime contractor shall be responsible for compliance by any subcontractor or lower-tier subcontractor with the clauses set forth in paragraphs (1) through (4) of this section.
Contracts and subgrants in excess of $150,000 must contain a provision that requires the non-federal award to agree to comply with all applicable standards, orders, or regulations of the Clean Air Act and Federal Water Pollution Control Act.
CLEAN AIR ACT
(1) The contractor agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.
(2) The contractor agrees to report each violation to the City of Palmdale and understands and agrees that the City of Palmdale will, in turn, report each violation as required to assure notification to the Treasury Department and the appropriate Environmental Protection Agency Regional Office.
(3) The contractor agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with American Rescue Plan Act funding.
FEDERAL WATER POLLUTION CONTROL ACT
(1) The contractor agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq.
(2) The contractor agrees to report each violation to the City of Palmdale and understands and agrees that the City of Palmdale will, in turn, report each violation as required to assure notification to the Treasury Department and the appropriate Environmental Protection Agency Regional Office.
(3) The contractor agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with American Rescue Plan Act funds.
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Federal Water Pollution Control Act
(1) The contractor agrees to comply with all applicable standards, orders, or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq.
(2) The contractor agrees to report each violation to the City of Palmdale and understands and agrees that the City of Palmdale will, in turn, report each violation as required to assure notification to the Treasury Department and the appropriate Environmental Protection Agency regional office.
(3) The contractor agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with American Rescue Plan Act funds.
Cities cannot award a contract to parties listed on the governmentwide exclusions in the System for Award Management (SAM) listed at www.sam.gov.
Byrd Anti-Lobbying Amendment, 31 U.S.C. § 1352: Contractors that apply for a bid or award exceeding $100,000 must file the required certification that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency. Cities should include the Byrd Anti-Lobbying contract clause is as follows:
Contractors who apply or bid for an award of $100,000 or more shall file the required certification. Each tier certifies to the tier above that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier, up to the recipient.
TITLE VI OF THE CIVIL RIGHTS ACT OF 1964
In addition to other provisions required by the Federal agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable.
1. Recipient ensures its current and future compliance with Title VI of the Civil Rights Act of 1964, as amended, which prohibits exclusion from participation, denial of the benefits of, or subjection to discrimination under programs and activities receiving federal financial assistance, of any person in the United States on the ground of race, color, or national origin (42 U.S.C. § 2000d et seq.), as implemented by the Department of the Treasury Title VI regulations at 31 CFR Part 22 and other pertinent executive orders such as Executive Order 13166, directives, circulars, policies, memoranda, and/or guidance documents.
2. Recipient acknowledges that Executive Order 13166, “Improving Access to Services for Persons with Limited English Proficiency,” seeks to improve access to 18-23Concord - Document ID: ODQzMTQ5NjktYm
federally assisted programs and activities for individuals who, because of national origin, have Limited English proficiency (LEP). Recipient understands that denying a person access to its programs, services, and activities because of LEP is a form of national origin discrimination prohibited under Title VI of the Civil Rights Act of 1964 and the Department of the Treasury’s implementing regulations. Accordingly, Recipient shall initiate reasonable steps, or comply with the Department of the Treasury’s directives, to ensure that LEP persons have meaningful access to its programs, services, and activities. Recipient understands and agrees that meaningful access may entail providing language assistance services, including oral interpretation and written translation where necessary, to ensure effective communication in the Recipient’s programs, services, and activities.
3. Recipient agrees to consider the need for language services for LEP persons when Recipient develops applicable budgets and conducts programs, services, and activities. As a resource, the Department of the Treasury has published its LEP guidance at 70 FR 6067. For more information on taking reasonable steps to provide meaningful access for LEP persons, please visit http://www.lep.gov.
4. Recipient acknowledges and agrees that compliance with the assurances constitutes a condition of continued receipt of federal financial assistance and is binding upon Recipient and Recipient’s successors, transferees, and assignees for the period in which such assistance is provided.
5. Recipient acknowledges and agrees that it must require any sub-grantees, contractors, subcontractors, successors, transferees, and assignees to comply with assurances 1-4 above, and agrees to incorporate the following language in every contract or agreement subject to Title VI and its regulations between the Recipient and the Recipient’s sub-grantees, contractors, subcontractors, successors, transferees, and assignees:
The sub-grantee, contractor, subcontractor, successor, transferee, and assignee shall comply with Title VI of the Civil Rights Act of 1964, which prohibits recipients of federal financial assistance from excluding from a program or activity, denying benefits of, or otherwise discriminating against a person on the basis of race, color, or national origin (42 U.S.C. § 2000d et seq.), as implemented by the Department of the Treasury’s Title VI regulations, 31 CFR Part 22, which are herein incorporated by reference and made a part of this contract (or agreement). Title VI also includes protection to persons with “Limited English Proficiency” in any program or activity receiving federal financial assistance, 42 U.S.C. § 2000d et seq., as implemented by the Department of the Treasury’s Title VI regulations, 31 CFR Part 22, and herein incorporated by reference and made a part of this contract or agreement.
6. Recipient understands and agrees that if any real property or structure is provided or improved with the aid of federal financial assistance by the Department of the Treasury, this assurance obligates the Recipient, or in the case of a subsequent transfer, the transferee, for the period during which the real property or structure is 19-23Concord - Document ID: ODQzMTQ5NjktYm
used for a purpose for which the federal financial assistance is extended or for another purpose involving the provision of similar services or benefits. If any personal property is provided, this assurance obligates the Recipient for the period during which it retains ownership or possession of the property.
7. Recipient shall cooperate in any enforcement or compliance review activities by the Department of the Treasury of the aforementioned obligations. Enforcement may include investigation, arbitration, mediation, litigation, and monitoring of any settlement agreements that may result from these actions. The Recipient shall comply with information requests, on-site compliance reviews and reporting requirements.
8. Recipient shall maintain a complaint log and inform the Department of the Treasury of any complaints of discrimination on the grounds of race, color, or national origin, and limited English proficiency covered by Title VI of the Civil Rights Act of 1964 and implementing regulations and provide, upon request, a list of all such reviews or proceedings based on the complaint, pending or completed, including outcome. Recipient also must inform the Department of the Treasury if Recipient has received no complaints under Title VI.
9. Recipient must provide documentation of an administrative agency's or court's findings of non-compliance of Title VI and efforts to address the non-compliance, including any voluntary compliance or other agreements between the Recipient and the administrative agency that made the finding. If the Recipient settles a case or matter alleging such discrimination, the Recipient must provide documentation of the settlement. If Recipient has not been the subject of any court or administrative agency finding of discrimination, please so state.
10. If the Recipient makes sub-awards to other agencies or other entities, the Recipient is responsible for ensuring that sub-recipients also comply with Title VI and other applicable authorities covered in this document State agencies that make sub- awards must have in place standard grant assurances and review procedures to demonstrate that that they are effectively monitoring the civil rights compliance of subrecipients.
The United States of America has the right to seek judicial enforcement of the terms of this assurances document and nothing in this document alters or limits the federal enforcement measures that the United States may take in order to address violations of this document or applicable federal law.
Under penalty of perjury, the undersigned official(s) certifies that official(s) has read and understood the Recipient's obligations as herein described, that any information submitted in conjunction with this assurances document is accurate and complete, and that the Recipient is in compliance with the aforementioned nondiscrimination requirements.
ARPA Regulations, 31 CFR Part 35 (“Regulations”) are incorporated herein and made a part of this Contract.
CONTRACTOR agrees to be bound by the reporting requirements set out in the Regulations. This includes submitting quarterly reports by the 15th of the month 20-23Concord - Document ID: ODQzMTQ5NjktYm
following the end of each quarter to the Director of Finance. The reports must include, but is not limited to, the use of the funds, documentation/receipts of the funds spent, description of the project and status of completion of the project. The Director of Finance may require additional information of CONTRACTOR for compliance with ARPA Regulations.
CONTRACTOR, in the performance of this Contract and as a sub-recipient of ARPA funds, as well as all of its subcontractors, must comply with the following:
1. CONTRACTOR, and any and all of its subcontractors, must ensure that they do not deny benefits, services or otherwise discriminate on the basis of race, color, national origin (including limited English proficiency), disability, age, or sex (including sexual orientation and gender identity) in accordance with Title VI of the Civil Rights Act of 1964, Public Law 88-352, 42 U.S.C. 2000d-1 et seq., and the Department's implementing regulations, 31 CFR part 22; Section 504 of the Rehabilitation Act of 1973 (Section 504), Public Law 93-112, as amended by Public Law 93-516, 29 U.S.C. 794; Title IX of the Education Amendments of 1972 (Title IX), 20 U.S.C. 1681 et seq., and the Department's implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public Law 94-135, 42 U.S.C. 6101 et seq., and the Department implementing regulations at 31 CFR part 23. CONTRACTOR will be required to submit data showing compliance with the above.
2. Universal Identifier and System for Award Management (SAM), 2 C.F.R. Part 25, pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 25 is hereby incorporated by reference.
3. Reporting Subaward and Executive Compensation Information, 2 C.F.R. Part 170, pursuant to which the award term set forth in Appendix A to 2 C.F.R. Part 170 is hereby incorporated by reference.
4. OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement), 2 C.F.R. Part 180, including the requirement to include a term or condition in all lower-tier covered transactions. (2 C.F.R. Part 180, subpart B) and that the award is subject to 2 C.F.R. Part 180 and Treasury's implementing regulation at 31 C.F.R. Part 19.
5. The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards found at 2 CFR Part 200 Appendix II.
6. Recipient Integrity and Performance Matters, pursuant to which the award term set forth in 2 C.F.R. Part 200, Appendix XII to Part 200 is hereby incorporated by reference.
7. Governmentwide Requirements for Drug-Free Workplace, 31 C.F.R. Part 20.
8. New Restrictions on Lobbying, 31 C.F.R. Part 21
9. Uniform Relocation Assistance and Real Property Acquisitions Act of 1970 (42 U.S.C. §§ 4601-4655) and implementing regulations.
10. Section 2 CFR 200.323 regarding Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act (EPA guidelines at 40 CFR Part 247).
11. Section 200.322 of 2 CFR 200.322, Domestic preferences for procurements.
12. Generally applicable federal environmental laws and regulations.
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---------------------------------------- INTERNAL USE ONLY ----------------------------------------
■Certificate(s) and Endorsement(s) attached
■Confirmed business name on contract with certificate(s) ■Attached Agreement Checklist and met all requirements
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Record of Signing
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City Council Staff Report
DATE: SEPTEMBER 18, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: OPERATIONS DEPARTMENT
FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2024 -078, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE TO TRANSFER
UNCLAIMED CHECKS FROM THEIR RESPECTIVE FUNDS TO THE
GENERAL FUND PURSUANT TO CALIFORNIA GOVERNMENT
CODE SECTION 50050-50057
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. CC 2024 -078, a Resolution of the City Council of the City of Palmdale to transfer unclaimed checks from their respective funds to the general fund pursuant to California Government Code Section 50050-50057
BACKGROUND
Section No. 50050 -50057 of the California Government Code states that “Except as otherwise provided by law, money, excluding restitution to victims, that is not the property of a local agency that remains unclaimed in its treasury or in the official custody of its officers for three years is the property of the local agency after notice if not claimed or if no verified complaint is filed and served. At any time after the expiration of the three- year period, the treasurer of the local agency may cause a notice to be published once a week for two successive weeks in a newspaper of general circulation published in the local agency. At the expiration of the three -year period, money representing restitution collected on behalf of victims shall be deposited into the Restitution Fund or used by the local agency for purposes of victim services
DISCUSSION
The City Treasurer desires to follow the guidelines set by California Government Code Section 50053. Section No. 50053 of the California Government Code states “When any such money becomes the property of a local agency and is in a special fund, the Report to Mayor and City Council
Re: Adopt Resolution No. CC 2024-078
September 18, 2024
legislative body may transfer it to the general fund.” The total combined number of unclaimed checks before the three-year period ending June 30, 2024, is $16,566.79.
FISCAL IMPACT
$16,566.79; The total combined number of unclaimed checks before the three-year period ending June 30, 2024, is $16,566.79. This is the maximum amount that can be transferred to the General Fund
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
B. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
C. Involve and expand engagement to enhance public oversight and transparency.
Prepared by: Janelle Samson, Director of Operations
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, City Attorney
ATTACHMENTS
Reso No. CC 2024-078
Public Notice - List of Unclaimed Checks.
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-078
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
TO TRANSFER UNCLAIMED CHECKS FROM THEIR RESPECTIVE
FUNDS TO THE GENERAL FUND PURSUANT TO CALIFORNIA
GOVERNMENT CODE SECTION 50050-50057.
WHEREAS, the attached list of checks has been outstanding and unclaimed in Special Funds for more than three years.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. In accordance with California Government Code Section 50050- 50057, the unclaimed checks on the attached list in the total amount of $16,566.79, shall be transferred from the respective funds to the General Fund’s cash account.
SECTION 2. The City Clerk shall certify to the adoption of this resolution.
Resolution No. CC 2024-078
PASSED, APPROVED and ADOPTED this 18th day of September 2024. _________________________________
APPROVED AS TO FORM: Austin Bishop, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley Rochelle Scott, City Clerk
City Attorney
I, Rochelle Scott, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 18th day of September 2024 by the following roll call vote:
AYES: ___________________________________________________________ NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date: ___________________________ _____________________________ Rochelle Scott, City Clerk
CITY OF PALMDALE
38300 N. Sierra Highway
Palmdale, CA 93550
Notice is hereby given that the City of Palmdale is holding funds for the following persons. If said funds are not claimed by September 16, 2024, forty-five (45) days hence, these funds will become the property of the City of Palmdale in accordance with California Government Code Section 50050-52.
The said funds may be released to the depositor, their heir, beneficiary, or duly appointed representative provided a claim form has been completed with the necessary information. The information needed is as follows:
• Name, address, telephone number, and social security number (or FEIN).
• Amount of claim.
• Proof of identity such as a copy of a driver’s license, social security card, or birth certificate.
• Grounds on which claim is founded.
The Unclaimed Money Claim Form is available at the City of Palmdale Finance Division, located at 38250 Sierra Hwy, 2
nd floor, Palmdale, California.
Persons with funds on deposit for over three (3) years are:
NAME AMOUNT FUND
LUDIN & ONELIA GARCIA $ 200.00 GENERAL
MONTE DE SION $ 2,150.00 GENERAL
VETS 4 VETERANS $ 1,000.00 GENERAL
PERCEPTIVE ENTERPRISES, INC. $ 840.00 GENERAL U.S. BANK $ 337.49 GENERAL
XOME FIELD SERVICES LLC $ 30.00 GENERAL
GREGG P HARTNESS & HEIDI
HARTNESS $ 145.00 GENERAL
PALMDALE WATER $ 200.02 GENERAL
SPARKLETTS $ 828.10 GENERAL
XOME FIELD SERVICES LLC $ 10.00 GENERAL
BRITTANY WYRE $ 318.60 GENERAL
UNION PACIFIC RAILROAD COMPANY $ 1,056.90 GENERAL CORPORATE PAYMENT SYSTEMS $ 398.55 GENERAL
ADAMSKI MOROSKI MADDEN
CUMBERLAND & GREEP, LLP $ 148.65 GENERAL
HCD $ 50.00 GENERAL
XOME FIELD SERVICES LLC $ 10.00 GENERAL
AC MASTERS, INC $ 196.77 GENERAL
CORPORATE PAYMENT SYSTEMS $ 2,024.53 GENERAL
FRANCHISE TAX BOARD $ 3,850.00 GENERAL
MARAVILLA FOUNDATION $ 23.04 GENERAL
ALCALA, MARISSA $ 23.67 PAYROLL
PONCE, REBECCA $ 23.67 PAYROLL
WILLIAMS, JELANI $ 23.67 PAYROLL
MARTINEZ, CINDY $ 390.60 PAYROLL
WILLIAMS, TATIANA $ 42.61 PAYROLL
CIECHANOWSKI, LANCE $ 253.79 PAYROLL
BRAVO ESPINOZA, CARLOS $ 457.37 PAYROLL
CANCINO RUIZ, ANGELICA $ 457.37 PAYROLL
CHIRINO, DANIEL $ 1.77 PAYROLL
DUFFIN, VICTORIA $ 39.63 PAYROLL
GUZMAN, PEDRO $ 427.46 PAYROLL
ZAMBRANO CRUZ, ALYZZA $ 35.05 PAYROLL
BARRY, RYAN $ 21.30 PAYROLL
LEON, LEONEL $ 7.32 PAYROLL
WELTON, ALYSSA $ 8.05 PAYROLL
BARRON, JOEL $ 25.49 PAYROLL
MOERBE, BRIANNA $ 25.49 PAYROLL
MORALES, JACOB $ 25.49 PAYROLL
MORALES, JORDAN $ 25.49 PAYROLL
NICHOLS, ASHLEY $ 25.49 PAYROLL
GRULKOWSKI, KAITLYN $ 14.20 PAYROLL
BARRY, RYAN $ 284.08 PAYROLL
CARAM, CHRISTOPHER $ 39.06 PAYROLL
GRULKOWSKI, KAITLYN $ 28.41 PAYROLL
WILLIAMSON, TANNER $ 42.61 PAYROLL
City Council Staff Report
DATE: SEPTEMBER 18, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: OPERATIONS DEPARTMENT
INFORMATION TECHNOLOGY DIVISION
DISTRICT: ALL
SUBJECT: APPROVE AGREEMENT WITH IMPEX TECHNOLOGIES, INC. TO
PROVIDE DATA BACKUP SOLUTION HARDWARE,
CONFIGURATION SERVICES, AND SOFTWARE SUPPORT IN THE
AMOUNT OF $159,326 FOR A TERM OF 5 YEARS.
RECOMMENDATION
Approve agreement with IMPEX Technologies, Inc. To provide data backup solution hardware, configuration services, and software support in the amount of $159,326.
Staff recommends that the City Council:
1. Approve Agreement No. A-8997 with IMPEX Technologies, Inc. in the amount of $159,326.
2. Authorize the City Manager or her designee to execute the Agreement No. A- 8997 with IMPEX Technologies, Inc ., including minimal and/or non -substantial changes.
BACKGROUND
The City purchased the current backup solution in 2017 for approximately $250,000; the system retains the backups for department shares, databases, and applications hosted locally in the City’s data center. Some critical workloads secured by the on -premises backup solution include but are not limited to, all of the department shares useddaily by staff, the City Clerk’s records management system, and Maintenance’s work order management system. The typical lifespan of a server -based system is approximately five years, which the current solution has already exceeded. Implementing the new system would upgrade this critical system with new and supported hardware to continue providing resiliency to the City’s data.
Report to Mayor and City Council
Re: Approve Agreement with IMPEX Technologies, Inc.
September 18, 2024
DISCUSSION
The City has issued an RFQ (Request for Quote) for a replacement data backup solution.
Five vendors have provided quotes, and the City has selected Impex Technologies, Inc. as the preferred solution. Hardware, configuration services, and support for this agreement are being procured through Carahsoft Technology Corporation Cooperative Contract Number: AR2472. By utilizing this Cooperative Agreement, the City is able to benefit from cooperative pricing.
FISCAL IMPACT
$159,326; Funds are budgeted and available in FY 2024-25 in account 15316001- 774400.
SCOPE OF WORK COST
Hardware $27,632.40
5-Year Software License Prepaid $103,553.10
5-Year Premium Support Prepaid $19,425.88
Deployment and Professional Services $5,882.35
Tax $2,832.32
Total Cost: $159,326.05
Account Number Starting Balance Remaining Balance
15316001-774400 $250,000.00 $90,673.95
STRATEGIC PLAN
Goal III: Ensure long-term fiscal health of the City and maintain funding for services.
A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
Prepared by: Janelle Samson, Director of Operations
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, City Attorney
ATTACHMENTS
Agrmt No. A-8997 with IMPEX Technologies, Inc.
A-8997
CARAHSOFT TECHNOLOGY CORPORATION COOPERATIVE AGREEMENT
AR2472 - A-8997BETWEEN
THE CITY OF PALMDALE AND IMPEX TECHNOLOGIES, INC
The City of Palmdale has agreed to the terms and conditions of the above-stated contract with IMPEX TECHNOLOGIES, INC (herinafter called "CONTRACTOR).
The parties agree to the use of Cooperative Contract AR2472 - A-8997.
The city shall pay the CONTRACTOR an amount not to exceed one hundred fifty- nine thousand three hundred twenty-seven dollars ($159327) for the completion of all the work and services, which sum shall include all costs or expenses incurred by CONTRACTOR, payable as follows:
The total contract amount is to be paid in a single upfront payment.
The insurance requirements are outlined below:
1. General Liability (GL):
Coverage Amount: $2,000,000 million per occurrence / $4,000,000 million aggregate.
2. Workers’ Compensation and Employer’s Liability:
Coverage Amount: As required by state law.
3. Automobile Liability:
Coverage Amount: $1,000,000 million per occurrence.
4. Professional Liability / Errors and Omissions (E&O):
Coverage Amount: $2,000,000 million per occurrence / $2,000,000 million aggregate.
5. Cyber Liability:
Coverage Amount: $5,000,000 million.
The term of this Contract is five (5) years, commencing on the effective date, with CITY reserving the option to extend the agreement for N/A additional terms of one year each.
Specify what services will be provided:
The services provided will include both hardware and software solutions to facilitate the backup of the City's applications and data. For a detailed description of the requirements and scope of work, please refer to Attachment No. 4. 1-2Concord - Document ID: 02xbgqVEA97NbsCxNcHgRH
CITY OF PALMDALE: IMPEX TECHNOLOGIES, INC
Ronda Perez
City Manager
38300 Sierra Highway
CITY OF PALMDALE
Palmdale, CA 93550
ADDRESS FOR NOTICE:
Rajiv Shah, President
880 Apollo Street, Suite 315
El Segundo, CA 90245
APPROVE AS TO FORM:
William P. Curley, III
City Attorney
ATTEST:
Roxanne Faber
City Clerk
2-2Concord - Document ID: 02xbgqVEA97NbsCxNcHgRH
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City Council Staff Report
DATE: SEPTEMBER 18, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
VISIT PALMDALE
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE ANNUAL REPORT FOR THE PALMDALE TOURISM IMPROVEMENT DISTRICT FOR FISCAL YEAR 2024-25
RECOMMENDATION
Staff recommends that the City Council receive and file the annual report for the PTID for FY 2024-25.
BACKGROUND
The PTID was formed in 2021 pursuant to the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq. (94 Law ). Visit Palmdale, the designated Owners’ Association for the PTID, is required to present an annual report to the City Council at the end of each FY of operation for the upcoming FY.
DISCUSSION
In 2021 , the City Council approved the formation of the PTID, which is a benefit assessment district proposed to help fund sales, marketing & communications , and destination development programs for all Palmdale lodging businesses . The PTID includes all existing and future lodging businesses available for public occupancy located within the City’s boundaries. The two percent assessment began on November 1, 2021, for an initial five-year term.
Visit Palmdale is a non -profit organization formed and designated to serve as the Owners’ Association pursuant to Streets and Highways Code §36651. Visit Palmdale manages matters related to the PTID including, but not limited to, management of assessment funds and full decision -making authority regarding PTID programs in accordance with the adopted PTID Management District Plan (MDP). The annual reports provide a broad overview of how the PTID funds are projected to be utilized in alignment with the adopted budget.
Report to Mayor and City Council
Re: Annual Report for the Palmdale Tourism Improvement District September 18, 2024
During the first three years of operation, Visit Palmdale has established partnerships with the City of Palmdale, Antelope Valley Fair, Air Force Plant 42, Edwards Airforce Base, and various sports organizations. Additionally, Visit Palmdale hosts the annual High Desert Beer and Wine Festival at the Palmdale Amphitheater, which has been highly successful. Creation of a brand identity and build-out of the Visit Palmdale website with the help of Simpleview Inc., has also been a focus of the PTID.
The cost of providing improvements and activities for FY 2024-25 is consistent with the MDP. The categorical breakdown and FY 2023-24 actuals are detailed in the attached annual report. All budget category allocations are within the authorized 15 percent adjustment of the total budget from the prior year as required by the MDP.
FISCAL IMPACT
$60,210; The City received a fee of one percent of the total amount collected ($10,210) to cover the costs of collecting the assessment from the hotel partners. In addition, the City receives an annual $50,000 reimbursement to administer the day-to-day activities of Visit Palmdale.
STRATEGIC PLAN
Goal IV: Maintain a desirable community where everyone wants to live, work and play.
D. Develop and maintain diverse programs and events that inspire growth, pride and lifelong learning.
Prepared by: Megan Taggart, Executive Director – Visit
Palmdale
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley III, City Attorney
ATTACHMENTS
Rpt. PTID Annual Report for FY 2024-25
N o v e m b e r 1 , 2 0 2 4 - O c t o b e r 3 1 , 2 02 5 Palmdale Tourism Improvement District
2024-2025 Annual Report
Submitted to the City of Palmdale pursuant to Streets and Highways Code Section 36650, for the period from November 1, 2024, through October 31, 2025
Contents
Boundaries ................................ ................................ ............ 3 Improvements and Activities ................................ .............. 4 Cost ................................ ................................ ......................... 6 FY 2024/2025 Projections ................................ ................................ ................................ ........... 6 FY 2023/2024 Actuals ................................ ................................ ................................ .................... 6 Assessment ................................ ................................ ........... 6 Surplus and Other Funding ................................ ................. 9 Surplus ................................ ................................ ................................ ................................ ................... 9 Other Funding ................................ ................................ ................................ ................................ .... 9 Appendix – Assessed Businesses ................................ .... 10
Palmdale Tourism Improvement District
2024-2025 Annual Report 3
Boundaries
There are no proposed changes to the boundaries for fiscal year 2024/2025. One (1) lodging business has closed:
• Knights Inn Motel - 130 East Palmdale Boulevard, Palmdale CA 93550.
The Palmdale Tourism Improvement District ( PTID) will continue to include all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Palmdale.
A complete listing of lodging businesses currently within the PTID can be found in the Appendix.
Palmdale Tourism Improvement District
2024-2025 Annual Report 4
Improvements and Activities
For fiscal year 202 4/2025, t he improvements and activities to be provided are consistent with the Management District Plan (Plan).
Sales, Marketing, and Communications
A sales, marketing and communications program will continue to promote assessed businesses as tourist, meeting, and event destination s. The sales, marketing and communications program will continue to have a central theme of promoting the destination as a desirable place for overnight visits. The program will continue to 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; • Attendance 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.
Palmdale Tourism Improvement District
2024-2025 Annual Report 5
Destination Product Development
The Destination Project Development projects may continue to include:
• Infrastructure improvements 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 continue to 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 continue 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 administration costs at the discretion of the Board. Polic ies 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 continue to retain a fee equal to one percent of the amount of assessments collected, to cover collection and administration costs.
Palmdale Tourism Improvement District
2024-2025 Annual Report 6
Cost
FY 2024/2025 Projections
The cost of providing improvements and activities for FY 2024/2025 is consistent with the Plan. The anticipated total budget for FY 2024/2025 is $1,100,000.00 in anticipated collections and $1,680,000 in carryover from previous year s, for a total estimated budget of $2,780,000.00.
The categorical collections breakdown for FY 2024/25 is below:
FY 2023/2024 Actuals
The projected FY 2023/2024 assessment collections were $1,036,668.42. Actual collections were slightly less than anticipated, totaling $1,021,000. Budgeted and actual expenses are shown below.
Category FY 2023/2024
Budgeted
FY 2023/2024
Actual
$ % $ Actual % $ Spent $ Carryover
Sales, Marketing &
Communications $829,334.74 81% $827,010 81% $385,063.89 $441,946.11 Destination
Development $62,200.11 6% $61,260 6% $0 $61,260.00
Administration $114,033.53 10% $102,100 10% $65,848.27 $36,251.73 Contingency/Reserve $20,733.37 2% $20,420 2% $49,920 ($29,500.00) City Fee $10,366.68 1% $10,210 1% $10,210 $0.00
Totals $1,036,668.42 100% $1,021,000 100% $511,042.16 $509,957.84
Note that the carryover amount of $5 09,957.84 only includes carryover in assessment revenue from the previous fiscal year. The total carryover amount of $1,680,000 is a running total including carryover from multiple years.
Category FY 2024/2025
Estimated Collections % of Budget
Sales, Marketing & Communications $891,000 81%
Destination Development $66,000 6%
Administration $110,000 10%
Contingency/Reserve $22,000 2%
City Fee $11,000 1%
Totals $1,100,000 100%
Palmdale Tourism Improvement District
2024-2025 Annual Report 7
Assessment
There is no change in the method and basis of levying the assessment.
Assessment Rate
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; stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays pursuant to contracts executed prior to November 1, 2021.
The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a hotel, valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash credits and property and services of any kind or nature, wi thout any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.
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 considered revenue for any purpose, including calculation of transient occupancy taxes.
Bonds shall not be issued.
Time and Manner for Collecting Assessments
The City will continue to be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City s hall forward the assessments collected to the Owners’ Association, Visit Palmdale.
Penalties and Interest
The PTID shall continue to 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 Palmdale Tourism Improvement District
2024-2025 Annual Report 8
PTID shall bear its pro rata share of such collection costs. Assessed 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 penalty of 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 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10% of the amount of unpaid assessment, in addition to the amount of the assessment and the 10% penalty first imposed.
3. Fraud: If the City determines that the nonpayment of any remittance due under this section is due to fraud, a penalty of 25% of the amount of the assessment shall be added thereto in addition to the penalties stated in this section.
4. Interest: In addition to the penalties 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 per month or fraction thereof on the amount of unpaid assessment, exclusiv e of penalties, from the date on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues under the provisions of this chapter shall become a part of the assessment herein required to be paid.
Palmdale Tourism Improvement District
2024-2025 Annual Report 9
Surplus and Other Funding
Surplus
The amount of surplus to be carried over from the previous years is $1,680,000.00.
Other Funding
Approximately $280,000.00 will be contributed from other sources, including advertising in the Visitor’s Guide and income from the annual High Desert Beer and Wine Festival.
Palmdale Tourism Improvement District
2024-2025 Annual Report 10
Appendix – 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 Palmdale 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
Palm Inn & Suites 430 W Palmdale Blvd, Palmdale, CA 93551 Fairfield Inn & Suites 1052 W Ave O-8, Palmdale, CA 93551 Hampton Inn and Suites 9428 Trade Center Dr, Palmdale, CA 93551 Hilton Garden Inn Palmdale 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
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City Council Staff Report
DATE: SEPTEMBER 18, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC SAFETY DEPARTMENT
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2024 -072, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE APPROVING
MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT WITH
THE COUNTY OF LOS ANGELES FOR PUBLIC SERVICES
PROVIDED BY THE LOS ANGELES COUNTY SHERIFF’S
DEPARTMENT AND AUTHORIZING THE CITY MANAGER TO
PROCURE SERVICES OF THE LO S ANGELES COUNTY SHERIFF’S
DEPARTMENT ANNUALLY UP TO AN AMOUNT APPROVED IN THE
CITY’S OPERATING AND CAPITAL BUDGET FOR A FIVE -YEAR
PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2029
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. CC 2024-072, a Resolution of the City Council of the City of Palmdale approving Municipal Law Enforcement Services Agreement with the County of Los Angeles for public services provided by the Los Angeles County Sheriff’s Department and authorizing the City Manager to procure services of the Los Angeles County Sheriff’s Department annually up to an amount approved in the City’s Operating and Capital Budget for a five -year period of July 1, 2024 through June 30, 2029; and,
2. Authorize the City Manager or her designee to execute Municipal Law Enforcement Services Agreement (Agreement No. A-8944) with the County of Los Angeles for public services, including minimal and/or non-substantial changes.
BACKGROUND
Contracting for municipal law enforcement services in Los Angeles County dates to 1954, when the City of Lakewood initiated the first contract with the County. Currently, 42 cities contract with the County through the Los Angeles Sheriff’s Department for primary and supplemental law enforcement services. Since August 24, 1962, the City of Palmdale has Report to Mayor and City Council
Re: Approving Agreement No. A-8944 with County of Los Angeles September 18, 2024
utilized the Los Angeles County Sheriff’s Department in providing intergovernmental services on a contractual basis.
The City of Palmdale’s current Municipal Law Enforcement Services Agreement (MLESA) with the County of Los Angeles (County) expired on June 30, 2024. A new five-year agreement, commencing July 1, 2024, to June 30, 2029, has been formulated for the City Council’s review and approval.
In addition to the MLESAs approved over the past few decades, the contract cities have entered into three additional agreements concerning liability and indemnification for County services, as follows:
1977 Assumption of Liability (Exhibit A): The County established a fund to cover liability costs associated with contract services, assuming liability and defense for contract cities (replaced by the 1991 Joint Indemnity Agreement for law enforcement services).
1991 Joint Indemnity Agreement (Exhibit B):The County and cities established the structure of the Liability Trust Fund, transferring responsibility for liability and payment for settlements and claims to this fund, which is fully funded by contract cities.
2009 Special Indemnity Agreement (Exhibit C): The County and cities agreed to split the liability and funding responsibility equally for certain cases involving deputies or other peace officers incurring felony convictions or any criminal convictions of certain sexual crimes.
DISCUSSION
Over the past year, a California Contract Cities Association (CCCA) City Managers subcommittee, including key participation from Palmdale’s executive team, collaborated with the County and the Los Angeles Sheriff's Department (LASD) to negotiate and amend the MLESA terms. The County and the CCCA subcommittee have mutually agreed upon the proposed revisions. The following is a summary of the county’s cost recovery for contract services, the city’s requests for law enforcement resources from the county and a list of changes to the MLESA terms.
County Cost Recovery for Contract Services
The County's Auditor/Controller established a formula to set the price of each contract service unit. At the same time, the Liability Trust Fund Claims Board has determined the recommended funding level for the liability component based on an actuarial study. These Report to Mayor and City Council
Re: Approving Agreement No. A-8944 with County of Los Angeles September 18, 2024
two components form the total cost per service unit assessed to the contract cities for each procured service unit.
City Requests Law Enforcement Resources from the County In fiscal year 2023-24, the City procured resources from various categories, including deputies and civilian personnel, resulting in a total service provision budget of $31,812,605.80. This figure includes a 12% charge allocated to the Liability Trust Fund to cover settlements and claims arising from MLESA operations.
For fiscal year 2024-25, the City will procure the same number of resources, with estimated costs increasing by 3.94%.
Changes to the 2024-2029 MLESA
Based on the contract cities negotiations, the MLESA includes changes that benefit the City. The changes include:
Performance will be measured at the Service Unit level rather than overall:
The agreement’s performance standard undergoes a transition from a single overall measure to multiple measures at the service unit level. Since MLESA performance is tied to service minutes, the number of deputies and civilians procured by a city is converted into available minutes. This allows the County to adjust minutes to meet their 98-102% target, yet it may result in unintended shortcomings in areas such as traffic, special assignments, or motor units. Retaining Vehicle of Deleted Service Unit: When a city adds a new resource that necessitates a vehicle (i.e. new deputy), it incurs a substantial initial expense for acquiring the additional vehicle. The maintenance and replacement costs for the vehicle are already factored into the city's annual charge if the city retains the new deputy. However, the language of the MLESA was not explicitly clear on protecting a city from losing a deputy temporarily and then incurring another new vehicle cost when the city restored the deputy. The MLESA now includes language allowing a city to regain access to a vehicle procured with a new deputy service unit if the unit is deleted and reinstated within 24 months. Transfer of City Property to County: The agreement requires separate written agreements, managed at the LASD contract city stations, to regulate items purchased by the City and temporarily transferred to the County. Additionally, the County is required to maintain a detailed and regularly updated inventory of all non-vehicle City equipment in its possession, including descriptions, serial numbers (if applicable), condition upon receipt and location.
Report to Mayor and City Council
Re: Approving Agreement No. A-8944 with County of Los Angeles September 18, 2024
Equipment Replacement after Extended Maintenance and Repair: The agreement requires that the County make its best efforts to provide a temporary replacement of equipment if the original equipment takes more than 60 days to be returned.
Continue Negotiations on Indemnity Agreements: Section No. 5.4 of the agreement acknowledges ongoing negotiations between the County and contract cities related to concerns over cities bearing the full liability cost for contract activities, which the County should also share. A Letter of Understanding (Exhibit D) between the County and the California Contract Cities Association outlines both parties' commitment to addressing several concerns raised by contract cities.
Liability Trust Fund Claims Board
Under the 1991 Joint Indemnity Agreement, the County established the Los Angeles Contract Cities Liability Trust Fund Claims Board (Board). This Board reviews and approves settlement of claims and lawsuits for monetary damages, funded by the County’s Contract Cities Liability Trust Fund. Contract cities contribute to this fund to reimburse the County for all costs related to contract city operations that result in litigation and settlements under the MLESA. The Liability Trust Fund is self-insured for liabilities up to $10 million and carries insurance coverage up to $50,000,000.
Due to significant payouts from settlements and litigation, insurers have increased the self-insurance retention from $2 million in 2011-12 to $10 million in 2023-24. Additionally, the rate paid by contract cities has risen from 4% to 12% and will increase to 12.5% in 2024-25.
The subcommittee strongly feels the need to revisit the liability and indemnity relationship between the contract cities and the County, which is crucial to sustaining the long-term viability of the Liability Trust Fund. Discussions to amend this language will continue to be held even after the MLESA is approved, retaining the existing liability and indemnity language from the previous MLESA.
FISCAL IMPACT
$33,036,079.88 for FY 2024-2025; includes $29,445,685.00 for law enforcement services, $3,569,034.88 for Liability Trust Fund contribution, and $21,360 in Public Safety Equipment.
For Fiscal Year 2024-25, the City will procure the same number of resources, with estimated costs increasing by 3.94%. This comprises a 3.44% increase for a deputy service unit plus a 0.5% increase to the Liability Trust Fund (Liability Trust fund will go from 12% to 12.5% of personnel cost).
Report to Mayor and City Council
Re: Approving Agreement No. A-8944 with County of Los Angeles September 18, 2024
Funds are available in account 10125002-737126. Funds for subsequent years will be requested through the annual budget process.
STRATEGIC PLAN
Goal I: Maintain effective public safety and protection for life, property and the environment.
A. Provide comprehensive and innovative safety services to prevent crime and promote a safe community.
Prepared by: Sara Gallagher, Deputy City Manager
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, City Attorney
ATTACHMENTS
Reso. No. CC 2024-072
Agrmt No. A-8944 with County of Los Angeles
Exh A 1977 Assumption of Liability Agreement
Exh B 1991 Joint Indemnity Agreement
Exh C 2009 Special Indemnity Agreement
Exh D Contract Cities Indemnification Letter of Understanding
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2024-072
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
APPROVING MUNICIPAL LAW ENFORCEMENT SERVICES
AGREEMENT WITH THE COUNTY OF LOS ANGELES FOR PUBLIC
SERVICES PROVIDED BY THE LOS ANGELES COUNTY SHERIFF’S
DEPARTMENT AND AUTHORIZING THE CITY MANAGER TO
PROCURE SERVICES OF THE LOS ANGELES COUNTY SHERIFF’S
DEPARTMENT ANNUALLY UP TO AN AMOUNT APPROVED IN THE
CITY’S OPERATING AND CAPITAL BUDGET FOR A FIVE-YEAR
PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2029
WHEREAS, The City of Palmdale, California (City) and the County of Los Angeles (County) have previously entered into a Municipal Law Enforcement Service Agreement (MLESA) whereby the County, through its Los Angeles Sheriff’s Department (LASD), provides general and additional law enforcement services within the jurisdiction of the City; and
WHEREAS, the current MLESA expired on June 30, 2024, and the City desires to continue receiving general and additional law enforcement services from the County through the LASD for an additional five years; and
WHEREAS, the City intends to enter into an MLESA for a five-year period starting July 1, 2024 through June 30, 2029, and to procure and allocate funds for such general law and additional services up to such amount appropriated in the City’s Annual Operating and Capital Budgets; and
WHEREAS, the City relies upon the City Manager or designee in partnership with the Palmdale Station Captain of the LASD to implement the MLESA in such a manner to best protect the public safety interests of the City of Palmdale and to make such operational changes as necessary to implement the MLESA and fulfill the public safety needs of the City.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1 . The City Council of the City of Palmdale hereby approves the MLESA between the City and the County for law enforcement and additional services for a five-year period beginning July 1, 2024, and expiring on June 30, 2029.
Resolution No. CC 2024-072
SECTION 2. The City Manager is authorized to execute the MLESA on behalf of the City.
SECTION 3. The City Manager or her designee is authorized to procure annual services up to the appropriated amount provided in the City’s Annual Operating and Capital Budgets and to make any such operational changes to further the public safety interest of the City. Permanently deleting or adding positions will be brought forth to the City Council for authorization and approval.
SECTION 4. The City requests that the Los Angeles County Board of Supervisors, or its designated agent or agency, approve and authorize the performance of services requested in this Resolution, subject to the terms and conditions set forth in the MLESA and any other relevant agreement(s).
SECTION 5. The City Clerk shall certify the adoption of this Resolution.
PASSED, APPROVED, and ADOPTED this 18th day of September, 2024. _________________________________
Approved as to form: Austin Bishop, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, City Clerk
City Attorney
I, Rochelle Scott, City Clerk of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 18th day of September, 2024 by the following roll call vote:
AYES:
NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:
Rochelle Scott, City Clerk
MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT
BY AND BETWEEN
COUNTY OF LOS ANGELES
AND CITY OF PALMDALE
TABLE OF CONTENTS
SECTION TITLE PAGE
RECITALS............................................................................................................. 1
1.0 SCOPE OF SERVICES…………............................................................ 1
2.0 ADMINISTRATION OF PERSONNEL................................................. 2
3.0 DEPLOYMENT OF PERSONNEL......................................................... 3
4.0 PERFORMANCE OF AGREEMENT.................................................... 6
5.0 INDEMNIFICATION............................................................................... 7
6.0 TERM OF AGREEMENT........................................................................ 8
7.0 RIGHT OF TERMINATION................................................................... 9
8.0 BILLING RATES….................................................................................. 9
9.0 PAYMENT PROCEDURES.................................................................... 10
10.0 NOTICES……………………................................................................... 11
11.0 AMENDMENTS…………….................................................................... 11
12.0 AUTHORIZATION WARRANTY......................................................... 12
13.0 ENTIRE AGREEMENT.......................................................................... 12 SIGNATURES....................................................................................................... 13 ATTACHMENT A: Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form
ATTACHMENT B: Contract City Law Enforcement Services and Equipment Master Rate Sheet
ATTACHMENT C: Public Safety Equipment Use Requirements
A-8944
1 MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT
BY AND BETWEEN
COUNTY OF LOS ANGELES
AND CITY OF PALMDALE
This Municipal Law Enforcement Services Agreement ("Agreement") is made and entered into this ______ day of __________________, 2024 by and between the County of Los Angeles ("County") and the City of Palmdale ("City").
RECITALS
A. Whereas, the City is desirous of contracting with the County for the performance of municipal law enforcement services by the Los Angeles County Sheriff’s Department ("Sheriff's Department"); and
B. Whereas, the County is agreeable to rendering such municipal law enforcement services on the terms and conditions set forth in this Agreement; and
C. Whereas, this Agreement is authorized by Section s 56½ and 56¾ of the County Charter and California Government Code Section 51301.
NOW THEREFORE, in consideration of the mutual covenants contained herein, and for good and valuable consideration, the parties mutually agree as follows:
1.0 SCOPE OF SERVICES
1.1 The County, by and through the Sheriff's Department, agrees to provide general law enforcement services within the corporate limits of the City to the extent and in the manner hereinafter set forth in this Agreement.
1.2 Except as otherwise specifically set forth in this Agreement, such services shall only encompass duties and functions of the type coming within the jurisdiction of and customarily rendered by the Sheriff 's Department under the County Charter , State of California statutes, and the City municipal codes.
1.3 General law enforcement services performed hereunder may include, if requested by the City, supplemental security support, supplemental sworn officer support, and supplemental professional civilian support staff.
2 2.0 ADMINISTRATION OF PERSONNEL
2.1 During the term of this Agreement, the Sheriff or his designee shall serve as the Chief of Police of the City and shall perform the functions of the Chief of Police at the direction of the City.
2.2 The rendition of the services performed by the Sheriff's Department, the standards of performance, the discipline of officers, and other matters incident to the performance of such services and the control of personnel so employed shall remain with the Cou nty. The City understands and agrees that, at the Sheriff’s Department’s sole discretion, the Sheriff’s Department may redeploy personnel for mutual aid purposes pursuant to the California Emergency Services Act, codified at California Government Code Sections 8550-8668. Absent exigent circumstances, any sustained deployment of more than fifty percent (50%) of the City’s contracted items , with the calculation determined by service unit type, requires consultation with the City manager or his/her designee. For the purpose of this section, exigent circumstances are defined as such cases where the immediacy of deployment is of such nature where prior consultation is materially detrimental to public safety and the length of such deployment does not exceed 24 hours.
2.3 In the event of a dispute between the parties to this Agreement as to the extent of the duties and functions to be rendered hereunder, or the minimum level or manner of performance of such service, the City shall be consulted and a mutual determination thereof shall be made by both the Sheriff's Department and the City.
The City shall first consult with the Station Captain, Division Commander , and Division Chief, in an effort to reach a mutual determination. If a mutual determination cannot be realize d at a subordinate level , then the matter will be elevated to a Sheriff’s Department Assistant Sheriff or the Sheriff.
2.4 With regard to Paragraphs 2.2 and 2.3 above, the Sheriff 's Department , in an unresolved dispute, shall have final and conclusive determination as between the parties hereto.
2.5 All City employees who work in conjunction with the Sheriff’s Department pursuant to this Agreement shall remain employees of the City and shall not have
3 any claim or right to employment, civil service protection, salary, or benefits or claims of any kind from the County based on this Agreement. No City employees as such shall become employees of the County unless by specific additional agreement in the form of a merger agreement which must be concurrently adopted by the City and the County. The Sheriff’s Department will provide approved City employees with the required training necessary to access authorized County programs (i.e. CAD, MDC, etc.), so such City employees can perform the functions of their positions.
2.6 While performing law enforcement services and functions under this Agreement, every Sheriff’s Department employee shall be authorized to enforce all City laws and regulations, including all City codes and ordinances.
2.7 The City shall not be called upon to assume any liability for the direct payment of any Sheriff's Department salaries, wages, or other compensation to any County personnel performing services hereunder for the City. Except as herein otherwise specified, the City shall not be liable for compensation or indemnity to any County employee or agent of the County for injury or sickness arising out of the performance of services under this Agreement.
2.8 As part of its compliance with all applicable laws and regulations relating to employee hiring, the County agrees that the County Civil Service Rules to which it is subject and which prohibit discrimination on the basis of non-merit factors, shall for purposes of this Agreement be read and understood to prohibit discrimination on the basis of sexual orientation.
3.0 DEPLOYMENT OF PERSONNEL
3.1 Services performed hereunder and specifically requested by the City shall be developed in conjunction with the Sheriff 's Department and indicated on Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement.
3.2 The City, or its designated representative, shall meet with its respective Sheriff's Department Station Captain when requesting law enforcement services to be performed in the City, and provide direction to the Sheriff's Department Station Captain regarding the method of deployment for such services . The City and the
4 Sheriff’s Department shall also determine a minimum daily standard of staffing needs for services rendered to ensure an adequate personnel presence during station operation and patrol. The City and the Station Captain shall meet to discuss the minimum daily standard which is documented in Attachment A , Los Angeles County Sheriff’s Department Service Level Authorization (SH -AD 575) Form, of this Agreement. The Station Captain shall endeavor to meet th is standard without increased cost to the City. The Sheriff's Department shall ensure that all services are delivered in a manner consistent with the priorities, annual performance objectives, and goals established by the City.
3.3 The Sheriff's Department shall make every attempt to avoid deployment deficiencies (i.e., “busting” of cars) by following the daily minimum standard of staffing, as stipulated in Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH -AD 575) Form, of this Agreement . Should deployment deficiencies occur, the Sheriff’s Department should make every effort to reallocate those resources to the shift where the deficiencies occurred . Should the Sheriff's Department determine th at a temporary increase, decrease, and/or realignment in the deployment methodologies is necessary, the Sheriff's Department shall promptly notify the City of this change in advance. In the event that prior notice is not possible, the City shall be notified of the change within two (2) City business days. If monthly service compliance falls below ninety -eight percent (98%) for each service unit type , then the Sheriff's Department Station Captain shall meet with the City to discuss compliance and identify a plan for resolution. If the quarterly and/or year -to-date (September 30th, December 31st, March 31st, and June 30th) service compliance falls below ninety -eight percent (98%) for each service unit type, then the respective Sheriff's Department Division Chief shall meet with the Sheriff's Department Station Captain and the City to discuss compliance and identify a plan for resolution. If the City is dissatisfied with the outcome of either resolution process, the matter will be elevated to a Sheriff's Department Assistant Sheriff or the Sheriff until all City concerns are fully resolved. Resolution may include, but is not limited to, the use of overtime, staffing adjustments, and/or City-initiated service suspensions, at no additional cost to the
5 City. If the City determines it is unnecessary, the City may waive either dispute resolution process discussed above.
3.3.1 The Sheriff’s Department shall monitor and make every attempt to backfill vacant and impaired (to include loaned) sworn supervisorial overhead positions by the beginning of the following quarter.
3.3.2 The Sheriff’s Department will work with the City to provide an appropriate tool and/or reports to demonstrate adequate service level compliance under this Agreement. Such service level compliance reports include, but not limited to, daily staffing l evels, service levels, deployment of service units, daily deputy activity, or similar type data that is reasonably available.
3.4 A new Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575 ) Form, of this Agreement shall be authorized and signed annually by the City and the Sheriff or his designee effective each July 1, and attached hereto as an Amendment to this Agreement.
3.5 Should the City request a change in the level of service other than pursuant to the annual July 1 readjustment, a revised Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization ( SH-AD 575) Form, of this Agreement shall be signed and authorized by the City and the Sheriff or his designee and attached hereto as an Amendment to this Agreement.
3.6 The most recent dated and signed Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement shall be the staffing level in effect between the County and the City.
3.7 The City is not limited to the serv ices indicated in Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement. The City may also request any other service or equipment in the field of public safety, law, or related fields within the legal power of the Sheriff ’s Department to provide. Such other services and equipment shall be reflected in a revised Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement under the procedures set forth
6 in Paragraphs 3.4 and 3.5 above.
3.8 With regard to any public safety equipment requested by the City and set forth on Attachment A , Los Angeles County Sheriff’s Department Service Level Authorization (SH-AD 575) Form, of this Agreement, the City shall adhere to the terms and conditions set forth in Attachment C, Public Safety Equipment Use Requirements, of this Agreement.
3.9 When a contracted service unit, requiring the procurement of a vehicle at the onset of service, is deleted from the Service Level Authorization (SH-AD-575) , and the City reinstate s said service unit within a 24-month period, the City will not be required to procure a vehicle.
4.0 PERFORMANCE OF AGREEMENT
4.1 For the purpose of performing general law enforcement services under this Agreement, the County shall furnish and supply all necessary labor, supervision, equipment, technology, communication facilities, and supplies necessary to maintain the agreed level of service to be rendered hereunder.
4.2 Notwithstanding the foregoing, the City may provide additional resources for the County to utilize in performance of the services.
4.2.1 All bailments require a separate Bailment Agreement governing the County’s use of the bailed equipment. Such Bailment Agreements shall be administered at the station level. A bailment is a legal arrangement where one party (City) temporarily transfers possession of specific property or assets to another party (County) to facilitate the provision of certain services.
4.2.2 All donations made by a City to the County will be governed by the most current Sheriff’s Department donation procedures.
4.2.3 The County, through the Sheriff’s Department, acknowledges its obligation to maintain an inventory of all non-vehicle equipment owned by the City (“City Equipment”) provided to the County for its use. The inventory shall include, but not limited to, a detailed description of each item of City Equipment, its serial number (if applicable), its condition upon receipt, and its location. The County shall be responsible for regularly updating and maintaining the inventory of City Equipment, including documenting any changes in the status, condition, or location
7 of equipment. The inventory shall be kept current and accurate at all times during the term of this Agreement. Upon request by the City, the County shall provide access to the inventory records and facilitate any necessary inspections or audit of the City Equipment. The County shall cooperate fully with the City in verifying the accuracy and completeness of the inventory. In the event of loss, damage, or theft of any City Equipment while under the custody or control of the County, the County shall promptly notify the City in writing and provide a detailed explanation of the circumstances surrounding the incident. All inventory records shall be completed and maintained at the station level.
4.3 When and if both parties to this Agreement concur as to the necessity of maintaining a law enforcement headquarters or Sheriff’s Department substation within the City which would not normally be provided by the Sheriff’s Department, the City shall furnish at its own cost and expense all necessary office space, and the Sheriff’s Department shall have authority to negotiate with the City regarding which entity shall pay for furniture and furnishings, office supplies, janitor service, telephone, light, water, and other utilities.
4.4 It is expressly further understood that in the event a local office or building is maintained in the City, such local office or building may be used by the Sheriff ’s Department in connection with the performance of its duties in territory outside of the City, provided, however, that the performance of such outside duties shall not be at any additional cost to the City.
4.5 Notwithstanding the foregoing, it is mutually agreed that in all instances where special supplies, stationery, notices, forms, and the like must be issued in the name of the City, the same shall be supplied by the City at its own cost and expense.
5.0 INDEMNIFICATION
5.1 The parties hereto have executed an Assumption of Liability Agreement approved by the County Board of Supervisors on December 27, 1977, and/or a Joint Indemnity Agreement approved by the County Board of Supervisors on October 8, 1991. Whichever of these documents the City has signed later in time is currently in effect and hereby made a part of and incorporated into this Agreement as if set out in full herein.
8 5.2 The parties hereto have also executed a County-City Special Indemnity Agreement approved by the County Board of Supervisors on August 25, 2009. This document is made a part of and incorporated into this Agreement as if set out in full herein.
5.3 In the event the County Board of Supervisors later approves a revised Joint Indemnity Agreement and the City executes the revised agreement, the subsequent agreement as of its effective date shall supersede the agreement previously in effect between the parties hereto.
5.4 Notwithstanding anything to the contrary contained in the Agreement, the indemnification term under this section shall be in effect for a period of nine (9) months, through and including March 31, 2025, with an automatic six -month (6) renewal thereafter, t hrough and including September 30, 2025 (“Indemnification Extension”), unless: (a) this section is amended at any time prior to September 30, 2025; or (b) the entire Agreement is terminated earlier, pursuant to Section 7.0 of this Agreement. If the pa rties continue to perform under the Agreement after the expiration of the Indemnification Extension without any amendment to this section in accordance with Section 11.0, then the indemnification term under this section will be automatically renewed and in corporated herein for the entire duration of this Agreement.
6.0 TERM OF AGREEMENT
6.1 The term of this Agreement shall be from July 1, 2024 through June 30, 2029, unless sooner terminated or extended as provided for herein.
6.2 At the option of the County Board of Supervisors and with the consent of the City Council, this Agreement may be renewed or extended for successive periods not to exceed five (5) years each.
6.3 Nine (9) months prior to the expiration of this Agreement, the parties shall meet and confer in good faith to discuss the possible renewal or extension of this Agreement pursuant to Paragraph 6.2 above. The parties shall reach an agreement as to the terms of any renewal or extension period no later than six (6) months prior to the expiration of this Agreement. Absent mutual agreement by the parties within that time frame, this Agreement shall expire at the conclusion of the then -existing term.
9 7.0 RIGHT OF TERMINATION
7.1 Either party may terminate this Agreement as of the first day of July of any year upon notice in writing to the other party of not less than one hundred eighty (180) calendar days prior thereto.
7.2 Notwithstanding any provision herein to the contrary, the City may terminate this Agreement upon notice in writing to the County given within sixty (60) calendar days of receipt of written notice from the County of any increase in the rate for any service to be performed hereunder, and in such an event this Agreement shall terminate sixty (60) calendar days from the date of the City’s notice to the County.
7.3 This Agreement may be terminated at any time, with or without cause, by either party upon written notice given to the other party at least one hundred eighty (180) calendar days before the date specified for such termination.
7.4 In the event of a termination, each party shall fully discharge all obligations owed to the other party accruing prior to the date of such termination, and, except as otherwise provided herein, each party shall be released from all obligations which would otherwise accrue subsequent to the date of termination.
7.5 In the case of termination of this Agreement, the Sheriff will provide only such duties as are required by law.
8.0 BILLING RATES
8.1 The City shall pay the County for the services and equipment provided under the terms of this Agreement at the billing rates set forth on Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement, as established by the County Auditor-Controller.
8.2 The billing rates set forth on Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement shall be readjusted by the County Auditor-Controller annually effective July 1 of each year, published by the County, and attached hereto as an Amendment to this Agreement, to reflect the cost of such service in accordance with the policies and procedures for the determination of such rates as adopted by the County Board of Supervisors.
8.3 The City shall be billed at the current fiscal year’s billing rates based on the service level provided within the parameters of Attachment A, Los Angeles County
10 Sheriff’s Department Service Level Authorization (SH -AD 575) Form , of this Agreement.
8.4 The billing rates for other services and equipment requested pursuant to Paragraph
3.7 of this Agreement and not set forth on Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement shall be determined by the County Auditor-Controller in accordance with the policies and procedures established by the County Board of Supervisors and then set forth and published on a revised Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement.
9.0 PAYMENT PROCEDURES
9.1 The County, through the Sheriff 's Department, shall render to the City, after the close of each calendar month , a summarized invoice which covers all services performed during said month, and the City shall pay the County for all undisputed amounts within sixty (60) calendar days after date of the invoice.
9.2 If such payment is not delivered to the County office which is described on the invoice within sixty (60) calendar days after the date of the invoice, the County is entitled to recover interest thereon. For all disputed amounts, the City shall provide the County with written notice of the dispute including the invoice date, amount, and reasons for dispute within ten (10) calendar days after receipt of the invoice.
The parties shall memorialize the resolution of the dispute in writing. For any disputed amounts, interest shall accrue if payment is not received within sixty (60) calendar days after the dispute resolution is memorialized.
9.3 Interest shall be at the rate of ten percent (10%) per annum or any portion thereof, calculated from the due date of the invoice for the month in which the services were performed, or in the case of disputed amounts, calculated from the date the resolution is memorialized.
9.4 Notwithstanding the provisions of California Government Code Section 907, if such payment is not delivered to the County office which is described on said invoice within sixty (60) calendar days after the date of the invoice, or in the case of disputed amounts, from the date the resolution is memorialized, the County may satisfy such indebtedness, including interest thereon, from any funds of the City on
11 deposit with the County without giving further notice to the City of the County's intention to do so.
10.0 NOTICES
10.1 Unless otherwise specified herein, all notices or demands required or permitted to be given or made under this Agreement shall be in writing and shall be hand delivered with signed receipt or mailed by first class registered or certified mail, postage prep aid, addressed to the parties at the following addresses and to the attention of the person named. Addresses and persons to be notified may be changed by either party by giving ten (10) calendar days prior written notice thereof to the other party.
10.2 Notices to the County shall be addressed as follows:
Los Angeles County Sheriff's Department
Contract Law Enforcement Bureau
Attn: Unit Commander
211 W. Temple Street. 7th Floor
Los Angeles, California 90012
Phone #: 213-229-1647
10.3 Notices to the City of shall be addressed as follows:
City of Palmdale
Attn: City Manager
Address: 38300 Sierra Highway, Palmdale, CA 93550
Phone #: 661-267-5100
11.0 AMENDMENTS
11.1 Except for changes pursuant to Paragraphs 8.2 and 8.4 of this Agreement, a ll changes, modifications, or amendments to this Agreement must be in the form of a written Amendment duly executed by the County Board of Supervisors and an authorized representative of the City.
11.2 Notwithstanding Paragraph 11.1 above, the Sheriff or his designee is hereby authorized to execute , on behalf of the County , any Amendments and/or supplemental agreements referenced in Sections 3.0, 4.0, and 9.0 of this Agreement.
11.3 In accordance with Paragraph s 8.2 and 8.4 of this Agreement, t he Sheriff or his designee is hereby authorized to publish , on behalf of the County , the annual
12 revised Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement . The revised Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet, of this Agreement shall serve as an Amendment to this Agreement, but shall not require the signature of either party.
12.0 AUTHORIZATION WARRANTY
12.1 The City represents and warrants that the person executing this Agreement for the City is an authorized agent who has actual authority to bind the City to each and every term, condition, and obligation of this Agreement and that all requirements of the City have been fulfilled to provide such actual authority.
12.2 The County represents and warrants that the person executing this Agreement for the County is an authorized agent who has actual authority to bind the County to each and every term, condition, and obligation of this Agreement and that all requirements of the County have been fulfilled to provide such actual authority.
13.0 ENTIRE AGREEMENT
This Agreement, including Attachment A, Attachment B, and Attachment C, and any Amendments hereto constitute the complete and exclusive statement of understanding of the parties which supersedes all previous agreements, written or oral, and all communications between the parties relating to the subject matter of this Agreement. No change to this Agreement shall be valid unless prepared pursuant to Sec tion 11.0, Amendments, of this Agreement.
13 MUNICIPAL LAW ENFORCEMENT SERVICES AGREEMENT
BY AND BETWEEN
COUNTY OF LOS ANGELES
AND CITY OF PALMDALE
IN WITNESS WHEREOF, the County of Los Angeles, by order of its Board of Supervisors, has caused this Agreement to be executed by the Sheriff of Los Angeles County, and the City has caused this Agreement to be executed by its duly authorized representative , on the dates written below.
COUNTY OF LOS ANGELES
By ________________________________
ROBERT G. LUNA
Sheriff
Date _______________________________
CITY OF PALMDALE
By ________________________________
Date _______________________________
ATTEST:
By__________________________
City Clerk
APPROVED AS TO FORM: APPROVED AS TO FORM:
DAWYN R. HARRISON CITY ATTORNEY County Counsel
By _APPROVAL ON FILE_____ By _________________________ Principal Deputy County Counsel
RANK, RELIEF FACTOR
SERVICE
CODE
NEW
PREV.
CHNG.
ANNUAL RATE
ESTIMATED TOTAL
ANNUAL COST
LIABILITY
12.5 %
TOTAL ANNUAL COST
W/LIABILITY
ANNUAL HOURS
PER SERVICE UNIT
ANNUAL HOURS
SCHEDULED
ANNUAL MINUTES
SCHEDULED
PERSONNEL
REQUIRED
DEPUTY SHERIFF SERVICE UNIT
Deputy Sheriff, Non-Relief
310
1.00 1.00
0.00 $
335,385.00
$
335,385.00
$
41,923.13
$
377,308.13
1,789
1,789
107,340
1.00 Deputy Sheriff, 40-Hour Unit
306
6.00 6.00
0.00 $
368,924.00
$
2,213,544.00
$
276,693.00
$
2,490,237.00
2,086
12,516
750,960
6.996
Deputy Sheriff, 56-Hour Unit
307
36.00 36.00
0.00 $
516,493.00
$
18,593,748.00
$
2,324,218.50
$
20,917,966.50
2,920
105,120
6,307,200
58.752
Special Assignment Deputy, Non-Relief
278
13.00 13.00
0.00 $
335,385.00
$
4,360,005.00
$
545,000.63
$
4,905,005.63
1,789
23,257
1,395,420
13.00 DEPUTY SHERIFF SERVICE UNIT (BONUS)
Deputy Sheriff, Bonus I, Non-Relief
305
3.00 3.00
0.00 $
361,026.00
$
1,083,078.00
$
135,384.75
$
1,218,462.75
1,789
5,367
322,020
3.00 GROWTH DEPUTY UNIT
GRANT DEPUTY UNIT
Grant Motor Deputy, Non-Relief
422
2.00 2.00
0.00 $
252,024.00
$
504,048.00
$
63,006.00
$
567,054.00
1,789
3,578
214,680
2.00 Grant Deputy Generalist, Non-Relief
386
2.00 2.00
0.00 $
233,680.00
$
467,360.00
$
58,420.00
$
525,780.00
1,789
3,578
214,680
2.00 SUPPLEMENTAL POSITIONS
Sergeant, Supplemental, Non-Relief
353
2.00 2.00
0.00 $
307,637.00
$
615,274.00
$
-
$
615,274.00
1,789
3,578
214,680
2.00 Motor Sergeant, Non-Relief
348
1.00 1.00
0.00 $
324,341.00
$
324,341.00
$
40,542.63
$
364,883.63
1,789
1,789
107,340
1.00 Motor Deputy, Non-Relief
305A
2.00 2.00
0.00 $
335,385.00
$
670,770.00
$
83,846.25
$
754,616.25
1,789
3,578
214,680
2.00 Crime Analyst, Non-Relief
329
1.00 1.00
0.00 $
166,637.00
$
166,637.00
$
-
$
166,637.00
1,789
1,789
107,340
1.00 Station Clerk II, Non-Relief
351
1.00 1.00
0.00 $
111,495.00
$
111,495.00
$
-
$
111,495.00
1,789
1,789
107,340
1.00 Estimated Cost for Service Units:
$
29,445,685.00
Total Liability (
12.5 %):
$
3,569,034.88
Estimated Subtotal:
$
33,014,719.88
Public Safety Equipment Cost (See page 3):
$
21,360.00
Estimated Total Annual Cost:
$
33,036,079.88
CITY
:
Palmdale
FISCAL YEAR:
2024-2025
EFFECTIVE DATE:
7/1/2024
LOS ANGELES COUNTY SHERIFF'S DEPARTMENT
CONTRACT LAW ENFORCEMENT SERVICES
SERVICE LEVEL AUTHORIZATION (SH-AD 575)
The terms of this Service Level Authorization (SH-AD 575) will remain in effect until a subsequent SH-AD 575 is signed and received by LASD.
Notwithstanding, annual rates shall be revised annually per Sections 8.2 and 11.3 of the MLESA.
LASD Approval By:
Report Prepared By:
Rudy P. Sanchez
6/26/2024
UNIT COMMANDER NAME
SIGNATURE
DATE
SERGEANT
DATE
City
Approval By:
"I certify that I am authorized to make this commitment on behalf of the City
."
Processed at CLEB By:
CITY OFFICIAL NAME
SIGNATURE
DATE
SERGEANT
DATE
Palmdale 575 FY 24-25 /(2) ALPR systems deleted.
Generated:
8/7/2024 11:22:48 AM
Attachment A
LOS ANGELES COUNTY SHERIFF'S DEPARTMENT
CONTRACT LAW ENFORCEMENT SERVICES
SERVICE LEVEL AUTHORIZATION (SH-AD 575)
DEPLOYMENT OF PERSONNEL
CITY
:
Palmdale
FISCAL YEAR:
2024-2025
EFFECTIVE DATE:
7/1/2024
SERVICE UNIT
TOTAL
UNITS
PURCHASED
GENERAL LAW
EM
AM
PM
TRAFFIC LAW
EM
AM
PM
MOTOR
DEP
SAD
D.B.
TEAM
LEADER
TOTAL
UNITS
ASSIGNED
DEPUTY SHERIFF SERVICE UNIT
Deputy Sheriff, Non-Relief
1.00 1.00
1.00 Deputy Sheriff, 40-Hour Unit
6.00 4.00
1.00 1.00
6.00 Deputy Sheriff, 56-Hour Unit
36.00 6.00
9.00 11.00
3.00 4.00
3.00 36.00
Motor Deputy, Non-Relief
2.00 2.00
2.00 Special Assignment Deputy, Non-
Relief
13.00 11.00
2.00 13.00
DEPUTY SHERIFF SERVICE UNIT (BONUS)
Deputy Sheriff, Bonus I, Non-Relief
3.00 1.00
2.00 3.00
GRANT DEPUTY UNIT
Grant Deputy Generalist, Non-
Relief
2.00 2.00
2.00 Grant Motor Deputy, Non-Relief
2.00 2.00
2.00 Routine City Helicopter Agreement
YES
NO
License Detail - Business & Renewal Applications
YES
NO
License Detail - Acts on Violations Observed within the City YES
NO
Other Supplemental Services
YES
NO
NOTE: License Detail is billed on an hourly basis and billed monthly as service is provided.
Sworn
Lieutenant
Sergeant
Bonus Deputy
Motor Deputy
Deputy
SAD
Total
Hours
0 5,367
5,367
7,156
123,003
23,257
164,150
Minutes
0 322,020
322,020
429,360
7,380,180
1,395,420
9,849,000
Personnel
0.000
3.000
3.000
4.000
68.748
13.000
91.748
Civilian
SSO
LET/CSA/CA/PCO
Clerical
Total
Hours
0 1,789
1,789
3,578
Minutes
0 107,340
107,340
214,680
Personnel
0.000
1.000
1.000
2.000
Agreement
City Official
:
Unit Commander:
Palmdale 575 FY 24-25 /(2) ALPR systems deleted.
Attachment A
LOS ANGELES COUNTY SHERIFF'S DEPARTMENT
CONTRACT LAW ENFORCEMENT SERVICES
SERVICE LEVEL AUTHORIZATION (SH-AD 575)
PUBLIC SAFETY EQUIPMENT
CITY
:
Palmdale
FISCAL YEAR:
2024-2025
Public Safety Equipment
Equipment
SERVICE CODE
#
RATE
TOTAL COST
Equipment
MDC Type
SERVICE CODE
#
RATE
TOTAL COST
MDC Data & Maintenance Only
595
12.00 $
1,780.00
$
21,360.00
ALPR With Install
SERVICE CODE
#
RATE
TOTAL COST
Total Public Safety Equipment Cost:
$
21,360.00
Attachment A
(2) ALPR systems were deleted from contract due to city no longer desirous of utilizing systems. ALPR vehicles will be removed from fleet and replaced with non-ALPR equipped vehicles.
Palmdale 575 FY 24-25 /(2) ALPR systems deleted.
CONTRACT LAW ENFORCEMENT SERVICES AND EQUIPMENT
MASTER RATE SHEET
Liability Rate:
12.5 %
Deputy Sheriff Service Unit
Rates
Rank / Relief Factor
Annual
Rate
Service Code
Deputy Sheriff, Non-Relief
$
335,385.00
310
Deputy Sheriff, 40-Hour Unit
$
368,924.00
306
Deputy Sheriff, 56-Hour Unit
$
516,493.00
307
Deputy Sheriff, 70-Hour Unit
$
645,616.00
308
Special Assignment Deputy, Non-Relief
$
335,385.00
278
Catalina Deputy, Non-Relief
$
334,861.00
324
Deputy Sheriff Service Unit (Bonus)
Rates
Rank / Relief Factor
Annual
Rate
Service Code
Deputy Sheriff, Bonus I, Non-Relief
$
361,026.00
305
Deputy Sheriff, Bonus I, 40-Hour Unit
$
397,128.00
301
Deputy Sheriff, Bonus I, 56-Hour Unit
$
555,980.00
302
Deputy Sheriff, Bonus I, 70-Hour Unit
$
694,975.00
303
Growth Deputy Unit
Rates
Rank / Relief Factor
Annual
Rate
Service Code
Growth Special Assignment Deputy, Non-Relief
$
233,680.00
204
Growth Deputy Generalist, Non-Relief
$
233,680.00
335
Growth Deputy Generalist, 40-Hour Unit
$
272,471.00
573
Growth Deputy Generalist, 56-Hour Unit
$
381,366.00
582
Growth Deputy Generalist, 70-Hour Unit
$
476,707.00
583
Growth Motor Deputy, Non-Relief
$
252,024.00
424
Growth Deputy Bonus I, Non-Relief
$
254,004.00
336
Grant Deputy Unit
Rates
Rank / Relief Factor
Annual
Rate
Service Code
Grant Special Assignment Deputy
$
233,680.00
312
Grant Motor Deputy, Non-Relief
$
252,024.00
422
Grant Deputy Generalist, Non-Relief
$
233,680.00
386
Grant Deputy Bonus I, Non-Relief
$
254,004.00
384
Supplemental Positions
Rates
Rank / Relief Factor
Annual
Rate
Service Code
Captain, Non-Relief
$
457,914.00
321
Lieutenant, Non-Relief
$
364,606.00
342
Sergeant, Patrol, Non-Relief
$
389,902.00
631
Sergeant, Supplemental, Non-Relief
$
307,637.00
353
Motor Sergeant, Non-Relief
$
324,341.00
348
Motor Deputy, Non-Relief
$
335,385.00
305A
Watch Deputy, Non-Relief
$
249,796.00
354
Community Services Assistant (w/ veh), Non-Relief
$
84,226.00
325
Community Services Assistant (w/out veh), Non-Relief
$
80,327.00
327
Crime Analyst, Non-Relief
$
166,637.00
329
Custody Assistant, Non-Relief
$
136,462.00
331
Forensic ID Specialist II, Non-Relief
$
206,497.00
356
Information Systems Analyst I, Non-Relief
$
181,206.00
332
Intermediate Clerk, Non-Relief
$
89,517.00
338
Law Enforcement Technician (w/ veh), Non-Relief
$
123,400.00
340
Law Enforcement Technician (w/out veh), Non-Relief
$
122,440.00
339
Operations Assistant I, Non-Relief
$
118,285.00
343
Operations Assistant II, Non-Relief
$
146,942.00
344
Operations Assistant III, Non-Relief
$
168,289.00
345
Secretary V, Non-Relief
$
128,003.00
346
Security Assistant, Non-Relief
$
67,750.00
362
Security Officer, Non-Relief
$
105,091.00
347
Attachment B
Fiscal Year:
2024-2025
Senior Information Systems Analyst, Non-Relief
$
237,072.00
334
Station Clerk II, Non-Relief
$
111,495.00
351
Skynight Observer, Non-Relief
$
361,026.00
349
Supervising Station Clerk, Non-Relief
$
134,799.00
352
Equipment
Rates
Public Safety Equipment
Annual
Rate
Service Code
Supplemental K9 Services (Santa Clarita)
$
5,000.00
671
MDC Type
Rates
Equipment
Annual
Rate
Service Code
MDC New Purchase, Data & Maintenance - FZ-40
$
9,839.00
198
MDC New Purchase, Data & Maintenance - GETAC V110
$
8,805.00
164
MDC Data & Maintenance Only
$
1,780.00
595
ALPR With Install
Rates
Equipment
Annual
Rate
Service Code
ALPR New Install 1st Year (5yr Program)
$
5,000.00
680
ALPR System 2nd Year
$
5,000.00
680A
ALPR System 3rd Year
$
5,000.00
680B
ALPR System 4th Year
$
5,000.00
680C
ALPR System 5th Year
$
5,000.00
680D
Annual revised rates shall be readjusted annually per Sections 8.2 and 11.3 of the MLESA.
1 Attachment C
PUBLIC SAFETY EQUIPMENT USE REQUIREMENTS
1.0 TRANSFER OF PUBLIC SAFETY EQUIPMENT
1.1 The County, through the Sheriff’s Department, hereby transfers the public safety equipment set forth on Attachment A, Los Angeles County Sheriff’s Department Service Level Authorization (SH -AD 575) Form , of this Agreement ("Equipment") for the exclusive use of the City during the term of the Agreement.
2.0 USE OF EQUIPMENT
2.1 The City may use the Equipment for any lawful purpose, including use in connection with public safety activities in all areas under the City’s jurisdiction.
2.2 The City shall not use or operate the Equipment in violation of any federal, state, or local law, rule, regulation, or ordinance.
2.3 The Equipment shall not be used or operated as follows:
2.3.1 In a manner subjecting the Equipment to depreciation above the normal depreciation associated with public safety use; and/or
2.3.2 For an illegal purpose or by a person under the influence of alcohol or narcotics.
3.0 SAFEKEEPING AND MAINTENANCE
3.1 The City shall exercise due care for the safekeeping of the Equipment during the term of the Agreement.
3.2 The City shall ensure that the Equipment is kept in good working order and condition, shall ensure that the Equipment is scheduled and available to County for the performance of its regularly scheduled maintenance by the County, and shall comply in every respect with any manufacturer’s/owner’s manual that comes with the Equipment.
3.3 The County shall perform all maintenance and repairs required for the proper operation of the Equipment. Except as otherwise set forth herein, s uch maintenance and repairs are provided in exchange for the City's payment of the annual billing rates set forth on Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet , of the Agreement. The City has the right to inspect said Equipment prior to acceptance of the Equipment following maintenance and repairs by the County.
3.4 Maintenance and repairs provided by the County under the Agreement may be 2 performed by the County, its third party vendors, and/or the manufacturer of the Equipment.
3.5 The County shall assume responsibility for ensuring that the Equipment has been inspected or otherwise tested in accordance with the laws of the State of California and the United States prior to use by the City.
3.6 The City shall inspect the Equipment upon initial delivery and return from County following maintenance and repair , and, by acceptance thereof , finds the Equipment in good working order and condition.
3.7 The Equipment shall be maintained and repaired solely by the County. The City and any of its third party vendors are prohibited from performing any maintenance and repairs on the Equipment.
3.8 All regularly scheduled maintenance shall be performed by the County, and the City shall timely present the Equipment to the County for the performance of regularly scheduled maintenance at the direction of, and in accordance with the policies and procedures of, the Sheriff's Department's Communications and Fleet Management Bureau . The Sheriff’s Department sh all make every effort to perform any maintenance in a timely manner.
3.9 Any Equipment requiring maintenance and repair by the County for any extended length of time, as determined by the Sheriff's Department's Communications and Fleet Management Bureau, will make best efforts to provide a temporary replacement piece of Equipment if such extended time exceeds or is projected to exceed sixty (60) calendar days . All terms and conditions set forth herein shall apply to the City's use of any temporary replacement E quipment provided by the County. The County shall not be responsible for any damages or liability resulting from the City's loss of use of the Equipment during the performance of maintenance and repair services by the County.
4.0 INSPECTION BY COUNTY
4.1 The County shall have the right to inspect the Equipment, immediately upon request by the County, at any time during the term of the Agreement. The City shall provide the County with such operating, and other information, or copies of any such records maintained by the City with respect to the Equipment, as the County or any government agency may require from time to time.
5.0 TITLES
5.1 The County shall retain ownership of the Equipment used by the City during the term of th e Agreement. Legal title to the Equipment is, and shall , at all times, remain in the name of the C ounty. The Equipment shall not be transferred or delivered by the City to any persons other than the C ounty without the C ounty’s prior written consent.
3 6.0 INDEMNIFICATION
6.1 The City agrees to indemnify, defend, and hold harmless the County from any and all liability, losses, or damages the County may suffer and from any claims, demands, costs, or judgments against the County arising out of City’s use or operation of the Equipment. This indemnification does not extend to (1) any liability resulting from inherent defects or malfunctions in such Equipment related to manufacturer’s acts or omissions, or (2) negligent or wrongful maintenance or repair of the Equipment provided by the County.
7. RISK OF LOSS
7.1 The City shall assume all risk of loss to the Equipment from the time it is delivered by the County to the City, and inspected and accepted by the City, until (1) the Equipment is returned to the County upon expiration or termination of the Agreement, or (2) the County regains temporary possession of the Equipment for purposes of providing maintenance and repair.
7.2 Upon inspection/acceptance of the Equipment, the City shall be responsible for any and all damage to the Equipment, except those damages resulting from (1) inherent defects or malfunctions in such Equipment related to manufacturer’s acts or omissions , or (2) the negligent or wrongful maintenance or repair of the Equipment provided by the County.
7.3 In the event of damage to the Equipment or the Equipment is in need of repair, the City shall notify the County to that effect and follow such instructions that the County may provide with respect to repair or disposal of the Equipment. If the Equipment is lost, stolen, destroyed, or declared to be a total constructive loss (subject to the County's agreement as to such condition), the City shall properly notify the County thereof and hold any Equipment for disposal by the County.
With respect to any loss, theft , or destruction of the Equipment, the County and the City shall negotiate the value for comparabl e equipment in a condition similar to the lost, stolen, or destroyed Equipment immediately prior to any such loss.
The City shall reimburse the County for the value of the lost, stolen, or destroyed Equipment.
8.0 BILLING RATES
8.1 As further discussed in Section 8.0, Billing Rates, of the Agreement, t he City shall pay the County for the use of the E quipment provided under the Agreement at the annual billing rates set forth on Attachment B, Contract City Law Enforcement Services and Equipment Master Rate Sheet , of th e Agreement, as established by the County Auditor-Controller.
I
7o?~
76 EXHIBIT VI
1 ASSUMPTION OF LIABILITY AGREEMENT
2 3 THIS AGREEMENT, dated for referencepurposes only, on the 4 14th day of November,1977, is made and entered into between 5 the County of LosAngeles, sometimeshereinafterreferred to as 6 the “County,”and the City of San Dimas,
i sometimeshereinafterreferredto as the“City.”
8 9 RECITALS
(a) City atidCountyhave heretoforecontracted for the
ii performanceof servicesby County, itsofficers,agents and 12 employees,and will in the future extend,renew and amend such 13 contracts,and enter intoother and furthercontracts for the 14 performanceof services;and
Is (b) Such contractsare agreementsdefinedunder §895 of the 16 Government Code,and pursuant to §895.2 thereofjoint and several 17 liabilityis imposedon the parties;and
18 (c) Pursuantto §895.4 of the GovernmentCode the parties 19 as a part of theaforementionedagreementsmay provide for con- 20 tributiohor indemnificationupon any liabilityarising out of 21 the performance ofthe agreement;and
22 (d) The Countyis willing to assume liabilityand defend 23 and hold the Cityharmless from any loss, cost or expense caused 24 by the negligentor wrongfulacts or omissionsof County officers, 25 its agents and employees,occurringin theperformance of said 26 agreement;and
27 /1/
28 ///
Exhibit A
76 (e) The City is willing to assume liabilityand defend and 2 hold the Countyharmlessfrom loss, cost or expensescaused by 3 the negligentor wrongfulact or omissionof city officers, agents 4 or employeesoccurringin theperformanceof agreements between S the parties, exceptas hereinafterprovided,
6 NOW, THEREFORE,IT IS AGREED AS FOLLOWS:
7 1. The Countywill assume liabilityand defend and
8 hold the Cityharmlessfrom loss, costs or expenses caused 9 by thenegligentor wrongfulact or omissionof County
10 officers,agentsand employeesoccurringin the performance 11 of agreementsbetween the partieshereto to the extent that 12 such liabilityis imposedon the City by the provisions of 13 S895.2 of the GovernmentCode of the State of California. 14 2. The Citywill assume liabilityand defend and hold
15 the County harmlessfrom loss, costs or expenses caused by 16 the negligentor wrongfulact or omissionof City officers, 17 agents and employeesoccurringin the performance of agree- 18 ments between the partieshereto to the extent that such 19 liabilityis imposedon the Countyby the provisions of 20 §895.2 of the GovernmentCode of the State of California. In 21 addition,when liabilityarises pursuant to §~83O, et seq., 22 of the GovernmentCode,by reason of a dangerouscondition 23 of publicpropertyof the City, the City shall assume
24 liabilityand defendand hold the County harmless from ldss, 25 costs or expensescaused by the negligentor wrongful act or 26 omissionof City officers,agents and employees,whether 27 /1/
28 /1/
—2-
7~N—(lO/13\}-~
1-76
I arising in the performanceof an agreementbetween the
2 partieshereto,with the exceptionthat the County shall 3 assume liabilityand defendand hold the City harmless from 4 loss, costs or expensescausedby the negligent or wrongful 5 act or omissionof County officers,agents and employees, 6 occurringin the performanceof any agreementbetween the 7 partieshereto where a duty is imposedon the County pursuant 8 to suchagreementto providemaintenanceor inspection
9 servicespertainingto said property. Where such an agree- 10 ment betweena City and Countyprovides that the County will• 11 provideat least the same level of maintenanceor inspection 12 servicesthat the Countyprovides to unincorporatedareas, 13 the Countywill assume liabilityand defend and hold the City 14 harmlessfrom loss, costs or expensecaused by the negligent IS or wrongfulact or omissionof County officers,agents and 16 employeesin failing to provide said services in accordance 17 with saidagreement.
18 3. The parties furtheragree that the Auditor-
19 Controllerof the County shall establisha fund for the pay- 20 meat of losses for which the County may be liable under the 21 terms of this agreement,and the County agrees to maintain 22 the fund for the purpose of paying such losses which may 23 occur through its performance under agreements to provide 24 city services to the cities within the County.
25 /1/ - -
26 /1/
27 /1/
28 ///
-3-
S
-76
1 4. It is understoodby the parties that the fund
2 referred to in paragraph3 above is under the full control 3 of the Board of Supervisorsand reappropriationof unen- 4 cumberedyear-endbalancesin this fund is discretionary S with the Board of Supervisors.
6 5. The City agrees to make payment to the fund, and
7 the County agrees to require each city receiving services 8 under City ServiceAgreementsto also contributeto the fund. 9 Payments towards the total amount of the fund shall be made 10 by the City in such amounts as may be establishedby the Auditor-Controlleraccordingto the policy and procedure
12 establishedby the Board of Supervisors,and in the same 13 ratio as the cost of services received by the City is to the 14 total cost to the County for its performance of City Service is Agreements during each fiscal year. In the event that City 16 should elect to terminate its Service Agreement with the 17 County, its responsibilityto contributeto the fund pursuant 18 to this agreement shall be limited to payment of amounts 19 which accrue prior to the effective date of said termination. 20 - 6. Each party agrees to fully cooperate with the other 21 and assist the other party hereto in all matters relating to 22 lossescoveredby the terms of this agreement, and more 23 specificallybut not being limited thereby,each.partywill:
24 (a) Give prompt notificationof all occurrences
25 - covered or likely to be covered by the terms hereof, 26 - together with the particulars thereof to the other party 27 hereto;
28 I/f
-4-
[576N—(lOf73~
11 - 76
1 (b) If claim is made, or suit is brought against
2 a party on occurrences covered or lilcely to be covered 3 by the terms hereof, such party shall immediately
4 forward every claim, demand, notice, summons or other 5 process received by it to the other party hereto.
6 7. Should City agree, stipulate, consent to, or other— 7 wise suffer the granting of any claim, the making of any 8 judgment, order, or other award for damages or other relief 9 against itself or any of its or the County’s officers, 10 agents,or employeesin any proceedingor action authorized ii by law involvinga matter arising out of the performance by 12 the County of services affected hereby without the prior 13 written consent thereto of the County, the City agrees to 14 indemnify, hold harmless, and defend the County from any Is loss, cost or expense to it arising from such claim, judgmen 16 or other award irrespectiveof the legal basis upon which 17 liabilitymay be imposedby such action including liability 18 of the Countyunder the provisionsof Section 895.2 of the 19 GovernmentCode.
20 8. Any party may at its own cost participate in the
21 defenseof any suit, or in the prosecutionof any appeal 22 affectingmatters herein involvedwhere the duty of defense 23 or prosecution is imposed on the other party, and where the 24 other party has consented thereto.
25 - 9. This cgreement shall apply to and shall be deemed 26 to be a part of all agreementsnow existing or hereafter 27 f/I
28 III
—5—
YrS76N—(IOI73)-—
1176
I entered into, includingamendments,renewals, or other
2 extensionsthereof,wherein the Cityand.County have con- 3 tractedunder circumstanceswherein the liabilityof the City1 4 and County is joint and severalunder §895.2 of the Govern— S ment Code of the State of California. The provisions of this~ 6 agreementshall supersedeand control over any other provi- 7 sions inconsistenttherewithin any such contract, heretofore~, 8 or hereafterentered intoby and between the parties hereto, 9 unless by specificreferencetherein thisAssumption of
10 Liability.Agreement is inapplicable.
II 10. On the effectivedate of this agreement that cer— 12 tam agreement entitled “Assumption of Liability Amendment,” 13 - if any between the parties, is terminated. The effective 14 date of thisagreementis the date executedby the parties, IS but in no event sooner than 12:00A.M., March 15, 1978, 16 unless the aforementionedAssumption of LiabilityAmendment 17 should be sooner terminatedby the parties, in which event IS the date of such terminationshall be the effective date of 19 this agreement. Upon the effectivedate of this agreement th üme shall continueduring the term of any agreement for
21 servicesto which the same is applicable,unless the County 22 shall soonerelect to terminatethis agreementupon thirty 23 days writtennotice to the City. The County further agrees 24 that this agreementshall be only terminatedupon the occur- 25 rence of the foregoing,or any one or more of the following 26 events: -
27 III
28 III
-6-
~7:J1~I73~ S
1176
I (a) Failure of the City to cooperate with the
2 County as required by this agreement..
3 (b) Upon the City authorizing any judgment, order
4 or other award for damages without the consent of the 5 County in violation of the terms and provisions of this 6 agreement.
7 (c) Upon the County’selection in its absolute
8 discretion to terminate this Assumption of Liability
9 Agreementas to all cities having such serviceagree-
10 ments with the County.
II 11. To the extent that the County has agreed to indem- 12 nify, defend and waive harmlessa city, its officers, agents 13 - and employeesunder this agreement, said obligation shall 14 continue to exist during the term of this agreement whether is - or not there are sufficient funds for such indemnity, defense 16 or hold harmless in the fund established by the Auditor- 17 Controller. It is further understood that the County may 18 also utilize said fund for the purchase of commercial 19 insurance and claims management servicesand for the payment 20 of other costs to cover the exposures of the County hereunder 21 in whole or in part.
22 12. On terminationby the City of service contract with 23 the County, or upon termination by the County for any cause, 24 the County shall continue to indemnify, defend and hold harm- 25 less the City for all claims and losses for which liability 26 is imposed -on the County by the terms of this agreement, and 27 III
28 III
—7—
i/li)-
where arisingout of the County’snegligentor wrongful act 2 or omission, prior to the effective date of said termination. 3 Said City shall not be entitled to return of any considera- 4 tion paid by it towardsthe fund establishedby the Auditor- 5 controller on the termination of this agreement.
6 IN WITNESS WHEREOF,the parties hereto have caused this 7 agreementto be executedby their duly authorizedofficers the 8 day and year hereinafter set forth.
9 CITY OF ~5AN/ b/MA—S
- By~~
II Mayor
12 p7
ATTEST this “~\{6 day of ~
13 - 197$.
IS City Clerk
16 17 COUNTYQF LOS ANGELES
18 By_____________________________
19 Chairman, Board of Supervisors
I ADGflED ATTEST this 22—day of ~p½gç’ \-\ ,
21 197L
22: JAMES S. MIZE, Executive Officer-
23 DEC271977 Clerk of the Board of Supervisors
24 ,~.,-‘ By__________
26 27
28 a 8
Exhibit B
COUNTY - CITY SPECIAL INDEMNITY AGREEMENT
THIS AGREEMENT ( " Agreement "), dated for reference purposes on the day of 2009, is made and entered into between the County of Los Angeles, hereinafter referred to as the "County," and the Cities identified in Recital G below, hereinafter cumulatively referred to as the "Cities."
RECITALS
A. Cities, and each of them, and County have heretofore contracted for the performance of law enforcement services to be provided by the County, its officers, agents and employees, known as "Municipal Law Enforcement Services Agreements" which contracts the parties may in the future extend, renew and amend, and enter into other and further contracts for the performance of such services (hereinafter referred to as " MLESA"); and B. Cities and County have heretofore contracted for the indemnification of the Cities by the County, utilizing the Liability Trust Fund ( "LTF ") for the acts and omissions committed by the County's employees in the course and scope of providing services under the MLESA agreements, more particularly described as the Joint Indemnity Agreements or Assumption of Liability Agreements ( hereinafter referred to as " Joint Indemnity Agreements ") which have remained in full force and effect to the present time; and
C. In accordance with the Joint Indemnity Agreements, the County established the LTF, as provided in those agreements. In accordance with the Joint Indemnity Agreements, the Cities, and each of them, are required COCA- COLA. SI'CINDEMNTYACR A90727FIN.DOC
Exhibit C
to paymoniesinto theLTF. Themoniesin the LTFareusedto reimburse the County for claims, losses, costs and expenses it incurs for which indemnification is provided in the parties' MLESA and /or Joint Indemnity Agreements; and
D. The County withdrew sums from the LTF for the purpose of reimbursing itself for its payment of settlement of claims related to sexual assaults committed by a deputy sheriff (Gonzales) in the years 2002 and 2003 ( the " Claims "); and
E. A dispute has arisen between the parties regarding the circumstances under which the County may utilize the funds in the LTF for claims arising from sexual assaults committed by deputy sheriffs employed by the County ( "Sexual Assaults "); and
F. The parties desire to continue the Joint Indemnity Agreements and MLESAagreements, as amended, modified and supplementedfrom time to time. As further consideration to the Cities, the County is willing to reimburse the LTF for a portion of the sums that are used or may be used by it from the LTF for claims, losses, costsor expensesarising out of certain Sexual Assaults, as defined in Section 2 below, occurring in the performance of the MLESA agreementson the terms and in the manner provided in this Agreement.
G. The Cities that are a party to this Agreement are as follows:
City of Agoura Hills
City of Artesia
City of Avalon
City of Bellflower
City of Bradbury
Citv of Calabasas
CCCA- COLA. SPCINDEMNTYAGR.090727 FIN. DOC 2
City of Carson
City of Cerritos
City of Commerce
City of Compton
City of Diamond Bar
City of Duarte
City of Hawaiian
Gardens
City of Hidden Hills
City of Industry
City of La Canada
City of La Habra Heights
City of La Mirada
City of La Puente
City of Lakewood
City of Lancaster
City of Lawndale
City of Lomita
City of Lynwood
City of Malibu
City of Norwalk
City of Palmdale
City of Paramount
City of Pico Rivera
City of Rancho Palos
Verde
City of Rolling Hills
City of Rolling Hills
Estate
City of Rosemead
City of San Dimas
City of Santa Clarita
City of South El Monte
City of Temple City
City of Walnut
City of West Hollywood
City of Westlake Village
NOW, THEREFORE, for good and valuable consideration, receipt of which is acknowledged, it is mutually agreed as follows:
AGREEMENT
1. Effective Date.
This Agreement shall be effective as of July 1, 2009. The foregoing notwithstanding, this Agreement shall apply to any claims notice of which is first given to the Liability Trust Fund Oversight Committee after the effective date of this agreement, regardless of the date of occurrence. For purposes of this Agreement "notice" shall meannotificationto the ChiefExecutiveOfficerof the California Joint Powers Insurance Authority and the Executive Director of the California Contract Cities Association, unless otherwise instructed in writing.
2. Indemnity by the County to the City.
CCCA- C0L .A. SPCINDPMNTYAGR.090727PIN. DOC 3
The parties agree that the maximum liability of the LTF for any losses, claims, costs or expenses related to certain Sexual Assaults, as herein below defined, by deputies or other peace officers in the employ of the County shall be one -half ( 1/ 2) of any settlement, judgment or award for such assaults and the costs of defense, including attorneys fees, for such claims or lawsuits. In the event that a withdrawal is made by the County from the LTF for any liability related to certain Sexual Assaults by deputies or other peace officers, as herein below defined, the County shall reimburse the LTF, or, in the event that it has not made a withdrawal of funds from the LTF it shall assume the responsibility to payfromits own funds, one -half (1 / 2) of any amountsnecessaryto satisfyany judgment, award or settlement not otherwise coveredby insurance, if there is any, togetherwith costs of defense, including attorneys fees, under the following circumstances:
a. A felonyjudgment of criminal conviction is entered in a state or federal court based upon the same facts as the claim; and
b. The felony judgment of criminal conviction is based upon an act of rape, sodomy, oral copulation or other sexual penetration of a person; For purposes of calculating the amount that the County is obligated to pay into the LTF under this Agreement, any amount paid by an insurance carrier directly to a claimant on a claim which is subject to this Agreement shall not be deemed to have been paid from the LTF.
For purposesof calculating the amount that the County is obligatedto pay into the LTF under this Agreement. any amount paid from the LTF on a claim CCCA -COLAS PC) NDENIN7 YAG R. 090727FIN.DOC 4
which is subject to this Agreement but which is reimbursed to the LTF by an insurance carrier shall not have been deemed paid from the LTF.
Nothing herein createsan obligation upon the Cities, or any of them, or any other entity to acquire, have or maintain any policy of insurance.
3. Term of and Application to Other Agreements.
This Agreement shall apply to all MLESA agreements now existing or hereafter entered into, including amendments, renewals or other extensions thereof. This Agreement shall serve to supplement the Joint Indemnity Agreementswith respect to the singlesubjectmatter addressedherein.
Nothing herein shall be deemed to change, modify, alter, amend, or substitute any term, right, obligation or condition set forth in an MLESA, as amended or modified, from time to time.
4. Termination of Service Contracts Between County and Cities.
This Agreement shall continue in effect until the last of any MLESA or similar agreement is lawfully terminated in accordance with its terms. Such termination shall not relieve County or City for any obligations set forth in such MLESA agreement relating to obligations upon termination of such agreement and this Agreementto any claims relatedto a SexualAssault.
5. Release of the Claims.
The Cities and each of them hereby waive, release and relinquish any claim they may havefor the reimbursement of the sums withdrawn by the County with respect to the Claims. The County hereby waives, releases and relinquishes any right or claim it may have for reimbursement of any sums it has or may have CCCA- COLA . SPCINDGMNTI' AGR.090727FIN. DOC 5
paid or incurred with regard to any Sexual Assault occurring prior to the effective date of this Agreement.
6. Further Assurances
Each of the parties hereto agrees to execute and deliver any and all additional papers and documents, and to do any and all acts reasonably necessary in connection with the performance of its obligations hereunder and to carry out the intent of the parties hereto.
7. Non - Admission of Liability
Each of the parties hereto agrees that nothing contained or incorporated herein shall be deemed as an admission of liability with respect to any matter, thing, or dispute whatsoever.
8. Entire Agreement
This Agreement with regard to the use of LTF funds by the County for claims arising out of Sexual Assaults, and the other agreements between the parties referenced herein, shall constitute the entire agreement between the parties hereto with respect to the subject matter hereof, and shall supersede all prior and contemporaneous agreements, representations of the parties concerning the subject matter hereof and the terms applicable thereto.
9. Amendment
This Agreement may not be supplemented. modified or amended in any manner, except by an instrument in writing stating that it is a supplement, modification or amendment of this Agreement and signed by each of the parties hereto.
CCCA- COLA. SPCINDE:NIN " FYAGR. 090727FIN.DOC 6
10. Waiver.
No waiver of any of the provisions of this Agreement shall be deemed or constitute a waiver of any other provision, whether or not similar, nor shall any wavier constitute a continuing wavier. No waiver shall be binding unless executed in writing by the party making the waiver.
11. Counterparts
This Agreement may be executed by one or more separate counterparts, each of which, when so executed shall together constitute one and the same instrument. A copy transmitted electronically or by facsimile shall be deemed effective as an original.
12. Captions
The captions appearing in this Agreement are descriptive only and for convenience of reference. Should there be any conflict between any such caption and the terms of this Agreement, the latter shall control and govern the construction of this Agreement.
13. Constructions and Interpretation
The parties have participated equally in the preparation of this Agreement, which shall be construed and interpreted simply and fairly and not strictly for or against any party.
14. Recitals.
The Recitals set forth in this Agreement are incorporated herein by reference and made a part hereof.
CCCA -COLA SKINDEMN' IYAGR.090727FIN. DOC. 7
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their fully authorized officers the day and year hereinafter set forth.
ATTEST:
SACHI HAMAI
Executive Officer - Clerk
Board of Supervisors
By
Deputy
APPROVED AS TO FORM:
ROBERT E. KALUNIAN
Acting County Counsel
Lo
Signatures continued)
COUNTY OF LOS ANGELES
DON KNABE
Chairman, Board of Supervisors
0 CCCA- COLA. SPCINDEMN 8
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
ATTEST:
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
m
Signatures Continued)
CITY OF AGOURA HILLS
Lm
MAYOR
CITY OF ARTESIA
By
MAYOR
CCCA- COLA. SPCINDFMNTYAGR09072 7FM.DOC 9
CITY OF AVALON
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
II
MAYOR
CITY OF BELLFLOWER
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued)
CCGbCOLA. SPCINDEMN'I' Y.AG R. 090727F'IN. D0C T
CITY OF BRADBURY
0 ITUWCON
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
CITY OF CALABASAS
10 fuYNTOM
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued)
CCCA- COLAS PCINDEMNTYAGR.090727FIN. DOC
CITY OF CARSON
ATTEST:
M
City Clerk
QI
MAYOR
APPROVED AS TO FORM:
CITY ATTORNEY
10 ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued)
CITY OF CERRITOS
m
fNEVZOT
CCCA- COLA . SKINDE.\ MNTYAGRD90727F(N. DOC 12
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued
CITY OF COMMERCE
m
MAYOR
CITY OF COMPTON
a
MAYOR
CCCA- COLA. SPCINDEYMNIYAGR. 090727HNDOC 13
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued)
CITY OF DIAMOND BAR
By
MAYOR
CITY OF DUARTE
m
MAYOR
COCA -COLAS PCINDEMNTYAC R, 090727PINDOC 14
CITY OF HAWAIIAN GARDENS
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
IIm
MAYOR
CITY OF HIDDEN HILLS
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
Signatures Continued)
COCA -COLAS PC. INDPON1YACR.090727FIN. DOC 1.5
16 CITY OF INDUSTRY
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
CITY OF LA CANADA
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY -
By
Signatures Continued)
CCCA - COL:\ SPCINDFMNTYAGR. 090727FIN.DOC 16
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
ATTEST:
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
a
Signatures Continued)
CITY OF LA HABRA HEIGHTS
Im
MAYOR
CITY OF LA MIRADA
m
ruFMO7:7
CCCA- COLA. SPCINDEMNIYAGR. 090727FIN.DOC 17
CITY OF LA PUENTE
0 MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
CITY OF LAKEWOOD
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued)
CCCA- COI. A.SPCINNDEMNPYAG R. 090727FIN. DOC is
CITY OF LANCASTER
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
0 MAYOR
CITY OF LAWNDALE
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued)
COCA- COLA. SPCINDEM NTYAGR. 090727 FIN. DOC 19
CITY OF LOMITA
m
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
CITY OF LYNWOOD
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued)
C CCA - CO LA. S PC I N D 8Ni NT Y AG R .09072 7 F I N. DOC 20 I
CITY OF MALIBU
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
CITY OF NORWALK
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued)
CCC.A- COI, A.SPCINDEMNTYAGR O90727FIN.DOC I
CITY OF PALMDALE
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
MAYOR
CITY OF PARAMOUNT
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures Continued)
CCCA - COLAS KINDEb1NTYAGR.090727FIN.DOC
2 CITY OF PICO RIVERA
Lo
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
CITY OF RANCHO PALOS VERDE
LIZA
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures continued)
CCCA - COLA . SPCWDEMNTYAGR.090727F IN. DOC 23
CITY OF ROLLING HILLS
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
go
MAYOR
CITY OF ROLLING HILLS ESTATE
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures continued)
CCCA- COLA.S PC] N DEMNI' YAGR.090 72 MN. DOC. 74
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
ATTEST:
By o
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures continued)
CITY OF ROSEMEAD
Lm
O/ ` o
CITY OF SAN DIMAS
MAYOR
CCCA -- COLA SPCINDFNIN " rYAGR. 090727F1N. DOC 25
CITY OF SANTA CLARITA
0 70T. 0
ATTEST:
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
CITY OF SOUTH EL MONTE
13Ti
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures continued)
CCCA- COLA. SPCINDFMNTYAGR. 090727FIN, DOC. 26
CITY OF TEMPLE CITY
Lm
IMF' • •
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
CITY OF WALNUT
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
Signatures continued)
CCCA -COLAS PCLNDEMNTYAGR. 090727FiN.DOC 2',
CITY OF WEST HOLLYWOOD
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
QQI
MAYOR
CITY OF WESTLAKE VILLAGE
By
MAYOR
ATTEST:
By
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY
By
End)
CCCA - COL A. SPC[Nll EM N' IY AG R. 090727FIN. DOC. ZS
LETTER OF UNDERSTANDING
BETWEEN
COUNTY OF LOS ANGELES
AND CONTRACT CITIES ASSOCIATION
REGARDING CONTRACT CITIES LIABILITY TRUST FUND
The Los Angeles County Sheriff's Department (LASD) provides law enforcement services to 42 cities in Los Angeles County (Contract Cities) through the Municipal Law Enforcement Services Agreement (MLESA). The MLESA is negotiated every five years, and we are pleased to have reached agreement with the Contract Cities on a five-year MLESA renewal, effective July 1, 2024. We value our mutual goal and partnership to keep our communities safe.
During the negotiation of the renewed MLESA, both Contract Cities and the County of Los Angeles (County) agreed that continued discussions around the MLESA’s indemnification provisions are warranted. The increasing value of legal settlements and jury verdicts, escalating insurance costs, and other factors have raised concerns about the potential for exposure to liability at severe or unanticipated levels.
This Letter of Understanding (LOU) sets forth the framework within which the County and Contract Cities intend to continue discussions around the MLESA’s indemnification provisions. It is not intended, nor shall it be construed, to impose any monetary or legal duty upon either party.
I. PURPOSE
The purpose of this LOU is to memorialize the County’s and Contract Cities’ mutual intent to continue to discuss potential changes to the indemnification provisions contained in Section 5.0 (Indemnification) of the MLESA, and to discuss funding models and practices with respect to liability costs.
In the renewed MLESA, the parties agreed to maintain the indemnification language from the prior MLESA for a period of nine (9) months, with an automatic extension for an additional six (6) months, to allow these continued discussions to take place.
Neither the County nor Contract Cities are committing to any particular resolution or agreement resulting from these discussions, and this LOU is not enforceable against either the County or Contract Cities.
Exhibit D
II. TOPICS FOR DISCUSSIONS
The County and Contract Cities intend to discuss the specific topic areas identified below. These topic areas are described generally so as not to be unduly prescriptive or limiting. However, the County and Contract Cities do not intend by this LOU to discuss topic areas outside the reasonable scope of the Assumption of Liability Agreement, Indemnity Agreement, Special Indemnity Agreement, and those items listed below, and agree that limiting discussion to these topic areas will ensure that discussions proceed in a focused, orderly, and timely manner.
1. Acts or omissions by LASD employees that will not be considered “Contract City business” for the purposes of determining whether the LTF shall pay for resulting litigation costs and liability.
2. Loss control measures to reduce liabilities paid for by the LTF.
3. A formal process to resolve disputes between the County and Contract Cities over responsibility for certain costs of litigation or liability.
4. Responsibility for the costs to defend LASD employees and punitive damages awards under certain circumstances, including but not limited to, when employees are engaged in conduct outside the course and scope of their employment, illegal or sexual activity or with willful disregard for the safety of others.
5. Participation by Contract Cities in the selection of attorneys for Priority 1 & 2 cases, as well as discussions of which firms should be on the panel.
6. Defining what constitutes timely notice by the County to Contract Cities’ claims and the ramification of a failure to do so.
7. Litigation cost reduction measures.
8. Addressing the solvency of the LTF.
9. Discuss other fee-for-service models that reflect the County’s desire to fully recover its cost of providing MLESA services in Contract Cities, including any liability costs, and the Contract Cities’ desire to reduce liability costs associated with the existing MLESA structure.
III. MEETING SCHEDULE AND FORMAT
Within 15 days of the execution of this LOU by all parties, the parties will mutually agree on a meeting schedule. Meetings will take place no less than monthly, either in person or virtually. To foster meaningful and productive discussions, the County and Contract Cities intend to limit their respective number of participants at each meeting to no more than six (6) representatives each. County representatives will include, at a minimum, the Chief Executive Office, LASD, and County Counsel.
Contract Cities’ representatives will include, at a minimum, Contract Cities Executive Director, the California Joint Powers Insurance Authority, and a representative from the City Managers workgroup. This does not restrict the use of external professionals to assist in any technical analysis beneficial to the discussions.
1. 1.
IV.
COUNTY OF LOS ANGELES
By:
Signature
Name:
Date:
Title:
LOS ANGELES SHERIFF’S DEPARTMENT
By:
Signature
Name:
Date:
Title:
CONTRACT CITIES ASSOCIATION
By:
Signature
Name:
Date:
Title:
City Council Staff Report
DATE: SEPTEMBER 18, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
INNOVATION AND ENVIRONMENTAL DIVISION
DISTRICT: ALL
SUBJECT: APPROVE TERM SHEET BETWEEN ENERGY FOR PALMDALE’S
INDEPENDENT CHOICE (EPIC) AND DEER CREEK SOLAR, LLC
FOR THE PURCHASE OF LONG-TERM RPS-ELIGIBLE
RENEWABLE ENERGY & MID-TERM RELIABILITY CAPACITY
RECOMMENDATION
Staff recommends that the City Council:
1. Approve the Term Sheet between Energy for Palmdale’s Independent Choice (EPIC) and Deer Creek Solar, LLC (Deer Creek) for the purchase of long -term RPS-eligible renewable energy & mid-term reliability capacity; and,
2. Authorize the City Manager or her designee to execute the future Master Power Purchase and Sale Agreementbetween EPIC and Deer Creek, including minimal and/or non-substantial changes; the Agreement is to be executed based on the information provided in the term sheet.
BACKGROUND
The City’s Community Choice Aggregation (CCA) Program, EPIC, was established by the City Council through the adoption of Resolution No. CC 2018 -087, approving the submittal of an Implementation Plan (Plan), per Public Utilities Code Section 366.2(c), on December 4, 2018. The Plan was certified by the Energy Division on February 28, 2019, and EPIC successfully began serving customers on October 1, 2022.
Additionally, pursuant to an agreement between the City an d California Choice Energy Authority ( CalChoice), before entering into a Master Power Purchase and Sale Agreement, for a term in excess of five years, the City Council must grant the City Manager signing approval.
Report to Mayor and City Council
Re: Approve Term Sheet between EPIC and Deer Creek Solar, LLC September 18, 2024
DISCUSSION
California Public Utilities Commission (CPUC) Decision 23-02-040 mandates that load- serving entities within the Commission's jurisdiction collectively procure an additional 4,000 megawatts of electrical capacity. This procurement is intended to ensure sufficient electricity supplies to meet anticipated demand and bolster grid reliability in the face of potential resource adequacy challenges. The newly acquired capacity is required to be operational and available for delivery starting in 2026 and 2027.
To meet this requirement and California’s increasing renewable energy procurement mandate, CalChoice, on behalf of EPIC and its other member agencies, issued a Request for Proposals for Renewable Energy Projects in March 2024.
CalChoice and its legal and technical team spent several months negotiating and finalizing commercial and contract terms with Deer Creek. The Deer Creek project involves a solar power plant capable of generating 50 megawatts of electricity and a battery storage system that can store 200 megawatt-hours of energy in Terra Bella, California, with a commercial delivery date of April 2026. EPIC will receive approximately
6.7% of the project’s generation.
As a condition of the Agreement, Deer Creek recognizes and accepts the secured deposit account in EPIC's name as credit and collateral.
FISCAL IMPACT
$1.2 Million; annual costs associated with the Master Power Purchase and Sale Agreement between EPIC and Deer Creek will range from $1 to $1.2 million. Adequate annual revenues to support this agreement are forecasted within EPIC’s Financial Pro Forma, contingent upon the appropriation of funds by the City Council during the adoption of future Palmdale Annual Budgets.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal Health
Goal III: Invest in infrastructure to improve community livability.
B. Implement and administer environmentally sustainable programs.
Report to Mayor and City Council
Re: Approve Term Sheet between EPIC and Deer Creek Solar, LLC September 18, 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
Term Sheet
CC/SA Minutes – 09/04/2024 5 PM 1
MINUTES
CITY COUNCIL/SA/HA
CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B
PALMDALE, CALIFORNIA
SEPTEMBER 4, 2024
www.cityofpalmdale.org
1) CALL MEETING TO ORDER
Mayor Bishop called the meeting to order at 5:03 p.m.
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 COMMISSIONERS FRAGA-SAENZ, BETTS
PRESENT: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón, Dianne Betts.
ABSENT: Christina Fraga-Saenz.
Motion: Excuse the absence of Commissioner Fraga-Saenz
Moved by Austin Bishop, seconded by Laura Bettencourt.
Vote: Motion carried (6-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón, Dianne Betts.
Absent: Christina Fraga-Saenz.
3) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE
Mayor Pro Tem Loa led the pledge of allegiance.
Mayor Bishop announced the meeting would be adjourned in honor of Stephen Wood.
The following observances were acknowledged for September: Child Cancer Awareness Month, National Preparedness Month, Suicide Prevention Awareness Month, Hispanic Heritage Month, and National Recovery Month.
4) PRESENTATION
4.1) Presentation by Matthew Perry Foundation on Grassroots Recovery Grant to the Fentanyl Campaign.
A representative from the Matthew Perry Foundation spoke about the fentanyl epidemic and the work that is being done in the City of Palmdale.
CC/SA Minutes – 09/04/2024 5 PM 2
Councilmember Ohlsen thanked the Matthew Perry Foundation for the $10,000 donation.
Mayor Bishop presented a certificate to the Matthew Perry Foundation.
5) PUBLIC COMMENTS
CONSENT CALENDAR, APPOINTMENT(S), NEW BUSINESS, AND CLOSED SESSION:
Eugene Hernandez discussed Antelope Valley Transit Authority (AVTA) bus benches and the appointment process for City boards, commissions, and committees.
Item 6.1 was pulled for discussion by Councilmember Alarcón.
6) HOUSING AUTHORITY CONSENT CALENDAR
6.1) Approve the Housing Authority of the City of Palmdale’s Annual Report per Health and Safety Code Section 34328 and 34328.1 and authorize the Executive Director or her Designee to submit the report to the State of California Department of Housing and Community Development (HCD).
Supervising Coordinator Nichols presented the Staff Report.
Councilmember Alarcón asked for line -item details, an update on the improvements for the Mobile Home Parks, and additional information on SB1069 legislation. Supervising Coordinator Nichols stated they are in the process of preparing the memo outlining suggestions. City Manager Perez and City Attorney Curley discussed the legislation on Accessory Dwelling Units (ADU's). Discussion ensued on the restriction on the number of animals allowed.
Motion: Approve the Housing Authority of the City of Palmdale's Annual Report.
Moved by Richard J. Loa, seconded by Eric Ohlsen.
Vote: Motion carried (6-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón, Dianne Betts.
Absent: Christina Fraga-Saenz.
6.2) Approve the minutes from the previous meetings.
Motion: Approve all items as listed on the Housing Authority Consent Calendar except for item 6.1.
Moved by Richard J. Loa, seconded by Andrea Alarcón.
Vote: Motion carried (6-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón, Dianne Betts.
Absent: Christina Fraga-Saenz.
The Housing Authority was adjourned at 5:25 pm.
CC/SA Minutes – 09/04/2024 5 PM 3
Items 7.3, 7.4, and 7.5 were pulled for discussion.
7) CONSENT CALENDAR
7.1) 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).
7.2) Receive and File the Monthly Investment Activity Reports for July 2024.
7.3) Approve the First Amendment to Agreement with Patriot Environmental Services, Inc. for as -needed biohazard clean -up and removal services, increasing the Agreement by $360,000 for a total not to exceed amount of $445,000 for the remainder of the contract term through June 2027.
Deputy Director of Public Works Hashemian presented the staff report.
There was Council and staff discussion on the encampment clean -up process, public and staff safety, and leading with compassion.
Motion: Approve the First Amendment to Agreement with Patriot Environmental Services, Inc. for as-needed biohazard clean-up and removal services.
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.
7.4) Approve Agreement with Monarch Landscape Holdings, LLC dba Terracare Associates for maintenance services at parks, facility grounds, and transit sites in an amount not to exceed $14,802,990 for the remaining nine months of Fiscal Year 2024-2025 and the subsequent four fiscal years for a total contract term of fifty-seven months.
Deputy Director of Public Works Hashemian presented the staff report.
Council and staff discussed the bidding process, local hire, the number of trees in the LMAD, graffiti, vandalism, and quality of life.
Motion: Approve Agreement with Monarch Landscape Holdings, LLC dba Terracare Associates for maintenance services at parks, facility grounds, and transit sites.
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.
CC/SA Minutes – 09/04/2024 5 PM 4
7.5) Approve a budget amendment of $601,718 for Antelope Valley Transit Authority operating costs for Fiscal Year 2024-2025.
Mayor Bishop recused himself since he has done business with AVTA.
Deputy Director of Public Works Hashemian presented the staff report.
Council and staff discussed the increase in contributed funds by JPA participants, inventory of bus stops and amenities, and ridership. Mr. Tompkins, Executive Director of AVTA, provided clarification on the increase in contributed funds by JPA participants and bus stop amenities.
Motion: Approve a budget amendment of $601,718 for Antelope Valley Transit Authority operating costs for Fiscal Year 2024-2025.
Moved by Andrea Alarcón, seconded by Laura Bettencourt.
Vote: Motion carried (4-0)
Yes: Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.
Mayor Bishop returned to the dais.
7.6) Approve the First Amendment to the agreement with Paragon Partners Consultants, Inc. for PN 653, SR 138 Widening 5th to 10th East Project, to increase the agreement by $25,420 for the total not to exceed the amount of $204,270 with an extension of 722 calendar days for a total of 1,357 calendar days.
7.7) Approve the minutes from the previous meeting.
Motion: Approve all items listed under the Consent Calendar except for items 7.3, 7.4, and 7.5.
Moved by Richard J. Loa, seconded by Eric Ohlsen.
Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.
8) PUBLIC HEARING
8.1) Public Hearing to receive Public Comments on the Draft Consolidated Annual Performance Evaluation Report (CAPER) for Fiscal Year 2023-2024; Review, approve and authorize the City Manager or her Designee to make necessary changes and submit the CAPER report to the U.S. Department of Housing and Urban Development (HUD) by September 28, 2024, in compliance with HUD Regulations.
Supervising Coordinator Nichols presented the staff report.
Mayor Bishop opened the Public Hearing.
Testimony: None.
CC/SA Minutes – 09/04/2024 5 PM 5
Mayor Bishop closed the Public Hearing.
Councilmember Alarcón asked questions regarding the unexpended funds for the tenant-based rental assistance program, public facilities, and infrastructure, the racial and ethnic composition of families assisted, the outreach program, and the action plan for targeting and informing Latino communities. Supervising Coordinator Nichols provided clarification. There was further discussion among the Council and staff regarding the information requested on the application and qualifications for the program. Mayor Pro Tem Loa requested a report back.
Motion: Approve the recommendations and findings as listed in the staff report Moved by Richard J. Loa, seconded by Eric Ohlsen.
Vote: Motion carried (5-0)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt, Andrea Alarcón.
9) APPOINTMENTS
9 . 1 ) City Council Nomination and Appointment of One (1) Member to the Mobile Home Park Rental Review Board.
Councilmember Alarcón asked Council to allow the applicants to speak.
Ms. Love introduced herself and spoke regarding her qualifications.
Councilmember Alarcón nominated Ms. Love; the motion died for lack of a second.
Motion: Appoint Ebonni Bernstein to the Mobile Home Park Rental Review Board
Moved by Austin Bishop, seconded by Richard J. Loa.
Vote: Motion carried (4-1)
Yes: Austin Bishop, Richard J. Loa, Eric Ohlsen, Laura Bettencourt.
No: Andrea Alarcón.
9 . 2 ) City Council Reappointment of Six (6) Commissioners to the Public Art Commission and Nomination and Appointment of One (1) Commissioner to fill the vacant seat for a Professional Artist.
The Public Art Commissioners came up and shared their experience while serving on the Commission and thanked staff.
Mayor Bishop thanked the Public Art Commission for their leadership.
Mayor Pro Tem Loa pointed out that artist, Michael De Medina created the sculpture of Larry Chimbole, the first mayor of Palmdale.
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Motion: Reappoint Nathaniel Ancheta, Doug Grove, Ayeasha Jones, Lisa Sarno, Warren Scherich, Edwin Vasquez as Commissioners to the Public Art Commission. Appoint Michael De Medina as a Commissioner.
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.
10) CITY MANAGER’S REPORT
City Manager Perez reported on the following: State of the City 2024; 19th Annual Kiwanis Duck Race September 6; GraceFest at the Palmdale Amphitheater September 6 and 7; Erick A. Garcia "You Are Enough" Foundation Candlelight Vigil at Poncitlan Square on September 10; Antelope Valley Wellness Expo at the Mall on September 14; Palmdale Playhouse 30th Anniversary on September 14; Tequila & Taco Festival September 21 and 22; and State Route 14 North L.A. County Safety & Mobility Improvement Project Scoping Meeting at Oasis Park on September 12.
11) SHERIFF’S REPORT
Captain Bardon reported on the following and announced upcoming events:
Response times for routine calls for service; Partnership with the City's Public Safety staff; Part 1 Crimes; Arrests; Firearm recovery; graffiti arrests; traffic enforcement and collision prevention; upcoming event honoring Deputy Ryan Clinkunbroomer with a 24-hour vigil on the one year anniversary of his death on September 16; Gun buyback event on September 20 in Poncitlan Square; Haunted House on October 19; and invited members of the community to participate in the Palmdale Sheriff's Department survey.
Council and Captain Bardon discussed the Code Enforcement partnership, the status of the virtual deputy, community engagement, and the haunted house hosted at the Palmdale Sheriff's Station.
12) COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE
AGENDA ITEMS
Council Member Alarcón reported on the following: conversations between Palmdale Regional Medical Center and Palmdale High School; the 1st Annual National Latina Day Celebration —The Antelope Valley Women's Empowerment Conference on August 30th.
Councilmember Ohlsen reported on the following: Homes4Families veteran housing key ceremony; meeting with High -Speed Rail Authority; Albe's Ice Cream grand opening; State of the City 2024; and spoke about the Palmdale Youth Soccer League donation of $5,600 from the City of Palmdale.
Mayor Pro Tem Loa reported on the following: Spanish Talk Radio; Homes4Families veteran housing key ceremony; Summer Concerts; IBEW NECA barbecue in City of Commerce; Generations Juried Art Exhibit Award ceremony; celebration of life for
CC/SA Minutes – 09/04/2024 5 PM 7
Alisha Semchuck; Dr. Smith hosted a reception honoring and welcoming the new commanders and directors for Plant 42 and Edwards Air Force Base; State of the City 2024; and Sav -on Drug Store on Tierra Subida will provide a vaccination program at SAVES.
Councilmember Bettencourt reported on the following: Generations Juried Art Exhibit Award ceremony; State of the City 2024; Avigilon United Systems Training that provides safety on City property; and Citizen Advisory Committee meeting on August 29th.
Mayor Bishop reported on the following: Family Movie Nights and Concerts; Ribbon cutting for Community Self Determination Institute Charter School; Homes4Families veteran housing key ceremony; Big Momma's Chicken & Waffles ribbon cutting ceremony; Auto Mall Dine & Drive; SAVES backpack distribution; Palmdale Youth Soccer League opening ceremony; State of the City 2024; Dinner with a Deputy; Coffee with a Cop; Community Advisory Committee (CAC) meeting; Movie nights; and spoke with residents regarding new street sweeping policy.
City Manager Perez spoke regarding the street sweeping policy and meetings with the public. Council and City Manager Perez discussed the street sweeping policy, street sweeping signage, and communicating information to the community.
Mayor Pro Tem Loa announced the upcoming release of a convicted sexual predator in Pearblossom and stated that the District Attorney is requesting victims of sexual assault and members of the public submit comments to
[email protected] by September 17, 2024. Additionally, Councilmember Alarcón stated to locate offenders near residents, check the Megan's Law website. There was further Council and City Attorney discussion regarding the release.
13) NON-AGENDA PUBLIC COMMENTS:
The following individuals provided public input: Eugene Hernandez commented on the CAPER report and an investigation on the League of United Latin American Citizens (LULAC) in Texas; Iris Rios and Oscar Carrasco spoke about fatalities and accidents occurring at R -8 and 20th Street East and requested the installation of a stop sign. Councilmember Alarcón requested a traffic assessment study at R-8 and 20th Street East; Marcos Alvarez spoke about the conduct of Council and a solution for working together; Roger Soderstedt commented on Section 8 tenants; Marsha Furman commented regarding distributing the Palmdale Magazine in Spanish, changing the typeset, and street sweeping.
CC/SA Minutes – 09/04/2024 5 PM 8
14) ADJOURNMENT
Mayor Bishop adjourned the meeting at 7:15 pm in honor of Stephen Wood, Alisha Semchuck, and Ronaldo Rios. He stated that the next meeting will be held on Wednesday, September 18, 2024, at 5:00 pm in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
PASSED, APPROVED, and ADOPTED this 18th day of September 2024.
Austin Bishop, Mayor
ATTEST:
Rochelle Scott, City Clerk
City Council Staff Report
DATE: SEPTEMBER 18, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
ECONOMIC DEVELOPMENT DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE PUBLIC TESTIMONY REGARDING THE RENEWAL OF
THE PALMDALE TOURISM IMPROVEMENT DISTRICT
RECOMMENDATION
Staff recommends that the City Council receive public testimony regarding the renewal of the Palmdale Tourism Improvement District (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 geogr aphic area.
The key difference between TIDs and other 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;
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 the 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 t hat both visitors and residents c an enjoy. By continuing to utilize funds to host signature events, Report to Mayor and City Council
Re: PTID Renewal
September 18, 2024
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 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.
After this public meeting is held, the next steps are as follows:
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.
Report to Mayor and City Council
Re: PTID Renewal
September 18, 2024
FISCAL IMPACT
$0; There is no fiscal impact associated with this action. If the renewal of the PTID is approved, the City would 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.
Prepared by: Megan Taggart, Deputy 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
PTID Management District Plan 7-10-24
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
(800) 999-7781
www.civitasadvisors.com
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
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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
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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)
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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)
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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
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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.
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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.
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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