Palmdale City Council
June 17, 2025

LEGISLATIVE BODY

RICHARD J. LOA, MAYOR

LAURA BETTENCOURT, MAYOR PRO TEM

AUSTIN BISHOP, COUNCILMEMBER

ERIC OHLSEN, COUNCILMEMBER
ANDREA ALARCÓN, COUNCILMEMBER

1. CALL MEETING TO ORDER

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

2. ROLL CALL

MAYOR LOA, MAYOR PRO TEM BETTENCOURT, COUNCILMEMBERS BISHOP,

OHLSEN, ALARC
Ó
N

COMMISSIONERS FRAGA-SAENZ, BETTS

3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

CITY COUNCIL

SUCCESSOR AGENCY

HOUSING AUTHORITY

INDUSTRIAL DEVELOPMENT AUTHORITY

PALMDALE AIRPORT AUTHORITY

PALMDALE CIVIC AUTHORITY

PALMDALE FINANCING AUTHORITY

CITY COUNCIL CHAMBER
38300 SIERRA HIGHWAY

SUITE B
PALMDALE, CA 93550
TUESDAY, JUNE 17, 2025
5:00 PM
www.cityofpalmdaleca.gov

WELCOME
City Council
Tuesday, June 17, 2025

4. PRESENTATIONS

4.1 iSERVE Youth Leadership Academy 2025.

PPT iSERVE Youth Leadership Academy 2025.pptx

5. PUBLIC COMMENTS
The public is allotted to speak a total of three (3) minutes on each section of the agenda i.e. Consent Calendar(s), Appointment-New Business, and Closed Session. As specified in the Brown Act, a speaker utilizing a translator will receive twice the amount of time specified. Any person who would like to address the Legislative Body on any agendized item may complete a speaker card for the City Clerk and identify the agenda item you would like to discuss.

6. JOINT CONSENT CALENDAR CC/HA
All matters listed under the Joint Consent Calendar will be enacted by one motion unless an item(s) is pulled by Council/Authority, in which case the item(s) will be removed from the Joint
Consent Calendar and will be considered separately following this portion of the Agenda.

6.1 Approve the minutes from the previous meetings.

HA Mins 02 18 2025.pdf

HA Mins 05 06 2025.pdf

HA Mins 05 21 2025.pdf

CC HA Mins 06 03 2025.pdf

7. 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 Consent Calendar and will be considered separately following this portion of the Agenda.

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 Annual Report on Development Impact Fees for the Fiscal Year Ended June 30, 2024, and adopt findings to commit funds held in the Littlerock Drainage Fee Fund, Fire Facilities Fund, and Sewer Upgrade Fee Fund.

SR Annual Report on Development Impact Fees for the Year Ended June 30, 2024.docx

Rpt. Annual Report on Development Impact Fees for Year Ended June 30, 2024.pdf

7.3 Adopt Resolution No. CC 2025-044, a Resolution of the City Council of the City of Palmdale establishing an appropriations limit for Fiscal Year 2025-26 pursuant to City Council
Tuesday, June 17, 2025
Article XIII B of the California Constitution and repeal Resolution No. CC 2024- 053.

SR GANN Appropriation Limit FY 2025-26.docx

Reso. No. CC 2025-044 GANN Appropriation Limit FY 2025-26.docx

7.4 Adopt Resolution No. CC 2025-045, a Resolution of the City Council of the City of Palmdale designating by title and name those officials who are authorized to sign checks and warrants, and repeal Resolution No. CC 2025-003, and Adopt Resolution No. SA 2025-002, a Resolution of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale designating by title and name those officials who are authorized to sign checks and warrants, and repeal Resolution No. SA 2025-001.

SR Check Signers City and SA.docx

Reso. No. CC 2025-045 Check Signers City.docx

Reso. No. SA 2025-002 Check Signers SA.docx

7.5 Approve Purchase Order 20260000 with Amazon Capital Services, Inc., DBA Amazon Business, in an amount not to exceed $268,000 for FY 2025-26.

SR PO 20260000 Amazon Capital Services.docx

PO No. 20260000 Amazon Capital Services.pdf

Agrmt No. R-TC-17006.pdf

Argmt No. R-TC-17006 Amendment 1.pdf

Agrmt No. R-TC-17006 Extension 1.pdf

Agrmt No. R-TC-17006 Extension 2.pdf

7.6 Approve Operating Covenant Agreement with Antelope Valley Shop, LLC., to create a partnership for revitalization, security, and operational costs associated with the Antelope Valley Mall.

SR Agrmt No. A-8797 Operating Covenant Agreement with Antelope Valley Shop, LLC.docx

Agrmt No. A-8797 Operating Covenant
Agreement with Antelope Valley Shop,
LLC.pdf

7.7 Approve Down-Payment Assistance Program.

SR Down-Payment Assistance Program.docx

Down-Payment Assistance Program.pdf

7.8 Accept Notice of Completion (NOC) for Public Drainage Improvements for Sierra Highway Storage located at 37550 Sierra Highway.

SR NOC Drainage Improvements-Sierra Highway Mini Storage, LLC.docx

NOC Drainage Improvements-Sierra Highway Mini Storage, LLC.docx

Exh A List of Completed Public Improvements.docx

Site Map Location.docx

Site Photo.docx

7.9 Approve agreement with Psomas for design services for PN 906, Avenue T Street City Council
Tuesday, June 17, 2025
Improvement Project, for a total not to exceed amount of $801,141 for a term of 18 months from the date of the Notice to Proceed.

SR Agrmt No. A-9346 with PSOMAS.docx

Agrmt No. A-9346 with PSOMAS.pdf

7.10 Accept Notice of Completion (NOC) for PN 741, East Avenue S-8 and 40th Street East Roundabout Project.

SR NOC PN 741, East Avenue S-8 and 40th Street East Roundabout.docx

NOC PN 741, East Avenue S-8 and 40th Street East Roundabout.docx

Project Photos PN 741, East Avenue S-8 and 40th Street East Roundabout.pptx

7.11 Accept Notice of Completion (NOC) for PN 780, Avenue Q-12 Sidewalk Gap Closure Project.

SR NOC PN 780, Ave Q-12 Sidewalk Gap Closure.docx

NOC PN 780, Ave Q-12 Sidewalk Gap Closure.docx

Project Photo PN 780, Ave Q-12 Sidewalk Gap Closure.pdf

8. JOINT PUBLIC HEARING CC/SA/HA/IDA/PAA/PCA/PFA

8.1 Adopt Joint Resolution of the City Council of the City of Palmdale No. CC 2025- 046, Successor Agency to the Community Redevelopment Agency of the City of Palmdale No. SA 2025-003, Palmdale Civic Authority No. PCA 2025-001, Housing Authority of the City of Palmdale No. HA 2025-002, Industrial Development Authority No. IDA 2025-001, Palmdale Airport Authority No. PAA 2025-001, Palmdale Financing Authority No. PFA 2025-001, collectively the approving Legislative Bodies (ALB) adopting the City of Palmdale's Annual Budget for Fiscal Year 2025-26, and approving revenue and expenditure adjustments to Fiscal Year 2024-25; Adopt Resolution No. CC 2025-047, a Resolution of the City Council of the City of Palmdale amending the City's Classification and Pay Plan for general positions; Adopt Resolution No. CC 2025- 048, a Resolution of the City Council of the City of Palmdale amending the City's Classification and Pay Plan for bargaining unit positions; Adopt Resolution No.

CC 2025-049, a Resolution of the City Council of the City of Palmdale amending the City's Classification and Pay Plan for Parks and Recreation Unbenefited positions; and Adopt Resolution No. CC 2025-050, a Resolution of the City Council of the City of Palmdale amending the City's Classification and Pay Plan for Y-Rated positions.

SR FY 2025-26 Proposed Operating and Capital Budget.docx

Reso. Nos. CC 2025-046, SA 2025-003, PCA 2025-001, HA 2025-002, IDA 2025- 001, PAA 2025-001, PFA 2025-001.docx

Atch FY 2025-26 Budget at a Glance.pdf

Atch FY 2025-26 Proposed Operating and Capital Budget.pdf

Reso. No. CC 2025-047 General Classification and Pay Plan.docx

Exh 1 General Classification and Pay Plan FY 2025-26.pdf City Council
Tuesday, June 17, 2025

Exh 2 General Salary Schedule FY 2025-26.pdf

Reso. No. CC 2025-048 BU Classification and Pay Plan.docx

Exh 1 BU Classification and Pay Plan FY 2025-26.pdf

Exh 2 BU Salary Schedule FY 2025-26.pdf

Reso. No. CC 2025-049 Parks and Recreation Unbenefited Classification and Pay Plan.docx

Exh 1 P&R Unbenefited Classification and Pay Plan FY 2025-26.pdf

Exh 2 P&R Unbenefited Salary Schedule FY 2025-26.pdf

Reso. No. CC 2025-050 Y-Rated Classification and Pay Plan.docx

Exh 1 Y-Rated Classification and Pay Plan FY 2025-26.pdf

Exh 2 Y-Rated Salary Schedule FY 2025-26.pdf

9. PUBLIC HEARING

9.1 Adopt Resolution No. CC 2025-043, a Resolution of the City Council of the City of Palmdale restating in its entirety the City of Palmdale Master Schedule of Fees and Penalties and repealing all prior enactments inconsistent with this Resolution.

SR FY 2025-26 Master Schedule of Fees and Penalties.docx

Reso. No. CC 2025-043 Master Schedule of Fees and Penalties.docx

Atch FY 2025-26 Master Schedule of Fees and Penalties.pdf

10. CITY MANAGER’S REPORT

11. SHERIFF'S REPORT

12. NON-AGENDA PUBLIC COMMENTS
:

Now is the time for public participation on items not listed on the agenda. Each speaker is allotted three (3) minutes total.

13. COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE AGENDA ITEMS

14. ADJOURN
meeting to July 1, 2025, 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
Tuesday, June 17, 2025

D E P A R T M E N T O F P A R K S A N D R E C R E A T I O N iSERVE
Youth Leadership Academy 2025

CITY COUNCIL MEETING
JUNE 17, 2025
iSERVE Youth Leadership Academy
• Started: 2024
• Purpose: Empower youth ages 12 to 17 to build leadership skills and participate in meaningful community service projects that positively impact the Palmdale community.
• Cohorts: 2024 - 21 Participants
2025 - 30 Participants
Introduction to City
Departments and Civic
Service Opportunities

Teaching Job Readiness
and Interview Skills

Leadership Development

Fostering Community
Engagement and
Participation

2025 Graduation

iSERVE Graduate Ongoing Opportunities
• iLEAD Palmdale Youth Conference
• Planning
• Outreach
• Fight Fentanyl Antelope Valley Campaign Youth Advisory Committee • Youth Ambassador Program
Next iSERVE Cohort:
• Applications open from October 15 to November 14, 2025. • Program begins January 7 to January 8, 2026.
• For more information: visit CityofPalmdaleCA.gov/Youth

1 MINUTES

CITY COUNCIL/SA/HA/IDA/PAA/PCA/PFA

CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B

PALMDALE, CALIFORNIA
FEBRUARY 18, 2025

www.cityofpalmdale.org

1) CALL MEETING TO ORDER

Mayor Loa called the meeting to order at 5:00 pm.

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

2) ROLL CALL MAYOR LOA, MAYOR PRO TEM BETTENCOURT,
COUNCILMEMBERS BISHOP, OHLSEN, ALARCÓN COMMISSIONERS FRAGA-

SAENZ, BETTS

PRESENT: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Christina Fraga-Saenz, Dianne Betts.

ABSENT: Andrea Alarcón.

3) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

Councilmember Ohlsen led the pledge of allegiance.

4) PUBLIC COMMENTS

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

Marsha Furman commented in support of Item 5.3.

City Manager Perez removed Item 9.1 from the agenda.

5) CONSENT CALENDAR

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) Receive and file the monthly and quarterly investment activity report for December 2024.

5.3) Approve Agreement with Proslide Technologies Inc., to refurbish DryTown Water Park’s Dusty’s Mindshaft Racer Slide for the not to exceed amount of $626,000 for a term of 90 days from the Notice to Proceed.

5.4) Adopt Resolution No. CC 2025-018, a Resolution of the City Council of the City of Palmdale declaring a Housing Crisis in response to recent fires.

2 5.5) Approve the Third Amendment to the Legal Services Agreement with Civica Law Group, APC, to increase the agreement amount by $280,000, for Fiscal Year (FY) 2024-25 for a contract term through March 6, 2028.

5.6) Approve Second Amendment to Agreement with SiFi Networks Palmdale, LLC for adjustments to construction methods for the installation of fiber optic in the public right-of-way and for increase to service costs.

5.7) Adopt Resolution No. CC 2025-009, a Resolution of the City Council of the City of Palmdale declaring its intention to conduct a public hearing to consider the vacation of portions of 8th Street East south of Rancho Vista Boulevard and north of East Avenue P-8.

5.8) Receive and file the Sanitary Sewer Management Plan (SSMP) Audit.

5.9) Award and Approve agreement with Golden West Fence for Landscape Maintenance District (LMD) wrought iron fence replacement services in an amount not to exceed $138,820 for a term of 180 working days from the date of the Notice to Proceed.

5.10) Notice of Completion (NOC) - Accept public street, sewer, and, drainage improvements for Tract 54058-04 located at 20th Street West and Avenue P-

8. 5.11) Notice of Completion (NOC) - Accept public sewer and drainage improvements for Tract 60732 located at 20th Street West and Quick Street.

5.12) Approve Requisition No. 250823 with Plumber’s Depot, Inc. for the purchase of one WM350 Compact Steerable Pipe Transporter and one MZ350 OZ3 CCTV Camera for a total not to exceed amount of $236,202.

5.13) Approve the minutes from the previous meeting.

Motion: Approve all items listed under the Consent Calendar.

Moved by Austin Bishop, seconded by Laura Bettencourt.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen.

Absent: Andrea Alarcón.

6) JOINT CONSENT CALENDAR CC/SA/HA/IDA/PAA/PCA/PFA

6.1) Review and Approve the Fiscal Year 2024-25 Mid-Year Budget Adjustments, and Adopt Resolution No. CC 2025-021, a Resolution of the City Council of the City of Palmdale amending the City’s Classification and Pay Plan for general positions.

6.2) Approve the minutes from the previous Housing Authority meeting.

3 Motion: Approve all items listed under the Joint Consent Calendar.

Moved by Christina Fraga-Saenz, seconded by Austin Bishop.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen,

Absent: Andrea Alarcón.

Vote: Motion carried (6-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Christina Fraga- Saenz, Dianne Betts.

Absent: Andrea Alarcón.

7) PUBLIC HEARING

7.1) Public Hearing to review the Substantial Amendment to the 2024 -2025 Annual Action Plan, the proposed Section 108 Application and the Expenditure of Community Development Block Grant (CDBG) Funds; Receive public comment in compliance with the requirements of the U.S. Department of Housing and Urban Development (HUD) and the City’s Citizen Participation Plan; Approve the Substantial Amendment to the 2024 -2025 Action Plan; and Adopt Resolution No. CC 2025 -007, a Resolution of the City Council of the City of Palmdale Authorizing the City Manager or her designee to submit the Section 108 Loan Guarantee Application to HUD for a $7,134,000 Loan for South Antelope Valley Emergency Services (SAVES) Facility Improvements.

Mayor Loa opened the Public Hearing.

City Clerk Scott read the title of Resolution No. CC 2025-007.

Public Testimony: David Laird discussed the benefits of the SAVES food distribution program.

Director of Housing Reyes provided detailed information on the 2024-2025 Action Plan.

Councilmember Bishop discussed the SAVES building expansion and the services it offers to the community.

Mayor Loa spoke regarding the requested loan and services provided at SAVES.

Motion: Approve the Substantial Amendment to the 2024-2025 Action Plan and adopt Resolution No. CC 2025-007.

Moved by Eric Ohlsen, seconded by Austin Bishop.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen.

Absent: Andrea Alarcón.

4 7.2) Introduction and Adoption of Ordinance No. 1652, an Ordinance of the City Council of the City of Palmdale approving General Plan Amendment 23 -0003, Zone Change 23 -0003, Tentative Parcel Map 84001, Conditional Use Permit 22-006 and Site Plan Review 22-007 to modify the General Plan Land Use designation and zone from Mixed Use 2 to Neighborhood Commercial; subdivide 5.69 acres into two lots to facilitate the construction of a ten -island fueling station, a 7,258 -square-foot grocery store, and a 2,127 -square-foot drive-through carwash located on the northwest corner of East Avenue R and 25th Street East.

City Clerk Scott read the title of Ordinance No. 1652 and Resolution No. CC 2025-011.

Mayor Loa opened the Public Hearing.

The following individuals spoke in opposition to the project location: Mabel Flowers, Stephanie Sterba, Carl Flowers, Mickey Martinez, Monica Dopson, and Marsha Furman.

Mayor Loa closed the Public Hearing.

Planning Manager Magana presented the staff report.

Michael Ramirez from Beyond Food Mart talked about the fuel review and security measures. He also mentioned that there will be no sales of liquor or tobacco at the location.

A motion was made and passed to introduce Ordinance No. 1652.

Mayor Loa asked about traffic concerns, and Planning Manager Magana explained the traffic study, entrances and exits.

Mayor Pro Tem Bettencourt asked about bike lanes, and Planning Manager Magana confirmed there would be bike lanes.

Councilmember Ohlsen asked about the land next to the project and if there would be a buffer, and Planning Manager Magana confirmed there would be one.

Mayor Loa asked about the walls separating the properties, and Planning Manager Magana confirmed the walls would separate the properties.

Councilmember Bishop asked about the number of gas pumps, hydrogen pumps, electric car charging stations, and property setbacks. Planning Manager Magana explained the setbacks.

Councilmember Ohlsen asked about the project location, and Mr. Ramirez discussed the location, traffic study, and CEQA report.

Mayor Loa inquired about emissions, and Planning Manager Magana discussed air quality management thresholds for various gases and particles.

5 Mayor Pro Tem Bettencourt mentioned concerns about vapors coming through brick walls.

Councilmember Ohlsen asked to table the item for further discussion.

Motion: Table item to March 4, 2025.

Moved by Eric Ohlsen, seconded by Austin Bishop.

Vote: Motion carried (3-1)
Yes: Richard J. Loa, Austin Bishop, Eric Ohlsen.

No: Laura Bettencourt.

Absent: Andrea Alarcón.

7.3) Introduction and Adoption of Ordinance No. 1653, an Ordinance of the City Council of the City of Palmdale approving Comprehensive Development 23 - 0002, and Adopt Resolution No. CC 2025 -012 approving Conditional Use Permit 23-0018, and Vesting Tentative Tract Maps 23 -0003 (VTTM 51508 -3) and 23-0004 (VTTM 63145) to facilitate the development of approximately 75 acres for the purpose of constructing 627 single-family residences within Phase 1B of the Ritter Ranch Specific Plan generally located to the east and west of Westland Drive /Ranch Center Drive and south of City Ranch Road.

City Clerk Scott read the title of Ordinance No. 1653 and Resolution No. CC 2025-012.

A motion was made and passed to introduce Ordinance No. 1653.

Mayor Loa opened the Public Hearing

Public Testimony: Roger Soderstedt spoke regarding the water supply for Ritter Ranch; and Karl Pearcy spoke regarding the lack of infrastructure for this project and traffic.

Mayor Loa closed the Public Hearing.

Interim Director of Economic and Community Development Taggart presented the staff report.

Peter Guiterrez, representing the applicant, thanked staff and spoke about Phase 1B of the project including the water supply analysis and traffic study.

Ramiro Albarran, RDR Holdings, spoke about Phase 1B and adding to Palmdale's housing stock.

Mayor Pro Tem Bettencourt asked about the average size lot for the homes.

Interim Economic and Community Development Director Taggart responded that the average lot size is 5,000 - 6,000 sq ft and some larger.

Councilmember Bishop spoke about Ritter Ranch being a quality project, and in support of development.

Councilmember Ohlsen spoke regarding the housing crisis, Trader Joe's jobs,

6 Aerospace Industry jobs, and in support of growth and development . He also expressed his concern regarding the lack of a fire station.

Ramiro Albarran and Peter Guiterrez discussed their conversation with the fire department regarding a fire station, building codes , fire-resistant materials, underground utilities, vegetation management, and water infrastructure.

Councilmember Bishop asked if new homes are required to have fire sprinkler systems. Mr. Guiterrez discussed the current requirements for new developments, including fire sprinkler systems, fire -resistant roofs, fire -rated walls, and an evacuation plan. Councilmember Bishop also spoke regarding the benefits of a Homeowner Association.

Mayor Loa spoke in support of the project and the housing crisis in Palmdale.

Motion: Adopt Ordinance No. 1653 and Resolution No. CC 2025-012.

Moved by Austin Bishop, seconded by Eric Ohlsen.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen.

Absent: Andrea Alarcón.

8) APPOINTMENT

8.1) Appoint a member of the Council to serve as the delegate on the Southern California Association of Governments (SCAG) Regional Council District 43 for a two-year term.

Motion: Appoint Councilmember Bishop to serve as the delegate on the SCAG Regional Council District 43 for a two-year term.

Moved by Eric Ohlsen, seconded by Laura Bettencourt.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen.

Absent: Andrea Alarcón.

9) NEW BUSINESS

9.1) Review the Fair Political Practices Commission ("FPPC") biannual Election Local Contribution Limitation; City Council consideration of removal of campaign contribution limitations for City of Palmdale Elections.

This item was removed from the agenda.

10) CITY MANAGER’S REPORT

City Manager Perez announced the Seasons of Service event at Barrel Springs Park and Ride on February 22, Sickle Cell Awareness Family Day on February 22, and the launching of the City’s Next Generation Business Watch Program.

7 11) SHERIFF’S REPORT

Captain Bardon reported on response times for routine calls, calls for service, partnership with Public Safety staff, Partners Against Crime (PAC) Team arrests, Part 1 crimes, gang-related shootings, graffiti arrests, traffic collisions, citations, and virtual deputy application. He announced that a Spanish-speaking Q & A is scheduled for March 21 regarding Senate Bill 54 (SB 54) state law that limits the use

of state and local resources for federal immigration enforcement.

Mayor Loa asked Captain Bardon about public demonstration protocols. Captain Bardon provided details on public demonstration protocols.

Councilmember Bishop discussed burglaries and break-ins of local businesses.

Captain Bardon provided limited information on recent burglaries and recommended lighting and security technology. A film that prevents glass from breaking was further discussed.

Councilmember Ohlsen discussed the steps that were taken to mirror the City's municipal violations to match the penal code.

12) NON-AGENDA PUBLIC COMMENTS:

The following individuals provided public input: Karen Lindsay spoke against illegal immigration and the use of Palmdale resources for it; Mikki Martinez supported legal immigration; Helen Velador invited Council to Palmdale School District's Read Across America event in March; Rich Gallego asked for a resolution supporting lower fuel costs in California and spoke in support of quarterly town hall meetings; Steve Hill requested the removal of Captain Bardon from the Palmdale Sheriff's Station; Michelle H. asked for a resolution declaring Palmdale a non -sanctuary city; Michelle Royal requested a fire station for the Anaverde/Ritter Ranch area; Yul Gevargis commented in support of legal immigration and asked for a resolution declaring Palmdale a non -sanctuary city; Edith and Paul Roman opposed using City resources for illegal immigrants, Jill Mrantz was against Palmdale becoming a sanctuary city; Michael Ross spoke about Item 7.1, the tax increase, and Council town hall meetings; Rodger Soderstedt opposed using City funds for the Auto Mall, suggested using funds for animal services, and asked for town hall meetings.

13) COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE

AGENDA ITEMS

Councilmember Bishop attended the Justice Sunday performance at the Palmdale Playhouse and reported that at the Antelope Valley Air Quality Management District (AVAQMD) meeting, funds were approved for a charging station at the park and ride on Avenue S.

Councilmember Ohlsen talked about the memorial for Dave Gomez and emphasized the importance of jobs with good pay and pensions. He spoke about his meeting with State Treasurer Fiona Ma. He also shared plans to host a town hall in his district in the future.

8 Mayor Pro Tem Bettencourt discussed the town hall that was held in her district and the gas tax response from the California Contract Cities Association.

Mayor Loa spoke about participating in the memorial for Dave Gomez, his trip to Washington, D.C., and Congressman Whitesides and Senator Padilla's support for the grade separation project at Rancho Vista and Sierra Highway.

Mayor Pro Tem Bettencourt thanked Pastor Ross, and the churches involved in the Pray Across the Antelope Valley event.

Councilmember Bishop asked about the timeline for the roundabout on 40th Street East. City Manager Perez said they are waiting for Southern California Edison to complete their part. Director of Public Works Torres added that the project would be finished in two weeks.

14) PRESENTATION BY CITY ATTORNEY

City Attorney Curley noted that Item 14.2 required updating and the Government Code should be the same as Item 14.1.

14.1) CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Los Angeles County Superior Court Case No. 22STCV01269
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

14.2) CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION The existing facts and circumstances that constitute a significant exposure to litigation are detailed in the following claim received by the City, which is available for public inspection pursuant to Government Code Section 54956.9(d)(1):

Stoneham v. City of Palmdale et al, Claim Nos. L22-075, 076 and 0155

15) ANNOUNCEMENT BY CITY ATTORNEY

Closed Session was held from 7:03 pm - 8:11 pm.

City Attorney Curley announced that the Council was updated on all items, gave direction to staff, and there were no further reportable actions.

9 16) ADJOURNMENT

Mayor Loa adjourned the meeting at 8:13 pm to March 4, 2025, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

PASSED, APPROVED, and ADOPTED this 17th day of June 2025.

_________________________
Richard J. Loa, Mayor

ATTEST:

_________________________
Rochelle Scott, City Clerk
1 MINUTES

CITY COUNCIL/SA/HA/IDA/PAA/PCA/PFA

CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B

PALMDALE, CALIFORNIA
MAY 6, 2025

www.cityofpalmdale.org

1) CALL MEETING TO ORDER

Mayor Loa called the meeting to order at 5:01 pm.

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

2) ROLL CALL MAYOR LOA, MAYOR PRO TEM BETTENCOURT,
COUNCILMEMBERS BISHOP, OHLSEN, ALARCÓN

COMMISSIONERS FRAGA- SAENZ, BETTS

PRESENT: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón, Christina Fraga-Saenz, Dianne Betts.

ABSENT: None.

3) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

Mayor Pro Tem Bettencourt led the Pledge of Allegiance.

City Manager Pro Tem Mendez pulled items 4.2 and 8.1 and announced they would be heard at a later date.

4) PRESENTATIONS

4.1) Parks and Recreation Summer Highlights.

Director of Parks and Recreation Smith provided highlights and updates on the Summer programs.

4.2) Update on Fight Fentanyl Antelope Valley Campaign and Recognition of Palmdale High School Fentanyl Awareness PSA.

This item was pulled from the agenda and was not heard.

5) PUBLIC COMMENTS

None.

Councilmember Bishop pulled items 6.3, 6.11, and 6.13. Mayor Loa pulled items

6.10 and 6.12.

2 6) CONSENT CALENDAR

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

6.2) Receive and File the Monthly and Quarterly Investment Reports for March 2025.

6.3) Adopt Resolution No. CC 2025-036, a Resolution of the City Council of the City of Palmdale approving the Palmdale Film Incentive Program; and Approve Memorandum of Understanding (MOU) with Visit Palmdale.

Director of Economic and Community Development Taggart presented the staff report and spoke about the film incentive program.

Mayor Pro Tem Bettencourt and Councilmember Bishop expressed their support for the item and the FAM (familiarization) tours in Palmdale.

David Halver, Film Liaison, spoke about the filming reputation that has been developed in Palmdale.

Councilmember Alarcón discussed the current permitting process and suggested exploring the implementation of an electronic permitting system.

Councilmember Ohlsen discussed the challenges filmmakers face related to insurance requirements, and Mrs. Taggart provided additional information on the matter.

Motion: Adopt Resolution No. CC 2025-036, a Resolution of the City Council of the City of Palmdale approving the Palmdale Film Incentive Program; and Approve Memorandum of Understanding (MOU) with Visit Palmdale.

Moved by Austin Bishop, seconded by Andrea Alarcón.

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

6.4) Adopt Resolution No. CC 2025-038, a Resolution of the City Council of the City of Palmdale to Restate the Authorized Signatory and Receive the State of California Department of Housing and Community Development Permanent Local Housing Allocation (PLHA) Program Funds.

6.5) Adopt Resolution No. CC 2025-039, a Resolution of the City Council of the City of Palmdale to accept the Los Angeles County Measure A Local Solutions Funds.

6.6) Approve agreement with Henisey Electric to provide temporary electrical and general services for Special Events for a total not to exceed amount of $535,000 for a term of three years with the option to extend two one-year terms.

3 6.7) Approve the Second Amendment to Agreement with Applied Research Associates, Inc., for professional services for PN 711, pavement management program, increasing the ongoing Agreement by $150,000 for a total not to exceed and not guaranteed amount of $650,000.

6.8) Award agreement with All American Building Services for construction services for PN 862, Marie Kerr Park Swim Deck Expansion Project for a total not to exceed amount of $467,195 for a term of 50 working days from the date of the Notice to Proceed.

6.9) Approve agreement with RHA Landscape Architects -Planners, Inc., for design services for PN 871, Oasis Park basin upgrades project for preliminary engineering/design for a total not to exceed amount of $306,597 for a term of 12 months from the date of the Notice to Proceed.

6.10) Award agreement with JT Construction Group, Inc., for construction services for PN 887, Marie Kerr Park Best of the West Concession Stand Project for a total not to exceed amount of $321,193 for a term of 45 working days from the date of the Notice to Proceed.

Director of Public Works Torres presented the staff report.

Mayor Loa spoke about the Best of the West project.

Motion: Award agreement with JT Construction Group, Inc., for construction services for PN 887, Marie Kerr Park Best of the West Concession Stand Project.

Moved by Richard J. Loa, seconded by Austin Bishop.

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

6.11) Award agreement with Manhole Adjusting, Inc., for construction services for PN 911, FY 2025-26 local street resurfacing project for a total not to exceed amount of $5,677,916 for a term of 90 working days from the date of the Notice to Proceed.

Councilmember Bishop addressed resident complaints concerning the quality of work completed by the contractor on a past project. Director of Public Works Torres stated that the issue would be addressed by assigning a full -time inspector to the project. Council and staff discussed penalties for contractors failing to meet established standards.

Motion: Award agreement with Manhole Adjusting, Inc., for construction services for PN 911, FY 2025-26 local street resurfacing project.

Moved by Austin Bishop, seconded by Laura Bettencourt.

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

4 6.12) Adopt Resolution No. CC 2025-037, a Resolution of the City Council of the City of Palmdale adopting a list of projects for FY 2025-26 funded by Senate Bill 1:
the Road Repair and Accountability Act of 2017.

Mayor Loa pointed out that Area 1 is Avenue R (25th Street East to 55th Street East) and Area 2 is Avenue R-8 (35th Street East to 45th Street East). Director of Public Works Torres mentioned the project timeline.

Councilmember Alarcón and Mayor Pro Tem Bettencourt inquired about the public notification process, and the Director of Public Works provided an overview of the procedures involved. Discussion ensued regarding repairing roads.

Motion: Adopt Resolution No. CC 2025-037, a Resolution of the City Council of the City of Palmdale adopting a list of projects for FY 2025-26 funded by Senate Bill 1: the Road Repair and Accountability Act of 2017.

Moved by Austin Bishop, seconded by Andrea Alarcón.

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

6.13) Award and approve agreement with Landscape Connection Group Inc., for turf removal and replacement projects at Marie Kerr and Desert Sands Parks for a total not to exceed amount of $167,000 for a term of six months from the date of Notice to Proceed.

Councilmember Bishop recused himself and stepped away from the dais as he had done business with Landscape Connection Group Inc.

Motion: Award and approve agreement with Landscape Connection Group Inc., for turf removal and replacement projects at Marie Kerr and Desert Sands Parks.

Moved by Andrea Alarcón, seconded by Eric Ohlsen.

Vote: Motion carried (4-0)
Yes: Richard J. Loa, Laura Bettencourt, Eric Ohlsen, Andrea Alarcón.

Councilmember Bishop returned to the dais.

6.14) Accept Notice of Completion (NOC) for PN 869 - Arterial Road Resurfacing Project on Palmdale Boulevard between 70th Street East and 90th Street East.

6.15) Approve the minutes from the previous meeting.

Motion: Approve all items listed under the Consent Calendar except items 6.3, 6.10,

6.11, 6.12, and 6.13.

Moved by Eric Ohlsen, seconded by Austin Bishop.

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

5 7) JOINT CONSENT CALENDAR CC/SA/HA/IDA/PAA/PCA/PFA

7.1) Receive and file the Annual Comprehensive Financial Reports for the year ended June 30, 2024, for the City of Palmdale, the Housing Authority of the City of Palmdale, the Palmdale Financing Authority, and the Palmdale Community Foundation.

Public Comments: None.

Director of Operations Samson presented the staff report.

Motion: Receive and file the Annual Comprehensive Financial Reports for the year ended June 30, 2024, for the City of Palmdale, the Housing Authority of the City of Palmdale, the Palmdale Financing Authority, and the Palmdale Community Foundation.

Moved by Laura Bettencourt, seconded by Austin Bishop.

Vote: Motion carried (7-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón, Christina Fraga-Saenz, Dianne Betts.

8) APPOINTMENTS

8.1) Appoint seven (7) members and two (2) alternates to the Measure AV Oversight Committee.

This item was pulled from the agenda and was not heard.

9) PUBLIC HEARING

9.1) Public Hearing to receive Public Comments on the Draft 2025-29 Consolidated Plan and 2025 -26 Action Plan; Review and Adopt Resolution No. 2025-035 A Resolution of the City Council of The City of Palmdale Approving the 2025-2029 Consolidated Plan and the 2025-2026 Action Plan; Accepting CDBG and Home Grant Funds for Fiscal Year 2025-26; and Authorizing the City Manager to submit and execute the application for Federal Assistance, required certifications, all related documents, and agreements with sub- recipients.

Mayor Loa opened the Public Hearing

City Clerk Scott read the title of Resolution No. CC 2025-035.

Analyst Bartlett provided a detailed overview of the Consolidated Plan and 2025- 26 Action Plan.

Testimony: None

Councilmember Alarcón asked questions about the carryover of CDBG and HOME grant funds and geographic distributions. Analyst Bartlett explained the carryovers, and David Munoz, LDM associates, spoke about the geographic distributions. Discussion ensued regarding the geographic distribution restrictions.
6 Mayor Pro Tem Bettencourt spoke regarding the signature authority for documents, Analyst Bartlett provided clarification on the guidelines for signature.

Councilmember Ohlsen inquired about strategies for engaging citizens, and Analyst Bartlett outlined the process.

Councilmember Bishop spoke about the allocation and programming of CDBG funds.

Mayor Loa discussed the increase in the number of unhoused individuals and the allocation of CDBG funds. Director of Housing Reyes discussed the percentage of CDBG funds that may be allocated to support unhoused populations and outlined additional available funding sources.

Further discussion took place regarding the unhoused population, mental health challenges, and the rental assistance program.

Motion: Adopt Resolution No. CC 2025 -035 A Resolution of the City Council of The City of Palmdale Approving the 2025-2029 Consolidated Plan and the 2025- 2026 Action Plan.

Moved by Austin Bishop, seconded by Richard J. Loa.

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

Mayor Loa closed the Public Hearing.

10) CITY MANAGER’S REPORT

City Manager Pro Tem Mendez introduced the Assistant Fire Chief, Chief Ghobani.

Chief Ghobani addressed the Council, providing a brief introduction and remarks regarding the recently held Fire Service Day.

Mayor Pro Tem Bettencourt inquired about the Fire Explorers Program, and Chief Ghobani shared information on how to access and participate in the program.

Councilmember Bishop spoke about Fire Service Day and the fire truck and equipment.

Councilmember Ohlsen thanked Chief Ghobani for his service.

Councilmember Alarcón thanked Mr. Ghobani for his service and sent regards to a member who was injured at Station 129.

Chief Ghobani announced Firefighter Andrew Pontious would be added to the LA County Firefighter memorial wall on Wednesday, May 7, 2025.

7 11) NON-AGENDA PUBLIC COMMENTS:

The following individuals provided public input: David Harris requested that the City allocate funding to the Measure AV budget to support nonprofit organizations and other community-based entities; Eugene Hernandez discussed the history of Cinco de Mayo, the Mexican Revolution, Cesar Chavez Day, celebrating Latino culture, and the housing report; Robert Romo discussed banning fireworks; Roger Soderstedt requested a sidewalk in his neighborhood at Rancho Vista and Avenida Vista Verde; Marsha Furman shared details of a graffiti incident involving her son in 1995, the options presented by the court, and spoke about his retirement after 30 years of service in the Air Force. She also announced the weekly veterans’ breakfast on Wednesdays at Scramblez.

12) COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE

AGENDA ITEMS

Councilmember Bishop reported on his attendance at the Neighborhood Watch meeting in District 3, as well as his participation in the Southern California Association of Governments (SCAG) Regional Meeting.

Councilmember Ohlsen reported attending meetings of the Antelope Valley Transit Authority (AVTA), the North County Transportation Coalition (NCTC), and Metrolink.

He also discussed resident comments regarding budgetary concerns, the financial hardships faced by Palmdale citizens, and the importance of protecting the residents of Palmdale. He also thanked Marsha Furman and her son for their service to their country.

Councilmember Alarcón volunteered to share information about City services and resources with veterans during their weekly breakfast meetings. She also discussed the City’s emergency needs fund for veterans. Councilmember Alarcón expressed concern about the continued use of fireworks in the community and raised the possibility of transitioning community organizations currently engaged in fireworks sales to a grant funding program under Measure AV or PD, with the goal of phasing out “safe and sane” fireworks . Additionally, she addressed the importance of food security and discussed matters related to a local food pantry in addition to SAVES. She inquired whether the Council had any interest in creating a legislative advocacy ad hoc committee. She also announced that she will host an event at Albe's Ice Cream on May 10, from 1–3 pm.

Mayor Pro Tem Bettencourt reported on her participation on the government panel for the iServe Youth Leadership Program and her attendance at the Los Angeles County Sheriff’s Department (LASD) Councilmember Academy. She expressed opposition to the use of fireworks and provided the reasons for her stance. Additionally, she requested updates on the status of the Chimbole Cultural Center, inquired if there was interest from the Council in establishing a Recreation Center at Domenic Massari Park, and sought an update on the SAVES facility. She also congratulated Matt Wilhelm, Sage Academy, on being voted Teacher of the Year and for being a finalist for National Teacher of the Year.

Mayor Loa reported on his participation on the government panel for the iServe Youth Leadership Program, and attending the Antelope Valley Union High School District (AVUHSD) Oscar Night, and the Animal House Auction at the Antelope Valley Fair. He 8 also made two requests for future agenda items: 1) A report from Captain Cartmill on the law enforcement activities on fireworks for 2023 and 2024 and 2) Consideration by the Council of the directly elected mayor.

13) PRESENTATION BY CITY ATTORNEY

13.1) CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section 54956.9: (1 potential case – facts and circumstances unknown to potential plaintiffs)

14) ANNOUNCEMENT BY CITY ATTORNEY

Closed Session was held from 6:55 pm - 7:51 pm.

Acting City Attorney Halfman announced the following:

13.1 - There were no reportable actions.

15) ADJOURNMENT

Mayor Loa adjourned the meeting at 7:51 pm to May 21, 2025, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

PASSED, APPROVED, and ADOPTED this 17th day of June 2025.

___________________________
Richard J. Loa, Mayor

ATTEST:

___________________________
Rochelle Scott, City Clerk
1 MINUTES

CITY COUNCIL/SA/HA/IDA/PAA/PCA/PFA

CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B

PALMDALE, CALIFORNIA
MAY 21, 2025
5:00 PM

1) CALL MEETING TO ORDER

Mayor Loa called the meeting to order at 5:02 pm.

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

2) ROLL CALL MAYOR LOA, MAYOR PRO TEM BETTENCOURT, COUNCILMEMBERS BISHOP, OHLSEN, ALARCÓN, COMMISSIONERS FRAGA­ SAENZ, BETTS

PRESENT: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón, Christina Fraga-Saenz, Dianne Betts.

ABSENT: None.

Mayor Pro Tern Bettencourt participated via Zoom from Holiday Inn Express, 2300 West Coast Highway, Newport Beach, CA 92663.

3) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

Councilmember Alarcón led the Pledge of Allegiance. Mayor Loa announced the meeting would be adjourned in honor of Allison Gatlin and Tom Lapworth.

4) PRESENTATIONS

4.1) Announcement of the 2025 Tom Hilzendeger Veteran of the Year.

Mayor Loa announced Jeff Collins as the 2025 Tom Hilzendeger Veteran of the Year. Mr. Collins was presented with a commendation and a sash.

Representatives from Congressman Whitesides', Senator Valladares', Assemblyman Carrillo’s, Assemblyman Lackey’s, and Supervisor Barger’s offices made presentations to Mr. Collins.

Mr. Collins delivered a speech to the audience and expressed his gratitude to the representatives for their acknowledgment.

5) PUBLIC COMMENTS

None.

2 Mayor Loa pulled item 6.3 and requested to continue it to the June 3 meeting.

Motion: Continue item 6.3 to the June 3, 2025, meeting.

Moved by Richard J. Loa, seconded by Eric Ohlsen

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

6) CONSENT CALENDAR

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

6.2) Adopt Resolution No. CC 2025-040, a Resolution of the City Council of the City of Palmdale to accept the Los Angeles County Affordable Housing Solutions Agency (LACAHSA) Measure A Funds.

6.3) Award and approve agreement with Hathaway -Sycamores Child and Family Services for transitional mental health services in an amount not to exceed $2,175,000 for a term of 24 months for the period of July 1, 2025, through June 30, 2027.

6.4) Approve the minutes from the previous meeting.

Motion: Approve all items listed under the Consent Calendar except for item 6.3.

Moved by Andrea Alarcón, seconded by Eric Ohlsen.

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

7) NEW BUSINESS JOINT BUDGET PRESENTATION CC/SA/HA/IDA/PAA/PCA/PFA

7.1) Presentation of City of Palmdale Draft Budget for Fiscal Year 2025-26.

Operations Director Samson provided a detailed presentation on the draft budget for Fiscal Year 2025-26.

The following individuals provided public comments: David Harris and Chuck Murphy spoke in support of the draft budget.

Councilmember Alarcón spoke in support of the draft budget. She also discussed the investment in McAdam Park, growing the community program over time to incorporate an additional type of community program to offset the Safe and Sane fireworks money that the community organizations benefit from. Additionally, she requested line-item detail for what is included in Measure AV, and, in the future, Measure PD.

Councilmember Ohlsen thanked staff for the budget presentation and the video on sales tax. He discussed the $1M allocated to community groups and 3 suggested providing more funding to the veterans. He also expressed excitement for the newly approved positions for the Community Preservation team.

Councilmember Bishop thanked the Finance Division for their work. He discussed the expenses related to the DryTown Water Park slide and requested that funding be allocated to rebuild the Chimbole Cultural Center.

Commissioner Fraga-Saenz and Betts noted they were glad to see some of the housing projects coming into fruition.

Mayor Loa thanked the Finance Division and acknowledged the national recognition year after year.

Councilmember Alarcón asked Director of Operations Samson to outline the process for adopting the budget and the various opportunities for the public to participate. Director of Operations Samson outlined the process. Councilmember Alarcón recommended a media post.

Mayor Loa discussed the public support for Measure AV and Measure PD and agreed that public participation is important for the budget.

8) CITY MANAGER’S REPORT

City Manager Pro Te m Mendez provided an update on several upcoming events, including the Field of Honor opening ceremony to honor veterans, the Memorial Day Ceremony on May 26, the opening of DryTown Water Park on May 24, the weekly Farmer’s Market held on Fridays, and the West Coast Classical performances scheduled for May 30th and 31st at the Palmdale Playhouse.

9) SHERIFF'S REPORT

Captain Bardon provided an update on response times for routine calls, service calls, the Public Safety partnership, Part 1 crimes, arrests, graffiti-related arrests, traffic enforcement and collision prevention efforts, and traffic citations. He also reported that the Interfaith Prayer Breakfast held on May 9 was a success and noted plans to hold quarterly meetings with faith -based organizations to enhance information sharing. Additionally, Captain Bardon presented a report to the Council detailing the number of fireworks-related incidents in 2024.

Councilmember Alarcón thanked Captain Bardon for the updates and inquired about fentanyl-related deaths. Captain Bardon provided an update.

Councilmember Bishop expressed appreciation to the deputies for their efforts in keeping the community safe

Councilmember Ohlsen extended condolences to the Sheriff’s Department on the passing of the 21-year-old deputy, Daniel V. Chavira. Captain Bardon spoke about the impact the loss has had on the family members serving at the Palmdale and Lancaster stations.

4 Mayor Loa inquired about the breakdown of fires caused by fireworks, specifically distinguishing between illegal fireworks and Safe and Sane fireworks. Assistant Fire Chief Ghorbani responded that he would provide a detailed report on fireworks­ related fires. Mayor Loa requested that this information be presented at the next City Council meeting.

10) NON-AGENDA PUBLIC COMMENTS:

The following individuals provided public comments: Eugene Hernandez spoke about attending the Sheriff’s Department meetings that clarified the roles of Immigration and Customs Enforcement agents versus Sheriff’s deputies, suicides within the Sheriff’s department, Los Angeles County Supervisor settling the contract with the Department of Public Social Services, and the incentives available to filmmakers through the film incentive program; Yule Gevargis spoke on matters related to low-income housing on the west side, concerns at Cheseboro Road and Avenue T-8, the Palmdale Water District and access to potable water, and expressed support for Oscar Martinez as a candidate for Los Angeles County Sheriff.

Mayor Pro Tem Bettencourt disconnected from the Zoom meeting at 6:35 pm

11) COUNCIL REPORTS, ANNOUNCEMENTS, AND REQUESTS FOR FUTURE

AGENDA ITEMS

Councilmember Ohlsen expressed concerns about permitting Safe and Sane fireworks in Palmdale and requested that the matter be brought back to the City Council for discussion.

Mayor Loa requested that the discussion for the elected mayor be brought back to the City Council.

12) ADJOURNMENT

Mayor Loa adjourned the meeting at 6:44 pm, in honor of Allison Gatl in and Tom Lapworth, to June 3, 2025, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

PASSED, APPROVED, and ADOPTED this 17th day of June 2025.

________________________________
Richard J. Loa, Mayor

ATTEST:

________________________________
Rochelle Scott, City Clerk

1 MINUTES

CITY COUNCIL/SA/HA

CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B

PALMDALE, CALIFORNIA
JUNE 3, 2025
5:00 PM

www.cityofpalmdale.org

1) CALL MEETING TO ORDER

Mayor Loa called the meeting to order at 5:00 pm.

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

2) ROLL CALL MAYOR LOA, MAYOR PRO TEM BETTENCOURT,
COUNCILMEMBERS BISHOP, OHLSEN, ALARCÓN

COMMISSIONERS FRAGA- SAENZ, BETTS

PRESENT: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón, Christina Fraga-Saenz, Dianne Betts.

ABSENT: None.

3) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

Councilmember Bishop led the Pledge of Allegiance.

4) PRESENTATIONS

4.1) Fight Fentanyl Antelope Valley Awareness Campaign update and announcement of Youth Multimedia Challenge Winners; and recognition of Palmdale High School Students Fentanyl Awareness PSA.

Deputy City Manager Lopez provided a PowerPoint presentation and played the public service announcement (PSA) videos. Mayor Loa presented certificates to the participants.

Council thanked those who participated in the campaign and encouraged them to continue the fight against fentanyl.

4.2) Department of Public Works Maintenance Division updates.

Deputy Director of Public Works Livingston gave a PowerPoint presentation on the Maintenance Division.

Council thanked Deputy Director of Public Works Livingston for his leadership and commended staff for their hard work.
2 5) PUBLIC COMMENTS

The following individuals provided public input: David Harris spoke in support of Item

6.4, and Marsha Furman commented in support of 6.4 and 6.5.

Councilmember Alarcón pulled Items 6.4 and 6.5 for discussion.

6) CONSENT CALENDAR

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

6.2) Receive and File the Monthly and Quarterly Investment Reports for April 2025.

6.3) Approve agreement with eSentire, Inc., for Security Operations Center (SOC) Services and Incident Response in the amount of $333,000 for a term of three (3) years.

6.4) Review and approve permit issuance for 36 non -profit organizations for fireworks stands, including their proposed locations.

Director of Economic and Community Development Taggart presented the staff report, accompanied by a map displaying the locations of the permitted firework stands. Council and staff engaged in a discussion regarding several related topics, including the cur rent and future locations of firework stands, potential changes to designated fire zones, the possible removal of the ordinance provision authorizing the use of “safe and sane ” fireworks, alternative funding sources for non-profit organizations, and strategies for reporting illegal fireworks activity.

Battalion Chief Munoz of the LA County Fire Department presented fire safety tips for the upcoming 4th of July holiday.

Motion: Review and approve permit issuance for 36 non-profit organizations for fireworks stands, including their proposed locations.

Moved by Austin Bishop, seconded by Laura Bettencourt.

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

6.5) Award agreement with WhiteWater West Industries, Ltd., for construction services for PN 924, DryTown Water Park Thrill Ride Attraction Project for a total not to exceed amount of $1,544,955 for a completion date no later than April 15, 2026.

Director of Public Works Torres provided a quick overview of the project and showed renderings of the proposed slide.
3 Mayor Loa requested that staff provide competing bids to Council and to reach out to local bidders.

Mayor Pro Tem Bettencourt requested that Director of Parks and Recreation Smith provide information to the public regarding options for individuals who do not wish to use the attractions at DryTown Water Park. Director Smith responded by discussing the current non-bather rate.

Councilmember Bishop discussed the recent event held in celebration of the 20th anniversary of DryTown Water Park’s opening.

Mayor Loa expressed appreciation to staff for their fantastic work on the Memorial Day event held at Pelona Vista Park.

Motion: Award agreement with WhiteWater West Industries, Ltd., for construction services for PN 924, DryTown Water Park Thrill Ride Attraction Project for a total not to exceed amount of $1,544,955 for a completion date no later than April 15, 2026.

Moved by Austin Bishop, seconded by Andrea Alarcón.

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

6.6) Adopt Resolution No. CC 2025-027, a Resolution of the City Council of the City of Palmdale declaring its intention to continue assessments for Fiscal Year 2025-26, preliminarily approving the annual Engineer’s Report, and providing notice of Public Hearing for the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02.

6.7) Adopt Resolution No. CC 2025-028, a Resolution of the City Council of the City of Palmdale declaring its intention to continue assessments for Fiscal Year 2025-26, preliminarily approve the annual Engineer’s Reports and providing Notice of Hearing for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations.

6.8) Approve agreement with EcoFert, Inc., for installation of new fertigation systems and monthly fertigation system service at various park sites for a total not to exceed amount of $528,640 for a term of one year from the Notice to Proceed, with two additional one-year options to extend.

6.9) Adopt Resolution No. CC 2025-042, a Resolution of the City Council of the City of Palmdale approving the application for Local Streets and Roads Funds authorized under Article 8 of the Transportation Development Act.

4 6.10) Approve the minutes from the previous meeting.

Motion: Approve item listed under the Consent Calendar with the exception of Items 6.4 and 6.5
Moved by Andrea Alarcón, seconded by Austin Bishop.

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

7) APPOINTMENTS

7.1) Appoint one (1) member to serve on the Board of Library Trustees.

Mr. David Gee and Mrs. Elizabeth Enriquez spoke about their willingness to serve and their experience with the Library.

Motion: Appoint David Gee to serve on the Board of Library Trustees.

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

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

8) JOINT PUBLIC HEARING CC/HA

8.1) Public Hearing to Receive Public Comments, Adopt Resolution No. HA 2025 - 001 of the Housing Authority of the City of Palmdale, approving Affordable Housing Agreement No. A -9241 with Victory Outreach - Palmdale, Housing Authority Ground Lease, and Housing A uthority Loan of $580,000 for property Located at 513 East Avenue Q4 (APN 3008 -013-902); Adopt Resolution No.

CC 2025-041 of the City Council of the City of Palmdale, approving Affordable Housing Agreement No. A -9241 between the Housing Authority of the Ci ty of Palmdale and Victory Outreach - Palmdale, approving and authorizing the Conveyance of property located at 513 East Avenue Q4 (APN 3008 -013-902) from the Housing Authority of the City of Palmdale to Victory Outreach - Palmdale, and making certain find ings; Approve Measure H Loan Agreement A-9242 between the City of Palmdale and Victory Outreach - Palmdale for a Rehabilitation Loan of $361,145 for 513 East Avenue Q4.

Housing Director Reyes presented the staff report.

Mayor Loa opened the Public Hearing.

Public Testimony: Pastor Mike Gonzalez provided details on the project that will help single women and children; David Harris expressed strong support for the ongoing work of Victory Outreach; and Associate Pastor Avalos and the property manager spoke about the tremendous success of the program.

City Clerk Scott read the titles of Resolution Nos. CC 2025 -041 and HA 2025- 001
5 Mayor Loa closed the Public Hearing

Councilmember Alarcón thanked Pastor Mike Gonzalez for the great work Victory Outreach is doing in the community.

Mayor Loa closed the Public Hearing

Motion: Adopt Resolution No. CC 2025-041, Approve Agreement A-9242 Moved by Andrea Alarcón, seconded by Laura Bettencourt.

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

Motion: Adopt Resolution No. HA 2025-001, and Approve Agreement No. A- 9241
Moved by Dianne Betts, seconded by Christina Fraga-Saenz.

Vote: Motion carried (7-0)
Yes: Richard J. Loa, Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón, Christina Fraga-Saenz, Dianne Betts.

Mayor Loa thanked Victory Outreach for what they do in the community.

9) CITY MANAGER’S REPORT

City Manager Pro Tem Mendez provided an update on several upcoming events, including: Farmer’s Market held on Fridays at Oasis Park 5pm - 9pm, Palmdale Playhouse Performance of Harry Potter reversion June 6 - 8, AV Taco Festival on June 6 at Poncitlán Square, a free dog microchip event on June 14 at Poncitlán Square, Family Health & Fitness Day on June 14, 5pm - 7pm at Domenic Massari and Marie Kerr Park, a Celebration of Dad's at the Palmdale Playhouse on June 14, and the High Desert Beer and Wine Festival on June 21 at Marie Kerr Park.

10) NON-AGENDA PUBLIC COMMENTS:

Mayor Loa clarified that the discussion topic for Item 11.1 was the issue regarding the directly elected mayor or keeping the current rotational system. Councilmember Alarcón requested further clarification on the item, which Mayor Loa provided. A discussion followed regarding the opportunity for public comment on Item 11.1 and the overall process for adding items to the agenda. Acting City Attorney Halfman offered further clarification on the procedural requirements for placing items on future agendas. Additional discussion continued among Councilmembers on these matters.

The following individuals provided public comments: Neil Weisenberger, President of the Antelope Valley Resource Conservation District, provided remarks regarding the district’s activities and expressed interest in delivering a formal presentation to the Council; David Harris recommended that the Council consider allocating funding within 6 the Measure AV budget to support non -profit organizations; Yul Gevargis suggested low income housing for seniors on the project at Avenue N and 50th and spoke in support of the right of Palmdale residents to elect their own mayor ; Michael Ross commented on the recent Field of Honor event, referenced remarks made by the Lancaster mayor, acknowledged his nephew’s military service, and requested a process that would allow citizens to request items be added to Council agendas ; Mark Maldonado referenced comme nts made by the Lancaster mayor and emphasized the community’s interest in having a voice regarding the election of Palmdale’s mayor ; Robert Quezada addressed the current rotational system for selecting the mayor and discussed the Palmdale Water District’s plan to distribute potable water; Marsha Furman provided comments on the Palmdale magazine, the upcoming National Night Out event, and the speaker card process; and Mr. Ventura announced the AV Taco Festival is scheduled to take place on June 7 . Written comments were submitted via email by Judy Vaccaro -Fry, advocating for the reinstatement of a public vote to elect Palmdale’s mayor, and by Jason Zink , addressing concerns related to the City Budget.

11) COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE

AGENDA ITEMS

11.1) Discussion item Mayor Loa (1).

Mayor Loa requested that a presentation be brought before the Council, and, if possible, an accompanying action item for Council consideration. The proposed action would place a measure on the ballot allowing voters to decide whether to amend the existing ordinance—which currently provides for the selection of the mayor by a majority vote of the City Council—to instead reinstate the direct election of the mayor by the public. Mayor Loa also presented several related proposals for the Council’s consideration.

Mayor Pro Tem Bettencourt, Councilmembers Ohlsen, Bishop, and Alarcón voted against adding the proposed item to a future agenda.

11.2) Council Reports.

Councilmember Alarcón reported on the following conferences and events: the California Contract Cities Annual Municipal Seminar, the International Council of Shopping Centers (ICSC) Conference, and a Small Business Month support event she hosted at Albe's Ice Cream.

Mayor Pro Tem Bettencourt provided updates on recent conferences and events, including the Memorial Day Ceremony, a discussion with students in Mr.

Matt Winheim’s class at Sage Magnet Academy about pursuing public office, and participation in the Sheriff's Department Council Academy.

Councilmember Ohlsen reported on the following meetings and events: met with Tim McCormick of Together California on May 14, the International Council of Shopping Centers (ICSC) Conference, and the Honor Field and Memorial Day ceremonies.
7 Councilmember Bishop reported on the following meetings and events: the SCAG Transportation Meeting, the Together California funding event on May 14, the International Council of Shopping Centers (ICSC) Conference, the Field of Honor event, and the 20th Anniversary celebration of DryTown Water Park.

Mayor Loa reported attending the following meetings and events: the Annual Fire Service Day, the Interfaith Prayer Breakfast, the 4.0 Recognition Event, the iServe Graduation, the 2025 AV Press Future Leaders event, the International Council of Shopping Centers (ICSC) Conference, the Field of Honor event, the AV Fair Authority meeting, the Memorial Day event, a meeting with Assemblymember Carrillo and the Palmdale School District, the Together California event, and a meeting with local auto dealers.

12) PRESENTATION BY CITY ATTORNEY

Acting City Attorney Halfman confirmed the item would be heard as listed.

12.1) Conference with Legal Counsel – Existing Litigation Candie Sue Schermerhorn v. City of Palmdale, et al.

This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d) (1).

13) ANNOUNCEMENT BY CITY ATTORNEY

Closed Session was held from 8:13 pm – 9:10 pm.

Acting City Attorney Halfman announced the following:

12.1 – There were no reportable actions.

14) ADJOURNMENT

Mayor Loa adjourned the meeting at 9:11 pm to June 17, 2025, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

PASSED, APPROVED, and ADOPTED this 17th day of June 2025.

Richard J. Loa, Mayor

ATTEST:

_________________________
Rochelle Scott, City Clerk

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

SUBJECT: RECEIVE AND FILE THE ANNUAL REPORT ON DEVELOPMENT IMPACT FEES FOR THE FISCAL YEAR ENDED JUNE 30, 2024, AND

ADOPT FINDINGS TO COMMIT FUNDS HELD IN THE LITTLEROCK

DRAINAGE FEE FUND, FIRE FACILITIES FEE FUND, AND SEWER

UPGRADE FEE FUND

RECOMMENDATION

Staff recommends that the City Council:

1. Accept the Annual Report on Development Impact Fees for the Fiscal Year Ended June 30, 2024; and,

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

BACKGROUND

The City is authorized under state law to require development applicants to contribute fees for off-site public improvements needed because of new developments. The fees are charged based on a pro-rata share of the cost of the new improvements. This report is issued annually at the conclusion of the City’s financial audit for the prior fiscal year.

The Fiscal Year 202 4 audit concluded on May 1, 2025, at which point this report was developed to provide information related to the status of these funds for the year ended June 30, 2024.

State law requires the City to provide a public notice specifying that this report is available for inspection no less than 15 days before the public meeting. The public notice was issued, and the report was available for inspection on May 31, 2025.

Government Code Section 66001 (AB1600) requires the City to review the status of collected development impact and mitigation fees on an annual basis. If any fees remain Report to Mayor and City Council
Re: Development Impact Fee Report for Year Ended June 30, 2024 June 17, 2025

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

DISCUSSION

The attached schedule provides a breakdown of accounts for the year ending June 30, 2024. All the accounts presently maintain positive cash positions and were allocated interest earnings pro rata as prescribed by state law. The statute also specifies that the report includes the following:

 The amount of each development fee;
 The beginning and ending fund balance for each development fee account;  The amount of funds expended on each project for the year ended;  A description of each inter-fund transfer or loan made from each development fee account; and,
 If applicable, the refund amounts made pursuant to the Government Code Section 66001.

As of June 30, 2024, the Littlerock Drainage Fee Fund, Fire Facilities Fee Fund, and the Sewer Upgrade Fee Fund hold over five years of funds as follows:
.
 $39,391 of the $44,077 balance in the Littlerock Drainage Fee Fund,  $5,017,677 of the $10,410,040 balance in the Fire Facilities Fee Fund, and,  $433,730 of the $489,595 balance in the Sewer Upgrade Fee Fund.

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

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

FISCAL IMPACT

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

STRATEGIC PLAN

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

Report to Mayor and City Council
Re: Development Impact Fee Report for Year Ended June 30, 2024 June 17, 2025

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: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS

Rpt. Annual Report on Development Impact Fees for Year Ended June 30, 2024

City of Palmdale
Annual Report
On
Development Impact Fees
For
Fiscal Year Ended
June 30, 2024

Prepared by
Eide Bailly LLP

1 May 27, 2025
J
anelle Samson, Director of Operations
City of Palmdale
38300 N. Sierra Highway
Palmdale, CA 93550
R
e: Acceptance of Annual Report on Development Impact Fees and Adopt Findings to Commit Funds Held in the Littlerock Drainage Fee Fund, Fire Facilities Fee Fund and the Sewer Upgrade Fee Fund
D
ear Ms. Samson:

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

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

The fees are charged based upon a pro -rata share of the cost of the new improvements. This report provides information related to the status of these funds for the year ended June 30, 2024. State law requires the City to provide a public notice that specifies that this report is available for inspection.

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

T
he attached schedule provides a breakdown of accounts for the year ending June 30, 2024. All the accounts maintaining positive cash positions were allocated interest earnings on a pro -rata basis as prescribed by state law. The statues also specify that the report include the following:
• T
he amount of each development fee
• The beginning and ending fund balance for each development fee account • The amount of funds expended on each project for the year just ended • The amount of developer fees collected and interest earned for the year just ended • A description of each interfund transfer or loan made from each development fee account • If applicable, the amount of refunds made pursuant to Government Code Section 66001 What inspires you, inspires us. | eidebailly.com
10681 Foothill Blvd., Ste. 300 | Rancho Cucamonga, CA 91730-3831 | T 909.466.4410 | F 909.466.4431 | EOE 2 As of June 30, 2024, the following accounts holds funds that are over five years old:

Littlerock Drainage Fee Fund $39,391
Fire Facilities Fee Fund $5,017,677
Sewer Upgrade Fee Fund $433,730
A
t this time, the City Council can make a finding that these uncommitted funds have a specified purpose and that there is a reasonable relationship between the fee and the purpose for which it was charged.

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

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

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

A
ction To Be Taken By City Council

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

2. Th
at the Drainage funds held and totaling $39,391 in the Littlerock Drainage Fee Fund are to be held for projects noted in the City of Palmdale Master Plan of Drainage dated August 1996. That the funds held totaling $5,017,677 in the Fire Facilities Fee Fund will be held for the benefit of the Consolidated Fire Protection District of the Los Angeles County District Area 3 for future fire station projects. And that the funds totaling $433,730 in the Sewer Upgrade Fee Fund will be held for projects noted in the Ten-Year Capital Improvement Plan.

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

S
incerely yours,
R
oger Alfaro, CPA
Eide Bailly LLP
A
ttachments
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended
2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Traffic Impact Fee (Fund 209/221)
Street Signal Debt Service 861,000$ 861,000$
Ave R 45th St E Traffic Signal 167,775 167,775
Totals 1,028,775$ - $ 1,028,775$ -$
2,025,899$ 121,716$ -$
-$
-$
1,488,105$ 2,606,945 $
(Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Interest Total Non Developer
Project AB 1600 Expense AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue General Fund Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2023-2024 Advance 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Parks Development Fee (Fund 208/220)
Playhouse HVAC Upgrade 188,242 $ 188,242 $
Sam Yellen Park 4,593,249 4,593,249
Rancho Vista Park 322,773 322,773
Totals 5,104,264$ - $ 119,600$ 5,104,264$ - $ 677,938$ 347,093 $ - $ - $ - $ 7,345,074$ 3,146,241 $ Note: Ending balance includes the following:

Advance due to General Fund of $5,000,000.
(Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended
2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Amargosa Drainage Fee (Fund 212/222)
Drainage Admin 52,100$ 52,100$
Amargosa Creek Upper Rechg 52,985 52,985
Totals 105,085$ - $ 105,085$ -$ 2,207,557$ 124,230$ -$
-$
-$
1,267,307$ 3,494,009 $
(Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Interest Total Non Developer
Project AB 1600 Expense AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Interfund Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2023-2024 Drainage 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Anaverde Drainage Fee (Fund 213/223)
Drainage Admin 6,000 $ 6,000 $
Amargosa Crk Upper Rechg Proj - -
6,000$ - $ 83,962$ 6,000 $ - $ 82,828$ 73,427 $ - $ - $ - $ (3,276,353)$ (3,210,060) $ Note: Ending balance includes the following:

Loan payable due to Pearland Drainage Fund of $2,136,221. (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Interest Total Non Developer
Project AB 1600 Expense AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Interfund Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2023-2024 Drainage 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Portal Ridge Drainage Fee (Fund 214/224)
Drainage Admin 6,000 $ 6,000 $
6,000$ - $ - $ 6,000$ - $ - $ 4,556$ - $ - $ - $ 107,044$ 105,600 $ Note: Ending balance includes the following:

Due to General Fund of $18,476.
(Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Pearland Drainage Fee (Fund 215/225)
Drainage Admin 6,000 $ 6,000 $
Pearland Drainage 385 385
TS HILARY STORM DR RPR 20,000 20,000
TS HILARY-BERNARDIN WALL RPR 120,004 120,004
PEARLAND DRAINAGE PLAN STUDY 7,716 7,716
154,105$ - $ 154,105$ - $ 2,795,277$ 293,870 $ - $ - $ - $ 12,151,298$ 15,086,340 $ Note: Ending balance includes loan receivable due from Anaverde Drainage Fund of $2,136,221 and $3,800,000 from the Sewer Maintenance Fund.

Note: There is no finding in the Pearland Fund, since the loan reduced the cash balance of the fund. (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended
2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Littlerock Drainage Fee (Fund 216/226)
Drainage Admin 6,000$ 6,000$
6,000$ - $ 6,000$ -$
-$
1,754$ - $ -$
-$
48,323$ 44,077$
(Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Fire Facilities Impact Fee (Fund 217/227)
City Admin Charges 73,721 $ 73,721 $
73,721$ - $ 73,721$ - $ 1,474,428$ 364,953 $ - $ - $ - $ 8,644,380$ 10,410,040 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Sewer Upgrade Impact Fee (Fund 225/228)
Sewer Upgrd-45th E/Ave R to S 9,657 $ 9,657 $
9,657$ - $ 9,657$ - $ - $ 17,157$ - $ - $ - $ 482,095$ 489,595 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Public Facilities Impact Fee (Fund 247/229)
Fire Supression Retrofitting 9,357 $ 9,357 $
Desert Sands Park Improvements 1,233 1,233
FACILITIES REPAIR P&R BLDG 1,150 1,150
187,519$ - $ 187,519$ - $ 554,258$ 74,775 $ - $ - $ - $ 1,692,169$ 2,133,683 $ (Unaudited)
City of Palmdale
Summary of Local Agency Improvement Fees
(AB1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2024
Non Total Non Developer
Project AB 1600 AB1600 AB1600 Fees Interest Other Beginning Ending Amount Revenue Expenditures Expenditures Collected Income Income Transfers Transfers Balance Balance Project Expended
2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 2023-2024 In Out 7/1/2023 6/30/2024 Big Rock Drainage Impact Fee (Fund 230)
Drainage Admin 6,000$ 6,000$
Amargosa Creek Upper Rechg Proj - -
6,000$ - $ 6,000$ -$
-$
140$ - $ -$
-$
3,850$ (2,010)$
(Unaudited)

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

SUBJECT: ADOPT RESOLUTION NO. CC 202 5-044, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE ESTABLISHING AN
APPROPRIATIONS LIMIT FOR FISCAL YEAR 202 5-26 PURSUANT

TO ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION AND
REPEAL RESOLUTION NO. CC 2024-053

RECOMMENDATION

Staff recommends that the City Council:

Adopt Resolution No. C C 2025-044, a Resolution of the City Council of the City of Palmdale establishing an appropriations limit for Fiscal Year 2025-26 pursuant to Article XIII B of the Constitution of the State of California and repeal Resolution No. CC 2024- 053.

BACKGROUND

Article XII B of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Appropriations Limit (Limit), was adopted by California voters in 1980.

The Limit places restrictions on the amount of tax proceeds that state and local governmental agencies can receive and appropriate each fiscal year.

The Limit is calculated based on the actual amount of tax proceeds appropriated during the 1978-79 Fiscal Year and is increased each year for inflation and population growth.

Inflationary adjustments are, by law, based on the growth in the California Per Capita Income or the growth in non -residential assessed valuation due to new construction within the City. Population adjustments are based on the population growth of the City or the population growth within the City’s county. The decision as to which of the options to select is made annually by a recorded vote of the City Council.

Report to Mayor and City Council
Re: Reso. No. CC 2025-044 Establishing Appropriations Limit for FY 2025-26 June 17, 2025

The statutes regarding the adoption of the Limit, contained in Government Code Section 7910, require the governing body to annually adopt, by resolution, an appropriations limit each year for the following fiscal year.

DISCUSSION

For Fiscal Year 2025-26, the City estimates that tax proceeds to be received, as well as tax proceeds appropriated by the City Council, will continue to be under the legal limit.

The City’s appropriations limit for Fiscal Year 2025-26 is established at $182,745,078, a 6.74 percent increase over the Fiscal Year 2024-25 limit. This is the maximum amount of tax proceeds the City will be able to receive and appropriate in the coming fiscal year.

The City’s appropriations, subject to the limit for Fiscal Year 2025-26, are estimated to be $ 116,972,008. Therefore, the City’s Fiscal Year 202 5-26 proposed budget appropriations subject to the limit are $65,773,070 less than the appropriations limit.

FISCAL IMPACT

$0; there is no fiscal impact associated with this action. his action has no direct fiscal impact. Resolution No. CC 2025-044 would increase the total annual appropriations limit from $171,208,963 to $182,745,078.

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. This section indicates how the agenda item is relevant to the guiding principles or values of the strategic plan.

Prepared by: Janelle Samson, Director of Operations
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS
Reso. No. CC 2025-044

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2025-044

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE ESTABLISHING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025- 26 PURSUANT TO ARTICLE XIII B OF THE CALIFORNIA
CONSTITUTION AND REPEAL RESOLUTION NO. CC 2024-053

WHEREAS, Article XIII B of the California Constitution provides that the total annual appropriations subject to limitation for each governmental entity, inc luding this City, shall not exceed the appropriations limit of such entity of government for the prior year, as adjusted for changes in the California per capita income or assessment roll for new non-residential construction and population, except as other wise provided for in said Article XIII B and implementing State statutes; and

WHEREAS, pursuant to said Article XIII B of the California Constitution, and Section 7910 of the California Government Code, the City is required to establish its appropriations limit each year for the following fiscal year; and

WHEREAS, since the data necessary to calculate the increase in the non - residential assessed valuation is generally not available from County assessors, there is the possible need to adjust the limit once the assessment data is available; and

WHEREAS, the City Manager has caused the limit for the City of Palmdale to be calculated and determined, on a provisional basis, using the per capita income and City population factors, and said appropriations limit for the fiscal year 2025-26 has been, and is hereby provisionally established in the amount of $182,745,078; and

WHEREAS, the documentation and calculations necessary to arrive at said limitation amount have heretofore been available for public inspection for the required fifteen (15) days.

NOW THER EFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF

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

SECTION 1. Adopt Resolution No. CC 202 5-044 establishing an appropriation limit in the amount of $182,745,078 for Fiscal Year 2025-26; and

Resolution No. CC 2025-044

SECTION 2. All supporting documentation used in the determination of said Appropriations Limit be made available at the Finance Division during normal business hours for inspection by the public; and

SECTION 3. Resolution No. CC 2024-053 is hereby repealed in its entirety.

SECTION 4. This Resolution is effective July 1, 2025.

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

PASSED, APPROVED and ADOPTED this 17th day of June, 2025.

_________________________________
Approved as to form: Richard J. Loa, Mayor

ATTEST:
___________________________ _________________________________ Alexandra Halfman Rochelle Scott, City Clerk
Acting City Attorney

I, Rochelle Scott, City Clerk of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 17th day of June, 2025 by the following roll call vote:

AYES:

NOES:___________________________________________________________

ABSTAIN:______________________ABSENT:___________________________

Date:

Rochelle Scott, City Clerk

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

SUBJECT: ADOPT RESOLUTION NO. CC 2025 -045, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE DESIGNATING BY

TITLE AND NAME THOSE OFFICIALS WHO ARE AUTHORIZED TO
SIGN CHECKS AND WARRANTS, AND REPEAL RESOLUTION NO.

CC 202 5-003, AND ADOPT RESOLUTION NO. SA 2025 -002, A

RESOLUTION OF THE SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF

PALMDALE DESIGNATING BY TITLE AND NAME THOSE

OFFICIALS WHO ARE AUTHORIZED TO SIGN CHECKS AND
WARRANTS, AND REPEAL RESOLUTION NO. SA 2025-001

RECOMMENDATION

Staff recommend that the City Council:

1. Adopt Resolution No. CC 2025-045, a Resolution of the City Council of the City of Palmdale designating by title and name those officials who are authorized to sign checks and warrants, and repeal Resolution No. CC 2025-003; and,

2. Adopt Resolution No. SA 2025-002, a Resolution of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale designating by title and name those officials who are authorized to sign checks and warrants, and repeal Resolution No. SA 2025-001.

BACKGROUND

The Palmdale Municipal Code (PMC) Section 3.14.030 requires that the City Council designate by Resolution the names of those individuals holding offices identified in PMC

03.14.020 as authorized signers of checks, drafts, warrants, or other orders for payment of money drawn in the name of the City and the Successor Agency.

Report to Mayor and City Council
Re: Reso. Nos. CC 2025-045 and SA 2025-002
June 17, 2025

DISCUSSION

Resolution Nos. CC 2025-045 and SA 2025-002 set forth the list of individuals holding such positions who are designated as authorized signers of checks and warrants for the City of Palmdale and the Successor Agency. The below updates are reflected in the proposed Resolutions:

Add:

Deputy Director of Finance Sarah Johnston
Deputy City Treasurer Sarah Johnston

FISCAL IMPACT

$0; There is no fiscal impact associated with the recommended actions for this report.

STRATEGIC PLAN

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

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

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

Prepared by: Janelle Samson, Director of Operations
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS

Reso No. CC 2025-045
Reso No. SA 2025-002

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2025-045

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

DESIGNATING BY TITLE AND NAME THOSE OFFICIALS WHO ARE

AUTHORIZED TO SIGN CHECKS AND WARRANTS, AND REPEAL
RESOLUTION NO. CC 2025-003.

WHEREAS, the City has engaged various financial institutions as depositories of City moneys: and

WHEREAS, the City Council has, by ordinance, heretofore designated by title certain officials who are authorized to sign checks, drafts, warrants or other orders for the payment of money drawn in the name of the City.

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

PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND O RDER AS FOLLOWS:

SECTION 1. For purposes of implementing Section 3.14.020 and 3.14.030 of the Palmdale Municipal Code , the following persons are designated by name and are expressly authorized to sign checks, drafts, warrants or other orders for the payment of money drawn in the name of the City:

City Manager - TBD
or
Assistant City Manager - SALVADOR MENDEZ
or
Director of Finance* - JANELLE SAMSON
or
City Treasurer - JANELLE SAMSON
or
Deputy Director of Finance - SARAH JOHNSTON
or
Deputy City Treasurer - SARAH JOHNSTON

*Director of Finance is titled as Director of Operations, effective November 15, 2023

SECTION 2. Resolution No. CC 2025-003 is repealed in its entirety.

Resolution No. CC 2025-045

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

PASSED, APPROVED and ADOPTED this 17th day of June, 2025.

_________________________________
Approved as to form: Richard J. Loa, Mayor

ATTEST:
___________________________ _________________________________ Alexandra Halfman Rochelle Scott, City Clerk
Acting 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 17th day of June, 2025 by the following roll call vote:

AYES:

NOES:___________________________________________________________

ABSTAIN:______________________ABSENT:___________________________

Date:

Rochelle Scott, City Clerk

SUCCESSOR AGENCY

TO THE COMMUNITY REDEVELOPMENT AGENCY

OF THE CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. SA 2025-002

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COMMUNITY

REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE

DESIGNATING, BY TITLE AND NAME , THOSE OFFICIALS WHO ARE

AUTHORIZED TO SIGN CHECKS AND WARRANTS , AND REPEALING
RESOLUTION NO. SA 2025-001.

WHEREAS, the Successor Agency to the Community Redevelopment Agency of the City of Palmdale is engaging a financial institution as a depository of Successor Agency moneys and funds: and

WHEREAS, the Chair and Directors of the Agency have, by ordinance, heretofore designated by title certain officials who are authorized to sig n checks, drafts, warrants or other orders for the payment of money drawn in the name of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale.

NOW THEREFORE, BE IT RESOLVED, THE SUCCESSOR AGENCY TO THE

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

SECTION 1. For purposes of implementing Section 3.14.020 and 3.14.030 of the Palmdale Municipal Code, the following persons are designated by name and are expressly authorized to sign checks, drafts, warrants or other orders for the payment of money drawn in the name of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale:

Executive Director - TBD
or
Assistant City Manager - SALVADOR MENDEZ
or
Director of Finance* - JANELLE SAMSON
or
City Treasurer - JANELLE SAMSON
or
Deputy Director of Finance - SARAH JOHNSTON
or
Deputy City Treasurer - SARAH JOHNSTON

*Director of Finance is titled as Director of Operations, effective November 15, 2023 Resolution No. SA 2025-002

SECTION 2. Resolution No. SA 2025-001 is repealed in its entirety.

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

PASSED, APPROVED and ADOPTED this 17th day of June 2025.

_________________________________
Approved as to form: Richard J. Loa, Chair

ATTEST:
___________________________ _________________________________ Alexandra Halfman Rochelle Scott, Agency Secretary
Acting General Counsel

I, Rochelle Scott , Agency Secretary of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale , California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the Successor Agency at a regular meeting of said Agency held on the 17th day of June 2025 by the following roll call vote:

AYES:

NOES:___________________________________________________________

ABSTAIN:______________________ABSENT:___________________________

Date:

Rochelle Scott, Agency Secretary

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

SUBJECT: APPROVE PURCHASE ORDER 20260000 WITH AMAZON CAPITAL SERVICES, INC., DBA AMAZON BUSINESS , IN AN AMOUNT NOT
TO EXCEED $268,000 FOR FY 2025-26

RECOMMENDATION

Staff recommend that the City Council:

1. Approve Purchase Order 20260000 with Amazon Capital Services, Inc. , in an amount not to exceed $268,000 for FY 2025-26. Adoption of this Purchase Order is contingent upon the City Council approving the City’s FY 20 25-26 Annual Budget.

BACKGROUND
Under Palmdale Municipal Code §3.08.140(D), the City is authorized to participate in cooperative purchasing with other public agencies and non -profit organizations. This approach is cost -effective and streamlines procurement by reducing the need for separate bidding processes.

The City uses the OMNIA Partne rs Public Sector Cooperative Purchasing Program to access competitively bid contracts. Through this, and by leveraging Amazon Business, the City obtains competitive pricing on frequently purchased items.

The partnership with Amazon Business improves purcha sing efficiency, provides centralized tracking and reporting, and enhances spending controls. It also allows the City to prioritize local vendors by designating them as "organization preferred" in the system.

Additional benefits of the Amazon partnership include:

 Increased Efficiency: Departments can reduce administrative time spent sourcing and comparing vendors by accessing a single, user-friendly platform; Report to Mayor and City Council
Re: Purchase Order 20260000 with Amazon Capital Services, Inc.

June 17, 2025

 Real-Time Spend Visibility: Amazon’s reporting tools provide detailed insights into department spe nding, helping to improve budget management and accountability;

 Streamlined Approval Processes: Built -in approval workflows and spending thresholds help ensure policy compliance and reduce unauthorized purchases;

 Availability of Diverse Vendors: Amazon B usiness allows the City to prioritize purchases from small, minority-owned, women-owned, and other disadvantaged business enterprises; and,

 Fast and Reliable Shipping: Many products are eligible for expedited shipping at no additional cost, ensuring timely delivery of critical supplies.

This partnership reflects the City’s commitment to innovation, fiscal responsibility, and local economic development while improving service delivery to the community.

DISCUSSION
Staff recommend that City Council approve a purchase order with Amazon Business in the amount of $268,000 for FY 2025-26.

This purchase order supports citywide procurement needs based on past usage and expected demand. It will allow departments to continue using Amazon Business to purchase essential goods and services efficiently, while maintaining fiscal oversight and supporting local and diverse vendors.

FISCAL IMPACT

$268,000; Purchase Order 202 60000 with Amazon Capital Services will not exceed $268,000 for FY 202 5-26. Funds are proposed in the annual operating budget in the Office & Operating accounts.

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. This section indicates how the agenda item is relevant to the guiding principles or values of the strategic plan.

Prepared by: Janelle Samson, Director of Operations
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney Report to Mayor and City Council
Re: Purchase Order 20260000 with Amazon Capital Services, Inc.

June 17, 2025

ATTACHMENTS

PO 20260000 Amazon Capital Services
Agrmt No. R-TC-17006
Agrmt No. R-TC-17006, Amendment 1
Agrmt No. R-TC-17006, Extension 1
Agrmt No. R-TC-17006, Extension 2
Purchase Order 20260000 / Amazon Capital Services, Inc.

Vendor Name Line Number GL Account Requested Order Amount Amazon Capital Services, Inc. 1 10110001-735100- 1,000$ Amazon Capital Services, Inc. 2 10111001-735100- 1,800$ Amazon Capital Services, Inc. 3 10111001-739500- 500$
Amazon Capital Services, Inc. 4 10112001-710000- 600$
Amazon Capital Services, Inc. 5 10112001-735100- 2,000$ Amazon Capital Services, Inc. 6 10112002-735100- 100$
Amazon Capital Services, Inc. 7 10112201-735100- 2,000$ Amazon Capital Services, Inc. 8 10113001-735100- 3,500$ Amazon Capital Services, Inc. 9 10113001-737902- 400$
Amazon Capital Services, Inc. 10 10113001-737903- 500$
Amazon Capital Services, Inc. 11 10113001-739500- 100$
Amazon Capital Services, Inc. 14 10114001-735100- 1,000$ Amazon Capital Services, Inc. 15 10115001-735100- 1,800$ Amazon Capital Services, Inc. 16 10115001-739500- 1,150$ Amazon Capital Services, Inc. 17 10115002-735100- 600$
Amazon Capital Services, Inc. 18 10117001-722330- 250$
Amazon Capital Services, Inc. 19 10117001-735100- 2,400$ Amazon Capital Services, Inc. 20 10118001-735100- 1,000$ Amazon Capital Services, Inc. 21 10118001-737103- 4,700$ Amazon Capital Services, Inc. 22 10119011-737100- 6,500$ Amazon Capital Services, Inc. 24 10120001-735100- 3,500$ Amazon Capital Services, Inc. 25 10121001-739500- 1,000$ Amazon Capital Services, Inc. 26 10122001-733500- 1,000$ Amazon Capital Services, Inc. 27 10122001-739500- 100$
Amazon Capital Services, Inc. 28 10125001-735100- 250$
Amazon Capital Services, Inc. 29 10125001-739500- 100$
Amazon Capital Services, Inc. 30 10125002-735100- 1,000$ Amazon Capital Services, Inc. 31 10125002-737126- 3,000$ Amazon Capital Services, Inc. 32 10125004-735100- 1,500$ Amazon Capital Services, Inc. 33 10125004-739500- 750$
Amazon Capital Services, Inc. 34 10125014-735100- 100$
Amazon Capital Services, Inc. 35 10125601-735100- 6,600$ Amazon Capital Services, Inc. 37 10131001-735100- 3,500$ Amazon Capital Services, Inc. 38 10131001-739500- 500$
Amazon Capital Services, Inc. 39 10132001-735100- 1,000$ Amazon Capital Services, Inc. 40 10132002-707000- 900$
Amazon Capital Services, Inc. 41 10132002-735100- 1,500$ Amazon Capital Services, Inc. 42 10132002-739500- 500$
Amazon Capital Services, Inc. 43 10133002-732920- 500$
Amazon Capital Services, Inc. 44 10133002-735100- 1,200$ Amazon Capital Services, Inc. 45 10133002-739500- 200$
Amazon Capital Services, Inc. 46 10133003-735100- 100$
Amazon Capital Services, Inc. 47 10133003-739500- 100$
Amazon Capital Services, Inc. 48 10133005-732800- 1,000$ Amazon Capital Services, Inc. 49 10133005-735100- 1,500$ Amazon Capital Services, Inc. 50 10134002-721400- 250$
Amazon Capital Services, Inc. 51 10141001-735100- 8,000$ Amazon Capital Services, Inc. 52 10141001-739500- 500$
Amazon Capital Services, Inc. 53 10141004-735100- 600$
Amazon Capital Services, Inc. 54 10142001-735100-1090 500$ Amazon Capital Services, Inc. 55 10142001-735100-1091 5,700$ Amazon Capital Services, Inc. 56 10142001-736210- 300$
Amazon Capital Services, Inc. 57 10142001-736210-1092 1,000$ Amazon Capital Services, Inc. 58 10142001-736210-1094 8,600$ Amazon Capital Services, Inc. 59 10142001-737100-1093 3,120$ Amazon Capital Services, Inc. 60 10142001-737100-1095 500$ Amazon Capital Services, Inc. 62 10142001-737109-1089 1,000$ Amazon Capital Services, Inc. 63 10142002-732601- 17,000$ Amazon Capital Services, Inc. 64 10142002-735100- 3,400$ Amazon Capital Services, Inc. 65 10142002-737134- 11,055$ Amazon Capital Services, Inc. 66 10142002-739500- 1,000$ Amazon Capital Services, Inc. 67 10144001-736210- 8,400$ Amazon Capital Services, Inc. 68 10144002-736210- 1,625$ Amazon Capital Services, Inc. 70 10144004-735100- 1,800$ Amazon Capital Services, Inc. 71 10144004-736210- 1,600$ Amazon Capital Services, Inc. 72 10144005-735100- 2,500$ Amazon Capital Services, Inc. 73 10144005-736210- 2,000$ Amazon Capital Services, Inc. 74 10144005-739500- 400$
Amazon Capital Services, Inc. 75 10161101-722330- 300$
Amazon Capital Services, Inc. 77 15316001-735100- 4,500$ Amazon Capital Services, Inc. 78 15316001-739500- 13,000$ Amazon Capital Services, Inc. 79 15316001-774400- 4,000$ Amazon Capital Services, Inc. 80 15316001-774450- 500$
Amazon Capital Services, Inc. 81 15433006-732600- 1,000$ Amazon Capital Services, Inc. 82 15433006-734100- 500$
Amazon Capital Services, Inc. 83 15719012-737183- 1,000$ Amazon Capital Services, Inc. 84 15741003-735100- 1,500$ Amazon Capital Services, Inc. 85 15741003-736210- 500$
Amazon Capital Services, Inc. 86 15742001-737100- 19,500$ Amazon Capital Services, Inc. 87 15742001-737100-1099 500$ Amazon Capital Services, Inc. 88 20016001-739500- 1,250$ Amazon Capital Services, Inc. 89 20325602-735100-3410 100$ Amazon Capital Services, Inc. 90 20732003-735100- 2,000$ Amazon Capital Services, Inc. 91 20732004-735100- 1,800$ Amazon Capital Services, Inc. 92 20732004-739500- 500$
Amazon Capital Services, Inc. 93 20733001-735100- 3,300$ Amazon Capital Services, Inc. 94 20733001-738400- 500$
Amazon Capital Services, Inc. 95 20733001-739500- 1,500$ Amazon Capital Services, Inc. 96 25133003-735100-3610 1,000$ Amazon Capital Services, Inc. 97 25133003-739500-3610 400$ Amazon Capital Services, Inc. 98 25433004-735100-2412 2,500$ Amazon Capital Services, Inc. 99 25433004-739500-2412 1,000$ Amazon Capital Services, Inc. 100 26034001-735100- 500$ Amazon Capital Services, Inc. 101 29364002-735100- 2,400$ Amazon Capital Services, Inc. 102 30041005-732800- 6,500$ Amazon Capital Services, Inc. 103 30041005-735100- 4,500$ Amazon Capital Services, Inc. 104 30041005-737140- 6,000$ Amazon Capital Services, Inc. 106 35028001-735100- 200$ Amazon Capital Services, Inc. 107 10144002-735100- 1,900$ Amazon Capital Services, Inc. 108 24215001-737100-3054 1,000$ Amazon Capital Services, Inc. 109 10142001-736210-1091 3,000$ Amazon Capital Services, Inc. 110 10142001-735100-1088 3,700$ Amazon Capital Services, Inc. 111 10142001-739500-1091 6,000$ Amazon Capital Services, Inc. 112 10142001-736235-1088 2,000$ Amazon Capital Services, Inc. 113 10121001-733500- 600$ Amazon Capital Services, Inc. 116 35028001-722330- 1,500$ Amazon Capital Services, Inc. 118 10111001-737220- 1,800$ Amazon Capital Services, Inc. 121 10142001-737110-1088 500$ Amazon Capital Services, Inc. 122 P0009157-724525- 12,000$ Amazon Capital Services, Inc. 124 10142001-737100-1098 1,000$ Amazon Capital Services, Inc. 125 29364002-739500- 800$ Amazon Capital Services, Inc. 127 10142002-774400- 5,000$ Amazon Capital Services, Inc. 128 10111001-737100- 300$ 268,000$

DocuSign Envelope ID: F8446656-8F5D-440C-B33D-38961B85C11D CC MISC 00088979 2018 TR

CONTRACT MODIFICATION

MODIFICATION #5 ISSUE DATE: October 19, 2018

REFERENCE: Title: On-Line Marketplace for the Purchase of Goods and Services
Contractor: Amazon Services LLC
Period of Contract: January 18, 2017 through January 18, 2022

Modify the above referenced contract as follows:

1. Special Provision 10.7, which was added to the parties’ contract via Contract Modification # 1, dated November 17, 2017, is hereby deleted and replaced with the following:

10.7. ADDITION OF BUSINESS PRIME. Contractor’s Business Prime Program (currently described here) is hereby added to the Contract. PWCS’ access and use of the Business Prime Program will be pursuant to the Business Prime Program’s terms and conditions (currently available here). If PWCS chooses not to move forward with a paid Business Prime program, PWCS will be eligible to receive free standard shipping on eligible orders to the extent made available to Amazon Business customers (currently available for eligible purchases over $25 as described here).

Except for the changes provided herein, all other terms and conditions of this contract remain unchanged and in full force and effect.

Anthony E. Crosby, CPPO
Anthony E. Crosby, CPPO Purchasing
Supervisor
……………………………………………………………………………………………………………………………

Amazon Services LLC

PRINCE WILLIAM COUNTY PUBLIC SCHOOLS

_______________________________________ _______________________________________ Signature

Signature
P.O.

BOX 389, MANASSAS, VA 20108

WWW.PWCS.EDU

703.791.8743
, FAX
703.791.8610

Revised 7.12.13

Prentis Wilson VP, Amazon Business
_______________________________________
Name and Title
October 23, 2018
_______________________________________
Date
Anthony E. Crosby, CPPO
Purchasing Supervisor October
23, 2018
_______________________________________
Date

PURCHASING OFFICE

DocuSign Envelope ID: F8446656-8F5D-440C-B33D-38961B85C11D CC MISC 00088979 2018 TR

P.O.

BOX 389, MANASSAS, VA 20108

WWW.PWCS.EDU

703.791.8743
, FAX
703.791.8610

Revised 7.12.13

CC MISC 00054367 2018 TR

PURCHASING OFFICE
P.O. BOX 389, MANASSAS, VA 20108 WWW.PWCS.EDU 703.791.8743, FAX 703.791.8610 Revised 7.12.13

CONTRACT MODIFICATION
MODIFICATION #4 ISSUE DATE: July 11, 2018
REFERENCE: Title: On-Line Marketplace for the Purchase of Goods and Services
Contractor: Amazon Services, LLC
Period of Contract: January 18, 2017 through January 18, 2022 Modify the above referenced contract as follows:

1. The parties hereby acknowledge that Contractor has recently updated the Amazon Business Accounts Terms and Conditions ), which are incorporated by reference to Contract and currently available at
https://www.amazon.com/gp/help/customer/display.html/ref=b2b_250_tc?nodeId=201613180.

The parties hereby agree that pursuant to current Section 10 of the Terms and Conditions, MODIFICATIONS will no longer modify this Contract to account for future
Except for the changes provided herein, all other terms and conditions of this contract remain unchanged and in full force and effect.

Anthony E. Crosby
Anthony E. Crosby, CPPO.

Acting Supervisor of Purchasing
Amazon Services, LLC PRINCE WILLIAM COUNTY PUBLIC SCHOOLS _______________________________________ Anthony E. Crosby, CPPO Name and Title A c t i n g Supervisor of Purchasing _______________________________________ ______________________ _________________ D a t e D a t e
DocuSign Envelope ID: 0471DD66-3E33-4CDD-B42B-2E89D79196FA

CC MISC 00017679 2018 TR

PURCHASING OFFICE
P.O. BOX 389, MANASSAS, VA 20108 WWW.PWCS.EDU 703.791.8743, FAX 703.791.8610 Revised 7.12.13

CONTRACT MODIFICATION
MODIFICATION #3 I S S U E D A T E : M a r c h 7 , 2 0 1 8 REFERENCE:

Title: On-Line Marketplace for the Purchase of Goods
a n d S e r v i c e s
Contractor: Amazon Services LLC
Period of Contract: January 18, 2017 through January 18, 2022 Modify the above referenced contract as follows:

1. Add the following to the General Terms and Conditions under 3. Debarment Status:

3.1. Debarment and Suspension (Executive Orders 12549 and 12689 ) A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide Excluded Parties List System in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549.

Except for the changes provided herein, all other terms and conditions of this contract remain unchanged and in full force and effect.

Jim Totty
Jim Totty, CPPO, C.P.M.

Supervisor of Purchasing
Amazon Services LLC PRINCE WILLIAM COUNTY PUBLIC SCHOOLS _______________________________________ Jim Totty, CPPO, C.P.M.

Name and Title Supervisor of Purchasing
_______________________________________ ______________________ _________________ DocuSign Envelope ID: B8AB262A-C752-45A5-81ED-70E5A94670DE

CC MISC 00017679 2018 TR

PURCHASING OFFICE
P.O. BOX 389, MANASSAS, VA 20108 WWW.PWCS.EDU 703.791.8743, FAX 703.791.8610 Revised 7.12.13
D a t e D a t e
DocuSign Envelope ID: B8AB262A-C752-45A5-81ED-70E5A94670DE

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT

ECONOMIC DEVELOPMENT DIVISION

DISTRICT: 1

SUBJECT: APPROVE OPERATING COVENANT AGREEMENT WITH
ANTELOPE VALLEY SHOP, LLC ., TO CREATE A PARTNERSHIP

FOR REVITALIZATION, SECURITY AND OPERATIONAL COSTS

ASSOCIATED WITH THE ANTELOPE VALLEY MALL

RECOMMENDATION

Staff recommends that the City Council:

1. Approve Agreement No. A-8797, an Operating Covenant Agreement (Agreement) with Antelope Valley Shop, LLC., to create a partnership for revitalization, security and operational costs associated with the Antelope Valley Mall; and,

2. Authorize the City Manager Pro Tem or his designee to execute Agreement No.

A-8797 with Antelope Valley Shop, LL C., including minimal and/or non - substantial changes.

BACKGROUND

On November 30, 2022, Bridge Group Investments and Steerpoint Capital (Property Owner) acquired the Antelope Valley Mall (AV Mall) and six of the surrounding parcels totaling approximately 66.5 acres and 819,115 square feet of retail space.

Bridge Group Investments, founded in 2004, has invested more than 400 million dollars in retail, industrial, and multi-family real estate. Steerpoint Capital, founded in 2022, is a commercial real estate investment and advisory firm focused on executing value-added and opportunistic real estate strategies. In partnership with Bridge Group Investments, Steerpoint Capital has acquired several large commercial centers, including North County Mall in Escondido, The Shops at Montebello in Montebello, and Northridge Mall in Salinas, in addition to the AV Mall.

Report to Mayor and City Council
Re: Approve Operating Covenant Agrmt. No. A-8797
June 17, 2025

The AV Mall was originally built in 1990, and the building has not undergone significant renovations since its original construction. In late 2023, the Property Owner met with City staff to discuss revitalizing the former Forever 21 store, totaling 75,458 square feet, and attracting new dining and entertainment options. One of the biggest challenges of revitalizing the former Forever 21 building is the significant investment necessary to bring the tenant space into compliance with the current building code standards. The Property Owner estimates that the total cost to upgrade the former Forever 21 tenant space alone will exceed $8.1 million.

DISCUSSION

The proposed Agreement requires the Property Owner to make substantial improvements to the AV Mall, which include the following:

 Renovations to the former Forever 21 building;
 Enter into a long-term lease agreement with an entertainment tenant;  Renovate the food court and achieve at least 70% occupancy;  Upgrade the existing security system;
 Increase staffed security hours; and,
 Deliver a space within the mall for a local law enforcement substation.

The City proposes to support the operational costs of these tasks by making covenant payments in response to the achievement of specific milestones as outlined below:

 $2 million at the issuance of the Certificate of Occupancy for the entertainment tenant;
 $1.5 million two years after the issuance of the Certificate of Occupancy, based on the continued operation of the entertainment tenant or a replacement tenant and commencement of new occupancy within the food court; and,  $1.5 million five years after the issuance of the Certificate of Occupancy, based on the continued operation of the entertainment tenant or a replacement tenant, and completion of the food court and occupancy above 70% of the total spaces in the food court.

Approval of this Agreement will provide the City with a highly sought-after entertainment tenant, increase business attraction, and create additional local sales tax revenues, property tax revenues , and employment benefits to the local workforce. Additionally, investment in the AV Mall provides a significant public purpose by fostering a business and civic environment that will attract additional businesses and investment in the community due to the availability of increased goods, services, entertainment , and economic activity.

Report to Mayor and City Council
Re: Approve Operating Covenant Agrmt. No. A-8797
June 17, 2025

FISCAL IMPACT

$5,000,000; in three payments over five years. The first installment to be funded from the 2023 Lease Bond Revenue. The City will, as a result, benefit from increased sales tax and property tax revenues.

STRATEGIC PLAN

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

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

Prepared by: Megan Taggart, Director of Economic and
Community Development
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS

Agrmt. No. A-8797, Operating Covenant Agreement with Antelope Valley Shop, LLC 1-20

A-8797

OPERATING COVENANT AGREEMENT

This operating Covenant Agreement (“Covenant Agreement”) is dated [_____ ___, 2025], for reference purposes only and is entered into by and between the CITY OF PALMDALE, a California Municipal corporation and chartered city (“City”) and ANTELOPE VALLEY SHOP, LLC (“Owner”). City and Owner enter into this Covenant Agreement with reference to the following recited facts (each a “Recital”):

RECITALS
WHEREAS, Owner owns a regional shopping Mall with multiple tenants within the City of Palmdale, California; and
WHEREAS, in consideration of the new and additional local sales tax revenues, property taxes, employment benefits, and other tangible and intangible benefits that are expected to be received by City arising from the Owner’s long term lease with an entertainment tenant (Tenant is more formally defined in Section 1.3.23) in its Mall as well as Food Court new occupancy exceeding 70% within the City, City agrees to provide certain payments to Owner to assist with the operation of Owner’s business within the City; and
WHEREAS, the incentives provided in this Agreement are intended to ensure Owner secures Tenant and pursues improvements to the Food Court at the Mall, and that Tenant or Replacement Tenant, remains in Mall for not less than five (5) years; and WHEREAS, as an incentive for the operation of Owner’s regional Mall, Owner has requested from the City assistance for operation costs associated with the Owner’s property in an amount not to exceed five million dollars ($5,000,000), paid out in three payments over five (5) years as determined by certain milestones, subject to the limitations set forth in this Agreement; and
WHEREAS, the City has further determined that the covenanted operation of Owner’s property serves the additional public purpose of fostering a business and civic environment that may attract additional businesses and investment in the community due to the availability of the increased public and private services and economic activity resulting therefrom. Accordingly, the City has also determined that its entry into this Agreement serves a primary and significant public purpose, while providing only incidental benefits to a private party.

NOW, THEREFORE, in consideration of the mutual promises contained herein, and for such other good and valuable consideration, the receipt of which is hereby acknowledged, the City of Palmdale and Antelope Valley Shop, LLC agree as follows:
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ARTICLE 1. EFFECTIVE DATE; PARTIES; DEFINITIONS

1.1 Effective Date of Covenant Agreement. This Covenant Agreement will not become effective (the ) until the date on which all of the following are true:

1.1.1 This Covenant Agreement has been approved and executed by the appropriate authorities of Owner, as defined herein, and delivered to the City;

1.1.2 Following all legally required notices and hearings, this Covenant Agreement has been approved by the City Council; and

1.1.3 This Covenant Agreement has been executed by the appropriate authorities of the City and delivered to and accepted by Owner.

Owner hereby expressly agrees to promptly continue and, as appropriate under this Agreement, commence to completion all promised improvements, expansions and operations required by this Agreement. Tenant shall open for business by December 31, 2027, which date shall be certified by Owner to City.

If all of the foregoing conditions precedent have not been satisfied by December 31, 2027, then this Covenant Agreement shall not thereafter become effective, and any prior signatures and approvals of the Parties will be deemed void and of no force or effect.

1.2 Parties to Covenant Agreement.

1.2.1 The City. Notices shall be sent to the City as follows: To the City:

City of Palmdale
Attn: City
Manager

With a copy to: Attn: Palmdale City
Attorney

a. The City represents and warrants to Owner that:
i. The City is a public body, corporate and politic,
exercising governmental functions and powers and organized and existing under the Charter of the City of Palmdale and, as authorized by the charter, laws of the State of California;
ii. The City has taken all actions required by law to
approve the execution of this Covenant Agreement;
iii. The City’s entry into this Covenant Agreement and/or the performance of the City’s obligations under this Covenant Agreement does not violate any contract, agreement or other recognized and/or enforceable legal obligations of the City;
iv. The City’s entry into this Covenant Agreement and/or the performance of the City’s obligations under this Covenant Agreement does not constitute a violation of any state or federal statute or judicial decision to which the City is

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subject;

v. There are no pending lawsuits or other actions or
proceedings which would prevent or impair the timely performance of the City’s obligations under this Covenant Agreement;
vi. The City has the legal right, power and authority to enter into this Covenant Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Covenant Agreement has been duly authorized and no other action by the City is requisite to the valid and binding execution, delivery and performance of this Covenant Agreement, except as otherwise expressly set forth herein; and
vii. The individual executing this Covenant Agreement is authorized to execute this Covenant Agreement on behalf of the City. b. The representations and warranties set forth above are material consideration to Owner and the City acknowledges that Owner is relying upon the representations set forth above in undertaking Owner’s obligations set forth in this Covenant Agreement.
c. As used in this Covenant Agreement as to all terms,
representations, warranties, recitals or other Agreement required or related communication the term “City’s actual current knowledge” shall mean, and shall be limited to, the actual current knowledge of the office of the City Manager as of the Effective Date, without having undertaken any independent inquiry or investigation for the purpose of making such representation or warranty and without any duty of inquiry or investigation. d. All of the terms, covenants and conditions of this Covenant Agreement shall be binding on and shall inure to the benefit of the City and its nominees, successors and assigns.

1.2.2 Owner. Notices shall be sent to Owner as follows:

To Owner:

ANTELOPE VALLEY SHOP,
LLC
10880 Wilshire Blvd., Suite
1280
Los Angeles, CA 90024
Attn: Bo Okoroji
Email:
[email protected]

with copies to:

ANTELOPE VALLEY SHOP,
LLC
Attn: Management Office
1233 Rancho Vista Blvd.,
Palmdale, CA 93551
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a. Owner represents and warrants to the City that:
i. Owner is a duly formed California limited liability
corporation, qualified and in good standing to do business under the laws of the State of California;

ii. The individual(s) executing this Covenant Agreement is/are authorized to execute this Covenant Agreement on behalf of Owner; iii. Owner has taken all actions required by law to approve the execution of this Covenant Agreement;
iv. Owner’s entry into this Covenant Agreement and/or
the
performance of its obligations under this Covenant Agreement does not violate any contract, agreement or other legal obligation of the Owner;
v. Owner’s entry into this Covenant Agreement and/or
the performance of its obligations under this Covenant Agreement does not constitute a violation of any state or federal statute or judicial decision to which Owner is subject; vi. There are no pending lawsuits or other actions or
proceedings which would prevent or impair the timely performance of Owner’s obligations under this Covenant Agreement; and
vii. Owner has the legal right, power and authority to enter into this Covenant Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Covenant Agreement have been duly authorized and no other action by Owner is requisite to the valid and binding execution, delivery and performance of this Covenant Agreement, except as otherwise expressly set forth herein.
b. The representations and warranties set forth herein are material consideration to the City and Owner acknowledges that the City is relying upon the representations set forth above in undertaking the City’s obligations set forth above. c. As used in this Covenant Agreement, the term “actual current knowledge of the owner” shall mean, and shall be limited to, the actual current knowledge of ANTELOPE VALLEY SHOP, LLC , as of the Effective Date, without having undertaken any independent inquiry or investigation for the purpose of making such representation or warranty and without any duty of inquiry or investigation.

d. All of the terms, covenants and conditions of this Covenant Agreement shall be binding on and shall inure to the benefit of Owner and its permitted nominees, successors and assigns. Wherever the term “Owner” is used herein, such term shall include any permitted nominee, assignee or successor of Owner. e. The qualifications and identity of Owner are of particular concern to the City, and it is because of such qualifications and identity that the City has entered into this Covenant Agreement with Owner. No voluntary or involuntary successor- in-interest of Owner shall acquire any rights or powers under this Covenant Agreement 5-20

except as expressly set forth herein.

1.2.3 The City and Owner are sometimes individually referred to as “Party” and collectively as “Parties

1.3 Definitions.

1.3.1 “Affiliate”, as defined by the Internal Revenue Code (IRC) Section 1504,
means any corporation included in Owner’s affiliated group conducting ecommerce sales in the City.

1.3.2 “CDTFA” means the California Department of
Tax and Fee Administration.

1.3.3 “City” means the City of Palmdale, a California chartered city and municipal corporation, and any nominee, assignee of, or successor to, its rights, powers and responsibilities.

1.3.4 “Covenant Payment(s)” means those contingent payments to be made by the City to the Owner pursuant to Section 3.2 of this Covenant Agreement in consideration of the Covenants and Owner’s timely and faithful performance thereunder.

1.3.5 “Covenant Term” means, a period of five (5) years following the issuance of the Certificate of Occupancy for the Tenant (unless terminated sooner).

1.3.6 “Covenants” means those covenants described in Section 3.1 herein.

1.3.7 “Eligibility Period” means the period commencing as of the first (1st) day of Operating Year 1 and ending on the last day of Operating Year 5.

1.3.8 “Governmental Authority” means any nation or government, any federal, state, local, municipal or other political subdivision thereof or any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

1.3.9 “Law” means any law (including common law), constitution, statute, treaty, regulation, rule, ordinance, opinion, release, ruling, order, injunction, writ, decree, bond, judgment, authorization or approval, lien or award by or settlement agreement with any Governmental Authority.

1.3.10 “Liquidating Damages” means, for purposes of Section 3.6, as follows:

1.3.11 If the breach occurs during Operating Years 1 through 3, an amount equal to sixty-six percent (66%) of the Covenant Payments paid to Owner at any time prior to the Operating Year in which the breach occurs.

1.3.12 If the breach occurs during Operating Years 4 through 5, an amount equal to thirty-three percent (33%) of the Covenant Payments paid to Owner at any time prior to the Operating Year in which the breach occurs.

1.3.13 “Mall” means the regional commercial shopping center operated on the Property by Owner.

1.3.112 “Operating Year” means and refers to the twelve (12) month 6-20

period starting on the Effective Date and each consecutive subsequent twelve (12) month period until the 5th anniversary of the Effective Date. Each Operating Year may be referred to in this

Covenant Agreement in numerical succession as “Operating Year 1”, “Operating year 2” and so on up to “Operating year 5”.

1.3.113 “Owner” means and refers to ANTELOPE VALLEY SHOP, LLC, a California limited liability corporation and its successors and assigns, cumulatively.

1.3.114 “Owner’s Sales Activites” means the commercially reasonable business practices and activities associated with Owner’s retail and wholesale sale of consumer products.

1.3.115 “Penalty Assessments” means and refers to penalties, assessments, collection costs and other costs, fees or charges resulting from late or underpaid payments of Sales Tax and which are levied, assessed or otherwise collected from Owner.

1.3.116 “Property” means that certain real property commonly known as Antelope Valley Mall within the City of Palmdale.

1.3.117 “Replacement Tenant” means a tenant that takes over the leased space of Tenant and meets the same operational and reputational standards.

1.3.118 “Sales Tax” means and refers to all sales and use taxes levied under the authority of the Sales Tax Law attributable to Owner’s Sales Activities the Mall excluding that which is to be refunded to Owner because of an overpayment of such tax.

1.3.119 “Sales Tax Law” means and refers to: (a) California Revenue and Taxation Code Section 7200 et seq., and any successor law thereto; (b) any legislation allowing City or other public agency with jurisdiction in City to levy any form of local Sales Tax on the operations of Owner; and (c) regulations of the CDTFA and other binding rulings and interpretations relating to (a) and (b) of this Section 1.3.19.

1.3.120 “Sales Tax Revenues” means the net Sales Tax actually received by the City from the CDTFA pursuant to the application of the Sales Tax Law (as such statutes may hereafter be amended, substituted, replaced, re-numbered, moved or modified by any successor law) attributable to the Business Activities in a particular Operating Year.

Sales Tax Revenues shall not include: (i) Penalty Assessments; (ii) any Sales Tax levied by, collected for or allocated to the State of California, the County of San Bernardino, or a district or any entity (including an allocation to a statewide or countywide pool); (iii) any administrative fee charged by the CDTFA; (iv) any Sales Tax subject to any sharing, rebate, offset or other charge imposed pursuant to any applicable provision of federal, state or local (except City’s) law, rule or regulation; (v) any Sales Tax attributable to any transaction not consummated within the Eligibility Period; (vi) the Transactions and Use Tax approved by the passage of Measure Q in 2022; or (vii) any Sales Tax (or other funds measured by Sales Tax) required by the State of California to be paid over to another public entity (including the State) or set aside and/or

1.3.121 “Taxable Palmdale Sales” means Owner’s taxable California sales transactions, including, but not limited to, sales through an Internet website or phone sales, that result from either Owner’s or Tenants on the Mall property Sales Activities or for products shipped from Palmdale location to addresses located in California.

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1.3.222 “Tenant” means an entity or business that operates within the space in the Mall formerly occupied by Forever 21 and primarily offers amusement, recreational, or cultural experiences as its principal business activity. This includes, but is not limited to, movie theaters, bowling alleys, arcades, live performance venues, immersive or interactive experiences, virtual reality attractions, family entertainment centers, and similar uses. The Tenant shall occupy a minimum of 50,000 square feet of the space.

ARTICLE 2. SECURITY ENHANCEMENTS.

2.1 Security Upgrades. Owner agrees that it shall take the following actions to enhance security at the Property: (i) upgrade the existing security camera systems (the extent of such upgrade shall be determined by Owner in its commercially reasonable judgement), (ii) provide, in a location to be determined by Owner, space within the Mall for a local law enforcement substation at no cost; provided, however, that any such space shall be delivered by Owner in its “as-is” condition, and Owner shall have no obligation to perform any improvements or alterations in connection therewith; and (iii) increased security hours which Landlord may change from time to time as reasonably determined by Owner. Nothing herein shall be interpreted to require the City’s approval of or restrict Owner’s discretion to make future decisions regarding security staffing, hours, systems, or any other operations at the Property which shall be made at Owner’s sole discretion and in accordance with Owner’s commercially reasonable judgment.

2.2 Security Review. Owner and City agree to use best efforts to meet at a mutually agreed upon time prior to the date each Operating Covenant Payment is due to review and consider modifications to the security operation plan at the Property. The occurrence of any such meeting shall not be a condition precedent to, or otherwise affect, any payments and obligations due under the Covenant Agreement.

ARTICLE 3. OWNER COVENANTS RUNNING WITH THE LAND; COVENANT PAYMENTS; REMEDIES FOR BREACH.

3.1 Covenants Running with the Land.

3.1.1 Operating and Use Covenant. Subject to Section 4.9, Owner covenants
and agrees that for the Covenant Term Owner shall operate, or cause to be operated upon the Property, the Mall in a commercially reasonable business manner, consistent with all applicable Law. Owner will operate its business in a commercially reasonable and prudent manner. Owner’s obligations pursuant to the immediately preceding sentence include, without limitation, the obligation to obtain all federal, state and local licenses and permits required for the operation of the business and to advertise, market and promote the business in a commercially reasonable fashion.

3.1.2 Covenant to Designate City as the Point of Sale. Owner covenants and agrees that, for the term of the Operating and Use Covenant as described in Section 8-20

3.1.1, Owner shall maintain such licenses and permits as may be required by any governmental agency to conduct Owner’s Sales Activities related to the Business Location that Participates in the Sales Process. Except as otherwise provided by applicable Law, including but not limited to Government Code Section 53084.5, Owner shall include as a requirement in any lease with tenants, that they comply with applicable law to designate City as the “point of sale” and

consummate at the Business Location that Participates in the Sales Process, all Taxable Palmdale Sales.

3.1.3 Owner’s Additional Obligations Regarding Repairs and Alterations to Business Location that Participates in the Sales Process. Owner covenants and agrees that, for the term of the Operating and Use Covenant as described in Section 3.1.1, the Owner shall maintain, or cause to be maintained, the Mall in good condition, ordinary wear and tear excepted, and free from the unreasonable accumulation of trash or other debris and agrees to promptly remove, or cause the removal of, all graffiti upon the Business Location that Participates in the Sales Process. Owner shall also maintain or cause to be maintained the landscaping upon the Property in a good condition.

3.1.4 Covenant Against Solicitation and Acceptance of Economic Incentives During the Term of the Operating Use Covenant. Owner covenants and agrees that, for the term of the Operating and Use Covenant as described in Section 3.1.1, Owner will not directly or indirectly solicit or accept any “Financial Assistance” from any other public or private person or entity, if such Financial Assistance is given for the purpose of causing or would result in Owner’s breach of any of the Covenants. For purposes of this Section 3.1.4, the term “Financial Assistance” means any direct or indirect payment, subsidy, rebate or other similar or dissimilar monetary or non-monetary benefit, including, without implied limitation, payment of land subsidies, relocation expenses, public financing, property or sales tax relief, rebates, exemptions or credits, relief from public improvement obligations, and payment for public improvements to or for the benefit of the Owner; notwithstanding the foregoing, Owner retains the right to pursue Property Assessed Clean Energy (PACE) lending programs and rebates for solar panels available at the State or Federal level.

3.1.5 Use of Property. Owner covenants and agrees that the Property shall be put to no use other than those uses specified in the City’s General Plan, the Specific Plan, zoning ordinances, and this Covenant Agreement as the same may be amended from time to time. Nothing in this Section 3.1.5 shall limit, expand, modify or otherwise affect any right of the Owner to continue any legal nonconforming use upon the Property following changes in the City’s General Plan or zoning ordinances. For the term of this Operating Covenant, the Owner may use the Property only for the purposes of the operation of the Mall and conducting Owner’s Sales Activities in accordance with this Covenant Agreement.

3.2 Covenant Payments.

3.2.1 Intentionally Omitted.

3.2.2 Intentionally Omitted.
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3.2.3 Covenant Payment Amount. In consideration of Owner’s performance of its obligations set forth in this Agreement, and subject to satisfaction of all conditions precedent thereto, the City shall, for each Operating Year during the Eligibility Period that the City receives Local Sales Tax Revenues, pay to Owner: ANTELOPE

VALLEY SHOP, LLC

3.2.4 Operating Covenant Payment 1: $2,000,000. At time of scheduling of final inspection by the Building and Safety Division for the Tenant Certificate of Occupancy.

b. Operating Covenant Payment 2: $1,500,000. Two years after the issuance of the Certificate of Occupancy, based on the continued operation of the Tenant or a Replacement Tenant, and the commencement of new occupancy within the Food Court
c. Operating Covenant Payment 3: $1,500,000. Five years after Certificate of Occupancy based on the continued operation of the Tenant or a Replacement Tenant, AND completion of the Food Court and occupancy above 70% of the total spaces in the Food Court.

The City reserves the right to delay Covenant Payments 2 and 3 by an amount of time equal to the duration of any period in which the Tenant ceases to operate during the respective payment period (“Delay Period”). The Delay Period shall only apply if the Tenant has been non-operational for 30 consecutive days or more. Notwithstanding the foregoing, the Owner reserves the right to specify the date and manner in which City shall make Covenant Payments when due. This Section 3.2 and the obligation to make the payments required herein shall survive the expiration or termination of this Agreement.

3.2.4 Owner Sales Tax Information. Owner acknowledges and agrees that the sales and use tax reporting and payment information related to sales and use taxes attributable to business activities by the Owner may become a public record as a result of the covenants of Owner contained in Section 3 and the Covenant Payments to be made by the City to Owner (as further described in Section 3.2.3). Owner hereby authorizes the City to use the sales and use tax reporting and payment information related to the Owner’s Sales Activities by the Mall to allow the City to perform its obligations under this Agreement and to disclose such information when, in the City Attorney’s reasonable opinion, such disclosure is required by law.

3.2.5 Intentionally Omitted.

3.2.6 Intentionally Omitted.

3.2.7 Owner’s Notice of Appeal; Negotiation Period. Notwithstanding any other provision of law, including, without implied limitation, any statutes of limitation provided therefore in the California Government Code or the California Code of Civil Procedure, the City’s determination Covenant Payment shall be deemed final, conclusive, and non-appealable unless, within sixty (60) calendar days from the receipt of the Covenant Payment by Owner, Owner notifies the City in writing that Owner appeals the Covenant 10-20

Payment, which notice must specifically identify the matter appealed and all of the bases for such appeal (“Notice of Appeal”). Any Covenant Payment that is not appealed in the manner and within the time limits set forth above, shall be final and conclusive as against Owner and all others claiming by or through Owner. The provisions of this Section 3.2.7 shall be strictly construed and Owner waives, to the maximum legal extent, any statutory or judicially created right to institute any administrative or judicial proceeding to contest any matter set forth in a Notice of Appeal that is not timely appealed in strict accordance with this Section 3.2.7. If Owner files a timely Notice of Appeal with the City, the City and Owner shall negotiate in good faith to resolve their dispute for a Negotiation Period. If, by the end of the Negotiation Period, the City and Owner are unable to resolve the dispute set forth in the Notice of Appeal, each of them may exercise any judicial remedy available to them pursuant to this Agreement for the resolution of such dispute; provided, however, that any provision of law to the contrary notwithstanding, such judicial remedy must be instituted (defined as the filing of an action in a court of competent jurisdiction in strict accordance with the terms of this Agreement) within one hundred twenty (120) calendar days following the end of the Negotiation Period or be barred forever. In connection therewith, the

City and Owner irrevocably consent to the appointment of a referee to resolve such dispute in accordance with California Code of Civil Procedure Section 638, et seq., and to pay equal amounts of the cost of such referee.

3.2.8 No Accrual of Interest for Disputed Covenant Payment(s). The City and Owner agree that any disputed amount shall not accrue interest during the pendency of any Negotiation Period or subsequent legal proceeding (including any appeals filed in connection therewith), unless the court makes a determination upon recommendation of the referee that the City acted in bad faith with regard to the dispute, in which case, any amount ultimately adjudged to be owing by the City shall be deemed to have accrued interest at the rate of six percent (6%) simple interest per annum, commencing on the ninetieth (90th) calendar day following the end of the Negotiation Period and continuing thereafter until paid. Owner hereby waives, to the maximum legal extent, the right to the imposition of any different rate of interest in accordance with any provision of law.

3.2.9 Covenant Payment Paid From Any Source of City Funds. Any Covenant Payment due under Section 3.2.3 may be payable from any source of any funds of the City legally available for such purpose. The City covenants to reasonably consider such actions as may be necessary to include all payments owed hereunder in each of its annual budgets during
the Eligibility Period and to reasonably consider the necessary annual budgetary appropriations for all such payments.

3.2.110 Making Covenant Payment Is A Contingent Obligation of City.

The City’s obligations under Section 3.2.3 are contingent on a fiscal year to fiscal year basis and, for each Operating Year within the Eligibility Period, the City’s obligations to make any payments to Owner under this Agreement are expressly contingent upon Owner, for the entirety of such Operating Year, completely fulfilling its material obligations under this Agreement.

3.2.111 Intentionally Omitted.
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3.2.112 Covenants Run With the Property. The covenants of this Section

3.2 shall run with the Property and shall remain in effect at all times during the Eligibility Period.

3.3 Default.

3.3.1 Owner Default. City shall provide Owner with written notice of Owner’s failure (“Owner Default”) to strictly abide by any material provision of this Covenant Agreement, including, without limitation, the Covenants. Owner shall have thirty (30) days from the date of such notice to either cure such Owner Default, or, if such Owner Default cannot be reasonably cured during such thirty (30) day period, to commence to cure within said thirty (30) day period and diligently prosecute such cure to completion thereafter.

3.3.2 City Default. Owner shall provide City with written notice of City’s failure (“City Default”) to strictly abide by any material provision of this Covenant Agreement. City shall have thirty (30) days from the date of such notice to either cure such City Default, or, if such City Default cannot be reasonably cured during such thirty (30) day period, to commence to cure within said thirty (30) day period and diligently prosecute such cure to completion thereafter.

3.4 General Remedies for Default. Upon either a City Default, after expiration of all applicable notice and grace periods, or an Owner Default, after expiration of all applicable notice

and grace periods (as defined in Section 3.3), Owner or City (as applicable) shall have the right to seek all available legal and equitable remedies, unless otherwise expressly provided to the contrary herein. Notwithstanding anything in this Covenant Agreement to the contrary, (a) neither Party shall be liable to the other Party for consequential damages and (b) in no event shall the City have the right of specific performance or other mandatory injunctive relief to compel the Owner to operate the Business Location that Participates in the Sales Process. Unless prohibited by law or otherwise provided by a specific term of this Covenant Agreement, the rights and remedies of the City and the Owner under this Covenant Agreement are nonexclusive and all remedies hereunder may be exercised individually or cumulatively, and either Party may simultaneously pursue inconsistent and/or alternative remedies. Either Party may, upon the Default of the other Party, after expiration of all applicable notice and grace periods, and in addition to pursuing all remedies otherwise available to it, terminate this Covenant Agreement and all of its obligations hereunder without cost, expense or liability to itself.

3.5 The City’s Rights to Terminate its Obligations under Section 3.2. The City’s
obligations under Section 3.2 shall automatically terminate without cost, expense, or liability to City, upon the occurrence of any one or more of the following: (a) Owner Default, as to which any applicable cure period provided for herein has expired; or (b) the end of the Eligibility Period; or (c) upon the final determination by a court of competent jurisdiction that any one or
more of the Covenants are void, voidable, invalid, or even unenforceable for any reason whatsoever, including, without limitation, legal infirmity.

3.6 Liquidated Damages.
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3.6.1 Owner Default with Respect to Obligations Under Sections 3.1.1 and 3.1.2. The Parties acknowledge that the consideration to the City for its entry into this Covenant Agreement and the performance of its obligations hereunder include the City’s receipt of Sales Tax Revenues, employment and other payroll taxes, property taxes, and other direct and indirect financial and non-financial benefits arising from Owner’s Sales Activities and the operation and location of the Mall in the City in accordance with Article 3 of this Covenant Agreement. Owner agrees that the City will suffer damages if Owner commits any Owner Default with respect to any of its obligations arising under Sections

3.1.1 and 3.1.2. The Parties agree that the exact determination of such damages would be impracticable and extremely difficult to quantify. Accordingly, the Parties have determined that Liquidated Damages (as determined pursuant to Section 1.3.11) represents a reasonable estimate of the damages which would be suffered by the City if Owner commits any Owner Default with respect to any of its obligations set forth in Sections 3.1.1 and 3.1.2.

Accordingly, as its sole and exclusive monetary remedy for an Owner Default with respect to any of its covenants and obligations set forth in Sections 3.1.1 and 3.1.2, the City shall be entitled to (1) terminate this Covenant Agreement and the entirety of its obligations hereunder, including any accrued and unpaid Covenant Payments, and (2) receive from Owner the applicable amount of Liquidated Damages as provided by Section 1.3.11.

3.6.2 ACKNOWLEDGEMENT OF REASONABLENESS OF
LIQUIDATED DAMAGES. UPON AN OWNER DEFAULT WITH RESPECT TO ANY OF ITS OBLIGATIONS SET FORTH IN SECTIONS 3.1.1 AND 3.1.2, FOLLOWING NOTICE AND OPPORTUNITY TO CURE PURSUANT TO SECTION 3.3.1, THE CITY

AND OWNER ACKNOWLEDGE AND AGREE THAT IT WOULD BE EXTREMELY

DIFFICULT AND IMPRACTICAL TO ASCERTAIN THE AMOUNT OF DAMAGES THAT WOULD BE SUFFERED BY THE CITY WITH RESPECT TO SUCH DEFAULT.

HAVING MADE DILIGENT BUT UNSUCCESSFUL ATTEMPTS TO ASCERTAIN

THE ACTUAL

DAMAGES THE CITY WOULD SUFFER, THE PARTIES AGREE THAT THE

LIQUIDATED DAMAGES AMOUNT AS DETERMINED IN ACCORDANCE WITH SECTION 1.3.11 REPRESENTS A REASONABLE ESTIMATION OF THOSE DAMAGES. THEREFORE, UPON AN OWNER DEFAULT WITH RESPECT TO ANY OF ITS OBLIGATIONS SET FORTH IN SECTIONS 3.1.1 AND 3.1.2, AS ITS SOLE

AND EXCLUSIVE REMEDY FOR SUCH DEFAULT, THE CITY SHALL BE ENTITLED TO (1) RECEIPT OF THE LIQUIDATED DAMAGES AMOUNT CALCULATED IN ACCORDANCE WITH SUBSECTION 1.3.11, WHICH OWNER SHALL PAY WITHIN TEN (10) DAYS FOLLOWING WRITTEN DEMAND FROM THE CITY, AND (2) TERMINATE THIS AGREEMENT AND THE ENTIRETY OF ITS

OBLIGATIONS HEREUNDER, INCLUDING ANY ACCRUED BUT YET UNPAID COVENANT PAYMENTS.

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Initials of Authorized Initials of Authorized
City Representative Owner Representative

ARTICLE 4. GENERAL TERMS

4.1 Tax Consequences. Owner acknowledges that it may experience tax consequences as a result of its receipt of the payments provided for in this Covenant Agreement and agrees that it shall bear any and all responsibility, liability, costs, and expenses connected in any way therewith.

4.2 Rights Not Granted Under Covenant Agreement. This Covenant Agreement is not, and shall not be construed to be, a Development Agreement under Government Code Section 65864 et seq. This Covenant Agreement is not, and shall not be construed to be, an approval or an agreement to issue permits or a granting of any right or entitlement by the City concerning the Business Location that Participates in the Sales Process, Owner’s Sales Activities or any other project, development, or construction by the Owner in the City. This Covenant Agreement does not, and shall not be construed to, exempt Owner from the application and/or exercise of the City’s or City’s power of eminent domain or its police power, including, but not limited to, the regulation of land uses and the taking of any actions necessary to protect the health, safety, and welfare of its citizenry.

4.3 Consent. Whenever consent or approval of any party is required under this Covenant Agreement, that party shall not unreasonably withhold, delay or condition such consent or approval unless otherwise allowed by a specific provision of this Covenant Agreement.

4.4 Notices and Demands. All notices or other communications required or permitted between the City and Owner under this Covenant Agreement shall be in writing, and may be (i) personally delivered, (ii) sent by United States registered or certified mail, postage prepaid, return receipt requested, (iii) sent by telecopier, or (iv) sent by nationally recognized overnight courier service (e.g., Federal Express), addressed to the Parties at the addresses provided in Article 1, subject to the right of either party to designate a different address for itself by notice similarly given. Any notice so given by registered or certified United States mail shall be deemed to have been given on the second business day after the same is deposited in the United States mail. Any notice not so given by registered or certified mail, such as notices delivered by

telecopier or courier service (e.g., Federal Express), shall be deemed given upon receipt of the same by the party to whom the notice is given.

4.5 Nonliability of Officials and Employees. No Council member, official, contractor, consultant, attorney or employee of the City shall be personally liable to Owner, any voluntary or involuntary successors or assignees, or any lender or other party holding an interest in the Property, in the event of any default or breach by the City, or for any amount which may become due to the Owner or to its successors or assignees, or on any obligations arising under this Covenant Agreement. No board member, officer, contractor, consultant, attorney or employee of the Owner shall be personally liable to the City, any voluntary or involuntary successors or assignees, or any lender or other party holding an interest in the Property, in the event of any default or breach by the Owner, or for any amount which may become due to the City or to its successors or assignees, or on any 14-20

obligations arising under this Covenant Agreement.

4.6 Conflict of Interests. No board member, official, contractor, consultant, attorney or employee of the City or City shall have any personal interest, direct or indirect, in this
Covenant Agreement nor shall any such board member, official or employee participate in any decision relating to this Covenant Agreement which affects his/her personal interests or the interests of any corporation, partnership or association in which he/she is directly or indirectly interested.

4.7 Pledge or Hypothecation of Covenant Payments. Owner may assign any Covenant Payment(s) due in accordance with the terms of this Covenant Agreement (but not any other right or obligation of this Covenant Agreement) upon thirty (30) days’ prior written notice to City as collateral for any loan or financing obtained by the Owner in connection with the Business Location that Participates in the Sales Process; provided that nothing in this Section 4.8 shall be deemed to limit the operation of Section 4.18. Without limiting the general applicability of the foregoing, Owner acknowledges that Owner’s lender and any transferee of Owner’s lender shall be subject to the transfer restrictions of Section 4.18.

4.8 Tort Claims: The Parties agree that the California Tort Claims Act is applicable to this Agreement.

4.9 Time Deadlines Critical; Extensions and Delays; No Excuse Due to Economic Changes. Time is of the essence in the performance of the City’s and Owner’s obligations under this Covenant Agreement. In addition to specific provisions of this Covenant Agreement providing for extensions of time, times for performance hereunder shall be extended where delays or defaults are due to war; insurrection; any form of labor dispute; lockouts; riots; floods; earthquakes; fires; acts of God or of third-parties; third- party litigation; acts of a public enemy; initiative or referenda; acts of governmental authorities (except that the failure of the City to act as required hereunder shall not excuse its performance); moratoria (except those imposed or enacted by the City); epidemics; quarantine restrictions; and freight embargoes (collectively, “Enforced Delays”) provided, however, that the Party claiming the extension notify the other Party of the nature of the matter causing the default; and, provided further, that the extension of time shall be only for the period of the Enforced Delays. However, deadlines for performance may not be extended as provided above due to any inability of the Owner to obtain or maintain acceptable financing for the operation of the Business Location that Participates in the Sales Process.

ANYTHING IN THIS COVENANT AGREEMENT TO THE CONTRARY

NOTWITHSTANDING, OWNER EXPRESSLY ASSUMES THE RISK OF

UNFORESEEABLE CHANGES IN ECONOMIC CIRCUMSTANCES AND/OR

MARKET DEMAND/CONDITIONS AND WAIVES, TO THE GREATEST LEGAL

EXTENT, ANY DEFENSE, CLAIM, OR CAUSE OF ACTION BASED IN WHOLE

OR IN PART ON ECONOMIC NECESSITY, IMPRACTICABILITY,

FRUSTRATION OF PURPOSE, CHANGED ECONOMIC CIRCUMSTANCES OR SIMILAR THEORIES.
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OWNER EXPRESSLY AGREES THAT ADVERSE CHANGES IN

ECONOMIC CONDITIONS, EITHER OF OWNER SPECIFICALLY OR THE

ECONOMY GENERALLY, OR CHANGES IN THE MARKET CONDITIONS OR

DEMANDS, SHALL NOT OPERATE TO EXCUSE OR DELAY THE STRICT

OBSERVANCE OF EACH AND EVERY OF THE OBLIGATIONS, COVENANTS, CONDITIONS AND REQUIREMENTS OF THIS COVENANT AGREEMENT.

OWNER EXPRESSLY ASSUMES THE RISK OF SUCH ADVERSE ECONOMIC

OR MARKET CHANGES, WHETHER OR NOT FORESEEABLE AS OF
OWNER’S EXECUTION OF THIS COVENANT AGREEMENT.

4.110 Attorney’s Fees. In the event of the bringing of an arbitration, action or suit by a Party hereto against another Party hereunder by reason of any breach of any of the covenants or agreements or any intentional inaccuracies in any of the representations and warranties on the part of the other Party arising out of this Covenant Agreement or any other dispute between the Parties concerning this Covenant Agreement or the Property, then, in that event, the prevailing party in such action or dispute, whether by final judgment or arbitration award, shall be entitled to have and recover of and from the other Party all costs and expenses of suit or claim, including actual attorneys’ fees. Any judgment, order or award entered in any final judgment or award shall contain a specific provision providing for the recovery of all costs and expenses of suit or claim, including actual attorneys’ fees (collectively, the “Costs”) incurred in enforcing, perfecting and executing such judgment or award. For the purposes of this Section 4.11, “Costs” shall include, without implied limitation, attorneys’ and experts’ fees, costs and expenses incurred in the following: (i) post judgment motions and appeals, (ii) contempt proceedings, (iii) garnishment, levy and debtor and third-party examination, (iv) discovery; and (v) bankruptcy litigation. This Section 4.10 shall survive any termination of this Covenant Agreement.

4.111 Amendments to This Covenant Agreement. Any amendments to this Covenant Agreement must be in writing and signed by the appropriate authorities of both the City and Owner. The City Manager is authorized on behalf of the City to approve and execute minor
amendments to this Covenant Agreement, including, but not limited to, the granting of extensions of time to Owner, not to exceed ninety (90) days in the aggregate.

4.112 Addition of Affiliates. At such time as an Affiliate of Owner desires to locate at the Property, Owner shall request approval in writing from the City to locate the Affiliate at the Property and have any sales tax generated by the Affiliate included in the Sales Tax Revenues attributable to Owner for calculation of the Covenant Payment. Said written request shall be submitted to the City Manager for review and consideration by the City Council, following any legally required noticing and public hearings. Said review shall be in the City’s sole and unfettered discretion. As condition precedent to the City consideration of the request, Owner and the Affiliate shall make and attest to all representation and warranties required by this

Agreement, including but not limited to that inclusion of the Affiliate in this Agreement or the implementation thereof will not violate Government Code Section 53084.5.

Additionally, City shall only make a Covenant Payment to Owner. Owner shall be prohibited from sharing the Covenant Payment with Affiliate and Affiliate shall be prohibited from requesting the City enter into a separate Operating Covenant Agreement 16-20

with Affiliate directly. City shall have no liability to Affiliate for the distribution of Covenant Payments.

4.113 Jurisdiction and Venue. Any legal action or proceeding concerning this Covenant Agreement shall be filed and prosecuted in the appropriate California state court in the County of San Bernardino, California. Both Parties hereto irrevocably consents to the personal
jurisdiction of that court. The City and Owner each hereby expressly waive the benefit of any provision of federal or state law or judicial decision providing for the filing, removal, or change of venue to any other court or jurisdiction, including, without implied limitation, federal district court, due to any diversity of citizenship between the City and Owner, due to the fact that the
City is a party to such action or proceeding or due to the fact that a federal question or federal right is involved or alleged to be involved. Without limiting the generality of the foregoing, the City and Owner specifically waive any rights provided to it pursuant to California Code of Civil Procedure Section 394. Owner acknowledges that the provisions of this Section 4.14 are material consideration to the City for its entry into this Covenant Agreement, in that the City will avoid the potential cost, expense and inconvenience of litigating in a distant forum.

4.114 Interpretation. The City and Owner acknowledge that this Covenant Agreement is the product of mutual arms-length negotiation and drafting and that both Parties have been represented by legal counsel in the negotiation and drafting of this Covenant Agreement. Accordingly, the rule of construction which provides that ambiguities in a document shall be construed against the drafter of that document shall have no application to the interpretation and enforcement of this Covenant Agreement. In any action or proceeding to interpret or enforce this Covenant Agreement, the finder of fact may refer to any extrinsic evidence not in direct conflict with any specific provision of this Covenant Agreement to determine and give effect to the intention of the Parties.

4.115 Counterpart Originals; Integration. This Covenant Agreement may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. This Covenant Agreement and any exhibits represent the entire understanding of the Parties and supersedes all negotiations, letters of intent, memoranda of understanding or previous agreements between the parties with respect to all or any part of the subject matter hereof.

4.116 No Waiver. Failure to insist on any one occasion upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition, nor shall any waiver or relinquishment of any rights or powers hereunder at any one time or more times be deemed a waiver or relinquishment of such other right or power at any other time or times.

4.117 Successors and Assigns. The terms, covenants and conditions of this Covenant Agreement shall be binding upon and inure to the benefit of the Parties hereto and their successors and assigns. Except as provided in this Section 4.18, Owner shall neither transfer nor convey Owner’s interest in the Property or any tenant, service provider, consultant, operator or similar person, firm or entity in privity with the owner without the express written consent of the City, which shall not be unreasonably withheld, conditioned or delayed. In determining whether to approve of such a sale, transfer, conveyance or assignment of the Owner’s interest in the

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Property, the City shall evaluate: (i) the financial ability of the proposed transferee to own and operate the Business Location that Participates in the Sales Process, or portion so transferred, and to meet the Owner’s obligations under this Covenant Agreement; (ii) the fitness and experience of the proposed transferee and its managerial personnel to own and operate the Mall or portion so transferred thereof; and (iii) the ability of the proposed transferee to maintain a level of quality and service comparable to that maintained by the Owner for the Business Location that Participates in the Sales Process. Notwithstanding anything to the contrary contained in this Covenant Agreement, however, Owner may assign, without the City’s consent, this Covenant Agreement, its interest in the Property and/or the Mall to any assignee provided that: (a) such assignment is pursuant to a sale of all or substantially all of Owner’s assets; and (b) the applicable assignee has a credit rating (as determined by Moody’s Investor Service) equal to or better than Owner’s as of the time of the Effective Date. Upon the permitted sale, transfer or conveyance by Owner of its interest therein, such owner shall thereupon be relieved of its obligations under this Covenant Agreement from and after the date of sale, transfer or conveyance except with respect to any defaults in the performance of its obligations hereunder or thereunder which occurred prior to such sale, transfer or conveyance, and the transferee shall thereafter be solely responsible for the performance of all of the duties and obligations of Owner under this Covenant Agreement.

4.118 No Third-Party Beneficiaries. The performance of the respective obligations of the City and Owner under this Covenant Agreement are not intended to benefit any party other than the City or Owner, except as expressly provided otherwise herein. No person or entity not a signatory to this Covenant Agreement shall have any rights or causes of action against any party to this Covenant Agreement as a result of that party’s performance or non-performance under this Covenant Agreement, except as expressly provided otherwise herein.

4.119 No Effect on Eminent Domain Authority. Nothing in this Covenant Agreement shall be deemed to limit, modify, or abridge or affect in any manner whatsoever the City’s or City’s eminent domain powers with respect to the Property, the Business Location that participates in the Sales Process, or any other property owned by Business Location that Participates in the Sales Process.

4.120 Warranty Against Payment of Consideration for Covenant Agreement.

Owner warrants that it has not paid or given, and will not pay or give, any third-party any money or other consideration for obtaining this Covenant Agreement. Third-parties, for the purposes of this Section 4.20, shall not include persons to whom fees are paid for professional services if
rendered by attorneys, financial consultants, accountants, engineers, architects and the like when such fees are considered necessary by Owner.

4.221 Severability. The City and Owner declare that the provisions of this Covenant Agreement are severable. If it is determined by a court of competent jurisdiction that any term, condition or provision hereof is void, voidable, or unenforceable for any reason whatsoever, then such term, condition or provision shall be severed from this Covenant Agreement and the remainder of the Covenant Agreement enforced in accordance with its terms.

4.222 Further Acts and Releases. The City and Owner each agree, at their own sole cost and expense, to take such additional acts and execute such other documents as may be reasonable and necessary in the performance of their obligations hereunder.

4.223 Estoppels. At the request of Owner, the City shall promptly execute and 18-20

deliver

to Owner or such holder a written statement of the City as to any of the following matters as to
which Owner or such holder may inquire: (i) that no default or breach exists, or would exist with the passage of time, or giving of notice, or both, by Owner pursuant to this Covenant Agreement, if such be the case; (ii) the total amount of Covenant Payments made by the City to Owner pursuant to this Covenant Agreement prior to the date of such written statement; (iii) the amount
of any Covenant Payments earned by or due and owing to Owner pursuant to this Covenant ‘Agreement as of the date of such written statement; (iv) the Covenant Payments for a particular Computation Quarter; (v) if the City has determined that Owner is in default or breach hereunder, the nature of such default and the action or actions required to be taken by Owner to cure such default or breach; and (vi) any other matter affecting the rights or obligations of Owner hereunder as to which Owner or such holder may reasonably inquire.

The form of any estoppel letter shall be prepared by Owner or such holder at its sole cost and expense and shall be reasonably acceptable in form and content to the City and Owner.

The City may make any of the representations described above based on the actual current knowledge of the then-current City Manager.

4.224 Indemnity. The Parties hereby agree to indemnify and save and hold one another harmless from and against any third party claims for “damages” (which term shall mean actual cash expenditures arising out of, resulting from, or relating to any damage, liability, loss, cost or deficiency, including, but not limited to, reasonable attorneys’ fees and other costs and expenses incident to proceedings or investigations for the defense of any claim) brought against a Party arising out of, or resulting from any failure by the indemnifying Party to duly perform and observe any term, provision or covenant to be performed by that Party pursuant to this Agreement.
[Signatures on the following pages]

19-20

______________________________________ _____________________________ Salvador Mendez Vendor Name City Manager Pro Tem Vendor Title

_______________________________________
Alexandra Halfman
Acting City Attorney

_______________________________________
Roxanne Faber
City Clerk

20-20

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: HOUSING DEPARTMENT

DISTRICT: ALL

SUBJECT: APPROVE DOWN-PAYMENT ASSISTANCE PROGRAM

RECOMMENDATION

Staff recommend that the City Council:

1. Approve the Down-Payment Assistance Program (Program); and,

2. Authorize the City Manager Pro Tem or his designee to execute any documents related to the implementation of the Program and to review and approve non - substantial revisions to the Program.

BACKGROUND

The City Council approved the five -year plan (The Plan) for the State of California Department of Housing and Commun ity Development’s (HCD) Permanent Local Housing Allocation (PLHA) Program on July 14, 2020. The PLHA funding is generated from the Building Homes and Jobs Act, SB2, which established a $75 recording fee on real estate documents to increase the supply of af fordable housing in California. The Plan includes providing down-payment assistance to those trying to purchase their first home.

DISCUSSION

The Program will assist low — and moderate -income households with incomes up to 150% of the Area Median income who wish to purchase their first home but do not have a sufficient down payment that will result in an affordable housing cost, which includes principal, interest, taxes, and insurance.

In addition, t he high cost of housing and the costs associated with hom eownership continue to challenge first-time homebuyers. Rising mortgage rates and insurance costs significantly impact affordability.

The Federal Housing Administration (FHA) has an important role through its lower downpayment requirement of 3.5% compared to the conventional loan requirement of 10% in providing first-time home buyers a lower entry cost to homeownership . The FHA Report to Mayor and City Council
Re: Approve Down-Payment Assistance Program
June 17, 2025

is anticipating a 40% reduction in staff as a result of federal policies, with the anticipated result of reduced availability of FHA-backed loan originations.

A limited number of deferred-payment second trust deed loans will be available to provide qualified households with down -payment assistance to purchase a single-family home (detached or attached), condominium, or townhome in the City of Palmdale. Assistance may be up to $100,000 to meet the affordability guidelines of the PLHA funding, with an average assistance of $66,000.

Potential homebuyers:

 Must not have had an ownership interest in a principal residence at any time within the past three (3) years;
 Are required to provide a minimum of 3.5% of the purchase price as their portion of the down payment for an FHA loan and a minimum of 10% down pay ment for a conventional loan;
 Must complete an approved in-person Homebuyer Education course; and,  Must execute all documents related to the City loan, including Affordable Housing Covenants, Conditions, and Restrictions.

The provision of assistance, in accordance with the Program, promotes owner -occupied homeownership and provides an investment in our community.

FISCAL IMPACT

$410,100; Funds are budgeted in the Down-Payment Assistance account. An additional PLHA allocation of $394,090 is pending from HCD.

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: Sophia Reyes, Director of Housing
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS

Down-Payment Assistance Program Overview

ATTACHMENT – I

CITY OF PALMDALE

DOWN-PAYMENT ASSISTANCE PROGRAM

OVERVIEW

PROGRAM DESCRIPTION:

The Program offers down payment assistance with a limited number of zero -interest, deferred-payment second trust deed loans. It is specifically designed to provide qualified households with assistance when purchasing a house in the City of Palmdale.

The Program has been designed to assist families and individuals who wish to purchase a home but cannot secure a sufficient down payment to qualify for an affordable loan .

This Program intends to offset some of the impact of high housing costs on households while encouraging investment in the community. A Program loan provides down payment assistance as a silent second mortgage to eligible first-time purchasers in the City of Palmdale. To qualify as a first -time home buyer, the Participant cannot have held an ownership interest in any property for the last 3 years.

Participants will be pre -screened for participation in the Program based on a basic eligibility questionnaire. Once screened, the Participant will submit a full application. The Participant will work with a primary lender and real estate agent to establish primary mortgage funding and locate a residence within the City. The participant will be required to complete an 8 -hour Homebuyer Education Program Seminar before the close of escrow.

The Participant must contribute no less than 3 .5% of the purchase price of the home as their portion of the down payment for and FHA loan and a minimum of 10% for a conventional loan. The primary lender must provide a fully amortized, 30 -year fixed-rate mortgage. No adjustable-rate mortgages are acceptable under this Program. The City will provide a zero -interest 30 -year deferred second mortgage. The combination of the Participant's down payment , the primary , and secondary mortgage allows for an affordable monthly housing cost. The Participant must occupy the residence as their primary residence for the 30 year term of the Program loan.

The Program also requires the execution of a Loan Agreement, Promissory Note, Second Deed of Trust, and Covenants, Conditions , and Restrictions (C,C & R’s) , which include the terms on the transfer of the property before the full term of the Program loan.

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: PUBLIC WORKS DEPARTMENT

ENGINEERING DIVISION

DISTRICT: 5

SUBJECT: ACCEPT NOTICE OF COMPLETION (NOC) FOR PUBLIC

DRAINAGE IMPROVEMENTS FO R SIERRA HIGHWAY STORAGE
LOCATED AT 37550 SIERRA HIGHWAY

RECOMMENDATION

Staff recommend that the City Council:

1. Accept the NOC for completed public drainage improvements for Sierra Highway Storage located at 37550 Sierra Highway; and,

2. Authorize the City Manager Pro Tem or his designee to file the NOC and release the security for the completed public drainage improvements.

BACKGROUND

This project, located North of Avenue S and Sierra Highway, constructed public drainage improvements along 10th Street East and the existing City’s right -of-way. The improvements include two parkway drains. The public improvements have been installed per the approved construction plan s and inspected and approved by City Public Works inspection staff.

DISCUSSION

The NOC is presented in accordance with Section 16.110.060 of Palmdale’s Municipal Code. This action will accept the improvements to the public street as complete and initiate the City’s release of applicable securities posted for this project per the City’s subdivision regulations.

The project’s required public drainage improvements are listed in Exhibit A and shown in the Site Map . The improvements have been completed to the City Engineer ’s satisfaction as required in the Subdivision/Development Improvement Agreement between the developer and the City. After the developer fulfills a one-year maintenance Report to Mayor and City Council
Re: NOC Completed Public Improvements – Sierra Highway Storage June 17, 2025

period, the improvements along 10th Street East will be transferred from the developer to the City.

FISCAL IMPACT

$1,000; The estimated annual maintenance cost for the two parkway drains is $1,000.

Funds are made available annually in th e drainage maintenance budget to maintain these assets.

STRATEGIC PLAN

Goal III: Invest in infrastructure to improve community livability.

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

Prepared by: Leonardo Torres, P.E.

Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS

NOC
Exh A List of Completed Public Improvements
Site Map Location
Site Photo

RECORDING REQUESTED BY:

CITY OF PALMDALE

WHEN RECORDED MAIL TO:

CITY OF PALMDALE

OFFICE OF THE CITY CLERK
38300 SIERRA HIGHWAY, SUITE C
PALMDALE, CA 93550

Space above this line is for Recorder’s Use

NOTICE OF COMPLETION

Notice pursuant to Civil Code Section 3093, is hereby given that:

1. The undersigned is owner or corporate officer of the interest or estate stated below in the property hereinafter described.

2. The full name of the owner is City of Palmdale, a Municipal Corporation.

3. The full address of the owner is 38300 Sierra Highway, Palmdale, CA 93550.

4. The nature of interest or estate of the owner is: Drainage Improvements-Sierra Highway Mini Storage, LLC.

5. A work of improvement on the property hereinafter described was completed on March 24, 2025.

6. The work done was: “Drainage Improvements-Sierra Highway Mini Storage, LLC.”,

7. The name of the Contractor for such work of improvement: Sierra Highway Mini Storage , LLC.

8. The property on which said work of improvement was completed is in the City of Palmdale, County of Los Angeles, State of California, and is described as follows: North of Avenue S and Sierra Highway.

9. The address of said property is: 37550 Sierra Highway.

Dated: June 17, 2025

CITY OF PALMDALE

Michael Lloyd, Acting City Engineer
____________________________________________________________________________

VERIFICATION

I, the undersigned, say: I am the City Engineer, the declarant of the foregoing notice of completion; I have read the said notice of completion and know the contents thereof; the same is true of my own knowledge.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on June 17, 2025, in the City of Palmdale, California.

Michael Lloyd, Acting City Engineer

EXHIBIT A

LIST OF COMPLETED PUBLIC IMPROVEMENTS

Tract/Project Plan # Quantity Security

Sierra Highway Storage ST 18-39 2 Parkway Drain $4,200 Drainage Improvements

EXHIBIT B

SITE MAP

EXH C
North of Ave. S & Sierra Hwy

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION

DISTRICT: 4

SUBJECT: APPROVE AGREEMENT WITH PSOMAS FOR DESIGN SERVICES FOR PN 906, AVENUE T STREET IMPROVEMENT PROJECT, FOR
A TOTAL NOT TO EXCEED AMOUNT OF $801,141 FOR A TERM OF
18 MONTHS FROM THE DATE OF THE NOTICE TO PROCEED

RECOMMENDATION

Staff recommend that the City Council:

1. Approve Agreement No. A-9346 with PSOMAS for design services for PN 906, Avenue T Street Improvement Project, for a total not to exceed amount of $801,141, which includes a contract amount of $728,310, plus a 10% contingency amount of $72,831 for a term of 18 months from the date of the Notice to Proceed;

2. Authorize the City Manager Pro Tem or his designee to execute the Agreement No. A-9346 with PSOMAS, including minimal and/or non -substantial changes; and,

3. Authorize the City Manager Pro Tem or his designee to approve contract amendments for additional or changed scope of work up to the 10% contingency amount approved by the Council.

BACKGROUND

This project is located along Avenue T between 55th Street East and 80th Street East, a major arterial designated as a Truck route. The project proposes reconstructing the roadway pavement, and repaving the existing unimproved and improved shoulders, designing the proposed widening of the westbound approach of Avenue T to Pearblossom Highway to add a second westbound thru lane, and constructing a new traffic signal, curb ramps, and curb and gutter.

Report to Mayor and City Council
Re: Approve Agreement No. A-9346 with Psomas
June 17, 2025

DISCUSSION

On March 12, 2025, a Request for Proposal was advertised electronically through Planet Bid to solicit professional design services to design the Avenue T Street Improvement Project.

On April 10, 2025, Seven (7) civil design firms submitted proposals. After a thorough review and evaluation of qualifications, the top three (3) civil design firms, Psomas, Parsons Engineering, and Lochner were selected for final evaluation.

Bidder Location Amount

1. Psomas Santa Clarita, CA $ 728,310

2. Parsons Engineering Pasadena, CA $ 952,000

3. Lochner (aka KOA) Monterey Park, CA $1,180,438

Based on qualifications, favorable reference checks, extensive experience providing the City with roadway design services, and the fee proposal, the staff recommended Psomas for awarding the professional design services

FISCAL IMPACT

$802,141; This project is funded using Senate Bill 1 (SB1).

STRATEGIC PLAN

Goal IV: Maintain a desirable community where everyone wants to live, work, and play.

B: Provide inclusive access to a variety of supportive services that build a resilient and healthy community.

Prepared by: Leonard Torres, P.E.,
Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS

Agrmt No. A-9346 with Psomas

AGREEMENT NO. A-9346CONTRACT FOR DESIGN PROFESSIONAL SERVICESBETWEEN THE CITY OF PALMDALE AND PSOMAS THIS CONTRACT FOR DESIGN PROFESSIONAL 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 PSOMAS (hereinafter called “PROJECT DESIGNER”). This Contract shall become effective on the date of the last signatory.RECITALSWHEREAS, City desires to engage PROJECT DESIGNER to perform certain technical and professional services, as provided herein, in connection with that certain project identified as PN 906 AVENUE T STREET IMPROVEMENT PROJECT.WHEREAS, PROJECT DESIGNER represents that PROJECT DESIGNER has the expertise and is qualified to perform the services described in this Contract and is duly registered under the laws of the State of California. WHEREAS, PROJECT DESIGNER desires to accept such engagement.NOW, THEREFORE, the parties agree as follows:1 DESCRIPTION OF WORK1.1 The City hereby engages PROJECT DESIGNER, and PROJECT DESIGNER accepts such engagement, to perform the following design professional services in a manner satisfactory to CITY:PROJECT DESIGNER to provide professional civil and traffic engineering design, utility coordination, and public outreach services for PN 906, Avenue T Street Improvement Project. Location: East Ave. T between 55th St. East and 80th St. EastProject:a) Reconstruct roadway pavement;b) Pave and repave existing unimprovements, and improve shoulders;c) Design the proposed widening of Ave. T’s westbound approach at 55th St. East; d) Add a second westbound through lane; and,e) Construct new traffic signals, curb ramps, and curb and gutters.PROJECT DESIGNER Scope of Work:1) Lead all coordination meetings with, but not limited to, rock mining companies (Quarry's), Southern California Edision, and Caltrans. 2) Deliverables include 100% construction drawings and specifications, bid schedules, and cost estimates. 3) Prepare and conduct three (3) community outreach meetings and attend one (1) City Council meeting.PROJECT DESIGNER's complete proposal attached as Exhibit "A".1.2 Project deliverables shall be reviewed and approved by CITY to determine acceptable completion. CITY shall have the right to review and inspect the work during the course of its performance at such times as may be specified by CITY.1.3 PROJECT DESIGNER shall not accept any change of scope, or change in contract provisions, unless issued in writing, as a contract change order or amendment and signed by CITY. Any extensions of time must be mutually agreed upon in writing and executed by both parties. 1.4 CITY shall provide to PROJECT DESIGNER, without charge, all data, program information, including reports, records, maps, and other information, now in CITY’s possession, which may facilitate the timely performance of the work.2 CITY PROJECT MANAGERTo provide the design professional services required by this Contract, PROJECT DESIGNER shall act under the authority and approval of a Project Manager appointed by the Director of Public Works/designee. The City Project Manager will oversee the work under this Contract, assist PROJECT DESIGNER with any necessary information, audit billings, and approve payments. PROJECT DESIGNER shall channel reports, deliverables and special requests through the City Project Manager.3 PROJECT DESIGNER’S KEY PERSONNELPROJECT DESIGNER’s Team and Key Personnel are as follows:PROJECT DESIGNER'S KEY PERSONNEL1. Arief Naftail - Project Manager/Traffic Engineering Lead2. Jeff Chess - QA/QC Manager3. Jeremy Johnson - Drainage and General Civil Engineering4. Paul Gervacio - Caltrans D7 Permitting Lead5. Sean Noonan - Environmental Lead6. Daniel Rahe - Survey Lead7. Dennis Kim - Utility and Right of Way8. Abdul Mohammed Khan - Constructability Review9. Patti Ransdell - Public Outreach10. Roger W. Schlierkamp - Geotechnical and Pavement11. Amina Mannan - Pavement and Geotechnical Engineering12. Lacey Withers - Landscape Designer This Design Professional Services Contract has been awarded to PROJECT DESIGNER based on its representation that those personnel and subcontractors listed above will perform the portions of the work listed above. PROJECT DESIGNER shall not deviate nor substitute any of these team members without prior written approval by CITY.4 COMMENCEMENT AND COMPLETION OF WORKThe services for the Project shall commence when CITY, acting by and through its Project Manager, issues a written authorization to proceed. PROJECT DESIGNER shall complete all work described in the Description of Work and submit final deliverables within EIGHTEEN (18) MONTHS / FIVE HUNDRED and FORTY-EIGHT (548) calendar days of said authorization. PROJECT DESIGNER shall have no claim for compensation for any services or work, which has not been authorized by CITY’s authorization to proceed.5 TAXES5.1 PROJECT DESIGNER shall pay all sales, consumer, use, and other similar taxes required to be paid by PROJECT DESIGNER in accordance with state and local laws.5.2 PROJECT DESIGNER 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 PROJECT DESIGNER or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.5.3 PROJECT DESIGNER shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued. 6 PATENT FEES AND ROYALTIESPROJECT DESIGNER shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, product or device is specified by CITY for use in the performance of the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents. PROJECT DESIGNER shall indemnify and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, product or device not specified by CITY, and shall defend all such claims in connection with any alleged infringement of such rights. 7 STANDARDS OF PERFORMANCE7.1 PROJECT DESIGNER shall be responsible for the completeness and accuracy of its services and work and documents resulting there from, and CITY shall not be responsible for discovering deficiencies therein. PROJECT DESIGNER shall correct any such deficiencies or errors without additional compensation and without cost to CITY, except to the extent any such deficiency is directly attributable to deficiencies in CITY-furnished information. 7.2 PROJECT DESIGNER shall be familiar with CITY’s Standard Details and Specifications and other relevant CITY regulations. PROJECT DESIGNER shall ensure there are no conflicts among the Contract Documents including, but not limited to, the CITY’s Standard Specifications and Special Provisions for Construction Contracts, the plans and specifications prepared by PROJECT DESIGNER, any standard details or specifications incorporated therein by reference, and the Construction Contract. 8 PROJECT DESIGNER’S PERSONNEL8.1 All services required under this Contract shall be performed by PROJECT DESIGNER, or under PROJECT DESIGNER’s direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services.8.2 PROJECT DESIGNER shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Contract, and compliance with all reasonable performance standards established by CITY.8.3 PROJECT DESIGNER shall be responsible for payment of all PROJECT DESIGNER’s employees’ and subcontractor’s wages and benefits and shall comply with all requirements pertaining to the employer’s liability, workers’ compensation, unemployment insurance, and Social Security.8.4 PROJECT DESIGNER shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all claims, demands, damages or costs arising from PROJECT DESIGNER’s acts or omissions with respect to any liability, damages, claims, costs and expenses of any nature arising from alleged violations of personnel practices.8.5 PROJECT DESIGNER shall pay, if required by applicable law, not less than the general prevailing hourly wage rates, as determined by the Director of the Department of Industrial Relations pursuant to the California Labor Code, for each craft, classification, or type of worker needed to perform the Contract. Copies of the prevailing rate of per diem wages are on file in the office of the Director of Public Works. 9 COMPENSATION9.1 For all of work and services including the various phases of tasks as described in Section 1, Scope of Services, CITY shall pay to PROJECT DESIGNER an amount not to exceed the sum of SEVEN HUNDRED and TWENTY-EIGHT THOUSAND, THREE HUNDRED and TEN dollars ($728310), as follows:FEE SCHEDULE1. Completion of Project Design Management ........................................ $91,680.002. Completion of Preliminary Research and Investigation ..................... $263,345.003. Completion of Preliminary Design ..................................................... $164,940.004. Completion of Final Design ............................................................... $170,405.005. Completion Construction Engineering Support and Services .............. $23,290.00Completion of Additional Services:1. Reimbursable Allowance ..................................................................... $14,650.00TOTAL CONTRACT AMOUNT ................................................................$728,310.00PROJECT DESIGNER shall perform no work in excess of the total contract price without prior approval of CITY. Total contract price includes expenses related to travel to and from CITY to meet with City and to appear before City Council or any other board or commission of CITY.9.2 An application and certification for payment form must be submitted to CITY which shall include the following: a clear, detailed invoice reflecting hours 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 the project; any/all backup documentation supporting the above items. Work schedule updates must also be included in the monthly progress payment requests.9.3 PROJECT DESIGNER shall maintain adequate records and shall permit inspection and audit by CITY of PROJECT DESIGNER’s charges under this Contract. PROJECT DESIGNER 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 PROJECT DESIGNER 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 PROJECT DESIGNER shall retain its records for the time required by such laws.9.4 No payment made hereunder by CITY to PROJECT DESIGNER, shall be construed as an acceptance by CITY of any work or materials, nor as evidence of satisfactory performance by PROJECT DESIGNER of its obligations under this Contract. 10 INDEMNIFICATIONTo the fullest extent of the law, and consistent with Civil Code section 2782.8, PROJECT DESIGNER agrees to defend, indemnify, hold free and harmless the CITY, its elected and appointed officials, officers, agents and employees, at PROJECT DESIGNER’s sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against CITY, its elected and appointed officials, officers, agents, and employees to the extent arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of the PROJECT DESIGNER, its employees, and/or authorized subcontractors, in performing design professional services pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence, recklessness or willful misconduct of the PROJECT DESIGNER, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, recklessness, or willful misconduct of PROJECT DESIGNER, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the CITY, its elected and appointed officials, officers, agents, and employees based upon such negligence, recklessness, or willful misconduct, whether or not the PROJECT DESIGNER, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the PROJECT DESIGNER shall not be liable for the defense or indemnification of the CITY for claims, actions, complaints or suits arising out of the sole or active negligence or willful misconduct of the CITY. Further, in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault, unless otherwise specified in Civil Code section 2782.8. This provision shall supersede and replace all other indemnity provisions contained either in the CITY’s specifications or PROJECT DESIGNER’s Proposal, which shall be of no force and effect.11 INSURANCE11.1 PROJECT DESIGNER, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California. Proof of Insurance, as identified in Section 11.8, must be reviewed, and accepted by the City Attorney.11.1.1 Workers’ Compensation and Employer’s Liability Workers’ Compensation -- coverage as required by the State of California Employer’s Liability $1,000,000.00 each accident$1,000,000.00 policy limit bodily injury$1,000,000.00 each employee bodily injury by disease

11.1.2 Professional Liability (Errors & Omissions) Insurance* $2,000,000 limit on a per occurrence basis 11.1.3 Commercial General Liability $2,000,000.00 limit on per occurrence basis $4,000,000.00 general aggregate limit 11.1.4 Commercial Automobile Liability $2,000,000.00 combined single limit including owned, non-owned and hired automobile coverage 11.2 All of PROJECT DESIGNER’s policies shall contain an endorsement providing that written notice shall be given to CITY at least thirty (30) calendar days prior to termination, cancellation or reduction of coverage in the policy. 11.3 Policies providing for bodily injury and property damage coverage shall contain the following: A. An endorsement extending coverage to the City as an additional insured, in the same manner as the named insured, as respects liability arising out of the performance of any work under the Contract. Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The Certificate and endorsements shall state that: “The City of Palmdale, City of Palmdale in its capacity as the Successor Agency to the CRA, Palmdale Civic Authority, Housing Authority, Industrial Development Authority, Airport Authority, their officers, agents, employees and volunteers are named as additional insured”.B. “Severability of Interest” clause.11.4 Promptly on execution of this Contract, and prior to commencement of any work, PROJECT DESIGNER shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that PROJECT DESIGNER has the required coverage and showing the required named insureds. Within five (5) days of written request from CITY, PROJECT DESIGNER shall deliver to CITY full and complete copies of all insurance policies required by this Contract.11.5 The requirements as to the types and limits of insurance to be maintained by PROJECT DESIGNER are not intended to and shall not in any manner limit or qualify PROJECT DESIGNER’s liabilities and obligations under this Contract.11.6 Any policy or policies of insurance that PROJECT DESIGNER elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.

11.7 All insurance coverages must be maintained throughout the duration of this Contract.11.8 Acceptable Proof of Insurance:11.8.1 ACORD Certificate of Insurance listing all coverages, limits, deductibles and insureds; and endorsements for all applicable coverages if agent has authority to issue it; Additional insured Form CG20101185 or CG20100707 and CG20370704 or equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage. 11.8.2 Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements listing all insurers must be submitted to the City Attorney.11.8.3 *When professional (E&O) liability coverage is provided on a “claims made basis”, PROJECT DESIGNER will continue to renew the insurance for a period of five (5) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover PROJECT DESIGNER, or its officers, employees, or agents during the time this Agreement was in effect. 11.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time PROJECT DESIGNER fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.11.10 PROJECT DESIGNER 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 PROJECT DESIGNER shall be subject to all other insurance requirements that are stated herein. Any deviation in this requirement will be PROJECT DESIGNER's sole risk. PROJECT DESIGNER's insurance requirements in Section 11 will not be impacted and/or limited by such deviation. 12 TERMINATION WITHOUT CAUSE City reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, PROJECT DESIGNER shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and sub-consultants to cease such work. PROJECT DESIGNER shall also surrender to CITY all finished or unfinished documents or programs and other materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the PROJECT DESIGNER shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.13 TERMINATION FOR CAUSE13.1 If the City determines that the PROJECT DESIGNER has failed to supply an adequate working force, or to provide services of proper quality, or has failed in any other respect to satisfactorily perform the services specified in this Contract, the City shall give written notice to the PROJECT DESIGNER specifying all defaults to be remedied within thirty (30) days. Such notice shall set forth the basis for the City’s dissatisfaction and suggest corrective measures. If, after thirty days, the PROJECT DESIGNER has failed to implement the corrective measures, the City may elect to terminate this Contract, in whole or in part.13.2 In the event the City terminates this Contract in whole or in part as provided herein above, the City may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.13.3 If this Contract is terminated as provided above, the City may require the PROJECT DESIGNER to provide all finished or unfinished documents, data, studies, software, drawings, maps, photographs, reports, etc., prepared by the PROJECT DESIGNER. Upon such termination, the PROJECT DESIGNER shall be paid an amount equal to the value of the services provided and work performed as of the date of termination. Such payment by the City may take into consideration the costs associated with hiring another PROJECT DESIGNER to complete the services. In the event no new PROJECT DESIGNER is employed, the PROJECT DESIGNER shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents when such are delivered to CITY, and to authorized reimbursement expenses.The above is in addition to any other remedies available by law or equity to the City.13.4 If, after notice of termination of the Contract under the provisions of this Section 13, it is determined, for any reason, that the PROJECT DESIGNER was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 12.14 DISPUTE RESOLUTIONAll claims, disputes, and other matters in question between CITY and PROJECT DESIGNER arising out of, or relating to this Contract, or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 15 OWNERSHIP OF DOCUMENTSAll documents, including, but not limited to, tracings, drawings, plans, specifications, original mylars, estimates, field notes, investigations, design analysis and studies which are prepared in the performance of this Contract are to be, and remain the property of, CITY. PROJECT DESIGNER shall furnish CITY, upon its request, originals or reproducible or electronic copies of technical specifications and of all other documents listed above. PROJECT DESIGNER shall endorse, by his professional seal, all plans and data furnished by him.16 RE-USE OF DOCUMENTSThe parties agree the documents, drawings, specifications, and designs, although the property of CITY, are prepared for a specific project and are not intended nor represented by PROJECT DESIGNER to be suitable for re-use for any other project. Any reuse without written verification or adaptation by PROJECT DESIGNER for the specific purpose intended will be at CITY’s sole risk and without liability or legal exposure to PROJECT DESIGNER. 17 SUBCONTRACTING, DELEGATION AND ASSIGNMENT17.1 PROJECT DESIGNER shall not delegate, subcontract or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY; provided, however, that claims for money due or to become due to PROJECT DESIGNER from CITY under this Contract may be assigned to a bank, trust company or other financial institution without such approval. Any proposed delegation, assignment or subcontract shall provide a description of the services covered, identification of the proposed assignee, delegee or subcontractor, and an explanation of why and how the same was selected, including the degree of competition involved. Any proposed agreement with an assignee, delegee or subcontractor shall include the following:A. The amount involved, together with PROJECT DESIGNER’s analysis of such cost or price; andB. A provision requiring that any subsequent modification or amendment shall be subject to the prior written consent of CITY.C. The requirement to hire only those persons authorized by federal law to work in the United States.17.2 Any assignment, delegation or subcontract shall be made in the name of PROJECT DESIGNER and shall not bind or purport to bind CITY and shall not release PROJECT DESIGNER from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegees and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to PROJECT DESIGNER under this Contract.18 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY18.1 In performance of this Contract, PROJECT DESIGNER shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, or age. PROJECT DESIGNER will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, ancestry, sex, national origin, handicap, or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.18.2 The provisions of subsection 18.1 above shall be included in all solicitations or advertisements placed by or on behalf of PROJECT DESIGNER for personnel to perform any services under this Contract. CITY shall have access to all documents, data and records of PROJECT DESIGNER 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.19 FINANCIAL INTEREST CERTIFICATION19.1 PROJECT DESIGNER 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 PROJECT DESIGNER’s firm.19.2 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.20 CONFLICT OF INTEREST20.1 PROJECT DESIGNER 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 PROJECT DESIGNER 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.20.2 PROJECT DESIGNER shall not employ any City official or employee to perform any work required pursuant to this Contract.20.3 If PROJECT DESIGNER is a registered professional engineer or licensed land surveyor and the scope of work requires PROJECT DESIGNER’s recommendation of the actual formula to spread the costs of an assessment district’s improvements, then PROJECT DESIGNER shall not participate in making that recommendation if the additional elements set forth in Government Code section 87100.1(c) apply. Those additional elements are: (1) PROJECT DESIGNER has received income of $250 or more for professional services in connection with any parcel included in the benefit assessment district within 12 months prior to the creation of the district; and (2) the district includes other parcels in addition to those parcels for which PROJECT DESIGNER received the income. In the event a conflict of interest does arise in that context, City shall select a different PROJECT DESIGNER to recommend the actual formula to spread the costs of the assessment district’s improvements and the costs of such services shall be deducted from the compensation to be paid to PROJECT DESIGNER.20.4 To the extent required by the City Manager/designee, PROJECT DESIGNER 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.21 COMPLIANCE WITH LAW21.1 PROJECT DESIGNER 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 PROJECT DESIGNER uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by PROJECT DESIGNER. 21.2 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.22 NOTICESAny 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. 23 ENTIRE CONTRACT AND AMENDMENTS

23.1 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.23.2 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 PROJECT DESIGNER hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.23.3 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. 24 ATTORNEY’S FEESIf 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: PSOMAS:

Salvador Mendez City Manager Pro Tem

Jeff Chess Vice President/Principal In Charge ADDRESS FOR NOTICE:CITY OF PALMDALE38250 Sierra HighwayPalmdale, CA 93550 ADDRESS FOR NOTICE:PSOMAS27200 Tourney Road. Suite 120. Valencia, CA 91355APPROVE AS TO FORM:

Alexandra HalfmanActing City Attorney ATTEST:

Roxanne FaberCity Clerk
---------------------------------------- INTERNAL USE ONLY ---------------------------------------- and Endorsement(s) attached business name on contract with certificate(s) Agreement Checklist and met all requirements

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION

DISTRICT: ALL

SUBJECT: ACCEPT NOTICE OF COMPLETION (NOC) FOR PN 741 , EAST AVENUE S-8 AND 40TH STREET EAST ROUNDABOUT PROJECT

RECOMMENDATION

Staff recommend that the City Council:

1. Accept the NOC for PN 741, East Avenue S-8 and 40th Street East Roundabout Project; and,

2. Authorize the City Manager Pro Tem or his designee to file the NOC and release the security for the completed public street improvement.

BACKGROUND
PN 741, East Roundabout project is located at the intersection of East Avenue S -8 and 40th Street East. The City completed improvements at the intersection by replacing the 4- way stop signs with a new roundabout. The project included:
 A roundabout designed for both passenger and large vehicles;  New curbs, gutters, sidewalks, ADA ramps, and bike lanes;  Raised medians with rock landscaping and pedestrian walkways;  Streetlights, drainage improvements, and utility work; and,  New signs and road markings.

A decorative rock design was placed in the center of the roundabout, along with a concrete pad to support a future art piece. In April 2025, the City installed the “Harmony” sculpture in collaboration with the Public Art team and local artists.

Report to Mayor and City Council
Re: NOC PN 741 East Ave S-8 & 40th St E Roundabout Project June 17, 2025

DISCUSSION

The NOC is presented by Section 16.110.060 of Palmdale’s Municipal Code. This action will accept the roadway improvements as complete and initiate the City’s release of applicable securities posted for this project by the City’s subdivision regulations.

FISCAL IMPACT

$0; There is no fiscal impact associated with this action. Project cost totaled $4,868,580 and was funded using Measure R Local Return and Local Highway Safety Improvement Program Federal Grant funds.

STRATEGIC PLAN

Goal III: Invest in infrastructure to improve community livability.

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

Prepared by: Leonardo Torres, P.E.

Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS

NOC
Project Photos

RECORDING REQUESTED BY:

City of Palmdale
Public Works Department

WHEN RECORDED MAIL TO:

City of Palmdale
Office of the City Clerk
38300 Sierra Highway, Suite C
Palmdale, CA 93550

PURSUANT TO CIVIL CODE SECTION
C.C. 3093
___________________________________________________________________________________

NOTICE OF COMPLETION

NOTICE IS HEREBY GIVEN:

1. The City of Palmdale, a municipal corporation, is the owner in fee, of certain public improvement known as East Avenue S-8 & 40th Street East Roundabout Project, City Project Number PN 741.

2. The City’s address is 38300 Sierra Highway, Palmdale, California 93550.

3. The general location of said public improvement is the intersection of East Avenue S-8 & 40th Street East in the City of Palmdale.

4. On January 24, 2024, a construction contract for said public improvement was awarded to R.C. Becker and Son, Inc., 28355 Kelly Johnson Parkway, Santa Clarita, CA 91355.

5. Work under said contract was completed on April 8, 2025, to the sat isfaction of the City of Palmdale, and the City hereby accepts the project as complete.

Dated: June 17, 2025
Salvador Mendez, City Manager Pro Tem
City of Palmdale
____________________________________________________________________________________________

VERIFICATION

I, the undersigned, say: I am the Director of Public Works, the declarant of the foregoing notice of completion; I have read the said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.

Executed on June 17, 2025, in the City of Palmdale, California.

Lee Torres, Director of Public Works

NOTICE OF COMPLETION
PN 741 – E AVE S-8 & 40TH ST E ROUNDABOUT
LOCATION: INTERSECTION OF E AVENUE S-8 & 40TH STREET EAST

COMPLETED PUBLIC IMPROVEMENTS

TWO PARKWAY DRAINS DRAINAGE IMPROVEMENTS

COMPLETED PUBLIC IMPROVEMENTS

‘HARMONY’ PUBLIC ART PIECE & ROCK

LANDSCAPE DESIGN IN ROUNDABOUT CENTER

City Council Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION

DISTRICT: 5

SUBJECT: ACCEPT NOTICE OF COMPLETION (NOC) FOR PN 780 , AVENUE Q-12 SIDEWALK GAP CLOSURE PROJECT

RECOMMENDATION

Staff recommend that the City Council:

1. Accept the NOC for PN 780, the completed Avenue Q-12 Sidewalk Gap Closure Project; and,

2. Authorize the City Manager Pro Tem or his designee to file the NOC and release the security for the completed public street improvements.

BACKGROUND

Project No. 780, Avenue Q-12 Sidewalk Gap Closure, completed full street improvements along Avenue Q-12 between 10th Street East and 12th Street East. Work included:
 New sidewalks, curbs, gutters, and ADA-compliant ramps;  Street paving and crosswalk upgrades;
 New street lighting and updated pavement markings;
 Utility and water system improvements; and,
 Traffic control planning and materials review
These upgrades improve safety and accessibility for pedestrians and drivers.

DISCUSSION

The NOC is presented by Section 16.110.060 of Palmdale’s Municipal Code. This action will accept the roadway improvements as complete and initiate the City’s release of applicable securities posted for this project by the City’s subdivision regulations.

Report to Mayor and City Council
Re: NOC PN 780, Avenue Q-12 Sidewalk Gap Closure Project June 17, 2025

FISCAL IMPACT

$0; There is no fiscal impact associated with this action. Project cost totaled $1,436,421 and was funded using CDBG and Prop C funds.

STRATEGIC PLAN

Goal III: Invest in infrastructure to improve community livability.

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

Prepared by: Leonardo Torres, P.E.

Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

ATTACHMENTS

NOC
Project Photos

RECORDING REQUESTED BY:

City of Palmdale
Public Works Department

WHEN RECORDED MAIL TO:

City of Palmdale
Office of the City Clerk
38300 Sierra Highway, Suite C
Palmdale, CA 93550

PURSUANT TO CIVIL CODE SECTION
C.C. 3093
___________________________________________________________________________________

NOTICE OF COMPLETION

NOTICE IS HEREBY GIVEN:

1. The City of Palmdale, a municipal corporation, is the owner in fee of certain public improvements known as the Avenue Q-12 Sidewalk Gap Closure Project, City Project Number PN 780.

2. The City’s address is 38300 Sierra Highway, Palmdale, California 93550.

3. The general location of said public improvement is along Avenue Q-12, from 10th St. East to 12th St. East, in Palmdale, California 93350.

4. On April 20, 2022, a construction contract for said public improvement was awarded to R.C.

Becker and Son, Inc., 28355 Kelly Johnson Parkway, Santa Clarita, CA 91355.

5. Work under said contract was completed on June 10 (TBD), 2025, to the satisfaction of the City of Palmdale, and the City hereby accepts the project as complete.

Dated: June 17, 2025
Salvador Mendez, City Manager Pro Tem
City of Palmdale
____________________________________________________________________________________________

VERIFICATION

I, the undersigned, say: I am the Director of Public Works, the declarant of the foregoing notice of completion; I have read the said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct.

Executed on June 17, 2025, in the City of Palmdale, California.

Lee Torres, Director of Public Works

NOTICE OF COMPLETION
AVE Q-12 SIDEWALK GAP CLOSURE

TWO LANE MILES REPAVED AND NEW SIDEWALKS

COMPLETED PUBLIC IMPROVEMENTS
Q-12 ACROSS FROM COURSON PARK

COMPLETED PUBLIC IMPROVEMENTS
Q-12

Joint Staff Report

DATE: JUNE 17, 2025

TO: HONORABLE MAYOR AND CITY COUNCIL

COMMISSIONERS

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

SUBJECT: ADOPT JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE NO. CC 2025-046, SUCCESSOR AGENCY TO THE

COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
PALMDALE NO. SA 202 5-003, PALMDALE CIVIC AUTHORITY NO.

PCA 2025-001, HOUSING AUTHORITY OF THE CITY OF PALMDALE NO. HA 2025-002, INDUSTRIAL DEVELOPMENT AUTHORITY NO.

IDA 2025-001, PALMDALE AIRPORT AUTHORITY NO. PAA 202 5- 001, PALMDALE FINANCING AUTHORITY NO. PFA 202 5-001,

COLLECTIVELY THE APPROVING LEGISLATIVE BODIES (ALB)
ADOPTING THE CITY OF PALMDALE’S ANNUAL BUDGET FOR
FISCAL YEAR 202 5-26 AND APPROVING REVENUE AND
EXPENDITURE ADJUSTMENTS TO FISCAL YEAR 2024-25; ADOPT
RESOLUTION NO. CC 202 5-047, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PALMDALE AMENDING THE CITY’S
CLASSIFICATION AND PAY PLAN FOR GENERAL POSITIO NS;
ADOPT RESOLUTION NO. CC 202 5-048, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE AMENDING THE
CITY’S CLASSIFICATION AND PAY PLAN FOR BARGAINING UNIT
POSITIONS; ADOPT RESOLUTION NO. CC 202 5-049, A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE
AMENDING THE CITY’S CLASSIFICATION AND PAY PLAN FOR
PARKS AND RECREATION UNBENEFITED POSITIONS ; AND
ADOPT RESOLUTION NO. CC 202 5-050, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE AMENDING THE
CITY’S CLASSIFICATION AND PAY PLAN FOR Y-RATED

POSITIONS

RECOMMENDATION

Staff recommend that the City Council , Chairs, Commissioners, Members, and Directors:

Report to Mayor and City Council
Re: Adopt Joint Resolution No. CC 2025-046, SA 2025-003, PCA 2025-001, HA 2025- 002, IDA 2025-001, PAA 2025-001, PFA 2024-003 Approving FY 2025-26 Budget, and Adopt Resolution Nos. CC 202 5-047, CC 2025-048, CC 2025-049, and CC 202 5-050 amending the City of Palmdale Classification and Pay Plans June 17, 2025

1. Hold a public hearing to accept public testimony;

2. Adopt Joint Resolution of the City Council of the City of Palmdale (No. CC 2025- 046), the Successor Agency to the Community Redevelopment Agency of the City of Palmdale (No. SA 202 5-003), the Palmdale Civic Authority (No. PCA 2025-001), the Housing Authority of the City of Palmdale (No. HA 2025-002), the Industrial Development Authorit y (No. IDA 202 5-001), the Palmdale Airport Authority of the City of Palmdale (No. PAA 202 5-001), and the Palmdale Financing Authority (No. PFA 202 5-001) approving and adopting the City of Palmdale's Annual Budget for Fiscal Year 202 5-26, and approving revenue and expenditure adjustments to Fiscal Year 2024-25;

3. Adopt Resolution No. CC 202 5-047, a Resolution of the City Council of the City of Palmdale Amending the City’s Classification and Pay Plan for General Positions;

4. Adopt Resolution No. CC 202 5-048, a Resolution of the City Council of the City of Palmdale Amending the City’s Classification and Pay Plan for Bargaining Unit Positions;

5. Adopt Resolution No. CC 202 5-049, a Resolution of the City Council of the City of Palmdale Amending the City’s Cla ssification and Pay Plan for Parks and Recreation Unbenefited Positions; and,

6. Adopt Resolution No. CC 202 5-050, a Resolution of the City Council of the City of Palmdale Amending the City’s Classification and Pay Plan for Y -Rated Unbenefited Positions.

BACKGROUND

Each year the City is required to adopt a budget for its operation. The budget serves as the City’s financial plan for the Fiscal Year beginning July 1 through June 30. It defines City priorities for the provision of services to the community.

According to the Palmdale Municipal Code: Chapter 3.04 Budget Adoption Procedures, the City Manager shall submit a proposed budget to the City Council no later than May 31 of each year. The proposed budget was brought before the City Council on May 21, 2025. Additionally, the City Council shall conduct a public hearing on the proposed budget before adoption and shall adopt a budget prescribing the spending policy of the City for the ensuing fiscal year on or before the thirtieth day of June of each year.

Report to Mayor and City Council
Re: Adopt Joint Resolution No. CC 2025-046, SA 2025-003, PCA 2025-001, HA 2025- 002, IDA 2025-001, PAA 2025-001, PFA 2024-003 Approving FY 2025-26 Budget, and Adopt Resolution Nos. CC 202 5-047, CC 2025-048, CC 2025-049, and CC 202 5-050 amending the City of Palmdale Classification and Pay Plans June 17, 2025

DISCUSSION

Staff are bringing forth the Proposed Budget for Fiscal Year 2025-26 for your review and consideration.

The Citywide budget represents all City funds, including the General Fund, Measure AV Fund, Special Revenue, Enterprise, Debt Service, and Capital Funds.

The following table summarizes the proposed Fiscal Year 2025-26 Citywide Budget:

Expenditures by Category FY 2026 Proposed
Beginning Balance $372,157,974
Revenue/Transfers In 422,052,830
Expenditures/Transfers Out 425,579,250
Surplus/(Deficit) (3,526,420)
Estimated Ending Fund Balance-Before Reserves 368,631,555 Reserve Requirement 54,137,595
Estimated Ending Fund Balance $282,493,960

Revenues
Estimating revenues for the upcoming fiscal year and forecasting out -years is essential to the budget development process. Revenue projections are formed by analyzing prior year actual receipts, trends, new revenue sources, grant opportunities, fees for services, and the State economic outlook. Citywide revenues are estimated to be $422,052,830.

The General Fund is the City’s primary source of unrestricted revenue, with projected resources totaling $140,290,280. These resources are comprised of property tax, sales tax, other local taxes, fees, and charges for services. In November 2024, voters approved Measure PD, which increased the local sales tax rate by ¾ cent. This measure is expected to generate approximately $23.5 million in Fiscal Year 2025-26 and is included in the General Fund. Additionally, Measure AV , a general sales tax, is projected to generate $24,068,000 million in Fiscal Year 2025-26. While not required, the City reports Measure AV revenue separately from the General Fund to ensure transpa rency and accountability to the Measure AV Oversight Committee.

Operating Appropriations
The proposed FY 2025-26 operating budget includes $425,579,250 across all City funds.

Of this total, $137,200,670 represents the General Fund operating budget. The proposed budget reflects a balanced and strategic approach to funding City operations and capital projects. It maintains core service levels while addressing key areas such as public safety, infrastructure, maintenance, and community programs. The leve l of funding proposed Report to Mayor and City Council
Re: Adopt Joint Resolution No. CC 2025-046, SA 2025-003, PCA 2025-001, HA 2025- 002, IDA 2025-001, PAA 2025-001, PFA 2024-003 Approving FY 2025-26 Budget, and Adopt Resolution Nos. CC 202 5-047, CC 2025-048, CC 2025-049, and CC 202 5-050 amending the City of Palmdale Classification and Pay Plans June 17, 2025

ensures the City can continue delivering high -quality services to residents while also advancing long -term goals. The supporting schedules provide additional details on appropriations.

Capital Improvement Program
The proposed FY 2025-26 Capital Improvement Budget totals $31,805,060 and includes a range of projects, many funded by grants or other restricted sources. As capital projects often span multiple years, budgeted amounts may not be fully expended within a single fiscal year. The attached schedules detail all previously approved and proposed capital improvement projects.

Conclusion
The proposed FY 2025 -26 Operating and Capital Budget maintains essential services and programs that reflect community needs and City Council prio rities, while preserving healthy reserve levels. It presents a balanced approach to ongoing revenues and expenditures, reinforcing the City’s commitment to long -term fiscal sustainability and responsible planning for the future.

FISCAL IMPACT

The Fiscal Year 2025-26 Operating and Capital Budget includes revenues totaling $422.1 million, and expenditures totaling $425.5 million. The proposed budget is compliant with all financial policies.

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: Salvador Mendez, City Manager Pro Tem
Approved as to form: Alexandra Halfman, Acting City Attorney

Report to Mayor and City Council
Re: Adopt Joint Resolution No. CC 2025-046, SA 2025-003, PCA 2025-001, HA 2025- 002, IDA 2025-001, PAA 2025-001, PFA 2024-003 Approving FY 2025-26 Budget, and Adopt Resolution Nos. CC 202 5-047, CC 2025-048, CC 2025-049, and CC 202 5-050 amending the City of Palmdale Classification and Pay Plans June 17, 2025

ATTACHMENTS

Reso. No. CC 202 5-046, SA 202 5-003, PCA 202 5-001, HA 2025-002, IDA 202 5-001, PAA 2025-001, PFA 2025-001 approving the Fiscal Year 2025-26 Budget Atch FY 2026 Budget at a Glance
Atch FY 2026 Proposed Operating and Capital Budget
Reso. No. CC 2025-047 General Position Classification and Pay Plan Exh 1 General Classification and Pay Plan FY 2025-26
Exh 2 General Salary Schedule FY 2025-26
Reso. No. CC 2025-048 BU Classification and Pay Plan
Exh 1 BU Classification and Pay Plan FY 2025-26
Exh 2 BU Salary Schedule FY 2025-26
Reso. No. CC 2025-049 Parks & Recreation Unbenefited Positions Exh 1 P&R Unbenefited Classification and Pay Plan FY 2025-26 Exh 2 P&R Unbenefited Salary Schedule FY 2025-26
Reso. No. CC 2025-050 Y-Rated Positions
Exh 1 Y-Rated Classification and Pay Plan FY 2025-26
Exh 2 Y-Rated Salary Schedule FY 2025-26

A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE (NO.

CC 2025-046)

SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE (NO. SA 2025-003)
PALMDALE CIVIC AUTHORITY (NO. PCA 2025-001)
HOUSING AUTHORITY (NO. HA 2025-002)
INDUSTRIAL DEVELOPMENT AUTHORITY (NO. IDA 2025-001)
PALMDALE AIRPORT AUTHORITY (NO. PAA 2025-001)
PALMDALE FINANCING AUTHORITY (NO. PFA 2025-001)
COLLECTIVELY THE APPROVING LEGISLATIVE BODIES (‘ALB’)

A JOINT RESOLUTION OF THE APPROVING LEGISLATIVE BODIES APPROVING AND ADOPTING THE CITY OF PALMDALE’S ANNUAL BUDGET FOR FISCAL YEAR 2025-26, AND APPROVING REVENUE AND EXPENDITURE ADJUSTMENTS TO FISCAL YEAR 2024-25.

Intent of the Approving Legislative Bodies:

1. In accordance with the City of Palmdale Municipal Code Section 3.04.020, the City Manager shall submit a proposed budget to the City Council no later than May 31st of each year; and,

2. The City Manager has submitted a proposed budget to the Approving Legislative Bodies for the Fiscal Year 2024-25 for review, consideration and adoption; and,

3. The City Council has caused a public hearing to be held on said budget, as amended, on June 17, 2025, with public notice of the hearing published at least fourteen (14) days prior to said hearing, has further considered the proposed budget, and has made revisions therein; and,

4. Section 2.04.060 and 3.04.101 of the Palmdale Municipal Code require that the City Manager oversee and accomplish, with the professional staff's assistance, a budget prescribing the spending policy of the City for the ensuing fiscal year be adopted on or before the thirtieth day of June each year; and,

5. After consideration and analysis, the Approving Legislative Bodies, each separately, find it is in the interest of the health, welfare and safety of the City and each entity, its citizens and businesspersons, to adopt the financial plan within the budget for the receipt and expendit ure of public monies in Fiscal Year 202 5-26; and,

6. The City Council has approved a General Fund Operating Reserve Policy of 20% of operating expenditures, and that this Reserve Policy may fall below 20% in an emergency situation, such as economic downturns or natural disasters.

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

PALMDALE, THE SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT Joint Resolution No. CC 2025-046, SA 2025-003, PCA 2025-001, HA 2025-002, IDA 2025-001, PAA 2025-001, and PFA 2025-001

AGENCY OF THE CITY OF PALMDALE, THE PALMDALE CIVIC AUTHORITY OF THE

CITY OF PALMDALE, THE HOUSING AUTHORITY OF THE CITY OF PALMDALE, THE

INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PALMDALE , THE

PALMDALE AIRPORT AUTHORITY OF THE CITY OF PALMDALE , AND THE

PALMDALE FINANCING AUTHORITY OF THE CITY OF PALMDALE (COLLECTIVELY THE ‘ALB’) DO HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:

SECTION 1. The Approving Legislative Bodies, and each of them, find in all respects as set forth in Section A -Intent of the Approving Legislative Bodies and hereby incorporate that Section A herein. Further, the Approving Legislative Bodies, and each of them, find that all lawfully required condition precedents to the adoption of this Joint Resolution have occurred as required by law.

SECTION 2. The original of the Budget of the Approving Legislative Bodies for the fiscal year 2025-26, as finally adopted by the Approving Legislative Bodies, shall be placed on file in the office of the City Clerk and shall be open to public inspection.

SECTION 3. The Approving Legislative Bodies, separately and on each entiti es own sole behalf, is approving all adjustments to the fiscal year 2024-25 revenues and expenditures as presented in the fiscal year 2025-26 Annual Budget document.

SECTION 4. The Budget of the Approving Legislative Bodies for fiscal year 2025- 26 as amended, modified, revised, and corrected by each of the approving legislative bodies, on its own sole behalf, is hereby approved and adopted. The Budget is subject to the requirements of Article XIII B of the California Constitution.

SECTION 5. The Authorized Positions and Classification and Pay Plans , as amended and incorporated in the budget document, are hereby approved and adopted.

The City Council recognizes and directs the City Manager to undertake all necessary or desirable revisions, reorgani zations, hiring, not hiring, wage, classification, budget, and all matters directly or indirectly related to personnel, Human Resources, negotiations, and employee management decisions, without further action by, or presentation to, the City Council pursuant to Palmdale Municipal Code Section 2.04.060 and the City of Palmdale City Charter.

SECTION 6. That the Chief Financial Officer/City Treasurer is authorized to expend in accordance with the laws of the State of California and the law and Charter of the City of Palmdale on behalf of the Approving legislative Bodies new appropriations as stated in the “Adopted Annual Budget for Fiscal Year 202 5-26,” attached hereto and incorporated herein by reference.

SECTION 7. That the Chief Financial Officer/City Treasurer is authorized to validate, sign and pay all legal and contractual obligations of the City, including City Departments and agencies with check warrants up to the amounts appropriated in this budget.

Joint Resolution No. CC 2025-046, SA 2025-003, PCA 2025-001, HA 2025-002, IDA 2025-001, PAA 2025-001, and PFA 2025-001

SECTION 8. The Director of Operations/City Treasurer shall have the authority to receive any and all donations on behalf of the City and make the appropriate entries into the City financial records to enable the City to spend the donation on the purpose for which it was intended without presenting each item to the City Council for approval. These donations, received throughout the fiscal year by various departments from members of the community for a variety of purposes, are obligated and not discretionary. All donations more than such amount shall be approved by the appropriate Approving Legislative Body.

SECTION 9. That at the conclusion of fiscal year ending June 30, 202 5, certain purchase orders will exist as outstanding encumbrances representing contractual obligations or previously budgeted funds. In addition, budgeted funds for certain items or projects in various stages of acquisition or development have previously been approved or will be approved by City Council to be carried forward to fiscal year 202 5-26 as Continuing Appropriations. The Outstanding Encumbrances and Continuing Appropriations shall be deemed to be re-budgeted as an addition to the budget amounts previously set forth in the Resolution.

SECTION 10. The Successor Agency to the Community Redevelopment Agency of the City of Palmdale and the Housing Authority of the City of Palmdale, in its capacity as the entity assuming the housing functions of the former Redevelopment Agency, find and determine that the planning and administrative expenses set forth in the Budget to be paid from the Authority’s Low and Moderate Income Housing Asset Fund, which was established pursuant to Section 9 of Assembly Bill 1484 (Health and Safety Code section 34176(d)), are necessary for the production, improvement or preservation of low -and moderate-income housing.

SECTION 11. Without prior approval of the Approving Legislative Bodies, and each of them, the City Manager/Executive Director/Secretary shall have authority to transfer within the same fund and category , but not from fund to fund, except for shifts in appropriations relating to personnel. A transfer from fund to fund in any amount, except as relates to personnel, shall be likewise approved by the respective Legislative Body of the Approving Legislative Bodies.

SECTION 1 2. That the City Council hereby approves the Capital Improvement Plan for Fiscal Year 202 5-26, contingent upon the acceptance of the Planning Commissions' determination on September 11, 2025, that the Fiscal Year 2025-26 capital projects are consistent with the General Plan of the City of Palmdale. If a project is not deemed consistent, that project will be deleted from the Capital Improvement Project.

SECTION 13. The City Clerk shall certify to the adoption of this resolution.

Joint Resolution No. CC 2025-046, SA 2025-003, PCA 2025-001, HA 2025-002, IDA 2025-001, PAA 2025-001, and PFA 2025-001

PASSED, APPROVED and ADOPTED this 17th day of June, 2025.

_________________________________
Approved as to form: Richard J. Loa, Mayor
Chair

ATTEST:

___________________________ _________________________________ Alexandra Halfman, Acting City Attorney Rochelle Scott, City Clerk Acting General Council/Authority Attorney Agency Secretary/Authority Secretary

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 17th day of June, 2025 by the following roll call vote:

AYES:

NOES:___________________________________________________________

ABSTAIN:______________________ABSENT:___________________________

Date:

Rochelle Scott, City Clerk
Fiscal Y ear
2025-26
Budget at a Glance
Dear Palmdale Residents,
The City remains fiscally strong and committed to
fostering a business-friendly environment. This strength is the result of thoughtful financial leadership by our City Council and a shared commitment to making Palmdale a
fantastic place to live, work and play.

Our organizational vision is to deliver world-class service that enhances quality of life through innovation, passion, engagement and collaboration. City staff work diligently to invest in critical infrastructure, ensure long-term financial stability and build a thriving, welcoming community.

This document outlines the City’s strategic goals and
finances that support them. We are taking strong action to keep Palmdale a safe and desirable place for all who call it home.

Local funding drives our success thanks to strong
support from Palmdale residents. Measure AV generates
$22.5 million annually for essential city services, like public safety, infrastructure and economic development.

Voters again showed their commitment to our City by
approving Measure PD, which took effect April 1, 2025,
and keeps tax revenues local and working for Palmdale.

I encourage our residents to explore the full
City Budget and related financial documents at
www.CityOfPalmdaleCA.gov/Budget. These
resources reflect our commitment to every aspect
of Palmdale’s future, from economic diversification
to housing strategies.

Thank you for your continued engagement and support.

Sincerely,
Salvador Mendez
City Manager Pro T em
City of Palmdale | 2
Scan the QR code to view more details on the City’s latest projects in line with these priorities.

Our budget is a plan for spending that implements the City Council’s priorities and strategic goals, delivers first-rate services and is responsive to the community’s needs.

Building Culture & Community
• Maintain effective public safety and protect
life, property and the environment.
• Provide high-quality recreation and open
space opportunities.
• Launch a bold new brand identity for the City.
• Revitalize the Chimbole Cultural Center into
a lively community hub.
• Expand DryT own Water Park with an exciting new
thrill ride attraction.
• Transform 56 acres at SR-14 and Palmdale Boulevard
for revolutionary development.

Economic Vitality & Innovation
• Support environmental sustainability through the
application of green energy technologies such as
zero-emissions hydrogen, microgrids and advanced
energy initiatives.
• Promote innovation through tools such as high-speed
broadband to streamline business processes and
increase responsiveness to the community.
• Generate employment opportunities through job
creation and workforce development.
• Build the contingency reserve to 30% in good times
and utilize wisely in difficult times.
• Recruit and retain highly competent staff.
• Attract quality retail and dining to elevate the
Palmdale lifestyle.

Social Unity
• Provide high-quality essential City services.
• Promote mental health and wellness through
community partnerships.
• Engage youth through meaningful opportunities to
contribute to our community.
• Create affordable, safe and secure housing.

Transportation & Infrastructure
• Enhance citywide mobility through impactful
improvements such as the Rancho Vista Boulevard
grade separation project.
• Continue responsible investment in key infrastructure, such as facilities, streets and vehicles.
• Partner with key agencies to restart air service at
Palmdale Regional Airport.
• Champion the Center for Transportation T echnology
Excellence to position Palmdale as a nationwide
leader in the transportation technology and
innovation sector.
• Support the development of high-speed rail and the
High Desert Corridor to solidify Palmdale as a major
transportation hub.
3 | Budget at a Glance FY 25-26
Strategic Priorities

3.9%
State General
Fund

0.5%
County
Public Safety
(Prop 172)

1.6%
County Realignment
(Mental Health/Welfare/
Public Safety)

0.25%
Countywide
Transportation
Fund

2.25%
County Tax Measures
(Includes Measure
A, C, M, & R.)
Sales Tax

11.25%
1%
City/County
General Fund

0.75%0.75%
Measure PD MEASURE
Stays Local
Sales Tax
For every dollar you spend, you are
taxed 11.25%. How much of your
sales tax does the City receive?
The City keeps 2.5%
of sales tax.

Property Tax
For every dollar paid on property taxes:

County
$0.22
Education
$0.39
LA Consolidated
Fire District
$0.16
City of Palmdale
Property Tax $0.06
(Stays Local)
City of Palmdale
Streetlight District $0.03
(Stays Local)
Other ($0.14)
Includes taxes such as LA County
Sanitation District No. 20 Operating
T ax, Children ’s Instil Tuition Fund,
A V Mosquito and Vector Control
District and more.

Palmdale Residents and the Budget
Where Does the City Get Its Money?
City of Palmdale | 4
Type of Grant Amount
State $ 3,645,270
Measure R 500,000
SAVES 25,000
Miscellaneous 5,850,990
T otal Grant Funds
for FY 25-26 Budget $ 10,021,260
Long-term Financial Planning
The City is committed to long-term comprehensive financial planning. It prepares and publicly presents, during the budget process, a detailed five-year forecast that includes an analysis of key revenues and expenditures, along with proposed measures to address any projected gaps.

Pension Stabilization Trust Fund
CalPERS: The City has taken many proactive steps to manage rising pension costs through the years. Most significant recent action was to allocate $1.25 million to the Pension Stabilization Trust Fund, which now has over $10.1 million reserved for future Unfunded Actuarial Liability (UAL) payments.

Grant Funding
The City applies for and receives grants from a variety of sources at the local, state and federal levels. The funds received will go toward many citywide projects including Palmdale Boulevard/SR-14 interchange improvements, arterial road rehabilitation projects, Courson Park revitalization, housing development and rehabilitation projects, Avenue R signal synchronization, Rancho Vista Boulevard/ Sierra Highway grade separation and more.

The City of Palmdale is dedicated to completing projects while saving you money.

Saving Residents Money
Here are a few of the ways we are saving taxpayers’ dollars:
5 | Budget at a Glance FY 25-26
-
Property Tax 33.4M
Sales & Use Tax 51.4M
Transient Occupancy Tax (TOT) 5.3M
Franchise Fees 9.1M
Other 41.1M
General Fund Revenues
T otal Revenues
$140.3M

23.8%

36.6%3.8%

6.5%

29.3%
$
$
Operations 42.8M
Public Safety 36.2M
Public Works 20.3M
Parks & Recreation 15.4M
Economic & Community Development
City Manager’s Office 8.2M
City Attorney 2.6M
Housing 1.2M
City Council 0.7M
General Fund Expenditures
T otal Expenditures
$137 .2M*

31.2%

26.4%

14.8%
6%

11.2%

7.1%

1.9%

0.9%

0.5%
$
$

9.8M
General Fund
The General Fund is the primary operating fund for the City, which provides activities, programs and services for the community. These revenue sources include property tax, sales tax, transient occupancy tax and service fees. Expenditures in the General Fund are primarily spent on public safety, building and safety, City infrastructure and government administration.

City of Palmdale | 6
General Fund All Funds
City Council $ 645,270 $ 645,270
City Attorney 2,618,700 2,618,700
City Manager Departm ent 8,272,970 9,976,490
Operations Department 30,797 ,080 123,811,240
Economic & Community Development Department 9,723,930 11,538,930 Public Safety Department 36,283,080 48,004,550
Housing Department 1,208,870 28,702,490
Parks & Recreation D epartment 15,382,230 21,403,900
Public Works Department 18,768,540 135,072,620
T otal Operating Budget $ 123,700,670 $ 381,774,190
General Fund All Funds
Bicycle and Pedestrian — —
Drainage — $ 300,000
Facilities — 108,000
General Improvements $ 12,000,000 12,000,000
Parks & Recreation 1,500,000 12,491,310
Streets — 14,000,000
Traffic — 120,000
Sewer and Watershed — 4,785,750
T otal Capital Budget 13,500,000 43,805,060
T otal FY 26 Revenue 140,290,280 422,052,830
T otal FY 26 Proposed Expenditure Budget $ 137 ,200,670 $ 425,579,250 Operating Budget
Capital Budget
7 | Budget at a Glance FY 25-26
Fiscal Y ear 2025-26 Proposed Budget
The City invests in the future of our community by funding Capital Improvement Projects (CIP).

Over the next year, improvement projects in the following categories will be implemented.

T otal investment in the community: $292,774,910
Ongoing: $260,969,850 � FY 26 Additions: $31,805,060
Traffic
$11,046,930
Facilities
$19,065,580
General
Improvements
$10,847 ,680
Bicycle &
Pedestrian
$740,140
Sewer &
Watershed
$15,542,380
Parks &
Recreation
$48,343,570
Streets
$179,077 ,480
Drainage
$8,111,150
Investing In Our Future
Ongoing: $7 ,811,150
FY 26 Additions: $300,000
Ongoing: $10,756,630
FY 26 Additions: $4,785,750
Ongoing: $740,140
FY 26 Additions: $0
Ongoing: $10,847 ,680
FY 26 Additions: $0
Ongoing: $35,852,260
FY 26 Additions: $12,491,310
Ongoing: $165,077 ,480
FY 26 Additions: $14,000,000
Ongoing: $18,957 ,580
FY 26 Additions: $108,000
Ongoing: $10,926,930
FY 26 Additions: $120,000
City of Palmdale | 8
Public Safety
Public Safety is a top priority for the City and provides the resources to keep residents safe.

Crime will not stand in our community. Through initiatives such as Flock cameras, graffiti abatement and our aggressive stance on retail theft, we are making your safety our number one priority.

The Public Safety budget funds contracts with the Los Angeles County Sheriff’s Department and Animal Care and Control, as well as City operating costs for personnel, vehicles and related expenses.

Costs for law enforcement services are rising
throughout the state due to changes in law,
increased lawsuits and other expenses associated
with policing services. The City will continue to
seek innovative ways to manage rising costs to
ensure residents have access to Sheriff’s deputies
and emergency services.

36.0M

45.5M

48.0M
Public Safety Budget
$
$
$
$40M
$50M
$30M
$20M
$10M
FY
23-24
FY
24-25
FY
25-26
9 | Budget at a Glance FY 25-26
FY 23-24
FY 24-25 (Projected)
FY 25-26 (Proposed)
About the City of Palmdale
The City of Palmdale, with nearly 170,000 residents, sits perfectly nestled in the Antelope Valley against the picturesque backdrop of the San Gabriel Mountains.

Our community thrives on its forward-thinking and innovative ethos, driving progress across various sectors, from transportation to aerospace to public safety. Families enjoy Palmdale’s excellent schools, affordable housing, abundant recreational opportunities, diverse local culture and welcoming atmosphere, all within reach of the Los Angeles metropolitan area. Despite its urban proximity, Palmdale retains its identity as a desert oasis, boasting stunning landscapes, native Joshua trees and over 300 days of annual sunshine. Explore further at www.CityOfPalmdaleCA.gov . www.CityOfPalmdaleCA.gov/StayingConnected
Fiscal Year 2025-26
Proposed Annual Operating
and Capital Budget
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
FY 2023
Actuals
FY 2024
Actuals
FY 2025
Projected
FY 2026
Proposed
FY 2027
Projected
FY 2027
Projected
FY 2027
Projected
FY 2028
Projected
1 BEGINNING FUND BALANCE 73,269,500 92,576,350 102,985,207 83,366,137 86,455,747 91,000,227 93,092,807 92,387,397 2 REVENUES/TRANSFERS IN
3 Property Tax 29,208,527 31,453,857 32,418,040 33,386,390 35,055,710 36,808,500 38,648,930 40,581,380 4 Sales And Use Tax 27,808,626 27,486,027 32,581,130 51,382,740 52,410,390 53,458,600 54,527,770 55,618,330 5 Transient Occupancy Tax 4,608,941 5,096,411 5,198,340 5,302,310 5,408,360 5,516,530 5,626,860 5,739,400 6 Franchise Fees 7,595,391 8,574,370 8,914,460 9,178,100 9,269,880 9,362,580 9,456,210 9,550,770 7 Use Of Property 3,783,921 3,892,008 3,290,070 3,481,880 3,551,520 3,622,550 3,695,000 3,768,900 8 License And Permits 5,525,829 6,723,302 5,035,820 5,460,440 5,569,650 5,681,040 5,794,660 5,910,550 9 Charges For Services 1,524,521 1,344,006 1,357,530 1,388,830 1,444,380 1,502,160 1,562,250 1,624,740 10 Development Charges For Services 3,190,946 2,944,663 3,172,810 3,265,850 3,363,830 3,464,740 3,568,680 3,675,740 11 Fines And Forfeitures 784,947 1,577,663 1,153,610 1,290,750 1,316,570 1,342,900 1,369,760 1,397,160 12 Other Revenue 5,790,501 12,632,441 11,083,420 13,352,000 6,000,000 6,000,000 6,000,000 6,000,000 13 Gain (Loss) Fair Value of Investments -654,783 3,288,259 0 0 0 0 0 0 14 Transfer In 14,281,368 14,493,144 22,966,500 12,800,990 8,150,000 8,150,000 8,150,000 8,150,000 15 Total Revenues 103,448,734 119,506,150 127,171,730 140,290,280 131,540,290 134,909,600 138,400,120 142,016,970 16 EXPENDITURES/TRANSFERS OUT
17 Salaries 16,911,909 17,906,418 21,761,490 22,374,990 23,269,990 24,200,790 25,168,820 26,175,570 18 Benefits 6,226,421 7,002,022 8,699,910 9,656,700 10,042,970 10,444,690 10,862,480 11,296,980 19 Organizational Development 443,678 518,233 727,740 826,900 835,170 843,520 851,960 860,480 20 Operating 8,841,748 24,259,852 18,754,030 13,467,410 13,871,430 14,287,570 14,716,200 15,157,690 21 Contract Services 13,732,984 14,961,012 26,077,940 25,455,430 25,964,540 26,483,830 27,013,510 27,553,780 22 Capital Outlay 1,806,038 2,494,167 8,813,520 13,966,380 2,000,000 2,000,000 2,000,000 2,000,000 23 County Contracts - Law Enforcement 12,992,270 18,079,108 21,546,520 22,095,200 24,746,620 27,716,210 31,042,160 34,767,220 24 County Contracts - Liability 2,773,013 3,307,590 3,569,030 3,729,640 4,028,010 4,350,250 4,698,270 5,074,130 25 County Contracts - Animal Control 1,491,007 2,251,652 3,200,000 4,000,000 4,120,000 4,243,600 4,370,910 4,502,040 26 Utilities 2,318,811 2,259,654 3,171,070 3,112,580 3,237,080 3,366,560 3,501,220 3,641,270 27 Debt Service 6,045,840 6,181,732 4,066,930 4,006,700 4,600,000 4,600,000 4,600,000 4,600,000 28 Transfers Out/Internal Svc Alloc. 10,558,167 8,859,353 24,132,620 12,988,740 8,000,000 8,000,000 8,000,000 8,000,000 29 Transfer Out to Reserves - 1,016,500 2,270,000 1,520,000 2,280,000 2,280,000 2,280,000 2,280,000 30 Total Expenditures 84,141,884 109,097,293 146,790,800 137,200,670 126,995,810 132,817,020 139,105,530 145,909,160 31 Surplus/(Deficit) (Revenue - Expenditures) 19,306,850 10,408,857 (19,619,070) 3,089,610 4,544,480 2,092,580 (705,410) (3,892,190) 32 FUND BALANCE BEFORE RESERVES/RESTRICTIONS 92,576,350 102,985,207 83,366,137 86,455,747 91,000,227 93,092,807 92,387,397 88,495,207 33 20 % Reserve Requirement (30% Recommended) 16,828,377 32,729,188 44,037,240 41,160,201 38,098,743 39,845,106 41,731,659 43,772,748 34 Restricted, Nonspendable and Assigned 23,493,168 22,594,028 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35,000,000 35 ENDING AVAILABLE BALANCE 52,254,805 47,661,991 4,328,897 10,295,546 17,901,484 18,247,701 15,655,738 9,722,459

CITY OF PALMDALE

FIVE YEAR GENERAL FUND AND CONSOLIDATED FUNDS PROJECTION

Fund Fund Description
FY 2025
Beginning
Available Fund
Balance
FY 2025
Revenues
FY 2025
Operating
Expenditures
FY 2025 Capital
Expenditures
Reserve
Requirement
Nonspendable,
Restricted and
Assigned
FY 2025
Projected
Ending Available
Fund Balance
101, 150,
151 General Fund 102,985,206 127,171,730 138,442,440 8,348,360 44,037,240 35,000,000 4,328,896 153 Information Technology 1,694,410 4,860,720 4,565,720 - 1,989,410 154 Fleet Maintenance 4,045,780 6,335,550 6,040,550 - 4,340,780 156 Public Art Fund 1,873,370 250,000 80,620 447,650 1,595,100 157 Measure AV 21,616,066 23,563,000 14,924,940 22,458,930 3,738,387 4,056,809 158 American Rescue Funds 2,352,603 13,500,120 2,100,120 11,005,990 2,746,613 200 PEG Fund 833,029 120,000 275,000 - 678,029 201 Gas Tax Fund 13,225,701 4,977,490 1,799,690 12,949,770 3,453,731 202 Public Safety Fund 1,911,832 732,500 150,000 - 2,494,332 203 Prop A Fund 11,383,984 4,696,690 6,845,700 9,251,710 (16,736) 204/214 Prop C Funds 17,459,839 12,406,070 579,600 14,193,840 15,092,469 205 Air Quality Improvement Fund 353,582 7,500 - 253,240 107,842 206 Local Transp Fund Art 3 2,588 223,760 - 222,760 3,588 207 Local Transp Fund Art 8 (5,163,829) 20,444,030 10,609,540 4,429,490 241,171 208/218 Measure R Funds 12,634,815 101,096,450 - 101,215,520 12,515,745 209/219 Measure M Funds 11,045,373 9,481,620 - 9,373,580 11,153,413 210 Road Maint & Rehab Acct Fund 11,060,103 4,284,220 - 13,711,990 1,632,333 211 Measure A LA County Parks (6,350) 5,937,900 - 5,931,550 - 220 Park Development Fund 3,146,241 1,350,000 269,600 3,504,170 722,471 221 Traffic Impact Fund 2,606,944 910,000 - 239,400 3,277,544 222-230 Drainage Funds 15,517,954 1,422,300 127,900 8,721,490 8,090,864 227 Fire Facilities Impact Fund 10,410,040 750,000 37,500 - 11,122,540 228 Sewer Upgrade Fund 489,594 7,500 - 424,450 72,644 229 Public Facilities Fund 2,133,681 495,000 - 940,170 1,688,511 240 Federal Funds Fund (5,557,912) 25,732,010 - 20,177,530 (3,432) 241 State Grants Fund (616,905) 2,481,320 552,480 1,515,640 (203,705) 242 Misc Grant/Developer Contrib 1,614,861 5,163,140 830,540 5,052,870 894,591 243 Federal Home Program 8,040,350 2,355,870 2,355,870 - 8,040,350 244 Federal Jobs Programs (13,069) 94,120 94,000 - (12,949) 245 HOME ARP Fund (2,141) 2,091,050 57,500 - 2,031,409 250 Park Assessments Fund 2,902,714 3,135,700 3,152,940 15,510 2,869,964 251 Landscape Maintenance Fund 15,335,247 7,598,190 9,859,810 276,580 12,797,047 252 Street Lighting Assmnt Distr 4,040,883 1,336,950 1,205,020 - 4,172,813 253 Drainage Benefit Assessment 1,551,752 156,700 49,200 - 1,659,252 254 Sewer Maint Assessment Dist 34,747,327 6,542,300 5,034,100 9,445,660 10,424,198 16,385,669 255 Street Light County District 17,471,448 3,695,370 4,357,950 - 16,808,868 256 Street Light Dist #2 Anaverde 950,221 191,320 216,850 - 924,691 257 Street Light Dist #3 Ritter 377,802 74,480 116,640 - 335,642 258 Enhanced Infrastructure Financing Dist. 716,006 300,000 135,000 - 881,006 259 CFD 2022-1 Maintenance Service Dist. 140,039 44,480 22,030 - 162,489 260 Solid Waste 1,363,455 857,970 667,770 - 1,553,655 280 CDBG Fund 2,210,856 2,775,830 1,648,190 1,216,000 2,122,496 281 SAVES Grant Fund (8,511) - - - (8,511) 291 Housing Authority Fund 1,501,144 195,710 219,820 - 1,477,034 292 Housing Facilities Fund (543,986) 8,613,260 8,147,570 - (78,296) 293 Housing Asset Fund 48,391,721 2,045,850 12,281,110 - 38,156,461 300 Water Park 4,931,645 2,306,000 2,246,480 1,646,000 3,345,165 350 Palmdale CCA 6,983,925 73,887,040 67,804,470 - 2,034,130 11,032,365 460 Successor Agency 6,701,436 74,681,430 73,923,680 - 7,459,186 480 AD88-1 10Th St West Improv (65,786) - - - (65,786) 481 AD90-2 7Th St West Improvement 146,247 - - - 146,247 482 CFD 2003-1 Improvement Fund 13,094 - - - 13,094 483 CFD 91-1 Sierra Gateway Improv 166,304 - - - 166,304 484 CFD 93-1 Ritter Ranch Impr Fund 2,798,214 19,000 - - 2,817,214 487 CFD 2022-3 Ritter Redemption (750) 52,300 - - 51,550 525 Debt Svc-PFA 35,168,015 5,168,680 5,392,330 - 34,944,365 580 OPEB Fiduciary Trust Funds 4,738,244 325,000 315,000 - 4,748,244 710 Palmdale Community Foundation 247,238 70,500 276,420 - 41,318 730 AD 88-1 10Th St West Redemption 80,630 5,000 - - 85,630 732 AD 90-2 7Th St West Redemption (117,957) 3,000 - - (114,957) 733 AD 87-1 Rancho Vista Rdmpt Fund 134,443 2,000 - - 136,443 734 CFD 03-1 Anaverde Redemption 1,981,983 1,551,100 1,532,500 - 2,000,583 735 CFD 2005-1 Redemption Fund 1,796,022 1,076,400 977,500 - 1,894,922 736 CFD 91-1 Sierra Gateway Redempt (86,688) 87,660 116,720 - (115,748) 737 AD 91-2 52Nd St West Redemption 23,967 400 - - 24,367 738 CFD 93-1 Ritter Ranch Rdmpt Fnd 220,780 1,500 52,910 - 169,370 739 AD 2006-01 Godde Hill Rdmp Fd 286,262 139,450 137,490 - 288,222 740 CFD 16-1 Joshua Ranch Wtr Rdmp 2,490,565 855,700 874,450 - 2,471,815 741 CFD 2022-2 Ritter Ranch Improv (938) 3,040,400 10,000 - 3,029,462 Total 446,862,754 583,778,330 391,513,260 266,969,850 60,233,955 35,000,000 276,924,019

CITY OF PALMDALE

ESTIMATED FUND BALANCE
FISCAL YEAR 2025

Fund Fund Description
FY 2026
Estimated
Beginning
Available Fund
Balance
FY 2026
Revenues
FY 2026
Operating
Expenditures
FY 2026
Capital
Expenditures
Reserve
Requirement
Nonspendable,
Restricted and
Assigned
FY 2026
Projected
Ending Available
Fund Balance
101, 150,
151 General Fund 83,366,136 140,290,280 123,700,670 13,500,000 41,160,201 35,000,000 10,295,545 153 Information Technology 1,989,410 5,534,130 5,489,130 - 2,034,410 154 Fleet Maintenance 4,340,780 2,718,320 2,673,320 - 4,385,780 156 Public Art Fund 1,595,100 250,000 377,900 - 1,467,200 157 Measure AV 7,795,196 24,068,000 17,860,230 10,349,310 2,820,954 832,702 158 American Rescue Funds 2,746,613 - - - 2,746,613 200 PEG Fund 678,029 100,000 704,740 - 73,289 201 Gas Tax Fund 3,453,731 5,189,540 3,805,410 4,500,000 337,861 202 Public Safety Fund 2,494,332 742,000 582,000 - 2,654,332 203 Prop A Fund (16,736) 4,545,430 4,476,970 50,000 1,724 204/214 Prop C Funds 15,092,469 3,907,950 2,267,100 3,120,000 13,613,319 205 Air Quality Improvement Fund 107,842 7,500 - - 115,342 206 Local Transp Fund Art 3 3,588 133,630 - - 137,218 207 Local Transp Fund Art 8 241,171 8,972,410 9,210,390 - 3,191 208/218 Measure R Funds 12,515,745 2,822,210 - 500,000 14,837,955 209/219 Measure M Funds 11,153,413 3,278,510 - 3,000,000 11,431,923 210 Road Maint & Rehab Acct Fund 1,632,333 4,436,310 - 6,000,000 68,643 211 Measure A LA County Parks - - - - - 220 Park Development Fund 722,471 1,550,000 269,600 200,000 1,802,871 221 Traffic Impact Fund 3,277,544 860,000 - - 4,137,544 222-230 Drainage Funds 8,090,864 1,462,550 277,900 1,500,000 7,775,514 227 Fire Facilities Impact Fund 11,122,540 775,000 35,000 - 11,862,540 228 Sewer Upgrade Fund 72,644 10,000 - - 82,644 229 Public Facilities Fund 1,688,511 515,000 - - 2,203,511 240 Federal Funds Fund (3,432) 58,310 54,870 - 8 241 State Grants Fund (203,705) 4,095,120 3,645,270 - 246,145 242 Misc Grant/Developer Contrib 894,591 5,630,860 5,650,990 200,000 674,461 243 Federal Home Program 8,040,350 1,337,460 1,337,460 - 8,040,350 244 Federal Jobs Programs (12,949) 119,450 106,500 - 1 245 HOME ARP Fund 2,031,409 2,091,050 2,033,550 - 2,088,909 250 Park Assessments Fund 2,869,964 3,233,200 2,999,440 300,000 2,803,724 251 Landscape Maintenance Fund 12,797,047 7,935,430 10,732,740 585,750 9,413,987 252 Street Lighting Assmnt Distr 4,172,813 1,376,790 1,310,220 - 4,239,383 253 Drainage Benefit Assessment 1,659,252 256,400 54,760 - 1,860,892 254 Sewer Maint Assessment Dist 26,809,867 6,643,520 4,967,650 - 8,042,960 20,442,777 255 Street Light County District 16,808,868 3,782,780 4,818,970 - 15,772,678 256 Street Light Dist #2 Anaverde 924,691 199,590 238,720 - 885,561 257 Street Light Dist #3 Ritter 335,642 77,230 122,480 - 290,392 258 Enhanced Infrastructure Financing Dist. 881,006 360,000 50,000 - 1,191,006 259 CFD 2022-1 Maintenance Service Dist. 162,489 46,130 22,690 - 185,929 260 Solid Waste 1,553,655 1,321,340 1,474,000 - 1,400,995 280 CDBG Fund 2,122,496 3,476,100 2,554,710 - 3,043,886 281 SAVES Grant Fund (8,511) 50,000 25,000 - 16,489 291 Housing Authority Fund 1,477,034 1,780,350 1,787,120 - 1,470,264 292 Housing Facilities Fund (78,296) 8,931,130 8,920,320 - (67,486) 293 Housing Asset Fund 38,156,461 1,989,630 2,647,670 - 37,498,421 300 Water Park 3,345,165 2,833,000 2,537,010 - 3,641,155 350 Palmdale CCA 13,066,495 71,030,670 70,449,410 - 2,113,480 11,534,275 460 Successor Agency 7,459,186 68,754,610 72,258,580 - 3,955,216 480 AD88-1 10Th St West Improv (65,786) - - - (65,786) 481 AD90-2 7Th St West Improvement 146,247 - - - 146,247 482 CFD 2003-1 Improvement Fund 13,094 - - - 13,094 483 CFD 91-1 Sierra Gateway Improv 166,304 - - - 166,304 484 CFD 93-1 Ritter Ranch Impr Fund 2,817,214 20,140 - - 2,837,354 487 CFD 2022-3 Ritter Redemption 51,550 53,870 - - 105,420 525 Debt Svc-PFA 34,944,365 5,168,680 5,168,510 - 34,944,535 580 OPEB Fiduciary Trust Funds 4,748,244 325,000 350,000 - 4,723,244 710 Palmdale Community Foundation 41,318 - - - 41,318 730 AD 88-1 10Th St West Redemption 85,630 5,000 - - 90,630 732 AD 90-2 7Th St West Redemption (114,957) 3,000 - - (111,957) 733 AD 87-1 Rancho Vista Rdmpt Fund 136,443 2,000 - - 138,443 734 CFD 03-1 Anaverde Redemption 2,000,583 1,551,000 1,529,320 - 2,022,263 735 CFD 2005-1 Redemption Fund 1,894,922 1,076,400 978,520 - 1,992,802 736 CFD 91-1 Sierra Gateway Redempt (115,748) 88,660 111,590 - (138,678) 737 AD 91-2 52Nd St West Redemption 24,367 500 - - 24,867 738 CFD 93-1 Ritter Ranch Rdmpt Fnd 169,370 15,000 54,050 - 130,320 739 AD 2006-01 Godde Hill Rdmp Fd 288,222 146,980 141,230 - 293,972 740 CFD 16-1 Joshua Ranch Wtr Rdmp 2,471,815 886,070 899,400 - 2,458,485 741 CFD 2022-2 Ritter Ranch Improv 3,029,462 3,131,610 11,080 - 6,149,992 Total 372,157,974 422,052,830 381,774,190 43,805,060 54,137,595 35,000,000 279,493,960

CITY OF PALMDALE

ESTIMATED FUND BALANCE
FISCAL YEAR 2026

Category 2024 Actual 2025 Budget
2025 YTD
Actual
2025
Projected
2026
Proposed $ Chg % Chg
PROPERTY TAXES 102,920,260 105,721,710 53,492,830 107,476,870 102,619,000 (4,857,870) -4.5% SALES & USE TAXES 64,072,078 69,687,620 44,679,441 70,380,160 88,509,840 18,129,680 25.8% OTHER TAXES 8,827,064 8,931,600 8,080,631 8,981,710 9,214,850 233,140 2.6% TRANSIENT OCC TAX 5,096,411 4,950,000 3,605,464 5,198,340 5,302,310 103,970 2.0% FRANCHISE FEES 8,739,107 17,631,960 7,829,981 9,034,460 9,278,100 243,640 2.7% SUBVENTIONS & GRANTS 18,905,927 179,981,560 32,845,769 182,256,030 27,211,050 (155,044,980) -85.1% DEVELOPER CONTRIB 40,940 50,000 178,171 50,000 50,000 - 0.0% COUNTY CONTRIB 158,083 7,571,970 223,061 6,827,900 972,450 (5,855,450) -85.8% STATE CONTRIBUTIONS - 1,000 - - 1,000 1,000 0.0% OTHER AGENCY CONTRIB 75,102 4,289,330 1,562,584 4,126,750 279,000 (3,847,750) -93.2% USE OF PROPERTY 19,628,600 14,025,670 17,207,175 15,066,680 16,104,800 1,038,120 6.9% FAIR VALUE OF INVEST 5,787,244 - - - - - 0.0% PARK DEVELOPMENT FEE 677,938 1,500,000 941,198 1,300,000 1,500,000 200,000 15.4% DRAINAGE FEES 5,085,662 867,000 668,582 870,000 900,000 30,000 3.4% SEWER UPGRADE FEES 3,195 900 2,170 2,200 2,200 - 0.0% TRAFFIC IMPACT FEES 2,025,899 950,000 829,260 900,000 850,000 (50,000) -5.6% FACILITY IMPACT FEE 2,028,686 1,190,000 762,401 1,190,000 1,200,000 10,000 0.8% LICENSES AND PERMITS 6,817,746 5,073,500 4,854,431 5,149,420 5,574,040 424,620 8.2% CHRGS FOR SERVICES 71,489,306 75,769,070 64,772,207 77,832,040 75,462,670 (2,369,370) -3.0% DEV CHRGS FOR SVCS 3,281,263 3,355,610 2,725,774 3,422,810 3,515,850 93,040 2.7% FINES & FORFEITURES 1,859,321 1,298,110 5,841,550 1,492,610 1,614,950 122,340 8.2% SPECIAL ASSESSMENTS 25,088,291 27,893,230 21,852,692 27,915,680 28,633,500 717,820 2.6% OTHER - REVENUE 13,546,828 6,770,210 5,128,600 12,513,410 14,630,800 2,117,390 16.9% BOND PROCEEDS (OFS) 42,986,227 - - - - - 0.0% GN/LS-SALE OF ASSET 82,891 15,090 180,725 80,820 - (80,820) -100.0% 409,224,071 537,525,140 278,264,696 542,067,890 393,426,410 (148,641,480) -27.4%

CITY OF PALMDALE
FY 2026 PROPOSED BUDGET
REVENUES-ALL FUNDS (Excluding Transfers)

Category 2024 Actual 2025 Budget
2025 YTD
Actual
2025
Projected
2026
Proposed $ Chg % Chg
PROPERTY TAXES 31,453,857 31,738,000 19,316,932 32,418,040 33,386,390 968,350 3.0% SALES & USE TAXES 27,486,027 32,436,590 17,836,655 32,581,130 51,382,740 18,801,610 57.7% TRANSIENT OCC TAX 5,096,411 4,950,000 3,605,464 5,198,340 5,302,310 103,970 2.0% FRANCHISE FEES 8,574,370 17,366,960 7,769,856 8,914,460 9,178,100 263,640 3.0% SUBVENTIONS & GRANTS 25,000 - - - - - 0.0%
OTHER AGENCY CONTRIB 40,250 50,000 24,750 50,000 50,000 - 0.0% USE OF PROPERTY 3,892,008 3,472,330 1,523,951 3,290,070 3,481,880 191,810 5.8% FAIR VALUE OF INVEST 1,800,460 - - - - - 0.0% LICENSES AND PERMITS 6,723,302 4,959,900 4,746,592 5,035,820 5,460,440 424,620 8.4% CHRGS FOR SERVICES 1,344,006 1,291,810 1,177,948 1,357,530 1,388,830 31,300 2.3% DEV CHRGS FOR SVCS 2,944,663 3,105,610 2,471,299 3,172,810 3,265,850 93,040 2.9% FINES & FORFEITURES 1,577,663 973,910 5,515,628 1,153,610 1,290,750 137,140 11.9% OTHER - REVENUE 12,567,192 5,237,000 4,689,938 11,033,420 13,302,000 2,268,580 20.6% 105,013,006 105,582,110 68,679,014 104,205,230 127,489,290 23,284,060 22.3%

CITY OF PALMDALE
FY 2026 PROPOSED BUDGET
REVENUES-GENERAL FUND (Excluding Transfers)

Category 2024 Actual 2025 Budget
2025 YTD
Actual
2025
Projected
2026
Proposed $ Chg % Chg
SALARIES 29,957,228 34,746,080 27,106,995 35,583,840 38,078,240 2,494,400 7.0% BENEFITS 12,761,098 16,080,390 12,231,912 15,536,890 17,497,960 1,961,070 12.6% ORG DEVELOPMENT 692,097 1,120,130 544,827 960,310 1,117,860 157,550 16.4% OPERATING EXP 35,230,048 33,502,212 14,962,902 31,905,330 32,339,050 433,720 1.4% CONTRACT SERVICES 85,831,578 115,420,710 85,533,141 111,674,040 116,540,300 4,866,260 4.4% SOFTWARE 1,071,506 2,941,860 2,014,022 2,604,790 3,250,290 645,500 24.8% CAPITAL OUTLAY 462,139 869,000 412,536 813,650 799,030 (14,620) -1.8% COUNTY CONTRACTS 33,063,090 35,730,060 24,946,845 36,682,550 39,040,690 2,358,140 6.4% UTILITIES 7,030,131 9,162,050 6,624,885 9,077,720 9,472,150 394,430 4.3% PROGRAM EXP 2,140,048 19,469,270 404,678 13,996,170 8,653,640 (5,342,530) -38.2% INTER-GOV SHARING 59,495,693 61,402,480 24,768,727 61,402,480 59,525,000 (1,877,480) -3.1% CAPITAL 45,723,749 275,952,090 99,099,567 272,943,210 46,719,790 (226,223,420) -82.9% DEBT SERVICE 26,467,892 22,196,050 15,936,391 22,341,690 23,055,040 713,350 3.2% GN/LS-SALE OF ASSET 274,481 - - - - - 0.0% 340,200,778 628,592,382 314,587,429 615,522,670 396,089,040 (219,433,630) -35.6%

CITY OF PALMDALE
FY 2026 PROPOSED BUDGET
EXPENDITURES-ALL FUNDS (Excluding Transfers)

Category 2024 Actual 2025 Budget
2025 YTD
Actual
2025
Projected
2026
Proposed $ Chg % Chg
SALARIES 17,906,418 21,173,360 16,224,103 21,761,490 22,374,990 613,500 2.8% BENEFITS 7,002,022 9,294,570 7,030,997 8,699,910 9,656,700 956,790 11.0% ORG DEVELOPMENT 518,233 842,710 442,622 727,740 826,900 99,160 13.6% OPERATING EXP 23,983,264 13,706,970 9,552,421 18,727,030 13,467,410 (5,259,620) -28.1% CONTRACT SERVICES 14,961,012 27,481,490 16,093,184 26,077,940 25,450,430 (627,510) -2.4% SOFTWARE 2,107 3,000 2,301 27,000 5,000 (22,000) -81.5% CAPITAL OUTLAY 93,892 453,870 132,853 326,160 270,980 (55,180) -16.9% COUNTY CONTRACTS 23,638,350 27,964,940 19,302,655 28,315,550 29,824,840 1,509,290 5.3% UTILITIES 2,259,654 3,214,770 2,203,889 3,171,070 3,112,580 (58,490) -1.8% CAPITAL 2,400,275 7,340,190 6,166,438 8,487,360 13,695,400 5,208,040 61.4% DEBT SERVICE 2,436,937 2,291,600 2,259,532 2,291,280 2,306,400 15,120 0.7% GN/LS-SALE OF ASSET 274,481 - - - - - 0.0% 95,476,644 113,767,470 79,410,996 118,612,530 120,991,630 2,379,100 2.0%

CITY OF PALMDALE
FY 2026 PROPOSED BUDGET
EXPENDITURES-GENERAL FUND (Excluding Transfers)