Agenda packet, first session — Palmdale City Council, November 4, 2025 (part 1 of 3)

LEGISLATIVE BODY

LAURA BETTENCOURT, MAYOR PRO TEM

AUSTIN BISHOP, COUNCILMEMBER
RICHARD J. LOA, COUNCILMEMBER

ERIC OHLSEN, COUNCILMEMBER
ANDREA ALARCÓN, COUNCILMEMBER

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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.

Public Comment Information
The public is allotted to speak a total of three (3) minutes on the Consent Calendar, Public Hearing(s), Appointment, New Business, and Closed Session. Any person who would like to address the Legislative Body on any agendized item may complete a

CITY COUNCIL

SUCCESSOR AGENCY

CITY COUNCIL CHAMBER
38300 SIERRA HIGHWAY

SUITE B
PALMDALE, CA 93550

TUESDAY, NOVEMBER
4, 2025
5:00 PM
www.cityofpalmdaleca.gov

WELCOME
City Council
Tuesday, November
4, 2025
speaker card for the City Clerk and identify the agenda item you would like to discuss.

The Speaker cards are available in the foyer of the Council Chambers.

1. CALL MEETING TO ORDER

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

2. ROLL CALL

MAYOR PRO TEM BETTENCOURT, COUNCILMEMBERS BISHOP, LOA, OHLSEN, ALARC
Ó
N

3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

4. CONSENT CALENDAR - Now is the time for public participation.

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.

4.1 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).

4.2 Receive and File the monthly and quarterly Investment Reports for September 2025.

SR Monthly Investment Report Sep 2025.docx

Rpt. Monthly Investment Reports Sept 2025.pdf

4.3 Approve Agreement with Willdan Financial Services for comprehensive professional services to complete a full cost-of-service and user fee study for the City of Palmdale, for a total not to exceed amount of $150,000 for a term of 1 year.

SR Agrmt No. A-9597 with Willdan Financial Services.docx

Agrmt No. A-9597 with Willdan Financial Services.pdf

4.4 Receive and file the annual activity report for Development Agreement pertaining to the Oasis Wellness Village project located at the southeast corner of Palmdale Boulevard and Tierra Subida Avenue.

SR Rpt. Annual Activity Report for DA No. A-5595.docx

Agrmt No. A-5595 Oasis Wellness Village.pdf

4.5 Approve the Second Amendment to Agreement with Frazier Capital Valuation, Inc., for property valuation, appraisals, and broker services, increasing the City Council
Tuesday, November
4, 2025
agreement by $100,000 for a total not to exceed amount of $140,000 and exercise the final one-year extension through January 20, 2027; and adopt Resolution No. CC 2025-090, a Resolution of the City Council of the City of Palmdale, authorizing the Interim City Manager to execute the Second Amendment to the Agreement with Frazier Capital Valuation, Inc., and granting authorization to pay all fees.

SR Agrmt No. A-7570 Second Amendment with Frazier Capital Valuation, Inc.docx

Agrmt No. A-7570 Second Amendment with Frazier Capital Valuation, Inc.pdf

Agrmt No. A-7570 First Amendment with Frazier Capital Valuation, Inc.pdf

Agrmt No. A-7570 with Frazier Capital Valuation, Inc.pdf

Reso. No. CC 2025-090.docx

4.6 Approve Agreement with Dudek to update the City's Sewer System Master Plan for a total not to exceed amount of $840,598 over a two (2) year term.

SR Agrmt No. A-9451 with Dudek.docx

Agrmt No. A-9451 with Dudek.pdf

Dudek Technical Proposal.pdf

Dudek Cost Proposal.pdf

4.7 Approve First Amendment to Takeover Agreement with Los Angeles County Sanitation District No. 20 (45th Street East Extension Trunk Sewer).

SR Agrmt No. A-6911 First Amendment with LACSD No. 20.docx

Agrmt No. A-6911 First Amendment with LACSD No. 20.pdf

Agrmt No. A-6911 with LACSD No. 20.pdf

Cost Estimate.pdf

4.8 Authorize a Resource Adequacy Agreement between Athos Storage, LLC, an SB Energy Company, and California Choice Energy Authority on behalf of Energy for Palmdale's Independent Choice (EPIC) for the purchase of long-term, mid-term reliability capacity.

SR RA Agrmt Athos Storage LLC and CalChoice.docx

RA Agrmt Athos Storage, LLC and CalChoice.pdf

4.9 Accept Notice of Completion (NOC) for Public Landscape Improvements for Tract 60732 located at 20th Street West and Quick Street.

SR NOC Public Landscape Improvements Tract 60732.docx

NOC Tract 60732.docx

List of Completed Public Improvements.pdf

Site Map.pdf

Site Photo.pdf

4.10 Accept Notice of Completion (NOC) for PN 795, Sam Yellen Park Phase 2 Project.

SR NOC PN 795 Sam Yellen Park Phase 2.docx

NOC PN 795 Sam Yellen Park Phase 2.docx

Project Photos.pdf
City Council
Tuesday, November
4, 2025

4.11 Approve the minutes from the previous meeting.

Mins 10 21 2025.pdf

5. PUBLIC HEARING - Now is the time for public participation. Each public hearing will have its own public testimony.

5.1 Conduct Public Hearing to obtain resident input on community needs and priorities for inclusion in the 2026-2027 Action Plan.

SR Public Hearing Action Plan.docx

5.2 Adopt Resolution No. CC 2025-086, a Resolution of the City Council of the City of Palmdale, approving a form of Density Bonus Agreement to facilitate the construction of a 264-unit multi-family residential development on one vacant parcel totaling approximately 9.95 acres located on the west side of 15th Street East and approximately 375 feet north of East Avenue Q.

SR Reso. No. CC 2025-086 (Agrmt No. A-9332).docx

Reso. No. CC 2025-086 (Agrmt No. A-9332).docx

Exh A Reso. No. CC 2025-086 Legal Description AGR 25-0002 (Agrmt No.

A-
9332).docx

Exh B Reso. No. CC 2025-086 Aerial Map AGR 25-0002 (Agrmt No. A-9332).docx

Exh C Reso. No. CC 2025-086 Density Bonus Agreement (Agrmt No. A-9332).pdf

Reso. No. PC-2025-023.pdf

5.3 Adopt Resolution No. CC 2025-087, a Resolution of the City Council of the City of Palmdale approving a form of Density Bonus Agreement 25-0003 to facilitate the construction of a 272-unit multi-family residential development on two vacant parcels totaling approximately 9.8 acres located at the northwest corner of east Avenue Q and 25th Street East, and authorize the Interim City Manager or his designee to exercise the option to amend the agreement as necessary, including minimal and/or non substantial changes.

SR Reso. No. CC 2025-087.docx

Reso. No. CC 2025-087 (A-9355).docx

Exh A Reso. No. CC 2025-087 Legal Description For AGR 25-0003 (A-9355).docx

Exh B Reso. No. CC 2025-087 Aerial Map For AGR 25-0003 (A-9355).docx

Exh C Reso. No. CC 2025-087 Density Bonus Housing Agreement (A-9355).pdf

Reso. No. PC-2025-015.pdf

5.4 Adopt Ordinance No. 1663, an Ordinance of the City Council of the City of Palmdale approving Zone change 25-0002 and Zoning Ordinance Amendment 25-0003 to address inconsistencies and streamline review procedures; and adopt Resolution No. CC 2025-085, a Resolution of the City Council of the City of Palmdale approving General Plan Amendment 25-0002 to amend the land use map and finding that the project is consistent with program environmental impact report 22-002 prepared and certified in conjunction with the City’s General Plan City Council
Tuesday, November
4, 2025
(Palmdale 2045).

SR Ord. No. 1663 and Reso. No. CC 2025-085.docx

Ord. No. 1663.docx

Reso. No. CC 2025-085.docx

Reso. No. PC 2025-022.pdf

5.5 Adopt Ordinance No. 1664, an Ordinance of the City Council of the City of Palmdale, California, amending Sections 8.04.410 and 8.04.430, and repealing Sections 8.04.440 through 8.04.510 of the Palmdale Municipal Code to prohibit fireworks, finding the Ordinance exempt from CEQA; and adopt Resolution No.

CC 2025-091, a Resolution of the City Council of the City of Palmdale, California, making its express findings as required by Section 17958.7 of the Health and Safety Code of the State of California relating to the adoption of Ordinance No. 1664 prohibiting all fireworks, and finding it is not a project per CEQA.

SR Ord. No. 1664.docx

Ord. No. 1664.docx

Reso. No. CC 2025-091.docx

6. NEW BUSINESS - Now is the time for public participation.

6.1 Approve Community Grant Program.

SR Community Grant Program.docx

7. CITY MANAGER’S REPORT

8. NON-AGENDA PUBLIC COMMENTS
-
Now is the time for public participation.

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

9.1 Council Reports

Monthly Informational Report Bettencourt 110725.docx

Monthly Informational Report Bishop 110425.docx

Monthly Informational Report Loa 110425.docx

Monthly Informational Report Ohlsen 110425 .docx

10. CLOSED SESSION - Now is the time for public participation.

PRESENTATION BY CITY ATTORNEY

10.1 CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Salvador Mendez, Interim City Manager, and Linda Daube, Special Counsel
Employee organization: Teamsters Local 986
City Council
Tuesday, November
4, 2025
This closed session is being held pursuant to the authority of California Government Code Section 54957.6.

10.2 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Andrea Alarcón v. City of Palmdale
Los Angeles Superior Court 24STCP03201
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

11. ANNOUNCEMENT BY CITY ATTORNEY

12. ADJOURN
meeting to December 2, 2025, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

City Council
Tuesday, November
4, 2025
https:/ /attend.wordly.ai/join/SLOR-7400

City Council Staff Report

DATE: NOVEMBER 4, 2025

TO: HONORABLE MAYOR PRO TEM AND CITY COUNCIL

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

SUBJECT: RECEIVE AND FILE THE MONTHLY AND QUARTERLY
INVESTMENT ACTIVITY REPORTS FOR SEPTEMBER 2025

RECOMMENDATION

Staff recommend that the City Council:

1. Receive and file the September 2025 monthly and quarterly investment activity reports for the City of Palmdale and Successor Agency.

BACKGROUND

Pursuant to Section 16 of the City and Successor Agency Investment Policy, the City Treasurer shall prepare and present monthly reports on investments to the City Manager/Executive Director and the City Council/Directors. The reports shall deta il the type of investment, issuer’s name, purchase date, maturity date, amount of deposit, and interest rate. This information shall be provided for all City and Successor Agency pooled investments and for Certificates of Participation, Revenue Bonds, Tax Allocation Bonds, Assessment Districts, and Community Facilities District accounts managed by outside Fiscal Agents.

The monthly and quarterly investment report s provide a synopsis of the City and Successor Agency’s investment activity. They provide information on assets, allocations, average maturities, yields, and book valuations. The interest rates presented are the most current rates available as of the date of this report.

The market values prese nted for pooled City and Successor Agency investments are based on closing prices for the related investment as of the date of this report. This information was obtained from the Wall Street Journal, Bloomberg Financial Markets, Capital Market Finances, or other reliable sources of market prices.

Report to Mayor Pro Tem and City Council
Re: Monthly and Quarterly Investment Reports
November 4, 2025

Page 2 ends

DISCUSSION

Compliance with Investment Policy

For September, the City’s invested portfolio totaled $304,352,592, a decrease of $11,977,563 from the previous month and a decrease of $31,055,687 compared to the prior year. The monthly decrease was due to several maturities and calls during the month.

The par value of the Successor Agency’s portfolio as of September was $10,142,971, no change from the prior month.

All investments meet criteria appropriate to Section 8 of the Investment Policy. The portfolios are based on a combination of various investments, including CDs, Corporate Notes, US Treasury Securities, and Government Agency Paper, each adhering to portfolio percentage limitations.

The Finance Division is the custodian for the City and Successor Agency’s investment portfolio and follows the three main principles of both entities’ investment policies: 1) Investment in financial instruments that mitigate the risk of monetary losses stemming from market fluctuations; 2) Establish and maintain a portfolio that has sufficient liquidity to allow the City and Successor Agency to meet all anticipated cash requirements; and, 3) Seek out investment instruments that provide a competitive market rate of return.

Liquidity

One core approach the Finance Division focuses on is providing liquidity to meet the City and Successor Agency’s operationa l requirements. Thus, the City invests in two pooled funds, the Local Agency Investment Fund ( LAIF) and the California Asset Management Program (CAMP). These are intended for daily operational activities and can be used during economic uncertaintie s for ongoing operating and maintenance needs. The pooled funds provide a higher liquidity ratio to ensure the City and Successor Agency meet cash flow requirements.

The City’s LAIF balance at the end of September was $108,623,145, no change from the prior month.

The Successor Agency’s LAIF balance at the end of September was $3,942,545, no change from the prior month.

The City’s CAMP balance at the end of September was $ 53,535,437 compared to $53,344,234 in August. The increase is due to interest earned.

Report to Mayor Pro Tem and City Council
Re: Monthly and Quarterly Investment Reports
November 4, 2025

Page 3 ends

The interest rates presented are the most current rates available as of the date of this report. As of September 30, 2025, the interest rates for LAIF and CAMP investments were 4.212 percent and 4.36 percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of August were 4.251 percent and 4.40 percent. This time last year, LAIF and CAMP rates were at 4.575 percent and 5.29, respectively.

The chart above shows the LAIF and CAMP average monthly yields from December 2024 through September 2025. The difference between the two funds’ performance is primarily due to their varying pool characteristics. CAMP’s portfolio composition is more prone to market volatility, resulting in performance variations.

Diversity

The Finance Division aims to diversify the investment portfolios to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.

The City and Successor Agency’s investment portfolios remain strongly diversified. The monthly and quarterly reports include all investments held by both entities and current book values as of September 30, 2025.

The City and Successor Agency are expected to have sufficient funds to meet their expenditure requirements for the next six months. The Finance Division will continue to monitor current economic conditions and the impact on interest rates.

Attached are summaries of the investments in the City and Successor Agency’s books as of September 30, 2025.

4.43%

4.37%

4.33% 4.31% 4.28% 4.27% 4.27% 4.26% 4.25% 4.21%

4.73%

4.55% 4.51% 4.47% 4.45% 4.42% 4.40% 4.41% 4.40% 4.36%

3.90%

4.00%

4.10%

4.20%

4.30%

4.40%

4.50%

4.60%

4.70%

4.80%
Q2 Dec Jan Feb Q3 Mar Apr May Q4 Jun July Aug Q1 Sep
Pooled Investments Monthly Yields

LAIF CAMP
Report to Mayor Pro Tem and City Council
Re: Monthly and Quarterly Investment Reports
November 4, 2025

Page 4 ends

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, Interim City Manager
Approved as to form: Alexandra Severino, City Attorney

ATTACHMENTS

Rpt. Monthly and Quarterly Investment Reports September 2025

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
SEPTEMBER 30, 2025

PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT
U.S. TREASURY SECURITIES Yield
03-19-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 3,000,000.00 3,260,634.36 2,976,600.00 05-11-21 02-28-26 CITY 9128286F2 U.S. Treasury Note 0.66 3,000,000.00 3,261,331.50 2,966,940.00 07-12-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 5,000,000.00 5,451,958.35 4,961,000.00 03-08-23 03-31-26 CITY 9128286L9 U.S. Treasury Note 2.25 3,200,000.00 3,029,330.80 3,156,832.00 01-03-24 12-31-26 CITY 912828YX2 U.S. Treasury Note 0.04 5,000,000.00 4,696,880.23 4,848,850.00 01-03-24 06-30-27 CITY 91282CEW7 U.S. Treasury Note 0.04 5,000,000.00 4,897,630.28 4,954,900.00 01-03-24 09-30-27 CITY 91282CFM8 U.S. Treasury Note 0.04 2,500,000.00 2,523,771.66 2,522,450.00 01-08-24 02-15-26 CITY 91282CGL9 U.S. Treasury Note 0.04 5,000,000.00 4,987,205.23 4,993,400.00 01-08-24 06-15-26 CITY 91282CHH7 U.S. Treasury Note 0.04 5,000,000.00 5,001,760.94 5,006,000.00 12-18-24 09-30-29 CITY 91282CFL0 U.S. Treasury Note 0.39 5,000,000.00 4,977,094.45 5,022,250.00 12-18-24 10-31-29 CITY 91282CFT3 U.S. Treasury Note 0.40 5,000,000.00 4,988,321.47 5,047,050.00 12-18-24 11-30-29 CITY 91282CFY2 U.S. Treasury Note 0.39 5,000,000.00 4,942,086.29 5,021,300.00 01-02-25 12-31-29 CITY 91282CGB1 U.S. Treasury Note 0.39 3,000,000.00 2,949,835.02 3,012,300.00 TOTAL U.S. TREASURY SECURITIES 54,700,000.00$ 54,967,840.58$ 54,489,872.00$

GOVERNMENT AGENCY PAPER
06-04-21 11-07-25 CITY 3135G06G3 Fannie Mae 0.55 3,000,000.00 2,993,675.25 2,960,070.00 06-30-21 12-30-25 CITY 3130AMRQ7 Federal Home Loan Note 0.88 3,000,000.00 3,000,000.00 2,949,049.86 07-29-21 04-29-26 CITY 3130AN5C0 Federal Home Loan Note 1.05 4,000,000.00 4,010,455.13 3,899,120.00 12-17-21 11-12-25 CITY 3134GXBM5 Federal Home Loan Note 1.15 1,150,000.00 1,125,785.50 1,134,187.50 12-21-21 12-22-26 CITY 3133ENJC5 Federal Farm Credit 1.29 5,000,000.00 5,000,000.00 4,814,666.55 06-24-22 02-26-27 CITY 3130AL5A8 Federal Home Loan Note 3.33 5,000,000.00 4,479,000.00 4,758,477.85 08-17-22 10-27-26 CITY 3134GW4C7 Freddie Mac 0.80 5,000,000.00 4,539,500.00 4,800,207.95 01-06-23 02-25-27 CITY 3130AQRH8 Federal Home Loan Note 4.38 5,000,000.00 4,590,638.89 4,843,987.40 01-06-23 04-19-27 CITY 3130ARHJ3 Federal Home Loan Note 4.38 5,000,000.00 4,801,354.86 4,925,508.20 05-03-24 05-01-28 CITY 3133ERCX7 Federal Farm Credit 5.17 5,000,000.00 5,000,000.00 5,022,317.60 08-08-24 08-14-29 CITY 3134HADY6 Freddie Mac Domestic 4.00 4,000,000.00 3,946,000.00 3,971,348.28 12-03-24 12-04-29 CITY 3130B3XP3 Federal Home Loan 4.50 1,000,000.00 1,000,000.00 998,973.31 12-04-24 12-02-27 CITY 3133ERE23 Federal Farm Credit 4.32 1,000,000.00 1,000,000.00 1,003,072.14 01-27-25 07-27-27 CITY 3130B4RC7 Federal Home Loan Bank 4.50 3,000,000.00 3,000,000.00 3,019,381.53 01-28-25 07-21-27 CITY 3130B4QA27 Federal Home Loan Bank 4.55 3,000,000.00 3,000,000.00 3,003,732.24 06-13-25 10-30-28 CITY 3130B62E5 Federal Home Loan Bank 4.25 3,000,000.00 3,000,000.00 3,000,982.74 06-27-25 04-30-29 CITY 3136GAGW3 Fannie Mae 4.75 5,000,000.00 5,000,000.00 4,993,056.90 07-07-25 07-07-28 CITY 3134HBWS6 Freddie Mac Domestic 4.00 2,000,000.00 1,995,000.00 1,995,000.00 08-29-25 02-25-30 CITY 3133ETUN5 Federal Farm Credit 4.45 5,000,000.00 5,000,000.00 5,000,000.00 08-28-25 02-25-30 CITY 3133ETUM7 Federal Farm Credit 4.53 5,000,000.00 5,000,000.00 5,000,000.00 09-17-25 09-15-28 CITY 3133ETXV4 Federal Farm Credit Bond 3.83 1,400,000.00 1,402,403.14 1,400,000.00 TOTAL GOVERNMENT AGENCY PAPER 74,550,000.00$ 72,883,812.77$ 73,493,140.05$

CITY OF PALMDALE INVESTMENTS

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
SEPTEMBER 30, 2025

PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT

CERTIFICATES OF DEPOSIT
01-04-24 06-15-26 CITY 05580A4Y7 BMW Bank of NA 4.03 240,000.00 243,434.40 241,276.80 01-04-24 12-28-28 CITY 09582YAV4 Blue Ridge Bank 4.09 240,000.00 240,948.00 241,135.20 06-11-24 06-11-26 CITY 38150VUZ0 Goldman Sachs Bank 5.05 245,000.00 245,033.90 247,179.52 06-13-24 06-13-29 CITY 89235MPP0 Toyota Financial SGS 4.65 245,000.00 245,000.00 250,250.86 06-14-24 06-15-26 CITY 34520LBC6 Forbright Bank 5.05 245,000.00 245,000.00 247,279.55 06-14-24 06-14-28 CITY 307811KA6 Farmers & Merchs Bank 5.00 245,000.00 245,000.00 246,517.02 06-17-24 06-17-26 CITY 8562855V9 State Bank of India 5.10 245,000.00 245,000.00 247,345.31 06-18-24 06-18-29 CITY 229083AA8 Evangeline Bank & Trust 5.30 245,000.00 245,000.00 245,115.79 06-20-24 06-22-26 CITY 06051XER9 Bank of America NA 5.05 245,000.00 245,000.00 247,339.38 06-21-24 06-22-26 CITY 35634MAE1 Freedom Bank/Maywood NJ 5.05 245,000.00 245,000.00 247,339.60 TOTAL CERTIFICATES OF DEPOSIT 2,440,000.00$ 2,444,416.30$ 2,460,779.03$ 05-17-23 03-01-26 CITY 30231GAT9 Exxon Mobile Corporation 3.04 1,000,000.00 982,084.11 992,306.58 05-17-23 03-02-26 CITY 194162AQ6 Colgate-Palmolive 4.80 1,000,000.00 1,035,553.33 1,004,192.41 05-17-23 01-26-26 CITY 742718FY0 Procter & Gamble 4.10 1,000,000.00 1,018,471.67 998,946.40 01-04-24 07-27-26 CITY 61761J3R8 Morgan Stanley 4.70 500,000.00 481,185.25 493,730.00 01-04-24 06-15-26 CITY 46625HRS1 JPMorgan Chase & CO 4.52 500,000.00 484,840.25 495,185.00 01-04-24 03-02-28 CITY 718172CE7 Philip Morris Intl Inc 4.49 500,000.00 474,395.25 487,000.00 01-04-24 04-01-27 CITY 808513BW4 Charles Schaw Corp 4.68 500,000.00 479,390.25 492,985.00 01-09-24 06-02-26 CITY 11271LAA0 Brookfield Fin Inc 5.13 500,000.00 490,115.25 498,735.00 01-09-24 11-28-28 CITY 05565QDH8 BP Capital Markets PLC 4.48 500,000.00 483,460.25 491,630.00 01-09-24 01-28-26 CITY 06406RAQ0 Bank OF NY Mellon Corp 4.52 500,000.00 463,355.25 489,620.00 01-09-24 07-09-27 CITY 22550L2K6 Crdit Suisse New York 4.92 500,000.00 500,910.25 507,650.00 01-09-24 08-15-28 CITY 797440CE2 San Diego G & E 4.49 500,000.00 509,340.25 510,425.00 01-09-24 07-01-27 CITY 75973QAA5 Reneissance Financial 5.01 500,000.00 475,470.25 492,385.00 01-09-24 01-27-26 CITY 780082AD5 Royal Bank of Canada 4.97 500,000.00 496,930.25 499,835.00 08-27-24 02-01-29 CITY 06406RBN6 Bank of NY Mellon Corp 4.20 656,000.00 663,116.29 660,965.92 08-27-25 07-26-29 CITY 06406RBK2 Bank of Melon Corp 4.09 1,000,000.00 1,021,952.92 1,021,952.92 08-27-25 08-09-29 CITY 89236TMK8 Toyota Motor Crdt Corp 4.03 500,000.00 510,587.75 510,587.75 08-27-25 05-13-30 CITY 91324PDX7 United Health Group Inc 4.15 1,000,000.00 914,211.92 914,211.92 TOTAL CORPORATE BONDS $11,656,000 $11,485,371 11,562,343.90$

STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
09-01-84 n/a CITY 98-19-620 0.78 54,629,095.75 54,629,095.75 54,629,095.75 9-19-2024 n/a PFA 40-19-078 36,500,000.00 36,500,000.00 39,744,157.84 9-28-2021 n/a ARPA 19-19-004 0.78 14,249,891.87 14,249,891.87 14,249,891.87 TOTAL LAIF ACCOUNTS 105,378,987.62$ 105,378,987.62$ 108,623,145.46$

CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM
6080-01 n/a CITY 6080-01 0.30 53,535,437.20 53,535,437.20 53,535,437.20 TOTAL CAMP ACCOUNTS 53,535,437.20$ 53,535,437.20$ 53,535,437.20$

UBS FINANCIAL SERVICES
n/a n/a CITY 0.00 187,874.34 187,874.34 187,874.34
TOTAL UBS FINANCIAL SERVICES ACCOUNTS 187,874.34$ 187,874.34$ 187,874.34$ TOTAL CITY INVESTMENTS 302,448,299.16$ 300,883,739.55$ 304,352,591.98$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
SEPTEMBER 30, 2025

PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT

STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
11-20-84 n/a LIBRARY 16-19-012 0.78 13,927.62
TOTAL LIBRARY INVESTMENTS 13,927.62$
SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 05-10-95 n/a BOND 95421220 0.35 121.80
05-10-95 n/a IMPROVEMENT 95421222 0.10 177,012.62
TOTAL SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1 177,134.42$

BOND PROCEEDS
RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-06-95 n/a RESERVE-SEN 95420880 n/a 14.05
04-06-95 n/a IMPV-ACQUI 95420884 0.01 2,946,382.88
04-06-95 n/a BOND 95420887 0.15 0.15
TOTAL RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1 2,946,397.08$

BOND PROCEEDS
ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-01-19 n/a SP TAX - B BOND 242969000 0.00 93.42
08-01-19 n/a RESERVE 242969003 0.00 722,950.98
08-01-19 n/a SP TAX - REFNDING BOND 242969004 0.01 15,151.79 TOTAL ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1 738,196.19$

BOND PROCEEDS
2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021 Fiscal Agent: U.S. Bank National Association (fka First Trust) n/a SPEC TRB SER A/B 251009000 0.01 14,594.89
n/a RESERVE FUND 251009001 0.01 641,125.92
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021655,720.81$

LIBRARY INVESTMENTS

FISCAL AGENT CASH

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
SEPTEMBER 30, 2025

PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT

BOND PROCEEDS
2006-1 GODDE HILL ESTATE SEWER IMPROVEMENTS LOIB
Fiscal Agent: U.S. Bank National Association (fka First Trust) 11-08-06 n/a REDEMPTION FUND 106844000 0.01 29,387.87
11-08-06 n/a ADM EXP 106844002 0.01 1,821.48
11-08-06 n/a RESERVE FUND 106844003 0.01 86,289.31
TOTAL 2006-1 GODDE HILL ESTATE SEWER IMPROVEMENTS LOIB 117,498.66$ 2015 HA DEBT SERVICE RESERVE
Fiscal Agent: Bank of America
11-19-15 n/a DEBT SVC RESERVE 1257964992 0.08 40,971.57 TOTAL 2015 HA DEBT SERVICE RESERVE 40,971.57$

PARS RESTRICTED CASH FOR PENSION STABILIZATION TRUST FUND 05-23-18 n/a CITY 104790895775 Public Agency Retirement Services2.60 12,045,602.31 TOTAL PARS PENSION TRUST FUND 12,045,602.31$

BOND PROCEEDS
2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 09-03-15 n/a BOND FUND 277067000 0.00 99,353.13
09-03-15 n/a INTEREST ACCT 277067001 0.01 6.95
09-03-15 n/a BOND RESERVE 277067003 0.00 281,019.72
09-03-15 n/a REPAIR & REPLACE FUND 277067004 0.00 1,413,230.93 TOTAL 2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS 1,793,610.73$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
SEPTEMBER 30, 2025

PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT

BOND PROCEEDS
2017 PFA $17.4M LEASE REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-05-17 n/a REVENUE FUND 271128000 0.00 1.17
04-05-17 n/a REVENUE REFUNDING BOND 271128001 n/a 0.05
$42,830 n/a REVENUE REFUNDING BOND 271128002 0.10
TOTAL 2017 PFA $17.4M LEASE REVENUE BONDS 1.32$

BOND PROCEEDS
2023 A&B SERIES ACQUISITION & CONSTRUCTION REVENUE BOND Fiscal Agent: U.S. Bank National Association (fka First Trust) 248041000 9.21
11-30-23 n/a INTEREST 248041001 505,004.62
11-30-23 n/a PRINCIPAL 248041002 0.51
11-30-23 n/a REVENUE FUND 248041004 13.54
11-30-23 n/a INTEREST 248041007 0.57
11-30-23 n/a REVENUE FUND 248041008 4,800,361.24
TOTAL 2023 A&B SERIES B ACQUISITION & CONSTRUCTION REV BOND 5,305,389.69$ GRAND TOTAL - FISCAL AGENT CASH 23,820,522.78$
Cash on Hand 11,936,662$
Pooled Cash Investments

City: 302,730,831$
Insur Fund: 1,621,761$ 304,352,592$ Library Investments 13,928$

Subtotal 316,303,182$

City/AD/CFD/PCA/PFA/HA
Fiscal Agent Cash 23,820,523$

Grand total 340,123,705$

The interest rate quoted on LAIF, AIM, and Fiscal Agent/Trustee accounts is the most current rate available.

LAIF & AIM interest Rates are as of September, 2025

SUMMARY OF CASH AND INVESTMENTS

Page 1 of 1 ends

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
SEPTEMBER 30, 2025

CITY OF PALMDALE

POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF), CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP), & UBS FINANCIAL SERVICES

TRANSACTION INTEREST

DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
LAIF - CITY ACCOUNT 98-19-620
Beginning Balance 54,629,095.75$
Subtotal -$ -$ -$ 54,629,095.75$ LAIF - PFA ACCOUNT 40-19-078
Beginning Balance 39,744,157.84$
Subtotal -$ -$ -$ 39,744,157.84$ LAIF - LIBRARY ACCOUNT 16-19-012
Beginning Balance 13,927.62$
Subtotal -$ -$ -$ 13,927.62$ LAIF - ARPA ACCOUNT 19-19-004
Beginning Balance 14,249,891.87$
Subtotal -$ -$ -$ 14,249,891.87$ CAMP
Beginning Balance 53,344,234.61$
09-30-25 191,202.59 $
Subtotal -$ -$ 191,202.59$ 53,535,437.20$ UBS Financial Services
Beginning Balance 368,347.77$
09-30-25 272,894.23 $
09-30-25 4,704,109.00$
09/30/25 (5,157,476.66)$
Subtotal -$ (5,157,476.66)$ 4,977,003.23$ 187,874.34$ Total -$ (5,157,476.66)$ 5,168,205.82$ 162,360,384.62$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
SEPTEMBER 30, 2025
TN= US Treasury C= Call
FP= Federal Paper M= Maturity
CD= Certificate of Deposit CB= Corporate Bond
FACE

PURCHASE MATURITY VALUE INTEREST NET INVESTED GAIN/

ISSUER DATE DATE REDEEMED RECEIVED FUNDS AMOUNT (LOSS)
-
3133EJYM5 Federal Farm Credit05-11-21 09-04-25 FP 1,000,000.00$ 15,100.00$ 1,015,100.00$ 997,370.00 2,630.00 3133EJYM5 Federal Farm Credit05-11-21 09-04-25 FP 2,000,000.00$ 30,200.00$ 2,030,200.00$ 1,994,740.00 5,260.00 46656MVH1 JPMorgan Chase Bank01-04-24 11-30-27 CD 240,000.00$ 3,024.66$ 243,024.66$ 240,544.80 (544.80) 3134GWUG9 Freddie Mac 12-20-21 09-24-25 FP 10,000,000.00$ 28,500.00$ 10,028,500.00$ 9,910,247.80 89,752.20 59541KCV7 Mid-Missouri Bank 06-11-24 09-11-25 CD 245,000.00$ 1,071.62$ 246,071.62$ 245,390.14 (390.14) 13,485,000.00$ 77,896.28$ 13,562,896.28$ 13,388,292.74$ 96,707.26$ Total Number of Transactions:

CITY OF PALMDALE

POOLED CASH - INVESTMENTS MATURED OR CALLED

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
SEPTEMBER 30, 2025
TN = US Treasury
FP = Federal Paper
CD = Certificate of Deposit
CN = Corporate Notes ACCRUED
PURCHASE MATURITY FACE PREMIUM / PURCHASE INTEREST NET Yield

ISSUER DATE DATE VALUE (DISCOUNT) PRICE PURCHASED PURCHASE 3133ETXV4 Federal Farm Credit Bond09-17-25FP 09-15-28 1,400,000.00$ (2,403.14) 1,402,403.14$ 2,234.12$ 1,404,637.26 4.09 - - 4.03
- - 4.15
- - 4.45
- - 4.53
- -
1,400,000.00$ (2,403.14)$ 1,402,403.14$ 2,234.12$ 1,404,637.26$ Total Number of Transactions:

POOLED CASH - INVESTMENTS PURCHASED

SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
September 30, 2025

PURCHASE MATURITY ACCOUNT/ INTEREST INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT TOTAL
LAIF - SA ACCOUNT 65-19-035
09-01-84 n/a SA Account 65-19-035 0.78 3,942,545.58
3,942,545.58$

FISCAL AGENT CASH

BOND PROCEEDS
CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) Fiscal Agent: U.S. Bank National Association
08-20-02 n/a Reserve Fund 94460700 2.54 545,562.11
08-20-02 n/a Interest Acct 94460701 0.04 42,263.77
08-20-02 n/a Principal Acct 94460702 0.04 377.84

TOTAL CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) 588,203.72$

BOND PROCEEDS
2016 SA $31.5M Tax Allocation Refunding Bonds Series A
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-26-16 n/a Debt Service 245113000 0.00 11.61
04-26-16 n/a Interest Acc 245113001 N/A 0.00
TOTAL 2016 SA $31.5M Tax Allocation Refunding Bonds Series A 11.61$

GRAND TOTAL - FISCAL AGENT CASH

SUMMARY OF CASH AND INVESTMENTS
Cash on Hand 6,200,425$ 6,200,425.22$
$0
Pooled Cash Investments 3,942,546$ $0
6,200,425.22$
Successor Agency Fiscal Agent Cash -$ *

Grand total 10,142,971$

* The interest rate quoted on LAIF and Fiscal Agent/Trustee accounts is the most current rate available.

LAIF interestrates are as of September 30, 2025.

S:\Cash and Investment\Investment\Investment Reports\25-26\03 Sept 2025\[SEP 2025 Successor Investment Report.xls]Staff Report Notes

SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
September 30, 2025

POOLED CASH - STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF)

TRANSACTION INTEREST

DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
LAIF - SA ACCOUNT 65-19-035
Beginning Balance 3,942,545.58
Subtotal -$ -$ -$ 3,942,545.58$ City of Palmdale: Flagship Lite
Palmdale, CA
As of Date: 09/30/2025
Pricing as of: 09/30/2025
Date of Analysis: 10/08/2025

Portfolio Overview
Portfolio Attributes
Curr. Face
143,346
Mkt. Value
142,527
Book Value
143,346
Est. Gain/Loss
-819
Ave. Mkt. Price

99.43 Ave. Bk. Price
100.00
Eff. Dur.

1.36 Eff. Conv.
-0.23
OAS

16.4 Mkt YTP

3.93 Bk YTP

3.18 WAL

1.79 Line Items
62 City of Palmdale: Flagship Lite - Palmdale, CA

Page 2 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Duration / Convexity
Eff. Dur.

1.36 Eff. Conv.
-0.23
City of Palmdale: Flagship Lite - Palmdale, CA

Page 3 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Portfolio Sector Summary
Market
%
Book
Market
Est
Eff
Eff Dur
% Δ
in Price
Sector
Par Value
Value
Port
Price
Price
G/L
Conv
Bk Yld
Mkt Yld
+50
Base
-50
+50
Base
-50
Treasury Note
54,700
54,657

38.2%
100.00

99.92 -43

0.07 3.33

3.79 1.76

1.77 1.78
-0.9%
0 0.9%
Berm Call
36,000
35,399

25.1%
100.00

98.33 -601
-0.39

2.47 3.92

1.31 1.11

0.91 -0.6%
0 0.5%
Amer Call
22,400
22,277

15.6%
100.00

99.45 -123
-0.81

3.88 4.17

1.35 0.93

0.69 -0.6%
0 0.4%
Euro Call
9,000
9,046

6.3%
100.00
100.51
46 -0.63

4.27 3.92

1.80 1.48

1.29 -0.8%
0 0.7%
Agency Bullet
7,150
7,112

5.0%
100.00

99.46 -38

0.00 0.67

3.99 0.17

0.17 0.17
-0.1%
0 0.1%
Finance
6,656
6,664

4.6%
100.00
100.12
8 0.02

3.84 4.17

1.96 1.95

1.93 -1.0%
0 1.0%
Industrial
3,500
3,487

2.4%
100.00

99.64 -13
-0.02

3.85 4.15

0.65 0.64

0.63 -0.3%
0 0.3%
NCD
2,440
2,467

1.7%
100.00
101.11
27 0.02

4.92 3.78

1.05 1.05

1.05 -0.5%
0 0.5%
Services
1,000
906

0.7%
100.00

90.55 -95

0.23 2.00

4.27 4.28

4.31 4.33
-2.1%
0 2.2%
Utility
500
512

0.3%
100.00
102.44
12 0.07

4.95 4.04

2.59 2.60

2.60 -1.3%
0 1.3%
Portfolio Totals
143,346
142,527
100.0%
100.00

99.43 -819
-0.23

3.18 3.93

1.50 1.36

1.27 -0.7%
0 0.7%
City of Palmdale: Flagship Lite - Palmdale, CA

Page 4 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Agency/Sovereign - Summary
Book
Market
G/L $
G/L %
WAL
% Px
Δ
Dur
Cvx
Sector
Par
Maturity
Price
Price
Base
Base
Base
-50
Base
Base
Subsector
%
Value
Cpn
Next Call
Value
Yield
Value
Yield
+ 100
+ 100
+ 100
+100
AFS %

1.9 yrs
100.00

99.92 -43
-0.1%

1.92 0.9

1.77 0.07
Treasury (13)

42.3%
54,700

3.33 54,700

3.33 54,657

3.79 -1,000
-1.8%

1.92 -1.8

99.9%

0.2 yrs
100.00

99.46 -38
-0.5%

0.17 0.1

0.17 0.00
Agency Bullet (3)

5.5%
7,150

0.67 7,150

0.67 7,112

3.99 -50
-0.7%

0.17 -0.2

99.5%

2.5 yrs
100.00

98.99 -678
-1.0%

1.89 0.5

1.10 -0.56
Callable Agency (18)

52.1%
67,400

3.18 0.4 yrs
67,400

3.18 66,722

4.00 -1,603
-2.4%

2.50 -1.4

99.0%

2.1 yrs
100.00

99.41 -759
-0.6%

1.80 0.6

1.33 -0.26
Total (34)
100.0%
129,250

3.10 0.4 yrs
129,250

3.10 128,491

3.91 -2,654
-2.1%

2.12 -1.5

99.4%
City of Palmdale: Flagship Lite - Palmdale, CA

Page 5 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Corporate - Summary
Rating
Book
Market
G/L $
G/L %
WAL
% Px
Δ
Dur
Cvx
Sector
Par
Moody's
Price
Price
Base
Base
Base
-50
Base
Base
Subsector
%
Value
Cpn
Maturity
S&P
Value
Yield
Value
Yield
+ 100
+ 100
+ 100
+100
AFS %
A1
100.00
100.12
8 0.1%

1.93 1.0

1.95 0.02
Finance (12)

57.1%
6,656

3.84 2.2 yrs
A
6,656

3.84 6,664

4.17 -122
-1.8%

1.93 -2.0
100.1%
Aa2
100.00

99.64 -13
-0.4%

0.67 0.3

0.64 -0.02
Industrial (4)

30.0%
3,500

3.86 0.7 yrs
AA-
3,500

3.85 3,487

4.15 -35
-1.0%

0.67 -0.6

99.6%
A2
100.00

90.55 -95
-9.5%

4.63 2.2

4.31 0.23
Services (1)

8.6%
1,000

2.00 4.6 yrs
A+
1,000

2.00 906

4.27 -133
-13.3%

4.63 -4.2

90.6%
A1
100.00
102.44
12 2.4%

2.87 1.3

2.60 0.07
Utility (1)

4.3%
500

4.95 2.9 yrs
A
500

4.95 512

4.04 -1
-0.2%

2.88 -2.6
102.4%
Aa3
100.00

99.25 -87
-0.7%

1.81 0.9

1.77 0.03
Total (18)
100.0%
11,656

3.74 2.0 yrs
A+
11,656

3.73 11,569

4.16 -291
-2.5%

1.81 -1.8

99.3%
City of Palmdale: Flagship Lite - Palmdale, CA

Page 6 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Peer Group Comparison
As of
Book
G/L
Book
Average Life
% Price Change
Effective
UST
Fix
Fix
Flt
Agy
Sm
Prv
%
Peer
Date
Value
%
Yield
Base
-50
+100
-50
+50
+100
Dur
Cvx
Agy
MBS
ARM
CMO
CMO
CMBS
Bus.

Label
Muni
Corp
CD
Other
Fixed
1 07/25
141,843

0.5 2.3

0.0 2.1

0.1 100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
2 08/25
135,056

0.1 3.95

1.9 2.2
-1.8

1.8 -0.1
78%
0%
0%
0%
0%
0%
0%
0%
8%
10%
3%
0%
100%
3 08/25
132,167
-0.1

3.91 1.1

1.3 -1.0

0.9 -0.1
19%
0%
0%
0%
0%
3%
0%
0%
33%
1%
4%
40%
100%
4 09/25
157,311

0.1 4.60

3.2 3.6
-2.3

2.2 -0.2
1%
8%
13%
9%
11%
13%
8%
0%
14%
22%
0%
0%
73%
5 06/25
160,168

1.9 3.0

0.0 2.7

0.1 69%
0%
0%
0%
0%
0%
3%
0%
0%
28%
0%
0%
97%
6 06/25
165,583
-8.2

4.8 9.1

0.0 4.1
-0.3
15%
67%
1%
0%
0%
8%
1%
0%
7%
0%
0%
0%
99%
7 08/25
168,133

0.7 4.32

2.4 2.6
-2.3

2.3 0.0
77%
0%
0%
0%
0%
0%
0%
0%
0%
1%
22%
0%
100%
8 09/25
174,992
-0.5

3.32 0.7

1.8 -1.1

0.9 -0.4
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
9 09/25
110,653
-0.1

3.76 2.2

2.7 -2.2

2.2 -0.1
58%
1%
0%
0%
0%
8%
0%
9%
0%
14%
10%
0%
99%
10 08/25
110,000

0.5 1.5

0.0 1.6
-0.4
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
11 07/25
108,614

3.6 2.1

0.0 2.0

0.0 71%
0%
0%
0%
0%
0%
0%
0%
11%
18%
0%
0%
100%
12 08/25
108,396

0.4 3.95

3.3 3.3
-2.9

3.0 0.1
19%
0%
0%
0%
0%
57%
0%
0%
5%
3%
16%
0%
100%
13 09/25
101,320

1.4 4.30

2.2 2.2
-2.0

2.0 0.0
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
14 07/25
188,341
-3.7

3.26 5.0

5.1 -4.2

4.3 0.2
40%
1%
0%
0%
0%
28%
0%
0%
21%
10%
0%
0%
100%
15 07/25
197,013

0.8 1.3

0.0 1.2

0.0 91%
0%
0%
0%
0%
0%
0%
0%
4%
5%
0%
0%
100%
16 08/25
207,004
-0.9

2.77 1.2

1.7 -1.2

1.1 -0.2
67%
0%
0%
0%
0%
0%
0%
0%
6%
19%
8%
0%
100%
17 09/25
77,402
-0.4

3.4 5.5

0.0 2.4
-0.8
20%
12%
16%
12%
0%
0%
4%
0%
36%
1%
0%
0%
84%
18 07/25
76,320
-1.9

2.98 2.2

2.4 -2.0

2.0 0.0
75%
0%
0%
0%
0%
0%
0%
0%
20%
0%
5%
0%
100%
19 08/25
74,749

0.2 1.2

0.0 1.1
-0.8
74%
26%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
20 09/25
70,309
-7.2

8.9 14.4

0.0 5.6
-0.8
1%
21%
0%
2%
10%
1%
9%
0%
54%
3%
0%
0%
82%
21 08/25
70,245
-19.1

11.8 23.7

0.0 8.8

0.6 36%
0%
0%
0%
0%
0%
0%
0%
41%
21%
1%
0%
98%
22 09/25
217,500
-0.2

1.7 0.2

0.0 1.6
-0.2
86%
0%
0%
0%
0%
0%
0%
0%
14%
0%
0%
0%
99%
23 09/25
65,339
-1.5

1.8 0.0

1.6 -0.2
23%
77%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
24 07/25
64,166
-0.8

2.78 1.8

1.8 -1.6

1.6 0.0
69%
0%
0%
0%
0%
0%
0%
0%
10%
17%
3%
0%
100%
25 09/25
62,172
-0.5

2.93 2.0

2.1 -1.9

1.9 0.0
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
100%
Avg
125,792
-1.4

3.60 2.9

4.8 -1.1

2.4 -0.1
60%
9%
1%
1%
1%
5%
1%
0%
11%
7%
3%
2%
97%
Port
09/25
143,346
-0.6

3.18 1.8

1.4 2.1

0.7 -0.7
-1.5

1.4 -0.2
90%
0%
0%
0%
0%
0%
0%
0%
0%
8%
2%
0%
99%
Diff
17,554

0.8 -0.42
-1.1
-2.7
-0.4
-1.1
-0.1
31%
-9%
-1%
-1%
-1%
-5%
-1%
0%
-11%
1%
-1%
-2%
2%
* Peer group includes Public Entitys that have received portfolio analysis from Stifel in the last three months with the closest portfolio book values.

City of Palmdale: Flagship Lite - Palmdale, CA

Page 7 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Monthly Cashflow Profile - Next 30 Months
City of Palmdale: Flagship Lite - Palmdale, CA

Page 8 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Monthly Cashflow Rate Shock - Next 30 Months
City of Palmdale: Flagship Lite - Palmdale, CA

Page 9 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Annual Cashflow Profile
City of Palmdale: Flagship Lite - Palmdale, CA

Page 10 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Annual Cashflow Rate Shock
City of Palmdale: Flagship Lite - Palmdale, CA

Page 11 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

5-Year Quarterly Principal Cash Flow Projections
5-Year Quarterly Principal Cash Flow Projections
Percentage of Total Cash Flow Projections
Period
+100
+50
+25
Base
-25
-50
+100
+50
+25
Base
-25
-50
4Q25

15.4 15.4

15.4 20.4
11%
11%
11%
11%
11%
14%
1Q26

15.2 15.2

25.2 22.7
21%
21%
21%
21%
28%
30%
2Q26

11.5 16.7

16.7 16.7

19.7 19.2
29%
33%
33%
33%
42%
43%
3Q26

0.5 8.5

8.5 8.5

8.5 8.5
30%
39%
39%
39%
48%
49%
4Q26

15.0 16.0

16.0 16.0

17.0 17.0
40%
50%
50%
50%
60%
61%
1Q27

10.0 10.0

10.0 14.0
47%
57%
57%
57%
67%
71%
2Q27

10.5 10.5

10.5 10.5
54%
64%
64%
64%
74%
78%
3Q27

3.5 6.5

6.5 6.5

6.5 6.5
57%
69%
69%
69%
79%
83%
4Q27

1.2 1.2

0.2 0.2
58%
70%
70%
70%
79%
83%
1Q28

1.2 1.2

3.2 1.2
59%
71%
71%
71%
81%
84%
2Q28

5.2 0.0

0.0 3.0

0.0 0.0
62%
71%
71%
73%
81%
84%
3Q28

11.9 3.9

3.9 3.9

1.9 1.9
71%
73%
73%
75%
82%
85%
4Q28

3.5 3.5

3.5 0.5

0.5 0.5
73%
76%
76%
76%
83%
86%
1Q29

0.0 0.0

0.0 0.0
73%
76%
76%
76%
83%
86%
2Q29

0.2 0.2

0.2 5.2

0.2 0.2
73%
76%
76%
79%
83%
86%
3Q29

13.5 10.5

10.5 10.5

10.5 6.5
83%
83%
83%
87%
90%
90%
4Q29

14.0 13.0

13.0 13.0

13.0 13.0
92%
92%
92%
96%
99%
99%
1Q30

10.0 10.0

10.0 5.0

0.0 0.0
99%
99%
99%
99%
99%
99%
2Q30

1.0 1.0

1.0 1.0
100%
100%
100%
100%
100%
100%
In Millions
12-Month Principal Cash Flow Projections
Percentage of Total Cash Flow Projections
Period
+100
+50
+25
Base
-25
-50
+100
+50
+25
Base
-25
-50
Oct 25

0.0 0.0

0.0 0.0
0%
0%
0%
0%
0%
0%
Nov 25

4.2 4.4

4.4 4.4

4.4 9.4
3%
3%
3%
3%
3%
3%
Dec 25

11.2 11.0

11.0 11.0

11.0 11.0
11%
11%
11%
11%
11%
11%
Jan 26

2.0 2.0

2.0 4.0
12%
12%
12%
12%
12%
12%
Feb 26

8.0 8.0

18.0 13.0
18%
18%
18%
18%
25%
25%
Mar 26

5.2 5.2

5.2 5.7
21%
21%
21%
21%
28%
28%
Apr 26

4.0 4.0

7.0 7.0
24%
24%
24%
24%
33%
33%
May 26

0.0 5.0

5.0 5.0

5.0 5.0
24%
28%
28%
28%
37%
37%
Jun 26

7.5 7.7

7.7 7.7

7.7 7.2
29%
33%
33%
33%
42%
42%
Jul 26

0.5 3.5

3.5 3.5

3.5 3.5
30%
35%
35%
35%
45%
45%
Aug 26

0.0 5.0

5.0 5.0

5.0 5.0
30%
39%
39%
39%
48%
48%
Sep 26

0.0 0.0

0.0 0.0
30%
39%
39%
39%
48%
48%
City of Palmdale: Flagship Lite - Palmdale, CA

Page 12 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Cash Flow and Rolloff Yield - Next 12 Months
Yield Rolloff
Month
Begin BY
Principal CF
Rolloff Yld
Ending BY
Oct 2025

3.18 0

3.18 Nov 2025

3.18 4,395

0.80 3.26
Dec 2025

3.26 11,000

2.14 3.36
Jan 2026

3.36 2,000

3.39 3.36
Feb 2026

3.36 8,000

3.45 3.35
Mar 2026

3.35 5,200

2.89 3.37
Apr 2026

3.37 4,000

1.05 3.46
May 2026

3.46 5,000

5.16 3.37
Jun 2026

3.37 7,710

4.25 3.30
Jul 2026

3.30 3,500

4.34 3.26
Aug 2026

3.26 5,000

4.10 3.22
Sep 2026

3.22 0

3.22 Shocked Principal and Interest Cash Flow Analysis
Year
Mod Up Stp
+100
+50
+25
-25
-50
Mod Dn Flt
Oct 2025
295
295
295
295
295
295
295
Nov 2025
4,654
4,409
4,654
4,654
4,654
9,710
9,710
Dec 2025
11,549
11,549
11,549
11,549
11,549
11,549
11,549
Jan 2026
2,263
2,263
2,263
2,263
2,263
4,263
4,263
Feb 2026
8,658
8,658
8,658
8,658
18,657
13,544
13,544
Mar 2026
5,459
5,459
5,459
5,459
5,459
5,964
5,459
Apr 2026
4,293
4,293
4,293
4,293
7,293
7,293
7,800
May 2026
5,246
246
5,246
5,246
5,246
5,246
5,246
Jun 2026
8,138
7,893
8,138
8,138
8,138
7,628
7,628
Jul 2026
3,728
728
3,728
3,728
3,728
3,688
3,688
Aug 2026
5,518
518
5,518
5,518
5,294
5,294
5,294
Sep 2026
183
183
183
183
183
183
183
City of Palmdale: Flagship Lite - Palmdale, CA

Page 13 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Sector Cash Flow - Next 12 Months
Oct 25
Nov 25
Dec 25
Jan 26
Feb 26
Mar 26
Apr 26
May 26
Jun 26
Jul 26
Aug 26
Sep 26
Bk Yld Chg
Treasury/Agency
Cash Flow
285
4,387
11,482
176
8,618
3,411
4,283
5,226
5,361
3,176
5,480
176
End BY

3.10 3.19

3.29 3.29

3.28 3.31

3.40 3.31

3.26 3.22

3.16 3.16

0.06 Corporate
Cash Flow
8 19
19 2,086
39 2,047
8 19
1,019
552
39 8
End BY

3.73 3.73

3.73 3.80

3.80 3.77

3.77 3.77

3.78 3.84

3.84 3.84

0.10 CD
Cash Flow
2 247
48 1
1 1
1 1
1,758
0 0
0 End BY

4.92 4.86

4.86 4.86

4.43 4.43

4.43 4.43
-0.49
Total
Cash Flow
295
4,654
11,549
2,263
8,658
5,459
4,293
5,246
8,138
3,728
5,518
183
End BY

3.18 3.26

3.36 3.36

3.35 3.37

3.46 3.37

3.30 3.26

3.22 3.22

0.03 City of Palmdale: Flagship Lite - Palmdale, CA

Page 14 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Cash Flow and Rolloff Yield - Next 3 Years
Yield Rolloff
Quarter
Begin BY
Principal CF
Rolloff Yld
Ending BY
4Q25

3.18 15,395

1.76 3.36
1Q26

3.36 15,200

3.25 3.37
2Q26

3.37 16,710

3.76 3.30
3Q26

3.30 8,500

4.20 3.22
4Q26

3.22 16,000

1.48 3.60
1Q27

3.60 10,000

1.45 3.95
2Q27

3.95 10,500

3.21 4.11
3Q27

4.11 6,500

4.31 4.08
4Q27

4.08 1,240

4.29 4.07
1Q28

4.07 1,156

3.93 4.07
2Q28

4.07 3,000

4.25 4.06
3Q28

4.06 3,900

4.06 4.06
Shocked Principal and Interest Cash Flow Analysis
Quarter
Mod Up Stp
+100
+50
+25
-25
-50
Mod Dn Flt
4Q25
16,498
16,253
16,498
16,498
16,498
21,555
21,555
1Q26
16,379
16,379
16,379
16,379
26,378
23,771
23,266
2Q26
17,677
12,432
17,677
17,677
20,677
20,166
20,673
3Q26
9,429
1,429
9,429
9,429
9,205
9,165
9,165
4Q26
16,660
15,660
16,660
16,660
17,596
17,596
17,596
1Q27
10,750
10,750
10,750
10,750
10,525
14,485
10,485
2Q27
11,037
11,037
11,037
11,037
10,952
10,952
10,952
3Q27
7,178
4,178
7,178
7,178
6,954
6,834
6,914
4Q27
1,612
1,612
1,612
1,612
527
527
527
1Q28
1,694
1,694
1,694
1,694
3,469
1,349
5,429
2Q28
343
343
343
343
279
279
279
3Q28
4,415
4,415
4,415
4,415
2,148
2,068
2,068
City of Palmdale: Flagship Lite - Palmdale, CA

Page 15 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Sector Cash Flow - Next 3 Years
4Q25
1Q26
2Q26
3Q26
4Q26
1Q27
2Q27
3Q27
4Q27
1Q28
2Q28
3Q28
Bk Yld Chg
Treasury/Agency
Cash Flow
16,154
12,204
14,870
8,831
16,622
10,659
10,499
6,088
1,342
468
3,318
3,868
End BY

3.29 3.31

3.26 3.16

3.58 3.96

4.13 4.10

4.10 4.10

4.09 4.10

0.81 Corporate
Cash Flow
46 4,172
1,046
598
28 91
528
1,091
19 1,225
19 547
End BY

3.73 3.77

3.78 3.84

3.84 3.84

3.88 3.81

3.81 3.77

3.77 3.58
-0.16
CD
Cash Flow
298
3 1,760
0 11
0 11
0 251
0 6
0 End BY

4.86 4.86

4.43 4.43

4.65 4.65

4.65 4.65
-0.21
Total
Cash Flow
16,498
16,379
17,677
9,429
16,660
10,750
11,037
7,178
1,612
1,694
3,343
4,415
End BY

3.36 3.37

3.30 3.22

3.60 3.95

4.11 4.08

4.07 4.07

4.06 4.06

0.71 City of Palmdale: Flagship Lite - Palmdale, CA

Page 16 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Cash Flow and Rolloff Yield - Next 10 Years
Yield Rolloff
Year
Begin BY
Principal CF
Rolloff Yld
Ending BY
2025

3.18 15,395

1.76 3.36
2026

3.36 56,410

3.04 3.60
2027

3.60 28,240

2.89 4.07
2028

4.07 8,556

4.09 4.07
2029

4.07 28,745

4.07 4.04
2030

4.04 6,000

4.04 2031
2032
2033
2034
Shocked Principal and Interest Cash Flow Analysis
Year
Mod Up Stp
+100
+50
+25
-25
-50
Mod Dn Flt
2025
16,498
16,499
16,498
16,498
16,498
21,555
21,555
2026
60,145
46,036
60,145
60,145
73,856
70,698
70,700
2027
30,577
28,234
30,577
30,577
28,957
32,797
28,877
2028
10,296
24,198
10,296
10,296
6,678
4,478
8,558
2029
25,152
29,332
25,152
25,152
24,703
20,543
20,543
2030
11,235
11,235
11,235
11,235
1,010
1,010
1,010
City of Palmdale: Flagship Lite - Palmdale, CA

Page 17 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Sector Cash Flow - Next 10 Years
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Bk Yld Chg
Treasury/Agency
Cash Flow
16,154
52,527
28,588
7,910
28,236
5,111
End BY

3.29 3.58

4.10 4.10

4.45 Corporate
Cash Flow
46 5,844
1,728
2,311
1,589
1,010
End BY

3.73 3.84

3.81 3.55

2.00 CD
Cash Flow
298
1,774
261
11 251
End BY

4.86 4.43

4.65 4.65
Total
Cash Flow
16,498
60,145
30,577
10,233
30,076
6,121
End BY

3.36 3.60

4.07 4.07

4.04 City of Palmdale: Flagship Lite - Palmdale, CA

Page 18 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

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

0.25 140
-1,610

2.06 0.50
279
-1,470

2.16 0.75
419
-1,331

2.26 1.00
558
-1,191

2.35 1.25
698
-1,052

2.45 1.50
837
-912

2.55 1.75
977
-773

2.65 2.00
1,116
-633

2.74 2.25
1,256
-493

2.84 2.50
1,395
-354

2.94 2.75
1,535
-214

3.03 3.00
1,674
-75

3.13 3.25
1,814
65 3.23

3.50 1,953
204

3.33 3.75
2,093
344

3.42 4.00
2,232
483

3.52 4.25
2,372
623

3.62 4.50
2,511
762

3.72 4.75
2,651
902

3.81 5.00
2,790
1,041

3.91 5.25
2,930
1,181

4.01 5.50
3,069
1,320

4.11 5.75
3,209
1,460

4.20 6.00
3,348
1,599

4.30 6.25
3,488
1,739

4.40 6.50
3,627
1,878

4.49 6.75
3,767
2,018

4.59 7.00
3,906
2,157

4.69 7.25
4,046
2,297

4.79 7.50
4,185
2,436

4.88 7.75
4,325
2,576

4.98 8.00
4,464
2,715

5.08 Principal Maturing(12 Mo.Horizon): $55,805
Current Book Yield of Principal Maturing: 3.13%
Est. Annual Income at Current Book Yield: $1,749
City of Palmdale: Flagship Lite - Palmdale, CA

Page 19 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Effective Duration - Instantaneous Rate Shock
City of Palmdale: Flagship Lite - Palmdale, CA

Page 20 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

% Px Chng - Instantaneous Rate Shock
City of Palmdale: Flagship Lite - Palmdale, CA

Page 21 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Total Returns - 12mo Horizon
City of Palmdale: Flagship Lite - Palmdale, CA

Page 22 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Book Yield / Duration
*Only securities >=$1mm shown
City of Palmdale: Flagship Lite - Palmdale, CA

Page 23 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Market Yield / Duration
*Only securities >=$1mm shown
City of Palmdale: Flagship Lite - Palmdale, CA

Page 24 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Total Return / Duration
*Only securities >=$1mm shown
City of Palmdale: Flagship Lite - Palmdale, CA

Page 25 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

OAS / Duration
*Only securities >=$1mm shown
City of Palmdale: Flagship Lite - Palmdale, CA

Page 26 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Agency/Sovereign Option - Adjusted Analysis
Bond
Security
Original
Current
Next
Proj.

Par
Book
Mkt
Est.
at Book Price
at Market
Price
Eff
Eff
ID #
CUSIP
Description
Structure
Structure
Call Date
Redemp
Value
Price
Price
G/L
YTPC
YTM
YTPC
YTM
OAS
Dur
Conv
1 3135G06G3
FNMA 0 1/2 11/07/25
5Yr Bullet
Bullet
11/07/25
3,000
100.00

99.65 -11

0.50 0.50

3.94 3.94
-28.5

0.11 0.00
2 3134GXBM5
FHLMC 0.6 11/12/25
5YrNC1Yr Berm
Bullet
11/12/25
1,150
100.00

99.61 -4

0.60 0.60

3.98 3.98
-21.9

0.12 0.00
4 3130AMRQ7
FHLB 0 7/8 12/30/25

4.5YrNC3mo Berm

0.25Yr Bullet
12/30/25
3,000
100.00

99.22 -23

0.87 0.87

4.04 4.04
-0.2

0.25 0.00
5 9128285T3
T 2 5/8 12/31/25
7Yr Bullet

0.25Yr Bullet
12/31/25
3,000
100.00

99.66 -10

2.62 2.62

3.99 3.99
-8.7

0.25 0.00
6 9128285T3
T 2 5/8 12/31/25
7Yr Bullet

0.25Yr Bullet
12/31/25
5,000
100.00

99.66 -17

2.62 2.62

3.99 3.99
-8.7

0.25 0.00
10 91282CGL9
T 4 02/15/26
3Yr Bullet

0.25Yr Bullet
02/15/26
5,000
100.00
100.02
1 4.02

4.02 3.97

3.97 -2.2

0.38 0.00
12 9128286F2
T 2 1/2 02/28/26
7Yr Bullet

0.5Yr Bullet
02/28/26
3,000
100.00

99.42 -17

2.49 2.49

3.91 3.91

0.7 0.41

0.00 14
9128286L9
T 2 1/4 03/31/26
7Yr Bullet

0.5Yr Bullet
03/31/26
3,200
100.00

99.21 -25

2.24 2.24

3.85 3.85
-2.5

0.50 0.00
16 3130AN5C0
FHLB 1.05 04/29/26

4.75YrNC3mo Berm

0.5YrNC1mo Berm
10/29/25
04/29/26
4,000
100.00

98.38 -65

1.05 1.05

3.90 3.90

6.4 0.57

0.01 17
3133ERCX7
FFCB 5.17 05/01/28
4YrNC2Yr Amer

2.5YrNC7mo Amer
05/01/26
05/01/26
5,000
100.00
100.73
37 5.16

5.17 3.89

4.86 5.5

0.58 -0.06
22 91282CHH7
T 4 1/8 06/15/26
3Yr Bullet

0.75Yr Bullet
06/15/26
5,000
100.00
100.22
11 4.11

4.11 3.79

3.79 0.7

0.69 0.01
24 3133ETUM7
FFCB 4.53 02/25/30

4.5YrNC3mo Amer

4.5YrNC2mo Amer
11/25/25
04/24/29
5,000
100.00

99.92 -4

4.53 4.53

4.55 4.55

22.8 0.70
-1.92
29 3130B4QA2
FHLB 4.55 07/21/28

3.5YrNC1.5Yr

2.75YrNC9mo
07/21/26
07/21/26
3,000
100.00
100.55
17 4.54

4.55 3.85

4.34 7.4

0.87 -0.15
30 3134HBWS6
FHLMC 4 07/07/28
3YrNC6mo Berm

2.75YrNC3mo Berm
01/07/26
07/07/28
2,000
100.00

99.72 -6

4.00 4.00

4.11 4.11

15.6 0.90
-1.18
31 3130B62E5
FHLB 4 1/4 10/30/28

3.5YrNC1Yr Berm
3YrNC7mo Berm
04/30/26
04/30/28
3,000
100.00
100.02
1 4.25

4.25 4.24

4.24 13.3

0.93 -0.68
32 3133ETUN5
FFCB 4.45 02/25/30

4.5YrNC6mo Amer

4.5YrNC5mo Amer
02/25/26
02/25/30
5,000
100.00

99.91 -5

4.45 4.45

4.47 4.47

22.3 1.00
-1.43
33 3134GW4C7
FHLMC 0.8 10/27/26
6YrNC3mo Berm
1YrNC1mo Berm
10/27/25
10/27/26
5,000
100.00

96.83 -159

0.80 0.80

3.84 3.84

20.8 1.04

0.02 34
3136GAGW3
FNMA 4.1 08/10/28

3.25YrNC1.3Yr 1x

2.75YrNC10mo 1x
08/10/26
08/10/26
5,000
100.00
100.12
6 4.10

4.10 3.95

4.05 11.4

1.11 -0.73
35 3130ARHJ3
FHLB 3.175 04/19/27
5YrNC1mo

1.5YrNC1mo
10/19/25
04/19/27
5,000
100.00

99.09 -46

3.17 3.17

3.78 3.78

18.4 1.15
-0.52
36 3133ENJC5
FFCB 1.29 12/22/26
5YrNC2Yr Amer

1.25YrNC1mo Amer
10/16/25
12/22/26
5,000
100.00

97.00 -150

1.29 1.29

3.81 3.81

23.9 1.19

0.02 37
912828YX2
T 1 3/4 12/31/26
7Yr Bullet

1.25Yr Bullet
12/31/26
5,000
100.00

97.63 -119

1.75 1.75

3.71 3.71

13.6 1.21

0.03 38
3133ERE23
FFCB 4.32 12/02/27
3YrNC2Yr Amer

2.25YrNC1.2Yr Amer
12/02/26
12/02/27
1,000
100.00
100.57
6 4.32

4.32 4.04

4.04 16.2

1.25 -0.19
40 3130AQRH8
FHLB 2 02/25/27
5YrNC3mo Berm

1.5YrNC2mo Berm
11/25/25
02/25/27
5,000
100.00

97.57 -122

2.00 2.00

3.79 3.79

26.0 1.35
-0.01
41 3130AL5A8
FHLB 0.9 02/26/27
6YrNC3mo Berm

1.5YrNC2mo Berm
11/26/25
02/26/27
5,000
100.00

96.05 -198

0.90 0.90

3.81 3.81

28.3 1.37

0.03 42
3130B3XP3
FHLB 4 1/2 12/04/29
5YrNC2Yr 1x

4.25YrNC1.2Yr 1x
12/04/26
12/04/26
1,000
100.00
100.70
7 4.49

4.50 3.88

4.31 16.7

1.44 -0.33
43 3134HADY6
FHLMC 4 08/14/29
5YrNC6mo Berm

3.75YrNC1mo Berm
11/14/25
08/14/29
4,000
100.00

99.38 -25

4.00 4.00

4.17 4.17

26.8 1.50
-1.67
44 3133ETXV4
FFCB 3.83 09/15/28
3YrNC1Yr Amer
3YrNC11mo Amer
09/15/26
09/15/28
1,400
100.00

99.52 -7

3.83 3.83

4.00 4.00

23.5 1.59
-0.71
46 91282CEW7
T 3 1/4 06/30/27
5Yr Bullet

1.75Yr Bullet
06/30/27
5,000
100.00

99.35 -33

3.24 3.24

3.63 3.63

17.8 1.67

0.04 48
91282CFM8
T 4 1/8 09/30/27
5Yr Bullet
2Yr Bullet
09/30/27
2,500
100.00
100.96
24 4.12

4.12 3.62

3.62 19.7

1.90 0.06
49 3130B4RC7
FHLB 4 1/2 07/27/29

4.5YrNC2.5Yr 1x

3.75YrNC1.8Yr 1x
07/27/27
07/27/27
3,000
100.00
101.10
33 4.50

4.50 3.87

4.18 29.7

2.10 -0.57
57 91282CFL0
T 3 7/8 09/30/29
7Yr Bullet
4Yr Bullet
09/30/29
5,000
100.00
100.69
35 3.87

3.87 3.69

3.69 30.7

3.68 0.18
58 91282CFT3
T 4 10/31/29
7Yr Bullet
4Yr Bullet
10/31/29
5,000
100.00
101.13
57 4.00

4.00 3.70

3.70 31.4

3.68 0.18
59 91282CFY2
T 3 7/8 11/30/29
7Yr Bullet

4.25Yr Bullet
11/30/29
5,000
100.00
100.64
32 3.87

3.87 3.71

3.71 32.0

3.77 0.19
60 91282CGB1
T 3 7/8 12/31/29
7Yr Bullet

4.25Yr Bullet
12/31/29
3,000
100.00
100.63
19 3.88

3.88 3.71

3.71 32.3

3.85 0.19
129,250
100.00

99.41 -759

3.10 3.10

3.91 3.97

14.4 1.33
-0.26
City of Palmdale: Flagship Lite - Palmdale, CA

Page 27 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Corporate Bond Option - Adjusted Analysis
Bond
Security
Maturity
Opt
Cpn
Industry
Par
Book
Mkt
Book
Market
Eff
Eff
ID #
CUSIP
Description
Ticker
Cpn
Date
Call
Type
Sector
Mdy
S&P
Value
Price
Price
Yield
Yield
WAL
OAS
Dur
Conv
7 742718FY0
PG 4.1 01/26/26
PG

4.10 01/26/26
N
Fixed
Industrial
Aa3
AA-
1,000
100.00

99.94 4.09

4.27 0.32

25.5 0.32

0.00 8
780082AD5
RY 4.65 01/27/26
RY

4.65 01/27/26
N
Fixed
Finance
A3
A-
500
100.00
100.02

4.63 4.57

0.33 54.1

0.33 0.00
9 06406RAQ0
BK 0 3/4 01/28/26
BK

0.75 01/28/26
Y
Fixed
Finance
Aa3
A
500
100.00

98.88 0.75

4.22 0.33

21.1 0.33

0.00 11
30231GAT9
XOM 3.043 03/01/26
XOM

3.04 03/01/26
Y
Fixed
Industrial
Aa2
AA-
1,000
100.00

99.59 3.04

4.03 0.42

11.5 0.40
-0.07
13 194162AQ6
CL 4.8 03/02/26
CL

4.80 03/02/26
N
Fixed
Industrial
Aa3
A+
1,000
100.00
100.25

4.79 4.19

0.42 27.6

0.42 0.00
15 11271LAA0
BNCN 4 1/4 06/02/26
BNCN

4.25 06/02/26
Y
Fixed
Finance
A3
A-
500
100.00

99.96 4.24

4.30 0.67

35.3 0.50
-0.13
18 46625HRS1
JPM 3.2 06/15/26
JPM

3.20 06/15/26
Y
Fixed
Finance
A1
A
500
100.00

99.34 3.20

4.15 0.71

34.6 0.67
-0.07
28 61761J3R8
MS 3 1/8 07/27/26
MS

3.13 07/27/26
N
Fixed
Finance
A1
A-
500
100.00

99.20 3.12

4.12 0.83

37.9 0.80

0.01 39
808513BW4
SCHW 3.3 04/01/27
SCHW

3.30 04/01/27
Y
Fixed
Finance
A2
A-
500
100.00

98.96 3.30

4.02 1.50

47.8 1.34
-0.06
45 75973QAA5
RNR 3.45 07/01/27
RNR

3.45 07/01/27
Y
Fixed
Finance
A3
A-
500
100.00

98.62 3.45

4.27 1.75

77.7 1.60
-0.01
47 22550L2K6
UBS 5 07/09/27
UBS

5.00 07/09/27
N
Fixed
Finance
Aa2
A+
500
100.00
101.73

5.00 3.98

1.78 51.6

1.67 0.04
51 718172CE7
PM 3 1/8 03/02/28
PM

3.13 03/02/28
Y
Fixed
Industrial
A2
A-
500
100.00

97.93 3.12

4.03 2.42

60.0 2.24

0.01 52
797440CE2
SRE 4.95 08/15/28
SRE

4.95 08/15/28
Y
Fixed
Utility
A1
A
500
100.00
102.44

4.95 4.04

2.87 61.5

2.60 0.07
53 05565QDH8
BPLN 3.723 11/28/28
BPLN

3.72 11/28/28
Y
Fixed
Finance
A1
A-
500
100.00

98.90 3.72

4.10 3.16

67.4 2.83

0.02 54
06406RBN6
BK 4.543 02/01/29
BK

4.54 02/01/29
Y
Variable
Finance
Aa3
A
656
100.00
101.10

4.54 4.04

2.34 -11.1

2.99 0.00
56 89236TMK8
TOYOTA 4.55 08/09/29
TOYOTA

4.55 08/09/29
N
Fixed
Finance
A1
A+
500
100.00
101.53

4.55 4.12

3.86 72.1

3.50 0.16
61 06406RBK2
BK 4.596 07/26/30
BK

4.60 07/26/30
Y
Variable
Finance
Aa3
A
1,000
100.00
101.50

4.59 4.17

3.82 32.0

4.16 0.12
62 91324PDX7
UNH 2 05/15/30
UNH

2.00 05/15/30
N
Fixed
Services
A2
A+
1,000
100.00

90.55 2.00

4.27 4.63

86.1 4.31

0.23 3.74
11,656
100.00

99.25 3.73

4.16 1.81

41.3 1.77

0.03 City of Palmdale: Flagship Lite - Palmdale, CA

Page 28 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

CD Option - Adjusted Analysis
Bond
Security
Maturity
Opt
Cpn
Industry
Par
Book
Mkt
Book
Market
Eff
Eff
ID #
CUSIP
Description
Ticker
Cpn
Date
Call
Type
Sector
Value
Price
Price
Yield
Yield
WAL
OAS
Dur
Conv
3 229083AA8
EVANBT 5.35 06/18/29
EVANBT

5.35 06/18/29
Y
Fixed
NCD
245
100.00
100.18

5.45 4.06

0.13 -11.1

0.13 0.00
19 38150VUZ0
GS 5.05 06/11/26
GS

5.05 06/11/26
N
Fixed
NCD
245
100.00
100.85

5.03 3.79

0.70 -0.5

0.68 0.01
20 34520LBC6
FORBBK 5.05 06/15/26
FORBBK

5.05 06/15/26
N
Fixed
NCD
245
100.00
100.87

5.03 3.78

0.71 -1.0

0.69 0.01
21 05580A4Y7
BMW 4.65 06/15/26
BMW

4.65 06/15/26
N
Fixed
NCD
240
100.00
100.49

4.63 3.92

0.71 13.5

0.69 0.01
23 8562855V9
SBIIN 5.1 06/17/26
SBIIN

5.10 06/17/26
N
Fixed
NCD
245
100.00
100.91

5.08 3.78

0.71 -0.6

0.69 0.01
25 06051XER9
BAC 5.05 06/22/26
BAC

5.05 06/22/26
N
Fixed
NCD
245
100.00
100.89

5.03 3.78

0.73 0.3

0.70 0.01
26 35634MAE1
FREBNJ 5.05 06/22/26
FREBNJ

5.05 06/22/26
N
Fixed
NCD
245
100.00
100.89

5.03 3.78

0.73 0.2

0.70 0.01
27 307811KA6
FMBKWI 5 06/14/28
FMBKWI

5.00 06/14/28
Y
Fixed
NCD
245
100.00
100.82

5.04 3.84

0.71 4.5

0.71 -0.08
50 09582YAV4
RICBVA 4.2 12/28/27
RICBVA

4.20 12/28/27
N
Fixed
NCD
240
100.00
101.36

4.20 3.56

2.24 15.4

2.10 0.07
55 89235MPP0
TOYFBN 4.65 06/13/29
TOYFBN

4.65 06/13/29
N
Fixed
NCD
245
100.00
103.88

4.65 3.52

3.70 14.8

3.34 0.15

4.92 2,440
100.00
101.11

4.92 3.78

1.11 3.5

1.05 0.02
City of Palmdale: Flagship Lite - Palmdale, CA

Page 29 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Book Yield Table - Instantaneous Rate Shock
Projected Call Date - Instantaneous Rate Shock
Book Yield Table - Instantaneous Rate Shock
Bond
Security
Original
Par
Book
ID #
CUSIP
Description
Structure
Value
Price
+100
+50
+25
Base
-25
-50
+100
+50
+25
Base
-25
-50
1 3135G06G3
FNMA 0 1/2 11/07/25
5Yr Bullet
3,000
100.00
11/7/25
11/7/25
11/7/25
11/7/25
11/7/25
11/7/25

0.50 0.50

0.50 0.50
2 3134GXBM5
FHLMC 0.6 11/12/25
5YrNC1Yr Berm
1,150
100.00
11/12/25
11/12/25
11/12/25
11/12/25
11/12/25
11/12/25

0.60 0.60

0.60 0.60
3 229083AA8
EVANBT 5.35
06/18/29
5YrNC6mo
245
100.00
12/18/25
11/18/25
11/18/25
11/18/25
11/18/25
11/18/25

5.40 5.45

5.45 5.45

5.45 5.45
4 3130AMRQ7
FHLB 0 7/8 12/30/25

4.5YrNC3mo Berm
3,000
100.00
12/30/25
12/30/25
12/30/25
12/30/25
12/30/25
12/30/25

0.87 0.87

0.87 0.87
5 9128285T3
T 2 5/8 12/31/25
7Yr Bullet
3,000
100.00
12/31/25
12/31/25
12/31/25
12/31/25
12/31/25
12/31/25

2.62 2.62

2.62 2.62
6 9128285T3
T 2 5/8 12/31/25
7Yr Bullet
5,000
100.00
12/31/25
12/31/25
12/31/25
12/31/25
12/31/25
12/31/25

2.62 2.62

2.62 2.62
7 742718FY0
PG 4.1 01/26/26
3YrNC1mo
1,000
100.00
1/26/26
1/26/26
1/26/26
1/26/26
1/26/26
1/26/26

4.09 4.09

4.09 4.09
8 780082AD5
RY 4.65 01/27/26
10Yr Bullet
500
100.00
1/27/26
1/27/26
1/27/26
1/27/26
1/27/26
1/27/26

4.63 4.63

4.63 4.63
9 06406RAQ0
BK 0 3/4 01/28/26
5YrNC4.9Yr Amer
500
100.00
1/28/26
1/28/26
1/28/26
1/28/26
1/28/26
1/28/26

0.75 0.75

0.75 0.75
10 91282CGL9
T 4 02/15/26
3Yr Bullet
5,000
100.00
2/15/26
2/15/26
2/15/26
2/15/26
2/15/26
2/15/26

4.02 4.02

4.02 4.02
11 30231GAT9
XOM 3.043 03/01/26
10YrNC9.8Yr Amer
1,000
100.00
3/1/26
3/1/26
3/1/26
3/1/26
3/1/26
3/1/26

3.04 3.04

3.04 3.04
12 9128286F2
T 2 1/2 02/28/26
7Yr Bullet
3,000
100.00
2/28/26
2/28/26
2/28/26
2/28/26
2/28/26
2/28/26

2.49 2.49

2.49 2.49
13 194162AQ6
CL 4.8 03/02/26
3YrNC1mo
1,000
100.00
3/2/26
3/2/26
3/2/26
3/2/26
3/2/26
3/2/26

4.79 4.79

4.79 4.79
14 9128286L9
T 2 1/4 03/31/26
7Yr Bullet
3,200
100.00
3/31/26
3/31/26
3/31/26
3/31/26
3/31/26
3/31/26

2.24 2.24

2.24 2.24
15 11271LAA0
BNCN 4 1/4 06/02/26
10YrNC9.8Yr Amer
500
100.00
6/2/26
6/2/26
6/2/26
6/2/26
6/2/26
3/2/26

4.24 4.24

4.24 4.25
16 3130AN5C0
FHLB 1.05 04/29/26

4.75YrNC3mo Berm
4,000
100.00
4/29/26
4/29/26
4/29/26
4/29/26
4/29/26
4/29/26

1.05 1.05

1.05 1.05
17 3133ERCX7
FFCB 5.17 05/01/28
4YrNC2Yr Amer
5,000
100.00
5/1/28
5/1/26
5/1/26
5/1/26
5/1/26
5/1/26

5.17 5.16

5.16 5.16

5.16 5.16
18 46625HRS1
JPM 3.2 06/15/26
10YrNC9.8Yr Amer
500
100.00
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26

3.20 3.20

3.20 3.20
19 38150VUZ0
GS 5.05 06/11/26
2Yr Bullet
245
100.00
6/11/26
6/11/26
6/11/26
6/11/26
6/11/26
6/11/26

5.03 5.03

5.03 5.03
20 34520LBC6
FORBBK 5.05
06/15/26
2Yr Bullet
245
100.00
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26

5.03 5.03

5.03 5.03
21 05580A4Y7
BMW 4.65 06/15/26

2.5Yr Bullet
240
100.00
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26

4.63 4.63

4.63 4.63
22 91282CHH7
T 4 1/8 06/15/26
3Yr Bullet
5,000
100.00
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26

4.11 4.11

4.11 4.11
23 8562855V9
SBIIN 5.1 06/17/26
2Yr Bullet
245
100.00
6/17/26
6/17/26
6/17/26
6/17/26
6/17/26
6/17/26

5.08 5.08

5.08 5.08
24 3133ETUM7
FFCB 4.53 02/25/30

4.5YrNC3mo Amer
5,000
100.00
2/25/30
2/25/30
2/25/30
4/24/29
2/24/26
11/25/25

4.53 4.53

4.52 4.55
25 06051XER9
BAC 5.05 06/22/26
2Yr Bullet
245
100.00
6/22/26
6/22/26
6/22/26
6/22/26
6/22/26
6/22/26

5.03 5.03

5.03 5.03
26 35634MAE1
FREBNJ 5.05
06/22/26
2Yr Bullet
245
100.00
6/22/26
6/22/26
6/22/26
6/22/26
6/22/26
6/22/26

5.03 5.03

5.03 5.03
27 307811KA6
FMBKWI 5 06/14/28
4YrNC2Yr
245
100.00
6/14/28
6/14/26
6/14/26
6/14/26
6/14/26
6/14/26

5.05 5.04

5.04 5.04

5.04 5.04
28 61761J3R8
MS 3 1/8 07/27/26
10YrNC6mo
500
100.00
7/27/26
7/27/26
7/27/26
7/27/26
7/27/26
7/27/26

3.12 3.12

3.12 3.12
29 3130B4QA2
FHLB 4.55 07/21/28

3.5YrNC1.5Yr
3,000
100.00
7/21/28
7/21/26
7/21/26
7/21/26
7/21/26
7/21/26

4.55 4.54

4.54 4.54

4.54 4.54
30 3134HBWS6
FHLMC 4 07/07/28
3YrNC6mo Berm
2,000
100.00
7/7/28
7/7/28
7/7/28
7/7/28
1/7/28
1/7/26

4.00 4.00

4.00 3.98
31 3130B62E5
FHLB 4 1/4 10/30/28

3.5YrNC1Yr Berm
3,000
100.00
10/30/28
10/30/28
10/30/28
4/30/28
4/30/26
4/30/26

4.25 4.25

4.24 4.24
32 3133ETUN5
FFCB 4.45 02/25/30

4.5YrNC6mo Amer
5,000
100.00
2/25/30
2/25/30
2/25/30
2/25/30
2/25/26
2/25/26

4.45 4.45

4.44 4.44
33 3134GW4C7
FHLMC 0.8 10/27/26
6YrNC3mo Berm
5,000
100.00
10/27/26
10/27/26
10/27/26
10/27/26
10/27/26
10/27/26

0.80 0.80

0.80 0.80
City of Palmdale: Flagship Lite - Palmdale, CA

Page 30 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

3.25YrNC1.3Yr 1x
5,000
100.00
8/10/28
8/10/26
8/10/26
8/10/26
8/10/26
8/10/26

4.10 4.10

4.10 4.10
35 3130ARHJ3
FHLB 3.175 04/19/27
5YrNC1mo
5,000
100.00
4/19/27
4/19/27
4/19/27
4/19/27
4/19/27
4/19/27

3.17 3.17

3.17 3.17
36 3133ENJC5
FFCB 1.29 12/22/26
5YrNC2Yr Amer
5,000
100.00
12/22/26
12/22/26
12/22/26
12/22/26
12/22/26
12/22/26

1.29 1.29

1.29 1.29
37 912828YX2
T 1 3/4 12/31/26
7Yr Bullet
5,000
100.00
12/31/26
12/31/26
12/31/26
12/31/26
12/31/26
12/31/26

1.75 1.75

1.75 1.75
38 3133ERE23
FFCB 4.32 12/02/27
3YrNC2Yr Amer
1,000
100.00
12/2/27
12/2/27
12/2/27
12/2/27
12/2/26
12/2/26

4.32 4.32

4.32 4.32
39 808513BW4
SCHW 3.3 04/01/27

5.5YrNC5.3Yr Amer
500
100.00
4/1/27
4/1/27
4/1/27
4/1/27
4/1/27
4/1/27

3.30 3.30

3.30 3.30
40 3130AQRH8
FHLB 2 02/25/27
5YrNC3mo Berm
5,000
100.00
2/25/27
2/25/27
2/25/27
2/25/27
2/25/27
2/25/27

2.00 2.00

2.00 2.00
41 3130AL5A8
FHLB 0.9 02/26/27
6YrNC3mo Berm
5,000
100.00
2/26/27
2/26/27
2/26/27
2/26/27
2/26/27
2/26/27

0.90 0.90

0.90 0.90
42 3130B3XP3
FHLB 4 1/2 12/04/29
5YrNC2Yr 1x
1,000
100.00
12/4/29
12/4/26
12/4/26
12/4/26
12/4/26
12/4/26

4.50 4.49

4.49 4.49

4.49 4.49
43 3134HADY6
FHLMC 4 08/14/29
5YrNC6mo Berm
4,000
100.00
8/14/29
8/14/29
8/14/29
8/14/29
8/14/29
2/14/27

4.00 4.00

4.00 4.00
44 3133ETXV4
FFCB 3.83 09/15/28
3YrNC1Yr Amer
1,400
100.00
9/15/28
9/15/28
9/15/28
9/15/28
9/15/28
9/15/28

3.83 3.83

3.83 3.83
45 75973QAA5
RNR 3.45 07/01/27
10YrNC9.8Yr Amer
500
100.00
7/1/27
7/1/27
7/1/27
7/1/27
7/1/27
7/1/27

3.45 3.45

3.45 3.45
46 91282CEW7
T 3 1/4 06/30/27
5Yr Bullet
5,000
100.00
6/30/27
6/30/27
6/30/27
6/30/27
6/30/27
6/30/27

3.24 3.24

3.24 3.24
47 22550L2K6
UBS 5 07/09/27
5Yr Bullet
500
100.00
7/9/27
7/9/27
7/9/27
7/9/27
7/9/27
7/9/27

5.00 5.00

5.00 5.00
48 91282CFM8
T 4 1/8 09/30/27
5Yr Bullet
2,500
100.00
9/30/27
9/30/27
9/30/27
9/30/27
9/30/27
9/30/27

4.12 4.12

4.12 4.12
49 3130B4RC7
FHLB 4 1/2 07/27/29

4.5YrNC2.5Yr 1x
3,000
100.00
7/27/29
7/27/27
7/27/27
7/27/27
7/27/27
7/27/27

4.50 4.50

4.50 4.50
50 09582YAV4
RICBVA 4.2 12/28/27
4Yr Bullet
240
100.00
12/28/27
12/28/27
12/28/27
12/28/27
12/28/27
12/28/27

4.20 4.20

4.20 4.20
51 718172CE7
PM 3 1/8 03/02/28

10.25YrNC10.1Yr
Amer
500
100.00
3/2/28
3/2/28
3/2/28
3/2/28
3/2/28
3/2/28

3.12 3.12

3.12 3.12
52 797440CE2
SRE 4.95 08/15/28
5YrNC4.9Yr Amer
500
100.00
8/15/28
8/15/28
8/15/28
8/14/28
7/15/28
7/15/28

4.95 4.95

4.95 4.95
53 05565QDH8
BPLN 3.723 11/28/28
12YrNC11.8Yr Amer
500
100.00
11/28/28
11/28/28
11/28/28
11/28/28
11/28/28
11/28/28

3.72 3.72

3.72 3.72
54 06406RBN6
BK 4.543 02/01/29
6YrNC5Yr 1x
656
100.00
2/1/28
2/1/28
2/1/28
2/1/28
2/1/28
2/1/28

4.54 4.54

4.54 4.54
55 89235MPP0
TOYFBN 4.65
06/13/29
5Yr Bullet
245
100.00
6/13/29
6/13/29
6/13/29
6/13/29
6/13/29
6/13/29

4.65 4.65

4.65 4.65
56 89236TMK8
TOYOTA 4.55
08/09/29
5YrNC1mo
500
100.00
8/9/29
8/9/29
8/9/29
8/9/29
8/9/29
8/9/29

4.55 4.55

4.55 4.55
57 91282CFL0
T 3 7/8 09/30/29
7Yr Bullet
5,000
100.00
9/30/29
9/30/29
9/30/29
9/30/29
9/30/29
9/30/29

3.87 3.87

3.87 3.87
58 91282CFT3
T 4 10/31/29
7Yr Bullet
5,000
100.00
10/31/29
10/31/29
10/31/29
10/31/29
10/31/29
10/31/29

4.00 4.00

4.00 4.00
59 91282CFY2
T 3 7/8 11/30/29
7Yr Bullet
5,000
100.00
11/30/29
11/30/29
11/30/29
11/30/29
11/30/29
11/30/29

3.87 3.87

3.87 3.87
60 91282CGB1
T 3 7/8 12/31/29
7Yr Bullet
3,000
100.00
12/31/29
12/31/29
12/31/29
12/31/29
12/31/29
12/31/29

3.88 3.88

3.88 3.88
61 06406RBK2
BK 4.596 07/26/30
8YrNC7Yr 1x
1,000
100.00
7/26/29
7/26/29
7/26/29
7/26/29
7/26/29
7/26/29

4.59 4.59

4.59 4.59
62 91324PDX7
UNH 2 05/15/30
10YrNC1mo
1,000
100.00
5/15/30
5/15/30
5/15/30
5/15/30
5/15/30
5/15/30

2.00 2.00

2.00 2.00
143,346
100.00

3.19 3.20

3.20 3.20

3.20 3.20
City of Palmdale: Flagship Lite - Palmdale, CA

Page 31 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Market Yield Table - Instantaneous Rate Shock
Projected Call Date - Instantaneous Rate Shock
Market Yield Table - Instantaneous Rate Shock
Bond
Security
Original
Par
Mkt
ID #
CUSIP
Description
Structure
Value
Price
+100
+50
+25
Base
-25
-50
+100
+50
+25
Base
-25
-50
1 3135G06G3
FNMA 0 1/2 11/07/25
5Yr Bullet
3,000

99.65 11/7/25
11/7/25
11/7/25
11/7/25
11/7/25
11/7/25

3.94 3.94

3.94 3.94
2 3134GXBM5
FHLMC 0.6 11/12/25
5YrNC1Yr Berm
1,150

99.61 11/12/25
11/12/25
11/12/25
11/12/25
11/12/25
11/12/25

3.98 3.98

3.98 3.98
3 229083AA8
EVANBT 5.35
06/18/29
5YrNC6mo
245
100.18
12/18/25
11/18/25
11/18/25
11/18/25
11/18/25
11/18/25

4.55 4.06

4.06 4.06

4.06 4.06
4 3130AMRQ7
FHLB 0 7/8 12/30/25

4.5YrNC3mo Berm
3,000

99.22 12/30/25
12/30/25
12/30/25
12/30/25
12/30/25
12/30/25

4.04 4.04

4.04 4.04
5 9128285T3
T 2 5/8 12/31/25
7Yr Bullet
3,000

99.66 12/31/25
12/31/25
12/31/25
12/31/25
12/31/25
12/31/25

3.99 3.99

3.99 3.99
6 9128285T3
T 2 5/8 12/31/25
7Yr Bullet
5,000

99.66 12/31/25
12/31/25
12/31/25
12/31/25
12/31/25
12/31/25

3.99 3.99

3.99 3.99
7 742718FY0
PG 4.1 01/26/26
3YrNC1mo
1,000

99.94 1/26/26
1/26/26
1/26/26
1/26/26
1/26/26
1/26/26

4.27 4.27

4.27 4.27
8 780082AD5
RY 4.65 01/27/26
10Yr Bullet
500
100.02
1/27/26
1/27/26
1/27/26
1/27/26
1/27/26
1/27/26

4.57 4.57

4.57 4.57
9 06406RAQ0
BK 0 3/4 01/28/26
5YrNC4.9Yr Amer
500

98.88 1/28/26
1/28/26
1/28/26
1/28/26
1/28/26
1/28/26

4.22 4.22

4.22 4.22
10 91282CGL9
T 4 02/15/26
3Yr Bullet
5,000
100.02
2/15/26
2/15/26
2/15/26
2/15/26
2/15/26
2/15/26

3.97 3.97

3.97 3.97
11 30231GAT9
XOM 3.043 03/01/26
10YrNC9.8Yr Amer
1,000

99.59 3/1/26
3/1/26
3/1/26
3/1/26
3/1/26
3/1/26

4.03 4.03

4.03 4.03
12 9128286F2
T 2 1/2 02/28/26
7Yr Bullet
3,000

99.42 2/28/26
2/28/26
2/28/26
2/28/26
2/28/26
2/28/26

3.91 3.91

3.91 3.91
13 194162AQ6
CL 4.8 03/02/26
3YrNC1mo
1,000
100.25
3/2/26
3/2/26
3/2/26
3/2/26
3/2/26
3/2/26

4.19 4.19

4.19 4.19
14 9128286L9
T 2 1/4 03/31/26
7Yr Bullet
3,200

99.21 3/31/26
3/31/26
3/31/26
3/31/26
3/31/26
3/31/26

3.85 3.85

3.85 3.85
15 11271LAA0
BNCN 4 1/4 06/02/26
10YrNC9.8Yr Amer
500

99.96 6/2/26
6/2/26
6/2/26
6/2/26
6/2/26
3/2/26

4.30 4.30

4.30 4.35
16 3130AN5C0
FHLB 1.05 04/29/26

4.75YrNC3mo Berm
4,000

98.38 4/29/26
4/29/26
4/29/26
4/29/26
4/29/26
4/29/26

3.90 3.90

3.90 3.90
17 3133ERCX7
FFCB 5.17 05/01/28
4YrNC2Yr Amer
5,000
100.73
5/1/28
5/1/26
5/1/26
5/1/26
5/1/26
5/1/26

4.86 3.89

3.89 3.89

3.89 3.89
18 46625HRS1
JPM 3.2 06/15/26
10YrNC9.8Yr Amer
500

99.34 6/15/26
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26

4.15 4.15

4.15 4.15
19 38150VUZ0
GS 5.05 06/11/26
2Yr Bullet
245
100.85
6/11/26
6/11/26
6/11/26
6/11/26
6/11/26
6/11/26

3.79 3.79

3.79 3.79
20 34520LBC6
FORBBK 5.05
06/15/26
2Yr Bullet
245
100.87
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26

3.78 3.78

3.78 3.78
21 05580A4Y7
BMW 4.65 06/15/26

2.5Yr Bullet
240
100.49
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26

3.92 3.92

3.92 3.92
22 91282CHH7
T 4 1/8 06/15/26
3Yr Bullet
5,000
100.22
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26
6/15/26

3.79 3.79

3.79 3.79
23 8562855V9
SBIIN 5.1 06/17/26
2Yr Bullet
245
100.91
6/17/26
6/17/26
6/17/26
6/17/26
6/17/26
6/17/26

3.78 3.78

3.78 3.78
24 3133ETUM7
FFCB 4.53 02/25/30

4.5YrNC3mo Amer
5,000

99.92 2/25/30
2/25/30
2/25/30
4/24/29
2/24/26
11/25/25

4.55 4.55

4.72 5.08
25 06051XER9
BAC 5.05 06/22/26
2Yr Bullet
245
100.89
6/22/26
6/22/26
6/22/26
6/22/26
6/22/26
6/22/26

3.78 3.78

3.78 3.78
26 35634MAE1
FREBNJ 5.05
06/22/26
2Yr Bullet
245
100.89
6/22/26
6/22/26
6/22/26
6/22/26
6/22/26
6/22/26

3.78 3.78

3.78 3.78
27 307811KA6
FMBKWI 5 06/14/28
4YrNC2Yr
245
100.82
6/14/28
6/14/26
6/14/26
6/14/26
6/14/26
6/14/26

4.72 3.84

3.84 3.84

3.84 3.84
28 61761J3R8
MS 3 1/8 07/27/26
10YrNC6mo
500

99.20 7/27/26
7/27/26
7/27/26
7/27/26
7/27/26
7/27/26

4.12 4.12

4.12 4.12
29 3130B4QA2
FHLB 4.55 07/21/28

3.5YrNC1.5Yr
3,000
100.55
7/21/28
7/21/26
7/21/26
7/21/26
7/21/26
7/21/26

4.34 3.85

3.85 3.85

3.85 3.85
30 3134HBWS6
FHLMC 4 07/07/28
3YrNC6mo Berm
2,000

99.72 7/7/28
7/7/28
7/7/28
7/7/28
1/7/28
1/7/26

4.11 4.11

4.13 5.04
31 3130B62E5
FHLB 4 1/4 10/30/28

3.5YrNC1Yr Berm
3,000
100.02
10/30/28
10/30/28
10/30/28
4/30/28
4/30/26
4/30/26

4.24 4.24

4.21 4.21
32 3133ETUN5
FFCB 4.45 02/25/30

4.5YrNC6mo Amer
5,000

99.91 2/25/30
2/25/30
2/25/30
2/25/30
2/25/26
2/25/26

4.47 4.47

4.67 4.67
33 3134GW4C7
FHLMC 0.8 10/27/26
6YrNC3mo Berm
5,000

96.83 10/27/26
10/27/26
10/27/26
10/27/26
10/27/26
10/27/26

3.84 3.84

3.84 3.84
City of Palmdale: Flagship Lite - Palmdale, CA

Page 32 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

3.25YrNC1.3Yr 1x
5,000
100.12
8/10/28
8/10/26
8/10/26
8/10/26
8/10/26
8/10/26

4.05 3.95

3.95 3.95

3.95 3.95
35 3130ARHJ3
FHLB 3.175 04/19/27
5YrNC1mo
5,000

99.09 4/19/27
4/19/27
4/19/27
4/19/27
4/19/27
4/19/27

3.78 3.78

3.78 3.78
36 3133ENJC5
FFCB 1.29 12/22/26
5YrNC2Yr Amer
5,000

97.00 12/22/26
12/22/26
12/22/26
12/22/26
12/22/26
12/22/26

3.81 3.81

3.81 3.81
37 912828YX2
T 1 3/4 12/31/26
7Yr Bullet
5,000

97.63 12/31/26
12/31/26
12/31/26
12/31/26
12/31/26
12/31/26

3.71 3.71

3.71 3.71
38 3133ERE23
FFCB 4.32 12/02/27
3YrNC2Yr Amer
1,000
100.57
12/2/27
12/2/27
12/2/27
12/2/27
12/2/26
12/2/26

4.04 4.04

3.81 3.81
39 808513BW4
SCHW 3.3 04/01/27

5.5YrNC5.3Yr Amer
500

98.96 4/1/27
4/1/27
4/1/27
4/1/27
4/1/27
4/1/27

4.02 4.02

4.02 4.02
40 3130AQRH8
FHLB 2 02/25/27
5YrNC3mo Berm
5,000

97.57 2/25/27
2/25/27
2/25/27
2/25/27
2/25/27
2/25/27

3.79 3.79

3.79 3.79
41 3130AL5A8
FHLB 0.9 02/26/27
6YrNC3mo Berm
5,000

96.05 2/26/27
2/26/27
2/26/27
2/26/27
2/26/27
2/26/27

3.81 3.81

3.81 3.81
42 3130B3XP3
FHLB 4 1/2 12/04/29
5YrNC2Yr 1x
1,000
100.70
12/4/29
12/4/26
12/4/26
12/4/26
12/4/26
12/4/26

4.31 3.88

3.88 3.88

3.88 3.88
43 3134HADY6
FHLMC 4 08/14/29
5YrNC6mo Berm
4,000

99.38 8/14/29
8/14/29
8/14/29
8/14/29
8/14/29
2/14/27

4.17 4.17

4.17 4.47
44 3133ETXV4
FFCB 3.83 09/15/28
3YrNC1Yr Amer
1,400

99.52 9/15/28
9/15/28
9/15/28
9/15/28
9/15/28
9/15/28

4.00 4.00

4.00 4.00
45 75973QAA5
RNR 3.45 07/01/27
10YrNC9.8Yr Amer
500

98.62 7/1/27
7/1/27
7/1/27
7/1/27
7/1/27
7/1/27

4.27 4.27

4.27 4.27
46 91282CEW7
T 3 1/4 06/30/27
5Yr Bullet
5,000

99.35 6/30/27
6/30/27
6/30/27
6/30/27
6/30/27
6/30/27

3.63 3.63

3.63 3.63
47 22550L2K6
UBS 5 07/09/27
5Yr Bullet
500
101.73
7/9/27
7/9/27
7/9/27
7/9/27
7/9/27
7/9/27

3.98 3.98

3.98 3.98
48 91282CFM8
T 4 1/8 09/30/27
5Yr Bullet
2,500
100.96
9/30/27
9/30/27
9/30/27
9/30/27
9/30/27
9/30/27

3.62 3.62

3.62 3.62
49 3130B4RC7
FHLB 4 1/2 07/27/29

4.5YrNC2.5Yr 1x
3,000
101.10
7/27/29
7/27/27
7/27/27
7/27/27
7/27/27
7/27/27

4.18 3.87

3.87 3.87

3.87 3.87
50 09582YAV4
RICBVA 4.2 12/28/27
4Yr Bullet
240
101.36
12/28/27
12/28/27
12/28/27
12/28/27
12/28/27
12/28/27

3.56 3.56

3.56 3.56
51 718172CE7
PM 3 1/8 03/02/28

10.25YrNC10.1Yr
Amer
500

97.93 3/2/28
3/2/28
3/2/28
3/2/28
3/2/28
3/2/28

4.03 4.03

4.03 4.03
52 797440CE2
SRE 4.95 08/15/28
5YrNC4.9Yr Amer
500
102.44
8/15/28
8/15/28
8/15/28
8/14/28
7/15/28
7/15/28

4.04 4.04

4.02 4.02
53 05565QDH8
BPLN 3.723 11/28/28
12YrNC11.8Yr Amer
500

98.90 11/28/28
11/28/28
11/28/28
11/28/28
11/28/28
11/28/28

4.10 4.10

4.10 4.10
54 06406RBN6
BK 4.543 02/01/29
6YrNC5Yr 1x
656
101.10
2/1/28
2/1/28
2/1/28
2/1/28
2/1/28
2/1/28

4.04 4.04

4.04 4.04
55 89235MPP0
TOYFBN 4.65
06/13/29
5Yr Bullet
245
103.88
6/13/29
6/13/29
6/13/29
6/13/29
6/13/29
6/13/29

3.52 3.52

3.52 3.52
56 89236TMK8
TOYOTA 4.55
08/09/29
5YrNC1mo
500
101.53
8/9/29
8/9/29
8/9/29
8/9/29
8/9/29
8/9/29

4.12 4.12

4.12 4.12
57 91282CFL0
T 3 7/8 09/30/29
7Yr Bullet
5,000
100.69
9/30/29
9/30/29
9/30/29
9/30/29
9/30/29
9/30/29

3.69 3.69

3.69 3.69
58 91282CFT3
T 4 10/31/29
7Yr Bullet
5,000
101.13
10/31/29
10/31/29
10/31/29
10/31/29
10/31/29
10/31/29

3.70 3.70

3.70 3.70
59 91282CFY2
T 3 7/8 11/30/29
7Yr Bullet
5,000
100.64
11/30/29
11/30/29
11/30/29
11/30/29
11/30/29
11/30/29

3.71 3.71

3.71 3.71
60 91282CGB1
T 3 7/8 12/31/29
7Yr Bullet
3,000
100.63
12/31/29
12/31/29
12/31/29
12/31/29
12/31/29
12/31/29

3.71 3.71

3.71 3.71
61 06406RBK2
BK 4.596 07/26/30
8YrNC7Yr 1x
1,000
101.50
7/26/29
7/26/29
7/26/29
7/26/29
7/26/29
7/26/29

4.17 4.17

4.17 4.17
62 91324PDX7
UNH 2 05/15/30
10YrNC1mo
1,000

90.55 5/15/30
5/15/30
5/15/30
5/15/30
5/15/30
5/15/30

4.27 4.27

4.27 4.27
143,346

99.43 3.99

3.93 3.93

3.93 3.94

3.97 City of Palmdale: Flagship Lite - Palmdale, CA

Page 33 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Percentage Price Change / 12 Month Total Return
Price Change - Instantaneous Rate Shock
Projected TRR - 12mo. Horizon
Bond
Security
Original
Par
Mkt
ID #
CUSIP
Description
Structure
Value
Price
+100
+50
+25
Base
-25
-50
+100
+50
+25
Base
-25
-50
1 3135G06G3
FNMA 0 1/2 11/07/25
5Yr Bullet
3,000

99.65 -0.11
-0.05
-0.03

0.00 0.03

0.05 4.65

4.42 4.31

4.19 4.08

3.97 2
3134GXBM5
FHLMC 0.6 11/12/25
5YrNC1Yr Berm
1,150

99.61 -0.12
-0.06
-0.03

0.00 0.03

0.06 4.64

4.41 4.30

4.19 4.08

3.97 3
229083AA8
EVANBT 5.35 06/18/2
5YrNC6mo
245
100.18
-0.15
-0.07
-0.03

0.00 0.03

0.07 4.71

4.41 4.31

4.20 4.09

3.99 4
3130AMRQ7
FHLB 0 7/8 12/30/25

4.5YrNC3mo Berm
3,000

99.22 -0.25
-0.13
-0.06

0.00 0.06

0.13 4.63

4.40 4.29

4.18 4.06

3.95 5
9128285T3
T 2 5/8 12/31/25
7Yr Bullet
3,000

99.66 -0.25
-0.13
-0.06

0.00 0.06

0.13 4.62

4.39 4.28

4.16 4.05

3.94 6
9128285T3
T 2 5/8 12/31/25
7Yr Bullet
5,000

99.66 -0.25
-0.13
-0.06

0.00 0.06

0.13 4.62

4.39 4.28

4.16 4.05

3.94 7
742718FY0
PG 4.1 01/26/26
3YrNC1mo
1,000

99.94 -0.32
-0.16
-0.08

0.00 0.08

0.16 4.62

4.43 4.33

4.24 4.14

4.05 8
780082AD5
RY 4.65 01/27/26
10Yr Bullet
500
100.02
-0.33
-0.16
-0.08

0.00 0.08

0.16 4.72

4.52 4.43

4.33 4.24

4.14 9
06406RAQ0
BK 0 3/4 01/28/26
5YrNC4.9Yr Amer
500

98.88 -0.33
-0.16
-0.08

0.00 0.08

0.16 4.60

4.41 4.32

4.22 4.13

4.03 10
91282CGL9
T 4 02/15/26
3Yr Bullet
5,000
100.02
-0.38
-0.19
-0.09

0.00 0.09

0.19 4.52

4.32 4.22

4.13 4.03

3.93 11
30231GAT9
XOM 3.043 03/01/26
10YrNC9.8Yr Amer
1,000

99.59 -0.41
-0.20
-0.10

0.00 0.10

0.19 4.54

4.34 4.24

4.14 4.04

3.94 12
9128286F2
T 2 1/2 02/28/26
7Yr Bullet
3,000

99.42 -0.41
-0.21
-0.10

0.00 0.10

0.21 4.49

4.29 4.19

4.09 3.99

3.89 13
194162AQ6
CL 4.8 03/02/26
3YrNC1mo
1,000
100.25
-0.42
-0.21
-0.10

0.00 0.11

0.21 4.60

4.41 4.31

4.21 4.11

4.01 14
9128286L9
T 2 1/4 03/31/26
7Yr Bullet
3,200

99.21 -0.49
-0.25
-0.12

0.00 0.12

0.25 4.40

4.22 4.13

4.04 3.95

3.86 15
11271LAA0
BNCN 4 1/4 06/02/26
10YrNC9.8Yr Amer
500

99.96 -0.58
-0.27
-0.13

0.00 0.12

0.24 4.55

4.41 4.34

4.28 4.21

4.08 16
3130AN5C0
FHLB 1.05 04/29/26

4.75YrNC3mo Berm
4,000

98.38 -0.57
-0.29
-0.14

0.00 0.14

0.29 4.32

4.18 4.11

4.03 3.96

3.89 17
3133ERCX7
FFCB 5.17 05/01/28
4YrNC2Yr Amer
5,000
100.73
-0.67
-0.31
-0.15

0.00 0.15

0.29 4.37

4.19 4.11

4.03 3.95

3.87 18
46625HRS1
JPM 3.2 06/15/26
10YrNC9.8Yr Amer
500

99.34 -0.69
-0.34
-0.17

0.00 0.17

0.33 4.41

4.29 4.23

4.17 4.11

4.05 19
38150VUZ0
GS 5.05 06/11/26
2Yr Bullet
245
100.85
-0.68
-0.34
-0.17

0.00 0.17

0.34 4.17

4.05 3.98

3.92 3.86

3.80 20
34520LBC6
FORBBK 5.05 06/15/2
2Yr Bullet
245
100.87
-0.69
-0.35
-0.17

0.00 0.17

0.35 4.15

4.03 3.97

3.91 3.85

3.79 21
05580A4Y7
BMW 4.65 06/15/26

2.5Yr Bullet
240
100.49
-0.69
-0.35
-0.18

0.00 0.17

0.35 4.25

4.13 4.07

4.01 3.96

3.90 22
91282CHH7
T 4 1/8 06/15/26
3Yr Bullet
5,000
100.22
-0.69
-0.35
-0.17

0.00 0.17

0.35 4.16

4.04 3.98

3.92 3.86

3.80 23
8562855V9
SBIIN 5.1 06/17/26
2Yr Bullet
245
100.91
-0.70
-0.35
-0.18

0.00 0.18

0.35 4.14

4.03 3.97

3.91 3.85

3.79 24
3133ETUM7
FFCB 4.53 02/25/30

4.5YrNC3mo Amer
5,000

99.92 -1.58
-0.57
-0.23

0.00 0.11

0.18 3.45

4.19 4.43

4.59 4.33

4.15 25
06051XER9
BAC 5.05 06/22/26
2Yr Bullet
245
100.89
-0.71
-0.36
-0.18

0.00 0.18

0.36 4.12

4.01 3.96

3.90 3.85

3.80 26
35634MAE1
FREBNJ 5.05 06/22/2
2Yr Bullet
245
100.89
-0.71
-0.36
-0.18

0.00 0.18

0.36 4.12

4.01 3.96

3.90 3.85

3.80 27
307811KA6
FMBKWI 5 06/14/28
4YrNC2Yr
245
100.82
-0.81
-0.37
-0.18

0.00 0.17

0.35 4.12

4.08 4.02

3.96 3.90

3.84 28
61761J3R8
MS 3 1/8 07/27/26
10YrNC6mo
500

99.20 -0.80
-0.40
-0.20

0.00 0.20

0.40 4.28

4.21 4.17

4.14 4.10

4.06 29
3130B4QA2
FHLB 4.55 07/21/28

3.5YrNC1.5Yr
3,000
100.55
-1.11
-0.49
-0.22

0.00 0.21

0.42 3.66

4.00 3.96

3.92 3.88

3.84 30
3134HBWS6
FHLMC 4 07/07/28
3YrNC6mo Berm
2,000

99.72 -1.48
-0.61
-0.26

0.00 0.19

0.32 3.14

3.72 3.94

4.12 4.24

4.22 31
3130B62E5
FHLB 4 1/4 10/30/28

3.5YrNC1Yr Berm
3,000
100.02
-1.41
-0.58
-0.26

0.00 0.22

0.40 3.32

3.87 4.06

4.18 4.13

4.05 32
3133ETUN5
FFCB 4.45 02/25/30

4.5YrNC6mo Amer
5,000

99.91 -1.75
-0.68
-0.29

0.00 0.20

0.36 3.24

4.04 4.30

4.48 4.31

4.22 33
3134GW4C7
FHLMC 0.8 10/27/26
6YrNC3mo Berm
5,000

96.83 -1.04
-0.52
-0.26

0.00 0.26

0.53 3.73

3.76 3.78

3.80 3.82

3.84 34
3136GAGW3
FNMA 4.1 08/10/28

3.25YrNC1.3Yr 1x
5,000
100.12
-1.50
-0.65
-0.30

0.00 0.26

0.50 3.20

4.06 4.02

3.99 3.96

3.93 35
3130ARHJ3
FHLB 3.175 04/19/27
5YrNC1mo
5,000

99.09 -1.33
-0.63
-0.31

0.00 0.27

0.51 3.14

3.40 3.53

3.65 3.77

3.89 36
3133ENJC5
FFCB 1.29 12/22/26
5YrNC2Yr Amer
5,000

97.00 -1.18
-0.59
-0.30

0.00 0.30

0.60 3.48

3.59 3.65

3.71 3.76

3.82 City of Palmdale: Flagship Lite - Palmdale, CA

Page 34 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

97.63 -1.20
-0.61
-0.30

0.00 0.31

0.61 3.34

3.46 3.52

3.58 3.65

3.71 38
3133ERE23
FFCB 4.32 12/02/27
3YrNC2Yr Amer
1,000
100.57
-1.41
-0.67
-0.32

0.00 0.31

0.61 3.16

3.51 3.63

3.72 3.77

3.82 39
808513BW4
SCHW 3.3 04/01/27

5.5YrNC5.3Yr Amer
500

98.96 -1.38
-0.69
-0.34

0.00 0.34

0.67 3.39

3.62 3.74

3.85 3.97

4.08 40
3130AQRH8
FHLB 2 02/25/27
5YrNC3mo Berm
5,000

97.57 -1.35
-0.68
-0.34

0.00 0.34

0.67 3.22

3.42 3.52

3.62 3.72

3.82 41
3130AL5A8
FHLB 0.9 02/26/27
6YrNC3mo Berm
5,000

96.05 -1.36
-0.68
-0.34

0.00 0.34

0.69 3.23

3.43 3.53

3.63 3.74

3.84 42
3130B3XP3
FHLB 4 1/2 12/04/29
5YrNC2Yr 1x
1,000
100.70
-1.83
-0.81
-0.37

0.00 0.35

0.67 3.37

3.72 3.78

3.82 3.86

3.90 43
3134HADY6
FHLMC 4 08/14/29
5YrNC6mo Berm
4,000

99.38 -2.20
-0.95
-0.43

0.00 0.32

0.55 2.62

3.56 3.94

4.24 4.46

4.60 44
3133ETXV4
FFCB 3.83 09/15/28
3YrNC1Yr Amer
1,400

99.52 -1.95
-0.89
-0.42

0.00 0.37

0.72 2.68

3.39 3.69

3.94 4.13

4.26 45
75973QAA5
RNR 3.45 07/01/27
10YrNC9.8Yr Amer
500

98.62 -1.62
-0.81
-0.40

0.00 0.40

0.80 3.36

3.71 3.88

4.06 4.23

4.40 46
91282CEW7
T 3 1/4 06/30/27
5Yr Bullet
5,000

99.35 -1.66
-0.83
-0.42

0.00 0.42

0.85 2.71

3.06 3.24

3.41 3.59

3.77 47
22550L2K6
UBS 5 07/09/27
5Yr Bullet
500
101.73
-1.66
-0.84
-0.42

0.00 0.42

0.85 3.05

3.41 3.58

3.76 3.94

4.12 48
91282CFM8
T 4 1/8 09/30/27
5Yr Bullet
2,500
100.96
-1.87
-0.94
-0.47

0.00 0.48

0.96 2.47

2.93 3.16

3.40 3.63

3.87 49
3130B4RC7
FHLB 4 1/2 07/27/29

4.5YrNC2.5Yr 1x
3,000
101.10
-2.34
-1.10
-0.54

0.00 0.51

1.00 2.49

3.19 3.46

3.70 3.92

4.12 50
09582YAV4
RICBVA 4.2 12/28/27
4Yr Bullet
240
101.36
-2.09
-1.05
-0.53

0.00 0.53

1.07 2.25

2.82 3.10

3.39 3.67

3.96 51
718172CE7
PM 3 1/8 03/02/28

10.25YrNC10.1Yr A
500

97.93 -2.23
-1.12
-0.56

0.00 0.56

1.12 2.56

3.21 3.54

3.87 4.19

4.50 52
797440CE2
SRE 4.95 08/15/28
5YrNC4.9Yr Amer
500
102.44
-2.57
-1.30
-0.65

0.00 0.66

1.32 2.26

3.08 3.49

3.91 4.32

4.73 53
05565QDH8
BPLN 3.723 11/28/28
12YrNC11.8Yr Amer
500

98.90 -2.84
-1.43
-0.72

0.00 0.72

1.44 2.09

3.05 3.53

4.00 4.47

4.94 54
06406RBN6
BK 4.543 02/01/29
6YrNC5Yr 1x
656
101.10
-2.99
-1.50
-0.75

0.00 0.75

1.51 1.16

2.20 2.72

3.24 3.76

4.27 55
89235MPP0
TOYFBN 4.65 06/13/2
5Yr Bullet
245
103.88
-3.31
-1.68
-0.84

0.00 0.85

1.71 1.13

2.32 2.91

3.51 4.12

4.73 56
89236TMK8
TOYOTA 4.55 08/09/2
5YrNC1mo
500
101.53
-3.44
-1.74
-0.87

0.00 0.88

1.78 1.57

2.83 3.47

4.11 4.75

5.40 57
91282CFL0
T 3 7/8 09/30/29
7Yr Bullet
5,000
100.69
-3.59
-1.82
-0.91

0.00 0.92

1.86 0.98

2.33 3.01

3.70 4.39

5.08 58
91282CFT3
T 4 10/31/29
7Yr Bullet
5,000
101.13
-3.65
-1.85
-0.93

0.00 0.94

1.89 1.00

2.35 3.04

3.72 4.41

5.11 59
91282CFY2
T 3 7/8 11/30/29
7Yr Bullet
5,000
100.64
-3.72
-1.89
-0.95

0.00 0.96

1.93 0.92

2.32 3.03

3.74 4.45

5.17 60
91282CGB1
T 3 7/8 12/31/29
7Yr Bullet
3,000
100.63
-3.79
-1.92
-0.97

0.00 0.98

1.97 0.85

2.29 3.02

3.75 4.48

5.22 61
06406RBK2
BK 4.596 07/26/30
8YrNC7Yr 1x
1,000
101.50
-4.12
-2.08
-1.04

0.00 1.05

2.11 0.58

2.20 3.01

3.83 4.64

5.46 62
91324PDX7
UNH 2 05/15/30
10YrNC1mo
1,000

90.55 -4.23
-2.14
-1.08

0.00 1.09

2.20 0.98

2.65 3.49

4.34 5.19

6.05 143,346

99.43 -1.49
-0.72
-0.35

0.00 0.34

0.66 3.28

3.64 3.79

3.93 4.04

4.14 City of Palmdale: Flagship Lite - Palmdale, CA

Page 35 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Redemption at Next Call Date - Instantaneous Rate Shock Probability of Redemption at NEXT Call Date
BPs CURRENTLY Away From Par
Bond
Security
Original
Par
Next
ID #
CUSIP
Description
Structure
Value
Call Date
+100
+50
+25
Base
-25
-50
+100
+50
+25
Base
-25
-50
3 229083AA8
EVANBT 5.35 06/18/2
5YrNC6mo
245
11/18/25
83%
100%
100%
100%
100%
100%
-10
-59
-84
-109
-134
-159
9 06406RAQ0
BK 0 3/4 01/28/26
5YrNC4.9Yr Amer
500
12/29/25
0%
0%
0%
0%
0%
0%
458
407
381
355
330
304
11 30231GAT9
XOM 3.043 03/01/26
10YrNC9.8Yr Amer
1,000
12/01/25
0%
0%
0%
0%
3%
3%
230
178
153
127
102
76 15
11271LAA0
BNCN 4 1/4 06/02/26
10YrNC9.8Yr Amer
500
03/02/26
2%
12%
34%
66%
66%
88%
109
59 33
8 -17
-42
16 3130AN5C0
FHLB 1.05 04/29/26

4.75YrNC3mo Berm
4,000
10/29/25
0%
0%
0%
0%
0%
0%
426
374
348
322
296
270
17 3133ERCX7
FFCB 5.17 05/01/28
4YrNC2Yr Amer
5,000
05/01/26
63%
84%
95%
99%
99%
100%
-6
-56
-81
-106
-131
-156
18 46625HRS1
JPM 3.2 06/15/26
10YrNC9.8Yr Amer
500
03/15/26
0%
0%
2%
2%
12%
12%
211
160
135
110
84 59
24 3133ETUM7
FFCB 4.53 02/25/30

4.5YrNC3mo Amer
5,000
11/25/25
0%
0%
17%
17%
83%
83%
115
65 39
14 -11
-36
27 307811KA6
FMBKWI 5 06/14/28
4YrNC2Yr
245
06/14/26
62%
83%
94%
94%
99%
100%
-1
-50
-74
-99
-123
-148
29 3130B4QA2
FHLB 4.55 07/21/28

3.5YrNC1.5Yr
3,000
07/21/26
62%
81%
93%
93%
98%
98%
44 -6
-31
-56
-81
-106
30 3134HBWS6
FHLMC 4 07/07/28
3YrNC6mo Berm
2,000
01/07/26
0%
6%
30%
30%
70%
70%
144
93 68
42 17
-8
31 3130B62E5
FHLB 4 1/4 10/30/28

3.5YrNC1Yr Berm
3,000
04/30/26
16%
37%
37%
63%
84%
84%
98 48
23 -2
-27
-52
32 3133ETUN5
FFCB 4.45 02/25/30

4.5YrNC6mo Amer
5,000
02/25/26
1%
9%
32%
68%
68%
91%
111
61 36
10 -15
-40
33 3134GW4C7
FHLMC 0.8 10/27/26
6YrNC3mo Berm
5,000
10/27/25
0%
0%
0%
0%
0%
0%
467
414
388
362
337
311
34 3136GAGW3
FNMA 4.1 08/10/28

3.25YrNC1.3Yr 1x
5,000
08/10/26
39%
61%
80%
80%
92%
97%
90 40
15 -10
-35
-60
35 3130ARHJ3
FHLB 3.175 04/19/27
5YrNC1mo
5,000
10/19/25
0%
0%
0%
0%
0%
0%
232
181
155
130
104
78 36
3133ENJC5
FFCB 1.29 12/22/26
5YrNC2Yr Amer
5,000
10/16/25
0%
0%
0%
0%
0%
0%
427
375
349
323
297
271
38 3133ERE23
FFCB 4.32 12/02/27
3YrNC2Yr Amer
1,000
12/02/26
41%
59%
59%
76%
88%
88%
57 7
-18
-43
-68
-93
39 808513BW4
SCHW 3.3 04/01/27

5.5YrNC5.3Yr Amer
500
01/01/27
6%
13%
25%
25%
41%
59%
179
129
104
79 54
29 40
3130AQRH8
FHLB 2 02/25/27
5YrNC3mo Berm
5,000
11/25/25
0%
0%
0%
0%
0%
0%
353
301
276
250
225
199
41 3130AL5A8
FHLB 0.9 02/26/27
6YrNC3mo Berm
5,000
11/26/25
0%
0%
0%
0%
0%
0%
464
413
388
362
337
311
42 3130B3XP3
FHLB 4 1/2 12/04/29
5YrNC2Yr 1x
1,000
12/04/26
59%
76%
76%
88%
95%
95%
56 7
-18
-43
-68
-93
43 3134HADY6
FHLMC 4 08/14/29
5YrNC6mo Berm
4,000
11/14/25
0%
0%
0%
0%
17%
17%
173
122
96 71
46 20
44 3133ETXV4
FFCB 3.83 09/15/28
3YrNC1Yr Amer
1,400
09/15/26
9%
21%
21%
40%
60%
60%
132
83 58
33 8
-17
45 75973QAA5
RNR 3.45 07/01/27
10YrNC9.8Yr Amer
500
04/01/27
3%
15%
15%
27%
42%
42%
188
138
113
88 63
38 49
3130B4RC7
FHLB 4 1/2 07/27/29

4.5YrNC2.5Yr 1x
3,000
07/27/27
42%
58%
72%
83%
83%
91%
50 1
-24
-49
-74
-99
51 718172CE7
PM 3 1/8 03/02/28

10.25YrNC10.1Yr A
500
12/02/27
6%
11%
19%
19%
30%
30%
194
145
120
94 69
44 52
797440CE2
SRE 4.95 08/15/28
5YrNC4.9Yr Amer
500
07/15/28
44%
56%
68%
78%
78%
86%
8 -42
-67
-92
-118
-143
53 05565QDH8
BPLN 3.723 11/28/28
12YrNC11.8Yr Amer
500
08/28/28
15%
22%
33%
33%
44%
56%
139
89 64
39 14
-11
54 06406RBN6
BK 4.543 02/01/29
6YrNC5Yr 1x
656
02/01/28
1%
2%
3%
3%
7%
7%
-10
-59
-84
-109
-134
-159
61 06406RBK2
BK 4.596 07/26/30
8YrNC7Yr 1x
1,000
07/26/29
2%
4%
7%
7%
12%
12%
25 -24
-49
-74
-99
-124
74,546
City of Palmdale: Flagship Lite - Palmdale, CA

Page 36 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Portfolio Changes
New Securities 6/2025-9/2025
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
06406RBK2
Corporate
BK 4.596 07/26/30
07/26/2030

4.60 1,000,000
100.00
AFS
3133ETUM7
Treasury/Agency
FFCB 4.53 02/25/30
02/25/2030

4.53 5,000,000
100.00
AFS
3133ETUN5
Treasury/Agency
FFCB 4.45 02/25/30
02/25/2030

4.45 5,000,000
100.00
AFS
3133ETXV4
Treasury/Agency
FFCB 3.83 09/15/28
09/15/2028

3.83 1,400,000
100.00
AFS
3134HBWS6
Treasury/Agency
FHLMC 4 07/07/28
07/07/2028

4.00 2,000,000
100.00
AFS
89236TMK8
Corporate
TOYOTA 4.55 08/09/29
08/09/2029

4.55 500,000
100.00
AFS
91324PDX7
Corporate
UNH 2 05/15/30
05/15/2030

2.00 1,000,000
100.00
AFS
Securities Sold/Redeemed 6/2025-9/2025
CUSIP
Sector
Security Description
Maturity
Coupon
Original Face
Book Price
Intent
Redemption Type
3133EPKC8
Treasury/Agency
FFCB 5.39 05/18/27
05/18/2027

5.39 5,000,000
100.00
AFS
Called
46656MVH1
CD
JPM 5 11/30/27
11/30/2027

5.00 240,000
100.00
AFS
Called
3133ETGK7
Treasury/Agency
FFCB 4.73 05/14/29
05/14/2029

4.73 5,000,000
100.00
AFS
Called
3133ETFB8
Treasury/Agency
FFCB 4 3/4 04/30/29
04/30/2029

4.75 5,000,000
100.00
AFS
Called
3133EPLE3
Treasury/Agency
FFCB 4.67 05/30/28
05/30/2028

4.67 2,815,000
100.00
AFS
Called
59541KCV7
CD
MIDMIB 5.15 06/12/28
06/12/2028

5.15 245,000
100.00
AFS
Called
69503PAB7
CD
PACVYB 5.2 06/14/29
06/14/2029

5.20 245,000
100.00
AFS
Called
3133EJYM5
Treasury/Agency
FFCB 3.02 09/04/25
09/04/2025

3.02 3,000,000
100.00
AFS
Expired/Matured
3136G4ZP1
Treasury/Agency
FNMA 0.65 07/30/25
07/30/2025

0.65 3,500,000
100.00
AFS
Expired/Matured
3134GWUG9
Treasury/Agency
FHLMC 0.57 09/24/25
09/24/2025

0.57 10,000,000
100.00
AFS
Expired/Matured
3133EL3P7
Treasury/Agency
FFCB 0.53 08/12/25
08/12/2025

0.53 1,810,000
100.00
AFS
Expired/Matured

PLMDLCAMP
Other

CAMP- CALIFORNIA ASSET MANAGEMENT P
07/30/2025

0.30 53,535,437
100.00
AFS
Partial Sale
PLMDLLA1F
Other

STATE OF CALIFORNIA LOCAL AGENCY INV
07/30/2025

0.78 105,378,988
100.00
AFS
Partial Sale
City of Palmdale: Flagship Lite - Palmdale, CA

Page 37 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Shocked Assumptions
Scenarios
Mod
Slight
Mod
Slight
Mod
Slight
Mod
Up Stp
Up Stp
Up Flt
Up Flt
+100
+50
+25
Base
-25
-50
Dn Stp
Dn Flt
Dn Flt
Shift Amount
3mo
75 38
75 38
100
50 25
0 -25
-50
-75
-38
-75
6mo
75 38
75 38
100
50 25
0 -25
-50
-75
-38
-75
12mo
75 38
75 38
100
50 25
0 -25
-50
-75
-38
-75
2yr
75 38
75 38
100
50 25
0 -25
-50
-75
-38
-75
3yr
75 38
75 38
100
50 25
0 -25
-50
-75
-38
-75
5yr
75 38
75 38
100
50 25
0 -25
-50
-75
-38
-75
10yr
75 38
75 38
100
50 25
0 -25
-50
-75
-38
-75
30yr
75 38
75 38
100
50 25
0 -25
-50
-75
-38
-75
Shock Horizon
0 Months
0 Months
0 Months
0 Months
0 Months
0 Months
0 Months
0 Months
0 Months
0 Months
0 Months
0 Months
0 Months
Total Return Horizon
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
12 Months
Shift Timing to Horizon
Ramped
Ramped
Ramped
Ramped
Ramped
Ramped
Ramped
Ramped
Ramped
Ramped
Ramped
Ramped
Ramped
Curve Type
Static
Static
Static
Static
Static
Static
Static
Static
Static
Static
Static
Static
Static
City of Palmdale: Flagship Lite - Palmdale, CA

Page 38 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Assumptions
·

Curve Date
Same as Portfolio As Of Date
·

Curve Type Used
SOFRSwap Curve
·

Market Prices
Market prices are indications only, provided by Reuters unless otherwise specified ·

Horizon Price Methodology
Constant OAS where possible; constant nominal spread change as a secondary method ·

Horizon Period
0 month horizon for immediate rate shock scenarios; 12 month horizon for total return scenarios ·

Reinvestment Rate
SOFR
·

Cost of Funds

0.00%
·

Tax Rate

00.0%
·

Subtotal Weightings
Overall totals and subtotals are weighted by market value Additional Information
Adjustable Rate Securities
- YTM for ARMs and floaters assumes the coupon resets based on index levels implied by the static curve.

Projected Call Methodology
- The method used to determine the call assumes a small internal margin to account for the "cost to call." Municipals
- For taxable institutions, the above tax rate detailed - along with TEFRA adjustments for BQs - is used to calculate TEY unless otherwise noted.

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

Dollar Amounts
- Unless otherwise specified, dollar amounts are displayed in thousands (000s).

City of Palmdale: Flagship Lite - Palmdale, CA

Page 39 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

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

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’
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as applicable).

The accuracy of the financial projections is dependent on the occurrence of future events which cannot be assured; therefore, the actual results may vary from the projections and future results are not guaranteed.

For additional information on investment risks (including but not limited to, market/credit risks, credit ratings, and specific securities provisions), contact your Stifel Fixed Income representative.
©
2025
Stifel, Nicolaus & Company, Incorporated | Member NYSE, FINRA, SIPC One South Street, Baltimore, MD 21202
. All rights reserved.

Disclaimer
City of Palmdale: Flagship Lite - Palmdale, CA

Page 40 of 40 ends

As of 9/30/2025
Portfolio ID: 7211 - 58411

Performance Profile
City of Palmdale - Successor Agency
Palmdale, CA
September 2025
Stifel.com
Executive Summary
Portfolio Summary
Portfolio Overview 6
Historical Portfolio Overview 7
Portfolio Sector Summary 8
Total Portfolio 9
Market Timing Analysis 10
Market Economic Data
Market Economic Data 11
Sector Analysis
Other 16
Cashflow Analysis
Annual Base Case 19
Cash Flows By Sector - Next 30 Years 20
Annual Shocked 21
Monthly Base Case 22
Monthly Shocked 23
Yield Forecaster 24
Gap Analysis 25
Expected Call Report 26
Supplemental Analysis
Key Portfolio Sorts 29
CUSIP Details
CUSIP Details - Other 33
Scenario Yield and Price Analysis
Other 36
Addendum
Portfolio Exceptions 39
Disclaimer and Notes 40
Key Terms 41
Table of Contents
Performance Profile
Bill Blackwill, Managing Director
[email protected]
Chad Smith, Managing Director
[email protected]
3 of 42
As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Executive Summary
This page is intentionally left blank.

Book Value 3,942,546
# Securities 1
Average Size (Book) 3,942,546
Yield @ Book Price 0.78
Internal Rate of Return 0.77
Yield @ Book Price +100bps 0.78
Yield @ Book Price -100bps 0.78
Market Yield 0.78
$ Gain Loss
% Gain Loss 0.0%
Average Life 0.1
Average Life +300bps 0.1
% Price Change +100bps -0.1
% Price Change +300bps -0.3
Effective Duration 0.1
Effective Convexity 0.0
AFS / HTM % 100% / 0%
Fixed / Floating 100% / 0%
ESG / Green Par (000's) $0 / $0
Portfolio Snapshot
Executive Summary
6 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Portfolio Summary As of: 9/2025, Created: 10/7/2025 8:19:22 PM

09/30/2025 06/30/2025
Book Value 3,942,546 3,899,819
Yield @ Book Price 0.78 0.78
Yield @ Book Price (+100) 0.78 0.78
Yield @ Book Price (+300) 0.78 0.78
Yield @ Book Price (-100) 0.78 0.78
WAL 0.1 0.1
WAL (+100) 0.1 0.1
WAL (+300) 0.1 0.1
WAL (-100) 0.1 0.1
% Price Change (+100) -0.1% -0.1%
% Price Change (+300) -0.3% -0.3%
% Price Change (-100) 0.1% 0.1%
Effective Duration 0.1 0.1
Effective Convexity 0.0 0.0
$ Gain/Loss 0 0
% Gain/Loss 0.0% 0.0%
$ Gain/Loss (+300) -10,014 -10,034
Principal Cash Flow 2 yrs out 100% 100%
Principal Cash Flow 2 yrs out (+100) 100% 100%
Principal Cash Flow 2 yrs out (+300) 100% 100%
Principal Cash Flow 2 yrs out (-100) 100% 100%
Executive Summary
Historical Portfolio Overview
7 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Portfolio Summary As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Portfolio Par Book Yld @ Market % Price Change Gain/(Loss) Effective AFS Sector Curr Par % Value Cpn Maturity Value Book Value Yield -100 +100 +300 $ % WAL Dur Cvx % Cash & Other (1) 100.0% 3,942,546 0.78 0.1 3,942,546 0.78 3,942,546 0.78 0.1 -0.1 -0.3 0 0.0% 0.1 0.1 0.0 100% Other (1) 100.0% 3,942,546 0.78 0.1 3,942,546 0.78 3,942,546 0.78 0.1 -0.1 -0.3 0 0.0% 0.1 0.1 0.0 100% Total (1) 100.0% 3,942,546 0.78 0.1 3,942,546 0.78 3,942,546 0.78 0.1 -0.1 -0.3 0 0.0% 0.1 0.1 0.0 100% Executive Summary
Portfolio Sector Summary
8 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Portfolio Summary As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Total Portfolio
-400 -300 -200 -100 Base +100 +200 +300 +400
Number Bonds 1 1 1 1 1 1 1 1 1
Current Face 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 Book Value 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 Book Price 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Projected Yield At Book Price 0.78% 0.78% 0.78% 0.78% 0.78% 0.78% 0.78% 0.78% 0.78% Market Value 3,956,061 3,952,663 3,949,280 3,945,905 3,942,546 3,939,199 3,935,859 3,932,532 3,929,216 Market Price 100.34 100.26 100.17 100.09 100.00 99.92 99.83 99.75 99.66 Market Yield -3.29% -2.28% -1.26% -0.24% 0.78% 1.80% 2.83% 3.86% 4.89% % Price Change 0.3% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% -0.3% -0.3% Book Gain/Loss 13,515 10,117 6,734 3,359 0 -3,347 -6,687 -10,014 -13,330 Gain/Loss % 0.3% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% -0.3% -0.3% Average Life 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Duration 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Convexity 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ¹Stifel Portfolio Median refers to the median portfolio value for other institutions analyzed by Stifel within the past three months.

Portfolio Analysis - Interest Rate Shock
Executive Summary
9 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Portfolio Summary As of: 9/2025, Created: 10/7/2025 8:19:22 PM

The highest quartile is composed of the seven quarters over the past seven years in which rates were the highest, the second quartile is the next seven highest quarters, and so on. 5 Year Treasury Average: 2.58% / Median 2.72%
Market Timing Analysis
Executive Summary
10 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Portfolio Summary As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Key Market Rates
Executive Summary
11 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Market Economic Data > Market Economic Data As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Executive Summary
Key Economic Data
12 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Market Economic Data > Market Economic Data As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Executive Summary
Key Market Rates
13 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Market Economic Data > Market Economic Data As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Sector Analysis
This page is intentionally left blank.
-400 -300 -200 -100 Base +100 +200 +300 +400
Number Bonds 1 1 1 1 1 1 1 1 1
Current Face 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 Book Value 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 3,942,546 Book Price 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Proj. Yld. At Book Px. 0.78% 0.78% 0.78% 0.78% 0.78% 0.78% 0.78% 0.78% 0.78% Market Value 3,956,061 3,952,663 3,949,280 3,945,905 3,942,546 3,939,199 3,935,859 3,932,532 3,929,216 Market Price 100.34 100.26 100.17 100.09 100.00 99.92 99.83 99.75 99.66 Market Yield -3.29% -2.28% -1.26% -0.24% 0.78% 1.80% 2.83% 3.86% 4.89% % Price Change 0.3% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% -0.3% -0.3% Book Gain/Loss 13,515 10,117 6,734 3,359 0 -3,347 -6,687 -10,014 -13,330 Gain/Loss % 0.34% 0.26% 0.17% 0.09% 0.00% -0.08% -0.17% -0.25% -0.34% Average Life 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Duration 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Convexity 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ¹ Risk - Sector px. vol. +300 as % of total port. px. vol ² Yield - Sector yield as a % of total port. yield.

Other Sector Portfolio
Sector Analysis
16 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Sector Analysis As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Cashflow Analysis
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Annual Cash Flows by Sector (Base)
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 ≥2035 Treasury/Agency 0 0 0 0 0 0 0 0 0 0 0
MBS Fixed 0 0 0 0 0 0 0 0 0 0 0
ARM 0 0 0 0 0 0 0 0 0 0 0
CMO Fixed 0 0 0 0 0 0 0 0 0 0 0
CMO Floating 0 0 0 0 0 0 0 0 0 0 0
Agency CMBS 0 0 0 0 0 0 0 0 0 0 0
Small Business 0 0 0 0 0 0 0 0 0 0 0
Private Label 0 0 0 0 0 0 0 0 0 0 0
Municipal 0 0 0 0 0 0 0 0 0 0 0
Corporate 0 0 0 0 0 0 0 0 0 0 0
CD 0 0 0 0 0 0 0 0 0 0 0
Other 3,942,546 0 0 0 0 0 0 0 0 0 0
Total 3,942,546 0 0 0 0 0 0 0 0 0 0
% of Total Portfolio 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Annual Cash Flows by Sector (Base)
Annual Base
Cash Flow Analysis
19 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Annual Base Case As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Base Scenario
Cash Flows By Sector - Next 30 Years
Cash Flow Analysis
20 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Change in Shocked Annual Portfolio Cash Flows from Base 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 ≥ 2035 Down 400 0 0 0 0 0 0 0 0 0 0 0
Down 300 0 0 0 0 0 0 0 0 0 0 0
Down 200 0 0 0 0 0 0 0 0 0 0 0
Down 100 0 0 0 0 0 0 0 0 0 0 0
Up 100 0 0 0 0 0 0 0 0 0 0 0
Up 200 0 0 0 0 0 0 0 0 0 0 0
Up 300 0 0 0 0 0 0 0 0 0 0 0
Up 400 0 0 0 0 0 0 0 0 0 0 0
Shocked Annual Portfolio Cash Flows
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 ≥ 2035 Down 400 3,942,546 0 0 0 0 0 0 0 0 0 0
Down 300 3,942,546 0 0 0 0 0 0 0 0 0 0
Down 200 3,942,546 0 0 0 0 0 0 0 0 0 0
Down 100 3,942,546 0 0 0 0 0 0 0 0 0 0
Base 3,942,546 0 0 0 0 0 0 0 0 0 0
Up 100 3,942,546 0 0 0 0 0 0 0 0 0 0
Up 200 3,942,546 0 0 0 0 0 0 0 0 0 0
Up 300 3,942,546 0 0 0 0 0 0 0 0 0 0
Up 400 3,942,546 0 0 0 0 0 0 0 0 0 0
Shocked Annual Portfolio Cash Flows
Annual Shocked
Cash Flow Analysis
21 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Annual Shocked As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Monthly Cash Flows by Sector (Base)
Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Total % of Total Portfolio
Treasury/Agency 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
MBS Fixed 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
ARM 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
CMO Fixed 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
CMO Floating 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Agency CMBS 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Small Business 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Private Label 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Municipal 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Corporate 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Other 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546 100.0%
Total 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546 100.0%
% of Total Portfolio 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Monthly Cash Flows by Sector (Base)
Monthly Base
Cash Flow Analysis
22 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Monthly Base Case As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Shocked Monthly Portfolio Cash Flows (Year 1)
Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Total Down 400 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546
Down 300 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546
Down 200 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546
Down 100 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546
Base 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546
Up 100 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546
Up 200 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546
Up 300 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546
Up 400 3,942,546 0 0 0 0 0 0 0 0 0 0 0 3,942,546
Change in Monthly Cash Flows from Base (Year 1)
Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Total Down 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Shocked Monthly Portfolio Cash Flows (Year 2)
Oct-26 Nov-26 Dec-26 Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27 Jul-27 Aug-27 Sep-27 Total Down 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Base 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Change in Monthly Cash Flows from Base (Year 2)
Oct-26 Nov-26 Dec-26 Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27 Jul-27 Aug-27 Sep-27 Total Down 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Monthly Shocked
Cash Flow Analysis
23 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Monthly Shocked As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Down 100 (3.17% Assumed Reinvestment Rate)¹
Principal Cash
Flow
Cuml. Pay
Down
Rolloff
Yield
Rem. Port.

Yield
Reinvest
Port. Yield
3,942,546 100.0% 0.78 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
0 100.0% 0.00 0.00 3.17
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
Jul-26
Aug-26
Sep-26
Oct-26
Nov-26
Dec-26
Jan-27
Feb-27
Mar-27
Apr-27
May-27
Jun-27
Jul-27
Aug-27
Sep-27
Oct-27
Nov-27
Dec-27
Jan-28
Feb-28
Mar-28
Apr-28
May-28
Jun-28
Jul-28
Aug-28
Sep-28
Base Case (4.17% Assumed Reinvestment Rate)¹
Principal Cash
Flow
Cuml. Pay
Down
Rolloff
Yield
Rem. Port.

Yield
Reinvest
Port. Yield
3,942,546 100.0% 0.78 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
0 100.0% 0.00 0.00 4.17
Up 100 (5.17% Assumed Reinvestment Rate)¹
Principal Cash
Flow
Cuml. Pay
Down
Rolloff
Yield
Rem. Port.

Yield
Reinvest
Port. Yield
3,942,546 100.0% 0.78 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
0 100.0% 0.00 0.00 5.17
¹ Base reinvestment set at 5 Year Treasury rate +50 basis points Yield Forecaster
Cash Flow Analysis
24 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Yield Forecaster As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Assumed Estimated Income Resulting
Reinvestment Annualized Difference From Book
Yield Income Current Book Yield

0.25 10 -21 0.25

0.50 20 -11 0.50

0.75 30 -1 0.75

1.00 39 9 1.00

1.25 49 19 1.25

1.50 59 28 1.50

1.75 69 38 1.75

2.00 79 48 2.00

2.25 89 58 2.25

2.50 99 68 2.50

2.75 108 78 2.75

3.00 118 88 3.00

3.25 128 97 3.25

3.50 138 107 3.50

3.75 148 117 3.75

4.00 158 127 4.00

4.25 168 137 4.25

4.50 177 147 4.50

4.75 187 157 4.75

5.00 197 166 5.00

5.25 207 176 5.25

5.50 217 186 5.50

5.75 227 196 5.75

6.00 237 206 6.00

6.25 246 216 6.25

6.50 256 226 6.50

6.75 266 235 6.75

7.00 276 245 7.00

7.25 286 255 7.25

7.50 296 265 7.50

7.75 306 275 7.75

8.00 315 285 8.00
Principal Maturing (12 Mo Horizon) 3,943
Current Book Yield of Principal Maturing 0.78%
Estimated Annual Income at Current Book Yield $31
Gap Analysis - Potential Income Impact of Principal Reinvestment Cash Flow Analysis
25 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Gap Analysis As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Book Yld @ Projected Call / Maturity Date
Description CUSIP Maturity
Next Call
Date Coupon
Current
Face Gain/Loss Book -400 -300 -200 -100 Base +100 +200 +300 +400 Projected Call and Maturity Dates by Rate Scenario (Next 12 Months) Projected Call and Maturity Report
Cash Flow Analysis
26 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Expected Call Report As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Supplemental Analysis
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Par Book Mkt Yld @ % Px Δ $ Amt Δ G/L Eff
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book WAL +300 +300 +300 Dur INT PLMDLLA1F Cash & Other STATE OF CALIFORNIA LOCAL 0.78 10/31/25 3,942,546 100.00 100.00 0.78 0.1 -0.3 -10,014 -10,014 0.1 AFS

0.78 3,942,546 100.00 100.00 0.78 0.1 -0.3 -10,014 -10,014 0.1 Top 10 Up 300 Market Value Changes (%)
Top 10 Up 300 Market Value Changes ($)
Par Book Mkt Yld @ % Px Δ $ Amt Δ G/L Eff
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book WAL +300 +300 +300 Dur INT PLMDLLA1F Cash & Other STATE OF CALIFORNIA LOCAL 0.78 10/31/25 3,942,546 100.00 100.00 0.78 0.1 -0.3 -10,014 -10,014 0.1 AFS

0.78 3,942,546 100.00 100.00 0.78 0.1 -0.3 -10,014 -10,014 0.1 Key Portfolio Sorts
Sector Supplemental Analysis
29 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Supplemental Analysis > Key Portfolio Sorts As of: 9/2025, Created: 10/7/2025 8:19:22 PM

0.78 3,942,546 100.00 100.00 0.78 0.1 -0.3 -10,014 -10,014 0.1 Top 10 Marked To Market Up 300 Loss Positions
Top 10 Average Life Extension Up 300bps
Par Book Mkt Yld @ % Px Δ Eff WAL Chg in
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book +300 Dur WAL +300 WAL INT PLMDLLA1F Cash & Other STATE OF CALIFORNIA LOCAL 0.78 10/31/25 3,942,546 100.00 100.00 0.78 -0.3 0.1 0.1 0.1 0.0 AFS

0.78 3,942,546 100.00 100.00 0.78 -0.3 0.1 0.1 0.1 0.0
Key Portfolio Sorts
Sector Supplemental Analysis
30 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Supplemental Analysis > Key Portfolio Sorts As of: 9/2025, Created: 10/7/2025 8:19:22 PM

CUSIP Details
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Coupon % Price Change
CUSIP FAS Description Structure Current Type Rate Next Step Maturity Book
Price
Yld @
Book
Mkt
Price Gain/Loss G/L % Avg Life -100 +100 +300 Eff Dur
PLMDLLA1F AFS STATE OF CALIFORNIA LOCAL Bullet 3,942,546 Fixed 0.780 10/31/25 100.00 0.78 100.00 0 0.0% 0.1 0.1 -0.1 -0.3 0.1 TOTAL OTHER 3,942,546 0.780 10/31/25 100.00 100.00 0 0.0% 0.1 0.1 -0.1 -0.3 0.1 Security Details - Other Sector
CUSIP Details
33 of 42 City of Palmdale - Successor Agency - Palmdale, CA : CUSIP Details As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Scenario Yield and Price Analysis
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Book Projected Yield At Book Price % Change in Market Price CUSIP Description Value Price
Market
Price -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 +100 +200 +300 +400 PLMDLLA1F STATE OF CALIFORNIA LOCAL AGENCY I 3,942,546 100.00 100.00 0.78 0.78 0.78 0.78 0.78 0.78 0.78 0.78 0.78 0.3 0.3 0.2 0.1 -0.1 -0.2 -0.3 -0.3 TOTAL OTHER SECTOR 3,942,546 100.00 100.00 0.78 0.78 0.78 0.78 0.78 0.78 0.78 0.78 0.78 0.3 0.3 0.2 0.1 -0.1 -0.2 -0.3 -0.3 * n.m.: Yield not meaningful
Interest Rate Risk / Reward - Other Sector
Scenario Yield and Price Analysis
36 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Scenario Yield and Price Analysis As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Addendum
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Exception Sub Sub Sub Security Current Book Market
Description CUSIP Sector Sector Sector Description Par Price Price No bonds were excluded from your portfolio
Portfolio Exceptions
Portfolio Exceptions Summary
Total Excluded Included Excluded Total Excluded Included Excluded Current Par Current Par Current Par Pct Count Count Count Pct 3,942,546 0 3,942,546 0.00% 1 0 1 0.00%
Addendum
Portfolio Exceptions
39 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Addendum As of: 9/2025, Created: 10/7/2025 8:19:22 PM

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

Stifel is a multi-disciplined financial services firm that regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as a placement agent in private transactions. Moreover, Stifel and its affiliates and their respective shareholders, directors, officers, and/or employees, may from time to time have long or short positions in such securities or in options or other derivative instruments based thereon.

Readers of this report should assume that Stifel or one of its affiliates is seeking or will seek investment banking and/or other business relationships with the issuer or issuers, or borrower or borrowers, mentioned in this report. Stifel’s Fixed Income Capital Markets research and strategy analysts ("FICM Analysts") are not compensated directly or indirectly based on specific investment banking services transactions with the borrower or borrowers mentioned in this report or on FICM Analyst specific recommendations or views (whether or not contained in this or any other Stifel report), nor are FICM Analysts supervised by Stifel investment banking personnel; FICM Analysts receive compensation, however, based on the profitability of both Stifel (which includes investment banking) and Stifel’s Fixed Income Capital Markets. The views, if any, expressed by FICM Analysts herein accurately reflect their personal professional views about subject securities and borrowers. For additional information on investment risks (including, but not limited to, market risks, credit ratings, and specific securities provisions), contact your Stifel financial advisor or salesperson.

High yield fixed income securities, or fixed income securities that don’t have credit ratings from nationally recognized statistical rating organizations, may be subject to greater fluctuations in price and greater risk of loss of income and principal, due to greater potential default risk by the associated borrowers than fixed income securities that have investment grade credit ratings from the nationally recognized statistical rating organizations.

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Applied Notes
Date Requested 10/07/2025 The Performance Profile was requested on this date Book Date 09/30/2025 The portfolio's book (holding) price is as of this date As-Of Date 09/23/2025 Market pricing for this portfolio is as of this date.

Call Report n.a. Most recent institution call report available on Date Requested Risk Manager n.a. The most recent Risk Manager information as of Date Requested Tax Rate Applied 21.00% Adjustable, defaults to 21.00% C-Corp Bank, 29.60% S-Corp Bank, 0.00% Credit Union Cost of Funds 1.0% Used to calculate Tax-Equivalent Yields where appropriate for depositories TEFRA Tax-Free Munis C-Corp Bank (20% BQ, 100% GM); S-Corp Bank (0% BQ, 100% GM); all else n.a.

Portfolio Statistics 10/07/2025 The most recent Stifel portfolio summary statistics as of Date Requested Addendum
Disclaimer and Notes
40 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Addendum > Disclaimer and Notes As of: 9/2025, Created: 10/7/2025 8:19:22 PM

Term Definition
Adjustment Frequency For adjustable-rate mortgages (ARMs), the number of months between the loan’s or security’s coupon adjustment dates. GNMA ARMs adjust annually in one of the following months: January, April, July, or October; FNMA and FHLMC issues also usually have annual reset dates although the adjustment dates occur at any time during the year.

Book Yield Usually provided from Bond Accounting reports and represents the Annualized yield to maturity (or call) based on the book value of a bond and projected cash flows. Similar to “Projected Yield at Book” except 3mo Historical Speeds are commonly employed in calculating Book Yield for amortizing securities rather than a forward looking estimate.

Collateral Assets that are used to secure payment of certain bonds, for example, real estate is a source of collateral for mortgage backed securities.

Coupon The stated interest rate on a bond that is used to calculate interest payments that are payable to bond holders. A coupon rate of interest can be fixed over the life of the bond or a variable rate of interest that is calculated using a formula described in the offering documents. Floating coupon rates are generally a simple spread (or margin) relative to a stated index (such as LIBOR). Many bonds include caps and floors on the coupon interest rate and some contain more complex formulas.

Convexity An incremental measure (along with the linear measure of duration) to capture the curvature of a bond’s price/yield relationship. Practically, negative convexity indicates the upside price of a bond is limited if rates fall due to embedded options (mortgage prepayments or an issuers ability to call the bond).

Current Face (Par Amount) Computed by multiplying the original face by the current factor, represents principal remaining for an investor to receive.

Current Index The level of the index at a specified moment in time that is used in conjunction with the margin to establish the security’s coupon.

Effective Duration Or “option-adjusted duration” measures interest rate risk of a security considering the impact of optionality and possible changes in future interest rates. It is calculated by averaging the percentage changes in the security's value under the higher and lower rate environments, while 25bp, 50bp or other sized yield shifts are commonly used, the rate of change is restated as a 100bp equivalent by simple multiplication.

Enhanced Credit Rating A rating that reflects the underlying issue’s standalone credit quality as well as any credit support provided by a state credit enhancement program.

Factor Relevant for bonds that pay amortizing principal to bond holders. The factor equals the percentage of the original face that is outstanding.

Floor For adjustable-rate securities, it is the lowest level to which a coupon can fall over the life of the security Forward Curve The forward curve is a graph that defines the prices (yields) at which a contract for future delivery or payment can be concluded today, it represents a term structure of forward rates.

Gross WAC The weighted-average mortgage rate of all the loans in a pool.

Initial Reset Date The date on which an adjustable-rate mortgage (ARM) or underlying mortgage in an ARM pool can reset for the first time.

Internal Rate of Return A sector or portfolio yield to expected maturity based on the portfolio's expected cash flows, treated as a single instrument. The reflects the overall yield to expected maturity of the portfolio, not a monthly earnings rate. On a single bond, IRR is the same as yield.

Lifetime Cap For adjustable-rate securities, it is the highest level that a coupon may attain over the life of the security.

Margin The amount added to the index of a floating rate loan or security (such as an adjustment rate mortgage security) in order to calculate a coupon rate of interest.

Market Yield The yield of a bond at current market price. For a bond you own, an indication of what yield the market will pay you today for the bond.

Months to Roll (MTR) Months remaining until a bond’s coupon will next reset Pay Window For CMO’s, the expected date range to receive principal payments.

Prepay Speeds Prepayments occur when a servicer receives principal payments above the scheduled amount. The velocity of the prepayments is measured using prepayment speeds, typically measured using conditional prepayment rate (CPR) or prepayment speed assumption (PSA).

Price Volatility The percentage change in price for a given a change in interest rates. Price volatility is generally calculated using a parallel, instantaneous shock in a benchmark yield curve assuming constant spreads relative to the benchmark curve.

Projected Call The date at which a callable bond is projected to be redeemed at a given level of interest rates. All things equal, higher rates should extend the date and lower rates should accelerate the redemption date.

Projected Yield at Book Annualized yield to maturity (or call) based on the book value of a bond and projected cash flows given the market conditions at the time of the analysis.

Roll Date The date (or weighted average date) that a bond’s coupon can reset Static Cash Flow Gap Estimate In the absence of more robust Earnings at Risk simulations, an estimate of how sensitive a depository’s margin is to movements in interest rates by comparing the amount and sensitivity of repricing Assets and Liabilities. A positive gap indicates more assets repricing than liabilities (asset sensitive) and a negative gap indicates more liabilities repricing than assets (liability sensitive).

Tranche Class of debt securities issued as part of a bond instrument, each part (tranche) characterized by a unique set of features such as maturity, interest (coupon) rate, interest payment date, to suit the needs of different investors.

Underlying Credit Rating A rating issued by an agency assessing the ability of an issuer to repay its debt. The assessment of creditworthiness is based solely on the obligor and does not include enhancements from a third party.

Weighted Average Life (WAL) The weighted-average time in years that the principal of a security is expected to be outstanding. For mortgage securities and callable bonds, average life varies with prepayment speeds and yield curve assumptions.

Weighted Average Loan Age (WALA) The average age of all mortgages in a pool, weighted by current balance.

Weighted Average Maturity (WAM) The average remaining maturity of the underlying mortgages in a pool, weighted by current balance.

Yield at Book Price On a sector or portfolio summary level, this is a book value-weighted average yield. It reflects expected earnings in the current month. Over time, relatively low (or high) yields may mature, increasing (or decreasing) subsequent months' expected earnings versus the initial weighted average.

Yield Contribution For a given a sectors weight, how much yield does it contribute to the overall portfolio.

Addendum
Key Terms and Definitions
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Yield to Maturity (YTM) The single yield that makes the present value of the cash flows to maturity equal to the price plus accrued interest.

Yield to Call (YTC) The single yield that makes the present value of the cash flows to the call date equal to the price plus accrued interest.

Yield to Worst (YTW) The lower of the yield to maturity and the yield to call.

Addendum
Key Terms and Definitions
42 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Addendum > Key Terms As of: 9/2025, Created: 10/7/2025 8:19:22 PM

City Council Staff Report

DATE: NOVEMBER 4, 2025

TO: HONORABLE MAYOR PRO TEM AND CITY COUNCIL

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

SUBJECT: APPROVE AGREEMENT WITH WILLDAN FINANCIAL SERVICES

FOR COMPREHENSIVE PROFESSIONAL SERVICES TO

COMPLETE A FULL COST -OF-SERVICE AND USER FEE STUD Y

FOR THE CITY OF PALMD ALE, FOR A TOTAL NOT TO EXCEED
AMOUNT OF $150,000 FOR A TERM OF 1 YEAR

RECOMMENDATION

Staff recommend that the City Council:

1. Approve Agreement No. A -9597 with Willdan Financial Services for comprehensive professional services to complete a full cost -of-service and user fee study for the City of Palmdale, for a total not to exceed amount of $150,00 for a term of 1 year; and,

2. Authorize the Interim City Manager or his designee to execute Agreement No. A- 9597 with Willdan Financial S ervices, including minimal and/or non -substantial changes.

BACKGROUND

The Government Finance Officers Association (GFOA) Best Management Practices recommend that fees be reviewed and updated periodically. Regular review ensures fees reflect current practices, accurately account for the full cost of providing services, include overhead and indirect costs, and maximize appropriate cost recovery. The City’s most recent fee study was completed in 2018.

User fees help fund programs and services that primarily benefit individual users rather than the community as a whole. When these fees are not set at full cost recovery, t he General Fund subsidizes the difference, reducing funds available for broader community needs. Cities have flexibility in determining fee levels and the extent of any subsidy.

Report to Mayor Pro Tem and City Council
Re: Approve Agrmt. No. A-9597 with Willdan Financial Services November 4, 2025

Page 2 ends

The City’s fees are based on the cost recovery principle, meaning revenues fro m fees cannot exceed the reasonable cost of providing the related service. Fees are calculated using fully burdened hourly rates multiplied by the average time spent delivering each service.

Given inflation and operational changes since 2018, a new fee study is needed to ensure current fees align with the true cost of services. This study will likely result in fee adjustments, removal of outdated charges, and introduction of new fees where appropriate.

DISCUSSION

On August 5, 2025, the City released Reque st for Proposal (RFP) No. 26 -001-1800 through PlanetBids, which was also published in the Antelope Valley Press. The RFP sought qualified professional firms to conduct a comprehensive citywide user fee and cost-of-service study that complies with the California Constitution and Statutes (including Propositions 26 & 218), the California Code of Regulations, and the Palmdale Municipal Code (PMC).

The scope of work will include, but not be limited to:
 Evaluating the City’s current fee structure for compliance and effectiveness;  Recommending cost recovery strategies tailored to the operational realities of each department;
 Identifying best practices for establishing and maintaining user fees;  Comparing the City’s fee structure with surrounding jurisdictions;  Exploring opportunities for new and updated revenue sources; and,  Potentially support public outreach or stakeholder engagement related to the study.

Four proposals were received by the September 9, 2025, deadline, and are summarized below:

Bidder Location
Government Consulting Partners, Inc. Granite Bay, CA
Matric Consulting Group, LTD. San Mateo, CA
MGT Impact Solutions, LLC Tampa, FL
Willdan Financial Services Anaheim, CA

Staff evaluated each proposal based on four criteria: project management and methodology, project approach and capabilities, project staffing, and cost. Based on this review, Willdan Financial Services submitted the most responsive proposal.

Report to Mayor Pro Tem and City Council
Re: Approve Agrmt. No. A-9597 with Willdan Financial Services November 4, 2025

Page 3 ends

FISCAL IMPACT

$150,000; Funds are budgeted and available in FY 2025-26.

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.

ATTACHMENTS

Agrmt No. A-9597 with Willdan Financial Services
AGREEMENT NO. A-9597

CONTRACT FOR CONSULTANT SERVICES

BETWEEN THE CITY OF PALMDALE AND WILLDAN FINANCIAL SERVICES

THIS CONTRACT FOR CONSULTANT 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 WILLDAN FINANCIAL SERVICES (hereinafter called “CONSULTANT”). This Contract shall become effective on the date of the last signatory.

RECITALS
WHEREAS, City desires to engage CONSULTANT to provide certain consultant services; and
WHEREAS, CONSULTANT represents that CONSULTANT has the expertise and is qualified to perform the services described in this Contract. And, if required, is duly registered under the laws of the State of California; and WHEREAS, CONSULTANT desires to accept such engagement.

NOW, THEREFORE, the parties agree as follows:
1 DESCRIPTION OF WORK

1.1 The City hereby engages CONSULTANT, and CONSULTANT accepts such engagement, to provide the following services:

The CONSULTANT shall provide comprehensive professional services to complete a full cost-of-service and user fee study for the City of Palmdale. The study shall identify the total cost of providing City services and recommend appropriate fees based on a cost recovery analysis.

1. Project Management and Methodology
• CONSULTANT will provide the CITY with a detailed description of the proposed approach and methodology for completing the study.
• CONSULTANT will identify any additional tasks or recommendations beyond those listed in this RFP that are necessary to meet the CITY'S objectives. • CONSULTANT will ensure that all work is conducted in a manner that is transparent, collaborative, and tailored to meet the specific needs of the CITY.

2. Project Initiation and Stakeholder Engagement
• CONSULTANT will Collaborate with designated CITY staff to define the objectives, 1-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE
intended uses, and scope of the fee study.
• CONSULTANT will review the project schedule, clarify study components, and address questions during an initial kickoff meeting.
• CONSULTANT will meet with key department representatives within the CITY and conduct interviews, as needed, to understand current service delivery processes, operations, and fee structures.
• CONSULTANT will maintain regular communication with the CITY’S project team to ensure alignment, clarity, and timely issue resolution.

3. Data Collection and Analysis
• CONSULTANT will conduct a comprehensive review of all existing CITY user fees, rates, and charges.
• CONSULTANT will work with the Finance Division and other departments to develop clear service definitions, cost categories, and cost allocation methodologies. • CONSULTANT will Identify the full cost of providing each CITY service at the appropriate activity level, in compliance with applicable federal, state, and local laws and guidelines (e.g., OMB 2 CFR Part 225 and Circular A-87, Proposition 26, Proposition 218).
• CONSULTANT will compare calculated service costs with current recovery levels and highlight service areas where adjustments may be warranted. • CONSULTANT will Identify the full cost of providing each CITY service consistent with all applicable laws, statutes, rules, and regulations governing the collection of fees, rates, and charges by public entities.
• CONSULTANT will evaluate opportunities to establish fees for services currently offered at no cost, especially in comparison to peer or neighboring jurisdictions. • CONSULTANT will Identify any factors such as statutory limitation, market conditions or other policy and service considerations which could prevent the implementation of a fee structure based on recovery of costs. • CONSULTANT will review costs of municipalities/jurisdictions with similar demographics to compare (i.e. Lancaster, Victorville)
• CONSULTANT will review and provide guidance for subsidized Parks and Recreation programs and activities fee structures by evaluating similar programs in 2-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE
other municipalities/jurisdictions.
• CONSULTANT will review and provide guidance for fees related to specialists the City may need to procure for the review of plans. (Structural, Mechanical, etc.). • CONSULTANT will review and offer recommendations for construction impact fees.

4. Fee Recommendations and Revenue Strategy
• CONSULTANT will recommend new or updated fees and charges based on cost analysis, operational demands, and policy considerations. • CONSULTANT will recommend cost recovery levels and appropriate subsidy percentages where full recovery is not feasible or desired. • CONSULTANT will identify best practices and strategies for cost recovery tailored to each department’s operations and complexities.
• CONSULTANT will provide technology recommendations along with anticipated costs/fees for that technology to support the suggested activity/service. • CONSULTANT will provide guidance on long-term fee maintenance, including policy and procedural recommendations for future fee updates.
• CONSULTANT will provide fee structure and valuation table for tenant improvements, relating specifically to Building Permits

5. Deliverables and Fee Model
• CONSULTANT will prepare a draft report summarizing the full cost of service for each applicable fee, current and proposed fee levels, service charges, and recommended cost recovery strategies. Include at a detailed level the present fees, recommended fees, percentage change, cost recovery percentage, revenue impact, and fee comparisons with other neighboring cities or cities in the region that are comparable to Palmdale.
•Develop and deliver an Excel-based fee model that:
- CONSULTANT will Calculate the fully burdened hourly rates, including salary, benefits, and overhead;
- CONSULTANT will track and documents changes in personnel (e.g., new hires, salary steps, and reclassifications);
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- CONSULANT Includes annual inflator options for benefit cost increases (e.g., CalPERS, insurance premiums, payroll taxes);
-CONSULTANT will include inflators for annual increases in contracted service costs; - CONSULTANT will allow for fee updates based on changes to cost assumptions or policy decisions.
- CONSULTANT will include methodology for adjusting fees for the next five years, ensuring staff are trained to update annually.

6. Presentations and Final Report
• CONSULTANT will present findings, draft recommendations, and the fee model to City staff, City Council, and other stakeholders for review and input. Comments and concerns should be collected during this draft phase for inclusion in the final study. • CONSULTANT will be prepared to present findings for key areas based on current and upcoming developments.
• CONSULTANT will prepare an Executive Level Summary with key takeaways, essential information, and recommendations.
• CONSULTANT will participate in meetings and workshops, including presentations to City Council and/or advisory committees as determined by staff. These meetings /workshops will be at the guidance and discretion of City Management. Document all comments and concerns for the final version of the Study. • CONSULTANT will collect feedback from staff and Council members, incorporate edits, and finalize the report accordingly. Document all comments and concerns for the final version of the Study.
• CONSULTANT will provide all final documents, models, and supporting materials in both editable and PDF formats. Attend the City Council meeting where the final Master Fee Study is presented to respond to questions as needed.

7. Additional Considerations
• CONSULTANT will identify and report any additional findings, opportunities, or issues that come to the consultant’s attention during the course of the study that, in the CONSULTANT'S professional opinion, should be brought to the CITY'S attention for consideration.
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• CONSULTANT will consult with CITY staff should it become necessary to defend the CITY’S fees as a result of any legal or other challenge.

CONSULTANT shall perform and complete all such work and services in a manner satisfactory to CITY.

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 CONSULTANT 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 CONSULTANT, 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 MANAGER
To provide the services required by this Contract, CONSULTANT shall act under the authority and approval of a Project Manager appointed by CITY. The City Project Manager will oversee the work under this Contract, assist CONSULTANT with any necessary information, audit billings, and approve payments. CONSULTANT shall channel reports, deliverables, and special requests through the City Project Manager. 3 CONSULTANT’S KEY PERSONNEL
CONSULTANT’s Team and Key Personnel are as follows:

Tony Thrasher, Principal Consultant
This Consultant Services Contract has been awarded to CONSULTANT based on its representation that those personnel and subcontractors listed above will perform the portions of the work listed herein. CONSULTANT shall not deviate nor substitute any of these team members without prior written approval by CITY. 4 CONTRACT TERM
The term of this contract is ONE (1) YEAR, commencing on the effective date, with CITY reserving the option to extend the agreement for 0 additional terms of one year each.
5 TAXES
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5.1 CONSULTANT shall pay all sales, consumer, use, and other similar taxes required to be paid by CONSULTANT in accordance with state and local laws.

5.2 CONSULTANT 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 CONSULTANT or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.

5.3 CONSULTANT 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 ROYALTIES
CONSULTANT 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. CONSULTANT 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 PERFORMANCE
CONSULTANT 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. CONSULTANT 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.
8 CONSULTANT’S PERSONNEL

8.1 All services required under this Contract shall be performed by CONSULTANT, or under CONSULTANT’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 CONSULTANT shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this 6-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE
Contract, and compliance with all reasonable performance standards established by CITY.

8.3 CONSULTANT shall be responsible for payment of all CONSULTANT’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 CONSULTANT shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all claims, demands, damages or costs arising from CONSULTANT’s acts or omissions with respect to any liability, damages, claims, costs and expenses of any nature arising from alleged violations of personnel practices.
9 COMPENSATION

9.1 For all of work and services including the various phases of tasks as described in Section 1, CITY shall pay to CONSULTANT an amount not to exceed the sum of ONE HUNDRED AND FIFTY THOUSAND dollars ($150000), payable as follows:

PLEASE SEE EXHIBIT A
The Contract Price is CONSULTANT’S estimate of its charges for all of the services, including all labor, equipment, material, subcontractor and reimbursable costs, to be provided under this Agreement. Progress payments shall be made on a time and material basis. Final payment shall be made upon completion of all services and City acceptance of all deliverables, not-to-exceed the Contract Price.

9.2 CONSULTANT shall perform no work in excess of the total contract price without prior written approval of CITY. Total contract price includes expenses related to travel to and from CITY to meet with City and to appear, if so required, before City Council or any other board or commission of CITY.

9.3 CONSULTANT shall maintain adequate records and shall permit inspection and audit by CITY of CONSULTANT’s charges under this Contract. CONSULTANT 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 CONSULTANT 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 CONSULTANT shall retain its records for the time required by such laws.

9.4 No payment made hereunder by CITY to CONSULTANT, shall be construed as an acceptance by CITY of any work or materials, nor as evidence of satisfactory performance by CONSULTANT of its obligations under this Contract. 7-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE
10 INDEMNIFICATION
To the fullest extent permitted by law, CONSULTANT and any contractors or subcontractors working on its behalf agree to indemnify CITY, its officers, employees, agents and elected and appointed boards (hereinafter “Indemnified Parties”) for any loss, claim, demand, cause of action, cost, expense, damage, obligation or liability which arises out of or is in any way connected with the performance of any work under this agreement, including any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONSULTANT, its contractors or subcontractors, and regardless of any acts, omissions or negligence (whether active or passive) of any person or entity indemnified hereunder. At their own expense, CONSULTANT and, as applicable, any contractors or subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONSULTANT shall ensure that the contract of any contractor or subcontractor working under this agreement contain an indemnity agreement, requiring the contractor or subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONSULTANT shall indemnify the Indemnified Parties, and save it harmless from any and all loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
11 INSURANCE

11.1 CONSULTANT, 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*  $1,000,000 limit on a per occurrence basis

11.1.3 Commercial General Liability
 $1,000,000.00 limit on a per occurrence basis
 $2,000,000.00 general aggregate limit

8-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE

11.1.4 Commercial Automobile Liability
 $1,000,000.00 combined single limit including owned, non-owned and hired automobile coverage

11.2 All of CONSULTANT’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: “The City of Palmdale, the Successor Agency of the Community Redevelopment Agency of the City of Palmdale, Palmdale Civic Authority, Industrial Development Authority of the City of Palmdale, Palmdale Airport Authority, their officers, agents, employees and volunteers are named as additional insured’s.”
B. “Severability of Interest” clause.

11.4 Promptly on execution of this Contract, and prior to commencement of any work, CONSULTANT shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONSULTANT has the required coverage and showing the required named insureds. Within five (5) days of written request from CITY, CONSULTANT 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 CONSULTANT are not intended to and shall not in any manner limit or qualify CONSULTANT’s liabilities and obligations under this Contract.

11.6 Any policy or policies of insurance that CONSULTANT 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 coverage must be maintained throughout the duration of this Contract.

11.8 Acceptable Proof of Insurance:
9-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE

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”, CONSULTANT 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 CONSULTANT, 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 CONSULTANT 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 CONSULTANT 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 CONSULTANT shall be subject to all other insurance requirements that are stated herein.

Any deviation in this requirement will be CONSULTANT's sole risk. CONSULTANT'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, CONSULTANT shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and sub-consultants to cease such work. CONSULTANT 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 CONSULTANT 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.
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13 TERMINATION FOR CAUSE

13.1 If the City determines that the CONSULTANT 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 CONSULTANT 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 CONSULTANT 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 CONSULTANT to provide all finished or unfinished documents, data, studies, software, drawings, maps, photographs, reports, etc., prepared by the CONSULTANT. Upon such termination, the CONSULTANT 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 CONSULTANT to complete the services. In the event no new CONSULTANT is employed, the CONSULTANT 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 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 CONSULTANT 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 RESOLUTION
All claims, disputes, and other matters in question between CITY and CONSULTANT 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 DOCUMENTS
All documents, including, but not limited to, research, field notes, investigations, analysis, and studies which are prepared in the performance of this Contract are to be, and remain the property of CITY. CONSULTANT shall furnish CITY, upon its 11-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE
request, originals or reproducible or electronic copies of reports, studies and of all other documents listed above.
16 SUBCONTRACTING, DELEGATION AND ASSIGNMENT

16.1 CONSULTANT 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 CONSULTANT 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, delegates 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, delegates or subcontractor shall include the following:

A. The amount involved, together with CONSULTANT’s analysis of such cost or price; and
B. 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.

16.2 Any assignment, delegation or subcontract shall be made in the name of CONSULTANT and shall not bind or purport to bind CITY and shall not release CONSULTANT from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONSULTANT under this Contract.
17 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY

17.1 In performance of this Contract, CONSULTANT 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. CONSULTANT will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation 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.

17.2 The provisions of subsection 17.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONSULTANT for personnel to perform any 12-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE
services under this Contract. CITY shall have access to all documents, data and records of CONSULTANT 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. 18 FINANCIAL INTEREST CERTIFICATION

18.1 CONSULTANT 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 CONSULTANT’s firm.

18.2 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.
19 CONFLICT OF INTEREST

19.1 CONSULTANT 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 CONSULTANT 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.

19.2 CONSULTANT shall not employ any City official or employee to perform any work required pursuant to this Contract.

19.3 If CONSULTANT is a registered professional engineer or licensed land surveyor and the scope of work requires CONSULTANT’S recommendation of the actual formula to spread the costs of an assessment district’s improvements, then CONSULTANT 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) CONSULTANT 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 CONSULTANT received the income. In the event a conflict of interest does arise in that context, City shall select a different CONSULTANT 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 CONSULTANT. 13-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE

19.4 To the extent required by the City Manager/designee, CONSULTANT 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.
20 COMPLIANCE WITH LAW

20.1 CONSULTANT 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 CONSULTANT uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by CONSULTANT.

20.2 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. 21 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
22 ENTIRE CONTRACT AND AMENDMENTS

22.1 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.

22.2 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 CONSULTANT hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.

22.3 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. 14-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE

23 ATTORNEY’S FEES
If any action at law or in equity is brought to enforce or interpret any provisions of this Contract, the prevailing party in such action shall be entitled to reasonable attorney’s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.

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

CITY OF PALMDALE: WILLDAN FINANCIAL SERVICES:

Salvador Mendez
Interim City Manager

Chris Fisher
Vice President/Director
ADDRESS FOR NOTICE:

CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550

ADDRESS FOR NOTICE:

WILLDAN FINANCIAL SERVICES
27368 Via Industria Suite 200
Temecula, CA 92590
APPROVE AS TO FORM:

Alexandra Severino
City Attorney

ATTEST:

Roxanne Faber
City Clerk

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

■Certificate(s) and Endorsement(s) attached
■Confirmed business name on contract with certificate(s) ■Attached Agreement Checklist and met all requirements
15-15Concord - Document ID: 031KRa7hOuS4S2G4w3REmE
Record of Signing
Signed with https://www.concord.app/
For
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Title
Signed on Oct 15, 2025 6:37 PM UTC
Secured by Concord™
DocumentID: 031KRa7hOuS4S2G4w3REmE
SigningID: 031KRa7h0jb4VAjUehrkA8
UTC Signing time: 2025-10-15 18:37:32 UTC
IP Address: 206.171.111.149
Email: [email protected]
For
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Signed on Oct 27, 2025 3:36 PM PDT
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DocumentID: 031KRa7hOuS4S2G4w3REmE
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IP Address: 137.83.224.213
Email: [email protected]

Comprehensive Fee Study 1
City of Palmdale, CA
G. Cost Proposal
Willdan proposes a fixed fee of $39,730 to conduct the Comprehensive Fee Study on the City’s behalf. The table below provides a breakdown of the fee to complete each study by task and project team member.

Notes
▪ Our fee includes all direct expenses associated with the project. ▪ We will invoice the City monthly based on percentage of project completed. ▪ If the City wishes for Willdan to attend additional in-person meetings, the fee is $1,850 per meeting. ▪ The City shall reimburse Willdan for any costs Willdan incurs, including without limitation, copying costs, digitizing costs, travel expenses, employee time and attorneys' fees, to respond to the legal process of any governmental agency relating to City or rel ating to the project. Reimbursement shall be at Willdan's rates in effect at the time of such response.
▪ The cost of preparing the user fee study can be included in the resulting new user fee schedule. Therefore, over time, the City can recover the initial outlay of funds that was required to complete the studies. ▪ Willdan will rely on the validity and accuracy of the City’s data and documentation to complete the analysis. Willdan will rely on the data as being accurate without performing an independent verification of accuracy and will not be responsible for any errors that result from inaccurate data provided by the client or a third party.

Hourly Rates
Additional services may be authorized in writing by the City and will be billed at our then current hourly consulting rates.

Our current hourly rates are identified in the table below.

Willdan Financial Services
Hourly Rate Schedule
Position Team Member Hourly Rate Position Team Member Hourly Rate Vice President / Director Chris Fisher $310 Managing Principal $300 Principal Consultant Tony Thrasher $270 Principal Consultant Bob Quaid $270 Senior Project Manager $250 Project Manager Priti Patel $210 Senior Project Analyst Samantha Labitan $150 Senior Analyst $135 Analyst II $120 Analyst I $110

EXHIBIT A

CITY OF PALMDALE
Comprehensive Fee Study

CALIFORNIA

T 951.587.3500  800.755.6864 | F 951.587.3510  888.326.6864 | 27368 Via Industria, Suite 200, Temecula, CA 92590 | www.willdan.com 33 Cost Proposal – Exhibit J

September 9, 2025
Purchasing Division
City of Palmdale
38250 Sierra Highway, 2
nd Floor
Palmdale, CA 93550
Re: Proposal to Conduct a Comprehensive Fee Study f or the City of Palmdale Dear Purchasing Division,
Willdan Financial Services (“Willdan”) is pleased to present the following fee proposal to the City of Palmdale (“City”) for a Comprehensive Fee Study.

This submission reflects our understanding of the City’s Request for Proposal (RFP).

Willdan is excited about this opportunity to serve the City of Palmdale. To discuss any aspect of our technical and/or fee proposal, please contact me directly at (951) 587-3528 or via e-mail at [email protected] .

Sincerely,

WILLDAN FINANCIAL SERVICES

Chris Fisher
Vice President / Director

Comprehensive Fee Study 1

City of Palmdale, CA
G. Cost Proposal
Willdan proposes a fixed fee of $39,730 to conduct the Comprehensive Fee Study on the City’s behalf. The table below provides a breakdown of the fee to complete each study by task and project team member.

Hourly Rates
Additional services may be authorized in writing by the City and will be billed at our then current hourly consulting rates.

Our current hourly rates are identified in the table below.

www.willdan.com

Comprehensive Fee Study 19

City of Palmdale, CA
Comprehensive Fee Study
Our proposed work plan, described in detail by task , is provided below. We explain how each task will be accomplished and identify associated meetings and deliverables. We want to ensure our scope provides quality and clarity and is responsive to the City’s needs and specific local circumstances. We will work in conce rt with the City to adjust the scope as needed during the course of the study.

Task 1: Initial Document Request
Objective: Initial due diligence; and obtain study-related data.

Description: Prior to the kick -off meeting, we will obtain and review relevant documentation to further enhance our understanding of the services, fees, and rates to be studied. A written request for data will be sent to the City. Please note that Time Survey data is n ot part of this request and will be gathered during the interviews described in Task 5.

We will request information, data sets, and documentation on current fees and fee programs, activity levels, and budget and staffing information (to the extent not already available) related specifically to programs and activities which have associated fees. We will also request detail and data from the City’s existing financial records and cost allocation information so that overhead costs can be incorporated into the cost-of-service analysis to support updated fee recommendations.

Deliverables: Willdan: Submit information request to City.

City: Provide requested data to Willdan (prior to Task 3, Kick-off Meeting/Refine Scope). We will follow up with the City to confirm receipt of requested data and information and highlight data elements that are outstanding.

Task 2: Compile and Review List of Current and Potential Fees/Review Existing Cost Allocation Method Objective: Willdan will identify the schedule of fees and develop the methodology for calculating the fees, obtain and review the City’s current CAP methodology and approach to allocating indirect service costs, and obtain staffing, salary, and benefit information.

Description: Based on the results of the initial document request and independent research, incorporate into our model the existing fees, provided by the City, to comprise the parameters of the fee study. We will review the existing fee schedule to ensure consistency and that it addresses areas where fees could be charged for services being provided and confer with Staff to identify potential new fees.

As mentioned in the Project Understanding, we will work with staff to incorporate reasonable indirect overhead factors from the City’s current Cost Allocation Plan to ensure the costs associated with central service overhead support are included in the full cost of providing services.

Reasonable indirect cost allocation percentages will be used in Task 4 to calculate departmental overhead rates and fully-burdened hourly personnel rates. We will gather and review data and supporting analysis as necessary, related to the City’s cost allocation approach. This information will be used to verify or calculate the allocation of indirect service costs to operating departments, and then will be incorporated with staffing, and salary and benefit data to develop a comprehensive schedul e of Fully - Burdened Hourly Rates (FBHR). These rates will form a basis for the calculation of the costs of providing services to residents and customers, for which fees are charged.

Meetings: It is possible that a conference call with the City may be necessary to discuss new fees to implement or existing fees that may no longer be required.

Deliverables: Willdan: One (1) draft list of current fees based on initial data provided (to be discussed and finalized during the kick-off call).

City: Review completed fee schedules with comments/revisions to be discussed during the kick-off meeting.

Comprehensive Fee Study 20

City of Palmdale, CA
Task 3: Kick-off / Refine Project Requirements, Objectives and Scope Objective: Confirm goals and objectives for the Comprehensive User Fee Study. Identify and discuss policy matters typically raised, address gaps in data, and refine appropriate existing or new fee categories (based on Task 2).

Description: Verify our understanding of the City’s goals, the City’s cost -recovery policies for user fees, and fill gaps in data/information necessary for the project. It is important for the City and Willdan to identify and address any foreseeable problems and maintain open communication throughout the process.

During this discussion, we will ask that the City identify a project manager who will serve as the primary contact for the project. The project manager shall have responsibility for ensuring that all available data is provided in a timely manner, thereby maintaining adherence to the project’s schedule.

Meetings: One (1) project kick-off call/web meeting to initiate the project, discuss data needs, and address policy matters.

Deliverables: Willdan: 1) Revised project approach, scope and schedule (if needed); and 2) brief summary of policy decisions
(if needed).

City: 1) Provide further data needs; and 2) determine/introduce City’s project manager.

Task 4: Develop Comprehensive Fee Model/Incorporate Overhead/Develop Overhead Rates & FBHR Objective: Develop and test fee model and incorporate overhead factors.

Description: This task involves the development of the model ultimately used to calculate fees, based on data and information gathered in previous tasks and in the Time Survey Interviews described in Task 5. To ensure that City policies are met through the imposition o f the calculated fees, the model will be formatted to include appropriate costs.

We will utilize the data from the City’s current Cost Allocation Plan to develop and determine the appropriate indirect cost factors and overhead rates to apply to personnel rates, to develop fully burdened hourly rates per the City’s employee structure . These rates will serve as a basis for calculating the full cost of providing services. Alternatively, a simplified indirect rate could be calculated as part of this phase to determine a citywide indirect rate to use for central service cost inclusion in th e cost of services.

Key model inputs will include staff and allocated overhead costs per position, and relevant budget data on staffing, salaries and benefits. This information will be obtained directly from the City and incorporated directly into the user fee model. We will request clarification and/or additional data if necessary. We will also update, as appropriate, available fee volumes (occurrences) and revenue generation.

The model will provide an allocation of administrative and overhead costs to fee related activities, so that fees and billable rate schedules incorporate applicable costs. Furthermore, the fees and rates charged to customers will also reflect the cost of the services being provided, to the extent possible given policy and/or political considerations.

Deliverables: Willdan: One (1) user-friendly model in Microsoft Excel format, which, when finalized, City Staff can use to calculate fee changes annually, or as often as deemed appropriate by the City Council, and a schedule of Fully-Burdened Hourly Rates.

Task 5: Time Survey Interviews and On-site or Virtual Information Gathering Objective: Meet with City Staff to complete Time Surveys and verify staffing and structure to better understand service delivery processes.

Description: In order to assist staff with the completion of the survey worksheets, we will schedule up to one-and-a- half business (1.5) day s of meetings with staff; however, the number of meetings needed may vary depending on the number of staff involved.

The Willdan Team will conduct interviews with managers, as well as other staff , as deemed appropriate and/or necessary, to understand the processes and staffing involved in delivering fee-based City services and determine the average time required by City Staff to provide each of the services. During this process we will identify instances of cross-departmental support and calculate associated costs.

Comprehensive Fee Study 21

City of Palmdale, CA
The fee model is designed so that full cost recovery fees are calculated immediately upon input of staff time. These full costs are also compared to current cost recovery levels.

This will allow Willdan and City Staff to conclude with a final meeting to review the draft full cost recovery fees and adjust any times as necessary once all information has been compiled and input into the fee model. We will schedule the interviews with City Staff to minimize any disruption to their normal workflow.

Meetings: One-and-a-half (1.5) business days of meetings/staff interviews. These will likely be conducted virtually using Zoom or WebEx, depending on City Staff availability. We have received feedback that many cities find virtual meetings to be more efficient as th ey allow for more flexible scheduling and more focused conversation. We will discuss this with City Staff and if in-person meetings are preferred, we can adjust and proceed accordingly.

Over the past three years we have used these virtual tools very successfully and found them to be highly effective and efficient, particularly for follow-up questions and/or discussions.

Deliverables: Willdan and City: Time surveys and draft full cost recovery fees.

Task 6: Data Analysis, Calculate Full Cost of Providing Services, Final Fee Schedule Objective: Incorporate information obtained from interviews and surveys to fully develop model and calculate the cost of providing services.

Description: We will update the model, based on information received during the interviews with City Staff, to generate a comprehensive fee schedule. In addition, it is quite common that a supplemental data request may be necessary, based on new fees identified that the City is not currently collecting.

Where appropriate, we will suggest and discuss with staff alternate approaches to existing fee programs (i.e. deposit vs. straight fee, valuation, etc.) and suggest potential areas where fees could be collected, where they are not currently.

We will calculate and present the full and total cost of service and full cost recovery level for fees, both current and projected under the new calculated fees, and revenue projections, given certain assumptions about the levels of subsidy for different fees.

We will begin the discussion of subsidies and fee -setting, and the implementation of policy and political objectives. We will provide guidance based upon our recent experience as to policy factors and approaches used by other similar cities.

Current levels of cost recovery will be compared to actual full costs calculated during the course of this study. Cost will be calculated at reasonable activity levels and include all appropriate direct and indirect costs and overhead. We will review fee p rograms for compliance with Propositions 218 and 26.

The fee data analysis and model development may take three (3) to five (5) weeks with frequent correspondence with City Staff to discuss current cost recovery amounts, necessary to recover full cost and frequency activity.

Meetings: Virtual meetings and/or conference calls, as necessary, to gather additional input, complete analysis and finalize fee schedule.

Deliverables: Final user fee model for the City Council presentation and discussion.

Task 7: Common Fees Comparison
Objective: Examine up to fifteen (15) fees from up to five (5) comparable cities/agencies in Los Angeles County, or jurisdictions that are similar in either geography or profile to the City of Palmdale.

Description: We will access and use our knowledge of other jurisdictions to benchmark all applicable fees for up to five projects as determined by City Staff and Willdan. The purpose is to select sample projects (such as a 5-unit residential project or a 10,000 square foot commercial building) that the City may reasonably expect to encounter, and determine the total fee burden, as compared to the other selected cities.

Fee schedules are rarely readily or directly comparable from agency to agency due to definitional and operational differences. For example, a grading permit in one jurisdiction may include the plan check service, while the same permit in another jurisdiction may not, resulting in similar sounding services with widely varying costs.

The survey will contain the following, a comparison of fees and charges used by the City and other jurisdictions for comparable sample projects; current and proposed fees and charges unique to the City of Palmdale; fees and charges used by other public entities not currently used in the City; and if possible,

Comprehensive Fee Study 22

City of Palmdale, CA
identify characteristics and processes unique to the City that account for significant variances in fees and charges used by other jurisdictions.

Deliverables: Willdan: Recommendations provided in Task 8 will incorporate the data gathered during our examination.

Task 8: Prepare and Present Draft Results and Report, Conduct Presentations Objective: Prepare and present draft results and report.

Description: This task involves the preparation of the draft report that discusses the study’s background, the methodologies utilized in the study. As noted below, meetings may occur during this or the next task as appropriate. The calculations used to generate the user fee study will be included textually, as well as in easy to understand tables. Individual fee summaries and a comprehensive fee schedule will be included as well. The draft report will include the following:
▪ Key results and findings;
▪ Current and recommended fees and charges, including percentage changes; ▪ Basic descriptions of each service;
▪ The full cost of each service and current cost recovery levels; ▪ Costs broken down graphically into indirect and direct components, with a graphic display of the level of cost recovery;
▪ Fee recommendations with associate levels of cost recovery; ▪ Projections of potential fee revenue;
▪ Assessment of reasonableness of each City’s costs;
▪ Fee comparisons completed in Task 7;
▪ As appropriate, recommend alternative methodologies for building permit fee calculation; and ▪ Summary and recommendations.

The objective of the report is to communicate the recommendation of appropriate fees, which include the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic.

Meetings: One (1) web meeting with City Staff to present the report, recommended fee structure, methodology and draft results, address questions, and receive feedback.

Deliverables: Willdan: Draft report for City review and comment.

City: Review of draft report, with comments and edits.

Task 9: Discuss and Revise Draft Report/Determine Cost Recovery Levels for Recommended Adoption Objective: Review and discussion of draft results, fee structure, methodology, report, and fee model.

Description: The goal of this task is to conduct an in -depth review of the draft results, report and model, incorporate feedback and changes as a result of previous discussions and meetings. Based on these discussions, and incorporating City fiscal objectives and limitations for subsidies, we will work with City Staff to arrive at a optimum fee levels and structures. During this Task, we will finalize the actual fee levels, with consideration given to policy and current practices.

Often through the course of an engagement, City Staff will volunteer insightful likes and dislikes regarding the existing fee structure. We listen to this feedback carefully because your staff members know the community best. Comments usually revolve around issues of:
▪ Understandability;
▪ Fairness to applicants;
▪ Ease of calculation;
▪ Appropriate levels of cost recovery; and
▪ Full cost recovery hourly rates.

When adjusting fee recovery levels, we believe it is important to address these concerns.

Up to two (2) meetings with City Staff and the City’s advisory committee to present the recommended fee structure, methodology and draft results, address questions, and receive feedback.

Comprehensive Fee Study 23

City of Palmdale, CA
Following one (1) round of comments and feedback from City staff and the task force on the methodology and draft report, we will prepare the final report for presentation to the City Council.

Meetings: Two (2) web meetings to review the model and report and finalize cost recovery levels.

Deliverables: Draft report, revised draft /final report.

Task 10: Prepare and Present Final Report/Instruct Staff on Model Objective: Prepare and present final report to the project study task force and City Council. Instruct staff on the operation and use of the model for future modifications.

Description: This task is the culmination of the entire project. Based on staff comments received regarding the draft report, we will prepare the final report for presentation. We will provide Staff with guidance on how to update the model in future years, to incorporate cost increases and changes in staffing or processes.

Meetings: One (1) conference call/web meeting with City Staff to discuss the presentation of the results . One (1) meeting to present recommended fee structure and methodology to the City Council to facilitate their understanding of the approach, analysis, results, recommendations and implications of the study. We will also provide staff training on the operation and use of the model on the same day, during regular business hours. Follow-up offline discussions may occur as necessary with City Staff to review questions and/or requested clarifications from the City Council. If requested, we will provide up to three (3) hours of consultation with the City should it be necessary to defend the City’s fees as a result of a legal or other challenge. Further time necessary to respond to a legal challenge would be beyond this scope of services, and would be billed at our hourly rates.

Deliverables: Provide one (1) bound hard copy, and one (1) electronic PDF file copy of the final report and models .

Using Microsoft Word and Excel, an updateable electronic copy of the study and models, as well as related schedules, will also be provided on CD/ROM.

Project Disclaimer
Willdan is a registered municipal advisory firm with the U.S. Securities and Exchange Commission (“SEC”), as such the City of Palmdale represents, acknowledges, and agrees that Willdan is not acting as a “municipal advisor” (as defined by the SEC), to the City of Palmdale, in any capacity as it relates to the project proposed in this Comprehensive Fee Study RFP.
(i) The City uses, or may use, the services of one or more municipal advisors registered with the SEC to advise it in connection with municipal financial products and the issuance of municipal securities; (ii) The City is not looking to Willdan to provide, and the City shall not otherwise request or require Willdan to provide any advice or recommendations with respect to municipal financial products or the issuance of municipal securities (including any advice or recommendations with respect to the structure, timing, ter ms, and other similar matters concerning such financial products or issues);
(iii) The provisions of this proposal and the services to be provided hereunder as outlined in the scope of services are not intended (and shall not be construed) to constitute or include any municipal advisory services within the meaning of Section 15B of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations adopted thereunder;
(iv) For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash -flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City , (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City , in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opini ons or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto; and (v) Notwithstanding all of the foregoing, the City recognizes that interpretive guidance regarding municipal advisory activities is currently quite limited and is likely to evolve and develop during the term of the potential engagement and, to that end, the City will work with Willdan throughout the term of the potential Agreement to ensure that the Agreement and the services to be provided by Willdan hereunder, is interpreted by the parties, and if necessary amended, in a manner intended to ensure that the City is not asking Willdan to provide, and Willdan is not in fact providing or required to provide, any municipal advisory services.

City Council Staff Report

DATE: NOVEMBER 4, 2025

TO: HONORABLE MAYOR PRO TEM AND CITY COUNCIL

FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT

PLANNING DIVISION

DISTRICT: 1

SUBJECT: RECEIVE AND FILE THE ANNUAL ACTIVITY REPORT FO R

DEVELOPMENT AGREEMENT PERTAINING TO THE

OASIS WELLNESS VILLAGE PROJECT LOCATED AT THE

SOUTHEAST CORNER OF PALMDALE BOULEVARD AND

TIERRA SUBIDA AVENUE

RECOMMENDATION

Staff recommend that the City Council:

1. Receive and file the annual activity report for Development Agreement (DA) No.

A-5595 pertaining to the Oasis Wellness Village project located at the southeast corner of Palmdale Boulevard and Tierra Subida Avenue.

BACKGROUND

On October 5, 2016, the City Council approved General Plan Amendment 15 -001, Zone Change 15 -001, and DA No. A-5595 (Resolution No. CC 2016 -083) and, subsequently, on January 12, 2017, the Planning Commission approved Planned Development 16 -001, Tentative P arcel Map 73748, and Site Plan Review 15 -006 (Resolution No. PC-2017-005) for the Oasis Wellness Village project.

The development , located at the southeast corner of Palmdale Boulevard and Tierra Subida Avenue, includes construction of a campus-style, mixed-use project composed of services and businesses centered on a theme of wellness and healthy living (Figure 1).

Report to Mayor Pro Tem and City Council
Re: Receive and File Annual Activity Report for DA No. A-5595 November 4, 2025

Page 2 ends

FIGURE 1 – SITE PLAN

DISCUSSION

In compliance with Section 9 of the DA and California Government Code Sections 65865.1 and 66006, the City is required to periodically review the DA (at least every 12 months). During the review period, the applicant or successor in interest must demonstrate good faith compliance with the terms of the agreement. If the review determines that the applicant or successor in interest has not complied with the terms or conditions of the agreement, the City may terminate or modify the agreement.

The DA requires the developer to provide certain benefits, outlined in Exhibits C and D of the agreement, and pay the City fees at specific timeframes during the development process. No fees or public benefit payments were required during the review period

Report to Mayor Pro Tem and City Council
Re: Receive and File Annual Activity Report for DA No. A-5595 November 4, 2025

Page 3 ends

(November 1, 2024, to November 1, 2025) as no development was proposed. Therefore, the applicant remains in compliance with the terms and conditions of the DA.

FISCAL IMPACT

$290 revenue; The applicant paid the processing fee specified within the City’s fee resolution

STRATEGIC PLAN

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

A. Management 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, Interim City Manager
Approved as to form: Alexandra Serevino, City Attorney

ATTACHMENT

Agrmt No. A-5595 Oasis Wellness Village Project

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THIS FORM IS NOT TO BE DUPLICATED
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RECORDED AT REQUEST OF

AND WHEN RECORDED RETURN TO
City of Palmda le
38250 5¡erra Highway
Palmdale, Ca liforn ia 93550
Attn: City lvla nager
Fee Exem- Gov't Code6103
(Space above for Recorder's Use)

DEVELOPMENT AGREEMENT
between

THE CITY OF PALMDALE,
a California munic¡pal corporation
and

PALMDALE INVESTMENT COMPANY, LLC,
a California limited liability company
A-5595
A-559 5
This Development Agreement (the "Agreement") is entered by and between the City of Palmdale, a California municipal corporation ("City"), and Palmdale Investment Company, LLC, a California limited liability company ("Owner"). City and Owner shall be referred to jointly within this Agreement as the "Parties."

RECITALS
A. To strengthen the public planning process, encourage private particìpation in comprehensive planning, and reduce the economic risk of development, the Legislature of the State of California adopted the "Development Agreement Statute," Sections 65864 et seq,, of the Government Code. City, a general law city, is authorized by the Development Agreement Statute to enter into development agreements with persons and ent¡ties havìng legal or equitable interests in real property for the purpose of establishing predìctability for both City and the property owner in the development process,
B. Owner has requested that City enter into a development agreement for property with the C¡ty and more particularly described in Exhibit "A" and depicted on Exhib¡t "8" (the "Property"). City enters into this Agreement pursuant to the provisions of the California Government Code, the City's General Plan, the City Municipal Code, and applicable City policies.

C. Owner has a legal or equitable interest in the Property and desires to develop on the Property the Oasis Wellness Village (the "Project"), a collection of state-of-t he-a rt continuum care facilities adjacent to the Palmdale Regional Medical Center which will bring critica lly-needed healthcare facilities within easy reach of the est¡mated 40-50% of the region's residents who now travel extended distances to obtain their medical care.

D. The City has a significant interest ¡n enhancing the health and welfare of the community by creating opportunities for increased access to quality health care facilities.

E. Owner has fìled with the City its request for approval of the following d¡scretionary act¡ons pertaining to the Property:

L. General Plan Amendment 15-001, a request to amend the General Plan land use designation for an approximately 9,9-acre port¡on of the Project site from CC (Community Commercial) to RC (Regional Commercial) (the "General Plan Amendment"); and

2. Zone Change 15-001, a request to change the zoning desìgnat¡on for an approximately 9.9-acre portion of the Project site from C-3 (General Commercial) to C-4 (Commercial Center) (the "Zone Change").

F. ln addition to the General Plan Amendment and the Zone Change, Owner plans in the future to f¡le with the City applications for approval of discretionary actions which more specifically wiìl describe and implement the Project (the "Future Appl¡cat¡ons"). The Future Applications will include, but are not be limited to, applications for approvalof:
1 A-5595

1. The "Oasis Wellness Village Planned Development" pursuant to Section

28.05 of the City's Zoning Ordinance; and

2. Tentative Parcel Map No. 73748, a request to subdivide three contiguous parcels totaling approximately 12.13 acres (the "Tentative Parcel Map").

G. This Agreement assures that development of the Property will occur in accordance with City's General Plan, as amended by the General Plan Amendment. The development of the Property pursuant to thÌs Agreement shall be referred to as the "Development Pla n."
H. This Agreement const¡tutes a current exercise of City's police powers to provide predictability to both the City and Owner in the development approval process by vesting the permitted use(s), density, intensity of use, and timing and phasing of development consistent with the Development Plan, thus maximizing the opportunìty to achieve the significant enhancement of the community's access to quality health which will result from implementation of the Development Plan (the "Public Benefits").

AG REEMENT
city and Owner agree as follows:

INTEREST OF OWNER, Owner represents that it has a legal or equitable ¡nterest in the Property and is authorized to enter into this Agreement.

PUBLIC HEARINGS. On September 22,2076, after providing notice as required by law, the Planning comm¡ss¡on of the city held a public hearing on this Agreement and recommended to the City Council the adoption of this Agreement. On October 5, 2016, after providing notice as required by law, the City Counc¡l held a public hearing on this Agreement and made the find¡ngs set forth in Sect¡on 3.

3. CITY COUNCIL FINDINGS. The City Councìl finds that:
3,1Subject to the approval of the General Plan Amendment becomìng effective on or before the Effective Date, th¡s Agreement ¡s consistent with city's General Plan.

3.2This Agreement strengthens the public planning process, encourages pr¡vate participation in comprehensive planning, particularly with respect to the implementation of the City's General Plan, and reduces the economic costs of development and government.

The best interests of the residents of the City and their public health, safety, and welfare will be served by entering into this Agreement, t.

2. 2

3.3 LCONTINUING OBLIGATIONS. This Agreement binds the Parties now and in the future.

By approving th¡s Agreement, the C¡ty Council has elected to exercise certain governmental powers at the time of enter¡ng into this Agreement rather than deferring its actions to some undetermined future date. The terms and conditlons of this Agreement have been reviewed by City staff and the City Council and have been found to be fair, just, and reasonable.

DEFINITIONS. ln this Agreement, unless the context otherwise requlres, the following terms and phrases shall have the following meanings:

5.1"Administrative Fees" shall mean any fee routinely charged by the City to all development projects within the City for the tíme expended by full-time City employees in providing services related to the development of the Project.

Admin¡strat¡ve Fees do not, however, include "Development Fees" as defined in Section 5.11 below.
"Agreement" shall mean this Development Agreement between the city and Owner. The term "Agreement" shall include âny amendment properly approved and executed pursuant to Section 7.5,
^.559
5 "Approval Date" means the date on which the City Council conducted the first reading of the ordinance adopting this Agreement. That date is October 5, 2016. "City" shall mean the City of Palmdale, a California mun¡cipalcorporation. "City Council" shall mean the governing body of the City. "C¡ty Municipal Code" shall mean the Palmdale Municipal Code. However, changes to the Palmdale Municipal Code occurring between the Approval Date and the Effective Date shall not be considered part ofthe City Municipal Code for purposes of this Agreement w¡thout owner's prior written consent. "Day" refers to a calendar day unless specifically stated as a "business day." "Default" refers to the material and substantial faÌlure by a Party to comply with one or more material provisions of this Agreement.

5. 5.2

5.3 5.4

5.5 5.6

5.7 5.8

5.9"Development" refers to the improvement of the Property for the purposes of complet¡ng all structures, improvements, and facilities comprising the Project.

5.10 "Development Approvals" refers to all permits and other entitlements approved or issued by the City for the use of, construct¡on upon, and/or development of the Property. Development Approvals shall be deemed to include, but are not limited to, the following (and related amendments):

A-559'
. This Agreement;
. Amendments to the General PIan;
. Master P la ns;
Tentative Maps, FinalMaps, includìng parcel maps;
Planned Developments, as set forth in Section 28.05 of the City's Zoning Ordinance;
Conditional use permits, use permits, and site development permìts; Va ria n ces;
Grading and building permits;
Certificates of compliance and/or lot line adjustments; Street, draìnage, utility, storm water, and landscape permits; Occu pa ncy permits; and
Environmental review documents for the Project.

5.11 "Development Fees" refers to all fees established by the City for entitlement and construction activ¡ties which, but for this Agreement, could be imposed upon the Project. Development Fees include, but are not limited to, development ¡mpact fees, (for example, traffic and fire facility) that could be imposed pursuant to the Mitigation Fee Act (California Government Code Section 66000 et seq.). Other examples of Development Fees include, but are not limited to, fees for demolition, utility connections, site plan rev¡ew, traffic review, application filing, ¡nspections, plan check, geotechnicaì review, storm water management, permit issuance, insurance, school fees, occupancy, design review, flow test, and d ra inage.
5,12 "Development Plan" means Owner's plan for development of the Property cons¡sting of the Existing Land Use Regulations, this Agreement, the Subsequent Land Use Regulations to wh¡ch Owner has consented ¡n wr¡ting, and Subsequent Development Approvals.

5.13 "Effective Date" shall mean the later of (l) date the ordinance adopting this Agreement becomes effective and (ii) the expiration of the perìod provided by a
a
4 A-5595
applicable law, including but not limited to Government Code Section 65009, for challenging the General Plan Amendment.

5.f4 "Existing Land Use Regulations" means all Land Use Regulations in effect on the Effective Date, including, but not limited to, the General PIan as amended by the General Plan Amendment and the provisions of the City Municipal Code falling within the definition of "Land Use Regulations" (see Section 5.17 below), incìuding, but not Iimited to, Title 1-6 (Subdivisions) and T¡tle 17 (Zonìng) However, changes to Land Use Regulatìons occurring between the Approval Date and the Effective Date shall be considered part of the Existing Land Use Regulations only with Owner's written consent. Owner has consented to the General Plan Amendment and the Zone Change, which shall be considered part of the Existing Land Use Regulations.

5.15 "General Plan" shall mean the general plan of the City.

5.16 "General Plan Amendment" shall refer to the amendment of the City's General Plan on October 5, 2016, for the Property.

5.17 "Land Use Regulations" shall mean all ordinances, resolutions, codes, rules, regulations and official policies of the City governing the development and use of land, including, without lìmitation, the permitted use of land, the density or intensity of use, subdivisìon requirements, timing and phasing of development, the maximum height and size of buildings, the provisions for reservation or dedication of land for public purposes, and the design, ¡mprovement, construct¡on, and initial occupancy standards and specifications applicable to the Project. Land Use Regulations do not include any City ordinance, resolution, code, rule, regulation or official policy governing:

The conduct or taxation of businesses, professions, and occupations applicable to all businesses, professions, and occupations in the City; Taxes and assessments of general applicatlon upon all residents of the City, provided that the taxes and assessments are not imposed for the purpose of tax¡ng the right, power or privilege of developing or improving land (e.g., excise tax) or to directly finance the acquisition or dedication of open space or any other public improvement ¡n respect of which the Owner is paying any fee (directly or through an assessment or similar financing d¡strict) or providing any improvement pursuant to this AgreemenU or
The controland abatement of nuisances
5 A-559t
"Land Use Regulations" also do not include any county, state, or federal ordinances, resolutions, codes, rules, regulations and official policies or any City ordinances, resolutions, codes, rules, regulations and offìcial policies, the specifìc provisions of which are mandated (as opposed to permitted) by county, state, or federa I law.

5.18 "Minor Changes" refers to any change to the Project that is otherwise cons¡stent with the Development Plan and which does not result in a change in the type of use, an increase in density or intensity of use, significant new or increased environmental impacts that cannot be mitigated, or violations of any applicable health and safety regulations in effect on the Effective Date.

5.19 "Mortgage" refers to any mortgage, deed of trust, or other securlty device recorded against some or all of the Property or improvements to the Property for the purpose of securing a debt or other obligation,

5.20 "Mortgagee" refers to a mortgagee of a mortgage, a benefÌciary under a deed of trust or any other security dev¡ce, a lender, and their successors and assigns.

5.27 "Operating Memorandum" refers to the wr¡tten memor¡alÌzation of the Partìes' mutual consent to adopting "Minor Changes" to the Project.

5.22 "Owner" refers to Palmdale lnvestment Company, LLC, a Californìa limited I¡ab¡lity company, and Owner's successors and assigns.

5.23 "Owner's Vested Right" refers to Owner's guaranteed right to develop the Property as set forth ¡n this Agreement.

5.24 "Paragraph" means a lettered or numbered paragraph of an Exhibit to this Agreement, unless speclfically stated to refer to another document or matter. A reference to a Paragraph includes all subparagraphs ofthat Paragraph. 5,25 "Parcel Map" means a Final Parcel Map approved by the City as a ministerial action.

5.26 "Parking Distr¡ct" refers to an anticipated parking d¡strict which will be formed by the City to provide bond financing as a means to fund the construction of the Parking Fa cilities.

5.27 "Parking Facilitìes" refers to the two parking structures which are part of the proposed Development Plan, all internal Project streets, each of which provides direct or ìndirect access to at least one of the parking structures, and all utilities and infrastructure installed and/or constructed beneath those streets. 6 A-5595

5.28 "Parking Structures" refers to the two parking structures which are part of the Pa rking Facilitìes.

5.29 The "Parties" means the City and Owner. A "Party" refers to either the City or the Owner.
5,30 "Pass-Through Fees" means those fees assessed against the Project and/or the Development by other public agencies, but which are collected (as opposed to imposed) by the C¡ty and which, after collection, are "passed through" to the public agency whlch imposed the fee in the first instance. 5,31 "Project" means the development of the Property as set forth in the Development Plan.

5.32 "Property" means the real property described in Exhibit "A" and depicted on Exh ibit "B".

5.33"Publlc Benefits" refers to those benefits provìded to the residents of the City and the surrounding community by the development of the health care facilities contemplated by the Development Plan. Some of the Public Benefits are listed on Exh ibit "C".
5,34 "Reservation of Authority" means the rights and authority specifically reserved to C¡ty as described in SectÌon 8,6.
5,35 "Sect¡on" refers to a numbered section of this Agreement, unless specifically stated to refer to another document or matter.

5.36 "Subsequent Development Approvaìs" means all Development Approvals approved, granted, or issued after the Effective Date for the Project which are required or permÌtted by the Existing Land Use Regulations, the Subsequent Land Use Regulations to which Owner has consented in writing, and this Agreement.

Subsequent Development Approvals include, without limitation, all development review approvals required under the Subdivision Map Act, the City's subdivision ordinance and/or other provisions of the City Municipal Code, site development permits, excavation, grading, building, construction, encroachment or street improvement permits, occupancy certificates, utility connection authorizations, drainage, landscape, or other permits or approvals necessary for the grading, construction, marketing, use and occupancy of the Project.

5.37 "Subsequent Land Use Regulations" means those Land Use Regulations which are both adopted and effective after the Approval Date and which are not included withìn the definition of Existing Land Use Regulations, "Subsequent 7 A-5595
Land Use Regulations" include any Land Use Regulat¡ons adopted by moratorium by ¡nitiative, City action, or otherw¡se

5.38 "Tentative Map" shall mean a tentative parcel map, as defined in the Subdivision Map Act and the City Municipal Code, for the Project'

5.39 "Term" means the term of this Agreement as set forth in Section 7.2 of this Agreement.

5.40 "Zone Change" means the amendment to the C¡ty's Municipal Code with respect to the zoning des¡gnat¡on for the Property which was approved by the City Councìl on the Approval Date.

6.EXHIBITS. All exhibits attached to this Agreement are Ìncorporated as a part of th¡s Agreement. Those exhibits are:

7. G EN ERAL PROVISIONS

7.7 Bìnding Effect of Agreement. This Agreement shall be recorded against the Property and shall run with the land. The Development shall be carr¡ed out in accordance with the terms of th¡s Agreement.

7.2Term of Asreement. The Term shall commence on the Effective Date, The Term shall continue for a period of twenty-f¡ve years from the Effective Date, but shall be extended for periods equal to the time during which:

Litigation ìs pending whìch challenges any matter, including compliance with CEQA or any other local, state, or federal law, related in any way to the approval or implementation of all or any part of the Development Plan. Any such extens¡on shall be equal to the time between the filing of litigation, on the one hand, and the entry of final judgment or dismissal, on the other. All such extens¡ons shall be cumulative.
8 :¡::iExtii¡ii:.: lDiscription : '
.''
Legal Description of the Property
rtDe piction of the Property
Pu blic Benefits
Fees
a
A-5595
Any application by Owner for a regulatory permit and/or approval from an agency other than City which is required for the Project, but has been pending more than one year after its subm¡ttal, beginning on the 366th day following its submittai for approval.

Any other delay occurs which is beyond the control of the Parties, as described in Section 13.10.

Termlnatìon. This Agreement shall be deemed terminated and of no further effect upon the earlier occurrence of any of the following events:
. Expiration of the Term as set forth in Section 7.2;
Completion of the Project ìn accordance with the terms of th¡s Agreement, including issuance of all required occupancy perm¡ts and acceptance, as required by state law, by City, or the applicable public agency, of all required dedications and the satìsfaction of all of Owner's obligations under this Agreement; and
As may be provided by other specific provisions of this Agreement.

Effect of Termination. Subject to Sect¡on 8.10, upon any term¡nation of th¡s Agreement, the only rights or obligations under this Agreement which eìther Party shall have are:
. The completion of obl¡gations which were to have been performed prior to terminat¡on, subject to Section 11; and
¡ The performance and cure r¡ghts set forth in Section 11.

Amendment or Cance¡lation of AÊreement. Th¡s Agreement may be amended from time to time or canceled only by the written consent of both CÌty and Owner in the same manner as its adoption, as set forth in California Government Code Section 65868. Any amendment or cancellation shall be in a form suitable for recording in the Offìcial Records of Los Angeles County, California. An amendment or other modification of this Agreement will contìnue to relate back to the Effective Date of this Agreement (as opposed to the effective date of the amendment or modification), unless the amendment or modification expressly states otherwise,

7.3 7.4

7.5 9

7.6 77
A-5 59 5
Release of Obligations With Respect to lndividual Parcels Upon CertifÎcation of Occupancv. Notwithstanding any other provìsion of this Agreement:

7.6.L When any individual parcel has been finally subdivided and sold, leased, or made available for lease to a member of the public or any other ultimate user, and a certificate of occupancy has been obtained for the building(s) on the lot, that lot and its owner shall have no further obl¡gations under and shall be released from this Agreement.

7.6.2 Upon the conveyance of any lot, parcel, or other port¡on of the Property to a property owners'association or public or quasi-public entity, that lot, parcel, or port¡on of the Property and its owner shall have no further obligations under and shall be released from this Agreement.

No formal actlon by the City is required to effect this release, but, upon Owner's request, City shall sign an estoppel certificate or other document to evìdence the re lease.

Minor Changes. The provisions of this Agreement require a close degree of cooperation between the Parties and "Minor Changes" to the Project may be required from time to time to accommodate design changes, engineering changes, and other refinements related to the detaìls of the Parties' performance. "Minor Changes" shall mean changes to the Project that are otherwise consistent with the Development Plan, and which do not result in a change in the type of use, an increase in density or intensity of use, signif¡cant new or increased environmental impacts that cannot be mitigated, or violations of any applicable health and safety regulatÌons in effect on the Effective Date, Accordingty, the Parties may mutually consent to adoptìn8 "Mìnor Changes" through their signing of an "Operating Memorandum" reflecting the Minor Changes. Neither the Minor Changes nor any Operating Memorandum shall require public notice or hearing. The City Attorney and City Manager shall be authorized to determine whether proposed modifications and refinements are "Minor Changes" subject to this Sect¡on 7.7 or more significant changes requiring amendment of this Agreement, The City Manager may execute any Operating Memorandum without City Councll action.

Term of Map{s) and Other Development Approvals.

7.8.I Subdivision Maps. Pursuant to Government Code Section 66452.6, the term of all parcel maps that are approved for all or any portion of the Property shall be extended to a date coincident with the Term and, where not proh¡bited by State law, with any extension of the Term 10 7.8
A-5595

7.a.2Site Development Perm¡ts. Site Development Perm¡ts for the Project shall have terms that coincide with the term of the subdivision or parcel map for the portion of the Property to which a part¡cular Site Development Permit perta¡ns.

7.8,3Other Devetopment Approvals. Pursuant to Government Code Section 65863.9, any and all other Development Approvals, including, but not limited to, those discretionary approvals listed in Recital E above, for any portion of the Project shall automatically be extended for a term ending concurrently with the applicable tentative maps for the Project. Pursuant to Section 7.8.1, those terms shall be the same as the Term of this Agreement.

7.8.4Decisìons of Planning Manaser. Any decision of the Planning Manager with respect to Subsequent Development Approvals may be appealed to the City's Planning Commission pursuant to the procedures of the cìty's Munic¡pal code, Decìs¡ons of the Planning Commission on appeal may be appealed to the City Council pursuant to the procedures of the City's Municipal Code.

7.9 Retationship of Citv and Owner. The contractual relationship between CÌty and Owner aris¡ng out of this Agreement is one of independent contractor and not agency. This Agreement does not create any th¡rd-party beneficiary rights

7.IO Notices. All notices, demands, and correspondence required or permitted by this Agreement shall be in writing and delivered in person or mailed by first class or certified mail, postage prepaid, addressed as follows:
lf to C¡ty, to:
city of Palmdale
38300 Sie rra Highway
Palmdale, Ca liforn ia 93550
Attn: City Manager
With a copv to:

City of Palmda le
38300 Sierra Highway, Suìte A
Palmdale, CA 935 50
Attn: City Attorney
11 A-5 59 S
lf to Owner, to
Palmdale lnvestment Company, LLC
1146 N. Central Ave., #441
Glenda le, CA 91202-2502
Attn: Joh n Thomas
joh n @thomaspa rtn ers.com
With a copy to
Tim Paone
Cox, Castle & N icholso n
3121 M ichelson Drive
Suite 200
lrvine, CA 92612
tpaone @ coxcastle.com
C¡ty or Owner may change its address by giving notice in writing to each of the other names and addresses listed above. Thereafter, notices, demands, and correspondence shall be addressed and transmitted to the new address. Notice shall be deemed gìven upon personal delivery or, if mailed, two (2) business days following deposit ¡n the United States mail.

8. DEVELOPMENT OF THE PROPERTY.

8.1Owner's Vested Right. Owner shall have the vested right to complete Development of the Property in accordance w¡th the Development Plan ("owner's Vested Right").

Governing Land Use Regulations. The Land Use Regulations applicable to the Project and the Property shall be those contained in the Development Plan. An amendment or other modification of this Agreement will not change these applicable Land Use Regulations unless the amendment or modification expressly provides otherwise. Subsequent Land Use Regulations shall not apply to the Property unless the Parties mutually agree in writing that the Project will be subject to one or more Subsequent Land Use Regulations. Owner's applicat¡on for a Subsequent Land Use Regulation and the City's approval of that application as submitted or as otherwise agreed to in writing by Owner shall be deemed an effective mutual written agreement of the Parties.

8.2 12
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Nothing contained in this Agreement shall be deemed to author¡ze City to withhold any building permit, approval, and/or certificate of occupancy based on Owner's failure to comply with any Land Use Regulation that, as a result of thìs Agreement, is not applicable to the Project.

8.3 Permitted Uses. The permitted uses on the Property shall be as provided in the Development Pla n.
8,4 Density and lntensitv; Requirement for Reservation and Dedication of Land. The density and ìntensity of use for all Development on the Property, and the requirements for reservation and dedication of land, shall be as provided in the Development Plan.

8.5 Su bdivisio n Map Processing.

8.5.1The Porcel Mop. Processing, filing, and recording of the Parcel lvlap shall be as provided within the Subdivision Map Act and subject only to the Existing Land Use Regulations.

8.5.2Phased Final Mops. Pursuant to Section 66452.6(a)(1) of the California Subdivisìon Map Act, through th¡s Agreement Owner has requested and City agrees to permit the filing of up to four "phased final maps," as that term is used in Section 66452.6(a)(1), for the Project. This request by Owner sha ll be deemed to be in effect at the approval of the Tentative Map.
8,6Reservation of Author¡tv. The following Land Use Regulations or Subsequent Land Use Regulations sha ll apply to the Property and the Project:

Procedural regulations relating to hearing bodìes, pet¡tions, applications, notices, findings, records, hearings, reports, reco m mendations, appeals, and any other matter of procedure;
Provided that they are uniformly applied to all development projects w¡thin the City and are not applied retroactively to any Development Approval issued before their adoption or amendment, uniform codes governing engineering and construction standards and specifications adopted by the C¡ty pursuant to state law (such codes include, without lim¡tation, the City's adopted version of the Uniform Adm¡nistrative Code, California Building Code, California Plumbing Code, California Mechanical Code, California Electrical Code, and Californìa Fire Code); and 13 4.7
A-559 5
. Regulations which may be in conflict w¡th this Agreement, but which are objectively requìred (and there are no available reasonable alternat¡ves) to protect the public health and safety in the event of a sudden, unexpected occurrence involving a clear and ¡mm¡nent danger, and demanding immediate action to prevent or mitigate loss of, or damage to, lÌfe, health, property, or essential publÌc services within the immed¡ate community. Such regulations must be a valid exercìse of the City's police power and must be applied and construed so as to provlde owner, to the maximum extent possible, with the rights and assurances provided in this Agreement. To apply to the Property, such regulations must be adopted after a public hearing and must be based upon findings of necessity established by a preponderance of the evidence. Any regulations, including moratoria, enacted by City and imposed on the Property to protect the public health and safety in the circumstances described above shall toll the Term and any time periods for performance by Owner and City set forth ¡n this Agreement.

Assessment District or Other Public Financine. Subject to all procedural requirements of State and city law, City shall use its best efforts to conduct proceedings to consider and util¡ze one or more of a number of alternative public financing mechanisms authorized by state law, which may include, but are not limited to, Enhanced lnfrastructure Financing Districts, Mello Roos Districts, Community Fac¡l¡ties Districts, Parking/ Public lmprovement Districts, Landscaping and Lighting Assessment Distr¡cts, Utìlity Author¡ty, other land based secured assessment districts, lease leaseback transaction structures, project specific tax revenue re¡mbursement, as well as other allowed financing mechanisms (collectively, "Public Financing Mechanisms")' These Public Financing Mechanisms may, at the Cìty's sole and absolute discretion, be used to provide public financing for one or more of the following: (i) the acquìsìtion of the land designated in the Development Plan for the construction of the two park¡ng structures (the "Parking Structures") and all interior streets of the Project which prov¡de dìrect or ind¡rect access to at least one of those Park¡ng Structures (collectively, the "Parking Facilities") (ìi) the construction of the Parking Facil¡ties, and (iii) the construction of infrastructure and other public amenit¡es such as water, sewer and storm water facilities, parks, public pavilions, pedestr¡an areas, and any other projects authorized by state law governing the particular financing mechanism. lt is ant¡cipated that the city may consider creating and/or utilizing a Special Purpose Authority ("Authority"), and that a separate financing agreement(s) will be required by and between the City and/or the Authority and Owner.
14 8.7.t
A-5595
Owner's Finoncial Cqpacitv. Prior to any determination of public financing and/or funding of the Parking Facilities, City and, if applicable, Authority must be satisfied that the Owner has the ability and financial capacity to develop the Project and, therefore, provìde the sign¡ficant benefit of making high quality health care facilities reasonably accessible to residents of C¡ty and surrounding communities. Based on the foregoing determination in conjunction with an independent determination by special counsel that such financing complies with applicable federal and State regulations, the City or the Authority may authorize (i) construction and operation of the Parking Fac¡lities by Owner and (ii) issuance and sale of future bonds, if any, that shall be based on prevailing municipal financing practices and criteria and sold in a mutually agreeable timeframe that would consider the t¡ming as follows: (a) the first Parking Structure shall be complete and available for use prior to occupancy of the first non-parking building that is part of the Project and (b) the second Parking Structure shall be complete and available for use as agreed based on the future occupancy of the Project.

Proiect Continaent on Public Financinq Mechanism' Owner recognizes that City cannot commit to a Public Financing Mechanism through this Agreement, and must comply with all aspects of local, state, and federal law relevant to the formation of a Public Financing Mechanism prior to making such a commitment. City, however, recognizes that Owner cannot commit to development of the Project unless City exercises its discret¡on to form/provide a Public Financing lvlechanism to, at a minimum, f inance the construction of the Parking Facilities Proiect Continaent on Owner's Manaoement of Parkinq Structures.

City recogn¡zes that, subject to compliance with all state and federal regulatìons, Owner cannot commit to development of the Project unless City and Owner enter into an agreement for a term of no less than 75 years granting to Owner the r¡ght to (i) manage construction of the Parking Structures, (iÌ) when completed, manage and ma¡ntaìn the two Parking Structures at Owner's expense, and (iii) collect and reta¡n the revenues from the Parking Structures.

Proiect Cont¡noent on Owner's Monoaement of Park¡nq Structures city recognizes that, subject to compliance with all state and federal regulations and any bond financing restrìctions and/or covenants, Owner cannot commit to development of the Project unless City and Owner enter into an agreement grant¡ng to Owner an option for Owner to purchase at fair market value either one or both of the 15 8.7.2
a?2
9-1 L
A-5595
Parking Structures (whether separately, iointly, or at different times) at ãny t¡me during owner's management ofthe Parking structures.

8.8 199¡ Because of the CitY's desire for the development of the Property to provide reasonable access for the residents of the city and surrounding communities to high quality health care, Development Fees (see Section 5.1L) and, Administrative Fees (see Section 5 1) shall be as set forth on Exh¡bit "D" ln the case of any ambiguity or uncertainty as to whether a particular fee is an Admin¡strative Fee or a Development Fee, it shall be treated as a Development Fee. As noted on Exhibit "D", Pass-Through Fees (see Section 5.30) shall not be ca pped or waived.

Owner is solely responsible for obtaining a determinatìon by the Department of lndustrial Relations regarding the adjustment of Development Fees pursuant to this Agreement or any public subsidy for the Project to determ¡ne whether it meets the exemption of "de minimis in the context of the project" as outlined in Section 1720(c)(3) of the California Labor Code.

8.9 Adequacv of Required lnfrastructure, The City acknowledges and agrees that, upon Owner's completion of the Project pursuant to the City's cond¡tions of approval, there will be sufficient capacity to accommodate the Project ¡n the infrastructure and services owned, operated, outsourced, controlled, and/or provided by the City, ìncluding, without limitation, traffic circulation, storm drainage, trash collection, and flood control. Where City renders or outsources such services or owns such infrastructure, City shall serve the Project and there shall be no restr¡ctions placed upon Owner concerning hookups or service for the Project, except for reasons beyond City's control.

8.10 Vested R¡shts Upon Termination Term¡nation of this Agreement shall not invalidate any Land Use Regulations or terminate any Subsequent Development Approvals obtained prior to the date of termination. Upon any termination of thìs Agreement, Owner's vested rights, if any, shall be determined by this Agreement to the extent development has occurred on the Property, and as to the remainder of the Project, by state and federal statutes and case law and then current factual state of the Development'

8.11 Staffing and Expedited Processins City shall employ all lawful actions capable of being undertaken by City to (¡) promptly receive and, when complete, accept all applications for Subsequent Development Approvals and related environmental analysis, if any (collectively, "Ap plicatìons" ), and (iì) expeditìously process and take action upon the Applications in accordance with applicable law 16 A-5595

8.72 changes in Federal and State Law. The Property may be subject to subsequently enacted state or federal laws or regulations which preempt local regulations or mandate the adoption of local regulations that confl¡ct with or impede implementation of the Development Plan. Upon discovery of such a subsequently enacted federal or state law, City or Owner shall provide the other Party with written notice, a copy of the state or federal law or regulation, and a written explanation of the legal or regulatory conflict created. Within ten (L0) days thereafter, C¡ty and Owner shall meet and confer in good faith ln a reasonable attempt to modify this Agreement, as necessary, to comply with such federal or state law or regulat¡on. In such negotiations, City and Owner agree to preserve the terms of this Agreement and the rìghts of Owner and C¡ty as derived from this Agreement to the maximum feasible extent while resolving the conflict. City agrees to cooperate wìth Owner ìn resolving the conflict in a manner which minimizes any financial impact of the conflict upon Owner or C¡ty.

City also âgrees to process, in the same exped¡ted manner as set forth for Appl¡cations in Section 8.11, Owner's proposed changes to the Development Plan as needed to comply w¡th such federal or state law, and to process those changes in accordance with City procedures. Any delays caused by such changes in state or federal law shall toll the term of this Agreement and the time periods for performance by Owner and City set forth ¡n th¡s Agreement

8.13 Timing of Development. Because the California Supreme Court held in Pardee Construction Co. v. City of Camqrillo,3T Cal. 3d 465 (1984), that the failure of the parties ¡n that case to provìde for the timing of development resulted in a later- adopted in¡t¡ative restricting the timing of development to preva¡l over the parties' agreement, it is the specif¡c intent of the Parties to provide for the timing of the Project in this Agreement. Therefore, subject to any State requirement related to the completion of construction for which a building permit has been issued, Owner shall have the right, but not the obligation, to complete the Project in.such order, at such rate, at such times, and in as many development phases and sub-phases as Owner deems appropriate ¡n its sole subjective business judgment.

8.!4 Conditions, Covenants and Restrict¡ons. Owner shall have the right, but not the obligation, to reserve and record such covenants, conditions, and restrictions (CC&Rs) against the Property as Owner deems appropriate, in its sole and a bsolute discretion.
17 A-55q5

9. ANNUAL REVIEW

9.1 Tìming of Annual Review, Pursuant to Government Code Section 65865.1, at least once during every twelve (12) month period of the Term, City shall review the good faith compliance of Owner with the terms of this Agreement ("Annual Review").
q?Standards for Annual Review. Dur¡ng the Annual Review, Owner shall demonstrate good faith compliance with the terms of this Agreement. "Good faith compliance" shall be established if Owner is ¡n substantial compliance with the material terms and conditions of this Agreement.

9.3Procedures for Annual Review. The Annual Review shall be conducted by the C¡ty Council or its designee. Owner shall be g¡ven a minimum of sixty (60) days' notice of any date scheduled for an Annual Review. owner shall not be lìmited in the information it presents to the City Council for the Annual Review and may, if needed, provide information to the City Council in the f¡rst instance at the City Council hearing on the Annual Review. Should the City Counc¡l designate a party other than itself to conduct the Annual Review, these same notice and procedural requirements shall apply to the conduct by the designee of the Annual Review.

9.4Certificate of Compliance. At any time during any year that the City Counc¡l or its designee finds that Owner is not in Default under th¡s Agreement, Cìty shall, upon written request by Owner, provide Owner w¡th a wr¡tten certificate of good faith compliance within fifteen (15) days of City's receipt ofthat request,

10. THIRD PARTY LITIGATION,

10.1 Third Partv Lit¡patìon Concernins Agreement. owner shall, at Owner's expense, indemnify and hold City, its officers, employees and independent contractors engaged in project planning or implementation, harmless from any third-party claim, action or proceeding against City, its agents, officers or employees to attack, set aside, void, or annul the approval of this Agreement (collectively, "Thìrd-Party Claims"). City shall promptly notify Owner of any Th¡rd-Party Cla¡m and City shall cooperate in the defense.

LO.z Dutv to Defend. Owner shall defend City against all Third-Party Claims at Owner's expense with legal counsel selected by Owner. Owner shall advise City of its choice of counsel and consider, but not be obligated by, any input the C¡ty may provide regarding the retention of that counsel. With respect to any Third- Party Claim, if Owner asks City to partìcipate in the defense of a Th¡rd-Party Claim, City shall participate. Even if not requested, City may elect to part¡cipate in the defense of any Third-Party Claim. Under either circumstance, (i) City may 18 11
A-55ç5
select ìts own legat counsel to represent City in that defense and (ii) Owner shall reimburse City for the reasonable cost of that defense. For purposes of this Section 1.0,2, to "part¡cipate" in the defense of a Third-Party Claim shall mean that, whether through the city Attorney's office or outside counsel, the City shall appear in court hearings and trials, prepare and file briefs, and otherwise directly engage in litigation related to the Third-Party claim.

10.3 Processins Durins Third Partv Litisation' The filing of any third party Iawsuit(s) against city or Owner relating to this Agreemênt, the General Plan, any Development Approvals, including Subsequent Development Approvals, or other development issues affecting the Property shall not delay or stop the development, processing, or construction of the Project, approval of Subsequent Development Approvals, or issuance of Development Approvals unless the third party obtains a court order preventing such activity City shall not st¡pulate to the issuance of any such order without Owner's prior written consent.

DEFAULTS, REM EDIES, AND WAIVERS.

11.1 Notice. Before either Party may declare a Default under this Agreement this Agreement, the procedures of this Section must be followed. ln the case of a Default aris¡ng from the conduct of an Annual Review, the procedures of this Sectìon shall be strictly followed and shall constitute a second and independent review of the good faith compliance of Owner.

The Party asserting a Default (the "Non-Defaulting Party") may elect to do so by providing written not¡ce to the Party alleged to be in Default (the "Defaulting Party") setting forth the nature of the Default and the actions, if any, required by the Defaulting Party to cure the Default. The Defaulting Party shall be deemed in Default if the Defaulting Party fails to cure the Default within thirty (30) business days after the date of such not¡ce (for monetary defaults) or within sixty business (60) days after the date of such notice (for non-monetary defaults)("Cure Periods"). lf the nature of the alleged Default is such that it cannot reasonably be cured within the applicable Cure Period, the Defaultìng Party shall not be deemed to be in Default if it has commenced efforts to cure the Default within the applicable Cure Period and continues to diligently pursue complet¡on of the cure.
f]'2 Default Remedies. A Party who complies with the notice of Default and opportunity to cure requirements of this section may, at its option, institute legal action to cure, correct, or remedy the alleged Default, enjoin any threatened or attempted v¡olãtion, enforce the terms of this Agreement by specific performance, or pursue any other legal or equitable remedy, with the 19 A-5595
exception of termination of this Agreement. These remedies shall be cumulative rather than exclusìve, except as otherw¡se provided by law. 7],3 Standard of Review. Any determination that a Party is in Default shall be based upon the preponderance of evidence. ln any legalaction alleging or challenging a Party's determination of Defautt, the court shall conduct a de novo review of compliance based on the adminlstrative record and determine if the preponderance of evidence supports the claim of Default.

11.4 Waiver; Remedies Cumulative, There are no ìmplied waivers. All waìvers of performance must be in a writing signed by the Party granting the waiver.

Failure by either Party to insist upon the strict performance of any provision of this Agreement, irrespective of the length of t¡me for which such failure continues, shall not constitute a waiver of the right to demand strict compliance with this Agreement in the future.

A wr¡tten waiver affects only the performance specifically waived and defines the scope and duration of the waiver' Unless expressly stated in a wr¡tten waiver, future performance of the same or any other condition is not waived.

A Party who complies with the notice and opportunity to cure requirements of this Agreement, where applicable, and pursues a legal or equitable remedy available under this Agreement does not waive its right to pursue any other remedy available under this Agreement, unless prohibited by statute, court ru les, or judicia I precede nt.

Delays, tolling, and other actions ar¡s¡ng under this Agreement shall not be considered wâivers subject to th¡s Section.
rZ. ENCUMBRANCES, ASSIGNMENTS, AND RELEASES.

72.1, Discretion to Encumber. This Agreement shall not prevent or limit Owner, in any manner, at owner's sole discretion, from encumbering some or all of the Property or any improvement on the Property with a Mortgage (see Section s.1s),

12.2 Mortsasee Protection. City acknowledges that any lender(s) providing financing secured by the Property and/or its improvements may require Minor Changes lf requested by Owner or a lender, City shall meet with Owner and representatives of the lender(s) to negotiate in good faith any such Minor Changes. City will not unreasonably withhold or delay its consent to a requested Minor Change provided the Minor Change is consìstent with the intent and purposes of th¡s Agreement. The follow¡ng terms and conditions ãpply to all Mortgages:
20 A-55q5
L2,2,7Neither entering into this Agreement nor a breach of this Agreement shall defeat, render invalid, diminish, or impair the l¡en of any Mortgage made in good faith and for value.

72.2.2lf City timely receives a request from a Mortgagee requesting a copy of any notice of Default given to Owner under the terms of this Agreement, City shall provide a copy of that notice to the lvlortgagee within ten (10) days after receiving the Mortgagee's request. The Mortgagee shall have the right, but not the obligation, to cure the Default during the remaining cure period allowed Owner under this Agreement.

12.2.3Except as otherw¡se provided within this Agreement, any Mortgagee who comes into possession of some or all of the Property pursuant to foreclosure of a Mortgage or deed in lieu of such foreclosure or otherwise, sha ll:
. Take the property acquired subject to the terms of this Agreement and as Owner's successor;
. Have the rights and obligations of an Assignee as set forth in Sections 12.3 and I2.4;
o Have the right to rely on the provisions of Section 8 of thìs Agreement, provided that any development proposed by the Mortgagee is ¡n substantial conformance with the terms of this Agreementj and
. Not be liable for any Defaults, whether material or immaterial, or monetary obligations of Owner ar¡sing prior to acqu¡sit¡on of title to the Property by the Mortgagee, except that the Mortgagee may not pursue development pursuant to this Agreement until all delinquent and current fees and other monetary obligations, if any, due to the City under this Agreement for the portions of the Property acquìred by the Mortgagee have been paid to city. f23 Assignments of lnterest in AÊreement. Owner shall have the right to sell, transfer, or assign some or all of the Propertv at any time during the Term (a "Property Conveyance"). Any sale, transfer, or assignment of Owner's rights and obligations under this Agreement (collectively, an "Assignment") in connection with a Property Conveyance, however, shall be subject to the requ¡rements outlined below.
21 A-5595

12.3.7 L2.3.2
Ass¡gnments Requir¡ng City's Consent. The qualifications and identity of Owner are of particular concern to the City. lt ¡s because of those qualifications and identity that the City has entered Ìnto this Agreement with Owner. The City has negotiated the terms of this Agreement in contemplation of the constructìon of the Parking Facilitles. Accordingiy, from the Effective Date until the issuance of a Release of Construction Covenants for the Parking Facilities, all Ass¡gnments by Owner shall be subject to the terms of this Section 72,3.

Ass¡gnments Permitted Without C¡ty's Consent. Notw¡thstanding any other prov¡sion of this Agreement, Assignments related to the following Property Conveyances and other transactions shall not req u ¡re City consent:

The conveyance or dedication of any portion of the Property to a public agency, including the City.

The granting of easements or permits to facilitate construction of the ParkÌng Fa cilities.

The granting of easements or permits for utility purposes.

Transactions for financing purposes, including the grant of a deed of trust to secure the funds necessary for land acquisition, construction, and/or permanent financing of any portion of the Project.

The acqu¡sition of some or all of the Property bV a Mortgagee ¡n its capac¡ty as a Mortgagee, such as through foreclosure or a deed in lìeu of foreclosure.
lf Owner is a publicly held corporation, real estate investment trust or publicly held partnership, a transfer of stock or other shares, provided there is no mater¡al change in the actuaì management and control of Owner.

Transact¡ons with an Owner affiliate, provided that, following the transaction, Owner shall (i) retain an ownership and operational ¡nterest in the Project (directly or indirectly) and (ii) Owner's current repTesentat¡ves shâll remain the primary Owner
representative(s) for purposes of communicat¡on with the City. a
22 A-5595

12.3.3 12.3.4

72.3.5 Transactions which have the effect of merging Owner's interest ¡n the Property with current or acquired interests of other entities, provided that, following the transact¡on, Owner shall (i) retaìn an ownership and operat¡onal ¡nterest in the Project (directly or indirectly) and (ii) Owner's current representatives shall remain the pr¡mary Owner representative(s) for purposes of commun¡cat¡on with the City.

Entering into reciprocal easement agreements and CC&Rs with tenants and end users, related to some or all ofthe Project.

C¡ty Considerotion of Requested Assignment. The City agrees that ìt will not unreasonably withhold, condition, or delay approval of a request for approval of an Assignment made pursuant to this Sect¡on

12.3 which requires the City's approval, provided the Owner delivers written not¡ce to the City requesting such approval. Such notice shall be accompanied by evidence regarding the proposed assignee's development and/or operational qualifications and experìence and its financial commitments and resources in suffìcient detail to enable the C¡ty to evaluate the proposed assignee pursuant to the cr¡teria set forth in this Section 12.3. The City may, in considering any such request, take into consideration such factors as, without limitation, the assignee's experience and expedise, the assignee's past performance as developer or operator of similar developments, and the assignee's current financial condition and capabilities.

Ass¡gnment ond Assumption Agreement. Prior to any Assignment (whether or not an Assignment requ¡r¡ng the City's consent)¡ Owner shall give wr¡tten not¡ce to City of the Assignment and satisfactory evidence that the assignee has assumed in writing through an assignment and assumption agreement all of the Owner's obligations set forth in this Agreement (an "Assignment and Assumption Agreement"). The Assignment and Assumption Agreement shall be in a form reasonably satisfactory to the City's legalcounsel.

City's Act¡on on Request for Consent. With¡n fìfteen (15) days after the receipt of the Owner's written Notice requesting City approval of an Assignment, the City shall either approve or disapprove the proposed assignment or shall respond in writing by stating what further information, if any, the City reasonably requires in order to determine the request complete and determine whether or not to grant the requested approval. Upon receipt of such a responsei the Owner shall promptly provide to the Cìty the requested information Within fifteen 23 A-5 59 5
(15) days after the receipt of such information, the City shall approve or disapprove the requested Assignment. Upon the effective date of an ass¡gnment approved by the City, Owner shall be released from all obligations to the City under this Agreement with respect to the portion of the Property which is the subject of the Ass¡gnment.

72.4 Effect of Assignment. Unless otherwise stated within the Assignment, upon an Assignment:
. The Assignee shall be liable for the performance of all remaining obligations of Owner w¡th respect to those portion of the Property which are conveyed pursuant to the Property Conveyance (the "Transferred Property"), but shall have no obligations with respect to any portions of the Property not conveyed (the "Retained Property").
. The owner of the Retained Property shall be liable for the performance of all obligations of Owner with respect to the Retained Property, but shall have no further oblìgations with respect to the Transferred Property.

The Assignee's exercise, use, and enjoyment of the Transferred Property shall be subject to the terms of this Agreement to the same extent as if the Ass¡gnee were the Owner.

MISCELLANEOUS PROVISIONS.
13,1 Rules of Construction. The singular includes the plural; the masculine gender includes the feminine; "shall" ¡s mandatory; "may" is perm¡ssive

13.2 Entire Agreement. This Agreement constitutes the entire understanding and agreement of City and Owner with respect to the matters set forth in this Agreement. Thìs Agreement supersedes all negotiations or previous agreements between city and Owner respect¡ng the subject matter of this Agreement.

13.3 Recorded Statement Upon Termìnation. Upon the complet¡on of performance of this Agreement or its cancellation or termination, a statement evidencing completion, cancellation, or termination signed by the appropriate agents of the Parties shall be recorded in the OfficialRecords of Los Angeles County, Californ¡a.

L3.4 Proiect as a Prìvate Undertak¡ng. lt is specifically understood by the Parties that (ì) the Project is a private development, (ii) City has no respons¡bility to th¡rd parties concernìng any improvements to the Property unless City accepts the improvements pursuant to the provisions of thls Agreement or in connection with subdivision map approvals, and (iii) Owner shall have exclusive control of the Property.
24 13.

13.5 13.6

13.7 13.8

13.9 13.10
A-55q9
lncorporation of Rec¡tals. Each of the Recitals set forth at the beginn¡ng of this Agreement are part of this Agreement.

Captions. The captions of this Agreement are for convenience and reference only and shall not define, explaìn, modify or aid in the interpretation, construct¡on, or meaning of any of the provisions of this Agreement.

Consent. Where the consent or approval of C¡ty or Owner is needed to implement Development under th¡s Agreement, the consent or approval shall not be unreasonably withheld, delaved, or condit¡oned.

Covenant of Cooperation. The Parties shall cooperate and act in good faith to assist each other in the performance of the provis¡ons of this Agreement Execution and Recording, The City Clerk shall cãuse a copy of this Agreement to be signed by the appropriate representat¡ves of the City and recorded with the Office of the County Recorder of Los Angeles County, California, within ten (10) days following the effective date of the ordinance adopting this Agreement. The failure of the city to sign and/or record this Agreement shall not affect the va lid ity of this Agreement.

Delav for Events Bevond the Part¡es' Control. Performance by either Party of ìts obligations under this Agreement shall be excused, and the Term shall be extended, for periods equal to the time during which (1) l¡tigation is pending which challenges any matter, including compliance with CEQA or any other local, state, or federal law, related in any way to the approval or implementation of all or any part of the Development Plan or (2) a delay caused by any event beyond the control of the performing Party prevents or delays performance by that Party of an obligation under this Agreement. Ail such extensions shall be cumulative Such events shall include, by way of example and not limitation, acts of nature, enactment of new federal or state laws or regulations, judicial actions such as the issuance of restraining orders and injunctions, delay in the ¡ssuance of bonds or formation of the Parking Distr¡ct, riots, str¡kes, and damage to work in process by reason of fire, mud, rain, floods, earthquake, or other such casualties. With respect to litigation, any such extension shall be equal to the time between the fiting of litigation, on the one hand, and the entry of finaljudgment or dismissal, on the othe r.
lf either Party seeks excuse from performance, it shall provide written notice of such delay to the other Party wìthin thirty (30) days after the commencement of such delay. Any disagreement between the Parties w¡th respect to whether th¡s Section applies to a particular delay or default ¡s subject to the filing by either Party of an action for judicial review of the matter, including requests for decla rato ry a nd/or injunctive re lief.
25 A-55q5
L3,11 lnterÞretation and Governinq Law. ln any dÌspute regarding this Agreement, the Agreement shall be governed and interpreted in accordance with the laws of the State of California. Venue for any litigation concerning this Agreement shall be in Los Angeles County, Californ¡a,

13.12 Time of Essence. Time is of the essence in the performance of the provisions of th¡s Agreement as to which t¡me is an element.

13.13Estoppel certificate. Within ten (10) business days following a written request by either of the Parties, the other Party shall execute and deliver to the requesting Party a statement certifying that (i) either this Agreement is unmodified and in full force and effect or there have been specified (date and nature) modîfications to the Agreement, but it remains in full force and effect as modified; and (ii) either there are no known current uncured Defaults under this Agreement or the responding Party alleges that specified (date and nature) Defaults exist. The statement shall also provide any other reasonable information requested. The failure to t¡mely deliver this statement shall constitute a conclusive presumption that this Agreement is in full force and effect without modìfication, except as may be represented by the requesting Party and that there are no uncured Defaults in the performance of the requesting Pârty, except as may be represented by the requesting Party Owner shalì pay to City all reasonable administrative costs incurred by City in connection w¡th the issuance of estoppel certificates under this Sect¡on prior to C¡ty's issuance of such certificates.

L3.14 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

13.15 Future LitiÊation Expe nses.
13,15.1 Pavment to Prevailing Partv. lf either Party brings a legal or equitable proceeding against the other Party which arises in any way out of this Agreement, the prevailing Party shall be entitled to recover its reasonable attorneys' fees and all other reasonable costs and expenses incurred in that proceeding.

L3.75.2Scope of Fees. Attorneys' fees under this Section shall include attorneys'fees on any appeal and ¡n any post-judgment proceedings to collect or enforce the judgment. This provisìon is separate and several and shall survive the termination of this Agreement.

Limitation of Liabilitv. Owner's obligations under this Agreement are solely those of Owner. ln no event shall any present, past or future officer, director, shareholder, member, employee, partner, aff¡l¡ate, 26 13. 15.3
A-559 5
Owner and City have executed this Agreement on the dates set forth below

CITYOWNER
manager, representative or agent of Owner (a "Related Party") have any personal liability, directly or indirectly, under this Agreement Recourse in any way connected with or arising from this Agreement shall not be available against any Related Party
Palmdale lnvestment Com PanY, LLC,
a California limited liability company
By:
as
Its: Managing Member
DATE
^
City of Palmdale
DATE
ATTEST:

Rebecca Smith,
City Clerk
APPROVED AS TO FORM:

By:
a
w
Wm. Matthew Dìtzhazy
CitV Attorney
DATE
27 A-5595
A notary public or other officer completing
this certificate verifies only the identity of
the ¡ndividual who signed the document to
which this cert¡ficate is attached, and not the
truthfulness, accuracy, or validity of that
docu ment.

STATE OF CATIFORNIA
couNrY oF ,*,. Ql^* J-
¿
on ? - [ \_- tk2017 before me,
pe rsona lly a ppea red
basis of satisfactory evidence
instrument and acknowledged to
l\)L(g-V'
(insert name and title of the officer),
who proved to me on the
the persoryþlwhose name(s) is/a re-su bscribed to the within me that he/she/tbey executed the same in his/her/their
ss:
authorized capacity(i€ïand that by his/hery'tleir signatureþ) on the instrument the perso-ñ-þ), or the entity upon behalf of which the person{sþcted, executed the instrument I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signatu re
ISe a l]
<\
! rí+.ù':. shABBrft ¡.2Â[J I : .Z-.I çrì.;\ cor¡n.* 214i4?1 iì i¡ r =1'¡ -L(:f:l: i ñ0rÅrr pr¡ri( . a!rf t'Á\l'. !,J
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A-559 5
A notary publìc or other off¡cer completing
this certìficate verìfies only the ¡dentìty of
the ìndividual who sìgned the document to
which th¡s certif¡cate ¡s attached, and not the
truthfulness, accuracy, or val¡dity of that

STATE OF CALIFORNIA
ss:

COUNTY OF
on fYl a r! e S , 2017 before me,
(insert name and title of the officer),
I certify under PENALTY OF PERJURY under the laws of the state of california that the foregoing paragraph is true and correct
WITNESS my hand and official sea I'
Signatu re
[sea l]
t-os Évrct¿\¿>
--__---__]-
29 A-5595
EXHIBIT "A"

LEGAL DESCRIPTION
IN THE CITY OF PALMDALE, COUNry OF LOS ANGELES, STATE OF CALIFORNIA BEING THAT PORTION OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 27 TOWNSHIP 6 NORTH, RANGE 12 WEST, SAN BERNARDINO MERIDIAN, DESCRIBED AS FOLLOWS:

BEGINNING AT THE SOUTHWEST CO RN ER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARÍER OF THE NORTHWEST QUARTER OF SAID SECTION 27; THENCE, ALONG THE SOUTHERLY LINE OF SAID NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 27, SOUTH 89'53'26,, EAST, 5O.OO FEET TO A POINT ON THE EASTERLY LINE OF THE EASEMENT DESCRIBED IN PARTA OF THE ROAD DEED RECORDED FEBRUARY 3, 1967 AS INSTRUMENT NO, 1895, OFIICIAL RECORDS OF sAtD couNTY, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE, ALONG SAlD EASTERLY LINE THE FOLLOWING FOUR (4} COURSES:

1. NORTH OO'32'20'' WEST,71,77 FEET;
2, NORTH 0L"22,L3" EAST, 300.17 FEET;

3. NORTH 00.32'20,'WEST, 218.53 FEET TO THE BEGINNING OF A CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 27,0O IEEI;
4, NORTHEASTERLY ATONG SAID CURVE THROUGH A CENTRAL ANGLE OF 96'11'04'AN ARC LENGTH OF 45,33 FEET TO THE BEGINNING OF A COI\IPOUND CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 95O,OO FEET, A RADIAL LINE FROM SAID BEGINNING OF CURVE BEARS SOUTH 05'38.44'' WEST, SAID COMPOUND CURVE BEING THE SOUTHERLY LINE OF THE EASEI\IENT DESCRIBED IN THE ROAD DEED RECORDED FEBRUARY 1, 1957 lN BOOK 53536, PAGE 146, OFFICIAL RECORDS OF SAlD COU NTY.

THENCE, ALONG SAID SOUTHERLY LINE, THE FOLLOWING TWO (2) COURSES

1. EASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 23" 13'29" AN ARC LENGTH OF 385,08 FEEÏ;

2. SOUTH 6T"07'47'' EAST, ß2.47 FEET TO THE SOUTHWESTERLY LINE OF THE EASEMENT DESCRIBED IN THE DOCUMENT ENTITLED "AMENDED FINAL ORDER OF CONDEMNATION,, RECORDED MAY 17, 201145 INSTRUMENT NO. 203.10695447, OFFICIAL RECORDS OF SAID COUNTY;

THENCE, ALONG THE SOUTHWESTERLY, WESTERLY AND NORTHWESTERLY LINES OF THE PARCELS DESCRIBED IN SAID DOCUMENT, THE FOLLOWING SIX (6) COURSES:

L, souTH 51'38',47" EASI 254,92 FEET;

2. SOUTH 61"07'47" E45T,64.35 FEEÏ;
3, SOUTH !6"06'22" EAST,34,40 FEET;
4, SOUTH 29.03'41" WEST,290.26 FEETTOTHE BEGINNING OFACURVE, CONCAVE EASTERLY, HAVING A RADIUS OF 466,50 FEET;
A-1
A-5595

5. SOUTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 18'42'32'' AN ARC LENGTH OF

1.52.33 FEET;
6, SOUTH 54'1]7'21, WEST, 23.09 FEET TO THE SOUTHERLY LINE OF THE NORTH HALF OF THE

SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 27;
THENCE, ALONG SAID LINE, NORTH 89"55'37., WEsT, 209,72 FEET TO THE EASTERLY LINE OF THE SOUTHWEST QUARTER OF THE NORTHWEsT QUARTER OF THE NORTHWEsT QUARTER OF SAID sECTION 27; THENCE, ALONG SAID IINE, NORTH 00"37.42'' WEST, 335,60 FEET TO SAID SOUTHERLY LINE OF SAID NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 27; THENCE, ALONG SAID SOUTHERLY LINE, NORTH 89"53'26.. WEST, 619.58 FEET TO THE TRUE POINT OF BEGINNING.

THE ABOVE DESCRIBED PARCEL CONTAINS 12.13 ACREs, I\4ORE OR LESS.

A-2
A-ïrq5
EXHIBIT "B''

DEPICTION OF THE PROPERTY
B-1
A-5 59 5
EXHIBIT "C"

ADDITIONAL PUBLIC BENEFITS
1 Where applicable, one exarnple of how this provision may be satisfied with respect to tenants is that, prior to the occupåncy of spåce by a tenant, Owner may provide a written statement to the tenant which ìncludes words to the efÍe.l ol "Owner encouruges Tenant to híre or contrdct w¡th local, women-owned, ot m¡nar¡ty-owned f¡ms ot locql res¡dents, woñen, ond m¡notities ãs patt of its bus¡ness ptoctices."
c-1
owner shall pay seventeen Thousand F¡ve
Hundred Dollars {S17,500.00) to the Pêlmdêle
Commun¡ty Foundation to be used to support
community activit¡es related to healthy
lifestyle.

S7,5oo upon occupancy of
second medical office building
within the Project, with 52,500
per year paid on the four
anniversary dates of that first
payment.

Donation to Palmdale
Commun¡ty Foundat¡on 1
The Project will comply w¡th all mandatory
provìsions of the Californìa Green BuÌlding
Standards Code.

At the times required under
applicable regulat¡ons. 2 Susta¡nability
The Project's park¡ng structures shall include
up to 1.0% (as determined by Owner), more
charg¡ng stations than otherwise required by
appl¡cable regulations.
$ Charging Stat¡onsAs built,
owner shall provide the c¡ty wlth criter¡a for
the use of public spaces within the Project
area for act¡v¡t¡es such as health fairs,
education seminars, marathons, festìvals,
special health screenings, and other healthy-
l¡ving themed events.

Prior to occupancy of the thìrd
medical office build¡ng w¡thin
the Project,
4 Public Spaces
owner shall develop a program to facilitate
short-term, below-market leases to local non-
prof¡t health care providers for up to a
cumulat¡ve total of 2,000 sf of office space.

After completion of the Project
and occupancy of all buildings
within the Project.
5Non-Profit Health Care
Provider Leases
To the extent w¡thin its control, commercially
feasible and reasonable, and consistent with
all applicable laws, Owner shall encourage the
hiring of local, women-owned, and minority-
owned firms or locêl residents, women and
minority individuals {i) for Project construction
and {i¡) bV future tenants of the Project.l
6 HiringAs âpplicable.

Developer shall use ¡ts best efforts to develop
a commercially feasible and reasonable
program for a service to transport seniors
within the City to the Project,
After the Project is complete
and fully Ieased. 7 Shuttle Access
A-55q5
EXHIBIT "D"
FEES
Development Fees shall be paid for those
Development Fees in effect on the Effective Date
at the rates in effect on the Effective Date, lf,
after the Effective Date, the City cumulatively
decreases the rate of any Development Fee by
50% or more, the Project shall be subject only to
the reduced rate,
subject to the combined
Fee Cap, Development Fees
incurred before completìon
of construction of the
second parking structure
for the Project shall be pa¡d
upon complet¡on of that
construction and the
certification by the City
that the second parking
structure ¡s available for
use. Development Fees
incurred after that date
shall be paid when due
under applicable City
regulation.
1 Development Fees
(See Section 5.11)
Under no circurnstance shall Owner be required
to pay more than Three Million Dollars
{53,000,000) toward the combined amount of
{the "combined Fee cap")r
Development Fees (including the full amount
of all Development Fees paid through the
Parking Dìstrict with respect to the Parking
Facilities); and
Adrninistrative Fees (see ltem 2 below),
Owner shall pay all Adm¡nistrêtive Fees whìch
would normally be charged for a¡l projects wìthin
the City under City regulat¡ons ¡n effect at the
time payment is due.

Development Fees {including the full amount
of all Development Fees pa¡d through the
Parking District with respect to the Parking
Fac¡litìes); and
Administrat¡ve Fees.

Subject to the Combined
Fee Cap, Administrative
Fees shall be paid at the
time those fees would
normally be pa¡d for all
projects within the City
under City regu lations in
effect when that payment
is normally due.
^ Administrative Fees z (See Section 5.1)
Under no circumstance shall Owner be required
to pay more than the Combined Fee Cap towardt
Pass-Through Fees shall be
paid at the t¡me those fees
v,rould normally be paid for
all projects within the C¡tv,
provided that no Pass-
Through Fees shall be
collected from the Project
more than thirty (30) days
before those fees are
required to be delivered to
the pass-through agencies,
3Pass-Through Fees
(See Secl¡on 5.30)
Owner shall pay all Pass-Through Fees which are
collected, but not imposed, by the City.

D-1

City Council Staff Report

DATE: NOVEMBER 4, 2025

TO: HONORABLE MAYOR PRO TEM AND CITY COUNCIL

FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT

DISTRICT: ALL

SUBJECT: APPROVE THE SECOND AMENDMENT TO AGREEMENT WITH FRAZIER CAPITAL VALUATION, INC., FOR PROPERTY

VALUATION, APPRAISALS AND BROKER SERVICES,
INCREASING THE AGREEMENT BY $100,000 FOR A TOTAL NOT
TO EXCEED AMOUNT OF $140,000 AND EXERCISE THE FINAL
ONE-YEAR EXTENSION THROUGH JANUARY 20, 2027; AN D
ADOPT RESOLUTION NO. CC 2025 -090, A RESOLUTION OF THE

CITY COUNCIL OF THE CITY OF PALMDALE, AUTHORIZING THE

INTERIM CITY MANAGER TO EXECUTE THE SECOND

AMENDMENT TO AGREEMENT WITH FRAZIER CAPITAL
VALUATION, INC., AND GRANTING AUTHORIZATION TO PAY ALL
FEES

RECOMMENDATION

Staff recommend that the City Council:

1. Approve the Second Amendment to Agreement No. A -7570, with Frazier Capital Valuation, Inc., for property valuation, appraisals, and broker services, increasing the agreement by $100,000 for a total not to exceed amount of $140,000 and exercise the final one-year extension through January 20, 2027; and,

2. Adopt Resolution No. CC 2025-090, a Resolution of the City Council of the City of Palmdale authorizing the Interim City Manager to execute the Second Amendment to the Agreement No. A-7570, including minimal and/or non-substantial changes, with Frazier Capital Valuation, Inc., and granting authorization to pay all fees.

BACKGROUND

On January 20, 2022, the City Council awarded a Request for Proposal (RFP) and entered into an agreement with Frazier Capital Valuation, Inc., for the provision of professional appraisal services. Frazier Capital Valuation, Inc. de monstrated a comprehensive knowledge of applicable Federal, State, and local reporting requirements.

Report to Mayor Pro Tem and City Council
Re: Approve Second Amendment to Agrmt No. A-7570 and Adopt Reso. No. CC 2025- 090
November 4, 2025

Page 2 ends

Palmdale City CouncilNovember 4, 2025

Palmdale City Council
November 4, 2025