Palmdale City Council
January 13, 2026

LEGISLATIVE BODY

ERIC OHLSEN, MAYOR

AUSTIN BISHOP, MAYOR PRO TEM
RICHARD J. LOA, COUNCILMEMBER

LAURA BETTENCOURT, 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
Members of the public may speak for up to
three (3) minutes
on the Consent Calendar,

CITY COUNCIL

SUCCESSOR AGENCY

ADJOURNED REGULAR MEETING

CITY COUNCIL CHAMBER
38300 SIERRA HIGHWAY

SUITE B
PALMDALE, CA 93550
TUESDAY, JANUARY 13, 2026
5:00 PM
www.cityofpalmdaleca.gov

WELCOME
City Council
Tuesday, January 13, 2026
Public Hearings, Appointments, New Business, and Closed Session items. To address the Legislative Body on any agendized item, please complete a speaker card for the City Clerk and indicate the item you wish to speak on. Speaker cards are available in the foyer of the Council Chambers.

Please follow these guidelines to ensure the meeting runs smoothly:

All comments must be respectful and courteous.

Comments that are personal, threatening, obscene, insulting, or that attack others or berate differing viewpoints will not be allowed.

Individuals who violate these rules or disrupt the meeting will be ruled out of order by the Chair and must immediately stop speaking.

Disruptive individuals may be asked to leave the meeting.

1. CALL MEETING TO ORDER

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

2. ROLL CALL

MAYOR OHLSEN, MAYOR PRO TEM BISHOP, COUNCILMEMBERS LOA,

BETTENCOURT, ALARC
Ó
N

3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

4. PRESENTATIONS

4.1 Presentation recognizing City staff for their exceptional efforts, reliability, and unwavering commitment to keeping our roads, utilities, and public spaces safe and operational during severe weather events.

4.2 Presentation on Formal Procurement Methods.

5. 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.

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

5.2 Receive and file the Monthly Investment Activity Reports for November 2025.

City Council
Tuesday, January 13, 2026

SR Monthly Investment Reports November 2025.docx

Rpt. Monthly Investment Reports November 2025.pdf

5.3 Adopt Resolution No. CC 2026-001, a Resolution of the City Council of the City of Palmdale restating the City's Investment Policy and repealing Resolution No. CC 2025-004, and adopt Resolution No. CC 2026-002, a Resolution of the City Council of the City of Palmdale restating the Investment Policy for the City contributions to the Retiree Health Reimbursement Arrangement (HRA) plan and the Retiree Health Premium Supplement (HPS) plan and repealing Resolution No.

CC 2025-005.

SR Adopt Reso. Nos. CC 2026-001 and CC 2026-002.docx

Reso. No. CC 2026-001 City Investment Policy.docx

Reso. No. CC 2026-002 Retiree Investment Policy.docx

5.4 Review and approve the amended Palmdale Aerospace Incentive Program Guidelines and Application in accordance with development milestones for new construction projects.

SR Amended Palmdale Aerospace Incentive Program Guidelines and Application.docx

Amended Palmdale Aerospace Incentive Program Guidelines and Application.pdf

5.5 Approve Construction Agreement with Azas Engineering, Inc., for PN 916, 3rd Street East ADA Improvements and Sidewalk Gap Closure Project for a total not to exceed amount of $435,065 for a term of 45 working days from the date of the Notice to Proceed.

SR PN 916 3rd Street East.docx

Agrmt No. A-9269 with Azas Engineering Inc.pdf

Vicinity Map.pdf

5.6 Approve the First Amendment to Agreement with RHA Landscape Architects- Planners, Inc., for design services for PN 871, Oasis Park Basin Upgrades Project, increasing the agreement by $57,607 for a total not to exceed amount of $364,205 for a term of 12 months from the date of the Notice to Proceed.

SR Agrmt No. A-9293 First Amendment with RHA Landscape Architects- Planners.docx

Agrmt No. A-9293 First Amendment with RHA Landscape Architects-Planners.pdf

Agrmt No. A-9293 with RHA Landscape Architects-Planners.pdf

5.7 Approve Second Amendment to Agreement for administrative services with California Choice Energy Authority (CalChoice) in the amount of $1,823,978 for a term of one year.

SR Agrmt No. A-6826 Second Amendment with CalChoice.docx

Agrmt No. A-6826 Second Amendment with CalChoice.docx

Agrmt No. A-6826 First Amendment with CalChoice.pdf

Agrmt No. A-6826 with CalChoice.pdf
City Council
Tuesday, January 13, 2026

5.8 Approve the minutes from the previous meeting.

Mins 12 02 2025.pdf

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

6.1 Continue item to February 3, 2026 - Adopt Ordinance No. 1665, an Ordinance of the City Council of the City of Palmdale amending Title 8, Health, Safety, and Technical Construction Codes of the Palmdale Municipal Code regarding eligibility requirements for organizations obtaining safe and sane firework permits and finding the ordinance exempt from environmental review.

Memo Ord. No. 1665 Continuance.docx

7. APPOINTMENTS

Now is the time for public participation.

7.1 Review and provide direction on changes to existing committee appointments.

SR City Council Committee Appointments.docx

8. CITY MANAGER’S REPORT

9. SHERIFF'S REPORT

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

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

11.1 Council Reports

Monthly Informational Report 011326 Bishop.docx

Monthly Informational Report 011326 Bettencourt.docx

Monthly Informational Report 011326 Ohlsen.docx

Monthly Informational Report 011326 Loa.docx

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

PRESENTATION BY CITY ATTORNEY

12.1 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Concerning CV Communities, LLC v. Antelope Valley-East Kern Water Agency, et al.

City Council
Tuesday, January 13, 2026
Los Angeles Superior Court 20STCV10953
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).

12.2 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation: (1 potential case – facts and circumstances unknown to potential plaintiffs)
This closed session is being held pursuant to the authority of California Government Code Section 54956.9, paragraph (2) of subdivision (d).

12.3 PUBLIC EMPLOYEE PERFORMANCE EVALUATION

Title: City Attorney

This closed session is being held pursuant to the authority of California Government Code Section 54957.

13. ANNOUNCEMENT BY CITY ATTORNEY

14. ADJOURN
meeting to February 3, 2026, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

City Council
Tuesday, January 13, 2026
https:/ /attend.wordly.ai/join/SLOR-7400

City Council Staff Report

DATE: JANUARY 13, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

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

RECOMMENDATION

Staff recommend that the City Council:

1. Receive and file the November 2025 monthly investment activity report s 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 detail 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 investment reports 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 presented 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 and City Council
Re: Monthly Investment Reports November 2025
January 13, 2026

DISCUSSION

Compliance with Investment Policy

For November, the City’s invested portfolio totaled $294,775,260, a decrease of $4,878,616 from the previous month and $16,957,697 less than the prior year. The monthly decrease was due to the investment maturity that occurred during the month.

The funds from the maturity were used to cover expenditures related to a legal settlement that became due. It is expected that insurance will reimburse the expense in future months, and at that time, the City will evaluate available funds and reinvest accordingly.

The par value of the Successor Agency’s portfolio as of November was $9,276,443, a decrease of $941,564 from the prior month due to debt service payments.

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 t he 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 operational 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, ensuring the City and Successor Agency meet their cash flow requirements.

The City’s LAIF balance at the end of November was $103,815,128, no changes from the prior month.

The Successor Agency’s LAIF balance at the end of November was $3,985,613, no changes from the prior month.

Report to Mayor and City Council
Re: Monthly Investment Reports November 2025
January 13, 2026

The City’s CAMP balance at the end of November was $ 53,910,080 compared to $53,729,148 in October. The increase is due to interest earned.

The interest rates presented are the most current rates available as of the date of this report. As of November 30, 2025, the interest rates for LAIF and CAMP investments were 4.096 percent and percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of October were 4.150 percent and 4.26 percent. This time last year, LAIF and CAMP rates were at 4.477 percent and 4.87, respectively.

The chart above shows the LAIF and CAMP average monthly yields from February 2025 through November 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 investment portfolios to avoid incurring unreasonable and avoidable risks associated with specific security types or individual financial institutions.

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

4.33% 4.31%

4.28% 4.27% 4.27% 4.26% 4.25% 4.21%

4.15%

4.10%

4.51%

4.47% 4.45% 4.42% 4.40% 4.41% 4.40%

4.36%

4.26%

4.10%

3.80%

3.90%

4.00%

4.10%

4.20%

4.30%

4.40%

4.50%

4.60%
Feb Q3 Mar Apr May Q4 Jun July Aug Q1 Sep Oct Nov
Pooled Investments Monthly Yields

LAIF CAMP
Report to Mayor and City Council
Re: Monthly Investment Reports November 2025
January 13, 2026

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

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 Investment Reports November 2025

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
NOVEMBER 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 11-17-25 09-30-30 CITY 91282CPA3 U.S. Treasury Note 3.63 3,000,000.00 3,015,470.91 3,001,130.25 TOTAL U.S. TREASURY SECURITIES 57,700,000.00$ 57,983,311.49$ 57,491,002.25$

GOVERNMENT AGENCY PAPER
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 12-21-21 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 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 11-17-25 11-06-30 CITY 3130B8BF8 Federal Home Loan 3.95 830,000.00 833,082.01 832,080.25 TOTAL GOVERNMENT AGENCY PAPER 66,230,000.00$ 64,597,434.03$ 65,230,962.80$

CITY OF PALMDALE INVESTMENTS

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
NOVEMBER 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 49,231,271.14 49,231,271.14 49,231,271.14 9-19-2024 n/a PFA 40-19-078 36,500,000.00 36,500,000.00 40,178,315.84 9-28-2021 n/a ARPA 19-19-004 0.78 14,405,541.45 14,405,541.45 14,405,541.45 TOTAL LAIF ACCOUNTS 100,136,812.59$ 100,136,812.59$ 103,815,128.43$

CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM
6080-01 n/a CITY 6080-01 0.30 53,910,079.79 53,910,079.79 53,910,079.79 TOTAL CAMP ACCOUNTS 53,910,079.79$ 53,910,079.79$ 53,910,079.79$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
NOVEMBER 30, 2025

PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT

UBS FINANCIAL SERVICES
n/a n/a CITY 0.00 304,963.72 304,963.72 304,963.72
TOTAL UBS FINANCIAL SERVICES ACCOUNTS 304,963.72$ 304,963.72$ 304,963.72$ TOTAL CITY INVESTMENTS 292,377,856.10$ 290,862,388.66$ 294,775,259.92$

STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
11-20-84 n/a LIBRARY 16-19-012 0.78 14,079.76
TOTAL LIBRARY INVESTMENTS 14,079.76$
SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 05-10-95 n/a BOND 95421220 0.35 122.56
05-10-95 n/a IMPROVEMENT 95421222 0.10 178,115.07
TOTAL SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1 178,237.63$

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 14.13
04-06-95 n/a IMPV-ACQUI 95420884 0.01 2,964,733.10
04-06-95 n/a BOND 95420887 0.15 0.15
TOTAL RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1 2,964,747.38$

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 93.58
08-01-19 n/a RESERVE 242969003 0.00 722,957.02
08-01-19 n/a SP TAX - REFNDING BOND 242969004 0.01 15,151.91 TOTAL ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1 738,202.51$

LIBRARY INVESTMENTS

FISCAL AGENT CASH

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
NOVEMBER 30, 2025

PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT

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 14,755.57
n/a RESERVE FUND 251009001 0.01 644,991.43
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021659,747.00$

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 29,578.79
11-08-06 n/a ADM EXP 106844002 0.01 1,832.83
11-08-06 n/a RESERVE FUND 106844003 0.01 86,826.90
TOTAL 2006-1 GODDE HILL ESTATE SEWER IMPROVEMENTS LOIB 118,238.52$ 2015 HA DEBT SERVICE RESERVE
Fiscal Agent: Bank of America
11-19-15 n/a DEBT SVC RESERVE 1257964992 0.08 41,061.49 TOTAL 2015 HA DEBT SERVICE RESERVE 41,061.49$

PARS RESTRICTED CASH FOR PENSION STABILIZATION TRUST FUND 05-23-18 n/a CITY 104790895775 Pub. Agency Retirement Svcs. 2.60 12,358,179.92 TOTAL PARS PENSION TRUST FUND 12,358,179.92$

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 0.00 152,861.48
09-03-15 n/a INTEREST ACCT 277067001 0.01 6.95
09-03-15 n/a BOND RESERVE 277067003 0.00 281,022.06
09-03-15 n/a REPAIR & REPLACE FUND 277067004 0.00 1,420,511.73 TOTAL 2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS 1,854,402.22$

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 0.50
04-05-17 n/a REVENUE REFUNDING BOND 271128001 n/a 0.02
04-05-17 n/a REVENUE REFUNDING BOND 271128002 0.10
TOTAL 2017 PFA $17.4M LEASE REVENUE BONDS 0.62$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
NOVEMBER 30, 2025

PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED

DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT

BOND PROCEEDS
2023 A&B SERIES ACQUISITION & CONSTRUCTION REVENUE BOND Fiscal Agent: U.S. Bank National Association (fka First Trust) 248041000 437,924.89
11-30-23 n/a INTEREST 248041001 505,008.84
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 4,800,401.36
TOTAL 2023 A&B SERIES B ACQUISITION & CONSTRUCTION REV BOND 5,743,349.71$ GRAND TOTAL - FISCAL AGENT CASH 24,656,167.00$
Cash on Hand 14,153,750 $
Pooled Cash Investments

City: 292,182,744 $
Insur Fund: 2,592,516 $ 294,775,260 $ Library Investments 14,080 $

Subtotal 308,943,090 $

City/AD/CFD/PCA/PFA/HA
Fiscal Agent Cash 24,656,167 $

Grand total 333,599,257 $

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 November, 2025

SUMMARY OF CASH AND INVESTMENTS

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
NOVEMBER 30, 2025

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 49,231,271.14 $
Subtotal - $ - $ - $ 49,231,271.14$ LAIF - PFA ACCOUNT 40-19-078
Beginning Balance 40,178,315.84 $
Subtotal - $ - $ - $ 40,178,315.84$ LAIF - LIBRARY ACCOUNT 16-19-012
Beginning Balance 14,079.76 $
Subtotal - $ - $ - $ 14,079.76$ LAIF - ARPA ACCOUNT 19-19-004
Beginning Balance 14,405,541.45 $
Subtotal - $ - $ - $ 14,405,541.45$ CAMP
Beginning Balance 53,729,147.65 $
11-30-25 180,932.14 $
Subtotal - $ - $ 180,932.14$ 53,910,079.79$ UBS Financial Services
Beginning Balance 103,464.85 $
11-30-25 14,966.87 $
11-30-25 4,150,000.00$
11-30-25 (130,257.50) $
11-30-25 (3,833,210.50) $
Subtotal 4,150,000.00$ (3,963,468.00) $ 14,966.87 $ 304,963.72 $ Total 4,150,000.00$ (3,963,468.00) $ 195,899.01 $ 158,044,251.70$

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
NOVEMBER 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)
-
3135G06G3 Fannie Mae 06-04-21 11-07-25 FP 3,000,000.00$ 7,500.00 $ 3,007,500.00$ 2,960,070.00 39,930.00 3134GXBM5 Federal Home Loan Note 12-17-21 11-12-25 FP 1,150,000.00$ 3,450.00 $ 1,153,450.00$ 1,134,187.50 15,812.50 3133ETUM7 Federal Farm Credit 08-28-25 02-25-30 FP CALLED 5,000,000.00 $ 56,625.00 $ 5,056,625.00$ 5,000,000.00 - -$ -
-$ -
9,150,000.00$ 67,575.00 $ 9,217,575.00$ 9,094,257.50$ 55,742.50$ Total Number of Transactions:

POOLED CASH - INVESTMENTS MATURED OR CALLED

CITY OF PALMDALE

TREASURER'S REPORT OF INVESTMENTS
NOVEMBER 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 91282CPA3 U.S. Treasury Note 11-17-25 TN 09-30-30 3,000,000.00$ (1,130.25) 3,001,130.25$ 14,340.66 $ 3,015,470.91 3.63 3130B8BF8 Federal Home Loan 11-17-25 FP 11-06-30 830,000.00$ (2,080.25) 832,080.25$ 1,001.76 $ 833,082.01 3.95 - -
- -
- -
- -
3,830,000.00$ (3,210.50) $ 3,833,210.50$ 15,342.42 $ 3,848,552.92$ 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
November 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 3,985,613.24
3,985,613.24$

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 2.54 548,959.90
08-20-02 n/a Interest Acct 94460701 0.04 703,165.68
08-20-02 n/a Principal Acct 94460702 0.04 271,967.68

TOTAL CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) 1,524,093.26$

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 12.37
04-26-16 n/a Interest Acc 245113001 N/A 0.00
TOTAL 2016 SA $31.5M Tax Allocation Refunding Bonds Series A 12.37$

GRAND TOTAL - FISCAL AGENT CASH

SUMMARY OF CASH AND INVESTMENTS
Cash on Hand 5,290,820$ 5,300,157.76$
($9,338)
Pooled Cash Investments 3,985,613$ $0
5,290,820.26$
Successor Agency Fiscal Agent Cash -$ *

Grand total 9,276,433$

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

LAIF interestrates are as of November 30, 2025.

S:\Cash and Investment\Investment\Investment Reports\25-26\05 Nov 2025\[NOV 2025 Successor Investment Report.xls]Nov 2025 Monthly

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

TREASURER'S REPORT OF INVESTMENTS
November 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 3,985,613.24
Subtotal -$ -$ -$ 3,985,613.24$

City Council Staff Report

DATE: JANUARY 13, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: OPERATIONS DEPARTMENT

FINANCE DIVISION

DISTRICT: ALL

SUBJECT: ADOPT RESOLUTION NO. CC 2026-001, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE STATING THE CITY’S INVESTMENT POLICY AND REPEALING RESOLUTION NO. CC
2025-004, AND ADOPT RESOLUTION NO. CC 202 6-002, A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

RESTATING THE INVESTMENT POLICY FOR THE CITY

CONTRIBUTIONS TO THE RETIREE HEALTH REIMBURSEMENT

ARRANGEMENT (HRA) PLAN AND THE RETIREE HEALTH

PREMIUM SUPPLEMENT (HPS) PLAN AND REPEALING
RESOLUTION NO. CC 2025-005

RECOMMENDATION

Staff recommend that the City Council:

1. Adopt Resolution No. CC 2026-001, a Resolution of the City Council of the City of Palmdale stating the Investment Policy and repealing Resolution No. CC 202 5- 004; and,

2. Adopt Resolution No. CC 2026-002, a Resolution of the City Council of the City of Palmdale stating the Investment Policy for the City contributions to the Retiree Health Reimbursement Arrangement (HRA) Plan and the Retiree Health Premium Supplement (HPS) Plan and repealing Resolution No. CC 2025-005.

BACKGROUND

Senate Bills 866 and 564 were signed into law in 1995 to provide additional requirements on public agency investments. SB 866 added to California Government Code Section 53600, Section 53600.3 (the “prudent investor” standard) and Section 53600.5 mandating and prioritizing three objectives of investing public funds (i.e., safety, liquidity, and yield) and Section 53600.6 declaring the deposit and investment practices of local agencies to be an issue of statewide concern. SB 564 also repealed and rewrote Report to Mayor and City Council
Re: Reso. Nos. CC 2026-001 and CC 2026-002
January 13, 2026

California Government Code Section 53646, mandating cities and other local agencies to adopt a written investment policy and submit it to the legislative body of the local agency. Further more, this policy and any changes to it shall be reviewed at least annually at a public meeting. SB 564 also required quarterly reports concerning financial holdings, a statement of compliance along with the report , and a statement concerning the ability to meet cash flow needs in the ensuing six months that must be filed with the agency’s governing body.

DISCUSSION

The City Council last reviewed and adopted Resolution No. CC 202 5-004 and Resolution No. CC 2025-005 on January 22, 2025, stating the City’s Investment Policy and the Investment Policy for City contributions to the Health Reimbursement Arrangement Plan (HRA) and the Retiree Health Premium Supplement (HPS) Plan. The City reviews the Investment Policies annually and makes changes where necessary.

The attached Investment Policies are presented to the Council for annual approval pursuant to SB 564. There are no substantive changes to the policies.

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.

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

Reso No. CC 2026-001 City Investment Policy
Reso No. CC 2026-002 Retiree Investment Policy

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2026-001

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE RESTATING THE CITY’S INVESTMENT POLICY AND REPEALING
RESOLUTION NO. CC 2025-004.

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

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

SECTION 1. Purpose

This Resolution states the City’s investment policy , which is intended to provide guidelines to the City Treasurer for the prudent investment of the City’s temporary idle cash not otherwise governed by bond indentures or bond resolutions and to outline policies for maximizing the efficiency of the City’s cash management system. The goal is to preserve public trust and safeguard public funds . These guidelines do not supersede applicable State laws and City ordinances. A Glossary of investment terms is provided at the end of the resolution for reference.

SECTION 2. Scope

This investment policy applies to the investment of all cash and various funds of the City as identified in the Annual Comprehensive Financial Report, except for the employee’s retirement and deferred compensation funds and those cash assets governed by bond indentures or bond resolutions. The following is a list of funds included:

2.1 General Fund

2.2 Special Revenue Funds

2.3 Capital Project Funds

2.4 Proprietary Funds

2.5 Trust and Successor Agency Funds not otherwise invested with the Trustee/Fiscal Agent

SECTION 3. Prudence

Investments shall be made with judgment and care, under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

Resolution No. CC 2026-001

3.1 Governing bodies of local agencies, or persons authorized to make investment decisions on behalf of the agency, are trustees, and therefore fiduciaries subject to the prudent investor standard . The trustee is required to consider the general economic conditions and the anticipated needs of the agency when investing, reinvesting, purchasing, acquiring, exchanging, and selling or managing public funds.

3.2 The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overal l portfolio. Investment officers acting in accordance with the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectatio ns are reported in a timely manner and appropriate action is taken to control adverse developments.

SECTION 4. Objectives

The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City Treasurer maintains a diversified portfolio to accomplish the primary objectives of safety, liquidity, and yield (in that order of priority).

4.1 Safety: The safety/risk associated with an investment refers to the potential loss of principal, accrued interest , or a combination of these . The City seeks to mitigate credit risk by continual monitoring of financial institutions with which it will do business and by careful scrutiny of the creditworthiness of the investment instruments as well as the institutions. Such resources as Moody’s Investor, Standard & Poor’s, and Fitch rating services are utilized for this review . The City seeks to mitigate rate risk through diversification of instruments as well as maturities.

4.2 Liquidity: The portfolio will be structured with sufficient liquidity to allow the City to meet all anticipated cash requirements . This will be accomplished through matching maturities to expected cash needs, the State Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), and AAA/Aaa rated money market funds with immediate withdrawal provision.

4.3 Yield: A competitive market rate of return is the third objective of the investment program after the fundamental requirements of safety and liquidity have been met.

SECTION 5. Delegation of Authority

California Government Code Section 53607 provides the authority for the legislative body of the local agency to invest the funds of the local agency or to delegate the full responsibility to the City Treasurer. The Director of Operations, as City Treasurer, delegates this authority to the Deputy City Treasurer. In the absence of the Director of Operations and Deputy City Treasurer, authority to invest funds may be delegated to the Finance Manager or Senior Analyst. Section 53607 of the State of California Government Resolution No. CC 2026-001

Code limits the authorization of the legislative body to delegate investment authority to a one-year period, renewable annually.

5.1 City Council: By adoption of this policy, the City Council has authorized the City Treasurer to invest City surplus funds in accordance with California Government Code Section 53600, et. seq. and to invest Agency bond or COP proceeds in accordance with California Government Code Section 5922(d) and 53601(I) . The delegation of authority to the City Treasurer shall remain in effect until it expires or is revoked, whichever occurs first. The City Treasurer shall make a monthly report to the City Council of all transactions made pursuant to this delegation of authority.

5.2 City Treasurer: The City Treasurer or designee will execute investment transactions on a daily basis in accordance with this policy. The City Treasurer has established a system of controls and segregation of responsibilities for investment functions to ensure the maintenance of internal control over the investment function.

5.3 The City Council retains the authority to approve any amendments to the Investment Policy . The City Treasurer is authorized to update internal g uidelines and procedures at any time in order to carry out the duties as the Chief Investment Officer for the City.

SECTION 6. Ethics and Conflicts of Interest

The Director of Operations and other employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program or which could impair their ability to make impartial investment decisions. The Director of Operations and other employees involved in the investment process shall disclose any material interests in financial institutions with which they conduct business within their jurisdiction, and they shall further disclose any material personal financial/investment p ositions that could be related to the performance of the City’s investment portfolio and shall refrain from personal investment transactions with the same individual or firm with whom business is conducted on behalf of the City.

The Director of Operations and other employees involved in the investment process are required to file annual disclosure statements as required by the Fair Political Practices Commission. During the course of the year, if there is an event subject to disclosure that could impair the ability of the Director of Operations or investment employees to make impartial decisions, the City Council will be notified in writing within ten (10) days of the event.

SECTION 7. Authorized Financial Dealers and Institutions

7.1 The City shall t ransact business only with issuers, banks, savings and loans, and registered securities dealers. The City Treasurer shall maintain a listing of financial institutions authorized to provide investment services to the City.

7.2 Selection of financial instit utions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City.

Resolution No. CC 2026-001

7.3 The Treasurer and the Investment Oversight Committee shall obtain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives, and can provide written agreements to abide by the conditions set forth in the City of Palmdale Investment Policy . Investment acco unts with all financial institutions shall be standard non -discretionary accounts and may not be margin accounts.

7.4 All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply to the Treasurer the following: audited financial statements, proof of National Association of Security Dealers certification, proof of state registration, SEC registration verification, broker/dealer questionnaire, and certification of having read the California Government Code Section 53600 et seq. and the City’s Investment policy and that all securities offered to the City shall co mply fully and in every instance with all provisions of the California Government Code.

7.5 The signatures of two individuals shall be required for the opening and closing of any bank account and broker account (as defined in the Palmdale Municipal Code Section 3.14.020). The Accounting Officer, who is independent of the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shall provide this list of accounts to the City’s independent auditor.

7.6 Public deposits shall be made only in qualified public depositories within the State of California as established by State law . The Federal Deposit Insurance Corporation shall insure deposits, or, to the extent the amount exceeds the insured maximum, shall be collateralized with securities in accordance with State law.

7.7 Whenever possible, investment staff shall obtain a minimum of two quotations, preferably three, prior to entering into an investment transaction. Staff will buy or sell at the pri ce that is most advantageous to the City and meets investment requirements. Treasury bills, treasury notes, and federal agency securities will only require one quotation due to minimal commissions.

SECTION 8. Authorized and Suitable Investments for Surplus Funds

California Government Code Section 53601 defines eligible securities for the investment of surplus funds by local agencies . Surplus funds of the City are invested in compliance with this statute and as further limited in this Investment Policy. In any event, no security may be purchased with a remaining maturity in excess of five years without specific legislative authority.

8.1 Demand deposits of up to $2,000,000 (and $2,500,000 in the aggregate).

8.2 Bank of America Cash Management Sweep Agreement.

8.3 U.S. Government: United States Treasury Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government . There shall be no limitation as to the percentage of the portfolio invested in this category . The maturity of Resolution No. CC 2026-001

these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.

8.4 U.S. Government: United States Federal Agency Securities are backed by the implied support of the United States Government . There shall be no limitation as to the percentage of the portfolio invested in this category. The maturity of these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.

8.5 Municipal Obligations: Bonds, notes, warra nts, or other evidence of indebtedness of the State of California or of any local agency within the State of California.

A maximum of 10 percent may be invested in municipal obligations. The maturity on these investments shall not exceed State investment g uidelines of five years without the prior approval of the Investment Oversight Committee. In addition, the issuer itself must meet the minimum State investment guidelines of having a minimum credit rating of “A” or equivalent by two of the three major rati ng agencies (Moody’s, Standard & Poor’s, and Fitch).

8.6 Corporate Notes: Medium Term Corporate Notes, with a maximum maturity of five years may be purchased . Securities eligible for investment shall be rated A or better by Moody's or Standard & Poor's rating services. A maximum of 15 percent of the portfolio may be invested in medium-term corporate notes, with a maximum of 5 percent per issuer.

8.7 Bankers Acceptances: Bills of exchange or time drafts drawn on and accepted by commercial banks, which are eligib le for purchase by the Federal Reserve System, are known as banker’s acceptances . Purchases of these instruments may not exceed 180 bankers days maturity. A maximum of 2 percent of the total invested portfolio may be invested in the bankers acceptances of any one commercial bank.

8.8 Certificates of Deposit (CDs): Certificates of deposit or “time deposits” of up to $250,000 are federally insured . Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing inst itution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities. The statute does not limit CDs; however, this Investment Policy shall limit such investments to a maximum of 25 percent of the portfolio and to a maximum of 15 percent deposited in any one institution .

In addition, time deposits shall be placed in institutions meeting all capital requirements and rated” AA” or higher by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch) for any deposits over $250,000.

If a local bank does not have two ratings from two of the three rating agencies that are double AA or higher (Moody’s, Standard & Poor’s, and Fitch), then the City Treasurer will use alternative methods to determine the financial strength of the local bank when depositing over $250,000 . The alternative methods will include a review of the latest three-year earnings trend and a review of the ratios showing bank capital as a percentage of weighted assets and average assets . These ratios are shown in the audited annual Resolution No. CC 2026-001

report for each bank and will be reviewed annually . The Federal Deposit Insurance Corporation (FDIC) issues standards for the determination of well-capitalized.

Investments in local banks will be limited to banks that are well capitalized as exhibited in the audited annual report . Initial investments with local banks will be no more than $250,000. Additional amounts may be invested with local banks subject to the approval of the City Council . The maximum allowable investment in any local bank will be $1,000,000. The maximum allowable investment for local banks will be reviewed annually and may be adjusted up or down subject to City Council approval.

Investments in the CDARS program are permitted . CDARS, the Certificate of Deposit Account Registry Service, is an investment vehicle established to allow investing participants to have full federal insurance on deposits up to $50 million and to earn one interest rate per deposit. A deposit is placed with a network member institution that uses CDARS to place the deposit into several certificates of deposits issued by network banks.

The maximum placed into each certificate of deposit by the network member institution is $250,000 to ensure full federal insurance by the FDIC.

8.9 Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53630, are permitted investments. Section 53601(k) further defines requirements. A maximum of 15 percent of the portfolio may be so invested in funds that have the highest rating (e.g., AAA) provided by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch).

8.10 Local Agency Investment Fund (LAIF): The Local Agency Investment Fund has been established by the State Treasurer for the benefit of local agencies . The City may invest up to the maximum permitted by the LAIF.

8.11 Capital Asset Management Program (CAMP): Pooled money market investment program has been established by California public agents (board of trustees) for the benefit of local agencies. The Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). The City may invest up to the maximum permitted by the CAMP.

8.12 Ineligible Investments: Investments not described herein, including but not limited to common stocks and financial futures contra cts and options, are prohibited in this fund. Additionally, the Treasurer shall not invest in reverse floaters, range notes, or interest only strips that are derived from a pool of mortgages, nor may the Treasurer invest in any security that could result in zero interest accrued if held to maturity.

Resolution No. CC 2026-001

8.13 Permitted Investments Summary:

Investment Type Maximum
Maturity
Maximum
Specified % of
Portfolio
Minimum Quality
Requirements
Demand Deposits with Bank of America or
Wells Fargo Bank
N/A $2 million each or
$2.5 million in
aggregate
N/A
Overnight banks investment pools that
invest solely in Investments allowable
under this policy
N/A None None
U.S. Treasury bonds/notes/bills 5 years None None
U.S. Government Agency obligations 5 years None None
Municipal Obligations 5 years 10% “A” rating
Bankers' acceptances 180 days 40% Federal Reserve
eligible
Certificates of deposit 5 years 25% “AA” rating above
$250,000 deposit
Medium-Term Corporate Notes 5 years 15% “A” rating
Mutual Funds N/A 15% “AAA” rating
Local Agency Investment Fund (LAIF) (not
to exceed the maximum amount permitted
by LAIF, per account)
N/A None None
California Asset Management Program
(CAMP)
(must not exceed 10% of the total CAMP
pool)
N/A None None

Resolution No. CC 2026-001

SECTION 9. Authorized and Suitable Investments for Bond or COP Proceeds

California Government Code Section 5922 authorizes “Investment Securities ,” “Permitted Investments,” or “Qualified Investments” defined in the Bond or COP documentation for each issuance . This Code Section was enacted in recognition of the unique needs inherent in the investment of these proceeds. In addition to the investments authorized for the City’s surplus funds in Section 8 above, the bond indenture can expand the investments in accordance with the documents to include such investment instruments such as Investment Agreements as defined in the documentation as per California Government Codes 53601(l) and 5922(d).

SECTION 10. Collateral

California Government Code Sections 53652, et seq. requires depositories to post certain types of collateral for public funds above the FDIC insurance amounts. The collateral requirements app ly to bank deposits, both active (checking and savings accounts) and inactive (non-negotiable certificates of deposit).

Collateral will always be held by an independent third party with whom the entity has a custodial arrangement. If requested, the City must be supplied with clearly marked evidence of ownership (safekeeping receipt) and retained. The right of collateral substitution is granted.

SECTION 11. Safekeeping and Custody

In accordance with California Government Code Section 53601, all securities owned by the City shall be held in safekeeping by the City’s custodial bank or a third- party bank trust department, acting as an agent for the City under the terms of the custody agreement. Third-party custodial agreements will be reviewed by the City Attorney.

All securities will be received and delivered using a delivery vs. payment (DVP) basis, which ensures that securities are deposited with the third -party custodian prior to the release of funds. Securities held by the third-party custodian will be evidenced by safekeeping receipts and/or bank statements. Investments in the State Local Agency Investment Fund (LAIF) or money market mutual funds are undeliverable and are not subject to delivery or third-party safekeeping.

Investment trades shall be verified against bank transactions and broker confirmation tickets. The custodial asset statement shall be reconciled with the month - end portfolio holdings monthly.

SECTION 12. Diversification

The City will diversify its investments by security type, institution, and maturity date.

Concentration limits are set by the State of California Government Code, Title 5, Division 2, Sections 53600, 53601, 53631.5 and 53635, and Section 8 (Authorized and Suitable Investments) of this policy.

Resolution No. CC 2026-001

SECTION 13. Maximum Maturities

To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities with a final stated maturity date of more than five (5) years from the date of purchase settlement. Any investment of more than five years requires the advance approval of the City Council, in accordance with State law.

In order to minimize the impact of market risk, most investments will be purchased with the intent to hold to maturity. Investments may be sold prior to maturity for cash flow needs, portfolio rebalancing and/or appreciation purposes, or in order to mitigate portfolio risk by limiting potential losses. However, no investment shall be made based solely on earnings anticipated from capital gains. Due to the uncertain nature of cash flow requirements, a portion of the portfolio should be continually invested in readily available funds.

SECTION 14. Internal Control

The City Treasurer shall provide for a quarterly internal review and an annual review by an external independent auditor . This review will provide internal control by assuring compliance with the City’s investment policies and procedures.

SECTION 15. Investment Oversight Committee

An Investment Oversight Committee shall be established consisting of the City Manager, City Treasurer, City Attorney, the Mayor, and one annually rotating Council member. Members of the Committee shall serve without additional compensation and shall meet at least quarterly to determine general strategies and to monitor results . The quarterly meetings may be held concurrently with a meeting of the Ci ty Council or may be held as a separate meeting. The information provided to the City Council shall be consistent with the information provided to the Investment Oversight Committee. The Committee shall be deemed to have deliberated on and approved the inv estment strategies, management, and results by participation in the presentation(s) to the City Council. Further, the minutes of the City Council shall serve as the Committee minutes, except pursuant to separate direction of the Committee.

SECTION 16. Performance Standards

The City’s investment portfolio shall be maintained to obtain a market average rate of return during various economic cycles . The rate of return will consider the City's constraints on investment risk and the City’s cash flow needs.

The City’s investment strategy is passive. Given this strategy, the basis used by the City Treasurer to determine whether appropriate and suitable market yields are being achieved shall be to identify a comparable benchmark to the portfolio’s investment duration, e.g. the Constant Maturing Two Year Treasury bill index. Benchmarks may change over time depending on the portfolio’s duration.

Resolution No. CC 2026-001

SECTION 17. Reporting

Monthly reports will be made by the City Treasurer, or designee, to the City Council and the City Manager describing the present status of City investments and monies held by the City, as well as summarizing all investment transactions for the month. Schedules in the monthly report should include the following:

 A complete list of investments including the type of investment, name of the issuer, maturity date, par value, book value, and market value.  The source of market value data.
 The weighted average maturity and yield to maturity of the portfolio.  Coupon, discount, or earnings rate for each security.  Percentage of portfolio represented by each investment category.  A certification of compliance with the Investment Policy.  A statement denoting the City’s ability to meet its anticipated expenditures requirements for the next six months.
 Benchmark comparison

Records of all investment transactions will be kept and filed in the Finance Department in accordance with legal guidelines and records retention policies.

SECTION 18. Investment Policy Adoption

The City Council shall review and adopt the City’s investment policy annually. The Investment Committee will review the policy periodically to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return and its conformance with current law, financial and economic trends, and the City's cash flow needs.

SECTION 19. Repeal

Resolution No. CC 2025-004, adopted on January 22, 2025, is hereby repealed in its entirety.

Resolution No. CC 2026-001

SECTION 20. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED and ADOPTED this 13th day of January 2026.

_________________________________
Approved as to form: Eric Ohlsen, Mayor

ATTEST:
___________________________ _________________________________ Alexandra Severino, Rochelle Scott, City Clerk
City Attorney

I, Rochelle Scott, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 13th day of January, 2026 by the following roll call vote:

AYES: ___________________________________________________________

NOES:___________________________________________________________

ABSTAIN:______________________ABSENT:___________________________

Date: ___________________________ _____________________________ Rochelle Scott, City Clerk

GLOSSARY

AGENCIES: Federal agency securities.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of Palmdale. It includes combined statements and basic financial statements for each individual fund and account group p repared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BASIS POINT: A basis point equals one one-hundredth of 1% (.01%).

BID: The price offered for securities:

BOOK ENTRY SECURITIES: All U.S. Treasury and Federal Agencies are maintained on computerized records at the Federal Reserve now known as "wireable" securities.

BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position . In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.

CALIFORNIA ASSET MANAGEMENT PROGRAM : Pooled money from various California public agencies that invest in obligations of the United States Government and its agencies, high -quality, short-term debt obligations of U.S. companies and financial institutions. The Pool is a permitted investment f or all local agencies under California Government Code Section 53601(p).

CDARS: The Certificate of Deposit Account Registry Service is an investment vehicle established to allow investing participants to have full federal insurance on deposits up to $50 million and to earn one interest rate per deposit . A deposit is placed with a network member institution that uses CDARS to deposit it into several certificates of deposits issued by network banks . The maximum placed into each certificate of deposit by the network member institution is $250,000 to ensure full federal insurance by the FDIC.

COLLATERAL: Securities, evidence of deposit or other property that a borrower pledges to secure repayment of a loan . Also refers to securities pledged by a bank to secur e deposits of public monies.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.

COMMERCIAL PAPER (CP): An unsecured promissory note with a fixed maturity no longer than 270 days . Public offerings are exempt from SEC registration . The largest issuers include General Motors Acceptance Corporation (GMAC), General Electric Capital Corporation (GECC) and other major corporations.

COUPON: ( a) The annual rate of int erest that a bond’s issuer promises to pay the bondholder on the bond’s face value . (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DELIVERY VERSUS PAYMENT: There are two methods of delivering securities: delivery versus payment and delivery versus receipt (also called free). Delivery versus payment involves exchanging money for the securities, while de livery versus receipt involves exchanging a signed receipt for the securities.

DEBENTURE: A bond secured only by the general credit of the issuer.

DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below the original offering price shortly after the sale is also considered to be at a discount.

DISCOUNT SECURITIES: Non -interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL AGENCY SECURITIES: Debt instruments issued by federal credit agencies; fully backed by the U.S. government guarantee but not by its full faith and credit.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL FUNDS: Non-interest-bearing deposits held by member banks at the Federal Reserve. Also used to denote "immediately available" funds in the clearing sense . "Fed Funds" is also used to refer to these funds.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded . The Federal Reserve, through open-market operations, currently pegs this rate.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): A U.S. Corporation and instrumentality of the U.S. government . Through its purchases of conventional mortgages, it provides liquidity to the mortgage markets, much like FNMA . FHLMC's securities are highly liquid and widely accepted . FHLMC assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Asso ciation Act in 1938 . FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is c alled, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents . The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis . The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States was created by Congress and consists of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks, and about 5,700 commercial banks that are members of the system.

GOVERNMENT NAT IONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations, and other institutions. Security holder is protected by full faith and credit of the U.S. Gove rnment. Ginnie Mae securities are backed by FHA, VA , or FMHM mortgages. The term pass-throughs is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and a reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that a re placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase -reverse repurchase agreements that establish each party's rights in the transactions . A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MEDIUM TERM CORPORATE NOTE: A corporate debt instrument that is continuously offered to investors over a p eriod of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc., up to 30 years.

MONEY MARKET: The market in which short -term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC, in order to influence the volume of money and credit in the economy . Purchases inject reserves into the bank system and stimulate the growth of money and credit; sales have the opposite effect . Open mark et operations are the Federal Reserve’s most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIME RATE: The rate at which banks lend to their best or "prime" customers . Also known as the "reference rate."

PRUDENT PERSON RULE: An investment standard . In some states , the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one that would be brought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

QUALIFIED PUBLIC DEPOSITORIES: A financial institution that does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which was segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this .

Dealers use RP extensively to finance their positions . Exception: When the Federal Reserve Bank is said to be doing RP, it is lending money that is increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the banks' vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SEC RULE 15C3-1: See uniform net capital rule.

SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds. This date may be the same as the trade date or later.

TRADE DATE: The date on which a transaction is initiated or entered into by the buyer and seller.

TREASURY BILL: A non-interest-bearing (discount) security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years.

TREASURY NOTES: Intermediate-term coupon-bearing U.S. Treasury securities having initial maturities of from one to ten years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purcha se securities. This is one reason new public issues are spread among members of underwriting syndicates . Liquid capital includes cash and assets easily converted into cash.

WHEN-ISSUED TRADES: Typically, there is a delay between the time a new bond is announced and sold, and the time when it is actually issued . During this interval, the security trades "wi", "when, as, and if issued."

YIELD: The rate of annual income returns on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in the purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

YIELD TO MATURITY: The rate of return yielded by debt security held to maturity when both interest payments and the investor’s capital gain or loss on the security are taken into account.

CITY COUNCIL

CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2026-002

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE

RESTATING THE INVESTMENT POLICY FOR CITY CONTRIBUTIONS

TO THE RETIREE HEALTH REIMBURSEMENT ARRANGEMENT (HRA)

PLAN AND THE RETIREE HEALTH PREMIUM SUPPLEMENT (HPS)
PLAN AND REPEALING RESOLUTION NO. CC 2025-005.

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

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

SECTION 1. Purpose

This Resolution states the City’s investment policy for contributions and earnings accumulated under the Retiree HRA Plan and the Retiree HPS Plan Trusts, which have been adopted by the City Council of the City of Palmdale to assist in meeting applicable funding requirements for the future payment of other post-employment benefit obligations (generally referred to as “OPEB Liability”). The Investment Policy Statement is intended to provide guidelines to the City Treasurer and the authorized Investment Advisor for the prudent investment of the City’s Retiree HRA and HPS Plan contributions and earnings.

This Investment Policy Statement shall be consistent with the governing law, including the Internal Revenue Code of 1986 as amended from time to time (the “Code”), applicable provisions of Governmental Accounting Standards Board Statement Nos. 43 and 45, California laws, including applicable provisions of the California Government Code and City ordinances. A Glossary of investment terms is provided at the end o f the resolution for reference.

SECTION 2. Scope

This investment policy applies to the investment of all cash and various funds of the City as identified in the adopted budget document for the purpose of funding the City OPEB Liability.

2.1 Funding sources for this purpose will include the General Fund, Successor Agency to the Community Redevelopment Agency of the City of Palmdale Funds, and Special Revenue Funds through which participants are financed.

2.2 Participant GROUPS 1, 2, and 3 are defined in the Retiree HRS and Retiree HPS Plan documents.

2.3 Investment strategies for this purpose are as follows:

a) Participant-directed investment portfolio choices (age -based custom portfolio or self -directed alternative) – This investment strategy for Resolution No. CC 2026-002

contributions and earnings applies to the Retiree HRA Plan Trust and encompasses Group 2 Employees that elect the defined contribution option and Group 3 Employees . Employees in these Groups must have met the age and years of service requirements for vesting purposes. b) Plan Sponsor directed portfolio using a 5 -year Treasury benchmark – This investment strategy for contributions and earnings applies to the Retiree HRA Plan Trust and encompasses Group 2 Employees that elect the defined contribution option and Gro up 3 Employees . Employees in these Groups subject to this investment strategy have not yet met the age and years of service requirements for vesting purposes.
c) Plan Sponsor directed long -term diversified portfolio – This investment strategy for contribution s and earnings applies to the Retiree HPS Plan Trust and encompasses eligible Group 1 Retirees and eligible Group 2 Employees that elected the defined benefit option.

SECTION 3. Prudence

Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

3.1 Governing bodies of local agencies, or persons authorized to make investment decisions on behalf of the agency, are trustees and, therefore, fiduciaries subject to the prudent investor standard. The trustee is required to consider the general economic conditions and the anticipated needs of the agency when investing, reinvesting, purchasing, acquiring, exchanging, and selling or managing public funds.

3.2 The standard of prudence to be used by investment officials shall be the prudent person standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.

SECTION 4. Objectives

The City’s cash management system is designed to accurately monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City Treasurer and authorized Investment Advisor maintain a diversified portfolio to accomplish the primary objectives of safety, liquidity, and yield (in that order of priority).

4.1 Safety: The safety/risk associated with an investment refers to the potential loss of principal, accrued interest , or a combination of these . The City seeks to mitigate credit risk by continual monitoring of financial institutions with which it will do business and by careful scrutiny of the creditworthiness of the investment instruments as well as Resolution No. CC 2026-002

the institutions. Such resources as Moody’s Investor, Standard & Poor’s, and Fitch rating services are utilized for this review . The City seeks to mitigate rate risk through diversification of instruments as well as maturities.

4.2 Liquidity: The portfolio will be structured with sufficient liquidity to allow the City/Agency to meet all anticipated cash requirements. This will be accomplished through matching maturities to expected cash needs , and AAA/Aaa -rated money market funds with immediate withdrawal provision.

4.3 Yield: A competitive market rate of return is the third objective of the investment program after the fundamental requirements of safety and liquidity have been met.

SECTION 5. Delegation of Authority

Notwithstanding Section 53601 or 53635, the governing body of a local agency may invest funds designated for the payment of retiree health benefits in any form or type of investment deemed prudent by the governing body pursuant to Section 53622.

5.1 City Council: By adoption of this policy, the City Council has authorized the City Treasurer and the authorized Investment Advisor to invest Retiree HRA and HPS Plan contributions and earnings in accordance with California Government Code Section 53622.

5.2 City Treasurer: The execution of investment transactions on a daily basis will be conducted by the authorized Investment Advisor under the direction of the City Treasurer. The City Treasurer has established a system of controls and a segregation of responsibilities of investment functions to ensure the maintenance of internal control over the investment function.

5.2 The City Council retains the authority to approve any amendments to the Investment Policy . The City Treasurer is authorized to update internal guidelines and procedures at any time in order to carry out the duties as Chief Investment Officer for the City.

SECTION 6. Ethics and Conflicts of Interest

The Director of Operations and other employees and authorized persons involved in the investment process shall refrain from personal business activity that could conflict with the proper execution of the investment program or which could impair their ability to make impartial investment decisions. The Director of Operations and other employees involved in the investment process shall disclose any material interests in financial institutions with which they conduct business within their jurisdiction, and they shall further disclose any material personal financial/investment positions that could be related to the performance of the City’s investment portfolio and shall refrain from personal investment transactions with the same individual or firm with whom business is conducted on behalf of the City.

Resolution No. CC 2026-002

The Director of Operations and other employees involved in the investment process are required to file annual disclosure statements as required by the Fair Political Practices Commission. During the course of the year, if there is an event subject to disclosure that could impair the ability of the Director of Operations or investment employees to make impartial decisions, the City Council will be notified in writing within ten (10) days of the event.

SECTION 7. Authorized Financial Dealers and Institutions

7.1 The City shall transact business only with nationally or state-chartered banks and licensed investment securities dealers . The City Treasurer shall maintain a listing of financial institutions authorized to provide investment services to the City.

7.2 Selection of financial institutions and broker/dealers authorized to engage in transactions with the City shall be at the sole discretion of the City.

7.3 The City Treasurer, the authorized Investment Advisor, and the Investment Oversight Committee shall ob tain information from qualified financial institutions to determine if the institution makes markets in securities appropriate for the City’s needs, can assign qualified sales representatives, and can provide written agreements to abide by the conditions set forth in the City of Palmdale Investment Policy. Investment accounts with all financial institutions shall be standard non-discretionary accounts and may not be margin accounts.

7.4 The signatures of two individuals shall be required for the opening a nd closing of any bank account and broker account ( as defined in the Palmdale Municipal Code Section 3.14.020). The Accounting Officer, who is independent of the investment function, shall keep a record of all opened and closed accounts. On an annual basis, the Accounting Officer shall provide this list of accounts to the City independent auditor.

SECTION 8. Authorized and Suitable Investments for Retiree HRA and HPS Plan Contributions and Earnings

California Government Code Section 53622 defines eligible securities for the investment of retiree health benefits . Retiree HRA and HPS Plan contributions and earnings of the Trusts will be invested in compliance with this statute and as further limited by this Investment Policy.

8.1 U.S. Government: United States Treasury Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government . There shall be no limitation as to the percentage of the portfolio invested in this category . The maturity on these investments shall not exceed five years without the prior approval of the Investment Oversight Committee.

8.2 U.S. Government: United States Federal Agency Securities are backed by the implied support of the United States Government . There shall be no limitation as to the percent age of the portfolio invested in this category . The maturity on these Resolution No. CC 2026-002

investments shall not exceed five years without the prior approval of the Investment Oversight Committee.

8.3 Bankers Acceptances: Bills of exchange or time drafts drawn on and accepted by commercial banks, which are eligible for purchase by the Federal Reserve System, are known as banker’s acceptances . Purchases of these instruments may not exceed 180 bankers days maturity. A maximum of 2 percent may be invested in the banker's acceptance of any one commercial bank.

8.4 Certificates of Deposit (CDs): Certificates of deposit or “time deposits” of up to $250,000 are federally insured . Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuin g institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage -backed securities . Statute does not limit CDs, however, this Investment Policy shall limit such investments to a maximum of 30 percent of the portfolio and to a maximum of 15 percent deposited in any one institution.

In addition, time deposits shall be placed in institutions meeting all capital requirements and rated “AA” or higher by two of the three major rating agencies (Moody’s, Standard & Poor’s, and Fitch) for any deposits over $250,000.

8.5 Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized b y California Government Code Section 53622 . A maximum of 20 percent of the portfolio may be invested in any individual fund.

8.6 Ineligible Investments: Investments not described herein, including but not limited to common stocks and financial futures co ntracts and options, are prohibited in this fund. Additionally, the City Treasurer shall not invest in reverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages, nor may the City Treasurer invest in any security that could result in zero interest accrued if held to maturity.

SECTION 9. Diversification

In an effort to reduce portfolio risk while attaining market average rates, type and institution will suitably diversify the Trust portfolio.

9.1 Security Type and Institution: With the exception of U.S. Treasury securities and U.S. Federal Agency Securities, no more than 50 percent of the total portfolio will be invested in a single security type and no more than 15 percent with a single financial institution. Investments are further limited by specific language relating to each investment type as stated in Section 8 of this Policy.

9.2 Maximum Maturities: To the extent possible, the City Treasurer and the authorized Investment Advisor will attempt to match investm ents with anticipated cash flow requirements . The Trusts’ portfolio will not be directly invested in securities that mature more than five years from the date of purchase.

Resolution No. CC 2026-002

9.3 Diversification Parameters:

Investment Strategy Cash Fixed income* Domestic Equities Foreign Equities Participant Directed – Self Directed Participant Driven Allocation Participant Directed – Age Based Allocation determined via actuarial age-based algorithm Plan Sponsor Directed – 5 Yr Treasury 0%-
100% 0%-100% 0%-20% 0%-10%
Plan Sponsor Directed – LT Portfolio 0%-50% 40%-60% 40%-60% 5%-20% *See Section 8 for specific fixed income category parameters

Domestic Equity Asset Class
Parameters Allocation
Large Cap 20%-40%
Mid Cap 10%-30%
Small Cap 5%-20%

SECTION 10. Internal Control

The City Treasurer shall provide for a quarterly internal review and an annual review by an external independent auditor . This review will provide internal control by assuring compliance with the City’s investment policies and procedures.

SECTION 11. Investment Oversight Committee

An Investment Oversight Committee shall be established consisting of the City Manager, City Treasurer, City Attorney, the Mayor, and one annually rotating Council member. Members of the Committee shall serve without additional compensation and shall meet at least quarterly to determine general strategies and to monitor results. The quarterly meetings may be held concurrently with a meeting of the City Council or may be held as a separate meeting. The informati on provided to the City Council shall be consistent with the information provided to the Investment Oversight Committee. The Committee shall be deemed to have deliberated on and approved the investment strategies, management, and results by participation i n the presentation(s) to the City Council. Further, the minutes of the City Council shall serve as the Committee minutes, except pursuant to separate direction of the Committee.

SECTION 12. Performance Standards

12.1 Mutual Funds & Separate Accounts: In populating its recommended Managed Portfolio(s), the Investment Consultant can make recommendations from publicly traded mutual funds, separate accounts, and bank collective trust funds subject to the following limitations:

Resolution No. CC 2026-002

d) Active and Passive (Index) Investment Management will be used together. e) Minimum Investment Option Age will be 3 Years and Minimum Management Tenure (Asset Class Experience) will be 3 Years.
f) Minimum assets under management must be equal to or greater than $100 Million.
g) Published Expense R atios must be equal to or less than 125% of peer group.

12.2 Managed Portfolio Performance Metrics: The Managed Portfolio(s) point- specific return benchmark will be the S&P 500 Index and the Barclays Aggregate U.S.

Bond Index combined to create a portfol io of equivalent allocation to the Managed Portfolio being measured.

12.3 Fixed Income & Structured Product Performance Metrics: To the extent that they are used in this plan’s portfolio, individual fixed-income securities and/or structured products shall be monitored against mutual fund data related to intermediate bond peer group performance.

12.4 Mutual Fund & Separate Account Performance Metrics:

a) Investment outperformance, over rolling periods of time, compared to peer group: One Year, Three Years, and Five Years – 50% of the time. b) Point-specific investment performance relative to peer group: Percentile Rank for One Year, Three Years, and Five Years – 50% or greater. c) Point-specific investment performance relative to specific asset class index over a five-year period.
d) Style Consistency will be reported as “Pass” or “Fail.” The allowable period of deviation will be two quarters.
e) Sharpe Ratio and Alpha will be equal to or greater than that of a peer group.

Standard Deviation will not be applicable.

SECTION 13. Watchlist Review

13.1 While all of the Performance Metrics For Quarterly Investment Review are relevant to the subject of a Watchlist, none of them alone or in combination wi th others absolutely requires putting an Investment Option on Watchlist. With that caveat, the general chronology of this Investment Policy Statement’s Watchlist shall be:

Quarter Quarter Following
Formally putting an Investment Option
on Watchlist  1st
Review Watchlist Status  2nd  3rd  4th
Review Investment Option Alternatives  2nd  3rd  4th Select Investment Option Replacement  2nd  3rd  4th Resolution No. CC 2026-002

13.2 An Investment Option can be removed from Watchlist status for one of three reasons:

a) The Performance Metrics for Quarterly Investment Review of an Investment Option change so that it meets the Performance Metrics; b) The Investment Committee understands why the Investment Option is not meeting a stated Performance Metric and is comfortable that the Investment Option is still meeting the objectives for which it was chosen; or c) The Investment Committee replaces the Investment Option.

SECTION 14. Reporting

The authorized Investment Advisor shall prepare quarterly reports that highlight the current portfolio allocation, time -weighted performance, and any transactions that occurred during the quarter. The advisor will also prepare a quarterly fiduciary review packet that analyzes the plan’s current investmen ts against its investment policy statement. The plan’s trust provider will also provide monthly trust reports that outline the plan’s asset allocation and any transactions that occurred during the month.

SECTION 15. Investment Policy Adoption

The City Council shall review and adopt the City’s investment policy annually. The Investment Committee will review the policy periodically to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return and its conformance with current law, financial and economic trends, and the City's cash flow needs.

SECTION 16. Repeal

Resolution No. CC 2025-005, adopted on January 22, 2025, is hereby repealed in its entirety.

SECTION 17. The City Clerk shall certify to the adoption of this resolution.

Resolution No. CC 2026-002

PASSED, APPROVED and ADOPTED this 13th day of January 2026.

_________________________________
Approved as to form: Eric Ohlsen, Mayor

ATTEST:
___________________________ _________________________________ Alexandra Severino, Rochelle Scott, City Clerk
City Attorney

I, Rochelle Scott, City Clerk of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 13th day of January 2026 by the following roll call vote:

AYES:__________________________________________________________

NOES:__________________________________________________________

ABSTAIN:____________________ABSENT: ___________________________

Date: ___________________________ ___________________________ Rochelle Scott, City Clerk

GLOSSARY

AGENCIES: Federal agency securities.

ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of Palmdale. It includes combined statements and basic financial statements for each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASKED: The price at which securities are offered.

BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

BASIS POINT: A basis point equals one one-hundredth of 1% (.01%).

BID: The price offered for securities:

BOOK ENTRY SECURITIES: All U.S. Treasury and Federal Agencies are maintained on computerized records at the Federal Reserve now known as "wireable" securities.

BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position . In the money market, brokers are acti ve in markets in which banks buy and sell money and in interdealer markets.

COLLATERAL: Securities, evidence of deposit or other property that a borrower pledges to secure repayment of a loan . Also refers to securities pledged by a bank to secure deposits of public monies.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.

COMMERCIAL PAPER (CP): An unsecured promissory note with a fixed maturity no longer than 270 days. Public offerings are exempt from SEC registration . The largest issuers include General Motors Acceptance Corporation (GMAC), General Electric Capital Corporation (GECC) and other major corporations.

COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities:
delivery versus payment and delivery versus receipt (also called free) . Delivery versus payment is delivery of securities with an exchange of money for the secu rities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

DEBENTURE: A bond secured only by the general credit of the issuer.

DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below the original offering price shortly after the sale is also considered to be at a discount.

DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal government set u p to supply credit to various classes of institutions and individuals, e.g., S&L's, small business firms, students, farmers, farm cooperatives, and exporters.

FEDERAL FUNDS: Non-interest-bearing deposits held by member banks at the Federal Reserve. Also used to denote "immediately available" funds in the clearing sense . "Fed Funds" is also used to refer to these funds.

FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded . The Federal Reserve, through open-market operations, currently pegs this rate.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-à-vis member commercial banks.

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): A U.S. Corporation and instrumentality of the U.S. government . Through its purchases of conventional mortgages, it provides liquidity to the mortgage markets, much like FNMA . FHLMC's securities are highly liquid and widely accepted . FHLMC assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938 . FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned

corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

FEDERAL OPEN MARKET COMMITTEE (FOMC): Consists of seven members of the Federal Reserve Board and f ive of the twelve Federal Reserve Bank Presidents . The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis . The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

FEDERAL RESERVE SYSTEM: The central bank of the United States was created by Congress and consists of a seven-member Board of Governors in Washington, D.C., 12 Regional Banks, and about 5,700 commercial banks that are members of the system.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):

Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government . GNMA securities are backed by FHA, VA or FMHM mortgages. The term pass-throughs is often used to describe Ginnie Mae’s.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and a reasonable size can be d one at those quotes.

LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase --reverse repurc hase agreements that establish each party's rights in the transactions . A master agreement will often specify, among other things, the right of the buyer -lender to liquidate the underlying securities in the event of default by the seller-borrower.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short -term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the

FOMC, in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate the growth of money and credit; sales have the opposite ef fect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

PORTFOLIO: Collection of securities held by an investor.

PRIME RATE: The rate at which banks lend to their best or "prime" customers . Also known as the "reference rate."

PRUDENT PERSON RULE: An investment standard . In some states , the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state (the so-called legal list). In other states, the trustee may invest in a security if it is one that would be brought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

QUALIFIED PUBLIC DEPOSITORIES: A financial institut ion that does not claim exemption from the payment of any sales or compensating use or ad valorem taxes under the laws of this state, which was segregated for the benefit of the commission eligible collateral having a value of not less than its maximum lia bility and which has been approved by the Public Deposit Protection Commission to hold public deposits.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "selle r" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this .

Dealers use RP extensively to finance their positions . Exception: When the Federal Reserve Bank is said to be doing RP, it is lending money that is increasing bank reserves.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the banks’ vaults for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SEC RULE 15C3-1: See uniform net capital rule.

SECURITIES & EXCHANGE COMMISSION: Congress created this agency to protect investors in securities transactions by administering securities legislation.

SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds. This date may be the same as the trade date or later.

TRADE DATE: The date on which a transaction is initiated or entered into by the buyer and seller.

TREASURY BILL: A non-interest-bearing (discount) security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years.

TREASURY NOTES: Intermediate-term coupon-bearing U.S. Treasury securities having initial maturities of from one to ten years.

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms, as well as nonmember broker-dealers in securities, maintain a maximum ratio of indebtedness to liquid capital of 15 to 1, also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans an d commitments to purchase securities . This is one reason new public issues are spread among members of underwriting syndicates . Liquid capital includes cash and assets easily converted into cash.

WHEN-ISSUED TRADES: Typically, there is a delay between the time a new bond is announced and sold, and the time when it is actually issued . During this interval, the security trades "wi", "when, as, and if issued."

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the current dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in the purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

YIELD TO MATURITY: The rate of return yielded by debt security held to maturity when both interest payments and the investor’s capital gain or loss on the securit y are taken into account.

City Council Staff Report

DATE: JANUARY 13, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT

ECONOMIC AND COMMUNITY DEVELOPMENT

DISTRICT: ALL

SUBJECT: REVIEW AND APPROVE THE AMENDED PALMDALE AEROSPACE

INCENTIVE PROGRAM GUIDELINES AND APPLICATION IN

ACCORDANCE WITH DEVELOPMENT MILESTONES FOR NEW

CONSTRUCTION PROJECTS

RECOMMENDATION

Staff recommend that the City Council:

1. Review and approve the amended Palmdale Aerospace Incentive Program Guidelines and Application in accordance with development milestones for new construction projects; and,

2. Authorize the Interim City Manager or his designee to oversee and implement the program, including minimal and/or non-substantial changes.

BACKGROUND

On November 15, 2023 , the City Council adopted Reso lution No. CC 2023 -067, approving the Palmdale Aerospace Incentive Program (PAIP) . The program awards qualifying small to mid -sized aerospace and defense businesses up to $250,000 to relocate or expand operations to Palmdale based on the total number of jobs created and the size of the development. The approval of the PAIP served as a catalyst to accelerate the attraction of new businesses and foster the growth of the local aerospace ecosystem.

The proposed amendment to the program is geared to support development as it occurs and helps to offset the increasing construction costs associated with t he relocation or expansion of awarded businesses.

Report to Mayor and City Council
Re: Approve Amended PAIP Program Guidelines and Application January 13, 2026

DISCUSSION

Due to the substantial and continually increasing costs associated with development, a series of phased milestones is recommended for approval as follows:

Phase 1 New Construction
 $62,500 for the approval of site plans
 $62,500 for the approval of building plans
 $125,000 for the commencement of construction

Phase 2 New Construction
 $62,500 proof of effort through a bidding process to keep costs local  $125,000 upon issuance of the Certificate of Occupancy  $62,500 upon proof of job creation indicated on the approved application at a rate of $450 per job within one year of being issued the Certificate of Occupancy

Each phase is valued at a not -to-exceed amount of $250,000 . To be elig ible for subsequent milestone funding , the awarded business must first complete all previous milestones within a satisfactory timeframe. Once each phase has been concluded, a new application must be submitted to be eligible for Phase 2 , which will be evaluated for approval quarterly alongside all other applicants, subject to funding availability.

In addition to the construction development incentive option , this amendment also incorporates a one-time incentive of $125,000 for companies interested in relocating and expanding through the lease of a currently vacant industrial site. The milestones are as follows:

Phase 1 Lease
 Proof of an executed lease agreement for a minimum of five years  Proof of total job creation, minimum 50, within one year of the effective date of the lease agreement

The maximum New Construction incentive is capped at $250,000 per project, per awarded phase, or until budgeted funds are exhausted. New Construction projects can be awarded up to two times in accordance with the development milestones set forth above, not to exceed $500,000. And Leasing incentive projects can be awarded one time in accordance with the guidelines above and are capped at $125,000.

The approval of this program amendment will enable a more sustainable, competitive, and beneficial approach to support efforts to bolster the aerospace and manufacturing businesses in the City.

Report to Mayor and City Council
Re: Approve Amended PAIP Program Guidelines and Application January 13, 2026

FISCAL IMPACT

$0; There is no fiscal impact associated with the approval of the program guidelines and application. The award of PAIP funds is subject to council approval and the availability of funds. $500,000 is budgeted and available in the Economic and Community Development Department for FY 2025-26. In addition, the City will benefit from increased property and sales tax revenue as new businesses are incentivized to relocate or expand.

STRATEGIC PLAN

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

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

Prepared by: 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 Severino, City Attorney

ATTACHMENTS

Amended Palmdale Aerospace Incentive Program Guidelines and Application Palmdale Aerospace Incentive Program

Revised January 2026

Amended Palmdale Aerospace Incentive Program
Guidelines and Application

Palmdale Aerospace Incentive Program

Revised January 2026
Introduction and Program Guidelines
The City of Palmdale Aerospace Incentive Program (PAIP) is a structured initiative aimed at attracting aerospace and defense-related businesses to the area. The goals of the PAIP are to:
• Attract aerospace and defense supportive businesses that provide products and services to support the operations and manufacturing processes of aerospace and defense companies. • Incentivize job creation and capital investment in the city. • Provide larger incentives for projects with more jobs and capital investment in Palmdale.

Eligibility Requirement:
• A minimum of 50 new primary jobs must be created.
• A minimum of 70,000 square feet of new construction or new lease space will be utilized. • End users of the company’s product must be in the aerospace or defense industry or play a crucial role in the supply chain of the aerospace and defense sectors, helping them produce advanced technologies and systems for military and civilian purposes. They must provide products or services to support the operations and manufacturing process of aerospace and defense companies as outlined in the qualifying companies’ section of this program.
• Businesses annual revenue must be $47 million or less as designated by the North American Industry Classification System (NAICS) utilized by the US Small Business Administration to qualify as a small business for businesses involved in the manufacturing of military and aerospace equipment or military weapons.
• A minimum of three consecutive years of first-class business operation in a field of business as set forth in the qualifying companies section outlined in this program is required. • If the building to be occupied by the qualifying company is owned by another party, a lease agreement with a minimum 5-year commitment is necessary.

Incentive Structure
Phase 1
Leasing:
• Proof of an executed lease agreement with the property owner for a minimum of five (5) years; and • Proof of total job creation, minimum 50, must be provided to the City within one (1) year after the effective date of the lease agreement in order to receive Leasing Structure Phase 1 funding. Failure to provide proof of job creation will result in the forfeiture of the incentive award; and • Acceptable documents shall include: SEC Filings (10 -K Report), Payroll or HR Records, IRS Form W- 3, or a Proof of Employment (PoE) Letter on company letterhead and signed by an authorized representative as deemed acceptable by the City; and
• Upon receipt of the documents listed above, the awarded applicant will receive a one -time incentive of $125,000.

OR
New Construction:
• Site Plans - Reimbursement of Architect, Engineering, or Design costs incurred as part of the Site Plan approval process. Up to 50% of the total cost may be eligible for reimbursement, not to exceed 25% ($62,500) of the Phase 1 award amount. Reimbursement may be disbursed after the City approves the Site Palmdale Aerospace Incentive Program

Revised January 2026
Plan. Proof of payment(s) for work performed must be provided to the City in order to process reimbursement payment; and
• Building Plans – Reimbursement of Architect, Engineering, or Design costs incurred as part of the Building Plan approval process. Up to 50% of the total cost may be eligible for reimbursement, not to exceed 25% ($62,500) of the Phase 1 award amount. Reimbu rsement may be disbursed after the City approves the Building Plans. Proof of payment(s) for work performed must be provided to the City in order to process reimbursement payment; and
• Commencement of Construction — The remaining 50% of the total Phase 1 award, not to exceed $125,000, will be paid upon the commencement of construction of the facility for the approved Site Plans and Building Plans.

Phase 2

New Construction Only

• Applicants awarded Phase 2 funding shall provide proof of their due diligence and effort, satisfactory to the City of Palmdale, to keep construction costs and labor local throughout the course of their development.

Upon acceptance and understanding from th e City of the procured services for the approved project, the awarded applicant will receive a disbursement of 25% of the Phase 2 award, not to exceed $62,500; and • Upon issuance of the Certificate of Occupancy, the awarded applicant will receive an additional disbursement of 50% of the total Phase 2 award, not to exceed $125,000; and • The remaining 25% of the Phase 2 award, not to exceed $62,500, will be disbursed upon proof of job creation and calculated as follows: (Total Jobs Created x $450 Incentive Rate per Job); and • Proof of total job creation must be provided to the City within one (1) year after being issued the Certificate of Occupancy in order to receive the final 25% of Phase 2 funding. Failure to provide proof of job creation will result in the forfeiture of any remaining funding. • Acceptable documents shall include: SEC Filings (10 -K Report), Payroll or HR Records, IRS Form W- 3, or a Proof of Employment (PoE) Letter on company letterhead and signed by an authorized representative as deemed acceptable by the City.

Disclaimers
• The maximum New Construction incentive is capped at $250,000 per project, per awarded phase, or until budgeted funds are exhausted. New Construction projects can be awarded up to two (2) times in accordance with the development milestones set forth above, not to exceed $500,000. And Leasing Incentive projects can be awarded one (1) time in accordance with the guidelines above and are capped at $125,000. • All New Construction Applicants must complete the previous development milestones of the prior phase before being eligible for the next phase of funding. Projects that do not complete the Phase 1 milestones within two (2) years of being awarded will forfeit the current award balance and be ineligible for all subsequent phases of funding.
• This program is in compliance with AB 2231 and shall not exceed an award greater than $600,000 or 2% of the total project cost.
• Total Incentive = (Total Square Feet x .75 Incentive Rate per SF) + (Total Jobs Created x 1,300 Incentive Rate per Job)
• The maximum incentive capped at $250,000 per project or until funds are exhausted.

Palmdale Aerospace Incentive Program

Revised January 2026
Qualifying companies must be in one of the following categories:
• Component Manufacturers: These companies produce specific parts and components used in aircraft, spacecraft, missiles, and defense systems. Examples include engine manufacturers, avionics suppliers, and companies that produce structural components like wings or fuselage sections. • Materials Suppliers: These suppliers provide the materials needed for manufacturing aerospace and defense products. This includes specialized metals, composites, ceramics, and other advanced materials that meet strict aerospace and defense industry standards for strength, durability, and weight. • Electronics and Avionics Suppliers: This category includes companies that supply electronic components, avionics systems, navigation equipment, and communication systems for aircraft, satellites, and defense applications.
• Software and IT Services Providers: These suppliers develop and provide software solutions for aircraft and defense systems. This can include flight control software, simulation software, cybersecurity services, and more.
• Maintenance, Repair, and Overhaul (MRO) Providers: MRO companies offer services to maintain, repair, and overhaul aerospace and defense equipment. This includes routine maintenance, inspections, and the refurbishment of military vehicles, aircraft, and naval vessels. • Logistics and Supply Chain Management: Suppliers in this category provide logistics and supply chain management services, ensuring that the necessary parts and equipment are delivered on time and efficiently to support aerospace and defense manufacturing and operations. • Testing and Certification Services: These companies offer testing, validation, and certification services to ensure that aerospace and defense products meet safety and quality standards. They conduct various tests, including stress testing, environmental testing, and electromagnetic interference testing. • Research and Development (R&D) Firms : R&D companies work on cutting- edge technologies and innovations in the aerospace and defense sectors. They may collaborate with government agencies and defense contractors to develop new technologies and systems. • Consulting and Professional Services: These suppliers offer consulting, engineering, and other professional services to help aerospace and defense companies with design, development, regulatory compliance, and project management.
• Raw Material Suppliers: Companies that provide basic raw materials, such as metals, plastics, and chemicals, which are used in the manufacturing processes of aerospace and defense products. • Tool and Equipment Suppliers: These suppliers provide specialized tools, machinery, and equipment needed for the manufacturing and maintenance of aerospace and defense products.

Palmdale Aerospace Incentive Program

Revised January 2026
Application/Evaluation Process
A completed application must be submitted. Staff will evaluate and calculate the incentive amount based on the incentive structure. If approved, a signed incentive reimbursement agreement will be required, agreeing to the policies of the program and the City of Palmdale. Approved incentive funds will be distributed by check upon proof that the business has completed the applicable development milestone(s) The information requested on this application is needed by the City of Palmdale to determine eligibility for the Palmdale Aerospace Incentive Program. If you have any questions concerning the information being requested on this application, please contact Economic Development. Please complete the information requested and submit it to:

Email: [email protected] Mail: City of Palmdale Economic Development
38250 Sierra Highway
Palmdale, CA 93550
Phone: 661-267-5125

Eligibility Checklist
The checklist below helps businesses determine their eligibility for the PAIP.

Will this business be located within Palmdale City boundary? Yes No Does this business meet the criteria outlined for qualified businesses? Yes No Will this business create a minimum of 50 new primary jobs? Yes No Will this business utilize a minimum of 70,000 square feet in either new construction or new lease space?
Yes No
Does this business have a minimum of three years in business providing services as a qualified business?
Yes No
Is this business plan to remain in Palmdale for at least 5 years? Yes No If you answered yes to all questions in the eligibility checklist, you may be eligible for the PAIP. Proceed to complete the application. If you answered no to any question, you may not be eligible for the PAIP. Note: Submitting an application does not ensure the availability of funds, the awarding of funds to you, or the qualification of your project to receive funds.

Palmdale Aerospace Incentive Program

Revised January 2026
Summary Application

Legal Name of Business:

DBA (if applicable):

Business Address:

Point of Contact:

Contact Email:

Contact Phone:

Date Business Opened:

Federal EIN:

Qualifying Business Category:

Number of Jobs to be Created:

New construction or Lease:

If New Construction, Expected
Date of Completion:

If Lease, Provide Lease Term:

Square Footage of Facility:

Application Phase (Circle One): 1 2
Estimated Total Project Cost:

Application Signature Page
(Complete one signature page for each business owner)
The applicant warrants and represents that no City Council Member, City Staff Member, Commission Member, Committee Member, and/or any person who is subject to the provisions of the City’s Conflict of Interest Code, has any ownership interest of any kind or amount in the business for which the incentive would be issued, or would otherwise receive a financial benefit from any incentive which may be extended to applicant and/or for the business. By accepting this incent ive, I agree to comply with the current and future guidelines and other requirements as set forth by the City of Palmdale.

Name (Print) Date
Signature
I attest that I have read and understood the application and completed the application in full, including the required attachments listed below. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Required Attachments (all applicants)

1. Comprehensive business proposal detailing the type of business, operational methods, facility size, and the number of jobs to be created, among other relevant information.

2. Appropriate documents as indicated in the New Construction and Leasing phase guidelines for the phase applicable to the corresponding application.

3. Signed W-9

City Council Staff Report

DATE: JANUARY 13, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION

DISTRICT: 1

SUBJECT: APPROVE CONSTRUCTION AGREEMENT WITH AZAS
ENGINEERING, INC., FOR PN 916, 3RD STREET EAST ADA

IMPROVEMENTS AND SIDEWALK GAP CLOSURE PROJECT FOR
A TOTAL NOT TO EXCEED AMOUNT OF $435,065 FOR A TERM OF
45 WORKING DAYS FROM THE DATE OF THE NOTICE TO

PROCEED

RECOMMENDATION

Staff recommend that the City Council:

1. Approve Construction Agreement No. A-9269 with Azas Engineering, Inc. (Azas), for PN 916, 3rd Street East ADA Improvements and Sidewalk Gap Closure Project, for a total not to exceed amount of $435,065, which includes a contract amount of $395,514, plus a 10% contingency amount of $39,551 for a term of 45 working days from the date of the Notice to Proceed;

2. Authorize the Interim City Manager or his designee to execute Agreement No. A- 9269 with Azas, including minimal and/or non-substantial changes; and,

3. Authorize the Interim City Manager or his designee to approve change orders for additional or changed scopes of work up to the 10% contingency amount approved by the Council.

BACKGROUND

The proposed 3rd Street East ADA Improvements and Sidewalk Gap Closure Project work includes sidewalk improvements, construction of curb and gutter, and ADA ramps, upgrades to crosswalks and paving markings, and traffic control . All work will be performed within the existing right-of-way. It is anticipated that construction will take approximately forty-five (45) working days from the date the City issues the Notice to Proceed.

Report to Mayor and City Council
Re: Award of PN 916, Agreement No. A-9269
January 13, 2026

DISCUSSION

On October 27, 2025, the project was advertised for construction bids via the Planet Bids electronic platform. Four bids were received on November 26, 2025. Azas, a contractor based in Glendale, submitted the lowest responsive bid and has secured a 10% bid bond as required.

Bidder Location Amount

1. Azas Engineering, Inc. Glendale, CA $395,514

2. Savi Construction, Inc. Chino, CA $518,294

3. Golden Sun Enterprise, Inc. Santa Clarita, CA $557,777

4. All American Building Services Van Nuys, CA $653,441

References have been checked and Azas has completed similar projects for the City of Santa Ana and Ventura County Public Works.

Staff recommend that the City Council award Project No. 916 to the lowest responsive bidder, Azas Engineering, Inc., in the amount of $395,514 with a 10% contingency.

FISCAL IMPACT

$435,065; The project is funded using CDBG Funds. Funds are budgeted and available in FY 2025-26.

STRATEGIC PLAN

Goal III: Invest in infrastructure to improve community livability.

A. Implement and administer environmentally sustainable programs.

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

Prepared by: Leonardo Torres, P.E., Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, Interim City Manager Approved as to form: Alexandra Severino, City Attorney

ATTACHMENTS

Agrmt No. A-9269 with Azas Engineering, Inc.

Vicinity Map
AGREEMENT NO. A- 9269

CONSTRUCTION CONTRACT
BETWEEN THE CITY OF PALMDALE AND AZAS ENGINEERING INC.

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

Actual quantities of Work to be performed may vary at the discretion of the Director of Public Works and/or his designee for the PN 916 3rd St East ADA Improvements and sidewalk Gap Closure project in the City of Palmdale.

Scope are described in the project maps, including but not limited to City of Palmdale coordination and permitting, public notification, traffic control implementation and maintenance per the MUTCD, spatial inventory of utility infrastructure at the surface, roadway excavation, concrete demolition, PCC Curb and Gutter, PCC ADA Curb Ramps, PCC Sidewalk, PCC Cross Gutters and Spandrels, adjustment of utility infrastructure.

The work shall be completed in 30 calendar days.
2 Standard Specifications
Standard Specifications for City projects are those contained in the 2024 Greenbook edition of the "Standard Specifications for Public Works Construction" (the "Greenbook"). Except as otherwise expressly provided herein, the Standard Specifications shall control the general provisions, construction materials, and construction methods for this Contract (except as amended by the Plans for the Project), the General Specifications for the Project, the Special Provisions for the Project, any technical specifications for the Project, and any other contract documents.

Should it apply, the Successor Community Workforce Agreement policies and procedures must be followed as outlined in the attached agreement. 3 Compensation
City shall pay Contractor the total, all-inclusive, NOT-TO-EXCEED amount of three hundred ninety-five thousand, five hundred fourteen Dollars ($395514) for the construction of the Project. This amount shall cover all expenses for labor, materials, and any and all other costs incurred by Contractor to satisfactorily construct the 1-14Concord - Document ID: generated after first signature Project. Unless otherwise provided in the bid documents or agreed upon by the parties, Contractor shall submit detailed, monthly invoices for work actually performed.

4 Completion Date

The construction of the Project shall commence upon Contractor being given a written notice to proceed, and shall be completed within 30 working days of said notice.

5 Payment and Performance Bonds; Guaranty

Unless otherwise expressly provided in the bid documents, prior to commencing work, Contractor shall provide a payment bond and performance bond, each in an amount equal to 100% of the projected annual recurring services price for each year of the term of the contract. Contractor shall submit all bonds electronically through Surety 2000. Pursuant to the bid documents for this Project, the Contractor is required to provide a written guaranty of Contractor’s work. In furtherance thereof, Contractor shall execute the written form of Guaranty attached hereto and incorporated by reference herein.

6 Licenses

At all times during the term of this Contract, Contractor shall possess a valid and current Class A Contractor's License or Specialty Contractor License consisting of Class A licensee to perform the required work (“Work”). Contractor’s DIR registration number is 2000010655. Contractor hereby certifies that it holds the required license(s).

CONTRACTOR shall maintain in current status all Federal, State, and local licenses and permits required for the operation of the business conducted by the CONTRACTOR as applicable to this contract.

CONTRACTOR shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.

7 Subcontracting

Subject to any self-performance requirements herein, Contractor may subcontract any portion of the work required by this Contract to other persons or firms, and Contractor submitted with its bid a list of those subcontractors who will perform work in an amount in excess of one-half of one percent (1%) of the Contractor’s total bid, in compliance with the Subletting and Subcontracting Fair Practices Act, 2-14Concord - Document ID: generated after first signature California Public Contract Code § 4100, et seq. Only such listed subcontractors may perform on this Project.

8 Non-Assignability

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

9 Administration

This Contract will be administered by the Public Works Department of the City. The Director of Public Works or his or her designee shall be considered the Project Administrator and shall have the authority to act for the City under this Contract.

10 Indemnification

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

11 Insurance

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

11.1.1 Commercial General Liability
 $2,000,000.00 limit on a per occurrence basis
 $4,000,000.00 general aggregate limit

11.1.2 Commercial Automobile Liability
 $2,000,000.00 combined single limit including owned, non-owned and hired automobile coverage

11.1.3 Workers’ Compensation and Employer’s Liability
 Workers’ Compensation -- coverage as required by the State of California  Employer’s Liability --
$1,000,000.00 each accident
3-14Concord - Document ID: generated after first signature $1,000,000.00 policy limit bodily injury
$1,000,000.00 each employee bodily injury by disease

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

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

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

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

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

B. “Severability of Interest” Clause.

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

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

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

11.6 Acceptable Proof of Insurance:

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

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

Upon issuance, policy endorsements and a corresponding Certificate of 4-14Concord - Document ID: generated after first signature Insurance listing all insurers and coverage must be submitted to the City Attorney.

C. *When pollution/environmental liability coverage is provided on a “claims made basis”, CONTRACTOR will continue to renew the insurance for a period of five (5) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONTRACTOR, or its officers, employees, or agents during the time this Agreement was in effect.

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

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

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

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

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

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

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

12.2 This is a public work and requires the payment of prevailing wages for the work or craft in which the worker is employed for any public work done under the contract by Contractor or by any subcontractor pursuant to Section 1771 of the Labor Code. Pursuant to the provisions of Section 1773 of the Labor Code of the State of 5-14Concord - Document ID: generated after first signature California, the City has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this contract from the Director of the Department of Industrial Relations. These rates are on file with the City or may be obtained at http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm.

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

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

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

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

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

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

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

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

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

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

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

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

15 Location of Existing Elements
Pursuant to Government Code Sections 4216 to 4216.9, the methods used and costs involved to locate existing elements, points of connection and all construction methods are Contractor’s sole responsibility. Accuracy of information furnished, as to existing conditions, is not guaranteed. Contractor, at its sole expense, must make all investigations necessary to determine locations of existing elements, which may include, without limitation, contacting U.S.A. alert and other private underground locating firm(s), and/or utilizing potholes, specialized locating equipment and/or hand trenching.
16 Third Party Claims
Pursuant to Public Contract Code Section 9201, the City has full authority to compromise or otherwise settle any claim relating to this Contract at any time. The City shall timely notify Contractor of the receipt of any third-party claim relating to the Contract. The City shall be entitled to recover its reasonable costs incurred in providing the notification required by Public Contract Code Section 9201(b). 17 Non-Collusion
Contractor hereby certifies that this bid is genuine and not a sham or collusive, or made in the interest or on behalf of any person or business not herein named. Contractor further certifies that Contractor has not directly or indirectly induced or solicited any other bidder to furnish a sham bid, or any other person or 8-14Concord - Document ID: generated after first signature business to refrain from bidding, and Contractor has not in any manner sought by collusion to secure itself an advantage over any other bidder. Contractor also affirms that it has signed and submitted with its bid to the City a Non-collusion Declaration as required by Public Contract Code Section 7106.
18 Conflicts of Interest
Contractor agrees not to accept any employment or representation during the term of this Contract or within twelve (12) months after completion of the work under this Contract which is or may likely make Contractor “financially interested,” as provided in Government Code Section 1090 and 87100, in any decisions made by City on any matter in connection with which Contractor has been retained pursuant to this Contract.
19 Audit
The City or its representative shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its billings to the City as a condition precedent to any payment to Contractor. Contractor will promptly furnish documents requested by the City. Additionally, pursuant to Government Code Section 8546.7, if this Contract involves the expenditure of public funds in excess of ten thousand dollars ($10,000), Contractor shall be subject to State Auditor examination and audit at the request of the City or as part of any audit of the City, for a period of three (3) years after final payment under this Contract. 20 Substitute Security
Pursuant to Public Contract Code Section 22300, the substitution of securities for any moneys withheld by the City to ensure performance under a contract is permitted, except where financing will be provided by the Farmers Home Administration of the United States Department of Agriculture pursuant to the Consolidated Farm and Rural Development Act (7 U.S.C. Sec. 1921 et seq.) or where federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in the State of California as the escrow agent, that shall then pay those moneys to Contractor. Upon satisfactory completion of the Contract, the securities shall be returned to Contractor.

Alternatively, Contractor may request and the City shall make payment of retentions earned directly to the escrow agent at the expense of Contractor. At the expense of Contractor, Contractor may direct the investment of the payments into securities, and Contractor shall receive the interest earned on the investments upon the same terms provided for securities deposited by Contractor. Upon satisfactory completion of the Contract, Contractor shall receive from the escrow agent all securities, interest, and payments received by the escrow agent from the City, pursuant to the terms of this section.
9-14Concord - Document ID: generated after first signature Securities eligible for investment shall include those listed in California Government Code Section 16430, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security to which Contractor and the City agree in writing. Contractor shall be the beneficial owner of any securities substituted for moneys withheld and shall receive any interest thereon.

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

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

All claims arising out of or related to the Contract documents or this Project, and the consideration and payment of such claims, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims. All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Contract hereby incorporates those provisions as though fully set forth herein. Thus, the Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 9204 and 10-14Concord - Document ID: generated after first signature Article 1.5 (if applicable), and must then adhere to Section 9204 and Article 1.5 (as applicable), pursuant to the definition of “claim” as individually defined therein. 22 Non-discrimination and Equal Employment Opportunity

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

CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status . Affirmative action relating to employment shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
23 Integration
This Contract supersedes any and all agreements, either oral or written, between the parties hereto with respect to the construction of the Project by Contractor for City and contains all of the covenants and agreements between the parties with respect to the construction of the Project. Each party to this Contract acknowledges that no representations, inducements, promises, or agreements, orally or otherwise, have been made with regard to the construction of the Project by any party, or anyone acting on behalf of any party, which are not embodied herein, and that no other agreement, statement, or promise regarding work not contained in this Contract shall be valid or binding. Any modification or amendment of this Contract will be effective only if it is in writing and signed by the parties to this Contract. Any changes to the work required by this Contract will be by change order signed by the parties. 24 Debarment and Suspension Certification
Title 2, Code of Federal Regulations, Part §180.300
The bidder, under penalty of perjury, certifies that, except as noted in a separate document, he/she or any other person associated therewith in the capacity of owner, partner, director, officer, or manager:
•is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any Federal agency;
•has not been suspended, debarred, voluntarily excluded or determined ineligible by any Federal agency within the past 3 years; •does not have a proposed debarment pending; and
11-14Concord - Document ID: generated after first signature •has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past 3 years.
25 Governing Law
This Contract will be governed by and construed in accordance with the laws of the State of California without reference to change of venue laws. Any legal action in which enforcement of the terms and conditions of this Contract is requested, or in which it is alleged that a breach of this Contract has taken place, shall be filed and prosecuted in the County of Los Angeles, California.
26 Successors and Assigns
The terms and conditions of this Contract shall be binding on the successors and assigns of the parties to this Contract.
27 Exhibits
The exhibits and attachments referenced in this Contract are attached hereto and incorporated herein by this reference as though set forth in full in the Contract. 28 Authority to Sign
The person or persons executing this Contract on behalf of the Contractor warrant and represent that they have the authority to execute this Contract on behalf of the Contractor and have the authority to bind Contractor to the construction of the Project.
12-14Concord - Document ID: generated after first signature 29 Time is of the Essence
Time is of the essence in every provision of this Agreement in which time to perform is a factor.

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

CITY OF PALMDALE AZAS ENGINEERING INC.

Date

Alaa Abdellatif Date
Company President

ADDRESS FOR NOTICE:

CITY OF PALMDALE
38250 Sierra Hwy
Palmdale, CA 93550

ADDRESS FOR NOTICE:

AZAS ENGINEERING INC.
1010 Raleigh Street #114
Glendale, CA 91205
APPROVE AS TO FORM:

ATTEST:

Roxanne Faber
City Clerk
ATTEST: If Corporation

Secretary

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

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

13-14Concord - Document ID: generated after first signature □Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) □Attached notarized bond(s), Worker's Compensation Certificate, and Guaranty □Attached Agreement Checklist and met all requirements
□2 CFR 200 Checklist (if federally funded)

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E AVE Q SIERRA HWY

DIVISION ST

PALMDALE BLVD
CA-14

RANCHO VISTA BLVD
3RD ST E
10TH ST W
AVE P-12

City Council Staff Report

DATE: JANUARY 13, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: PUBLIC WORKS DEPARTMENT

CAPITAL IMPROVEMENT PROGRAM DIVISION

DISTRICT: 3

SUBJECT: APPROVE THE FIRST AMENDMENT TO AGREEMENT WITH RHA LANDSCAPE ARCHITECTS -PLANNERS, INC., FOR DESIGN
SERVICES FOR PN 8 71, OASIS PARK BASIN UPGRADES
PROJECT, INCREASING THE AGREEMENT BY $57,607 FOR A
TOTAL NOT TO EXCEED AMOUNT OF $ 364,205 FOR A TERM OF
12 MONTHS FROM THE DATE OF THE NOTICE TO PROCEED

RECOMMENDATION

Staff recommend that the City Council:

1. Approve the First Amendment to Agreement No. A -9293 with RHA Landscape Architects-Planners, Inc., for design services for PN 871, Oasis Park Basin Upgrades Project (Project), increasing the Agreement by $57,607, for a total not to exceed amount o f $ 364,205, which includes the original contract amount of $278,725, plus a new updated 10% contingency amount of $33,110, for a term of 12 months from the date of the Notice to Proceed;

2. Authorize the Interim City Manager or h is designee to execute the First Amendment to Agreement No. A-9293 with RHA Landscape Architects-Planners, Inc., including minimal and/or non-substantial changes; and,

3. Authorize the Interim City Manager or his designee to approve change orders for additional or changed scope of work up to the 10% contingency amount approved by the Council.

BACKGROUND

On May 6, 2025, the City Council awarded RHA Landscape Architects-Planners, Inc., a consultant contract for $278,725 plus 10% Contingency, for a term of 12 months. The scope of the work include d addressing both flood control and recreational needs, evaluating the existing park basin, and developing a comprehensive improvement plan.

The plan w ill include recommendations based on current site conditions, such as Report to Mayor and City Council
Re: First Amendment to Agrmt No. A-9293
January 13, 2026

maintenance needs, access for vehicles and pedestrians, erosion control plantings, turf management, and preparation for future sports field lighting. The Project will also include design plans for new site features, including a restroom/storage building with a drinking fountain, a monument sign with uplighting, a safety fence along the walking path (which incorporates fitness elements), pet waste stations, and trail lighting enhancements.

DISCUSSION

The Project began design in June of 2025 and was anticipated to be completed by June 2026. The original project scope did not include a complex drainage basin redesign. This redesign is required to incorporate a multipurpose sports field while ensuring the drainage basin’s functionality aligns with the specifications of the Drainage Master Plan.

The proposed redesign will consist of p roviding additional field survey to support the drainage basin redesign, reestablishing to meet the original required basin volume per a Drainage Master Plan, r edesigning inlet and outlet structures, connecting public storm drain systems as needed , and providing landscape architectural design services a t the northwest corner of the park to include playground improvements, fencing, and landscape that was not in the original scope of work.

FISCAL IMPACT

$57,607; This project is funded using Drainage Funds. Sufficient funds are budgeted and available in FY 2025-26. The total contract amount can be seen in the following table:

Project Summary Cost
Design Contract Agrmt No. A-9293 $278,725
First Amendment to Agrmt No. A-9293 $52,370
10% Contingency $33,110
Total Contract Amount $364,205

STRATEGIC PLAN

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

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

ATTACHMENTS
Prepared by: Leonardo Torres, P.E.,
Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, Interim City Manager
Approved as to form: Alexandra Severino, City Attorney
Report to Mayor and City Council
Re: First Amendment to Agrmt No. A-9293
January 13, 2026

Agrmt No. A-9293 First Amendment with RHA Landscape Architects-Planners, Inc.

Agrmt No. A-9293 with RHA Landscape Architects-Planners, Inc.

FIRST AMENDMENT TO AGREEMENT A- 9293

BETWEEN THE CITY OF PALMDALE AND RHA LANDSCAPE ARCHITECTS- PLANNERS, INC.

This First Amendment to Agreement No. A-9293 (“Agreement”) is made and entered into by and between the City of Palmdale (hereinafter called “CITY”) and RHA LANDSCAPE ARCHITECTS-PLANNERS, INC. (hereinafter called "CONSULTANT").

This Contract shall become effective on the date of the last signatory.

WHEREAS, on May 22, 2025 ("Original Agreement") the CITY and CONSULTANT entered into an agreement to provide:

PN 871 - Oasis Park Basin Upgrade Project
TASK 1 – PRELIMINARY RESEARCH & INVESTIGATION
Task 1a - Pre-Design Investigation
Task 1b - Topographic Survey
TASK 2 – PRELIMINARY DESIGN (50% and 80% PS&E)
Task 2a - Develop Park Element Design Concepts
Task 2b - Revise Design Concepts into Final Design
Task 2c - Public Outreach / Presentation Graphics for Park Task 2d - Preliminary Engineer’s Estimate
Task 2e - Meetings with City Staff
TASK 3 – FINAL DESIGN (95% and 100% PS&E)
Task 3a - 95% PS&E
Task 3b - 100% PS&E
TASK 4 – CONSTRUCTION ENGINEERING SUPPORT SERVICES (Contingent Concord - Document ID: generated after first signature 1-13Item) CONSULTANT'S detailed proposal is attached as Exhibit "B".

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

Amendment #1: Increase the contract amount by $52,370, for a not to exceed amount of $331,095.

NOW THEREFORE, the parties agree as follows:

Include Attached Exhibit "A": Agreement and Work Authorization Detail.

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

1-2Concord - Document ID: generated after first signature

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

CITY OF PALMDALE:

RHA LANDSCAPE ARCHITECTS-
PLANNERS, INC.:

Doug Grove, RLA, LEED AP
President/Landscape Architect
ADDRESS FOR NOTICE:

CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550

ADDRESS FOR NOTICE:

RHA LANDSCAPE ARCHITECTS-
PLANNERS, INC.
6840 Indiana Avenue, Suite 100
Riverside, CA 92506
APPROVE AS TO FORM:

ATTEST:

Roxanne Faber
City Clerk

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

□Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) □Original contract and previous amendment(s) (if any) are attached □Attached Agreement Checklist and met all requirements
2-2Concord - Document ID: generated after first signature

6840 INDIANA AVENUE, SUITE 100, RIVERSIDE, CALIFORNIA 92506 (951) 781-1930 www.rhala. com LICE NSE #2799

ADDITIONAL WORK AUTHORIZATION

Rebecca Brown, Project Manager Date: November 25, 2025
City of Palmdale Project: Oasis Park Basin Upgrades
Public Works | Capital Improvement Program
38250 Sierra Highway
Palmdale, CA 93550
[email protected] Work Authorization No: 1

Dear Rebecca,
RHA Landscape Architects-Planners, Inc. has deve loped the following scope of services and fee schedule for additional design services requested on the Oasis Park Basin Upgrades project.

SCOPE OF SERVICES

1. Basin Changes
a. Provide field survey and office support to confirm offsite Storm Drain locations and elevations to support Basin Re-design.
b. Regrade existing basin to provide for sports fields on the west 2/3 and 1/3 deepened basin. Basin regrading also includes reestablishing the original required basin volume as provided in the flood routing study for the basin provided by the City. c. Redesign inlet and outlet structures, and connecting public storm drain systems as needed to match up to the redesigned basin elevations. Includes hydraulic calculations for new storm drain lines from basin to upstream and/or downstream connections to the existing system.
d. Revise preliminary plans and coordination with the City and design team.

2. North West Corner
a. Provide additional topographic survey for the northwest corner of the site that was not in the original RFP scope of work.
b. Provide landscape architectural design services at the northwest corner of the park to include playground improvements, fencing, and landscape.

Oasis Park Basin Upgrades Additional Services November 25, 2025 Rebecca Brown Page 2 of 2

RHA LANDSCAPE ARCHITECTS – PLANNERS, INC.

SCHEDULE OF FEES

1. Basin Changes
Engineering: $ 43,600
Landscape Architecture: $ 2,500

2. North West Corner
Engineering: $ 1,770
Landscape Architecture: $ 4,500

Total Fee: $ 52,370

Upon your review of the above referenced scope of services, please sign and return this agreement to RHA Landscape Architects-Planners, Inc. An emailed PDF copy of this agreement is sufficient.

Cordially, Authorized by:

RHA Landscape Architects-Planners, Inc. _________________________________

Doug Grove, RLA, LEED AP Name/Title:

President
By:

Date:

AGREEMENT NO. A-9293

CONTRACT FOR CONSULTANT SERVICES

BETWEEN THE CITY OF PALMDALE AND RHA LANDSCAPE ARCHITECTS- PLANNERS, INC.

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 RHA LANDSCAPE ARCHITECTS-PLANNERS, INC. (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:

PN 871 - Oasis Park Basin Upgrade Project
TASK 1 – PRELIMINARY RESEARCH & INVESTIGATION
Task 1a - Pre-Design Investigation
Task 1b - Topographic Survey
TASK 2 – PRELIMINARY DESIGN (50% and 80% PS&E)
Task 2a - Develop Park Element Design Concepts
Task 2b - Revise Design Concepts into Final Design
Task 2c - Public Outreach / Presentation Graphics for Park Task 2d - Preliminary Engineer’s Estimate
Task 2e - Meetings with City Staff
TASK 3 – FINAL DESIGN (95% and 100% PS&E)
Task 3a - 95% PS&E
Task 3b - 100% PS&E
TASK 4 – CONSTRUCTION ENGINEERING SUPPORT SERVICES (Contingent 1-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h
Concord - Document ID: generated after first signature 1-13 Item)
CONSULTANT'S detailed proposal is attached as Exhibit "A".

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:

Doug Grove - President/Landscape Architect
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 Twelve (12) Months, commencing on the effective date. 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 3-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h
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 Two Hundred Seventy-Eight Thousand Seven Hundred Twenty-Five dollars ($278725.00), payable as follows:

Task 1................................................................................................................$58,800 Task 2................................................................................................................$71,825 Task 3..............................................................................................................$129,300 Task 4................................................................................................................$18,800 Project Total.....................................................................................................$278,725 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.
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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. 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

5-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h

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

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.
6-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h

11.8 Acceptable Proof of Insurance:

11.8.1 ACORD Certificate of Insurance listing all coverages, limits, deductibles and insureds; and endorsements for all applicable coverages if agent has authority to issue it; Additional insured Form CG20101185 or CG20100707 and CG20370704 or equivalent must be provided for general liability coverage.

Additional insured form CA0001 must be provided for automobile liability coverage.

11.8.2 Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements listing all insurers must be submitted to the City Attorney.

11.8.3 *When professional (E&O) liability coverage is provided on a “claims made basis”, 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 7-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h
shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
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 8-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h
be, and remain the property of CITY. CONSULTANT shall furnish CITY, upon its 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. 9-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h

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 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 10-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h
costs of the assessment district’s improvements and the costs of such services shall be deducted from the compensation to be paid to CONSULTANT.

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. 11-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h

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: RHA LANDSCAPE ARCHITECTS-
PLANNERS, INC.:

Salvador Mendez
City Manager Pro-Tem

Doug Grove, RLA, LEED AP
President/Landscape Architect
ADDRESS FOR NOTICE:

CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550

ADDRESS FOR NOTICE:

RHA LANDSCAPE ARCHITECTS-
PLANNERS, INC.
6840 Indiana Avenue, Suite 100
Riverside, CA 92506
APPROVE AS TO FORM:

Alexandra Halfman
Acting City Attorney

ATTEST:

Roxanne Faber
City Clerk

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

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■Certificate(s) and Endorsement(s) attached
■Confirmed business name on contract with certificate(s) ■Attached Agreement Checklist and met all requirements
13-13Concord - Document ID: 02zycRXo1F1ij8SpIhIq1h
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Signing date: 5/22/2025
IP Address: 206.171.111.149
Email: [email protected]

City Council Staff Report

DATE: JANUARY 13, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: PUBLIC WORKS DEPARTMENT

INNOVATION AND ENVIRONMENTAL DIVISION

DISTRICT: ALL

SUBJECT: APPROVE SECOND AMENDMENT TO AGREEMENT FOR

ADMINISTRATIVE SERVICES WITH CALIFORNIA CHOICE ENERGY
AUTHORITY (CALCHOICE) IN THE AMOUNT OF $1,823,978 FOR A

TERM OF ONE YEAR

RECOMMENDATION

Staff recommend that the City Council:

1. Approve the second amendment to Agreement No. A-6826 with California Choice Energy Authority ( CalChoice) for administrative services in the amount of $1,823,978 for a term of one year; and,

2. Authorize the Interim City Manager, or his designee, to execute the Second Amendment to Agreement No. A -6826 for administrative services with CalChoice.

BACKGROUND

The City’s Community Choice Aggregation (CCA) Program, Energy for Palmdale’s Independent Choice (EPIC), was established through the adoption of Resolution No. CC 2018-087, approving submittal of an Implementation Plan (Plan), in accordance with Public Utilities Code Section 366.2(c), on December 4, 2018. The Plan was certified by the California Public Utilities Commission’s Energy Division on February 28, 2019, and EPIC successfully began serving customers on October 1, 2022.

DISCUSSION

The City executed an Administrative Services Agreement (Agreement No. A-6826) with CalChoice, a Joint Powers Authority, dated October 21, 2019. The Second Amendment is proposed to update and clarify the terms of this existing Agreement.

Report to Mayor and City Council
Re: Second Amendment to Agrmt No. A-6826 with CalChoice January 13, 2026

The Second Amendment replaces Exhibit C to the Agreement. Key changes include an update to the fixed fee rate . This update formalizes the CPI -related adjustments to professional services agreements and clar ifies reimbursable expenses, including the introduction of a new reimbursable expense category for the CalChoice Board Secretary position. Additionally, this amendment also incorporates CalCCA Membership Fees into the fixed fee costs, which were previously paid separately outside of the Agreement.

The total fiscal impact is $1,823,978, to be paid from EPIC's operations account. The execution of the Second Amendment will result in changes to t he fixed fee and reimbursable expenses outlined in the Administrative Services Agreement. The revised rates in Exhibit C include annual Fixed Fee costs of $ 500,353. Exhibit C also encompasses annual estimated reimbursable expenses for Data Management Servi ces ($936,000), Professional Services ($367,625), and Legal Services ($20,000) , and may contain annual adjustments based on cost indices.

The specific financial impacts are detailed in Exhibit C attached to the amendment and are considered a budgeted item for the current fiscal year.

This amendment has been reviewed and approved by the City Attorney, and it appropriately funds EPIC’s proportional operational costs, ensuring the Agreement’s financial terms are current.

FISCAL IMPACT

$1,823,978 annually, subject to CPI increases as outlined in the Second Amendment.

Funds are budgeted and available for FY 2025-26 in EPIC’s operations accounts.

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

Goal III: Invest in infrastructure to improve community livability.

B. Implement and administer environmentally sustainable programs.

Prepared by: Leonardo Torres, P.E.

Director of Public Works
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, Interim City Manager
Approved as to form: Alexandra Severino, City Attorney

Report to Mayor and City Council
Re: Second Amendment to Agrmt No. A-6826 with CalChoice January 13, 2026

ATTACHMENT
Agrmt No. A-6826 Second Amendment with CalChoice
Agrmt No. A-6826 First Amendment with CalChoice
Agrmt No. A-6826 with CalChoice

AMENDMENT NO. 2 TO AGREEMENT FOR ADMINISTRATIVE SERVICES BY AND BETWEEN THE

CALIFORNIA CHOICE ENERGY AUTHORITY AND THE CITY OF PALMDALE

This Amendment (“Amendment No. 2”) is hereby entered into by and between California Choice Energy Authority (PROVIDER), a Joint Powers Authority, in the State of California, AND the City of Palmdale, a municipal corporation and charter city (CUSTOMER) with respect to the Administrative Services Agreement between the parties dated October 21, 2019 (“Agreement”).

The parties agree as follows:

1. “Exhibit C” to the Agreement is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto.

2. Professional Services agreements in Section 2 (b) may contain annual adjustments based on cost indices.

3. This amendment is effective July 1, 2025.

4. All other terms and provisions of the Agreement are hereby reaffirmed.

In witness whereof the parties have executed the Amendment on the date set forth below:

PROVIDER CUSTOMER

CALIFORNIA CHOICE ENERGY AUTHORITY CITY OF PALMDALE

_____________________________________________ _______________________________________________ Robert Johnson, Interim CEO Salvador Mendez, Interim City Manager

Dated: Dated:

ATTEST:

Susan Caputo, MMC, Authority Secretary

_________________________________________
Allison Burns, General Counsel

EXHIBIT C

FIXED FEE RATE, REIMBURSABLE EXPENSES

AND NOTICE ADDRESS

1. Fixed Fee Rate: Fiscal Year
$ 500,353 annually
$ 41,696 monthly

2. Reimbursable Expenses:

(a) Data Management Services: Fiscal Year
$ 936,000 fiscal year total (estimated)
$ 78,000 monthly (estimated)

(b) Professional Services: Fiscal Year
$ 367,625 annually (not to exceed)
$ 30,635 monthly (not to exceed)

(c) Legal Services (as incurred): $ 20,000 annually (estimated)

(d) Supplemental Procurement
Services (as incurred): $ Amounts approved by Customer and Provider in accordance with Exhibit E.

3. Address for Notices:

Provider: California Choice Energy Authority
44933 Fern Avenue
Lancaster, California 93534
Attn: Cathy DeFalco
Tel: 888.639.2411
Email: [email protected]
With a copy to Provider’s legal counsel:

Hall Energy Law PC
Attn: Stephen Hall
Tel: 503.477.9354
Email: [email protected]
Customer: City of Palmdale
Attn: Salvador Mendez
Tel: 661.267.5100
Email: [email protected]

City of Palmdale Amendment No. 2 January 13, 2026

AMENDMENT NO. 1 TO AGREEMENT FOR ADMINISTRATIVE SERVICES BY AND BETWEEN THE

CALIFORNIA CHOICE ENERGY AUTHORITY AND THE CITY OF PALMDALE

This Amendment (“Amendment No. 1”) is hereby entered into by and between California Choice Energy Authority (PROVIDER), a Joint Powers Authority, in the State of California, AND the City of Palmdale, a municipal corporation and charter city (CUSTOMER) with respect to the Administrative Services Agreement between the parties dated October 21, 2019 (“Agreement”).

The parties agree as follows:

1. “Exhibit C” to the Agreement is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto.

2. Professional Services agreements in Section 2 (b) may contain annual adjustments based on cost indices.

3. This amendment is effective July 1, 2023.

4. All other terms and provisions of the Agreement are hereby reaffirmed.

In witness whereof the parties have executed the Amendment on the date set forth below:

PROVIDER CUSTOMER

CALIFORNIA CHOICE ENERGY AUTHORITY CITY OF PALMDALE

_____________________________________________ _______________________________________________ Jason Caudle, Executive Director Ronda Perez, City Manager BY: Barbara Boswell, Treasurer

Dated: Dated:

ATTEST:

Andrea Alexander, Authority Secretary

_________________________________________
Allison Burns, General Counsel
DocuSign Envelope ID: 7DC0DD2B-9458-4324-9A01-765A20042AFD 8/15/2023
8/16/2023

EXHIBIT C

FIXED FEE RATE, REIMBURSABLE EXPENSES

AND NOTICE ADDRESS

1. Fixed Fee Rate: Fiscal Year
$ 364,356 annually
$ 30,363 monthly

2. Reimbursable Expenses:

(a) Data Management Services: Fiscal Year
$ 686,535 fiscal year total (estimated)
$ 57,211 monthly (estimated)

(b) Professional Services: Fiscal Year
$ 363,000 annually (not to exceed)
$ 30,250 monthly (not to exceed)

(c) Legal Services (as incurred): $ 20,000 annually (estimated)

(d) Supplemental Procurement
Services (as incurred): $ Amounts approved by Customer and Provider in accordance with Exhibit E.

3. Address for Notices:

Provider: California Choice Energy Authority
44933 Fern Avenue
Lancaster, California 93534
Attn: Cathy DeFalco
Tel: 888.639.2411
Email: [email protected]
With a copy to Provider’s legal counsel:

Hall Energy Law PC
Attn: Stephen Hall
Tel: 503.477.9354
Email: [email protected]
Customer: City of Palmdale
Attn: Ronda Perez
Tel: 661.267.5100
Email: rperez@cityofpalmdale,org

City of Palmdale Amendment No. 1 August 15, 2023

DocuSign Envelope ID: 7DC0DD2B-9458-4324-9A01-765A20042AFD October 21
October 21

1 MINUTES

CITY COUNCIL/SA/HA

CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B

PALMDALE, CALIFORNIA
DECEMBER 2, 2025
5:00 PM

1) CALL MEETING TO ORDER

Mayor Pro Tem Bettencourt called the meeting to order at 5:02 pm.

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

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

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

ABSENT: Richard J. Loa, Andrea Alarcón.

Motion: Excuse the absence of Councilmember Loa.

Moved by Laura Bettencourt, seconded by Austin Bishop.

Vote: Motion carried (5-0)
Yes: Laura Bettencourt, Austin Bishop, Eric Ohlsen, Christina Fraga-Saenz, Dianne Betts.

Absent: Richard J. Loa.

Councilmember Alarcón arrived at 5:06 pm.

3) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE

Mayor Pro Tem Bettencourt led the pledge of allegiance.

4) PRESENTATIONS

4.1) Recognition of Lockheed Martin’s X-59.

Mayor Pro Tem Bettencourt presented a Commendation to Lockheed Martin staff in honor of the X -59 being named by Governor Newsom as the "Coolest Thing Made in California."

Pat LeBeau, X -59 Program Manager and Catherine Bahm, Project Manager spoke about the X-59 Project.

2 4.2) Commendation to Terry Stewart in honor of his retirement from the City of Palmdale.

Deputy Director of Public Works Livingston discussed the character and commitment of Terry Stewart and Clifton Young to serving the City of Palmdale.

Mayor Pro Tem Bettencourt presented a Commendation.

4.3) Commendation to Clifton Young in honor of his retirement from the City of Palmdale.

5) HOUSING AUTHORITY CONSENT CALENDAR

5.1) Approve the City of Palmdale Housing Authority 2024 -25 Annual Report prepared pursuant to California Health & Safety Code Section 34176.1 and direct staff to post the approved Report on the City’s Website.

5.2) Approve the minutes from the previous meeting.

Motion: Approve the items listed on the Housing Authority Consent Calendar.

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

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

Absent: Richard J. Loa.

Mayor Pro Tem Bettencourt adjourned the Housing Authority Meeting at 5:26 pm.

6) CONSENT CALENDAR

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

6.2) Receive and file the monthly investment activity reports for October 2025.

6.3) Adopt Resolution Nos. SA 2025 -004 and SA 2025 -005, Resolutions of the Successor Agency to the Community Redevelopment Agency of the City of Palmdale approving the Recognized Obligation Payment Schedule and the Administrative Budget, respectively, for the period of July 1, 2026 through June 30, 2027.

6.4) Receive and file the Special Tax Annual Report for CFD 2003 -1 (Anaverde), CFD 05 -1 (Trade and Commerce), CFD 16 -1 (Joshua Ranch Water Supply and Maintenance Services), CFD 2022 -1 (Citywide Maintenance and Services), CFD 2022-2 (Ritter Ranch Maintenance Services), and CFD 2022-3 3 (Ritter Ranch Phase I Public Facilities) in accordance with Senate Bill 165, Section 53410 of the California Government Code.

6.5) Approve Agreement with Quest Technology Management for network hardware and security services for a total not to exceed amount of $259,855 for a term of three years with the option to extend two additional one year terms.

6.6) Approve Agreement with Citadel EHS, Inc., for a comprehensive safety/injury illness prevention program assessment for the City of Palmdale, for a total not to exceed amount of $150,000 for a term of one (1) year.

6.7) Approve Agreement with Benevate, LLC, for implementation of software related to grant management and ongoing grant compliance oversight for a total not to exceed amount of $217,000 for a term of three (3) years.

6.8) Accept Notice of Completion (NOC) for PN 904, FY 2024 -25 Local Street ARAM Cape Seal Project.

6.9) Accept Notice of Completion (NOC) for PN 911, FY 2025 -26 Local Street Resurfacing Project.

6.10) Approve Final Tract Map No. 63364 -1 (located at the southeast corner of Palmdale Boulevard and 65th Street East).

6.11) Approve Final Tract Map No. 83359 (Located at the southwest corner of Palmdale Boulevard and Oak Street).

6.12) Approve the minutes from the previous meeting.

Motion: Approve the items listed on the Consent Calendar.

Moved by Austin Bishop, seconded by Andrea Alarcón.

Vote: Motion carried (4-0)
Yes: Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón.

Absent: Richard J. Loa.

7) PUBLIC HEARING

7.1) Approve Amended and Restated Purchase and Sale Agreement with AVCC Master, LLC (an affiliate of Covington Investments, LLC), for the sale of approximately 233 acres located at the southeast corner of Sierra Highway and Avenue M (APN: 3126-022-929).

Mayor Pro Tem Bettencourt opened the Public Hearing.

Economic and Community Development Director Taggart presented the staff report.

4 The following individuals provided public testimony in favor of the project: Rene Palacios, Josh Christensen, Ralph Velador, Iron workers 416, UA Local 761 Plumbers & Pipe Fitters, Drew Mercy, Brenda Campos, and Kateleen Luna.

Jason Zink spoke in opposition of the project.

Mayor Pro Tem Bettencourt closed the Public Hearing.

Council spoke in support of the project.

Motion: Approve Amended and Restated Purchase and Sale Agreement with AVCC Master, LLC (an affiliate of Covington Investments, LLC).

Moved by Andrea Alarcón, seconded by Eric Ohlsen.

Vote: Motion carried (4-0)
Yes: Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón.

Absent: Richard J. Loa.

Mayor Pro Tem Bettencourt recessed the meeting from 5:51 pm to 6:04 pm.

8) NEW BUSINESS

8.1) Annual selection of Mayor and Mayor Pro Tem.

City Attorney Severino presented the item.

The following individuals provided public comments on this item: Rich Gallego, Ralph Velador, Michael Ross, Eugene Hernandez, Roger Soderstedt, Jason Zink, Mark Maldanado, and Marcos Alvarez.

Councilmember Bishop spoke in support of the rotational system and nominated Councilmember Ohlsen to be mayor. Councilmember Alarcón spoke in support of the nomination.

Motion: Approve the selection of Councilmember Ohlsen as Mayor.

Moved by Austin Bishop, seconded by Andrea Alarcón.

Vote: Motion carried (4-0)
Yes: Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón.

Absent: Richard J. Loa.

Councilmember Ohlsen discussed the current rotational system, acknowledged the respect of his colleagues, and expressed his commitment to serving the City.

Motion: Approve the selection of Councilmember Bishop as Mayor Pro Tem.

Moved by Laura Bettencourt, seconded by Eric Ohlsen.

Vote: Motion carried (4-0)
Yes: Laura Bettencourt, Austin Bishop, Eric Ohlsen, Andrea Alarcón. 5 Absent: Richard J. Loa.

Councilmember Bishop thanked his colleagues for their vote of confidence.

9) CITY MANAGER’S REPORT

Interim City Manager Mendez spoke about the city receiving awards, including an APWA Best Award for the best innovative project, which was awarded to Public Works for their Community Preservation Program (CPP). The city also received the High Desert Award for Yellen Park , recognizing it as outstanding project of the year.

He thanked Parks and Recreation for the Holiday lighting event. He provided an update on several upcoming events including: Jolly Holiday on December 6 at the Palmdale Amphitheater, How the Grinch Stole Christmas - family movie night at Poncitlan Square on December 12 as well as a toy giveaway the same day, holiday cookie decorati ng event at Marie Kerr Park and Oasis Recreation Center s on December 13, Holiday Magic at the Square at Poncitlan Square on December 19, and several SAVES food distribution events.

10) NON-AGENDA PUBLIC COMMENTS

The following individuals provided public comments: Eugene Hernandez expressed his concerns regarding Councilmember Alarcón's conduct, a proposed car wash in East Palmdale, and the establishment of a community center. Drew Mercy of AV Edge provided Council with a thumb drive containing their quarterly report under the new agreement, thanked Council and staff for attending AV Edge's fall forum at the Playhouse, discussed streamlining development, and spoke about the upcoming holiday reception. Valanda Harville voiced her concerns about the street sweeping signage. Mark Maldonado expressed support for the lighting at Poncitlan Square, discussed the town hall meetings organized by Councilmember Alarcón and Mayor Pro Tem Bettencourt, and addressed topics related to the AV Edge contract. Rich Gallego inquired about the status of the investigation into Councilmember Loa and requested updates on the search for a new City Manager. Roger Soderstedt discussed the missing trash can from Arnie Quinones Park. Jason Zink discussed various topics , including street sweeping , parking citations, and the significance of the mayoral title . Marsha Furman spoke regarding public participation , sidewalk installations, and safe and sane fireworks. Rocio Castellanos promoted a holiday event hosted by LA Care in partnership with SALVA and Councilmember Alarcón, scheduled for December 19 at McAdam Park. Marcos Alvarez expressed concerns about the streetlight outage on 30th Street East and Avenue S and suggested community programs such as music and art schools to help reduce the high suicide rate on the Eastside of Palmdale. Michael Ross addressed issues related to street sweeping signage, parking concerns, and shared his views on civic responsibility.

11) COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE

AGENDA ITEMS

11.1) Council Reports

Councilmember Alarcón expressed support for attracting new businesses and 6 mortgage-paying jobs to Palmdale. She extended her appreciation to staff for their dedication to the community, thanked first responders and residents, and recognized Assemblyman Juan Carrillo. She also highlighted the upcoming LA Care event giveaway scheduled for December 19 and extended warm holiday wishes to all.

Councilmember Bishop participated in several events in November, including the Sam Yellen Phase II ribbon-cutting, the grand opening of Coach's Tavern, the AV Wall retirement ceremony, and a visit to the Together California site.

He reflected on the Council meetings held during the COVID -19 pandemic, including discussions on vaccine passports, acknowledging the PFC’s efforts in these initiatives . Additionally, he provided a brief update on the Avenue M project near Trader Joe’s.

Councilmember Ohlsen attended the Together California walkthrough, the Sam Yellen Phase II ribbon -cutting, and Assemblyman Carrillo futsal courts dedication. He commended the Parks and Recreation Department and Public Works for their diligent work. He also participated in the ribbon -cutting event for the new slide at DryTown and attended several Veterans Day activities, including the Veterans Day ceremony, Veterans Ball, and the AV Wall retirement event.

Mayor Pro Tem Bettencourt expressed gratitude to everyone present and extended holiday wishes. She acknowledged the contributions of her fellow Councilmembers and voiced her support for Councilmembers Ohlsen and Bishop in their new roles. She attended several events in November, including the National League of Cities Conference in Salt Lake City, and spoke about some of the projects discussed and her desire to bring programs to Palmdale, such as Age in Place and the Just Serve program.

Councilmember Alarcón recognized Mayor Pro Tem Bettencourt for her leadership role and decorum , and she thanked her for bringing everyone together.

Councilmember Bishop thanked Mayor Pro Tem Bettencourt for her professionalism, tenacity, and commitment to the city. He spoke of her dedication and her being the definition of service above self.

Mayor Pro Tem Bettencourt shared her strong belief in Palmdale, its residents, and city leadership, expressing her love for the community. She reported efforts to resolve the issue of a missing trash can at Arnie Quinones Park, discussed the ongoing City Manager search, and announced her intention to review the city’s General Plan. She provided updates on the AV Edge event and upcoming projects, addressed parking concerns related to street sweeping, and committed to finding a more convenient solution for residents. She also mentioned the out-of-service streetlight at 30th Street East and Avenue S, as well as the need for additional bus benches in Palmdale, requesting that Eugene Hernandez identify key locations.

Furthermore, she informed Jason Zink that they would be reviewing the flash 7 drives for AV Edge.

Councilmember Alarcón voiced support for increasing the number of bus benches and encouraged AV Edge to submit quarterly reports.

Councilmember Ohlsen reported attending the SAVES Thanksgiving giveaway and a turkey distribution event with SALVA. He thanked the community for coming together to support one another. Lastly , he thanked Mayor Pro Tem Bettencourt for stepping up and helping them all get through the year.

12) CLOSED SESSION

Public Comments: None.

City Attorney Severino confirmed that the item would be heard as listed.

12.1) CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Initiation of litigation: (1 case)
This closed session is being held pursuant to the authority of California Government Code Section 54956.9, paragraph (4) of subdivision (d).

13) ANNOUNCEMENT BY CITY ATTORNEY

Closed Session was held from 7:18 pm to 8:07 pm.

City Attorney Severino announced the following:

12.1 - There was no reportable action.

14) ADJOURNMENT.

Mayor Pro Tem Bettencourt adjourned the meeting at 8:09 pm to January 13, 2026, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.

PASSED, APPROVED, and ADOPTED this 13th day of January 2026.

______________________
Eric Ohlsen, Mayor

ATTEST:

_________________________
Rochelle Scott, City Clerk

CITY OF PALMDALE

DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT

M E M O R A N D U M

TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS

FROM: MEGAN TAGGART, DIRECTOR OF ECONOMIC AND COMMUNITY

DEVELOPMENT

SUBJECT: CONTINUANCE OF AGENDA ITEM 6.1 - ORDINANCE NO. 1665

DATE: JANUARY 13, 2026

In order to allow sufficient time for review of proposed Ordin ance No. 1665 prior to Council consideration, staff has requested that this item is continued to the February 3, 2026, City Council meeting.

City Council Staff Report

DATE: JANUARY 13, 2026

TO: HONORABLE MAYOR AND CITY COUNCIL

FROM: OFFICE OF THE CITY MANAGER

CITY CLERK DIVISION

DISTRICT: ALL

SUBJECT: REVIEW AND PROVIDE DIRECTION ON CHANGES TO EXISTING

COMMITTEE APPOINTMENTS

RECOMMENDATION

Staff recommend that the City Council:

1. Review and provide direction on changes to existing committee appointments.

BACKGROUND
City Council members currently represent the City on various local and regional committees, boards, and commissions to ensure the City is properly represented.

Appointments of Councilmembers and designated alternates require nomination and approval by a majority vote of the City Council. Councilmembers s erve on these committees at the discretion of the Council. If a Councilmember is no longer able to serve, a formal request for removal must be submitted. In such cases, if an alternate has been appointed, the alternate may assume the role on an interim bas is until the Council makes a new appointment.

DISCUSSION

Annually, the Council reviews current committee assignments to evaluate their interest in serving as the City’s representative on various local and regional boards. Based on this review, the Council decides whether to maintain existing assignments or make adjustments.

ANTELOPE VALLEY AIR QUALITY MANAGEMENT DISTRICT (AVAQMD)

Health and Safety Code Section 41310 st ates, “The AVAQMD shall be governed by a district board consisting of seven members as follows: (a) Two members of the City Council of the City of Lancaster appointed by the city council. (b) Two members of the City Council of the City of Palmdale appointe d by the City Council. (c) Two persons Report to Mayor and City Council
Re: Review and provide direction on changes to existing committee appointments January 13, 2026

appointed by the member of the Board of Supervisors of the County of Los Angeles who represent a majority of the population of the Antelope Valley District, one of whom may be that supervisor. (d) A public member who shall be appointed by the members appointed under subdivisions (a) to (c), inclusive.”

Meetings are held on the third Tuesday of each month at 10:00 am at the Lancaster District office, 43301 Division Street, Suite 206, Lancaster, CA.

Delegate: Mayor Pro Tem Bishop
Delegate: Councilmember Loa
Alternate: Councilmember Bettencourt

ANTELOPE VALLEY FAIRGROUNDS AUTHORITY

The Antelope Valley Fair Authority is a Joint Powers Agreement between the City of Lancaster and the 50 th District Agricultural Association . The Authority shall be administered by a Board of Directors consisting of eight members as follows : 1) One member shall be designated by the State Senator for the District in which the Antelope Valley Fairgrounds are loc ated, 2) One member shall be designated by the State Assemblymember for the District in which the Antelope Valley Fairgrounds are located, 3) Two members shall be designated by the Mayor of the City of Lancaster, with concurrence of the City Council, and 4) One member shall be a member of the Board of Directors of the Association , shall be designated by such Board and serve as a liaison between the Board for the Authority and the Board for the Association 5) One member shall be a member of the Board o f Directors of the F riends of the Antelope Valley Fair, Inc. and shall be designated by the Mayor of the City of Lancaster, 6) One member shall be designated by the Mayor of the City of Palmdale, with concurrence of the City Council, and 7) One member shall be designated by the Los Angeles County Supervisor of the District in which the Antelope Valley Fairgrounds are located.

Meetings are held on the 4th Thursday of each month at 1:30 p.m. at the Antelope Valley Fairgrounds, 2551 W. Avenue H, Suite 102, Lancaster, CA.

Delegate: Councilmember Loa

ANTELOPE VALLEY TRANSIT AUTHORITY (AVTA)

The AVTA is governed by a Joint Powers Agreement between the cities of Lancaster and Palmdale, and Los Angeles County. AVTA was established in 1992 after Antelope Valley residents expressed a strong desire for public transportation in the high desert. AVTA’s total service area covers 1,200 square miles and is bounded by the Kern County line to the north, the San Bernardino County line to the east, the Angeles National Forest to the south, and Interstate 5 to the west. The fixed -route service area covers approximately 100 square miles.

Report to Mayor and City Council
Re: Review and provide direction on changes to existing committee appointments January 13, 2026

Meetings are held on the fourth Tuesday of each month at 10:00 am at the AVTA office at 42210 6th Street West, Lancaster, CA.

Delegate: Councilmember Loa
Delegate: Mayor Ohlsen
Alternate: Councilmember Bettencourt
Alternate: Citizen Kathryn Mac Laren-Gomez

CALIFORNIA CONTRACT CITIES ASSOCIATION (CCCA)

The general purpose of the CCCA is to serve as a rallying point for cities contr acting for municipal services to ensure constituents receive the best service at the minimum cost.

Through municipal seminars, education, and the exchange of ideas and information, the association combines resources to influence policy decisions affecting member cities.

Meetings are held as needed at various locations determined by the CCCA.

Delegate: Mayor Pro Tem Bishop
Alternate: Mayor Ohlsen

CITY OF PALMDALE AUDIT COMMITTEE

The goal of the Audit Committee is to maintain the public’s confidence in the City’s financial functions, enhance the accessibility of the City’s financial matters to our citizens, and promote the City’s financial transparency. Under the Committee’s by-laws, it shall be comprised of five members : two councilmembers, the City Manager, the Finance Manager, and one public member. Committee members shall not receive compensation nor be eligible for reimbursement.

Meetings are held in the spring and fall of each year at a time to be determined in the Palmdale Council Chamber at 38300 Sierra Highway, Suite B, Palmdale, CA.

Delegate: Mayor Pro Tem Bishop
Delegate: Councilmember Bettencourt
Alternate: Councilmember Loa
Public Member: Cinthia Zelaya (Term expires June 2026)

CITY OF PALMDALE INVESTMENT OVERSIGHT COMMITTEE

The Investment Oversight Committee was created under the City’s Investment Policy and is comprised of the Mayor, one rotating Councilmember, the City Manager, the City Treasurer, and the City Attorney. Committee members serve without compensation and shall meet at least quarterly to determine general strategies and monitor results.

Meetings may be held concurrently with City Council meetings or as separate meetings.

Report to Mayor and City Council
Re: Review and provide direction on changes to existing committee appointments January 13, 2026

Member: Councilmember Loa (Must be Mayor per Investment Policy) Member: Mayor Ohlsen (Council rotates per Investment Policy)

ENHANCED INFRASTRUCTURE FINANCING DISTRICT (EIFD) PUBLIC FINANCING

AUTHORITY (PFA)

The City of Palmdale, in partnership with the County of Los Angeles, established an Enhanced Infrastructure Financing District (EIFD) in the boundaries of Palmdale and unincorporated Los Angeles County. The District’s purpose is to create a funding mechanism that can facilitate the construction of public infrastructure improvements in this area. The EIFD PFA membership is comprised of two Councilmembers, one public member selected by the Council, one member of the County, and a member of the public selected by the County. Members shall serve at the pleasure of their respective appointing legislative bodies.

Meetings are held as needed in the Palmdale Council Chamber at 38300 Sierra Highway, Suite B, Palmdale, CA.

Member: Mayor Pro Tem Bishop
Member: Councilmember Loa
Public Member: Laura Gordon

HIGH DESERT CORRIDOR JOINT POWERS AUTHORITY (HDC JPA)

The purpose of the HDC JPA is to enhance the quality of life for our communities by developing and maintaining public infrastructure and providing a var iety of municipal services that complement our natural resources and environment. Under the Joint Exercise of Powers Agreement, one member shall be the Fifth District Supervisor of Los Angeles County, and the alternate member shall be appointed by the Fift h District Supervisor.

Meetings are held as needed, and the location rotates between Los Angeles and San Bernardino counties. Occasionally, meetings are held in Palmdale and Victorville. The City’s appointments are to be ratified by the Authority.

Director: Mayor Ohlsen
Alternate: Councilmember Loa

CAL CITIES DESERT MOUNTAIN DIVISION (DMD)

Cal Cities’ policy-making process allows the issues facing California cities to be debated and the organization’s policy directions to be established. Member cities generally appoint a Councilmember as a delegate and an alternate.

Meetings are held quarterly on the last Friday of the month at 10:00 am in various cities.

Report to Mayor and City Council
Re: Review and provide direction on changes to existing committee appointments January 13, 2026

Delegate: Councilmember Bettencourt
Alternate: Mayor Pro Tem Bishop
Second Alternate: Councilmember Loa

LOS ANGELES COUNTY CITY SELECTION COMMITTEE

Members of the LA County City Selection Committee include the Mayor of each city within Los Angeles County. Each city appoints an elected official as a delegate to the City Selection Committee; it usually is the Mayor. The term of office for each Member of the LA County City Selection Committee coincides with City Mayor terms. Their duties are to appoint City representatives to such Boards, Commissions and Agencies as may be required by law, i.e., LAFCO, South Coast Air Quality Management District, Los Angeles County Metropolitan Transportation Authority; and to nominate for appointment Members to the California Coastal Commission.

Nominations for the City Selection Committee appointees to the MTA are made by the Sector Subcommittees for the Sectors whose representatives’ terms are expiring. The cities assigned to one o f the four regions in Los Angeles County (North County/San Fernando Valley, San Gabriel Valley, Southeast Long Beach and Southwest Corridor) shall meet as a Sector Subcommittee. Each candidate with a majority weighted vote will then be nominated from that Sector for consideration for appointment to the MTA.

Meetings are held three or four times a year.

Delegate: Councilmember Loa

LOS ANGELES COUNTY SANITATION DISTRICTS (NOS. 14 AND 20)

The Sanitation Districts are a public agency created under stat e law to manage wastewater and solid waste on a regional scale . They consist of 24 independent special districts serving about 5.6 million people in Los Angeles County. The service area covers approximately 850 square miles and encompasses 78 cities and unincorporated territory within the County. Health and Safety Code Section 4730 states, “The presiding officer of the governing body of each city, the whole or part of which is included in the sanitation district, is a member of the board , and an alternate director may act in the place of the presiding officer.” The Mayor is the presiding officer of the Palmdale City Council and, therefore, automatically serves as a delegate.

Meetings are held at 1:30 pm on the fourth Wednesday of each month at the Sanitation Districts office at 1955 Workman Mill Road in Whittier or a venue in the Antelope Valley.

District No. 14
Delegate: Councilmember Loa (Must be Mayor per H&S Code §4730) Alternate Director: Mayor Pro Tem Bishop

District No. 20
Report to Mayor and City Council
Re: Review and provide direction on changes to existing committee appointments January 13, 2026

Delegate: Councilmember Loa (Must be Mayor per H&S Code §4730) Second Director: Councilmember Bettencourt
Alternate Director: Mayor Pro Tem Bishop

NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION (NCTC)

The NCTC was assembled in 1995 to coordinate information and provide a forum for discussion on regional issues of mutual interest and concern among the cities of Lancaster, Palmdale, Santa Clarita, and the unincorporated areas of North Los Angeles County. NCTC Joint Powers Authority states, “The citi es of Lancaster, Palmdale, and Santa Clarita shall have three representatives each: A City Councilmember, a business or community organization representative appointed by the City Council, and a representative at large appointed by the City Council.”

Meetings are held as needed in rotating Palmdale, Lancaster, and Santa Clarita locations.

Delegate: Mayor Pro Tem Bishop
Alternate: Interim City Manager Mendez
Business Rep: Mayor Ohlsen
At-Large Rep: Councilmember Loa

PALMDALE RECYCLED WATER AUTHORITY (PRWA)

The PRWA was established in 2012 through a Joint Exercise of Powers Agreement between the City of Palmdale and the Palmdale Water District (PWD) to jointly study, promote, develop, distribute, construct, install, finance, use and manage recycled water resources created by the Los Angeles County Sanitation Districts Nos. 14 and 20 for any and all reasonable and beneficial uses, including irrigation and recharge, and to finance the acquisition and construction or installation of recycled wa ter facilities, recharge facilities, and irrigation systems.

The First Amendment to the Joint Exercise of Powers Agreement provides for a five - member Authority Board wherein each entity appoints two members from their respective governing boards to serve on the Authority Board and jointly appoint the “Fifth Director” (Public Member Director). The City and PWD appoint the Fifth Director (and Authority Board ratifies the appointment. Under the PRWA, an alternate may be appointed.

Meetings are held on the third Monday of the month at 6:00 pm in the Palmdale Council Chamber, 38300 Sierra Highway, Suite B, Palmdale, CA.

Director: Mayor Pro Tem Bishop
Director: Councilmember Bettencourt
Alternate: Councilmember Loa
Public Member: Joe Pallon – Term expires January 2026. (The Directors are designated by the City Council and ratified by the TPAA pursuant to the TPAA by-laws.)

Report to Mayor and City Council
Re: Review and provide direction on changes to existing committee appointments January 13, 2026

PALMDALE TOURISM IMPROVEMENT DISTRICT (PTID)

The City and local hoteliers developed the PTID to promote Palmdale ’s tourism and tourism business environment through the development and operation of the PTID. The Board consists of seven Directors; four representatives from the hotels that pay into the TID assessment; one City Councilmember, one City staff, and one publi c member, who may be a representative of a non-lodging hospitality or tourism sector in the City. The City Councilmember, staff person, and public members are appointed by the Council.

Directors serve a three-year term and receive no compensation or reimbursement.

Meetings are held bi-annually and rotate locations between hotels.

Director: Mayor Pro Tem Bishop

SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG) GENERAL

ASSEMBLY

The SCAG General Assembly approves the bylaws, ratifies election of officers, and SCAG’s budget. The General Assembly Delegate Representative has the opportunity to propose any policy matter for determination by the General Assembly in the form of a proposed Resolution or revisions to the SCAG Bylaws. All proposed resolutions and/or bylaw revisions will be reviewed by SCAG’s Bylaws and Resolutions Committee and the Regional Council before being considered at the General Assembly business meeting.

Delegate: Councilmember Loa
Alternate: Mayor Pro Tem Bishop

SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG) REGIONAL COUNCIL DISTRICT 43

The Regional Council has general authority to conduct the affairs of SCAG and implements the policy direction provided at the annual General Assembly of the membership. In addition, the Regional Council acts upon policy recommendations from SCAG policy com mittees and external agencies; appoints committees to study specific problems and programs; amends, decreases, or increases the proposed budget to be reported to the General Assembly; and directs the actions of the agency throughout the year.

The delegate of SCAG Council District 43 is a two-year term to expire in January 2027.

Delegate: Mayor Pro Tem Bishop

PALMDALE SISTER CITY ASSOCIATION

President Eisenhower initiated the United States/Mexico Sister City Program in 1956. The program works to develop one -on-one community relations with cities in other countries Report to Mayor and City Council
Re: Review and provide direction on changes to existing committee appointments January 13, 2026

so that people can cross national boundaries, get to know each other personally and form mutual respect and understanding of other cultures. City officials and the Palmdale Sister City Association members exchange visits to each city to foster the Sister City Program relationship. The Council may appoint as many representatives as desired.

Palmdale Sister City Association meetings are held on the second and fourth Wednesdays of each month at 6:00 pm at Legacy Commons, 930 E Avenue Q -9, Palmdale, CA.

Delegate: Mayor Pro Tem Bishop
Delegate: Councilmember Loa
Alternate: Councilmember Bettencourt
Alternate: Mayor Ohlsen

CALIFORNIA STATE PRISON – LOS ANGELES COUNTY, CITIZENS ADVISORY

COMMITTEE

The primary objective of the Citizen’s Advisory Committee is to promote communication between the institution and the community. This includes building goodwill and support, allaying community fears, and increasing public awareness and support by receiving and sharing information about the prison and the Department’s policies, regulations, and programs.

Meetings are held quarterly in the Warden’s Conference Room at the prison.

Delegate: Councilmember Bettencourt
Alternate: Councilmember Loa

AUTO MALL AD HOC COMMITTEE

The general purpose of the Ad Hoc Committee is to collaborate with all stakeholders to ensure City actions create positive outcomes and opportunities that ben efit the entire community.

Meetings are held as needed.

Delegate: Mayor Pro Tem Bishop
Delegate: Mayor Ohlsen

Report to Mayor and City Council
Re: Review and provide direction on changes to existing committee appointments January 13, 2026

CITY MANAGER SELECTION AD HOC SUBCOMMITTEE

The committee’s role is to provide guidance and input to staff during the City Manager recruitment process. Final hiring decisions will still be made by the full Council. The committee will be dissolved once the recruitment and appointment of a new City Manager is complete.

Meetings are held as needed.

Delegate: Mayor Pro Tem Bishop
Delegate: Councilmember Bettencourt

LITTLEROCK DAM RECREATIONAL PROJECT AD HOC SUBCOMMITTEE

This Ad Hoc Committee will review and provide recommendations pertaining to the Littlerock Dam Recreation Project in conjunction with the Palmdale Water District.

Delegate: Mayor Ohlsen
Delegate: Councilmember Loa

FISCAL IMPACT

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

STRATEGIC PLAN

Goal I: Maintain adequate public safety and protection for life, property, and the environment.

D. Strengthen regional, state, and national partnerships to enhance our legislative presence.

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

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

Prepared by: Rochelle Scott, City Clerk
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

CITY OF PALMDALE

OFFICE OF THE CITY COUNCIL

M E M O R A N D U M

TO: City Clerk

FROM: Austin Bishop, Mayor Pro Tem

SUBJECT: Monthly Informational Report – Events and Meetings

DATE: January 13, 2026

During the period December 1 through December 31, 2025, I attended the following meetings and events:

Dec. 1 Briefing re: Agenda Items
Dec. 1 DryTown Groundbreaking
Dec. 2 Tree Lighting Ceremony
Dec. 2 Regular Council Meeting
Dec. 4 City of Palmdale Staff Holiday Party
Dec. 6 AV Chambers Christmas Parade Lancaster Blvd.

Dec. 6 Jolly Holiday at Palmdale Amphitheater
Dec. 6 San Fernando Coffee Company Grand Opening
Dec. 6 Pines and Presents Tree Lighting Ceremony at Auto Mall Dec. 11 LA County Sanitation Districts 14 and 20 Board of Directors Meeting Dec. 16 AVAQMD Board of Directors Meeting
Dec. 17 AV EDGE Holiday Brunch
Dec. 18 Harley Davidson Grand Opening
Dec. 18 Alberts Burrito and Taco Grand Opening
Dec. 19 SAVES Holiday Toy Giveaway
Dec. 20 AVTA Holiday Drive Thru Grocery & Toy Giveaway Dec. 22 Santa’s Workshop of Wishes sponsored by Build-A-Bear Dec.22 AV Brickhouse Bricks Women’s Football League Recognition

CITY OF PALMDALE

OFFICE OF THE CITY COUNCIL

M E M O R A N D U M

TO: City Clerk

FROM: Laura Bettencourt, Councilmember

SUBJECT: Monthly Informational Report – Events and Meetings

DATE: January 13, 2026

During the period December 1 through December 31, 2025, I attended the following meetings and events:

Dec. 1 Briefing re: Agenda Items
Dec. 1 DryTown Groundbreaking
Dec. 2 Tree Lighting Ceremony
Dec. 2 Regular Council Meeting
Dec. 4 City of Palmdale Staff Holiday Party
Dec. 6 Jolly Holiday at Palmdale Amphitheater
Dec. 11 LA County Sanitation Districts 14 and 20 Board of Directors Meeting Dec. 12 1st Annual Toy Giveaway presented by Asm. Carrillo Dec, 12 Holiday Movie Night at Poncitlán Square
Dec. 13 Palmdale School District Sparkling Season Parade Dec. 16 AVAQMD Board of Directors Meeting
Dec. 17 AV Veterans Community Action Coalition Breakfast Dec. 17 AV EDGE Holiday Brunch
Dec. 22 Santa’s Workshop of Wishes sponsored by Build-A-Bear Dec.22 AV Brickhouse Bricks Women’s Football League Recognition Dec. 23 True Memories Car Club Charities Toy Giveaway

CITY OF PALMDALE

OFFICE OF THE CITY COUNCIL

M E M O R A N D U M

TO: City Clerk

FROM: Eric Ohlsen, Mayor

SUBJECT: Monthly Informational Report – Events and Meetings

DATE: January 13, 2026

During the period December 1 through December 31, 2025, I attended the following meetings and events:

Dec. 1 Briefing re: Agenda Items
Dec. 1 DryTown Groundbreaking
Dec. 2 Tree Lighting Ceremony
Dec. 2 Regular Council Meeting
Dec. 4 City of Palmdale Staff Holiday Party
Dec. 6 AV Chambers Christmas Parade Lancaster Blvd.

Dec. 6 Jolly Holiday at Palmdale Amphitheater
Dec. 9 APWA Southern California Chapter BEST Award Luncheon Dec. 10 Meeting with Director of AVUHSD Adult Education Dec. 11 High Desert Mental Health Services Grand Opening Dec. 12 1st Annual Toy Giveaway presented by Asm. Carrillo Dec, 12 Holiday Movie Night at Poncitlán Square
Dec. 13 Palmdale School District Sparking Season Parade Dec. 17 AV EDGE Holiday Brunch
Dec. 18 Harley-Davidson Grand Opening
Dec. 18 Alberts Burrito and Taco Grand Opening
Dec. 19 SAVES Holiday Toy Giveaway
Dec. 20 AVTA Holiday Drive Thru Grocery & Toy Giveaway Dec. 22 Santa’s Workshop of Wishes sponsored by Build-A-Bear

CITY OF PALMDALE

OFFICE OF THE CITY COUNCIL

M E M O R A N D U M

TO: City Clerk

FROM: Richard Loa, Councilmember

SUBJECT: Monthly Informational Report – Events and Meetings

DATE: January 13, 2026

During the period December 1 through December 31, 2025, I attended the following meetings and events:

Dec. 1 Briefing re: Agenda Items
Dec. 2 Tree Lighting Ceremony
Dec. 2 Regular Council Meeting
Dec. 3 Sheriff’s Booster Christmas Party & Deputy of the Year Dec. 4 Rancho Vista Golf Course Christmas Tree Lighting Dec. 6 AV Chambers Christmas Parade Lancaster Blvd.

Dec. 12 LA County Executive Committee for Regional Homeless Alignment Dec. 13 Palmdale School District Sparkling Season Parade Dec. 17 AV EDGE Holiday Brunch
Dec. 19 SAVES Holiday Toy Giveaway
Dec. 20 AVTA Holiday Drive Thru Grocery & Toy Giveaway