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,
Public Hearings, Appointments, New Business, and Closed Session items. To address
CITY COUNCIL
SUCCESSOR AGENCY
CITY COUNCIL CHAMBER
38300 SIERRA HIGHWAY
SUITE B
PALMDALE, CA 93550
TUESDAY, FEBRUARY
3, 2026
5:00 PM
www.cityofpalmdaleca.gov
WELCOME
City Council
Tuesday, February
3, 2026
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 Commendation to Roxanne Faber and Linda Willis in honor of their retirement from the City of Palmdale.
4.2 Planning / Building & Safety Divisions Update
PPT Planning and B&S Divisions Update 2026.pdf
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 and Quarterly Investment Activity Reports for December 2025.
City Council
Tuesday, February
3, 2026
SR Monthly Investment Reports December 2025.docx
Rpt. Monthly and Quarterly Reports December 2025.pdf
5.3 Adopt Resolution No. CC 2026-004, a Resolution of the City Council of the City of Palmdale, dissolving the Palmdale Civic Authority.
SR Reso. No. CC 2026-004.docx
Reso. No. CC 2026-004.docx
5.4 Receive and file the City Manager Recruitment Update.
SR City Manager Recruitment.docx
5.5 Approve Agreement with Onward Engineering for Construction Management and Observation Services for PN 869-A, Arterial Road Rehabilitation at Palmdale Boulevard Project, for a total not to exceed amount of $267 ,174
for a term of 150
working days from the date of the Notice to Proceed.
SR Agrmt No. A-9641 with Onward Engineering.docx
Agrmt No. A-9641 with Onward Engineering.pdf
5.6 Approve Agreement with Maestro Development, LLC, for Construction Management and Observation Services for PN 851, Melville J. Courson Park Revitalization Project for a total not to exceed amount of $456,500 for a term of 360 working days commencing from the date of the Notice to Proceed.
SR Agrmt No. A-9642 with Maestro Development, LLC.docx
Agrmt No. A-9642 with Maestro Development, LLC.pdf
5.7 Approve Agreement with Pacific Advanced Civil Engineering, Inc., for Professional Services for PN 788, Regional Basin Infrastructure Project, for a total not to exceed amount of $1,508,304 for a term of 36 months from the date of the Notice to Proceed.
SR Agrmt No. A-9657 with Pacific Advanced Civil Engineering, Inc.docx
Agrmt No. A-9657 with Pacific Advanced Civil Engineering, Inc.pdf
Project Map.pdf
5.8 Approve the minutes from the previous meeting.
Mins 01 13 2026.pdf
6. PUBLIC HEARING - Now is the time for public participation. Each public hearing will have its own public testimony.
6.1 Receive and file the Fiscal Year 2025-26 Annual Employee Vacancy Report in accordance with Assembly Bill 2561.
SR FY 2025-26 Annual Employee Vacancy Report.docx
7. CITY MANAGER’S REPORT
City Council
Tuesday, February
3, 2026
8. NON-AGENDA PUBLIC COMMENTS
-
Now is the time for public participation.
9. COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE AGENDA ITEMS
10. CITY ATTORNEY'S REPORT
10.1 Legislative and litigation update regarding Federal Immigration Enforcement.
SR Litigation and Legislation update.docx
LASD Policy Update 20250711.pdf
LASD SB 627 20251217.pdf
11. CLOSED SESSION - Now is the time for public participation.
PRESENTATION BY CITY ATTORNEY
11.1 PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: City Attorney
This closed session is being held pursuant to the authority of California Government Code Section 54957.
11.2 CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Initiation of litigation: (2 cases)
This closed session is being held pursuant to the authority of California Government Code Section 54956.9, paragraph (4) of subdivision (d).
11.3 PUBLIC EMPLOYMENT
Title: City Manager Recruitment
This closed session is being held pursuant to the authority of California Government Code Section 54957.
11.4 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. ANNOUNCEMENT BY CITY ATTORNEY
13. ADJOURN
meeting to February 17, 2026, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
City Council
Tuesday, February
3, 2026
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ECONOMIC AND COMMUNITY DEVELOPMENT
DEPARTMENT
PLANNING / BUILDING & SAFETY DIVISIONS UPDATE
City Council Meeting
February 3, 2026
PLANNING DIVISION
Roles and Responsibilities
PROCESS PLANNING
AND BUSINESS
LICENSE
APPLICATIONS
ENVIRONMENTAL
REVIEW
PLAN REVIEW
DEVELOPMENT
ADVISORY BOARD
MEETINGS
PLANNING COMMISSION
Planning Division
Statistics 2025
Inquiry Type No.
Calls 9,081
Counter Visits 2,167
Emails 11,722
Application Type No.
New Business License 1,862
Business License Renewal 7,288
New Business Permits 59
Business Permit Renewal 157
Statistics Continued
Application Type No. Received / Square Feet
Total Applications 577
Pre-Applications 33
Zone Clearance 269
SFR under review 2,386 lots and 128 units
SFR entitled 260 units
Multi-Family under review 1,204 units
Multi-Family entitled 795 units
Commercial under review 106,170 square feet
Commercial entitled 199,915 square feet
Industrial under review 2,387,530 million square feet
Industrial entitled 3,512,487 square feet
EIRs under review 2 and 1 certified
Environmental Documents under review 20 and 12 adopted
Single Family Residential Development
• 3 Projects Approved
• 10 Projects Under Review
Multi-family Residential Development
• 9 Projects Under Review
• 5 Projects Approved
Commercial Development
• 4 Projects Under Review
• 6 Projects Approved
Industrial Development
• 8 Project Under Review
• 8 Projects Approved
Contact Information
Planning Division: 661/267-5200
[email protected]
Business License: 661/267-5434
[email protected]
BUILDING AND SAFETY DIVISION
Roles and Responsibilities
PROCESS BUILDING
PERMIT
APPLICATIONS AND
PAYMENTS
PLAN REVIEW BUILDING
INSPECTIONS
PARTICIPATE IN
DEVELOPMENT
ADVISORY BOARD
MEETINGS
COORDINATE WITH
DEVELOPERS AND
ASSIST CUSTOMERS
OVER THE COUNTER
MAINTAIN COMPLIANCE
WITH FEDERAL AND STATE
LEGISLATION
Building and Safety
Statistics 2025
Applications Processed Plan Reviews Inspections Performed 6,382 10,315 17,961
Total Valuation (all permitted projects) $134,004,220
Building and Safety Development Guide
Finalized and published the City’s comprehensive
Development Guide, consolidating development
requirements, submittal standards, and permitting
steps into a single accessible resource to:
• Streamline the process
• Enhance efficiency
• Providing essential resources
• Providing Fee Examples
Adopted 2025 California Building Code
• Ensured local regulations align with
statewide code requirements
• Implemented amendments to the
PMC to allow for permit extensions up
to 36 months
• These changes reduce unnecessary
reapplications and resubmittals,
preserve completed City reviews, and
streamline the path to permitting for
projects
Permit Navigation Aid Updates
Commercial Projects Section Online
Navigation Aid on the City’s Website:
• New Construction
• Additions & Tenant Improvements
• Cell Sites
• EV Chargers
• Industrial Waste
COMPLETED PROJECTS
Juniper Valley Townhomes
25th St East / Avenue Q
Mister Car Wash
18th St East / Palmdale Blvd
COMING IN 2026
Knights Inn Project Homekey Conversion
Division Street / Palmdale Blvd.
Saguaro Large Family Affordable Housing
15th St East / Avenue Q
Zenith on 25th Multifamily Affordable Housing Project
25th St East / Avenue Q
Bana at Palmdale Mixed Use Development
9th St E and Avenue Q
Together California
30th St East / Avenue R
Round One Bowling & Arcade
Antelope Valley Mall
City Council Staff Report
DATE: FEBRUARY 3, 2026
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: OPERATIONS DEPARTMENT
FINANCE DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE MONTHLY AND QUARTERLY
INVESTMENT ACTIVITY REPORTS FOR DECEMBER 2025
RECOMMENDATION
Staff recommend that the City Council:
1. Receive and file the December 2025 monthly and quarterly investment activity reports for the City of Palmdale and Successor Agency.
BACKGROUND
Pursuant to Section 16 of the City and Successor Agency Investment Policy, the City Treasurer shall prepare and present monthly and quarterly 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 and quarterly investment report s provide a synopsis of the City and Successor Agency’s investment activity. They provide information on assets, allocations, average maturities, yields, and book valuations. The interest rates presented are the most current rates available as of the date of this report.
The market values prese nted for pooled City and Successor Agency investments are based on closing prices for the related investment as of the date of this report. This information was obtained from the Wall Street Journal, Bloomberg Financial Markets, Capital Market Finances, or other reliable sources of market prices.
Report to Mayor and City Council
Re: Monthly and Quarterly Investment Reports December 2025 February 3, 2026
DISCUSSION
Compliance with Investment Policy
For December, the City’s invested portfolio totaled $304,112,309, an increase of $9,337,049 from the previous month and $8,332,493 decrease from prior year. The monthly increase was due to a transfer of excess funds from property taxes from General Fund to the Local Agency Investment Fund (LAIF).
As of December, the par value of the Successor Agency’s portfolio was $8,935,771.
This represents a decrease of $340,672 from the previous month, resulting from the required transfer of ROPS funds to the General Fund for ERAF and SERAF obligations.
All investments meet criteria appropriate to Section 8 of the Investment Policy. The portfolios are based on a combination of various investments, including CDs, Corporate Notes, US Treasury Securities, and Government Agency Paper, each adhering to portfolio percentage limitations.
The Finance Division is the custodian for the City and Successor Agency’s investment portfolio and follows the three main principles of both entities’ investment policies: 1) Investment in financial instruments that mitigate the risk of monetary losses stemming from market fluctuations; 2) Establish and maintain a portfolio that has sufficient liquidity to allow the City and Successor Agency to meet all anticipated cash requirements; and, 3) Seek out investment instruments that provide a competitive market rate of return.
Liquidity
One core approach the Finance Division focuses on is providing liquidity to meet the City and Successor Agency’s operationa l requirements. Thus, the City invests in two pooled funds, the Local Agency Investment Fund ( LAIF) and the California Asset Management Program (CAMP). These are intended for daily operational activities and can be used during economic uncertaintie s for ongoing operating and maintenance needs. The pooled funds provide a higher liquidity ratio, ensuring the City and Successor Agency meet their cash flow requirements.
The City’s LAIF balance at the end of December was $115,815,128, an increase of $12,000,000 due to the transfer of funds from the General Fund to LAIF.
The Successor Agency’s LAIF balance at the end of December was $3,985,613, no changes from the prior month.
The City’s CAMP balance at the end of December was $ 54,090,7455 compared to $53,910,080 in November. The increase is due to interest earned.
Report to Mayor and City Council
Re: Monthly and Quarterly Investment Reports December 2025 February 3, 2026
The interest rates presented are the most current rates available as of the date of this report. As of December 31, 2025, the interest rates for LAIF and CAMP investments were 4.025 percent and 3.95 percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of November were 4.096 percent and 4.10 percent. This time last year, LAIF and CAMP rates were at 4.434 percent and 4.73, respectively.
The chart above shows the LAIF and CAMP average monthly yields from March 2025 through December 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 and quarterly reports include all investments held by both entities and current book values as of December 31, 2025.
The City and Successor Agency are expected to have sufficient funds to meet their expenditure requirements for the next six months. The Finance Division will continue to monitor current economic conditions and the impact on interest rates.
Attached are summaries of the investments in the City and Successor Agency’s books as of December 31, 2025.
4.31% 4.28% 4.27% 4.27% 4.26% 4.25% 4.21% 4.15% 4.10%
4.03%
4.47% 4.45% 4.42% 4.40% 4.41% 4.40% 4.36%
4.26%
4.10%
3.95%
3.60%
3.70%
3.80%
3.90%
4.00%
4.10%
4.20%
4.30%
4.40%
4.50%
4.60%
Q3 Mar Apr May Q4 Jun July Aug Q1 Sep Oct Nov Dec
Pooled Investments Monthly Yields
LAIF CAMP
Report to Mayor and City Council
Re: Monthly and Quarterly Investment Reports December 2025 February 3, 2026
FISCAL IMPACT
$0; There is no fiscal impact associated with the recommended action for this report.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
B. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
C. Involve and expand engagement to enhance public oversight and transparency.
Prepared by: Janelle Samson, Director of Operations
Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Salvador Mendez, Interim City Manager
Approved as to form: Alexandra Severino, City Attorney
ATTACHMENTS
Rpt. Monthly and Quarterly Investment Reports December 2025
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
DECEMBER 31, 2025
PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED
DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT
U.S. TREASURY SECURITIES Yield
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 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 49,700,000.00$ 49,270,718.78$ 49,553,402.25$
GOVERNMENT AGENCY PAPER
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 63,230,000.00$ 61,597,434.03$ 62,281,912.94$
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 06-20-24 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 2,195,000.00$ 2,199,416.30$ 2,215,663.24$
CITY OF PALMDALE INVESTMENTS
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
DECEMBER 31, 2025
PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED
DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT
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 61,231,271.14 61,231,271.14 61,231,271.14 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 112,136,812.59$ 112,136,812.59$ 115,815,128.43$
CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM
6080-01 n/a CITY 6080-01 0.30 54,090,744.99 54,090,744.99 54,090,744.99 TOTAL CAMP ACCOUNTS 54,090,744.99$ 54,090,744.99$ 54,090,744.99$
UBS FINANCIAL SERVICES
n/a n/a CITY 0.00 8,593,112.91 8,593,112.91 8,593,112.91 TOTAL UBS FINANCIAL SERVICES ACCOUNTS 8,593,112.91$ 8,593,112.91$ 8,593,112.91$ TOTAL CITY INVESTMENTS 301,601,670.49$ 299,373,610.34$ 304,112,308.66$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
DECEMBER 31, 2025
PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED
DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
11-20-84 n/a LIBRARY 16-19-012 0.78 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 0.35 122.92
05-10-95 n/a IMPROVEMENT 95421222 0.10 178,632.72
TOTAL SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1 178,755.64$
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 14.17
04-06-95 n/a IMPV-ACQUI 95420884 0.01 2,973,349.35
04-06-95 n/a BOND 95420887 0.15 0.15
TOTAL RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1 2,973,363.67$
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 0.00 722,959.99
08-01-19 n/a SP TAX - REFNDING BOND 242969004 0.01 15,151.97 TOTAL ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1 738,205.54$
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 14,797.16
n/a RESERVE FUND 251009001 0.01 646,809.30
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021661,606.46$
LIBRARY INVESTMENTS
FISCAL AGENT CASH
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
DECEMBER 31, 2025
PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED
DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT
BOND PROCEEDS
2006-1 GODDE HILL ESTATE SEWER IMPROVEMENTS LOIB
Fiscal Agent: U.S. Bank National Association (fka First Trust) 11-08-06 n/a REDEMPTION FUND 106844000 0.01 29,664.75
11-08-06 n/a ADM EXP 106844002 0.01 1,838.16
11-08-06 n/a RESERVE FUND 106844003 0.01 87,079.24
TOTAL 2006-1 GODDE HILL ESTATE SEWER IMPROVEMENTS LOIB 118,582.15$ 2015 HA DEBT SERVICE RESERVE
Fiscal Agent: Bank of America
11-19-15 n/a DEBT SVC RESERVE 1257964992 0.08 41,103.25 TOTAL 2015 HA DEBT SERVICE RESERVE 41,103.25$
PARS RESTRICTED CASH FOR PENSION STABILIZATION TRUST FUND 05-23-18 n/a CITY 104790895775 Pub. Agency Retirement Svcs.2.60 12,404,669.77 TOTAL PARS PENSION TRUST FUND 12,404,669.77$
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 84,755.79
09-03-15 n/a INTEREST ACCT 277067001 0.01 14.01
09-03-15 n/a BOND RESERVE 277067003 0.00 281,016.16
09-03-15 n/a REPAIR & REPLACE FUND 277067004 0.00 1,435,073.00 1,435,073.57
TOTAL 2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS 3,235,932.53$
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 0.07
04-05-17 n/a REVENUE REFUNDING BOND 271128002 0.31
TOTAL 2017 PFA $17.4M LEASE REVENUE BONDS 0.88$
BOND PROCEEDS
2023 A&B SERIES ACQUISITION & CONSTRUCTION REVENUE BOND Fiscal Agent: U.S. Bank National Association (fka First Trust) 248041000 9.57
11-30-23 n/a INTEREST 248041001 452,094.16
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 -
11-30-23 n/a REVENUE FUND 248041008 4,800,421.09
TOTAL 2023 A&B SERIES B ACQUISITION & CONSTRUCTION REV BOND 5,252,538.87$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
DECEMBER 31, 2025
PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED
DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT
GRAND TOTAL - FISCAL AGENT CASH 25,604,758.76$
Cash on Hand 6,159,599$
Pooled Cash Investments
City: 301,154,965$
Insur Fund: 2,957,344$ 304,112,309$ Library Investments 14,080$
Subtotal 310,285,988$
City/AD/CFD/PCA/PFA/HA
Fiscal Agent Cash 25,604,759$
Grand total 335,890,747$
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 December, 2025
SUMMARY OF CASH AND INVESTMENTS
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
DECEMBER 31, 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$
12-31-25 12,000,000.00$
Subtotal 12,000,000.00$ -$ -$ 61,231,271.14$ 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 53,910,079.79$
12-31-25 180,665.20 $
Subtotal -$ -$ 180,665.20$ 54,090,744.99$ UBS Financial Services
Beginning Balance 304,963.72$
12-31-25 517,423.29 $
12-31-25 8,000,000.00$
12-31-25 (229,274.10)$
Subtotal 8,000,000.00$ (229,274.10)$ 517,423.29$ 8,593,112.91$ Total 20,000,000.00$ (229,274.10)$ 698,088.49$ 178,513,066.09$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
DECEMBER 31, 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)
-
9128285T3 U.S. Treasury Note 03-19-21 12-31-25 TN 8,000,000.00$ 105,000.00$ 8,105,000.00$ 7,937,600.00 62,400.00 3130AMRQ7 Federal Home Loan Note06-30-21 12-30-25 FP 3,000,000.00$ 13,125.00$ 3,013,125.00$ 2,949,049.86 50,950.14 229083AA8 Evangeline Bank & Trust06-18-24 12-18-25 CD 245,000.00$ 1,077.33$ 246,077.33$ 245,115.79 (115.79) -$ -
-$ -
11,245,000.00$ 119,202.33$ 11,364,202.33$ 11,131,765.65$ 113,234.35$ Total Number of Transactions:
POOLED CASH - INVESTMENTS MATURED OR CALLED
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
DECEMBER 31, 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 - -
- -
- -
- -
- -
- -
-$ -$ -$ -$ -$ 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
December 31, 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 2.54 529,321.86
08-20-02 n/a Interest Acct 94460701 0.04 21,683.04
08-20-02 n/a Principal Acct 94460702 0.04 81.96
TOTAL CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) 551,086.86$
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 4,950,158$ 4,940,820.26$
$0
Pooled Cash Investments 3,985,613$ $9,338
4,950,157.76$
Successor Agency Fiscal Agent Cash -$ *
Grand total 8,935,771$
* The interest rate quoted on LAIF and Fiscal Agent/Trustee accounts is the most current rate available.
LAIF interestrates are as of December 31, 2025.
S:\Cash and Investment\Investment\Investment Reports\25-26\06 Dec 2025\[DEC 2025 Successor Investment Report.xls]DEC 2025 Monthly
SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
December 31, 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$ Performance Profile
City of Palmdale
Palmdale, CA
December 2025
Stifel.com
Table of Contents
Performance Profile
Executive Summary
Portfolio Summary
Portfolio Overview 6
Historical Portfolio Overview 7
Portfolio Sector Summary 8
Total Portfolio 9
Market Timing Analysis 10
Market Economic Data
Market Economic Data 11
Sector Analysis
Treasury/Agency 16
Corporate 17
Certificate of Deposit 18
Other 19
Cashflow Analysis
Annual Base Case 22
Cash Flows By Sector - Next 30 Years 23
Annual Shocked 24
Monthly Base Case 25
Monthly Shocked 26
Yield Forecaster 27
Gap Analysis 28
Expected Call Report 29
Supplemental Analysis
Agency Call Analysis 32
MBS and CMO Collateral Composition 33
Corporate Credit Ratings : (S & P) 34
Corporate Credit Ratings : (Moody's) 35
Key Portfolio Sorts 36
CUSIP Details
Treasury/Agency 40
CUSIP Details - Corporate 41
CUSIP Details - Certificate of Deposit 42
CUSIP Details - Other 43
Scenario Yield and Price Analysis
Treasury/Agency 46
Corporate 47
CD 48
Other 49
Addendum
Portfolio Exceptions 52
Disclaimer and Notes 53
Key Terms 54
Bill Blackwill, Managing Director
[email protected]
Chad Smith, Managing Director
[email protected]
3 of 55
As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Executive Summary
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Portfolio Snapshot
Executive Summary
Book Value 288,785,800
# Securities 57
Average Size (Book) 5,066,418
Yield @ Book Price 4.37
Internal Rate of Return 4.89
Yield @ Book Price +100bps 4.34
Yield @ Book Price -100bps 4.46
Market Yield 3.82
$ Gain Loss 1,831,090
% Gain Loss 0.6%
Average Life 0.7
Average Life +300bps 0.9
% Price Change +100bps -0.7
% Price Change +300bps -2.2
Effective Duration 0.6
Effective Convexity -0.1
AFS / HTM % 100% / 0%
Fixed / Floating 100% / 0%
ESG / Green Par (000's) $500 / $500
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Executive Summary
Historical Portfolio Overview
12/31/2025 09/30/2025
Book Value 288,785,800 300,695,871
Yield @ Book Price 4.37 3.54
Yield @ Book Price (+100) 4.34 3.52
Yield @ Book Price (+300) 4.34 3.52
Yield @ Book Price (-100) 4.46 3.97
WAL 0.7 0.7
WAL (+100) 0.9 1.0
WAL (+300) 0.9 1.1
WAL (-100) 0.6 0.7
% Price Change (+100) -0.7% -0.8%
% Price Change (+300) -2.2% -2.4%
% Price Change (-100) 0.6% 0.7%
Effective Duration 0.6 0.7
Effective Convexity -0.1 -0.1
$ Gain/Loss 1,831,090 826,088
% Gain/Loss 0.6% 0.3%
$ Gain/Loss (+300) -4,663,745 -6,558,308
Principal Cash Flow 2 yrs out 91% 91%
Principal Cash Flow 2 yrs out (+100) 83% 83%
Principal Cash Flow 2 yrs out (+300) 80% 79%
Principal Cash Flow 2 yrs out (-100) 91% 91%
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Executive Summary
Portfolio Sector Summary
Portfolio Par Book Yld @ Market % Price Change Gain/(Loss) Effective AFS Sector Curr Par % Value Cpn Maturity Value Book Value Yield -100 +100 +300 $ % WAL Dur Cvx % Treasury (12) 17.1% 49,700,000 3.46 2.1 49,270,990 4.79 49,788,918 3.63 2.0 -1.9 -5.6 517,928 1.1% 2.1 2.0 0.1 100% Callable Agency (17) 21.0% 61,230,000 3.05 2.1 59,602,351 5.70 60,789,735 3.74 0.7 -1.2 -4.5 1,187,384 2.0% 0.8 0.9 -0.4 100% Treasury/Agency (29) 38.1% 110,930,000 3.24 2.1 108,873,341 5.32 110,578,653 3.69 1.3 -1.5 -5.0 1,705,312 1.6% 1.4 1.4 -0.2 100% Finance (12) 2.3% 6,656,000 3.84 1.9 6,551,335 7.32 6,680,351 4.02 1.5 -1.5 -4.5 129,016 2.0% 1.7 1.5 0.0 100% Industrial (4) 1.2% 3,500,000 3.86 0.4 3,510,600 -5.71 3,491,485 3.93 0.4 -0.4 -1.2 (19,115) -0.5% 0.4 0.4 0.0 100% Services (1) 0.3% 1,000,000 2.00 4.4 914,200 4.17 912,071 4.22 4.2 -4.0 -11.5 (2,129) -0.2% 4.4 4.1 0.2 100% Utility (1) 0.2% 500,000 4.95 2.6 509,350 4.17 512,107 3.94 2.4 -2.4 -7.0 2,757 0.5% 2.5 2.4 0.1 100% Corporate (18) 4.0% 11,656,000 3.74 1.7 11,485,485 2.76 11,596,013 4.01 1.4 -1.4 -4.2 110,529 1.0% 1.6 1.4 0.0 100% NCD (9) 0.8% 2,195,000 4.87 1.2 2,199,417 4.49 2,214,666 3.85 0.9 -0.9 -3.0 15,249 0.7% 1.2 0.9 0.0 100% CD (9) 0.8% 2,195,000 4.87 1.2 2,199,417 4.49 2,214,666 3.85 0.9 -0.9 -3.0 15,249 0.7% 1.2 0.9 0.0 100% Cash & Other (1) 57.1% 166,227,558 3.93 0.1 166,227,558 3.90 166,227,558 3.90 0.1 -0.1 -0.3 0 0.0% 0.1 0.1 0.0 100% Other (1) 57.1% 166,227,558 3.93 0.1 166,227,558 3.90 166,227,558 3.90 0.1 -0.1 -0.3 0 0.0% 0.1 0.1 0.0 100% Total (57) 100.0% 291,008,558 3.66 0.9 288,785,800 4.37 290,616,890 3.82 0.6 -0.7 -2.2 1,831,090 0.6% 0.7 0.6 -0.1 100% 8 of 55 City of Palmdale - Palmdale, CA : Executive Summary > Portfolio Summary As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Portfolio Analysis - Interest Rate Shock
Executive Summary
Total Portfolio
-400 -300 -200 -100 Base +100 +200 +300 +400
Number Bonds 57 57 57 57 57 57 57 57 57
Current Face 291,008,558 291,008,558 291,008,558 291,008,558 291,008,558 291,008,558 291,008,558 291,008,558 291,008,558 Book Value 288,785,800 288,785,800 288,785,800 288,785,800 288,785,800 288,785,800 288,785,800 288,785,800 288,785,800 Book Price 99.24 99.24 99.24 99.24 99.24 99.24 99.24 99.24 99.24 Projected Yield At Book Price 4.07% 4.07% 4.37% 4.46% 4.37% 4.34% 4.34% 4.34% 4.34% Market Value 296,979,746 295,826,820 294,122,151 292,385,314 290,616,890 288,628,098 286,405,708 284,122,056 281,865,996 Market Price 102.05 101.66 101.07 100.47 99.87 99.18 98.42 97.63 96.86 Market Yield -0.06% 0.81% 1.80% 2.81% 3.82% 4.83% 5.81% 6.81% 7.82% % Price Change 2.2% 1.8% 1.2% 0.6% 0.0% -0.7% -1.4% -2.2% -3.0% Book Gain/Loss 8,193,946 7,041,020 5,336,351 3,599,513 1,831,090 -157,703 -2,380,092 -4,663,745 -6,919,804 Gain/Loss % 2.8% 2.4% 1.8% 1.2% 0.6% -0.1% -0.8% -1.6% -2.4% Average Life 0.5 0.5 0.6 0.6 0.7 0.9 0.9 0.9 0.9
Effective Duration 0.3 0.5 0.6 0.6 0.6 0.7 0.8 0.8 0.8
Effective Convexity -0.2 -0.2 0.0 0.0 -0.1 -0.1 0.0 0.0 0.0 ¹Stifel Portfolio Median refers to the median portfolio value for other institutions analyzed by Stifel within the past three months. 9 of 55 City of Palmdale - Palmdale, CA : Executive Summary > Portfolio Summary As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Market Timing Analysis
Executive Summary
The highest quartile is composed of the seven quarters over the past seven years in which rates were the highest, the second quartile is the next seven highest quarters, and so on. 5 Year Treasury Average: 2.61% / Median 2.72%
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Key Market Rates
Executive Summary
11 of 55 City of Palmdale - Palmdale, CA : Executive Summary > Market Economic Data > Market Economic Data As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Executive Summary
Key Economic Data
12 of 55 City of Palmdale - Palmdale, CA : Executive Summary > Market Economic Data > Market Economic Data As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Executive Summary
Key Market Rates
13 of 55 City of Palmdale - Palmdale, CA : Executive Summary > Market Economic Data > Market Economic Data As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Sector Analysis
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Treasury/Agency Sector Portfolio
Sector Analysis
-400 -300 -200 -100 Base +100 +200 +300 +400
Number Bonds 29 29 29 29 29 29 29 29 29
Current Face 110,930,000 110,930,000 110,930,000 110,930,000 110,930,000 110,930,000 110,930,000 110,930,000 110,930,000 Book Value 108,873,341 108,873,341 108,873,341 108,873,341 108,873,341 108,873,341 108,873,341 108,873,341 108,873,341 Book Price 98.15 98.15 98.15 98.15 98.15 98.15 98.15 98.15 98.15 Proj. Yld. At Book Px. 4.63% 4.63% 5.44% 5.64% 5.32% 5.25% 5.25% 5.25% 5.25% Market Value 115,685,877 114,791,112 113,424,151 112,018,810 110,578,653 108,914,922 107,014,847 105,048,681 103,104,593 Market Price 104.29 103.48 102.25 100.98 99.68 98.18 96.47 94.70 92.95 Market Yield -0.16% 0.67% 1.65% 2.65% 3.69% 4.69% 5.61% 6.59% 7.59% % Price Change 4.6% 3.8% 2.6% 1.3% 0.0% -1.5% -3.2% -5.0% -6.8% Book Gain/Loss 6,812,536 5,917,771 4,550,810 3,145,469 1,705,312 41,581 -1,858,494 -3,824,660 -5,768,748 Gain/Loss % 6.26% 5.44% 4.18% 2.89% 1.57% 0.04% -1.71% -3.51% -5.30% Average Life 1.1 1.1 1.3 1.3 1.4 1.9 2.1 2.1 2.1
Effective Duration 0.6 0.9 1.2 1.3 1.4 1.6 1.8 1.9 1.9
Effective Convexity -0.3 -0.4 0.0 0.0 -0.2 -0.2 -0.1 0.0 0.0 ¹ Risk - Sector px. vol. +300 as % of total port. px. vol ² Yield - Sector yield as a % of total port. yield.
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Corporate Sector Portfolio
Sector Analysis
-400 -300 -200 -100 Base +100 +200 +300 +400
Number Bonds 18 18 18 18 18 18 18 18 18
Current Face 11,656,000 11,656,000 11,656,000 11,656,000 11,656,000 11,656,000 11,656,000 11,656,000 11,656,000 Book Value 11,485,485 11,485,485 11,485,485 11,485,485 11,485,485 11,485,485 11,485,485 11,485,485 11,485,485 Book Price 98.54 98.54 98.54 98.54 98.54 98.54 98.54 98.54 98.54 Proj. Yld. At Book Px. 2.16% 2.16% 2.16% 2.16% 2.76% 2.53% 2.43% 2.43% 2.43% Market Value 12,225,064 12,109,312 11,934,011 11,763,896 11,596,013 11,431,034 11,269,864 11,113,494 10,962,019 Market Price 104.88 103.89 102.39 100.93 99.49 98.07 96.69 95.35 94.05 Market Yield 0.25% 1.00% 2.00% 3.02% 4.01% 5.02% 6.04% 7.06% 8.08% % Price Change 5.4% 4.4% 2.9% 1.4% 0.0% -1.4% -2.8% -4.2% -5.5% Book Gain/Loss 739,579 623,827 448,526 278,411 110,529 -54,451 -215,620 -371,991 -523,466 Gain/Loss % 6.44% 5.43% 3.91% 2.42% 0.96% -0.47% -1.88% -3.24% -4.56% Average Life 1.5 1.5 1.5 1.5 1.6 1.6 1.6 1.6 1.6
Effective Duration 0.7 1.2 1.4 1.4 1.4 1.4 1.4 1.4 1.4
Effective Convexity -0.5 -0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ¹ Risk - Sector px. vol. +300 as % of total port. px. vol ² Yield - Sector yield as a % of total port. yield.
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CD Sector Portfolio
Sector Analysis
-400 -300 -200 -100 Base +100 +200 +300 +400
Number Bonds 9 9 9 9 9 9 9 9 9
Current Face 2,195,000 2,195,000 2,195,000 2,195,000 2,195,000 2,195,000 2,195,000 2,195,000 2,195,000 Book Value 2,199,418 2,199,418 2,199,418 2,199,418 2,199,418 2,199,418 2,199,418 2,199,418 2,199,418 Book Price 100.20 100.20 100.20 100.20 100.20 100.20 100.20 100.20 100.20 Proj. Yld. At Book Px. 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% 4.49% Market Value 2,293,859 2,278,448 2,256,670 2,235,419 2,214,666 2,193,716 2,171,371 2,148,556 2,125,863 Market Price 104.50 103.80 102.81 101.84 100.90 99.94 98.92 97.88 96.85 Market Yield 0.37% 1.09% 2.01% 2.93% 3.85% 4.78% 5.75% 6.74% 7.74% % Price Change 3.6% 2.9% 1.9% 0.9% 0.0% -0.9% -2.0% -3.0% -4.0% Book Gain/Loss 94,443 79,032 57,254 36,002 15,249 -5,700 -28,046 -50,860 -73,554 Gain/Loss % 4.29% 3.59% 2.60% 1.64% 0.69% -0.26% -1.28% -2.31% -3.34% Average Life 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.2
Effective Duration 0.5 0.8 0.9 0.9 0.9 1.0 1.1 1.1 1.1
Effective Convexity -0.3 -0.3 0.0 0.0 0.0 -0.1 0.0 0.0 0.0 ¹ Risk - Sector px. vol. +300 as % of total port. px. vol ² Yield - Sector yield as a % of total port. yield.
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Other Sector Portfolio
Sector Analysis
-400 -300 -200 -100 Base +100 +200 +300 +400
Number Bonds 1 1 1 1 1 1 1 1 1
Current Face 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 Book Value 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 166,227,558 Book Price 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Proj. Yld. At Book Px. 3.90% 3.90% 3.90% 3.90% 3.90% 3.90% 3.90% 3.90% 3.90% Market Value 166,774,945 166,647,947 166,507,319 166,367,189 166,227,558 166,088,426 165,949,626 165,811,324 165,673,522 Market Price 100.33 100.25 100.17 100.08 100.00 99.92 99.83 99.75 99.67 Market Yield -0.02% 0.88% 1.88% 2.89% 3.90% 4.91% 5.92% 6.94% 7.96% % Price Change 0.3% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% -0.3% -0.3% Book Gain/Loss 547,387 420,389 279,761 139,631 0 -139,132 -277,932 -416,234 -554,036 Gain/Loss % 0.33% 0.25% 0.17% 0.08% 0.00% -0.08% -0.17% -0.25% -0.33% Average Life 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Duration 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Convexity 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ¹ Risk - Sector px. vol. +300 as % of total port. px. vol ² Yield - Sector yield as a % of total port. yield.
19 of 55 City of Palmdale - Palmdale, CA : Sector Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Cashflow Analysis
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Annual Base
Cash Flow Analysis
Annual Cash Flows by Sector (Base)
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ≥2036 Treasury/Agency 63,600,000 25,500,000 0 18,000,000 3,830,000 0 0 0 0 0 0 MBS Fixed 0 0 0 0 0 0 0 0 0 0 0
ARM 0 0 0 0 0 0 0 0 0 0 0
CMO Fixed 0 0 0 0 0 0 0 0 0 0 0
CMO Floating 0 0 0 0 0 0 0 0 0 0 0
Agency CMBS 0 0 0 0 0 0 0 0 0 0 0
Small Business 0 0 0 0 0 0 0 0 0 0 0
Private Label 0 0 0 0 0 0 0 0 0 0 0
Municipal 0 0 0 0 0 0 0 0 0 0 0
Corporate 5,500,000 1,500,000 2,156,000 1,500,000 1,000,000 0 0 0 0 0 0 CD 1,465,000 240,000 245,000 245,000 0 0 0 0 0 0 0
Other 166,227,558 0 0 0 0 0 0 0 0 0 0
Total 236,792,558 27,240,000 2,401,000 19,745,000 4,830,000 0 0 0 0 0 0 % of Total Portfolio 81.4% 9.4% 0.8% 6.8% 1.7% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Annual Cash Flows by Sector (Base)
22 of 55 City of Palmdale - Palmdale, CA : Cashflow Analysis > Annual Base Case As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Cash Flows By Sector - Next 30 Years
Cash Flow Analysis
Base Scenario
23 of 55 City of Palmdale - Palmdale, CA : Cashflow Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Annual Shocked
Cash Flow Analysis
Change in Shocked Annual Portfolio Cash Flows from Base 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ≥ 2036 Down 400 15,830,000 (14,500,000) (500,000) 0 (830,000) 0 0 0 0 0 0 Down 300 15,830,000 (14,500,000) (500,000) 0 (830,000) 0 0 0 0 0 0 Down 200 10,830,000 (9,500,000) (500,000) 0 (830,000) 0 0 0 0 0 0 Down 100 5,830,000 (4,500,000) (500,000) 0 (830,000) 0 0 0 0 0 0 Up 100 (19,400,000) (2,000,000) 9,400,000 7,000,000 5,000,000 0 0 0 0 0 0 Up 200 (28,400,000) (2,000,000) 17,400,000 8,000,000 5,000,000 0 0 0 0 0 0 Up 300 (28,400,000) (2,000,000) 17,400,000 8,000,000 5,000,000 0 0 0 0 0 0 Up 400 (28,400,000) (2,000,000) 17,400,000 8,000,000 5,000,000 0 0 0 0 0 0 Shocked Annual Portfolio Cash Flows
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ≥ 2036 Down 400 252,622,558 12,740,000 1,901,000 19,745,000 4,000,000 0 0 0 0 0 0 Down 300 252,622,558 12,740,000 1,901,000 19,745,000 4,000,000 0 0 0 0 0 0 Down 200 247,622,558 17,740,000 1,901,000 19,745,000 4,000,000 0 0 0 0 0 0 Down 100 242,622,558 22,740,000 1,901,000 19,745,000 4,000,000 0 0 0 0 0 0 Base 236,792,558 27,240,000 2,401,000 19,745,000 4,830,000 0 0 0 0 0 0 Up 100 217,392,558 25,240,000 11,801,000 26,745,000 9,830,000 0 0 0 0 0 0 Up 200 208,392,558 25,240,000 19,801,000 27,745,000 9,830,000 0 0 0 0 0 0 Up 300 208,392,558 25,240,000 19,801,000 27,745,000 9,830,000 0 0 0 0 0 0 Up 400 208,392,558 25,240,000 19,801,000 27,745,000 9,830,000 0 0 0 0 0 0 Shocked Annual Portfolio Cash Flows
24 of 55 City of Palmdale - Palmdale, CA : Cashflow Analysis > Annual Shocked As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Monthly Base
Cash Flow Analysis
Monthly Cash Flows by Sector (Base)
Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Total % of Total Portfolio
Treasury/Agency 0 13,000,000 3,200,000 7,000,000 5,000,000 5,000,000 3,000,000 9,000,000 0 5,000,000 0 13,400,000 63,600,000 21.9% MBS Fixed 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
ARM 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
CMO Fixed 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
CMO Floating 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Agency CMBS 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Small Business 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Private Label 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Municipal 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Corporate 2,000,000 0 2,500,000 0 0 500,000 500,000 0 0 0 0 0 5,500,000 1.9% CD 0 0 0 0 0 1,465,000 0 0 0 0 0 0 1,465,000 0.5%
Other 166,227,55
8 0 0 0 0 0 0 0 0 0 0 0 166,227,558 57.1%
Total 168,227,55
8 13,000,000 5,700,000 7,000,000 5,000,000 6,965,000 3,500,000 9,000,000 0 5,000,000 0 13,400,000 236,792,558 81.4% % of Total Portfolio 57.8% 4.5% 2.0% 2.4% 1.7% 2.4% 1.2% 3.1% 0.0% 1.7% 0.0% 4.6% 81.4% Monthly Cash Flows by Sector (Base)
25 of 55 City of Palmdale - Palmdale, CA : Cashflow Analysis > Monthly Base Case As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Monthly Shocked
Cash Flow Analysis
Shocked Monthly Portfolio Cash Flows (Year 1)
Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Total Down 400 188,227,558 27,000,000 5,200,000 3,000,000 5,000,000 6,465,000 3,500,000 5,000,000 1,400,000 0 830,000 7,000,000 252,622,558 Down 300 183,227,558 27,000,000 5,200,000 8,000,000 5,000,000 6,465,000 3,500,000 5,000,000 1,400,000 0 830,000 7,000,000 252,622,558 Down 200 174,227,558 22,000,000 5,200,000 7,000,000 5,000,000 6,465,000 3,500,000 5,000,000 1,400,000 5,000,000 830,000 12,000,000 247,622,558 Down 100 174,227,558 17,000,000 5,200,000 7,000,000 5,000,000 6,465,000 3,500,000 5,000,000 1,400,000 5,000,000 830,000 12,000,000 242,622,558 Base 168,227,558 13,000,000 5,700,000 7,000,000 5,000,000 6,965,000 3,500,000 9,000,000 0 5,000,000 0 13,400,000 236,792,558 Up 100 168,227,558 8,000,000 5,200,000 4,500,000 5,000,000 6,965,000 3,500,000 0 0 5,000,000 0 11,000,000 217,392,558 Up 200 168,227,558 8,000,000 5,200,000 4,000,000 0 7,465,000 500,000 0 0 5,000,000 0 10,000,000 208,392,558 Up 300 168,227,558 8,000,000 5,200,000 4,000,000 0 7,465,000 500,000 0 0 5,000,000 0 10,000,000 208,392,558 Up 400 168,227,558 8,000,000 5,200,000 4,000,000 0 7,465,000 500,000 0 0 5,000,000 0 10,000,000 208,392,558 Change in Monthly Cash Flows from Base (Year 1)
Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Total Down 400 20,000,000 14,000,000 (500,000) (4,000,000) 0 (500,000) 0 (4,000,000) 1,400,000 (5,000,000) 830,000 (6,400,000) 15,830,000 Down 300 15,000,000 14,000,000 (500,000) 1,000,000 0 (500,000) 0 (4,000,000) 1,400,000 (5,000,000) 830,000 (6,400,000) 15,830,000 Down 200 6,000,000 9,000,000 (500,000) 0 0 (500,000) 0 (4,000,000) 1,400,000 0 830,000 (1,400,000) 10,830,000 Down 100 6,000,000 4,000,000 (500,000) 0 0 (500,000) 0 (4,000,000) 1,400,000 0 830,000 (1,400,000) 5,830,000 Up 100 0 (5,000,000) (500,000) (2,500,000) 0 0 0 (9,000,000) 0 0 0 (2,400,000) (19,400,000) Up 200 0 (5,000,000) (500,000) (3,000,000) (5,000,000) 500,000 (3,000,000) (9,000,000) 0 0 0 (3,400,000) (28,400,000) Up 300 0 (5,000,000) (500,000) (3,000,000) (5,000,000) 500,000 (3,000,000) (9,000,000) 0 0 0 (3,400,000) (28,400,000) Up 400 0 (5,000,000) (500,000) (3,000,000) (5,000,000) 500,000 (3,000,000) (9,000,000) 0 0 0 (3,400,000) (28,400,000) Shocked Monthly Portfolio Cash Flows (Year 2)
Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27 Jul-27 Aug-27 Sep-27 Oct-27 Nov-27 Dec-27 Total Down 400 500,000 0 0 500,000 0 5,000,000 3,500,000 0 2,500,000 0 0 740,000 12,740,000 Down 300 500,000 0 0 500,000 0 5,000,000 3,500,000 0 2,500,000 0 0 740,000 12,740,000 Down 200 500,000 5,000,000 0 500,000 0 5,000,000 3,500,000 0 2,500,000 0 0 740,000 17,740,000 Down 100 500,000 10,000,000 0 500,000 0 5,000,000 3,500,000 0 2,500,000 0 0 740,000 22,740,000 Base 0 10,000,000 0 5,500,000 0 5,000,000 4,000,000 0 2,500,000 0 0 240,000 27,240,000 Up 100 0 10,000,000 0 5,500,000 0 5,000,000 1,000,000 0 2,500,000 0 0 1,240,000 25,240,000 Up 200 0 10,000,000 0 5,500,000 0 5,000,000 1,000,000 0 2,500,000 0 0 1,240,000 25,240,000 Up 300 0 10,000,000 0 5,500,000 0 5,000,000 1,000,000 0 2,500,000 0 0 1,240,000 25,240,000 Up 400 0 10,000,000 0 5,500,000 0 5,000,000 1,000,000 0 2,500,000 0 0 1,240,000 25,240,000 Change in Monthly Cash Flows from Base (Year 2)
Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27 Jul-27 Aug-27 Sep-27 Oct-27 Nov-27 Dec-27 Total Down 400 500,000 (10,000,000) 0 (5,000,000) 0 0 (500,000) 0 0 0 0 500,000 (14,500,000) Down 300 500,000 (10,000,000) 0 (5,000,000) 0 0 (500,000) 0 0 0 0 500,000 (14,500,000) Down 200 500,000 (5,000,000) 0 (5,000,000) 0 0 (500,000) 0 0 0 0 500,000 (9,500,000) Down 100 500,000 0 0 (5,000,000) 0 0 (500,000) 0 0 0 0 500,000 (4,500,000) Up 100 0 0 0 0 0 0 (3,000,000) 0 0 0 0 1,000,000 (2,000,000) Up 200 0 0 0 0 0 0 (3,000,000) 0 0 0 0 1,000,000 (2,000,000) Up 300 0 0 0 0 0 0 (3,000,000) 0 0 0 0 1,000,000 (2,000,000) Up 400 0 0 0 0 0 0 (3,000,000) 0 0 0 0 1,000,000 (2,000,000) 26 of 55 City of Palmdale - Palmdale, CA : Cashflow Analysis > Monthly Shocked As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Yield Forecaster
Cash Flow Analysis
Down 100 (3.22% Assumed Reinvestment Rate)¹
Principal Cash
Flow
Cuml. Pay
Down
Rolloff
Yield
Rem. Port.
Yield
Reinvest
Port. Yield
174,227,558 59.4% 3.64 5.21 4.06
17,000,000 65.2% 6.70 4.94 3.85
5,200,000 67.0% 0.36 5.17 3.90
7,000,000 69.4% 1.96 5.42 3.93
5,000,000 71.1% 5.15 5.44 3.89
6,465,000 73.3% 4.13 5.55 3.87
3,500,000 74.5% 5.31 5.56 3.85
5,000,000 76.2% 4.09 5.66 3.83
1,400,000 76.7% 3.58 5.70 3.83
5,000,000 78.4% 12.96 5.13 3.66
830,000 78.6% 3.50 5.15 3.66
12,000,000 82.7% 4.59 5.26 3.60
500,000 82.9% 7.66 5.24 3.59
10,000,000 86.3% 10.21 4.00 3.35
0 86.3% 0.00 4.00 3.35
500,000 86.5% 7.65 3.95 3.35
0 86.5% 0.00 3.95 3.35
5,000,000 88.2% 4.68 3.85 3.32
3,500,000 89.4% 4.55 3.77 3.31
0 89.4% 0.00 3.77 3.31
2,500,000 90.2% 3.55 3.79 3.30
0 90.2% 0.00 3.79 3.30
0 90.2% 0.00 3.79 3.30
740,000 90.5% 5.31 3.75 3.30
0 90.5% 0.00 3.75 3.30
656,000 90.7% 4.00 3.74 3.30
0 90.7% 0.00 3.74 3.30
0 90.7% 0.00 3.74 3.30
0 90.7% 0.00 3.74 3.30
245,000 90.8% 5.06 3.73 3.29
500,000 91.0% 4.17 3.72 3.29
500,000 91.1% 5.07 3.69 3.29
0 91.1% 0.00 3.69 3.29
0 91.1% 0.00 3.69 3.29
0 91.1% 0.00 3.69 3.29
0 91.1% 0.00 3.69 3.29
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
Jul-26
Aug-26
Sep-26
Oct-26
Nov-26
Dec-26
Jan-27
Feb-27
Mar-27
Apr-27
May-27
Jun-27
Jul-27
Aug-27
Sep-27
Oct-27
Nov-27
Dec-27
Jan-28
Feb-28
Mar-28
Apr-28
May-28
Jun-28
Jul-28
Aug-28
Sep-28
Oct-28
Nov-28
Dec-28
Base Case (4.22% Assumed Reinvestment Rate)¹
Principal Cash
Flow
Cuml. Pay
Down
Rolloff
Yield
Rem. Port.
Yield
Reinvest
Port. Yield
168,227,558 57.4% 3.77 4.98 4.58
13,000,000 61.8% 4.01 5.09 4.59
5,700,000 63.7% 1.18 5.29 4.64
7,000,000 66.1% 1.96 5.52 4.70
5,000,000 67.8% 5.15 5.54 4.68
6,965,000 70.2% 4.55 5.62 4.67
3,500,000 71.4% 5.31 5.63 4.66
9,000,000 74.5% 5.04 5.70 4.64
0 74.5% 0.00 5.70 4.64
5,000,000 76.2% 12.96 5.18 4.48
0 76.2% 0.00 5.18 4.48
13,400,000 80.7% 4.49 5.33 4.47
0 80.7% 0.00 5.33 4.47
10,000,000 84.2% 10.21 4.27 4.26
0 84.2% 0.00 4.27 4.26
5,500,000 86.0% 6.44 3.98 4.22
0 86.0% 0.00 3.98 4.22
5,000,000 87.7% 4.68 3.89 4.21
4,000,000 89.1% 4.84 3.76 4.20
0 89.1% 0.00 3.76 4.20
2,500,000 90.0% 3.55 3.78 4.21
0 90.0% 0.00 3.78 4.21
0 90.0% 0.00 3.78 4.21
240,000 90.0% 3.99 3.78 4.21
0 90.0% 0.00 3.78 4.21
656,000 90.3% 4.00 3.78 4.21
500,000 90.4% 5.66 3.74 4.21
0 90.4% 0.00 3.74 4.21
0 90.4% 0.00 3.74 4.21
245,000 90.5% 5.06 3.73 4.21
500,000 90.7% 4.17 3.72 4.21
0 90.7% 0.00 3.72 4.21
0 90.7% 0.00 3.72 4.21
0 90.7% 0.00 3.72 4.21
500,000 90.9% 4.96 3.70 4.21
0 90.9% 0.00 3.70 4.21
Up 100 (5.22% Assumed Reinvestment Rate)¹
Principal Cash
Flow
Cuml. Pay
Down
Rolloff
Yield
Rem. Port.
Yield
Reinvest
Port. Yield
168,227,558 57.4% 3.77 4.90 5.13
8,000,000 60.1% 3.76 4.97 5.16
5,200,000 61.9% -0.32 5.21 5.26
4,500,000 63.4% 1.46 5.37 5.32
5,000,000 65.1% 5.15 5.38 5.32
6,965,000 67.5% 4.55 5.44 5.33
3,500,000 68.7% 5.31 5.44 5.33
0 68.7% 0.00 5.44 5.33
0 68.7% 0.00 5.44 5.33
5,000,000 70.4% 12.96 5.01 5.20
0 70.4% 0.00 5.01 5.20
11,000,000 74.1% 4.62 5.05 5.22
0 74.1% 0.00 5.05 5.22
10,000,000 77.5% 10.21 4.27 5.05
0 77.5% 0.00 4.27 5.05
5,500,000 79.4% 6.44 4.07 5.02
0 79.4% 0.00 4.07 5.02
5,000,000 81.1% 4.68 4.02 5.03
1,000,000 81.5% 5.89 3.98 5.03
0 81.5% 0.00 3.98 5.03
2,500,000 82.3% 3.55 4.00 5.05
0 82.3% 0.00 4.00 5.05
0 82.3% 0.00 4.00 5.05
1,240,000 82.7% 4.25 4.00 5.05
0 82.7% 0.00 4.00 5.05
656,000 83.0% 4.00 4.00 5.05
500,000 83.1% 5.66 3.98 5.05
0 83.1% 0.00 3.98 5.05
0 83.1% 0.00 3.98 5.05
245,000 83.2% 5.06 3.98 5.05
0 83.2% 0.00 3.98 5.05
5,500,000 85.1% 4.11 3.96 5.07
1,400,000 85.6% 3.76 3.97 5.08
3,000,000 86.6% 4.25 3.94 5.09
500,000 86.8% 4.96 3.93 5.09
0 86.8% 0.00 3.93 5.09
¹ Base reinvestment set at 5 Year Treasury rate +50 basis points 27 of 55 City of Palmdale - Palmdale, CA : Cashflow Analysis > Yield Forecaster As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Gap Analysis - Potential Income Impact of Principal Reinvestment Cash Flow Analysis
Assumed Estimated Income Resulting
Reinvestment Annualized Difference From Book
Yield Income Current Book Yield
0.25 592 -8,893 1.32
0.50 1,184 -8,301 1.52
0.75 1,776 -7,709 1.73
1.00 2,368 -7,117 1.93
1.25 2,960 -6,525 2.13
1.50 3,552 -5,933 2.34
1.75 4,144 -5,341 2.54
2.00 4,736 -4,749 2.74
2.25 5,328 -4,157 2.95
2.50 5,920 -3,565 3.15
2.75 6,512 -2,973 3.35
3.00 7,104 -2,381 3.56
3.25 7,696 -1,789 3.76
3.50 8,288 -1,197 3.96
3.75 8,880 -605 4.17
4.00 9,472 -13 4.37
4.25 10,064 579 4.57
4.50 10,656 1,171 4.78
4.75 11,248 1,763 4.98
5.00 11,840 2,355 5.18
5.25 12,432 2,947 5.39
5.50 13,024 3,539 5.59
5.75 13,616 4,131 5.79
6.00 14,208 4,723 6.00
6.25 14,800 5,315 6.20
6.50 15,392 5,907 6.40
6.75 15,983 6,499 6.61
7.00 16,575 7,091 6.81
7.25 17,167 7,683 7.01
7.50 17,759 8,275 7.22
7.75 18,351 8,867 7.42
8.00 18,943 9,459 7.62
Principal Maturing (12 Mo Horizon) 236,793
Current Book Yield of Principal Maturing 4.01%
Estimated Annual Income at Current Book Yield $9,485
28 of 55 City of Palmdale - Palmdale, CA : Cashflow Analysis > Gap Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Projected Call and Maturity Report
Cash Flow Analysis
Book Yld @ Projected Call / Maturity Date
Description CUSIP Maturity
Next Call
Date Coupon
Current
Face Gain/Loss Book -400 -300 -200 -100 Base +100 +200 +300 +400 PG 4.1 01/26/26 742718FY0 1/26/26 4.10% 1,000,000 (18,373) -20.76% 1/26/26 1/26/26 1/26/26 1/26/26 1/26/26 1/26/26 1/26/26 1/26/26 1/26/26 RY 4.65 01/27/26 780082AD5 1/27/26 4.65% 500,000 3,046 13.28% 1/27/26 1/27/26 1/27/26 1/27/26 1/27/26 1/27/26 1/27/26 1/27/26 1/27/26 BK 0.75 01/28/26 06406RAQ0 1/28/26 1/15/26 0.75% 500,000 35,222 1/7/26 1/28/26 1/28/26 1/28/26 1/28/26 1/28/26 1/28/26 1/28/26 1/28/26 USTN 4 02/15/26 91282CGL9 2/15/26 4.00% 5,000,000 13,195 6.21% 2/15/26 2/15/26 2/15/26 2/15/26 2/15/26 2/15/26 2/15/26 2/15/26 2/15/26 FFCB 4.45 02/25/30 3133ETUN5 2/25/30 2/25/26 4.45% 5,000,000 5,050 4.42% 2/25/26 2/25/26 2/25/26 2/25/26 2/25/26 2/25/30 2/25/30 2/25/30 2/25/30 USTN 2.5 02/28/26 9128286F2 2/28/26 2.50% 3,000,000 (267,511) 2/28/26 2/28/26 2/28/26 2/28/26 2/28/26 2/28/26 2/28/26 2/28/26 2/28/26 XOM 3.043 03/01/26 30231GAT9 3/1/26 1/20/26 3.04% 1,000,000 16,405 14.21% 1/12/26 1/12/26 1/12/26 1/12/26 3/1/26 3/1/26 3/1/26 3/1/26 3/1/26 BN 4.25 06/02/26 11271LAA0 6/2/26 3/2/26 4.25% 500,000 10,615 16.64% 3/2/26 3/2/26 3/2/26 3/2/26 3/2/26 4/17/26 6/2/26 6/2/26 6/2/26 CL 4.8 03/02/26 194162AQ6 3/2/26 4.80% 1,000,000 (34,282) -15.03% 3/2/26 3/2/26 3/2/26 3/2/26 3/2/26 3/2/26 3/2/26 3/2/26 3/2/26 USTN 2.25 03/31/26 9128286L9 3/31/26 2.25% 3,200,000 159,810 3/31/26 3/31/26 3/31/26 3/31/26 3/31/26 3/31/26 3/31/26 3/31/26 3/31/26 FHLB 1.05 04/29/26 3130AN5C0 4/29/26 1/29/26 1.05% 4,000,000 (44,928) 0.26% 1/29/26 1/29/26 4/29/26 4/29/26 4/29/26 4/29/26 4/29/26 4/29/26 4/29/26 FHLB 4.25 10/30/28 3130B62E5 10/30/28 4/30/26 4.25% 3,000,000 3,720 4.23% 4/30/26 4/30/26 4/30/26 4/30/26 4/30/26 10/30/28 10/30/28 10/30/28 10/30/28 FFCB 5.17 05/01/28 3133ERCX7 5/1/28 5/1/26 5.17% 5,000,000 24,405 5.15% 5/1/26 5/1/26 5/1/26 5/1/26 5/1/26 5/1/26 5/1/28 5/1/28 5/1/28 GS 5.05 06/11/26 38150VUZ0 6/11/26 5.05% 245,000 1,383 5.01% 6/11/26 6/11/26 6/11/26 6/11/26 6/11/26 6/11/26 6/11/26 6/11/26 6/11/26 FOBRI 5.05 06/15/26 34520LBC6 6/15/26 5.05% 245,000 1,447 5.04% 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 USTN 4.125 06/15/26 91282CHH7 6/15/26 4.13% 5,000,000 11,281 4.04% 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 BMWG 4.65 06/15/26 05580A4Y7 6/15/26 4.65% 240,000 (2,628) 1.48% 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 JPM 3.2 06/15/26 46625HRS1 6/15/26 3/15/26 3.20% 500,000 13,886 10.17% 3/15/26 3/15/26 3/15/26 3/15/26 6/15/26 6/15/26 6/15/26 6/15/26 6/15/26 SBI 5.1 06/17/26 8562855V9 6/17/26 5.10% 245,000 1,520 5.09% 6/17/26 6/17/26 6/17/26 6/17/26 6/17/26 6/17/26 6/17/26 6/17/26 6/17/26 BAC 5.05 06/22/26 06051XER9 6/22/26 5.05% 245,000 1,517 5.03% 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 FRDOM 5.05 06/22/26 35634MAE1 6/22/26 5.05% 245,000 1,517 5.04% 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 6/22/26 FHLB 4.55 07/21/28 3130B4QA2 7/21/28 7/21/26 4.55% 3,000,000 14,691 4.55% 7/21/26 7/21/26 7/21/26 7/21/26 7/21/26 7/21/26 7/21/28 7/21/28 7/21/28 MS 3.125 07/27/26 61761J3R8 7/27/26 3.13% 500,000 16,305 10.04% 7/27/26 7/27/26 7/27/26 7/27/26 7/27/26 7/27/26 7/27/26 7/27/26 7/27/26 FNMA 4.1 08/10/28 3136GAGW3 8/10/28 8/10/26 4.10% 5,000,000 9,175 4.09% 8/10/26 8/10/26 8/10/26 8/10/26 8/10/26 8/10/28 8/10/28 8/10/28 8/10/28 FHLMC 4 08/14/29 3134HADY6 8/14/29 2/14/26 4.00% 4,000,000 47,308 6.25% 2/14/26 2/14/26 2/14/26 2/14/26 8/14/26 8/14/29 8/14/29 8/14/29 8/14/29 FHLMC 0.8 10/27/26 3134GW4C7 10/27/26 1/27/26 0.80% 5,000,000 345,245 12.96% 1/27/26 4/27/26 10/27/26 10/27/26 10/27/26 10/27/26 10/27/26 10/27/26 10/27/26 FFCB 4.32 12/02/27 3133ERE23 12/2/27 12/2/26 4.32% 1,000,000 6,206 4.32% 12/2/26 12/2/26 12/2/26 12/2/26 12/2/26 12/2/27 12/2/27 12/2/27 12/2/27 FHLB 4.5 12/04/29 3130B3XP3 12/4/29 12/4/26 4.50% 1,000,000 7,154 4.50% 12/4/26 12/4/26 12/4/26 12/4/26 12/4/26 12/4/26 12/4/29 12/4/29 12/4/29 FFCB 3.83 09/15/28 3133ETXV4 9/15/28 9/15/26 3.83% 1,400,000 (5,321) 3.65% 9/15/26 9/15/26 9/15/26 9/15/26 12/15/26 9/15/28 9/15/28 9/15/28 9/15/28 FFCB 1.29 12/22/26 3133ENJC5 12/22/26 1/16/26 1.29% 5,000,000 (111,285) 1.29% 1/7/26 1/7/26 12/22/26 12/22/26 12/22/26 12/22/26 12/22/26 12/22/26 12/22/26 USTN 1.75 12/31/26 912828YX2 12/31/26 1.75% 5,000,000 216,672 8.18% 12/31/26 12/31/26 12/31/26 12/31/26 12/31/26 12/31/26 12/31/26 12/31/26 12/31/26 Projected Call and Maturity Dates by Rate Scenario (Next 12 Months) 29 of 55 City of Palmdale - Palmdale, CA : Cashflow Analysis > Expected Call Report As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Supplemental Analysis
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Agency Sector Call Analysis
Sector Supplemental Analysis
Agency Structure -400 -300 -200 -100 Base +100 +200 +300 +400 Multi-Calls
Market Value 52,651,229 52,555,916 52,357,496 52,079,186 51,734,697 51,182,025 50,426,075 49,588,689 48,738,664 Projected Yield At Book Price 4.53% 4.53% 6.38% 6.71% 5.95% 5.82% 5.82% 5.82% 5.82% Average Life 0.2 0.2 0.5 0.6 0.8 1.6 1.9 1.9 1.9
Price Volatility 1.8% 1.6% 1.2% 0.7% 0.0% -1.1% -2.5% -4.1% -5.8% One-Time Callables
Market Value 9,388,767 9,327,269 9,238,418 9,150,428 9,055,038 8,907,156 8,690,940 8,456,333 8,224,213 Projected Yield At Book Price 4.27% 4.27% 4.27% 4.27% 4.27% 4.28% 4.28% 4.28% 4.28% Average Life 1.0 1.0 1.0 1.0 1.0 2.7 3.1 3.1 3.1
Price Volatility 3.7% 3.0% 2.0% 1.1% 0.0% -1.6% -4.0% -6.6% -9.2% 32 of 55 City of Palmdale - Palmdale, CA : Supplemental Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
MBS and CMO Collateral Analysis
Sector Supplemental Analysis
Fixed Rate MBS and CMO Allocation by Collateral Type
MBS
PORTF
OLIO
MBS Portfolio CMO Portfolio CMO and MBS Combined
FNMA/FHLMC GNMA FNMA/FHLMC GNMA FNMA/FHLMC GNMA
10YR 15YR 20YR 30YR Other 15YR 30YR Other 10YR 15YR 20YR 30YR Other 15YR 30YR Other 10YR 15YR 20YR 30YR Other 15YR 30YR Other <2.0%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
6.50%
7.0%+
33 of 55 City of Palmdale - Palmdale, CA : Supplemental Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Corporate Portfolio - Analytics by S&P Rating
Sector Supplemental Analysis
Projected Yield At Book Average Life % Change in Market Value Mkt % Market Value -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 +100 +200 +300 +400 AA- 17.2% 1,998,632 -20.76 (20.76
)
(20.76
) (3.59) (3.59) (3.59) (3.59) (3.59) 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.2 0.2 0.1 -0.1 -0.2 -0.4 -0.5 A+ 20.9% 2,423,283 -3.80 (3.80) (3.80) (3.80) (3.80) (3.80) (3.80) (3.80) 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 6.2 4.0 2.0 -1.9 -3.7 -5.4 -7.1 A 27.5% 3,188,135 6.71 6.71 6.71 5.12 5.12 5.12 5.12 5.12 2.0 2.0 2.0 2.1 2.1 2.1 2.1 2.1 6.0 3.9 1.9 -1.9 -3.7 -5.5 -7.2 A- 12.8% 1,485,756 7.91 7.91 7.91 7.51 7.51 7.51 7.51 7.51 1.2 1.2 1.2 1.3 1.3 1.3 1.3 1.3 3.6 2.4 1.2 -1.2 -2.5 -3.7 -4.9 Not Rated 21.6% 2,500,208 9.30 9.30 9.30 9.14 8.07 7.65 7.65 7.65 1.6 1.6 1.6 1.7 1.7 1.7 1.7 1.7 4.7 3.1 1.5 -1.5 -3.0 -4.5 -5.9 Total 100.0% 11,596,013 0.39 0.39 0.39 2.86 2.63 2.54 2.54 2.54 1.5 1.5 1.5 1.6 1.6 1.6 1.6 1.6 4.4 2.9 1.4 -1.4 -2.8 -4.2 -5.5 34 of 55 City of Palmdale - Palmdale, CA : Supplemental Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Corporate Portfolio - Analytics by Moody's Rating
Sector Supplemental Analysis
Projected Yield At Book Average Life % Change in Market Value Mkt % Market Value -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 +100 +200 +300 +400 Aa2 13.0% 1,508,399 4.87 4.87 4.87 11.06 11.06 11.06 11.06 11.06 0.5 0.5 0.5 0.6 0.6 0.6 0.6 0.6 1.7 1.1 0.6 -0.6 -1.2 -1.8 -2.4 Aa3 36.0% 4,178,738 -8.03 (8.03) (8.03) (8.03) (8.03) (8.03) (8.03) (8.03) 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3 3.7 2.4 1.2 -1.2 -2.3 -3.4 -4.4 A1 17.3% 2,005,050 9.50 9.50 9.50 7.29 7.30 7.30 7.30 7.30 1.5 1.5 1.5 1.6 1.6 1.6 1.6 1.6 4.5 3.0 1.5 -1.5 -3.0 -4.4 -5.9 A2 16.4% 1,900,322 5.53 5.53 5.53 5.22 5.22 5.22 5.22 5.22 2.9 2.9 2.9 3.0 3.0 3.0 3.0 3.0 8.7 5.7 2.8 -2.8 -5.4 -8.0 -10.5 A3 12.9% 1,495,830 12.58 12.58 12.58 12.35 10.55 9.84 9.84 9.84 0.5 0.5 0.5 0.6 0.6 0.7 0.7 0.7 1.5 1.0 0.5 -0.6 -1.2 -1.8 -2.4 Not Rated 4.4% 507,676 3.91 3.91 3.91 3.91 3.91 3.91 3.91 3.91 3.6 3.6 3.6 3.6 3.6 3.6 3.6 3.6 10.5 6.9 3.4 -3.2 -6.4 -9.4 -12.2 Total 100.0% 11,596,013 1.98 1.98 1.98 2.33 2.10 2.01 2.01 2.01 1.5 1.5 1.5 1.6 1.6 1.6 1.6 1.6 4.4 2.9 1.4 -1.4 -2.8 -4.2 -5.5 35 of 55 City of Palmdale - Palmdale, CA : Supplemental Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Key Portfolio Sorts
Sector Supplemental Analysis
Par Book Mkt Yld @ % Px Δ $ Amt Δ G/L Eff
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book WAL +300 +300 +300 Dur INT 91282CPA3 Treasury USTN 3.625 09/30/30 3.63 09/30/30 3,000,000 100.52 99.66 -25,913 3.50 4.7 -12.1 -360,921 -386,834 4.3 AFS 91324PDX7 Services UNH 2 05/15/30 2.00 05/15/30 1,000,000 91.42 91.21 -2,129 4.17 4.4 -11.5 -105,149 -107,278 4.1 AFS 91282CGB1 Treasury USTN 3.875 12/31/29 3.88 12/31/29 3,000,000 98.33 100.88 76,350 4.33 4.0 -10.4 -313,504 -237,154 3.7 AFS 3130B8BF8 Callable Agency FHLB 3.95 11/06/30 3.95 11/06/30 830,000 100.37 99.38 -8,234 3.86 4.8 -10.3 -84,912 -93,146 2.3 AFS 91282CFY2 Treasury USTN 3.875 11/30/29 3.88 11/30/29 5,000,000 98.84 100.85 100,578 4.20 3.9 -10.2 -512,951 -412,373 3.6 AFS 91282CFT3 Treasury USTN 4 10/31/29 4.00 10/31/29 5,000,000 99.77 101.34 78,297 4.06 3.8 -10.0 -505,003 -426,706 3.5 AFS 91282CFL0 Treasury USTN 3.875 09/30/29 3.88 09/30/29 5,000,000 99.54 100.88 66,750 4.00 3.7 -9.8 -493,960 -427,210 3.5 AFS 89236TMK8 Finance TOYOM 4.55 08/09/29 4.55 08/09/29 500,000 102.12 101.54 -2,924 3.91 3.6 -9.4 -47,499 -50,423 3.3 AFS 06406RBK2 Finance BK 4.596 07/26/30 4.60 07/26/30 1,000,000 102.20 101.53 -6,747 3.93 3.6 -9.3 -94,066 -100,813 3.3 AFS 89235MPP0 NCD TOYOM 4.65 06/13/29 4.65 06/13/29 245,000 100.00 103.11 7,618 4.65 3.4 -9.0 -22,759 -15,141 3.2 AFS
3.85 24,575,000 99.28 100.43 283,646 4.04 4.0 -10.3 -2,540,724 -2,257,078 3.6 Top 10 Up 300 Market Value Changes (%)
Top 10 Up 300 Market Value Changes ($)
Par Book Mkt Yld @ % Px Δ $ Amt Δ G/L Eff
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book WAL +300 +300 +300 Dur INT 91282CFY2 Treasury USTN 3.875 11/30/29 3.88 11/30/29 5,000,000 98.84 100.85 100,578 4.20 3.9 -10.2 -512,951 -412,373 3.6 AFS 91282CFT3 Treasury USTN 4 10/31/29 4.00 10/31/29 5,000,000 99.77 101.34 78,297 4.06 3.8 -10.0 -505,003 -426,706 3.5 AFS 91282CFL0 Treasury USTN 3.875 09/30/29 3.88 09/30/29 5,000,000 99.54 100.88 66,750 4.00 3.7 -9.8 -493,960 -427,210 3.5 AFS COPLAIF01 Cash & Other CASH 3.93 01/31/26 166,227,558 100.00 100.00 3.90 0.1 -0.3 -416,234 -416,234 0.1 AFS 91282CPA3 Treasury USTN 3.625 09/30/30 3.63 09/30/30 3,000,000 100.52 99.66 -25,913 3.50 4.7 -12.1 -360,921 -386,834 4.3 AFS 3133ETUN5 Callable Agency FFCB 4.45 02/25/30 4.45 02/25/30 5,000,000 100.00 100.10 5,050 4.42 0.2 -7.1 -353,802 -348,752 0.7 AFS 91282CGB1 Treasury USTN 3.875 12/31/29 3.88 12/31/29 3,000,000 98.33 100.88 76,350 4.33 4.0 -10.4 -313,504 -237,154 3.7 AFS 3134HADY6 Callable Agency FHLMC 4 08/14/29 4.00 08/14/29 4,000,000 98.65 99.83 47,308 6.25 0.6 -7.7 -306,522 -259,214 1.1 AFS 3136GAGW3 Callable Agency FNMA 4.1 08/10/28 4.10 08/10/28 5,000,000 100.00 100.18 9,175 4.09 0.6 -5.8 -289,656 -280,481 1.0 AFS 3130B4RC7 Callable Agency FHLB 4.5 07/27/29 4.50 07/27/29 3,000,000 100.00 101.29 38,709 4.50 1.6 -7.7 -232,771 -194,062 1.9 AFS
3.95 204,227,558 99.91 100.11 396,304 3.98 0.5 -1.9 -3,785,324 -3,389,019 0.5 36 of 55 City of Palmdale - Palmdale, CA : Supplemental Analysis > Key Portfolio Sorts As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Key Portfolio Sorts
Sector Supplemental Analysis
Par Book Mkt Yld @ % Px Δ $ Amt Δ G/L Eff
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book WAL +300 +300 +300 Dur INT 91282CFL0 Treasury USTN 3.875 09/30/29 3.88 09/30/29 5,000,000 99.54 100.88 66,750 4.00 3.7 -9.8 -493,960 -427,210 3.5 AFS 91282CFT3 Treasury USTN 4 10/31/29 4.00 10/31/29 5,000,000 99.77 101.34 78,297 4.06 3.8 -10.0 -505,003 -426,706 3.5 AFS COPLAIF01 Cash & Other CASH 3.93 01/31/26 166,227,558 100.00 100.00 3.90 0.1 -0.3 -416,234 -416,234 0.1 AFS 91282CFY2 Treasury USTN 3.875 11/30/29 3.88 11/30/29 5,000,000 98.84 100.85 100,578 4.20 3.9 -10.2 -512,951 -412,373 3.6 AFS 91282CPA3 Treasury USTN 3.625 09/30/30 3.63 09/30/30 3,000,000 100.52 99.66 -25,913 3.50 4.7 -12.1 -360,921 -386,834 4.3 AFS 3133ETUN5 Callable Agency FFCB 4.45 02/25/30 4.45 02/25/30 5,000,000 100.00 100.10 5,050 4.42 0.2 -7.1 -353,802 -348,752 0.7 AFS 9128286F2 Treasury USTN 2.5 02/28/26 2.50 02/28/26 3,000,000 108.71 99.79 -267,511 0.2 -0.5 -14,538 -282,049 0.2 AFS 3136GAGW3 Callable Agency FNMA 4.1 08/10/28 4.10 08/10/28 5,000,000 100.00 100.18 9,175 4.09 0.6 -5.8 -289,656 -280,481 1.0 AFS 3134HADY6 Callable Agency FHLMC 4 08/14/29 4.00 08/14/29 4,000,000 98.65 99.83 47,308 6.25 0.6 -7.7 -306,522 -259,214 1.1 AFS 3133ENJC5 Callable Agency FFCB 1.29 12/22/26 1.29 12/22/26 5,000,000 100.00 97.77 -111,285 1.29 1.0 -2.8 -137,373 -248,658 1.0 AFS
3.86 206,227,558 100.06 100.02 -97,550 3.91 0.5 -1.6 -3,390,959 -3,488,509 0.5 Top 10 Marked To Market Up 300 Loss Positions
Top 10 Average Life Extension Up 300bps
Par Book Mkt Yld @ % Px Δ Eff WAL Chg in
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book +300 Dur WAL +300 WAL INT 3133ETUN5 Callable Agency FFCB 4.45 02/25/30 4.45 02/25/30 5,000,000 100.00 100.10 5,050 4.42 -7.1 0.7 0.2 4.2 4.0 AFS 3130B3XP3 Callable Agency FHLB 4.5 12/04/29 4.50 12/04/29 1,000,000 100.00 100.72 7,154 4.50 -7.6 1.3 0.9 3.9 3.0 AFS 3134HADY6 Callable Agency FHLMC 4 08/14/29 4.00 08/14/29 4,000,000 98.65 99.83 47,308 6.25 -7.7 1.1 0.6 3.6 3.0 AFS 3130B62E5 Callable Agency FHLB 4.25 10/30/28 4.25 10/30/28 3,000,000 100.00 100.12 3,720 4.23 -5.7 0.8 0.3 2.8 2.5 AFS 3130B4QA2 Callable Agency FHLB 4.55 07/21/28 4.55 07/21/28 3,000,000 100.00 100.49 14,691 4.55 -4.8 0.7 0.6 2.6 2.0 AFS 3130B4RC7 Callable Agency FHLB 4.5 07/27/29 4.50 07/27/29 3,000,000 100.00 101.29 38,709 4.50 -7.7 1.9 1.6 3.6 2.0 AFS 3136GAGW3 Callable Agency FNMA 4.1 08/10/28 4.10 08/10/28 5,000,000 100.00 100.18 9,175 4.09 -5.8 1.0 0.6 2.6 2.0 AFS 3133ERCX7 Callable Agency FFCB 5.17 05/01/28 5.17 05/01/28 5,000,000 100.00 100.49 24,405 5.15 -3.2 0.4 0.3 2.3 2.0 AFS 3133ETXV4 Callable Agency FFCB 3.83 09/15/28 3.83 09/15/28 1,400,000 100.17 99.79 -5,321 3.65 -6.3 1.4 1.0 2.7 1.8 AFS 3133ERE23 Callable Agency FFCB 4.32 12/02/27 4.32 12/02/27 1,000,000 100.00 100.62 6,206 4.32 -4.4 1.1 0.9 1.9 1.0 AFS
4.42 31,400,000 99.84 100.32 151,097 4.68 -5.9 0.9 0.6 3.1 2.5 37 of 55 City of Palmdale - Palmdale, CA : Supplemental Analysis > Key Portfolio Sorts As of: 12/2025, Created: 1/9/2026 1:41:19 PM
CUSIP Details
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Security Details - Treasury/Agency Sector
CUSIP Details
Coupon % Price Change
CUSIP FAS Description Structure Current Type Rate Next Step Maturity Book
Price
Yld @
Book
Mkt
Price Gain/Loss G/L % Avg Life -100 +100 +300 Eff Dur
3130AL5A8 AFS FHLB 0.9 02/26/27 Callable 5,000,000 Fixed 0.900 2/26/27 89.58 10.75 96.94 367,860 8.2% 1.2 1.1 -1.1 -3.3 1.1 3130AN5C0 AFS FHLB 1.05 04/29/26 Callable 4,000,000Fixed 1.050 4/29/26 100.26 0.26 99.14 (44,928) -1.1% 0.3 0.3 -0.3 -1.0 0.3 3130AQRH8 AFS FHLB 2 02/25/27 Callable 5,000,000 Fixed 2.000 2/25/27 91.81 9.69 98.19 318,970 6.9% 1.2 1.1 -1.1 -3.3 1.1 3130ARHJ3 AFS FHLB 3.175 04/19/27 Callable 5,000,000 Fixed 3.180 4/19/27 96.03 6.40 99.40 168,660 3.5% 1.3 0.6 -1.1 -3.6 0.9 3130B3XP3 AFS FHLB 4.5 12/04/29 Callable 1,000,000 Fixed 4.500 12/4/29 100.00 4.50 100.72 7,154 0.7% 0.9 1.0 -1.7 -7.6 1.4 3130B4QA2 AFS FHLB 4.55 07/21/28 Callable 3,000,000 Fixed 4.550 7/21/28 100.00 4.55 100.49 14,691 0.5% 0.6 0.6 -0.9 -4.8 0.7 3130B4RC7 AFS FHLB 4.5 07/27/29 Callable 3,000,000 Fixed 4.500 7/27/29 100.00 4.50 101.29 38,709 1.3% 1.6 1.7 -2.2 -7.7 1.9 3130B62E5 AFS FHLB 4.25 10/30/28 Callable 3,000,000 Fixed 4.250 10/30/28 100.00 4.23 100.12 3,720 0.1% 0.3 0.4 -1.2 -5.7 0.8 3130B8BF8 AFS FHLB 3.95 11/06/30 Callable 830,000 Fixed 3.950 11/6/30 100.37 3.86 99.38 (8,234) -1.0% 4.9 1.7 -2.9 -10.3 2.3 3133ENJC5 AFS FFCB 1.29 12/22/26 Callable 5,000,000 Fixed 1.290 12/22/26 100.00 1.29 97.77 (111,285) -2.2% 1.0 1.0 -1.0 -2.8 1.0 3133ERCX7 AFS FFCB 5.17 05/01/28 Callable 5,000,000 Fixed 5.170 5/1/28 100.00 5.15 100.49 24,405 0.5% 0.3 0.3 -0.4 -3.2 0.4 3133ERE23 AFS FFCB 4.32 12/02/27 Callable 1,000,000 Fixed 4.320 12/2/27 100.00 4.32 100.62 6,206 0.6% 0.9 1.0 -1.2 -4.4 1.1 3133ETUN5 AFS FFCB 4.45 02/25/30 Callable 5,000,000 Fixed 4.450 2/25/30 100.00 4.42 100.10 5,050 0.1% 0.2 0.2 -1.3 -7.1 0.7 3133ETXV4 AFS FFCB 3.83 09/15/28 Callable 1,400,000Fixed 3.830 9/15/28 100.17 3.65 99.79 (5,321) -0.4% 1.0 1.0 -1.8 -6.3 1.4 3134GW4C7 AFS FHLMC 0.8 10/27/26 Callable 5,000,000 Fixed 0.800 10/27/26 90.79 12.96 97.69 345,245 7.6% 0.8 0.8 -0.8 -2.4 0.8 3134HADY6 AFS FHLMC 4 08/14/29 Callable 4,000,000Fixed 4.000 8/14/29 98.65 6.25 99.83 47,308 1.2% 0.6 0.3 -2.0 -7.7 1.1 3136GAGW3 AFS FNMA 4.1 08/10/28 Callable 5,000,000 Fixed 4.100 8/10/28 100.00 4.09 100.18 9,175 0.2% 0.6 0.7 -1.3 -5.8 1.0 9128286F2 AFS USTN 2.5 02/28/26 Bullet 3,000,000 Fixed 2.500 2/28/26 108.71 99.79 (267,511) -8.2% 0.2 0.2 -0.2 -0.5 0.2 9128286L9 AFS USTN 2.25 03/31/26 Bullet 3,200,000Fixed 2.250 3/31/26 94.67 99.66 159,810 5.3% 0.3 0.3 -0.2 -0.7 0.3 912828YX2 AFS USTN 1.75 12/31/26 Bullet 5,000,000 Fixed 1.750 12/31/26 93.94 8.18 98.27 216,672 4.6% 1.0 1.0 -1.0 -2.9 1.0 91282CEW7 AFS USTN 3.25 06/30/27 Bullet 5,000,000 Fixed 3.250 6/30/27 97.95 4.68 99.66 85,313 1.7% 1.5 1.5 -1.4 -4.2 1.5 91282CFL0 AFS USTN 3.875 09/30/29 Bullet 5,000,000 Fixed 3.880 9/30/29 99.54 4.00 100.88 66,750 1.3% 3.8 3.5 -3.4 -9.8 3.5 91282CFM8 AFS USTN 4.125 09/30/27 Bullet 2,500,000 Fixed 4.130 9/30/27 100.95 3.55 101.07 3,105 0.1% 1.8 1.7 -1.7 -4.9 1.7 91282CFT3 AFS USTN 4 10/31/29 Bullet 5,000,000 Fixed 4.000 10/31/29 99.77 4.06 101.34 78,297 1.6% 3.8 3.6 -3.5 -10.0 3.5 91282CFY2 AFS USTN 3.875 11/30/29 Bullet 5,000,000 Fixed 3.880 11/30/29 98.84 4.20 100.85 100,578 2.0% 3.9 3.7 -3.5 -10.2 3.6 91282CGB1 AFS USTN 3.875 12/31/29 Bullet 3,000,000 Fixed 3.880 12/31/29 98.33 4.33 100.88 76,350 2.6% 4.0 3.8 -3.6 -10.4 3.7 91282CGL9 AFS USTN 4 02/15/26 Bullet 5,000,000 Fixed 4.000 2/15/26 99.74 6.21 100.00 13,195 0.3% 0.1 0.1 -0.1 -0.4 0.1 91282CHH7 AFS USTN 4.125 06/15/26 Bullet 5,000,000 Fixed 4.130 6/15/26 100.04 4.04 100.27 11,281 0.2% 0.5 0.5 -0.5 -1.3 0.5 91282CPA3 AFS USTN 3.625 09/30/30 Bullet 3,000,000 Fixed 3.630 9/30/30 100.52 3.50 99.66 (25,913) -0.9% 4.8 4.4 -4.2 -12.1 4.3 TOTAL TSY/AGENCY 110,930,000 3.235 2/7/28 98.15 99.68 1,705,310 1.6% 1.4 1.3 -1.5 -5.0 1.4 40 of 55 City of Palmdale - Palmdale, CA : CUSIP Details > Treasury/Agency As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Security Details - Corporate Sector
CUSIP Details
Rating % Price Change
CUSIP FAS Ticker Current Cpn Maturity Industry Call Date Next Reset S&P Mdy Book
Price
Yld @
Book
Mkt
Price Gain/Loss G/L % Avg Life -100 +100 +300
Eff
Dur
05565QDH8 AFS BP 500,000 3.720 11/28/28 Finance 8/28/28 A1 96.69 4.96 99.34 13,253 2.7% 2.9 2.7 -2.6 -7.7 2.7 06406RAQ0 AFS BK 500,000 0.750 1/28/26 Finance 1/15/26 A Aa3 92.67 99.71 35,222 7.6% 0.1 0.1 -0.1 -0.2 0.1 06406RBK2 AFS BK 1,000,000 4.600 7/26/30 Finance 7/26/29 A Aa3 102.20 3.93 101.53 (6,747) -0.7% 3.6 3.3 -3.2 -9.3 3.3 06406RBN6 AFS BK 656,000 4.540 2/1/29 Finance 2/1/28 A Aa3 101.08 4.00 101.14 383 0.1% 2.1 2.0 -2.0 -5.7 2.0 11271LAA0 AFS BN 500,000 4.250 6/2/26 Finance 3/2/26 A3 98.02 16.64 100.14 10,615 2.2% 0.2 0.2 -0.2 -1.0 0.2 194162AQ6 AFS CL 1,000,000 4.800 3/2/26 Industrial A+ Aa3 103.56 -15.03 100.13 (34,282) -3.3% 0.2 0.2 -0.2 -0.5 0.2 22550L2K6 AFS UBSG 500,000 5.000 7/9/27 Finance A+ Aa2 100.18 4.87 101.98 8,994 1.8% 1.5 1.5 -1.4 -4.3 1.5 30231GAT9 AFS XOM 1,000,000 3.040 3/1/26 Industrial 1/20/26 AA- Aa2 98.21 14.21 99.85 16,405 1.7% 0.2 0.1 -0.2 -0.5 0.2 46625HRS1 AFS JPM 500,000 3.200 6/15/26 Finance 3/15/26 A A1 96.97 10.17 99.75 13,886 2.9% 0.5 0.3 -0.4 -1.3 0.4 61761J3R8 AFS MS 500,000 3.130 7/27/26 Finance A- A1 96.24 10.04 99.50 16,305 3.4% 0.6 0.6 -0.6 -1.7 0.6 718172CE7 AFS PM 500,000 3.130 3/2/28 Industrial 12/2/27 A- A2 94.88 5.66 98.31 17,135 3.6% 2.2 2.0 -2.0 -6.0 2.0 742718FY0 AFS PG 1,000,000 4.100 1/26/26 Industrial AA- Aa3 101.85 -20.76 100.01 (18,373) -1.8% 0.1 0.1 -0.1 -0.2 0.1 75973QAA5 AFS RNR 500,000 3.450 7/1/27 Finance 4/1/27 A3 95.09 6.95 99.02 19,669 4.1% 1.5 1.3 -1.4 -4.2 1.4 780082AD5 AFS RY 500,000 4.650 1/27/26 Finance A3 99.39 13.28 100.00 3,046 0.6% 0.1 0.1 -0.1 -0.2 0.1 797440CE2 AFS SRE 500,000 4.950 8/15/28 Utility 7/15/28 A A1 101.87 4.17 102.42 2,757 0.5% 2.5 2.4 -2.4 -7.0 2.4 808513BW4 AFS SCHW 500,000 3.300 4/1/27 Finance 1/1/27 A- A2 95.88 6.79 99.34 17,316 3.6% 1.3 1.1 -1.2 -3.5 1.1 89236TMK8 AFS TOYOM 500,000 4.550 8/9/29 Finance 102.12 3.91 101.54 (2,924) -0.6% 3.6 3.4 -3.2 -9.4 3.3 91324PDX7 AFS UNH 1,000,000 2.000 5/15/30 Services A+ A2 91.42 4.17 91.21 (2,129) -0.2% 4.4 4.2 -4.0 -11.5 4.1 TOTAL CORPORAT 11,656,000 3.737 9/17/27 6/26/27 98.54 2.76 99.49 110,526 1.0% 1.6 1.5 -1.4 -4.2 1.4 41 of 55 City of Palmdale - Palmdale, CA : CUSIP Details As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Security Details - CD Sector
CUSIP Details
% Price Change
CUSIP FAS Description Current Cpn Maturity Call Date
Book
Price
Yld @
Book
Mkt
Price Gain/Loss G/L % Avg Life -100 +100 +300 Eff Dur
05580A4Y7 AFS BMWG 4.65 06/15/26 240,000 4.650 6/15/26 101.43 1.48 100.33 (2,628) -1.1% 0.5 0.5 -0.5 -1.3 0.5 06051XER9 AFS BAC 5.05 06/22/26 245,000 5.050 6/22/26 100.00 5.03 100.62 1,517 0.6% 0.5 0.5 -0.5 -1.4 0.5 09582YAV4 AFS BRBS 4.2 12/28/27 240,000 4.200 12/28/27 100.40 3.99 101.07 1,611 0.7% 2.0 1.9 -1.9 -5.5 1.9 307811KA6 AFS KUJFM 5 06/14/28 245,000 5.000 6/14/28 6/14/26 100.00 5.06 100.52 1,266 0.5% 2.5 0.5 -0.7 -4.1 0.6 34520LBC6 AFS FOBRI 5.05 06/15/26 245,000 5.050 6/15/26 100.00 5.04 100.59 1,447 0.6% 0.5 0.5 -0.5 -1.3 0.5 35634MAE1 AFS FRDOM 5.05 06/22/26 245,000 5.050 6/22/26 100.00 5.04 100.62 1,517 0.6% 0.5 0.5 -0.5 -1.4 0.5 38150VUZ0 AFS GS 5.05 06/11/26 245,000 5.050 6/11/26 100.01 5.01 100.57 1,383 0.6% 0.4 0.4 -0.4 -1.3 0.4 8562855V9 AFS SBI 5.1 06/17/26 245,000 5.100 6/17/26 100.00 5.09 100.62 1,520 0.6% 0.5 0.5 -0.5 -1.4 0.5 89235MPP0 AFS TOYOM 4.65 06/13/29 245,000 4.650 6/13/29 100.00 4.65 103.11 7,618 3.1% 3.5 3.2 -3.1 -9.0 3.2 TOTAL CD 2,195,000 4.869 3/8/27 6/14/26 100.20 4.49 100.90 15,245 0.7% 1.2 0.9 -1.0 -3.0 0.9 42 of 55 City of Palmdale - Palmdale, CA : CUSIP Details As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Security Details - Other Sector
CUSIP Details
Coupon % Price Change
CUSIP FAS Description Structure Current Type Rate Next Step Maturity Book
Price
Yld @
Book
Mkt
Price Gain/Loss G/L % Avg Life -100 +100 +300 Eff Dur
COPLAIF01 AFS CASH Bullet 166,227,558 3.930 1/31/26 100.00 3.90 100.00 0 0.0% 0.1 0.1 -0.1 -0.3 0.1 TOTAL OTHER 166,227,558 3.930 1/31/26 100.00 100.00 0 0.0% 0.1 0.1 -0.1 -0.3 0.1 43 of 55 City of Palmdale - Palmdale, CA : CUSIP Details As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Scenario Yield and Price Analysis
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Interest Rate Risk / Reward - Treasury/Agency Sector
Scenario Yield and Price Analysis
Book Projected Yield At Book Price % Change in Market Price CUSIP Description Value Price
Market
Price -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 +100 +200 +300 +400 3130AL5A8 FHLB 0.9 02/26/27 4,479,000 89.58 96.94 n.m. n.m. 10.75 10.75 10.75 10.75 10.75 10.75 10.75 3.3 3.1 2.3 1.1 -1.1 -2.2 -3.3 -4.4 3130AN5C0 FHLB 1.05 04/29/26 4,010,400 100.26 99.14 -2.27 -2.27 0.26 0.26 0.26 0.26 0.26 0.26 0.26 1.0 0.9 0.7 0.3 -0.3 -0.7 -1.0 -1.3 3130AQRH8 FHLB 2 02/25/27 4,590,500 91.81 98.19 n.m. n.m. n.m. 9.69 9.69 9.69 9.69 9.69 9.69 2.2 2.0 1.9 1.1 -1.1 -2.2 -3.3 -4.4 3130ARHJ3 FHLB 3.175 04/19/27 4,801,500 96.03 99.40 n.m. n.m. n.m. n.m. 6.40 6.40 6.40 6.40 6.40 0.8 0.7 0.7 0.6 -1.1 -2.4 -3.6 -4.8 3130B3XP3 FHLB 4.5 12/04/29 1,000,000 100.00 100.72 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 3.6 2.9 1.9 1.0 -1.7 -4.4 -7.6 -10.7 3130B4QA2 FHLB 4.55 07/21/28 3,000,000 100.00 100.49 4.55 4.55 4.55 4.55 4.55 4.55 4.55 4.55 4.55 2.2 1.7 1.1 0.6 -0.9 -2.7 -4.8 -7.0 3130B4RC7 FHLB 4.5 07/27/29 3,000,000 100.00 101.29 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 5.9 4.9 3.3 1.7 -2.2 -4.8 -7.7 -10.5 3130B62E5 FHLB 4.25 10/30/28 3,000,000 100.00 100.12 4.23 4.23 4.23 4.23 4.23 4.25 4.25 4.25 4.25 1.4 1.1 0.7 0.4 -1.2 -3.3 -5.7 -8.1 3130B8BF8 FHLB 3.95 11/06/30 833,071 100.37 99.38 3.50 3.50 3.50 3.50 3.86 3.86 3.86 3.86 3.86 4.1 3.5 2.6 1.7 -2.9 -6.5 -10.3 -14.0 3133ENJC5 FFCB 1.29 12/22/26 5,000,000 100.00 97.77 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.29 1.29 2.3 2.3 1.9 1.0 -1.0 -1.9 -2.8 -3.7 3133ERCX7 FFCB 5.17 05/01/28 5,000,000 100.00 100.49 5.15 5.15 5.15 5.15 5.15 5.15 5.17 5.17 5.17 1.3 1.0 0.7 0.3 -0.4 -1.5 -3.2 -5.1 3133ERE23 FFCB 4.32 12/02/27 1,000,000 100.00 100.62 4.32 4.32 4.32 4.32 4.32 4.32 4.32 4.32 4.32 3.5 2.8 1.9 1.0 -1.2 -2.7 -4.4 -6.1 3133ETUN5 FFCB 4.45 02/25/30 5,000,000 100.00 100.10 4.42 4.42 4.42 4.42 4.42 4.45 4.45 4.45 4.45 0.6 0.5 0.3 0.2 -1.3 -3.9 -7.1 -10.3 3133ETXV4 FFCB 3.83 09/15/28 1,402,380 100.17 99.79 3.58 3.58 3.58 3.58 3.65 3.76 3.76 3.76 3.76 3.0 2.4 1.7 1.0 -1.8 -4.0 -6.3 -8.6 3134GW4C7 FHLMC 0.8 10/27/26 4,539,500 90.79 97.69 n.m. n.m. 12.96 12.96 12.96 12.96 12.96 12.96 12.96 2.4 2.3 1.6 0.8 -0.8 -1.6 -2.4 -3.2 3134HADY6 FHLMC 4 08/14/29 3,946,000 98.65 99.83 15.73 15.73 15.73 15.73 6.25 4.41 4.41 4.41 4.41 0.7 0.6 0.5 0.3 -2.0 -4.7 -7.7 -10.6 3136GAGW3 FNMA 4.1 08/10/28 5,000,000 100.00 100.18 4.09 4.09 4.09 4.09 4.09 4.10 4.10 4.10 4.10 2.4 1.9 1.3 0.7 -1.3 -3.5 -5.8 -8.0 9128286F2 USTN 2.5 02/28/26 3,261,300 108.71 99.79 n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. 0.6 0.5 0.3 0.2 -0.2 -0.3 -0.5 -0.6 9128286L9 USTN 2.25 03/31/26 3,029,440 94.67 99.66 n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. 1.0 0.8 0.5 0.3 -0.2 -0.5 -0.7 -1.0 912828YX2 USTN 1.75 12/31/26 4,697,000 93.94 98.27 8.18 8.18 8.18 8.18 8.18 8.18 8.18 8.18 8.18 3.7 3.0 2.0 1.0 -1.0 -1.9 -2.9 -3.8 91282CEW7 USTN 3.25 06/30/27 4,897,500 97.95 99.66 4.68 4.68 4.68 4.68 4.68 4.68 4.68 4.68 4.68 5.4 4.5 3.0 1.5 -1.4 -2.8 -4.2 -5.6 91282CFL0 USTN 3.875 09/30/29 4,977,000 99.54 100.88 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 13.6 11.1 7.2 3.5 -3.4 -6.7 -9.8 -12.8 91282CFM8 USTN 4.125 09/30/27 2,523,750 100.95 101.07 3.55 3.55 3.55 3.55 3.55 3.55 3.55 3.55 3.55 6.3 5.2 3.4 1.7 -1.7 -3.3 -4.9 -6.4 91282CFT3 USTN 4 10/31/29 4,988,500 99.77 101.34 4.06 4.06 4.06 4.06 4.06 4.06 4.06 4.06 4.06 13.9 11.3 7.4 3.6 -3.5 -6.8 -10.0 -13.0 91282CFY2 USTN 3.875 11/30/29 4,942,000 98.84 100.85 4.20 4.20 4.20 4.20 4.20 4.20 4.20 4.20 4.20 14.3 11.6 7.5 3.7 -3.5 -6.9 -10.2 -13.3 91282CGB1 USTN 3.875 12/31/29 2,949,900 98.33 100.88 4.33 4.33 4.33 4.33 4.33 4.33 4.33 4.33 4.33 14.6 11.8 7.7 3.8 -3.6 -7.1 -10.4 -13.5 91282CGL9 USTN 4 02/15/26 4,987,000 99.74 100.00 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 6.21 0.5 0.4 0.3 0.1 -0.1 -0.3 -0.4 -0.5 91282CHH7 USTN 4.125 06/15/26 5,002,000 100.04 100.27 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 4.04 1.8 1.4 0.9 0.5 -0.5 -0.9 -1.3 -1.8 91282CPA3 USTN 3.625 09/30/30 3,015,600 100.52 99.66 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 17.6 14.0 9.1 4.4 -4.2 -8.2 -12.1 -15.7 TOTAL TREASURY/AGENCY SECTOR 108,873,341 98.15 99.68 4.63 4.63 5.44 5.64 5.32 5.25 5.25 5.25 5.25 4.6 3.8 2.6 1.3 -1.5 -3.2 -5.0 -6.8 * n.m.: Yield not meaningful
46 of 55 City of Palmdale - Palmdale, CA : Scenario Yield and Price Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Interest Rate Risk / Reward - Corporate Sector
Scenario Yield and Price Analysis
Book Projected Yield At Book Price % Change in Market Price CUSIP Description Value Price
Market
Price -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 +100 +200 +300 +400 05565QDH8 BP 3.723 11/28/28 483,450 96.69 99.34 5.07 5.07 5.07 5.07 4.96 4.96 4.96 4.96 4.96 9.7 8.1 5.3 2.7 -2.6 -5.2 -7.7 -10.2 06406RAQ0 BK 0.75 01/28/26 463,350 92.67 99.71 n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. n.m. 0.3 0.2 0.2 0.1 -0.1 -0.2 -0.2 -0.3 06406RBK2 BK 4.596 07/26/30 1,022,000 102.20 101.53 3.93 3.93 3.93 3.93 3.93 3.93 3.93 3.93 3.93 12.8 10.4 6.8 3.3 -3.2 -6.3 -9.3 -12.1 06406RBN6 BK 4.543 02/01/29 663,085 101.08 101.14 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 7.4 6.2 4.1 2.0 -2.0 -3.9 -5.7 -7.5 11271LAA0 BN 4.25 06/02/26 490,100 98.02 100.14 16.64 16.64 16.64 16.64 16.64 11.28 9.15 9.15 9.15 0.7 0.5 0.3 0.2 -0.2 -0.6 -1.0 -1.4 194162AQ6 CL 4.8 03/02/26 1,035,600 103.56 100.13 -15.03 -15.03 -15.03 -15.03 -15.03 -15.03 -15.03 -15.03 -15.03 0.7 0.5 0.3 0.2 -0.2 -0.3 -0.5 -0.7 22550L2K6 UBSG 5 07/09/27 500,900 100.18 101.98 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 4.87 5.5 4.5 3.0 1.5 -1.4 -2.9 -4.3 -5.6 30231GAT9 XOM 3.043 03/01/26 982,100 98.21 99.85 n.m. n.m. n.m. n.m. 14.21 14.21 14.21 14.21 14.21 0.2 0.2 0.2 0.1 -0.2 -0.3 -0.5 -0.7 46625HRS1 JPM 3.2 06/15/26 484,850 96.97 99.75 18.98 18.98 18.98 18.98 10.17 10.17 10.17 10.17 10.17 0.9 0.8 0.5 0.3 -0.4 -0.9 -1.3 -1.8 61761J3R8 MS 3.125 07/27/26 481,200 96.24 99.50 10.04 10.04 10.04 10.04 10.04 10.04 10.04 10.04 10.04 2.2 1.7 1.1 0.6 -0.6 -1.1 -1.7 -2.2 718172CE7 PM 3.125 03/02/28 474,400 94.88 98.31 5.99 5.99 5.99 5.99 5.66 5.66 5.66 5.66 5.66 7.1 6.0 4.0 2.0 -2.0 -4.0 -6.0 -7.8 742718FY0 PG 4.1 01/26/26 1,018,500 101.85 100.01 -20.76 -20.76 -20.76 -20.76 -20.76 -20.76 -20.76 -20.76 -20.76 0.3 0.2 0.1 0.1 -0.1 -0.1 -0.2 -0.3 75973QAA5 RNR 3.45 07/01/27 475,450 95.09 99.02 7.65 7.65 7.65 7.65 6.95 6.95 6.95 6.95 6.95 4.7 3.9 2.6 1.3 -1.4 -2.8 -4.2 -5.5 780082AD5 RY 4.65 01/27/26 496,950 99.39 100.00 13.28 13.28 13.28 13.28 13.28 13.28 13.28 13.28 13.28 0.3 0.2 0.2 0.1 -0.1 -0.2 -0.2 -0.3 797440CE2 SRE 4.95 08/15/28 509,350 101.87 102.42 4.17 4.17 4.17 4.17 4.17 4.19 4.19 4.19 4.19 9.0 7.5 4.9 2.4 -2.4 -4.7 -7.0 -9.2 808513BW4 SCHW 3.3 04/01/27 479,400 95.88 99.34 7.66 7.66 7.66 7.66 6.79 6.79 6.79 6.79 6.79 3.8 3.1 2.1 1.1 -1.2 -2.3 -3.5 -4.7 89236TMK8 TOYOM 4.55 08/09/29 510,600 102.12 101.54 3.91 3.91 3.91 3.91 3.91 3.91 3.91 3.91 3.91 12.9 10.5 6.9 3.4 -3.2 -6.4 -9.4 -12.2 91324PDX7 UNH 2 05/15/30 914,200 91.42 91.21 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 4.17 16.6 13.3 8.6 4.2 -4.0 -7.9 -11.5 -15.0 TOTAL CORPORATE SECTOR 11,485,485 98.54 99.49 2.16 2.16 2.16 2.16 2.76 2.53 2.43 2.43 2.43 5.4 4.4 2.9 1.4 -1.4 -2.8 -4.2 -5.5 * n.m.: Yield not meaningful
47 of 55 City of Palmdale - Palmdale, CA : Scenario Yield and Price Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Interest Rate Risk / Reward - CD Sector
Scenario Yield and Price Analysis
Book Projected Yield At Book Price % Change in Market Price CUSIP Description Value Price
Market
Price -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 +100 +200 +300 +400 05580A4Y7 BMWG 4.65 06/15/26 243,432 101.43 100.33 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.48 1.8 1.4 0.9 0.5 -0.5 -0.9 -1.3 -1.8 06051XER9 BAC 5.05 06/22/26 245,000 100.00 100.62 5.03 5.03 5.03 5.03 5.03 5.03 5.03 5.03 5.03 1.8 1.4 1.0 0.5 -0.5 -0.9 -1.4 -1.9 09582YAV4 BRBS 4.2 12/28/27 240,960 100.40 101.07 3.99 3.99 3.99 3.99 3.99 3.99 3.99 3.99 3.99 7.1 5.9 3.9 1.9 -1.9 -3.7 -5.5 -7.2 307811KA6 KUJFM 5 06/14/28 245,000 100.00 100.52 5.06 5.06 5.06 5.06 5.06 5.06 5.06 5.06 5.06 1.8 1.4 0.9 0.5 -0.7 -2.2 -4.1 -6.0 34520LBC6 FOBRI 5.05 06/15/26 245,000 100.00 100.59 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 1.8 1.4 0.9 0.5 -0.5 -0.9 -1.3 -1.8 35634MAE1 FRDOM 5.05 06/22/26 245,000 100.00 100.62 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 5.04 1.8 1.4 1.0 0.5 -0.5 -0.9 -1.4 -1.9 38150VUZ0 GS 5.05 06/11/26 245,025 100.01 100.57 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 5.01 1.7 1.3 0.9 0.4 -0.4 -0.9 -1.3 -1.7 8562855V9 SBI 5.1 06/17/26 245,000 100.00 100.62 5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09 5.09 1.8 1.4 0.9 0.5 -0.5 -0.9 -1.4 -1.8 89235MPP0 TOYOM 4.65 06/13/29 245,000 100.00 103.11 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 12.4 10.1 6.6 3.2 -3.1 -6.1 -9.0 -11.8 TOTAL CD SECTOR 2,199,417 100.20 100.90 4.49 4.49 4.49 4.49 4.49 4.49 4.49 4.49 4.49 3.6 2.9 1.9 0.9 -0.9 -2.0 -3.0 -4.0 * n.m.: Yield not meaningful
48 of 55 City of Palmdale - Palmdale, CA : Scenario Yield and Price Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Interest Rate Risk / Reward - Other Sector
Scenario Yield and Price Analysis
Book Projected Yield At Book Price % Change in Market Price CUSIP Description Value Price
Market
Price -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 +100 +200 +300 +400 COPLAIF01 CASH 166,227,558 100.00 100.00 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 0.3 0.3 0.2 0.1 -0.1 -0.2 -0.3 -0.3 TOTAL OTHER SECTOR 166,227,558 100.00 100.00 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 3.90 0.3 0.3 0.2 0.1 -0.1 -0.2 -0.3 -0.3 * n.m.: Yield not meaningful
49 of 55 City of Palmdale - Palmdale, CA : Scenario Yield and Price Analysis As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Addendum
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Addendum
Portfolio Exceptions
Exception Sub Sub Sub Security Current Book Market
Description CUSIP Sector Sector Sector Description Par Price Price 1 Analytics do not exist 229083AA8 CD NCD NCD EVLBK 5.35 06/18/29 245,000 100.00 2 Analytics do not exist 3134HBWS6 Treasury/Agency Callable Agency Berm Call FHLMC 4 07/07/28 2,000,000 99.75 Portfolio Exceptions
Portfolio Exceptions Summary
Total Excluded Included Excluded Total Excluded Included Excluded Current Par Current Par Current Par Pct Count Count Count Pct 293,253,558 2,245,000 291,008,558 0.77% 59 2 57 3.39%
52 of 55 City of Palmdale - Palmdale, CA : Addendum As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Addendum
Disclaimer and Notes
The information contained herein has been prepared from sources believed reliable but is not guaranteed by Stifel and is not a complete summary or statement of all available data, nor is it to be construed as an offer to buy or sell any securities referred to herein. The accuracy of the financial projections is dependent on the occurrence of future events which cannot be assured; therefore, the actual results may vary from the projections and future results are not guaranteed. Opinions expressed, including CPA opinions, are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of investors. Employees of Stifel or its affiliates may, at times, release written or oral commentary, technical analysis, or trading strategies that differ from the opinions expressed within. No investments or services mentioned are available to "private customers" in the European Economic Area or to anyone in Canada other than a "Designated Institution." Stifel and/or its employees involved in the preparation or the issuance of this communication may have positions in the securities or options of the issuer/s discussed or recommended herein. Securities identified herein are subject to availability and changes in price.
Stifel is a multi-disciplined financial services firm that regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as a placement agent in private transactions. Moreover, Stifel and its affiliates and their respective shareholders, directors, officers, and/or employees, may from time to time have long or short positions in such securities or in options or other derivative instruments based thereon.
Readers of this report should assume that Stifel or one of its affiliates is seeking or will seek investment banking and/or other business relationships with the issuer or issuers, or borrower or borrowers, mentioned in this report. Stifel’s Fixed Income Capital Markets research and strategy analysts ("FICM Analysts") are not compensated directly or indirectly based on specific investment banking services transactions with the borrower or borrowers mentioned in this report or on FICM Analyst specific recommendations or views (whether or not contained in this or any other Stifel report), nor are FICM Analysts supervised by Stifel investment banking personnel; FICM Analysts receive compensation, however, based on the profitability of both Stifel (which includes investment banking) and Stifel’s Fixed Income Capital Markets. The views, if any, expressed by FICM Analysts herein accurately reflect their personal professional views about subject securities and borrowers. For additional information on investment risks (including, but not limited to, market risks, credit ratings, and specific securities provisions), contact your Stifel financial advisor or salesperson.
High yield fixed income securities, or fixed income securities that don’t have credit ratings from nationally recognized statistical rating organizations, may be subject to greater fluctuations in price and greater risk of loss of income and principal, due to greater potential default risk by the associated borrowers than fixed income securities that have investment grade credit ratings from the nationally recognized statistical rating organizations.
All Moody’s Ratings data, furnished by Stifel pursuant to this subscription agreement are proprietary to Stifel (or Stifel's licensors) and are so furnished at subscriber's request and for subscriber's exclusive use. No Moody’s Ratings data so furnished may be copied or otherwise reproduced, repackaged, further transmitted, transferred, disseminated, distributed, redistributed, sold, resold, leased, rented, licensed, sublicensed, altered, modified, adapted, or stored for subsequent use for any such purpose, in whole or in part, in any form or manner or by any means whatsoever, by subscriber or any other person or entity, without Stifel’s prior written consent (or that of Stifel's licensors', as applicable).
For additional information on investment risks (including but not limited to, market/credit risks, credit ratings, and specific securities provisions), contact your Stifel Fixed Income representative.
© 2022 Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE, 775 Ridge Lake Blvd, Memphis, TN 38120 All rights reserved.
Applied Notes
Date Requested 01/09/2026 The Performance Profile was requested on this date Book Date 12/31/2025 The portfolio's book (holding) price is as of this date As-Of Date 12/31/2025 Market pricing for this portfolio is as of this date.
Call Report n.a. Most recent institution call report available on Date Requested Risk Manager n.a. The most recent Risk Manager information as of Date Requested Tax Rate Applied 21.00% Adjustable, defaults to 21.00% C-Corp Bank, 29.60% S-Corp Bank, 0.00% Credit Union Cost of Funds 1.0% Used to calculate Tax-Equivalent Yields where appropriate for depositories TEFRA Tax-Free Munis C-Corp Bank (20% BQ, 100% GM); S-Corp Bank (0% BQ, 100% GM); all else n.a.
Portfolio Statistics 01/09/2026 The most recent Stifel portfolio summary statistics as of Date Requested 53 of 55 City of Palmdale - Palmdale, CA : Addendum > Disclaimer and Notes As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Addendum
Key Terms and Definitions
Term Definition
Adjustment Frequency For adjustable-rate mortgages (ARMs), the number of months between the loan’s or security’s coupon adjustment dates. GNMA ARMs adjust annually in one of the following months: January, April, July, or October; FNMA and FHLMC issues also usually have annual reset dates although the adjustment dates occur at any time during the year.
Book Yield Usually provided from Bond Accounting reports and represents the Annualized yield to maturity (or call) based on the book value of a bond and projected cash flows. Similar to “Projected Yield at Book” except 3mo Historical Speeds are commonly employed in calculating Book Yield for amortizing securities rather than a forward looking estimate.
Collateral Assets that are used to secure payment of certain bonds, for example, real estate is a source of collateral for mortgage backed securities.
Coupon The stated interest rate on a bond that is used to calculate interest payments that are payable to bond holders. A coupon rate of interest can be fixed over the life of the bond or a variable rate of interest that is calculated using a formula described in the offering documents. Floating coupon rates are generally a simple spread (or margin) relative to a stated index (such as LIBOR). Many bonds include caps and floors on the coupon interest rate and some contain more complex formulas.
Convexity An incremental measure (along with the linear measure of duration) to capture the curvature of a bond’s price/yield relationship. Practically, negative convexity indicates the upside price of a bond is limited if rates fall due to embedded options (mortgage prepayments or an issuers ability to call the bond).
Current Face (Par Amount) Computed by multiplying the original face by the current factor, represents principal remaining for an investor to receive.
Current Index The level of the index at a specified moment in time that is used in conjunction with the margin to establish the security’s coupon.
Effective Duration Or “option-adjusted duration” measures interest rate risk of a security considering the impact of optionality and possible changes in future interest rates. It is calculated by averaging the percentage changes in the security's value under the higher and lower rate environments, while 25bp, 50bp or other sized yield shifts are commonly used, the rate of change is restated as a 100bp equivalent by simple multiplication.
Enhanced Credit Rating A rating that reflects the underlying issue’s standalone credit quality as well as any credit support provided by a state credit enhancement program.
Factor Relevant for bonds that pay amortizing principal to bond holders. The factor equals the percentage of the original face that is outstanding.
Floor For adjustable-rate securities, it is the lowest level to which a coupon can fall over the life of the security Forward Curve The forward curve is a graph that defines the prices (yields) at which a contract for future delivery or payment can be concluded today, it represents a term structure of forward rates.
Gross WAC The weighted-average mortgage rate of all the loans in a pool.
Initial Reset Date The date on which an adjustable-rate mortgage (ARM) or underlying mortgage in an ARM pool can reset for the first time.
Internal Rate of Return A sector or portfolio yield to expected maturity based on the portfolio's expected cash flows, treated as a single instrument. The reflects the overall yield to expected maturity of the portfolio, not a monthly earnings rate. On a single bond, IRR is the same as yield.
Lifetime Cap For adjustable-rate securities, it is the highest level that a coupon may attain over the life of the security.
Margin The amount added to the index of a floating rate loan or security (such as an adjustment rate mortgage security) in order to calculate a coupon rate of interest.
Market Yield The yield of a bond at current market price. For a bond you own, an indication of what yield the market will pay you today for the bond.
Months to Roll (MTR) Months remaining until a bond’s coupon will next reset Pay Window For CMO’s, the expected date range to receive principal payments.
Prepay Speeds Prepayments occur when a servicer receives principal payments above the scheduled amount. The velocity of the prepayments is measured using prepayment speeds, typically measured using conditional prepayment rate (CPR) or prepayment speed assumption (PSA).
Price Volatility The percentage change in price for a given a change in interest rates. Price volatility is generally calculated using a parallel, instantaneous shock in a benchmark yield curve assuming constant spreads relative to the benchmark curve.
Projected Call The date at which a callable bond is projected to be redeemed at a given level of interest rates. All things equal, higher rates should extend the date and lower rates should accelerate the redemption date.
Projected Yield at Book Annualized yield to maturity (or call) based on the book value of a bond and projected cash flows given the market conditions at the time of the analysis.
Roll Date The date (or weighted average date) that a bond’s coupon can reset Static Cash Flow Gap Estimate In the absence of more robust Earnings at Risk simulations, an estimate of how sensitive a depository’s margin is to movements in interest rates by comparing the amount and sensitivity of repricing Assets and Liabilities. A positive gap indicates more assets repricing than liabilities (asset sensitive) and a negative gap indicates more liabilities repricing than assets (liability sensitive).
Tranche Class of debt securities issued as part of a bond instrument, each part (tranche) characterized by a unique set of features such as maturity, interest (coupon) rate, interest payment date, to suit the needs of different investors.
Underlying Credit Rating A rating issued by an agency assessing the ability of an issuer to repay its debt. The assessment of creditworthiness is based solely on the obligor and does not include enhancements from a third party.
Weighted Average Life (WAL) The weighted-average time in years that the principal of a security is expected to be outstanding. For mortgage securities and callable bonds, average life varies with prepayment speeds and yield curve assumptions.
Weighted Average Loan Age (WALA) The average age of all mortgages in a pool, weighted by current balance.
Weighted Average Maturity (WAM) The average remaining maturity of the underlying mortgages in a pool, weighted by current balance.
Yield at Book Price On a sector or portfolio summary level, this is a book value-weighted average yield. It reflects expected earnings in the current month. Over time, relatively low (or high) yields may mature, increasing (or decreasing) subsequent months' expected earnings versus the initial weighted average.
Yield Contribution For a given a sectors weight, how much yield does it contribute to the overall portfolio. 54 of 55 City of Palmdale - Palmdale, CA : Addendum > Key Terms As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Addendum
Key Terms and Definitions
Yield to Maturity (YTM) The single yield that makes the present value of the cash flows to maturity equal to the price plus accrued interest.
Yield to Call (YTC) The single yield that makes the present value of the cash flows to the call date equal to the price plus accrued interest.
Yield to Worst (YTW) The lower of the yield to maturity and the yield to call. 55 of 55 City of Palmdale - Palmdale, CA : Addendum > Key Terms As of: 12/2025, Created: 1/9/2026 1:41:19 PM
Performance Profile
City of Palmdale - Successor Agency
Palmdale, CA
December 2025
Stifel.com
Table of Contents
Performance Profile
Executive Summary
Portfolio Summary
Portfolio Overview 6
Historical Portfolio Overview 7
Portfolio Sector Summary 8
Total Portfolio 9
Market Timing Analysis 10
Market Economic Data
Market Economic Data 11
Sector Analysis
Other 16
Cashflow Analysis
Annual Base Case 19
Cash Flows By Sector - Next 30 Years 20
Annual Shocked 21
Monthly Base Case 22
Monthly Shocked 23
Yield Forecaster 24
Gap Analysis 25
Expected Call Report 26
Supplemental Analysis
Key Portfolio Sorts 29
CUSIP Details
CUSIP Details - Other 33
Scenario Yield and Price Analysis
Other 36
Addendum
Portfolio Exceptions 39
Disclaimer and Notes 40
Key Terms 41
Bill Blackwill, Managing Director
[email protected]
Chad Smith, Managing Director
[email protected]
3 of 42
As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Executive Summary
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Portfolio Snapshot
Executive Summary
Book Value 3,985,613
# Securities 1
Average Size (Book) 3,985,613
Yield @ Book Price 4.02
Internal Rate of Return 3.98
Yield @ Book Price +100bps 4.02
Yield @ Book Price -100bps 4.02
Market Yield 4.02
$ Gain Loss
% Gain Loss 0.0%
Average Life 0.1
Average Life +300bps 0.1
% Price Change +100bps -0.1
% Price Change +300bps -0.3
Effective Duration 0.1
Effective Convexity 0.0
AFS / HTM % 100% / 0%
Fixed / Floating 100% / 0%
ESG / Green Par (000's) $0 / $0
6 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Portfolio Summary As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Executive Summary
Historical Portfolio Overview
12/31/2025 09/30/2025
Book Value 3,985,613 3,942,546
Yield @ Book Price 4.02 0.78
Yield @ Book Price (+100) 4.02 0.78
Yield @ Book Price (+300) 4.02 0.78
Yield @ Book Price (-100) 4.02 0.78
WAL 0.1 0.1
WAL (+100) 0.1 0.1
WAL (+300) 0.1 0.1
WAL (-100) 0.1 0.1
% Price Change (+100) -0.1% -0.1%
% Price Change (+300) -0.3% -0.3%
% Price Change (-100) 0.1% 0.1%
Effective Duration 0.1 0.1
Effective Convexity 0.0 0.0
$ Gain/Loss 0 0
% Gain/Loss 0.0% 0.0%
$ Gain/Loss (+300) -9,980 -10,014
Principal Cash Flow 2 yrs out 100% 100%
Principal Cash Flow 2 yrs out (+100) 100% 100%
Principal Cash Flow 2 yrs out (+300) 100% 100%
Principal Cash Flow 2 yrs out (-100) 100% 100%
7 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Portfolio Summary As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Executive Summary
Portfolio Sector Summary
Portfolio Par Book Yld @ Market % Price Change Gain/(Loss) Effective AFS Sector Curr Par % Value Cpn Maturity Value Book Value Yield -100 +100 +300 $ % WAL Dur Cvx % Cash & Other (1) 100.0% 3,985,613 4.05 0.1 3,985,613 4.02 3,985,613 4.02 0.1 -0.1 -0.3 0 0.0% 0.1 0.1 0.0 100% Other (1) 100.0% 3,985,613 4.05 0.1 3,985,613 4.02 3,985,613 4.02 0.1 -0.1 -0.3 0 0.0% 0.1 0.1 0.0 100% Total (1) 100.0% 3,985,613 4.05 0.1 3,985,613 4.02 3,985,613 4.02 0.1 -0.1 -0.3 0 0.0% 0.1 0.1 0.0 100% 8 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Portfolio Summary As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Portfolio Analysis - Interest Rate Shock
Executive Summary
Total Portfolio
-400 -300 -200 -100 Base +100 +200 +300 +400
Number Bonds 1 1 1 1 1 1 1 1 1
Current Face 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 Book Value 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 Book Price 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Projected Yield At Book Price 4.02% 4.02% 4.02% 4.02% 4.02% 4.02% 4.02% 4.02% 4.02% Market Value 3,998,734 3,995,693 3,992,321 3,988,961 3,985,613 3,982,277 3,978,949 3,975,633 3,972,329 Market Price 100.33 100.25 100.17 100.08 100.00 99.92 99.83 99.75 99.67 Market Yield 0.10% 1.00% 2.00% 3.01% 4.02% 5.03% 6.04% 7.06% 8.07% % Price Change 0.3% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% -0.3% -0.3% Book Gain/Loss 13,121 10,080 6,708 3,348 0 -3,336 -6,664 -9,980 -13,284 Gain/Loss % 0.3% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% -0.3% -0.3% Average Life 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Duration 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Convexity 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ¹Stifel Portfolio Median refers to the median portfolio value for other institutions analyzed by Stifel within the past three months. 9 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Portfolio Summary As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Market Timing Analysis
Executive Summary
The highest quartile is composed of the seven quarters over the past seven years in which rates were the highest, the second quartile is the next seven highest quarters, and so on. 5 Year Treasury Average: 2.61% / Median 2.72%
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Key Market Rates
Executive Summary
11 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Market Economic Data > Market Economic Data As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Executive Summary
Key Economic Data
12 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Market Economic Data > Market Economic Data As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Executive Summary
Key Market Rates
13 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Executive Summary > Market Economic Data > Market Economic Data As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Sector Analysis
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Other Sector Portfolio
Sector Analysis
-400 -300 -200 -100 Base +100 +200 +300 +400
Number Bonds 1 1 1 1 1 1 1 1 1
Current Face 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 Book Value 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 3,985,613 Book Price 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Proj. Yld. At Book Px. 4.02% 4.02% 4.02% 4.02% 4.02% 4.02% 4.02% 4.02% 4.02% Market Value 3,998,734 3,995,693 3,992,321 3,988,961 3,985,613 3,982,277 3,978,949 3,975,633 3,972,329 Market Price 100.33 100.25 100.17 100.08 100.00 99.92 99.83 99.75 99.67 Market Yield 0.10% 1.00% 2.00% 3.01% 4.02% 5.03% 6.04% 7.06% 8.07% % Price Change 0.3% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% -0.3% -0.3% Book Gain/Loss 13,121 10,080 6,708 3,348 0 -3,336 -6,664 -9,980 -13,284 Gain/Loss % 0.33% 0.25% 0.17% 0.08% 0.00% -0.08% -0.17% -0.25% -0.33% Average Life 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Duration 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Effective Convexity 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ¹ Risk - Sector px. vol. +300 as % of total port. px. vol ² Yield - Sector yield as a % of total port. yield.
16 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Sector Analysis As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Cashflow Analysis
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Annual Base
Cash Flow Analysis
Annual Cash Flows by Sector (Base)
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ≥2036 Treasury/Agency 0 0 0 0 0 0 0 0 0 0 0
MBS Fixed 0 0 0 0 0 0 0 0 0 0 0
ARM 0 0 0 0 0 0 0 0 0 0 0
CMO Fixed 0 0 0 0 0 0 0 0 0 0 0
CMO Floating 0 0 0 0 0 0 0 0 0 0 0
Agency CMBS 0 0 0 0 0 0 0 0 0 0 0
Small Business 0 0 0 0 0 0 0 0 0 0 0
Private Label 0 0 0 0 0 0 0 0 0 0 0
Municipal 0 0 0 0 0 0 0 0 0 0 0
Corporate 0 0 0 0 0 0 0 0 0 0 0
CD 0 0 0 0 0 0 0 0 0 0 0
Other 3,985,613 0 0 0 0 0 0 0 0 0 0
Total 3,985,613 0 0 0 0 0 0 0 0 0 0
% of Total Portfolio 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Annual Cash Flows by Sector (Base)
19 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Annual Base Case As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Cash Flows By Sector - Next 30 Years
Cash Flow Analysis
Base Scenario
20 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Annual Shocked
Cash Flow Analysis
Change in Shocked Annual Portfolio Cash Flows from Base 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ≥ 2036 Down 400 0 0 0 0 0 0 0 0 0 0 0
Down 300 0 0 0 0 0 0 0 0 0 0 0
Down 200 0 0 0 0 0 0 0 0 0 0 0
Down 100 0 0 0 0 0 0 0 0 0 0 0
Up 100 0 0 0 0 0 0 0 0 0 0 0
Up 200 0 0 0 0 0 0 0 0 0 0 0
Up 300 0 0 0 0 0 0 0 0 0 0 0
Up 400 0 0 0 0 0 0 0 0 0 0 0
Shocked Annual Portfolio Cash Flows
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 ≥ 2036 Down 400 3,985,613 0 0 0 0 0 0 0 0 0 0
Down 300 3,985,613 0 0 0 0 0 0 0 0 0 0
Down 200 3,985,613 0 0 0 0 0 0 0 0 0 0
Down 100 3,985,613 0 0 0 0 0 0 0 0 0 0
Base 3,985,613 0 0 0 0 0 0 0 0 0 0
Up 100 3,985,613 0 0 0 0 0 0 0 0 0 0
Up 200 3,985,613 0 0 0 0 0 0 0 0 0 0
Up 300 3,985,613 0 0 0 0 0 0 0 0 0 0
Up 400 3,985,613 0 0 0 0 0 0 0 0 0 0
Shocked Annual Portfolio Cash Flows
21 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Annual Shocked As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Monthly Base
Cash Flow Analysis
Monthly Cash Flows by Sector (Base)
Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Total % of Total Portfolio
Treasury/Agency 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
MBS Fixed 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
ARM 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
CMO Fixed 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
CMO Floating 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Agency CMBS 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Small Business 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Private Label 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Municipal 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Corporate 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
CD 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0%
Other 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613 100.0%
Total 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613 100.0%
% of Total Portfolio 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% Monthly Cash Flows by Sector (Base)
22 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Monthly Base Case As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Monthly Shocked
Cash Flow Analysis
Shocked Monthly Portfolio Cash Flows (Year 1)
Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Total Down 400 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613
Down 300 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613
Down 200 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613
Down 100 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613
Base 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613
Up 100 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613
Up 200 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613
Up 300 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613
Up 400 3,985,613 0 0 0 0 0 0 0 0 0 0 0 3,985,613
Change in Monthly Cash Flows from Base (Year 1)
Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Total Down 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Shocked Monthly Portfolio Cash Flows (Year 2)
Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27 Jul-27 Aug-27 Sep-27 Oct-27 Nov-27 Dec-27 Total Down 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Base 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Change in Monthly Cash Flows from Base (Year 2)
Jan-27 Feb-27 Mar-27 Apr-27 May-27 Jun-27 Jul-27 Aug-27 Sep-27 Oct-27 Nov-27 Dec-27 Total Down 400 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Down 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 100 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 200 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 300 0 0 0 0 0 0 0 0 0 0 0 0 0
Up 400 0 0 0 0 0 0 0 0 0 0 0 0 0
23 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Monthly Shocked As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Yield Forecaster
Cash Flow Analysis
Down 100 (3.22% Assumed Reinvestment Rate)¹
Principal Cash
Flow
Cuml. Pay
Down
Rolloff
Yield
Rem. Port.
Yield
Reinvest
Port. Yield
3,985,613 100.0% 4.02 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
0 100.0% 0.00 0.00 3.22
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
Jul-26
Aug-26
Sep-26
Oct-26
Nov-26
Dec-26
Jan-27
Feb-27
Mar-27
Apr-27
May-27
Jun-27
Jul-27
Aug-27
Sep-27
Oct-27
Nov-27
Dec-27
Jan-28
Feb-28
Mar-28
Apr-28
May-28
Jun-28
Jul-28
Aug-28
Sep-28
Oct-28
Nov-28
Dec-28
Base Case (4.22% Assumed Reinvestment Rate)¹
Principal Cash
Flow
Cuml. Pay
Down
Rolloff
Yield
Rem. Port.
Yield
Reinvest
Port. Yield
3,985,613 100.0% 4.02 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
0 100.0% 0.00 0.00 4.22
Up 100 (5.22% Assumed Reinvestment Rate)¹
Principal Cash
Flow
Cuml. Pay
Down
Rolloff
Yield
Rem. Port.
Yield
Reinvest
Port. Yield
3,985,613 100.0% 4.02 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
0 100.0% 0.00 0.00 5.22
¹ Base reinvestment set at 5 Year Treasury rate +50 basis points 24 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Yield Forecaster As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Gap Analysis - Potential Income Impact of Principal Reinvestment Cash Flow Analysis
Assumed Estimated Income Resulting
Reinvestment Annualized Difference From Book
Yield Income Current Book Yield
0.25 10 -150 0.25
0.50 20 -140 0.50
0.75 30 -130 0.75
1.00 40 -120 1.00
1.25 50 -110 1.25
1.50 60 -100 1.50
1.75 70 -90 1.75
2.00 80 -80 2.00
2.25 90 -70 2.25
2.50 100 -60 2.50
2.75 110 -50 2.75
3.00 120 -40 3.00
3.25 130 -31 3.25
3.50 139 -21 3.50
3.75 149 -11 3.75
4.00 159 -1 4.00
4.25 169 9 4.25
4.50 179 19 4.50
4.75 189 29 4.75
5.00 199 39 5.00
5.25 209 49 5.25
5.50 219 59 5.50
5.75 229 69 5.75
6.00 239 79 6.00
6.25 249 89 6.25
6.50 259 99 6.50
6.75 269 109 6.75
7.00 279 119 7.00
7.25 289 129 7.25
7.50 299 139 7.50
7.75 309 149 7.75
8.00 319 159 8.00
Principal Maturing (12 Mo Horizon) 3,986
Current Book Yield of Principal Maturing 4.02%
Estimated Annual Income at Current Book Yield $160
25 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Gap Analysis As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Projected Call and Maturity Report
Cash Flow Analysis
Book Yld @ Projected Call / Maturity Date
Description CUSIP Maturity
Next Call
Date Coupon
Current
Face Gain/Loss Book -400 -300 -200 -100 Base +100 +200 +300 +400 Projected Call and Maturity Dates by Rate Scenario (Next 12 Months) 26 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Cashflow Analysis > Expected Call Report As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Supplemental Analysis
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Key Portfolio Sorts
Sector Supplemental Analysis
Par Book Mkt Yld @ % Px Δ $ Amt Δ G/L Eff
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book WAL +300 +300 +300 Dur INT PLMDLLA1F Cash & Other STATE OF CALIFORNIA LOCAL 4.05 01/31/26 3,985,613 100.00 100.00 4.02 0.1 -0.3 -9,980 -9,980 0.1 AFS
4.05 3,985,613 100.00 100.00 4.02 0.1 -0.3 -9,980 -9,980 0.1 Top 10 Up 300 Market Value Changes (%)
Top 10 Up 300 Market Value Changes ($)
Par Book Mkt Yld @ % Px Δ $ Amt Δ G/L Eff
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book WAL +300 +300 +300 Dur INT PLMDLLA1F Cash & Other STATE OF CALIFORNIA LOCAL 4.05 01/31/26 3,985,613 100.00 100.00 4.02 0.1 -0.3 -9,980 -9,980 0.1 AFS
4.05 3,985,613 100.00 100.00 4.02 0.1 -0.3 -9,980 -9,980 0.1 29 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Supplemental Analysis > Key Portfolio Sorts As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Key Portfolio Sorts
Sector Supplemental Analysis
Par Book Mkt Yld @ % Px Δ $ Amt Δ G/L Eff
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book WAL +300 +300 +300 Dur INT PLMDLLA1F Cash & Other STATE OF CALIFORNIA LOCAL 4.05 01/31/26 3,985,613 100.00 100.00 4.02 0.1 -0.3 -9,980 -9,980 0.1 AFS
4.05 3,985,613 100.00 100.00 4.02 0.1 -0.3 -9,980 -9,980 0.1 Top 10 Marked To Market Up 300 Loss Positions
Top 10 Average Life Extension Up 300bps
Par Book Mkt Yld @ % Px Δ Eff WAL Chg in
CUSIP Sector Description Cpn Maturity Value Price Price G/L Book +300 Dur WAL +300 WAL INT PLMDLLA1F Cash & Other STATE OF CALIFORNIA LOCAL 4.05 01/31/26 3,985,613 100.00 100.00 4.02 -0.3 0.1 0.1 0.1 0.0 AFS
4.05 3,985,613 100.00 100.00 4.02 -0.3 0.1 0.1 0.1 0.0
30 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Supplemental Analysis > Key Portfolio Sorts As of: 12/2025, Created: 1/13/2026 11:26:47 AM
CUSIP Details
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Security Details - Other Sector
CUSIP Details
Coupon % Price Change
CUSIP FAS Description Structure Current Type Rate Next Step Maturity Book
Price
Yld @
Book
Mkt
Price Gain/Loss G/L % Avg Life -100 +100 +300 Eff Dur
PLMDLLA1F AFS STATE OF CALIFORNIA LOCAL Bullet 3,985,613 Fixed 4.050 1/31/26 100.00 4.02 100.00 0 0.0% 0.1 0.1 -0.1 -0.3 0.1 TOTAL OTHER 3,985,613 4.050 1/31/26 100.00 100.00 0 0.0% 0.1 0.1 -0.1 -0.3 0.1 33 of 42 City of Palmdale - Successor Agency - Palmdale, CA : CUSIP Details As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Scenario Yield and Price Analysis
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Interest Rate Risk / Reward - Other Sector
Scenario Yield and Price Analysis
Book Projected Yield At Book Price % Change in Market Price CUSIP Description Value Price
Market
Price -400 -300 -200 -100 Base +100 +200 +300 +400 -400 -300 -200 -100 +100 +200 +300 +400 PLMDLLA1F STATE OF CALIFORNIA LOCAL AGENCY I 3,985,613 100.00 100.00 4.02 4.02 4.02 4.02 4.02 4.02 4.02 4.02 4.02 0.3 0.3 0.2 0.1 -0.1 -0.2 -0.3 -0.3 TOTAL OTHER SECTOR 3,985,613 100.00 100.00 4.02 4.02 4.02 4.02 4.02 4.02 4.02 4.02 4.02 0.3 0.3 0.2 0.1 -0.1 -0.2 -0.3 -0.3 * n.m.: Yield not meaningful
36 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Scenario Yield and Price Analysis As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Addendum
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Addendum
Portfolio Exceptions
Exception Sub Sub Sub Security Current Book Market
Description CUSIP Sector Sector Sector Description Par Price Price No bonds were excluded from your portfolio
Portfolio Exceptions
Portfolio Exceptions Summary
Total Excluded Included Excluded Total Excluded Included Excluded Current Par Current Par Current Par Pct Count Count Count Pct 3,985,613 0 3,985,613 0.00% 1 0 1 0.00%
39 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Addendum As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Addendum
Disclaimer and Notes
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Applied Notes
Date Requested 01/13/2026 The Performance Profile was requested on this date Book Date 12/31/2025 The portfolio's book (holding) price is as of this date As-Of Date 12/31/2025 Market pricing for this portfolio is as of this date.
Call Report n.a. Most recent institution call report available on Date Requested Risk Manager n.a. The most recent Risk Manager information as of Date Requested Tax Rate Applied 21.00% Adjustable, defaults to 21.00% C-Corp Bank, 29.60% S-Corp Bank, 0.00% Credit Union Cost of Funds 1.0% Used to calculate Tax-Equivalent Yields where appropriate for depositories TEFRA Tax-Free Munis C-Corp Bank (20% BQ, 100% GM); S-Corp Bank (0% BQ, 100% GM); all else n.a.
Portfolio Statistics 01/13/2026 The most recent Stifel portfolio summary statistics as of Date Requested 40 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Addendum > Disclaimer and Notes As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Addendum
Key Terms and Definitions
Term Definition
Adjustment Frequency For adjustable-rate mortgages (ARMs), the number of months between the loan’s or security’s coupon adjustment dates. GNMA ARMs adjust annually in one of the following months: January, April, July, or October; FNMA and FHLMC issues also usually have annual reset dates although the adjustment dates occur at any time during the year.
Book Yield Usually provided from Bond Accounting reports and represents the Annualized yield to maturity (or call) based on the book value of a bond and projected cash flows. Similar to “Projected Yield at Book” except 3mo Historical Speeds are commonly employed in calculating Book Yield for amortizing securities rather than a forward looking estimate.
Collateral Assets that are used to secure payment of certain bonds, for example, real estate is a source of collateral for mortgage backed securities.
Coupon The stated interest rate on a bond that is used to calculate interest payments that are payable to bond holders. A coupon rate of interest can be fixed over the life of the bond or a variable rate of interest that is calculated using a formula described in the offering documents. Floating coupon rates are generally a simple spread (or margin) relative to a stated index (such as LIBOR). Many bonds include caps and floors on the coupon interest rate and some contain more complex formulas.
Convexity An incremental measure (along with the linear measure of duration) to capture the curvature of a bond’s price/yield relationship. Practically, negative convexity indicates the upside price of a bond is limited if rates fall due to embedded options (mortgage prepayments or an issuers ability to call the bond).
Current Face (Par Amount) Computed by multiplying the original face by the current factor, represents principal remaining for an investor to receive.
Current Index The level of the index at a specified moment in time that is used in conjunction with the margin to establish the security’s coupon.
Effective Duration Or “option-adjusted duration” measures interest rate risk of a security considering the impact of optionality and possible changes in future interest rates. It is calculated by averaging the percentage changes in the security's value under the higher and lower rate environments, while 25bp, 50bp or other sized yield shifts are commonly used, the rate of change is restated as a 100bp equivalent by simple multiplication.
Enhanced Credit Rating A rating that reflects the underlying issue’s standalone credit quality as well as any credit support provided by a state credit enhancement program.
Factor Relevant for bonds that pay amortizing principal to bond holders. The factor equals the percentage of the original face that is outstanding.
Floor For adjustable-rate securities, it is the lowest level to which a coupon can fall over the life of the security Forward Curve The forward curve is a graph that defines the prices (yields) at which a contract for future delivery or payment can be concluded today, it represents a term structure of forward rates.
Gross WAC The weighted-average mortgage rate of all the loans in a pool.
Initial Reset Date The date on which an adjustable-rate mortgage (ARM) or underlying mortgage in an ARM pool can reset for the first time.
Internal Rate of Return A sector or portfolio yield to expected maturity based on the portfolio's expected cash flows, treated as a single instrument. The reflects the overall yield to expected maturity of the portfolio, not a monthly earnings rate. On a single bond, IRR is the same as yield.
Lifetime Cap For adjustable-rate securities, it is the highest level that a coupon may attain over the life of the security.
Margin The amount added to the index of a floating rate loan or security (such as an adjustment rate mortgage security) in order to calculate a coupon rate of interest.
Market Yield The yield of a bond at current market price. For a bond you own, an indication of what yield the market will pay you today for the bond.
Months to Roll (MTR) Months remaining until a bond’s coupon will next reset Pay Window For CMO’s, the expected date range to receive principal payments.
Prepay Speeds Prepayments occur when a servicer receives principal payments above the scheduled amount. The velocity of the prepayments is measured using prepayment speeds, typically measured using conditional prepayment rate (CPR) or prepayment speed assumption (PSA).
Price Volatility The percentage change in price for a given a change in interest rates. Price volatility is generally calculated using a parallel, instantaneous shock in a benchmark yield curve assuming constant spreads relative to the benchmark curve.
Projected Call The date at which a callable bond is projected to be redeemed at a given level of interest rates. All things equal, higher rates should extend the date and lower rates should accelerate the redemption date.
Projected Yield at Book Annualized yield to maturity (or call) based on the book value of a bond and projected cash flows given the market conditions at the time of the analysis.
Roll Date The date (or weighted average date) that a bond’s coupon can reset Static Cash Flow Gap Estimate In the absence of more robust Earnings at Risk simulations, an estimate of how sensitive a depository’s margin is to movements in interest rates by comparing the amount and sensitivity of repricing Assets and Liabilities. A positive gap indicates more assets repricing than liabilities (asset sensitive) and a negative gap indicates more liabilities repricing than assets (liability sensitive).
Tranche Class of debt securities issued as part of a bond instrument, each part (tranche) characterized by a unique set of features such as maturity, interest (coupon) rate, interest payment date, to suit the needs of different investors.
Underlying Credit Rating A rating issued by an agency assessing the ability of an issuer to repay its debt. The assessment of creditworthiness is based solely on the obligor and does not include enhancements from a third party.
Weighted Average Life (WAL) The weighted-average time in years that the principal of a security is expected to be outstanding. For mortgage securities and callable bonds, average life varies with prepayment speeds and yield curve assumptions.
Weighted Average Loan Age (WALA) The average age of all mortgages in a pool, weighted by current balance.
Weighted Average Maturity (WAM) The average remaining maturity of the underlying mortgages in a pool, weighted by current balance.
Yield at Book Price On a sector or portfolio summary level, this is a book value-weighted average yield. It reflects expected earnings in the current month. Over time, relatively low (or high) yields may mature, increasing (or decreasing) subsequent months' expected earnings versus the initial weighted average.
Yield Contribution For a given a sectors weight, how much yield does it contribute to the overall portfolio. 41 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Addendum > Key Terms As of: 12/2025, Created: 1/13/2026 11:26:47 AM
Addendum
Key Terms and Definitions
Yield to Maturity (YTM) The single yield that makes the present value of the cash flows to maturity equal to the price plus accrued interest.
Yield to Call (YTC) The single yield that makes the present value of the cash flows to the call date equal to the price plus accrued interest.
Yield to Worst (YTW) The lower of the yield to maturity and the yield to call. 42 of 42 City of Palmdale - Successor Agency - Palmdale, CA : Addendum > Key Terms As of: 12/2025, Created: 1/13/2026 11:26:47 AM
City Council Staff Report
DATE: FEBRUARY 3, 2026
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: OPERATIONS DEPARTMENT
FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2026 -004, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE , DISSOLVING THE
PALMDALE CIVIC AUTHORITY
RECOMMENDATION
Staff recommend that the City Council:
1. Adopt Resolution No. CC 2026 -004, a Resolution of the City Council of the City of Palmdale, dissolving the Palmdale Civic Authority.
BACKGROUND
The Palmdale Civic Authority (PCA) was established in 1976 as a Joint Powers Authority (JPA) between the City of Palmdale and the Community Redevelopment Agency of the City of Palmdale pursuant to a Joint Powers Agreement. The purpose of the PCA was to support civic and redevelopment -related activities consistent with the objectives of the former redevelopment agency.
The governing structure of the PCA is set forth in its Amended and Restated Bylaws, which provide that the Authority is governed by a five -member Board of Directors consisting of the members of the Palmdale City Council. The Bylaws further establish the Authority’s officers, meeting requirements, and operational framework, and expressly contemplate the dissolution of the Authority under specified conditions.
In 2012, the Community Redevelopment Agency of the City of Palmdale was dissolved pursuant to State law, and the City of Palmdale became the successor agency, assuming responsibility for the former agency’s assets and obligations. Since that time, the Authority has had no active operational role. According to City records, the entity currently has no outstanding indebtedness, no assets, no liabilities, no ongoing activities, and is not a party to any material contracts.
Report to Mayor and City Council
Re: Adopt Reso. No. CC 2026-004 Dissolving the Palmdale Civic Authority February 3, 2026
Article IV, Section 3 of the Amended and Restated Bylaws authorizes dissolution of the Authority with the approval of all Members, provided that at the time of dissolution the Authority has no outstanding indebtedness and is not a party to any outstanding material contracts. Upon dissolution, any remaining assets, after payment or provision for payment of liabilities, are to be distributed to the Members of the Authority.
Government Code section 6510 further authorizes the termination of a JPA upon completion of its purposes or when it is no longer necessary.
DISCUSSION
The proposed Resolution would formally dissolve the Palmdale Civic Authority, consistent with the requirements of the Joint Powers Agreement, the PCA Bylaws, and applicable provisions of the California Government Code. As documented in the Resolution, the Authority no longer serves an operational purpose, as the Community Redevelopment Agency, one of its founding members, has been dissolved, and the City of Palmdale now serves as the successor agency.
Staff has confirmed that the PCA has no outstanding debts, liabilitie s, assets, or contractual obligations. Accordingly, the conditions required for dissolution under Article IV, Section 3 of the Amended and Restated Bylaws have been satisfied. Because there are no assets or liabilities to distribute, dissolution will not r esult in any fiscal or operational impacts to the City.
Adoption of the Resolution will allow the City to formally conclude the Authority's existence, eliminate an inactive governmental entity, and ensure that City records accurately reflect the current organizational structure. The action does not affect any obligations or assets of the City in its role as successor agency and pertains solely to the formal dissolution of the Palmdale Civic Authority.
FISCAL IMPACT
$0; There is no fiscal impact associated with the recommended action.
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.
Report to Mayor and City Council
Re: Adopt Reso. No. CC 2026-004 Dissolving the Palmdale Civic Authority February 3, 2026
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 2026-004
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2026-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE,
CALIFORNIA, DISSOLVING THE PALMDALE CIVIC AUTHORITY
WHEREAS, The Palmdale Civic Authority (PCA) was established as a joint powers authority (JPA) between the City of Palmdale and the Community Redevelopment Agency of the City of Palmdale pursuant to a Joint Powers Agreement dated May 1, 1976;
WHEREAS, The Community Redevelopment Agency of the City of Palmdale has been dissolved, and its assets and obligations are now managed by its successor agency, the City of Palmdale , pursuant to Resolution No. CC 2012-002;
WHEREAS, The PCA currently has no outstanding indebtedness, on-going activities, assets, or liabilities and is not a party to any outstanding material contracts;
WHEREAS, It is in the best interest of the City to formally dissolve the PCA in accordance with the JPA agreement and Gover nment Code section 6510.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palmdale as follows:
SECTION 1. Recitals: The City Council hereby specifically finds that all of the facts set forth in the Recitals are true and correct and constitute the finding of the City Council in this matter.
SECTION 2 . The City Council hereby dissolves the Palmdale Civic Authority effective immediately.
SECTION 3. The City Manager, City Clerk, or other designated officials are authorized and directed to take all necessary administrative actions to effectuate the dissolution, including but not limited to updating official records to reflect that the PCA is no longer an active JPA and retaining all records of the PCA for historical and audit purposes.
Resolution No. CC 2026-004
SECTION 4. This resolution does not affect any obligations or assets of the successor agency, and it pertains solely to the PCA.
SECTION 5. This resolution shall take effect immediately upon its adoption.
SECTION 6. The City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED, and ADOPTED this 3rd day of February, 2026.
_________________________________
Eric Ohlsen, Mayor
Approved as to form: ATTEST:
___________________________ _________________________________ Alexandra Severino, City Attorney Rochelle Scott, City Clerk
I, Rochelle Scott, City Clerk of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 3rd day of February, 2026 by the following roll call vote:
AYES:
NOES:___________________________________________________________
ABSTAIN:______________________ABSENT:__________________________
Date:
Rochelle Scott, City Clerk
City Council Staff Report
DATE: FEBRUARY 3, 2026
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: OPERATIONS DEPARTMENT
HUMAN RESOURCES DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE CITY MANAGER RECRUITMENT UPDATE
RECOMMENDATION
Staff recommend that the City Council:
1. Receive and file the City Manager Recruitment Update.
BACKGROUND
On October 7, 2025 , staff were directed to initiate a recruitment for the City Manager position. On October 21, 2025, the City Council appointed an ad hoc subcommittee comprised of two Councilmembers to provide guidance and direction to staff throughout the recruitment process. The final hiring decision will be made by the full Council . The ad hoc subcommittee will be dissolved once the recruitment and appointment of a new City Manager is complete.
DISCUSSION
Under the subcommittee's guidance, staff initiated a nationwide recruitment effort . The recruitment opened for applicants on November 24, 2025, and closed on December 31, 2025. The position was advertised on Government Jobs, a nationwide recruiting platform, as well as on relevant professional organization job boards, including the International City Manager Association (ICMA), League of California Cities, and California City Management Foundation (CCMF).
A total of 48 applications were received. Thirteen applicants met the minimum qualifications, while 35 did not. Minimum qualifications, as advertised in the recruitment, include a combination of education and experience, including:
Report to Mayor and City Council
Re: City Manager Recruitment Update
February 3, 2026
Education:
Bachelor’s degree from an accredited university in Public Administration, Business Administration, or a closely related field. A master’s degree in Public Administration , Business Administration, or a closely related field is highly desirable.
Experience:
Minimum of eight (8) to ten (10) years of progressively responsible leadership experience in municipal government or comparable public-sector organization, including three (3) years in a City Manager or Assistant City Manager role.
Employment will be contingent upon the successful completion of a comprehensive background investigation, which may include:
Employment history verification;
Criminal background check;
Credit and financial responsibility review (as permitted by law); Education and credential verification;
Social media check; and,
Reference check.
Application materials for candidates who met the minimum qualifications are currently under review.
FISCAL IMPACT
$0; There is no fiscal impact associated with this action.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
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
None
City Council Staff Report
DATE: FEBRUARY 3, 2026
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 4
SUBJECT: APPROVE AGREEMENT WITH ONWARD ENGINEERING FOR
CONSTRUCTION MANAGEMENT AND OBSERVATION SERVICES
FOR PN 869-A, ARTERIAL ROAD REHABILITATION AT PALMDALE
BOULEVARD PROJECT, FOR A TOTAL NOT TO EXCEED AMOUNT
OF $267,174 FOR A TERM OF 150 WORKING DAYS FROM THE
DATE OF THE NOTICE TO PROCEED
RECOMMENDATION
Staff recommend that the City Council:
1. Approve Agreement No. A -9641 with Onward Engineering for Construction Management and Inspection Services for PN 869-A, Arterial Road Rehabilitation at Palmdale Boulevard Project (Project), for a total not to exceed amount o f $267,174, which includes a contract amount of $232,325, plus a 15% contingency amount of $34,849 for a term of 150 working days from the date of the Notice to Proceed;
2. Authorize the Interim City Manager or his designee to execute Agreement No. A- 9641 with Onward Engineering , 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 15% contingency amount approved by the Council.
BACKGROUND
The Arterial Road Rehabilitation Project proposes repairing Palmdale Boulevard between 50th Street East and 70th Street East . The improvements include Pavement Rehabilitation and Full Depth Reclamation along Palmdale Boulevard . Onward Engineering will assist the City’s Project Manager with the following:
Report to Mayor and City Council
Re: Approve Agrmt No. A-9641 with Onward Engineering for PN 869-A February 3, 2026
Assist the City’s Project Manager throughout the project; Perform constructability review of plans, specifications, and cost estimates (PS&E);
Lead and coordinate construction meetings with the contractor and stakeholders; Conduct community outreach and provide project updates in English and Spanish;
Respond to public inquiries and concerns as needed during construction; Track and process RFIs and coordinate materials submittals; Perform material and geotechnical testing;
Provide construction inspection and reporting;
Track project schedule;
Review and recommend approval of contractor payment requests; Review, negotiate, and recommend approval of contract change orders; Coordinate with utilities and external agencies;
Ensure contractor labor compliance; and,
Manage project records.
The City prefers the same team to remain in place from the start of construction through project closeout to ensure continuity.
DISCUSSION
The Project was publicly advertised for construction bids via the PlanetBids electronic platform on October 9, 2025, with ten (10) vendors registered as prime contractors. On November 10, 2025, six (6) bids for this project were received and are listed below:
Rank Vendor Location Proposal Fee
1 Onward Engineering Anaheim, CA $232,325.00
2 LAE Associates, Inc. Placentia, CA $249,239.00
3 MNS Engineers, Inc. Santa Barbara, CA $422,287.00
4 Engineering Resources of So Cal, Inc. Redlands, CA $315,060.00 5 Z&K Consultants, Inc. Riverside, CA $155,776.00
6 Southstar Engineering & Consulting, Inc. Riverside, CA $492,333.42
References have been checked, and s taff recommend that the City Council approve Project No. 8 69-A to Onward Engineering in the amount of $232,325 with an allowed 15% contingency.
FISCAL IMPACT
$267,174; The Project is utilizing SB1 Funding.
Report to Mayor and City Council
Re: Approve Agrmt No. A-9641 with Onward Engineering for PN 869-A February 3, 2026
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
ATTACHMENTS
Agrmt No. A-9641 with Onward Engineering
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
AGREEMENT NO. A-9641
CONTRACT FOR CONSULTANT SERVICES
BETWEEN THE CITY OF PALMDALE AND ONWARD ENGINEERING
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 ONWARD ENGINEERING (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:
Onward Engineering will assist the City’s Project Manager with the following:
Providing a constructability review of the design plans, specifications and cost estimate (PS&E); overseeing construction coordination meetings with the contractor and stakeholders; community outreach in multi-language (English and Spanish), project updates, respond to inquiries and concerns through the duration of the project and as deemed necessary, track and process request for information, coordination of materials submittals; conduct material/geotechnical testing, providing construction inspection and reporting; schedule tracking; review and recommend approval of contractor payment requests; review, negotiate, and recommend approval of contract change orders; coordination with utilities and other agencies; assuring contractor labor compliance; and records management.
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. 1-12Concord - Document ID: generated after first signature
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:
*Delfino Consunji, Construction Manager *Kevin Green, Construction Observer *Syed Murtuza Ahmed, Assistant Construction Manager *Aragon Geotechnical Investigation and Testing, Sub-Consultant
This Consultant Services Contract has been awarded to CONSULTANT based on its representation that those personnel and subcontractors listed above will perform the portions of the work listed herein. CONSULTANT shall not deviate nor substitute any of these team members without prior written approval by CITY. 4 CONTRACT TERM
The term of this contract is One (1) Year, commencing on the effective date, with CITY reserving the option to extend the agreement for 0 additional terms of one year each.
5 TAXES
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.
2-12Concord - Document ID: generated after first signature 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 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, 3-12Concord - Document ID: generated after first signature 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 Thirty-Two Thousand Three-Hundred Twenty-Five dollars ($232325), payable as follows:
See attached "Exhibit A" Fee Schedule.
The Contract Price is CONSULTANT’S estimate of its charges for all of the services, including all labor, equipment, material, subcontractor and reimbursable costs, to be provided under this Agreement. Progress payments shall be made on a time and material basis. Final payment shall be made upon completion of all services and City acceptance of all deliverables, not-to-exceed the Contract Price.
9.2 CONSULTANT shall perform no work in excess of the total contract price without prior written approval of CITY. Total contract price includes expenses related to travel to and from CITY to meet with City and to appear, if so required, before City Council or any other board or commission of CITY.
9.3 CONSULTANT shall maintain adequate records and shall permit inspection and audit by CITY of CONSULTANT’s charges under this Contract. CONSULTANT shall make such records available to CITY during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records, and they will be available only to CITY and any specified public agencies. Such records shall be maintained by CONSULTANT for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONSULTANT shall retain its records for the time required by such laws.
9.4 No payment made hereunder by CITY to CONSULTANT, shall be construed as an acceptance by CITY of any work or materials, nor as evidence of satisfactory performance by CONSULTANT of its obligations under this Contract. 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 4-12Concord - Document ID: generated after first signature or passive) of any person or entity indemnified hereunder. At their own expense, CONSULTANT and, as applicable, any contractors or subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONSULTANT shall ensure that the contract of any contractor or subcontractor working under this agreement contain an indemnity agreement, requiring the contractor or subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONSULTANT shall indemnify the Indemnified Parties, and save it harmless from any and all loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
11 INSURANCE
11.1 CONSULTANT, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California.
Proof of Insurance, as identified in Section 11.8, must be reviewed and accepted by the City Attorney.
11.1.1 Workers’ Compensation and Employer’s Liability
Workers’ Compensation—coverage as required by the State of California Employer’s Liability:
$1,000,000.00 each accident
$1,000,000.00 policy limit bodily injury
$1,000,000.00 each employee bodily injury by disease
11.1.2 Professional Liability (Errors & Omissions) Insurance* $1,000,000 limit on a per occurrence basis
11.1.3 Commercial General Liability
$1,000,000.00 limit on a per occurrence basis
$2,000,000.00 general aggregate limit
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:
5-12Concord - Document ID: generated after first signature A. An endorsement extending coverage to the City as an additional insured, in the same manner as the named insured, as respects liability arising out of the performance of any work under the Contract. Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The certificate and endorsements shall state: “The City of Palmdale, the Successor Agency of the Community Redevelopment Agency of the City of Palmdale, Palmdale Civic Authority, Industrial Development Authority of the City of Palmdale, Palmdale Airport Authority, their officers, agents, employees and volunteers are named as additional insured’s.”
B. “Severability of Interest” clause.
11.4 Promptly on execution of this Contract, and prior to commencement of any work, CONSULTANT shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONSULTANT has the required coverage and showing the required named insureds. Within five (5) days of written request from CITY, CONSULTANT shall deliver to CITY full and complete copies of all insurance policies required by this Contract.
11.5 The requirements as to the types and limits of insurance to be maintained by CONSULTANT are not intended to and shall not in any manner limit or qualify CONSULTANT’s liabilities and obligations under this Contract.
11.6 Any policy or policies of insurance that CONSULTANT elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.
11.7 All insurance coverage must be maintained throughout the duration of this Contract.
11.8 Acceptable Proof of Insurance:
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. 6-12Concord - Document ID: generated after first signature
11.8.3 *When professional (E&O) liability coverage is provided on a “claims made basis”, CONSULTANT will continue to renew the insurance for a period of five (5) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT, or its officers, employees, or agents during the time this Agreement was in effect.
11.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time CONSULTANT fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.
11.10 CONSULTANT shall require any and all subcontractor's working on its behalf to provide insurance coverages and limits that are based on the scope of work and nature of risk being performed by the subcontractor. Any and all subcontractors working on behalf of CONSULTANT shall be subject to all other insurance requirements that are stated herein.
Any deviation in this requirement will be CONSULTANT's sole risk. CONSULTANT's insurance requirements in Section 11 will not be impacted and/or limited by such deviation.
12 TERMINATION WITHOUT CAUSE
CITY reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, CONSULTANT shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and sub-consultants to cease such work. CONSULTANT shall also surrender to CITY all finished or unfinished documents or programs and other materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the CONSULTANT shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
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.
7-12Concord - Document ID: generated after first signature
13.2 In the event the City terminates this Contract in whole or in part as provided herein above, the City may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.
13.3 If this Contract is terminated as provided above, the City may require the CONSULTANT to provide all finished or unfinished documents, data, studies, software, drawings, maps, photographs, reports, etc., prepared by the CONSULTANT. Upon such termination, the CONSULTANT shall be paid an amount equal to the value of the services provided and work performed as of the date of termination. Such payment by the City may take into consideration the costs associated with hiring another CONSULTANT to complete the services. In the event no new CONSULTANT is employed, the CONSULTANT shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete documents when such are delivered to CITY, and to authorized reimbursement expenses.
The above is in addition to any other remedies available by law or equity to the City.
13.4 If, after notice of termination of the Contract under the provisions of this Section 13, it is determined, for any reason, that CONSULTANT was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 12. 14 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and CONSULTANT arising out of, or relating to this Contract, or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 15 OWNERSHIP OF DOCUMENTS
All documents, including, but not limited to, research, field notes, investigations, analysis, and studies which are prepared in the performance of this Contract are to be, and remain the property of CITY. CONSULTANT shall furnish CITY, upon its 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 8-12Concord - Document ID: generated after first signature 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. 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
9-12Concord - Document ID: generated after first signature
19.1 CONSULTANT stipulates that its officers and employees do not now have a conflict of interest and it further agrees for itself, its officers and its employees that it will not contract for or accept employment for the performance of any work or services with any individual business, corporation or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Contract or which would cause CONSULTANT to be “financial interested” (as provided in California Government Code Section 1090 et seq. or 87100 et seq.) in any contract or decision made by CITY on any matter.
19.2 CONSULTANT shall not employ any City official or employee to perform any work required pursuant to this Contract.
19.3 If CONSULTANT is a registered professional engineer or licensed land surveyor and the scope of work requires CONSULTANT’S recommendation of the actual formula to spread the costs of an assessment district’s improvements, then CONSULTANT shall not participate in making that recommendation if the additional elements set forth in Government Code section 87100.1(c) apply. Those additional elements are: (1) CONSULTANT has received income of $250 or more for professional services in connection with any parcel included in the benefit assessment district within 12 months prior to the creation of the district; and (2) the district includes other parcels in addition to those parcels for which CONSULTANT received the income. In the event a conflict of interest does arise in that context, City shall select a different CONSULTANT to recommend the actual formula to spread the costs of the assessment district’s improvements and the costs of such services shall be deducted from the compensation to be paid to CONSULTANT.
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 10-12Concord - Document ID: generated after first signature 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. 11-12Concord - Document ID: generated after first signature
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: ONWARD ENGINEERING:
Salvador Mendez
Interim City Manager
Muhammad Ataya, MPA
Vice President
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550
ADDRESS FOR NOTICE:
ONWARD ENGINEERING
300 S. Harbor Boulevard, Suite 814
Anaheim, CA 92805
APPROVE AS TO FORM:
Alexandra Severino
City Attorney
ATTEST:
Roxanne Faber
City Clerk
---------------------------------------- INTERNAL USE ONLY ----------------------------------------
□Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) □Attached Agreement Checklist and met all requirements
12-12Concord - Document ID: generated after first signature
City Council Staff Report
DATE: FEBRUARY 3, 2026
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 1
SUBJECT: APPROVE AGREEMENT WITH MAESTRO DEVELOPMENT , LLC,
FOR CONSTRUCTION MANAGEMENT AND OBSERVATION
SERVICES FOR PN 851, MELVILLE J. COURSON PARK
REVITALIZATION PROJECT FOR A TOTAL NOT TO EXCEED
AMOUNT OF $456,500 FOR A TERM OF 360 WORKING DAYS
COMMENCING FROM THE DATE OF THE NOTICE TO PROCEED
RECOMMENDATION
Staff recommend that the City Council:
1. Approve Agreement No. A -9642 with Maestro Development , LLC, Construction Management and Observation Services for P N 851, Melville J. Courson Park Revitalization Project (Project), for a total not to exceed amount of $456,500, which includes a contract amount of $ 415,000, plus a 10% contingency amount of $41,500, for a term of 360 working days from the date of the Notice to Proceed;
2. Authorize the Interim City Manager or his designee to execute Agreement No. A- 9642 with Maestro Development , LLC, including minimal and/or non -substantial changes; and,
3. Authorize the Interim City Manager or h is designee to approve contract amendments for additional or changed scope of work up to the 10% contingency amount approved by the Council.
BACKGROUND
Melville J. Courson Park is located at the corner of 10 th Street East and East Avenue Q-
12. On May 4, 2022, the Council approved the design phase of the Project for renovations to include:
Restroom facility, drinking fountain, storage building, and Pet Waste Station; Playground for 5 to12 year olds;
Challenge course, exercise stations, and fitness zones; Report to Mayor and City Council
Re: Approve Agrmt No. A-9642 with Maestro Development, LLC for PN 851 February 3, 2026
Raised bandstand/stage, plaza paving, and concrete decomposed granite paths; Picnic areas, park furnishings, and shade pavilion;
Therapeutic and meditation garden, security fencing and lighting; Flagpole, Monument sign, and trash enclosures; and,
New irrigation, shade trees, and drought-tolerant landscaping.
The Project has successfully transitioned from the design phase and is now entering the construction phase. Construction Management and Observation Services are needed to oversee the project through construction. In general, construction management and observation services shall provide the following scope of services , including, but not limited to:
Constructability Review: Conducting a final technical evaluation of the design plans to ensure project feasibility before the work begins.
Construction Management and Observation: Managing all phases of construction projects from initial mobilization through final closeout to ensure compliance with plans and specifications and to maintain the construction schedule and stay within the project budget.
DISCUSSION
The City publicly advertised for construction management and observation services for the Melville J. Courson Park Revitalization Project via PlanetBids on August 28, 2025.
While 22 vendors registered as potential consultants, the solicitation closed on October 20, 2025, with nine (9) bidders submitting formal proposals:
Rank Vendor Location Proposal Fee
1. Maestro Development LLC Glendale, CA $ 415,000.00
2. Willdan Engineering Anaheim, CA $ 569,733.00
3. H.W. Lochner Monterey Park, CA $ 617,090.00
Following a comprehensive evaluation including reference checks and interviews, staff recommend that the City Council award the contract for Project No. 851 (Construction Management and Observation services) to Maestro Development, LLC, in the amount of $415,000, plus a 10% contingency amount of $41,500.
FISCAL IMPACT
$456,500; This project is funded using Measure AV and State Park Grant Prop 68 funds.
Sufficient funds are budgeted for the project and are available in FY 2025-26.
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
Report to Mayor and City Council
Re: Approve Agrmt No. A-9642 with Maestro Development, LLC for PN 851 February 3, 2026
C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
ATTACHMENTS
Agrmt No. A-9642 with Maestro Development, LLC
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
AGREEMENT NO. A-9642
CONTRACT FOR CONSULTANT SERVICES
BETWEEN THE CITY OF PALMDALE AND MAESTRO DEVELOPMENT
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 MAESTRO DEVELOPMENT (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:
SCOPE OF SERVICES:
CONSULTANT will provide the City with technical professional services related to the construction of Melville J. Courson Park Revitalization Project (PN 851).
The Consultant shall provide comprehensive construction management and observation services for the duration of the project. Responsibilities include, but are not limited to, the following:
- The Consultant shall conduct a thorough constructability review of the 100% design plans, specifications, and cost estimates. The objective is to provide actionable recommendations that enhance project efficiency and improve overall construction feasibility.
- The Consultant shall develop and implement a public outreach program. This effort will include the coordination and hosting of one (1) virtual public meeting, as well as the development and distribution of formal project notification letters to the community.
- The Consultant shall coordinate with the City Project Manager to assist in the preparation of bid documents and the facilitation of the pre-bid meeting. - Coordinate with the City Project Manager to facilitate the selection of the contractor 1-14Concord - Document ID: generated after first signature for the project's construction phase.
- The Consultant shall manage the preconstruction meeting in coordination with the City Project Manager, including the preparation of materials and stakeholder outreach.
- The Consultant shall provide construction management and observation under the direction of the City Project Manager. This includes monitoring daily contractor activities and maintaining detailed progress records in the VPM system.
The services to be performed under this Agreement are outlined in Exhibits A, B, and C (Maestro’s Proposal, Rate Confirmation, and the PN 851 RFP, respectively), all of which are made part of this contract.
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:
1. Nareg Mouradian, LEED AP - - - - - - Construction Manager
2. Sergeh Eskanderi - - - - - - - - - - - - - Construction Observer
4. John Lett - - - - - - - - - - - - - - - - - - - - Project Executive
5. Steven Yetemian, MS, CPE - - - - - - - Project Control Director This Consultant Services Contract has been awarded to CONSULTANT based on its representation that those personnel and subcontractors listed above will perform the 2-14Concord - Document ID: generated after first signature portions of the work listed herein. CONSULTANT shall not deviate nor substitute any of these team members without prior written approval by CITY. 4 COMMENCEMENT AND COMPLETION OF WORK
The execution of this Contract by the parties does not constitute an authorization to proceed. The services of CONSULTANT shall commence when CITY, acting by and through its Project Manager, has issued an Authorization to Proceed. CONSULTANT shall complete all the work described in Section 1 and submit final deliverables within THREE HUNDRED AND SIXTY (360) WORKING days following CONSULTANT’s receipt of Authorization to Proceed. CONSULTANT shall have no claim for compensation for any services or work, which has not been authorized by CITY’s Authorization to Proceed.
5 TAXES
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
3-14Concord - Document ID: generated after first signature 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 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 Four Hundred Fifteen Thousand dollars ($415000), payable as follows:
FEE SCHEDULE:
1 Constructability Review - - - - - - - - - - - - - - - - - - - - - 150 Hours - - - - - $25,000 2 Meetings (Kick-off, Pre-Bid, PRe-Con, Weekly) - - - - 220 Hours - - - - - $30,000 3 Construction Management (Tasks 3A-3L - - - - - - - 1,300 Hours - - - - $250,000 4 Construction Observation & Reporting - - - - - - - - - 1,000 Hours - - - - - $70,000 5 Geotech/Material Testing Coordination - - - - - - - - - - 100 Hours - - - - - $10,000 6 Survey Verification/Monumentation Oversight - - - - - - 80 Hours - - - - - - $8,000 7 Public Outreach/Notification Letters - - - - - - - - - - - - 120 Hours - - - - - $22,000 Total Estimated Hours: 2,520 Hours
Total Estimated Fee: (Four Hundred Fifteen Thousand Dollars) - - - - $415,000 4-14Concord - Document ID: generated after first signature Title / Role and Rates
Principla / Project Director - - - - - $195.00
Construction Manager - - - - - - - - $175.00
Construction Observer- - - - - - - - $155.00
Project Engineer - - - - - - - - - - - - $135.00
Admin - - - - - - - - - - - - - - - - - - - - $85.00
Fee Schedule details are outlined in "Exhibit B".
The Contract Price is CONSULTANT’S estimate of its charges for all the services, including all labor, equipment, material, subcontractor, and reimbursable costs, to be provided under this Agreement. Progress payments shall be made on a time and material basis. Final payment shall be made upon completion of all services and City acceptance of all deliverables, not-to-exceed the Contract Price.
9.2 CONSULTANT shall perform no work in excess of the total contract price without prior written approval of CITY. Total contract price includes expenses related to travel to and from CITY to meet with City and to appear, if so required, before City Council or any other board or commission of CITY.
9.3 CONSULTANT shall maintain adequate records and shall permit inspection and audit by CITY of CONSULTANT’s charges under this Contract. CONSULTANT shall make such records available to CITY during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records, and they will be available only to CITY and any specified public agencies. Such records shall be maintained by CONSULTANT for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONSULTANT shall retain its records for the time required by such laws.
9.4 No payment made hereunder by CITY to CONSULTANT, shall be construed as an acceptance by CITY of any work or materials, nor as evidence of satisfactory performance by CONSULTANT of its obligations under this Contract. 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, 5-14Concord - Document ID: generated after first signature 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* $2,000,000 limit on a per occurrence basis
11.1.3 Commercial General Liability
$2,000,000.00 limit on a per occurrence basis
$4,000,000.00 general aggregate limit
11.1.4 Commercial Automobile Liability
$2,000,000.00 combined single limit including owned, non-owned and hired automobile coverage
11.2 All of 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:
6-14Concord - Document ID: generated after first signature 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 insureds.”
B. “Severability of Interest” clause.
11.4 Promptly on execution of this Contract, and prior to commencement of any work, CONSULTANT shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONSULTANT has the required coverage and showing the required named insureds. Within five (5) days of written request from CITY, CONSULTANT shall deliver to CITY full and complete copies of all insurance policies required by this Contract.
11.5 The requirements as to the types and limits of insurance to be maintained by CONSULTANT are not intended to and shall not in any manner limit or qualify CONSULTANT’s liabilities and obligations under this Contract.
11.6 Any policy or policies of insurance that CONSULTANT elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.
11.7 All insurance coverage must be maintained throughout the duration of this Contract.
11.8 Acceptable Proof of Insurance:
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) 7-14Concord - Document ID: generated after first signature years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT, or its officers, employees, or agents during the time this Agreement was in effect.
11.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time CONSULTANT fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.
11.10 CONSULTANT shall require any and all subcontractor's working on its behalf to provide insurance coverages and limits that are based on the scope of work and nature of risk being performed by the subcontractor. Any and all subcontractors working on behalf of CONSULTANT shall be subject to all other insurance requirements that are stated herein.
Any deviation in this requirement will be CONSULTANT's sole risk. CONSULTANT's insurance requirements in Section 11 will not be impacted and/or limited by such deviation.
12 TERMINATION WITHOUT CAUSE
CITY reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, CONSULTANT shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and sub-consultants to cease such work. CONSULTANT shall also surrender to CITY all finished or unfinished documents or programs and other materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the CONSULTANT shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
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 (30) days, the CONSULTANT has failed to implement the corrective measures, the CITY may elect to terminate this Contract, in whole or in part.
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13.2 In the event the CITY terminates this Contract in whole or in part as provided herein above, the CITY may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.
13.3 If this Contract is terminated as provided above, the City may require the CONSULTANT to provide all finished or unfinished documents, data, studies, software, drawings, maps, photographs, reports, etc., prepared by the CONSULTANT. Upon such termination, the CONSULTANT shall be paid an amount equal to the value of the services provided and work performed as of the date of termination. Such payment by the City may take into consideration the costs associated with hiring another CONSULTANT to complete the services. In the event no new CONSULTANT is employed, the CONSULTANT shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete documents when such are delivered to CITY, and to authorized reimbursement expenses.
The above is in addition to any other remedies available by law or equity to the CITY.
13.4 If, after notice of termination of the Contract under the provisions of this Section 13, it is determined, for any reason, that CONSULTANT was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 12. 14 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and CONSULTANT arising out of, or relating to this Contract, or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 15 OWNERSHIP OF DOCUMENTS
All documents, including, but not limited to, research, field notes, investigations, analysis, and studies which are prepared in the performance of this Contract are to be, and remain the property of CITY. CONSULTANT shall furnish CITY, upon its 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 9-14Concord - Document ID: generated after first signature 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; and
C. The requirement to hire only those persons authorized by federal law to work in the United States.
16.2 Any assignment, delegation or subcontract shall be made in the name of CONSULTANT and shall not bind or purport to bind CITY and shall not release CONSULTANT from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONSULTANT under this Contract.
17 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY
17.1 In performance of this Contract, CONSULTANT shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, or age. CONSULTANT will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
17.2 The provisions of subsection 17.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONSULTANT for personnel to perform any 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, 10-14Concord - Document ID: generated after first signature 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 Housing Authority/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 twelve (12) months prior to the creation of the district; and (2) the district includes other parcels in addition to those parcels for which CONSULTANT received the income. In the event a conflict of interest does arise in that context, CITY shall select a different CONSULTANT to recommend the actual formula to spread the costs of the assessment district’s improvements and the costs of such services shall be deducted from the compensation to be paid to CONSULTANT.
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 11-14Concord - Document ID: generated after first signature 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. 12-14Concord - Document ID: generated after first signature
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: MAESTRO DEVELOPMENT:
Salvador Mendez
Interim City Manager
Nareg Mouradian, CCM LEED AP
Principal
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550
ADDRESS FOR NOTICE:
MAESTRO DEVELOPMENT
655 North Central Ave, Floor 17
Glendale, CA 91203
APPROVE AS TO FORM:
Alexandra Halfman
City Attorney
ATTEST:
Roxanne Faber
City Clerk
---------------------------------------- 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 Agreement Checklist and met all requirements
14-14Concord - Document ID: generated after first signature
City Council Staff Report
DATE: FEBRUARY 3, 2026
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: ALL
SUBJECT: APPROVE AGREEMENT WITH PACIFIC ADVANCED CIVIL ENGINEERING, INC. , FOR PROFESSIONAL SERVICES FOR PN
788, REGIONAL BASIN INFRASTRUCTURE PROJECT , FOR A
TOTAL NOT TO EXCEED AMOUNT OF $1,508,304 FOR A TERM OF
36 MONTHS FROM THE DATE OF THE NOTICE TO PROCEED
RECOMMENDATION
Staff recommend that the City Council:
1. Approve Agreement No. A -9657 with Pacific Advanced Civil Engineering, Inc. , (PACE) for Professional Services for PN 788, Regional Basin Infrastructure Project, for a total not to exceed amount of $1,508,304, which includes a contract amount of $1,311,569, plus a 15% contingency amount of $196,735 for a term of 36 months from the date of the Notice to Proceed;
2. Authorize the Interim City Manager or h is designee to execute the Agreement No. A-9657 with PACE, including minimal and/or non-substantial changes; and,
3. Authorize the Interim City Manager or h is designee to approve contract amendments for additional or changed scope of work up to the 15% contingency amount approved by the Council.
BACKGROUND
The Anaverde Creek Watershed includes approximately 10,065 acres in the southwestern region of Palmdale. Runoff flows from southwest to northeast, gathering runoff from the Sierra Pelona mountains and lower alluvial plain areas, and ultimately collecting in Anaverde Creek. Peak elevations in the watershed are greater than 5,180 feet, while the outlet of Anaverde Creek at Highway 14 has an elevation of approximately 2,760 feet. Flooding has historically been observed downstream of the creek’s outlet at Highway 1 4, as evidenced by the area being mapped by Federal Emergency Report to Mayor and City Council
Re: Approve Agrmt No. A-9657 with Pacific Advanced Civil Engineering, Inc. for PN 788 February 3, 2026
Management Agency (FEMA) as Flood Zone AO, Flood Plain Map. As a desired outcome of this contract, the City wishes to develop and implement a strategy to mitigate the floodplain, thereby opening this area to future development.
DISCUSSION
On September 26 , 2025, a Request for Qualifications was advertised electronically through PlanetBids to solicit Statements of Qualifications (SOQ) for professional services to update the Anaverde Creek Watershed Master Drainage Plan and the design of drainage basins near Avenue R and Division Street.
On October 27, 2025, the proposal deadline, three (3) Statements of Qualifications were received. These SOQ were eval uated based on five criteria by three reviewers. Each reviewer scored the SOQ independently:
Vendor Location Fees
1. Pacific Advanced Civil Engineering, Inc. Fountain Valley, CA $1,311,869
2. CWE Fullerton, CA $1,157,582
3. Craftwater Engineering, Inc. Pasadena, CA $2,321,383
All firms were invited for an interview and tender ed the fee proposal s. Based on the interviews, qualifications, favorable reference checks , and extensive experience in providing the City with flood protection design services, the staff recommends PACE for the award of the professional services contract for a proposed fee of $1,311,569.
FISCAL IMPACT
$1,508,304; This project is funded using Measure M funding.
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: 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: Approve Agrmt No. A-9657 with Pacific Advanced Civil Engineering, Inc. for PN 788 February 3, 2026
ATTACHMENTS
Agrmt No. A-9657 with Pacific Advanced Civil Engineering, Inc.
Project Map
AGREEMENT NO. A-9657
CONTRACT FOR SERVICES
BETWEEN THE CITY OF PALMDALE AND PACIFIC ADVANCED CIVIL ENGINEERING, INC.
This CONTRACT for services (“Contract” herein) is made and entered into by and between the City of Palmdale, a public body corporate and politic, (hereinafter called “CITY”), and PACIFIC ADVANCED CIVIL ENGINEERING, INC., a Corporation , (hereinafter called “CONTRACTOR”). This Contract shall become effective on the date of the last signatory.
RECITALS
WHEREAS, CONTRACTOR represents that CONTRACTOR has the expertise and is qualified to perform the services described in this Contract.
NOW THEREFORE, CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows:
1 CITY PROJECT MANAGER
To provide the services required by this Contract, CONTRACTOR shall act under the authority and approval of the Department of Public Works Director/designee, who shall oversee this Contract, the work performed by CONTRACTOR, assist CONTRACTOR with any necessary information, audit billings, and approve payments. The CONTRACTOR shall channel all contacts and requests through the City project manager.
2 DESCRIPTION OF WORK
2.1 CONTRACTOR shall provide the following services in a manner satisfactory to CITY:
Civil Engineering services for CITY Project No. PN 788, Regional Basin Infrastructure Project.
CONTRACTOR shall update the Anaverde Creek Watershed Master Drainage Plan and complete the Construction Plan for the final design of drainage basins near Avenue R and Division Street.
Phase 1 - Drainage Study Review and Grant Funding Documentation Phase 2 - Hydrologic and Hydraulic Modeling Update
Phase 3 - Master Drainage Plan Update
Phase 4 - Final Design and Preparation of Construction Documents Deliverables:
1) A comprehensive engineering plan to reduce flooding
1-14Concord - Document ID: generated after first signature 2) A complete design package ready for construction
3) An authoritative document to support funding opportunities 4) A thorough study to be used in support of environmental impact analysis and reporting
5) A detailed analysis that will support a revision to the FEMA flood insurance rate maps
6) A full set of hydrologic/hydraulic models and documentation of the contributing watershed for existing and future general plan conditions CONTRACTOR's complete Proposal attached as Exhibit "A".
2.2 CONTRACTOR shall have no claim for compensation for any services or work, which has not been authorized by CITY’s Authorization to Proceed.
2.3 CONTRACTOR shall not accept any change of scope, or change in contract provisions, to this Contract unless issued in writing, as a contract change order or amendment and signed by CITY. Any extensions of time must be mutually agreed upon in writing and executed by both parties.
2.4 CONTRACTOR shall maintain in current status all Federal, State, and local licenses and permits required for the operation of the business conducted by the CONTRACTOR as applicable to this contract.
2.5 All work supplied under this Contract shall be fully guaranteed by CONTRACTOR for a minimum period of ONE (1) year / 365 days from the date of acceptance by CITY. Any defects of design, workmanship, or materials that would result in non-compliance with the Contract specifications shall be fully corrected by CONTRACTOR (including parts and labor) without cost to CITY. The written warranty shall be included with the delivered products to the using Department.
2.6 CITY shall provide to CONTRACTOR, without charge, all data, program information, including reports, records, maps, and other information, now in CITY’s possession, which may facilitate the timely performance of the work. 3 CONTRACTOR’S KEY PERSONNEL
3.1 Key Staff. CITY reserves the right to review and approve CONTRACTOR’S staff including all subcontractors to be assigned to any project by CONTRACTOR during the term of this Contract.
This Contract has been awarded to CONTRACTOR based partially on the key personnel proposed to perform the services required herein. CONTRACTOR shall not change nor substitute any of these key staff for work on this Contract without prior written approval by CITY.
CONTRACTOR’s Team and Key Personnel are as follows:
2-14Concord - Document ID: generated after first signature Jose Cruz, Project Manager / Design Lead
The CONTRACTOR's Project Team is detailed within their Proposal, Exhibit "A".
This Services Contract has been awarded to CONTRACTOR based on its representation that those personnel and subcontractors submitted as part of its bid and listed above will perform the portions of the work listed above.
CONTRACTOR shall not deviate nor substitute any of these team members without prior written approval by CITY.
3.2 Subcontractors. During the performance of the Agreement, CONTRACTOR may engage such additional SUBCONTRACTORS as may be required for the timely completion of this Agreement. In the event of subcontracting, the sole responsibility for fulfillment of all terms and conditions of this Agreement rests with CONTRACTOR.
CONTRACTOR shall not enter into any Subcontract under this Contract for the performance of this Contract without the advance written approval of CITY. The subcontract shall incorporate by reference the terms and conditions of this Contract.
3.3 Direct Responsibility. All services required under this Contract shall be performed by CONTRACTOR, or under CONTRACTOR’s direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services.
3.3.1 CONTRACTOR shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Contract, and compliance with all reasonable performance standards established by CITY.
3.3.2 CONTRACTOR shall be responsible for payment of all CONTRACTOR’s employees’ and subcontractor’s wages and benefits and shall comply with all requirements pertaining to the employer’s liability, workers’ compensation, unemployment insurance, and Social Security.
3.3.3 CONTRACTOR shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all claims, demands, damages or costs arising from CONTRACTOR’s acts or omissions with respect to any liability, damages, claims, costs and expenses of any nature arising from alleged violations of personnel practices.
3.4 Standards of Performance. CONTRACTOR 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.
CONTRACTOR 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. 3-14Concord - Document ID: generated after first signature
4 CONTRACT TERM
The term of this Contract is THREE (3) Years / THIRTY-SIX (36) MONTHS, commencing on the effective date, with CITY reserving the option to extend the agreement for ONE (1) additional terms of one year each.
5 ACCEPTANCE AND DOCUMENTATION
Each task shall be reviewed and approved by the Contract Project Manager to determine acceptable completion.
5.1 Records. The CONTRACTOR shall retain and shall contractually require each SUBCONTRACTOR to retain all data and other “records” relating to the acquisition and performance of the Contract for a period of five years after the completion of the Contract.
5.2 Property of CITY. All materials, including reports, computer programs and other deliverables, supplied or created under this Contract are the sole property of CITY. CONTRACTOR is not entitled to a patent or copyright on those materials and may not transfer the patent or copyright to anyone else. CONTRACTOR shall not use or release these materials without the prior written consent of CITY.
5.3 Products. All equipment, materials, parts, and other components incorporated in the work or services performed pursuant to this Contract shall be new, or the latest model and of the most suitable grade for the purpose intended. All work shall be performed in a skilled and workmanlike manner. 6 PRICE
CITY shall pay to CONTRACTOR an amount not to exceed ONE MILLION, THREE HUNDRED and ELEVEN THOUSAND, FIVE HUNDRED and SIXTY-NINE dollars ($1311569) for the completion of all the work and services described in Section 2, which sum shall include all costs or expenses incurred by CONTRACTOR, payable as follows:
CONTRACTOR shall submit a detailed invoice for completed services during the prior month.
6.1 An application for payment form must be submitted to CITY which shall include the following: a clear, detailed invoice reflecting work being billed for, a summary sheet showing percentage of work completed to date, amount/percent billed to date and current status of all tasks within a project; any/all backup documentation supporting the above items. Work schedule updates must also be included with the payment requests.
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6.2 CONTRACTOR shall maintain adequate records and shall permit inspection and audit by CITY of CONTRACTOR’s charges under this Contract. CONTRACTOR shall make such records available to CITY during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records, and they will be available only to CITY and any specified public agencies. Such records shall be maintained by CONTRACTOR for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONTRACTOR shall retain its records for the time required by such laws.
6.3 Payment. A separate invoice shall be issued for each shipment of material or service performed, and no payment will be issued prior to receipt of material and/or completion of specified services and receipt of a correct invoice. 7 TAXES
7.1 CONTRACTOR shall pay all sales, consumer, use, and other similar taxes required to be paid by CONTRACTOR in accordance with state and local laws.
7.2 CONTRACTOR is an independent contractor and shall have no power or authority to incur any debt, obligation, or liability on behalf of CITY. No person employed by CONTRACTOR or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.
7.3 CONTRACTOR shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.
7.4 When equipment, materials or supplies generally taxable to CONTRACTOR are eligible for a tax exemption due to the nature of the work, CONTRACTOR shall assist the City in applying for and obtaining such tax credits and exemptions, which shall be paid or credited to the City.
8 PATENT FEES AND ROYALTIES
CONTRACTOR shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, program, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, program, product or device is specified in the contract documents for use in the performance of the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents.
CONTRACTOR shall indemnify and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the 5-14Concord - Document ID: generated after first signature incorporation in the work of any invention, design, process, program, product or device not specified in the contract documents, and shall defend all such claims in connection with any alleged infringement of such rights. 9 INDEMNIFICATION
To the fullest extent permitted by law, CONTRACTOR and any subcontractors working on its behalf agree to indemnify CITY, its officers, employees, agents and elected and appointed boards (hereinafter “Indemnified Parties”) for any loss, claim, demand, cause of action, cost, expense, damage, obligation or liability which arises out of or is in any way connected with the performance of any work under this agreement, including any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONTRACTOR, or its subcontractors, and regardless of any acts, omissions or negligence (whether active or passive) of any person or entity indemnified hereunder. At their own expense, CONTRACTOR and, as applicable, any subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONTRACTOR shall ensure that the contract of any subcontractor working under this agreement contain an indemnity agreement, requiring the subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONTRACTOR shall indemnify the Indemnified Parties, and save it harmless from any and all loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
10 INSURANCE
10.1 CONTRACTOR, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California.
Proof of Insurance, as identified in Section 10.8, must be reviewed and accepted by the City Attorney.
10.1.1 Workers’ Compensation and Employer’s Liability
Workers’ Compensation -- coverage as required by the State of California Employer’s Liability
$1,000,000 each accident
$1,000,000.00 policy limit bodily injury
$1,000,000.00 each employee bodily injury by disease
10.1.2 Commercial General Liability
$2,000,000.00 limit on a per occurrence basis
$4,000,000.00 general aggregate limit
10.1.3 Commercial Automobile Liability
6-14Concord - Document ID: generated after first signature $1,000,000.00 combined single limit including owned, non-owned and hired automobile coverage
10.1.4 Professional Liability (Errors & Omissions)*
- $3,000,000.00 per occurrence
10.2 All of CONTRACTOR’s policies shall contain an endorsement providing that written notice shall be given to CITY at least thirty (30) calendar days prior to termination, cancellation, or reduction of coverage in the policy.
10.3 Policies providing for bodily injury and property damage coverage shall contain the following:
A. An endorsement extending coverage to the City as an additional insured, as respects liability arising out of the performance of any work under the Contract.
Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The certificates shall state: “The City of Palmdale, Successor Agency to the Community Redevelopment Agency of the City of Palmdale, Housing Authority, Industrial Development Authority, Airport Authority, their officers, agents, employees and volunteers are named as additional insured”.
B. “Severability of Interest” Clause.
10.4 Promptly upon execution of this Contract, and prior to commencement of any work, CONTRACTOR shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONTRACTOR has the required coverage and showing the required named insured. Within five (5) days of written request from CITY, CONTRACTOR shall deliver to CITY full and complete copies of all insurance policies required by this Contract.
10.5 The requirements as to the types and limits of insurance to be maintained by CONTRACTOR are not intended to and shall not in any manner limit or qualify CONTRACTOR’s liabilities and obligations under this Contract.
10.6 Any policy or policies of insurance that CONTRACTOR elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.
10.7 All insurance coverage must be maintained throughout the duration of this Contract.
10.8 Acceptable Proof of Insurance:
7-14Concord - Document ID: generated after first signature
10.8.1 ACORD Certificate of Insurance listing all coverage, limits, deductibles and insured; and endorsements for all applicable coverage if agent has authority to issue it; or additional insured Form CG20100704 and CG20370704 or equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage.
10.8.2 Binders of insurance for all coverage. Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements and a corresponding Certificate of Insurance listing all insurers and coverage must be submitted to the City Attorney.
10.8.3 *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.
10.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time CONTRACTOR fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.
10.10 CONTRACTOR shall require any and all 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 10 will not be impacted and/or limited by such deviation.
11 TERMINATION WITHOUT CAUSE
City reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, CONTRACTOR shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and subcontractors to cease such work. CONTRACTOR shall also surrender to CITY all finished or unfinished documents, processes, programs and other supplies and materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the CONTRACTOR shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
8-14Concord - Document ID: generated after first signature 12 TERMINATION FOR CAUSE
If CITY determines that CONTRACTOR has failed to supply an adequate working force, or to provide services of proper quality, or has failed in any other respect to satisfactorily perform the services specified in this Contract, CITY shall give written notice to CONTRACTOR specifying all defaults to be remedied within thirty (30) days.
Such notice shall set forth the basis for CITY’s dissatisfaction and suggest corrective measures. If, after thirty days, CONTRACTOR has failed to implement appropriate corrective measures, CITY may elect to terminate this Contract in whole or in part.
12.1 In the event CITY terminates this Contract, in whole or in part, for cause, CITY may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.
12.2 CONTRACTOR shall provide all finished or unfinished documents, data, studies, software, drawings, programs, processes, maps, photographs, reports, etc., prepared by CONTRACTOR within fifteen (15) working days after notice of termination. Upon such termination, CONTRACTOR shall be paid an amount equal to the value of the services provided and work performed as of the date of termination, taking into consideration the costs associated with hiring another CONTRACTOR to complete the services. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete documents when such are delivered to CITY, and to authorized reimbursement expenses. The above is in addition to any other remedies available by law or equity to CITY.
12.3 If, after notice of termination of the Contract under the provisions of this Section 12, it is determined, for any reason, that CONTRACTOR was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 11. 13 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and CONTRACTOR arising out of or relating to this Contract or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 14 OWNERSHIP OF PRODUCT
All product, data, documents, programs and software including, but not limited to, research, field notes, investigations, analysis, studies, processes, software, instructions for use and other manuals, whether complete or incomplete, which are prepared or produced in the performance of this Contract are to be, and remain the property of CITY and shall be delivered to or left with CITY upon the completion or termination of this Agreement. CONTRACTOR shall furnish CITY, upon its request, originals and reproducible and electronic copies of product, data reports, studies and of all other documents listed above. Electronic copies shall be provided in an 9-14Concord - Document ID: generated after first signature unprotected format which allows CITY to copy, reproduce and makes changes as CITY deems necessary.
14.1 OWNERSHIP OF INTELLECTUAL PROPERTY. The Services performed hereunder are work made for hire and CIty shall exclusively own, in perpetuity and worldwide, all rights to and flowing from the work, including any work product, performed under this Agreement. Contractor assigns to City any and all rights Contractor could have, may have, or does have, in the work or the work product performed under this Agreement, and City shall have all right, title, and interest in said matters, including the right to secure and maintain the copyright, trademark, or patent of said matters in the name of the City. Independent Contractor consents to the use of Contractor’s name in conjunction with the sale, use, performance, and distribution of said matters, for any purpose and in any medium.
15 DELEGATION AND ASSIGNMENT
15.1 CONTRACTOR shall not delegate or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY; provided, however, that claims for money due or to become due to CONTRACTOR from CITY under this Contract may be assigned to a bank, trust company or other financial institution without such approval.
15.2 Any assignment, delegation or subcontract shall be made in the name of CONTRACTOR and shall not bind or purport to bind CITY and shall not release CONTRACTOR from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONTRACTOR under this Contract.
16 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY
16.1 In performance of this Contract, CONTRACTOR shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status.
CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status . Affirmative action relating to employment shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates 10-14Concord - Document ID: generated after first signature of pay or other forms of compensation; and selection for training, including apprenticeship.
17 FINANCIAL INTEREST CERTIFICATION
17.1 CONTRACTOR warrants that no person has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee; and that no officer or employee of the CITY has any interest, financially or otherwise, in CONTRACTOR’s firm.
17.2 For breach or violation of this warranty, CITY shall have the right to annul this Contract without liability or at its discretion to deduct from the Contract Price or consideration, the full amount of such commission, percentage, brokerage or contingent fee.
18 CONFLICT OF INTEREST
18.1 CONTRACTOR stipulates that its officers and employees do not now have a conflict of interest and it further agrees for itself, its officers and its employees that it will not contract for or accept employment for the performance of any work or services with any individual business, corporation or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Contract or which would cause CONTRACTOR to be “financial interested” (as provided in California Government Code Section 1090 et seq. or 87100 et seq.) in any contract or decision made by CITY on any matter.
18.2 CONTRACTOR shall not employ any City official or employee to perform any work required pursuant to this Contract.
18.3 To the extent required by the City Manager or his designee, CONTRACTOR shall complete and file with the City Clerk a Form 700 Statement of Economic Interests disclosing any reportable property interests, income, gifts, investments, or business positions.
19 COMPLIANCE WITH LAW
19.1 CONTRACTOR shall comply with all state and federal laws, including but not limited to, the requirement to hire only those persons authorized by federal law to work in the United States. If CONTRACTOR uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by CONTRACTOR.
19.2 The law of the state of California shall govern this Contract. The venue of any legal action, either formal or informal, shall be the County of Los Angeles.
19.3 If applicable, CONTRACTOR acknowledges and understands it must comply with the prevailing wage requirements as set forth in Exhibit “A” attached hereto and incorporated herein by reference, as well as the execution of a Worker’s 11-14Concord - Document ID: generated after first signature Compensation Certificate attached hereto as Exhibit “B” and incorporated herein by reference.
20 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
21 ENTIRE AGREEMENT AND AMENDMENTS
21.1 This Contract is the complete Agreement between the parties and supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally.
21.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by CONTRACTOR hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.
21.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract. 12-14Concord - Document ID: generated after first signature 22 ATTORNEY’S FEES
If any action at law or in equity is brought to enforce or interpret any provisions of this Contract, the prevailing party in such action shall be entitled to reasonable attorney’s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.
In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.
CITY OF PALMDALE: PACIFIC ADVANCED CIVIL
ENGINEERING, INC.:
Jose Cruz
Vice President
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550
ADDRESS FOR NOTICE:
PACIFIC ADVANCED CIVIL
ENGINEERING, INC.
17520 Newhope Street, Ste. 200
Fountain Valley, CA 92708
APPROVE AS TO FORM:
City Attorney
ATTEST:
Roxanne Faber
City Clerk
---------------------------------------- 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 Agreement Checklist and met all requirements
14-14Concord - Document ID: generated after first signature Pelona Vista
Park
Avenue R
Regional Basin
TIERRA SUBIDA
AVE
RAYBURN RD / AVE R
·|}þ14
AVENUE R
DIVISION ST
5TH ST EAST
E AVE Q-10
5TH ST WEST
PALMDALE BLVD / SR-138
0 850 1,700425
Feet
µ
City of Palmdale
Avenue R Drainage
Location Map
Legend
Ave R Regional Basin Pelona Vista Park
Data Source: Copyright 2025. All rights reserved. The City of Palmdale owns and licenses geographic data from a variety of sources. The information contained herein is the proprietary property of the following owners supplied under license and may not be reproduced except as licensed by those owners: City of Palmdale, Los Angeles County Assessor's Office, Environmental Systems Research Institute (ESRI) Data & Maps, United States Geological Survey (USGS), & Tele Atlas (courtesy of the Southern California Association of Governments (SCAG)).
Drainage
Area
1 MINUTES
CITY COUNCIL/SA
CITY HALL COUNCIL CHAMBER
38300 SIERRA HIGHWAY, SUITE B
PALMDALE, CALIFORNIA
JANUARY 13, 2026
5:00 PM
1) CALL MEETING TO ORDER
Mayor Ohlsen called the meeting to order at 5:01 pm.
Note: All City Council memberships are reflected in their City Council titles.
2) ROLL CALL MAYOR OHLSEN, MAYOR PRO TEM BISHOP, COUNCILMEMBERS LOA, BETTENCOURT, ALARCÓN
PRESENT: Eric Ohlsen, Austin Bishop, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
ABSENT: None.
3) PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE
Mayor Ohlsen led the Pledge of Allegiance.
Interim City Manager Mendez requested that item 12.1 be withdrawn from the agenda.
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.
A video and certificates were presented to acknowledge and commend City staff for their service.
4.2) Presentation on Formal Procurement Methods.
Director of Operations Samson provided a detailed PowerPoint presentation on this item.
Councilmember Alarcón thanked staff for the presentation and asked about the criteria for awarding the contract, and questioned the legality of providing the information to the Council and the public.
City Attorney Severino provided clarification regarding the Request for Qualifications for engineer/architect services and stated the information for the contract award.
2 Further discussion ensued between Council and staff regarding the bidding process.
Motion: Require future staff reports to include all procurement processes allowed, the bidder ’s name, ranking, headquarters, and the amount of their proposals.
Moved by Andrea Alarcón, seconded by Richard J. Loa.
Vote: Motion carried (5-0)
Yes: Eric Ohlsen, Austin Bishop, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
Councilmember Alarcón issued a statement addressing a personal incident that occurred several months ago.
5) CONSENT CALENDAR
Public Comments: Jason Zink spoke in favor of the sidewalk gap closure project, requested additional sidewalks and a trail around the flood basin, and opposed the California Choice Energy item.
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.
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.
5.4) Review and approve the amended Palmdale Aerospace Incentive Program Guidelines and Application in accordance with development milestones for new construction projects.
Director of Economic and Community Development Taggart introduced Interim Economic Development Manager Glynn, who presented the staff report.
Councilmember Loa questioned the number of applicants in the two years since the program began. Interim Economic Development Manager Glynn responded that one application had been received, and one award had been granted.
Discussion ensued between Council and staff regarding increasing incentives, funding, and advertising.
3 Councilmembers Bettencourt and Alarcón spoke in support of the program.
Motion: Approve the amended Palmdale Aerospace Incentive Program Guidelines and Application in accordance with development milestones for new construction projects.
Moved by Andrea Alarcón, seconded by Austin Bishop.
Vote: Motion carried (5-0)
Yes: Eric Ohlsen, Austin Bishop, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
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.
Councilmember Loa questioned the bid ding sheets and asked if an AI application is used . Director of Public Works Torres stated that an AI application is not used and that the department uses its own matrix.
Motion: Approve Construction Agreement with Azas Engineering, Inc., for PN 916, 3rd Street East ADA Improvements and Sidewalk Gap Closure Project.
Moved by Richard J. Loa, seconded by Austin Bishop.
Vote: Motion carried (5-0)
Yes: Eric Ohlsen, Austin Bishop, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
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.
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.
5.8) Approve the minutes from the previous meeting.
Motion: Approve the items listed on the Consent Calendar with the exception of items 5.4 and 5.5.
Moved by Austin Bishop, seconded by Richard J. Loa.
Vote: Motion carried (5-0)
Yes: Eric Ohlsen, Austin Bishop, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
6) PUBLIC HEARING
4 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.
7) APPOINTMENTS
7.1) Review and provide direction on changes to existing committee appointments.
Mayor Ohlsen made a statement regarding Council unity for the city and the restoration of all council members to the boards and committees.
Public Comment: Jason Zink spoke about the appointments, the restoration of Councilmembers Loa and Alarcón to boards and committees.
Mayor Ohlsen announced the following:
Antelope Valley Air Quality Management District (AVAQMD):
Delegate: Mayor Pro Tem Bishop
Delegate: Mayor Ohlsen
Alternate: Councilmember Bettencourt
Antelope Valley Fairgrounds Authority:
Delegate: Councilmember Loa
Antelope Valley Transit Authority (AVTA):
Delegate: Mayor Ohlsen
Delegate: Councilmember Loa
Alternate: Councilmember Bettencourt
California Contract Cities Association (CCCA):
Delegate: Councilmember Alarcón
Alternate: Mayor Pro Tem Bishop
City of Palmdale Audit Committee:
Delegate: Mayor Pro Tem Bishop
Delegate: Councilmember Bettencourt
Alternate: Councilmember Loa
City of Palmdale Investment Oversight Committee:
Member: Mayor Ohlsen
Member: Councilmember Loa
5 Enhanced Infrastructure Financing District (EIFD) Public Financing Authority (PFA):
Member: Mayor Pro Tem Bishop
Member: Councilmember Loa
High Desert Corridor Joint Powers Authority (HDC JPA):
Director: Mayor Ohlsen
Alternate: Councilmember Loa
Cal Cities Desert Mountain Division (DMD):
Delegate: Councilmember Alarcón
Alternate: Councilmember Bettencourt
Second Alternate: Councilmember Loa
Los Angeles County City Selection Committee:
Delegate: Councilmember Loa
Los Angeles County Sanitation Districts No. 14 and 20:
District No. 14
Delegate: Mayor Ohlsen
Alternate: Mayor Pro Tem Bishop
District No. 20
Delegate: Mayor Ohlsen
Second Director: Mayor Pro Tem Bishop
Alternate Director: Councilmember Loa
North Los Angeles County Transportation Coalition (NCTC):
Delegate: Mayor Ohlsen
Alternate: Interim City Manager Mendez
Business Rep: Mayor Pro Tem Bishop
At-Large Rep: Councilmember Loa
Palmdale Recycled Water Authority (PRWA)
Director: Councilmember Bettencourt
Director: Mayor Pro Tem Bishop
Alternate: Councilmember Loa
Palmdale Tourism Improvement District (PTID)
Director: Mayor Pro Tem Bishop
6 Southern California Association of Governments (SCAG) General Assembly:
Delegate: Mayor Ohlsen
Alternate: Councilmember Loa
Southern California Association of Governments (SCAG) Regional Council District 43:
Delegate: Mayor Pro Tem Bishop
Palmdale Sister City Association:
Delegate: Councilmember Alarcón
Delegate: Councilmember Loa
Alternate: Councilmember Bettencourt
Alternate: Mayor Pro Tem Bishop
California State Prison – Los Angeles County, Citizens Advisory Committee:
Delegate: Councilmember Bettencourt
Alternate: Councilmember Loa
Motion: Approve Council recommendations regarding committee appointments.
Moved by Laura Bettencourt, seconded by Richard J. Loa.
Vote: Motion carried (5-0)
Yes: Eric Ohlsen, Austin Bishop, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
Motion: Approve Council recommendations regarding committee appointments as amended, adding League of Cities appointments.
Moved by Laura Bettencourt, seconded by Richard J. Loa.
Vote: Motion carried (5-0)
Yes: Eric Ohlsen, Austin Bishop, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
Following the closed session, City Attorney Severino and Deputy City Manager Lopez provided clarification regarding the Cal Cities name change and appointment.
Motion: Approve Council recommendations regarding committee appointments, amending Cal Cities DMD as follows: Delegate: Councilmember Alarcón, Alternate: Councilmember Bettencourt, and Second Alternate: Councilmember Loa.
Moved by Laura Bettencourt, seconded by Eric Ohlsen.
Vote: Motion carried (5-0)
7 Yes: Eric Ohlsen, Austin Bishop, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
8) CITY MANAGER’S REPORT
Interim City Manager Mendez announced the following: Journey USA at the Palmdale Playhouse on January 16 and 17; Season of Service at SAVES; Martin Luther King celebration on January 19; Justice Sunday Performance at 4 pm at the Palmdale Playhouse on January 24; New Year, New Cheer at the Palmdale Playhouse at 7 pm on January 31.
9) SHERIFF’S REPORT
Captain Bardon provided a recap of the year and an update on response times for routine calls for service, working with t he Partners Against Crime Team, property crimes, gang-related shootings, the number of firearms recovered, collisions, and the Virtual deputy. He announced the Spanish-speaking Virtual deputy is live and at nine sheriff's department stations. He took a moment to spotlight over 100 coordinated community events, including the Haunted Jail and the Interfaith Prayer Breakfast, and is looking forward to increasing that number in 2026.
Councilmember Loa asked about the number of catalytic converters that had been stolen. Sheriff Bardon responded.
Councilmembers Alarcón and Bettencourt thanked the Sheriff for the report and spoke highly of the virtual deputy.
10) NON-AGENDA PUBLIC COMMENTS
Eugene Hernandez spoke about city staff, the Chimbole Cultural Center, the needs of the Chicano Community, and AV Edge.
Roger thanked Parks and Recreation for the trash cans at Arnie Quinones Park and requested a picnic table and a sidewalk in front of his house.
Rich Gallego spoke about stolen catalytic converters, the conduct of Councilmember Alarcón and committee assignments, and the Council code of conduct.
Marcos Alvarez spoke about events happening nationally, regionally, and locally, thanked Councilmember Bettencourt for getting a light in the neighborhood fixed, and requested an investment into improving drains , and spoke in support of small businesses.
Jason Zink spoke about accountability and the violation of rights related to elections and districts.
11) COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE
AGENDA ITEMS
11.1) Council Reports
8 Councilmember Alarcón filed her Council report, complimented the holiday display at Poncitlan Square, and spoke about the Kicks for Kids event at McAdam Park. She requested a follow -up on the motion made at a previous meeting regarding ICE and the Sheriff's Department and requested an update on new laws and the ongoing litigation related to them.
Mayor Pro Tem Bishop attended various events , including Jolly Holiday, the opening of San Fernando Coffee Company, Pines & Presents at the Auto Mall, the SAVES giveaway, and the DryTown groundbreaking for the new slides.
Councilmember Bettencourt filed her report and spoke about various gift-giving events.
Councilmember Loa spoke about the Christmas tree lighting at Poncitlan Square, attended the AVTA holiday event, and requested a review of the City Manager applications received to evaluate all potential candidates.
Mayor Ohlsen attended various events throughout December, especially food giveaways, and spoke about affordability and community safety.
Motion: Discuss her motion from a past meeting related to ICE and the Sheriff’s Department, and provide an update on ongoing litigation, the new laws SB 805 and SB 627, and any policies the Sheriff’s Department has implemented in response.
Moved by Andrea Alarcón, seconded by Eric Ohlsen.
Vote: Motion carried (4-0)
Yes: Eric Ohlsen, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
Abstain: Austin Bishop.
Motion: Receive a status update on the selection of City Manager.
Moved by Richard J. Loa, seconded by Andrea Alarcón.
Vote: Motion carried (5-0)
Yes: Eric Ohlsen, Austin Bishop, Richard J. Loa, Laura Bettencourt, Andrea Alarcón.
12) CLOSED SESSION
Public Comments: None.
City Attorney Severino confirmed items 12.2 and 12.3 would be heard as listed.
12.1) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Concerning CV Communities, LLC v. Antelope Valley -East Kern Water Agency, et al. Los Angeles Superior Court 20STCV10953
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).
9 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
Closed Session was held from 6:40 p.m. to 7:52 p.m.
City Attorney Severino announced the following:
12.2 - There was no reportable action.
12.3 - There was no reportable action.
14) ADJOURNMENT
Mayor Ohlson adjourned the meeting at 7:53 pm to February 3, 2026, at 5:00 pm in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
PASSED, APPROVED, and ADOPTED this 3rd day of February 2026.
Eric Ohlsen, Mayor
ATTEST:
Rochelle Scott, City Clerk
City Council Staff Report
DATE: FEBRUARY 3, 2026
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: OPERATIONS DEPARTMENT
HUMAN RESOURCES DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE FISCAL YEAR 2025 -26 ANNUAL
EMPLOYEE VACANCY REPORT, IN ACCORDANCE WITH
ASSEMBLY BILL 2561
RECOMMENDATION
Staff recommend that the City Council:
1. Hold a public hearing to accept public testimony; and,
2. Receive and file the Fiscal Year (FY) 2025-26 Annual Employee Vacancy Report, in accordance with Assembly Bill 2561.
BACKGROUND
On September 22, 2024, Governor Newsom signed Assembly Bill 2561 (AB 2561) into law, which became effective on January 1, 2025. AB 2561 requires public agencies to address the status of vacancies. The California Legislature recognized that vacancies in the public sector pose challenges that can and negatively impact the delivery of public services.
DISCUSSION
AB 2561 requires the City to present the status of vacancies, recruitment efforts, and retention efforts at a public hearing held at least once each fiscal year prior to adoption of the annual budget. Specifically, the statute requires public agencies to:
Report job vacancies, recruitment, and retention efforts; Identify policies or practices that may lead to obstacles or negatively impact the hiring process;
Provide recognized bargaining units an opportunity to participate in the public hearing; and,
Report to Mayor and City Council
Re: FY 2025-26 Annual Employee Vacancy Report
February 3, 2026
If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions in a particular bargaining unit, provide additional data upon request of the recognized employee organization, including the total number of job vacancies within a bargaining unit, the total number of applicants for vacant positions within the bargaining unit, the average number of days to complete the hiring process from when a position is posted and opportunities to improve compensation and other working conditions.
Vacancies
As of July 1, 2025, the City has 318 City Council-approved, authorized full-time equivalent (FTE) budgeted positions. Of these 318 positions, 99 are represented by the Teamsters Local 986 Union.
As of January 2026, 290 FTEs were Active/Filled. The City of Palmdale has 28 vacant Full-time-equivalent (FTE) budgeted positions. Of these 28 positions, 11 are represented by the bargaining unit. This resulted in the following:
overall vacancy rate is 8.81%; and,
a bargaining unit vacancy rate of 11.11%.
Because both the overall and Teamsters Local 986 bargaining unit vacancy rates do not meet or exceed 20% of the total authorized full -time positions, the additional reporting provisions outlined in Government Code section 3502.3(c) are not triggered. Vacancies are attributable to retirements, resignations, terminations, and lateral transfers.
Recruitment Activity
As of January 2026, the City has:
4 full-time positions in active recruitment;
12 full-time recruitments that have closed and are currently in the interview or selection phase;
4 full-time positions for which candidates have been selected and are scheduled to begin employment on or after January 22, 2026; and,
34 full-time employees were hired as of July 1, 2025, 8 of whom are represented.
Employee Retention
Through the establishment and recruitment of additional Human Resources staff, the City is proactively addressing compensation, workplace conditions, and motivational factors , including growth and purpose , to foster a workforce that feels valued, supported, and invested in a long-term career with the City of Palmdale.
Report to Mayor and City Council
Re: FY 2025-26 Annual Employee Vacancy Report
February 3, 2026
Professional Development Programs: Build a leadership development program and other staff development opportunities to support continuing education and/or skill set expansion.
Employee Recognition & Incentives: Formal employee engagement programs and merit -based benefits tied to years of service to acknowledge performance, milestones, and long-term commitment.
Competitive Benefits Package: Completed a comprehensive Compensation and Classification study, enhanced dental and vision health benefits, retirement planning, and work-life balance support.
Flexible Work Arrangements: 4/10 Alternative working schedules.
As of July 1, 2025, 275 of the 318 City Council-approved, authorized full-time equivalent (FTE) budgeted positions were filled. Of these 275 positions, 84 were represented by the Teamsters Local 986 bargaining unit.
As of January 2026, 290 positions are filled, with 88 represented by Teamsters Local 986 in the bargaining unit.
Overall retention rate is 93.09%; and,
a bargaining unit retention rate of 95.24%.
FISCAL IMPACT
$0; There is no fiscal impact associated with this action.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
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
None
City Council Staff Report
DATE: FEBRUARY 3, 2026
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY ATTORNEY’S OFFICE
DISTRICT: ALL
SUBJECT: LEGISLATIVE AND LITIGATION UPDATE REGARDING FEDERAL
IMMIGRATION ENFORCEMENT
RECOMMENDATION
Staff recommend that the City Council:
1. Receive and file legislative and litigation update regarding federal immigration enforcement.
BACKGROUND
On July 11, 2025, the federal court issued a preliminary injunction against federal enforcement agencies, including Immigration and Customs Enforcement ( ICE), prohibiting the detention of individuals based on one, or a combination of the following factors: 1. Race/ethnicity; 2. Speaking Spanish or speaking English with an accent; 3.
Presence at a particular location (e.g. bus stop, car wash, tow yard, day laborer pick up site, agricultural site, etc.); and, 4. The type of work one does.
In response to this ruling, the LASD amended its operational processes to include specific procedures to identify federal agents by on-scene LASD officers, including direction to request identification or agency credentials and record the encounter on the officer’s body-worn camera.1 On or about July 29, 2025, Los Angeles County intervened in the federal suit.
On August 1, 2025, the Ninth Circuit Court of Appeals upheld the lower court’s ruling. On September 8, 2025, the U.S. Supreme Court granted a stay of the district court’s July 11 injunction, pausing that injunction nationwide while appeals proceed . A more limited injunction on access to couns el procedures at B-18, a detention facility in Los Angeles, remains in place — but it applies only to that specific detention facility and that specific constitutional claim.
1 July 11, 2025, LASD Newsletter.
Report to Mayor and City Council
Re: Legislative and Litigation Update Regarding Federal Immigration Enf orcement February 3, 2026
On December 9, 2025, Los Angeles County Board of Supervisors adopted an ordinance prohibiting law enforcement officers from wearing facial coverings that obscure their face and personal disguises and requiring law enforcement officers to wear visible identification when performing duties that involve interaction with the public. The ordinance provides for exceptions to these requirements for undercover, protective, and Special Weapons and Tactics operations and exigent circumstances . The ordinance applies to incorporated areas of Los Angeles County.
The State enacted SB 805 No Vigilantes Act and SB 627 No Secret Police Act , which took effect on January 1, 2026. SB 805 revises California’s impersonation laws to explicitly cover federal law enforcement officers and imposes misdemeanor penalties.2 It requires any law enforcement agency operating in California , including federal law enforcement, to maintain and publicly post a written policy on the visible identification of sworn personnel.3 Any law enforcement officer operating in California that is not uniformed must visibly display identification that includes their agency and either a name or badge number to the public when performing their enforcement duties, except as specified.4 A violation of these provisions is a misdemeanor.
SB 627 prohibits a law enforcemen t officer, including federal law enforcement, from wearing a facial covering that conceals or obscures their facial identity in the performance of their duties, except as expressly authorized. 5 Law enforcement agencies operating in California must also maintain and publicly post a written policy regarding the use of facial coverings.6
LASD is in the process of crafting their policies required by SB 805 and SB 62 but have provided notice of the prohibition against wearing facial coverings to its o fficers.7 The state’s authority to enforce the new laws, SB 805 and SB 627, against the federal government is currently being challenged in federal court.8
The Department of Homeland Security has publicly declared that it will not comply. The case is pending and LASD awaits judicial guidance prior to proceeding with those provisions of law applicable to federal law enforcement.
DISCUSSION
The City contracts LASD for police services . There have been no changes to LASD’s operational policy from July 11, 2025.
2 Penal Code § 538d.
3 Government Code § 7288.
4 Penal Code § 13654.
5 Penal Code § 185.5.
6 Government Code § 7289.
7 December 17, 2025, LASD Newsletter.
8 United States v. State of California (Case No. 2:25-cv-10999), filed November 17, 2025.
Report to Mayor and City Council
Re: Legislative and Litigation Update Regarding Federal Immigration Enf orcement February 3, 2026
LASD’s revised operational process responds and addresses concerns related to ICE officer identification, enforcemen t policy, and third-party impersonators. LASD’s procedures follow the California Values Act (SB 54), which prohibit LASD from assisting with federal civil immigration enforcement. LASD officers may act in response to federal immigration enforcement operation s to maintain public order , ensure the safety of community members , and p rotect the lives and safety of federal law enforcement officers involved in the operation, including the enforcement of state criminal laws.
While local law enforcement is prohibited from assisting with immigration enforcement pursuant to State law, pursuant to department operational process, LASD officers will attempt to identify, document, and record ICE agents and activities when responding on-site in accordance with department policy. This process addresses complaints related to ICE enforcement, the identification of IC E agents, and third-party impersonators.
Beginning January 1, 2026, all law enforcement agencies operating in California are prohibited from wearing facial coverings that conceal or obscure their facial identity while performing their duties, except as expressly authorized. All law enforcement officers not in uniform must visibly display identification that includes their agency and either a name or badge number to the public when performing their enforcement duties . The application of these requirements to the federal government awaits adjudication. LASD will update and post their policies regarding masks and officer identification as required by state law.
FISCAL IMPACT
$0; There is no fiscal impact to the City for this action.
STRATEGIC PLAN
Prepared by: Alexandra Severino, City Attorney
Approved by: Salvador Mendez, Interim City Manager
Approved as to form: Alexandra Severino, City Attorney
ATTACHMENTS
July 11, 2025 LASD Newsletter
December 17, 2025 LASD Newsletter
25-05 - Encounters Involving Possible Federal Immigration Enforcement Operations
VOLUME 25 NUMBER 05 DATE July 11, 2025
ENCOUNTERS INVOLVING POSSIBLE
FEDERAL IMMIGRATION ENFORCEMENT OPERATIONS
PURPOSE
This Newsletter provides guidance to Department personnel when responding to reports or encounters involving U.S. Immigration and Customs Enforcement (ICE) or other federal agencies conducting immigration enforcement activities within the County. These operations often raise public concern and require a response from Department personnel that prioritizes safety, policy compliance, and public trust.
BACKGROUND
The Los Angeles County Sheriff’s Department may receive calls for service involving suspected immigration enforcement activity, including incidents where federal agents may be operating in the community, near schools, businesses, or homes. These incidents can cause public confusion, fear, and unrest, especially when the agents are in unmarked vehicles, unidentifiable, or decline to show identification to community members.
In these instances, California Senate Bill 54, or the California Values Act which enacted and amended Government Code sections 7282 through 7282.5, and added sections 7284 through 7284.12 and County policy generally prohibit Department personnel from participating in civil immigration enforcement.
Department personnel must remain neutral, avoid direct involvement in immigration enforcement, and ensure their actions are consistent with Department policy, the law, and the safety of the community.
DEPUTIES
When encountering or being dispatched to a situation possibly involving immigration enforcement, deputies should:
Immediately notify a field supervisor, if a supervisor is not already assigned to the incident, of a FOSS Newsletters : 25-05 - Encounters Involving Possible Federal Immigration Enforcement Operations______________________________________________________________________________________________________ Current Revision
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“possible federal enforcement action.”
Attempt to identify the federal agents. If the individuals are acting in an enforcement capacity but are not clearly identifiable, deputies should:
Request identification or agency credentials from the on-scene federal supervisor or agent-in- charge. If there is no on-scene supervisor or agent-in-charge, request identification or agency credentials from the individuals acting in an enforcement capacity.
Record the encounter on body-worn camera, including identification efforts.
If the individuals decline to identify themselves, observe from a safe distance and document (such as in a log, incident report, and/or body worn camera):
Physical descriptions of individuals
Agency markings (if any)
Number of personnel involved
Vehicle descriptions and license plates
If it is determined that an incident involves federal immigration enforcement conducted by federal agents, the actions of Department members should be limited to those authorized under California law. Department personnel may act to maintain public order, ensure the safety of community members, and protect the lives and safety of federal law enforcement officers involved in the operation. This may include enforcing California criminal laws, when necessary, particularly those related to public safety and public order, such as acts of violence, unlawful assembly, or vandalism.
Deputies should focus on crowd control and public safety, ensuring the situation does not escalate into violence;
Remain neutral. Deputies should use de-escalation techniques to prevent conflicts between ICE agents and the public;
Deputies should avoid physical involvement or assistance in the immigration arrest/enforcement action while maintaining neutrality unless the situation presents a clear and present officer-safety situation for the federal agents;
The incident should be thoroughly documented, including any actions taken by deputies and federal agents, in an MDC log entry or an incident report if necessary. Deputies should also notify a field supervisor immediately;
Deputies should clearly communicate to members of the public that the Department is not involved in immigration enforcement and is present to ensure public safety; and FOSS Newsletters : 25-05 - Encounters Involving Possible Federal Immigration Enforcement Operations______________________________________________________________________________________________________ Current Revision
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Use de-escalation techniques to calm tensions and avoid confrontations between federal agents and members of the public.
Documentation and Reporting
Deputies should:
Complete the appropriate Incident report(s) when required under the following circumstances:
A community member alleges a crime (e.g. kidnapping or false imprisonment); There is confirmed criminal activity;
There is damage to property related to the incident;
Ensure all reports are thorough, objective, and submitted in accordance with Department policy and documentation standards; and
Title all Body Worn Camera videos in Evidence.com as “Federal Immigration Enforcement Action.”
Complete a detailed MDC log entry documenting:
The nature of the incident, including location, time, individuals involved and actions taken; Any crowd control or de-escalation measures employed; and Supervisor notification and response.
SUPERVISOR
To ensure proper oversight and compliance with Department and County policies involving federal immigration enforcement actions, supervisors should:
Respond to calls for service involving:
Possible federal immigration enforcement, or;
Alleged crimes such as kidnapping or false imprisonment by individuals appearing to be federal agents.
Ensure that attempts to verify the credentials of the on-scene federal agent(s) or supervising officer(s) have been made.
Ensure that deputies adhere to California law and County and Department policies regarding federal enforcement while maintaining public safety.
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Notify the Watch Commander immediately and provide all relevant information, including:
Nature of the incident;
Identity of involved federal agents (if known); and
Actions taken by deputies.
Immediately report to the Watch Commander any incidents involving:
Any federal immigration-related interaction with a federal agency/agents; Large-scale public disturbances; or
Media attention.
WATCH COMMANDER
Upon notification of a federal immigration enforcement action or relevant incident, Watch Commanders should:
Closely monitor the situation.
Document the activity and all pertinent information in the Watch Commander Daily Log, including:
Community allegations of criminal activity;
Agent identification attempts; and
Department members’ actions and policy compliance.
Complete an after-action summary in a Chief’s memo, per MPP 4-01/100.25 – Important Cases and incidents, noting:
Specific details of the incident; and
Any community issues or concerns.
ADDITIONAL REFERENCES
SH-AD-757 Federal Enforcement Operations - Watch Commander Checklist FOSS Newsletters : 25-05 - Encounters Involving Possible Federal Immigration Enforcement Operations______________________________________________________________________________________________________ Current Revision
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MPP 4-01/100.25 - Important Cases and Incidents
MPP 5-09/271.00 - Immigration Inquiries and Notification MPP 3-01/140.00 Deputy Stops – Government Code Section 12525.5 Newsletter 23-06 AB 2773 (2022) – Stating and Documenting the Reason for Traffic Stops
If you require further information, contact Field Operations Support Services at (323) 890-5411 or [email protected]
.
Revised: 7/11/2025
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25-11 - Face Covering/ Identification of Law Enforcement Personnel VOLUME 25 NUMBER 11 DATE: December 17, 2025
FACE COVERING/ IDENTIFICATION OF
LAW ENFORCEMENT PERSONNEL
PURPOSE
This informational newsletter is designed to inform Department members about California Senate Bill 627, codified in California Penal Code section 185.5, that bans law enforcement officers from wearing facial coverings that conceal or obscure their facial identity (including ski masks, gaiters, and similar opaque face coverings) in the performance of their duties.
This law goes into effect on January 1, 2026.
Department personnel must ensure compliance with the law which prohibits wearing facial coverings, unless covered by the statutory exceptions.
BACKGROUND
California Penal Code section 185.5, enacted by California Senate Bill 627, prohibits federal and local law enforcement officers from wearing facial coverings as defined (including, but not limited to, ski masks, balaclavas and neck gaiters) during law enforcement operations. This law provides for exceptions to the facial covering prohibition, including for undercover law enforcement operations, officers performing Special Weapons and Tactics responsibilities, and medical needs.
Please note that the provisions as applied to federal law enforcement officials is under review by judicial authorities. The Department will wait for judicial guidance before proceeding with that provision of the law.
In addition, California Government Code section 7289 was added, which requires that by July 1, 2026, law enforcement agencies operating in California maintain and publicly post a written policy regarding the use of facial coverings, with specified requirements, including a list of narrowly tailored exemptions. The Department is in the process of crafting that policy.
To support the enactment of these laws, the legislature made several findings including that “the routine use of facial coverings by law enforcement officers has significant implications for public perception, officer- community interactions, and accountability.”
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PROVISIONS OF SB 627:
Defines Face Coverings:
Defines "facial covering" for purposes of newly added Penal Code section 185.5 as any opaque mask, garment, helmet, headgear, or other item that conceals or obscures the facial identity of an individual, including, but not limited to, a baclava, tactical mask, gator, ski mask, and any similar type of facial covering or face-shielding item.
The law specifies that "facial covering" does
not
include:
a translucent face shield or clear mask that does not conceal the wearer's facial identity and is used in compliance with the agency's policy and procedures; a N95 medical mask or surgical mask to protect against transmission of disease or infection; air-purifying respirators, or self-contained breathing apparatuses necessary to protect against exposure to toxin, gas, smoke, inclement weather or any other hazardous or harmful environmental conditions,
a mask or device necessary for underwater use;
a motorcycle helmet when worn by an officer using a motorcycle or other vehicle that requires a helmet for safe operations; or
eyewear necessary to protect from the use of retinal weapons.
Bans Face Coverings:
Prohibits the wearing of masks (such as neck gaiters, ski masks) while in the performance of law enforcement operations.
Specifies Exceptions:
Allows face coverings for Special Enforcement Bureau (Special Weapons and Tactics - SWAT) in the performance of SWAT responsibilities, active undercover operations or assignments, tactical operations where protective gear is required for physical safety, the protection of identity during prosecution, and as may be required by law for occupational health and safety and/or a reasonable accommodation.
Agency Policies:
Mandates that agencies create policies to comply with the law by July 1, 2026.
Allows a member of the public, an oversight body, or a local governing authority to submit a written challenge to the legality of these policies. Provides that agencies have 90 days to correct any deficiencies and permits complaining parties to seek judicial review of challenged policies.
Criminal Penalties:
Imposes criminal penalties for willful and knowing violations of the prohibition and provides that the specified criminal penalties will
not
apply to any law enforcement officer
if they were
acting in their capacity as an employee of the agency and the agency maintains and publicly posts a written policy pursuant to Government Code section 7289.
Civil Penalties:
Imposes civil penalties for officers who commit tortious conduct while violating the facial covering prohibition including assault, battery, false imprisonment, false arrest, abuse of process or malicious prosecution.
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In addition to the state law, Los Angeles County is advancing its own ordinance to prohibit law enforcement from masking. Effective January 8, 2026, the County ordinance prohibits the wearing of masks or disguises while interacting with the public when working in unincorporated areas of Los Angeles County.
If you require further information, contact Field Operations Support Services at (323) 890-5411 or [email protected]
.
REFERENCES
Senate Bill 627 (SB 627)
Senate Bill 805 (SB 805)
3-03/340.00 - Name Tags
3-03/070.95 - Deputy Sheriff Identification
3-03/340.01 - Name Tag Exceptions
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