City Council/SA/HA/IDA/PAA/PCA/PFA

1. CALL MEETING TO ORDER Note: All City Council memberships are reflected in their City Council titles. 2. ROLL CALL MAYOR LOA, MAYOR PRO TEM BETTENCOURT, COUNCILMEMBERS BISHOP, OHLSEN, ALARCÓN COMMISSIONERS FRAGA-SAENZ, BETTS 3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE PUBLIC COMMENT RULES “(California Government Code Section 54954.3). (a) Every agenda for regular meetings shall provide an opportunity for members of the public to directly address the legislative body on any item of interest to the public, before or during the legislative body’s consideration of the item, that is within the subject matter jurisdiction of the legislative body, provided that no action shall be taken on any item not appearing on the agenda unless the action is otherwise authorized by subdivision (b) of Section 54954.2 [section omitted]. CITY COUNCIL SUCCESSOR AGENCY HOUSING AUTHORITY INDUSTRIAL DEVELOPMENT AUTHORITY PALMDALE AIRPORT AUTHORITY PALMDALE CIVIC AUTHORITY PALMDALE FINANCING AUTHORITY CITY COUNCIL CHAMBER 38300 SIERRA HIGHWAY SUITE B PALMDALE, CA 93550 TUESDAY, FEBRUARY 18, 2025 5:00 PM www.cityofpalmdaleca.gov WELCOME City Council Tuesday, February 18, 2025 1

(b) (1) The legislative body of a local agency may adopt reasonable regulations to ensure that the intent of the subdivision (a) is carried out, including, but not limited to, regulations limiting the total amount of time allocated for public testimony on particular issues and for each individual speaker. (2) Notwithstanding paragraph (1), when the legislative body of a local agency limits time for public comment, the legislative body of a local agency shall provide at least twice the allotted time to a member of the public who utilizes a translator to ensure that non- English speakers receive the same opportunity to directly address the legislative body of a local agency.” In furtherance of Section 54954.3 of the Brown Act, the public is allotted to speak a total of two (2) minutes on the entirety of the Consent Calendar, Appointment(s), New Business and Closed Session, with two (2) minutes on each Public Hearing, and, if desired, an additional two (2) minutes on items not on the agenda that are within the subject matter jurisdiction of the City Council. As specified in the Brown Act, a speaker utilizing a translator will receive twice the amount of time specified. 4. PUBLIC COMMENTS CONSENT CALENDAR, APPOINTMENT(S), NEW BUSINESS, AND CLOSED SESSION: Now is the time for public participation on items listed on the Consent Calendar, Appointment(s), New Business, and Closed Session. Each speaker is allotted two (2) minutes in total for the entirety of the above sections. 5. CONSENT CALENDAR All matters listed under the Consent Calendar will be enacted by one motion unless an item(s) is pulled by Council, in which case the item(s) will be removed from the 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 report for December 2024. SR Monthly Investment Reports December 2024.docx Rpt. Monthly Investment Reports December 2024.pdf 5.3 Approve Agreement with Proslide Technologies Inc., to refurbish DryTown Water Park's Dusty's Mindshaft Racer Slide for the not to exceed amount of $626,000 for a term of 90 days from the Notice to Proceed. SR Agrmt No. A-9214 with Proslide Technology, Inc.docx Agrmt No. A-9214 with Proslide Technology, Inc.pdf City Council Tuesday, February 18, 2025 2

5.4 Adopt Resolution No. CC 2025-018, a Resolution of the City Council of the City of Palmdale declaring a Housing Crisis in response to recent fires. SR Reso. No. CC 2025-018.docx Reso. No. CC 2025-018.docx 5.5 Approve the Third Amendment to the Legal Services Agreement with Civica Law Group, APC, to increase the agreement amount by $280,000, for Fiscal Year (FY) 2024-25 for a contract term through March 6, 2028. SR Agrmt No. A-8272 Third Amendment with Civica Law Group APC.docx Agrmt No. A-8272 Third Amendment with Civica Law Group APC.pdf Agrmt No. A-8272 Second Amendment with Civica Law Group APC.pdf Agrmt No. A-8272 First Amendment with Civica Law Group APC.pdf Agrmt No. A-8272 with Civica Law Group APC.pdf 5.6 Approve Second Amendment to Agreement with SiFi Networks Palmdale, LLC for adjustments to construction methods for the installation of fiber optic in the public right-of-way and for increase to service costs. SR Agrmt No. A-7258 Second Amendment with SiFi Networks Palmdale LLC.docx Agrmt No. A-7258 Second Amendment with SiFi Networks Palmdale LLC.pdf Agrmt No. A-7258 First Amendment with SiFi Networks Palmdale LLC.pdf Agrmt No. A-7258 with SiFi Networks Palmdale LLC.pdf 5.7 Adopt Resolution No. CC 2025-009, a Resolution of the City Council of the City of Palmdale declaring its intention to conduct a public hearing to consider the vacation of portions of 8th Street East south of Rancho Vista Boulevard and north of East Avenue P-8. SR Reso. No. CC 2025-009.docx Reso. No. CC 2025-009.docx Exh A and B Reso. No. CC 2025-009.pdf 5.8 Receive and file the Sanitary Sewer Management Plan (SSMP) Audit. SR Palmdale SSMP Audit.docx Rpt. City of Palmdale SSMP Audit Checklist Report 2024.pdf 5.9 Award and Approve agreement with Golden West Fence for Landscape Maintenance District (LMD) wrought iron fence replacement services in an amount not to exceed $138,820 for a term of 180 working days from the date of the Notice to Proceed. SR Agrmt No. A-9204 with Golden West Fence.docx Agrmt No. A-9204 with Golden West Fence.pdf 5.10 Notice of Completion (NOC) - Accept public street, sewer, and, drainage improvements for Tract 54058-04 located at 20th Street West and Avenue P-8. SR NOC 05-156.docx NOC 05-156.pdf City Council Tuesday, February 18, 2025 3

Exh A List of Completed Public Improvements 05-156.pdf Exh B Site Map Location 05-156.pdf Site Photo.pdf 5.11 Notice of Completion (NOC) - Accept public sewer and drainage improvements for Tract 60732 located at 20th Street West and Quick Street. SR NOC 21-14.docx NOC 21-14.pdf Exh A List of Completed Public Improvements.pdf Exh B Site Map Location.pdf Site Map.pdf 5.12 Approve Requisition No. 250823 with Plumber's Depot, Inc. for the purchase of one WM350 Compact Steerable Pipe Transporter and one MZ350 OZ3 CCTV Camera for a total not to exceed amount of $236,202. SR Req. No. 250823 with Plumbers Depot Inc.docx Req. No. 250823 with Plumbers Depot Inc.pdf HGACBuy Contract No. SC06-24.pdf 5.13 Approve the minutes from the previous meeting. Mins 01 22 2025.pdf 6. JOINT CONSENT CALENDAR CC/SA/HA/IDA/PAA/PCA/PFA 6.1 Review and Approve the Fiscal Year 2024-25 Mid-Year Budget Adjustments, and Adopt Resolution No. CC 2025-021, a Resolution of the City Council of the City of Palmdale amending the City's Classification and Pay Plan for general positions. SR Mid-Year Budget FY 2024-25.docx Atch Mid-Year Budget FY 2024-25.pdf Reso. No. CC 2025-021.docx Exh 1 General Classification and Pay Plan.docx 6.2 Approve the minutes from the previous Housing Authority meeting. Mins 01 08 2025 HA.pdf Mins 12 18 2024 HA.pdf 7. PUBLIC HEARING 7.1 Public Hearing to review the Substantial Amendment to the 2024-2025 Annual Action Plan, the proposed Section 108 Application and the Expenditure of Community Development Block Grant (CDBG) Funds; Receive public comment in compliance with the requirements of the U.S. Department of Housing and Urban Development (HUD) and the City's Citizen Participation Plan; Approve the Substantial Amendment to the 2024-2025 Action Plan; and Adopt Resolution No. CC 2025-007, a Resolution of the City Council of the City of Palmdale Authorizing City Council Tuesday, February 18, 2025 4

the City Manager or her designee to submit the Section 108 Loan Guarantee Application to HUD for a $7,134,000 Loan for South Antelope Valley Emergency Services (SAVES) Facility Improvements SR CC Section 108 App.docx Reso. No. CC 2025-007.docx Atch 1 Section 108 Application.pdf 7.2 Introduction and Adoption of Ordinance No. 1652, an Ordinance of the City Council of the City of Palmdale approving General Plan Amendment 23-0003, Zone Change 23-0003, Tentative Parcel Map 84001, Conditional Use Permit 22- 006 and Site Plan Review 22-007 to modify the General Plan Land Use designation and zone from Mixed Use 2 to Neighborhood Commercial; subdivide 5.69 acres into two lots to facilitate the construction of a ten-island fueling station, a 7,258-square-foot grocery store, and a 2,127-square-foot drive-through carwash located on the northwest corner of East Avenue R and 25th Street East. SR Ord. No. 1652 and Reso. No. CC 2025-011.docx Ord. No. 1652.docx Reso. No. CC 2025-011.docx Exh F Reso. No. CC 2025-011 MND.pdf Exh F Reso. No. CC 2025-011 MMRP.pdf 7.3 Introduction and Adoption of Ordinance No. 1653, an Ordinance of the City Council of the City of Palmdale approving Comprehensive Development 23-0002, and Adopt Resolution No. CC 2025-012 approving Conditional Use Permit 23- 0018, and Vesting Tentative Tract Maps 23-0003 (VTTM 51508-3) and 23-0004 (VTTM 63145) to facilitate the development of approximately 75 acres for the purpose of constructing 627 single-family residences within Phase 1B of the Ritter Ranch Specific Plan generally located to the east and west of Westland Drive /Ranch Center Drive and south of City Ranch Road. SR CDEV 23-0002.docx Ord. No. 1653.docx Exh E Ord. No. 1653 CDEV23-0002.pdf Reso. No. CC 2025-012.docx Exh H Reso. No. CC 2025-012 (VTTM 51508-03 COA's).docx Exh I Reso. No. CC 2025-012 (VTTM 63145 COA's).docx Exh J Reso. No. CC 2025-012 Addendum.pdf 8. APPOINTMENT 8.1 Appoint a member of the Council to serve as the delegate on the Southern California Association of Governments (SCAG) Regional Council District 43 for a two-year term. SR SCAG.docx 9. NEW BUSINESS City Council Tuesday, February 18, 2025 5

9.1 Review the Fair Political Practices Commission ("FPPC") biannual Election Local Contribution Limitation; City Council consideration of removal of campaign contribution limitations for City of Palmdale Elections. SR FPPC City Council Report.docx FPPC Guidelines.pdf Reso. No. CC 2025-022.docx 10. CITY MANAGER’S REPORT 11. SHERIFF'S REPORT 12. NON-AGENDA PUBLIC COMMENTS: Now is the time for public participation on items not listed on the agenda. Each speaker is allotted two (2) minutes total. 13. COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE AGENDA ITEMS 14. PRESENTATION BY CITY ATTORNEY 14.1 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Los Angeles County Superior Court Case No. 22STCV01269 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 14.2 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION The existing facts and circumstances that constitute a significant exposure to litigation are detailed in the following claim received by the City, which is available for public inspection pursuant to Government Code Section 54957.5: Stoneham v. City of Palmdale et al, Claim Nos. L22-075, 076 and 0155 15. ANNOUNCEMENT BY CITY ATTORNEY 16. ADJOURN meeting to March 4, 2025, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California. Americans with Disabilities Act (ADA) Accommodations In accordance with the Americans with Disabilities Act of 1990, if you require a disability- related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (661) 267-5151 at least 48 hours prior to the meeting. If you require oral translation, please contact the City Clerk’s Office at (661) 267-5151 at least 48 hours prior to the meeting. City Council Tuesday, February 18, 2025 6

City Council Tuesday, February 18, 2025 7

1. CALL MEETING TO ORDER Note: All City Council memberships are reflected in their City Council titles. 2. ROLL CALL MAYOR LOA, MAYOR PRO TEM BETTENCOURT, COUNCILMEMBERS BISHOP, OHLSEN, ALARCÓN COMMISSIONERS FRAGA-SAENZ, BETTS 3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE PUBLIC COMMENT RULES “(California Government Code Section 54954.3). (a) Every agenda for regular meetings shall provide an opportunity for members of the public to directly address the legislative body on any item of interest to the public, before or during the legislative body’s consideration of the item, that is within the subject matter jurisdiction of the legislative body, provided that no action shall be taken on any item not appearing on the agenda unless the action is otherwise authorized by subdivision (b) of Section 54954.2 [section omitted]. CITY COUNCIL SUCCESSOR AGENCY HOUSING AUTHORITY INDUSTRIAL DEVELOPMENT AUTHORITY PALMDALE AIRPORT AUTHORITY PALMDALE CIVIC AUTHORITY PALMDALE FINANCING AUTHORITY CITY COUNCIL CHAMBER 38300 SIERRA HIGHWAY SUITE B PALMDALE, CA 93550 TUESDAY, FEBRUARY 18, 2025 5:00 PM www.cityofpalmdaleca.gov WELCOME City Council Tuesday, February 18, 2025

(b) (1) The legislative body of a local agency may adopt reasonable regulations to ensure that the intent of the subdivision (a) is carried out, including, but not limited to, regulations limiting the total amount of time allocated for public testimony on particular issues and for each individual speaker. (2) Notwithstanding paragraph (1), when the legislative body of a local agency limits time for public comment, the legislative body of a local agency shall provide at least twice the allotted time to a member of the public who utilizes a translator to ensure that non- English speakers receive the same opportunity to directly address the legislative body of a local agency.” In furtherance of Section 54954.3 of the Brown Act, the public is allotted to speak a total of two (2) minutes on the entirety of the Consent Calendar, Appointment(s), New Business and Closed Session, with two (2) minutes on each Public Hearing, and, if desired, an additional two (2) minutes on items not on the agenda that are within the subject matter jurisdiction of the City Council. As specified in the Brown Act, a speaker utilizing a translator will receive twice the amount of time specified. 4. PUBLIC COMMENTS CONSENT CALENDAR, APPOINTMENT(S), NEW BUSINESS, AND CLOSED SESSION: Now is the time for public participation on items listed on the Consent Calendar, Appointment(s), New Business, and Closed Session. Each speaker is allotted two (2) minutes in total for the entirety of the above sections. 5. CONSENT CALENDAR All matters listed under the Consent Calendar will be enacted by one motion unless an item(s) is pulled by Council, in which case the item(s) will be removed from the 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 report for December 2024. SR Monthly Investment Reports December 2024.docx Rpt. Monthly Investment Reports December 2024.pdf 5.3 Approve Agreement with Proslide Technologies Inc., to refurbish DryTown Water Park's Dusty's Mindshaft Racer Slide for the not to exceed amount of $626,000 for a term of 90 days from the Notice to Proceed. SR Agrmt No. A-9214 with Proslide Technology, Inc.docx Agrmt No. A-9214 with Proslide Technology, Inc.pdf City Council Tuesday, February 18, 2025

5.4 Adopt Resolution No. CC 2025-018, a Resolution of the City Council of the City of Palmdale declaring a Housing Crisis in response to recent fires. SR Reso. No. CC 2025-018.docx Reso. No. CC 2025-018.docx 5.5 Approve the Third Amendment to the Legal Services Agreement with Civica Law Group, APC, to increase the agreement amount by $280,000, for Fiscal Year (FY) 2024-25 for a contract term through March 6, 2028. SR Agrmt No. A-8272 Third Amendment with Civica Law Group APC.docx Agrmt No. A-8272 Third Amendment with Civica Law Group APC.pdf Agrmt No. A-8272 Second Amendment with Civica Law Group APC.pdf Agrmt No. A-8272 First Amendment with Civica Law Group APC.pdf Agrmt No. A-8272 with Civica Law Group APC.pdf 5.6 Approve Second Amendment to Agreement with SiFi Networks Palmdale, LLC for adjustments to construction methods for the installation of fiber optic in the public right-of-way and for increase to service costs. SR Agrmt No. A-7258 Second Amendment with SiFi Networks Palmdale LLC.docx Agrmt No. A-7258 Second Amendment with SiFi Networks Palmdale LLC.pdf Agrmt No. A-7258 First Amendment with SiFi Networks Palmdale LLC.pdf Agrmt No. A-7258 with SiFi Networks Palmdale LLC.pdf 5.7 Adopt Resolution No. CC 2025-009, a Resolution of the City Council of the City of Palmdale declaring its intention to conduct a public hearing to consider the vacation of portions of 8th Street East south of Rancho Vista Boulevard and north of East Avenue P-8. SR Reso. No. CC 2025-009.docx Reso. No. CC 2025-009.docx Exh A and B Reso. No. CC 2025-009.pdf 5.8 Receive and file the Sanitary Sewer Management Plan (SSMP) Audit. SR Palmdale SSMP Audit.docx Rpt. City of Palmdale SSMP Audit Checklist Report 2024.pdf 5.9 Award and Approve agreement with Golden West Fence for Landscape Maintenance District (LMD) wrought iron fence replacement services in an amount not to exceed $138,820 for a term of 180 working days from the date of the Notice to Proceed. SR Agrmt No. A-9204 with Golden West Fence.docx Agrmt No. A-9204 with Golden West Fence.pdf 5.10 Notice of Completion (NOC) - Accept public street, sewer, and, drainage improvements for Tract 54058-04 located at 20th Street West and Avenue P-8. SR NOC 05-156.docx NOC 05-156.pdf City Council Tuesday, February 18, 2025

Exh A List of Completed Public Improvements 05-156.pdf Exh B Site Map Location 05-156.pdf Site Photo.pdf 5.11 Notice of Completion (NOC) - Accept public sewer and drainage improvements for Tract 60732 located at 20th Street West and Quick Street. SR NOC 21-14.docx NOC 21-14.pdf Exh A List of Completed Public Improvements.pdf Exh B Site Map Location.pdf Site Map.pdf 5.12 Approve Requisition No. 250823 with Plumber's Depot, Inc. for the purchase of one WM350 Compact Steerable Pipe Transporter and one MZ350 OZ3 CCTV Camera for a total not to exceed amount of $236,202. SR Req. No. 250823 with Plumbers Depot Inc.docx Req. No. 250823 with Plumbers Depot Inc.pdf HGACBuy Contract No. SC06-24.pdf 5.13 Approve the minutes from the previous meeting. Mins 01 22 2025.pdf 6. JOINT CONSENT CALENDAR CC/SA/HA/IDA/PAA/PCA/PFA 6.1 Review and Approve the Fiscal Year 2024-25 Mid-Year Budget Adjustments, and Adopt Resolution No. CC 2025-021, a Resolution of the City Council of the City of Palmdale amending the City's Classification and Pay Plan for general positions. SR Mid-Year Budget FY 2024-25.docx Atch Mid-Year Budget FY 2024-25.pdf Reso. No. CC 2025-021.docx Exh 1 General Classification and Pay Plan.docx 6.2 Approve the minutes from the previous Housing Authority meeting. Mins 01 08 2025 HA.pdf Mins 12 18 2024 HA.pdf 7. PUBLIC HEARING 7.1 Public Hearing to review the Substantial Amendment to the 2024-2025 Annual Action Plan, the proposed Section 108 Application and the Expenditure of Community Development Block Grant (CDBG) Funds; Receive public comment in compliance with the requirements of the U.S. Department of Housing and Urban Development (HUD) and the City's Citizen Participation Plan; Approve the Substantial Amendment to the 2024-2025 Action Plan; and Adopt Resolution No. CC 2025-007, a Resolution of the City Council of the City of Palmdale Authorizing City Council Tuesday, February 18, 2025

the City Manager or her designee to submit the Section 108 Loan Guarantee Application to HUD for a $7,134,000 Loan for South Antelope Valley Emergency Services (SAVES) Facility Improvements SR CC Section 108 App.docx Reso. No. CC 2025-007.docx Atch 1 Section 108 Application.pdf 7.2 Introduction and Adoption of Ordinance No. 1652, an Ordinance of the City Council of the City of Palmdale approving General Plan Amendment 23-0003, Zone Change 23-0003, Tentative Parcel Map 84001, Conditional Use Permit 22- 006 and Site Plan Review 22-007 to modify the General Plan Land Use designation and zone from Mixed Use 2 to Neighborhood Commercial; subdivide 5.69 acres into two lots to facilitate the construction of a ten-island fueling station, a 7,258-square-foot grocery store, and a 2,127-square-foot drive-through carwash located on the northwest corner of East Avenue R and 25th Street East. SR Ord. No. 1652 and Reso. No. CC 2025-011.docx Ord. No. 1652.docx Reso. No. CC 2025-011.docx Exh F Reso. No. CC 2025-011 MND.pdf Exh F Reso. No. CC 2025-011 MMRP.pdf 7.3 Introduction and Adoption of Ordinance No. 1653, an Ordinance of the City Council of the City of Palmdale approving Comprehensive Development 23-0002, and Adopt Resolution No. CC 2025-012 approving Conditional Use Permit 23- 0018, and Vesting Tentative Tract Maps 23-0003 (VTTM 51508-3) and 23-0004 (VTTM 63145) to facilitate the development of approximately 75 acres for the purpose of constructing 627 single-family residences within Phase 1B of the Ritter Ranch Specific Plan generally located to the east and west of Westland Drive /Ranch Center Drive and south of City Ranch Road. SR CDEV 23-0002.docx Ord. No. 1653.docx Exh E Ord. No. 1653 CDEV23-0002.pdf Reso. No. CC 2025-012.docx Exh H Reso. No. CC 2025-012 (VTTM 51508-03 COA's).docx Exh I Reso. No. CC 2025-012 (VTTM 63145 COA's).docx Exh J Reso. No. CC 2025-012 Addendum.pdf 8. APPOINTMENT 8.1 Appoint a member of the Council to serve as the delegate on the Southern California Association of Governments (SCAG) Regional Council District 43 for a two-year term. SR SCAG.docx 9. NEW BUSINESS City Council Tuesday, February 18, 2025

9.1 Review the Fair Political Practices Commission ("FPPC") biannual Election Local Contribution Limitation; City Council consideration of removal of campaign contribution limitations for City of Palmdale Elections. SR FPPC City Council Report.docx FPPC Guidelines.pdf Reso. No. CC 2025-022.docx 10. CITY MANAGER’S REPORT 11. SHERIFF'S REPORT 12. NON-AGENDA PUBLIC COMMENTS: Now is the time for public participation on items not listed on the agenda. Each speaker is allotted two (2) minutes total. 13. COUNCIL REPORTS, ANNOUNCEMENTS AND REQUESTS FOR FUTURE AGENDA ITEMS 14. PRESENTATION BY CITY ATTORNEY 14.1 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Los Angeles County Superior Court Case No. 22STCV01269 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 14.2 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION The existing facts and circumstances that constitute a significant exposure to litigation are detailed in the following claim received by the City, which is available for public inspection pursuant to Government Code Section 54957.5: Stoneham v. City of Palmdale et al, Claim Nos. L22-075, 076 and 0155 15. ANNOUNCEMENT BY CITY ATTORNEY 16. ADJOURN meeting to March 4, 2025, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California. Americans with Disabilities Act (ADA) Accommodations In accordance with the Americans with Disabilities Act of 1990, if you require a disability- related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (661) 267-5151 at least 48 hours prior to the meeting. If you require oral translation, please contact the City Clerk’s Office at (661) 267-5151 at least 48 hours prior to the meeting. City Council Tuesday, February 18, 2025

City Council Tuesday, February 18, 2025

City Council Staff Report DATE: FEBRUARY 18, 2025 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 2024 RECOMMENDATION Staff recommends that the City Council: Receive and file the monthly and quarterly investment activity reports for the City and Successor Agency for December 2024. 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 investment reports provide a synopsis of the City and Successor Agency's investment activity. They provide information on assets, allocations, average maturities, yields, and book valuations. The interest rates presented are the most current rates available as of the date of this report. The market values presented for pooled City and Successor Agency investments are based on closing prices for the related investment as of the date of this report. This information was obtained from the Wall Street Journal, Bloomberg Financial Markets, Capital Market Finances, or other reliable sources of market prices.

Report to Mayor and City Council Re: Monthly and Quarterly Investment Reports February 18, 2025 Page 2 DISCUSSION Compliance with Investment Policy For December, the City’s invested portfolio totaled $323,444,696, an increase of $712,844 from the previous month and an increase of $17,039,556 compared to the prior year. The monthly increase resulted from the difference in maturities, new purchases, and interest earned during this period. The par value of Successor Agency’s portfolio as of December was $4,530,812. The balance decreased by $951,201 from the prior month due to debt service payments. All investments meet criteria appropriate to Section 8 of the Investment Policy. The portfolios are based on a combination of various investments, including CDs, Corporate Notes, US Treasury Securities, and Government Agency Paper, each adhering to portfolio percentage limitations. The Finance Division is the custodian for the City and Successor Agency’s investment portfolio and follows the three main principles of both entities’ investment policies: 1) Investment in financial instruments that mitigate 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 operational requirements. Thus, the City invests in two pooled funds, 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 uncertainties for ongoing operating and maintenance needs. The pooled funds provide a higher liquidity ratio to ensure the City and Successor Agency meet cash flow requirements. The City's LAIF balance at the end of December was $111,810,289, an increase of $11,450,000 due to the transfer of funds between the City’s General fund and LAIF for the current month. The Successor Agency’s LAIF balance at the end of December was $3,813,014, there were no changes from the prior month. The City’s CAMP balance at the end of December was $51,788,998 compared to $53,580,131 in November. The decrease is due to a withdrawal made during the month to cover operating expenses.

Report to Mayor and City Council Re: Monthly and Quarterly Investment Reports February 18, 2025 Page 3 The interest rates presented are the most current rates available as of the date of this report. As of December 31, 2024, the interest rates for LAIF and CAMP investments were at 4.434 percent and 4.73 percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of November were 4.48 percent and 4.87 percent. This time last year, LAIF and CAMP rates were at 3.929 percent and 5.55, respectively. The chart above shows the LAIF and CAMP average monthly yields from March 2024 through December 2024. The difference between the two funds’ performance is primarily due to their varying pool characteristics. CAMP’s portfolio composition is more prone to market volatility, resulting in performance variations. Diversity The Finance Division aims to diversify the investment portfolios to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. The City and Successor Agency’s investment portfolios remain strongly diversified. The monthly reports include all investments held by both entities and current book values as of December 31, 2024. The City and Successor Agency are expected to have sufficient funds to meet its expenditure requirements for the next six months. The Finance Division will continue to monitor current economic conditions and the impact on interest rates. 4.23% 4.27% 4.33% 4.48% 4.52% 4.58% 4.58% 4.52% 4.48% 4.43% 5.48% 5.44% 5.43% 5.43% 5.43% 5.41% 5.29% 5.03% 4.87% 4.73% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q3 Mar Apr May Q4 Jun July Aug Q1 Sep Oct Nov Q2 Dec Pooled Investments Monthly Yields LAIF CAMP

Report to Mayor and City Council Re: Monthly and Quarterly Investment Reports February 18, 2025 Page 4 Attached are summaries of the investments in the City and Successor Agency’s books as of December 31, 2024. FISCAL IMPACT $0; There is no fiscal impact associated with the recommended actions for this report. STRATEGIC PLAN Goal II: Ensure long-term fiscal health of the City and maintain funding for services. B. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health. C. Involve and expand engagement to enhance public oversight and transparency. Prepared by: Janelle Samson, Director of Operations Certified as to availability of Funds: Janelle Samson, Director of Operations Approved by: Ronda Perez, City Manager Approved as to form: William P. Curley, III, City Attorney ATTACHMENTS Rpt. Monthly and Quarterly Investment Reports December 2024

CITY OF PALMDALE TREASURER'S REPORT OF INVESTMENTS DECEMBER 31, 2024 PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT U.S. TREASURY SECURITIES Yield 03-19-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 3,000,000.00 3,260,634.36 2,902,140.00 05-11-21 02-28-26 CITY 9128286F2 U.S. Treasury Note 0.66 3,000,000.00 3,261,331.50 2,888,310.00 07-12-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 5,000,000.00 5,451,958.35 4,836,900.00 03-08-23 03-31-26 CITY 9128286L9 U.S. Treasury Note 2.25 3,200,000.00 3,029,330.80 3,064,000.00 01-03-24 12-31-26 CITY 912828YX2 U.S. Treasury Note 0.04 5,000,000.00 4,696,880.23 4,666,600.00 01-03-24 06-30-27 CITY 91282CEW7 U.S. Treasury Note 0.04 5,000,000.00 4,897,630.28 4,825,200.00 01-03-24 09-30-27 CITY 91282CFM8 U.S. Treasury Note 0.04 2,500,000.00 2,523,771.66 2,472,450.00 01-08-24 02-15-26 CITY 91282CGL9 U.S. Treasury Note 0.04 5,000,000.00 4,987,205.23 4,932,250.00 01-08-24 06-15-26 CITY 91282CHH7 U.S. Treasury Note 0.04 5,000,000.00 5,001,760.94 4,942,800.00 12-18-24 09-30-29 CITY 91282CFL0 U.S. Treasury Note 0.39 5,000,000.00 4,977,094.45 4,977,094.45 12-18-24 10-31-29 CITY 91282CFT3 U.S. Treasury Note 0.40 5,000,000.00 4,988,321.47 4,988,321.47 12-18-24 11-30-29 CITY 91282CFY2 U.S. Treasury Note 0.39 5,000,000.00 4,942,086.29 4,942,086.29 TOTAL U.S. TREASURY SECURITIES 51,700,000.00$ 52,018,005.56$ 50,438,152.21$ GOVERNMENT AGENCY PAPER 06-10-20 06-16-25 CITY 3133ELK37 Federal Farm Credit 0.78 5,000,000.00 5,000,000.00 4,781,500.00 04-01-21 04-01-25 CITY 3133EMUP5 Federal Farm Credit 0.71 5,000,000.00 5,000,000.00 4,826,404.05 05-11-21 09-04-25 CITY 3133EJYM5 Federal Farm Credit 0.59 1,000,000.00 1,103,275.25 976,880.00 05-11-21 09-04-25 CITY 3133EJYM5 Federal Farm Credit 0.57 2,000,000.00 2,208,460.00 1,953,760.00 06-04-21 11-07-25 CITY 3135G06G3 Fannie Mae 0.55 3,000,000.00 2,993,675.25 2,826,750.00 06-30-21 12-30-25 CITY 3130AMRQ7 Federal Home Loan Note 0.88 3,000,000.00 3,000,000.00 2,821,947.30 07-29-21 04-29-26 CITY 3130AN5C0 Federal Home Loan Note 1.05 4,000,000.00 4,010,455.13 3,734,320.00 12-17-21 11-12-25 CITY 3134GXBM5 Federal Home Loan Note 1.15 1,150,000.00 1,125,785.50 1,082,265.00 12-17-21 06-23-25 CITY 3133ENHW3 Federal Farm Credit 1.17 10,000,000.00 10,000,000.00 9,595,310.20 12-20-21 07-30-25 CITY 3136G4ZP1 Fannie Mae 0.65 3,500,000.00 3,444,175.00 3,339,331.94 12-20-21 09-24-25 CITY 3134GWUG9 Freddie Mac 0.57 10,000,000.00 9,806,600.00 9,459,892.40 12-21-21 12-22-26 CITY 3133ENJC5 Federal Farm Credit 1.29 5,000,000.00 5,000,000.00 4,589,481.35 01-14-22 01-14-25 CITY 3130AQEA7 Federal Home Loan Note 1.05 7,000,000.00 7,000,000.00 6,839,056.49 06-29-22 08-12-25 CITY 3133EL3P7 Federal Farm Credit 3.34 1,810,000.00 1,660,349.20 1,722,111.58 06-29-22 03-28-25 CITY 3130A5DH9 Federal Home Loan Note 3.34 1,950,000.00 1,937,715.00 1,920,301.71 06-24-22 02-26-27 CITY 3130AL5A8 Federal Home Loan Note 3.33 5,000,000.00 4,479,000.00 4,533,218.00 08-17-22 10-27-26 CITY 3134GW4C7 Freddie Mac 0.80 5,000,000.00 4,539,500.00 4,562,202.10 01-06-23 02-25-27 CITY 3130AQRH8 Federal Home Loan Note 4.38 5,000,000.00 4,590,638.89 4,670,265.65 01-06-23 04-19-27 CITY 3130ARHJ3 Federal Home Loan Note 4.38 5,000,000.00 4,801,354.86 4,801,570.80 05-18-23 05-18-27 CITY 3133EPKC8 Federal Farm Credit 5.39 5,000,000.00 5,000,000.00 4,991,602.80 06-05-23 05-30-28 CITY 3133EPLE3 Federal Farm Credit 4.67 2,815,000.00 2,822,746.50 2,790,565.80 05-03-24 05-01-28 CITY 3133ERCX7 Federal Farm Credit 5.17 5,000,000.00 5,000,000.00 5,000,777.50 12-03-24 12-04-29 CITY 3130B3XP3 Federal Home Loan 4.50 1,000,000.00 1,000,000.00 1,000,000.00 12-04-24 12-02-27 CITY 3133ERE23 Federal Farm Credit 4.32 1,000,000.00 1,000,000.00 1,000,000.00 TOTAL GOVERNMENT AGENCY PAPER 98,225,000.00$ 96,523,730.58$ 93,819,514.67$ CITY OF PALMDALE INVESTMENTS

CITY OF PALMDALE TREASURER'S REPORT OF INVESTMENTS DECEMBER 31, 2024 PURCHASE MATURITY ACCOUNT/ INTEREST PAR PURCHASE INVESTED DATE DATE FUND INSTITUTION RATE AMOUNT AMOUNT AMOUNT CERTIFICATES OF DEPOSIT 01-04-24 06-15-26 CITY 05580A4Y7 BMW Bank of NA NA 4.03 240,000.00 243,434.40 238,848.00 01-04-24 11-30-27 CITY 46656MVH1 JPMorgan Chase Bank 4.76 240,000.00 242,022.91 240,415.20 01-04-24 12-28-28 CITY 09582YAV4 Blue Ridge Bank NA 4.09 240,000.00 240,948.00 234,677.60 06-11-24 06-12-28 CITY 59541KCV7 Mid-Missouri Bank 5.15 245,000.00 245,034.57 243,510.50 06-11-24 06-11-26 CITY 38150VUZ0 Goldman Sachs Bank 5.05 245,000.00 245,033.90 245,615.57 06-13-24 06-13-29 CITY 89235MPP0 Toyota Financial SGS 4.65 245,000.00 245,000.00 246,281.17 06-14-24 06-15-26 CITY 34520LBC6 Forbright Bank 5.05 245,000.00 245,000.00 245,699.42 06-14-24 06-14-28 CITY 307811KA6 Farmers & Merchs Bank 5.00 245,000.00 245,000.00 242,169.22 06-14-24 06-14-29 CITY 69503PAB7 Pacific Valley Bank 5.20 245,000.00 245,000.00 243,313.18 06-17-24 06-17-26 CITY 8562855V9 State Bank of India 5.10 245,000.00 245,000.00 245,875.30 06-18-24 06-18-29 CITY 229083AA8 Evangeline Bank & Trust 5.30 245,000.00 245,000.00 245,000.16 06-20-24 06-22-26 CITY 06051XER9 Bank of America NA 5.05 245,000.00 245,000.00 245,737.44 06-21-24 06-22-26 CITY 35634MAE1 Freedom Bank/Maywood NJ 5.05 245,000.00 245,000.00 245,737.72 06-25-24 06-25-29 CITY 09776DAG9 BOM Bank 5.35 245,0