City Council/SA - 07/12/2023 - 5pm

Mayor Pro Tem Alarcón will be participating via teleconference from New York Marriott Marquis, 1535 Broadway, 8th Floor Lobby, New York, NY 10063 pursuant to Government Code Section 54953 1. CALL MEETING TO ORDER *Note: All City Council memberships are reflected in their City Council titles. 2. ROLL CALL MAYOR BETTENCOURT, MAYOR PRO TEM ALARCÓN, COUNCILMEMBERS BISHOP, LOA, OHLSEN 3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE 4. PRESENTATIONS 4.1 Presentation by American Public Works Association to Lynn Glidden, Director of Public Works, recognizing the Public Works Department re-accreditation. 5. WAIVER OF FULL READING OF RESOLUTION(S) and ORDINANCE(S) Staff Recommendation: Move to waive full reading of the Resolution (s) and/or Ordinance(s) to be considered and voted on at this meeting. (Voice Vote - Requires a majority to waive.) CITY COUNCIL MEETING SUCCESSOR AGENCY CITY COUNCIL CHAMBERS 38300 SIERRA HIGHWAY SUITE B PALMDALE, CA 93550 WEDNESDAY, JULY 12, 2023 5:00 PM www.cityofpalmdale.org WELCOME City Council Wednesday, July 12, 2023 1

6. 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]. (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 three (3) minutes on the entirety of the Consent Calendar 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. 7. PUBLIC COMMENTS: CONSENT CALENDAR AND CLOSED SESSION: Now is the time for public participation on items listed on the Consent Calendar and Closed Session. Each speaker is allotted three (3) minutes total on the entirety of the above sections. 8. 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 Calendar and will be considered separately following this portion of the Agenda. 8.1 Receive and file the monthly investment activity reports for May 2023. 1. Staff_Report_-_Investment_Report_MAY_2023.docx 11 May 2023 City of Palmdale & Successor Investment Rpt.pdf City Council Wednesday, July 12, 2023 2

8.2 Approve Agreement with Flock Group, Inc to provide a fixed location Automated License Plate Recognition (ALPR) system, 50 LPR cameras, and provide implementation services in a not to exceed amount of $157,500 for a one (1) year term. Flock_LPR_Staff_Report_July_2023.docx A-8391 Signed by Flock.pdf 8.3 Adopt Resolution No. CC 2023-047, a Resolution of the City Council of the City of Palmdale Approving the Palmdale California Environmental Quality Act Procedures. CC Staff Report CEQA Guidelines.docx Resolution No. CC 2023-047.docx Appendix A and B to CEQA Guidelines.docx EXHIBIT I -CEQA Guidelines.docx 8.4 Notice of Completion - Accept Public Improvements for Pilot Travel Centers located at 5231 Pearblossom Highway. SR-07122023 (21-15).docx EXHIBIT A 21-15.docx EXHIBIT B (21-15).docx NOC_21-15 ST IMPROVEMENTS.doc 8.5 Notice of Completion - Accept Public Improvements for Desert Wind Church located at 38117 13th Street East. SR-07122023 (20-27).docx EXHIBIT A 20-27.docx EXHIBIT B (20-27).docx NOC_20-27 ST IMPROVEMENTS.doc 8.6 Award On-Call Emergency Sewer Collection System Repairs Agreement with Mike Prlich & Sons in an amount not to exceed $350,000 for on-call citywide sewer emergency repairs for at term of three (3) years. On Call Sewer Emergency Repairs - Staff Report (SB).docx City of Palmdale - Mike Prlich and Sons, Inc. (A-8329) - 04-10-2023 - Preview.pdf 8.7 Award construction agreement with Blue Ridge Mechanical for PN 804, The Oasis Generator Infrastructure Project, in the amount of $98,078. PN 804 Staff Report 7.12.23 lg updated.docx Construction Contract - PN 804 Name of Contractor (A-7416).pdf 8.8 Award construction agreement with Interior Demolition, Inc. for PN 873, Hammack Activity Center Demolition Project, in the amount of $284,295 and determine this project to be exempt from CEQA. PN 873 Staff Report - Award Construction.docx PN873 - Hammack Demo Draft (A-8187).pdf City Council Wednesday, July 12, 2023 3

Site Overview.pdf 8.9 Approve Purchase Order No. 20240001 with Walsma Oil Company, Inc. for Diesel and Unleaded Fuel, Motor Oil, and Lubricants in an amount not to exceed $600,000 for FY 2023-24. SR Approve PO 20240001 Walsma Oil_2ndOTE.docx 1. Requested PO 20240001 Walsma Oil Company, Inc..pdf 2. Price Schedule IFB No. 21-004-3300 Walsma Oil Co. FY 2023-24.pdf 8.10 Approve Purchase Order No. 20240002 with Nutrien AG Solutions, Inc. for fertilizer supplies in an amount not to exceed $207,750 for FY 2023-24. SR Approve PO 20240002 Nutrien AG_2ndOTE.docx 1. Requested PO 20240002 Nutrien AG Solutions, Inc..pdf 2. Price Schedule IFB No. 21-001-3610 Nutrien AG FY 2023-24.pdf 8.11 Approve Purchase Order No. 20240003 with Smith Pipe & Supply, Inc. for irrigation and water conservation supplies in an amount not to exceed $278,000 for FY 2023-24. SR Approve PO 20240003 Smith Pipe & Supply_2ndOTE.docx 1. Requested PO 20240003 Smith Pipe & Supply, Inc..pdf 2. Price Schedule IFB No. 21-002-3600 Smith Pipe Supply FY 2023-24.pdf 8.12 Approve Purchase Order No. 20240004 with Wilbur-Ellis Company for herbicide and pesticide chemicals in an amount not to exceed $120,000 for FY 2023-24. SR Approve PO 20240004 Wilbur-Ellis_2ndOTE.docx 1. Requested PO 20240004 Wilbur-Ellis Company.pdf 2. Price Schedule IFB No. 21-001-3400 Wilbur-Ellis FY 2023-24 v02.pdf 8.13 Approve Purchase Order No. 20240005 with Hasa, Inc. for pool chemical supplies in an amount not to exceed $155,000 for FY 2023-24. SR Approve PO 20240005 Hasa, Inc_2ndOTE.docx 1. Requested PO 20240005 Hasa, Inc. OLD.pdf 2. Price Schedule IFB No. 21-002-3400 Hasa Inc. FY 23-24.pdf 8.14 Approve Final Tract Map No. 69651, located at Palmdale Blvd and 61st Street East. TR 69651 Approval - Staff Report.docx TR 69651 - Final.pdf 8.15 Approve service agreement for a digital divide study with Nutter Consulting in the amount of $140,000 for a term of six (6) months. A-8413 Nutter Consulting Staff Report_Revised.docx Consulting Services w- Term (#3A) - Nutter Consulting (A-8413) - 07-12-2023 - Preview (3).pdf City Council Wednesday, July 12, 2023 4

8.16 Approve the minutes from the previous meeting. June 7, 2023 - CC/SA City Council_SA_HA - 06_07_2023 - 5pm.pdf 9. PUBLIC HEARING 9.1 Adopt Resolution No. CC 2023-028, a Resolution of the City Council of the City of Palmdale approving the Engineer's Report and the continuation of the levy and collection of assessments for Fiscal Year 2023/2024 for the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02. PUBLIC COMMENTS: Now is the time for public participation on this item. Each speaker is allotted two (2) minutes. Palmdale DBAD - Staff Report 7-12-2023_final.docx Palmdale DBAD - Res 3 #CC 2023-028 for 7-12-2023_final.docx Drainage Engineers Report FY 2023-24_vFinal.pdf 9.2 Adopt Resolution No. CC 2023-029, a Resolution of the City Council of the City of Palmdale approving the Engineer's Report and the continuation of the levy and collection of assessments for Fiscal Year 2023/2024 for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations. PUBLIC COMMENTS: Now is the time for public participation on this item. Each speaker is allotted two (2) minutes. Palmdale LMD,Park,SLAD-Staff Report 7-12-23_final.docx Palmdale LMD,Park,SLAD-Res 3 #CC 2023-029 for 7-12-2023_final.docx LMD Engineers Report FY 2023-24_vFinal.pdf Park Engineers Report FY 2023-24_vFinal.pdf Streetlight Engineers Report FY 2023-24_vFinal.pdf 9.3 Adopt Resolution No. CC 2023-030, a Resolution of the City Council of the City of Palmdale updating the Sewer Collection Service Charge and ordering the continuation of the charge for the operation and maintenance of the Palmdale sewer collection system for Fiscal Year 2023/2024. PUBLIC COMMENTS: Now is the time for public participation on this item. Each speaker is allotted two (2) minutes. Staff Report 7-12-23_final.docx Resolution No. CC 2023-030 for 7-12-2023_final.doc Sewer Collection Service Charge Report FY 2023-24_v1.pdf City Council Wednesday, July 12, 2023 5

10. 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 on items not listed on the agenda. 11. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT PUBLIC EXPENSE 11.1 Council Reports on Committee Memberships and Meetings Attended at Public Expense. Bettencourt Informational Report 070523.docx BISHOP Informational Report 070123.docx LOA Informational Report 070523.docx Ohlsen Informational Report 070523.docx 12. CITY COUNCIL ANNOUNCEMENTS AND REQUESTS FOR NEW AGENDA ITEMS 13. CITY MANAGER’S REPORT 14. PRESENTATION BY CITY ATTORNEY 14.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Shanae Smith, Patricia Nevarez and Michael "Mike" Behen vs. City of Palmdale, et al. Los Angeles County Superior Court Case No. 22STCV18219 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 14.2 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Maithi Ricci v. City of Palmdale, et al. 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). 14.3 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Ricky Thorstensen v. City of Palmdale, et al. Los Angeles County Superior Court Case No. 22STCV29463 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). City Council Wednesday, July 12, 2023 6

14.4 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Kenya Torres vs. City of Palmdale, et al. Los Angeles County Superior Court Case No. 22STCV37041 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 15. ANNOUNCEMENT BY CITY ATTORNEY 16. ADJOURN meeting to July 19, 2023 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 72 hours prior to the meeting. If you require oral Spanish translation, please contact the City Clerk’s Office at (661) 267- 5151 at least 72 hours prior to the meeting. City Council Wednesday, July 12, 2023 7

Mayor Pro Tem Alarcón will be participating via teleconference from New York Marriott Marquis, 1535 Broadway, 8th Floor Lobby, New York, NY 10063 pursuant to Government Code Section 54953 1. CALL MEETING TO ORDER *Note: All City Council memberships are reflected in their City Council titles. 2. ROLL CALL MAYOR BETTENCOURT, MAYOR PRO TEM ALARCÓN, COUNCILMEMBERS BISHOP, LOA, OHLSEN 3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE 4. PRESENTATIONS 4.1 Presentation by American Public Works Association to Lynn Glidden, Director of Public Works, recognizing the Public Works Department re-accreditation. 5. WAIVER OF FULL READING OF RESOLUTION(S) and ORDINANCE(S) Staff Recommendation: Move to waive full reading of the Resolution (s) and/or Ordinance(s) to be considered and voted on at this meeting. (Voice Vote - Requires a majority to waive.) CITY COUNCIL MEETING SUCCESSOR AGENCY CITY COUNCIL CHAMBERS 38300 SIERRA HIGHWAY SUITE B PALMDALE, CA 93550 WEDNESDAY, JULY 12, 2023 5:00 PM www.cityofpalmdale.org WELCOME City Council Wednesday, July 12, 2023

6. 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]. (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 three (3) minutes on the entirety of the Consent Calendar 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. 7. PUBLIC COMMENTS: CONSENT CALENDAR AND CLOSED SESSION: Now is the time for public participation on items listed on the Consent Calendar and Closed Session. Each speaker is allotted three (3) minutes total on the entirety of the above sections. 8. 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 Calendar and will be considered separately following this portion of the Agenda. 8.1 Receive and file the monthly investment activity reports for May 2023. 1. Staff_Report_-_Investment_Report_MAY_2023.docx 11 May 2023 City of Palmdale & Successor Investment Rpt.pdf City Council Wednesday, July 12, 2023

8.2 Approve Agreement with Flock Group, Inc to provide a fixed location Automated License Plate Recognition (ALPR) system, 50 LPR cameras, and provide implementation services in a not to exceed amount of $157,500 for a one (1) year term. Flock_LPR_Staff_Report_July_2023.docx A-8391 Signed by Flock.pdf 8.3 Adopt Resolution No. CC 2023-047, a Resolution of the City Council of the City of Palmdale Approving the Palmdale California Environmental Quality Act Procedures. CC Staff Report CEQA Guidelines.docx Resolution No. CC 2023-047.docx Appendix A and B to CEQA Guidelines.docx EXHIBIT I -CEQA Guidelines.docx 8.4 Notice of Completion - Accept Public Improvements for Pilot Travel Centers located at 5231 Pearblossom Highway. SR-07122023 (21-15).docx EXHIBIT A 21-15.docx EXHIBIT B (21-15).docx NOC_21-15 ST IMPROVEMENTS.doc 8.5 Notice of Completion - Accept Public Improvements for Desert Wind Church located at 38117 13th Street East. SR-07122023 (20-27).docx EXHIBIT A 20-27.docx EXHIBIT B (20-27).docx NOC_20-27 ST IMPROVEMENTS.doc 8.6 Award On-Call Emergency Sewer Collection System Repairs Agreement with Mike Prlich & Sons in an amount not to exceed $350,000 for on-call citywide sewer emergency repairs for at term of three (3) years. On Call Sewer Emergency Repairs - Staff Report (SB).docx City of Palmdale - Mike Prlich and Sons, Inc. (A-8329) - 04-10-2023 - Preview.pdf 8.7 Award construction agreement with Blue Ridge Mechanical for PN 804, The Oasis Generator Infrastructure Project, in the amount of $98,078. PN 804 Staff Report 7.12.23 lg updated.docx Construction Contract - PN 804 Name of Contractor (A-7416).pdf 8.8 Award construction agreement with Interior Demolition, Inc. for PN 873, Hammack Activity Center Demolition Project, in the amount of $284,295 and determine this project to be exempt from CEQA. PN 873 Staff Report - Award Construction.docx PN873 - Hammack Demo Draft (A-8187).pdf City Council Wednesday, July 12, 2023

Site Overview.pdf 8.9 Approve Purchase Order No. 20240001 with Walsma Oil Company, Inc. for Diesel and Unleaded Fuel, Motor Oil, and Lubricants in an amount not to exceed $600,000 for FY 2023-24. SR Approve PO 20240001 Walsma Oil_2ndOTE.docx 1. Requested PO 20240001 Walsma Oil Company, Inc..pdf 2. Price Schedule IFB No. 21-004-3300 Walsma Oil Co. FY 2023-24.pdf 8.10 Approve Purchase Order No. 20240002 with Nutrien AG Solutions, Inc. for fertilizer supplies in an amount not to exceed $207,750 for FY 2023-24. SR Approve PO 20240002 Nutrien AG_2ndOTE.docx 1. Requested PO 20240002 Nutrien AG Solutions, Inc..pdf 2. Price Schedule IFB No. 21-001-3610 Nutrien AG FY 2023-24.pdf 8.11 Approve Purchase Order No. 20240003 with Smith Pipe & Supply, Inc. for irrigation and water conservation supplies in an amount not to exceed $278,000 for FY 2023-24. SR Approve PO 20240003 Smith Pipe & Supply_2ndOTE.docx 1. Requested PO 20240003 Smith Pipe & Supply, Inc..pdf 2. Price Schedule IFB No. 21-002-3600 Smith Pipe Supply FY 2023-24.pdf 8.12 Approve Purchase Order No. 20240004 with Wilbur-Ellis Company for herbicide and pesticide chemicals in an amount not to exceed $120,000 for FY 2023-24. SR Approve PO 20240004 Wilbur-Ellis_2ndOTE.docx 1. Requested PO 20240004 Wilbur-Ellis Company.pdf 2. Price Schedule IFB No. 21-001-3400 Wilbur-Ellis FY 2023-24 v02.pdf 8.13 Approve Purchase Order No. 20240005 with Hasa, Inc. for pool chemical supplies in an amount not to exceed $155,000 for FY 2023-24. SR Approve PO 20240005 Hasa, Inc_2ndOTE.docx 1. Requested PO 20240005 Hasa, Inc. OLD.pdf 2. Price Schedule IFB No. 21-002-3400 Hasa Inc. FY 23-24.pdf 8.14 Approve Final Tract Map No. 69651, located at Palmdale Blvd and 61st Street East. TR 69651 Approval - Staff Report.docx TR 69651 - Final.pdf 8.15 Approve service agreement for a digital divide study with Nutter Consulting in the amount of $140,000 for a term of six (6) months. A-8413 Nutter Consulting Staff Report_Revised.docx Consulting Services w- Term (#3A) - Nutter Consulting (A-8413) - 07-12-2023 - Preview (3).pdf City Council Wednesday, July 12, 2023

8.16 Approve the minutes from the previous meeting. June 7, 2023 - CC/SA City Council_SA_HA - 06_07_2023 - 5pm.pdf 9. PUBLIC HEARING 9.1 Adopt Resolution No. CC 2023-028, a Resolution of the City Council of the City of Palmdale approving the Engineer's Report and the continuation of the levy and collection of assessments for Fiscal Year 2023/2024 for the City of Palmdale Drainage Benefit Assessment Districts No. 1 and No. 2006-02. PUBLIC COMMENTS: Now is the time for public participation on this item. Each speaker is allotted two (2) minutes. Palmdale DBAD - Staff Report 7-12-2023_final.docx Palmdale DBAD - Res 3 #CC 2023-028 for 7-12-2023_final.docx Drainage Engineers Report FY 2023-24_vFinal.pdf 9.2 Adopt Resolution No. CC 2023-029, a Resolution of the City Council of the City of Palmdale approving the Engineer's Report and the continuation of the levy and collection of assessments for Fiscal Year 2023/2024 for the City of Palmdale Landscape Maintenance Assessment Districts and Annexations, Park Maintenance and Recreation Improvement District, and Streetlight Maintenance Assessment Districts and Annexations. PUBLIC COMMENTS: Now is the time for public participation on this item. Each speaker is allotted two (2) minutes. Palmdale LMD,Park,SLAD-Staff Report 7-12-23_final.docx Palmdale LMD,Park,SLAD-Res 3 #CC 2023-029 for 7-12-2023_final.docx LMD Engineers Report FY 2023-24_vFinal.pdf Park Engineers Report FY 2023-24_vFinal.pdf Streetlight Engineers Report FY 2023-24_vFinal.pdf 9.3 Adopt Resolution No. CC 2023-030, a Resolution of the City Council of the City of Palmdale updating the Sewer Collection Service Charge and ordering the continuation of the charge for the operation and maintenance of the Palmdale sewer collection system for Fiscal Year 2023/2024. PUBLIC COMMENTS: Now is the time for public participation on this item. Each speaker is allotted two (2) minutes. Staff Report 7-12-23_final.docx Resolution No. CC 2023-030 for 7-12-2023_final.doc Sewer Collection Service Charge Report FY 2023-24_v1.pdf City Council Wednesday, July 12, 2023

10. 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 on items not listed on the agenda. 11. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT PUBLIC EXPENSE 11.1 Council Reports on Committee Memberships and Meetings Attended at Public Expense. Bettencourt Informational Report 070523.docx BISHOP Informational Report 070123.docx LOA Informational Report 070523.docx Ohlsen Informational Report 070523.docx 12. CITY COUNCIL ANNOUNCEMENTS AND REQUESTS FOR NEW AGENDA ITEMS 13. CITY MANAGER’S REPORT 14. PRESENTATION BY CITY ATTORNEY 14.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Shanae Smith, Patricia Nevarez and Michael "Mike" Behen vs. City of Palmdale, et al. Los Angeles County Superior Court Case No. 22STCV18219 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 14.2 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Maithi Ricci v. City of Palmdale, et al. 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). 14.3 CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION Ricky Thorstensen v. City of Palmdale, et al. Los Angeles County Superior Court Case No. 22STCV29463 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). City Council Wednesday, July 12, 2023

14.4 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Kenya Torres vs. City of Palmdale, et al. Los Angeles County Superior Court Case No. 22STCV37041 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 15. ANNOUNCEMENT BY CITY ATTORNEY 16. ADJOURN meeting to July 19, 2023 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 72 hours prior to the meeting. If you require oral Spanish translation, please contact the City Clerk’s Office at (661) 267- 5151 at least 72 hours prior to the meeting. City Council Wednesday, July 12, 2023

City Council Staff Report DATE: JULY 12, 2023 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION DISTRICT: ALL SUBJECT: RECEIVE AND FILE THE MONTHLY INVESTMENT ACTIVITY REPORTS FOR MAY 2023 ISSUE Receive and file the monthly investment activity reports for May 2023. RECOMMENDATION Staff recommends that the City Council receive and file the monthly investment activity reports for City of Palmdale and Successor Agency for May 2023. BACKGROUND Pursuant to Section 16 of the City of Palmdale 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, name of the issuer, purchase date, date of maturity, amount of deposit, and rate of interest. This information shall be provided for all City and Successor Agency pooled investments, as well as for Certificates of Participation, Revenue Bonds, Tax Allocation Bonds, Assessment Districts and Community Facilities District accounts which are managed by outside Fiscal Agents. The monthly reports provide a synopsis of the investment activity for the City of Palmdale and Successor Agency. The reports 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 source of market prices.

Report to Mayor and City Council Re: Monthly Reports on Investments July 12, 2023 Page 2 DISCUSSION Compliance with Investment Policy For May, the invested portfolio amount for the City of Palmdale totaled $305,411,348, an increase of $15,107,784 from the previous month, and an increase of $48,579,468 in comparison to last year. The monthly increase is the result of a combination of new investment purchases, interest gains, and LAIF deposits. The par value of Successor Agency’s portfolio as of April was $10,196,997. The balance decreased by $6,617 from last month due to debt service payments made from the agency’s cash account. 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, U.S. 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 entity’s investment policy to 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 measure up to the City and Successor Agency’s operational requirements. Thus, the Finance Department is currently investing in two pooled funds, LAIF and CAMP. These are intended for the daily operational activities, used for economic uncertainties and maintenance needs. The pooled funds provide a higher liquidity ratio to ensure the City and Successor Agency meet cash flow requirements. The total LAIF balance for the City of Palmdale at the end of May is $125,390,432, an increase of $10,381,000 compared to the prior month, due to a deposit made by the City’s general bank to LAIF. Successor Agency LAIF balance at the end of May was $4,488,812. No changes compared to the prior month. CAMP’s balance for City of Palmdale at the end of May was $258,198 compared to April balance of $257,071. The slight increase is due to interest earned during the month. The interest rates presented are the most current rates available as of the date of this report. As of May 31, 2023, the interest rates for LAIF and CAMP investments were at 2.993

Report to Mayor and City Council Re: Monthly Reports on Investments July 12, 2023 Page 3 percent and 5.16 percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of April were at 2.870 percent and 4.97 percent. Both rates have slightly increased within this month. This time last year, LAIF and CAMP rates were at 0.684 percent and 0.82, respectively. The chart above shows both the Local Agency Investment Fund and California Asset Management Program’s average monthly yields beginning August 2022 through May 2023. We anticipate that rates will remain fairly consistent, increasing only in small percentages in the upcoming months, considering the history in the past year and the current state of economy. CAMP shows better performance than LAIF in interest rates. The difference between the performance of the two funds is partly due to the varying pool characteristics. CAMP’s portfolio composition is much more subject to market volatility, resulting in performance variation. 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. City of Palmdale 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 May 31, 2023. It is anticipated that both the City of Palmdale and Successor Agency will have sufficient moneys to meet its expenditure requirements for the next 6 months as we continue to 1.28% 1.51% 1.77% 2.01% 2.17% 2.43% 2.62% 2.83% 2.87% 2.99% 2.30% 2.61% 3.14% 3.90% 4.30% 4.53% 4.73% 4.80% 4.97% 5.16% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Aug Q1 Sep Oct Nov Q2 Dec Jan Feb Q3 Mar Apr May Pooled Investments Monthly Yields LAIF CAMP

Report to Mayor and City Council Re: Monthly Reports on Investments July 12, 2023 Page 4 monitor any financial impact due to the Coronavirus pandemic and the current economic conditions and the impact on interest rates. Attached are summaries of the investments in the City of Palmdale and Successor Agency’s books as of May 31, 2023. FISCAL IMPACT 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: Gohar Avetisyan, Senior Financial Analyst Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager Approved as to form: William P. Curley, III, Interim City Attorney ATTACHMENTS 1. Monthly Reports on City of Palmdale Investments 2. Monthly Report on Successor Agency Investments

CITY OF PALMDALE TREASURER'S REPORT OF INVESTMENTS MAY 31, 2023 PURCHASE MATURITY ACCOUNT/ FDIC INTEREST PAR PURCHASE INVESTED DATE DATE FUND INSTITUTION Number RATE AMOUNT AMOUNT AMOUNT U.S. TREASURY SECURITIES Yield 05-31-19 04-30-24 CITY 9128286R6 U.S. Treasury Note 2.03 5,000,000.00 5,051,650.00 4,938,670.00 03-19-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 3,000,000.00 3,260,634.36 2,961,090.00 05-11-21 02-28-26 CITY 9128286F2 U.S. Treasury Note 0.66 3,000,000.00 3,261,331.50 2,945,970.00 05-11-21 12-31-24 CITY 9128283P3 U.S. Treasury Note 0.40 3,000,000.00 3,200,040.56 2,946,930.00 06-04-21 12-31-23 CITY 912828V23 U.S. Treasury Note 0.20 4,000,000.00 4,210,026.50 3,959,360.00 07-12-21 12-31-23 CITY 9128285U0 U.S. Treasury Note 2.63 5,000,000.00 5,289,959.94 4,977,950.00 07-12-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 5,000,000.00 5,451,958.35 4,935,150.00 07-12-21 12-31-23 CITY 912828V23 U.S. Treasury Note 1/3/2023 2.25 5,000,000.00 ## 5,244,161.50 4,949,200.00 12-17-21 12-15-23 CITY 91282CBA8 U.S. Treasury Note 0.56 10,000,000.00 9,913,130.25 9,602,000.00 12-17-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note (UBS) 0.85 10,000,000.00 10,045,505.25 9,531,600.00 12-22-21 12-15-23 CITY 91282CBA8 U.S. Treasury Note 0.56 5,000,000.00 4,957,270.88 4,801,000.00 12-22-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note 0.88 5,000,000.00 5,018,208.38 4,765,800.00 12-20-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note (Stifel) 1.00 5,000,000.00 5,017,187.50 4,765,820.00 03-08-23 03-31-26 CITY 9128286L9 U.S. Treasury Note (UBS) 2.25 3,200,000.00 3,029,330.80 3,029,330.80 TOTAL U.S. TREASURY SECURITIES 71,200,000.00$ 72,950,395.77$ 69,109,870.80$ GOVERNMENT AGENCY PAPER 06-05-19 06-05-23 CITY 3133EKPT7 Fed Farm Credit Bk 2.13 5,000,000.00 5,008,600.00 4,971,627.90 06-10-20 06-16-25 CITY 3133ELK37 Federal Farm Credit 0.78 5,000,000.00 5,000,000.00 4,672,635.10 08-07-20 05-06-24 CITY 3133EL2X1 Federal Farm Credit 0.42 2,000,000.00 2,000,000.00 1,905,188.04 08-27-20 11-27-24 CITY 3134GWNG7 Freddie Mac Domestic 0.50 2,000,000.00 2,000,000.00 1,885,345.78 04-01-21 04-01-25 CITY 3133EMUP5 Fed Farm Credit 0.71 5,000,000.00 5,000,000.00 4,682,977.35 05-11-21 09-04-25 CITY 3133EJYM5 FFCB Bond 0.59 1,000,000.00 1,103,275.25 999,450.00 05-11-21 09-04-25 CITY 3133EJYM5 FFCB Bond 0.57 0.57 2,000,000.00 2,208,460.00 1,998,900.00 06-04-21 11-07-25 CITY 3135G06G3 Fannie Mae 0.55 3,000,000.00 2,993,675.25 2,757,300.00 06-04-21 08-01-24 CITY 3130AMHH8 FHLB NOTE 0.41 4,000,000.00 4,000,000.00 3,809,357.72 06-07-21 06-07-24 CITY 3130AMQR6 FHLB NOTE 0.35 3,000,000.00 3,000,000.00 2,864,376.87 06-30-21 12-30-25 CITY 3130AMRQ7 FHLB NOTE 0.88 3,000,000.00 3,000,000.00 2,792,028.33 07-29-21 04-29-26 CITY 3130AN5C0 FHLB NOTE 1.05 4,000,000.00 4,010,455.13 3,730,680.00 12-17-21 11-12-25 CITY 3134GXBM5 FHLMC Note 1.15 1,150,000.00 1,125,785.50 1,055,366.50 12-17-21 12-30-24 CITY 3130AQDY6 FHLB 1.00 6,750,000.00 6,750,000.00 6,454,656.18 12-17-21 06-23-25 CITY 3133ENHW3 FFCB 1.17 10,000,000.00 10,000,000.00 9,422,494.90 12-20-21 07-30-25 CITY 3136G4ZP1 FANNIE MAE 0.65 3,500,000.00 3,444,175.00 3,255,845.57 12-20-21 09-24-25 CITY 3134GWUG9 FREDDIE MAC 0.57 10,000,000.00 9,806,600.00 9,209,435.10 12-21-21 12-22-26 CITY 3133ENJC5 FFCB 1.29 5,000,000.00 5,000,000.00 4,611,433.30 01-14-22 01-14-25 CITY 3130AQEA7 FHLB 1.05 7,000,000.00 7,000,000.00 6,656,914.81 06-29-22 08-12-25 CITY 3133EL3P7 Federal Farm Credit Bank 3.34 1,810,000.00 1,660,349.20 1,675,477.99 06-29-22 03-28-25 CITY 3130A5DH9 Federal Home Loan Bank 3.34 1,950,000.00 1,937,715.00 1,944,638.69 06-24-22 02-26-27 CITY 3130AL5A8 Federal Home Loan Bank 3.33 5,000,000.00 4,479,000.00 4,493,981.15 08-17-22 10-27-26 CITY 3134GW4C7 Freddie Mac Global Unsecured 0.80 5,000,000.00 4,539,500.00 4,539,500.00 01-06-23 02-25-27 CITY 3130AQRH8 Federal Home Loan Bank 4.38 5,000,000.00 4,590,638.89 4,590,638.89 01-06-23 04-19-27 CITY 3130ARHJ3 Federal Home Loan Bank 4.38 5,000,000.00 4,801,354.86 4,801,354.86 05-18-23 05-18-27 CITY 3133EPKC8 Federal Farm Credit Bank Unsec 5.39 5,000,000.00 5,000,000.00 5,000,000.00 TOTAL GOVERNMENT AGENCY PAPER 111,160,000.00$ 109,459,584.08$ 104,781,605.03$ CERTIFICATES OF DEPOSIT TOTAL CERTIFICATES OF DEPOSIT -$ -$ -$ CITY OF PALMDALE INVESTMENTS

CITY OF PALMDALE TREASURER'S REPORT OF INVESTMENTS MAY 31, 2023 CORPORATE NOTES 5/17/2023 3/1/2026 CITY 30231GAT9 EXXON MOBIL CORPORATION 3.04 $1,000,000 $982,084 975,660.00 5/17/2023 3/2/2026 CITY 194162AQ6 COLGATE-PALMOLIVE CO GLOBAL 4.80 $1,000,000 $1,035,553 1,025,420.00 5/17/2023 1/26/