City Council/Successor Agency/Palmdale Civic Authority/Palmdale Financing Authority

EMERGENCY PUBLIC MEETING PROCEDURE DUE TO COVID-19 In compliance with the April 15, 2021 County of Los Angeles Public Health Order, the Council Chamber will be open for public comment, including public seating available at limited capacity. Citizens are required to wear masks, provide proof of vaccination or negative COVID-19 test within 72 hours of the meeting and practice social distancing. If one of these criteria is not met or the person cannot show such documentation, the person will not be allowed to enter the Council Chamber to participate in the meeting. Councilmembers may choose to participate via conference call. How to observe the meeting virtually: 1. Spectrum local access Channel 27 2. Online live webcast at www.cityofpalmdale.org. How to Submit Public Comments: 1) WRITTEN PUBLIC COMMENTS PRIOR TO MEETING - Click the Agendas & Minutes webpage at https://cityofpalmdale.org/310/City-Council-Meetings and find this meeting under Upcoming Events; 2) Click on the eComment button; and 3) Scroll through the agenda to find the agenda item for which you would like to provide a comment and CITY COUNCIL MEETING SUCCESSOR AGENCY/PALMDALE CIVIC AUTHORITY/ PALMDALE FINANCING AUTHORITY SPECIAL MEETINGS CITY COUNCIL CHAMBERS 38300 SIERRA HIGHWAY SUITE B PALMDALE, CA 93550 THURSDAY, MAY 6, 2021 6:00 PM CLOSED SESSION 7:00 PM CC/SA/PCA/PFA www.cityofpalmdale.org WELCOME City Council Thursday, May 6, 2021 1

submit your comment; 4) The cut off time is two hours prior to the time listed on the printed agenda (e.g: 6:00 p.m. meeting cut-off is 4:00 p.m.). Such comments will be provided to the City Councilmembers prior to the meeting, but will not be read aloud during the meeting. 2) VERBAL PUBLIC COMMENT DURING THE MEETING – (ZOOM Number: US: +1 669 900 9128 Webinar ID: 940 8369 6310 Passcode: 939814 Webinar attendee link https://zoom.us/j/94083696310?pwd=dkk1cWlMVnZzU05qMjMwbGw2UGsvZz09. Verbal comments must be limited to 3 minutes. Public comments submitted will become part of the official meeting record. The safety and well-being of employees and the public remains the City's top priority. The City of Palmdale appreciates your patience and understanding during these challenging times. The City Council is making every effort to follow the spirit and intent of the Brown Act and other applicable laws regulating the conduct of public meetings in order to maximize transparency and public access. 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 call the City Clerk’s Office at (661) 267-5151 at least 72 hours prior to the meeting. 1. CALL TO ORDER 6:00 P.M. CLOSED SESSION SPECIAL MEETING. 2. ROLL CALL: MAYOR HOFBAUER, MAYOR PRO TEM BETTENCOURT, COUNCILMEMBERS CARRILLO, LOA, AND BISHOP 3. PUBLIC COMMENTS. Now is the time for public participation for any person wishing to speak to the City Council on matters listed or not listed on the agenda, within the jurisdiction of the City Council. If you are attending the meeting by phone, please press *9 to "raise your hand." If attending by personal computer, please click the "raise your hand" button. Press *6 to un-mute yourself, state your name and begin speaking. PLEASE NOTE: A three-minute limit is imposed on each speaker. 4. PRESENTATION BY CITY ATTORNEY OF THE FOLLOWING ITEM(S) TO BE DISCUSSED IN CLOSED SESSION: 4.1 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: Number of cases – One. City Council Thursday, May 6, 2021 2

4.2 CONFERENCE WITH LABOR NEGOTIATORS City representatives: City Manager, Assistant City Manager & Human Resources Manager Employee Organization: California Teamsters Local 911 Public, Professional & Medical Employees Union (on behalf of City Maintenance Staff) This Closed Session is being held pursuant to the authority of California Government Code Section 54957.6. 5. ANNOUNCEMENT BY CITY ATTORNEY OF ITEM(S) DISCUSSED IN CLOSED SESSION. 6. ADJOURN CLOSED SESSION MEETING. 7. CALL TO ORDER 7:00 P.M. City Council/Successor Agency/Palmdale Civic Authority/Palmdale Financing Authority 8. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE IN HONOR OF OUR TROOPS. 9. ROLL CALL: MAYOR/CHAIR HOFBAUER, MAYOR PRO TEM/VICE CHAIR BETTENCOURT; COUCILMEMBERS/DIRECTORS CARRILLO, LOA, BISHOP 10. PRESENTATIONS: 10.1 Presentation by Mayor and Council of a Proclamation declaring May 2nd - May 8th, 2021 as Professional Municipal Clerks Week in the City of Palmdale. 10.2 Presentation by Mayor and Council of a proclamation proclaiming May 16th - May 22nd, 2021 as "National Public Works Week" in the City of Palmdale. 10.3 Presentation by Mayor and Council of a picture of a cute critter that is available for adoption from our Palmdale Animal Care Center. 11. 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 Thursday, May 6, 2021 3

12. PUBLIC COMMENTS Now is the time for public participation for any person wishing to speak to the City Council on matters listed or not listed on the agenda, within the jurisdiction of the City Council. If you are attending the meeting by phone, please press *9 to "raise your hand." If attending by personal computer, please click the "raise your hand" button. Press *6 to un-mute yourself, state your name and begin speaking. PLEASE NOTE: A three-minute limit is imposed on each speaker. 13. 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. 13.1 Receive and file the Monthly and Quarterly Investment Activity Report for March 2021. ( Staff Reference: Finance Manger Kang) 13.2 Adopt Resolution No. CC 2021-050, A Resolution of the City Council of the City of Palmdale to Continue the Proclamation of a Local Emergency resulting from Coronavirus Disease (COVID-19). (Staff Reference: Finance Manager Kang) 13.3 Adopt a Joint Resolution No. CC 2021-029, Inclusive of SA 2021-003, of the City Council of the City of Palmdale and the Successor Agency to the Community Redevelopment Agency of the City of Palmdale, Stating the Investment Policy for the Investments and for Contributions to the Retiree Health Plans for the City and the Successor Agency and Repealing Resolutions No. CC 2020-002, CC 2020- 003, SA 2020-001, AND SA 2020-002. (Staff Reference: Finance Manager Kang) 13.4 Authorize the City Manager and Finance Manager/Treasurer to accept proposal from Western Alliance Bank in connection with refinancing of the City of Palmdale Community Facilities District No. 05-1 (Trade and Commerce Center Area) Special Tax Bonds and execute professional services agreements with the municipal advisor, bond counsel and placement agent. (Staff Reference: Finance Manager Kang) 13.5 Approve the Board of Library Trustees Recommendation to Eliminate the Policy and Practice of Charging Fines for Overdue Library Materials and Determine an Effective Date. (Staff Reference: Parks and Recreation Manager Dombrowski) 13.6 Adopt Resolution No. CC 2021-025, a Resolution of the City Council of the City of Palmdale directing preparation of the Annual Engineer's Report for the continuation of the Drainage Benefit Assessment Districts No. 1, and No. 2006-02 for fiscal year 2021/2022. (Staff Reference: Director of Public Works Heffernan) City Council Thursday, May 6, 2021 4

13.7 Adopt Resolution No. CC 2021-026, a Resolution of the City Council of the City of Palmdale directing preparation of the combined Annual Engineer's Report for the continuation of the Landscape Maintenance Assessment Districts and Annexations for fiscal year 2021/2022. (Staff Reference: Director of Public Works Heffernan) 13.8 Adopt Resolution No. CC 2021-027, a Resolution of the City Council of the City of Palmdale directing preparation of the annual Engineer's Report for the continuation of the Park and Maintenance and Recreation Improvement District for fiscal year 2021/2022. (Staff Reference: Director of Public Works Heffernan) 13.9 Adopt Resolution No. CC 2021-028, a Resolution of the City Council of the City of Palmdale directing preparation of the combined Annual Engineer's Report for the continuation of the Streetlight Maintenance Assessment Districts and Annexations for fiscal year 2021/2022. (Staff Reference: Director of Public Works Heffernan) 13.10 Reject all bids for Project No 804, Saves Generator and Enclosure Project. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden) 13.11 Notice of Completion - Accept completion of Capital Project No. 709, Rancho Vista Boulevard Widening Gap Closure Project. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden) 13.12 Notice of Completion - Accept Capital Project No. 783, Chimbole Cultural Center Lighting Improvements. (Staff Reference: Director of Public Work Heffernan - Presented by Deputy Director of Public Works Glidden) 13.13 Approve Funding Agreement with Caltrans to provide California Public Utilities Commissions, CPUC, funds for Project STPLR-7500(285), Rancho Vista Boulevard and Sierra Highway Railroad Grade Crossing Program in the amount of $3,730,860. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden) 13.14 Adopt Resolution No. CC 2021-053, a Resolution of Necessity of the City Council of the City of Palmdale approving City Council take action outside of its jurisdiction. (Staff Reference: City Manager Murphy) City Council Thursday, May 6, 2021 5

13.15 CC/SA/PCA/PFA - Approve the minutes from the previous meetings. (Staff Reference: City Clerk/Agency Secretary Smith) CC – April 6, 2021 (5:00 p.m. & 7 :00 p.m.) CC - April 20, 2021 (6:00 p.m. & 7:00 p.m.) PCA - June 2, 2020 (7:00 p.m.) PCA - January 12, 2021 (7:00 p.m.) PCA - March 2, 2021 (7:00 p.m.) PFA - March 2, 2021 (7:00 p.m.) SA - April 6, 2021 (7:00 p.m.) 14. NEW BUSINESS: 14.1 Approve Agreement with The Wellbeing Lab dba Louis Alloro, LLC to initiate and implement a training and coaching program that pairs wellbeing and change in communities and organizations to help create and sustain a robust solution to the health and economic challenges in communities, in the amount of $295,000. (Staff Reference: City Manager Murphy - Presented by Management Analyst II, Lopez) 14.2 Adopt Resolutions Nos. CC 2021-051, PFA 2021-001, and PCA 2021-001, approving the form and authorizing execution of certain lease financing documents in connection with the refunding of the City of Palmdale Taxable Certificates of Participation (2007 Land Acquisition Financing Project) and authorizing and directing certain actions with respect thereto. ( Staff Reference: Finance Manager Kang) 15. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT PUBLIC EXPENSE. 15.1 VARIOUS COMMITTEE MEMBERSHIPS. Attachments: Committee Membership Memos from Councilmember Bettencourt, Councilmember Bishop, and Councilmember Carrillo • ANTELOPE VALLEY AIR QUALITY MANAGEMENT DISTRICT • ANTELOPE VALLEY TRANSIT AUTHORITY • CALIFORNIA CONTRACT CITIES ASSOCIATION • CITY OF PALMDALE AUDIT COMMITTEE • CITY OF PALMDALE INVESTMENT OVERSIGHT COMMITTEE • HIGH DESERT CORRIDOR JOINT POWERS AUTHORITY • LEAGUE OF CALIFORNIA CITIES City Council Thursday, May 6, 2021 6

• LOS ANGELES COUNTY SANITATION DISTRICT • NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION • PALMDALE RECYCLED WATER AUTHORITY • SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS REGIONAL COUNCIL • UNITED STATES/MEXICO SISTER CITIES ASSOCIATION • CALIFORNIA STATE PRISON – LOS ANGELES COUNTY, CITIZENS ADVISORY COMMITTEE 15.2 MEETINGS ATTENDED AT PUBLIC EXPENSE. 15.3 CITY MANAGER’S REPORT. 16. CITY COUNCIL REQUESTS FOR NEW AGENDA ITEMS. 17. ADJOURN meeting to May 18, 2021 at 7:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California. City Council Thursday, May 6, 2021 7

EMERGENCY PUBLIC MEETING PROCEDURE DUE TO COVID-19 In compliance with the April 15, 2021 County of Los Angeles Public Health Order, the Council Chamber will be open for public comment, including public seating available at limited capacity. Citizens are required to wear masks, provide proof of vaccination or negative COVID-19 test within 72 hours of the meeting and practice social distancing. If one of these criteria is not met or the person cannot show such documentation, the person will not be allowed to enter the Council Chamber to participate in the meeting. Councilmembers may choose to participate via conference call. How to observe the meeting virtually: 1. Spectrum local access Channel 27 2. Online live webcast at www.cityofpalmdale.org. How to Submit Public Comments: 1) WRITTEN PUBLIC COMMENTS PRIOR TO MEETING - Click the Agendas & Minutes webpage at https://cityofpalmdale.org/310/City-Council-Meetings and find this meeting under Upcoming Events; 2) Click on the eComment button; and 3) Scroll through the agenda to find the agenda item for which you would like to provide a comment and CITY COUNCIL MEETING SUCCESSOR AGENCY/PALMDALE CIVIC AUTHORITY/ PALMDALE FINANCING AUTHORITY SPECIAL MEETINGS CITY COUNCIL CHAMBERS 38300 SIERRA HIGHWAY SUITE B PALMDALE, CA 93550 THURSDAY, MAY 6, 2021 6:00 PM CLOSED SESSION 7:00 PM CC/SA/PCA/PFA www.cityofpalmdale.org WELCOME City Council Thursday, May 6, 2021 1

submit your comment; 4) The cut off time is two hours prior to the time listed on the printed agenda (e.g: 6:00 p.m. meeting cut-off is 4:00 p.m.). Such comments will be provided to the City Councilmembers prior to the meeting, but will not be read aloud during the meeting. 2) VERBAL PUBLIC COMMENT DURING THE MEETING – (ZOOM Number: US: +1 669 900 9128 Webinar ID: 940 8369 6310 Passcode: 939814 Webinar attendee link https://zoom.us/j/94083696310?pwd=dkk1cWlMVnZzU05qMjMwbGw2UGsvZz09. Verbal comments must be limited to 3 minutes. Public comments submitted will become part of the official meeting record. The safety and well-being of employees and the public remains the City's top priority. The City of Palmdale appreciates your patience and understanding during these challenging times. The City Council is making every effort to follow the spirit and intent of the Brown Act and other applicable laws regulating the conduct of public meetings in order to maximize transparency and public access. 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 call the City Clerk’s Office at (661) 267-5151 at least 72 hours prior to the meeting. 1. CALL TO ORDER 6:00 P.M. CLOSED SESSION SPECIAL MEETING. 2. ROLL CALL: MAYOR HOFBAUER, MAYOR PRO TEM BETTENCOURT, COUNCILMEMBERS CARRILLO, LOA, AND BISHOP 3. PUBLIC COMMENTS. Now is the time for public participation for any person wishing to speak to the City Council on matters listed or not listed on the agenda, within the jurisdiction of the City Council. If you are attending the meeting by phone, please press *9 to "raise your hand." If attending by personal computer, please click the "raise your hand" button. Press *6 to un-mute yourself, state your name and begin speaking. PLEASE NOTE: A three-minute limit is imposed on each speaker. 4. PRESENTATION BY CITY ATTORNEY OF THE FOLLOWING ITEM(S) TO BE DISCUSSED IN CLOSED SESSION: 4.1 CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: Number of cases – One. City Council Thursday, May 6, 2021 2

4.2 CONFERENCE WITH LABOR NEGOTIATORS City representatives: City Manager, Assistant City Manager & Human Resources Manager Employee Organization: California Teamsters Local 911 Public, Professional & Medical Employees Union (on behalf of City Maintenance Staff) This Closed Session is being held pursuant to the authority of California Government Code Section 54957.6. 5. ANNOUNCEMENT BY CITY ATTORNEY OF ITEM(S) DISCUSSED IN CLOSED SESSION. 6. ADJOURN CLOSED SESSION MEETING. 7. CALL TO ORDER 7:00 P.M. City Council/Successor Agency/Palmdale Civic Authority/Palmdale Financing Authority 8. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE IN HONOR OF OUR TROOPS. 9. ROLL CALL: MAYOR/CHAIR HOFBAUER, MAYOR PRO TEM/VICE CHAIR BETTENCOURT; COUCILMEMBERS/DIRECTORS CARRILLO, LOA, BISHOP 10. PRESENTATIONS: 10.1 Presentation by Mayor and Council of a Proclamation declaring May 2nd - May 8th, 2021 as Professional Municipal Clerks Week in the City of Palmdale. 10.2 Presentation by Mayor and Council of a proclamation proclaiming May 16th - May 22nd, 2021 as "National Public Works Week" in the City of Palmdale. 10.3 Presentation by Mayor and Council of a picture of a cute critter that is available for adoption from our Palmdale Animal Care Center. 11. 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 Thursday, May 6, 2021 3

12. PUBLIC COMMENTS Now is the time for public participation for any person wishing to speak to the City Council on matters listed or not listed on the agenda, within the jurisdiction of the City Council. If you are attending the meeting by phone, please press *9 to "raise your hand." If attending by personal computer, please click the "raise your hand" button. Press *6 to un-mute yourself, state your name and begin speaking. PLEASE NOTE: A three-minute limit is imposed on each speaker. 13. 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. 13.1 Receive and file the Monthly and Quarterly Investment Activity Report for March 2021. ( Staff Reference: Finance Manger Kang) 13.2 Adopt Resolution No. CC 2021-050, A Resolution of the City Council of the City of Palmdale to Continue the Proclamation of a Local Emergency resulting from Coronavirus Disease (COVID-19). (Staff Reference: Finance Manager Kang) 13.3 Adopt a Joint Resolution No. CC 2021-029, Inclusive of SA 2021-003, of the City Council of the City of Palmdale and the Successor Agency to the Community Redevelopment Agency of the City of Palmdale, Stating the Investment Policy for the Investments and for Contributions to the Retiree Health Plans for the City and the Successor Agency and Repealing Resolutions No. CC 2020-002, CC 2020- 003, SA 2020-001, AND SA 2020-002. (Staff Reference: Finance Manager Kang) 13.4 Authorize the City Manager and Finance Manager/Treasurer to accept proposal from Western Alliance Bank in connection with refinancing of the City of Palmdale Community Facilities District No. 05-1 (Trade and Commerce Center Area) Special Tax Bonds and execute professional services agreements with the municipal advisor, bond counsel and placement agent. (Staff Reference: Finance Manager Kang) 13.5 Approve the Board of Library Trustees Recommendation to Eliminate the Policy and Practice of Charging Fines for Overdue Library Materials and Determine an Effective Date. (Staff Reference: Parks and Recreation Manager Dombrowski) 13.6 Adopt Resolution No. CC 2021-025, a Resolution of the City Council of the City of Palmdale directing preparation of the Annual Engineer's Report for the continuation of the Drainage Benefit Assessment Districts No. 1, and No. 2006-02 for fiscal year 2021/2022. (Staff Reference: Director of Public Works Heffernan) City Council Thursday, May 6, 2021 4

13.7 Adopt Resolution No. CC 2021-026, a Resolution of the City Council of the City of Palmdale directing preparation of the combined Annual Engineer's Report for the continuation of the Landscape Maintenance Assessment Districts and Annexations for fiscal year 2021/2022. (Staff Reference: Director of Public Works Heffernan) 13.8 Adopt Resolution No. CC 2021-027, a Resolution of the City Council of the City of Palmdale directing preparation of the annual Engineer's Report for the continuation of the Park and Maintenance and Recreation Improvement District for fiscal year 2021/2022. (Staff Reference: Director of Public Works Heffernan) 13.9 Adopt Resolution No. CC 2021-028, a Resolution of the City Council of the City of Palmdale directing preparation of the combined Annual Engineer's Report for the continuation of the Streetlight Maintenance Assessment Districts and Annexations for fiscal year 2021/2022. (Staff Reference: Director of Public Works Heffernan) 13.10 Reject all bids for Project No 804, Saves Generator and Enclosure Project. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden) 13.11 Notice of Completion - Accept completion of Capital Project No. 709, Rancho Vista Boulevard Widening Gap Closure Project. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden) 13.12 Notice of Completion - Accept Capital Project No. 783, Chimbole Cultural Center Lighting Improvements. (Staff Reference: Director of Public Work Heffernan - Presented by Deputy Director of Public Works Glidden) 13.13 Approve Funding Agreement with Caltrans to provide California Public Utilities Commissions, CPUC, funds for Project STPLR-7500(285), Rancho Vista Boulevard and Sierra Highway Railroad Grade Crossing Program in the amount of $3,730,860. (Staff Reference: Director of Public Works Heffernan - Presented by Deputy Director of Public Works Glidden) 13.14 Adopt Resolution No. CC 2021-053, a Resolution of Necessity of the City Council of the City of Palmdale approving City Council take action outside of its jurisdiction. (Staff Reference: City Manager Murphy) City Council Thursday, May 6, 2021 5

13.15 CC/SA/PCA/PFA - Approve the minutes from the previous meetings. (Staff Reference: City Clerk/Agency Secretary Smith) CC – April 6, 2021 (5:00 p.m. & 7 :00 p.m.) CC - April 20, 2021 (6:00 p.m. & 7:00 p.m.) PCA - June 2, 2020 (7:00 p.m.) PCA - January 12, 2021 (7:00 p.m.) PCA - March 2, 2021 (7:00 p.m.) PFA - March 2, 2021 (7:00 p.m.) SA - April 6, 2021 (7:00 p.m.) 14. NEW BUSINESS: 14.1 Approve Agreement with The Wellbeing Lab dba Louis Alloro, LLC to initiate and implement a training and coaching program that pairs wellbeing and change in communities and organizations to help create and sustain a robust solution to the health and economic challenges in communities, in the amount of $295,000. (Staff Reference: City Manager Murphy - Presented by Management Analyst II, Lopez) 14.2 Adopt Resolutions Nos. CC 2021-051, PFA 2021-001, and PCA 2021-001, approving the form and authorizing execution of certain lease financing documents in connection with the refunding of the City of Palmdale Taxable Certificates of Participation (2007 Land Acquisition Financing Project) and authorizing and directing certain actions with respect thereto. ( Staff Reference: Finance Manager Kang) 15. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT PUBLIC EXPENSE. 15.1 VARIOUS COMMITTEE MEMBERSHIPS. Attachments: Committee Membership Memos from Councilmember Bettencourt, Councilmember Bishop, and Councilmember Carrillo • ANTELOPE VALLEY AIR QUALITY MANAGEMENT DISTRICT • ANTELOPE VALLEY TRANSIT AUTHORITY • CALIFORNIA CONTRACT CITIES ASSOCIATION • CITY OF PALMDALE AUDIT COMMITTEE • CITY OF PALMDALE INVESTMENT OVERSIGHT COMMITTEE • HIGH DESERT CORRIDOR JOINT POWERS AUTHORITY • LEAGUE OF CALIFORNIA CITIES City Council Thursday, May 6, 2021 6

• LOS ANGELES COUNTY SANITATION DISTRICT • NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION • PALMDALE RECYCLED WATER AUTHORITY • SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS REGIONAL COUNCIL • UNITED STATES/MEXICO SISTER CITIES ASSOCIATION • CALIFORNIA STATE PRISON – LOS ANGELES COUNTY, CITIZENS ADVISORY COMMITTEE 15.2 MEETINGS ATTENDED AT PUBLIC EXPENSE. 15.3 CITY MANAGER’S REPORT. 16. CITY COUNCIL REQUESTS FOR NEW AGENDA ITEMS. 17. ADJOURN meeting to May 18, 2021 at 7:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California. City Council Thursday, May 6, 2021 7

City Council Staff Report DATE: MAY 6, 2021 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: CITY MANAGER’S OFFICE FINANCE DIVISION DISTRICT: ALL SUBJECT: RECEIVE AND FILE THE MONTHLY AND QUARTERLY INVESTMENT ACTIVITY REPORTS FOR MARCH 2021. ISSUE Receive and file the monthly and quarterly investment activity reports for March 2021. RECOMMENDATION Staff recommends that the City Council accept the monthly and quarterly investment activity reports for City of Palmdale and Successor Agency for March 2021. 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 and quarterly 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 8

Report to Mayor and City Council Re: Monthly and Quarterly Reports on Investments May 6, 2021 Page 2 information was obtained from the Wall Street Journal, Bloomberg Financial Markets, Capital Market Finances, or other reliable source of market prices. DISCUSSION Compliance with Investment Policy For March, the invested portfolio amount for the City of Palmdale totaled $184,027,256 an increase of $3,277,825 from the previous month and $3,694,066 increase in comparison to last year. The increase in overall portfolio balance from the previous month is a result of one new purchase of US Treasury Bond made in March 2021. The par value of Successor Agency’s portfolio as of March, was $11,332,024. The balance decreased by $1,503,142 from last 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, 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. Total LAIF balance for the City of Palmdale is $123,851,097 compared to February’s balance of $113,851,097. The increase in balance is due to the reinvestment of funds from CAMP to LAIF. Successor Agency LAIF balance at the end of March was $5,182,016, a 29.6 percent decrease from June, but flat to the prior month. The decrease in balance for the year is due to withdraws to cover monthly expenses and debt service payments. 9

Report to Mayor and City Council Re: Monthly and Quarterly Reports on Investments May 6, 2021 Page 3 CAMP’s balance for City of Palmdale is $248,639, compared to February’s balance of $10,248,123. Due to declining interest rates for CAMP, funds were reinvested in a more favorable rate under LAIF. The interest rates presented are the most current rates available as of the date of this report. As of March 31, 2021, the interest rates for LAIF and CAMP investments were at .36 percent and .08 percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of February were at .41 percent and .10 percent. Both rates have been steadily declining. This time last year, LAIF and CAMP rates were at 1.79 percent and 1.50, respectively. The chart above shows both the Local Agency Investment Fund and California Management Program’s average monthly yields from the beginning of FY 2021, the graph depicts the prolonged period of declining rates. We anticipate a further decrease in the upcoming months, considering the economic impacts of COVID. Overall, LAIF shows better performance than CAMP 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. 1.22% 0.92% 0.78% 0.69% 0.62% 0.58% 0.54% 0.46% 0.41% 0.36% 0.51% 0.37% 0.30% 0.27% 0.19% 0.14% 0.12% 0.12% 0.10% 0.08% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% Q4 June August October Q2 Dec Feb Pooled Investments Monthly Yields LAIF CAMP 10

Report to Mayor and City Council Re: Monthly and Quarterly Reports on Investments May 6, 2021 Page 4 City of Palmdale 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 March 31, 2021. In March, there was one U.S. Treasury Note acquired at premium of $260,634. No securities were called or matured. It is anticipated that both the City of Palmdale and Successor Agency will have sufficient moneys to meet its expenditure requirements for the next six months as we continue to monitor any financial impact due to the Coronavirus pandemic. Attached are summaries of the investments on the City of Palmdale and Successor Agency’s books as of March 31, 2021. 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: Janelle Samson, Assistant Finance Manager Certified as to availability of Funds: Keith Kang, Finance Manager Approved by: J.J. Murphy, ICMA-CM, City Manager Approved as to form: Christopher Beck, City Attorney ATTACHMENTS 1. Monthly Report on City of Palmdale Investments 2. Monthly Report on Successor Agency Investments 3. Quarterly Report on City of Palmdale Investments 4. Quarterly Report on Successor Agency Investments 11

CITY OF PALMDALE TREASURER'S REPORT OF INVESTMENTS March 31, 2021 PURCHASE MATURITY ACCOUNT/ FDIC INTEREST PAR PURCHASE INVESTED DATE DATE FUND INSTITUTION Number RATE AMOUNT AMOUNT AMOUNT U.S. TREASURY SECURITIES Yield 05-07-18 04-15-21 CITY 9128284G2 U.S. Treasury Note 2.38 5,000,000.00 4,968,000.00 5,086,330.00 05-31-17 05-31-21 CITY 912828R77 U.S. Treasury Note 1.38 5,000,000.00 4,946,986.95 5,054,690.00 05-31-19 04-30-24 CITY 9128286R6 U.S. Treasury Note 2.03 5,000,000.00 5,051,650.00 5,388,280.00 01-15-21 05-31-23 CITY 9128284S6 U.S. Treasury Note 2.75 2,815,000.00 2,985,994.41 2,999,053.18 03-19-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 3,000,000.00 3,260,634.36 3,278,255.22 TOTAL U.S. TREASURY SECURITIES 20,815,000.00$ 21,213,265.72$ 21,806,608.40$ 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 5,264,435.95 06-10-20 12-15-22 CITY 313GVN87 Freddie Mac 0.40 5,000,000.00 5,000,000.00 5,000,280.10 06-10-20 06-16-25 CITY 3133ELK37 Federal Farm Credit 0.78 5,000,000.00 5,000,000.00 5,001,470.75 08-07-20 05-06-24 CITY 3133EL2X1 Federal Farm Credit 0.42 2,000,000.00 2,000,000.00 2,000,000.00 08-27-20 11-27-24 CITY 3134GWNG7 Freddie Mac Domestic 0.50 2,000,000.00$ 2,000,000.00 2,000,000.00 c = callable TOTAL GOVERNMENT AGENCY PAPER 19,000,000.00$ 19,008,600.00$ 19,266,186.80$ CERTIFICATES OF DEPOSIT 05-16-18 05-17-21 CITY 38148PK97 Goldman Sachs Bank Usa 33124 2.90 245,000.00 245,000.00 250,985.84 06-01-17 06-01-21 CITY 14042RFY2 Capital One NA 4297 2.25 245,000.00 245,000.00 249,761.82 05-11-18 05-11-22 CITY 05580AMR2 Bmw Bank North America 35141 2.95 245,000.00 245,000.00 257,552.09 05-15-18 05-16-22 CITY 86063QAN5 Stifel Bank & Trust 57311 2.85 245,000.00 245,000.00 257,132.40 05-18-18 05-18-22 CITY 29278TBF6 Enerbank Usa 57293 2.95 245,000.00 245,000.00 257,627.30 05-31-17 05-31-22 CITY 02587CFM7 American Express Bk 35328 2.40 245,000.00 245,000.00 254,640.02 06-01-17 05-31-22 CITY 51210SMT1 Lakeside Bank 19573 2.00 245,000.00 245,026.85 253,401.79 05-10-18 05-10-23 CITY 61747MX30 Morgan Stanley Bank Na 32992 3.15 245,000.00 245,000.00 264,858.48 05-11-18 05-11-23 CITY 87164WWF1 Synchrony Bank 27314 3.15 245,000.00 245,000.00 264,875.38 05-11-18 05-11-23 CITY 17312QL23 Citibank Na 7213 3.15 245,000.00 245,000.00 264,875.38 05-15-18 05-15-23 CITY 20033AYE0 Comenity Capital Bank 57570 3.10 245,000.00 245,000.00 264,548.55 TOTAL CERTIFICATES OF DEPOSIT 2,695,000.00$ 2,695,026.85$ 2,840,259.05$ CITY OF PALMDALE INVESTMENTS 12

CITY OF PALMDALE TREASURER'S REPORT OF INVESTMENTS March 31, 2021 CORPORATE NOTES 03-10-20 03-01-23 CITY 30231GAR3 Exxon Mobil 2.73 1,000,000.00 1,045,330.00 1,052,024.89 03-10-20 05-13-22 CITY 037833BF6 Apple Inc 2.70 1,000,000.00 1,039,820.00 1,044,894.60 03-10-20 11-03-22 CITY 594918BH6 Microsoft Corp 2.65 1,000,000.00 1,047,870.00 1,051,523.94 03-10-20 01-13-23 CITY 037833DE7 Apple Inc 2.40 1,000,000.00 1,041,800.00 1,051,978.36 03-10-20 12-14-22 CITY 92826CAC6 VISA Inc 2.80 1,500,000.00 1,572,135.00 1,584,140.90 06-10-20 04-15-23 CITY 30231GBL5 Exxon Mobil Corp 1.75 5,000,000.00 5,000,000.00 5,131,579.15 06-10-20 05-11-23 CITY 166764BV1 Chevron Corp 1.14 2,075,000.00 2,075,000.00 2,110,739.09 08-14-20 08-14-23 CITY 94988J5R4 Wells Fargo Bank 3.55 3,000,000.00 3,000,000.00 3,000,000.00 TOTAL CORPORATE BONDS 15,575,000.00$ 15,821,955.00$ 16,026,880.93$ STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND 09-01-84 n/a CITY ACCOUNT 98-19-620 0.78 63,899,652.15 63,899,652.15 63,899,652.15 06/23/08 n/a PCA ACCOUNT 40-19-060 0.78 59,939,028.96 59,939,028.96 59,939,028.96 TOTAL LAIF ACCOUNTS 123,838,681.11$ 123,838,681.11$ 123,838,681.11$ CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM 6080-01 n/a CITY ACCOUNT 6080-01 0.30 248,639.40 248,639.40 248,639.40 TOTAL CAMP ACCOUNTS 248,639.40$ 248,639.40$ 248,639.40$ TOTAL CITY INVESTMENTS 182,172,320.51$ 182,826,168.08$ 184,027,255.69$ 13

CITY OF PALMDALE TREASURER'S REPORT OF INVESTMENTS March 31, 2021 PURCHASE MATURITY