City Council/SA

Mayor Pro Tem Alarcon will be participating via teleconference from JW Marriott Desert Springs Resort & Spa, Quiet Library, 74855 Country Club Drive, Palm Desert CA 92260 pursuant to Government Code Section 54953 How to observe the meeting: 1. Spectrum local access Channel 27 2. Online live webcast at www.cityofpalmdale.org. How to Address the City Council Any person who would like to address the Council regarding an item on the agenda, please fill out a Speaker's Form and submit it to the City Clerk prior to the agenda item you would like to discuss. You may address the Council once per meeting, per public comment section of the agenda on only those matters within the Council's jurisdiction. Please note that you are not required to complete this form or state your name and residence in order to speak. Each person addressing the Council is given up to three minutes to speak (with double the time allotted to non-English speakers using a translator). The amount of time authorized may be adjusted by the chair. If you wish to provide information to the Council, please present the City Clerk with 7 copies. Otherwise, your materials will simply be added to the administrative record. In accordance with the Americans with Disabilities Act of 1990, if you require a disability- CITY COUNCIL MEETING REVISED SUCCESSOR AGENCY CITY COUNCIL CHAMBERS 38300 SIERRA HIGHWAY SUITE B PALMDALE, CA 93550 WEDNESDAY, MAY 3, 2023 5:00 PM www.cityofpalmdale.org WELCOME City Council Wednesday, May 3, 2023 1

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. Your courtesy is requested to help our meetings run smoothly. Please follow these simple rules so we can make the best possible use of your time and ours: Please refrain from public displays or outbursts, such as unsolicited applause, comments, cheering, foul language or obscenities. Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be asked to leave the meeting. Please turn off/mute your cell phones and mobile devices. 5:00 P.M. 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 Mayor and Council of a Commendation to Tony Tortolano naming him City of Palmdale’s Veteran of the Year. 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.) 6. PUBLIC COMMENTS ON CONSENT CALENDAR ITEMS ONLY This portion of the Agenda allows an individual the opportunity to address the Council on Consent Calendar items ONLY. If you wish to comment on any item(s) listed on the Consent Calendar, please come forward to the podium when called or acknowledged by City Council Wednesday, May 3, 2023 2

the Chair and state the item number(s) and your comments. PLEASE NOTE: A three- minute time limit will be imposed on each speaker. 7. 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. 7.1 Receive and File the Monthly and Quarterly Investment Activity for March 2023. 1. Staff_Report_-_Investment_Report_Mar_2023.docx 02 March 2023 City & Successor Monthly and Quarterly Investment Rprt.pdf 7.2 Approve Agreement with Eide Bailly, LLP. for Auditing Services in the amount of $960,000, for a five (5) year term through June 30, 2028. 1. Staff Report Eide Bailly, LLC Contract A-8300.docx EIDE BAILLY (A-8300).pdf 7.3 Approve First Amendment to Legal Services Agreement with Civica Law Group, APC (A-8272) to increase the total amount of the Agreement by $500,000 not to exceed the sum of $600,000. SR - Civica Law Group A-8272 Amend 1 - 050323.docx Civica Law Group, APC - (A-8272) Amendment 1.pdf Civica Law Group, APC (A-8272).pdf 7.4 Adopt Resolution No. CC 2023-024, a Resolution of the City Council of the City of Palmdale directing the preparation of the Engineer's Report for the continuation of the annual levy of assessments and designating the Engineer of Work for the City of Palmdale Drainage Benefit Assessment Districts No. 1, and No. 2006-02. Palmdale DBAD - Staff Report 5-3-2023 v2.docx Palmdale DBAD - Res 1 #CC 2023-024 for 5-3-2023 v2.doc 7.5 Adopt Resolution No. CC 2023-025, a Resolution of the City Council of the City of Palmdale directing the preparation of the annual Engineer's Reports for the continuation of the annual levy of assessments and designating the Engineer of Work 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. Palmdale LMD - Staff Report 5-3-2023 v2.docx Palmdale LMDParkSMD - Res 1 #CC 2023-025 for 5-3-2023 tc.doc 7.6 Approve Purchase Order No. 20230522 with Nixon-Egli Equipment Company for One(1) New JAJ-600WH Easement Machine in an amount not to exceed $114,109. City Council Wednesday, May 3, 2023 3

SR Approve PO 20230522 Nixon-Egli - Easement Machine.docx 1. Purchase Order NO. 20230522 Nixon-Egli Equipment.pdf 2. Sourcewell Contract No. 101221-SCA.pdf 3. Nixon-Egli Quote 100710 Easement Machine.pdf Picture.docx 7.7 Approve the transfer of SB 1: Funds, The Road Repair and Accountability Act (RMRA) of 2017, from Account No. S0025210, Pavement Resurfacing to Account No. S0062210, County Pavement Projects, in the amount of $1,235,000. SB1 transfer staff report.docx 10TH ST EAST ET AL.pdf Avenue P - 15th St East to 30th St East.pdf CHESEBORO RD - PEARBLOSSOM HWY TO COUNTY BOUNDARY.pdf LAGO LINDO RD ET AL.pdf SIERRA HWY - PEARBLOSSOM HW TO AVE S.pdf 7.8 Approve the minutes from the previous meetings. CC - March 15, 2023 CC/SA/IDA/PAA/PCA/PFA - April 5, 2023 CC - April 19, 2023 CC Minutes 03 15 2023.pdf CC_SA_HA_IDA_PAA_PCA_PFA Minutes 04 05 2023.pdf CC Minutes 04 19 2023.pdf 8. PUBLIC HEARING 8.1 Introduction and Adoption of Ordinance No. 1610, an Ordinance of the City Council of the City of Palmdale, amending Ordinance U-1582; as it amended Palmdale Municipal Code Section 16.40.120 to increase the initial term of Tentative Maps by two years, and to increase the term of certain phased Tentative Maps by one additional two-year period. Staff Report TTM Extension.docx Ordinance_No._1610.docx 8.2 Public Hearing to hear public comments on the Draft 2023-2024 Action Plan Programming estimated $2,650,709 in Consolidated Plan funds; review, approve, and submit the 2023-2024 Action Plan; and execute documents related to the submission of the Action Plan, and Sub-Recipient agreements. Staff Report 2023-24 Action Plan.docx 2023- 2024 Draft AAP_Palmdale.pdf 8.3 Public Hearing to review the Substantial Amendment to the 2022-2023 Annual Action Plan, the proposed Section 108 application and the expenditure of City Council Wednesday, May 3, 2023 4

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 2022-2023 Action Plan; and adopt Resolution No. CC 2023-02, a resolution of the City Council of the City of Palmdale, authorizing the City manager or their designee to submit the Section 108 Loan Guarantee Application to the United States Department of Housing and Urban Development for a $6,000,000 Loan for SAVES Facility Improvements. Staff Report Section 108.docx Resolution No. CC 2023-021.doc Palmdale Draft Section 108 Application.pdf 9. APPOINTMENT(S) 9.1 City Council Nomination and Appointment of seven (7) Members and seven (7) Alternates to the Measure AV Oversight Committee. StaffReport MAV Appointments 2023.docx MAV Apps redacted.pdf 10. PUBLIC COMMENTS ON NON-AGENDA ITEMS This portion of the Agenda allows an individual the opportunity to address the Council on any subject regarding City business not on the Agenda. Under state legislation, no action can be taken on items not specifically referenced on the Agenda and the Chair may refer you to the City Manager or staff to address your request. PLEASE NOTE: A three- minute time limit will be imposed on each speaker and your topic must remain relevant to items within the City's authority or purview. 11. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT PUBLIC EXPENSE 11.1 COMMITTEE MEMBERSHIPS. • 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 • LOS ANGELES COUNTY SANITATION DISTRICT • NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION • PALMDALE RECYCLED WATER AUTHORITY City Council Wednesday, May 3, 2023 5

• UNITED STATES/MEXICO SISTER CITIES ASSOCIATION • CALIFORNIA STATE PRISON – LOS ANGELES COUNTY, CITIZENS ADVISORY COMMITTEE 11.2 MEETINGS ATTENDED AT PUBLIC EXPENSE Alarcon Informational Report 050323.docx Bettencourt Informational Report 050323.docx Bishop Informational Report 050323.docx Ohlsen Informational Report 050323.docx 12. CITY COUNCIL ANNOUNCEMENTS AND REQUESTS FOR NEW AGENDA ITEMS 13. CITY MANAGER’S REPORT 14. PUBLIC COMMENTS ON CLOSED SESSION ITEMS This portion of the Agenda allows an individual the opportunity to address the Council on Closed Session items ONLY. PLEASE NOTE: A three-minute time limit will be imposed on each speaker. 15. PRESENTATION BY CITY ATTORNEY 15.1 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). 15.2 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). 15.3 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, May 3, 2023 6

15.4 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). 15.5 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Edman Discua v. City of Palmdale, et al. Los Angeles Superior Court Case No. 21STCV45406 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 15.6 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Land Developers & Associates Corporation v. Successor Agency to the Community Redevelopment Agency of the City of Palmdale, et al. Los Angeles County Superior Court Case No. 22AVCV01093 The closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 16. ANNOUNCEMENT BY CITY ATTORNEY 17. ADJOURN meeting to May 17, 2023 at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California. City Council Wednesday, May 3, 2023 7

Mayor Pro Tem Alarcon will be participating via teleconference from JW Marriott Desert Springs Resort & Spa, Quiet Library, 74855 Country Club Drive, Palm Desert CA 92260 pursuant to Government Code Section 54953 How to observe the meeting: 1. Spectrum local access Channel 27 2. Online live webcast at www.cityofpalmdale.org. How to Address the City Council Any person who would like to address the Council regarding an item on the agenda, please fill out a Speaker's Form and submit it to the City Clerk prior to the agenda item you would like to discuss. You may address the Council once per meeting, per public comment section of the agenda on only those matters within the Council's jurisdiction. Please note that you are not required to complete this form or state your name and residence in order to speak. Each person addressing the Council is given up to three minutes to speak (with double the time allotted to non-English speakers using a translator). The amount of time authorized may be adjusted by the chair. If you wish to provide information to the Council, please present the City Clerk with 7 copies. Otherwise, your materials will simply be added to the administrative record. In accordance with the Americans with Disabilities Act of 1990, if you require a disability- CITY COUNCIL MEETING REVISED SUCCESSOR AGENCY CITY COUNCIL CHAMBERS 38300 SIERRA HIGHWAY SUITE B PALMDALE, CA 93550 WEDNESDAY, MAY 3, 2023 5:00 PM www.cityofpalmdale.org WELCOME City Council Wednesday, May 3, 2023

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. Your courtesy is requested to help our meetings run smoothly. Please follow these simple rules so we can make the best possible use of your time and ours: Please refrain from public displays or outbursts, such as unsolicited applause, comments, cheering, foul language or obscenities. Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be asked to leave the meeting. Please turn off/mute your cell phones and mobile devices. 5:00 P.M. 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 Mayor and Council of a Commendation to Tony Tortolano naming him City of Palmdale’s Veteran of the Year. 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.) 6. PUBLIC COMMENTS ON CONSENT CALENDAR ITEMS ONLY This portion of the Agenda allows an individual the opportunity to address the Council on Consent Calendar items ONLY. If you wish to comment on any item(s) listed on the Consent Calendar, please come forward to the podium when called or acknowledged by City Council Wednesday, May 3, 2023

the Chair and state the item number(s) and your comments. PLEASE NOTE: A three- minute time limit will be imposed on each speaker. 7. 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. 7.1 Receive and File the Monthly and Quarterly Investment Activity for March 2023. 1. Staff_Report_-_Investment_Report_Mar_2023.docx 02 March 2023 City & Successor Monthly and Quarterly Investment Rprt.pdf 7.2 Approve Agreement with Eide Bailly, LLP. for Auditing Services in the amount of $960,000, for a five (5) year term through June 30, 2028. 1. Staff Report Eide Bailly, LLC Contract A-8300.docx EIDE BAILLY (A-8300).pdf 7.3 Approve First Amendment to Legal Services Agreement with Civica Law Group, APC (A-8272) to increase the total amount of the Agreement by $500,000 not to exceed the sum of $600,000. SR - Civica Law Group A-8272 Amend 1 - 050323.docx Civica Law Group, APC - (A-8272) Amendment 1.pdf Civica Law Group, APC (A-8272).pdf 7.4 Adopt Resolution No. CC 2023-024, a Resolution of the City Council of the City of Palmdale directing the preparation of the Engineer's Report for the continuation of the annual levy of assessments and designating the Engineer of Work for the City of Palmdale Drainage Benefit Assessment Districts No. 1, and No. 2006-02. Palmdale DBAD - Staff Report 5-3-2023 v2.docx Palmdale DBAD - Res 1 #CC 2023-024 for 5-3-2023 v2.doc 7.5 Adopt Resolution No. CC 2023-025, a Resolution of the City Council of the City of Palmdale directing the preparation of the annual Engineer's Reports for the continuation of the annual levy of assessments and designating the Engineer of Work 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. Palmdale LMD - Staff Report 5-3-2023 v2.docx Palmdale LMDParkSMD - Res 1 #CC 2023-025 for 5-3-2023 tc.doc 7.6 Approve Purchase Order No. 20230522 with Nixon-Egli Equipment Company for One(1) New JAJ-600WH Easement Machine in an amount not to exceed $114,109. City Council Wednesday, May 3, 2023

SR Approve PO 20230522 Nixon-Egli - Easement Machine.docx 1. Purchase Order NO. 20230522 Nixon-Egli Equipment.pdf 2. Sourcewell Contract No. 101221-SCA.pdf 3. Nixon-Egli Quote 100710 Easement Machine.pdf Picture.docx 7.7 Approve the transfer of SB 1: Funds, The Road Repair and Accountability Act (RMRA) of 2017, from Account No. S0025210, Pavement Resurfacing to Account No. S0062210, County Pavement Projects, in the amount of $1,235,000. SB1 transfer staff report.docx 10TH ST EAST ET AL.pdf Avenue P - 15th St East to 30th St East.pdf CHESEBORO RD - PEARBLOSSOM HWY TO COUNTY BOUNDARY.pdf LAGO LINDO RD ET AL.pdf SIERRA HWY - PEARBLOSSOM HW TO AVE S.pdf 7.8 Approve the minutes from the previous meetings. CC - March 15, 2023 CC/SA/IDA/PAA/PCA/PFA - April 5, 2023 CC - April 19, 2023 CC Minutes 03 15 2023.pdf CC_SA_HA_IDA_PAA_PCA_PFA Minutes 04 05 2023.pdf CC Minutes 04 19 2023.pdf 8. PUBLIC HEARING 8.1 Introduction and Adoption of Ordinance No. 1610, an Ordinance of the City Council of the City of Palmdale, amending Ordinance U-1582; as it amended Palmdale Municipal Code Section 16.40.120 to increase the initial term of Tentative Maps by two years, and to increase the term of certain phased Tentative Maps by one additional two-year period. Staff Report TTM Extension.docx Ordinance_No._1610.docx 8.2 Public Hearing to hear public comments on the Draft 2023-2024 Action Plan Programming estimated $2,650,709 in Consolidated Plan funds; review, approve, and submit the 2023-2024 Action Plan; and execute documents related to the submission of the Action Plan, and Sub-Recipient agreements. Staff Report 2023-24 Action Plan.docx 2023- 2024 Draft AAP_Palmdale.pdf 8.3 Public Hearing to review the Substantial Amendment to the 2022-2023 Annual Action Plan, the proposed Section 108 application and the expenditure of City Council Wednesday, May 3, 2023

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 2022-2023 Action Plan; and adopt Resolution No. CC 2023-02, a resolution of the City Council of the City of Palmdale, authorizing the City manager or their designee to submit the Section 108 Loan Guarantee Application to the United States Department of Housing and Urban Development for a $6,000,000 Loan for SAVES Facility Improvements. Staff Report Section 108.docx Resolution No. CC 2023-021.doc Palmdale Draft Section 108 Application.pdf 9. APPOINTMENT(S) 9.1 City Council Nomination and Appointment of seven (7) Members and seven (7) Alternates to the Measure AV Oversight Committee. StaffReport MAV Appointments 2023.docx MAV Apps redacted.pdf 10. PUBLIC COMMENTS ON NON-AGENDA ITEMS This portion of the Agenda allows an individual the opportunity to address the Council on any subject regarding City business not on the Agenda. Under state legislation, no action can be taken on items not specifically referenced on the Agenda and the Chair may refer you to the City Manager or staff to address your request. PLEASE NOTE: A three- minute time limit will be imposed on each speaker and your topic must remain relevant to items within the City's authority or purview. 11. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT PUBLIC EXPENSE 11.1 COMMITTEE MEMBERSHIPS. • 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 • LOS ANGELES COUNTY SANITATION DISTRICT • NORTH LOS ANGELES COUNTY TRANSPORTATION COALITION • PALMDALE RECYCLED WATER AUTHORITY City Council Wednesday, May 3, 2023

• UNITED STATES/MEXICO SISTER CITIES ASSOCIATION • CALIFORNIA STATE PRISON – LOS ANGELES COUNTY, CITIZENS ADVISORY COMMITTEE 11.2 MEETINGS ATTENDED AT PUBLIC EXPENSE Alarcon Informational Report 050323.docx Bettencourt Informational Report 050323.docx Bishop Informational Report 050323.docx Ohlsen Informational Report 050323.docx 12. CITY COUNCIL ANNOUNCEMENTS AND REQUESTS FOR NEW AGENDA ITEMS 13. CITY MANAGER’S REPORT 14. PUBLIC COMMENTS ON CLOSED SESSION ITEMS This portion of the Agenda allows an individual the opportunity to address the Council on Closed Session items ONLY. PLEASE NOTE: A three-minute time limit will be imposed on each speaker. 15. PRESENTATION BY CITY ATTORNEY 15.1 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). 15.2 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). 15.3 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, May 3, 2023

15.4 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). 15.5 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Edman Discua v. City of Palmdale, et al. Los Angeles Superior Court Case No. 21STCV45406 This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 15.6 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Land Developers & Associates Corporation v. Successor Agency to the Community Redevelopment Agency of the City of Palmdale, et al. Los Angeles County Superior Court Case No. 22AVCV01093 The closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1). 16. ANNOUNCEMENT BY CITY ATTORNEY 17. ADJOURN meeting to May 17, 2023 at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California. City Council Wednesday, May 3, 2023

City Council Staff Report DATE: MAY 3, 2023 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 2023 ISSUE Receive and file the monthly and quarterly investment activity reports for March 2023. RECOMMENDATION Staff recommends that the City Council receive and file the monthly and quarterly investment activity reports for City of Palmdale and Successor Agency for March 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 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 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 and Quarterly Reports on Investments May 3, 2023 Page 2 DISCUSSION Compliance with Investment Policy For March, the invested portfolio amount for the City of Palmdale totaled $299,514,504, a decrease of $999,225 from the previous month, and an increase of $60,459,869 in comparison to last year. The monthly decrease is the result of a maturity of a corporate note that was pulled out from the investment portfolio. The par value of Successor Agency’s portfolio as of March was $10,964,331. The balance decreased by $1,245,024 from the last month due to debt service payments made out of 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. Total LAIF balance for the City of Palmdale at the end of March is $119,234,729. No changes compared to prior month. Successor Agency LAIF balance at the end of March was $4,458,763. No changes from the prior month. CAMP’s balance for City of Palmdale at the end of March was $256,027 compared to February balance of $254,985. 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 March 31, 2023, the interest rates for LAIF and CAMP investments were at 2.831 percent and 4.80 percent, respectively. By comparison, the LAIF and

Report to Mayor and City Council Re: Monthly and Quarterly Reports on Investments May 3, 2023 Page 3 CAMP interest rates at the end of February were at 2.624 percent and 4.73 percent. Both rates have slightly increased within this month. This time last year, LAIF and CAMP rates were at 0.365 percent and 0.25, respectively. The chart above shows both the Local Agency Investment Fund and California Asset Management Program’s average monthly yields beginning June 2022 through March 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 and quarterly reports include all investments held by both entities and current book values as of March 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 monitor any financial impact due to the Coronavirus pandemic and the current economic conditions and the impact on interest rates. 0.86% 1.09% 1.28% 1.51% 1.77% 2.01% 2.17% 2.43% 2.62% 2.83% 1.14% 1.64% 2.30% 2.61% 3.14% 3.90% 4.30% 4.53% 4.73% 4.80% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Q4 Jun Jul Aug Q1 Sep Oct Nov Q2 Dec Jan Feb Q3 Mar Pooled Investments Monthly Yields LAIF CAMP

Report to Mayor and City Council Re: Monthly and Quarterly Reports on Investments May 3, 2023 Page 4 Attached are summaries of the investments on the City of Palmdale and Successor Agency’s books as of March 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, Financial Analyst Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, Interim City Manager Approved as to form: William P. Curley, III, Special Counsel ATTACHMENTS 1. Monthly and Quarterly Reports on City of Palmdale Investments 2. Monthly and Quarterly Report on Successor Agency Investments

CITY OF PALMDALE TREASURER'S REPORT OF INVESTMENTS March 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 01-19-21 05-31-23 CITY 9128284S6 U.S. Treasury Note 2.75 2,815,000.00 2,985,994.41 2,811,030.85 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 74,015,000.00$ 75,936,390.18$ 71,920,901.65$ 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 TOTAL GOVERNMENT AGENCY PAPER 106,160,000.00$ 104,459,584.08$ 99,781,605.03$ CERTIFICATES OF DEPOSIT 05-10-18 05-10-23 CITY 61747MX30 Morgan Stanley Bank Na 32992 3.15 245,000.00 245,000.00 546,098.34 05-11-18 05-11-23 CITY 87164WWF1 Synchrony Bank 27314 3.15 245,000.00 245,000.00 246,091.97 05-11-18 05-11-23 CITY 17312QL23 Citiban