Hemet City Council
February 22, 2022

14.A

City of Hemet
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Revenues
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Investment income
Other contributions
Miscellaneous
Total revenues
Expenditures
General government
Public safety
Community development
Public works
Sanitation
Parks
Libraries
Capital outlay
Debt service
Principal
Interest
SERAF Obligation
Fiscal-administrative charges
Total expenditures
Excess (deficiency) of
revenues over expenditures
Other financing sources (uses)
Transfers in
Transfers out
Issuance of debt
Total other financing sources
(uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
Source: City of Hemet
2017 2018 2019 2020 2021
34,284$ 44,799$ 47,526$ 48,194$ 46,678$ 1,679 1,784 1,968 5,371 2,104 5,677 5,792 5,854 5,495 10,157 10,393 11,307 11,152 7,248 3,234 443 491 446 336 234 197 402 2,425 1,815 299 - - - - - 679 1,261 2,204 1,960 8 53,352 65,836 71,575 70,419 62,714 2,103 2,195 5,148 2,235 2,390 32,497 38,450 35,908 40,448 42,039 4,844 4,856 5,057 4,593 5,420 5,488 8,804 6,076 5,795 5,125 1,999 2,193 2,104 1,879 2,437 1,205 1,248 1,153 1,295 1,052 1,642 1,600 1,486 1,540 1,587 2,457 2,193 4,002 7,508 4,127 -
- - - - - - - - - - - - - - - - - - - 52,235 61,539 60,934 65,293 64,177 1,117 4,297 10,641 5,126 (1,463) 325 467 183 1,876 27 (1,086) (513) (1,264) (1,379) (2) - - - - (761) (46) (1,081) 497 25 356$ 4,251$ 9,560$ 5,623$ (1,438)$

0.00% 0.00% 0.00% 0.00% 0.00%
Fiscal Year
Statistical Table 4
139

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City of Hemet
Own Source Revenue
Governmental Activities Property Tax Revenue
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Property
Year Tax
2012 4,611
2013 7,127
2014 5,946
2015 5,381
2016 5,916
2017 6,136
2018 6,804
2019 7,392
2020 7,592
2021 7,650
**Revenues for Fiscal Year 2012/2013 include additional amounts as a result of the RDA Dissolution Statistical Table 5
140

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City of Hemet
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Taxable Taxable Highest
Fiscal Less Assessed Less Assessed Direct Tax
Year Secured Unsecured Exemptions Value Secured Unsecured Exemptions Value Rate 2012 4,107,678,820 172,163,525 (121,880,603) 4,157,961,742 1,226,300,702 77,049,549 N/A** 1,303,350,251 0.24552 2013 4,115,265,405 183,667,394 (122,849,619) 4,176,083,180 1,238,584,940 78,868,067 N/A** N/A** 0.24552 2014 4,330,049,882 165,792,295 (133,510,154) 4,362,332,023 1,311,683,769 72,346,441 N/A** N/A** 0.24552 2015 4,706,629,409 160,264,993 (145,097,337) 4,721,797,065 1,402,028,714 66,989,353 N/A** N/A** 0.24552 2016 4,989,091,509 157,483,240 (153,462,996) 4,993,111,753 1,472,420,756 64,336,968 N/A** N/A** 0.24552 2017 5,294,563,351 166,151,715 (159,158,493) 5,301,556,573 1,554,120,090 66,302,157 N/A** N/A** 0.24552 2018 5,738,442,456 173,750,554 (152,501,372) 5,759,691,638 1,632,333,531 67,103,391 N/A** N/A** 0.24552 2019 5,891,505,336 190,128,633 (164,926,297) 5,916,707,672 1,709,804,561 78,020,649 N/A** N/A** 0.24552 2020 6,150,877,556 190,147,395 (169,524,075) 6,171,500,876 1,794,064,122 76,990,710 N/A** N/A** 0.24552 2021 6,451,235,055 187,135,933 (178,728,139) 6,459,668,559 1,856,098,890 77,009,200 N/A** N/A** 0.24552 NOTE:

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. **The State of California dissolved all Redevelopment Agencies effective 02/01/2012. All activity for the wind down of the Agencies was moved to a Successor Agency.

Source: Riverside County Auditor-Controller
City Redevelopment
Statistical Table 6
141

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City of Hemet
Property Tax Rates
Direct and Overlapping Governments
Per $100 of Assessed Value
Last Ten Fiscal Years
2012 2013 2014 2015 2016
City Direct Rates:

City of Hemet Basic Area 0.24552 0.24552 0.24552 0.24552 0.24552 Overlapping Rates:

Hemet Unified School 0.30653 0.30653 0.30653 0.30653 0.30653 County General 0.25433 0.25433 0.25433 0.25433 0.25433 Eastern Municipal Water District 0.04435 0.04435 0.04435 0.04435 0.04435 Flood control Zone 4 0.03923 0.03923 0.03923 0.03923 0.03923 Riv. Co. Office of Education 0.03641 0.03641 0.03641 0.03641 0.03641 Mt. San Jacinto Junior College 0.03527 0.03527 0.03527 0.03527 0.03527 Eastern Municipal Water Improvement Dist 17 0.01665 0.01665 0.01665 0.01665 0.01665 Valley Wide Recreation & Park District 0.01455 0.01455 0.01455 0.01455 0.01455 San Jacinto Valley Cemetery 0.00458 0.00458 0.00458 0.00458 0.00458 Flood Control Administration 0.00238 0.00238 0.00238 0.00238 0.00238 San Jacinto Basin Resource Conservation 0.00020 0.00020 0.00020 0.00020 0.00020 Proposition 13 Rate 1.00000 1.00000 1.00000 1.00000 1.0000 Bond issues:

Hemet Unified School District Debt Sv 0.12536 0.12525 0.12502 0.11991 0.13729 Metropolitan Water District Debt Sv 0.0037 0.0035 0.0035 0.0035 0.0035 Total Rate 1.12906 1.12875 1.12852 1.12341 1.14079 NOTE:

In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount.

This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of Hemet Unified School District Debt Service and Metropolitan Water District Debt Service.

Ratios for tax rate area 006-001, excluding Redevelopment factors the average tax rate in City of Hemet Basic Area is approximately .17 prior to the ERAF shifts Source: HDL, Coren & Cone
Riverside County Auditor-Controller
Statistical Table 7
142

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City of Hemet
Property Tax Rates
Direct and Overlapping Governments
Per $100 of Assessed Value
Last Ten Fiscal Years
2017 2018 2019 2020 2021
City Direct Rates:

City of Hemet Basic Area 0.24552 0.24552 0.24552 0.24552 0.24552 Overlapping Rates:

Hemet Unified School 0.30653 0.30653 0.30653 0.30653 0.30653 County General 0.25433 0.25433 0.25433 0.25433 0.25433 Eastern Municipal Water District 0.04435 0.04435 0.04435 0.04435 0.04435 Flood control Zone 4 0.03923 0.03923 0.03923 0.03923 0.03923 Riv. Co. Office of Education 0.03641 0.03641 0.03641 0.03641 0.03641 Mt. San Jacinto Junior College 0.03527 0.03527 0.03527 0.03527 0.03527 Eastern Municipal Water Improvement Dist 17 0.01665 0.01665 0.01665 0.01665 0.01665 Valley Wide Recreation & Park District 0.01455 0.01455 0.01455 0.01455 0.01455 San Jacinto Valley Cemetery 0.00458 0.00458 0.00458 0.00458 0.00458 Flood Control Administration 0.00238 0.00238 0.00238 0.00238 0.00238 San Jacinto Basin Resource Conservation 0.00020 0.00020 0.00020 0.00020 0.00020 Proposition 13 Rate 1.0000 1.0000 1.0000 1.0000 1.0000 Bond issues:

Hemet Unified School District Debt Sv 0.12409 0.11019 0.10173 0.11571 0.11876 Metropolitan Water District Debt Sv 0.0035 0.0035 0.0035 0.0035 0.0035 Total Rate 1.12759 1.11369 1.10523 1.11921 1.12226 NOTE:

In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount.

This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of Hemet Unified School District Debt Service and Metropolitan Water District Debt Service.

Ratios for tax rate area 006-001, excluding Redevelopment factors the average tax rate in City of Hemet Basic Area is approximately .17 prior to the ERAF shifts Source: HDL, Coren & Cone
Riverside County Auditor-Controller
Statistical Table 7
143

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City of Hemet
Principal Property Taxpayers
Current Fiscal Year and Nine Years Ago
Percent of Percent of
Total City Total City
Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Department of Transportation 51,462,185 $ 1 0.80% - - Physicians for Healthy Hospitals Inc 48,352,717 2 0.75% - - Granite Village West LP 46,017,517 3 0.71% - - Freedom Properties Hemet 45,974,969 4 0.71% - - Walmart Real Estate Business Trust 41,337,700 5 0.64% - - CBYW Hemet ILF PROPCO LP 38,707,554 6 0.60% - - FFLP CC 33,234,578 7 0.51% - - Providence Hemet Apts 29,025,812 8 0.45% - - MCS Hemet Valley Center 26,883,513 9 0.42% - - Time Warner Cable Pacific West LLC 24,027,254 10 0.37% - - PHH Real Estate - - 41,468,000 1 1.00% Freedom Properties Hemet - - 38,808,859 2 0.93% Grainte Village West LP - - 37,960,708 3 0.91% MCS Hemet Valley Center - - 31,998,302 4 0.77% Walmart Real Estate Business Trust - - 27,323,636 5 0.66% James J. Femino - - 25,877,754 6 0.62% Time Warner NY Cable LLC - - 23,541,191 7 0.57% Deutsch Engineered Connecting Devices - - 17,467,356 8 0.42% John M Sachs Inc - - 17,078,334 9 0.41% Jianna Properties - - 16,905,000 10 0.41% 385,023,799$ 5.96% 278,429,140 $ 6.70%
Source: HDL, Coren & Cone
20122021
Statistical Table 8
144

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City of Hemet
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal City Redevelopment Successor Agency City Redevelopment Percentage Collection of Percentage Year Tax Levy Tax Increment Tax Increment Amount Amount * of Levy Deli nquent taxes Amount of Levy 2012 4,218 10,238 - 4,263 5,997 70.97% 349 4,611 109.32% 2013 4,175 - 10,338 4,524 - 108.36% 337 4,861 116.43% 2014 4,384 - 10,840 4,333 - 98.84% 455 4,788 109.21% 2015 4,722 - 10,589 4,709 - 99.71% 240 4,949 104.79% 2016 4,965 - 10,714 4,960 - 99.89% 280 5,240 105.53% 2017 5,240 - 10,652 5,285 - 100.86% 214 5,499 104.95% 2018 5,514 - 10,683 5,552 - 100.68% 255 5,806 105.30% 2019 5,809 - 10,667 5,896 - 101.50% 193 6,088 104.81% 2020 6,146 - 10,675 6,083 - 98.98% 164 6,247 101.65% 2021 6,373 - 10,671 6,430 - 100.89% 169 6,599 103. 54% NOTE:

The amounts presented include City property taxes and Redevelopment Agency tax increments. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed-through to other agencies. * The Redevelopment amount is Gross Tax Increment received which includes pass through amounts to other agencies. approximately 43% of the Redevelopment amount collected is available for the Redevelopment Agency **The State of California dissolved all Redevelopment Agencies effective 02/01/2012. All activity for the wind down of the Agencies was moved to a Successor Agency.

Since Successor Agency increment is only enough to cover annual costs of the wind down process, these amounts are excluded from the collection data.

Source: Riverside County Auditor Controller
HDL, Coren & Cone
Total Collections to Date
Collected within the
Fiscal Year of the Levy
Statistical Table 9
145

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City of Hemet
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) Water Total Percentage
Fiscal Certificates 1999 2002 Notes Revenue Capital Certificates Primary of Personal Per Year of Participation TAB TAB Payable Bonds Leases of Participation Government Income Capita 2012 - * * - - 286 - 286 0.02% 4 2013 - * * - - 153 - 153 0.01% 2 2014 - * * - - - - - 0.00% - 2015 - * * - - - - - 0.00% - 2016 - * * - - - - - 0.00% - 2017 - * * - - - - - 0.00% - 2018 - * * - - - - - 0.00% - 2019 - * * - - - - - 0.00% - 2020 - * * - - - - - 0.00% - 2021 - * * - - - - - 0.00% - NOTE:
* 1999 and 2002 Tax Allocation Bonds are no longer reported as part of the primary government.

Sources: City of Hemet Financial Statements
State of California Franchise Tax Board
State Department of Finance
Governmental Activities Business-Type Activities
Statistical Table 10
146

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City of Hemet
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) General Tax
Fiscal Obligation Allocation Percentage of Per
Year Population Bonds Bonds Total Assessed Value * Capita 2012 80,089 - ** - 0.00% - 2013 80,877 - ** - 0.00% - 2014 81,537 - ** - 0.00% - 2015 82,253 - ** - 0.00% - 2016 80,070 - ** - 0.00% - 2017 81,868 - ** - 0.00% - 2018 83,166 - ** - 0.00% - 2019 84,754 - ** - 0.00% - 2020 85,175 - ** - 0.00% - 2021 84,525 - ** - 0.00% - General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). * Assessed value has been used bec ause the actual value of taxable property is not readily available in the State of California.
** 1999 and 2002 Tax Allocation Bonds are no longer reported as part of the primary government.

Statistical Table 11
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City of Hemet
Direct and Overlapping Governmental Activities Debt
as of June 30, 2021
2020-2021 Assessed Valuation: 6,461,028,556 $
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6 /30/2021 % Applicable (1) De bt 6/30/21 Metropolitan Water District $26,830,000 0.20% 53,123$
Eastern Municipal Water District, I.D. No. 24 196,000 52.489% 102,878$ Eastern Municipal Water District, I.D. No. U12 264,000 2.13% 5,623$ Eastern Municipal Water District, I.D. No. U18 447,000 100.000% 447,000$ Eastern Municipal Water District, I.D. No. U21 130,000 13.62% 17,706$ Mt. San Jacinto Community College District 262,750,000 6.33% 16,621,565$ Hemet Unified School District 198,510,000 51.21% 101,656,971$ San Jacinto Unified School District 61,181,638 6.22% 3,807,945$ Hemet Unified School District Community Facilities District No. 2004-1 2,635,000 100.000% 2,635,000$ Hemet Unified School District Community Facilities District No. 2005-2, 3 & 4 17,620,000 100.000% 17,620,000$ San Jacinto Unified School District Community Facilities District No. 2005-4 6,990,000 29.185% 2,040,032$ Eastern Municipal Water District Community Facilities District No. 2001-02 2,990,000 100.000% 2,990,000$ Eastern Municipal Water District Community Facilities District No. 2004-27 5,857,000 100.000% 5,857,000$ Eastern Municipal Water District Community Facilities District No. 2005-38 2,095,000 100.000% 2,095,000$ Eastern Municipal Water District Community Facilities District No. 2006-56 7,820,000 100.000% 7,820,000$ City of Hemet Community Facilities District No. 1999-1 6,265,000 100.000% 6,265,000$ California Statewide Communities Development Authority -$ Community Facilities District No 2018-2 I.A. No. 1 8,510,000 100.000% 8,510,000$ TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 178, 544,844$ DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Riverside County General Fund Obligations $717,525,698 2.063% 14,802,555$ R
iverside County Pension Obligations 881,575,000 2.063% 18,186,892 Riverside County Flood Control District, Zone No. 4 10,260,000 10.849% 1,113,107 Hemet Unified School District Certificates of Participation 40,720,000 51.210% 20,852,712 San Jacinto Unified School District Certificates of Participation 41,995,000 6.224% 2,613,769 City of Hemet 0 100.000% 0
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 57,569,036$ Less: Riverside County Administrative Center Authority (100% self-supporting from tax increment revenues) -
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT 57,569,036$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency):

Hemet Redevelopment Agency Tax Allocation Bonds 7,995,000 100.000% 7,995,000 Riverside County Project Areas Tax Allocation Bonds 348,753,028 0.405 - 3.442 3,202,434 TOTAL OVERLAPPING TAX INCREMENT DEBT 11,197,434
TOTAL DIRECT DEBT $0
TOTAL GROSS OVERLAPPING DEBT 247,311,313
TOTAL NET OVERLAPPING DEBT 247,311,313
GROSS COMBINED TOTAL DEBT 247,311,313$ (2)
NET COMBINED TOTAL DEBT 247,311,313$
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2020-21 Assessed Valuations
:

Total Overlapping Tax and Assessment Debt 2.76%
Total Direct Debt 0.00%
Gross Combined Total Debt 3.83%
Net Combined Total Debt 3.83%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($1,680,720,116):

Total Overlapping Tax Increment Debt 0.67%
Source: California Municipal Statistics, Inc.

Statistical Table 12
148

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City of Hemet
Legal Debt Margin Information
Last Ten Years
2012 2013 2014 2015 2016
Debt Limit 155,923,565 $ 156,603,119 $ 163,587,451 $ 171,057,453 $ 181,336,069 $ Total net debt applicable to limit - - - - - Legal debt margin 155,923,565 $ 156,603,119 $ 163,587,451 $ 171,057,453 $ 181,336,069 $ Total net debt applicable to the limit
as a percentage of debt limit - - - - - Legal Debt Margin Calculation for Fiscal Year 2021:

Assessed Value 6,272,506,916 $
Debt limit (3.75% of assessed value) 235,219,009$
Debt applicable to limit:

General obligation bonds
Legal debt margin 235,219,009 $
The Government Code of the State of California provides for a l egal debt limit of 15% of gross assessed valuation.

However, this provision was enacted when assessed valuation was based upon 25% of market value.

Effective with the 1981-82 fiscal year, each parcel is now asse ssed at 100% of market value (as of the most recent change in ownership for that parcel). Although the stat utory debt limit has not been amended by the State since this change, the percentage presented in the above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the state's establishment of the limit.

Source: Riverside County Assessor's Office
Statistical Table 13
149

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City of Hemet
Legal Debt Margin Information
Last Ten Years
2017 2018 2019 2020 2021
Debt Limit 192,577,682 $ 203,270,441 $ 214,746,714 $ 224,300,756 $ 235,219,009 $ Total net debt applicable to limit - - - - - Legal debt margin 192,577,682 $ 203,270,441 $ 214,746,714 $ 224,300,756 $ 235,219,009 $ Total net debt applicable to the limit
as a percentage of debt limit - - - Legal Debt Margin Calculation for Fiscal Year 2021:

Assessed Value
Debt limit (3.75% of assessed value)
Debt applicable to limit:

General obligation bonds
Legal debt margin
The Government Code of the State of California provides for a l egal debt limit of 15% of gross assessed valuation.

However, this provision was enacted when assessed valuation was based upon 25% of market value.

Effective with the 1981-82 fiscal year, each parcel is now asse ssed at 100% of market value (as of the most recent change in ownership for that parcel). Although the stat utory debt limit has not been amended by the State since this change, the percentage presented in the above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the state's establishment of the limit.

Source: Riverside County Assessor's Office
Statistical Table 13
150

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City of Hemet
Pledged-Revenue Coverage
Last Ten Fiscal Years
(in thousands)
Fiscal Year Less Net
Ended Net Tax Water Operating Available
June 30 Increment Principal Interest Coverage Revenue Expenses Revenue Principal Interest Coverage 2012 1,401 405 676 1.30 Water Revenue Bond paid off in Fiscal year ending 6/30/2009 2013 1,033 420 658 0.96 - - - - - - 2014 723 445 639 0.67 - - - - - - 2015 992 465 619 0.92 - - - - - - 2016 956 580 359 1.02 - - - - - - 2017 1,693 470 411 1.92 - - - - - - 2018 935 485 394 1.06 - - - - - - 2019 905 505 375 1.03 - - - - - - 2020 899 530 365 1.00 - - - - - - 2021 962 545 330 1.10 - - - - - - * 1999 and 2002 Tax Allocation Bonds are no longer reported as part of the primary government.

Source: City of Hemet Financial Statements
Debt Service Debt Service
Tax Allocation Bonds* Water Revenue Bonds
Statistical Table 14
151

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City of Hemet
Demographic and Economic Statistics
Last Ten Years
Personal Per Capita
Income (2) Personal Unemployment
Calendar Population (in thousands) Income Rate
Year (1) Local Area Zip Codes Local Area Zip Codes (3)
2012 80,089 1, 477,935 (4) 18,454 14.30% 2013 80,877 1, 475,417 (4) 18,243 12.80% 2014 81,537 1, 535,426 (4) 18,831 10.70% 2015 82,253 1, 484,696 (4) 18,050 9.70% 2016 80,070 1, 777,480 (4) 22,199 8.70% (3) 2017 81,868 1, 855,529 (4) 22,665 7.80% (3) 2018 83,166 2, 022,498 (4) 24,319 5.60% (3) 2019 84,754 2, 125,464 (4) 25,078 5.10% (3) 2020 85,175 - * - * 13.60% (3) 2021 84,525 - * - * 10.40% (3) *2020 and 2021 Personal Income Data is not yet available as of September 28, 2021.

Sources: 1 State Department of Finance (data shown is for City of Hemet) 2 Franchise Tax Board Adjusted Gross Income for zip codes 92543, 92544, 92545 3 California Labor Market Info, State and Local Info (data shown is for City of Hemet) 4 Franchise Tax Board Information is based upon calendar year. This statistical information became available beginning in 2005.

Statistical Table 15
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City of Hemet
Principal Employers
2021
Number of Percent of
Employer Employees Total Employment
Hemet Unified School District 4,216 15.70% Physicians For Healthy Hospitals 930 3.46% County of Riverside (Various service centers) 673 2.51% Walmart Supercenter 372 * 1.39%
Gosch Ford, Toyota, Hyundai & Inland Chevrolet 331 1.23% City of Hemet 273 1.02%
Forest River, Inc. 257 0.96%
Village Healthcare Retirement 200 0.74% Home Depot 200 0.74%
Manorcare Health Services 176 0.66%
McCrometer, Inc. 156 0.58%
American Medical Response 155 0.58%
Winco Foods 152 0.57%
Target 150 0.56%
Lowe's 134 0.50%
Stater Bros 100 0.37%
* Number of Employees for Employers are estimates from prior years Current year data not available.

Source: City of Hemet Telephone Survey
California Labor Market Info, Data Library
Numbers are approximate per their Human Resources Department Statistical Table 16
153

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City of Hemet
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Function 2012 2013 2014 2015 2016
General Government 30 30 29 31 33
Community Development 38 35 35 28 27
(Building, Planning, Engineering)
L i b r a r y 1 31 31 21 21 2
Police
Sworn 54 61 61 70 63
N o n - s w o r n 2 72 82 82 92 9
Fire
Firefighters and Officers 48 44 44 39 39
C i v i l i a n s 13322
Public Works
Water 16 19 18 18 21
Sewer/Storm Drain/Street Sweeping 44444
R e f u s e 21100
Streets, Parks, LLMD 33 32 33 31 31
Facility & Equipment Maintenance 11 11 11 11 10
Clean City Youth 54400
A d m i n i s t r a t i o n 75855
TOTAL 289 290 291 280 276
Source: City of Hemet Payroll Process
Report - Active Employees
Statistical Table 17
154

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City of Hemet
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Function
General Government
Community Development
(Building, Planning, Engineering)
Library
Police
Sworn
Non-sworn
Fire
Firefighters and Officers
Civilians
Public Works
Water
Sewer/Storm Drain/Street Sweeping
Refuse
Streets, Parks, LLMD
Facility & Equipment Maintenance
Clean City Youth
Administration
TOTAL
Source: City of Hemet Payroll Process
Report - Active Employees
2017 2018 2019 2020 2021
30 30 24 30 34
28 30 22 20 21
13 12 12 9 9
75 90 70 70 71
35 41 35 33 31
42 58 49 49 47
33322
20 19 14 15 15
8 9 6 10 16
00000
31 29 28 16 15
11 12 10 9 7
00000
46645
300 339 279 267 273
Statistical Table 17
155

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City of Hemet
Operating Indicators
by Function
Last Ten Fiscal Years
Function: 2012 2013 2014 2015 2016
Police
Calls for Service (1) 44,508 45,507 70,599 25,000 52,346 * Arrests (1) 3,860 2,468 3,222 2,109 3,433 * Sworn Officer's per 1000 population 0.87 0.87 0.86 0.85 0.87 * Fire
Calls for Service (1) 12,850 11,922 13,613 15,693 12,672 * Fire/Explosion (included in total above) 228 224 254 286 255 * Medical Aid (included in total above) 10,802 10,064 11,383 15,407 10,816 * Community Development
Permits: Single Family + Mobile set up 21 93 127 120 80 Conditional Use Permits applied/approved 7/4 8/4 9/2 9/11 13/6 * Site Development Reviews applied/approved 3/1 9/7 5/4 5/4 7/4 * Librar
y
Number of items checked out 428,601 381,047 360,792 451,956 430,614 * Number of Cardholders 112,000 128,209 133,366 138,244 110,629 * Total items in collection 106,211 92,680 104,977 94,434 98,114 * Simpson Senior Center
Citizens served through:

Simpson Center N/A N/A N/A N/A N/A
Lunch Program N/A N/A N/A N/A N/A
Prime of Life N/A N/A N/A N/A N/A
Public Works
Trees trimmed 2,117 2,400 1,300 ** 1,000 1,800 Poured Sidewalk (sq ft) 164,920 178,742 70,190 100,000 12,000 Asphalt remove and replace (sq ft) 66,234 73,266 1,358,833 1,000,000 158,000 Striping painted (linear ft) 1,056,000 N/A 1,000,000 ** N/A 850,000 Equipment CHP 90 day inspections/maint N/A N/A 116 112 124 Equipment light duty preventative maint N/A N/A 858 864 766 Buildings maintained (sq ft) 285,907 285,907 285,907 285,907 285,907 Miscellaneous service requests 4,753 4,800 1,500 ** 2,789 3,893 * Refuse collected:

Commercial tons 7,052 - - - - Residential tons 12,915 - - - - Roll-off tons 3,541 - - - - Green Waste tons 2,988 - - - - Commingled Recyclable tons 912 - - - - Cardboard tons 619 - - - - Water
Number of active accounts 9,112
9,214 9,075 7,761 9,304 Water introduced into the System (acre ft) 4,484 3,953 4,597 5,262 3,539 1 acre foot=325.851 gallons
* These numbers are estimated from historical data. Data was no t available. ** These numbers are estimated. The estimates for FY13/14 are due to a change in software used to track Service Orders in var ious Public Wor In Fiscal Year 09/10, the City contracted with YMCA and most currently Valley Wide Recreation to run the Simpson Center and al l services assoc ***Water introduced into the System for calendar year is throug h October 2020.

N/A is data that was not available
Source: Various departments within City of Hemet
Statistical Table 18
156

14.A

City of Hemet
Operating Indicators
by Function
Last Ten Fiscal Years
Function: 2017 2018 2019 2020 2021
Police
Calls for Service (1) 79,101 * 81,566 82,298 82,027 78,286 Arrests (1) 2,593 * 3,339 4,357 2,637 3,077 Sworn Officer's per 1000 population 0.86 * 0.84 0.83 0.82 0.83 Fire
Calls for Service (1) 17,946 * 16,918 17,976 17,656 17,666 Fire/Explosion (included in total above) 761 * 333 557 596 517 Medical Aid (included in total above) 13,867 * 13,958 14,659 14,317 14,159 Community Development
Permits: Single Family + Mobile set up 2 62 55 97 246 Conditional Use Permits applied/approved 6/6 * 6/5 13/11 8/4 14/7 Site Development Reviews applied/approved 3/3 * 7/10 6/3 11/6 23/11 Librar
y
Number of items checked out 680,326 * 447,775 532,834 481,709 99,018 Number of Cardholders 149,965 * 152,164 153,527 145,736 116,189 Total items in collection 101,451 * 90,082 105,498 519,774 790,591 Simpson Senior Center
Citizens served through:

Simpson Center N/A N/A N/A N/A N/A
Lunch Program N/A N/A N/A N/A N/A
Prime of Life N/A N/A N/A N/A N/A
Public Works
Trees trimmed 1,750 1,750 * 1,600 1,595 1,649 Poured Sidewalk (sq ft) 38,050 55,000 * 26,283 72,150 17,000 Asphalt remove and replace (sq ft) N/A N/A 80,882 * 1,265,000 695,246 Striping painted (linear ft) N/A N/A - - 558,876 Equipment CHP 90 day inspections/maint 124 128 112 124 281 Equipment light duty preventative maint 811 897 774 714 918 Buildings maintained (sq ft) 285,907 285,907 285,907 285,907 285,907 Miscellaneous service requests 1,290 * 1,318 1,459 1,600 1,536 Refuse collected:

Commercial tons - - - - - Residential tons - - - - - Roll-off tons - - - - - Green Waste tons - - - - - Commingled Recyclable tons - - - - - Cardboard tons - - - - - Wat
er
Number of active accounts 9,317 9,226 9,171 9,171 9,815 Water introduced into the System (acre ft) 3,784 3,847 3,512 3,195 *** 3,374 1 acre foot=325.851 gallons
* These numbers are estimated from historical data. Data was no t available. ** These numbers are estimated. The estimates for FY13/14 are due to a change in software used to track Service Orders in var ious Public W In Fiscal Year 09/10, the City contracted with YMCA and most currently Valley Wide Recreation to run the Simpson Center and al l services as ***Water introduced into the System for calendar year is throug h October 2020.

N/A is data that was not available
Source: Various departments within City of Hemet
Statistical Table 18
157

14.A

City of Hemet
Capital Asset Statistics
by Function
Last Ten Fiscal Years
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police Stations 1 1 1 1 1 1 1 1 1 1 Fire Stations 4 4 4 5 5 5 5 5 5 5 Recreation and Culture:

Number of parks 10 10 10 12 12 12 12 12 12 12 Number of libraries 1 1 1 1 1 1 1 1 1 1 Number of volumes 106,211 92,680 104,977 111,149 88,756 80,115 80,115 80,115 85,438 92,037 Public Works:

Area of City (square miles) 26 26 26 28 28 28 28 28 28 29 Miles of Streets 360 360 360 360 360 360 360 360 360 360 Number of Street lights 3,600 3,600 3,600 3,600 3,600 5,479 5,479 5,479 4,249 4,249 Number of water accounts 9,112 9,214 9,075 7,760 9,304 9,317 9,226 9,171 9,171 9,815 M
iles of water mains 120 120 120 120 120 130 130 130 132 132 Number of vehicles (city wide) 257 238 227 314 320 314 337 351 354 347 N/A = not available
Source: Various City Departments
Statistical Table 19
158

14.A

City of Hemet
Water, Refuse and Sewer Rates
Last Ten Years
Effective 7/1/2012 7/1/2013 7/1/2014 7/1/2015 7/1/2016 7/1/2017 7/1/2018 7/1/2019 7/1/2020 7/1/2021 Bimonthly Bimonthly Bimonthly Bimonthly Monthly Monthly Monthly Monthly Monthly Monthly Water
Low Water Usage Rates
0-1000 CF 56.00 $ 56.00 $ 56.00 $ 56.00 $ N/A N/A N/A N/A N/A N/A Normal Water Usage Rates
Base Water Rates
5/8" Meter 42.28 42.28 42.28 42.28 24.95 26.25 27.55 30.15 30.15 30.15 3/4" Meter 45.58 45.58 45.58 45.58 27.26 28.87 30.49 33.81 33.81 33.81 1" Meter 54.58 54.58 54.58 54.58 32.83 34.86 36.93 41.16 41.16 41.16 2" Meter 141.50 141.50 141.50 141.50 81.02 85.25 89.47 97.91 97.91 97.91 Consumption Water Rates per 100 CF
0-600 CF 2.30 2.30 2.30 2.30 6.25 4.41 4.54 4.79 4.79 4.79 '601-1200 CF 2.50 2.50 2.50 2.50 6.25 4.41 4.54 4.79 4.79 4.79 '1201-over CF 2.88 2.88 2.88 2.88 6.25 4.41 4.54 4.79 4.79 4.79 Refuse
Standard cart (60 gallon) 30.70 - - - - - - - - -

Large cart (90 gallon) 36.50 - - - - - - - - - Sewer
City sewer and storm drain 15.04 15.04 15.04 15.04 10.30 10.80 11.30 11.30 11.30 11.30 The City of Hemet has a Franchise Agreement in place with CR&R for Refuse services. The City stopped providing Refuse services on 11/30/2011.

Source: City of Hemet Water Department
Statistical Table 20
159

14.A

City of Hemet
Water Sold by Type of Customer
Last Ten Years
(in 100 Cubid Feet)
2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021*
Type of Customer
Single Family Residential 807,603 787,091 636,811 639,159 734,462 619,717 631,454 617,295 566,067 587,959 Multi-Family Residential 551,677 522,196 491,472 436,877 428,529 458,262 467,488 450,826 404,052 419,053 Commercial/Institutional 475,449 328,247 454,675 351,109 375,643 529,217 397,603 342,816 303,233 339,598 Landscape Irrigation 230,049 264,334 131,711 114,399 109,508 82,723 116,710 118,988 118,251 123,084 Total 2,064,778 1, 901,868 1, 714,669 1, 541,545 1, 648,142 1, 689,919 1, 613,256 1, 529,926 1, 391,602 1, 469,694 Source: City of Hemet Water Department
*2020 and 2021 data provided is through October
Cal
endar Year
Statistical Table 21
160

14.A

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 22 2022
Department: Public Works
Submitted by: Christopher Lopez, City Manager
Charles Russell, Public Works Operations Manager;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

A Resolution of the City Council of the City of Hemet, California, Authorizing the Submission of the SB1383 Local Assistance Grant Application to Cal Recycle in the amount of $111,882.00 and Authorize the City Manager to Execute all Related Documents Necessary to Obtain the Grant

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, authorizing the submission of the SB1383 Local Assistance Grant Application to Cal Recycle in the amount of $111,882.00 and authorize the City Manager to execute all related documents necessary to obtain the grant.

BACKGROUND:

The Department of Resources Recycling and Recovery (CalRecycle) offers the SB 1383 Local Assistance Gra nt Program pursuant to Chapter 395, Statutes of 2016. This non -competitive grant program will provide one -time funding to local jurisdictions to assist with the implementation of regulatory requirements associated with SB 1383. This grant will allow the C ity to expand its capacity to implement the requirements set forth in SB 1383. The grant allows the following activities:

• Capacity Planning
• Collection
• Edible Food Recovery
• Education and outreach (includes organic waste & edible food recovery) • Enforcement and Inspection
• Program Evaluation/Gap Analysis
• Procurement Requirements (using recycled organic products – compost, mulch, electricity, and/or renewable gas and recycled paper and paper products) • Record Keeping

ANALYSIS:

15.A

SB 1383 requires the City to implement a variety of mandated activities within the City in order to comply with the requirements set forth in the State law. On November 9, 2021, the City adopted Ordinance 1986 which amended Chapter 62 of the Hemet Municipal Code to incorporate the State mandated requirements of SB1383, including authorizing enforcement actions for violations. The Ordinance added various mandated elements including the requirement that all commercial and residential customers receive the required org anics waste collection program as part of the required three -bin program.

As part of the State requirements, the City is required to conduct educational programs to outreach to the community, as well as perform mandatory and documented inspections of b usinesses and residential accounts in order to ensure that each customer is complying with the separation requirements of the program. This grant will be used to assist the City in these two areas.

DISCUSSION:

The City of Hemet intends to utilize the grant funds to perform two major efforts:

First, the City intends to utilize the funds to supplement the education and outreach efforts of the City's franchise hauler, by expanding outreach to the Hemet Unified School District. The City intends to develop an outreach program that targets the 4th through 6th-grade school populations and to combine that with the City's other educational outreach programs, specifically, its water conservation program.

Secondly, the City intends to expand the inspection programs and focus on the commercial sector.

Under the City's current NPDES program, various commercial and industrial businesses are required to be inspected based on a high (once per fiscal year), medium (once every two years), and low (once every five years) priority schedule in order to ensure compliance with the NPDES program. The City proposes to include the inspection for SB1383 as an element of the NPDES program. In addition, the City will expand t he inspections to include those businesses that may not be subject to the NPDES program currently. At this time, the City has 600 commercial accounts that are subject to the MOR/MCR programs. We expect that this will expand to approximately 1000 businesses . The overlap of both NPDES and SB1383 is projected to be approximately 400 businesses. Funds for the NPDES/SB 1383 inspections are generated through the City's User Fee for NPDES inspections and represent a small incremental service addition to inspect fo r the SB1383 requirements. This grant will allow the City to perform these inspections through a contractor to the remaining 600 businesses.

Finally, the City intends to explore additional capacity program outreach, looking for opportunities to align this grant with the City's Homeless outreach to ensure that the maximum amount of edible food can be redirected into food banks and homeless programs.

PREVIOUS COUNCIL ACTION:

November 9, 2021 - First Reading of Ordinance 1986 revising Section 62 of the Hemet Municipal Code to incorporate the State Mandated Requirements of SB 1383.

December 14, 2021 - Second Reading of Ordinance 1986.

STRATEGIC PLAN INTEGRATION:

15.A

GOAL TWO: ECONOMIC OPPORTUNITY
To ensure that Hemet is a hub, with access to quality jobs, shopping options, and a varied and sustained tax base.

Objective 2: Provide resources for new businesses to enhance the customer service experience.

This grant will allow the City to outreach to the business community in order to assist businesses in proactively complying with the requirements of SB1383 and the City's Ordinance.

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 1: Operate in a financially sustainable manner.

This grant will allow the City to add the additional inspection requirements to an existing inspection program, thus reducing the number of City delivered inspections to the business community.

FISCAL IMPACT:

There is no impact to the General Fund for this Grant. The City currently has a fee for NPDES Inspections and the additional incremental effort to add the SB1383 to the existing NPDES inspections will not result in a significant change to the fee costs. However, the additional 600 businesses that are not currently subject to the NPDES program, those costs will be covered by the grant through FY2024.

ALTERNATIVE(S):

Provide guidance to staff as to alternatives.

REVIEWED BY LEGAL:

☐ Staff report ☒ Resolution
☐ Ordinance ☐ Agreement

ATTACHMENT(S):

Attachment 1: Resolution for Submission SB1383 Grant - 2-7-2022

15.A

CITY COUNCIL RESOLUTION BILL NO. 2022-____
1 2
3 CITY OF HEMET 4
Hemet, California 5
RESOLUTION NO. 22-____ 6
7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 8
HEMET, CALIFORNIA AUTHORIZING THE SUBMISSION OF THE 9
SB1383 LOCAL ASSISTANCE GRANT IN THE AMOUNT OF 10
$111,882, AND AUTHORIZING THE CITY MANAGER TO 11
EXECUTE ALL RELATED DOCUMENTS NECESSARY TO 12
OBTAIN THE GRANT. 13
14 The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) 15 does resolve as follows: 16
17 WHEREAS, The City of Hemet, approved Ordinance 1986 amending Chapter 62 of 18 the Hemet Municipal Code to incorporate the State mandated requirements of Senate Bill 19 1383 on November 9, 2021, held a second reading on December 14, 2021 and that said 20 Ordinance became effective on or about January 14, 2022, and, 21 22 WHEREAS, The Department of Resources Recycling and Recovery (CalRecycle) 23 offers the SB 1383 Local Assistance Grant Program pursuant to Chapter 395, Statutes of 24 2016; and, 25
26 WHEREAS, This non-competitive grant program will provide one -time funding to 27 local jurisdictions to assist with the implementation of regulation requirements associated 28 with SB 1383; and 29
30 WHEREAS, The City is eligible for the receipt of grant funds in the amount of 31 $111,882 which may be used to provide implementation support to the City in the areas of 32 business inspections and public education; and 33
34 WHEREAS, The Grant Application was submitted to CalRecycle on February 1, 35 2022 under a two-phase grant application, subject to adoption of a resolution of the City 36 authorizing and accepting said grant and that said resolution shall be submitted no later than 37 March 1, 2022 ; and 38
39 WHEREAS, The Grant Application, if approved by the State will provide funding for 40 a period of April 1, 2022 through April 2, 2024. 41
42 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET DOES HEREBY 43 FIND AND RESOLVE that the City Council: 44
45

15.A

CITY COUNCIL RESOLUTION BILL NO. 2022-____

1. Authorize the submission of the SB1383 Local Assistance Grant application in 1 the amount of $111,882 for public education and business inspections; and, 2 3 2. Authorize the City Manager to execute all related documents and agreements 4 necessary to receive the grant. 5
6 7
8 9
10 PASSED, APPROVED, AND ADOPTED this 22nd day of February, 2022. 11 12 13
14 15
Malcolm Lilienthal, Mayor 16
17 18
19 ATTEST: APPROVED AS TO FORM: 20
21 22
23 John Maier, City Clerk Steven Graham 24
Interim City Attorney 25
26 27

15.A

CITY COUNCIL RESOLUTION BILL NO. 2022-____
1 State of California ) 2
County of Riverside ) 3
City of Hemet ) 4
5 I, John Maier, City Clerk of the City of Hemet, do her eby certify that the foregoing 6 resolution is the actual resolution adopted by the City Council of the City of Hemet 7 and was passed at a regular meet ing of the City Council on the 22nd day of 8 February, 2022 by the following vote: 9
10 11
AYES: 12
NOES: 13
ABSTAIN: 14
ABSENT: 15
16 17
18 19
John Maier, City Clerk 20
21 22
23 24
25 26
27 28
29

15.A

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 22 2022
Department: Public Works
Submitted by: Christopher Lopez, City Manager
Charles Russell, Public Works Operations Manager;

☐ Receive and File ☐ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

A Resolution of the City Council of the City of Hemet, California, Authorizing the Submission of the SB619 Notice of Intent to Comply with SB1383 Requirements and Authorizing the City Manager to Execute all Related Documents Necessary to Support the Submis sion of the Notice to CalRecycle by March 1, 2022

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, Authorizing the Submission of the SB619 Notice of Intent to Comply with SB1383 Requirements and Authorizing the City Manager to Execute all Related Documents Necessary to Support the Submission of the Notice to CalRecycles by March 1, 2022.

BACKGROUND:

In September 2016, Governor Brown signed into law SB 1383 (Lara, Chapter 395, Statutes of 2016), establishing methane emissions reduction targets in a statewide effort to reduce emissions of short - lived climate pollutants (SLCP) in various sectors of California's economy. The new law codifies the California Air Resources Board's Short -Lived Climate Pollutant Reduction Strategy, established pursuant to SB 605 (Lara, Chapter 523, Statutes of 2014), to achieve reductions in the statewide emissions of short-lived climate pollutants. Actions to reduce short-lived climate pollutants are essential to address the many impacts of climate change on human health, especially in California's most at-risk communities, and on the environment.

As it pertains to CalRecycle, SB 1383 establishes targets to achieve a 50 percent reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 and a 75 percent reduction by 2025. The law grants CalRecycle the regulatory authority required to achieve the organic waste disposal reduction targets and establishes an additional target that not less than 20 percent of currently disposed of edible food is recovered for human consumption by 2025.

15.B

Under Chapter 12 of Division 30, section 18981.2 of the Public Resources Code states "By January 1, 2022, a jurisdiction shall adopt enforceable ordinance(2), or similarly enforceable mechanisms that are consistent with the requirements of this chapter, to mandate that organic waste generators, haulers, and other entities subject to the requirements of this chapter are subject to the jurisdiction's authority comply with the requirements of this chapter."

At the November 9, 2021, regular City Council meeting, the Council held a public hearing for Ordinance 1986 which amended Section 62 of the Hemet Municipal Code in order to incorporate the requirements of SB1383 and subsequently approved the first reading of the Ordinance; a second reading was held on December 14th, and the ordinance became effective on or about January 14, 2022.

ANALYSIS:

Jurisdictions are required to implement SB 1383 starting on January 1, 2022. As jurisdictions are preparing to implement the law, many local governments are facing challenges due to the COVID -19 pandemic. In response, Governor Newsom signed SB 619 (Laird, Chapter 508, Statutes of 2021) into law to support local governments as they design and implement successful organi c waste recycling programs throughout the state. The law authorizes CalRecycle to waive civil penalties if a jurisdiction submits a Notification of Intent to Comply for some or all of the regulatory requirements and successfully implements a plan to correct their violations.

While the City, in cooperation with CR&R, is working towards implementing the various requirements of SB1383 through the City's ordinance, as a result of the Covid -Omnicon virus resurgence, the City has become aware of two impacts fr om the resurgence that may ultimately impact the City's ability to fully implement the SB1383 requirements.

The first has been the ongoing delays and disruptions to the nation's supply chains, which have resulted in delays in the acquisition of equipment necessary to implement the SB1383 program. In discussion with CR&R, they have indicated that there have been delays in the procurement of the necessary bins needed to fully implement the program at the commercial level and that additional delays in the delivery of solid waste collection vehicles may also delay their ability to fully implement the program timely. It is important to state that these supply chain issues are outside of the control of both the City and CR&R yet may have an adverse effect of d elaying the implementation of the program and thus subject the City to Administrative penalties.

The second impact has been on worker availability. During the first wave of Covid in the winter and spring of 2021, the City saw multiple delays in the se rvicing of existing accounts, due to a shortage of solid waste collection operators within CR&R who were infected with COVID. These driver shortages resulted in both residential and commercial service interruptions that included bins and carts not being collected timely. CR&R was complying with all of the State and Federal COVID requirements and thus experienced similar staffing shortages as other industries and services, including the City, saw as well.

During this second wave of Covid-Omnicom, CR&R again has experienced the loss of available staffing due to COVID, resulting in delays in collection services. CR&R has implemented several notification programs, including the use of social media as well as phone call-backs to customers notifying them of the service delays. Again, CR&R followed all State and Federal COVID guidelines in effect in order to be in compliance with appropriate public health requirements as related to worker safety.

DISCUSSION:

15.B

During these two periods, the City recognized that these impacts, although outside of the control of both the City and CR&R, may have a deleterious impact on both parties' ability to successfully implement the requirements of SB 1383 in a timely manner. U nder the State Regulations enforcing SB1383, the City is solely responsible for enforcement of its ordinance, and as such, also responsible for any administrative penalties assessed by the State for failure to meet the requirements of state regulations under SB1383.

Under SB. 619, a jurisdiction may submit a notification of intent to comply if it is facing continuing violations of the Short -lived Climate Pollutants: Organic Waste Reductions requirements in Title 14 California Code of Regulations (14 CCR ). The written notification of intent to comply, adopted by resolution of the jurisdiction’s governing body, shall be sent to CalRecycle no later than March 1, 2022.

A jurisdiction shall, at minimum, include the following in its notification:

1. A description, with specificity, of the continuing violations.

2. A detailed explanation of the reasons, supported by documentation, why the local jurisdiction is unable to comply.

3. A description of the impacts of the COVID-19 pandemic on compliance.

4. A description of the proposed actions the local jurisdiction will take to remedy the violations within the timelines established in 14 CCR section 18996.2 with a proposed schedule for doing so. The proposed actions shall be tailored to remedy the violations in a timely manner.

Upon approval by CalRecycle of a jurisdiction’s notification and implementation of the intent to comply, a jurisdiction may be eligible for both of the following:

1. Administrative civil penalty relief for the 2022 calendar year pursuant to PRC section 42652.5(d).

2. A corrective action plan pursuant to 14 CCR section 18996.2.CalRecycle may address through a corrective action plan any violations disclosed in a jurisdiction’s notification that will take more than 180 days to correct. In this situation, the proposed actions and schedule in the jurisdiction’s approved notification will be in effect until a corrective action plan is issued.

While the City and CR&R are confident that all elements of the SB 1383 program wil l be implemented timely, staff believes that adopting an SB 618 Notice of Intent to Comply is prudent and provides the City with relief from any potential administrative penalties through 2022.

PREVIOUS COUNCIL ACTION:

November 9, 2021 - First Reading of Ordinance 1986 revising Section 62 of the Hemet Municipal Code to incorporate the State Mandated Requirements of SB 1383.

December 14, 2021 - Second Reading of Ordinance 1986.

STRATEGIC PLAN INTEGRATION:

15.B

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 1: Operate in a financially sustainable manner.

Approval of the attached resolution and Notice of Intent to Comply would provide some relief of potential administrative penalties if levied by the State in the event that the City and/or CR&R were unable to comply with all elements of SB 1383 through 2022.

FISCAL IMPACT:

None identified. Failure to implement all aspects of SB 1383 as specified by the State regulations may result in the levying of administrative penalties to the City.

ALTERNATIVE(S):

The City Council could elect to not submit this Notice of Intent to Comply. In the event that the franchise hauler is unable to obtain the necessary collection trucks needed to expand the program and to hire the additional staffing by the required deadlines, the City may be subject to administrative enforcement actions from CalRecycles.

REVIEWED BY LEGAL:

☒ Staff report ☒ Resolution
☐ Ordinance ☐ Agreement

ATTACHMENT(S):

Resolution for Notice of Intent to comply - 2-15-2022
EXHIBIT A - Hemet - Notice of Intent to Comply - 2-22-2022

15.B

CITY COUNCIL RESOLUTION BILL NO. 2022-____
1 2
3 CITY OF HEMET 4
Hemet, California 5
RESOLUTION NO. 22-____ 6
7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 8
HEMET, CALIFORNIA AUTHORIZING THE SUBMISSION OF THE 9
SB619 NOTICE OF INTENT TO COMPLY WITH SB1383 10
REQUIREMENTS, AND AUTHORIZING THE CITY MANAGER TO 11
EXECUTE ALL RELATED DOCUMENTS NECESSARY TO 12
SUPPORT THE SUBMISSION OF THE NOTICE TO CAL 13
RECYCLES BY MARCH 1, 2022. 14
15 The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) 16 does resolve as follows: 17
18 WHEREAS, The City of Hemet, approved Ordinance 1986 amending Chapter 62 of 19 the Hemet Municipal Code to incorporate the State mandated requirements of Senate Bill 20 1383 on November 9, 2021, held a second reading on December 14, 2021 and that said 21 Ordinance became effective on or about January 14, 2022, and, 22 23 WHEREAS, CalRecycle, in consultation with the California Air Resources Board, has 24 adopted regulatory requirements (Regulations), consistent with the mandate of Senate Bill 25 1383 (Lara, 2016), that are designed to achieve the organic w aste reduction goals 26 established in Section 39730.6 of the Health and Safety Code through a 50 percent 27 reduction in the level of the statewide disposal of organic waste from the 2014 level by 2020 28 and a 75 percent reduction in the level of the statewide disposal of organic waste from the 29 2014 level by 2025; and, 30
31 WHEREAS, The City is a local jurisdiction required to comply with the Regulations; 32 and 33
34 WHEREAS, The City is or expects to be facing continuing violations of the 35 Regulations commencing during the 2022 calendar year due to on-going issues relating to 36 supply chain disruptions that are resulting in delays to the manufacture and delivery to the 37 City’s franchise hauler of additional collection trucks as well as shortages of trained 38 collection staff necessary to fully implement the SB1383 program elements; and 39 40 WHEREAS, Senate Bill 619 (Laird, 2021), through amendments to Section 42652.5 41 of the Public Resources Code (Statute), created a mechanism called a Notification of Intent 42 to Comply through which t he City may secure administrative civil penalty relief from any 43 continuing violations of the Regulations for the 2022 calendar year and may be eligible for 44 a broader and longer-term regulatory compliance path, including suspended administrative 45 civil penalties, through a corrective action plan; and 46

15.B

CITY COUNCIL RESOLUTION BILL NO. 2022-____
1 WHEREAS, the City is a local jurisdiction authorized by the Statute to submit a 2 Notification of Intent to Comply for CalRecycle approval by March 1, 2022, and has prepared 3 the necessary supporting documents describing the on-going challenge that the City and 4 franchise hauler is facing that are outside of the control of either party; and, 5 6 WHEREAS, CalRecycle shall approve a Notification of Intent to Comply that is duly 7 adopted by the City by formal written resolution and meets the requirements of the Statute. 8 9 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET DOES HEREBY 10 FIND AND RESOLVE that the City Council: 11
12 1. The City by and through its City Council hereby formally adopts the Notification 13 of Intent to Comply attached as Exhibit “A.”; and, 14
15 2. The City hereby authorizes and directs t he City Manager, on its behalf, to 16 submit the Notification of Intent to Comply attached as Exhibit “A” to CalRecycle 17 for approval pursuant to the Statute; and, 18
19 3. By submitting the Notification of Intent to Comply pursuant to and subject to the 20 above referenced requirements, the C ity represents and certifies that it will 21 implement the proposed actions to remedy the violations according to t he 22 proposed schedule as approved by CalRecycle and in accordance with the 23 Statute and Regulations; and, 24
25 4. The City by and through its C ity Manager also acknowledges and agrees to 26 comply with any maximum compliance deadline in any corrective action plan 27 that CalRecycle, in its sole discretion, determines to be necessary and 28 appropriate under the circumstances for the correction of any violation(s) of the 29 Statute and Regulations identified in its Notification of Intent to Comply.. 30 31 32
33 34
35 PASSED, APPROVED, AND ADOPTED this 22nd day of February, 2022. 36 37 38
39 40
Malcolm Lilienthal, Mayor 41
42 43
44 45

15.B

CITY COUNCIL RESOLUTION BILL NO. 2022-____
ATTEST: APPROVED AS TO FORM: 1
2 3
4 John Maier, City Clerk Steven Graham 5
Interim City Attorney 6
7 8

15.B

CITY COUNCIL RESOLUTION BILL NO. 2022-____
1 State of California ) 2
County of Riverside ) 3
City of Hemet ) 4
5 I, John Maier, City Clerk of the City of Hemet, do her eby certify that the foregoing 6 resolution is the actual resolution adopted by the City Council of the City of Hemet 7 and was passed at a regular meeting of the City Council on the 22nd day of February, 8 2022 by the following vote: 9
10 11
AYES: 12
NOES: 13
ABSTAIN: 14
ABSENT: 15
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John Maier, City Clerk 20
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15.B

Notification of Intent to Comply
CalRecycle is providing this optional form as a convenience to assist jurisdictions (counties, cities, a county and city, or special districts providing solid waste collection services) for purposes of submitting a notification of intent to comply to CalRecycle [see Public Resources Code (PRC) section 42652.5(c)].

A jurisdiction may submit a notification of intent to comply if it is facing continuing violations of the Short-lived Climate Pollutants: Organic Waste Reductions requirements in Title 14 California Code of Regulations (14 CCR). The written notification of intent to comply, adopted by resolution of the jurisdiction’s governing body, shall be sent to CalRecycle no later than March 1, 2022, to [email protected].

A jurisdiction shall, at minimum, include the following in its notification:

1. A description, with specificity, of the continuing violations.

2. A detailed explanation of the reasons, supported by documentation, why the local jurisdiction is unable to comply.

3. A description of the impacts of the COVID-19 pandemic on compliance.

4. A description of the proposed actions the local jurisdiction will take to remedy the violations within the timelines established in 14 CCR section 18996.2 with a proposed schedule for doing so. The proposed actions shall be tailored to remedy the violations in a timely manner.

Upon approval by CalRecycle of a jurisdiction’s notification and implementation of the intent to comply, a jurisdiction may be eligible for both of the following:

1. Administrative civil penalty relief for the 2022 calendar year pursuant to PRC section 42652.5(d).

2. A corrective action plan pursuant to 14 CCR section 18996.2. a. CalRecycle may address through a corrective action plan any violations disclosed in a jurisdiction’s notification that will take more than 180 days to correct. In this situation, the proposed actions and schedule in the jurisdiction’s approved notification will be in effect until a corrective action plan is issued.

CalRecycle will respond in writing to a jurisdiction within 45 business days of receiving its notification with an approval, disapproval, request for additional information, or timeline for a decision on approval or disapproval. CalRecycle will include details about why a jurisdiction did not meet the requirements for a Notification of Intent to Comply when disapproving the jurisdiction’s notification.

15.B

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Please clearly print or type responses. Attach additional pages as necessary.

Jurisdiction Name: County:

Person Completing the Form:

First Name: Last Name:

Title:

Mailing Address:

City: Zip Code:

Email Address:

Phone Number:

1. Select using the check boxes below or write in the continuing violations for each applicable regulatory section. For each selection, please describe the specific violations related to the regulatory section.

Example:
☒ (B) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services i. Not implementing mandatory residential foodwaste collection for all residents. Note:

City already provides mandatory greenwaste collection to all residents ii. Not implementing mandatory commercial organics collection for all businesses under 2 cubic yards. Note: City already provides mandatory commercial organics collection to all businesses 2 cubic yard or more.

Disclaimer: The list of possible continuing violations below is not inclusive of all potential violations of the regulations.
(A) 14 CCR section 18984 Combined Organic Waste Collection Services. This requirement is not included since the requirements are further specified in sections 18984.1-18984.11. (B) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services (C) 14 CCR section 18984.2 Two-Container Organic Waste Collection Services (D) 14 CCR section 18984.3 Unsegregated Single Container Collection Services (E) 14 CCR section 18984.4 Recordkeeping Requirements for Compliance with Organic Waste Collection Services
(F) 14 CCR section 18984.5 Container Contamination Minimization (G) 14 CCR section 18984.6 Recordkeeping Requirements for Container Contamination Minimization
(H) 14 CCR section 18984.7 Container Color Requirements (I) 14 CCR section 18984.8 Container Labeling Requirements (J) 14 CCR section 18984.11 Waivers Granted by a Jurisdiction (K) 14 CCR section 18985.1. Organic Waste Recovery Education and Outreach. (L) 14 CCR section 18985.2. Edible Food Recovery Education and Outreach (M) 14 CCR section 18985.3. Recordkeeping Requirements for a Jurisdiction’s Compliance with Education and Outreach Requirements
(N) 14 CCR section 18988.1. Jurisdiction Approval of Haulers and Self-Haulers (O) 14 CCR section 18988.3. Self-haulers of Organic Waste (P) 14 CCR section 18988.4. Recordkeeping Requirements for Compliance with Jurisdiction Hauler Program
(Q) 14 CCR section 18989.1. CALGreen Building Codes
(R) 14 CCR section 18989.2 Model Water Efficient Landscape Ordinance

15.B

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(S) 14 CCR section 18991.1. Jurisdiction Edible Food Recovery Program (T) 14 CCR section 18991.2. Recordkeeping Requirements for Jurisdiction Edible Food Recovery Program
(U) 14 CCR section 18992.1. Organic Waste Recycling Capacity Planning (V) 14 CCR section 18992.2. Edible Food Recovery Capacity (W) 14 CCR section 18993.1. Recovered Organic Waste Product Procurement Target (X) 14 CCR section 18993.2. Recordkeeping Requirements for Recovered Organic Waste Procurement Target
(Y) 14 CCR section 18993.3. Recycled Content Paper Procurement Requirements (Z) 14 CCR section 18993.4. Recordkeeping Requirements for Recycled Content Paper Procurement
(AA) 14 CCR section 18994.2. Jurisdiction Annual Reporting Note: This requirement is not included since jurisdictions are still expected to report to CalRecycle.
(BB) 14 CCR section 18995.1. Jurisdiction Inspection Requirements Note: Section 18995.1(a)(1) should not be included because a jurisdiction should already be completing this action due to the requirements of PRC Chapter 12.9 (commencing with Section 42649.8)
(CC) 14 CCR section 18995.2. Implementation Record and Recordkeeping Requirements (DD) 14 CCR section 18995.3. Jurisdiction Investigation of Complaints of Alleged Violations Note: This requirement is not included since jurisdictions are still expected to investigate complaints.
(EE) 14 CCR section 18995.4. Enforcement by a Jurisdiction Use the check box(es) below to write in the continuing violations for any regulatory section(s) not reflected above and describe the specific violations related to the regulatory section.

Example:
☒ (1) (Type regulatory section number) (Type regulatory section title) i. Describe the specific violations related to the regulatory section (1)
(2)
(3)
(4)
(5)

15.B

------------------------------ ------------------------------ ------------------------------ ----------------------------

2. A detailed explanation of the reasons why the jurisdiction is unable to comply, supported by documentation, if applicable.

3. A description of the impacts of the COVID-19 pandemic on compliance.

4. Provide a description of the proposed actions the jurisdiction will take to remedy the violations with a proposed schedule for completing each action. The proposed actions shall be tailored to remedy the violations in a timely manner. See optional format below.

I hereby certify under penalty of perjury that the information provided herein is true and correct to the best of my knowledge.

Signature Printed Name Title Date

15.B

Description of the proposed actions with proposed schedules the jurisdiction will take to remedy the violations. The proposed actions shall be tailored to remedy the violations in a timely manner.

Regulatory Requirement and Description
Action Proposed Schedule
TASK 1: Date to be completed:

TASK 2: Date to be completed:

TASK 3: Date to be completed:

Regulatory Requirement and Description
Action Proposed Schedule
TASK 1: Date to be completed:

TASK 2: Date to be completed:

EXAMPLE
Regulatory Requirement: (B.i.) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services
Description: Not implementing mandatory residential foodwaste collection for all residents. Note:

City already provides mandatory greenwaste collection to all residents Action
TASK 1: Purchase two additional collection trucks and modify collection routes
TASK 2: The city will work with its hauler to find a facility to accept mixed organic waste.

Proposed Schedule
Date to be completed:
4/7/2022
Date to be completed:
4/14/2022
Regulatory Requirement: (B.ii.) 14 CCR section 18984.1 Three-Container Organic Waste Collection Services
Description: Not implementing mandatory commercial organics collection for all businesses under 2 cubic yards. Note: City already provides mandatory commercial organics collection to all businesses 2 cubic yard or more.

Action:

TASK 1: Purchase two additional collection trucks and modify collection routes
TASK 2: The city will work with its hauler to acquire and distribute appropriate containers to all commercial accounts. The city will obtain monthly reports from the hauler to monitor full distribution of carts.

Proposed Schedule
Date to be completed:
4/21/2022
Date to be completed:
4/28/2022

15.B

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 22 2022
Department: Police Department
Submitted by: Christopher Lopez, City Manager
Michael Arellano, Police Lieutenant;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

A Resolution of the City Council of the City of Hemet, California, Awarding the Purchase of Two (2) Fully Outfitted 2022, Ford Utility RWD for the Total Amount of $124,141.33 from National Auto Fleet Group Utilizing the Sourcewell Master Vehicle Contract# 091521-NAFG Competitively Solicited Purchasing Contract and Authorizing the City Manager to Execute the Agreement and Purchase Orders in Support of the Agreement

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, Awarding the Purchase of Two (2) Fully Outfitted 2022, Ford Utility RWD for the Total Amount of $124,141.33 from National Auto Fleet Group Utilizing the Sourcewell Master Vehicle Contract# 091521 -NAFG Competitively Solicited Purchasing Contract and Authorizing the City Manager to Execute the Agreement and Purchase Orders in Support of the Agreement.

BACKGROUND:

The Hemet Police Department has utilized Community Service Officers (CSO) for decades. This role is essential to the timely response to non -emergency calls for police service. CSO’s are primarily tasked with investigating past crimes, traffic collisions, and traffic control duties. Having CSO’s to help handle these calls keeps sworn officers available to respond to emergency calls for service and reduces response times.

Our Community Services Officers have always driven repurposed, fully marked black and white Police vehicles to perform their daily duties. Typically, these repurposed Pol ice vehicles have the highest mileage or are no longer “Pursuit Rated” as a result of collision or other mechanical defect.

Recently, to better align with industry standards, the decision was made to change these CSO vehicles from a traditional Police bl ack and white patrol vehicle to an all -white vehicle clearly marked as “Community Service Officer.” One of the drivers of this change was for safety of our CSOs. With a national increase of officer assaults, staff became concerned that non-sworn and unarmed employees

15.C

could be mistaken as a police officer. This type of mistaken identity could cause those employees to encounter dangerous situations they are not equipped or trained to handle.

In order to expedite the change and enhance safety to our CSOs, while also utilizing some of the existing and functional fully marked black and white Police vehicles, PD staff began to "wrap" vehicles to differentiate them from typical black and white police vehicles. This design “wrap” was accomplished by wrapping the black and white police vehicles in a white vinyl material to cover the standard Police markings. This method had the highest cost savings and was more efficient compared to re -painting the entire vehicle.

Even though the Department has repurposed many vehicles, all of our current CSO vehicles are Ford Crown Victoria’s with at least 15 years of age and with extremely high mileage. Ford discontinued the production of Crown Victoria’s in 201 1 and replacement parts are becoming difficult to acquire, thus requiring a broader solution.

ANALYSIS:

On June 22, 2021, the City Council approved the 2021/2022 budget which included the purchase of dedicated Community Service Officer vehicles made p ossible by Measure U funding. Although the Hemet Police Department continues to utilize repurposed Police patrol vehicles to meet the needs of the department and community, the current fleet of CSO vehicles are at the end of their useful life. The fact that these vehicles are still functioning is a direct reflection of the hard work and dedication of the City’s Fleet Maintenance Division. While the Police Department works closely with the Public Works Department fleet and vehicle maintenance staff to ensu re that our vehicles are well maintained and cared for, our options for vehicles to repurpose are limited. The need for these vehicles, however, is increasing.

These new vehicles will support our six Community Service Officers. Hemet Police CSO’s curren tly share three distinctly marked and dedicated CSO vehicles. Due to the limited number of CSO vehicles, there are times when CSO’s are required to drive black and white police vehicles during their shifts.

The Department is currently recruiting for an additional six CSO's so staff is recommending this action to address the existing need. While the purchase of these two dedicated CSO vehicles will assist in curing the immediate need, we do expect that additional CSO vehicles will be needed in the future when the position is fully staffed.

The vehicles included in this purchase are not only different in their color scheme, but they are also rear-wheel drive and do not include additional police interceptor upgrades. This reduces the per vehicle price by approximately $10,000.

Police vehicles are surplussed when they reach the end of useful life, and all of our CSO vehicles are at that point now. With the purchase of these two vehicles, we will remove two of the current, repurposed CSO vehicles from the police vehicle fleet to offset the two CSO vehicles in this purchase.

STRATEGIC PLAN INTEGRATION:

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GOAL ONE: QUALITY OF LIFE:

To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.

Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.

Objective 3: Increase Public Safety visibility and response.

GOAL THREE: COMMUNITY ENGAGEMENT
To connect and participate in a constant dialogue between members of the community, City staff, and elected officials to promote togetherness and positivity.

Objective 3: Increase the community's pride within the City.

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 1: Operate in a financially sustainable manner.

Objective 4: Increase employee retention by training and creating a positive workplace.

FISCAL IMPACT:

The total cost of this purchase is $124,141.33. The breakdown and funding source are listed below:

(2) ‘2022’ Ford Explorer RWD Utility Vehicle w/CSO upfit @ $49,759.50/ea. $ 99,518.95 (2) Community Service Officer graphics @ $675 / ea. and tax $ 1,468.13 (2) Panasonic Toughbook Tablet @ $2,890.00/ea. and tax and freight $ 6,293.75 (2) Harris Utility Quad Band Mobile Radios @ $7,722.09/ea. with tax & shipping $ 16,860.50

TOTAL COST: $ 124,141.33

Funding Source:
2021/2022 Budget Account Number 115-3005-5400 = $ 124,141.33

ALTERNATIVE(S):

The City Council may choose not to approve this purchase. If the Council chooses to not approve this purchase, the maintenance costs will continue to increase and the overall structural integrity of those vehicles will continue to diminish. Our Community Service Officers drive Ford Crown Victoria’s and parts for this model car are no longer being manufactured and according to our city fleet mechanics, it is continuing to become more difficult to locate these parts for repairs

ATTACHMENT(S):

Attachment 1: Resolution (2) 2022 Ford RWD Utility Vehicles Attachment 2: All quotes for 2 CSO vehicles

15.C

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CITY COUNCIL RESOLUTION NO. 2022-XXX

CITY OF HEMET
Hemet, California
RESOLUTION NO. 2022-XXX

A Resolution Awarding the Purchase of Two (2) Fully-
Outfitted 2022, Ford Utility RWD for the total amount
of $ 124,141.33 from National Auto Fleet Group
utilizing the Sourcewell master vehicle contract#
091521-NAFG competitively solicited purchasing
contract, and Authorizing the City Manager to Execute
the Agreement and Purchase Orders in Support of the
Agreement.

The City Council of the City of Hemet, California (hereafter referred to as the “ City Council”) does resolve as follows:

WHEREAS, The City of Hemet Police Department has been deploying Community Service Officers in fully outfitted, marked black and white Police patrol vehicles.

WHEREAS, to align with industry standards and provide bet ter safety to our Community Service Officers, the department has decided to change the paint scheme from a traditional black and white “Police” vehicle, to an all -white vehicle , clearly marked with “Community Service Officer.”
WHEREAS, the City of Hemet P olice Department assessed the different companies conducting Police vehicle upfitting’s and after intense research, have has elected to go with American Emergency Products (AEP) for the upfitting of these new 2022, Ford Utility RWD vehicles.

WHEREAS, the City of Hemet Police Department requested and received a quote from National Auto Fleet Group utilizing the Sourcewell master vehicle contract #091521-NAFG competitively solicited purchasing contract.

WHEREAS, staff requests the City Council approve the purchase of two (2) Fully Outfitted 2022, Ford Utility RWD vehicles.

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CITY COUNCIL RESOLUTION NO. 2022-XXX
WHEREAS, the City of Hemet Police Department received a quote from Hi - Desert Communications for two (2) Harris Unit Radios to be installed on the Ford RWD Utility vehicles competitively bi d NASPO Contract (#06913), and a quotation from CDCE Incorporated for the purchase of two (2) Panasonic Toughbook Tablets WHEREAS, staff requests the City Council to authorize the City Manager to execute the Agreement and purchase orders in support of the Agreement.

NOW, THERFORE, THE CITY COUNCIL OF THE CITY OF HEMET DOES HEREBY FIND AND RESOLVE: that the City Council approve the purchase of two (2) Fully Outfitted 2022 , Ford Utility RWD Non -Hybrids, two (2) Harris Unit Radios from Hi-Desert Communications, two (2) Panasonic Toughbook Tablets from CDCE Incorporated, two (2) full-sets of graphics from Rapid Auto Glass & Tint, and authorize the City Manager to execute the Agreement, and purchase orders in support of the Agreement.

PASSED, APPROVED AND ADOPTED this ___ day of ________ 2022.

____________________________
Malcolm Lilienthal, Mayor

ATTEST:

_____________________________
John Maier, City Clerk

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CITY COUNCIL RESOLUTION NO. 2022-XXX
State of California )
County of Riverside )
City of Hemet )

I, John Maier, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the ___ day of ________, 2022, and was passed by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

_________________________________
John Maier, City Clerk

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EXHIBIT A

15.C

%NationalAutgwl?g?tGroup
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December27,2021CorporalMattGomezCityofHemetPoliceDepartment450ELathamAveHemet,Ca92223DeliveryViaEmailDearCorporalGomez,Inresponsetoyourinquiry,wearepleasedtosubmitthefollowingforyourconsideration:NationalAutoFleetGroupwillsell,serviceanddeliveratHemet,new/unused2022FordExplorer(K7B)BaseRWD(RetailUnit)respondingtoyourrequirementwiththeattachedspeci?cationsfor$29,307.00plusUp?t,StateSalesTax,and$8.75tiretax(non-taxable).ThesevehiclesareavailableundertheSourcewell(FormerlyKnownasNJPA)mastervehiclecontract#091521-NAFG.o?glgg"SellingPrices;r:it:;sExt°"':§;‘""5TotalSavings2022FordExplorerBaseRWD34,740.0029,307.0015.64%58,614.0010,866.00TwoExtraKeys 400.00 800.00AEPUp?t 15,867.0031,734.00SubTotal 45,574.0091,148.00SalesTax 3,987.737,975.45TireTax 8.75 17.50Transport189.00 373.00Total 49,759.4399,512.95Termsarenet30days.Delivery120-180DaysARONationalAutoFleetGroupwelcomestheopportunitytoassistyouinyourvehiclerequirements.KevinBuzzardNationalLawEnforcementSalesManagerNationalAutoFleetGroupWondriesFleetGroup626-457-55900714-264-1867C 490AutoCenterDrive,Watsonville,CA95076(855)239-6572[855]BUY-NJPA-[831]480-8497FaxFleet@Nationa|Aul:oF|eetGroup.com

15.C

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QuotationW9 P399Dec16,20211OrderNumberQTEOO31503AEPCalifornia10729WheatlandsAve.SuiteCSanlae.GA92071Phone:(619)596-1925Fax:(619)596-1909SoldTo: T0:ofHemet AEP-CalifomiaE.FloridaAve. ShipPanstoAEP-CAforInstallationCalifornia92543 ReferencePONumbercustomerNo.SalespersonorderDateShipVlaTermsCSOExnlnrerX?(7097Prininn\ HFM11101AR De¢:16_2021 NFT3l')Year Model2022 Ford Exolorer-Retail ItemIVendorPartNumber DescriptionUnitPriceExtendedPrice AgencyConlacl:MattGomez.951-212-7721DealerContact:KevinBuaard,714-264-1867VehicleETA:“EmergencyWarningSystem,DualModeforCS0andLEO"2.00|NSTD5526/ENNLBO0PV9-28A54"nForceNXTLightbar.DualFunction:AIWCSO- 2.749.0000Y 5.498.00RIBIWLEO-EOSQE083403.line72.00SlRE00599/ENGSA561HPP500SeriesbluePRlNTSiren,Handheld.100-Watts637.0000Y 1,274.002.00SPEA00253/ETSS100.15100WattCompositeSirenSpeakerwithUniversalBail160.0000Y 320.00Bracket2.00V ACCO2567/835635ProClipConsoleMountAccessoryBracket.20+ 35.0000Y 70.00Explorer2.00LEDS03529/EMPSZSTSSRAWmPowerFasciaLED,SludMount,18-LED,120.5000Y 241.00RedlAmber/While(PushBumperLED,DriverSide)(AKA:EMPS2001P-5,EOSQEOB3403line3)2.00LEDS03530/EMPSZSTSSBAWmPowerFasciaLED,StudMount.18-LED,120.5000Y 241.00Blue/Amber/While(PushBumperLED,PassengerSide) Quotationcontinuedonnextpage
Make

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HFM11101ASMake White
Tax
mPowerFasciaLED,QuickMount,18-LED, YRed/Amber/Whi1e(FrontIRearFenderLED's.DriverSide)(RearLicensePlate,DriverSide)(AKA:EMF’S2001D-5.EOSOED33403line5)LEDSO3B67/EMPSZOMSSBAWmPowerFasciaLED.QuickMount,18-LED, YBlue/Ambarlwhite(Front/RearFenderLED‘s,PassengerSide)(RearLicensePlate,PassengerSide) LBARO3277/ENFWB001MO
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6.00 120.5000723.00
(AKA;EMPS2001D-1,EOSQE083403line6)2.00 nForceInteriorRearLightbar,6-Module.R/B/A,20+ 0.0000N 0.00PIU/Expl

4.00LEDS03669/ELUC3H010RUniv.UCScrew-InLEDInsert,Red 73.5000Y 294.00(RearTailLightHousings)

2.00BUMP00789/BK0534EPL20PB400PushBumper.2020+CivilianExplorer439.0000Y 878.00

2.00COMP01828/7300-0387-12 1,499.0D00Y 2,998.00
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QuotationW9 P399Dec16.20213OrderNumberOTE0031503AEPCalifornia10729WheallandsAve.SuiteCSantee.CA92071Phone:(619)596-1925Fax:(619)596-1909SoldTo: To:CilyofHemet AEP—Califomia445E.FlondaAve. ShipPartstoAEP-CAforInstallationHemel,California92543 ReferencePoNumberCustomerNo.SalespersonorderDateShipViaTermsCSOExnlorerx2(onooDrininnl HEM111a1As Def:1;;9n91 N|='ranYear Make Color StateContract#2022 Ford NAItemIVendorPartNumber DescriptionUnitPrice2.00COMP01831/7160-1336VehicleComputerMountBase,2020+FordUlililyl147.0000Y 294.00Explorer2.00COMP00096/DS-LOWER-99"LowerPoleAssembly 56.5000Y 113.00PL2013-05-15COMP00510/7160-0178 164.00CONS01571/7160-1160 476.00COMP00119/7160-0230 142.00 200ANTEO0968/GP-lN2236 206.0000412.002.00ANTEO0935/ASFC—155—U2-B1 75.0000Y 150.002.00ANTE00781/C23F-5T 165000Y 33.00

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Model
-RetailWhile
CenterMountedUpperPole6"LockingSlideArmwithShortClevisSupportBrace,Short“RadioandDataAntenna*“GPSBSharkeeAntennakit,CellwlTNC.GPSw/'l'NC(OptWhip)Trl-BandAntennaMast.150-160,450-520,745-670MHzRadioAntennaExtensionCable,16',TNC“’*RadioInstallation*"'MagneticMicrophoneMountNote:InstallHemetSuppliedHarrisHandheldRadioKitTIRPacktomountonrearpartition"*PrisonerTransportTransport'**

82.0000238.000071.0000Y

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12VSRearCargoPartition,ExpandedMetal,2020+ExplorerowBaniers,SteelHorizontal,2020+ExplorerIDoorPanelKit,TPOCover.2020+ExplorerRetail'“RearCargoStorageSystem“SetlnaLockBox.DualDrawer,ComboLock.DSEIBSN,Explorer“installation!Freight“InstallationLaborServicesEVT-Certi?edTechnicianLaborPalrolPower,GeniFull-SizeUnderhood,2020+ExplorerInstallationMaterialsIShopSuppliesFreightlShipping($150perunit)“CustomerSuppliedEquipment“-HarrisRadioKitincIuding:(HandHe|dControls) 245.5000Y
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ReferenceCSOExnlarerX20099Prir.inn\Year Make2022FordQty‘Item/VendorPanNumberOrd.2.00PRlS02090/PK1126EPL20TM

2.00lNST05526/DK0100EPL20

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DatePageDec16,20214OrderNumberQTE0031503
To:AEP-CalilomiaShipParistoAEP-CAforInstallation
salespersonOrderDateShlpViaTermsAS Dec16.2021 NFTRO
DescriptionUni!Price10XLFrontPartition.10CSlidingWindow.2020+844.0000Y 1,688.00 456.5000Y
245.5000491.00
1,503.5000Y 3,007.00

95.0000Y 7,980.00
725.0000Y 1,450.00
150.0000Y 300.00N 300.00

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Quotation03“?Pa‘-1°Dec16.20215OrderNumberQTEOO31503AEPCalifornia10729WheallandsAve.SuiteCSantee,CA92071Phone:(619)596-1925Fax:(619)596-1909SoldTo: To:ofHemet AEP-CalifomiaE.FloridaAve. ShipPartstoAEP-CAforInstallationHemet.California92543 ReferencePONumberCustomerNa.SalespersonOrderDateShipViaTennsCSOExolorerx2(2027Prlninnl HEM111o1AS Dec1s_2021 NE1'3oYear Model color StateContract#2022 Ford Explorer—RetailWhite NA 32;‘Item[VendorPartNumber UnitPriceTaxPrice2.00INST05685/CSM 0.0000N 0.002.00lNST05685/CSM 0.0000N 0.002.00lNST05685/CSM 0.0000N 0.002.00lNST05685/CSM 0.0000N 0.002.00lNST05685/CSM 0.0000N 0.002.00lNST05685/CSM 0.0000N 0.00 parts 23,454.00Labor]Services71930-00TransITripIFee 0-00Shipping300.00OrderDiscount0-00Subtotal311734-00TotalsalestaxTotalorder("5 xv\5»C5G»9’ UU6 Make
Description
-RadioTIRTranciever-RadioTIRPackMountingBracket-RadioPowerCable-HANDHELDRadioRemoteControl-EndResistorsandControlHeadCabling-RemoteSpeaker ThankyoufortheopportunitytoearnyourbusinessTerms8-Conditions:-ESTIMATESV ALIDFOR30DAYS-Orderswillbeinvoiceduponnoti?cationofcompletion~Returnssubjectto25%restockingfee.Noreturnsonspecialorderitems.- meeptedforpaymentsoforders/invoicingor ly.SIGNATURE(notrequiredifP0/contractisissued)

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CHROM IEDATAWondriesFleetGroupINationaAutoFeetGroupA"A°*°°'°*°5°'Uh°"SBmndKevinBuzzard1626-457-5590OFC1Buzzard5150@gmai|.com Vehicle:[Fleet]2022FordExplorer(K7B)BaseRWD

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U-{ROMEDATAWondresFleetGroupINationalAutoFeetGroupA"AU*°d°*°5°'U“°nsBrandKevinBuzzard|626-457-5590OFC|Buzzard5150@gmai|.com WondriesFleetGroupINationalAutoFeetGroupPreparedBy:KevinBuzzardWondriesFleetGroupINationalAutoFleetGroup626-457-5590OFCBuzzard5150@gmai|.com Prices.spealicetions.andavailabilityaresubjecttochangewithoutnotice.anddonotincludecertainlees,taxesandchargesthatmayberequiredbylaworvarybymanufacturerorregion.Perfonnancefiguresareguidelinesonly.andactualperformancemayvary.Photosmaynotrepresentactualvehiclesorexactcon?gurations.contentbasedonreportpreparersinputissubjecttotheaccuracyoftheInputprovided.DateVersion15350.DataupdatedDec13.202110:37:00PMPSTDec2021 Page2

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CHROMWondriesFeetGroupINationaAutoFeetGroupA"AutoduloSolutionsBrandKevinBuzzard|626-457-5590OFC|[email protected]:[Fleet]2022FordExplorer(K7B)BaseRWD(JComplete) SelectedModelandOptionsMODELCODEMODELK7B 2022FordExplorerBaseRWDCOLORSCODEDESCRIPTIONYZ OxfordWhiteENGINECODEDESCRIPTION99HEngine:2.3LEcoBoostI-4-inc:autostart-stoptechnology(STD)TRANSMISSIONCODEDESCRIPTION44TTransmissioni1(}SpeedAutomatic(STD)OPTIONPACKAGECODEDESCRIPTION100AEquipmentGroup100APRIMARYPAINTCODEDESCRIPTIONYZOxfordWhiteSEATTYPECODEDESCRIPTION7NSandstone,ClothCaptain'sChairs-inc:8-waypowerdriver'sseatw/powerfunctionfortiltandrecline,4-waymanualfrontpassengerseatwlfore/aftandreclineand2-waymanuallyadjustabledriverandfrontpassengerheadrestraintsADDITIONALEQUIPMENT-EXTERIORCODEDESCRIPTION153FrontLicensePlateBracket Prices.speci?cations.andavailabilityaresubiecltochangewithoutnotice.anddonotincludecertainfees.taxesandchargesthatmayberequiredbylaworvarybymanufacturerorregion.Perfonnance?guresareguidelinesonly.andactualperlonnancemayvary.Photosmaynotrepresentactualvehiclesorexactcon?gurations.Contentbasedonreponpreparersinputissubjecttotheaccuracyoftheinputprovided.DataVersion:15350.DataupdatedDec13.202110:37:00PMPSTDec14.2021 F39”3

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CHROMEWoDATAndresFeetGroupIationalAutoeetGroupAnAU*°d°*°5°'U“°nsBrandKevinBuzzard|626-457-5590OFC|[email protected]:[Fleet]2022FordExplorer(K7B)BaseRWD(JComplete) ADDITIONALEQUIPMENT-INTERIORCODEDESCRIPTION16BFront&2ndRowFloorLiners(16B)-inc:standardcarpetfloormatsOptionsTotal Dec2021
spod?oations.andavailabt?lyarésubjedto-oh-angewitlioui-rnotice.anddonotinchrdecertainfees.taxesandchargthatmayberequiredbylaworvarybymanufacturerorraglan.Performance?guresareguidelinesonly.andadualperformancemayvary.Photosmaynotrepresentactualvehiclesorexactcon?gurations.contentbasedonreportpreparersinputissuhjecttothoaccuracyoftheinputprovided.DataVersion:15350.DataupdatedDec13.202110:37.13!)PMPST Page4

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CHROM_ WondriesFeetGroupINationaAutoFleetGroupA"A°*°d°*°5°’U“°"[email protected]:[Fleet]2022FordExplorer(K7B)BaseRWD(«IComplete) StandardEquipmentMechanicalEngine:2.3LEcoBoostl-4-inc:autostart-stoptechnology(STD)Transmission:10-SpeedAutomatic(STD)3.58Non-Limited-SlipRearAxleRatio50StateEmissionsSystemFlexibleFuelVehicle(FFV)systemisstandardequipmentforvehicleswiththe3.3LTi-VCTV6FFVengine.TransmissionwlDriverSelectableModeRear-WheelDriveBatterywIRunDownProtectionRegenerativeAlternatorTowingEquipment-inc:TrailerSwayControlGVWR:TBDGas-PressurizedShockAbsorbersFrontAndRearAnti-RollBarsElectricPower-AssistSpeed-SensingSteering17.9Gel.FuelTankQuasi-DualStainlessSteelExhaustStrutFrontSuspensionwlCoilSpringsMulti-LinkRearSuspensionwlCoi|Springs4-WheelDiscBrakeswl4-WheelABS.FrontAndRearVentedDiscs.BrakeAssist,HillHoldControlandElectricParkingBrakeExteriorWheels:18"5-SpokeSilver-PaintedAluminumTires:P255/65R‘l8ASBSW-inc:minispareSteelSpareWheelSpareTireMountedinsideUnderCargoClearcoatPaintBody-ColoredFrontBumperBody-ColoredRearBumperw/BlackRubStrip/FasciaAccentBlackBodysideCladdingandBlackWheelWellTrimBlackSideWindowsTrim,BlackFrontWindshieldTrimandBlackRearWindowTrimBlackDoorHandles Pnces.sped?calions,andavailabilityaresubjecttochangewithoutnotice,anddonotincludecertainlees.taxesandchargesthatmayberequiredbylaworvarybymanufacturerorregion.Performance?guresareguidelinesonly.andactualperformancemayvary.Photosmaynotrepresentactualvehiclesorexactcon?gurations.Contentbasedonreportpreparersinputissubjecttotheaccuracyoftheinputprovided.DataVersion:15350.DataupdatedDec13.202110:37:00PMPST 939°5

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CHROM
quire plicunuldselely. apackag usXradiolfyuudeniafter mesbscripplan haasewlltlcallreneweaflarand WondriesFleetGroupINationalAutoFleetGroupA"AU*°d°*°5°'U“°nSBr°n°‘[email protected]:[Fleet]2022FordExplorer(K7B)BaseRWDW’Complete) Exterior
Interior
BlackPowerSideMirrorsw/ManualFoldingFixedRearWindoww/FixedIntervalWiper,HeatedWiperParkandDefrosterDeepTintedGlassSpeedSensitiveVariableintermittentWipersGalvanizedSteeIIA|uminumPanelsLipSpoilerBlackGrillePowerLiftgateRearCargoAccessTaiIgatelRearDoorLockincludedw/PowerDoorLocksAutolampAuto0nIOffAero-CompositeLedLow/HighBeamAutoHigh-BeamDaytimeRunningLightsPreferenceSettingHeadlampsw/Delay-OffLEDBrakelightsHeadlights-AutomaticHighbeams Radiow/Seek-Scan.Clock.SteeringWheelControlsandlntemalMemoryRadio:AMIFMStereo-inc:MP3capability.6speakers,speed-compensatedvolumeandSiriusXMradiowla3monthprepaidsubscription.ServiceisnotavailableinAlaskaandHawaii,SiriusXMaudioanddataserviceseachreasubscris paraoras e,bySiriMinc,detocontinueserviceyourtrial.u tionyouc Iautomay theryouwillbechargedaccordingtoyourchosenpaymentmethodatthen-currentrates.Feesandtaxesapply,TocancelyoumustcallSiriusXMat1-866-635-2349.SeeSiriusXMcustomeragreementforcompletetermsatwww.siriusxm.com.Allfeesandprogrammingsubjecttochange,TrialsubscriptionsnotavailableinAlaskaandHawaiiStreamingAudioIntegratedRoofAntennaSYNC3Communications&EntertainmentSystem-inc:enhancedvoicerecognition.8"LCDcapacitivetouchscreenincenterstackw/swipecapability.AppLink,911Assist,AppleCarPlayandAndroidAutocompatibilityand1"A“and1"C"USBportsinthemediahub,BluetoothWirelessPhoneConnectivity2LCDMonitorsInTheFront BucketFrontSeatsw/ClothBackMaterialDriverSeatPassengerSeat35-30-35FoldingSplit-BenchFrontFacingManualRecliningFoldForwardSeatbackClothRearSeatw/ManualFore/Aft Prices.speci?cations.andavailabilityaresubjecttochangewithoutnotice.anddonotincludecertainfees,taxesandchargesthatmayberequiredbylaworvarybymanufacturerorregion.Perfonnancepreparersinputissub]2021 ?guresareguidelinesonly,andactualperfonnancemayvary.Photosmaynotrepresentactualvehiclesorexactcon?gurations.Contentbasedonreportacttotheaccuracyoftheinputprovided.DataVersion:15350.DataupdatedDec13.20211023700PMPST Page6

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CHROM_ WondriesFleetGroupINationaAutoFleetGroupA“AU'°d°'°5°'UI'°nsBrandKevinBuzzard1626-457-5590OFC1Buzzard5150@gmai|.comVehicle:[Fleet]2022FordExplorer(K7B)BaseRWDre‘Complete) InteriorManual1‘iIt/TelescopingSteeringColumnGauges-inc:Speedometer.Odometer,EngineCoolantTemp,Tachometer,OilLevel,TripOdometerandTripComputerPowerRearWindowsandFixed3rdRow‘WindowsFixed50-50BenchCloth3rdRowSeatFront,ManualFoldIntoFloor.2ManualandAdjustableHeadRestraintsFrontCupholderRearCupholderCompassRemoteKeylessEntryw/IntegratedKeyTransmitter.IlluminatedEntry.IlluminatedIgnitionSwitchandPanicBu?onRemoteReleases-Inc:PowerCargoAccessCruiseControlw/SteeringWheelControlsV oiceActivatedDualZoneFrontAutomaticAirConditioningRearHV ACwlseparateControlsHV AC-inc:UnderseatDuctsandHeadlinerlPll|arDuctsLockingGloveBoxDriverFootRestInteriorTrim-inc:Metal-LooklPianoBlackInstrumentPanelInsert,Metal-LookIPianoBlackDoorPanelInsert.PianoBlackConsoleInsertandChromellvletal-LookInteriorAccentsFullClothHeadlinerClothDoorTrim|nsei‘tClothCaptain'sChairs-inc:8-waypowerdriversseatwlpowerfunctionfortiltandrecline,4-waymanualfrompassengerseatw/fore/aftandreclineand2-waymanuallyadjustabledriverandfrontpassengerheadrestraintsDay-NightRearviewMirrorDriverAndPassengerVisorVanityMirrorswIDriverAndPassengerIllumination.DriverAndPassengerAuxiliaryMirrorFullFloorConsolew/CoveredStorage,MiniOverheadConsolewlstorageand512VDCPowerOutletsFrontAndRearMapLightsFade~To-OffInteriorLightingFullCarpetFloorCovering-inc:CarpetFrontAndRearFloorMatsCarpetFloorTrimTrunklHaIchAuto-LatchCargoAreaConcealedStorageCargoSpaceLights Prices.speci?cations,andavailabilityaresubjecttochangewithoutnotice,anddonotincludecertainfees,taxesandchargesthatmayberequiredbylaworvarybymanufacturerorregion.Perfonnance?guresareguidelinesonly.andactualperformancemayvary.Photosmaynotrepresentactualvehiclesorexactcon?gurations.Contentbasedonreportpreparersinputissubjecttotheaccuracyoftheinputprovided.DataVersion:15350,DataupdatedDec13,202110:37:00PMPSTDec2021 Fans7

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CHROM_ .WondriesFleetGroupINationaAutoFleetGroupA“AU*°d°*°5°'Ut'°nSBrandKevinBuzzard|[email protected]:[Fleet]2022FordExplorer(K7B)BaseRWD(vzfcompiete) InteriorFOBControls-inc:CargoAccessSmartDeviceRemoteEngineStartFordPassConnect-Inc:4GLTEWi-Fihotspotconnectsupto10deviceswlwirelessdatatrialthatbeginsuponAT&Tactivationandexpiresattheendof3monthsorwhen3GBofdataisused.whichevercomes?rst.butcannotextendbeyondthetrialsubscriptionperiodforremotefeatures.Toactivate,gotowww.att.com/ford,remotelystart,lockandunlockvehicle.schedulespeci?ctimestoremotelystartvehicle,locateparkedvehicleandcheckvehiclestatus(FordPassConnect.theFordPassApp,andComplimentaryConnectedServicesarerequiredforremotefeatures(seeFordF'asstennsfordetails).ConnectedServiceandfeaturesdependoncompatibleAT&Tnetworkavailability.Evolvingtechnology/cellularnetworkslvehiclecapabilitymaylimitfunctionalityandpreventoperationofconnectedfeatures.ConnectedsenricesexcludesWi-Fihotspot.).Note:FordTelematicsanddataservicesprepincludedfor?eetonly:FordPassConnect4GWi-Fimodemprovidesdatatosupporttelematicsanddataservicesincludingbutnotlimitedtovehiclelocation.speed,idletime.fuel,vehiclediagnosticsandmaintenancealerts,DeviceenablestelematicsservicesthroughFordorauthorizedproviders.Activateatwww.?eet.ford.comorcall833-FCS-Ford.(833-327-3673)DriverlPassengerAndRearDoorBinsPower1stRowWindowswlDnverAndPassenger1-TouchUp/DownDelayedAccessoryPowerPowerDoorLocksw/AutolockFeatureSystemsMonitorTripComputerOutsideTempGaugeAnalogAppearanceManualAdjustableRearHeadRestraintsFrontCenterArmrest2SeatbackStoragePocketsSecurilockAnti-TheftIgnition(pats)EngineImmobilizer512VDCPowerOutletsAirFiltrationSafety-MechanicalAdvanceTracw/RollStabilityControlElectronicStabilityControl(ESC)AndRollStabilityControl(RSC)ABSAndDrivelineTractionControlSafety-ExteriorSideImpactBeamsSafety-lnterlorDualStageDriverAndPassengerSeat-MountedSideAirbagsReverseSensingSystemRearParkingSensors Prices.speci?cations.andavailabilityaresubjecttochangewithoutnotice.anddonotincludecertainlees.taxesandchargesthatmayberequiredbylaworvarybymanufacturerorregion.Perfomiance?guresareguidelinesonly.andactualperformancemayvary.Photosmaynotrepresentactualvehiclesorexactcon?gurations.Contentbasedonreponpreparersinputissubjecttotheaccuracyoftheinputprovided.DateVersion:15350,DataupdatedDec13.202110:37:00PMPST2021 Page5

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CHROM_ WondresFleetGroupINationaAutoFleetGroupA“AU*°d°*°5°'U“°"-°-BrandKevinBuzzard|626-457-5590OFC|[email protected]:[Fleet]2022FordExplorer(K7B)BaseRWD(«:99Complete) Safety-lnteriorFordCo—Pilot360-BLIS(BlindSpotInformationSystem)BlindSpotFordCo-Pilot36D-Pre-CollisionAssistwithPedestrianDetectionandCross-TrafficAlertLaneKeepingAlertLaneKeepingAssistLaneKeepingAlertLaneDepartureWarningCollisionMitigation-FrontDriverMonitoring-AlerlTireSpeci?cLow‘FrePressureWarningDualStageDriverAndPassengerFrontAirbagsSafetyCanopySystemCurtain1st,2ndAnd3rdRowAirbagsAirbagOccupancySensorDriverAndPassengerKneeAirbagMykeySystem-inc:TopSpeedLimiter,AudioV olumeLimiter,EarlyLowFuelWarning,ProgrammableSoundChimesandBellminderwlAudioMuteRearChildsareryLocksOutboardFrontLapAndShoulderSafetyBelts-inc:RearCenter3Point,HeightAdjustersandPretensionersBack-UpCameraw/Washer Prices.speci?cations.andavailabilityaresubjecttochangewithoutnotice,anddonotincludecertainlees.taxesandchargesthatmayberequiredbylaworvarybymanufacturerorregion.Performancefiguresareguidelinesonly.andactualperformancemayvary.Photosmaynotrepresentactualvehiclesorexactoonligurations.Contentbasedonreportpreparersinputissubjecttotheaccuracyoftheinputprovided.DataVersion:15350.DataupdatedDec13.202110:37:00PMPSTDec2021 '°°9°9

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CHROM_ WondriesFeetGroupINationalAutoFleetGroupA"AU*°d°*°5°‘U“°nSBwndKevinBuzzard1626-457-5590OFC|[email protected]:[Fleet]2022FordExplorer(K7B)BaseRWD(¢compIete)WindowStickerSUMMARY[Fleet]2022FordExplorer(K7B)BaseRWD MSRP:$33,245.00lnteriorzsandstone.ClothCaptain'sChairsExterior1:OxfordWhiteExterior2:Nocolorhasbeenselected.Engine:2.3LEcoBoostI-4Transmission:10-SpeedAutomaticOPTIONSCODEMODEL MSRPK7B [Fleet]2022FordExplorer(K7B)BaseRWD $33,245.00OPTIONS100A EquipmentGroup100A $0.00153 FrontLicensePlateBracket $0.0016B Front&2ndRowFloorLiners(16B) $200.0044T Transmission:10-SpeedAutomatic $0.00TN Sandstone.ClothCaptain'sChairs $0.0099H Engine:2.3LEcoBoostl-4 $0.00YZ OxfordWhite $0.00SUBTOTAL $33,445.00AdjustmentsTotal $0.00DestinationCharge $1295.00TOTALPRICE $34,740-00FUELECONOMYEstCity:21(2021)MPGEstHighway:2B(2021)MPGEstHighwayCruisingRange:501.20mi Prices.speci?cations,andavailabilityaresubjecttochangewithoutnotice,anddonotincludecertainfees.taxesandchargesthatmayberequiredbylaworvarybymanufacturerorregion.Pertonnancefiguresareguidelinesonly.andactualperformancemayvary.Photosmaynotrepresentactualvehiclesorexactcon?gurations.Contentbasedonreportpreparersinputissubjecttotheaccuracyoftheinputprovided.DataVersion:15350.DataupdatedDec13,202110:37:00PMPSTDec14.2021 Page10

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\\\EIJEE
ShipCityof}-Ierrel
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CDCEInc.22641OldCanalRoad SalesuoteYorbaL1nda,CA92887INCORPORATED 118326Telephone:714-282-8881BillTo ToPoliceDepartmentCityofHemetPoliceDepartmentVendor#83979 PO#450ELatharnAve. 450ELathamAve.Hemet,CA92543-4209 Hemet,CA92543Contact:AccountsPayable Contact:MatthewGomezTeleiiione:951-765-2342Telephone:951-765-2348Emil:ap@cityo1‘hernet.orgEmail:[email protected] 01/04/22DropShip Destination
TimHunt Net30Part#1 233-LE-02VM 2,890.005,780.00

8.00 Ifinstockatdistribution,estimateddelivery1-2weeksARO.PanasonicNASPOValuepointContractMasterAgreement:MNWNC-124CaliforniaParticipatingAddendum7-15-70-34-023 01/04/22 5,788.0011:16:34AM 0.00505.75
Page1of
QuoteDateEnteredBy
2FEB-100001
PrintDatePrintTine
SalesQuoteNo.|
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CustomerNo.C11-IEMETPD
ShipVia F.0.B.CustonnrP0NunberOrderByPaymentMethodMatthewGomezSalespersonTHUNT.. UnitExtendedDescription PricePricePanasonicCF—33.FulldescriptionbelowPublicSectorSbeci?c-STD3,Win10Pro,IntelCorei5-7300U2.60G-Iz,vPro,12.0"QHDGovedMultiTouch+Digitizer,8GB,256GBS2),IntelWiFia/b/g/n/ac.TPM2.0,Bluetooth,D21Pass(Upper:WW AN/Lower:dGPS),4GLTEMultiCarrier(EM7455),dCPS,InfraredWebcam,8MPCam,Contactless&nartCard,ToughbookPreferred3YearProservicePremierDeploymentService,Tab1etPCProP1vsWarranty,256SDnoreturnservice,andCmtomBIOSRecycleFeeforMonitors4"-15" 4.00 SubTotalFreight8.750%SalesTax6,293-75

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Proposal#255300Date:1/13/2022ValidTo:2/12/2022PrepairedBy:EricAZwarkowski Office:7602432332Email Fax:7602430886Company:HemetPDRequestedBy:MattGomezPhone:Email:

QuantityItemNumber Description EachTotal2 XZ-MPPM1ML3/HARRISXL-200MobileRadioMultiband(ListS3,500.00)S2,590.00S5,180.002 XZ-PL4JVHFBand(List$500.00) S370.00S740.002 XZ—PL4KUHFBand(ListS500.00) S370.00S740.002 XZ-PLSL700/800MHzBand(ListS500.00) S370.00S740.002 XZ-PL4FPhaseIITDMA(List$250.00) S185.00S370.002 XZ—PL5LOTAR(OvertheAirRe-Keying)(ListS595.00)S440.30S880.602 XZ—PKG8FAESEncryption(List$695.00) $ 514.30$1,028.602 XZ-PKGPTP25Trunking(ListS1,500.00) S1,110.00S2,220.002 XZ—MA4AKit,MountingUniversal(List$600.00)S444.00S888.002 XZ-MC6AMicrophone,Standard(ListS105.00)S 77.70S155.402 XZ—CP6AControlHead(ListS1,500.00) S1,110.00S2,220.002 ANXMB8UAntennaMountingKitw.CoaxialCable,AntennaBaseS21.07S42.142 LARNMO150/450/150-174/430-520./750-870MHz0/5/4dBiNMOMobile$84.21$ 168.42758 AntennawithSpring2 R/FRFT1202—2TNCConnectorforMobileAntenna S 5.56S11.122 MAGMICMagneticMicrophoneHanger S 29.95S 59.90Hi-DesertCommunications Equipment:S15,444.1817181JasmineStreet SalesTax:S1,351.37Victorville,CA92395 Labor:Travel:Quoteisvalidfor30daysaftercreation Programming:Shipping:S 64.95Total:$16,860.50 Page11 www.Cazcom.orgPage 25 of 26

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ACTIVITY QTY RATE AMOUNT
T°T"'- $1,468.13
AcceptedBy AcceptedDate
Rap‘1dAutoGlass&Iint2350WMenloAveHemet,CA92545(951)927-9810rapidautog|ass.tint@gmai|.comEstimateADDRESS ESTIMATE#1109HemetPoliceDepartment DATE01/07/2022 aM?130onMap 2 675.001,350.00TglossprintedhighreflectivedecalsetforCSOfordexplorers fordexplorerdecalsetonlywithinstall SUBTOTAL 1,350.00CSOcars 118.13

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City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 22 2022
Department: Administration
Submitted by: Christopher Lopez, City Manager
John Maier, City Clerk;

☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing

TITLE:

Discussion of the Taxpayer Protection and Government Accountability Act

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

1. Discuss AG# 21-0042A1, The Taxpayer Protection and Government Accountability Act and do one of the following.

2. Direct staff to bring a resolution to the City Council at the first meeting in March 2022 to oppose AG# 21-0042A1, the Taxpayer Protection and Government Accountability Act.

3. Direct staff to take no take no action on the item.

BACKGROUND:

The League of California Cities has provided the following information to the City of Hemet:

In 2018, the “Tax Fairness, Transparency, and Accountability Act” or (AG# 17-0050 Amdt. #1) , was being circulated to qualify for the Novem ber 2018 ballot. This initiative would have drastically limited local revenue authority.

Through the successful work and advocacy of the League of California Cities and its coalition, the measure’s proponents withdrew the initiative from the ballot in June 2018.

On Jan. 4, 2022, the California Business Roundtable filed the Taxpayer Protecti on and Government Accountability Act or AG# 21-0042A1. This measure is far more detrimental to cities than the measure filed in 2018, because it would decimate vital local and state services to the benefit of wealthy corporations.

Cal Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly oppose this initiative.

16.A

ANALYSIS:

The Taxpayer Protection and Government Accountability Act limits voters’ authority, adopts new and stricter rules for raising taxes and fees, and makes it more difficult to hold violators of state and local laws accountable.

WHAT WOULD THIS MEASURE SPECIFICALLY DO?

1. Limit voter authority and accountability
• Limits voter input. Prohibits local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures.
• Invalidates the Upland decision that allows a majority of local voters to pass special taxes. Taxes proposed by the Initiative are subject to the same rules as taxes placed on the ballot by a city council. All measures passed between January 2022 and November 2022 would be invalidated unless reenacted within 12 months.

2. Restrict local fee authority to provide local services • Impacts franchise fees. Sets new standard for fees and charges paid for the use of local and state government property. The standard m ay significantly restrict the amount oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations pay for the use of local public property. Rental and sale of local government property must be “reasonable” which must be proved by “clear and convincing evidence.” • Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence.

3. Restrict authority of state and local governments to issue fines and penalties for violations of law
• Requires voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.

4. Restrict local tax authority to provide local services • Requires voter approval to expand existing taxes (e.g., UUT, use tax, TOT) to new territory (e.g., annexation) or expanding the base (e.g., new utility service). • City charters may not be amended to include a tax or fee. • New taxes can be imposed only for a specific time period. • Taxes adopted after Jan. 1, 2022, that do not comply with the new rules, are void unless reenacted.
• All state taxes require majority voter approval.
• Prohibits any surcharge on property tax rate and allocation of property tax to state.

5. Other changes
• No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.

DISCUSSION:

16.A

Staff is seeking direction on whether Council would like staff to bring back a resolution to support the Cal Cities resolution request or take no action.

STRATEGIC PLAN INTEGRATION:

GOAL THREE: COMMUNITY ENGAGEMENT
To connect and participate in a constant dialogue between members of the community, City staff, and elected officials to promote togetherness and positivity.

Objective 1: Deliver messaging to the Community that connects, is consistent, and relevant.

Objective 2: Increase transparency for the public.

Objective 3: Increase the community's pride within the City.

FISCAL IMPACT:

None.

ATTACHMENT(S):

Attachment 1: SAMPLE Oppose City Resolution_2.3.22
Attachment 2: CBRT Measure Opposition Fact Sheet (1-11-22) Attachment 3: CBRT Fiscal Analysis (1-11-22)
Attachment 4: Legal Analysis 01-20-22 AG FINAL
Attachment 5: 2_2_22_Broad Coalition Opposes CBRT Measure_FINAL

16.A

Resolution to Oppose Initiative 21-0042A1
WHEREAS, an association representing California’s wealthiest corporations is behind a deceptive proposition aimed for the November 2022 statewide ballot; and
WHEREAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure, our environment, water quality, air quality, and natural resources; and
WHEREAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and
WHEREAS, the measure makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and WHEREAS, the measure puts billions of dollars currently dedicated to state and local services at risk, and could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more; and WHEREAS, the measure would also reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, and utilities.

THEREFORE, BE IT RESOLVED that the City, opposes Initiative 21-0042A1.

THEREFORE, BE IT FURTHER RESOLVED, that the City of [NAME] will join the NO on Initiative 21-0042A1 coalition, a growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state.

We direct staff to email a copy of this adopted resolution to the League of California Cities at [email protected].

PASSED, APPROVED, AND ADOPTED this day _____ of _____, 2022.

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Stop the Corporate Loopholes Scheme
Deceptive Proposition Allows Major Corporations to Avoid Paying their Fair Share and Evade Enforcement when they Violate Environmental, Health & Safety Laws An association representing California’s wealthiest corporations — including oil, insurance, banks and drug companies — is behind a deceptive proposition aimed for the November 2022 statewide ballot. Their measure would create major new loopholes that allow corporations to avoid paying their fair share for the impacts they have on our communities; while also allowing corporations to evade enforcement when they violate environmental, health, safety and other state and local laws. Here’s why a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses oppose the Corporate Loophole Scheme:

Gives Wealthy Corporations a Major Loophole to Avoid Paying their Fair Share - Forcing Local Residents and Taxpayers to Pay More • The measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure, our environment, water quality, air quality, and natural resources – shifting the burden and making individual taxpayers pay more.

Allows Corporations to Dodge Enforcement When They Violate Environmental, Health, Public Safety and Other Laws
• The deceptive scheme creates new loopholes that makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods.

Jeopardizes Vital Local and State Services
• This far-reaching measure puts at risk billions of dollars currently dedicated to critical state and local services.
• It could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services and more. • It would also reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, utilities and more.

Opens the Door for Frivolous Lawsuits, Bureaucracy and Red Tape that Will Cost Taxpayers and Hurt Our Communities
• The measure will encourage frivolous lawsuits, bureaucracy and red tape that will cost local taxpayers millions — while significantly delaying and stopping investments in infrastructure and vital services.

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Undermines Voter Rights, Transparency, and Accountability • This misleading measure changes our constitution to make it more difficult for local voters to pass measures needed to fund local services and local infrastructure.
• It also includes a hidden provision that would retroactively cancel measures that were passed by local voters — effectively undermining the rights of voters to decide for themselves what their communities need.
• It would limit voter input by prohibiting local advisory measures, where voters provide direction to politicians on how they want their local tax dollars spent.

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CaliforniaCityFinance.Com
Fiscal and Program Effects of
Initiative 21-0042A1 on Local Governments

If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in:
 Billions of local government fee and charge revenues placed at heightened legal peril. Related public service reductions across virtually every aspect of city, county, special district, and school services especially for transportation, and public facility use.  Hundreds of millions of dollars of annual revenues from dozens of tax and bond measures approved by voters between January 1, 2022 and November 9, 2022 subject to additional voter approval if not in compliance with the initiative.
 Indeterminable legal and administrative burdens and costs on l ocal government from new and more empowered legal challenges, and bureaucratic cost tracking requirements.  The delay and deterrence of municipal annexations and associat ed impacts on housing and commercial development.
 Service and infrastructure impacts including in fire and emerg ency response, law enforcement, public health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention and mental health services.

1. Local Government Taxes and Services Threatened
With regard to taxes, Initiative 21-0042A1:
 Prohibits advisory, non-binding measures as to use of tax proc eeds on the same ballot. o Voters may be less informed and more likely to vote against me asures.  Eliminates the ability of special tax measures proposed by cit izen initiative to be enacted by majority voter approval (Upland).
o Because the case law regarding citizen initiative special taxe s approved by majority vote (Upland) is so recent, it is unknown how common these sorts of measures might be in the future. This initiative would prohibit such measures after the effective date of the initiative. Any such measures adopted after January 1, 2022 through November 8, 2022 would be void after November 9, 2023.
 Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to require that all tax increases or extensions contain a sunset (end date). o This would require additional tax measures to extend previousl y approved taxes at additional cost to taxpayers.
 Requires that a tax or bond measure adopted after January 1, 2 022 and before the effective date of the initiative (November 9, 2022) that was not adopted in accordance with the measure be readopted in compliance with the measure or will be void twelve months after the effective date of the initiative (November 9, 2023).
o If past election patterns are an indication, dozens of tax and bond measures approving hundreds of millions of annual revenues may not be in compliance and would be subject to reenactment.

Most will be taxes without a specific end date. Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, measures not in compliance would need to be placed on a special election ballot for approval before November 9, 2023 or the tax will be void after that date. General tax measures would require declaration of emergency and unanimous vote of the governing board.
2217 Isle Royale Lane • Davis, CA • 95616-6616
Phone: 530.758.3952 • Fax: 530.758.3952
Rev. January 7, 2022

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CaliforniaCityFinance.com
 Requires voter approval to expand an existing tax to new terri tory (annexations). This would require additional tax measures and would deter annexations and land de velopment in cities. o If a tax is "extended" to an annexed area without a vote after January 1, 2022, it will be void 12 months later until brought into compliance. Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, such extensions for general taxes would, under current law, each require unanimous vote of the agency board to be placed on a special election ballot or would be void after November 9, 20 23.

1.a. Number of Measures and Value of Local Taxes at Risk 1 In 2020, voters in California approved 293 local tax and bond m easures for cities, counties, special districts and schools (95 in March and 198 in November). The approved measures enacted $3.85 billion in new annual taxes including $1.3 billion for cities, $302 mil lion for counties, $208 million for special districts (fire, wastewater, open space and transit districts), and $2.037 billion for schools (including for school bonds).

Most tax measures go to the ballot during a presidential or gub ernatorial primary or general election in an even year. However, some tax measures are decided at other times. During 2019, there were 45 approved tax and bond measures (24 city, 14 special district, 7 school) adopting $154.0 million in new annual taxes ($124.0 million city, $10.5 million special district and $19.2 million school).

Most tax and bond measures comply with the new rules in Initiat ive 21-0042Amdt#1 except:
 Dozens of taxes would require end dates. This would require ad ditional measures in future years to extend the taxes further. Very few extensions of existing local taxes fail.  Majority vote general tax measures could not be accompanied on the same ballot with an advisory, non-binding measure as to use of tax proceeds.  Special taxes placed on the ballot via citizen initiative woul d require two-thirds voter approval.

Bond measures have fixed terms. Historically, about 20 percent of other tax measures have included specific durations (i.e. sunsets). Advisory measures as to use of revenues are uncommon. I do not expect the provisions of 21-0042A1 to have any substantial effect on passage rates. However, some 2022 approved measures would likely have to put back on the ballot.

Based on history, a reasonable estimate of the annualized tax revenues estimated to be approved by

1 Source: Compilation and summary of data from County elections offices.

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CaliforniaCityFinance.com
voters in 2022 and placed at risk by this initiative is at least $1.5 billion, including $1.0 billion from cities and $500 million from counties and special districts.2

1.b. Additional Costs and Public Service Effects of the Tax Provisions In addition to service delays and disruption due to new tax revenues placed at greater legal risk, there will be substantial additional costs for legal defense. The deterrence of taxes for annexations will delay and deter municipal annexations.

2. “Exempt Charges” (fees and charges that are not taxes) and Services Threatened With regard to fees and charges adopted after January 1, 2022, Initiative 21-0042A1:
 Subjects new fees and charges for a product or service to a ne w "actual cost” test defined as “(i) the minimum amount necessary to reimburse the government for the cost of providing the service to the payor, and (ii) where the amount charged is not used by the government for any purpose other than reimbursing that cost. In addition, subjects these same charges to a new, undefined, “reasonable” standard.
 Subjects fees and charges for entrance to local government pro perty; and rental and sale of local government property to a new, undefined, “reasonable” test.  Subjects a challenged fee or charge to new, higher burdens of proof if legally challenged.  Prohibits a levy, charge or exaction regulating or related to vehicle miles traveled, imposed as a condition of property development or occupancy.

2.a. Value on New Local Government Fees and Charges at Risk3 Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies and increases in those fees simply to accommodate inflation, the amount of local government fee and charge revenue placed at risk is about $1 billion per year including those adopted since January 1, 2022. Of this $1 billion, about $570 million is for special districts, $450 million is cities, and $260 million is counties.4
Major examples of affected fees and charges are:

1. Nuisance abatement charges - such as for weed, rubbish and g eneral nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs.

2. Commercial franchise fees.

3. Emergency response fees - such as in connection with DUI.

4. Advanced Life Support (ALS) transport charges.

5. Document processing and duplication fees.

6. Transit fees, tolls, parking f ees, public airport and harbor use fees.

7. Facility use charges, fees for parks and recreation services , garbage disposal tipping fees.

In addition to fees and charges, the measure puts fines and penalties assessed for the violation of state and

2 This does not include citizen initiative special tax approved by majority but not two-thirds. Because this approach is new, th e number of these measures and amount of revenue involved cannot be estimated. 3 Source: California State Controller Annual Reports of Financial Transactions concerning cities, counties and special districts , summarized with an assumed growth due to fee rate increases (not population) of 2 percent annually. 4 School fees are also affected but the amount is negligible by comparison.

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local law at risk, making them taxes subject to voter approval under certain circumstances.

2.b. Additional Costs and Public Service Effects of the Fee/Charge Provisions In addition to service delays and disruptions due to fee and charge revenues placed at greater legal risk, there would be substantial additional costs for legal defense. The risk to fees and charges will make infrastructure financing more difficult and will deter new residential and commercial development.

***********
mc

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The Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A1
January 21, 2022

Summary: The measure limits the voters’ input, adopts new and stricter rules for raising taxes and fees, and makes it more difficult to hold state and local law violators accountable.

Limiting Voter Authority and Accountability

• Limits voter input. Prohibits local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures.

• Invalidates Upland decision that allows majority of local voters to pass special taxes. Taxes proposed by the Initiative are subject to the same rules as taxes placed on the ballot by a city council. All measures passed between January 2022 and November 2022 would be invalidated unless reenacted within 12 months.

Restricting Local Fee Authority to Provide Local Services

• Franchise fees. Sets new standard for fees and charges paid for the use of local and state government property. The standard may significantly restrict the amount oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations pay for the use of local public property. Rental and sale of local government property must be “reasonable” which must be proved by “clear and convincing evidence.”

• Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence.

Restricting Authority of State and Local Governments to Issue Fines and Penalties for Violations of Law.

• Requires voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.

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Restricting Local Tax Authority to Provide Local Services

• Expanding existing taxes (e.g., UUT, use tax, TOT) to new territory (e.g., annexation) or expanding the base (e.g., new utility service) requires voter approval.
• City charters may not be amended to include a tax or fee. • New taxes can be imposed only for a specific time period. • Taxes adopted after January 1, 2022, that do not comply with the new rules, are void unless reenacted.
• All state taxes require majority voter approval.
• Prohibits any surcharge on property tax rate and allocation of property tax to state.

Other Changes

• No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.

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For immediate release:

Feb. 2, 2022

Contact: Kayla Sherwood, (530) 844-1744, [email protected] Fera Dayani, (916) 921-9111, [email protected]
Mila Myles, (812) 240-3938, [email protected]
Kyle Packham, (916) 642-3808, [email protected]

Public safety, labor, local government, and infrastructure advocates announce strong opposition to California Business Roundtable ballot measure that would benefit wealthy corporations while decimating vital local and state services

Deceptive proposition enables large corporations to avoid paying their fair share and evade enforcement when violating environmental, public health, and safety laws

SACRAMENTO — Today, the League of California Cities, California Professional Firefighters, SEIU California, California Alliance for Jobs, AFSCME California, and the California Special Districts Association announced their strong opposition to the deceptively named “Taxpayer Protection and Government Accountability Act,” a ballot measure sponsored by the California Business Roundtable (CBRT), an organization that advocates on behalf of the largest and wealthiest corporations in California.

The coalition of public safety, labor, local government, and infrastructure groups are vocalizing their opposition as the California Attorney General is set to issue an official Title and Summary for the measure tomorrow, February 3. Once Title and Summary is released, proponents can begin signature gathering. They must submit 997,139 valid signatures in order to qualify for the November 2022 ballot. The Secretary of State’s recommended date to turn in signatures is April 29, 2022.

“This far-reaching measure would significantly jeopardize cities’ ability to provide services and critical infrastructure to local residents,” said Carolyn Coleman, Executive Director and CEO, League of California Cities. “It would impose undemocratic restrictions on local voters and local governments that could force significant cuts to vital services like fire and emergency response, infrastructure, libraries, parks, sanitation, and more.”

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“This irresponsible measure would significantly reduce state and local funding available for fire prevention and response, including emergency services,” said Brian K. Rice, President, California Professional Firefighters. “At a time when our state and local communities are reeling from the impacts of intense and prolonged wildfires, this proposition interferes with the ability of firefighters and first responders to do our jobs and keep the public safe.”

The CBRT measure would create major new loopholes that allow wealthy corporations to avoid paying their fair share for the impacts they have on our communities; while also allowing corporations to evade enforcement when they violate environmental, health, safety, and other state and local laws. It would also significantly restrict the ability of local voters, local governments, and state elected officials to fund critical services like public schools, fire and emergency response, public health, parks, libraries, affordable housing, homeless and mental health services, and public infrastructure.

“This initiative is a deceptive scheme written and paid for by wealthy corporations for their sole benefit,” said Tia Orr, Interim Executive Director, SEIU California. “These rich corporations are trying to create constitutional loopholes to avoid paying their fair share, while shifting the burden onto hardworking Californians.”

“This measure would make it much more difficult to fund critical infrastructure that’s needed in California,” said Michael Quigley, Executive Director, California Alliance for Jobs. “It would undercut our ability to invest in virtually every form of infrastructure, including safe bridges, local streets and roads, public transportation, drinking water quality, new schools, and utilities.”

“This proposition would make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods,” said Alia Griffing, Political and Legislative Director, AFSCME California. “It’s a get out of jail free card for wealthy corporations that will hurt our efforts to provide critical public services necessary to keep our communities healthy and safe.”

“This measure exposes taxpayers to a new wave of costly litigation, limits the discretion of locally elected officials to respond to the needs of their communities, and injects uncertainty into financing critical infrastructure,” said Neil McCormick, CEO, California Special Districts Association. “We are in strong opposition to this dangerous measure that jeopardizes the health and safety of communities and prevents critical investments in climate adaptation and community resilience to address drought, flooding, and wildfire as well as reduce emissions and harmful pollutants.”

Background:

A broad and growing coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses opposes this measure. The measure:

Gives Wealthy Corporations a Major Loophole to Avoid Paying their Fair Share — Forcing Local Residents and Taxpayers to Pay More

16.A

• The measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure, our environment, water quality, air quality, and natural resources — shifting the burden and making individual taxpayers pay more.

Allows Corporations to Dodge Enforcement When They Violate Environmental, Health, Public Safety and Other Laws
• It creates new loopholes that makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods.

Jeopardizes Vital Local and State Services
• This far-reaching measure puts at risk billions of dollars currently dedicated to critical state and local services.
• It could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more.
• It would also reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, utilities, and more.

Opens the Door for Frivolous Lawsuits, Bureaucracy and Red Tape that Will Cost Taxpayers and Hurt Our Communities
• The measure will encourage frivolous lawsuits, bureaucracy, and red tape that will cost local taxpayers millions — while significantly delaying and stopping investments in infrastructure and vital services.

Undermines Voter Rights, Transparency, and Accountability • It would limit voter input by prohibiting local advisory measures, where voters provide direction to politicians on how they want their local tax dollars spent. • It would change our constitution to make it more difficult for local and state voters to pass measures needed to fund local services and local infrastructure. • It also includes a hidden provision that would retroactively cancel measures that were passed by local voters — effectively undermining the rights of voters to decide for themselves what their communities need.

Established in 1898, the League of California Cities is a nonprofit statewide association that advocates for cities with the state and federal governments and provides education and training services to elected and appointed city officials.

###

16.A

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 22 2022
Department: City Attorney
Submitted by: Christopher Lopez, City Manager
Steven Graham, Interim City Attorney;

☐ Receive and File ☐ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

A Resolution of the City Council of the City of Hemet, California, Adopting a Policy on Admonishment and Censure of Elected Officials of the City of Hemet

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, adopting a Policy on Admonishment and Censure of Elected Officials of the City of Hemet.

BACKGROUND:

On February 15, 2022, the City Manager requested this item be prepared for the February 22, 2022 agenda for discussion and possible action by the Council.

ANALYSIS:

Adoption of the Admonishment and Censure Policy would provide the Council and members of the public fair and adequate notice of the process and procedures for censuring, admonishing, and addressing situations when an elected official violations state law or local ordinances or policies.

DISCUSSION:

If the Admonishment and Censure Policy is adopted and depending on the circumstances of any alleged Violation(s), the Council may initiate an investigation of the allegations prior to the filing of a request for any of the actions described in the attached policy. As stated in the policy, an investigation, however, is not required.

Nothing in the Censure Policy precludes individual elected officials from making public statements regarding such alleged conduct. While the Council has broad discretion in dec iding certain actions it may choose to take in response to Violation(s), which would not require the Council to adopt a policy,

16.B

including but not limited to voting to remove an elected official from a Committee or Board, or a vote of no confidence in a particular elected official, or the reassignment of duties as authorized by state law, the attached policy provides definitions and procedures related to two types of actions: admonition and censure.

This policy furthers the Strategic Plan Goal of Organizational Effectiveness by establishing policies and procedures that follow best practices.

STRATEGIC PLAN INTEGRATION:

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 2: Evaluate existing practices to ensure continuity with industry best practices.

FISCAL IMPACT:

None.

ALTERNATIVE(S):

The Council could take no action.

ATTACHMENT(S):

Attachment 1: Hemet - Censure Resolution
Attachment 2: Hemet - City Council Censure Policy

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CITY OF HEMET
Hemet, California
RESOLUTION NO. 2022-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEMET, CALIFORNIA,

ADOPTING A POLICY ON ADMONISHMENT AND CENSURE OF ELECTED

OFFICIALS OF THE CITY OF HEMET
WHEREAS, the City Council of the City of Hemet, California, desires the City government to operate in a transparent and efficient manner to give the public confidence in the City’s operations; and
WHEREAS, elected officials of the City of Hemet are required to comply with state ethics laws, conflict of interest regulations and disclosure, and all requirements related to open meeting laws and should conduct themselves in a manner that best serves the public interest and ensures good governance; and WHEREAS, The City Council desires to adopt this policy to provide a method of enforcing the principles of ethical, efficient, and effective governance.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HEMET, CALIFORNIA, AS FOLLOWS:

SECTION 1. The City Council hereby adopts the City of Hemet Admonishment and Censure Policy, attached to this Resolution as Exhibit “A” and incorporated herein as though set forth in full.

PASSED, APPROVED, AND ADOPTED ON this _______________ day of __________________ . 2022.
_____________________
___________
Malcolm Lilienthal, Mayor
ATTEST:
________________________________
John Paul Maier, City Clerk

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CITY OF HEMET

DRAFT ADMONITION/CENSURE POLICY

CITY OF HEMET

DRAFT ADMONITION/CENSURE POLICY
I. Purpose
This policy applies the elected officials of the City
of Hemet and concerns conduct offensive to the
laws, regulations, rules, and norms governing
ethical, effective, and transparent government.

Any action taken by the City Council under this
policy shall be a final action and is not subject to
an appeal or reconsideration.

II. Policy
It is the policy of the Council that all elected
officials of the City shall perform their duties in an
ethical and lawful manner that furthers the public
interest. Actions counter to these principles
undermine the effectiveness of the City
government as a whole and foster distrust from
the public.

The Council, therefore, determines that it may take
action to admonish or censure any elected official
of the City, by the affirmative votes of a majority of
the members of the Council for any of the
following (“Violations”):

A. Conviction of, or plea of guilty or
nolo contendere to, any crime or
offense (other than minor traffic
violations or similar offenses) which
is likely to have a material adverse
impact on the City’s or elected
official’s reputation;
B. Failure of the elected official to
observe or perform any of his or her
duties and obligations, or failure to
follow the provisions of state law or
City ordinance or policy, when such
failure continues for a period of thirty
(30) days from the date of his or her
receipt of notice from the City
Council specifying the acts or

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CITY OF HEMET

DRAFT ADMONITION/CENSURE POLICY

omissions deemed to amount to that
failure;
C. Conviction of any crime involving an
“abuse of office or position,” as that
term is defined in Government Code
Section 53243.4;
D. Any action or inaction by the elected
official that materially and adversely:
(a) impedes or disrupts the
operations of City or its
organizational units; (b) is
detrimental to employees or public
safety; or (c) violates City’s properly
established rules or procedures.

Depending on the circumstances of alleged
violations, the Council may initiate an investigation
of the allegations prior to the filing of a request for any of the actions described in this policy. An
investigation, however, is not required.

Nothing in this policy shall preclude individual
elected officials from making public statements
regarding such alleged conduct. While the Council
has broad discretion in deciding certain actions it
may choose to take for violations of the above,
which would not require the Council to adopt the
policy, including but not limited to voting to remove
an elected official from a Committee or Board, a
vote of no confidence in a particular elected
official, or reassignment of duties as authorized by
state law, this policy provides definitions and
procedures related to two types of actions:
admonition and censure.

III. Admonition
An admonition of an elected official is informal in
nature. An admonition may be issued in response
to a particular alleged Violation and may be issued
by the Council without any findings of fact
regarding allegations. As an admonition it is by its
nature a warning or reminder, the Council is not
required to conduct an investigation or separate

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CITY OF HEMET

DRAFT ADMONITION/CENSURE POLICY

hearings to determine whether the allegation is
true. The Council recognizes the right to criticize is
protected by the First Amendment, and that the
Council may do so as a body.

IV. Censure
Censure is an official reprimand or condemnation
made by the Council in response to specified
conduct by an elected official of the City. Censure
is disciplinary in nature and requires the formal
adoption of a resolution setting forth the elected
official’s alleged Violation(s). Although not
required, censure could involve an investigation
and it must protect the due process rights of the
elected official being investigated. Censure carries
no fine or suspension of the rights of the elected
official.

V. Procedure
A. Admonition. The Council may determine,
by a vote of a majority of its members, to
make an informal admonition at any
Council meeting during the Reports of
Councilmembers portion of the meeting.

The Councilmember moving the informal
admonition must state on the record the
basis for the informal admonition,
including the alleged Violation(s). After
receiving the motion, the Presiding
Officer shall ask for a second. If no
second is received, the motion shall not
be considered. If a second to the motion
to admonish is received, the City
Council shall, after discussion and
public comment, vote on whether to
make the informal admonition.

The vote on the informal admonition shall
then be entered into the minutes by the City
Clerk and shall state the following:

1. The name of the elected official
admonished and the particular

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CITY OF HEMET

DRAFT ADMONITION/CENSURE POLICY

type of behavior that is alleged to
be Violation(s); and

2. Any direction given to the elected
official to correct the behavior that
is alleged to be Violation(s).

B. Censure. The Council may, as part of a
public hearing item placed on the
agenda at a regular meeting of the
Council, discuss and take action on to
formally censure an elected official. The
City Clerk shall provide a formal notice
of the public hearing to the elected
official who is the subject of the
potential censure. The notice shall
contain the specific allegations and/or
charges on which the proposed censure
is based and the date and time that the
matter will be heard. At the hearing, the
Councilmembers who requested the
hearing shall have a cumulative total
time of no more than 10 minutes to state
the reason(s) they are requesting the
censure, and the elected official who is
the subject of the action shall have up to
10 minutes to respond. Following the
hearing, the Council may take action by
a majority vote of its members setting
forth its findings and decision.

The Council may direct the City Attorney to
prepare for adoption at the next regularly
scheduled Council meeting, a resolution of
censure that clearly sets forth the facts
supporting the allegations of misconduct
giving rise to the censure. A resolution of
censure may include the imposition of such
actions against the elected official that are
permitted by law, such as removal from a
Committee or Board, a vote of no
confidence in a particular elected official, or
reassignment of duties as authorized by
state law.

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City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 22 2022
Department: Finance
Submitted by: Christopher Lopez, City Manager
Lorena Rocha, Finance Director;

☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing

TITLE:

Adopt a Resolution of the City Council of the City of Hemet, California, Approving a Pension and Other Post Employment Benefits Rate Stabilization Policy

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, approving a Pension and Other Post Employment Benefits Rate Stabilization Policy.

BACKGROUND:

On November 10, 2020, Staff presented Council with options for funding the City's current Unfunded Liabilities related to PERS Retirement Funds and Other Post Employment Benefits (OPEB). At the meeting, Council and City Staff discussed the following funding options:

• Additional contributions sent directly to CalPERS and subject to their investment strategy • Issuing Pension Obligation Bonds
• Asking employees to contribute toward the employer portion of PERS contributions • Establishing a Section 115 Trust where Council has more control over investment strategy Council directed Staff to explore the establishment of a Section 115 Trust for Pension Obligations. The City currently has a Section 115 Trust with PARS for OPEB Obligations.

On January 25, 2022, Council discussed funding options for a Section 115 Trust. Council was presented with information on current Unfunded Liabilities for Pension and OPEB. Overall, the City has approximately $165 million in future liabilities for funding Pension and OPEB obligations.

Also at the January 25, 2022 meeting, the City Council was presented with several sample policies from surrounding agencies as well as a sample or draft policy for the City of Hemet. The various policies from different agencies included for discussion on January 25, 2022 were utilized to develop the draft City of Hemet policy presented on January 25, 2022.

16.C

Based on the discussion with Council on January 25, 2022, Hemet's policy was updated with seed fund information and annual contribution amounts updated in the policy attached to this staff report.

ANALYSIS:

At the January 25, 2022 meeting, Council directed staff to bring forward options for funding policies that include the following:

• $500,000 in seed money from the General Fund to open the Trust • Option A for annual contributions to include a contribution of 15% of a given year's surplus to fund the Pension Trust
• Option B for annual contributions to include a contribution of 30% of a given year's surplus to fund the Pension Trust
Both policies also include the following from the original City of Hemet sample policy:

• All funds shall contribute an equivalent of 5% of the annual pay-as-you-go cost of OPEB to the existing OPEB Trust

• If Fiscal conditions warrant, and until such time as the OPEB and Pension Unfunded Liabilities are fully amortized, it is the City’s policy to make an additional contribution to the Pension Trust to further pay down the liability. When there is General Fu nd projected budgetary operating savings, the City shall make an additional contribution into the Trust of no less than 10% of the projected savings from operating budgets.

In addition, the sample policies include the following Annual Withdrawal limitations:

In order to smooth the volatility of Pension and OPEB contribution costs while maintaining realistic and appropriate balances in the Trusts, the City adopts the following limitations on withdrawals:

Minimum Maximum
Pension $0 10% or less of CalPERS Annual
Required Contribution
OPEB $0 10% or less of Annual Required
Contribution

DISCUSSION:

Option A
Annual contributions to include a contribution of 15% of a given year's surplus to fund the Pension Trust from all eligible City Funds. For each of the examples below, actual surplus amounts for funds were taken from the last three fiscal years and used t o show examples of what a contribution of 15% of the surplus would look like in each year. Surplus amounts are considered unreserved fund balance after committed balances for items such as pre -paid items, 20% reserve requirement, PEG Fees, and Continuing Appropriations are deducted.

16.C

Fiscal Year General Fund
Surplus
15% of General
Fund Surplus
Measure U
Surplus
15% of Measure
U Surplus
FY2018-19 $829,831 $124,475 $4,386,048 $657,907
FY2019-20 $2,030,265 $304,540 $1,361,345 $204,202
FY2020-21 $7,943,056 $1,191,458 $2,635,903 $395,385

Fiscal
Year
Water
Fund
Surplus
15% of
Water
Fund
Surplus
Sewer/Storm
Fund
Surplus
15% of
Sewer/Storm
Fund
Surplus
Streets
Fund
Surplus
15% of
Streets
Fund
Surplus
FY2018-
19 $1,022,850 $153,428 $2,107,422 $316,113 $1,019,564 $152,935 FY2019-
20 $2,557,228* $383,584 $2,217,153 $332,573 $859,199 $128,880 FY2020-
21 $4,794,050 $719,108 $1,812,305 $271,846 $1,531,001 $229,650

*Water Fund Surplus for FY2019-20 excludes the one time receipt of settlement payment as that is not ongoing income.

Option B
Annual contributions to include a contribution of 30% of a given year's surplus to fund the Pension Trust from all eligible Ci ty Funds. For each of the examples below, actual surplus amounts for funds were taken from the last three fiscal years and used to show examples of what a contribution of 30% of the surplus would look like in each year.

Fiscal Year General Fund
Surplus
30% of General
Fund Surplus
Measure U
Surplus
30% of Measure U
Surplus
FY2018-19 $829,831 $248,950 $4,386,048 $1,315,814
FY2019-20 $2,030,265 $609,080 $1,361,345 $408,404
FY2020-21 $7,943,056 $2,382,916 $2,635,903 $790,770

Fiscal
Year
Water
Fund
Surplus
30% of
Water
Fund
Surplus
Sewer/Storm
Fund
Surplus
30% of
Sewer/Storm
Fund
Surplus
Streets
Fund
Surplus
30% of
Streets
Fund
Surplus
FY2018-
19 $1,022,850 $306,855 $2,107,422 $632,227 $1,019,564 $305,869 FY2019-
20 $2,557,228 $767,168 $2,217,153 $665,146 $859,199 $257,760 FY2020-
21 $4,794,050 $1,438,215 $1,812,305 $543,692 $1,531,001 $459,300

16.C

Staff Rate OPEB Pension for Policy and a adopt Council recommends respectfully Funding Stabilization and select Option A or Option B as the funding mechanism for future annual contributions.

PREVIOUS COUNCIL ACTION:

On November 20, 2020 Council directed Staff to explore Section 115 Trust options to assist in stabilizing Pension and OPEB Costs.

On January 25, 2022, Council directed staff to bring forward options for funding policies that include the following:

• $500,000 in seed money from the General Fund to open the Trust • Option A for annual contributions to include a contribution of 15% of a given year's surplus to fund the Pension Trust
• Option B for annual contributions to include a contribution of 30% of a given year's surplus to fund the Pension Trust

STRATEGIC PLAN INTEGRATION:

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 1: Operate in a financially sustainable manner.

Objective 3: Provide Council with policies that are consistent while lessening liabilities.

It aligns with the specific action: Provide Council with a policy for dealing with OPEB/PERS costs.

FISCAL IMPACT:

There is no fiscal impact in the current year related to the establishment of this policy. Should Council adopt a Funding Policy, Seed Funds will be deposited at the start of the new Fiscal Year and included in the FY22/23 Budget Document.

Future annual contributions will be included in the upcoming year's budget after the year -end audit is completed and the surplus amounts are certified.

ALTERNATIVE(S):

Council can elect not to establish a Funding Policy for Rate Stabilization of Pe nsion and OPEB and continue to fund PERS Unfunded Liability per the PERS Amortization Schedule and the current OPEB Trust from Fund Balance in the OPEB Fund.

ATTACHMENT(S):

Attachment 1: Pension and OPEB Rate Stabilization Policy Resolution Attachment 2: Pension Rate Stabilization Policy 15%
Attachment 3: Pension Rate Stabilization Policy 30%

16.C

CITY OF HEMET
Hemet, California
RESOLUTION NO. 2022-XXX

A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF

HEMET, CALIFORNIA

APPROVING A PENSION AND

OTHER POST EMPLOYMENT

BENEFITS (OPEB) RATE

STABILIZATION POLICY

WHEREAS, the City has 2 CalPERS Retirement
plans for its employees. There is one plan for all sworn safety personnel and another for non-sworn or
miscellaneous employees; and
WHEREAS, The City also has Other Post
Employment Benefits (OPEB) liability that consists of
medical, dental, and vision benefits promised to employees who were hired by the City prior to 1998. While the City no longer offers this benefit to employees hired from 1998 to present, the City still has an obligation to those retirees who qualified for these plans to receive lifetime medical benefits; and
WHEREAS, The City has approximately $165 million
in future liabilities for funding these Pension and OPEB obligations; and

16.C

WHEREAS, On January 25, 2022, Council discussed
funding options for a Section 115 Trust. Council was
presented with information on current Unfunded Liabilities for Pension and OPEB; and
WHEREAS, Council directed staff to bring forward
options for funding policies that include the following:
•$500,000 in seed money from the General Fund to
open the Trust
•Option A for annual contributions to include a
contribution of 15% of a given year's surplus to fund
the Pension Trust
•Option B for annual contributions to include a
contribution of 30% of a given year's surplus to fund
the Pension Trust; and
WHEREAS, City staff presented Council with sample
contributions under each option.

NOW, THEREFORE, THE CITY COUNCIL OF THE

CITY OF HEMET DOES HEREBY RESOLVE,
DETERMINE, FIND AND RESOLVE: To adopt Option A or
Option B as a Pension and Other Post Employment Benefits (OPEB) Stabilization Policy and have the adopted policy attached as Exhibit A.

16.C

PASSED, APPROVED AND ADOPTED this 22 nd day of
February 2022.
____________________________
Malcolm Lilienthal,
Mayor
ATTEST: APPROVED
AS TO FORM:
_____________________________
________________________________
John Paul Maier, City Clerk Steven Graham, City
Attorney
State of California )
County of Riverside )
City of Hemet )
I, John Paul Maier, City Clerk of the City of Hemet,
do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 22 nd day of February
2022, and was passed by the following vote:

AYES: Council Members:

NOES: Council Member:

ABSTAIN: Council Member:

ABSENT: Council Member:

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_________________________________
John Paul Maier, City Clerk

16.C

Purpose
The purpose of this Pension Rate Stabilization Program (PRSP) and Other Post Employment Benefits (OPEB) Funding Policy (“Policy”) is to establish a methodology and a process for funding current and future costs associated with the City’s contractual obligations to provide pension and retiree medical benefits as set forth in the City’s labor agreements.

Adoption and Implementation
The City Council is responsible for adopting the Pension Rate Stabilization Program (PRSP) and Other Post-Employment Benefits (OPEB) Funding Policy and for approving any significant revision. The City Manager, or his/her designee, is responsible for developing administrative procedures, as needed, to implement the Policy. In this role, the City Manager, or his/her designee, is authorized to make minor administrative changes in the Policy as long as they are intended to carry out the purpose of this Policy and will not have any significant policy impact. The City Council will review and approve this policy via resolution, as needed, to ensure it meets the current and future needs of the City.

Initial Set Up
The City shall establish an Internal Revenue Service Code Section 115 approved irrevocable trust to achieve a higher rate of return on investments than that earned on the pooled investment portfolio or LAIF. Once the City transfers funds into such a trust, they can only be utilized for payment of employee pension or OPEB costs. After the trust is set up with (Trust Administrator), money currently invested in the OPEB Trust will be transferred over to the new combination Pension/OPEB Trust and shall be allocated entirely to the PRSP OPEB account.

The following outlines the governance and administration of the proposed Trust:

City Council has the authority to establish the Trust and define policies for the administration of the Trust funds.

City of Hemet

__________________PENSION/OPEB STABILIZATION POLICY

16.C

City Manager and staff have overall responsibility for the Trust funds and will develop and manage procedures in accordance with the City Council’s adopted policies.

Trust Administrator keeps plan documents current to ensure that they reflect the substantive plan and provides ongoing consulting, reporting and plan accounting records.

Trustee will be the plan’s trustee and custodian and will safeguard the assets in the Trust, hold the investment securities for safekeeping and make disbursements on request.

Investment Manager will recommend investment portfolio allocations based upon the Pension/OPEB Trust Funds’ adopted investment policies and manage those assets accordingly.

Trust Administrator
Trust Administrator will establish an irrevocable trust in compliance with the requirements of Section 115 of the Internal Revenue Code.

Trustee
Any contributions made to the program are held and invested by a trustee. The trustee duties include:

1. Safeguarding assets for the benefit of retirees;

2. Providing oversight protection of the investments;

3. Custodian of the assets; and

4. Disbursing funds to pay for pension costs and/or retiree healthcare premiums.

Investment Manager
Investment Manager assists the City with selecting investment strategy depending on what rate of return the City expects to earn and level of risk tolerance the City is willing to take. Investment Manager provides annual review of the investment portfolio and asset allocation as well as takes on fiduciary responsibility for the City’s pension and OPEB assets management.

Asset Allocation Investment Strategy
The Trust Administrator provides flexibility to the City in the selection of the investment strategy for its funds in the Trust, giving the City control on target yield and level of risk on its investments. Within the Trust, the City has the option

16.C

of pre-funding either or both of the Pension and OPEB accounts. In either case, the City has the ability to select one of five Investment Options that best suits its desired or expected return on its investments in the Trust. Each Investment Option allocates the assets in varying investment combinations of equity, fixed income, and cash. With each Investment Option, as the expected rate of return increases so does the assumed risk. The Asset Allocation Strategies and the corresponding Investment Options shall be determined by the designated Trust Administrator.

The City Manager, or his/her designee and the Investment Manager will select the most appropriate investment option for each account (Pension and OPEB) in the Trust.

This Policy recognizes that there will be investment market place volatility and that actual economic and demographic experience will differ from assumed experience. Accordingly, this Policy is intended to provide flexibility to smooth such volatility and experience in a reasonable, systematic and financially sound manner.

Annual Contributions
In order to establish realistic and appropriate thresholds for annual contributions, the City adopts the following requirement for contributions to be shared among all City Funds proportionate with the number of employees allocated to these funds in any given year:

To establish the Section 115 Trust for Pension Rate Stabilization, a one-time contribution of $500,000 will be deposited as seed funding from the General Fund at the start of Fiscal Year 2022-2023.

Effective Fiscal Year 2023-2024 and every year thereafter until amended by Council;

1. All Funds shall contribute 15% of a given year’s surplus to fund the Pension Trust.

2. All Funds shall contribute an equivalent of 5% of annual pay-as-you-go cost of OPEB to the OPEB Trust.

3. If Fiscal conditions warrant, and until such time as the OPEB and Pension Unfunded Liabilities are fully amortized, it is the City’s policy to make an additional contribution to the Pension Trust to further pay down the liability. When there is General Fund Police and/or Fire Department projected budgetary operating savings, the City shall make an additional contribution into the Trust of no less than 10% of the projected savings

16.C

from operating budgets.

Annual Withdrawals
In order to smooth volatility of Pension and OPEB contribution costs while maintaining realistic and appropriate balances in the Trusts, the City adopts the following limitations on withdrawals:

Minimum Maximum
Pension $0 10% or less of CalPERS Annual
Required Contribution
OPEB $0 10% or less of Annual Required
Contribution

16.C

Purpose
The purpose of this Pension Rate Stabilization Program (PRSP) and Other Post Employment Benefits (OPEB) Funding Policy (“Policy”) is to establish a methodology and a process for funding current and future costs associated with the City’s contractual obligations to provide pension and retiree medical benefits as set forth in the City’s labor agreements.

Adoption and Implementation
The City Council is responsible for adopting the Pension Rate Stabilization Program (PRSP) and Other Post-Employment Benefits (OPEB) Funding Policy and for approving any significant revision. The City Manager, or his/her designee, is responsible for developing administrative procedures, as needed, to implement the Policy. In this role, the City Manager, or his/her designee, is authorized to make minor administrative changes in the Policy as long as they are intended to carry out the purpose of this Policy and will not have any significant policy impact. The City Council will review and approve this policy via resolution, as needed, to ensure it meets the current and future needs of the City.

Initial Set Up
The City shall establish an Internal Revenue Service Code Section 115 approved irrevocable trust to achieve a higher rate of return on investments than that earned on the pooled investment portfolio or LAIF. Once the City transfers funds into such a trust, they can only be utilized for payment of employee pension or OPEB costs. After the trust is set up with (Trust Administrator), money currently invested in the OPEB Trust will be transferred over to the new combination Pension/OPEB Trust and shall be allocated entirely to the PRSP OPEB account.

The following outlines the governance and administration of the proposed Trust:

City Council has the authority to establish the Trust and define policies for the administration of the Trust funds.

City of Hemet

__________________PENSION/OPEB STABILIZATION POLICY

16.C

City Manager and staff have overall responsibility for the Trust funds and will develop and manage procedures in accordance with the City Council’s adopted policies.

Trust Administrator keeps plan documents current to ensure that they reflect the substantive plan and provides ongoing consulting, reporting and plan accounting records.

Trustee will be the plan’s trustee and custodian and will safeguard the assets in the Trust, hold the investment securities for safekeeping and make disbursements on request.

Investment Manager will recommend investment portfolio allocations based upon the Pension/OPEB Trust Funds’ adopted investment policies and manage those assets accordingly.

Trust Administrator
Trust Administrator will establish an irrevocable trust in compliance with the requirements of Section 115 of the Internal Revenue Code.

Trustee
Any contributions made to the program are held and invested by a trustee. The trustee duties include:

1. Safeguarding assets for the benefit of retirees;

2. Providing oversight protection of the investments;

3. Custodian of the assets; and

4. Disbursing funds to pay for pension costs and/or retiree healthcare premiums.

Investment Manager
Investment Manager assists the City with selecting investment strategy depending on what rate of return the City expects to earn and level of risk tolerance the City is willing to take. Investment Manager provides annual review of the investment portfolio and asset allocation as well as takes on fiduciary responsibility for the City’s pension and OPEB assets management.

Asset Allocation Investment Strategy
The Trust Administrator provides flexibility to the City in the selection of the investment strategy for its funds in the Trust, giving the City control on target yield and level of risk on its investments. Within the Trust, the City has the option

16.C

of pre-funding either or both of the Pension and OPEB accounts. In either case, the City has the ability to select one of five Investment Options that best suits its desired or expected return on its investments in the Trust. Each Investment Option allocates the assets in varying investment combinations of equity, fixed income, and cash. With each Investment Option, as the expected rate of return increases so does the assumed risk. The Asset Allocation Strategies and the corresponding Investment Options shall be determined by the designated Trust Administrator.

The City Manager, or his/her designee and the Investment Manager will select the most appropriate investment option for each account (Pension and OPEB) in the Trust.

This Policy recognizes that there will be investment market place volatility and that actual economic and demographic experience will differ from assumed experience. Accordingly, this Policy is intended to provide flexibility to smooth such volatility and experience in a reasonable, systematic and financially sound manner.

Annual Contributions
In order to establish realistic and appropriate thresholds for annual contributions, the City adopts the following requirement for contributions to be shared among all City Funds proportionate with the number of employees allocated to these funds in any given year:

To establish the Section 115 Trust for Pension Rate Stabilization, a one-time contribution of $500,000 will be deposited as seed funding from the General Fund at the start of Fiscal Year 2022-2023.

Effective Fiscal Year 2023-2024 and every year thereafter until amended by Council;

1. All Funds shall contribute 30% of a given year’s surplus to fund the Pension Trust.

2. All Funds shall contribute an equivalent of 5% of annual pay-as-you-go cost of OPEB to the OPEB Trust.

3. If Fiscal conditions warrant, and until such time as the OPEB and Pension Unfunded Liabilities are fully amortized, it is the City’s policy to make an additional contribution to the Pension Trust to further pay down the liability. When there is General Fund Police and/or Fire Department projected budgetary operating savings, the City shall make an additional contribution into the Trust of no less than 10% of the projected savings

16.C

from operating budgets.

Annual Withdrawals
In order to smooth volatility of Pension and OPEB contribution costs while maintaining realistic and appropriate balances in the Trusts, the City adopts the following limitations on withdrawals:

Minimum Maximum
Pension $0 10% or less of CalPERS Annual
Required Contribution
OPEB $0 10% or less of Annual Required
Contribution

16.C