8.A
CITY OF HEMET RESOLUTION NO. 2023-XXX 2
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WHEREAS, The City’s FY 2023-2024 budget includes an appropriation of $50,000 from Undesignated General Fund Reserves.
WHEREAS, The City Council Ad Hoc Committee has recommended that an additional $150,000 be appropriated to the program from Undesignated General Fund Reserves.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
SECTION 1. The above recitals are all true and correct.
SECTION 2. Approves the City of Hemet Storefront Vandalism Relief Program.
SECTION 3. Authorizes the Administrative Services Director to establish an additional appropriation of $150,000 to be appropriated from Undesignated General Fund Reserves to the Storefront Vandalism Relief Program.
SECTION 4. Authorizes the City Manager to execute all documents related to this agreement.
8.A
CITY OF HEMET RESOLUTION NO. 2023-XXX 3
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PASSED, APPROVED AND ADOPTED this XXth day of Month, 2023. ____________________________
Joe Males, Mayor
ATTEST:
_____________________________
John Paul Maier, City Clerk
8.A
CITY OF HEMET RESOLUTION NO. 2023-XXX 4
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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 XXth day of MONTH, 2023, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
John Paul Maier, City Clerk
8.A
Draft City of Hemet Storefront Vandalism
Relief Program
Program Overview
In support of the Hemet City Council’s Strategic Plan and Fiscal Year 2023-24 Safe and Clean Streets Initiative, the Storefront Vandalism Relief Program supports small local businesses and non-profits by mitigating financial hardships associated with vandalism. Applications for the Relief Program will be considered on a first-come, first-served basis. Funds are limited and are not guaranteed or set aside. The Relief Program is a reimbursement program for repair expenses not covered by insurance proceeds.
Upon completing an application review, a letter will be sent to the applicant detailing the approval or denial of the application and the amount of funding approved. The City Council has allocated $50,000 for this program the Ad Hoc Committee is recommending an additional $150,000 be allocated for a total of $200,000.
Award Amounts
•This grant program provides up to $7,500 for
unreimbursed vandalism-related expenses.
•The maximum award amount will be determined by
City staff after a complete review of an application.
Eligible Uses of Funds
•Storefront repairs (e.g. broken windows, broken
doors, broken locks, etching on windows, graffiti, etc.) •Insurance deductibles
Eligibility
•Must have an active City of Hemet Business License.
•Must have an office or retail storefront operating (or temporarily closed due to vandalism or property
damage sustained) in the City of Hemet.
•Must not have any active or unresolved violations,
delinquent bills, or outstanding liens issued by the
City at the time of application submittal.
8.A
•Must be a private for-profit business including sole
proprietorships or 501(c)(3 non-profit organizations.
•Must have less than 200 employees.
•Must have less than $8 million in gross revenue in
2022.
•Must not have previously been made whole for
damages by another entity (insurance carrier, for
example).
•Must not be a formula retail business (except
franchisees with less than $8 million in gross revenue
in 2022).
•Damage must have occurred on or after January 1,
2023.
•Only one application per business per semi-annual
calendar year (January - June, July - December) will
be permitted until funding is no longer available. This application may include multiple incidents.
•Applications containing funding requests for work
performed by a Contractor must have been completed
by a Contractor holding an active California
Contractor’s License issued by the California State
Licensing Board (CSLB).
Required Documentation
•Itemized, detailed receipts for damage repair(s)
•Police report for all vandalism incidents excluding
graffiti
•Proof of insurance claim and deductible amount paid
(if applicable)
•Photo(s) of damaged storefront/office and photo(s) of
repairs completed
•Valid government-issued photo Identification.
Examples include:
oDriver’s License
oState Identification card
oMilitary Identification Card
oUS Passport or Passport Card
•Active City of Hemet Business License
•Provide a current W-9
•Contractor name and license number (if applicable)
•Relevant state and Federal tax filings, as applicable.
8.A
Process
Applications will be accepted on a first-come, first-served basis and reviewed for eligibility until funds are depleted. The City anticipates notifying applicants within 20 business days of application of an approval/denial decision. Participants will be offered the opportunity for a free security enhancement review by the City’s Police Department.
8.A
CITY OF HEMET
Storefront Vandalism Relief Program
8.A
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Sep 26 2023
Department: City Attorney
Submitted by: Mark Prestwich, City Manager
Steven Graham, City Attorney;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing
TITLE:
An Ordinance of the City Council of the City of Hemet, California, Amending Article XI (Maintenance, Security, And Rehabilitation of Abandoned or Vacant Properties) of Chapter 14 (Buildings and Building Regulations)
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Introduce by title only, waive full reading, and authorize the City Clerk to place the Ordinance for adoption on the next available regular City Council meeting agenda.
BACKGROUND:
The City Attorney's Office has conducted a comprehensive review of the City of Hemet's existing Vacant Building Ordinance adopted in 2013. Based on that review, our office recommends adopting an updated ordinance with the following key changes:
The recommended ordinance places less emph asis on foreclosure status (primarily a concern for single-family residential properties). Instead, it focuses on the physical characteristics of the structure, including failure to complete construction, nuisance activities, and visual appearance. This br oadened scope will allow the City to address a wider range of property -related issues and potential blights, particularly in commercial zones. This expanded definition also expands the registration requirement, which allows the City to track and monitor vacant buildings more accurately and promptly, enabling City staff to respond to potential issues more quickly.
One of the most significant enhancements in the new ordinance is the recommended implementation of a monitoring program for commercial properties. Through the direct involvement of the Enforcement Official, the City can ensure better compliance with regulations and prevent misuse or neglect of commercial properties that are vacant or under foreclosure. This program will ultimately improve the City's commercial zones' attractiveness and usability. The program also establishes a vacant commercial building monitoring fee.
8.B
The newly proposed ordinance also introduces a comprehensive boarding permit system, providing clear and stringent standards for securing vacant buildings. This approach helps maintain the visual appeal of our neighborhoods, prevent unsecured buildings fro m becoming potential havens for illegal activities, and ensure the safety of first responders in emergencies.
Lastly, the recommended ordinance presents more explicit criminal and administrative penalties for violations, ensuring the owners' responsibility and compliance with regulations. It also outlines joint and several liability for all owners, strengthening our legal stance in enforcing these rules.
In conclusion, the recommended changes to the Vacancy Building Ordinance will provide the City with more substantial tools and means to monitor, control, and enhance the management of vacant buildings, which would ultimately lead to a safer, cleaner, and more visually appealing community.
DISCUSSION:
Based on City Council feedback at the July 11, 2023 meeting, the City Attorney's Office amended the language in 14-510(f) to establish an objective standard for extensions of board-up permits to limit the Building Official's discretion. Additionally, the references to the performance improvement plan (PIP) were removed. The City Attorney also amended the definition of "state of disrepair" to include removed or missing exterior walls and or roof based on feedback at the meeting.
STRATEGIC PLAN INTEGRATION:
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 2: Explore and implement homelessness solutions for the City of Hemet.
Objective 3: Increase Public Safety visibility and response.
FISCAL IMPACT:
None.
ATTACHMENT(S):
Attachment 1: Ordinance Vacant Buildings
8.B
CITY COUNCIL ORDINANCE NO. 2023-xxx
CITY OF HEMET
HEMET, CALIFORNIA
ORDINANCE NO. 2023-xxx
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF HEMET, CALIFORNIA, AMENDING
ARTICLE XI (MAINTENANCE, SECURITY, AND
REHABILITATION OF ABANDONED OR VACANT
PROPERTIES) OF CHAPTER 14 (BUILDINGS AND
BUILDING REGULATIONS)
THE CITY COUNCIL OF THE CITY OF HEMET DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The adoption of this ordinance is exempt from review under the California Environmental Quality Act
(CEQA) pursuant to the following, each a separate and
independent basis: CEQA Guidelines, Section 15378 (not a project) and Section 15061 (b)(3) (no significant
environmental impact).
SECTION 2. CHAPTER 14, ARTICLE XI is hereby amended
to read as follows:
ARTICLE XI
VACANT BUILDINGS AND BOARDING
REGULATIONS
14-501 Purpose.
14-502 Severability.
14-503 Definitions.
14-504 Scope.
14-505 Service requirements.
14-506 Registration requirement for vacant
buildings.
14-507 Maintenance requirements for
vacant buildings.
14-508 Local property management
requirement.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
14-509 Monitoring program for commercial
properties.
14-510 Boarding permits and regulations.
14-511 Enforcement.
14-501 Purpose.
The purpose of this Article is to ensure all vacant and boarded buildings comply with minimum property
maintenance requirements, to encourage proactive and
preventive maintenance of properties, to ensure
maintenance issues are quickly and efficiently remedied, and to promote the health, safety, and welfare of the people of the City of Hemet.
14-502 Severability.
If any provision of this Ordinance and Article is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, that invalidity will not affect the remaining provisions of this Ordinance and Article, which can be implemented without the invalid provisions, and to this end, the provisions of this Ordinance and Article are declared to be severable.
14-503 Definitions.
As used in this Article, the following terms and phrases are defined as follows:
(a) “Active Construction” means that (i) construction activity is taking place at a property without any pause, interruption, or suspension greater in duration than 45 days, and (ii) the owner, owner of record, or a duly
authorized agent, servant, assign, employee, or contractor acting or providing services on behalf thereof, is on-site at a property that is under construction, actively engaged in construction, maintenance, demolition, or related
administrative activity, without any pause, interruption, or suspension greater in duration than 15 days.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(b) “Blight” or “Blighted property” means any one or more of the following conditions or activities:
(1) Abandoned Building or Structure.
(i) A building or structure which is not being
inhabited, occupied, or used and which is unsecured. For purposes of this Article, a building or structure is
unsecured when the public can gain entry without the
consent of the owner; or
(ii) A partially constructed, reconstructed, or
demolished building or structure upon which work is
abandoned. Work is deemed abandoned when there is no
valid and current building or demolition permit, or when there has not been any substantial work on the project for a period of six (6) months or more.
(2) Attractive Nuisance. Property which is in an
unsecured state so as to potentially constitute an attraction to children, a harbor for vagrants, criminals, or other unauthorized persons, or so as to enable persons to use the property for the purpose of committing a nuisance or
unlawful act.
(3) A building or structure which is in a state of disrepair:
(i) Exterior wall and/or roof coverings which are missing, have been removed, or have become deteriorated and do not provide adequate weather protections, resulting in termite infestation and/or dry rot.
(ii) Broken or missing windows or doors which
constitute a hazardous condition or a potential attraction to trespassers.
(iii) Building exteriors, walls, fences, signs, retaining walls, driveways, walkways, sidewalks, or other structures
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CITY COUNCIL ORDINANCE NO. 2023-xxx
on the property which are broken, deteriorated, or
substantially defaced, to the extent that the disrepair is visible from any public right-of-way or visually impacts neighboring public or private property or presents an
endangerment to public safety.
(iv) Building exteriors, walls, fences, signs, retaining walls, driveways, walkways, sidewalks, or other structures on the property which have been repainted in such a
manner that the appearance may be further deteriorated or substantially defaced.
(4) Property Inadequately Maintained.
(i) Overgrown, diseased, dead, or decayed trees,
weeds, or vegetation that: (1) are likely to harbor rats, pigeons, vermin, and other nuisances; or (2) substantially detract from the aesthetic and property values of
neighboring properties; or (3) constitute a fire hazard or other condition that is dangerous to the public health, safety, or welfare; or (4) are likely to attract use as shelter by transients.
(ii) Solid waste, which includes “garbage,” “refuse,” and “rubbish,” and all “solid waste” as may be defined in this Code, constitutes blight and blighted property in the following situations: (1) the accumulation of solid waste is visible from a street or public right-of-way, is not enclosed in a City-approved container, and is present for more than 72 consecutive hours; or (2) the accumulation of solid
waste is being stored or disposed of in a manner that would allow the material to be transported by wind or otherwise onto or upon any public street, public right-of-way, or neighboring property, unless the method of storage or
disposal is specifically allowed by this Code.
(5) Any swimming pool, pond, or other body of
water which is abandoned, unattended, unfiltered, drained with no cover to prevent the existence of a hazard, or not otherwise maintained, resulting in polluted water.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
“Polluted water” is defined for the purpose of this Article, as water which contains organic growth, including algae, remains of rubbish, refuse, debris, papers, and any other foreign matter or materials, which, because of its nature or locations, constitutes an unhealthy or unsafe condition.
(c) “Building” means any structure, including, but not limited to, any residential, commercial, industrial, or assembly structure, approved for occupancy on either a lot of record or within a single project approved by the City pursuant to the City’s Zoning Code.
(d) “Commercial Properties” means all properties in the City that are not developed for solely single family
residential uses. The term “commercial properties”
includes apartment buildings that include five or more
rental units.
(e) “Development Related Agreement” means an
agreement between the City and at least one other person or entity whereby an owner secures the authorization and approval of the City, whether through a duly authorized written contract, or via a land use permit or entitlement approval, to pursue a development or redevelopment
project at a property where one or more abandoned
buildings or structures, and/or vacant building is located.
(f) “Downtown” means the area bounded by the
Downtown Specific Plan (SP 16-001)
(g) “Enforcement Official” means the City Manager, Building Official, the Chief of Police, the Fire Chief, or their respective designees.
(h) “Evidence of Vacancy” means any building in the context of the totality of circumstances that would lead a reasonable Enforcement Official to believe that the
building is vacant or occupied by a person without a legal right of occupancy. Such real property conditions include, but are not limited to: overgrown or dead vegetation;
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CITY COUNCIL ORDINANCE NO. 2023-xxx
accumulation of newspapers, circulars, flyers, or mail; past due utility notices or disconnected utilities; accumulation of trash, junk, or debris; the absence of window coverings such as curtains, blinds, or shutters; the absence of
furnishings or personal items consistent with residential habitation; or statements by neighbors, passersby, delivery agents, or government employees that the property is
vacant.
(i) “Local” means within 40 driving miles of the
building, structure, or real property in question.
(j) “Out of Area” means in excess of 40 road or driving miles of the building, structure, or real property in
question.
(k) “Owner” means any person having legal or
equitable title or any interest in real property, including all persons shown as owners on the last equalized assessment roll of the Riverside County Assessor’s Office. An owner includes a person with power of attorney, an executor of estate, trustee, or who is a court appointed administrator, conservator, guardian, or receiver.
(l) “Person” means any natural person, partnership of any kind, corporation, limited liability company, association, joint venture, or other organization, however formed, as well as trustees, heirs, executors, administrators, or
assigns, or any combination of such persons.
(m) “Vacant building” means a building where at least thirty-five percent (35%) of the total floor area within the building is not lawfully occupied.
14-504 Scope.
(a) Applicability. The provisions of this Article shall apply generally to all improved real property throughout
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CITY COUNCIL ORDINANCE NO. 2023-xxx
the City of Hemet where any of the conditions specified in this Article are found to exist.
(b) Regulations Cumulative. The regulations provided by this Article are cumulative to each other and to any other available under City, State, or federal law.
(c) Authority to Enforce Article. The Enforcement
Official is authorized to administer and enforce this
Article. The Enforcement Official may adopt supplemental regulations or policies to implement and interpret this Article. These regulations or policies must conform with the purpose of this Article.
(d) Development Agreement Exemption. In the event
that the City enters a development related agreement with the owner or developer of a property incorporating the
partial or total demolition, repair, reconstruction, or preservation of a vacant building or structure the vacant building or structure in question is exempt from
application of this Article, provided that the property is maintained in strict accord with the terms and conditions of the development related agreement. In the event that the City Manager, or his or her designee, determines in the City Manager’s sole discretion the owner or developer of a property is in default with respect to any term or condition of a development related agreement through which any
building or structure is exempt from application of this Article, the City may issue written notice to that owner that if the default in question is not cured in its entirety within 30 days of the issuance, that the exemption provided by this Section shall be revoked, and that this Article shall immediately become fully applicable to the building or
structure in question.
14-505 Service requirements.
(a) Except as otherwise provided, any notice required to be served under this Article must be completed by either:
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(1) Personal service; or
(2) Service by United States mail addressed to
the person to be notified at the address as listed in the last equalized assessment roll. Service by mail is complete at the time of deposit in the mail. Failure of any person to receive a properly-addressed notice by mail shall not
invalidate any action, decision, determination, or
proceeding under this Article.
14-506 Registration requirement for vacant
buildings.
(a) Registration Required. An owner of a vacant
building must register their property with the Enforcement Official within 10 days of the building becoming vacant or being deemed vacant. If any building shows evidence of
vacancy, it is hereby deemed vacant.
(b) Application Required. Any person seeking to
register a vacant building must submit a complete, written application to the City using a form adopted by the City for that purpose. Submission of an application for registration does not authorize the maintenance of a vacant building until such registration has been accepted by the City.
(c) Application Contents. The application for
registration pursuant to this Section must contain or be accompanied by the following:
(1) The name and address of each owner and the
local property management company, if any, responsible
for the security, maintenance, and marketing of the
property in question.
(2) A maintenance plan describing and
documenting how the maintenance requirements of this
Article will be complied with.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(3) Documentation and information showing
compliance with the local property management company
requirements of this Article.
(d) Annual Registration. The registration pursuant to this Section must be renewed annually.
(e) Fee. The City Council may establish by resolution, and from time to time may amend, an annual registration fee. An application for registration or reregistration must be accompanied by the submission of the required fee.
Registration fees are nonrefundable and may not be
prorated.
(f) Notice City of Changes to Registration. Any person, partnership, association, corporation, fiduciary, or other legal entity that has registered a property under this Article must notify the Enforcement Official in writing of any
change of information contained in the registration within 10 days of the change.
14-507 Maintenance requirements for
vacant buildings.
(a) Maintenance Required. It is unlawful for any owner to maintain any improved property in violation of the
provisions of this Article. All vacant buildings, residential and commercial, must be maintained in compliance with
the Hemet Municipal Code.
(b) Additional Requirements for Commercial
Properties. Any vacant commercial building must be
maintained in accordance with the following requirements:
(1) All doors, windows, and other openings are
secure or boarded in accordance with this Article.
(2) Any temporary site perimeter fencing is
placed in connection with a building permit.
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(3) The property must be continuously
monitored, as follows:
(i) Buildings with fire sprinkler systems must be maintained in working order.
(ii) Buildings with a centralized and registered fire and burglar alarm system must be maintained in working order, and monthly reports showing continued and active service shall be submitted to the Enforcement Official.
(iii) Buildings without fire sprinkler systems or fire alarm or burglar alarm systems shall be provided with
continuous physical monitoring by means of an onsite
patrol. “Continuous physical monitoring” shall mean the use of a licensed security agency operating in the City of Hemet and providing regular surveillance of the vacant
building as part of the agency’s security route.
(4) A monthly report from the property owner or
the property owner’s representative or property
management company that identifies each date inspections were performed for the reporting period and a statement affirming that the building interior, exterior, and the entire site was inspected, the landscaping is maintained in good condition, and that all buildings are secure.
(c) Additional Requirements for Commercial Buildings in Downtown. In addition to the requirements of the prior Section, any commercial building located in Downtown
must participate in the Property Improvement Program.
(d) Requirements For Buildings Vacant More Than 90 Days. No person may allow a building designed for human use or occupancy to stand vacant for more than 90 days, unless the person establishes by substantial evidence to the reasonable satisfaction of the Enforcement Official that at least one of the following applies:
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(1) Active Construction. The building is the
subject of Active Construction for repair or rehabilitation in order to make the building habitable, and the owner is progressing diligently to complete such repair or
rehabilitation within one year of the issuance of the
building permit related to such repair or rehabilitation.
(2) Active Marketing. The building or property
contains no Hemet Municipal Code violations, is ready for occupancy, and is actively being offered for sale, lease, or rent.
(3) Active Maintenance. The person is actively
maintaining and monitoring the building, which includes:
(i) Maintenance of landscaping and plant materials in good condition.
(ii) Maintenance of the exterior of the building
including, but not limited to, paint, finishes, windows, doors, and signage in good condition and in compliance
with this Article.
(iii) Any sign which advertises a use or business not being made on the premises, the name of the owner or
user, or which identifies a product, an interest, service, or entertainment not available on the premises is prohibited.
(iv) Regular removal of all exterior trash, debris, and graffiti.
(v) Prevention of criminal activity on the premises including, but not limited to, use and sale of controlled substances, prostitution, and criminal street gang activity.
(vi) Any windows screened: (1) in a manner authorized by this Code; or (2) election upon registration of a vacant building to participate in the Property Improvement
Program.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(vii) Securing the property in a manner so as not to be accessible to unauthorized persons. Secure manner
includes, but is not limited to, closing and locking of windows, doors (walk-through, sliding and garage), gates, and any other opening that may allow access to the interior of the property or structure(s), or the erection of temporary construction fencing approved by the Enforcement Official for not more than 180 days. In the case of broken
windows, securing includes the replacement of the broken window.
(viii) Maintaining sufficient utility services to provide power for any alarm or security system and to properly
irrigate all landscaping on the property.
(ix) Compliance with any alternative or additional
methods of securing a building in the Downtown as may
be imposed by the Enforcement Official. Such methods
may include, but will not be limited to, security patrols, alarms, or other security requirements.
(x) The building or the lot on which the building is located, and the landscaping on such lot, does not
contribute to and is not likely to contribute to blight because the owner is actively maintaining and monitoring the building and the lot so that it does not contribute to blight.
(e) Insurance. The Owner shall maintain fire and
liability insurance coverage as determined necessary by the City’s Risk Manager. Any insurance policy shall require advanced, written notice to the Risk Manager in the event of cancellation of insurance or a reduction in coverage.
14-508 Local property management
requirement.
(a) Any owner located more than 40 miles by road from a property containing a vacant building that must be
registered, must retain a local property management
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CITY COUNCIL ORDINANCE NO. 2023-xxx
company with a business license in the City, and must be contracted to perform weekly inspections to ensure
compliance with the Hemet Municipal Code.
(b) The property must be posted with the name and
contact phone number of the local property management
company. The posting must be no less than 18″ X 24″,
must be of a font that is legible from a distance of 45 feet, and must contain the following: “THIS PROPERTY
MANAGED BY (LOCAL PROPERTY MANAGEMENT
COMPANY),” and “TO REPORT PROBLEMS OR
CONCERNS CALL (PHONE NUMBER).”
(c) The posting must be placed on the interior of a window facing the street to the front of the property so it is visible from the street, or secured to the exterior of the building facing the street of the front of the property so it is visible from the street. If no such area exists, the posting must be on a stake of sufficient size to support the posting, in a location that is visible from the street to the front of the property, and to the extent possible, not readily
accessible to potential vandalism. Exterior posting must be constructed of, and printed with weather resistant
materials.
(d) The local property management company must
inspect the property on a weekly basis to determine if the property is in compliance with the requirements of this Article and must perform all monitoring duties prescribed in this Article. If the property management company
determines the property is not in compliance with this
Article or any provision of the Hemet Municipal Code, it is the company’s duty to notify the owner and bring the
property into compliance.)
14-509 Monitoring program for commercial
properties.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(a) Monitoring Program Established. A program
monitoring commercial properties is hereby established.
The Enforcement Official is responsible for administering the monitoring program to enforce this Article.
(b) Monitoring Program Duties. The Enforcement
Official has the duty and responsibility to do the following pursuant to the monitoring program:
(1) Inspect properties in the City to identify
commercial buildings that are vacant.
(2) Order vacant commercial buildings to comply
with this Article and any other applicable codes.
(3) Order vacant commercial buildings that are
open and accessible to be secured against unlawful entry in accordance with this Article.
(4) Order the property on which the vacant
commercial building is located to be properly maintained or cleared of trash and debris.
(5) Initiate proceedings against the owner of any
vacant commercial building found to be in violation of this Article or any other applicable code.
(6) Maintain surveillance over vacant commercial
buildings so that timely code enforcement proceedings are commenced in the event the property becomes substandard or a nuisance.
(7) Establish and enforce rules and regulations
for the implementation and compliance with the Property Improvement Program.
(8) Identify blighted property and to initiate
proceedings against the owner of record of any blighted property for failure to remedy such blight.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(c) Fee Imposed. There is imposed upon every owner of a vacant commercial building monitored pursuant to this Article an annual vacant commercial building monitoring fee in an amount the City Council may establish by
resolution, provided that the fee shall not exceed the
estimated reasonable cost of monitoring the vacant
commercial building.
(d) Fee Procedure. If unpaid in connection with a
vacant building registration, a vacant commercial building monitoring fee may be billed and mailed to the owner of the property. Any owner aggrieved by the decision of the Enforcement Official relating to a vacant registration fee bill may appeal the decision to the City Hearing Officer in the manner described in Article II of Article 1. If the fee is not paid within 60 days following billing, the City Council may thereupon order that the fee be specially assessed
against the property involved. If the City Council orders that the fee be specially assessed against the property, it shall confirm the assessment and thereafter said
assessment may be collected at the same time and in the same manner as ordinary real property taxes are collected and shall be subject to the same penalties and the same procedure and sale in case of delinquency as provided for ordinary real property taxes. All laws applicable to the levy, collection, and enforcement of real property taxes are applicable to the special assessment. The City Council may also cause a notice of lien to be recorded. The notice shall, at a minimum, identify the record owner or possessor of the property, set forth the last known address of the record owner or possessor, a description of the real property
subject to the lien, and the amount of the fee.
14-510 Boarding permits and regulations.
(a) Boarding Permit Required. No person may erect, install, place, or maintain boards over the doors, windows, or other openings of any building or structure or otherwise
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CITY COUNCIL ORDINANCE NO. 2023-xxx
secure such openings without a valid a boarding permit
from the City.
(b) Boarding Permit Process. The Enforcement Official must issue a boarding permit required by this Section upon submission of a written application by the owner of the property upon payment of the required fee and upon
confirmation by the Enforcement Official that the boarding or other method of securing has been done in compliance with this Section.
(c) Boarding Permit Period of Validity. The boarding permit is valid for 90 days.
(d) Boarding Permit Extension. A boarding permit may be extended once, for a period of an additional 90 days, provided that the following conditions exist: (i) the
boarding is in compliance with this Section, (ii) the owner has submitted the request for extension within 10 days
after the expiration of the initial boarding permit period, (iii) the owner has complied with all prior orders and
notice from the City regarding the property, (iv) the owner simultaneously submits a detailed plan and timeline for correction, repair, and rehabilitation of the property, or a plan for the sale of the property with a provision in the sale requiring the correction, repair, or rehabilitation of the property.
(e) Boarding Permit Renewal for Good Cause. A
boarding permit may not be issued for a building that was previously boarded until one year after the date of
expiration of the previous boarding permit or extended
boarding permit, except the Enforcement Official may
renew a new boarding permit for a period of three months upon a showing of good cause, as determined in the
Enforcement Official’s sole discretion. “Good cause”
means a showing by the owner that the permit reissuance is necessary due to conditions or events beyond the owner’s control, such as inability to obtain financing, financial hardship, inability to locate a suitable buyer despite
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CITY COUNCIL ORDINANCE NO. 2023-xxx
diligent efforts, or unanticipated delays in construction. “Good cause” also means a showing that the owner
exercised reasonable and due diligence in attempting to complete the needed work or in attempting to sell, rent, or lease the property. Renewal shall require submission of a written application demonstrating good cause, payment of the boarding permit fee, and upon confirmation by the
Enforcement Official that the method of boarding or
securing of the building has been done in compliance with this Section.
(f) Limitation on Boarding Permit for Downtown. A
boarding permit may be issued for a building in Downtown only if the building has been damaged by fire, natural
disaster, or other emergency situation. Any such boarding permit is valid only for the period of time the Enforcement Official reasonably determines to be necessary to affect such repairs or rehabilitation, such time period not to exceed one year without approval by the City Manager or the City Manager’s designated Hearing Officer. The
Hearing Officer shall use the same hearing process and
standard as described in Section 105.5.3(4) of the Hemet Building Code.
(g) Boarding Permit Fees. The fees for the initial boarding permit, and the extension and the renewal permit, shall be as established from time to time by resolution of the City Council.
(h) Boarding Standards. The boarding or securing of the doors, windows, or other openings of any building must
comply with the following standards.
(1) Securing by Boarding. The boarding of doors,
windows, and other openings must comply with the
following requirements.
(i) Windows and similar openings must be boarded
with exterior-grade plywood of a minimum thickness of
3/4 inch or equivalent. Plywood must be secured by 2″x4″
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CITY COUNCIL ORDINANCE NO. 2023-xxx
or 4″x4″ crossmembers, secured to the plywood by 3/8
inch plated carriage bolts with washers on each end. Bolts and nuts used to secure the crossmember must be threaded to the correct length and tightened securely. A minimum of two crossmembers must be used on each window. Each
crossmember must be a continuous piece of lumber, and
each must extend at least one foot past the window
opening in each direction. Additional measures may be
required as deemed necessary in the sole discretion of the Enforcement Official.
(ii) Exterior doors must be boarded with exterior-grade plywood of a minimum thickness of 3/4 inch or equivalent fitted to the entry door jamb with maximum 1/8 inch
clearance each edge. The existing door must be removed
and stored inside the building. Plywood must be secured by 2″x4″ or 4″x4″ crossmembers, secured to the plywood
by 3/8 inch plated carriage bolts and matching hardware. A minimum of one door must be operable. Plywood for
operable door openings must be attached to the door entry with three case hardened strap hinges of the type specified by the Enforcement Official. Plywood must be secured by a case hardened steel hasp and minimum two-inch
hardened padlock, also of the type specified by the
Enforcement Official. Additional measures may be
required as deemed necessary in the sole discretion of the Enforcement Official.
(iii) All boarded openings must be painted with
exterior paint that is of a color compatible with the exterior color of the building and is approved by the Enforcement Official.
(2) Alternative Methods of Securing a Building.
Upon application for a boarding permit, the Enforcement Official may approve alternative methods of securing a
vacant building. In making the determination to approve any alternative method, the Enforcement Official must
consider the effectiveness of the alternative method to provide adequate and long-term security against the
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CITY COUNCIL ORDINANCE NO. 2023-xxx
unauthorized entry and the aesthetic and other impacts of such method on the immediate neighborhood.
(3) Additional Requirements. In connection with
the boarding or securing of the doors, windows, or other openings of any building, the owner must also comply with the following requirements.
(i) All utility services to the building must be
terminated by removal of the meters and termination of
electric power by Southern California Edison or any
successor utility. Compliance with this Subsection may be waived in writing by the Enforcement Official as to
electric power in the event that electricity is necessary to power exterior security lighting, an alarm system, or
equipment to be used in connection with the rehabilitation of the building for which there is a valid building permit.
(ii) The sewer must be capped in a manner approved by the Enforcement Official so as to prevent the
accumulation of methane gas in the building or structure.
(iii) The interior of the building must be cleared of all trash, junk, garbage, debris, solid waste, and personal possessions, in order to eliminate any fire or health hazard and prevent hindrance to firefighting equipment and
personnel in the event of a fire.
(iv) The owner of any boarded building must register the building as vacant with the City in accordance with this Article.
14-510 Enforcement.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(a) Violation Unlawful. It is unlawful and declared a public nuisance for any person to violate any provision of this Article.
(b) Criminal Penalties. Any person who violates any provision of this Article is guilty of a misdemeanor
punishable by a fine of up to $1,000, or by imprisonment in the County jail not exceeding six months, or by both such fine and imprisonment, except the City Attorney may prosecute a violation of this Article as an infraction or reduce a previously charged misdemeanor to an infraction, in his or her discretion.
(c) Administrative Penalties. Any person who violates any provision of this Article may be issued an
administrative penalty in accordance this Code.
(1) Appeal and Collection of Penalty. The
Enforcement Official’s administrative penalty may be
appealed in the manner provided in Article II of Chapter 1 of this Code.
(2) For any non-residential property in
Downtown subject to this Article, the initial penalty shall be $2,500.00. If the violation continues after the
compliance date in the first administrative citation or any extension period granted by the City, a second
administrative penalty in the amount of $5,000.00 may be issued. If the violation continues after the compliance date in the second administrative citation or any extension
period granted by the City, a third administrative penalty in the amount of $25,000.00 may be issued. For any other
properties subject to this Article, the penalties shall be in the amounts set forth in Section 1-86 of this Code.
(d) Civil or Equitable Enforcement. Nothing in this Article prevents the City Attorney from bringing a civil or equitable action, at his or her discretion, to seek the abatement of any violation of this Code.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(e) Ongoing Violations. Each and every day a violation is maintained, caused, aided, abetted, concealed, suffered, or permitted is a separate offense.
(f) Remedies Cumulative. The remedies, procedures, and penalties provided by this Article are cumulative to each other and to any other available under City, State, or federal law.
(g) Joint and Several Liability. The duties and liabilities specified in this Article are joint and several among and between all owners.
SECTION 3. Severability: If any provision of this
Ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or
application, and to this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the
invalidity of any portion thereof.
SECTION 4. Effective Date. This Ordinance shall take
effect thirty (30) days from its passage by the City Council of the City of Hemet.
SECTION 5. Notice of Adoption. The City Clerk shall
publish this Ordinance in the manner required by law.
////
INTRODUCED at the regular meeting of the Hemet City
Council on September 26, 2023
8.B
CITY COUNCIL ORDINANCE NO. 2023-xxx
APPROVED AND ADOPTED this ___ day of
_________________, 2023.
______________________________
Joe Males, Mayor
ATTEST:
____________________________
John Paul Maier, City Clerk
8.B
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Sep 26 2023
Department: City Attorney
Submitted by: Mark Prestwich, City Manager
Steven Graham, City Attorney;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing
TITLE:
An Ordinance of the City Council of the City of Hemet, California, Amending Article II (California Building Code) of Chapter 14 (Buildings and Building Regulations) to Amend Section 14-41 Related to Expiration of Building Permits
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Introduce by title only, waive full reading, An Ordinance Of The City Council Of The City Of Hemet, California, Amending Article Ii (California Building Code) Of Chapter 14 (Buildings And Building Regulations) To Amend Section 14-41 Related To Expiration Of Building Permits and authorize the City Clerk to place the Ordinance for adoption on the next available regular City Council meeting agenda.
BACKGROUND:
The City Council considered the language of t his Ordinance at the regular meeting on July 11, 2023 provided feedback on elements of the conceptual Ordinance.
The recommended revisions to the City's building code will add two important sections: Section 105.5.2, which deals with the time limit on permitted construction, and Section 105.5.3, detailing the process of extending the time limit to complete construction.
Under current law, a permit becomes invalid if the work is not commenced within 180 days after issuance or if the work is suspended or a bandoned for 180 days. The Building Official is able to grant extensions of time for 180 days without any ultimate limit.
This amendment would create a maximum allowable time of three years to complete any construction requiring a building permit, unless the construction has an approved extension in accordance with Section 105.5.3. This three-year timeline begins from the date of issuance for permits issued on or after July 1, 2021, or from July 1, 2021, for permits issued prior to that date. The completion date of construction is determined by the City's final inspection and approval of the construction work. The
8.C
section also emphasizes that the time limits cannot be extended merely by issuing a subsequent building permit for the same project.
Section 105.5.3 provides a detailed procedure for extending the time limit for construction completion.
The property owner or their au thorized agent may request an extension by submitting an application form with the necessary details to the Building Official. This application should be filed at least 45 days before the building permit expiration, and a fee as per the City's master fee s chedule is required. The Building Official may grant an extension not exceeding 365 days after evaluating the progress made toward completion.
If construction remains incomplete even after the extension granted by the Building Official, further extensions of up to a year require approval of the City's Hearing Officer. After that, extensions may only be granted by the City Council.
DISCUSSION:
Based on City Council feedback, 105.5.3(d) was added which limits the authority of the Building Official to 180 days (approximately 6 months) extension for any project that began prior to July 1, 2018.
Additionally, the Hearing Officer may only grant two 90 -day extensions. This reduces the total "non - City Council" extensions for these older projects from two years to only one year.
STRATEGIC PLAN INTEGRATION:
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 attrac tive and reduce blight.
Objective 2: Explore and implement homelessness solutions for the City of Hemet.
Objective 3: Increase Public Safety visibility and response.
ATTACHMENT(S):
Attachment 1: Ordinance Building Code
8.C
CITY COUNCIL ORDINANCE NO. 2023-xxx
CITY OF HEMET
HEMET, CALIFORNIA
ORDINANCE NO. 2023-xxx
An Ordinance Of The City Council Of The City Of
Hemet, California, Amending Article II (California
Building Code) Of Chapter 14 (Buildings And
Building Regulations) To Amend Section 14-41
Related To Expiration Of Building Permits
THE CITY COUNCIL OF THE CITY OF HEMET DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The adoption of this ordinance is exempt from review under the California Environmental Quality Act
(CEQA) pursuant to the following, each a separate and
independent basis: CEQA Guidelines, Section 15378 (not a project) and Section 15061 (b)(3) (no significant
environmental impact).
SECTION 2. SECTION 14-41 OF CHAPTER 14, ARTICLE II
is hereby amended to add the following language as
appropriate under the amendments to Section 105:
Section 105.5.2 is added to read as follows:
Section 105.5.2 Time limit on permitted construction.
For any project for which a tentative and final tract map is not required, the maximum allowable time to complete
construction for any work that requires a building permit including, but not limited to, any construction, reconstruction, rehabilitation, renovation, addition(s), modification(s), improvement(s), or alteration(s), shall be limited to three (3) years, unless an extension is granted in accordance with Section 105.5.3.
For building permits issued on or after July 1, 2021, the time limit to complete construction shall begin on the date of issuance of the first or original building permit. For building permits issued prior to July 1, 2021, the time limit to complete construction shall be three (3) years from July 1, 2021.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
Final inspection and approval of the construction work by the City shall mark the date of construction completion for purposes of this section. Time limits set forth herein shall not be extended by issuance of a subsequent building permit(s) for the same project.
Section 105.5.3 is added to read as follows:
Section 105.5.3 Extension of time limit to complete
construction.
The maximum allowable time to complete construction, as set forth in Section 105.5.2, may be extended as follows:
1. Application for Extension to Building Official.
a) A property owner, or authorized agent of the property owner, may request an extension by filing with the Building Official, in writing and on a form provided by the Building Official, an application for extension which sets forth:
(i) the address of the project site;
(ii) the name of the applicant and property owner;
(iii) when the first or original building permit was
issued;
(iv) the length of time extension requested, which
shall not be greater than three hundred and sixty-five (365) calendar days;
(v) how many previous extensions have been
granted;
(vi) the basis for the requested extension;
(vii) the new end project date if the application is
approved;
(viii) a brief description of the improvements that are the subject of the application; and
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(ix) any other information requested by the City.
b) Unless authorized by the Building Official in writing, an application for extension shall be submitted no later than forty-five (45) calendar days prior to the expiration of the building permit. The application for extension to the Building Official shall be accompanied the fee set forth in the City’s master fee schedule.
c) Within forty-five (45) days of a request for extension, the Building Official may ministerially grant, conditionally grant or deny a request for extension for a period not to exceed three hundred sixty-five (365) calendar days. The Building Official shall only grant an extension if he/she determines adequate progress has been made towards
completion of construction and the request for extension is necessary for its completion. The decision of the Building Official shall be final and non-appealable.
d) Notwithstanding subsection (c) above, for building
permits issued prior to July 1, 2018, the Building Official ministerially grant, conditionally grant or deny a request for extension for a period not to exceed one hundred eighty (180) days. The Building Official shall only grant an
extension if he/she determines adequate progress has been made towards completion of construction and the request for extension is necessary for its completion.
2. Application for Additional Extension(s).
a) If construction of the project has not been completed within the timeframe authorized by the Building Official, a property owner, or authorized agent of the property owner, may request an additional extension by filing with the City Clerk, in writing and on a form provided by the City Clerk, an application for extension which sets forth:
(i) the address of the project site;
(ii) the name of the applicant and property owner;
(iii) when the first or original building permit was
issued;
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CITY COUNCIL ORDINANCE NO. 2023-xxx
(iv) the length of time extension requested, which
shall not be greater than one hundred and eighty (180)
calendar days;
(v) how many previous extensions have been
granted;
(vi) the basis for the requested extension;
(vii) the new end project date if the application is
approved;
(viii) a brief description of the improvements that are the subject of the application; and
(ix) any other information requested by the City.
b) Unless authorized by the Building Official in writing, an application for extension shall be submitted no later than forty-five (45) calendar days prior to the expiration of the building permit.
c) An application for extension filed with the City Clerk shall be accompanied by a hearing and noticing fee
identified in the City’s master fee schedule.
3. Scheduling and Noticing.
a) For an application for an additional extension set forth in subsection (2), a Hearing Officer, designated by the City Manager, shall hear and decide whether a second
application for extension, or third application for extension, shall be granted, conditionally granted, or denied. The City Council shall hear and decide whether any additional
application for extension shall be granted, conditionally granted, or denied. The applicable hearing body shall be referred to herein as the “review authority.”
b) For any application for extension to be heard by a
Hearing Officer, the City Manager shall appoint a Hearing Officer with the requisite qualifications and experience to consider the application for extension. The Hearing Officer shall not be a City employee and the employment,
performance evaluation, compensation, and benefits of the Hearing Officer, if any, shall not be conditioned, either
8.C
CITY COUNCIL ORDINANCE NO. 2023-xxx
directly or indirectly, upon the outcome of any decision by the Hearing Officer.
Within seven (7) calendar days of the City Clerk’s
receipt of an application for extension, the City Manager or his/her designee shall notify the applicant of the name of the Hearing Officer. If the applicant wishes to challenge the designated Hearing Officer, the applicant shall have seven (7) calendar days from the date of service of the notice to submit to the City Manager a request, in writing, to disqualify the Hearing Officer, which sets forth the basis for
disqualification. A Hearing Officer may only be disqualified for:
(i) bias;
(ii) prejudice;
(iii) a conflict of interest; or
(iv) a reason for which a judge may be disqualified
after a showing of good cause under the laws of the State of California.
The City Manager will review any request for
disqualification and make a decision as to whether a Hearing Officer shall be disqualified. The City Manager’s decision shall be final. If the City Manager disqualifies a Hearing Officer, the City Manager shall designate a new Hearing Officer in accordance with the procedures in this subsection.
c) The applicant shall be notified of the time and place set for the hearing of the application, at least ten (10) calendar days prior to the date of the hearing. All hearings on an application to be heard by the review authority shall be noticed in the following manner:
(i) Mailed to property owners within three hundred (300) feet of the project site that is the subject of the application, at least ten (10) calendar days in advance of the hearing. The notice shall contain: the address of the project site; the length of time extension requested; the new end project date if the application is approved; the name of the applicant and property owner; a brief description of the improvements; the date, time, and place of the hearing; and a statement
8.C
CITY COUNCIL ORDINANCE NO. 2023-xxx
informing the person they have the ability to attend the hearing and provide comments; and
(ii) Posted by the applicant at the project site, that is the subject of the application, at least ten (10) calendar days before the scheduled hearing. The size, location and number of sign(s) shall be posted as determined by the City Manager or his/her designee. The applicant shall be responsible for maintaining the sign(s) in a satisfactory condition and shall remove all sign(s) within twenty-four (24) hours following the conclusion of the hearing.
The failure of any person or entity to receive notice given in compliance with this subsection shall not invalidate the actions of the applicable review authority.
4. Conduct of Hearing.
a) A hearing shall be held at the date, time, and place for which notice was given.
b) The review authority shall only consider evidence and testimony, presented by the applicant or any other interested person, relevant to whether:
(i) special circumstances warrant an extension of
time;
(ii) the failure to meet the time limit was caused by
circumstances beyond the property owner’s, applicant’s or their contractor’s control; and
(iii) any approval should contain conditions to ensure
timely completion of the project in a manner that limits impacts on surrounding property owners. Any documents
submitted by City staff shall constitute prima facie evidence of the respective facts contained in those documents.
c) The review authority may grant, or conditionally grant, up to a one hundred and eighty (180) calendar day
extension, per application for extension, if it finds special circumstances warrant an extension of time or the failure to meet the time limit was caused by circumstances beyond the property owner’s, applicant’s or their contractor’s control. If the review authority makes the findings to grant an
extension, the review authority shall consider whether
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CITY COUNCIL ORDINANCE NO. 2023-xxx
conditions are necessary to ensure timely completion of the project in a manner that limits impacts on surrounding
property owners. The review authority shall deny the
application if it cannot make the findings set forth in this subsection. Notwithstanding the above, for building permits issued prior to July 1, 2018, the review authority may grant, or conditionally grant, up to a ninety (90) calendar day extension, per application for extension, if it finds special circumstances warrant an extension of time or the failure to meet the time limit was caused by circumstances beyond the property owner’s, applicant’s or their contractor’s control.
d) A hearing may be continued without further notice,
provided the Hearing Officer or chair of the review authority announces the date, time, and place to which the hearing will be continued before the adjournment or recess of the hearing.
e) The review authority may announce a tentative
decision and defer its action on a final decision until appropriate findings and/or conditions of approval have been prepared.
f) The review authority shall issue a written decision, setting forth its findings, and the decision shall be final and effective on the date the decision is made, unless otherwise specified by the review authority. The review authority shall provide the City Clerk with its final decision within three (3) calendar days of the date of decision and the City Clerk shall mail a copy of the final decision to the applicant within ten (10) calendar days of receipt of the final decision.
5. Judicial Proceeding.
Nothing herein shall prohibit the Building Official from issuing a building permit or extending a building permit if the extension is a term of an enforceable settlement agreement between the City and the property owner or a term of a court order/judgment.
6. Judicial Review.
The decision of the review authority shall not be appealable to any City body. A person shall not seek judicial review related to any application for extension until the person has first exhausted all administrative procedures.
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CITY COUNCIL ORDINANCE NO. 2023-xxx
7. City Council Report
The City Manager or their designee shall prepare and submit a report to the City Council on a quarterly basis that
describes those building permits that have been extended and which are expired under this Ordinance.
Section 105.5.4 is added to read as follows:
Section 105.5.4 Correlation with Codes.
Sections 105.5.2 or 105.5.3 limit the total time to complete construction and shall not relieve any person or entity from complying with any other applicable provision of federal, state or local law including, but not limited to, construction related laws adopted by the City.
SECTION 3. Severability: If any provision of this Ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance
irrespective of the invalidity of any portion thereof.
SECTION 4. Effective Date. This Ordinance shall take effect thirty (30) days from its passage by the City Council of the City of Hemet.
SECTION 5. Notice of Adoption. The City Clerk shall publish this Ordinance in the manner required by law.
INTRODUCED at the regular meeting of the Hemet City
Council on September 26, 2023
APPROVED AND ADOPTED this ___ day of
_________________, 2023.
______________________________
Joe Males, Mayor
8.C
CITY COUNCIL ORDINANCE NO. 2023-xxx
ATTEST:
____________________________
John Paul Maier, City Clerk
8.C
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Sep 26 2023
Department: Finance
Submitted by: Mark Prestwich, City Manager
Tori Roberts, Administrative Services Director;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing
TITLE:
Report Back and Consideration of Further Measure U Oversight and Monitoring Options
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Discuss and provide direction to the City Manager regarding possible historical evaluation of compliance laws and regulations related to Measure U expenditures since inception (Hemet Ordinance No. 1918) and the implementing resolutions (Resolution Nos. 4703 & 4731).
BACKGROUND:
At the City Council Meeting of February 28, 2023, the Council reque sted the City Manager present options for the expenditure compliance of Measure U expenditures since inception in 2017, and options for enhancing the transparency of Measure U proceeds and expenditures (Hemet Ordinance No. 1918), and the implementing resolutions (Resolution Nos. 4703 & 4731).
DISCUSSION:
The City Manager and Administrative Services Director, a licensed Certified Public Accountant, have discussed options to evaluate the historical compliance with the enacted legislation and implemented resolution, as well as options to enhance the transparency of Measure U proceeds and expenditures.
Historical Compliance
Measure U, a General Transactions and Use Tax, was approved in November 2016. The City began receiving revenues in April 2017. Measure U has been subject to external monitoring as part of the City's independent financial statement audit, in addition to the agreed-upon procedures engagements over financial activity in Fiscal Year 2018-19 and 2019-20. The focus of this prior work included:
8.D
• A determination if selected revenue and expenditure transactions were recorded in accordance with Generally Accepted Accounting Principles (GAAP).
• A determination if expenditures were in accordance with (expended for the intended purpose) the provision of the Measure U ordinance and implementing resolution (includes payroll, nonpayroll, and maintenance and operations).
Option 1 - Agreed Upon Procedures From Inception through June 30, 2023
This strategic and targeted evaluation would include the following:
• Develop an understanding of the approved voter -enacted legislation, and implement resolutions for Measure U and Measure H;
• Perform a specific evaluation of compliance with the intended revenue split between the Fire and Police Department budgets and
• Perform a Compliance Evaluation Over Expenditures (including salary and benefits, purchases of goods and services over $ 5,000, and transfers between the respective Measure U funds and other City funds, if applicable).
Option 1 is estimated to cost $143,000. This cost of Option 1 could be reduced by limiting the scope to the immediately preceding three fiscal years.
Option 2 - Comprehensive Historical Evaluation for Fiscal Years 2020-21, 2021-22, and 2022- 23 Given the City's prior agreed -upon procedures engagements in Fiscal Years 2018 -19 and 2019- 20, Option 2 would focus on all expenditures in the immediately precedin g three fiscal years. The cost of this approach is estimated to be approximately $600,000.
Option 3 - Comprehensive Historical Evaluation
A comprehensive historical evaluation would perform a 100% evaluation by transaction evaluation for compliance with the implementing resolutions (line item review). Given the volume of transactions since 2017, it is estimated that such a review would cost in excess of $1.2 million. It is not likely to yield a statistically different outcome than an alternate agreed -upon procedures engagement, which focuses on transactions of a certain quantitative valuation (e.g., $5,000 or higher).
Transparency
The City Manager and Administrative Services Director recommend the following enhancements to the transparency of Measure U proceeds and expenditures:
• Posting of all expenditure detail reports for each fiscal year since inception on the City's Measure U Citizen Oversight Committee webpage.
• Beginning in Fiscal Year 2023 -24, publish and post a quarterly comparison of Measure U spending to date in comparison to the spending plan approved at the beginning of the fiscal year. • Publish and post on the website any report directed by the City Council from the options presented above.
PREVIOUS COUNCIL ACTION:
8.D
None.
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 2: Increase transparency for the public.
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 2: Evaluate existing practices to ensure continuity with industry best practices.
Objective 3: Provide Council with policies that are consistent while lessening liabilities.
FISCAL IMPACT:
The cost associated with the options offered ranges from an estimated $143,000 to $1.2 million, depending on the level of analysis. All options can be funded via Measure U Fund Balance. Some options presented may have an adverse effect on compliance with t he 40% Reserve Requirement adopted by the City Council on June 27, 2023.
ATTACHMENT(S):
20230926 Measure U Audit Oversight And Monitoring FINAL
8.D
Hemet City Council
Measure U Oversight, Monitoring & Transparency
Administrative Services Department
September 26, 2023
8.D
Strategic Plan Integration
Organizational
Effectiveness
Community
Engagement
Select the Strategic Plan
objective that relates and
the related Action Item.
2
8.D
Follow up on Previous Council Direction
• February 28, 2023
• The Council requested the City Manager present options • Expenditure compliance of Measure U expenditures since inception in 2017
• Enhancing the transparency of Measure U proceeds and
expenditures (Hemet Ordinance No. 1918), and the
implementing resolutions (Resolution Nos. 4703 & 4731). 3
8.D
4 • Local CPA firm engaged to perform limited assurance procedures, under the professional standards as an Agreed Upon Procedures Engagement (AUP)
• Periods Covered:
• FYE June 30, 2019 and FYE June 30, 2020
• Procedure Focus
• Determine if selected revenue and expenditure transactions were recorded in accordance with Generally Accepted Accounting Principles (GAAP) • Determine if expenditures were in accordance with (expended for intended purpose) the provisions of the Measure U ordinance and implementing resolution. Includes: Payroll, nonpayroll, and maintenance and operations.
History of Assurance Services Provided
8.D
• Outcomes:
• No instances of noncompliance were identified, however, in the procedures performed over the activity related to FY 19- 20, the firm did identify the $1.2 million of additional expenditures allocated to the Measure U fund, as approved by the City Council.
• Included increases in compensation and benefit costs, which were absorbed by the general fund during the year, but were ultimately allocable to the Measure U fund.
History of Assurance Services Provided
5
8.D
Options
6
8.D
Option 1 : Historical Evaluation
• Determine the Scope of the Monitoring
• Historical Lookback from FYE June 30, 2023 to inception of program • Activities to include
• Develop an understanding of the approved voter enacted legislation, and implementing resolutions for Measure U and Measure H
• Perform a specific evaluation of compliance with the intended revenue split between the Fire and Police Department budgets
• Compliance Evaluation Over Expenditures
• Include salary and benefits
• Purchase of goods and services
• Transfers between the respective Measure U funds and other City funds, if applicable
• Expenditures for one time projects or activities outside of the normal ongoing appropriations.
Most
Desirable
7
8.D
Option 1: Cost Estimate and Assumptions
8 Stage Hours
Planning 55
Fieldwork 500
Reporting and wrapup 60
Total Estimated Hours 615
Estimated Rate per hour 233$
Estimated Cost for Proposed Scope 143,295$
8.D
Option 2: Comprehensive Historical Evaluation
• Same as option one, except:
• Perform 100% evaluation by transaction evaluation for compliance with the implementing resolutions.
• Drastically increases level of effort
• Approximately 5x-8x increase in the level of effort (per fiscal year covered)
• Potential Cost: Greater than $600 thousand
• Is not likely to yield a different outcome
For Fiscal years 2020-21, 2021-22, and 2022- 23 Only
9
8.D
Option 2: Cost Estimate and Assumptions
10 Stage Hours
Planning 60
Fieldwork 2,400
Reporting and wrapup 60
Total Estimated Hours 2,520
Estimated Rate per hour 233$
Estimated Cost for Proposed Scope 587,160$
For Fiscal years 2020-21, 2021-22, and 2022- 23 Only
8.D
Option 3: Comprehensive Historical Evaluation
• Same as option one, except:
• Perform 100% evaluation by transaction evaluation for compliance with the implementing resolutions.
• Drastically increases level of effort
• Approximately 5x-8x increase in the level of effort
• Potential Cost: Greater than $1.2 million
• Is not likely to yield a different outcome
11 For all Fiscal Years from Inception through June 30, 2023
8.D
Option 3: Cost Estimate and Assumptions
12 For all Fiscal Years from Inception through June 30, 2023 Stage Hours
Planning 150
Fieldwork 4,900
Reporting and wrapup 120
Total Estimated Hours 5,170
Estimated Rate per hour 233$
Estimated Cost for Proposed Scope 1,204,610$
8.D
Enhancements to Transparency
• Posting of all expenditure detail reports for each fiscal year since inception on City's Measure U Citizen Oversight Committee webpage.
• Beginning in Fiscal Year 2023-24, publish and post a quarterly comparison of Measure U spending to date in comparison to the spending plan approved at beginning of the fiscal year. • Publish and post on website any report directed by the City Council from options presented above.
13
8.D
Discussion & Follow Up
8.D