Agenda — Hemet City Council, February 24, 2026 (part 3 of 3)

9.A.

Page 233 of 353 ends

/0/1/2/3/i255/5/6/i255/7/8/9/8/2
/0/7/10/0/11/i255/12/13/14/i255/15/13/16/16/17/12/18
/19/20/21/22/23/24/i255/26/20/27/20/23/28/24/20/29/30/i255/31/32/33/31/34/33/32/31/32/35/i255/36/37/30/34/36 /38/39/20/23/30/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/28/40/41/28/23/20/42 /43/23/22/26/23/28/44/i255/45/46/30/i255/i255/i255/i255/i255/i255/i255/28/21/47/28/23/23/27/24 /43/28/26/20/i255/i255/i255/i255/i255/36/37
/i255/i255/48/49/50/48/51/i255/19/38/52/30/i255/31/32/31/34/32/35/i255/i255/i255/i255/31/32/33/31/34/33/32/31/32/35 /53/54/54/55/56/57/58/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/55/60/61/i255/62/63/64/54/i255/i255/i255/53/54/54/58/i255/62/63/64/54/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255 /32/32/65/66/36/36/66/65/67/31/36/66/34/32/37/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/68/69/52/46/70/48/69/43/50/i255/i255/48/71/52/72/19/69/48/72/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/73/74/37/66/37/67 /32/32/65/66/36/36/66/65/67/31/67/66/34/32/37/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/68/69/52/46/70/48/69/43/50/i255/i255/48/71/52/72/19/69/48/72/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/35/66/74/67 /32/32/65/66/36/36/66/65/32/35/32/66/34/32/37/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/68/69/52/46/70/48/69/43/50/i255/i255/48/71/52/72/19/69/48/72/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/34/31/37/66/36/31 /32/32/65/66/36/36/66/65/67/36/32/66/34/32/37/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/68/69/52/46/70/48/69/43/50/i255/i255/48/71/52/72/19/69/48/72/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/67/31/34/66/31/36 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/38/52/46/i255/72/71/72/69/68/i255/i255/i255/i255/i255/i255/i255/i255/76/77/78/76/79/80/81/76/79/i255 /32/32/74/66/36/36/66/65/67/36/37/66/34/32/36/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/43/82/48/75/46/i255/i255/i255/i255/i255/i255/38/72/45/68/45/72/45/50/70/83/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/37/32/66/37/74 /32/32/74/66/36/36/66/65/67/36/37/66/34/32/37/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/43/82/48/75/46/i255/i255/i255/i255/i255/i255/48/71/52/72/19/69/48/72/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/74/74/65/66/73/32 /32/32/74/66/36/36/66/65/67/36/35/66/34/32/36/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/43/82/48/75/46/i255/i255/i255/i255/i255/i255/38/72/45/68/45/72/45/50/70/83/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/74/73/66/67/36 /32/32/74/66/36/36/66/65/67/36/35/66/34/32/37/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/43/82/48/75/46/i255/i255/i255/i255/i255/i255/48/71/52/72/19/69/48/72/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/84/35/36/32/66/37/65 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/38/52/46/i255/72/71/72/69/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/77/78/85/86/79/81/87/87/i255 /32/67/32/66/31/73/66/32/31/31/31/66/34/36/37/36/31/66/31/31/31/35/37/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/43/70/88/19/69/52/72/i255/i255/i255/i255/49/50/69/68/72/49/i255/43/68/69/i255/i255/i255/i255/i255/i255/i255/i255/83/37/84/35/74/73/66/67/35 /32/67/32/66/31/73/66/32/31/31/31/66/35/34/37/31/31/66/31/31/36/32/35/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/43/70/88/19/69/52/72/i255/i255/i255/i255/89/69/90/71/19/i255/89/69/48/49/i255/i255/i255/i255/i255/i255/i255/i255/i255/34/84/67/73/34/66/67/67 /32/67/32/66/31/74/66/32/31/31/31/66/34/32/32/35/34/66/31/31/31/65/31/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/43/70/88/19/69/52/72/i255/i255/i255/i255/70/71/75/72/82/69/19/50/i255/89/i255/i255/i255/i255/i255/i255/i255/i255/36/34/84/31/31/31/66/31/31 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/38/52/46/i255/72/71/72/69/68/i255/i255/i255/i255/i255/i255/i255/i255/79/86/78/91/80/80/81/92/80/i255 /32/67/35/66/31/74/66/32/31/31/31/66/34/32/37/34/31/66/31/31/36/32/32/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/48/71/43/70/69/93/67/32/32/74/i255/89/69/45/52/72/i255/94/i255/71/43/i255/i255/i255/i255/i255/i255/i255/i255/34/37/84/31/31/31/66/31/31 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/38/52/46/i255/72/71/72/69/68/i255/i255/i255/i255/i255/i255/i255/i255/86/95/78/87/87/87/81/87/87/i255 /32/37/31/66/31/37/66/36/32/31/32/66/34/32/73/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/48/46/93/88/i255/i255/i255/i255/i255/i255/i255/43/19/71/75/50/70/70/45/71/52/i255/i255/i255/i255/i255/i255/i255/i255/i255/32/84/35/35/31/66/31/31 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/38/52/46/i255/72/71/72/69/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/77/78/91/91/87/81/87/87/i255 /32/34/37/66/36/31/66/37/35/31/31/66/34/32/37/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/70/50/82/50/19/70/72/71/19/89/i255/48/71/52/72/19/69/48/72/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/37/84/31/36/37/66/74/31 /32/34/37/66/36/31/66/37/35/31/31/66/34/32/73/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/70/50/82/50/19/70/72/71/19/89/i255/43/19/71/75/50/70/70/45/71/52/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/84/67/34/73/66/74/32 /32/34/37/66/36/31/66/37/35/34/31/66/34/32/37/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/70/50/82/50/19/70/72/71/19/89/i255/48/71/52/72/19/69/48/72/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/73/37/66/65/74 /32/34/37/66/36/31/66/37/35/34/31/66/34/32/37/34/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/70/50/82/50/19/70/72/71/19/89/i255/89/69/45/52/72/i255/94/i255/71/43/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/67/65/67/66/67/34 /32/34/37/66/36/31/66/37/35/34/31/66/34/32/73/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/70/50/82/50/19/70/72/71/19/89/i255/38/52/45/75/71/19/89/70/i255/69/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/73/65/65/66/34/32 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/38/52/46/i255/72/71/72/69/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/91/78/91/79/92/81/86/85/i255 /32/35/35/66/31/31/66/32/31/31/31/66/34/32/73/36/31/66/31/31/36/31/35/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/89/45/70/48/88/19/69/52/72/i255/i255/43/19/71/75/50/70/70/45/71/52/i255/i255/i255/i255/i255/i255/i255/i255/i255/34/84/37/31/31/66/31/31 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/38/52/46/i255/72/71/72/69/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/86/78/95/87/87/81/87/87/i255 /67/36/35/66/31/36/66/34/31/31/31/66/34/32/32/35/31/66/34/35/73/32/69/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/88/50/52/75/69/48/i255/i255/i255/i255/i255/70/71/75/72/82/69/19/50/i255/43/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/84/67/74/31/66/31/31 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/38/52/46/i255/72/71/72/69/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/79/78/76/92/87/81/87/87/i255 /67/32/74/66/36/31/66/34/31/31/31/66/34/32/73/36/31/66/34/73/31/35/50/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/93/19/70/72/72/19/75/69/48/i255/i255/43/19/71/75/50/70/70/45/71/52/i255/i255/i255/i255/i255/i255/i255/i255/32/67/84/32/34/34/66/73/34 /67/32/74/66/36/31/66/34/31/31/31/66/35/34/34/31/31/66/34/73/32/67/50/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/93/19/70/72/72/19/75/69/48/i255/i255/19/45/88/49/72/70/i255/71/75/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/84/35/31/36/66/32/34 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/38/52/46/i255/72/71/72/69/68/i255/i255/i255/i255/i255/i255/i255/i255/77/95/78/85/86/80/81/87/87/i255 /67/35/67/66/31/65/66/36/31/31/31/66/34/32/32/35/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/68/45/93/19/69/19/96/i255/i255/i255/i255/70/71/75/72/82/69/19/50/i255/43/i255/i255/i255/i255/i255/i255/i255/i255/i255/35/84/34/36/65/66/31/31

Page 34 of 36 ends

9.A.

Page 234 of 353 ends

/0/1/2/3/i255/5/6/i255/7/8/9/8/2
/0/7/10/0/11/i255/12/13/14/i255/15/13/16/16/17/12/18
/19/20/21/22/23/24/i255/26/20/27/20/23/28/24/20/29/30/i255/31/32/33/31/34/33/32/31/32/35/i255/36/37/30/34/36 /38/39/20/23/30/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/28/40/41/28/23/20/42 /43/23/22/26/23/28/44/i255/45/46/30/i255/i255/i255/i255/i255/i255/i255/28/21/47/28/23/23/27/24 /43/28/26/20/i255/i255/i255/i255/i255/36/34
/i255/i255/48/49/50/48/51/i255/19/38/52/30/i255/31/32/31/34/32/35/i255/i255/i255/i255/31/32/33/31/34/33/32/31/32/35 /53/54/54/55/56/57/58/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/55/60/61/i255/62/63/64/54/i255/i255/i255/53/54/54/58/i255/62/63/64/54/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255 /65/35/65/66/31/67/66/35/36/31/36/66/34/32/32/32/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/68/45/69/19/70/19/71/72/70/48/i255/70/46/73/50/19/74/45/75/45/52/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/31/65/66/31/67 /65/35/65/66/31/67/66/35/36/31/36/66/34/32/32/32/35/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/68/45/69/19/70/19/71/72/70/48/i255/69/76/76/51/75/77/70/38/46/45/i255/i255/i255/i255/i255/i255/i255/i255/i255/32/78/67/32/79/66/31/31 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/38/52/46/i255/74/76/74/70/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/80/81/82/83/84/85/84/86/i255 /65/87/31/66/36/31/66/34/31/31/31/66/35/34/34/31/31/66/32/37/32/36/50/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/48/70/43/45/74/68/43/19/76/88/i255/19/45/89/49/74/75/i255/76/72/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/35/78/32/36/35/66/87/37 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/38/52/46/i255/74/76/74/70/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/90/81/91/92/90/85/93/82/i255 /34/87/36/66/31/36/66/34/31/31/31/66/34/32/32/35/31/66/34/35/87/32/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/75/76/72/74/94/70/19/50/i255/43/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/78/31/36/31/66/31/31 /34/87/36/66/31/31/66/31/31/31/31/66/32/32/31/36/34/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/19/50/74/50/52/74/45/76/52/75/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/66/31/31 /34/87/36/66/36/31/66/34/31/31/31/66/35/34/34/31/31/66/34/87/36/87/94/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/19/45/89/49/74/75/i255/76/72/i255/i255/i255/i255/i255/i255/i255/i255/36/35/79/78/32/65/37/66/31/31 /34/87/36/66/36/31/66/79/31/31/31/66/34/36/37/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/49/50/70/68/74/49/i255/43/68/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/78/65/67/87/66/65/36 /34/87/36/66/36/31/66/79/31/31/31/66/34/32/36/31/34/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/38/74/45/68/45/74/45/50/75/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/34/32/66/32/31 /34/87/36/66/36/31/66/79/31/31/31/66/34/32/36/35/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/46/76/95/50/75/74/45/48/i255/94/i255/i255/i255/i255/i255/i255/i255/i255/36/31/78/31/67/35/66/87/87 /34/87/36/66/36/31/66/79/31/31/31/66/34/32/37/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/48/76/52/74/19/70/48/74/75/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/31/79/66/67/37 /34/87/36/66/36/31/66/79/31/31/31/66/34/32/37/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/89/19/76/38/52/46/i255/94/70/74/i255/i255/i255/i255/i255/i255/i255/37/36/37/78/32/79/65/66/35/65 /34/87/36/66/36/31/66/79/31/31/31/66/34/32/37/34/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/95/70/45/52/74/i255/96/i255/76/43/i255/i255/i255/i255/i255/i255/i255/i255/37/31/78/31/79/34/66/31/87 /34/87/36/66/36/31/66/79/31/31/31/66/34/32/87/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/38/52/45/72/76/19/95/75/i255/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/35/36/66/37/79 /34/87/36/66/36/31/66/79/31/31/31/66/34/32/87/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/43/19/76/72/50/75/75/45/76/52/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/78/34/67/32/66/31/32 /34/87/36/66/36/31/66/79/31/31/31/66/34/32/87/32/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/74/50/75/74/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/35/34/36/66/31/37 /34/87/36/66/36/31/66/79/31/31/31/66/34/37/36/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/94/70/74/50/19/i255/i255/i255/i255/i255/i255/46/50/69/74/i255/75/50/19/73/45/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/65/31/31/66/31/31 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/38/52/46/i255/74/76/74/70/68/i255/i255/i255/i255/i255/i255/i255/90/97/86/81/80/90/97/85/97/93/i255 /35/67/31/66/31/36/66/36/31/31/31/66/34/32/32/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/45/74/i255/i255/i255/i255/i255/i255/i255/i255/i255/74/50/68/50/43/49/76/52/50/33/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/65/37/66/87/31 /35/67/31/66/31/36/66/36/79/65/34/66/34/32/32/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/45/74/i255/i255/i255/i255/i255/i255/i255/i255/i255/74/50/68/50/43/49/76/52/50/33/i255/i255/i255/i255/i255/i255/i255/i255/i255/32/78/34/36/35/66/37/65 /35/67/31/66/31/36/66/36/79/65/34/66/34/32/32/35/34/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/45/74/i255/i255/i255/i255/i255/i255/i255/i255/i255/75/76/72/74/94/70/19/50/i255/95/i255/i255/i255/i255/i255/i255/i255/i255/i255/37/78/67/37/34/66/36/34 /35/67/31/66/31/36/66/36/79/65/34/66/34/32/67/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/45/74/i255/i255/i255/i255/i255/i255/i255/i255/i255/95/45/75/48/50/68/68/70/52/50/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/36/65/65/66/35/35 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/38/52/46/i255/74/76/74/70/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/93/81/90/91/80/85/80/82/i255 /35/67/32/66/31/31/66/32/36/34/31/66/34/32/34/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/46/50/52/74/73/45/75/45/52/75/i255/45/52/75/38/19/70/52/48/50/78/i255/i255/i255/i255/i255/i255/i255/i255/i255/34/78/32/32/32/66/34/37 /35/67/32/66/31/31/66/32/36/34/31/66/34/32/87/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/46/50/52/74/73/45/75/45/52/75/i255/43/19/76/72/50/75/75/45/76/52/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/32/31/31/66/32/31 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/38/52/46/i255/74/76/74/70/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/83/81/82/91/91/85/93/82/i255 /35/67/65/66/31/31/66/31/31/31/31/66/37/31/87/36/34/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/68/45/70/69/45/68/45/74/71/i255/i255/19/50/45/95/69/i255/48/45/74/71/i255/i255/i255/i255/i255/i255/i255/i255/i255/32/78/32/79/32/66/87/67 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/38/52/46/i255/74/76/74/70/68/i255/i255/i255/i255/i255/i255/i255/i255/i255/91/81/91/80/91/85/93/86/i255 /35/67/37/66/36/31/66/37/34/34/31/66/34/36/37/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/68/50/50/74/95/70/45/52/74/i255/49/50/70/68/74/49/i255/43/68/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/32/78/36/67/79/66/36/37 /35/67/37/66/36/31/66/37/34/34/31/66/34/32/65/34/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/68/50/50/74/95/70/45/52/74/i255/73/50/49/45/48/68/50/i255/75/38/i255/i255/i255/i255/i255/i255/i255/i255/36/37/78/67/37/67/66/36/36 /35/67/37/66/36/31/66/37/34/34/31/66/34/32/87/31/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/68/50/50/74/95/70/45/52/74/i255/38/52/45/72/76/19/95/75/i255/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/79/65/66/79/67 /i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/38/52/46/i255/74/76/74/70/68/i255/i255/i255/i255/i255/i255/i255/i255/92/93/81/92/97/92/85/91/97/i255 /35/67/34/66/36/31/66/37/34/35/31/66/34/36/37/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/70/48/95/70/45/52/74/i255/i255/i255/49/50/70/68/74/49/i255/43/68/70/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/77/32/31/31/66/31/31 /35/67/34/66/36/31/66/37/34/35/31/66/34/32/36/31/34/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/70/48/95/70/45/52/74/i255/i255/i255/38/74/45/68/45/74/45/50/75/i255/i255/i255/i255/i255/i255/i255/i255/i255/32/35/78/32/32/35/66/87/32 /35/67/34/66/36/31/66/37/34/35/31/66/34/32/36/36/31/66/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/72/70/48/95/70/45/52/74/i255/i255/i255/38/74/45/68/45/74/45/50/75/77/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/i255/79/34/65/66/65/32

Page 35 of 36 ends

9.A.

Page 235 of 353 ends

Page 36 of 36 ends

9.A.

Page 236 of 353 ends

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 24 2026
Department: Public Works
Submitted by: Mark Prestwich, City Manager
Noah Rau, Public Works Director/City Engineer;

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

TITLE:

A Resolution of the City Council of the City of Hemet, California, Approving the Cost Contribution Agreement Between the City of Hemet and Rancho McHolland, LLC Regarding Sanderson Avenue and Stetson Avenue Pavement Rehabilitation and Authorize the City Manager to Execute the Agreement in the Final Form and Format as Approved by the City Attorney, and Authorize the Administrative Services Director to Reimburse $60,000 of Measure "A" Funds with the Developer Cost Contribution

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, Approving the Cost Contribution Agreement Between the City of Hemet and Rancho McHolland, LLC Regarding Sanderson Avenue and Stetson Avenue Pavement Rehabilitation and Authorize the City Manager to Execute the Agreement in the Final Form and Format as Approved by the City Attorney, and Authorize the Administrative Services Director to Reimburse $60,000 of Measure "A" Funds with the Developer Cost Contribution.

BACKGROUND:

Planning Commission approved CUP19-004, SDR19-010 and Tentative Parcel Map 37779 (MAP19- 003) on July 20, 2021. The project was appealed to City Council and the Planning Commissions decision was upheld by City Council on September 14, 2021. The project included a 7-Eleven convenience store and car wash, located on the southeast corner of Sanderson Avenue and Stetson Avenue.

As part of the Conditions of Approval for the development project, the Developer was required to design and construct frontage street improvements along Stetson Avenue and Sanderson Avenue.

Independently of the development project, the City programmed two Capital Improvement Program ("CIP") projects which encompassed the location of the required Frontage Improvements.

Page 1 of 52 ends

10.A.

Page 237 of 353 ends

In an effort to streamline delivery of the public infrastructure, the City constructed improvements that were more extensive than the frontage improvements required of the Developer to satisfy its Frontage Improvement obligation. The Developer agreed to make a single monetary contribution to the City equal to the amount of $60,000 to satisfy their obligation. The City has completed the constructed of the frontage improvements.

ANALYSIS:

The Developer and the City of Hemet agreed to have the City construct the City improvements, which extend beyond the project frontage, in order to expedite and streamline the construction of the improvements. The Developer would satisfy the obligation to construct the pavement rehabilitation fronting the project with a single monetary contribution to the City in the amount of $60,000.

The Developer has deposited security in the amount of $125,000 with the City to obtain Certificates of Occupancy for the 7-Eleven and car wash for the frontage improvements along Sanderson Avenue and Stetson Avenue. The Developer would convert $60,000 of the deposited security into City contribution for the pavement rehabilitation, and the City would refund the remaining balance of $65,000 to the Developer after the other deficiencies found at the site are resolved.

DISCUSSION:

Staff recommends that the City Council Adopt a Resolution approving the Cost Contribution Agreement between the City of Hemet and Rancho McHolland, LLC regarding Sanderson Avenue and Stetson Avenue Pavement Rehabilitation and authorize the City Manager to execute the agreement in the final form and format as approved by the City Attorney. The proposed agreement will reimburse the City an amount of $60,000 for pavement rehabilitation completed by the City along the frontage of the Stetson Corner development.

During inspection of the Project site, the City has identified various improvements at the project location that were not constructed in accordance with the approved plans and Water Quality Management Plan (WQMP) and these deficiencies must be corrected before release of the remaining Interim Security.

PREVIOUS COUNCIL ACTION:

September 14, 2021 – City Council upheld the Planning Commission Approval of CUP19-004, SDR19-010 and Tentative Parcel Map 37779 (MAP19-003).

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.

Page 2 of 52 ends

10.A.

Page 238 of 353 ends

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.

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

Objective 5: Streamline fire prevention coordination efforts.

FISCAL IMPACT:

There are no impacts to the General Fund. The $60,000 contribution will reimburse Measure "A" funds utilized in CIP 2407 and CIP 5764 that completed pavement improvements that were the development's responsibility.

ALTERNATIVE(S):

1. Do not approve Cost Contribution Agreement.

2. Provide alternative direction to the City Manager.

ATTACHMENT(S):

Attachment 1 - Resolution Approving Contribution Agreement Attachment 2 - Cost Contribution Agreement

Page 3 of 52 ends

10.A.

Page 239 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-XXX 1
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28

CITY OF HEMET

HEMET, CALIFORNIA
RESOLUTION NO. 2026-xxx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA, APPROVING THE COST

CONTRIBUTION AGREEMENT BETWEEN THE CITY OF

HEMET AND RANCHO MCHOLLAND, LLC REGARDING

SANDERSON AVENUE AND STETSON AVENUE

PAVEMENT REHABILITATION AND AUTHORIZE THE

CITY MANAGER TO EXECUTE THE AGREEMENT IN THE

FINAL FORM AND FORMAT AS APPROVED BY THE

CITY ATTORNEY, AND AUTHORIZE THE

ADMINISTRATIVE SERVICES DIRECTOR TO REPLACE
$60,000 OF MEASURE "A" FUNDS WITH THE

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

WHEREAS, RANCHO MCHOLLAND, LLC constructed a commercial development known as Stetson Corner (the “Project”), including CUP19-004, SDR 19- 010, and Parcel Map 37779, located at the southeast corner of Stetson Avenue and Sanderson Avenue in the City of Hemet, including a 7-Eleven convenience store and car wash and associated site improvements (collectively, the "Project"), located at the southeast corner of Stetson Avenue and Sanderson Avenue in the City of Hemet, County of Riverside, State of California; and
WHEREAS, independently of the Project, the City programmed two Capital Improvement Program ("CIP") projects: (i) CIP No. 5764 – Stetson Avenue Pavement Rehabilitation, and (ii) CIP No. 2407 – Sanderson Avenue Pavement Rehabilitation (collectively, the "CIP Projects"), each of which encompasses the location of the

Page 4 of 52 ends

10.A.

Page 240 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-XXX 2
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
Frontage Improvements designing and constructing pavement rehabilitation and ancillary improvements on a corridor wide basis (the "City Improvements"); and WHEREAS, the Parties desire to streamline delivery of public infrastructure by having the City construct the City Improvements (which include, and are more extensive than, the Frontage Improvements) and having the Developer satisfy its Frontage Improvement obligation by making a single monetary contribution to the City equal to the amount of Sixty Thousand Dollars ($60,000) (the "Contribution"); and WHEREAS, the Developer has deposited interim security with the City in the amount of One Hundred Twenty-Five Thousand Dollars ($125,000.00) (the “Interim Security”) to obtain certificates of occupancy for the 7-Eleven and car wash pending satisfaction of the Frontage Improvement obligation, and the Parties desire to convert Sixty Thousand Dollars ($60,000) of the Interim Security into the Contribution provided for herein; and
WHEREAS, the City’s actual costs for completing the pavement rehabilitation improvements along the Project’s frontage as part of CIP Nos. 5764 and 2407 Pavement Rehabilitation Projects exceeded the Developer’s original estimated obligation, but the Parties have agreed that Developer’s contribution of Sixty Thousand Dollars ($60,000.00) represents a fair and reasonable allocation of costs attributable to the Project’s frontage improvements; and
WHEREAS, prior to execution of this Agreement, the City has completed the pavement rehabilitation improvements along the Project’s frontage as part of CIPs No. 5764 and 2407 and during inspection of the Project site, the City has identified various improvements that were not constructed in accordance with the approved plans and

Page 5 of 52 ends

10.A.

Page 241 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-XXX 3
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
Water Quality Management Plan (WQMP), which deficiencies must be corrected before release of the remaining Interim Security.; and
WHEREAS, staff recommends that the Council approve the contribution agreement with RANCHO MCHOLLAND, LLC, Authorize the City Manager to execute the agreement in the final form and format as approved by the City Attorney, and authorize the Administrative Services Director to replace $60,000 of Measure "A" Funds with the Developer Cost Contribution.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS, AND RESOLVES AS FOLLOWS:

SECTION 1.FINDINGS - The recitals set forth above are hereby adopted as findings in support of this Resolution.

SECTION 2.EXECUTION – The City Manager is authorized to execute the cost contribution agreement in final form and format approved by the City Attorney.

SECTION 3.AUTHORIZATION - The Administrative Services Director is authorized to allocate the $60,000 Developer contribution to Fund 222 Measure ‘A’ to reimburse Measure ‘A’ funds expended on the pavement rehabilitation along the Project frontage.

SECTION 4.EFFECTIVE DATE - This Resolution shall become effective upon adoption.

Page 6 of 52 ends

10.A.

Page 242 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-XXX 4
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
PASSED, APPROVED, AND ADOPTED this 24th day of February, 2026. ____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Elodie Klug, Deputy City Clerk

Page 7 of 52 ends

10.A.

Page 243 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-XXX 5
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
State of California )
County of Riverside )
City of Hemet )
I, Elodie Klug, Deputy City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 24th day of February, 2026, and was passed by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:
_____________________________
Elodie Klug, Deputy City Clerk

Page 8 of 52 ends

10.A.

Page 244 of 353 ends

1 COST CONTRIBUTION AGREEMENT BETWEEN

THE CITY OF HEMET AND RANCHO MCHOLLAND, LLC

FOR PAVEMENT REHABILITATION IMPROVEMENTS

This Cost Contribution Agreement (“Agreement”) is made and entered into this ____ day of ____ 2026 (“Effective Date”) by and between the City of Hemet, a California municipal corporation (“City”) and RANCHO MCHOLLAND, LLC, a California limited liability company (“Developer”). The City and Developer are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

WHEREAS, Developer is constructing a commercial development known as Stetson Corner (the “Project”), including CUP19- 004, SDR 19 -010, and Parcel Map 37779, located at the southeast corner of Stetson Avenue and Sanderson Avenue in the City of Hemet, including a 7-Eleven convenience store and car wash and associated site improvements (collectively, the "Project"), located at the southeast corner of Stetson Avenue and Sanderson Avenue in the City of Hemet, County of Riverside, State of California; and
WHEREAS, as a condition of approval of the Project ("Conditions of Approval" or "COA"), Developer is required to design, construct, and thereafter dedicate t o the City certain frontage pavement improvements along Stetson Avenue and Sanderson Avenue ("Frontage Improvements"); and

WHEREAS, independently of the Project, the City has programmed two Capital Improvement Program ("CIP") projects: (i) CIP No. 5764 – Stetson Avenue Pavement Rehabilitation, and (ii) CIP No. 2407 – Sanderson Avenue Pavement Rehabilitation (collectively, the "CIP Projects"), each of which encompasses the location of the Frontage Improvements designing and construct ing pavement rehabilit ation and ancillary improvements on a corridor-wide basis (the "City Improvements"); and

WHEREAS, the Parties desire to streamline delivery of public infrastructure by having the City construct the City Improvements (which include, and are more extensive than, the Frontage Improvements) and having the Developer satisfy its Frontage Improvement obligation by making a single monetary contribution to the City equal to the amount of Sixty Thousand Dollars ($60,000) (the "Contribution"); and

WHEREAS, Developer has deposited interim security with the City in the amount of One Hundred Twenty-Five Thousand Dollars ($125,000.00) (the “Interim Security”) to obtain certificates of occupancy for the 7-Eleven and car wash pending satisfaction of the Frontage Improvement obligation, and the Parties desire to convert Sixty Thousand Dollars ($60,000) of the Interim S ecurity into the Contribution provided for herein and refund to Developer the remaining balance of the Interim Security.; and

WHEREAS, the City’s actual costs for completing the pavement rehabilitation improvements along the Project’s frontage as part of CIP Nos. 5764 and 2407 Pavement Rehabilitation Projects exceeded the Developer’s original estimated obligation, but the Parties have agreed that Developer’s contribution of Sixty Thousand Dollars ($60,000.00)

Page 9 of 52 ends

10.A.

Page 245 of 353 ends

2 represents a fair and reasonable allocation of costs attributable to the Project’s frontage improvements; and

WHEREAS, prior to execution of this Agreement, the City has completed the pavement rehabilitation improvements along the Project’s frontage as part of CIP s No. 5764 and 2407 and during inspection of the Project site, the City has identified various improvements that were not constructed in accordance with the approved plans and Water Quality Management Plan (WQMP), which deficiencies must be corrected before release of the remaining Interim Security.

NOW THEREFORE, in consideration of the mutual covenants and promises contained herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

SECTION 1. DEFINITIONS

1.1 City Engineer means the duly appointed City Engineer of the City of Hemet or his/her designee.

1.2 Construction Cost Estimate means the sum of Sixty Thousand Dollars ($60,000), which represents the Parties’ agreed upon contribution amount for Developer’s share of the Frontage Improvements . The parties acknowledge that actual construction costs for the pavement rehabilitation work exceeded this amount, as detailed in Exhibit "A" attached hereto, but have agreed that this contribution fairly allocates Developer’s proportionate responsibility for the Frontage Improvements.

1.3 Contribution and Interim Security have the meanings set forth in Recitals and Section 3.1.

1.4 Frontage Improvements has the meaning set forth in Recitals and further depicted on Exhibit "B" (Conceptual Frontage Improvement Limits).

SECTION 2. TERM

2.1 This Agreement shall commence on the Effective Date and shall remain in effect until the earliest of (i) Developer’s satisfactory completion of all site improvement corrections as specified in Exhibit “C” and determined by the City Engineer, (ii) City’s release of all remaining Interim Security to Developer, or (iii) termination pursuant to Section 7 (the "Term").

SECTION 3. DEVELOPER CONTRIBUTION

3.1 Amount. The City hereby converts Sixty Thousand Dollars ($60,000.00) of the Interim Security into the Contribution, which amount equals one hundred

Page 10 of 52 ends

10.A.

Page 246 of 353 ends

3 percent (100%) of the Construction Cost Estimate. City acknowledges that said Sixty Thousand Dollars ($60,000.00) of the Interim Security has been applied to satisfy Developer’s obligations for the Project’s frontage improvements. The Contribution shall be immediately transferred to CIP No. 2407 – Sanderson Avenue Pavement Rehabilitation. City shall retain the remaining Sixty -Five Thousand Dollars ($65,000.00) from the Interim Security until Developer has satisfactorily complete corr ection of all site improvements to comply with approved plans and the Water Quality Management Plan (WQMP) for the Project, as determined by the City Engineer in his or her sole discretion. Upon such satisfactory completion, City will refund the remaining security within thirty (30) days.

3.2 Timing and Method of Payment. City acknowledges receipt of the One Hundred Twenty -Five Thousand Dollars ( $125,000) Interim Security and upon execution of this Agreement, hereby converts Sixty Thousand Dollars ($60,000.00) thereof into the Contribution for immediate transfer to reimburse Fund 222 (Measure A) for costs incurred to complete these improvements.

3.3 Security Conversion. Upon execution of this Agreement and the City's conversion of Sixty Thousand Dollars ($60,000.00) of the Interim Security into the Contribution pursuant to Section 3.1, any cash deposits or surety bonds previously furnished by Developer solely to secure the Frontage Improvements (other than the Interim Security) shall be released or returned within thirty (30) days. For clarity, the remaining Sixty -Five Thousand Dollars ($65,000.00) of the Interim Security and previously furnished surety bonds shall be retained by the City in accordance with Section 3.1 until Developer has satisfactorily completed correction of all site improvements to comply with approved plans and the Water Quality Management Plan (WQMP), and such retained security shall not be released based solely upon the City's receipt of the Contribution for the Frontage Improvements.

3.4 Site Deficiency Corrections. Developer acknowledges that the City has identified various site improvements that were not constructed in accordance with approved plans and the WQMP. Developer shall correct all such deficiencies to the satisfaction of the City Engineer within ninety (90) days of receiving written notice specifying the deficiencies in reasonable detail, or such longer period as the City Engineer may approve in writing. The remaining Interim Security shall not be released until all deficiencies have been corrected to the City's satisfaction.

SECTION 4. CITY’S USE OF CONTRIBUTION

4.1 Restricted Use. City shall use the Contribution exclusively to reimburse for design, construction, inspection, administration, or other eligible costs

Page 11 of 52 ends

10.A.

Page 247 of 353 ends

4 associated with CIP s No. 5764 and 2407 –Pavement Rehabilitation Projects. City acknowledges that the frontage pavement rehabilitation work along the Project’s frontage has been completed as of October 15, 2025 and the Contribution shall be applied toward the actual costs incurred by the City for such completed work. City represents that the actual costs for the portion of CIP N o. 2407 attributable to the Project’s F rontage equaled or exceeded the Contribution amount.

4.2 Completion Acknowledgment. The Parties acknowledge that the City has completed the pavement rehabilitation improvements along the Project’s Frontage as part of CIP s No. 5764 and 2407 –Pavement Rehabilitation Projects prior to execution of this Agreement.

4.3 No Refund or Further Accounting. The Parties acknowledge that the City has completed all Frontage Improvements prior to execution of this Agreement and that the actual costs incurred by the City for such improvements exceeded the Contribution amount, as detailed in Exhibit "A." The entire Contribution shall be refunded applied to reimburse Fund 222 (Measure A) for costs already incurred. City shall have no obligation to provide any further accounting or to refund any portion of the Contribution to Developer.

SECTION 5. SATISFACTION OF CONDITIONS OF APPROVAL

5.1 Upon execution hereof, the City Engineer shall issue a written notice confirming that the COA requiring construction of the Frontage Improvements has been satisfied in full through the City's completion of the pavement rehabilitation work and Developer's Contribution. Developer shall have no further obligation to design, construct, or maintain the Frontage Improvements. However, this satisfaction of the Frontage Improvement obligation does not release Developer from its obligation to correct deficiencies in other site improvements that do not comply with approved plans and the WQMP , as identified in Exhibit “ C”, and the City retains the right to hold the remaining Interim Security until such corrections are satisfactorily completed as determined by the City Engineer in his or her sole reasonable discretion
.

SECTION 6. REPRESENTATIONS, WARRANTIES, AND INDEMNIFICATION

6.1 Authority. Each Party represents and warrants that it has full power and authority to enter into this Agreement and to perform its obligations hereunder.

Page 12 of 52 ends

10.A.

Page 248 of 353 ends

5 6.2 Indemnification. To the fullest extent permitted by law, Developer shall defend, indemnify, and hold harmless City and its elected and appointed officials, officers, employees, agents, and volunteers from and against any and all third-party claims, demands, causes of action, liabilities, damages, losses, or expenses (including reasonable attorneys’ fees) arising out of or related to Developer’s (i) breach of this Agreement, (ii) negligent or willful acts or omissions in connection with the Project, or (iii) violation of any applicable law. City shall defend, indemnify, and hold har mless Developer and its officers, managers, employees, and agents from and against any third-party claims arising solely from City’s gross negligence or willful misconduct in the administration of this Agreement.

SECTION 7. DEFAULT AND TERMINATION

7.1 Default. Either Party may deliver written notice to the other Party specifying any material breach of this Agreement ("Default Notice"). The breaching Party shall have ten (10) calendar days to cure any monetary default and thirty (30) calendar days to cure any non -monetary default, or, if such non-monetary default cannot reasonably be cured within thirty (30) days, such additional time as is reasonably necessary so long as the breaching Party commences cure within the initial thirty (30) days and diligently prosecutes such cure to completion.

7.2 Remedies. If the breaching Party fails to cure within the applicable cure period, the non-breaching Party may pursue any and all remedies available at law or in equity, including specific performance, provided that neither Party shall be liable for incidental or consequential damages.

Notwithstanding the foregoing, nothing in this Section shall limit the City’s ability to exercise its police powers or regulatory authority.

7.3 Termination Prior to Payment. City may terminate this Agreement for convenience prior to receiving the Contribution by providing ten (10) business days’ written notice to Developer. Upon termination, City shall promptly return any previously deposited security related solely to the Frontage Improvements.

SECTION 8. GENERAL PROVISIONS

8.1 Entire Agreement. This Agreement, including Exhibits "A" , "B," and “C”

constitutes the entire understanding between the Parties concerning the subject matter and supersedes all prior negotiations and agreements, whether oral or written.

8.2 Amendments. This Agreement may be amended only by a written instrument executed by duly authorized representatives of both Parties.

Page 13 of 52 ends

10.A.

Page 249 of 353 ends

6 8.3 Assignment. Developer may not assign its rights or obligations under this Agreement without the prior written consent of City, which may be granted or withheld in City’s sole discretion. Any permitted assignee must assume all of Developer’s obligations under this Ag reement in a written instrument satisfactory to City. Any assignment in violation of this Section shall be void.

8.4 Notices. All notices required or permitted under this Agreement shall be in writing and delivered in person, by reputable overnight courier, or by certified U.S. mail, return -receipt requested, postage prepaid, to the addresses set forth below. Notice shall be deemed given on the date of delivery if personally served, the next business day if delivered by overnight courier, or three (3) business days after deposit in the U.S. mail if mailed.

City: City of Hemet
Attn: City Engineer
445 E. Florida Avenue
Hemet, CA 92543

Developer: Rancho McHolland, LLC
4350 Von Karman Ave, Suite 200
Newport Beach, CA 92660
Attn.: Patrick Charriou

Either Party may change its notice addres s by giving written notice to the other Party.

8.5 Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to conflict-of-law principles. Venue for any action arising out of this Agreement shall be in the Superior Court of the State of California for the County of Riverside.

8.6 Severability. If any provision of this Agreement is held invalid by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect, and the invalid provision shall be replaced by a valid provision that most closely effectuates the intent of the Parties.

8.7 Waiver. No waiver of any breach or default shall be deemed a waiver of any other breach or default.

8.8 Time of Essence. Time is of the essence in the performance of each covenant and condition of this Agreement.

8.9 Counterparts; Signatures. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which

Page 14 of 52 ends

10.A.

Page 250 of 353 ends

7 together shall constitute one instrument. Electronic signatures and PDF copies of original signatures shall be deemed valid and binding to the same extent as original signatures , provided such electronic signatures comply with the California Uniform Electronic Transactions Act (Civil Code § 1633.1 et seq.) and any applicable City policies regarding electronic signatures.

8.10 Third-Party Beneficiaries. There are no intended third-party beneficiaries to this Agreement.

[Signatures on the Following Page]

Page 15 of 52 ends

10.A.

Page 251 of 353 ends

8 IN WITNESS WHEREOF , the P arties have caused their duly authorized representatives to execute this Agreement.

CITY OF HEMET DEVELOPER

RANCHO MCHOLLAND, LLC

Mark Prestwich Patrick Charriou, Manager
City Manager

ATTEST:

__________________________
Elodie Klug
Deputy City Clerk

APPROVED AS TO FORM:

Steven P. Graham
City Attorney

Page 16 of 52 ends

10.A.

Page 252 of 353 ends

9 EXHIBIT “A”

The City CIP 2407 for Sanderson Avenue Rehabilitation had attributed costs of $85,903.71 for the Stetson Corner Development’s frontage responsibility as shown in the Table above
and depicted by the blue overlay in Sheet 1 of Exhibit B.

The City CIP 5764 had costs of $8,950.84 for the Stetson Corner Development’s frontage responsibility as shown in the Table above and depicted by the blue overlay in Sheet 2 of Exhibit B.

The agreed upon Developer’s contribution amount of $60,000 will be reimbursed to City Fund 222 (Measure A) to replace this amount utilized from this fund to pay for these completed improvements.

Item Num Description UOM QTY Unit Price Line Total
1 Mobilization / Demobilization (Not to Exceed 5%) LS 1 $160,000.00 $160,000.00 2.62% 4,192.35$ 2 Temporary Traffic and Pedestrian Control LS 1 $195,000.00 $195,000.00 2.62% 5,109.43$ 3 Signing & Striping LS 1 $40,000.00 $40,000.00 2.62% 1,048.09$ 4 Temporary Construction Project Identification Sign LS 1 $8,000.00 $8,000.00 2.62% 209.62$ 5 Water Quality Control LS 1 $11,000.00 $11,000.00 2.62% 288.22$ 8 Grind and Overlay 0.35' SF 425000 $3.60 $1,530,000.00 16510 59,436.00$ 10 Adjust Existing Manhole Rim to Finish Surface. EA 19 $2,000.00 $38,000.00 4 8,000.00$ 31 Install Detectable Warning Surfaces EA 17 $1,500.00 $25,500.00 1 1,500.00$ 33 Replace Existing "Type E" Traffic Signals Loop
Detectors EA 76 $510.00 $38,760.00 12 6,120.00$
85,903.71$
Item Num DESCRIPTION UOM QTY UNIT PRICE LINE TOTAL
1 Mobilization (not to exceed 5%) LS 1 55,000.00$ 55,000.00$ 2.24% 1,231.76$ 2 Traffic and Pedestrian Control LS 1 117,419.25$ 117,419.25$ 2.24% 2,629.68$ 3 SWPPP Implementation per Contract Documents LS 1 7,000.00$ 7,000.00$ 2.24% 156.77$ 6 Remove/Sandblast Existing Striping, Marking, Or LS 1 8,000.00$ 8,000.00$ 5.37% 429.46$ 9 Crack Fill and Apply Type II Slurry Seal. SF 165,975 0.43$ 71,369.25$ 8910 3,831.30$ 20 Signing & Striping Thermoplastic & Painted LS 1 30,000.00$ 30,000.00$ 2.24% 671.87$ 8,950.84$
94,854.55$ Total Attributed to Stetson Corner
$ Attributed to
PM 37779
% Attributed to
PM 37779
$ Attributed to
PM 37779
CIP 2407 - Stetson Corner Sanderson Ave Frontage Pavement Improvements CIP 5764 - Stetson Corner Stetson Ave Frontage Pavement Improvements ALL AMERICAN ASPHALT % Attributed to
PM 37779
All American Asphalt

Page 17 of 52 ends

10.A.

Page 253 of 353 ends

10 EXHIBIT “B”

Plan Sheets depicting the frontage improvement completed by the City.

Page 18 of 52 ends

10.A.

Page 254 of 353 ends

5 40 20 40 80 120
SCALE: 1"= 40'
0 SANDERSON AVE
FROM STA 50+00 TO STETSON AVE
C:\Users\DJaimes\OneDrive - City of Hemet\Engineering\CIP\2024 PROJECTS\2407 - 24.25 Citywide Pavement Rehabilitation\DESIGN\CADD\CADD\Sheets\2407_C-1-3 2024/25 CITYWIDE PAVEMENT

REHABILITATION
CIP NO. 2407

OF SHEETS
FILE NO.

SCALE:

DATE:

BENCHMARK:

DATE:

PREPARED UNDER THE SUPERVISION OF:
445 E. FLORIDA AVENUE
HEMET, CA 92543
(951) 765-2360
EA# E#
APPROVED BY:

NOAH RAU, RCE 74686

PUBLIC WORK DIRECTOR
DATE:DESIGNED BY: DRAWN BY: CHECKED BY:

DATE:

REVISIONS:

NO: BY:

CITY ENGINEER
SECTION 4216 OF THE GOVERNMENT

CODE REQUIRES A DIG ALERT

IDENTIFICATION NUMBER BE ISSUED
BEFORE A "PERMIT TO EXCAVATE" WILL
BE VALID. FOR YOUR DIG ALERT I.D.

NUMBER CALL UNDERGROUND SERVICE
ALERT 811, TOLL FREE
1-800-422-4133
TWO WORKING DAYS BEFORE YOU DIG.
19 AS SHOWN
JILLEEN L. FERRIS, R.C.E. NO. 86193

DEPUTY PUBLIC WORKS DIRECTOR/ASSISTANT

CITY ENGINEER

DJ DJ JF
10''S10''S
12''W
8''W8'
18''W 18''W
18''W 18''W
18''W
18''W
18''W
18''W
18''W
18''W
18''W
18''W
18''W
18''W
18''W

E E E E E E E E

E E E E E E E EE E E E E E E E

E E E E E E E E
8''G 8''G 8''G 8''G 8''G
8''G 8''G 8''G
8''G 8''G 8''G
8''G
8''G 8''G 8''G
8''G
2''G2''G
2''G
2''G
E-OH
E-OH
E-OH
E-OH

E-OHE-OH
E-OH

E-OHE-OHE-OH E-OH
E-OH
E-OH

E-OHE-OHE-OH
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
EE
50'75'
38'±39'±
25'
WV
C&G
C&G
CROSS
GUTTER
50'75'
39'±38'±
25'
WV (x3)
MH
MH
WV
STA 52+82.44 SANDERSON AVE

WATERSIDE DR
18" WATER

UNDERGROUND

ELECTRICAL

UNDERGROUND

ELECTRICAL
8" GAS

OVERHEAD

ELECTRICAL

OVERHEAD

ELECTRICAL
12" WATER
2" GAS
10" SEWER
8" WATER
.
.
18''W
18''W 18''W
18''W
18''W
18''W
18''W
18''W
18''W
18''W 18''W 18''W 18''W 18''W 18''W 18''W
12''S
12''S
12''S
12''S
12''S
12''S
12''S
12''S
12''S
12''S
12''S
12''S
48''SD
48''SD
48''SD
48''SD
48''SD
48''SD
SD
SD
SD
SD
SD
SD

E E E E E E E

E E E E E E E EE E E E E E E

E E E E E E E E
8''G 8''G
8''G 8''G 8''G
8''G
8''G 8''G 8''G
8''G 8''G 8''G
8''G
8''G 8''G
6''G6''G6''G 6''G
E-OH
E-OH
E-OH
E-OH
E-OH
E-OH
E-OH
E-OH
E-OH

E-OHE-OHE-OHE-OH
E-OH
E-OH
E-OH
E-OH

E-OHE-OHE-OHE-OH
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
E
50'75'
38'±51'±
25'
50'75'
37'±39'±
25'
WV
MH
WV
WV
WV
MH
WV
MH
MH
MH
MH

CONCRETE
MEDIAN
C&G
C&G
CROSS
GUTTER
STA 60+62.30 SANDERSON AVE

WATERSIDE DR
STA 67+46.60 SANDERSON AVE

WATERSIDE DR
STA 67+16.60 SANDERSON AVE

END OF CONSTRUCTION
18" WATER

UNDERGROUND

ELECTRICAL

UNDERGROUND

ELECTRICAL
8" GAS

OVERHEAD

ELECTRICAL
12" SEWER

UNDERGROUND

ELECTRICAL
48" SD
9' BOX

CULVERT

OVERHEAD

ELECTRICAL
.
.
.
.
.
.

NO. DESCRIPTION
GRIND AND OVERLAY 0.35' AC PAVEMENT.

CONSTRUCT SMOOTH PAVEMENT JOINT TRANSITION PER DETAIL 1 ON SHEET 18 2 3
4 5
6 7
ADJUST MANHOLE TO FINISH SURFACE PER C.O.H. STD DWG NO. W-702A ADJUST WATER VALVE COVERS AND GAS VALVE COVERS TO FINISH SURFACE PER C.O.H. STD DWG NO. W-702A
INSTALL BLUE DOT HYDRANT MARKER PER C.O.H. STD DWG NO. W-700B VERIFY LOCATION OF SURFACE AND SUBSURFACE MONUMENT. INSTALL NEW MONUMENT IF NOT FOUND OR TIE OUT AND REPLACE EXISTING MONUMENT IF DISTURBED PER C.O.H. STD DWG NO. M-900, M-900A, AND M-901. PRE- AND POST- CONSTRUCTION CORNER RECORDS TO BE FILED FOR ALL EXISTING MONUMENTS AFFECTED BY CONSTRUCTION.

P
ME

PROTECT IN PLACE

MATCH EXISTING GRADE
26 INSTALL DETECTABLE WARNING SURFACE ON EXISTING CURB RAMP 12 S
S
12''S
S
1 12''S12
12''S
''S
12''S
S
1 12''S2''
12''S
S
1212
48''SD8''S
48''SD
SD
48''SD
D
48 48''8''
SD
48''SD
'
48''SD
'S
D
48''SD
SD
48 SD
D
4 SDSSSDSS

SDSDDDSDDSSDD
EE EE8''8'' EEDDDD EEE EE EEE

EEEEEEEE EEEEEEEE EEE EEEEEEE EEEEEEEEEEE EEEEEE

EEEEEEEEEEEEE EEEEEE EEEEEE EEEEEEEE EEEE EEEEEEEEEEEEEEEE EEEEEE 8''G8''GGG
8''G
G 8''G8' 8''G'G
8''G8
8''G8''G 8''GG
EE
EE
505550'0050EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
5 3337'±±±± 37333± 3
12''S2''
12212
G 6''G
E-E
EE
Exhibit B - Sheet 1

Page 19 of 52 ends

10.A.

Page 255 of 353 ends

W STETSON AVE

CHECKERBERRY
CT

BUTTONWOOD
CT

RIBBONWOOD
CT

SEE UPPER RIGHT
MATCH LINE STA 70+00.00
MATCH LINE STA 80+00.00
SEE SHEET 8

W STETSON AVE
MATCH LINE STA 70+00.00

SEE BOTTOM LEFT

REMOVAL NOTES

CONSTRUCTION NOTES

OF SHEETS
FILE NO.

SCALE:

DATE:

BENCHMARK:

DATE:

PREPARED UNDER THE SUPERVISION OF:
445 E. FLORIDA AVENUE
HEMET, CA 92543
(951) 765-2360
EA# E#
APPROVED BY:

NOAH RAU, RCE 74686

PUBLIC WORK DIRECTOR
DATE:DESIGNED BY: DRAWN BY: CHECKED BY:

DATE:

REVISIONS:

NO: BY:

CITY ENGINEER
MICHAEL GARVEY, RCE 94178

PRINCIPAL ENGINEER
DATE:

RECOMMENDED FOR APPROVAL
BY:

AS SHOWN
21 TRENT BRUDIN, RCE 90924
SEE SHEET 1

A PUBLIC SERVICE BY UNDERGROUND SERVICE ALERT
WWW.DIGALERT.ORGTOLL FREE: 811

YOU DIG
BEFORE

YOU DIG

DAYS BEFORE

DIAL TWO WORKING
01/23/25

S SANDERSONAVE
04/01/2025
APPROVED BY:

JILLEEN L. FERRIS, RCE 86193

DEPUTY PUBLIC WORKS

DIRECTOR/ASSISTANT CITY ENGINEER
DATE:
04/01/2025
Exhibit B - Sheet 2

Page 20 of 52 ends

10.A.

Page 256 of 353 ends

11 EXHIBIT “C”

1. Complete proper construction of the water quality management plan (WQMP) Bioretention Basin No.1 as shown in Sheets 4, 5, 8, and 11 of the approved Precise Grading Plans (PGP) and the Final WQMP. The bioretention basin is not constructed per plan and is not treating water as intended. The Approved PGP is attached for reference.

2. Submit the Engineer of Record’s Post-Construction Certification of the BMPs utilized in the final WQMP as required by the City’s MS4 permit.

3. Install two (2) streetlights and seven (7) pedestrian lights per the original submitted plans as shown in the attached Street and Pathway Lighting Plan (3 sheets). The approved Street and Pathway Lighting Plans are attached for reference.

4. Complete the frontage landscaping in accordance with the approved LMD Landscape to be turned over to City for ongoing maintenance. The landscaping currently has many missing plants, not demonstrated to be on a separate meter, and not demonstrated to be on an approved controller.

The Approved LMD Landscape Plans are attached for reference.

Page 21 of 52 ends

10.A.

Page 257 of 353 ends

Page 22 of 52 ends

10.A.

Page 258 of 353 ends

Page 23 of 52 ends

10.A.

Page 259 of 353 ends

Page 24 of 52 ends

10.A.

Page 260 of 353 ends

Page 25 of 52 ends

10.A.

Page 261 of 353 ends

Page 26 of 52 ends

10.A.

Page 262 of 353 ends

Page 27 of 52 ends

10.A.

Page 263 of 353 ends

Page 28 of 52 ends

10.A.

Page 264 of 353 ends

Page 29 of 52 ends

10.A.

Page 265 of 353 ends

Page 30 of 52 ends

10.A.

Page 266 of 353 ends

Page 31 of 52 ends

10.A.

Page 267 of 353 ends

Page 32 of 52 ends

10.A.

Page 268 of 353 ends

R SSE T I REG
E RN
No. 69467
IL
Exp. 6/30/24

T A VIC
N
AI
E
S
OFES
PR
DE
OI
N
LA
E
ING

JSAMOHT
WHEAT
OSEPH
F
FCALI
OR
TE
O
N
AI

OF SHEETS
FILE NO.

City of Hemet
510 E. FLORIDA AVENUE
HEMET, CA 92543
(951) 765-2360
City of Hemet
APPROVED:

ENGINEERING DEPARTMENT
E#DESIGNED BY: DRAWN BY: CHECKED BY:

DATE:

REVISIONS:

NO: BY:

R
KNOW WHAT'S BELOW.

CALL BEFORE YOU DIG.

STETSON AVENUE

AT SANDERSON AVENUE
1 3
Traffic Engineering &
Transportation Planning Consultants
9841 Irvine Center Dr., Suite 200, Irvine, CA 92618
t: (949) 878-3509 f: (949) 878-3593
www.tjwengineering.com
TJW ENGINEERING, INC.
’
’

JS JS TJW

STETSON CORNER

IN THE CITY OF HEMET, STATE OF CALIFORNIA

STREET & PATHWAY LIGHTING PLAN
FOR
CUP 19-004

SANDERSON AVE AND STETSON AVE

STREET & PATHWAY LIGHTING PLAN
EA# 2208-001

Page 33 of 52 ends

10.A.

Page 269 of 353 ends

67+00
66+00
65+00
64+00
63+00
62+00
660+00 661+00 662+00 663+00659+00
68+00

R SSE T I REG
E RN
No. 69467
IL
Exp. 6/30/24

T A VIC
N
AI
E
S
OFES
PR
DE
OI
N
LA
E
ING

JSAMOHT
WHEAT
OSEPH
F
FCALI
OR
TE
O
N
AI

OF SHEETS
FILE NO.

City of Hemet
510 E. FLORIDA AVENUE
HEMET, CA 92543
(951) 765-2360
City of Hemet
APPROVED:

ENGINEERING DEPARTMENT
E#DESIGNED BY: DRAWN BY: CHECKED BY:

DATE:

REVISIONS:

NO: BY:

R
KNOW WHAT'S BELOW.

CALL BEFORE YOU DIG.

STETSON AVENUE

STREET & PATHWAY LIGHTING PLAN

AT SANDERSON AVENUE
2 3
Traffic Engineering &
Transportation Planning Consultants
9841 Irvine Center Dr., Suite 200, Irvine, CA 92618
t: (949) 878-3509 f: (949) 878-3593
www.tjwengineering.com
TJW ENGINEERING, INC.

JS JS TJW EA# 2208-001

Page 34 of 52 ends

10.A.

Page 270 of 353 ends

JS JS TJW

R SSE T I REG
E RN
No. 69467
IL
Exp. 6/30/24

T A VIC
N
AI
E
S
OFES
PR
DE
OI
N
LA
E
ING

JSAMOHT
WHEAT
OSEPH
F
FCALI
OR
TE
O
N
AI

OF SHEETS
FILE NO.

City of Hemet
510 E. FLORIDA AVENUE
HEMET, CA 92543
(951) 765-2360
City of Hemet
APPROVED:

ENGINEERING DEPARTMENT
E#DESIGNED BY: DRAWN BY: CHECKED BY:

DATE:

REVISIONS:

NO: BY:

R
KNOW WHAT'S BELOW.

CALL BEFORE YOU DIG.

DETAILS AND WIRING DIAGRAM
STREET & PATHWAY LIGHTING PLAN 3
3 Traffic Engineering &
Transportation Planning Consultants
9841 Irvine Center Dr., Suite 200, Irvine, CA 92618
t: (949) 878-3509 f: (949) 878-3593
www.tjwengineering.com
TJW ENGINEERING, INC.

EA# 2208-001
4"
Poleheight
abovegrade
15'
4'-6" Handhole &
coverplate
14"
4'-7"
2 -1/2”x 5”wiring
aperture
18” belowgrade
8 1
4"
Hot-dipped Galvanized Baseplate
20”x 20”x 3/4”
Wire Access Hole
KCC, KCH - (4) 7/8” x 1- 3/4” L
Slots on a 23 - 3/8”ø B.C
Typically pole is set 2- 3” below
grade to hide anchor bolts
Anchor Rod(55,000 PSI min. yield)
3/4”x 27”x 3-3/4”
bend minimum
Foundationby others
*FOR DIRECT BURIAL OPTION
(ALTERNATE TO DIRECT BURIAL)

1. Auger the setting hole.

2. Set pole in hole and plumb
straight.

3. Backfill* with required backfill
tamping every 4” to 6”.
(ALTERNATE TO BASEPLATE)
36"
40”
20" DIA.
16"

Page 35 of 52 ends

10.A.

Page 271 of 353 ends

Page 36 of 52 ends

10.A.

Page 272 of 353 ends

Page 37 of 52 ends

10.A.

Page 273 of 353 ends

Page 38 of 52 ends

10.A.

Page 274 of 353 ends

Page 39 of 52 ends

10.A.

Page 275 of 353 ends

Page 40 of 52 ends

10.A.

Page 276 of 353 ends

Page 41 of 52 ends

10.A.

Page 277 of 353 ends

Page 42 of 52 ends

10.A.

Page 278 of 353 ends

Page 43 of 52 ends

10.A.

Page 279 of 353 ends

Page 44 of 52 ends

10.A.

Page 280 of 353 ends

Page 45 of 52 ends

10.A.

Page 281 of 353 ends

Page 46 of 52 ends

10.A.

Page 282 of 353 ends

Page 47 of 52 ends

10.A.

Page 283 of 353 ends

Page 48 of 52 ends

10.A.

Page 284 of 353 ends

Page 49 of 52 ends

10.A.

Page 285 of 353 ends

Page 50 of 52 ends

10.A.

Page 286 of 353 ends

Page 51 of 52 ends

10.A.

Page 287 of 353 ends

Page 52 of 52 ends

10.A.

Page 288 of 353 ends

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 24 2026
Department: Human Resources
Submitted by: Mark Prestwich, City Manager
Norma Rangel, Human Resources Manager;

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

TITLE:

A Resolution of the City Council of the City of Hemet, California, Approving an Interim Appointment of Juanita "Jane" Halstead to the Vacant Position of City Clerk and Approval of Employment Agreement

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, Appointing Juanita "Jane" Halstead as Interim City Clerk effective February 26, 2026; Approving the Temporary At-Will Employment Agreement for Halstead as a CalPERS retired annuitant; and making specific findings regarding Sections Code with compliance and Government the of necessity the appointment 21221(h) and 7522.56.

BACKGROUND:

The City of Hemet recently experienced a vacancy in the position of City Clerk following the resignation of the previous incumbent. Given the critical nature of City Clerk services, it is essential to maintain executive leadership and oversight of the City Clerk's Office to ensure continuity of operations. The City has initiated an active recruitment process to identify a permanent City Clerk. In the a Clerk City experienced highly Ms. Halstead, has Manager City the interim, identified professional and CalPERS retired annuitant, as uniquely qualified to serve as the Interim City Clerk.

ANALYSIS:

into the by governed strictly is position annuitant a California retired a Hiring vacant Public Employees’ Retirement Law (PERL) and the Public Employees’ Pension Reform Act (PEPRA). This appointment meets all statutory requirements as outlined below:

1. Statutory Authority for Interim Appointment. Section 21221(h) allows a governing body to appoint a retired annuitant to a vacant position during an active recruitment for a permanent replacement. The Council must find that the retiree possesses "specialized skills". Ms. Halsteads’ extensive experience

Page 1 of 13 ends

11.A.

Page 289 of 353 ends

as a City Clerk constitutes the specialized skills necessary to prevent a "stoppage of public business" during the recruitment period.

2. Compensation and Hour Limitations. The proposed Employment Agreement complies with all CalPERS financial restrictions: (i) Hourly Rate: The rate of $70.40 is derived from the City's publicly available salary schedule for the City Clerk position; (ii) 960-Hour Limit: Ms. Halstead is prohibited from working more than 960 hours per fiscal year; (iii) No Benefits: In accordance with state law, Ms.

Halstead will receive no benefits, incentives, or compensation in lieu of benefits.

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.

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.

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

FISCAL IMPACT:

There is no fiscal impact to this action. There is existing budget due to the position vacancy.

ATTACHMENT(S):

Resolution- Interim City Clerk-February 2026
Halstead - Interim City Clerk Employment Agreement.v1

Page 2 of 13 ends

11.A.

Page 290 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-029 1
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28

CITY OF HEMET

HEMET, CALIFORNIA
RESOLUTION NO. 2026-029

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA, APPOINTING JUANITA
“JANE” HALSTEAD AS THE INTERIM CITY CLERK, A

CALPERS RETIRED ANNUITANT, AND APPROVING

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

WHEREAS, Government (Gov.) Code section 21221(h) of the Public Employees’ Retirement Law permits the governing body to appoint a CalPERS retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and
WHEREAS, the City of Hemet desires to appoint Juanita “Jane” Halstead (Halstead) as an interim appointment, retired annuitant to the vacant position of City Clerk for the City of Hemet under Gov. Code section 21221(h), effective February 26, 2026; and
WHEREAS, the City Council, the City of Hemet, and Halstead certify that Halstead has not and will not receive a Golden Handshake or any other retirement- related incentive; and

Page 3 of 13 ends

11.A.

Page 291 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-029 2
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
WHEREAS, an appointment under Gov. Code section 21221(h) requires the retiree is appointed into the interim appointment during recruitment for a permanent appointment; and
WHEREAS, the governing body has authorized the search for a permanent appointment on January 26, 2026; and
WHEREAS, this Gov. Code section 21221(h) appointment shall only be made once and therefore will end on February 26, 2027; and
WHEREAS, the entire employment agreement, contract, or appointment document between Halstead and the City of Hemet has been reviewed by this body and is attached herein; and
WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the maximum base salary for this position is $14,127 (monthly salary) and the hourly equivalent is $81.50; the minimum base salary for this position is $10,542 (monthly salary) and the hourly equivalent is $60.82; and WHEREAS, the hourly rate paid to Halstead will be $70.40; and WHEREAS, Halstead has not and will not receive any other benefit, incentive, compensation in lieu of benefit, or other form of compensation in addition to this hourly pay rate.

THEREFORE, BE IT RESOLVED THAT the City Council hereby certifies the nature of the employment of Halstead as described herein and detailed in the attached employment agreement / contract / appointment document and that this appointment is

Page 4 of 13 ends

11.A.

Page 292 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-029 3
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
necessary to fill the critically needed position of City Clerk for the City of Hemet by February 26, 2026 because there is an immediate need for departmental oversight, which is not able to be fulfilled with existing personnel, due to the current demands placed on those existing positions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS, AND RESOLVES AS FOLLOWS:

SECTION 1.The City Council hereby appoints Juanita Halstead as Interim City Clerk, effective February 26, 2026, pursuant to the authority and requirements of Government Code Sections 21221(h) and 7522.56.

SECTION 2.The City Council hereby approves the Employment Agreement between the City of Hemet and Halstead and authorizes the City Manager to execute the same.

SECTION 3.The City Council hereby certifies that the nature of the employment and the specialized skills of Halstead are essential for the continued operation of the City Clerk’s office during the search for a permanent replacement.

SECTION 4.The City Manager and Human Resources Manager are hereby authorized and directed to take all such other and further actions as may be necessary to effectuate the intent of this Resolution and ensure compliance with CalPERS reporting and monitoring requirements, including but not limited to the timely reporting of hours and compensation.

SECTION 5. This Resolution shall become effective immediately upon its adoption.

Page 5 of 13 ends

11.A.

Page 293 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-029 4
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
PASSED, APPROVED, AND ADOPTED this 24th day of February, 2026. ____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Elodie Klug, Deputy City Clerk

Page 6 of 13 ends

11.A.

Page 294 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-029 5
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
State of California )
County of Riverside )
City of Hemet )
I, Elodie Klug, Deputy City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 24th day of February, 2026, and was passed by the following vote:

AYES: Council Members: Clark, Lodge, Peterson, Mayor Pro Tem Males, Mayor Krupa.

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:
_____________________________
Elodie Klug, Deputy City Clerk

Page 7 of 13 ends

11.A.

Page 295 of 353 ends

1 AGREEMENT BETWEEN THE CITY OF HEMET AND JUANITA “JANE”

HALSTEAD FOR TEMPORARY AT-WILL EMPLOYMENT AS INTERIM CITY CLERK: GOVERNMENT CODE SECTIONS 21221(H) AND 7522.56
This Employment Agreement ("Agreement") serves as a contract of temporary, at-will, employment and is made and entered by and between the CITY OF HEMET, a municipal corporation, hereinafter referred to as "CITY," and JUANITA “JANE” HALSTEAD, an individual, hereinafter referred to as “HALSTEAD."

RECITALS
WHEREAS, the CITY is in need to fill a vacancy on a temporary basis for a limited duration to perform City Clerk duties, including full oversight and management of the City Clerk’s office, due to the vacancy of the City Clerk position; and
WHEREAS, HALSTEAD is a retired annuitant under the California Public Employees' Retirement System (CalPERS) and is limited in her ability to accept public employment without reinstatement pursuant to Government Code Sections 21221(h), and may not work more than 960 hours within a fiscal year (July 1 through June 30); and WHEREAS, HALSTEAD possesses the specialized skills and training required to perform the duties of this temporary assignment; and
WHEREAS, HALSTEAD desires to provide temporary services to the City under the terms of this Agreement and within the constraints of Government Code Sections 21221(h) and 7522.56 as a CalPERS retired annuitant, and the City desires to employ the services of HALSTEAD as Interim City Clerk of the City of Hemet on these terms to provide specialized services of a limited duration, subject to the terms and conditions set forth in this Agreement.

NOW, THEREFORE, BE IT RESOLVED THAT, in consideration of this Agreement, and the mutual promises, covenants and stipulations herein contained, the parties hereto agree as follows:

OPERATIVE PROVISIONS

1. APPOINTMENT OF INTERIM CITY CLERK
A. As a retired CalPERS annuitant, the CITY appoints HALSTEAD on a work schedule determined by the City Manager, or designee, not to exceed 960 hours in a single fiscal year. HALSTEAD is required to track all hours worked and regularly report them to the City Manager, or designee. HALSTEAD shall immediately notify the City Manager if cumulative hours worked approach 900 hours in any fiscal year to ensure compliance with the 960-hour annual limitation under Government Code Section 21221(h).

B. HALSTEAD hereby agrees to faithfully and diligently perform the assigned duties as specified by this Agreement.

Page 8 of 13 ends

11.A.

Page 296 of 353 ends

1 C. The CITY hereby agrees to employ HALSTEAD as a temporary, at-will, employee of the CITY. Temporary employment to commence on February 26, 2026 and terminate on or before the position of City Clerk is filled by a permanent employee.

2. SCOPE OF SERVICES
A. HALSTEAD will perform the services needed to serve the CITY which include, without limitation, performing the functions and duties specified by statute and relevant City regulations for a City Clerk, and to perform such other legally permissible and proper duties and functions as the CITY may assign.

B. HALSTEAD is appointed as a temporary, at-will, employee and will temporarily provide highly specialized skills in connection with provision of City Clerk services to City staff, City officials and the community.

C. HALSTEAD shall perform services consistent with the specialized expertise and professional skill and care ordinarily provided by City Clerks in the same or similar locality under the same of similar circumstances.

3. TERM; TEMPORARY, AT WILL EMPLOYMENT RELATIONSHIP
A. HALSTEAD’ temporary employment will commence on the February 26, 2026 and will expire upon the earlier of the following: (i) February 26, 2027; (ii) the position of City Clerk being filled by a permanent employee; or (iii) upon reaching 960 hours worked for the City in a fiscal year. This Agreement may be terminated sooner as set forth herein or based upon the CITY's needs, as determined in the CITY’s sole discretion.

B. The temporary employment of HALSTEAD under this Agreement is at-will.

Nothing in this Agreement prevents, limits, or otherwise interferes with the right of HALSTEAD to resign from her position with the CITY. Nothing in this Agreement prevents, limits, or otherwise interferes with the right of the CITY to terminate the services of HALSTEAD.

HALSTEAD has no property interest in this position.

C. HALSTEAD is appointed by and serves at the pleasure of the City Manager.

Nothing herein may be taken to imply or suggest a guaranteed term or tenure.

D. CITY may terminate this Agreement with or without cause at any time by serving HALSTEAD with notification of such termination by mail, email, or by City Representative's verbal notice of termination. CITY will compensate HALSTEAD for all hours actually worked and reimburse her for allowable costs pursuant to City policies incurred through and including the effective date of termination.

4. COMPENSATION

Page 9 of 13 ends

11.A.

Page 297 of 353 ends

1 A. CITY agrees to pay HALSTEAD for her services rendered pursuant to this Agreement based on performance of duties comparable to those performed by the regular City Clerk, at an hourly rate of $70.40 which does not exceed the hourly rate paid to other employees performing comparable duties as listed on the City's publicly available salary schedule. Payments will be made in installments in the same form and manner upon which other City employees are paid and will include all applicable payroll taxes and withholdings.

B. HALSTEAD agrees that for her services rendered pursuant to this Agreement no other compensation, benefits, incentives, compensation in lieu of benefits, or any other form of compensation in addition to the hourly pay rate and expense reimbursements specified in Section

4.C will be granted. CalPERS service credit will not be accrued and no additional retirement rights or benefits will be granted to HALSTEAD.

C. In addition to the foregoing compensation, CITY will reimburse HALSTEAD for actual and necessary ordinary out-of-pocket expenses as allowed by City policies and reasonably incurred in performance of the service provided to CITY pursuant to this Agreement.

5. EXCLUSIVE EMPLOYMENT: HALSTEAD agrees to remain in the exclusive employment of the CITY while temporarily employed by the CITY, and to avoid any conflicting interests. Exclusive employment, however, is not construed to preclude occasional teaching, writing, speaking, or consulting performed on HALSTEAD’ time off, even if outside compensation is provided for such services. Said activities are expressly allowed, provided that in no case is any activity allowed which would present a conflict of interest with the City and City approves such activities. HALSTEAD agrees to provide written notification of any outside activity within the meaning of this provision upon which time, the City will have the sole discretion to approve or deny such activities.

6. CONFLICTS OF INTEREST: HALSTEAD represents that she does not have any material financial interest, direct or indirect, in any contract or decision made by or on behalf of the CITY that may be affected by the services to be provided to the CITY pursuant to this Agreement, other than a financial interest that is similar, in all material respects, to the interests of the general public. HALSTEAD agrees to comply with the CITY’s conflict of interest code as adopted by the City Council.

7. CITY PROPERTY AND PROPRIETARY INFORMATION: HALSTEAD understands and agrees that, in the performance of the services under this Agreement, HALSTEAD may have access to private or confidential information that may be owned or controlled by CITY, and that such information may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to CITY. HALSTEAD agrees that, absent express written consent of City, all information disclosed by CITY to HALSTEAD shall be held in confidence and used only in performance of the Agreement. HALSTEAD shall exercise the same standard of care to protect such information as a reasonably prudent employee would use to protect its own proprietary data.

8. INDEMNIFICATION: CITY acknowledges its statutory obligation under Government Code 825 and 995 to defend and indemnify HALSTEAD from and against any and all claims,

Page 10 of 13 ends

11.A.

Page 298 of 353 ends

1 actions and liabilities arising from work performed within the scope of her duties under this Agreement. The CITY may compromise and settle any such claim or suit and pay the amount of any settlement or judgment rendered therefrom. This section is not intended to provide any rights in excess of those rights provided by state law.

9. NOTICES: Notices pursuant to this Agreement shall be in writing and may be affected either by personal delivery or mail. Mailed notices shall be addressed to the parties as set forth below, but each party may change their address by written notice given in accordance with this section. Notices delivered personally will be deemed communicated as of actual receipt. Mailed notices will be deemed communicated and received as of three (3) calendar days following the date of mailing.

CITY EMPLOYEE
City of Hemet
Attention: City Manager
445 E Florida Avenue
City Hall
Hemet, CA 92543
Juanita “Jane” Halstead
(Home address on file with
the Human Resources
Department)

10. ENTIRE AGREEMENT: This Agreement represents the entire Agreement between the parties and supersedes any and all other Agreements, either oral or in writing, between the parties with respect to the temporary at-will employment of HALSTEAD by the CITY, and contains all of the covenants and Agreements between the parties with respect to that temporary at-will employment. Each party to this Agreement acknowledges that no representations, inducements, promises, or Agreements, oral or otherwise, have been made by either party, or by anyone acting on behalf of either party, which are not embodied herein, and that no other employment Agreement, statement, or promise not contained in this Agreement shall be valid or binding upon either party.

11. GOVERNING LAW: In the event that suit shall be brought by either party to this Agreement, the parties agree that venue shall be exclusively vested in the state courts of the County of Riverside, California, and this Agreement shall be governed by and construed in accordance with the laws of the State of California. By entering into this Agreement and performing work or providing services hereunder, HALSTEAD consents to jurisdiction over their persons and over the subject matter of any claim or legal action in such courts, and consents to service of process issued by such courts.

12. INTERPRETATION: Each party has reviewed this Agreement and any question of doubtful interpretation shall not be resolved by any rule or interpretation providing for interpretation against the drafting party. This Agreement shall be construed as if both parties drafted it. The captions and headings contained herein are for convenience only and shall not affect the meaning or interpretation of this Agreement.

13. MODIFICATIONS: Except as specifically set forth herein, any modifications to this Agreement shall be effective only if in writing and signed by both parties hereto.

Page 11 of 13 ends

11.A.

Page 299 of 353 ends

1 14. PARTIAL INVALIDITY: If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way.

15. ELECTRONIC SIGNATURES AND COUNTERPARTS: As permitted under the U.S.

Electronic Signatures in Global and National Commerce (ESIGN) Act of 2000, and the Uniform Electronic Transactions Act (UETA) , the parties hereby agree to conduct this transaction by electronic means. Accordingly, this Agreement may be executed through an electronic signature and may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The parties agree that the electronic signatures appearing on this Agreement are intended by each party using it to have the same force and effect as the use of a manual signature for the purposes of validity, enforceability, and admissibility.

16. ACKNOWLEDGMENT: HALSTEAD acknowledges that she has had the opportunity to consult legal counsel of her choice in regard to this Agreement, that she has read and understands this Agreement, that she is fully aware of its legal effect, and that she has entered into it freely and voluntarily and based on her own judgment and not on any representations or promises other than those contained in this Agreement.
**SIGNATURE PAGE FOLLOWS**
This Agreement has been signed on behalf of the City of Hemet by its City Manager and duly attested to by its City Clerk, and HALSTEAD has signed and executed the Agreement, as of DATE.
_____________________________ _____________________________

Page 12 of 13 ends

11.A.

Page 300 of 353 ends

1 City of Hemet Employee
Mark Prestwich, City Manager Juanita “Jane” Halstead
ATTEST:
_____________________________
Elodie Klug
Deputy City Clerk
APPROVED AS TO FORM:
_____________________________
Steven Pacifico, City Attorney

Page 13 of 13 ends

11.A.

Page 301 of 353 ends

Page 302 of 353 ends

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 24 2026
Department: Administration
Submitted by: Mark Prestwich, City Manager
Benigno Sandoval, Economic Development Director;

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

TITLE:

Consideration by the Hemet City Council of Approving Two Vehicle and Automobile Tax Sharing Program Agreements Between the City of Hemet and Hemet Auto Mall Dealerships, Hemet Toyota, and Tim Moran Group - Hyundai

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Authorize Approval of Two Vehicle and Automobile Tax Sharing Program Agreements Between the City of Hemet and Hemet Auto Mall Dealerships, Hemet Toyota, and Tim Moran Group - Hyundai.

BACKGROUND:

The City of Hemet has adopted a new ordinance to establish a Sales Tax Sharing and Economic Development Program, primarily aimed at supporting automobile and other vehicle dealerships. The City recognizes that these dealerships are crucial for local employment and generate significant sales tax revenue, which funds essential public services like police, fire, and street maintenance. To remain competitive and encourage investment, the City intends to offer legally compliant economic incentives that stimulate capital investment and job growth within its jurisdiction, ensuring the continued viability and modernization of these important businesses.

Under this program, the City Council can approve Sales Tax Sharing Agreements with qualifying dealerships to help reimburse a portion of their "Eligible Costs" for facility upgrades or new construction. These eligible expenses cover significant capital investments such as building renovations, site improvements, ADA compliance, and expansions, but exclude routine maintenance.

Agreements are capped at a percentage of the sales tax generated by the dealership, with a maximum reimbursement of $7.5 million for existing dealerships and $10 million for new ones, over a term not exceeding 20 years. Importantly, these incentives are contingent upon verifiable public benefits and cannot be used to subsidize dealerships relocating from within the City's market area.

To ensure transparency and fiscal responsibility, the program includes a structured application process requiring detailed project descriptions, cost breakdowns, and financial impact analyses. All

Page 1 of 43 ends

11.B.

Page 303 of 353 ends

agreements must demonstrate a clear public benefit, support job creation, and prevent the misuse of public funds. They are subject to public hearings, annual reporting, and performance benchmarks.

The City will closely monitor compliance, reserving the right to audit records and implement "clawback" provisions, which require dealerships to repay funds if they fail to meet obligations or significantly reduce operations within ten years of receiving reimbursement.

ANALYSIS:

The City of Hemet Automobile and Vehicle Dealership Tax Sharing and Economic Development Program is a strategic initiative designed to stimulate economic growth and support the local automotive sector.

The initial outreach for the program was comprehensive. Information about the sales tax sharing opportunity was shared with all existing Hemet auto dealers and extended to a wider audience, including other major vehicle brands not currently represented in Hemet, to attract new businesses.

For the first few months, the program was actively open for inquiries and initial interest. During this time, the City received several preliminary inquiries and held a few meetings to discuss the program's specifics and potential projects with interested parties.

This period of initial inquiry quickly led to concrete proposals. Shortly after the program's opening, the City received two formal applications for consideration. These applications were related to significant renovation projects for existing dealerships. The prompt submission of these two proposals signaled the immediate interest and positive reception of the tax-sharing program, validating the City's proactive approach to economic development within the automotive sector. Those two dealerships looking to expand include Hemet Toyota and the Tim Moran Group - Hyundai.

DISCUSSION:

Vehicle dealerships are fundamental revenue generators, contributing significant local sales tax dollars that directly support the General Fund and the provision of essential municipal services, aligning with the core goals of the Hemet RISES Economic Development Strategy. The automotive sector faces increasing competition from surrounding jurisdictions and the constant need for facility modernization to meet manufacturer standards.

Hemet Toyota has requested $7.5 million under the tax sharing program to facilitate the construction of an expanded service bay. The project duration is estimated to be approximately 1.5 to 2.0 years.

Hemet Toyota estimates 25-30 jobs will be created through this project, and 115 jobs will be retained.

Tim Moran Group - Hyundai has requested $7.5 million to construct a new showroom, remodel its parts and service operation, and install a solar system. The project duration is estimated to be 18 months upon approval of plans by the City of Hemet. Tim Moran Group estimates 35 jobs will be created through this project, and 65 jobs will be retained.

Each agreement will provide reimbursement of 1/2 of the City's 1.0% Bradley-Burns portion of sales tax for up to 20 years or $7.5 million, whichever comes first. No Measure U funds will be utilized for this program.

This program provides a crucial, legally compliant mechanism to incentivize private capital investment in Hemet—specifically for major renovations, expansions, or new construction—thereby retaining and growing our high-value sales tax base.

Page 2 of 43 ends

11.B.

Page 304 of 353 ends

PREVIOUS COUNCIL ACTION:

The City Council adopted Ordinance 2056 establishing a sales tax-sharing and economic development program for automobile dealerships at their meeting of March 25, 2025.

STRATEGIC PLAN INTEGRATION:

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 1: Develop business practices that welcome new development by streamlining processes.

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

GOAL FOUR: PARTNERSHIP & COLLABORATION
To pursue partnerships that will increase the opportunities available to the community, including our businesses, unemployed, and youth populations.

Objective 1: Develop concepts and programs to increase opportunities for youth recreation.

Objective 2: Develop concepts and programs to enhance the quality of life services.

Objective 3: Develop programs to offer support to the community's businesses

FISCAL IMPACT:

Two reimbursements (one for Hemet Toyota and one for Tim Moran Group - Hyundai) not to exceed $7.5 million each for existing dealerships over a period of 20 years, through the Bradley-Burns tax.

Measure U funds will not be utilized. This is forecasted to have an initial combined annual financial impact on City sales tax revenue of approximately $750,000 to $1,000,000 once both projects are complete. However, updated facilities are expected to contribute to long-term material increases in revenue performance for both dealerships.

ALTERNATIVE(S):

1. Consider approval of only one of the agreements.

2. Provide alternative direction to the City Manager.

ATTACHMENT(S):

Attachment 1: Automobile and Vehicle Dealership Tax Sharing and Economic Program Attachment 2: Tim Moran - Hyundai Application
Attachment 3: Toyota of Hemet - Application
Attachment 4: Sales Tax Sharing Agreement

Page 3 of 43 ends

11.B.

Page 305 of 353 ends

1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28

CITY OF HEMET

HEMET, CALIFORNIA
ORDINANCE NO. 2056

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

HEMET, CALIFORNIA, ADDING ARTICLE XIV TO
CHAPTER 18 OF THE HEMET MUNICIPAL CODE TO

ESTABLISH A SALES TAX SHARING AND ECONOMIC

DEVELOPMENT PROGRAM FOR AUTOMOBILE AND

OTHER VEHICLE DEALERSHIPS
WHEREAS, the City of Hemet (" City") relies on sales tax revenue as a significant funding source for essential public services, including police protection, fire and emergencyresponse, street maintenance, and other municipalservicesthat enhance the quality of life for the City' s residents; and
WHEREAS, automobile and other vehicle dealerships are a critical component of the City's commercialsector, contributingsignificantlyto localemploymentopportunities and the City' s sales tax base; and
WHEREAS, the construction, expansion, and modernization of automobile and other vehicle dealershipfacilities are capital -intensiveinvestmentsthat support local economic development, enhance consumer access to vehicle purchasing and servicing options, and provide long-term stability and growth for the City's tax revenue; and WHEREAS, it is the intent of the City to remain competitive in attracting and retainingautomobileand othervehicledealershipsby offeringprudentand legally compliant economic development incentives that stimulate capital investment and job growth within the City; and
WHEREAS, Article XVI, Section 6 of the California Constitution prohibits the gift 101 Ik' 1

Page 4 of 43 ends

11.B.

Page 306 of 353 ends

1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
of public funds, and Government Code Section 53083 sets forth requirements for economicdevelopmentsubsidies, mandatingtransparency, accountability, and public disclosure; and
WHEREAS, this Ordinance establishes a clear, objective, and transparent programfor entering into Sales Tax SharingAgreementsfor the limited purposeof reimbursing a portion of the cost of dealership facility upgrades, expansions, or construction, contingent upon verifiable public benefits; and WHEREAS, the City Council finds it is in the public interest to adopt this Ordinanceto ensurethatsuchincentivesaregrantedina fiscallyresponsiblemanner, consistent with state and local legal requirements, and with safeguards to protect the public' s investment.

THE CITY COUNCIL OF THE CITY OF HEMET DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. MUNICIPAL CODE AMENDMENT — Article XIV is hereby added to Chapter18of the HemetMunicipalCodeto readin its entiretyas follows:

Article XIV: Sales Tax Sharing and Economic Development Program Section 18- 466 Purpose and Intent.
a)
The Cityof Hemetherebyestablishesa SalesTax Sharingand Economic DevelopmentProgramto promotetheretention, expansion, andcontinuedviabilityof automobile and other vehicle dealerships within the City's jurisdiction. The City recognizes that automobile and other vehicle dealerships serve as significant contributors to local economic activity and generate substantial sales tax revenue that supports essential public services and infrastructure. Given the competitive nature of the 1:14 2

Page 5 of 43 ends

11.B.

Page 307 of 353 ends

1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
automotive and vehicle industry and the financial burden associated with facility upgrades, this program is intended to create an incentive structure that ensures the continued operation, modernization, and expansion of these businesses within the City limits.
b) Automobile and other vehicle dealerships play a crucial role in the local economy by providingemploymentopportunitiesto residentsand serving as a key source of consumer access to vehicle purchases, leasing, and maintenance services.

EnsuringtheretentionandexpansionofthesebusinesseswithintheCityisessentialfor maintaininglocal economicstabilityand improvingthe qualityof life for residents. By supportingdealershipimprovements, the City fostersjob growth, enhancesbusiness investment, and ensures that residents have convenient access to essential automotive and othervehicleservices, therebyreducingthe needto travelto otherjurisdictionsfor such services.
c) This Article authorizes the City to enter into legally binding Sales Tax SharingAgreementswith qualifyingautomobileandothervehicledealershipsfor the purpose of reimbursing a portion of eligible facility upgrade costs. Such agreements shall be structured in strict compliance with all applicable federal, state, and local laws, includingbutnotlimitedto ArticleXVI, Section6 ofthe CaliforniaConstitution (prohibiting the gift of public funds), Government Code Section 53083 ( economic development subsidies), and all other relevant provisions governing municipal finance and economic development.
d) The intent of this Article is to establish clear and objective criteria under which the City may consider such agreements, ensuring that they ( 1) provide a 3

Page 6 of 43 ends

11.B.

Page 308 of 353 ends

2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 demonstrable public benefit, ( 2) are fiscally responsible, ( 3) support job creation and economic growth, and ( 4) prevent the unnecessary diversion of public funds without tangible economic return. The City shall ensure that all Agreements under this program are subjectto transparency, accountability, andoversightmechanisms, includingpublic hearings, periodicperformancereviews, and annual reportingrequirementsto protect the interestsof the taxpayersandthe broadercommunity.

Section 18- 467 - Definitions.

Forpurposesof this Article, the followingdefinitionsshallapply:
a) " City" means the City of Hemet, a municipal corporation organized and existing under the laws of the State of California.
b) " Dealership" means a business entity holding a valid California Department of MotorVehiclesdealerlicense (or otherappropriatestatelicense) andoperatingwithin the City for the primary sale of new automobiles, new motorcycles, new motorhomes, new watercraft, new aircraft, new travel trailers or new off-road vehicles. A dealership may also sell used automobiles, used motorcycles, used motorhomes, used watercraft, usedaircraft, usedtraveltrailersor usedoff-roadvehiclesas a secondaryor accessory function, but the primary business purpose must be the sale of new vehicles from one or more manufacturers.
c) " Eligible Costs" means reasonable, necessary, and documented expenses incurred by a Dealershipfor new facility constructionor existing facility upgrades, including but not limited to: new facility construction, site improvements, building renovations, signage, parking lot enhancements, Americans with Disabilities Act ( ADA) compliance upgrades, energy efficiency improvements, expansions of existing facilities, 4

Page 7 of 43 ends

11.B.

Page 309 of 353 ends

1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
complete rebuilds, demolition and reconstruction of dealership buildings, the costs of engineering, architects, fees and infrastructure improvements directly related to dealership operations. Eligible Costs shall not include routine maintenance or operational expenses that do not substantially improve the dealership' s capacity or longevity.
d) " Sales Tax Revenue" means the portion of sales tax generated by a participatingDealershipand remittedto the City pursuantto applicablestate and local laws, including but not limited to revenue collected under the Bradley -Burns Uniform Local Sales and Use Tax Law ( California Revenue and Taxation Code Section 7200 et seq.). Sales Tax Revenue shall not include revenues from the Hemet Transactions and Use Tax ( Measure U). Sales Tax Revenue for the purpose of this Article shall be calculated based on the amount received by the City from such sources after deductions for any applicable state -mandated distributions or adjustments. e) " Agreement" means a written contract, approved by the City Council, between the City and a Dealership pursuant to this Article, setting forth the terms, conditions, performance requirements, and financial obligations of both parties in connection with Sales Tax Sharing incentives.

Section 18- 468 - Sales Tax Sharing Agreements.
a) The City Council may, at its discretion, approve a Sales Tax Sharing Agreement with a Dealership to reimburse Eligible Costs, provided that:
1) The Agreement results in a net public benefit to the City, including retention or expansion of dealership operations, job creation, or increased tax revenue.
01N1110I_\ log :8ki 5

Page 8 of 43 ends

11.B.

Page 310 of 353 ends

1 2
3 4
5 6
7 8
9 10
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
2) The Agreement complies with Article XVI, Section 6 of the California Constitution ( prohibition on gifts of public funds).
3) The Agreement complies with Government Code Section 53083 regarding economic development subsidies.
4) The reimbursement shall not exceed a percentage of the Sales Tax Revenuegeneratedby the Dealershipand shall be subjectto a cap, not to exceed $ 7.5 million, as approved by the City Council, except in the case of new Dealerships, for which the amount shall not exceed 10 million, as approved by the City Council.
5) The term of the Agreement shall not exceed twenty (20) years. 6) The Agreement shall include clear performance benchmarks, such as job creation, investmentthresholds, or facility improvements, which the Dealership must meet to remain eligible for reimbursement. 7) The Agreement shall require annual verification of compliance, including revenue generation, facility improvements, and other agreed- upon terms.
8) Any Agreement with a Dealership locating or relocating to the City shall comply with the provisions of Government Code Section 53084, which prohibits subsidies for automobile dealerships relocating from another jurisdiction in the "Market Area" of the City., which for the purposes of this program shall include the relocation within the Primary Market Area for a particular franchise, or if there is no Primary Market Area, then the relocation of an automobile dealership operating within 10 l: l 4 20

Page 9 of 43 ends

11.B.

Page 311 of 353 ends

1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
miles from the City of Hemet.
b) All Agreements shall be subject to:
1) A public hearing and disclosure of financial terms before approval. 2) Annual reporting requirements, including verification of revenue generation and compliance with Agreement terms.
3) Performance benchmarks, such as job creation, investment thresholds, or capital improvements.
4) A clawback provision requiring partial or full reimbursement to the City if the Dealership fails to meet performance obligations or ceases operations within a specified period.
c) The City Councilmayset limitationson the numberof agreementsor the total reimbursement amount available for the program at any time, subject to increases based on the establishment of new dealerships or significant increases to revenue from existing dealerships.
d) AnyapplicationsubmittedunderthisprogramshallbereceivedbytheCity no later than 10 years after the effective date of the ordinance.

Section 18- 469 - Application Process.
a) A Dealership seeking to enter into an Agreement shall submit a complete and detailedapplicationto the City Manageror designee. The applicationshallinclude, but not be limited to, the following:
1) A comprehensive project description detailing the scope of the proposedfacility improvements, includingthe anticipatedtimelinefor completion.

NOW11

Page 10 of 43 ends

11.B.

Page 312 of 353 ends

1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
2) A breakdownofestimatedEligibleCostssupportedbycontractorbids, engineering estimates, or other verifiable cost projections. 3) A financial impact analysis illustrating the projected increase in Sales Tax Revenue resulting from the improvements.
4) Documentation establishing the necessity of the Agreement, demonstrating why the project would not be feasible without financial assistance from the City.
5) Any additionalmaterialsdeemednecessaryby the Cityto properly evaluate the application.
b) The City Manager shall conduct a thorough review of each application, verifying the accuracy of the submitted materials and assessing the projected public benefit. Uponcompletionof the review, the City Managershall forwardthe application with a recommendationfor approval, denial, or modificationto the City Councilfor final consideration.

Section 18- 470 - Compliance and Termination.
a) The City shall monitor compliance with all terms and conditions set forth in an Agreementandshallrequireannualreportingfromthe participatingDealershipto verify adherence to performance benchmarks.
b) If a Dealershipfails to meet its obligations, includingbut not limited to performancebenchmarks, reportingrequirements, orfacilityimprovementcommitments, the City may terminate the Agreement, adjust reimbursement terms, or require repayment of funds.
c) The City reserves the right to audit financial records and project t:4kyil E I

Page 11 of 43 ends

11.B.

Page 313 of 353 ends

1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
expenditures to ensure compliance with Agreement terms and protect the public interest. d) If a Dealership ceases operation, reduces operations, or otherwise materially diminishes its business activity within ten ( 10) years of receiving reimbursement without written authorization by the City, it shall be required to repay all fundsreceivedunderthis program. Anyreductioninoperationsshallbe assessedbased on a measurable and sustained decline in revenue, employment, or facility utilization as determined by the City through periodic audits and reviews.

SECTION 2. CEQA — The City Council finds that this Ordinance is not a project subject to the California Environmental Quality Act (" CEQA") pursuant to Section 15060(c)(2) of the CEQA Guidelines because the Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment.

SECTION 3. SEVERABILITY — If any section, subsection, sentence, clause,' phrase, or portion of this Ordinance is, for any reason, held to be invalid by the decision of anycourtof competentjurisdiction, suchdecisionshallnotaffectthevalidityof the remainingportionsofthisOrdinance. TheCityCouncilherebydeclaresthatitwouldhave adopted this Ordinance, and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions might be declared invalid.

SECTION 4. EFFECTIVE DATE — This Ordinance shall take effect thirty ( 30) days after its adoption.

SECTION 5. CERTIFICATION — The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted in the manner prescribed by law
F CE 9

Page 12 of 43 ends

11.B.

Page 314 of 353 ends

1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
INTRODUCEDat the regularmeetingof HemetCityCouncilon the 11thday March, 2025.

APPROVED AND ADOPTED this 25th day of Month, 2025.

ATTEST:

QJOPauVlMaier, City Clerk
NII K11
Jackie Peterson, Mayor
10

Page 13 of 43 ends

11.B.

Page 315 of 353 ends

1 2
3 4
5 6
7 8
9 10
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 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 foregoingOrdinanceis the actualOrdinanceadoptedby the CityCouncilof theCity of Hemet and was passed at a regular meeting of the City Council on the 25th day of March 2025.

AYES: Council Members: Krupa, Lodge, Males, Mayor Pro Tem Kendrick, Mayor Peterson.

NOES: Council Members: None.

ABSTAIN: Council Members: None.

ABSENT: Council Members: None.

John Paul Maier, City Clerk
E 11

Page 14 of 43 ends

11.B.

Page 316 of 353 ends

Page 15 of 43 ends

11.B.

Page 317 of 353 ends

bsandovaIQhemetca‘gov
(.I‘Proéert;Owner| B Owner@\
timQtimmorancan‘com
LLC
AutomotiveandVehicleDealershipTaxSharingApplication
Pleasefillouttheapplicationcompletelyandsubmitto orsendto:CityofHemetAttention:EconomicDevelopmentDepartment445E.FloridaAveHemet,CA92543(951)669— 0265 *SECTION1-APPLICANTINFORMATION:Name:TimMoranCircleAllThatApply: sinessBusinessName:TimMoranHyundaiHemetIncPropertyAddress:100CarriageCircleHemet,CA92545MailingAddress:SameasabovePhoneNumber:951-377-0862Email:DMVDealerLicenseNumber:13143ListtheManufacturerFranchisesYouCurrentlyOperate:Hyundai,Ford,Chevy WhichVehicleFranchise/FranchisesAreYouLookingtoOperateintheCityofHemet:
*SECTION2-PROPERTYOWNERINFORMATION(Completeevenifthecurrenttenantistheapplicant):PropertyOwnerName:TMAGHemetPropertyFHPropertyOwnerMailingAddress:150CarriageCirHemet,CA92545

Page 16 of 43 ends

11.B.

Page 318 of 353 ends

PropertyOwnerDaytimePhOneNumber:951—377-08Asthelegalowneroftheaboveproperty,IherebygrantauthorizationtocompletetheVehicleTaxSharing&EconomicDevelopmentprogramindicatedonthisapplication. *SECTION3-FUNDING: 1’15XAutomotiveandVehicleTaxSharingProgram(ExistingDealership— Uptomillion)E]AutomotiveandVehicleTaxSharingProgram(NewDealership— Upto$10Mi|lion)TaxSharingAmountRequested:SZ‘i‘rlfillionEstimatedTotalProjectCost/CapitalInvestment:$10millionEstimatedTimeofCompletion:18monthsfromapprovalofplansfromCity_ *SECTION4— PUBLICBENEFITS:EstimatedJobsRetained:65EstimatedJobsCreated:35EstimatedIncreaseTaxRevenuetotheCityofHemet:50%increaseGeneralDescriptionofProposedPublicBenefits:Thisproposaloutlinesastrategicexpansionofourdealership'sshowroom,parts,andservicedepartments,whichwillgeneratesignificantnewbusinesswhileboostingtheeconomicvitalityoftheCityofHemet.Byinvestinginthisexpansionandpavingourcurrentlyunpavedstorageareas,wewillincreasetaxrevenue,createjobs,andimprovethesite'saestheticsandenvironmentalquality,allinfullcompliancewithHMCsection30-32.1.A.25*SECTION5-SCOPEOFWORK:GeneralDescriptionofWork:

Planstoconstructabrand-newHyundaidealership.Thenewfacilitywillincludeacompletelyremodeledpartsandservicedepartment,amodernizedshowroomfornewHyundaivehicles,andnewlypavedlotstoprovideabetterexperiencefor

Page 17 of 43 ends

11.B.

Page 319 of 353 ends

SECTION6-ELIGIBLECOSTBREAKDOWN
ItemDescription:Cost:Newshowroom$4.5millionRemodeledParts&Service$4millionSolarimprovement$2million Total=$12million
*SECTION7-ACKNOWLEDGMENT:Wecertifythattheowneristhepropertyownerofrecordandthattherearenocurrentzoningcodeenforcementactionspendingagainsttheproperty.IhavereadandunderstandtheProgramGuidelinesandacceptthem.icertifythatIamqualifiedandwillabidebysuchconditionssetforthinthisapplicationandallreasonableconditionswhichmaybeissuedbytheCityofHemetintheimplementationofthisproject.

PropertyOwner(s)Signature: Date:09/03/2025BusinessOwner(s)Signatu Date:09/03/2025

Page 18 of 43 ends

11.B.

Page 320 of 353 ends

N RIF!IN
businessglanandgrogosal
APPLCATCETCATOPleasereadthestatementsbelowandinitialandsigncertifythatyouunderstand:‘(V‘I/wecertifythatthebuildingowneristheowneroftheproperty. «Kl/wecertifythattherearenocurrentcodeenforcementactionspendingagainstthisproperty.z(EU/wehavereviewedtheprogramoverviewandguidelines,havefamiliaritywithresponsibilitiesofeachpartyandunderstandthat.?l/weincludedarchitecturalrenderings,.Plansandproposalareindevelopment.(WEI/weacknowledgeandunderstandthatreimbursementislimitedtoapercentageoftaxrevenuenottoexceedtwentyyears.Respectfullyrequestingreimbursementwithin7years.mil/wereimbursementisbasedonperformancebenchmarksalongwithannualreportingandaudhsZ(Nil/weunderstandthatthisisnotarelocationofacurrentdealershipwithintheprimarymarketareawithintenmilesofHemet./<\hl/weunderstandthereimbursementshallnotexceedapercentageoftheSalesTaxRevenuegeneratedbytheDealershipandshallbesubjecttoacap,nottoexceed$7,500,000million,exceptinthecaseofnewDealerships,forwhichtheamountshallnotexceed$10,000,000million.?l/weunderstandtheeligiblecostsmeansreasonable,necessary,anddocumentedexpensesincurredbyaDealershipfornewfacilityconstructionorexistingfacilityupgrades,includingbutnotlimitedto:newfacilityconstruction,siteimprovements,buildingrenovations,signage,parkinglotenhancements,AmericanswithDisabilitiesAct(ADA)complianceupgrades,energyef?ciencyimprovements,expansionsofexistingfacilities,completerebuilds,demolitionandreconstructionofdealershipbuildings,thecostsofengineering,architects,feesandinfrastructureimprovementsdirectlyrelatedtodealershipoperations.

I(XE:Allservicestobeperformedbycontractorsshallbethesubjectofagreementbetweenapplicantandcontractor(s).WTheAgencyshallnotassumeanyliabilityforsuchagreements,exceptasspecificallyauthorizedbytheprogram.

Page 19 of 43 ends

11.B.

Page 321 of 353 ends

WW
’MJ/wehavereadandunderstandtheCityofHemetprogramguidelines,acceptthequalificationsandconditionsandthroughsignature(s)below,certifythatl/wearequalifiedandwillabidebysuchconditionssetforthinthisapplicationandallreasonableconditionswhichmaybeissuedbytheCityofHemetintheimplementationofthisprogram.Iunderstandthatthisisavoluntaryprogram,underwhichtheCityofHemethastherighttoapproveordenyanyprojectorproposalorportionsthereof _ 09/03/2025Signature(Tenant): Date:PropertyOwnerSignature Date:09/03/2025

Page 20 of 43 ends

11.B.

Page 322 of 353 ends

bsandovalQhemetca‘gov
247w»Nae/r2/
Q77mm4‘0P[4wa
351/)(mums? (1
J900:??qu(Kr
CTBI'eB‘é-Zl/V& 6190—54?Nmb?‘??QTadotxhemel‘t.

Tow*b‘U
“(0&quU
pmgem\Qm
‘
(J r \c
AutomotiveandVehicleDealershipTaxSharingApplication
Pleasefillouttheapplicationcompletelyandsubmitto orsendto:CityofHemetAttention:EconomicDevelopmentDepartment445E.FloridaAveHemet,CA92543(951)669-0265 ‘SECTION1-APPLICANTINFORMATION:Name: "CircleAllThatApply:rtyOwnerBusinessOwner/TenantBusinessName:PropertyAddress: VMailingAddressPhoneNumber: IO’ /Email (0IV‘DMVDealerLicenseNumber:ListtheManufacturerFranchisesYouCurrentlyOperate:

WhichVehicleFranchise/FranchisesAreYouLookingtoOperateintheCityofHemet:
*SECTION2-PROPERTYOWNERINFORMATION(Completeevenifthecurrenttenantistheapplicant): LILPropertyOwnerName: CfPropertyOwnerMailingAddress:

Page 21 of 43 ends

11.B.

Page 323 of 353 ends

' M
__*_i0_
Loco]Jobawake»Carer?£0waw/TYLOCJCOM/MN?“
ée’mc?IMP?yfw/?' J
pdrufho/Qun&Lax/V76q’? Ex;.$(\\‘t‘o?gcil\or | 1'0foQA‘TS1’0bunnangay‘?a‘€35,329;g?amné9 - 94w15mm“64mmwqamw»+0wppoiswam»Jaw—WW7MP“
u
PropertyOwnerDaytimePhoneNumber:Asthelegalowneroftheaboveproperty,iherebygrantauthorizationtocompletetheVehicleTaxSharing&EconomicDevelopmentprogramindicatedonthisapplication.SECTION3-FUNDING: 31.5E/AutomotiveandVehicleTaxSharingProgram(ExistingDealership-UptoSgglillion)I]AutomotiveandVehicleTaxSharingProgram(NewDealership-Upto$10Mlllion)TaxSharingAmountRequested:5was'I.5MB;EstimatedTotalProjectCost/CapitalInvestment:5 7'5'“EstimatedTimeofCompletion:”(9’a?(&# TSECTION4-PUBLICBENEFITS:UEstimatedJobsRetained:HF)EstimatedJobsCreated:99’19/qu?eeaoWrmh’N6“'6‘)EstimatedIncreaseTaxRevenuetotheCityofHemet:GeneralDescriptionofProposedPublicBenefits:

SECTION5-SCOPEOFWORK:GeneralDescriptionofWork: \\,Co e \o 960m

Page 22 of 43 ends

11.B.

Page 324 of 353 ends

/% qé/M":75
SECTION6-ELIGIBLECOSTBREAKDOWN:ItemDescription:Cost:p/EQK61384%0061/ Total=
SECTION7-ACKNOWLEDGMENT:Wecertifythattheowneristhepropertyownerofrecordandthattherearenocurrentzoningcodeenforcementactionspendingagainsttheproperty.IhavereadandunderstandtheProgramGuidelinesandacceptthem.IcertifythatIamqualifiedandwillabidebysuchconditionssetforthinthisapplicationandallreasonableconditionswhichmaybeissuedbytheCityofHemetintheimplementationofthisproject.

PropertyOwner(s)Signature: Date:BusinessOwnerls)Signature: Date

Page 23 of 43 ends

11.B.

Page 325 of 353 ends

[AWrevenu
M/wemarket
ledgeexcess
3relemet
APPLCATCERTFCATIONPleasereadthestatementsbelowandInitialandsigncertifythatyouunderstand:?l/wecertifythatthebuildingownerIstheowneroftheproperty.

AMI/wecertifythattherearenocurrentcodeenforcementactionspendingagainstthisproperty.?”l/wehavereviewedtheprogramoverviewandguidelines,havefamiliaritywithresponsibilitiesofeachpartyandunderstandthat.”(ff/weincludedarchitecturalrenderings,businessplan,andproposal.acknowandunderstandthatreimbursementislimitedtoapercentageoftaxenotto dtwentyyears.M/wereimbursementisbasedonperformancebenchmarksalongwithannualreportingandaudits.understandthatthisisnotocationofacurrentdealershipwithintheprimaryareawithintenmilesofH *
@weunderstandthereimbursementshallnotexceedapercentageoftheSalesTaxRevenuegeneratedbytheDealershipandshallbesubjectto3cap,nottoexceed$7,500,000million,exceptinthecaseofnewDealerships,forwhichtheamountshallnotexceed$10,000,000million.AMI/weunderstandtheeligiblecostsmeansreasonable,necessary,anddocumentedexpensesincurredbyaDealershipfornewfacilityconstructionorexistingfacilityupgrades,includingbutnotlimitedto:newfacilityconstruction,siteimprovements,buildingrenovations,signage,parkinglotenhancements,AmericanswithDisabilitiesAct(ADA)complianceupgrades,energyef?ciencyimprovements,expansionsofexistingfacilities,completerebuilds,demolitionandreconstructionofdealershipbuildings,thecostsofengineering,architects,feesandinfrastructureimprovementsdirectlyrelatedtodealershipoperations.EA“servicestobeperformedbycontractorsshallbethesubjectofagreementbetweenapplicantandcontractor(s).£2TheAgencyshallnotassumeanyliabilityforsuchagreements,exceptasspecificallyauthorizedbytheprogram.

Page 24 of 43 ends

11.B.

Page 326 of 353 ends

__I/wehavereadandunderstandtheCltyofquali?cationsandcondlllonsandlhroughsignal willabldebysuchcondltlonssetforlhInthisapp
maybeIssuedbvcheCltvofHemetInthelmplelhlsIsavoluntaryprogram,underwhlchtheClty L7%— 29/projectorproposalorportionsthereof.Signature(Tenant):PropertyOwnerSignature Hemetprogramguidelines,accepttheure(s)beiow,certifythati/wearequalifiedand"cationandallreasonableconditionswhichmentationofthisprogram.IunderstandthatofHemethastherighttoapproveordenyany Date:Date:

Page 25 of 43 ends

11.B.

Page 327 of 353 ends

Page 26 of 43 ends

11.B.

Page 328 of 353 ends

242624968.2
202758-11033

Page 1 of 15 ends

SALES TAX SHARING AND ECONOMIC DEVELOPMENT AGREEMENT
(CITY OF HEMET – VEHICLE DEALERSHIP PROJECT)
This SALES TAX SHARING AND ECONOMIC DEVELOPMENT AGREEMENT (“Agreement”) is entered into as of February __ , 2026 (“Effective Date”), by and between the City of Hemet, a California municipal corporation (“City”), and Westpark Automotive Company, Inc., a Delaware corporation (“Dealership”) (collectively, the “Parties” and individually, a “Party”).

WHEREAS, City is a municipal corporation organized and existing under the laws of the State of California and is authorized to promote the economic well -being of its residents through appropriate economic development programs consistent with the California Constitution and state law.

WHEREAS, City has adopted Article XIV, Sections 18 -466 through 18 -470 of the Hemet Municipal Code (“HMC”), establishing a Sales Tax Sharing and Economic Development Program (“Program”) to promote the retention, expansion, and continued viability of automobile and other vehicle dealerships within the City’s jurisdiction.

WHEREAS, under the Program, City may enter into sales tax sharing agreements with qualified automobile and other vehicle dealerships to reimburse a portion of eligible facility construction and upgrade costs where doing so (i) provides a demonstrable public benef it, (ii) is fiscally responsible, (iii) supports job creation and economic growth, and (iv) provides a tangible economic return to the City.

WHEREAS, Dealership is a business entity duly licensed by the California Department of Motor Vehicles (or other applicable state agency) to sell new and used motor vehicles and operates a motor vehicle dealership facility within the City located at 350 Carriage Circle, Hemet, CA 92545 (“Project Site”).

WHEREAS, Dealership proposes to upgrade its existing facility at the Project Site by constructing additional service bays, a car wash and other improvements in accordance with this Agreement (collectively, the “Project”). The Project is expected to result in substantial capital investment, increased sales tax revenue to City, the retention and creation of jobs, and enhanced availability of vehicle sales, leasing, and maintenance services to residents and businesses within and around the City.

WHEREAS, City has determined that, absent financial participation by City through this Agreement, the Project may not occur in the manner or within the timeframe contemplated by the Parties, and that participation by City as set forth herein is necessary to facil itate the Project and achieve City’s economic development objectives under the Program.

WHEREAS, City has further determined, based on information and projections provided by Dealership and reviewed by City, that this Agreement is reasonably expected to result in a net public benefit to City, including but not limited to increased sales tax revenue, job creation, private capital investment, and long-term economic stability.

Page 27 of 43 ends

11.B.

Page 329 of 353 ends

242624968.2
202758-11033

Page 2 of 15 ends

WHEREAS, City has considered its obligations under Article XVI, Section 6 of the California Constitution, which prohibits the gift of public funds, and has determined that the consideration provided to City under this Agreement is adequate and that the reimbursem ents contemplated herein are for a public purpose and not a gift, since they are expressly conditioned on Dealership’s performance of its obligations, produce substantial economic and social benefits to the City and its residents, and are limited to reimbursement of Eligible Costs as defined herein.

WHEREAS, City has complied with all applicable provisions of California Government Code section 53083 concerning economic development subsidies, including preparation of required public reports, public notice, and public hearing, and California Government Code se ction 53084 concerning economic development incentives for automobile dealerships relocating within a “market area,” if applicable, and the Parties intend that this Agreement be interpreted and implemented consistent with those statutes.

WHEREAS, City receives a portion of sales and use tax pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law (California Revenue and Taxation Code section 7200 et seq.), including the local 1.0% component of the statewide sales and use tax (“Bradley -Burns Tax”).

City has also adopted a voter -approved transactions and use tax known as “Measure U.” Under Article XIV of the HMC, City’s sales tax sharing agreements are based solely on the City’s receipt of Bradley-Burns Tax and expressly exclude any Measure U transactions and use tax revenue.

WHEREAS, City desires to enter into this Agreement with Dealership under the authority of Article XIV of the HMC on the terms and conditions set forth herein, in order to promote the Project and realize the expected public benefits.

WHEREAS, Dealership desires to construct and operate the Project at the Project Site and to receive reimbursement of Eligible Costs, subject to the limitations, conditions, and performance requirements contained in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS
Unless the context otherwise requires, capitalized terms used in this Agreement shall have the meanings set forth in this Section 1. To the extent any definition herein conflicts with a definition in HMC Article XIV, the more restrictive provision shall co ntrol, provided that the intent of the Program is preserved.
“Agreement” means this Sales Tax Sharing and Economic Development Agreement, including all exhibits and any amendments approved by the City Council. “Article XIV” means Article XIV, Sections 18-466 through 18-470 of the Hemet Municipal Code, as it may be amended from time to time, to the extent such amendments are not inconsistent with this Agreement.
“City” means the City of Hemet, a California municipal corporation.

Page 28 of 43 ends

11.B.

Page 330 of 353 ends

242624968.2
202758-11033

Page 3 of 15 ends

“Dealership” means Westpark Automotive Company, Inc., a Delaware corporation duly licensed by the California Department of Motor Vehicles as a dealer in new and used motor vehicles and operating a motor vehicle dealership at the Project Site. “Dealership Operations” means the operation of the new -vehicle dealership at the Project Site, including the sale and leasing of new and used vehicles, parts, service, and related activities typical for such dealerships.
“Eligible Costs” means reasonable, necessary, and documented expenses incurred and paid by Dealership in connection with the design, permitting, construction, reconstruction, expansion, or substantial upgrading of the Project and directly related to Dealership Operations that (i) materially enhance the capacity, functionality, efficiency, or useful life of the Project, and (ii) are reasonably anticipated to preserve or increase Sales Tax Revenue to City beyond the levels reasonably expected in the absence of this Agreement. Eligible Costs include, but are not limited to:
(a) New facility construction and building improvements, including structural, mechanical, electrical, and plumbing systems;
(b) Site improvements, including grading, paving, parking lot construction and enhancements, landscaping, lighting, and on-site circulation; (c) Americans with Disabilities Act (ADA) compliance improvements; (d) Energy efficiency improvements and sustainability-related capital improvements; (e) Demolition and reconstruction of existing dealership buildings, expansions of existing dealership facilities, and complete rebuilds;
(f) Signage and architectural features integral to the dealership facility; and (g) Professional services and fees directly related to the Project, including architectural, engineering, design, planning, permitting, development impact fees, and utility connection fees.

Eligible Costs shall not include: (i) routine maintenance, repair, or replacement that does not substantially improve the dealership’s capacity, functionality, or longevity; (ii) ordinary operating expenses such as rent or mortgage payments, insurance, uti lities, wages, inventory, or marketing; (iii) costs unrelated to the Project; (iv) any costs financed or reimbursed from other public sources; (v) land acquisition costs; (vi) costs related to inventory, furniture, fixtures, or equipment not permanently affixed to the real property unless included in Exhibit A ; or (vii) any costs incurred prior to the Effective Date of this Agreement unless specifically approved in writing by City. “Force Majeure Event ” means any occurrence beyond the reasonable control of a Party which could not have been avoided by the exercise of due care and which causes that Party to be unable to perform its obligations hereunder.

Page 29 of 43 ends

11.B.

Page 331 of 353 ends

242624968.2
202758-11033

Page 4 of 15 ends

(a) Force Majeure Events shall include, but are not limited to: flood, earthquake, storm, fire, lightning and other natural catastrophes, epidemic, pandemic, war, riot, civil action, or sabotage.
(b) Notwithstanding the foregoing, a Force Majeure Event shall expressly exclude: (i) financial inability to perform or general economic hardship; (ii) the loss of the Project Site lease or the termination of Dealership’s new car franchise, unless such lo ss or termination is caused directly by a natural catastrophe or government action affecting all similarly situated businesses in the City; or (iii) any event caused by the negligence, willful misconduct, or breach of contract by the non-performing Party.
(c) The Party claiming a Force Majeure Event shall provide written notice to the other Party within ten (10) business days of the commencement of the event, describing the nature of the event and the anticipated duration of the delay.
“Project” means the construction, reconstruction, expansion, or substantial upgrade of the dealership facility and related improvements at the Project Site as described in Exhibit A attached hereto and incorporated herein by this reference.
“Project Site” means the real property located at 350 Carriage Circle, Hemet, CA 92545. “Sales Tax Revenue” means, for purposes of this Agreement only, the portion of sales and use tax actually received by City from the State of California that is (a) attributable solely and directly to taxable sales and uses occurring at the Project Site by reason of Dealersh ip Operations, (b) derived from the 1.0% local Bradley-Burns Tax or any successor general local sales tax authorized by state law in lieu of the Bradley -Burns Tax, and (c) received by City during the Term of this Agreement. For purposes o f calculating Sales Tax Revenue, City shall use the methodology and allocation reports provided by the California Department of Tax and Fee Administration (CDTFA) or its successor agency. Sales Tax Revenue shall expressly exclude: (i) any revenues from the City’s Measure U transactions and use tax or any other special or voter-approved local tax; (ii) any allocations or distributions that City is required by law to pass through or remit to other public agencies; (iii) any sales tax revenue attributable to sales occurring prior to the Effective Date; and (iv) any sales tax revenue that cannot be specifically attributed to the Project Site. “Reimbursement Amount” means the maximum aggregate amount that City may reimburse to Dealership under this Agreement, which shall not exceed SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000) in total, and in no event shall exceed the lesser of (i) the total documented Eligible Costs actually incurred and paid by Dealership, or (ii) the applicable caps set forth in Article XIV as in effect on the Effective Date (currently $7,500,000 for existi ng dealerships and $10,000,000 for new dealerships).
“Sharing Percentage” means the percentage of Sales Tax Revenue attributed to Dealership during a specified period that City agrees to pay to Dealership as reimbursement of Eligible Costs, as set forth in Section 4.
“Term” means the duration of this Agreement as set forth in Section 2.

Page 30 of 43 ends

11.B.

Page 332 of 353 ends

242624968.2
202758-11033

Page 5 of 15 ends

“Performance Benchmarks” means the capital investment, job retention and creation, facility operation, and other performance requirements as set forth in Section 6.

2. TERM; EFFECTIVE DATE
(a) Effective Date . This Agreement shall become effective on the Effective Date, which shall be the later of (i) the date on which this Agreement is fully executed by both Parties and approved by the City Council, or (ii) the date on which all conditions precedent under California Government Code sections 53083 and 53084 have been satisfied, including completion of all required public hearings and notice requirements.
(b) Term. The Term of this Agreement shall commence on the Effective Date and shall continue until the earlier of:
(i) Twenty (20) years from the Effective Date;
(ii) The date on which City has paid to Dealership the full Reimbursement Amount; or
(iii) The effective date of termination pursuant to Section 9. (c) Conditions Precedent to Payment Obligations . City’s obligation to make any reimbursement payments under this Agreement shall be expressly conditioned upon, and Dealership shall have no right to payment unless:
(i) City’s receipt of all information and documentation required under this Agreement;
(ii) City’s determination that Dealership has satisfied all applicable Performance Benchmarks; and
(iii) City’s actual receipt of Sales Tax Revenue attributable to Dealership Operations; and
(d) Additional Conditions. Notwithstanding any other provision of this Agreement, City’s payment obligations are subject to annual appropriation and the availability of Sales Tax Revenue. City shall have no obligation to make payments from any other funding source, and Dealership acknowledges that this Agreement does not create a debt or obli gation of the City within the meaning of any constitutional or statutory limitation.

3. PROJECT; ELIGIBLE COSTS
(a) Project Description. Dealership shall design, construct, and complete the Project at the Project Site in substantial conformity with the description attached as Exhibit

Page 31 of 43 ends

11.B.

Page 333 of 353 ends

242624968.2
202758-11033

Page 6 of 15 ends

A and all plans and specifications approved by City through applicable permitting processes.
(b) Compliance with Entitlements and Codes . Dealership shall obtain and comply with all required land use approvals, building permits, and other regulatory approvals for the Project and shall construct the Project in compliance with all applicable federal, state, and local laws, regulations, and codes. Notwithstanding the foregoing, a failure to comply with minor administrative or technical requirements shall not constitute an Event of Default under Section 9 unless such failure remains uncured after notice and the expiration of the applicable cure period. (c) Determination of Eligible Costs . Dealership shall submit to City a schedule of anticipated Eligible Costs together with supporting documentation (e.g., executed construction contracts, bids, estimates) for City’s review and approval. City may approve, conditionally approve, or disapprov e specific cost categories as Eligible Costs. In determining whether a cost category qualifies as an Eligible Cost, City may consider, among other factors, whether the cost (i) is reasonably necessary to complete the Project as described in Exhibit A, (ii) materially enhances the capacity, functionality, or useful life of the Project, and (iii) is reasonably anticipated to preserve or increase Sales Tax Revenue to City beyond the levels reasonably expected in the absence of th is Agreement. Only those costs approved in writing by City as Eligible Costs shall be eligible for reimbursement. (d) Documentation of Eligible Costs . As a condition of reimbursement, Dealership shall submit to City, at times and in the manner requested by City, invoices, proof of payment, contracts, and such other records as City may require to verify that the costs claimed as Eligible Costs have been incurred and paid by Dealership and meet the definition of Eligible Costs.
(e) No Obligation for Cost Overruns. Dealership shall be solely responsible for any Project costs in excess of the Reimbursement Amount and any cost overruns. City’s financial obligation is limited to the Reimbursement Amount and to the availability of Sales Tax Revenue as provided herein.

4. SALES TAX SHARING; REIMBURSEMENT MECHANICS
(a) General Obligation. Subject to the terms and conditions of this Agreement, City shall remit to Dealership, as reimbursement of Eligible Costs, a portion of the Sales Tax Revenue attributable to Dealership Operations during the Term, not to exceed the Sharing Percentage and Reimbursement Amount described in this Section 4. (b) Sharing Percentage. City shall pay to Dealership, for each fiscal year during the Term, an amount equal to 50% of the Sales Tax Revenue attributable to Dealership Operations during such period, as determined by City based on reports received from the State of California and other information reasonably required by City. (c) Exclusion of Measure U Revenues . In calculating Sales Tax Revenue and any payments to Dealership under this Agreement, City shall exclude any and all

Page 32 of 43 ends

11.B.

Page 334 of 353 ends

242624968.2
202758-11033

Page 7 of 15 ends

revenue derived from the Hemet Transactions and Use Tax (Measure U) or any successor local transactions and use tax imposed by City pursuant to applicable law. (d) Maximum Reimbursement Amount . In no event shall the aggregate amount of payments made by City to Dealership under this Agreement exceed the Reimbursement Amount of SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000), and in no event shall exceed the lesser of (i) the total documented Eligible Costs actually incurred and paid by Dealership, or (ii) the applicable caps set forth in Article XIV as in effect on the Effective Date (currently $7,500,000 for existing dealerships and $10,000,000 for new dealerships). (e) Timing of Payments . Subject to verification of Performance Benchmarks and receipt of all information required under this Agreement, City shall calculate the payment due to Dealership for each applicable period within a reasonable time after City’s receipt of Sales Tax Revenue, and shall remit the amount due to Dealership within 60 days after City’s receipt of Sales Tax Revenue and City’s determination of the amount of Sales Tax Revenue attributable to Dealership Operations for that period, to the address designated in Section 14. If for any period the Sales Tax Revenue attributable to Dealership Operations is zero or negative, no payment shall be due for that period.
(f) Conditions to Payment . As a condition to receiving any payment, Dealership shall:
(i) Be in full compliance with this Agreement , including satisfaction of applicable Performance Benchmarks;
(ii) Have submitted all required reports and documentation set forth in Sections 3, 6, and 7; and
(iii) Not be in default under this Agreement.
(g) Withholding. City may suspend or withhold any payment otherwise due under this Agreement in the event of a dispute regarding the amount of Sales Tax Revenue attributable to Dealership, the eligibility of costs, Dealership’s compliance with Performance Benchmarks, or any alleged default. City shall provide written notice to Dealership describing the basis for suspension or withholding and shall engage in good faith efforts to resolve the dispute. No interest shall accrue on any suspended or withheld amounts.

5. IDENTIFICATION AND ATTRIBUTION OF SALES TAX REVENUE
(a) Seller’s Permit and Location Codes . Dealership shall ensure that all sales and uses of vehicles and related goods and services from Dealership Operations at the Project Site are properly reported to the California Department of Tax and Fee Administration (“CDTFA”) using the correct seller’ s permit number(s) and location code(s) that identify the Project Site within City’s jurisdiction.

Page 33 of 43 ends

11.B.

Page 335 of 353 ends

242624968.2
202758-11033

Page 8 of 15 ends

(b) Cooperation with City . Dealership shall cooperate fully with City in identifying and confirming Sales Tax Revenue attributable to Dealership Operations, including executing any authorizations reasonably required to permit City to obtain sales and use tax allocation and audit information from CDTFA or its successor. (c) Disputes Regarding Attribution . In the event of any dispute regarding the attribution or calculation of Sales Tax Revenue, City’s determination, based on CDTFA records and any applicable audits, shall be final and conclusive, absent demonstrable error.
(d) No Structuring to Divert Tax Allocation. Dealership shall not intentionally structure, process, or record sales or leases of vehicles or related goods and services in a manner designed to divert or shift the allocation of sales or use tax away from the City when, in substance, the transaction ari ses from Dealership Operations at the Project Site. Without limiting the foregoing, Dealership shall not intentionally process sales or leases through another dealership location, business location, or point of sale outside the City when the vehicle is effectively sold, delivered, or negotiated at the Project Site, except as may be required by applicable law or manufacturer/franchise requirements and disclosed in writing to City.

6. PERFORMANCE BENCHMARKS; PUBLIC BENEFIT
(a) Capital Investment . Dealership shall invest not less than FIVE MILLION DOLLARS ($5,000,000) in Eligible Costs associated with the Project, as evidenced by invoices, contracts, and proof of payment acceptable to City. (b) Employment Maintenance and Operational Efficiency . Dealership shall use commercially reasonable efforts to maintain a level of staffing at the Project Site consistent with the efficient operation of a first-class motor vehicle dealership. The Parties acknowledge that Dealership’s staffing needs may evolv e during the Term due to technological advancements, automation of service or sales functions, or shifts in industry standards. Accordingly, the failure to maintain a specific headcount shall not, in itself, constitute an Event of Default, provided that: (i) Dealership continues to generate Sales Tax Revenue at the Project Site; (ii) Dealership provides, as part of the Annual Report required by Section 7(a), a narrative explanation of any material changes in staffing levels resulting from automation or operational reorganization; and (iii) any reduction in staff does not result in a failure to maintain the Facility Operation Standards set forth in Section 6(c).
(c) Facility Operation Standards. Dealership shall:
(i) Maintain continuous Dealership Operations at the Project Site during the Term, subject to temporary closures for remodeling, casualty, condemnation, Force Majeure Events, or other reasons approved in writing by City;

Page 34 of 43 ends

11.B.

Page 336 of 353 ends

242624968.2
202758-11033

Page 9 of 15 ends

(ii) Maintain the facility in good repair and in a first-class condition consistent with then-prevailing standards for comparable Toyota franchise dealerships in Southern California. While the maintenance of a new vehicle dealership franchise shall be considered a factor in evaluating compliance, it shall not be conclusive evidence of “good repair” or “first-class condition,” and the Dealership shall remain subject to all applicable City codes and the maintenance standards set forth in the Project’s land-use entitlements; and (iii) Comply with all applicable manufacturer requirements and brand standards that support long-term viability of Dealership.
(d) Commencement of Operations . Dealership shall commence Dealership Operations at the Project Site by no later than June 30, 2026, , unless delayed by a Force Majeure Event or extended in writing by City in its reasonable discretion. (e) Link to Reimbursement. City’s obligation to make reimbursement payments shall be contingent upon Dealership’s ongoing satisfaction of the Performance Benchmarks. City may reduce, suspend, or terminate payments in whole or in part if Dealership fails to meet or maintain applica ble Performance Benchmarks, after notice and opportunity to cure as provided in Section 9. (f) Quality and Stability of Employment . Dealership shall not intentionally reclassify Employees as independent contractors, or replace Employees with independent contractors or temporary workers, for the primary purpose of satisfying the employment benchmarks of this Agreement while reducing the level of stable employment at the Project Site.

7. REPORTING, RECORDKEEPING, AND AUDIT RIGHTS
(a) Annual Reports by Dealership . During the Term, , Dealership shall submit to City, on or before May 1 st of each year, an annual report in a form reasonably acceptable to City, which shall include at a minimum:

(i) A summary of Sales Tax Revenue information available to Dealership;

(ii) Employment data for the Project Site, including number of employees and job classifications;

(iii) A description of the status of Dealership Operations and Project facilities, including any material changes; and

(iv) Any other information reasonably requested by City to verify compliance with this Agreement and Article XIV .
(b) Books and Records. Dealership shall maintain true, accurate, and complete books and records relating to Sales Tax Revenue, Eligible Costs, employment, and other

Page 35 of 43 ends

11.B.

Page 337 of 353 ends

242624968.2
202758-11033

Page 10 of 15 ends

matters relevant to this Agreement for the Term and shall preserve such books and records for at least five (5) years after the Term.
(c) City Audit Rights. City shall have the right during the Term and for a period of 5 years thereafter, upon reasonable written notice and during normal business hours, to audit and inspect Dealership’s books and records, including but not limited to documents evidencing Eligible Costs and information necessary to verify compliance with Performance Benchmarks and this Agreement. City may utilize third-party auditors or consultants as necessary; provided that City shall require such third parties to maintain th e confidentiality of any proprietary or trade secret information to the extent permitted by law
(d) Consequences of Non -Cooperation. Failure by Dealership to provide required reports, books, records, or access for audit as required under this Section 7 shall constitute a default under this Agreement and shall be governed by the terms of Section 9.

8. COMPLIANCE WITH GOVERNMENT CODE SECTIONS 53083 AND 53084 (a) Economic Development Subsidy Reporting (Gov. Code § 53083) . City shall prepare, or cause to be prepared, any required economic development subsidy report(s) and shall comply with all public notice, public hearing, and posting requirements of Government Code section 53083, as may be amended, in connection with this Agreement. Dealership shall cooperate with City by providing timely and accurate information requested by City for inclusion in such reports within ten (10) business days of City’s request, or such other time period as City may specify in writing.
(b) Market Area Restrictions; Relocation (Gov. Code § 53084) . Dealership represents and warrants that (i) the Project does not involve an unlawful economic development subsidy that would result in the relocation of an automobile dealership from another local agency within the “market area” of City as defined by Government Code section 53084 or other applicable law, and (ii) Dealership has disclosed to City in writing any and all prior locations of Dealership operations within California during the preceding fiv e (5) years. This representation and warranty shall survive the execution and delivery of this Agreement and shall be deemed remade as of each date that City makes a payment to Dealership hereunder. (c) Indemnity for Relocation Claims . Dealership shall indemnify, defend (with counsel reasonably approved by City), and hold harmless City and its officers, officials, employees, and agents from and against any and all claims, actions, liabilities, damages, and expenses (including reasonable attorneys’ fees and costs) arising out of or related to any allegation that this Agreement violates Government Code section 53084 or constitutes an unlawful subsidy for a relocating dealership, except to the extent caused by City’s sole active negligence, willful misconduct, or breach of this Agreement.

Page 36 of 43 ends

11.B.

Page 338 of 353 ends

242624968.2
202758-11033

Page 11 of 15 ends

9. DEFAULT; TERMINATION; CLAWBACK
(a) Events of Default . Each of the following shall constitute an event of default by City or Dealership (as applicable) if occurring during the Term:
(i) Failure to pay, perform, or observe any material obligation under this Agreement, including but not limited to failure to satisfy Performance Benchmarks, failure to maintain required books and records, or failure to submit required reports;
(ii) Submission of materially false or misleading information in connection with this Agreement;
(iii) Failure to maintain continuous Dealership Operations as required herein, except as provided in Section 6(c);
(iv) Cessation of or a material reduction in operations for more than ninety (90) consecutive calendar days, except for the reasons specified in Section 6(c), , without prior written authorization from City. For purposes of this Section, “material reduction of operations” shall mean a decline of more than twenty-five percent (25%) in Sales Tax Revenue sustained for a period of at least six (6) consecutive months, as determined by City. (v) Insolvency, bankruptcy, receivership, or assignment for the benefit of creditors; provided, however, that the filing of a voluntary petition in bankruptcy under Chapter 11 of the United States Bankruptcy Code by Dealership shall not automatically constitut e an event of default if Dealership continues to perform its material obligations hereunder and the bankruptcy court approves this Agreement as an executory contract within one-hundred-eighty (180) days of the filing.
(b) Notice and Cure. Upon the occurrence of any event of default by a Party, the other Party shall provide written notice describing the nature of the default. A Party shall have thirty (30) calendar days from receipt of such notice to cure the default, provided that, if cure cannot reasonably be effected within such thirty (30) day period, such failure shall not be an event of default so long as the Party commences cure within such period and thereafter diligently prosecutes such cure to completion.
(c) Remedies. If the Dealership fails to cure a default within the applicable cure period, the City may pursue all remedies available at law or in equity as well as:
(i) City may s uspend or terminate City’s obligation to make any future payments under this Agreement; and/or
(ii) City may terminate this Agreement by written notice;

Page 37 of 43 ends

11.B.

Page 339 of 353 ends

242624968.2
202758-11033

Page 12 of 15 ends

(d) Clawback for Cessation or Reduction of Operations . If there is an uncured default under Section 9(a)(iii) and/or (iv) , the , Dealership shall be obligated to repay of all funds previously paid to Dealership from or after the event of default (“Clawback Amount”), together with interest at the lesser of (i ) five percent (5%) per annum or (ii) the maximum rate permitted under California law, from the date of City’s payment until repaid.

Termination for Extended Force Majeure . Notwithstanding any other provision of this Agreement, if a Force Majeure Event prevents the Dealership from maintaining Dealership Operations at the Project Site for a period of more than one hundred eighty (180) consecutive calendar days during the Term , City and the Dealership each shall have the right, but not the obligation, to terminate this Agreement upon thirty (30) days’ prior written notice to the other Party . Upon such termination, neither Party shall have any further rights or obligations hereunder, except for those provisions which expressly survive termination. For purposes of this Section, "Dealership Operations" shall not include mere administrative activity or vehicle storage, but shall require the sit e to be open to the public for new motor vehicle sales and service.

10. ASSIGNMENT; CHANGE IN OWNERSHIP
(a) No Assignment Without Consent. Dealership shall not assign this Agreement or any of its rights or obligations hereunder, whether voluntarily, by operation of law, or otherwise, without the prior written consent of City, which consent shall not be unreasonably withheld, conditioned, or delayed, except that City may withhold consent in its sole discretion for assignments to used automobile dealerships or entities that City reasonably determines lack the financial capacity or operational expertise to perform under this Agreement.
(b) Change in Ownership or Franchise . Any sale, transfer, or change in control of Dealership during the Term shall be subject to City’s prior written approval, which shall not be unreasonably withheld, conditioned, or delayed. In evaluating a request for consent, City shall consider the approval of such transaction by Toyota Motor Sales, U.S.A., Inc. (or other relevant new motor vehicle franchisor) as a factor, but such franchisor approval shall not be binding upon the City or constitute "deemed consent" by the City. Any proposed assignee must demonstrate to the City’s reasonable satisfaction that it possesses the financial capacity and operational experience to fulfill the terms of this Agreement.
(c) Conditions to Consent. As a condition to granting consent to assignment or change in ownership, City may require the proposed assignee or successor to assume in writing all obligations of Dealership under this Agreement and to provide such financial information, guarantees, or security as City reasonably deems necessary. (d) Dealership Right to Terminate. In the event that the City does not consent to an assignment or change in ownership, the Dealership shall have the right to elect to

Page 38 of 43 ends

11.B.

Page 340 of 353 ends

242624968.2
202758-11033

Page 13 of 15 ends

terminate this Agreement upon 30 days’ written notice and thereby terminate the City’s right to consent to an assignment or change of ownership.

11. INSURANCE AND INDEMNIFICATION
(a) Insurance. During the Term, Dealership shall maintain, at its sole cost and expense: commercial general liability, automobile liability, workers’ compensation, and property insurance in mutually agreed amounts . City shall be named as an additional insured on applicable liability policies, and insurance policies shall be endorsed to provide that coverage shall not be canceled without at least thirty (30) days’ prior written notice to City.
(b) Indemnification. To the fullest extent permitted by law, Dealership shall indemnify, defend (with counsel reasonably acceptable to City), and hold harmless City and its officers, officials, employees, and agents from and against any and all claims, demands, actions, dama ges, liabilities, judgments, costs, and expenses (including reasonable attorneys’ fees and costs) arising out of or in any way related to:
(i) The Project or Dealership Operations;
(ii) Dealership’s performance or failure to perform under this Agreement; (iii) Any breach or alleged breach of any representation, warranty, or covenant of Dealership herein; or
(iv) Any claim that payments under this Agreement constitute an unlawful gift of public funds or violation of Government Code section 53083 or 53084, except to the extent caused by the active negligence or willful misconduct of City.

12. COMPLIANCE WITH LAWS
(a) General Compliance. Dealership shall comply with all applicable federal, state, and local laws, statutes, ordinances, regulations, and orders in the performance of this Agreement and in the construction and operation of the Project, including without limitation labor, employment, environmental, heal th and safety, building, and tax laws.
(b) Permits and Approvals . Dealership shall obtain and comply with all permits, approvals, licenses, and entitlements required for the Project and Dealership Operations during the Term.

13. PUBLIC RECORDS; CONFIDENTIALITY
(a) Public Records . Dealership acknowledges that this Agreement and most documents submitted to City under this Agreement are public records subject to disclosure under the California Public Records Act (“CPRA”), except to the extent

Page 39 of 43 ends

11.B.

Page 341 of 353 ends

242624968.2
202758-11033

Page 14 of 15 ends

that specific information may be exempt from disclosure under CPRA or other applicable law.
(b) Confidential Information . If Dealership submits information that it believes is exempt from disclosure as a trade secret or proprietary information, Dealership shall clearly mark such information as “CONFIDENTIAL.” City will use reasonable efforts to maintain the confidentiality of such information to the extent permitted by law, but makes no representation that such information will not be disclosed if required by law. If City receives a request for disclosure of information marked as confidential, City sh all notify Dealership to allow Dealership to seek a protective order or other appropriate remedy at Dealership’s sole cost. (c) Indemnification for CPRA Disputes . Dealership shall indemnify and hold harmless City from and against any claims, damages, or expenses (including attorneys’ fees and costs) arising out of City’s refusal to disclose information designated by Dealership as confidential, to the extent Dealer ship has requested nondisclosure.

14. NOTICES
All notices, demands, requests, consents, approvals, and other communications required or permitted under this Agreement shall be in writing and shall be deemed given when personally delivered, sent by nationally recognized overnight courier, or deposited in the United States mail, certified or registered, postage prepaid, addressed as follows:

If to City: City of Hemet
Attn: City Manager
[445 E. Florida Ave]
Hemet, CA [92543]
With a copy to: City Attorney
[445 E. Florida Ave]
Hemet, CA [92543]
If to Dealership: Toyota of Hemet
350 Carriage Circle
Hemet, California 92545
Attn: Kevin Naderi , Owner
Either Party may change its address for notice by providing written notice to the other Party in accordance with this Section.

15. MISCELLANEOUS
(a) Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action to enforce or interpret this Agreement shall be brought in the Superior Court of the State of California in and for the County of Riverside.

Page 40 of 43 ends

11.B.

Page 342 of 353 ends

242624968.2
202758-11033

Page 15 of 15 ends

(b) Entire Agreement; Amendments . This Agreement, including all exhibits, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous oral or written negotiations, understandings, or agreements. This Agreement may be amended only by a written instrument executed by both Parties and approved by the City Council.
(c) No Third-Party Beneficiaries. This Agreement is intended solely for the benefit of City and Dealership, and no other person or entity shall be deemed to have any rights or remedies hereunder.
(d) Limitations of Relationship. Dealership is not, and shall not be deemed to be, an employee, agent, partner, or joint venturer of City.
(e) No Waiver. The waiver by either Party of any breach of any term, covenant, or condition of this Agreement shall not be deemed to be a waiver of any other breach or of any other term, covenant, or condition of this Agreement. (f) Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall continue in full force and effect, provided that the primary purposes of this Agreement are not thereby materially impaired.
(g) Counterparts; Electronic Signatures . This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered by electronic or digital means shall be deemed original signatures for all purposes. (h) City’s Reserved Powers . Nothing in this Agreement shall be construed to limit City’s legislative discretion or police powers. City’s execution of this Agreement is a proprietary act and does not constitute a surrender of its governmental or legislative powers regarding land use, zoning, taxation, or other regulatory matters. (i) No Vested Right to Subsidy. Dealership acknowledges that its right to receive any reimbursement under this Agreement is conditioned upon full compliance with this Agreement and applicable law, and that Dealership has no vested right to continuation of the subsidy in the event of Dealership’s default or non-compliance. (j) Agreement to Act Reasonably . The Parties shall act reasonably in providing approvals and in performing their respective contractual obligations and covenants in this Agreement. Notwithstanding the foregoing, nothing in this Section or this Agreement shall be construed to apply a “reasonableness” standard to, or otherwise limit, the City’s exercise of its police power, legislative discretion, or regulatory authority. The City’s exercise of its governmental functions , i ncluding but not limited to the granting or denial of land use entitlements, building permits, or code enforcement actions, shall be governed by applicable law and the City’s Municipal Code, and shall not be subject to the ‘reasonableness” standard set forth in this Agreement.

Page 41 of 43 ends

11.B.

Page 343 of 353 ends

242624968.2
202758-11033

Page 16 of 15 ends

[Signature Page Follows]

Page 42 of 43 ends

11.B.

Page 344 of 353 ends

242624968.2
202758-11033

Page 17 of 15 ends

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

City Of Hemet
By:

Name: Mark Prestwich
Title: City Manager

ATTEST
By:

Name: John Maier
Title: City Clerk

APPROVED AS TO FORM
By:

Name: Steven Graham Pacifico
Title: City Attorney

DEALERSHIP
Westpark Automotive Company, Inc., a
Delaware corporation

By:

Name: Kevin Naderi
Title: President

EXHIBITS
Exhibit A – Project Description

Page 43 of 43 ends

11.B.

Page 345 of 353 ends

Page 346 of 353 ends

City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Feb 24 2026
Department: Administration
Submitted by: Mark Prestwich, City Manager
Mark Prestwich, City Manager;

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

TITLE:

Approval of Multi-Year Contribution to the Ramona Bowl Amphitheatre Association

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

1. Approve an annual contribution of $50,000 to the Ramona Bowl Amphitheatre Association for Fiscal Years 2025-26 through 2029-30, totaling $250,000 over five years.

2. Authorize the City Manager to execute any necessary agreements or amendments to facilitate the contribution, and direct the City Manager to include the contribution in the upcoming budget cycles.

BACKGROUND:

The Ramona Bowl Amphitheatre, located at 27400 Ramona Bowl Road in Hemet, California, is a historic natural Amphitheatre discovered in 1922 and established as a performance venue in 1923. It is home to the annual "Ramona" Outdoor Play, based on Helen Hunt Jackson's 1884 novel of the same name, which portrays the rich heritage of Southern California's Native American tribes and early settlers. Recognized as California's Official Outdoor Play, the production involves hundreds of community volunteers, including actors, dancers, musicians, and horseback riders, and is the longest- running outdoor play in the United States.

The Amphitheatre serves as an iconic community landmark and cultural hub for the San Jacinto Valley. In addition to the "Ramona" Pageant, it hosts a variety of events, including the Concerts Under the Stars series and the newly introduced Ramona Market. The 103rd season of the "Ramona" Pageant is scheduled to begin on April 18, 2026, with performances on April 18-19, 25-26, and May 2-3, 2026. The Concerts Under the Stars feature live music events, such as tribute concerts, held under the open sky, drawing audiences for memorable evenings of entertainment. The Ramona Market, a free community event showcasing local vendors and crafts, is set for April 11, 2026, and aims to foster local commerce and community engagement.

Page 1 of 7 ends

11.C.

Page 347 of 353 ends

Mayor Linda Krupa serves as a Director on the Ramona Bowl Amphitheatre Association Board of Directors, and Council Member Jackie Peterson serves as an Ex-Officio Member, providing direct City representation and oversight. Mayor Krupa and Council Member Peterson are recommending a contribution of $50,000 annually for five years.

The City of Hemet has historically supported cultural and tourism initiatives that enhance community pride and economic vitality. Previous contributions to similar organizations have demonstrated positive returns through increased visitor traffic and local spending.

ANALYSIS:

The recommended annual contribution of $50,000 for five years will support the ongoing operations and programming at the Ramona Bowl Amphitheatre, including the "Ramona" Pageant, Concerts Under the Stars, and the Ramona Market. This funding is essential for preserving this cherished community treasure, which attracts thousands of visitors annually and promotes tourism in the San Jacinto Valley and surrounding regions. By investing in these cultural events, the City can help ensure the Amphitheatre continues to provide high-quality programming that educates, entertains, and unites residents while boosting the local economy through tourism.

The Amphitheatre's events contribute to Hemet's identity as a cultural destination, aligning with the City's strategic goals for economic development and community enhancement. The involvement of Mayor Krupa and Council Member Peterson on the Board ensures alignment with City priorities and accountable use of funds.

Approval of this contribution is recommended to sustain the Amphitheatre's role as a vital asset for cultural preservation and regional tourism.

PREVIOUS COUNCIL ACTION:

On March 11, 2025, the Hemet City Council adopted a Resolution in support of the Amphitheatre's $2.3 million funding request from a State Resources Bond for repair of their parking lot and water system.

The Hemet City Council allocated $20,000 in non-profit funding on March 25, 2025, for the Ramona Bowl Amphitheatre, and has a long-standing history of financial support in prior years.

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.

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 1: Develop business practices that welcome new development by streamlining processes.

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

Page 2 of 7 ends

11.C.

Page 348 of 353 ends

GOAL FOUR: PARTNERSHIP & COLLABORATION
To pursue partnerships that will increase the opportunities available to the community, including our businesses, unemployed, and youth populations.

Objective 1: Develop concepts and programs to increase opportunities for youth recreation.

Objective 2: Develop concepts and programs to enhance the quality of life services.

Objective 3: Develop programs to offer support to the community's businesses

FISCAL IMPACT:

The total fiscal impact is $250,000 over five years ($50,000 annually). Funds will be allocated from the General Fund, subject to annual budget appropriations. This contribution is anticipated to yield indirect economic benefits through increased tourism and local revenue. No additional staffing or resources are required.

ALTERNATIVE(S):

Provide alternative direction to the City Manager in terms of amount and term.

ATTACHMENT(S):

Attachment 1: Resolution Supporting the Ramona Bowl Amphitheatre

Page 3 of 7 ends

11.C.

Page 349 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-XXX 1

CITY OF HEMET

HEMET, CALIFORNIA
RESOLUTION NO. 2025-xxx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA, APPROVING AN ANNUAL
CONTRIBUTION OF $50,000 TO THE RAMONA BOWL

AMPHITHEATRE ASSOCIATION FOR FISCAL YEARS
2025/26 THRU 2029/30 TO SUPPORT ONGOING

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

WHEREAS, the play Ramona is California’s Official State Outdoor Play; and WHEREAS, the play Ramona was developed and first presented in 1923 and has been produced for over one hundred years at the Ramona Bowl Amphitheatre, located on 168 acres with 5,443 seats in the south hills of Hemet; and WHEREAS, the facilities used in the production of the play were initially developed in the 1930s and do not meet today’s safety and fire requirements; and WHEREAS, the play continues to attract thousands of visitors every year; and WHEREAS, every year upwards of 5,000 fourth-grade students attend the play as part of California's Education Curriculum Requirements for the Common Core Fourth Grade Standards in Social Studies, and history comes to life, teaching them about our cultural legacy, and
WHEREAS, the play educates everyone about the conflicts between the Tribal, Hispanic, and Settler cultures that were present as California developed, and

Page 4 of 7 ends

11.C.

Page 350 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-XXX 1
WHEREAS, the City of Hemet has historically supported cultural and tourism initiatives that enhance community pride and economic vitality.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS, AND RESOLVES AS FOLLOWS:

SECTION 1.FINDINGS – The recitals set forth above are hereby adopted as findings in support of this Resolution.

SECTION 2. AUTHORIZATION – Approves an annual contribution of $50,000 to the Ramona Bowl Amphitheatre Association for Fiscal Years 2025/26 through 2029/30, totaling $250,000 over five years, authorize the City Manager to execute any necessary agreements or amendments to facilitate the contribution(s), and direct the inclusion of the annual funding allocation in the prescribed upcoming budget cycles.

SECTION 3. APPROPRIATIONS – Authorize the Administrative Services Director to establish appropriations in the amount of $50,000 from General Fund Reserves.

SECTION 4.EFFECTIVE DATE – This Resolution shall become effective on February 24, 2026.

Page 5 of 7 ends

11.C.

Page 351 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-XXX 1
PASSED, APPROVED, AND ADOPTED this 24th day of February, 2026. ____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Elodie Klug, Deputy City Clerk

Page 6 of 7 ends

11.C.

Page 352 of 353 ends

CITY OF HEMET RESOLUTION NO. 2026-XXX 1
State of California )
County of Riverside )
City of Hemet )
I, Elodie Klug, Deputy City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 24th day of February, 2026, and was passed by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:
_____________________________
Elodie Klug, Deputy City Clerk

Page 7 of 7 ends

11.C.

Page 353 of 353 ends

Hemet City CouncilFebruary 24, 2026

Hemet City Council
February 24, 2026