Agenda — Hemet City Council, March 10, 2026 (part 5 of 6)

9.A.

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15. ROLL CALL
Deputy City Clerk Klug provided the Roll Call as follows:

Present: Mayor Linda Krupa
Mayor Pro Tem Joe Males
Council Members Connie Howard-Clark, Tom Lodge, and
Jackie Peterson

Absent:

Staff Present:

City Manager:

City Attorney:

Deputy City Clerk:

Mark Prestwich
Steven Graham
Elodie Klug

16. INVOCATION
Invocation was given by Pastor Dennis Cromey of 4/12 Church.

17. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Howard-Clark.

18. CITY ATTORNEY CLOSED SESSION REPORT

18.A. City Attorney’s Report regarding Closed Session
Action:

City Attorney, Steven Graham reported out on Closed Session potential litigation regarding the warehouse project following good faith negotiations. The City of Hemet has entered into a settlement agreement with HSL Hemet Land LLC and Hemet 223 LLC to resolve claims of procedural bias and constitutional due process violations that could expose the city to liability.

The settlement is designed to resolve allegations. The City Council's previous denial of the project was tainted by the participation of biased decision makers. Rather than engaging in a prolonged and costly legal battle that could expose the city to significant monetary damages, the city has agreed to a procedural reset. The key terms of the settlement include a new public hearing. The city will schedule a fresh public hearing for the project that is currently anticipated at the regular meeting of March 10th, 2026. After being advised of the potential legal exposure to the city, Council Members Lodge and Clark, both Council Members, voluntarily agreed not to participate in the new hearing. This is not an admission of wrongdoing by the Council Members and does not set any precedent for those Council Members.

Future participation and the applicants must defend the city against any third party challenge for the settlement or the subsequent hearing process at their own expense release of liability in exchange for a new hearing the property owner has fully released the city from all previous claims of bias or due process violations there is no guarantee of an outcome at the hearing the city recognizes the intense public discourse surrounding the project which is why I've been

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directed to make this detailed public announcement more than four weeks in advance of the public hearing to be clear the settlement is not an approval of the project instead it is a strategic decision by the city to protect taxpayer money by avoiding a high stakes civil rights lawsuit that could drain the city's general fund and it ensures legal finality by holding a new hearing with 18 procedural record the city ensures that its final whether it be to approve or deny the project is legally defensible evidence based and made narrow not years in the future following at the end of the law school the city remains committed to a transparent process where all residents can voice their concerns or support for the project public notice will be provided for the upcoming hearing and it will occur at a regular City Council meeting.

19. PRESENTATION

19.A Proclamation for Black History Month
Mayor Krupa presented the Proclamation for National Black History Month to David Simpkins of the Rotary Club.

20. COMMUNICATIONS FROM THE PUBLIC
Mayor Krupa asked for Public Comments, and the following citizens spoke: Perry Hiestand, Roy Michael Fales, and Marianne Derowin.

14.B. Public Comment for Items Not Listed on the Agenda, but within Jurisdictional Matter

14.A. Public Comment for Items Listed on the Agenda: Consent and Discussion Items

21. PUBLIC HEARINGS

21.A Public Hearing and Adoption of Water and Sewer Rate Schedule Pursuant to Proposition 218
Michael Cronan, Project Manager, and Chris Fisher, Vice President from Willdan, presented a PowerPoint presentation overviewing the Water and Sewer Rate Schedule.

Mayor Krupa opened the Public Hearing at 6:54 p.m.

Deputy City Clerk Klug read the following written protests received: Donna E. Colquit, Juana Fajardo, Lee Holder, and Robert Shack.

Mayor Krupa closed the Public Hearing at 6:21 p.m.

Action:

It is respectfully recommended that the City Council:

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1. Receive a staff report on the Consolidated Water and Sewer Rate Study and the resulting five-year rate schedule; and

2. Conduct a Proposition 218 Majority Protest Public Hearing and hear testimony; and

3. Direct the City Clerk to tabulate the results of written protests from property owners.

4. Adopt a Resolution 2025-025 of the City Council of the City of Hemet, California, approving the water and sewer rate schedule to be implemented from March 1, 2026, through January 1, 2030.

Action:

MOTION BY COUNCIL MEMBER PETERSON, SECOND BY COUNCIL MEMBER LODGE, CARRIED 5-0, to adopt a Resolution of the City Council of the City of Hemet, California, approving the water and sewer rate schedule to be implemented from March 1, 2026, through January 1, 2030.

21.B. ZOA 25-003: An Ordinance of the City of Hemet, California, Repealing and Restating Chapter 90 (Zoning), Article XI, Section 90-321 of the Hemet Municipal Code regulating Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) in accordance with State law.

Environmental Review: Under California Public Resources Code section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the Government Code, which is California’s Accessory Dwelling Unit (ADU) law and which also regulates Junior Accessory Dwelling Units (JADUs), as defined by section 66310 to 66342. The proposed ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section §15061(b)(3), which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Monique Alaniz-Flejter presented a PowerPoint Presentation.

Mayor Krupa opened the Public Hearing at 6:47 p.m.

The following citizens spoke: Scott Garret.

Mayor Krupa closed the Public Hearing at 6:53 p.m.

Action:

Continued to the next Regular City Council Meeting on February 24, 2026.

22. RECEIVE AND FILE

22.A The City of Hemet Warrant Registers for January 15, 2026, and January 22, 2026, and Periodic Payroll Payments

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Action:

By consensus, the City Council received and filed the City of Hemet Warrant Registers and Periodic Payroll Payments.

23. CONSENT CALENDAR

MOTION BY COUNCIL MEMBER LODGE, SECOND BY MAYOR PRO TEM MALES, CARRIED 5-0, to approve the Consent Calendar, removing Item 23.B for separate consideration.

23.A A Resolution of the City Council of the City of Hemet, California, Awarding Onyx Paving Company the 2024/2025 Slurry Seal Project, CIP 2410, in the Amount of $678,000, Finding the Lowest Bidder, Roy Allan Slurry Seal, Inc.

Non-Responsive, Waiving any Minor Bid Irregularities, Authorizing the City Manager to Execute all Contract Documents; Approving Additional Construction Expenditures Not to Exceed 10% of the Contract Amount or $67,800; Approving Materials Testing in the Amount of $10,000; and Authorizing the City Clerk to Record the Notice of Completion upon Acceptance of the Work by the City Engineer
Action:

MOTION BY COUNCILMEMBER LODGE, SECONDED BY MAYOR PRO TEM MALES PASSED 5-0 to adopt a Resolution 2026-026 of the City Council of the City of Hemet, California, Awarding Onyx Paving Company the 24/25 Slurry Seal Project, CIP 2410, in the Amount of $678,000, Finding the Lowest Bidder, Roy Allan Slurry Seal, Inc. Non-Responsive, Waiving any Minor Bid Irregularities, Authorizing the City Manager to Execute all Contract Documents; Approving Additional Construction Expenditures Not to Exceed 10% of the Contract Amount or $67,800; Approving Materials Testing in the Amount of $10,000; and Authorizing the City Clerk to Record the Notice of Completion upon Acceptance of the Work by the City Engineer.

23.B. Consideration of a Resolution of the City Council of the City of Hemet, California, In Support of Preserving and Conserving the Juan Bautista de Anza National Historic Trail
Mayor Krupa asked for Public Comment, and the following citizens spoke: Debbie Green, Matt McPherson, Bella Sol, Jeremiah Herterien, and Andrew Kotyuk.

Action:

MOTION BY MAYOR PRO TEM MALES SECONDED BY COUNCIL MEMBER PETERSON PASSED 5-0 to adopt a Resolution 2026-030 of the City Council of the City of Hemet, California, In Support of preserving and conserving the Juan Bautista de Anza National Historic Trail.

23.C Approval of the City Council Regular Meeting Minutes of January 27, 2026, December 9, 2025, November 12, 2025, and October 28, 2025

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Action:

MOTION BY COUNCILMEMBER LODGE SECONDED BY MAYOR PRO TEM MALES PASSED 5-0 to approve the City Council Regular Meeting Minutes of January 27, 2026, December 9, 2025, November 12, 2025, and October 28, 2025.

24. DISCUSSION - ACTION ITEMS

24.A. Approval of a License Agreement with the Hemet Woman’s Club for Continued Use of the Hemet Public Library
Action:

This item was pulled from the calendar at staff's request.

24.B. A Resolution of the City Council of the City of Hemet, California, Calling for a Special Municipal Election on June 2, 2026, Regarding the Elective Office of Mayor
Mayor Krupa asked for Public Comments, and the following citizens spoke: Jean Faenza, Karen Hepp, Judith McPherson, and Krista Mason.

Action:

MOTION BY MAYOR KRUPA SECONDED, BY MAYOR PRO TEM MALES PASSED 3-2 to deny staff recommendation.

MOTION BY MAYOR KRUPA SECONDED BY MAYOR PRO TEM MALES PASSED 5-0 to bring the item back for further deliberations at a future meeting and direct staff to bring back information gathered from other cities in the state of California.

City Manager Mark Prestwich inquired whether the Council was looking for a Council/Manager form of government, a general law city, and a two-year and/or four-year directly elected mayor.

Mayor Krupa responded with an affirmative.

24.C Consideration of the 2026 City of Hemet Community Survey Action:

MOTION BY COUNCILMEMBER PETERSON SECONDED BY COUNCIL MEMBER CLARK PASSED 5-0 to move forward with the all-inclusive city-wide survey option presented for the conceptual 2026 City of Hemet Community Survey.

25. CITY COUNCIL AND STAFF REPORTS
Mayor Krupa asked for Council Comments. Council Member Howard-Clark, Council Member Lodge, Council Member Peterson, Mayor Pro Tem Males, and Mayor Krupa gave reports.

CITY MANAGER MARK PRESTWICH
City Manager Prestwich announced that the third annual Hemet Beautiful, a Community Day of Service event, is scheduled for April 25th, noting that last year’s event included 498 volunteers

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and that the I Love Hemet clean-up initiative, which received 98 volunteers, will continue every month, and encouraged citizens to participate.

26. FUTURE AGENDA ITEMS
None.

27. ADJOURNMENT
There being no further business, Mayor Krupa adjourned the meeting at 8:11 P.M. The Next Regular City Council Meeting will be at 6:00 P.M. on February 24, 2026.

APPROVAL: ATTEST:
_______________________________
Linda Krupa
_____________________________
Elodie Klug
Mayor Deputy City Clerk

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MINUTES
City Council Meeting
City of Hemet
Hemet Public Library, First Floor Boardroom
Wednesday, February 18, 2026

1. SPECIAL MEETING – 8:30 A.M.

2. CALL TO ORDER
The City Council of the City of Hemet met this date in a Special Session at 8:30 a.m. in the Hemet Public Library, First Floor Boardroom, 300 E. Latham Avenue, Hemet, California, with Mayor Krupa presiding.

3. ROLL CALL
Deputy City Clerk Klug provided the Roll Call as follows:

Present: Mayor Krupa
Mayor Pro Tem Males
Council Member Peterson
Council Member Howard-Clark
Council Member Lodge

Absent:

Staff

Present:

City Manager Prestwich
City Attorney Graham
Deputy City Clerk Klug

4. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Peterson.

5. COMMUNICATIONS FROM THE PUBLIC
Mayor Krupa asked for Public Comments, and the following citizens spoke: None.

5.B. Public Comment for Items Listed on the Agenda, but within Jurisdictional Matter

6. DISCUSSION – CITY COUNCIL TEAM BUILDING, COMMUNICATION, AND

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GOVERNANCE

6.A. Brown Act and Public Hearing Training.

City Attorney Graham gave a verbal training on the Brown Act and public hearing procedures.

Copies of the Brown Act were distributed to council members.

6.B. Team Building Exercise
City Manager Prestwich provided a verbal team-building exercise for council members.

6.C. Communications Discussion
City Manager Prestwich gave a presentation on communications procedures, including an overview of An Effective City Council/City Manager Relationship.

Mayor Krupa recessed the meeting at 10:35 a.m.

Mayor Krupa reconvened the meeting at 10:50 a.m.

6.D. Governance Discussion
City Manager Prestwich presented on various good governance practices and provided an overview of the Attributes of Exceptional Councils and the current Rules of Decorum.

Mayor Krupa recessed the meeting for lunch at 11:55 a.m.

Mayor Krupa reconvened the meeting at 12:20 p.m.

7. ADJOURNMENT
There being no further business, Mayor Krupa adjourned the meeting at 12:20 p.m. The next Regular City Council Meeting will be at 6:00 p.m. on February 24, 2026.

APPROVAL: ATTEST:
_______________________________
Linda Krupa
_____________________________
Elodie Klug
Mayor Deputy City Clerk

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MINUTES
City Council Meeting
City of Hemet
Hemet Public Library, Second Floor
Tuesday, February 24, 2026

1. REGULAR MEETING - 6:00 P.M.

2. CALL TO ORDER
The City Council of the City of Hemet met this date in a Regular Session at 6:04 p.m. in the City Council Chamber, 300 E. Latham Avenue, Hemet, California, with Mayor Krupa presiding.

3. ROLL CALL
Deputy City Clerk Klug provided the Roll Call as follows:

Present: Mayor Linda Krupa
Mayor Pro Tem Joe Males
Council Members Connie Howard-Clark, Tom Lodge, and Jackie Peterson

Absent:

Staff

Present:

City Manager Mark Prestwich
City Attorney Steven Graham
Deputy City Clerk Klug

4. INVOCATION
Invocation was given by Senior Pastor Larry Diggs of Light of Hope Community Church

5. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Peterson.

6. PRESENTATIONS

6.A. Proclamation for Riverside County Arts and Culture Month

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Council Member Clark presented the Proclamation for Riverside County Arts and Culture Month to Malcolm Lilienthal, Sheryl Cooley, Lori Van Arsdale, and Tracy Andersen, members of the Hemet Valley Arts Association.

6.B. Letter of Recognition for Aree Williams, Jr.

Mayor Krupa and Council Member Peterson presented the Letter of Recognition to Aree Williams, Jr.

7. COMMUNICATIONS FROM THE PUBLIC
Mayor Krupa stated that for Items 7.A and 7.B, Public Comments for Items Listed on the Agenda would be taken as each item is presented. Public Comments for Items Not Listed on the Agenda would be taken after the Discussion Items.

7.A Public Comment for Items Not Listed on the Agenda, but within Jurisdictional Matter

7.B. Public Comment for Items Listed on the Agenda: Consent and Discussion Items

8. PUBLIC HEARINGS

8.A. Zoning Ordinance Amendment (ZOA 26-001): An Ordinance of the City Council of the City of Hemet, California, Amending Portion of the Hemet Municipal Code, Chapter 90, adding Article XVIII. Art in Development, Sections 90-1501 through 90-1513 and Article XVIV. City-Initiated Art in Public Places, Section 90-1531 through 90-1536 inclusive for Adoption of an Art in Public Places Ordinance and Program.

Environmental Determination: The City has analyzed this proposed project and has determined that it is exempt from the California Environmental Quality Act (CEQA) under Section 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment.  Nothing herein constitutes the City’s approval of any applications, Development Project entitlements and/or permits.

Therefore, ZOA 26-001 amendment to the zoning code in itself will not result in any physical project and will not result in any physical change to the environment and does not affect the land use or density limitations of the General Plan. Therefore, it can be seen with certainty that there is no possibility that this Ordinance may have a significant adverse effect on the environment, and therefore, the adoption of this Ordinance is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines.

Nathan Morin, Assistant Planner, presented a PowerPoint presentation on the Arts Ordinance.

Mayor Krupa opened the Public Hearing at 6:41 p.m.

The following citizens spoke: Sheryl Cooley, Lori Van Arsdale, and Malcolm Lilienthal

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Mayor Krupa closed the Public Hearing at 6:46 p.m.

Action:

MOTION BY COUNCILMEMBER LODGE SECONDED BY COUNCIL MEMBER PETERSON PASSED 5-0 to:

1. Find that the Project is Categorically Exempt from CEQA in accordance with California Public Resources Code section 21080.17, as defined by section 66314 to 66332 of the Government Code and CEQA Guidelines Section 15061(b)(3) the “common sense exemption” as it can be seen with certainty that there is no possibility that the proposed Ordinance may have a significant effect on the environment; and

2. Receive a report regarding the proposed Zoning Ordinance Amendment No. 2026-001; and

3. Introduced by First Reading an Ordinance 2073 of the City Council of the City of Hemet, California, adopting Zoning Ordinance Amendment No. 26-001, Amending Portion of the Hemet Municipal Code, Chapter 90, adding Article XVIII. Art in Development, Sections 90-1501 through 90-1513 and Article XVIV. City-Initiated Art in Public Places, Section 90-1531 through 90-1536 inclusive for Adoption of an Art in Public Places Ordinance and Program.

8.B. Zoning Ordinance Amendment (ZOA 25-003): An Ordinance of the City of Hemet, California, Repealing and Restating Chapter 90 (Zoning), Article XI, Section 90-321 of the Hemet Municipal Code regulating Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) in accordance with State law.

Monique Alaniz-Flejter presented a PowerPoint presentation on the ADU ordinance.

Mayor Krupa opened the Public Hearing at 7:11 p.m.

The following citizens spoke: Ann Smith, Scott Garrett, and Lori Van Arsdale Mayor Krupa closed the Public Hearing at 7:14 p.m.

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Action:

MOTION BY COUNCILMEMBER PETERSON SECONDED BY COUNCIL MEMBER LODGE PASSED 5-0 to:

2. Introduce by First Reading an Ordinance 2072 of the City Council of the City of Hemet, California, adopting Zoning Ordinance Amendment No. 25-003, Repealing and Restating Chapter 90 (Zoning), Article XI, Section 90-321 of the Hemet Municipal Code regulating Accessory Dwelling Units in accordance with State law.

9. RECEIVE AND FILE

9.A. The City of Hemet Warrant Registers for January 28, 2026, January 29, 2026, and February 5, 2026, and Periodic Payroll Payments
Action:

By consensus, the City Council received and filed the City of Hemet Warrant Registers and Periodic Payroll Payments.

10. CONSENT CALENDAR

10.A. 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
Mayor Krupa asked for Public Comment, and the following citizen spoke: Ann Smith.

Action:

MOTION BY COUNCILMEMBER LODGE SECONDED BY COUNCIL MEMBER PETERSON PASSED 5-0 to Adopt a Resolution 2026-028 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.

11. DISCUSSION - ACTION ITEMS

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11.A. 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
City Manager, Mark Prestwich presented on the appointment and introduced Jane Halstead.

Mayor Krupa asked for Public Comment, and the following citizen spoke: None.

Action:

MOTION BY COUNCILMEMBER PETERSON SECONDED BY MAYOR PRO TEM MALES PASSED 5-0 to Adopt a Resolution 2026-029 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 the necessity of the appointment and compliance with Government Code Sections 21221(h) and 7522.56.

11.B 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 Benigno Sandoval, Economic Development Manager, provided a PowerPoint Presentation and introduced the Hemet Auto Mall Dealership staff.

Mayor Krupa asked for Public Comment, and the following citizen spoke: Lori Van Arsdale.

Action:

MOTION BY MAYOR PRO TEM MALES SECONDED BY COUNCIL MEMBER LODGE PASSED 5-0 to 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.

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

City Manager, Prestwich, provided a presentation on the Multi-Year Contribution to the Ramona Bowl Amphitheatre Association.

Mayor Krupa asked for Public Comment, and the following citizens spoke: Ramona Bowl Chair, Joe Grindstaff, and Chuck Champion
Steven Graham, City Attorney, noted that Mayor Krupa and Council Member Peterson, as volunteer representatives of the City of Hemet Board of Directors, may participate and would not be required to be recused per the Fair Political Practices Commission.

Action:

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MOTION BY COUNCILMEMBER CLARK SECONDED BY COUNCIL MEMBER LODGE PASSED 4-0-1 (MAYOR KRUPA ABSTAINED) to:

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.

7.A Public Comment for Items Not Listed on the Agenda, but within Jurisdictional Matter Mayor Krupa asked for Public Comments, and the following citizens spoke: Marianne Derouin, Roy Michael, Jean Faenza, Carol Valade, Harriet Brunner, Richard Brunner, Charlene Schneider, Martha Razade, and George Evans

12. CITY COUNCIL AND STAFF REPORTS
Mayor Krupa asked for Council Comments. Council Member Howard-Clark, Council Member Lodge, Council Member Peterson, Mayor Pro Tem Males, and Mayor Krupa gave reports.

CITY MANAGER MARK PRESTWICH
City Manager Prestwich announced the publication of the latest City Update, and the Kitchen Grant applications process opened through mid-March.

13. FUTURE AGENDA ITEMS
None.

14. ADJOURNMENT
There being no further business, Mayor Krupa adjourned the meeting at 8:53 p.m. The next Regular City Council Meeting will be at 6:00 p.m. on March 10, 2026.

APPROVAL: ATTEST:
_______________________________
Linda Krupa
_____________________________
Elodie Klug
Mayor Deputy City Clerk

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City of Hemet
City Council Meeting

STAFF REPORT
Meeting: City Council Meeting - Mar 10 2026
Department: Community Development
Submitted by: Mark Prestwich, City Manager
Elodie Klug, Deputy City Clerk, Monique Alaniz-Flejter, Community Development Director;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:

Zoning Ordinance Amendment (ZOA 25-003): Second Reading and Adoption of an Ordinance 2072 of the City of Hemet, California, Repealing and Restating Chapter 90 (Zoning), Article XI, Section 90- 321 of the Hemet Municipal Code regulating Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) in accordance with State law.

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

2. Waive further reading and adopt by title only an Ordinance 2072 of the City Council of the City of Hemet, California, adopting Zoning Ordinance Amendment No. 25-003, Repealing and Restating Chapter 90 (Zoning), Article XI, Section 90-321 of the Hemet Municipal Code regulating Accessory Dwelling Units in accordance with State law.

PREVIOUS COUNCIL ACTION:

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Action:

On February 24, 2026, the City Council voted to approve Ordinance 2072 as amended. MOTION BY COUNCIL MEMBER PETERSON, SECOND BY COUNCIL MEMBER LODGE, CARRIED 5-0, to:

2. Introduce by First Reading an Ordinance of the City Council of the City of Hemet, California, adopting Zoning Ordinance Amendment No. 25-003, Repealing and Restating Chapter 90 (Zoning), Article XI, Section 90-321 of the Hemet Municipal Code regulating Accessory Dwelling Units in accordance with State law.

STRATEGIC PLAN INTEGRATION:

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

Objective 2: Increase transparency for the public.

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

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

FISCAL IMPACT:

Not applicable.

REVIEWED BY LEGAL:
☒ Staff report ☐ Resolution
☒ Ordinance ☐ Agreement
ATTACHMENT(S):

Attachment 1_ CC Ordinance 2072_03.10.2026 CC_ Revised_Final Clean

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CITY OF HEMET ORDINANCE NO. 2072 1
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CITY OF HEMET

HEMET, CALIFORNIA
ORDINANCE NO. 2072

AN ORDINANCE OF THE CITY OF HEMET, CALIFORNIA, TO REPEAL AND RESTATE CHAPTER 90 (ZONING), ARTICLE XI, SECTION 90-321

OF THE HEMET MUNICIPAL CODE REGULATING ACCESSORY

DWELLING UNITS (ADUS) AND JUNIOR ACCESSORY DWELLING

UNITS (JADUS) IN ACCORDANCE WITH STATE LAW
WHEREAS, from 2019 to 2025, the California Legislature signed into law multiple Senate and Assembly Bills and other legislation (collectively, the “Bills”) into law, amending Government Code Sections and the Health and Safety Code, thereby establishing statewide requirements for ADUs and JADUs; and WHEREAS, the City Council of the City of Hemet (“City Council”) finds that to further comply with State law, it is necessary for the City to repeal and restate its Municipal Code so that its provisions conform to and align with the requirements of Government Code Sections 66310 through 66342, as may be amended from time to time; and
WHEREAS, the City Council therefore determines that this Ordinance is a reasonable and necessary means to protect and promote the health, safety, and general welfare of the residents of the City.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The above recitals are all true and correct and are incorporated

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CITY OF HEMET ORDINANCE NO. 2072 2
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SECTION 2: REPEAL AND RESTATE CHAPTER 90 (ZONING), ARTICLE XI, SECTION 90-321 as follows:

Sec. 90-321. Accessory dwelling units.
(a) General provisions.
(1) An application for an accessory dwelling unit (“ADU”) or junior accessory dwelling unit (“JADU”) shall be submitted to the building department for building plan check approval and shall be permitted ministerially without discretionary review or public hearing if it meets the definitions. The purpose of this chapter is to allow and regulate accessory dwelling units ("ADUs") and junior accessory dwelling units ("JADUs") in compliance with state law governing accessory dwelling units, including Chapter 13 of Division 1 of Title 7 of the California Government Code, as may be amended from time to time. To the extent state law is more permissive than this chapter, state law shall control.
(2) An application for an ADU or JADU shall be submitted to the building department for building plan check approval and shall be permitted ministerially without discretionary review or public hearing if it meets the definitions and criteria listed in this section and all other applicable zoning, building, and health and safety codes.

A. If the City has not acted upon a completed application for an ADU or JADU within 60 days from submission of a complete application, and the applicant has not requested a delay, the application shall be deemed approved, unless the permit application is to create a new single family or multifamily dwelling on the lot, in which case the City shall not act on the permit application for the ADU or JADU until the City

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acts on the permit application for the new dwelling unit. The City shall determine whether an ADU or JADU application is complete within 15 business days of submission. If the application is incomplete, the City shall provide the applicant with a written list of items needed to make the application complete and shall review resubmittals only for the items identified in the incompleteness determination, consistent with state law.

B. If the City denies an application for an ADU or JADU, the City shall provide in writing a full set of comments within 60 days to the applicant from the date of receipt of a completed application, with a list of items that are defective or deficient, and a description of how the application can be remedied, in accordance with applicable state law.

C. An ADU or JADU may not be used for short-term rentals. If rented shall be for a term longer than 30 days.

D. Occupancy of an ADU or JADU shall not be allowed until the City approves occupancy of the primary dwelling unit.
(3) For the purposes of meeting the city's applicable regional housing needs allocation as contained in the adopted housing element, ADUs may be reported as progress towards meeting these goals.
(4) Authority to Designate Areas - The City may designate areas within the jurisdiction where ADUs may be permitted based on the adequacy of water and sewer services and the impact of accessory dwelling units on traffic flow and public safety.

However, where the City has not designated such areas, ADUs shall be permitted in all

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areas zoned for residential or mixed use pursuant to this section and applicable state law, as may be amended from time to time.
(5) An ADU shall only be allowed on a residentially zoned lot under this article that contains an existing or proposed single-family or existing multiple-family residence.
(6) For purposes of calculating allowable density, an ADU is not counted as an additional unit.
(b) Definitions.
(1) Accessory dwelling unit (“ADU”) means an attached or detached residential dwelling unit which provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling. An ADU also includes the following:
(A) An efficiency unit, as defined in Health and Safety Code § 17958.1. (B) A manufactured home, as defined in Health and Safety Code § 18007.
(2) Accessory structure means a structure that is accessory and incidental to a dwelling located on the same lot.
(3) Junior accessory dwelling (“JADU”) unit means an accessory dwelling unit that is no more than 500 square feet in size and is contained entirely within a

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single-family residence. It includes its own separate sanitation facilities, kitchen, or shares sanitation facilities with the existing or proposed single-family structure. (4) Efficiency unit has the same meaning as defined in Section 17958.1 of the Health and Safety Code.
(5) Impact Fee has the same meaning as the term “fee,” as defined in subdivision (b) of Government Code Section 66000, except that it also includes fees specified in Section 66477. “Impact Fee” does not include any connection fee or capacity charge by a local agency, special district, or water corporation. (6) Livable space or interior livable space has the same meaning as defined in applicable state law and means the interior habitable area of a dwelling unit intended for human habitation, including living, sleeping, eating, cooking, or sanitation. This measurement is based on net square footage and does not include exterior walls, garages, or uninhabitable spaces.
(7) Living area means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. (8) Local agency means a City, County, or City and County, whether general law or chartered.
(9) Multifamily dwelling means two or more attached primary dwelling units. (10) Nonconforming zoning condition means a physical improvement on a property that does not conform with current zoning standards.

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(11) Objective standards means standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. (12) Permitting agency means any entity that is involved in the review of a permit for an accessory dwelling unit or junior accessory dwelling unit and for which there is no substitute, including, but not limited to, applicable planning departments, building departments, utilities, and special districts. (13) Primary dwelling unit means the single-family dwelling or each multifamily dwelling unit, but does not include an ADU or JADU. An attached garage is considered part of the primary dwelling unit.
(14) Proposed dwelling means a dwelling that is the subject of a permit application and that meets the requirements for permitting. (15) Public transit means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. (16) Passageway means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit. (17) Tandem parking means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another, provided that the vehicles do not extend over the public sidewalk or right-of-way.

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(c) General criteria. An ADU shall meet the following criteria. (1) The ADU may be rented separate from the primary residence and may be sold or conveyed separately from the primary residence only if the requirements in applicable state law for separate conveyance are met.
(2) The ADU may be either attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas, or similar uses, or detached from the primary dwelling.
(3) The number of ADUs that may be established on a lot shall be as follows, consistent with state law:
(A) On lots with a proposed or existing single-family dwelling:
(i) Up to two detached ADUs are permitted;
(ii) Up to one attached ADU is permitted; and
(iii) Up to one JADU is permitted.
(iv) The detached and attached ADUs and JADUs may be established concurrently or separately, provided the total number of primary dwellings and ADUs/JADUs does not exceed four on any lot zoned for single-family residential uses. (B) On lots with existing multifamily dwellings:
(i) No more than two detached ADUs on a lot with proposed multifamily dwelling, or up to four detached ADUs on a lot with an existing multifamily dwelling if each detached ADU satisfies all of the following:

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a. The side- and rear-yard setbacks are at least four feet. If the existing multifamily dwelling has a rear or side yard setback of less than four feet, the city will not require any modification to the multifamily dwelling as a condition of approving the ADU.
b. The peak height above grade does not exceed the height limit provided in Section 90-321(c)(15)(A).
c. Provided the number of detached ADUs does not exceed the number of primary dwelling units on the lot.
(ii) Up to 25 percent of the number of existing multifamily units may be attached ADUs, with a minimum of one ADU allowed; and
(iii) Up to 25 percent of the existing multifamily dwelling units may be created within portions of existing multifamily dwelling structures that are not used as livable space, with a minimum of one ADU allowed.
(C) On parcels created through an SB 9 lot split: No more than two units (including ADUs and JADUs) on a parcel created through a Senate Bill 9 (Chapter 162, Statutes of 2021) lot split shall be allowed, and in no case shall the total number of primary dwellings and ADUs/JADUs exceed four on the two parcels collectively. (4) A lot having an ADU shall not be subdivided in a manner that would allow for the principal dwelling unit and the ADU to be located on separate lots that do not meet the development standards required by the underlying zone, unless otherwise permitted by state law.

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(5) The maximum interior livable space of an attached ADU is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two or more bedrooms, consistent with state law. An attached ADU that expands the existing primary dwelling by more than 150 square feet shall not exceed 50 percent of the existing primary dwelling’s floor area.
(6) The maximum interior livable space of a detached ADU is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two or more bedrooms, except that a detached ADU meeting the simplified approval standards may not exceed 800 square feet of interior livable space, consistent with state law. (7) Unless otherwise provided in this subsection, an ADU shall comply with the required standards and setbacks of the zone in which it is located. (A) No setback shall be required for an ADU that is constructed in the same location and to the same dimensions as an existing structure that is converted to an ADU.
(B) A setback of no more than four feet from the side and rear lot lines shall be required for an ADU that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure.
(C) The minimum side, street-side, and rear yard setback shall be 4 feet, except when converting or replacing an existing accessory structure that is less than 4 feet from those lot lines.
(8) Parking Requirements:

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(A) When a garage, carport, uncovered parking space, or covered parking structure is demolished in conjunction with the construction of an ADU or is converted to an ADU, no replacement off-street parking spaces are required. (B) Generally, no parking is required for ADUs or JADUs. However, one parking space per ADU or per bedroom, whichever is less, may be required for detached ADUs only, except as provided in subsection (C). The required parking space may be provided as tandem parking on a driveway or in setback areas. (C) Notwithstanding any other provision in this section, no parking standards shall be imposed for an ADU in the following instances:
a. The ADU is located within one-half mile walking distance of public transit. b. The ADU is located within an architecturally and historically significant and designated historic district.
c. The ADU is part of the proposed or existing primary residence or an existing accessory structure.
d. When on-street parking permits are required but not offered to the occupant of the ADU.
e. When there is a car share vehicle located within one block of the ADU. f. When the ADU permit application is submitted concurrently with a permit application to create a new single-family or new multifamily dwelling on the same lot. (9) No passageway shall be required in conjunction with the construction of the ADU.

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(10) An accessory dwelling unit shall be architecturally compatible with the principal dwelling unit. Compatibility shall be based on the architectural style, construction materials, and primary color of the principal dwelling unit. (11) An ADU shall not be considered a new residential use for the purpose of calculating connection fees or capacity charges for utilities, including water and sewer services, unless the ADU is constructed with a new single-family dwelling, consistent with applicable state law, as may be amended from time to time. The City may require a new or separate utility connection directly between the ADU and the utility service. (12) Impact Fees:
(A) No impact fee is required for an ADU or JADU that is less than 750 square feet of interior livable space. Additionally, ADUs and JADUs that are 500 square feet or less of interior livable space are exempt from school fees, consistent with applicable state law, as may be amended from time to time. (B) Any impact fee required for an ADU that is 750 square feet or more in size shall be charged proportionately in relation to the square footage of the primary dwelling unit (e.g., the floor area of the ADU divided by the floor area of the primary dwelling, times the typical fee charged for a new dwelling), consistent with applicable state law.
(13) Prior to issuance of a certificate of occupancy for a JADU, a deed restriction shall be recorded that runs with the land and specifies that the JADU may not be sold separately from the primary single-family dwelling, that the JADU is restricted to the maximum square footage, and includes other requirements of state law

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for JADUs, as may be amended from time to time. For ADUs, a deed restriction is required only if the ADU is to be sold separately, in which case it must comply with applicable state law regarding separate conveyance.
(14) The City will not deny an application for an ADU or JADU due to a nonconforming zoning condition, building code violation, or unpermitted structure that does not threaten public health and safety and is unaffected by the construction of the ADU or JADU, consistent with applicable state law. For ADUs constructed before January 1, 2020, the City may not deny a permit to legalize the ADU based on violations of building standards or noncompliance with ADU law, except where correcting the violation is necessary to protect health and safety as defined in applicable state law, as may be amended from time to time. (15) Height Standards:
(A) For one-story detached ADUs, the maximum height shall be 16 feet. (B) Transit-Oriented Height: Where the detached ADUs is located within onehalf mile walking distance of a major transit stop or a high-quality transit corridor, as defined in Public Resources Code § 21155, or is adjacent to or abuts a multi-story multifamily dwelling, then the maximum height limit for a one-story detached ADUs is 18 feet.
(C) The maximum height for a two-story detached ADU over a garage shall be 25 feet, provided that:
(i) The structure maintains a minimum setback of ten (10’) from the side and rear property lines(s) of any abutting single-family use property. The side and rear

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setbacks may be reduced to the setbacks prescribed for detached accessory structures or garages in the underlying zone, or if the setback of an existing garage is legal nonconforming; and
(ii) The structure complies with the Privacy and Design Compliance requirements of Section 90-315(g).
(D) Notwithstanding subsections (A) and (B) above, an attached ADU may be constructed to the maximum height allowed for a primary dwelling in the underlying base zone, provided that the ADU complies with all objective front, side, and rear yard setbacks applicable to the primary dwelling in the base zone as well as the Privacy and Design Compliance requirements of Section 90-315(g).
(E) An additional two feet in height shall be allowed to accommodate a roof pitch on an ADU that is aligned with the roof pitch of the primary dwelling unit. (F) When an existing accessory structure is converted to a detached ADU, the maximum height may equal the height of the existing accessory structure. (G) An attached ADU may not exceed 25 feet in height and two stories, or the maximum height allowed in the base zone for the primary dwelling, whichever is lower. (16) Development Standards:

ADUs shall comply with all applicable base zone district objective development standards (e.g., lot coverage, floor area ratio, open space, front setbacks, minimum lot size) unless the application of those standards would physically preclude

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the construction of at least an 800-square-foot ADU with 4-foot side and rear setbacks.

The City may require that the property be used for rentals of terms 30 days or longer. (17) Utilities and Safety:

All ADUs shall be connected to public utilities or their equivalent, including water, electric and sewer, unless the ADU was constructed with a new singlefamily dwelling. The City may require separate address identification for an ADU to facilitate emergency responses. Fire sprinklers shall only be required in an ADU or JADU if sprinklers are required in the primary residence, consistent with applicable state law.
(d) Special criteria for junior accessory dwelling units. JADUs shall be subject to the following requirements, in addition to or, where conflicting, in lieu of the general requirements in subsection (c) of this section. To the extent that any of the requirements of the subsection (d) conflict with the requirements of subsection (c), the provisions of this subsection (d) shall control.
(1) If necessary, an expansion of no more than 150 square feet to the physical dimensions of the existing structure may be added to accommodate ingress and egress to the JADU.
(2) The JADU must include a cooking facility with appliances and a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory unit.
(3) The JADU may include separate bathroom facilities or may share sanitation facilities with the existing structure.

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(4) No more than one JADU is permitted on a single lot. (5) The owner of the single-family residential home in which the JADU is located must reside in either the remaining portion of the home or in the newly created JADU unit, unless the JADU includes separate sanitation facilities, in which case owner-occupancy is not required. Owner-occupancy is also not required if the owner is another governmental agency, land trust, or housing organization, consistent with applicable state law, as may be amended from time to time. (6) A JADU shall not be metered separately from the principal dwelling unit for gas, electricity, and water/sewer services, and shall not be considered a separate residential use for purposes of connection fees or capacity charges, or for the purposes of fire or life protection ordinances or regulations.
(7) Size. A JADU shall be no more than 500 square feet of interior livable space and contained entirely within a single-family residence. The minimum interior livable space of a JADU unit shall be 150 square feet, consistent with applicable state law.
(e) Conflicting Standards and Compliance with State Law. To the extent that any provision of this section conflicts with or is less permissive than state law governing ADUs and JADUs, state law shall prevail. This ordinance is intended to comply with all applicable state laws governing accessory dwelling units and junior accessory dwelling units, as may be amended from time to time, and shall be interpreted consistent with such laws. Where this section is silent, state law standards apply.

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SECTION 3. CEQA ENVIRONMENTAL FINDINGS. The City Council has analyzed the proposed project and has determined that it is exempt from the California Environmental Quality Act (CEQA) Under California Public Resources Code section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the Government Code, which is California’s Accessory Dwelling Unit (ADU) law and which also regulates Junior Accessory Dwelling Units (JADUs), as defined by section 66310 to 66342. The proposed ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA), pursuant to Section §15061(b)(3), which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 4. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such determination shall not affect the validity of the remaining portions of this Ordinance.

The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect thirty (30) days from its passage by the City Council of the City of Hemet.

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SECTION 6. PUBLICATION. The City Clerk shall publish this Ordinance in the manner required by law.

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INTRODUCED at the regular meeting of Hemet City Council on the 24th day of February 2026.

APPROVED AND ADOPTED this 10th day of March, 2026.
____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Jane Halstead, Interim City Clerk

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State of California )
County of Riverside )
City of Hemet )
I, Jane Halstead, Interim City Clerk of the City of Hemet, do hereby certify that the foregoing Ordinance was adopted by the Hemet City Council on the 10th day of March, 2026, and was passed by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:
_____________________________
Jane Halstead, Interim City Clerk

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City of Hemet
City Council Meeting

STAFF REPORT
Meeting: City Council Meeting - Mar 10 2026
Department: Community Development
Submitted by: Mark Prestwich, City Manager
Nathan Morin, Assistant Planner;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:

Second Reading and Adoption of an Ordinance 2073 of the City Council of the City of Hemet, California, Amending Sections of the Hemet Municipal Code, Chapter 90 Article XLIII Art in Development, Sections 90-1501 through 90-1513 and Article XLIV. City-Initiated Art in Public Places, Section 90-1531 through 90-1536 for Adoption of an Art in Public Places Ordinance and Program.

Environmental: The City has analyzed this proposed project and has determined that it is exempt from the California Environmental Quality Act (CEQA) under section 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment.

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

1. Find that the Project is Categorically Exempt from CEQA in accordance with CEQA Guidelines Section 15061(b)(3), the “common sense exemption,” as it can be seen with certainty that there is no possibility that the proposed Ordinance may have a significant effect on the environment.

2. Waive further reading and adopt by title only an Ordinance 2073 of the City Council of the City of Hemet, California, Amending Sections of the Hemet Municipal Code, Chapter 90 Article XLIII Art in Development, Sections 90-1501 through 90-1513 and Article XLIV. City-Initiated Art in Public Places, Section 90-1531 through 90-1536 for Adoption of an Art in Public Places Ordinance and Program.

3. Direct Staff to file a Notice of Exemption with the State Clearinghouse and the Riverside County Clerk.

BACKGROUND:

The purpose of this ordinance is to adopt an Art in Public Places program and ordinance (henceforth "the Program"). The Program will establish guidelines, procedures, and standards for integrating public art into new private and public construction projects in the City of Hemet. The Program is intended to create an inclusive and culturally rich community that reflects Hemet's history, current

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experiences, and its future aspirations. The Program will help foster community identity through placemaking, creativity, and the human experience.

Adoption of a formal public art program will enable art installations and cultural events to be enjoyed and experienced in both indoor (e.g., Hemet Public Library) and outdoor settings, positively impacting property values, stimulating the local economy, and helping to sustain city vitality. The Program is intended to highlight community diversity, history, and future goals, supporting economic development through a vibrant cultural presence.

On January 20, 2026, the Planning Commission was presented with a work study on the Program and had the opportunity to provide comments, suggestions, and ideas for the Arts in Public Places Program and proposed Ordinance. After the presentation, the Planning Commission provided input on the Program, offering comment and suggestions for revisions. Adjustments to the Program have been made based on those suggestions by the Planning Commission.

On February 3, 2026, following a state-mandated 20-day advance public hearing notice, the Planning Commission voted unanimously (4-0) to adopt a Resolution recommending approval of the Zoning Ordinance Amendment to the City Council, subject to findings outlined in Hemet Municipal Code Section 90-41.5(a) as adopted by PC Resolution No. 2026-003. Meeting Minutes for the February 3, 2026, Planning Commission discussion for this item can be found as Item No. 7 in Attachment No. 3 of this staff report.

On February 24, 2026, following a 10-day advance public hearing notice, a first reading of the Ordinance Bill No. 2073 was considered by the City Council. At the meeting, the Council made a motion to approve the Ordinance with a 4-1 vote that had motion by Council Member Lodge, and a second by Council Member Peterson. Council gave recommendation for Staff to fix typos in the Ordinance.

PREVIOUS COUNCIL ACTION:

MOTION BY COUNCIL MEMBER LODGE, SECOND BY COUNCIL MEMBER PETERSON, CARRIED 4-1, (MAYOR PRO TEM MALES VOTED NO) to find the Ordinance Categorically Exempt per CEQA Guidelines Section 15061(b)(3) the "common sense exemption", receive a report regarding the proposed Zoning Ordinance Amendment No. 2026-001, introduce by first reading an Ordinance of the City of Hemet, California, Amending Sections of Chapter 90 (Zoning) of the Municipal Code in adding Article XLIII. Art in Development, Sections 90-1501 through 90-1513 and Article XLIV. City-Initiated Art in Public Places, Section 90-1531 through 90-1536 inclusive for Adoption of an Art in Public Places Ordinance and Program, to discuss any changes or recommendations at second reading, and allow Staff to use its authority to resolve typos.

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.

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

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

GOAL 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 REVIEWED BY LEGAL:
☐ Staff report ☐ Resolution
☒ Ordinance ☐ Agreement
ATTACHMENT(S):

Attachment 1 Exhibit A CC Ordinance for ZOA26-001 (Second Reading) Attachment 2 Public Art Program Guidelines and Overview (CC Second Reading)

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CITY OF HEMET ORDINANCE NO. 2026-2073 1
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CITY OF HEMET

HEMET, CALIFORNIA
ORDINANCE NO. 2026-2073

AN ORDINANCE OF THE CITY OF HEMET AMENDING PORTION OF
THE HEMET MUNICIPAL CODE, CHAPTER 90, ADDING ARTICLE XLIII.

ART IN DEVELOPMENT, SECTIONS 90-1501 THROUGH 90-1513 AND ARTICLE XLIV. CITY-INITIATED ART IN PUBLIC PLACES, SECTION 90-1531 THROUGH 90-1536 INCLUSIVE FOR ADOPTION OF AN ART IN PUBLIC PLACES ORDINANCE AND PROGRAM.

WHEREAS, pursuant to Government Code sections 65854 and 65855, the Planning Commission has the authority to review and make recommendations to the City Council regarding amendments to the City’s zoning ordinance; and WHEREAS, the City of Hemet desires to establish a comprehensive Art in Public Places program to integrate high-quality, permanent public art into the City's built environment, mitigate the impact of new development on the City's cultural and aesthetic infrastructure, and foster a sense of place that enhances the pedestrian experience and community identity; and
WHEREAS, the proposed ordinance establishes standards for the integration of public art through private development projects and City-initiated public art projects, including requirements for on-site artwork installation or payment of in-lieu fees to support public art throughout the City; and
WHEREAS, on January 14, 2026, the City gave a 20-day public notice by publishing notice in the Press Enterprise newspaper of the holding of a public hearing to consider Zoning Ordinance Amendment 26-001, to adopt an ordinance establishing an Art in Public Places program; and
WHEREAS, on January 20, 2026, the Planning Commission held a work study session at which Commissioners provided substantive input, comments, and recommendations regarding the proposed Art in Public Places ordinance, including but not limited to: exempting single-lot single-family residential projects not constructed by large-scale developers; clarifying that developers (not home buyers) shall pay in-lieu fees; prioritizing local community organizations for mural installations and artist selection; ensuring artwork is appropriate to location and incorporates safety standards; and encouraging small-scale projects such as painting utility boxes and fire hydrants; and

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WHEREAS, on February 3, 2026, the Planning Commission held the noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, the proposed amendment to the City’s zoning ordinance and which the Planning Commission considered the proposed Art in Public Places zoning ordinance and voted to recommend that the City Council approve the Ordinance with recommendations to adjust the proposed in-lieu fee structure at 0.5% for residential and non-residential eligible projects; and incorporate a Cultural Heritage and Aspirations theme criteria; and WHEREAS, the proposed Ordinance was reviewed and revised per recommendations made by the Planning Commission on February 3, 2026; and WHEREAS, the City has analyzed this proposed project and has determined that it is exempt from the California Environmental Quality Act (“CEQA”) under California Public Resources Code section 21080.17 and CEQA Guidelines Section §15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect of the environment; and
WHEREAS, attached as Exhibit “A” is the proposed Ordinance revised by the City Council on February 24, 2026; and
WHEREAS, on February 24, 2026, the City Council conducted a first reading of the Ordinance, incorporating the Planning Commission’s findings, and the entirety of the public record regarding Zoning Ordinance Amendment No. 26-001 at a duly noticed public hearing, at which time interested persons had an opportunity to provide testimony on this matter.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET DOES HEREBY ORDAINS AS FOLLOWS:

SECTION 1. The above recitals are all true and correct and are incorporated herein by reference.

SECTION 2: AMENDMENT TO HEMET MUNICIPAL CODE CHAPTER 90,

ARTICLE XLIII (ART IN DEVELOPMENT), ADDING PROVISIONS FOR ART IN PUBLIC SPACES as follows:
90-1501 Title; Authority; Purpose; Legislative Findings.

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A. Title. This Article shall be known and may be cited as the “Art in Development” Ordinance.

B. Authority. This Article is adopted pursuant to the City’s independent police power under Article XI, Section 7 of the California Constitution to regulate land use, urban design, and the visual environment in furtherance of the public health, safety, and general welfare of the community.

C. Purpose. The purpose of this Article is to establish a formal regulatory framework for the integration of high-quality, permanent, content-neutral public art into the City’s built environment. This Article aims to:

1. Mitigate the impact of new development on the City's cultural and aesthetic infrastructure.

2. Foster a sense of place and enhance the pedestrian experience through superior urban design.

3. Ensure that when an applicant elects to pay a fee in lieu of on-site installation, such charges are adopted, collected, and expended in strict compliance with state law and constitutional standards.

4. Maintain the City’s cultural vitality by ensuring that public art is created by qualified professionals and preserved through enforceable long-term maintenance standards.

D. Legislative Findings. The City Council hereby finds and declares as follows:

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1. Public Interest and Cultural Vitality. Public art is not merely aesthetic; it is a vital component of the City’s infrastructure that promotes economic development, attracts tourism, and enhances the mental and physical wellbeing of residents by creating a high-quality "sense of place" that reflects the unique history and character of the San Jacinto Valley.

2. Impact of Development. New residential and non-residential development projects increase the density of residents, employees, and visitors within the City. This growth creates a direct and measurable demand for public-realm cultural amenities and enhanced urban design to offset the increased burden on the City's visual environment and public spaces.

The City Council finds that there is a clear essential nexus between the impacts of new development and the need for public art, and that the

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required contribution is roughly proportional to the scale, cost, and impact of the project.

4. Prop 26 and Tax Status. Any in-lieu fee collected pursuant to this Article is a charge imposed for a specific benefit conferred or privilege granted, or a charge imposed as a condition of property development, and is therefore not a tax under Article XIII C, Section 1(e)(7) of the California Constitution.

5. Mitigation of Aesthetic Blight. Failure to integrate high-quality art into significant development projects contributes to architectural monotony and aesthetic blight, which diminishes property values and the overall safety and welfare of the community.
90-1502 Definitions.

For the purposes of this Chapter, the following words, terms, and phrases shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning:

A. Administrator means the Community Development Director of the City, or such other City official as may be designated by the City Manager to oversee the daily operations of the Art in Public Places Program.

B. Art in Public Places Program (AIPPP) or "Program" means the comprehensive regulatory and administrative framework established by this Chapter to facilitate the selection, acquisition, placement, and maintenance of Artwork within the City.

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C. Art in Public Places (AIPP) Fund means a segregated, interest-bearing special fund established by the City for the deposit and expenditure of Public Art Contributions and In-Lieu Fees. Funds shall be used exclusively for the purposes authorized in Section 90-1507.

D. Building Valuation means the total value of all construction work for which a building permit is issued, as determined by the Building Official using the most recent International Code Council (ICC) Building Valuation Data or the City’s adopted valuation tables, whichever is higher. Building Valuation shall include all structural, mechanical, electrical, and plumbing work, and permanent on-site improvements. Specifically excluded from this definition are land acquisition costs and off-site improvement costs (e.g., public street segments or utility trunk lines). The Building Official’s determination of valuation shall be final for the purposes of calculating the Public Art Contribution.

E. Capital Improvement Projects (CIP) means those public construction projects identified and funded within the City’s multi-year Capital Improvement Program budget, including but not limited to the construction of new public buildings, parks, or major infrastructure.

F. Certificate of Occupancy (C of O) means a temporary or permanent certificate issued by the Building Official authorizing the initial occupancy of a building or structure.

G. Developer means the person, corporation, partnership, or legal entity financially and legally responsible for the planning, design, and construction of a Development Project.

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The term "Developer" may refer to the applicant for a building permit, which may be distinct from the legal owner of the real property upon which the project is situated. For purposes of this Chapter, the Developer (not the ultimate purchaser or home buyer) shall be responsible for payment of all Public Art Contributions and In-Lieu Fees.

H. Development means the following activities, provided they meet the thresholds set forth in Section 90-1503: (1) The construction of new buildings or structures; (2) Additions to existing buildings that create net new floor area; or (3) Substantial interior or exterior remodels, rehabilitations, or improvements.

I. Large-Scale Residential Developer means any person, corporation, partnership, or legal entity that constructs two (2) or more single-family dwellings concurrently or sequentially within the same tract, subdivision, or development project, or any developer that constructs residential dwelling units on a commercial or production basis. This definition includes, but is not limited to, regional and national homebuilding companies.

J. Public Art / Artwork means a permanent, site-specific, and publicly viewable visual work of art created by a Qualified Artist.

1. Eligible Media: May include, but is not limited to, sculpture, murals, mosaics, earthworks, fiber works, media/light-based installations, and artist-designed functional amenities (e.g., paving patterns, benches, or water features) that possess high aesthetic quality.

2. Ineligible Items: The following are specifically excluded:

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a. Mass-produced "off-the-shelf" objects or reproductions of original works; b. Decorative, ornamental, or functional elements designed by the project architect or landscape architect rather than a Qualified Artist; c. Routine landscaping or standard architectural features; and d. Commercial signage, directional graphics, or "supergraphics" that serve primarily as branding.

K. Public Art Contribution means the mandatory dollar amount a Developer must expend on on-site Artwork or pay to the City as an In-Lieu Fee, calculated as a percentage of the Building Valuation pursuant to Section 90-1503.

L. Public Construction Project means any City-funded construction, renovation, or improvement project, including those involving public buildings or facilities, specifically excluding those projects already categorized under the formal Capital Improvement Program.

M. Public Place means an exterior area on public or private property that is clearly visible to the general public from adjacent public property, sidewalks, or public rightsof-way.

N. Qualified Artist means a practitioner in the visual arts who: (1) Is recognized by critics and peers as a professional artist of serious intent and ability, as evidenced by a consistent history of professional exhibitions, public commissions, or gallery representation; and (2) Has demonstrated experience in the design, fabrication, and

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installation of permanent public art of a scale and complexity comparable to the proposed project.

This definition specifically excludes the Developer, the Developer’s employees, or the project’s lead architect or landscape architect.
90-1503 Applicability; Thresholds; Exemptions.

A. Applicability. Except as otherwise provided in Subsection C (Exemptions), the requirements of this Article shall apply Citywide to the following:

1. Private Development: All new construction, additions, and substantial exterior rehabilitations for residential, commercial, industrial, and mixed-use projects.

2. Public Development: All City-initiated Capital Improvement Projects (CIP) and Public Construction Projects, as defined in Section 90-1502.

B. Thresholds and Contribution Rates. The Public Art Contribution shall be calculated at the time of Building Permit issuance based on the Building Valuation as follows:

1. New Residential Development (Tracts and Multi-Family): For all new residential developments, including but not limited to apartments, condominiums, and two or more single-family dwellings constructed concurrently or sequentially within the same tract or by the same Developer the contribution shall be 0.50% of the total Building Valuation.

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2. Non-Residential and Public Development: For all commercial, industrial, office, mixed-use, and public construction projects, the contribution shall be 0.50% of the total Building Valuation.

C. Exemptions. The requirements of this Article shall not apply to the following:

1. Single-Lot Single-Family Construction (Individual Builders): The construction of a single-family dwelling on an individual lot where the applicant is not a Large-Scale Residential Developer. This exemption is intended to exclude custom homes and individual residential construction projects built by or for individual homeowners, while retaining the requirements for tract developments and projects undertaken by production homebuilders.

2. Individual Single-Family Residential (Rehabilitation or Expansion): For the rehabilitation, renovation, or expansion of an existing single-family residence.

3. Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs).

4. Minor Accessory Structures: Construction of detached accessory structures with a floor area of less than 120 square feet (e.g., storage sheds, gazebos).

5. Interior Improvements: Tenant improvements or remodels that are strictly limited to the interior of a structure and do not involve any exterior architectural changes or modifications to the building envelope.

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6. Maintenance and Repair: Ordinary maintenance, repair, or "like-for-like" replacement of existing building components that do not increase floor area or change the exterior design.

7. Emergency Work: Immediate repair or reconstruction of structures damaged by fire, flood, earthquake, or other natural disasters, provided such work is necessary to protect public health and safety and is limited to restoring the structure to its pre-disaster condition.

8. Affordable Housing: Projects where 100% of the residential units are deedrestricted for "Lower Income" households, as defined by the California Department of Housing and Community Development (HCD), for a period of no less than 55 years.

9. Legal Preemption: Any project where the imposition of the Public Art Contribution is expressly preempted by state or federal law.

D. Enforcement of Compliance. Compliance with this Section is a mandatory condition of project approval.

1. Building Permit Issuance: No Building Permit shall be issued for any project subject to this Article until the Public Art Contribution has been calculated and the Developer has either paid the In-Lieu Fee or provided the security required for an On-Site Artwork path under Section 90-1506.

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2. Certificate of Occupancy: No temporary or permanent Certificate of Occupancy (C of O) shall be issued, and no final building inspection shall be approved, until the Administrator certifies in writing that all requirements of this Article have been fully satisfied.

3. Continuing Violation: Failure to maintain On-Site Artwork as required by the recordable covenant (see Section 90-1508) shall constitute a violation of this Code, subject to the remedies set forth in Section 90-1512. 90-1504 Compliance Paths and Procedural Requirements.

To satisfy the Public Art Contribution requirement, a Developer must elect one of the following three compliance paths. This election must be made in writing at the time of the first discretionary permit application or, if no discretionary permit is required, prior to the submittal of building plans.

A. On-Site Artwork (Primary Design Standard). The Developer may elect to design, fabricate, and install qualifying Artwork on the project site or within the approved adjacent public right-of-way.

Procedural Steps:

Step 1: Concept Review. Prior to the submittal of building permit applications, the Developer shall submit a "Preliminary Art Plan" to the Administrator, detailing the proposed location, artist qualifications, and conceptual design.

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Step 2: Final Art Plan Approval. Before a Building Permit is issued, the Developer must obtain approval of a "Final Art Plan," which shall include detailed structural engineering (stamped by a California-licensed engineer), a finalized budget, and a maintenance schedule.

Step 3: Installation and Inspection. The Artwork must be installed and inspected for compliance with the Final Art Plan prior to the request for a final building inspection.

Step 4: Acceptance. Upon verified installation and recordation of the required Maintenance Covenant (Section 90-1508), the Administrator shall issue a "Certificate of Compliance."
Financial Security: If a Developer desires a Building Permit before the Final Art Plan is approved, they must pay the full In-Lieu Fee as security. This fee shall be held by the City and refunded, without interest, only after the on-site Artwork is accepted and the Certificate of Occupancy is issued.

B. Donation of Artwork to the City Collection. In lieu of on-site installation, a Developer may propose to purchase or commission an original work of art to be donated to the City for placement on public property.

Selection Criteria: The proposed donation must be reviewed by the Committee for:

1. Quality and Provenance: The work must be an original work by a Qualified Artist.

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2. Maintenance Burden: The City shall not accept any donation that imposes an unreasonable or unfunded long-term conservation cost.

3. Siting: The City retains absolute discretion over the final placement of donated works.

4. Transfer of Title: Title to the Artwork must be transferred to the City via a formal Bill of Sale and VARA Waiver, free and clear of all liens and encumbrances, prior to the issuance of a Certificate of Occupancy.

C. In-Lieu Fee Payment. The Developer may elect to satisfy the Public Art Contribution by paying a fee into the AIPP Fund.

1. Calculation and Timing: The fee is calculated based on the Building Valuation at the time of permit issuance. Payment must be made in full as a condition of Building Permit issuance.

2. Use of Pooled Funds: Fees paid into the AIPP Fund may be pooled with other Public Art Contributions to fund high-impact, publicly sited projects, cultural facilities, or the City's own "Signature Projects" (as defined inSection 90- 1501) regardless of their proximity to the Developer's project site. Priority consideration may be given to mural projects along Florida Avenue and in the Downtown area, and to projects that involve local community organizations.

3. Administration Fee: A portion of the In-Lieu fee, as set by City Council resolution, may be allocated to cover the reasonable costs of administering the Art in Public Places Program.

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90-1505 In-Lieu Fee Adoption.

The specific dollar amounts, percentage rates, and administrative fee schedules necessary to implement the requirements of this Article shall be established by City Council Resolution. The City Council may, from time to time, amend such resolution to ensure that the Public Art Contribution remains commensurate with the cost of providing cultural infrastructure and the impacts of development. 90-1506 Timing; Collection; Deferral; and Security.

A. Calculation and Collection of Public Art Contribution.

1. Timing of Calculation: The Public Art Contribution shall be calculated by the Building Official at the time of building permit application based on the Building Valuation defined in Section 90-1502.

2. Timing of Payment: Except as provided in Subsection C (Deferral), the full Public Art Contribution (In-Lieu Fee) shall be paid to the City prior to the issuance of any building permit for the Development Project.

3. Condition Precedent: Payment of the fee, or the provision of approved security under the On-Site path, is a condition precedent to the issuance of a building permit.

B. On-Site Compliance and Refund Mechanism. If a Developer elects the On-Site Artwork path (Section 90-1504.A) but chooses to pay the In-Lieu Fee to allow the building permit to be issued immediately, the following refund procedure shall apply:

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1. Security Deposit Treatment: The paid In-Lieu Fee shall be held by the City as a cash security deposit to ensure the completion and installation of the Artwork.

2. Refund Eligibility: The Developer shall be eligible for a full refund of the security deposit, without interest, only after:
a. The Administrator has issued a formal "Acceptance of Artwork" certificate; b. The Maintenance Covenant and Public Access Easement have been recorded; and
c. A permanent Certificate of Occupancy has been issued.

3. Forfeiture: If the Artwork is not installed and accepted within [180] days of the issuance of the Certificate of Occupancy, the security deposit shall be automatically transferred into the AIPP Fund, and the project shall be deemed to have complied via the In-Lieu Fee path.

C. Deferral of Installation and Financial Security. In exceptional circumstances, the Administrator may allow the issuance of a Certificate of Occupancy prior to the final installation of On-Site Artwork, provided the Developer provides financial security to the City.

1. Form of Security: Security shall be in the form of a performance bond, an irrevocable letter of credit, or a cash deposit, in a form approved by the City Attorney.

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2. Amount of Security: The security shall be in an amount equal to one hundred fifty percent (150%) of the Public Art Contribution. This increased amount is intended to cover inflationary costs of fabrication and City administrative overhead should the City be forced to complete the installation.

3. Completion Deadline: The Artwork must be installed and accepted no later than 120 days following the issuance of the Certificate of Occupancy. Failure to meet this deadline shall authorize the City to draw upon the security to fund a comparable public art project elsewhere in the City.

D. Enforcement Holds and Remedies. The City shall utilize the following "Stop Points" to ensure strict compliance:

1. Inspection Holds: The Building Official shall withhold "Final Inspection" approval for any project that has not satisfied the requirements of this Chapter.

2. Certificate of Occupancy Holds: No temporary or permanent Certificate of Occupancy shall be issued for any portion of a Development Project until the Administrator certifies that the Public Art Contribution has been satisfied.

3. Permit Revocation: Non-compliance with the terms of an approved Art Plan or a recorded Maintenance Covenant shall be grounds for the revocation of any related land-use permits or business licenses.
90-1507 Use of Funds (AIPP Fund).

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A. Establishment of Fund. All In-Lieu Fees and Public Art Contributions collected pursuant to this Chapter shall be deposited into the Art in Public Places (AIPP) Fund.

This fund shall be a segregated, interest-bearing account, and all interest earned shall accrue to the benefit of the Program.

B. Eligible Expenditures. Monies in the AIPP Fund shall be expended solely for the following "Capital-Eligible" and "Programming" purposes:

1. Public Art Projects: The design, acquisition, fabrication, and installation of Artwork on City-owned property or within the public right-of-way, including murals, sculptures, and small scale community art projects such as painted utility boxes, fire hydrants, and similar public amenities. Priority consideration may be given to mural projects along Florida Avenue and in the Downtown area.

2. Site Preparation: Capital-eligible site work directly required for the installation of Artwork, including but not limited to specialized lighting, structural pads, landscaping integral to the art, and seismic anchoring.

3. Conservation and Maintenance: The repair, cleaning, and professional conservation of Artworks within the City’s permanent collection to ensure their long-term structural and aesthetic integrity, including anti-vandalism treatments and protective coatings.

4. Cultural Programming & Civic Events: A portion of the annual AIPP Fund revenue, not to exceed 15%, may be used for City-sponsored temporary art

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installations, "Civic Arts Events" (e.g., Chalk Art or Sand Art Festivals), and art competitions designed to foster community engagement and public participation in the arts.

5. Administrative Costs: A portion of the AIPP Fund, not to exceed [10%], may be used to cover the City’s reasonable costs in administering the Program, including staff time, consultant fees for technical reviews, and the development of administrative guidelines.

6. Community Engagement: Expenses related to public outreach, calls for artists, and community unveiling events specifically related to new installations funded by the Program. Priority consideration may be given to providing local community organizations with opportunities for artist selection and mural installation.

C. Pooling and Geographic Flexibility.

1. Pooling of Funds: The City may pool Public Art Contributions from multiple Development Projects to fund larger, higher impact "Signature Projects" or to acquire significant works for the City’s permanent collection.

2. Off-Site Expenditures: In accordance with the legislative findings in Section 90-1501, the City is not required to spend an In-Lieu Fee within the immediate vicinity of the project that generated it. Funds may be spent at any location within the City where the Administrator determines that the placement of public art will provide the greatest community-wide cultural benefit.

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D. Prohibitions.

1. Self-Funding Prohibited: No portion of a Developer's In-Lieu Fee may be used to purchase or fund the specific Artwork required for that Developer’s own project.

2. Non-Art Infrastructure: Funds shall not be used for general City infrastructure, routine park maintenance, or architectural features that do not meet the definition of "Artwork" under Section 90-1502.

3. Operation and Salaries: Except for the designated administrative percentage, funds shall not be used for general City operating expenses or permanent City staff salaries.
90-1508 Artwork Eligibility; Location; Ownership; and Maintenance.

A. Eligible Artwork Components. To qualify as Artwork under this Chapter, the proposed work must be a permanent, original work of art created by a Qualified Artist that possesses a high level of artistic quality and craftsmanship. Eligible components include, but are not limited to:

1. Sculpture: Three-dimensional works in any durable material or combination of materials (e.g., stone, metal, glass, or plastic).

2. Murals: Two-dimensional works applied directly to or integrated into an exterior wall surface, including mosaics and fresco. Priority consideration may be given to mural projects along Florida Avenue and in the Downtown

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area, and to murals created by or in partnership with local community organizations.

3. Integrated Amenities: Artist-designed elements that serve a functional purpose but are unique and site-specific, such as streetscape furniture, paving patterns, artist-designed lighting, wayfinding, water features, and landscape art.

4. Media and Light Works: Installations utilizing light, sound, or digital media, provided they are designed for permanent exterior installation and are not primarily commercial in nature. Such installations should be located appropriately based on the surrounding context, with careful consideration given to placement in high-traffic areas versus parks or lower-traffic locations.

5. Small-Scale Community Projects. Painted utility boxes, fire hydrants, traffic signal cabinets, and similar public infrastructure elements that are transformed into works of art by Qualified Artists or through community art programs.

B. Ineligible Components and "Loophole" Exclusions. The following items do not satisfy the Public Art Contribution requirement:

1. Mass-Produced Objects: "Off-the-shelf" items, reproductions of original works, or garden-variety ornaments not created by a Qualified Artist specifically for the project.

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2. Standard Architectural/Landscape Features: Features that are part of the project’s routine architectural design or required landscaping (e.g., standard decorative cornices, pavers, or trees), unless they are demonstrably the work of a Qualified Artist and exceed standard design requirements.

3. Commercial Branding: Any element that includes logos, trademarks, branding, or "supergraphics" used for commercial advertising or directional purposes.

4. Incompatible Materials: Works created with materials prone to rapid deterioration or that require an unreasonable level of maintenance (e.g., nongalvanized metals in coastal environments or non-UV-rated plastics).

C. Location and Siting Standards.

1. Visibility: Artwork must be located in a Public Place (as defined in Section 90- 1502). It must be clearly visible and, where appropriate, accessible to the general public from the adjacent public right-of-way or public property.

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d. Context-Appropriate Placement. The location of artwork shall be appropriate to the type of installation and surrounding context. For example:

1. Installations utilizing hologram art, digital media, or other visually dynamic or potentially distracting elements should be located away from high-traffic streets and arterials, and instead sited in parks, plazas, or lower-traffic pedestrian areas where they can be safely appreciated;

2. Large-scale or monumental works should be located where they can be viewed from appropriate distances without creating visual clutter or traffic hazards.

3. Materials Appropriate to Location. All artwork shall be constructed of materials appropriate to the specific site conditions and environmental context, including but not limited to:
a. In areas designated as High or Very High Fire Severity Zones, artwork shall be constructed of non-flammable or fire-resistant materials; b. In areas subject to high winds, seismic activity, or extreme weather, artwork shall be engineered and anchored to withstand such conditions; c. All materials shall be UV-resistant and suitable for prolonged outdoor exposure in Southern California's climate.

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4. For properties located within the Scenic Highway Overlay District or subject to Scenic Highway Corridor setback requirements, public art installations shall be incorporated into the overall site design in a manner that enhances the scenic character of the corridor. Such installations shall be reviewed for compatibility with adopted scenic corridor design guidelines and shall not detract from natural viewsheds or create visual clutter.

5. Lighting: All Artwork must be provided with dedicated, artist-integrated lighting to ensure visibility during evening hours, unless the Administrator determines lighting is inappropriate for the specific medium.

D. Ownership, Easements, and Maintenance.

1. Ownership and Transfer: Artwork installed on private property shall be the property of the Developer or subsequent Property Owner. Ownership and the obligation to maintain the Artwork shall automatically transfer with the title to the real property.

2. Recorded Maintenance Covenant and Easement: Prior to the issuance of a Certificate of Occupancy, the Property Owner shall execute and record a Maintenance Covenant and Public Art Access Easement, in a form approved by the City Attorney. This document shall:
a. Grant the City a perpetual easement for public viewing of the Artwork; b. Obligate the Property Owner to clean, repair, and maintain the Artwork in its original approved condition; and

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c. Grant the City the right (but not the obligation) to enter the property to perform necessary repairs if the Owner fails to do so, with the costs thereof becoming a lien upon the property.

3. VARA and CAPA Compliance: The Property Owner shall be responsible for ensuring that all contracts with Qualified Artists include appropriate waivers of "moral rights" under the Visual Artists Rights Act (VARA) and the California Art Preservation Act (CAPA) to allow for the City-sanctioned relocation or removal of the work if it becomes a threat to public safety.

E. Removal or Alteration.

1. City Approval Required: Once accepted and installed, no Artwork may be removed, relocated, or materially altered without the prior written approval of the City Council.

2. Remedy for Unauthorized Removal: If an Artwork is removed or destroyed without City authorization, the Property Owner shall be required to:
a. Replace the Artwork with a piece of equal or greater valuation, as approved by the Committee; or
b. Pay an amount to the AIPP Fund equal to the original Public Art Contribution plus an inflationary adjustment based on the CPI.

3. Decennial Review and Deaccessioning: To ensure that Artwork remains compatible with the evolving site context, architectural standards, and the

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City’s long-term aesthetic goals, the Property Owner may request a formal review of the Artwork’s status.
a. Timing of Request. No such request shall be accepted or processed until the Property Owner has paid an application fee, if any, set by Council resolution and at least ten (10) years have elapsed from the date of the issuance of the original Certificate of Compliance for the Artwork.

Following this initial ten-year period, the Property Owner may submit a request for review at any time, provided that no more than one (1) such request may be filed for the same Artwork within any twelve (12) month period.
b. Standards for Removal or Relocation. The City Council may authorize the removal or relocation of the Artwork if the Property Owner demonstrates that: (1) the Artwork has reached the end of its functional life or requires significant repairs; (2) the redevelopment or substantial remodeling of the project site renders the current location of the Artwork physically or aesthetically untenable; or (3) the City Council may, in the exercise of its legislative and aesthetic discretion, authorize the removal or relocation of the Artwork if it finds that the work is no longer compatible with the City’s desired community character, the evolving architectural identity of the project site, or the visual environment of the surrounding neighborhood.

Such a finding may be based on the Council’s subjective evaluation of the

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Artwork’s ongoing contribution to the public realm and its harmony with the current aesthetic goals of the community, regardless of whether the Artwork violates any specific or codified design standard. 90-1509 Submittal; Review; and Approval Process.

A. Public Art Plan Requirements. For all projects electing the On-Site compliance path, the Developer must submit a comprehensive Public Art Plan to the Administrator. The Plan shall be submitted in two phases (Preliminary and Final) to ensure coordination with the project's overall design. The Public Art Plan shall include, at a minimum:

1. Artist Qualifications: A resume and portfolio of the Qualified Artist, demonstrating experience with projects of similar scale and complexity.

2. Conceptual Design: Schematic drawings, 3D renderings, or models showing the scale, color, and materials of the proposed Artwork. Where appropriate, the design should reflect or complement the history, heritage, and cultural character of the San Jacinto Valley.

3. Site Plan: A detailed site plan showing the exact location of the Artwork, including visibility from the public right-of-way, proposed lighting, and landscaping. The site plan shall demonstrate compliance with siting standards in Section 90-1508.C, including context-appropriate placement and materials appropriate to location.

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4. Budget Verification: A certified budget prepared by the Artist or Developer, including artist fees, fabrication costs, transportation, installation, and specialized insurance.

5. Technical Specifications: A description of the materials used, focusing on durability, UV resistance, and anti-graffiti coatings.

6. Structural Integrity: For sculptures or large-scale works, preliminary structural calculations or a letter from a California-licensed structural engineer confirming the feasibility of the installation.

7. Maintenance Plan: A detailed schedule for routine cleaning and professional conservation, including anti-vandalism measures.

B. Review and Approval Authority.

1. Administrative Review: The Administrator shall review the Public Art Plan for technical compliance with this Chapter, including safety, siting, materials appropriate to location, and artist qualifications.

2. Committee Review (Planning Commission): The Planning Commission, acting as the Art in Public Places Committee, shall review the proposed Public Art Plan for aesthetic compatibility with the surrounding environment and consistency with the City's design goals and General Plan, and appropriateness to the cultural character of the community. The Committee’s review shall be advisory to the City Council.

3. Final Approval:

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a. Minor On-Site Projects: For projects where the Public Art Contribution is less than $50,000, the Administrator is authorized to issue final approval. b. Major On-Site Projects: For projects where the Public Art Contribution exceeds $50,000, the City Council, after receiving a recommendation from the Planning Commission, shall have final approval authority.

4. Standard of Review: Review shall be conducted in a content-neutral manner, focusing on the quality of materials, scale, professionalism of the artist, and consistency with the City’s aesthetic and cultural goals rather than the artistic message or viewpoint.

C. Process Coordination. To avoid development delays, the public art review process shall run concurrently with the standard entitlement and design review process.

1. Preliminary Plan: Should be submitted with the initial application for a Discretionary Permit or Design Review.

2. Final Plan: Must be approved prior to the submittal of construction documents for a building permit.

3. Modifications: Any material change to an approved Public Art Plan (e.g., change in artist, material, or location) requires a formal amendment approved by the Administrator.

D. Selection Methods. The Developer may utilize any of the following selection methods, provided the process results in the selection of a Qualified Artist as defined in Section 90-1502:

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1. Open Competition: A public call for portfolios or proposals.

2. Limited Invitational: Soliciting proposals from a pre-selected list of professional artists.

3. Direct Purchase: The purchase of an existing, original work of art (e.g., from a gallery or studio), provided it meets the site-specific and durability requirements of this Chapter.

4. Community Partnership: Partnership with local community organizations for artist selection and artwork installation. The City may give priority consideration to proposals that involve local community organizations in the selection and creation process.
90-1510 Alternatives; Waivers/Adjustments.

A. Alternative Compliance Methods. The Administrator or City Council may authorize an alternative compliance method if the Developer demonstrates that on-site installation is technically infeasible or that an alternative provides a superior community benefit.

Authorized alternatives include:

1. Off-Site Installation. Installation of Artwork on a City-approved site within the public right-of-way or on other public property within the City. The Developer shall remain responsible for all costs of design, fabrication, and installation, as well as a pre-paid maintenance endowment if the City assumes ownership.

2. Cultural Facility Improvements. The construction of, or significant capital contribution to, a permanent cultural facility (e.g., a gallery, theater, or

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museum space) that is open and accessible to the general public. Such facility must be of equal or greater value than the required Public Art Contribution.

3. Restricted Donation. A donation to the City’s permanent art collection of a pre-existing work of significant historical or cultural value, subject to the review and acceptance criteria set forth in Section 90-1504.

B. Constitutional Waiver and Adjustment.

1. Application for Relief. An applicant for a Development Project may apply for a waiver, reduction, or adjustment of the requirements of this Chapter. Such application must be submitted in writing concurrently with the project’s initial land-use application.

2. Standard for Granting Relief. The City Council may grant a waiver or adjustment only if the applicant demonstrates, by a preponderance of the evidence, that the application of the requirements of this Chapter would:
a. Result in a "taking" of property without just compensation under the Fifth and Fourteenth Amendments to the United States Constitution or Article I, Section 19 of the California Constitution; or
b. Lack an essential nexus between the requirement and the project's impact; or
c. Not be roughly proportional in nature and extent to the impact of the proposed development.

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3. Administrative Record and Findings. The City Council’s decision shall be based on a written record and shall include specific findings of fact. If the Council determines that the requirement is unconstitutional as applied, it shall provide for a narrowly tailored adjustment to the requirement (e.g., a reduced fee or modified on-site requirement) to the extent necessary to achieve constitutional proportionality.

4. Burden of Proof. In any administrative or legal proceeding, the burden of proving that the requirement lacks a nexus or is disproportionate shall rest solely with the applicant.
90-1511 Appeals.

A. Right to Appeal. Any person aggrieved by a final administrative decision, determination, or requirement issued by the Administrator or the Building Official pursuant to this Chapter, including but not limited to the calculation of the Building Valuation, the denial of a Public Art Plan, or the determination of Qualified Artist status, may appeal such decision in accordance with the procedures set forth in this Section.

B. Filing and Timing:

1. Written Appeal Required: An appeal must be filed in writing with the City Clerk within 10 calendar days of the date of the decision being appealed.

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2. Specific Grounds: The appeal must state the specific grounds for the appeal and the specific error or abuse of discretion alleged to have been committed by the Administrator.

3. Appeals Fee: The appeal shall be accompanied by an appeal fee in an amount established by City Council resolution to cover the City’s cost of processing and hearing the appeal.

C. Appellate Body and Hearing:

1. First Level of Appeal: Appeals of administrative decisions shall be heard by the Planning Commission. The hearing shall be scheduled within 45 days of the filing of a complete appeal application.

2. Standard of Review: The Planning Commission shall review the matter de novo, but shall limit its review to the requirements and standards set forth in this Chapter and any adopted Administrative Guidelines.

3. Notice of Decision: The Planning Commission shall issue a written decision within 30 days of the conclusion of the hearing, which shall be mailed to the appellant.

D. Final Appeal to City Council:

1. Eligibility: A decision of the Planning Commission may be appealed to the City Council by filing a written notice of appeal with the City Clerk within 10 calendar days of the Planning Commission’s written decision.

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2. Council Action. The City Council may elect to:
a. Affirm, reverse, or modify the decision of the Planning Commission; or b. Remand the matter back to the Planning Commission or Administrator for further proceedings.

3. Finality: The decision of the City Council shall be final and shall be the City’s final administrative action for purposes of judicial review.

E. Stay of Proceedings. The filing of a timely appeal shall stay all further proceedings in furtherance of the action appealed, including the issuance of building permits or Certificates of Occupancy, unless the Administrator certifies to the appellate body that a stay would cause imminent peril to life or property.
90-1512 Enforcement; Remedies; and Penalties.

A. Violations:

1. Non-Compliance: It shall be unlawful for any Developer, Property Owner, or person to fail to comply with any requirement, condition of approval, or standard set forth in this Chapter. Each day that a violation continues shall constitute a separate and distinct offense.

2. Public Nuisance: Any Artwork installed, maintained, or removed in violation of this Chapter is hereby declared to be a public nuisance, subject to abatement in accordance with the procedures set forth in Article II of Chapter 1 of this Code.

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B. Administrative and Legal Remedies. The City shall have the authority to utilize any one or a combination of the following remedies to ensure compliance:

1. Permit and Inspection Holds: The Administrator or Building Official shall withhold the issuance of building permits, the approval of any interim or final inspections, and the issuance of any temporary or permanent Certificate of Occupancy for any project in a state of non-compliance.

2. Draw on Security: If a Developer fails to install approved Artwork or pay the In-Lieu Fee within the timelines established in Section 90-1506, the City shall have the immediate right to draw upon any performance bond, letter of credit, or cash deposit to satisfy the Public Art Contribution.

3. Specific Performance: The City may seek an injunction or order for specific performance in a court of competent jurisdiction to compel the installation, repair, or restoration of Artwork as required by an approved Art Plan or recorded Maintenance Covenant.

4. Administrative Citations: Violations may be addressed through the City’s administrative citation process, with fines increasing for subsequent offenses as established by City Council resolution.

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Artwork pursuant to a recorded easement, such costs shall be recorded as a Lien or Special Assessment against the real property.

C. Protection of Public Art (Criminal and Civil Penalties):

Prohibited Acts: It shall be unlawful for any person to intentionally deface, vandalize, alter, damage, or remove any Artwork installed pursuant to this Chapter, whether on public or private property, without prior written authorization from the City.

Penalties:

1. Criminal Prosecution: Any person who violates this subsection may be charged with a misdemeanor, punishable by a fine and/or imprisonment as set forth in the California Penal Code (Section 594 et seq.).

2. Administrative Fine: In addition to criminal penalties, the City may issue an administrative citation for the maximum amount allowed by law.

3. Mandatory Restitution: Any person found to have vandalized or damaged Artwork shall be required to pay full restitution to the City (for public works) or the Property Owner (for private works). Restitution shall include the actual cost of professional restoration by a conservator approved by the City, or the full replacement value of the work if restoration is technically infeasible.

4. Property Owner Responsibility: If the owner of private property fails to repair vandalized Artwork within [30] days of the damage occurring, the City may

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treat the failure as a violation of the Maintenance Covenant and proceed with the remedies set forth in Subsection B.
90-1513 Administrative Guidelines.

A. Authority to Adopt Guidelines. The Administrator is hereby authorized to develop, adopt, and periodically amend "Art in Public Places Administrative Guidelines" (the "Guidelines") to provide detailed procedural and technical standards for the implementation of this Chapter. The Guidelines shall be consistent with the purposes and requirements of this Article and shall be maintained on file in the Department of Community Development and on the City’s website for public inspection.

B. Scope of Guidelines. The Guidelines may include, but are not limited to, the following:

1. Artist Qualification Standards: Criteria for determining "Qualified Artist" status, including requirements for professional resumes, portfolios, and references to ensure a high standard of craftsmanship.

2. Selection Methodologies: Procedural templates for conducting open competitions, limited invitationals, and direct purchases and community partnership programs. Guidelines may include procedures for prioritizing local community organizations for mural installations and artist selection opportunities.

3. Design and Technical Standards:

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a. Specific requirements for material durability, UV resistance, fireresistance and anti-graffiti treatments tailored to the local Southern California climate and specific site conditions;
b. Standard engineering requirements for foundations, seismic anchoring, and structural wind-load calculations;
c. Siting, lighting, and "sight-distance" safety standards; d. Context-appropriate placement standards for different types of artwork (e.g., hologram art, digital media, monumental sculptures); e. Materials appropriate to location, including requirements for nonflammable materials in High Fire Severity Zones and materials suited to Scenic Highway corridors.

4. Application and Submittal Forms: Standardized forms for the Preliminary and Final Art Plans, Art Path Election, and Artist/Developer contracts.

5. Valuation Verification Procedures: Detailed protocols for the Building Official and Administrator to audit construction budgets and verify the accuracy of the Building Valuation used to calculate the Public Art Contribution.

6. Conservation and Maintenance Standards: Minimum standards for routine maintenance and professional conservation to be included in the recordable Maintenance Covenant, including anti-vandalism measures and protective treatments.

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7. Deaccessioning Policy: Standards and procedures for the City’s removal, relocation, or disposal of Artwork within the City’s permanent collection that has become damaged, hazardous, or no longer compatible with its site.

8. Community Engagement Procedures: Guidelines for providing local community organizations with priority consideration for mural projects and artist selection, and procedures for implementing youth programs such as high school mural programs.

9. Cultural Heritage and Aspirations Theme Criteria: Guidelines to assist artists and developers in creating artwork that reflects the history, heritage, and cultural character of the San Jacinto Valley and is consistent with the City's General Plan.

C. Legal Effect. The Guidelines shall serve as a supplemental regulatory document. A Developer’s failure to comply with the mandatory provisions of the adopted Guidelines shall constitute a violation of this Chapter and shall be grounds for the withholding of permits or Certificates of Occupancy.

D. Amendments. The Administrator may amend the Guidelines as necessary to reflect evolving industry standards for public art or changes in building and safety codes. Any amendment that significantly alters the financial obligation of Developers shall be presented to the City Council for review.

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SECTION 3: AMENDMENT TO HEMET MUNICIPAL CODE CHAPTER 90, ARTICLE

XLIV (CITY-INITIATED ART IN PUBLIC PLACES), ADDING PROVISIONS FOR ART IN PUBLIC SPACES as follows:
90-1531 Purpose and Intent.

The purpose of this Article is to establish a systematic and defensible process for the selection, acquisition, and placement of public art on City-owned property or within the public right-of-way. This Article ensures that public art projects are managed with fiscal responsibility and aesthetic integrity, and that artwork reflects the history, heritage and cultural character of the San Jacinto Valley where appropriate 90-1532 Project Classification and Approval Authority.

Public art projects initiated by the City shall be classified into two categories based on the total project budget (inclusive of design, fabrication, and installation):

A. Signature Public Art Projects are those with a total cost exceeding $10,000.

1. Approval Authority: Final approval rests with the City Council.

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b. Role of the Committee: The Committee shall review artist portfolios/proposals, select a finalist, and provide a formal recommendation to the full City Council for contract award. The Committee may give priority consideration to local community organizations for mural installations and artist selection, particularly for projects along Florida Avenue and in the Downtown area.

B. Minor Public Art Projects are those with a total cost of $10,000 or less.

1. Approval Authority: The City Manager is authorized to approve the selection, location, and installation of Minor Projects, including small-scale community art projects such as painted utility boxes, fire hydrants and similar public amenities.

2. Reporting: The City Manager shall provide a quarterly information report to the City Council summarizing any Minor Projects approved under this authority.
90-1533 Selection Methods for City Projects.

To ensure transparency and legal defensibility in the expenditure of public funds, the City shall utilize one of the following selection methods:

A. Open Call (Request for Qualifications/Proposals): A broad solicitation to all artists.

The City may give priority consideration to local community organizations and local artists in the selection process.

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B. Limited Invitational: A solicitation sent to a pre-qualified list of artists with specific expertise.

C. Direct Purchase: The purchase of an existing, completed artwork from a gallery or artist, provided it meets the "Minor Project" threshold or is approved as a "Signature Project."
D. Community Partnership Programs: Collaborative programs with local community organizations, schools, and youth groups to create public art, including high school mural programs and community art initiatives.
90-1534 Siting and Technical Review.

Regardless of the approval path, all City-initiated art must undergo a technical review by the Public Works and Community Development Departments to ensure:

A. Public Safety: No interference with traffic lines of sight, pedestrian clearance (ADA compliance), or emergency access. Installations utilizing hologram art, digital media, or other visually dynamic elements shall be located away from high-traffic streets and arterials, and instead sited in parks, plazas, or lower-traffic pedestrian areas.

B. Structural Integrity: Engineering review for any large-scale sculptures or installations requiring footings.

C. Materials Appropriate to Location: Review to ensure materials are appropriate to site conditions, including use of non-flammable materials in High Fire Severity Zones and materials suitable for Scenic Highway corridors.

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D. Maintenance Sustainability: Analysis of long-term cleaning, anti-graffiti, and repair costs.

E. Cultural Appropriateness: Review to ensure artwork reflects or complements the history, heritage, and cultural character of the San Jacinto Valley where appropriate, and is consistent with General Plan goals for community character. 90-1535 Artist Contracts and Intellectual Property.

Every City-initiated project shall be governed by a written Professional Services Agreement approved as to form by the City Attorney. The agreement must address:

A. Work for Hire / Copyright: Definition of the City's ownership and copyright.

B. VARA Waiver: A specific waiver of the artist's "moral rights" under the Visual Artists Rights Act (VARA) and the California Art Preservation Act (CAPA) to the extent necessary for the City to repair, relocate, or remove the artwork if it becomes a threat to public safety or an undue maintenance burden.

C. Warranties: A minimum warranty against defects in workmanship and materials. 90-1536 Deaccessioning and Removal.

The City shall reserve the right to "deaccession" (permanently remove or sell) public art.

A. Signature Projects: Deaccessioning requires City Council approval following a public hearing.

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CITY OF HEMET ORDINANCE NO. 2026-2073 44
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B. Minor Projects: Deaccessioning may be authorized by the City Manager if the work is damaged beyond repair or poses a safety hazard.

SECTION 4. CEQA ENVIRONMENTAL FINDINGS. The City has analyzed this proposed project and has determined that it is exempt from the California Environmental Quality Act (CEQA) under section 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment.  Nothing herein constitutes the City’s approval of any applications, Development Project entitlements and/or permits. Therefore, ZOA 26-001 amendment to the zoning code in itself will not result in any physical project and will not result in any physical change to the environment and does not affect the land use or density limitations of the General Plan. Therefore, it can be seen with certainty that there is no possibility that this Ordinance may have a significant adverse effect on the environment, and therefore, the adoption of this Ordinance is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines.

SECTION 5. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such determination shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more

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CITY OF HEMET ORDINANCE NO. 2026-2073 45
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sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 6. EFFECTIVE DATE. This Ordinance shall take effect thirty (30) days from its passage by the City Council of the City of Hemet.

SECTION 7. NOTICE. The City Clerk is authorized and directed to cause this Ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933(a) or, to cause this Ordinance to be published in the manner required by law using the alternative summary and posting procedure authorized under Government Code Section 39633(c).

INTRODUCED at the regular meeting of Hemet City Council on the 24th day of February 2026.

APPROVED AND ADOPTED this 10th day of March 2026
____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Jane Halstead, Interim City Clerk

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CITY OF HEMET ORDINANCE NO. 2026-2073 46
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State of California )
County of Riverside )
City of Hemet )
I, Jane Halstead, Interim City Clerk of the City of Hemet, do hereby certify that the foregoing ordinance was adopted by the Hemet City Council on the 10th day of March, 2026, and was passed by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:
_____________________________
Jane Halstead, Interim City Clerk

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CITY OF HEMET ART IN PUBLIC PLACES

PROGRAM GUIDELINES AND OVERVIEW
Community Development Department
Planning Division
445 E Florida Ave.

Hemet, CA 92543

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - ii Table of Contents
[Section 1] — Introduction...........................................................................................................................................................3 [Section 2] — Guidelines and Overview.................................................................................................................................4 Applicability of Program.......................................................................................................................................................4 How Does the Art in Public Places Program Work?.........................................................................................................5 Nonresidential Developers....................................................................................................................................................6 Residential Developers...........................................................................................................................................................7 Eligible Placement Locations of Art Installations ...............................................................................................................8 Eligible Public Artworks and Components..........................................................................................................................9 [Section 3] — City Ordinance.................................................................................................................................................10

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 3 [Section 1] — Introduction
The Public Art Program establishes guidelines, procedures, and standards for integrating public art into new private and public construction projects in Hemet, known as the "Art in Public Places" Program.

The program aims to
create an inclusive,
culturally rich
environment that reflects
Hemet’s history, current
experiences, and future
aspirations. Public art
fosters community
identity through
placemaking, creativity,
and human experience.

It enhances public areas,
making them more inviting and stimulating, and contributes to a more livable city.

Public art, experienced in both indoor and outdoor settings, impacts property values, the local economy, and city vitality. It highlights community diversity, history, and future goals, supporting economic development through a vibrant cultural presence.

By incorporating public art, Hemet strives to:

1. Enhance livability and visual appeal within the city.

2. Enliven public spaces, making them more welcoming and engaging.

3. Foster deeper interactions with the places where people live, work, and visit.

4. Illuminate the community’s diversity, history, and aspirations.

5. Contribute to economic development by enriching the public realm with art and culture
Figure 1: Hemet 2023 Chalktober Fest Chalk Art by Jose Noe

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 4 [Section 2] — Guidelines and Overview
Applicability of Program
The Arts in Public Places Program applies to all of the following Development Projects:
• New residential construction with a valuation of $100,000 or more. • New nonresidential construction (commercial, industrial, public institutional, specific plan, manufacturing, open space, agriculture, overlay, or mixed-use) with a valuation of $100,000 or more.
• Tenant improvements for nonresidential construction with a valuation of $100,000 or more.
• Public projects.

The following Development Projects may be included into the Arts in Public Places Program:
• Capital improvement projects;
• Day care facilities;
• Electric vehicle charging stations;
• Fire sprinkler installation work items;
• Historic preservation or restoration;
• Maintenance of an existing building;
• Projects explicitly exempted by development agreements; • Public park projects;
• Publicly financed or operated museums or cultural centers; • Repair or reconstruction of structures which have been damaged by fire, flood, wind, earthquake or other calamity;
• Seismic retrofit or flood protection projects work items; • Senior housing projects (covenant restricted); and
• Solar (photovoltaic) system applications.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 5 How Does the Art in Public Places Program Work?
• Developers must pay or deposit the minimum amount specified by the city council's fee schedule before a building permit is issued. • Final city approval (e.g., final inspection or certificate of occupancy) requires full compliance with the public arts program, demonstrated by:
o Placement of approved artwork to the public arts committee's satisfaction.
o Payment of in-lieu art fees.
o Posting financial security equal to the acquisition and installation costs of approved artwork, in a form approved by the city attorney. o Donation and acceptance of approved artwork by the public arts committee.
• Full compliance includes providing the entire program allocation for the project.
• Public art fees must be paid to the community development and building and safety departments before a certificate of occupancy is issued.

Figure 2: “Hemet 1915” (AKA Florida Avenue at Dusk) by Thomas Kinkade

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 6 Nonresidential Developers
Nonresidential Developers are required to choose at least one of the three options, but are not limited to one option:
• Option 1: Install public art
o Installation:
 Install a permanent public art piece(s) and enter into a longterm maintenance agreement with the city. This agreement requires the developer/property owner and successors to maintain, repair, and replace the artwork as needed.
o Artist Selection:
 Choose the artist directly; or
 Hire a consultant to select an artist or team, with consultant fees not exceeding 5% of the public art contribution
o Fee and reimbursement:
 Submit a public arts fee deposit before building permits are issued.
 After installation and inspection, provide a detailed cost breakdown/invoice for the committee's review, with
reimbursement up to the deposit amount.
• Option 2: Donate artwork
o Purchase existing or commission original artwork for donation to the City of Hemet’s public art collection. Donations are reviewed for quality, maintenance needs, and program goals. Donations before permit issuance exempt the developer from the public art fee; donations after require fee payment before permit issuance, with reimbursement upon donation acceptance.
• Option 3: Pay the in-lieu fee
o Pay the in-lieu public art fee before building permit issuance, which will be used by the City of Hemet for public art projects and programs.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 7 Residential Developers
Residential Developers are required to choose at least one of the two options, but are not limited to one option:

Residential developers are required to do one of two options towards the Program. • Pay in-lieu fee:
o Pay the public art in-lieu fee before building permit issuance, which supports City of Hemet public art projects and programs. • Alternative placement plan:
o For specific plans, planned development permits, mixed-use, or master plan communities, negotiate an alternative placement plan with the city if opting to install or donate public art
Figure 3: Rendering of Mural on an East Los Angeles Apartment by Los Angeles Artist Stephanie Mercado In sum, nonresidential developers in Hemet can fulfill public art requirements by installing a permanent artwork with a long-term maintenance agreement, donating existing or commissioned artwork to the city’s collection, or paying an in-lieu fee before permit issuance. Residential developers must pay the in-lieu fee before receiving a building permit and, if opting for an alternative placement plan for public art, they must negotiate this with the city for certain types of developments.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 8 Eligible Placement Locations of Art Installations
An important component of the Arts in Public Places Program is that the art must be publicly accessible and available for the enjoyment of all City of Hemet residents and visitors. Eligible public art locations are located in various public places within the City of Hemet.
• Facilities include but are not limited to
commercial or residential buildings,
plazas, parks, sidewalks, traffic islands,
public buildings, power stations, utility
boxes, and transportation amenities;
• Sites must be exterior and accessible
to the public at all times;
• Locations can include surface
treatments of buildings, retaining walls,
and bridges. The definition of “location”
may be expanded based on an artist’s
vision and evaluated case-by-case; and
• Projects can incorporate artistdesigned features (e.g., gates, fountains, tiles, doors, furniture, lighting, railings, etc.)
using public art funds to enhance the
budget.

Figure 4: Lynn Jaye's "Dione the Water Goddess" in Palm Desert

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 9 Eligible Public Artworks and Components
Artworks can be made of varying mediums and take various forms. • Eligible Public Art Components:
o The art in public places program embraces diverse art forms and media, encouraging imaginative use. Eligible components include:
 Sculpture: Freestanding, wall-mounted, suspended, kinetic, electronic, etc., in any material or combination;
 Painted and mosaic murals;
 Earthworks, fiberworks, neon, glass, mosaics, photographs, prints, calligraphy, and combinations of media, including sound, film, holography, and video systems; and
 Standard fixtures (e.g., gates, streetlights, signage, etc.) may be artist-designed in unique or limited editions.
• Eligible Artworks:
o Singular objects (sculpture);
o Artist-designed amenities (e.g., streetscapes, paving, lighting, benches, wayfinders, water features, landscape treatments, etc.); o Artworks must be located in publicly accessible outdoor areas; and o Limited-edition artworks must have no more than twenty (20) pieces.

Figure 5: Bench at the MGM Springfield in Massachusetts

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 10 [Section 3] — City Ordinance
Chapter 90
Art in Public Places
ARTICLE XLIII. ART IN DEVELOPMENT
90-1501 Title; Authority; Purpose; Legislative Findings.

A. Title. This Article shall be known and may be cited as the “Art in Development” Ordinance.

1. Mitigate the impact of new development on the City's cultural and aesthetic infrastructure.

2. Foster a sense of place and enhance the pedestrian experience through superior urban design.

4. Maintain the City’s cultural vitality by ensuring that public art is created by qualified professionals and preserved through enforceable longterm maintenance standards.

D. Legislative Findings. The City Council hereby finds and declares as follows:

1. Public Interest and Cultural Vitality. Public art is not merely aesthetic; it is a vital component of the City’s infrastructure that promotes economic development, attracts tourism, and enhances the mental and physical well-being of residents by creating a high-quality "sense of place" that reflects the unique history and character of the San Jacinto Valley.

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3. Regulatory Structure and Constitutional Compliance.
a. The requirement to provide on-site public art is a land-use design standard similar to landscaping, set-back, or architectural requirements, intended to ensure a project’s compatibility with the City’s aesthetic and cultural goals.
b. When an applicant elects the alternative of an in-lieu fee, that fee is imposed as a condition of development approval and shall be the responsibility of the Developer, not the ultimate purchaser or home buyer. The City Council finds that there is a clear essential nexus between the impacts of new development and the need for public art, and that the required contribution is roughly proportional to the scale, cost, and impact of the project.

For the purposes of this Chapter, the following words, terms, and phrases shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning:

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 12 A. Administrator means the Community Development Director of the City, or such other City official as may be designated by the City Manager to oversee the daily operations of the Art in Public Places Program.

C. Art in Public Places (AIPP) Fund means a segregated, interest-bearing special fund established by the City for the deposit and expenditure of Public Art Contributions and In-Lieu Fees. Funds shall be used exclusively for the purposes authorized in Section 90-1507.

Specifically excluded from this definition are land acquisition costs and off-site improvement costs (e.g., public street segments or utility trunk lines). The Building Official’s determination of valuation shall be final for the purposes of calculating the Public Art Contribution.

F. Certificate of Occupancy (C of O) means a temporary or permanent certificate issued by the Building Official authorizing the initial occupancy of a building or structure.

G. Developer means the person, corporation, partnership, or legal entity financially and legally responsible for the planning, design, and construction of a Development Project. The term "Developer" may refer to the applicant for a building permit, which may be distinct from the legal owner of the real property upon which the project is situated. For purposes of this Chapter, the Developer (not the ultimate purchaser or home buyer) shall be responsible for payment of all Public Art Contributions and InLieu Fees.

H. Development means the following activities, provided they meet the thresholds set forth in Section 90-1503: (1) The construction of new buildings or structures; (2)

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 13 Additions to existing buildings that create net new floor area; or (3) Substantial interior or exterior remodels, rehabilitations, or improvements.

J. Public Art / Artwork means a permanent, site-specific, and publicly viewable visual work of art created by a Qualified Artist.

2. Ineligible Items: The following are specifically excluded:
a. Mass-produced "off-the-shelf" objects or reproductions of original works;
b. Decorative, ornamental, or functional elements designed by the project architect or landscape architect rather than a Qualified Artist;
c. Routine landscaping or standard architectural features; and d. Commercial signage, directional graphics, or "supergraphics" that serve primarily as branding.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 14 M. Public Place means an exterior area on public or private property that is clearly visible to the general public from adjacent public property, sidewalks, or public rights-of-way.

This definition specifically excludes the Developer, the Developer’s employees, or the project’s lead architect or landscape architect.
90-1503 Applicability; Thresholds; Exemptions.

A. Applicability. Except as otherwise provided in Subsection C (Exemptions), the requirements of this Article shall apply Citywide to the following:

1. Private Development: All new construction, additions, and substantial exterior rehabilitations for residential, commercial, industrial, and mixed-use projects.

2. Public Development: All City-initiated Capital Improvement Projects (CIP) and Public Construction Projects, as defined in Section 90-1502.

B. Thresholds and Contribution Rates. The Public Art Contribution shall be calculated at the time of Building Permit issuance based on the Building Valuation as follows:

1. New Residential Development (Tracts and Multi-Family): For all new residential developments, including but not limited to apartments, condominiums, and two or more single-family dwellings constructed concurrently within the same tract or by the same Developer, the contribution shall be 0.50% of the total Building Valuation.

2. Non-Residential and Public Development: For all commercial, industrial, office, mixed-use, and public construction projects, the contribution shall be 0.50% of the total Building Valuation.

C. Exemptions. The requirements of this Article shall not apply to the following:

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 15

2. Individual Single-Family Residential (Rehabilitation or Expansion): For the rehabilitation, renovation, or expansion of an existing single-family residence.

3. Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs).

4. Minor Accessory Structures: Construction of detached accessory structures with a floor area of less than 120 square feet (e.g., storage sheds, gazebos).

6. Maintenance and Repair: Ordinary maintenance, repair, or "like-forlike" replacement of existing building components that do not increase floor area or change the exterior design.

8. Affordable Housing: Projects where 100% of the residential units are deed-restricted for "Lower Income" households, as defined by the California Department of Housing and Community Development (HCD), for a period of no less than 55 years.

9. Legal Preemption: Any project where the imposition of the Public Art Contribution is expressly preempted by state or federal law.

D. Enforcement of Compliance. Compliance with this Section is a mandatory condition of project approval.

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3. Continuing Violation: Failure to maintain On-Site Artwork as required by the recordable covenant (see Section 90-1508) shall constitute a violation of this Code, subject to the remedies set forth in Section 90- 1512.
90-1504 Compliance Paths and Procedural Requirements.

A. On-Site Artwork (Primary Design Standard). The Developer may elect to design, fabricate, and install qualifying Artwork on the project site or within the approved adjacent public right-of-way.

Procedural Steps:

Step 2: Final Art Plan Approval. Before a Building Permit is issued, the Developer must obtain approval of a "Final Art Plan," which shall include detailed structural engineering (stamped by a California-licensed engineer), a finalized budget, and a maintenance schedule.

Step 3: Installation and Inspection. The Artwork must be installed and inspected for compliance with the Final Art Plan prior to the request for a final building inspection.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 17 Step 4: Acceptance. Upon verified installation and recordation of the required Maintenance Covenant (Section 90-1508), the Administrator shall issue a "Certificate of Compliance."
Financial Security: If a Developer desires a Building Permit before the Final Art Plan is approved, they must pay the full In-Lieu Fee as security. This fee shall be held by the City and refunded, without interest, only after the on-site Artwork is accepted and the Certificate of Occupancy is issued.

Selection Criteria: The proposed donation must be reviewed by the Committee for:

1. Quality and Provenance: The work must be an original work by a Qualified Artist.

2. Maintenance Burden: The City shall not accept any donation that imposes an unreasonable or unfunded long-term conservation cost.

3. Siting: The City retains absolute discretion over the final placement of donated works.

C. In-Lieu Fee Payment. The Developer may elect to satisfy the Public Art Contribution by paying a fee into the AIPP Fund.

1. Calculation and Timing: The fee is calculated based on the Building Valuation at the time of permit issuance. Payment must be made in full as a condition of Building Permit issuance.

2. Use of Pooled Funds: Fees paid into the AIPP Fund may be pooled with other Public Art Contributions to fund high-impact, publicly sited projects, cultural facilities, or the City's own "Signature Projects" (as defined in Section 90-1501) regardless of their proximity to the Developer's project site. Priority consideration may be given to mural projects along

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 18 Florida Avenue and in the Downtown area, and to projects that involve local community organizations.

3. Administration Fee: A portion of the In-Lieu fee, as set by City Council resolution, may be allocated to cover the reasonable costs of administering the Art in Public Places Program.
90-1505 In-Lieu Fee Adoption.

A. Calculation and Collection of Public Art Contribution.

3. Condition Precedent: Payment of the fee, or the provision of approved security under the On-Site path, is a condition precedent to the issuance of a building permit.

1. Security Deposit Treatment: The paid In-Lieu Fee shall be held by the City as a cash security deposit to ensure the completion and installation of the Artwork.

2. Refund Eligibility: The Developer shall be eligible for a full refund of the security deposit, without interest, only after:

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 19 a. The Administrator has issued a formal "Acceptance of Artwork" certificate;
b. The Maintenance Covenant and Public Access Easement have been recorded; and
c. A permanent Certificate of Occupancy has been issued.

1. Form of Security: Security shall be in the form of a performance bond, an irrevocable letter of credit, or a cash deposit, in a form approved by the City Attorney.

D. Enforcement Holds and Remedies. The City shall utilize the following "Stop Points" to ensure strict compliance:

1. Inspection Holds: The Building Official shall withhold "Final Inspection" approval for any project that has not satisfied the requirements of this Chapter.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 20

A. Establishment of Fund. All In-Lieu Fees and Public Art Contributions collected pursuant to this Chapter shall be deposited into the Art in Public Places (AIPP) Fund.

This fund shall be a segregated, interest-bearing account, and all interest earned shall accrue to the benefit of the Program.

B. Eligible Expenditures. Monies in the AIPP Fund shall be expended solely for the following "Capital-Eligible" and "Programming" purposes:

Priority consideration may be given to mural projects along Florida Avenue and in the Downtown area

4. Cultural Programming & Civic Events: A portion of the annual AIPP Fund revenue, not to exceed 15%, may be used for City-sponsored temporary art installations, "Civic Arts Events" (e.g., Chalk Art or Sand Art Festivals), and art competitions designed to foster community engagement and public participation in the arts.

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C. Pooling and Geographic Flexibility.

D. Prohibitions.

1. Self-Funding Prohibited: No portion of a Developer's In-Lieu Fee may be used to purchase or fund the specific Artwork required for that Developer’s own project.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 22 A. Eligible Artwork Components. To qualify as Artwork under this Chapter, the proposed work must be a permanent, original work of art created by a Qualified Artist that possesses a high level of artistic quality and craftsmanship. Eligible components include, but are not limited to:

1. Sculpture: Three-dimensional works in any durable material or combination of materials (e.g., stone, metal, glass, or plastic).

B. Ineligible Components and "Loophole" Exclusions. The following items do not satisfy the Public Art Contribution requirement:

1. Mass-Produced Objects: "Off-the-shelf" items, reproductions of original works, or garden-variety ornaments not created by a Qualified Artist specifically for the project.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 23 demonstrably the work of a Qualified Artist and exceed standard design requirements.

3. Commercial Branding: Any element that includes logos, trademarks, branding, or "supergraphics" used for commercial advertising or directional purposes.

4. Incompatible Materials: Works created with materials prone to rapid deterioration or that require an unreasonable level of maintenance (e.g., non-galvanized metals in coastal environments or non-UV-rated plastics).

C. Location and Siting Standards.

1. Visibility: Artwork must be located in a Public Place (as defined in Section 90-1502). It must be clearly visible and, where appropriate, accessible to the general public from the adjacent public right-of-way or public property.

2. Safety and Clearance: Artwork shall not:
a. Interfere with traffic safety "sight distance" triangles; b. Obstruct the "path of travel" as defined by the Americans with Disabilities Act (ADA); or
c. Interfere with the operation or maintenance of public or private utilities.
d. Context-Appropriate Placement. The location of artwork shall be appropriate to the type of installation and surrounding context. For example:

2. Large-scale or monumental works should be located where they can be viewed from appropriate distances without creating visual clutter or traffic hazards.

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3. Materials Appropriate to Location. All artwork shall be constructed of materials appropriate to the specific site conditions and environmental context, including but not limited to:
a. In areas designated as High or Very High Fire Severity Zones, artwork shall be constructed of non-flammable or fire-resistant materials;
b. In areas subject to high winds, seismic activity, or extreme weather, artwork shall be engineered and anchored to withstand such conditions;
c. All materials shall be UV-resistant and suitable for prolonged outdoor exposure in Southern California's climate.

D. Ownership, Easements, and Maintenance.

1. Ownership and Transfer: Artwork installed on private property shall be the property of the Developer or subsequent Property Owner.

Ownership and the obligation to maintain the Artwork shall automatically transfer with the title to the real property.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 25 b. Obligate the Property Owner to clean, repair, and maintain the Artwork in its original approved condition; and
c. Grant the City the right (but not the obligation) to enter the property to perform necessary repairs if the Owner fails to do so, with the costs thereof becoming a lien upon the property.

3. VARA and CAPA Compliance: The Property Owner shall be responsible for ensuring that all contracts with Qualified Artists include appropriate waivers of "moral rights" under the Visual Artists Rights Act (VARA) and the California Art Preservation Act (CAPA) to allow for the Citysanctioned relocation or removal of the work if it becomes a threat to public safety.

E. Removal or Alteration.

1. City Approval Required: Once accepted and installed, no Artwork may be removed, relocated, or materially altered without the prior written approval of the City Council.

3. Decennial Review and Deaccessioning: To ensure that Artwork remains compatible with the evolving site context, architectural standards, and the City’s long-term aesthetic goals, the Property Owner may request a formal review of the Artwork’s status.
a. Timing of Request. No such request shall be accepted or processed until the Property Owner has paid an application fee, if any, set by Council resolution and at least ten (10) years have elapsed from the date of the issuance of the original Certificate of Compliance for the Artwork. Following this initial ten-year period, the Property Owner may submit a request for review at any time, provided that no more

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 26 than one (1) such request may be filed for the same Artwork within any twelve (12) month period.
b. Standards for Removal or Relocation. The City Council may authorize the removal or relocation of the Artwork if the Property Owner demonstrates that: (1) the Artwork has reached the end of its functional life or requires significant repairs; (2) the redevelopment or substantial remodeling of the project site renders the current location of the Artwork physically or aesthetically untenable; or (3) the City Council may, in the exercise of its legislative and aesthetic discretion, authorize the removal or relocation of the Artwork if it finds that the work is no longer compatible with the City’s desired community character, the evolving architectural identity of the project site, or the visual environment of the surrounding neighborhood. Such a finding may be based on the Council’s subjective evaluation of the Artwork’s ongoing contribution to the public realm and its harmony with the current aesthetic goals of the community, regardless of whether the Artwork violates any specific or codified design standard. 90-1509 Submittal; Review; and Approval Process.

1. Artist Qualifications: A resume and portfolio of the Qualified Artist, demonstrating experience with projects of similar scale and complexity.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 27

4. Budget Verification: A certified budget prepared by the Artist or Developer, including artist fees, fabrication costs, transportation, installation, and specialized insurance.

5. Technical Specifications: A description of the materials used, focusing on durability, UV resistance, and anti-graffiti coatings.

7. Maintenance Plan: A detailed schedule for routine cleaning and professional conservation, including anti-vandalism measures.

B. Review and Approval Authority.

The Committee’s review shall be advisory to the City Council.

3. Final Approval:
a. Minor On-Site Projects: For projects where the Public Art Contribution is less than $50,000, the Administrator is authorized to issue final approval.
b. Major On-Site Projects: For projects where the Public Art Contribution exceeds $50,000, the City Council, after receiving a
recommendation from the Planning Commission, shall have final approval authority.

4. Standard of Review: Review shall be conducted in a content-neutral manner, focusing on the quality of materials, scale, professionalism of the artist and consistency with the City’s aesthetic and cultural goals rather than the artistic message or viewpoint.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 28 C. Process Coordination. To avoid development delays, the public art review process shall run concurrently with the standard entitlement and design review process.

1. Preliminary Plan: Should be submitted with the initial application for a Discretionary Permit or Design Review.

2. Final Plan: Must be approved prior to the submittal of construction documents for a building permit.

3. Modifications: Any material change to an approved Public Art Plan (e.g., change in artist, material, or location) requires a formal amendment approved by the Administrator.

D. Selection Methods. The Developer may utilize any of the following selection methods, provided the process results in the selection of a Qualified Artist as defined in Section 90-1502:

1. Open Competition: A public call for portfolios or proposals.

2. Limited Invitational: Soliciting proposals from a pre-selected list of professional artists.

3. Direct Purchase: The purchase of an existing, original work of art (e.g., from a gallery or studio), provided it meets the site-specific and durability requirements of this Chapter.

1. Off-Site Installation. Installation of Artwork on a City-approved site within the public right-of-way or on other public property within the City.

The Developer shall remain responsible for all costs of design,

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 29 fabrication, and installation, as well as a pre-paid maintenance endowment if the City assumes ownership.

2. Cultural Facility Improvements. The construction of, or significant capital contribution to, a permanent cultural facility (e.g., a gallery, theater, or museum space) that is open and accessible to the general public. Such facility must be of equal or greater value than the required Public Art Contribution.

B. Constitutional Waiver and Adjustment.

2. Standard for Granting Relief. The City Council may grant a waiver or adjustment only if the applicant demonstrates, by a preponderance of the evidence, that the application of the requirements of this Chapter would:
a. Result in a "taking" of property without just compensation under the Fifth and Fourteenth Amendments to the United States Constitution or Article I, Section 19 of the California Constitution; or b. Lack an essential nexus between the requirement and the project's impact; or
c. Not be roughly proportional in nature and extent to the impact of the proposed development.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 30

4. Burden of Proof. In any administrative or legal proceeding, the burden of proving that the requirement lacks a nexus or is disproportionate shall rest solely with the applicant.
90-1511 Appeals.

B. Filing and Timing.

1. Written Appeal Required: An appeal must be filed in writing with the City Clerk within 10 calendar days of the date of the decision being appealed.

2. Specific Grounds: The appeal must state the specific grounds for the appeal and the specific error or abuse of discretion alleged to have been committed by the Administrator.

3. Appeals Fee: The appeal shall be accompanied by an appeal fee in an amount established by City Council resolution to cover the City’s cost of processing and hearing the appeal.

C. Appellate Body and Hearing.

1. First Level of Appeal: Appeals of administrative decisions shall be heard by the Planning Commission. The hearing shall be scheduled within 45 days of the filing of a complete appeal application.

3. Notice of Decision: The Planning Commission shall issue a written decision within 30 days of the conclusion of the hearing, which shall be mailed to the appellant.

D. Final Appeal to City Council.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 31

2. Council Action: The City Council may elect to:
a. Affirm, reverse, or modify the decision of the Planning Commission; or
b. Remand the matter back to the Planning Commission or Administrator for further proceedings.

3. Finality: The decision of the City Council shall be final and shall be the City’s final administrative action for purposes of judicial review.

A. Violations.

B. Administrative and Legal Remedies. The City shall have the authority to utilize any one or a combination of the following remedies to ensure compliance:

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 32

4. Administrative Citations: Violations may be addressed through the City’s administrative citation process, with fines increasing for subsequent offenses as established by City Council resolution.

5. Cost Recovery and Liens: The City shall be entitled to recover all costs associated with the enforcement of this Chapter, including staff time, expert consultant fees, and legal fees. If the City performs "self-help" repairs on Artwork pursuant to a recorded easement, such costs shall be recorded as a Lien or Special Assessment against the real property.

C. Protection of Public Art (Criminal and Civil Penalties).

Penalties:

2. Administrative Fine: In addition to criminal penalties, the City may issue an administrative citation for the maximum amount allowed by law.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 33 approved by the City, or the full replacement value of the work if restoration is technically infeasible.

4. Property Owner Responsibility: If the owner of private property fails to repair vandalized Artwork within [30] days of the damage occurring, the City may treat the failure as a violation of the Maintenance Covenant and proceed with the remedies set forth in Subsection B. 90-1513 Administrative Guidelines.

B. Scope of Guidelines. The Guidelines may include, but are not limited to, the following:

3. Design and Technical Standards:
a. Specific requirements for material durability, UV resistance, fireresistance and anti-graffiti treatments tailored to the local Southern California climate and specific site conditions;
b. Standard engineering requirements for foundations, seismic anchoring, and structural wind-load calculations;
c. Siting, lighting, and "sight-distance" safety standards;

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 34 d. Context-appropriate placement standards for different types of artwork (e.g., hologram art, digital media, monumental sculptures); e. Materials appropriate to location, including requirements for nonflammable materials in High Fire Severity Zones and materials suited to Scenic Highway corridors.

4. Application and Submittal Forms: Standardized forms for the Preliminary and Final Art Plans, Art Path Election, and Artist/Developer contracts.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 35 D. Amendments. The Administrator may amend the Guidelines as necessary to reflect evolving industry standards for public art or changes in building and safety codes.

Any amendment that significantly alters the financial obligation of Developers shall be presented to the City Council for review.

ARTICLE XLIV: CITY-INITIATED ART IN PUBLIC PLACES
90-1531 Purpose and Intent.

Public art projects initiated by the City shall be classified into two categories based on the total project budget (inclusive of design, fabrication, and installation):

A. Signature Public Art Projects are those with a total cost exceeding $10,000.

1. Approval Authority: Final approval rests with the City Council.

2. Selection Process: For each Signature Project, the Mayor shall appoint a Project Ad-Hoc Committee.
a. Ad-Hoc Committee Composition: The Committee shall consist of two (2) members of the City Council advised by the City Manager, or his or her designee. The Committee may invite a Qualified Artist or a member of the local arts community to serve as a non-voting technical advisor.
b. Role of the Committee: The Committee shall review artist portfolios/proposals, select a finalist, and provide a formal recommendation to the full City Council for contract award. The Committee may give priority consideration to local community organizations for mural installations and artist selection, particularly for projects along Florida Avenue and in the Downtown area.

B. Minor Public Art Projects are those with a total cost of $10,000 or less.

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1. Approval Authority: The City Manager is authorized to approve the selection, location, and installation of Minor Projects, including smallscale community art projects such as painted utility boxes, fire hydrants and similar public amenities.

To ensure transparency and legal defensibility in the expenditure of public funds, the City shall utilize one of the following selection methods:

A. Open Call (Request for Qualifications/Proposals): A broad solicitation to all artists.

The City may give priority consideration to local community organizations and local artists in the selection process.

B. Limited Invitational: A solicitation sent to a pre-qualified list of artists with specific expertise.

Regardless of the approval path, all City-initiated art must undergo a technical review by the Public Works and Community Development Departments to ensure:

B. Structural Integrity: Engineering review for any large-scale sculptures or installations requiring footings.

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CITY OF HEMET ART IN PUBLIC PLACES PROGRAM GUIDELINES AND OVERVIEW - 37 C. Materials Appropriate to Location: Review to ensure materials are appropriate to site conditions, including use of non-flammable materials in High Fire Severity Zones and materials suitable for Scenic Highway corridors.

D. Maintenance Sustainability: Analysis of long-term cleaning, anti-graffiti, and repair costs.

Every City-initiated project shall be governed by a written Professional Services Agreement approved as to form by the City Attorney. The agreement must address:

A. Work for Hire / Copyright: Definition of the City's ownership and copyright.

C. Warranties: A minimum warranty against defects in workmanship and materials. 90-1536 Deaccessioning and Removal.

The City shall reserve the right to "deaccession" (permanently remove or sell) public art.

A. Signature Projects: Deaccessioning requires City Council approval following a public hearing.

B. Minor Projects: Deaccessioning may be authorized by the City Manager if the work is damaged beyond repair or poses a safety hazard.

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City of Hemet
City Council Meeting

STAFF REPORT
Meeting: City Council Meeting - Mar 10 2026
Department: Finance
Submitted by: Mark Prestwich, City Manager
Tiffany Barnett, Administrative Services Director;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:

A Resolution of the City Council of the City of Hemet, California, Approving the Second Amendment to the Cannabis Management Agreement with Hinderliter de Llamas, Authorizing the City Manager to Execute all Documents Related to the Agreement, and Authorizing the Administrative Services Director to Establish Supplemental Appropriations of $125,000 in General Fund 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 Second Amendment to the Cannabis Management Agreement with Hinderliter de Llamas, Authorizing the City Manager to Execute all Documents Related to the Agreement, and Authorizing the Administrative Services Director to Establish Supplemental Appropriations of $125,000 in General Fund.

BACKGROUND:

On September 16, 2024, the City of Hemet entered into an agreement with Hinderliter de Llamas for Cannabis Management Services. These services were not to exceed $50,000 per fiscal year and included:

1. Technical Assistance and Subject Matter Expertise

2. Quality Assurance Application Reviews

3. Site Plan Evaluations

4. Pre-License Site Visits

5. Supplemental Background Checks
On November 19, 2024, the City executed the First Amendment to the Agreement, modifying Section 17 (Indemnification) to require the City to indemnify, defend, and hold harmless the Consultant and its officers, agents, and employees from claims arising out of the City’s use of the Consultant’s work products. The amendment clarifies that the City’s indemnification obligation does not apply to claims resulting from the Consultant’s active negligence, recklessness, willful misconduct, or violation of law.

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ANALYSIS:

Due to the highly regulated and evolving nature of California’s commercial cannabis industry, local jurisdictions such as the City of Hemet must maintain robust oversight to ensure compliance with State law, protect public safety, and safeguard municipal revenues. California’s regulatory framework requires detailed monitoring of licensing, tax reporting, operational compliance, and background eligibility, all of which involve specialized technical expertise and significant staff time. As outlined in the proposal from HdL Companies, these services include revenue audits, compliance inspections, permit review, and regulatory analysis designed specifically for cannabis programs.

Contracting for these professional services provides the City with access to subject-matter experts, standardized audit methodologies, and industry-specific compliance tools that would be difficult and costly to develop internally, while also helping ensure accurate tax reporting, consistent enforcement, and transparency. This approach supports effective program administration and reduces risk to the City by strengthening regulatory compliance and revenue verification.

DISCUSSION:

The Second Amendment to the Agreement expands the scope of services to include:

1. Annual Revenue Audits

2. Compliance Inspections

3. Review of Permit Renewal Documents
The expanded scope of services is for all open and planned cannabis businesses which currently totals five.

With the addition of these services, staff is recommending that the "not to exceed" compensation amount be increased to $125,000 per City fiscal year. It is also recommended that the term of the Agreement be extended for an additional five years, through June 30, 2031, to ensure continuity of the services and ongoing program oversight.

STRATEGIC PLAN INTEGRATION:

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

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

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

FISCAL IMPACT:

In FY2024-25, $50,000 for Cannabis Management Services was funded using salary savings within the Community Development Department. No budget was established for these services in FY2025-

26. Staff is therefore requesting a new appropriation of $125,000 in the General Fund to support ongoing cannabis management services. Increased revenue from newly opened cannabis businesses will be available to offset this operational cost.

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REVIEWED BY LEGAL:
☒ Staff report ☒ Resolution
☐ Ordinance ☐ Agreement
ATTACHMENT(S):

Attachment 1: Resolution
Attachment 2: Second Amendment
Attachment 3: HdL Proposal

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CITY OF HEMET RESOLUTION NO. 2026-XXX 1
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CITY OF HEMET

HEMET, CALIFORNIA
RESOLUTION NO. 2026-xxx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA, APPROVING THE SECOND

AMENDMENT TO THE CANNABIS MANAGEMENT

AGREEMENT WITH HINDERLITER DE LLAMAS AND

AUTHORIZING THE CITY MANAGER TO EXECUTE ALL

DOCUMENTS RELATED TO THE AGREEMENT AND

AUTHORIZING THE ADMINISTRATIVE SERVICES

DIRECTOR TO ESTABLISH SUPPLEMENTAL
APPROPRIATIONS OF $125,000 IN GENERAL FUND
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, on September 16, 2024, the City of Hemet entered into an agreement with Hinderliter de Llamas for Cannabis Management Services; and WHEREAS, on November 19, 2024, the City executed the First Amendment to the Agreement, modifying Section 17 (Indemnification)

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

SECTION 1. The above recitals are all true and correct.

SECTION 2. Approves the Second Amendment to the Agreement, which expands the scope of services to include: (1) Annual Revenue Audits, (2) Compliance Inspections, and (3) Review of permit Renewal Documents. Increases the “not to exceed” compensation amount to $125,000.00 per City fiscal year and extends the agreement for an additional 5 years through June 30, 2031.

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CITY OF HEMET RESOLUTION NO. 2026-XXX 2
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SECTION 3. Authorizes the City Manager to execute all documents related to this agreement.

SECTION 4. Authorizes the Administrative Services Director to establish supplemental appropriations of $125,000 in General Fund.

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CITY OF HEMET RESOLUTION NO. 2026-XXX 3
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PASSED, APPROVED, AND ADOPTED this 10th day of March, 2026. ____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Jane Halstead, Interim City Clerk

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CITY OF HEMET RESOLUTION NO. 2026-XXX 4
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State of California )
County of Riverside )
City of Hemet )
I, Jane Halstead, Interim City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 10th day of March, 2026, and was passed by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

ABSENT: Council Members:
_____________________________
Jane Halstead, Interim City Clerk

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00091753.1

SECOND AMENDMENT TO
AGREEMENT 2025-035

BY AND BETWEEN

THE CITY OF HEMET

A CALIFORNIA MUNICIPAL CORPORATION
AND

HINDERLITER, DE LLAMAS & ASSOCIATES

A CALIFORNIA CORPORATION
DATED: FEBRUARY 10, 2026

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00091753.1 Page | 1

SECOND AMENDMENT TO AGREEMENT
This Second Amendment to the Professional Services Agreement for Cannabis Management Services is made and entered into as of this 11th day of March, 2026, by and between the City of Hemet (“City”), a California municipal corporation and Hinderliter De Llamas & Associates, California corporation (“Consultant”). City and Consultant are sometimes hereinafter referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. City and Consultant entered into an agreement entitled “Professional Services Agreement” dated September 16, 2024 (“Agreement”) for the purpose of retaining services of Consultant to provide Cannabis Management Services.

B. On November 19, 2024, the First Amendment amended Section 17 of the Agreement to update and revise Section 17, “Indemnification” of the Agreement.

C. Pursuant to Section 27 of the Agreement, the Parties desire to amend the Agreement to revise the Scope of Services, extend the term, and revise the compensation.

D. Section 1(a) of the Agreement provides that the Term of the Agreement is through June 30, 2026.

E. This Second Amendment amends Section 1(a) of the Agreement to provide that the Term of the Agreement is extended through June 30, 2031.

F. Section 4(a) of the Agreement provides that the Compensation shall not exceed Fifty Thousand Dollars ($50,000.00) per City fiscal year.

G. This Second Amendment amends Section 4(a) to provide that the Compensation shall not exceed One Hundred and Twenty-Five Thousand Dollars ($125,000.00) per City fiscal year.

H. This Second Amendment amends Exhibit “A”, “Scope of Services” to include annual revenue audits, compliance inspections and review of permit renewal documents.

I. This Second Amendment amends Exhibit “B”, “Compensation” to include the cost for additional services.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the promises made and recited herein, the Parties do hereby enter into this Amendment which modifies and amends the Agreement as follows:

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1. AMENDMENT. The Agreement is hereby modified and amended as follows:

1.1 [TERM OF AGREEMENT]. Section 1(a) of the Agreement is hereby amended as follows:

Subject to the provisions of Section 21 “Termination of Agreement,” the Term of this Agreement is from the Effective Date through June 30, 2031.

1.2 [COMPENSATION]. Section 4(a) of the Agreement is hereby amended to increase the Not to Exceed Amount to One Hundred and Twenty-Five Thousand Dollars ($125,000.00) per City fiscal year.

1.3 [SCOPE OF SERVICES]. Exhibit “A” of the Agreement is hereby amended to include the following:

Annual Revenue Audits
HdL will conduct an annual revenue audit of each cannabis business to verify the accuracy of the revenue reported and remitted to the City during the review period and will recommend a tax adjustment should the audit reveal any variances in reported revenue. As part of the audit process, HdL will conduct a risk-based review of each business using our proprietary methodology, which was developed to specifically address the unique challenges associated with auditing the cannabis industry. Our methodology allows audit staff to cross-analyze multiple business records to identify reporting variances, discrepancies and outliers to produce the most accurate measure of gross receipts on behalf of the City. To initiate the process, the City shall provide HdL with a list of all licensed cannabis businesses subject to audit. HdL shall work with the City to determine the appropriate review period for each business and to develop a schedule for conducting all audits.

As the time for each audit approaches, HdL will prepare a notification letter informing the licensee of the impending audit and providing a list of all records and documentation the business is required to provide, including remote access to the business’s point-of-sale (POS) system where applicable. HdL recommends that the notification letter be sent by the City to communicate HdL’s authority to conduct the audit and to encourage cooperation by the business.

The full annual audit shall include:
• Review Point-of-Sale (POS) and/or accounting system reports • Review inventory system (subject to METRC data)
• Analyze and compare POS/accounting data with other available data sources, including:
o City cannabis tax returns
o State tax returns
o Federal tax returns
o METRC sales and inventory data
o CDTFA data
o Bank statements
o Sales receipts
o Other financial documents as available
• Identify any variances or over/under reporting
• Calculate any taxes or fees due to the City

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• Prepare and issue report
Where cannabis cultivation is taxed on a square-footage basis, the audit shall include one annual site inspection to verify compliance with maximum permitted canopy area. Square footage audits may also consider documented findings from inspections by the City, DCC or other agencies, where available. A business that holds multiple state cannabis licenses shall be considered a single business for audit purposes, provided that all licenses are held and operated under the same name, ownership, location, and a single tax ID number. Any variation may indicate separate business entities requiring separate audits. Any such determination shall be made on a case-by-case basis in consultation with the City. HdL will provide a draft audit report to the commercial cannabis business. The business will be given an appropriate opportunity to respond to the report or provide supplemental information to address any disagreement with the findings. HdL will review any additional documentation provided by the business and will adjust the tax/fee assessment as appropriate prior to issuing the final report to the City. Issuance of the final report constitutes completion of the audit. The cost for this service assumes a standard 12-month review period. The cost for a longer term shall be increased per each additional 6-month period (2 fiscal quarters).

Pricing available upon request. This cost also assumes reasonable cooperation from the licensee.

Noncooperation by the licensee may result in additional charges at HdL’s hourly rate, or in termination of the audit and potential enforcement action by the City. Any such action or additional charges would be determined in consultation with the City. The cost does not include any review or revision to the audit after the final report has been issued to the City, nor does it include any assistance with collections or enforcement of audit findings, administrative appeals, litigation, cannabis tax policy questions or guidance, or other services not directly associated with preparing the revenue audit report. Any such additional services requested by the City would subject to agreement by HdL and would be billed at HdL’s standard hourly rate.

Compliance Inspections
HdL will conduct one or more on-site compliance inspections annually, as requested by the City, for each permitted cannabis business to determine compliance with State and/or local laws. If HdL identifies any non-compliant activities, we will provide the City with a recommended appropriate action to address the deficiency and to ensure future compliance by the permittee.

The cost for these services includes all of the following:
• Notifying permittee of pending inspection
• On-site inspection to ensure that each business complies with all State and local laws and regulatory protocols for all of the following: o Inventory management o Cash handling procedures
o Access control
o Video surveillance
o Product safety
o Alarm system maintenance and safety
o Lock standards
o Packaging and labeling
o Waste management
o Transportation documentation
o Surveillance equipment maintenance

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o Occupational badges
o Business records
o Other items as necessary to ensure compliance with laws • Preparation of a draft report detailing the findings of the inspection and providing recommendations for improvement where needed. If the inspection identifies any violations of law or other non-compliance issues, then HdL will prepare a notice to comply as an included part of the report.
• All travel costs associated with the inspection, assuming a minimum of four inspections per day. If fewer than four inspections are requested, HdL will charge for travel based upon hourly rates, or a flat fee to be determined in consultation with City. • All phone, email and other communications involved in preparing for, scheduling and coordinating the inspections and providing the report. Facilities greater than 30,000 square feet will be subject to an additional cost at HdL’s hourly rate to account for the additional time involved in conducting inspections, documenting issues of non-compliance and preparing reports. HdL will notify the City in advance if additional hourly charges are necessary to complete the inspection. Issuance of the inspection report constitutes completion of this service. The cost for this service does not include any follow-up reinspection or review of any documents provided to address or contest any findings of noncompliance, nor does it include any assistance with administrative appeals, litigation, cannabis tax policy questions or guidance, or other services not directly associated with conducting the inspection. Any such additional services requested by the City would be subject to agreement by HdL and would be billed at HdL’s standard hourly rate.

Review Permit Renewal Documents
HdL shall review and evaluate all supporting documents for annual cannabis business permit renewals. The City shall notify HdL upon receipt of an application for a cannabis business permit renewal and shall forward all supporting documentation. HdL’s reviewers shall evaluate whether the forms and documents are complete and whether all necessary and requested information has been provided as required by the City. If any documents are missing or incomplete, the applicant shall be given an opportunity to submit supplemental information to address any deficiencies. HdL shall provide a report to the City noting whether all documentation was provided and noting any missing information that was not addressed by the applicant. Review of permit renewal documents shall be completed within 60 days of the HdL receiving all required supporting documentation, assuming reasonable cooperation by the applicant.

1.4 [COMPENSATION]. Exhibit “B” of the Agreement is hereby amended as follows:

Compensation for the Services shall not exceed One Hundred and Twenty-Five Thousand Dollars ($125,000.00) per City fiscal year.

Scope of Services Objectives
Estimated
Cost
Technical Assistance and Subject Matter Expertise $12,000*

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Quality Assurance Application Reviews $3,500
per application
Site Plan Evaluations $600
Pre-License Site Visits $2,000
Supplemental Background Checks
Cost paid directly to HdL by applicant
No charge to
City
Travel Hourly Rate Plus
Expenses **
Annual Revenue Audits
Assumes standard 12-month review period
$11,000
per audit
Compliance Inspections
One or more inspections per year, as requested by the City $2,600
per inspection
Review Permit Renewal Documents $900
per application
*Objective billed at hourly rate
**Or at a flat rate to be determined in consultation with the City All City costs may be fully recoverable from applicants or permittees

2. MANDATORY INVOICE INFORMATION/NOTICES.

Consultant shall notify the City in writing whenever it has reason to believe that the costs the Consultant expects to incur under this Agreement in the following sixty (60) days, when added to all costs previously incurred, will exceed eighty percent (80%) of the Not to Exceed Amount specified herein. As part of the notification, the Consultant shall provide the City with a revised estimate of the total cost of performing this Agreement.

On invoices submitted to the City, Consultant shall identify at the top of the first page, the Agreement’s not to exceed amount, the total amount billed to date, the services rendered during the billing period, and the amount due for the statement invoice for which reimbursement is sought in the statement invoice.

3. REMAINDER UNCHANGED. Except as specifically modified and amended in this Amendment, the Agreement remains in full force and effect and binding upon the Parties.

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4. INTEGRATION. This Amendment consists of pages 1 through 6, inclusive, which constitute the entire understanding and agreement of the Parties and supersedes all negotiations or previous agreements, including written or verbal communications between the Parties with respect to all or any part of the transaction discussed in this Amendment.

5. SEVERABILITY. If any portion of this Amendment is declared invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

6. INTEGRATION. This Amendment consists of pages 1 through 5, inclusive, which constitute the entire understanding and agreement of the Parties and supersedes all negotiations or previous agreements, including written or verbal communications between the Parties with respect to all or any part of the transaction discussed in this Amendment.

7. SEVERABILITY. If any portion of this Amendment is declared invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

8. EFFECTIVE DATE. This Amendment shall not become effective until the date it has been executed by the appropriate authorities of the City and Consultant.

9. APPLICABLE LAW. The laws of the State of California shall govern the interpretation and enforcement of this Amendment.

10. REFERENCES. All references to the Agreement include all their respective terms and provisions. All defined terms utilized in this Amendment have the same meaning as provided in the Agreement, unless expressly stated to the contrary in this Amendment. [SIGNATURE PAGE FOLLOWS]

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00091753.1 Page | 7
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to the Agreement on the date and year first written above.

CITY OF HEMET
___________________________
Mark Prestwich
City Manager
ATTEST:

CITY CLERK
By: ___________________________
APPROVED AS TO FORM:

CITY ATTORNEY
By: ____________________________

CONSULTANT
By:

Its:

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City of Hemet
Cannabis Management Services
January 30, 2026

SUBMITTED BY
HdL Companies
120 S. State College Blvd., Ste 200
Brea, CA 92821
hdlcompanies.com

CONTACT
Matt Eaton
T: 714.879.5000
E: [email protected]

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1 Proposal for Cannabis Management Services
for the City of Hemet January 30, 2026

TABLE OF CONTENTS
I. COVER LETTER ....................................................................................................................................... 2 II. PROPOSED SCOPE OF SERVICES ............................................................................................................ 3 III. COST ..................................................................................................................................................... 10 IV. OPTIONAL SERVICES ............................................................................................................................ 12 V. EXPERIENCE AND RESOURCES ............................................................................................................. 13 VI. REFERENCES ......................................................................................................................................... 16

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2 Proposal for Cannabis Management Services
for the City of Hemet January 30, 2026
I. COVER LETTER
January 30, 2026
Tiffany Barnett
Administrative Services Director
City of Hemet
445 E. Florida Ave.

Hemet, CA 92543
Re: Proposal for Cannabis Management Services
Dear Ms. Barnett,
Thank you for the opportunity to submit this proposal for cannabis management services for the City of Hemet. The enclosed scope of services provides a comprehensive program to provide cost recovery fee analysis, site plan evaluations, pre-license site visits, background checks, regulatory compliance inspections, permit renewal reviews, and annual revenue audits of licensed cannabis businesses within the City. This proposal also includes additional hours of general subject matter expertise to be used as needed or requested by the City.

HdL is recognized as the industry leader in the development, implementation and enforcement of cannabis management programs for local governments in California. We have partnered with over 175 California cities and counties on cannabis-related programs, including ordinance development and review, community outreach and education, merit-based application and permitting processes, cost recovery studies, compliance inspections, revenue audits, fiscal analyses and law enforcement training.

Our cannabis team has unmatched expertise, with more than 80 years’ combined experience in the development, implementation and enforcement of cannabis regulatory and tax programs.

Our team members have conducted over 11,000 cannabis compliance inspections and audits in California, Colorado and Nevada, and have reviewed, scored and processed over 1,700 cannabis business applications in the last six years in California. HdL Companies works for the benefit of public agencies and has no private-sector clients in the cannabis industry.

We look forward to the opportunity to partner with the City of Hemet in developing a strategy which meets your program needs. If you have any questions or require additional information, please feel free to contact me by email at [email protected] or Matt Eaton at [email protected] or by phone at 714.879.5000.

Sincerely,
Andy Nickerson
President, HdL Companies

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3 Proposal for Cannabis Management Services
for the City of Hemet January 30, 2026
II. PROPOSED SCOPE OF SERVICES
Objective 1: Cost Recovery Fee Analysis
HdL will conduct a fiscal analysis to determine appropriate application and permitting fees. The analysis shall consider the costs of all City staff time, overhead, fringe benefits, consultants and any other services associated with each step of the cannabis permitting and regulatory process, including both initial application processing and annual permit renewals. HdL staff has experience developing cannabis regulatory fees and doing a “fit gap” analysis of staff responsibilities and time allotted to this program to establish appropriate fees for the City’s level of oversight and enforcement of the regulatory process.

Objective 2: Supplemental Background Checks
HdL shall provide background checks of all owners, principals, managers and/or employees of cannabis businesses. Our background checks supplement the State-required Live Scan fingerprint check, which will only disclose Department of Justice (DOJ) records regarding arrests or convictions. California’s licensing agencies are only allowed to consider convictions for certain “red line” offenses such as serious or violent felonies, or certain felonies involving fraud, minors or drug trafficking, as automatic disqualifiers before granting or denying a license.

Our supplemental background checks expand upon the Live Scan information to identify other factors that may be required by the local ordinance. These considerations may include other felony or misdemeanor convictions, arrest records, civil judgements, restraining orders, the terrorist screening database, the national sex offender registry, delinquent child support payments, bankruptcies, employment and credit records, and more. Our search includes up to 5 variations on the subject’s name and will alert if additional aliases are found which might warrant further investigation.

Our comprehensive background process checks the subject’s name and social security number against over 200 million datasets nationwide, including all of the following:
 7 yr. unlimited county courts and criminal records search  Social Security, name and address comparison
 DMV search
 National Criminal Court report
 National Sex offender registry
 Federal criminal history
 State Department of Public Safety
 State Department of Corrections
 Terror watch list
 Bankruptcy, lien and judgments
 Delinquent child support payments
 Employment credit report
o Personal information comparison

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o Address comparison
o Employment comparison
o Public records search
Any felony convictions that would be automatic disqualifiers pursuant to B&P 26057 (Violent and Serious Felony Convictions) must be confirmed through the Live Scan process. The degree to which other records may be used to inform the approval or renewal of a local business license or permit is subject to local ordinance requirements.

HdL offers separate rates for owners, principals or managers of cannabis businesses and for regular employees or line staff. We also offer a lower rate for annual renewals after the initial background check has been completed. Our rates include an HdL-designed employee identification badge with the city or county logo which meets all State regulatory requirements.

HdL provides an online portal for applicants to submit their application and authorization for background checks and all necessary documentation. Applicants provide their payment directly to HdL through the portal, so there is no cost to the City.

Objective 3: Site and Security Plan Evaluations
HdL shall review the premises diagram and security plan for each commercial cannabis business to assist the City’s approval of any building plans prior to initiating any tenant improvements or beginning business operations. The review shall ensure that the proposed site and security improvements address all cannabis-related interior and exterior physical site requirements and operational security requirements including entrances and exits, product and customer flow, limited access areas, locks and alarm systems, video surveillance systems, safes, signage, and other criteria.

HdL shall provide the City with a report identifying any deficiencies that need to be addressed and detailing any recommended changes to the site plan prior to beginning site improvements.

Objective 4: Pre-License Site Visits
HdL shall conduct a site visit of each cannabis business prior to issuance of a certificate of occupancy. Site visits shall complement the final building inspection by verifying all interior and exterior physical site security requirements have been addressed in accordance with the application and all State and local requirements as shown on the premises diagram. Site visits Background Checks Owner, principal
or manager
Employee or
line staff
Initial background check $300 $125
Annual renewal $125 $100
Reissue lost or stolen badge $15 $15
Renewals and background checks for employees include a lesser level of investigation.

Prices valid as of the date of this proposal and subject to change without notice.

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shall examine all entrances and exits, limited access areas, locks and alarm systems, access control procedures, surveillance camera locations, safes and cash management procedures, signage, operational protocols and administrative privileges associated with the license type(s) being sought, and other requirements as necessary. The HdL inspector may be accompanied on the site inspection by the City’s building inspector or representatives from the Police Department and Fire Department, if desired by the City.

The cost for this service includes a secondary review of the premises diagram noting any revisions pursuant to HdL’s recommendations, coordination and arrangements with the business and other agencies, site visit, post-inspection report, all travel costs and any follow up.

This cost assumes 10-days advance notice for scheduling and travel arrangements. A shorter lead time may incur additional travel charges.

Objective 5: Annual Revenue Audits
HdL will conduct an annual revenue audit of each cannabis business to verify the accuracy of the revenue reported and remitted to the City during the review period and will recommend a tax adjustment should the audit reveal any variances in reported revenue. As part of the audit process, HdL will conduct a risk-based review of each business using our proprietary methodology, which was developed to specifically address the unique challenges associated with auditing the cannabis industry. Our methodology allows audit staff to cross-analyze multiple business records to identify reporting variances, discrepancies and outliers to produce the most accurate measure of gross receipts on behalf of the City.

To initiate the process, the City shall provide HdL with a list of all licensed cannabis businesses subject to audit. HdL shall work with the City to determine the appropriate review period for each business and to develop a schedule for conducting all audits. As the time for each audit approaches, HdL will prepare a notification letter informing the licensee of the impending audit and providing a list of all records and documentation the business is required to provide, including remote access to the business’s point-of-sale (POS) system where applicable. HdL recommends that the notification letter be sent by the City to communicate HdL’s authority to conduct the audit and to encourage cooperation by the business.

The full annual audit shall include:
 Review Point-of-Sale (POS) and/or accounting system reports  Review inventory system (subject to METRC data)
 Analyze and compare POS/accounting data with other available data sources, including:
o City cannabis tax returns
o State tax returns
o Federal tax returns
o METRC sales and inventory data
o CDTFA data
o Bank statements
o Sales receipts
o Other financial documents as available

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 Identify any variances or over/under reporting
 Calculate any taxes or fees due to the City
 Prepare and issue report
Where cannabis cultivation is taxed on a square-footage basis, the audit shall include one annual site inspection to verify compliance with maximum permitted canopy area. Square footage audits may also consider documented findings from inspections by the City, DCC or other agencies, where available.

A business that holds multiple state cannabis licenses shall be considered a single business for audit purposes, provided that all licenses are held and operated under the same name, ownership, location, and a single tax ID number. Any variation may indicate separate business entities requiring separate audits. Any such determination shall be made on a case-by-case basis in consultation with the City.

HdL will provide a draft audit report to the commercial cannabis business. The business will be given an appropriate opportunity to respond to the report or provide supplemental information to address any disagreement with the findings. HdL will review any additional documentation provided by the business and will adjust the tax/fee assessment as appropriate prior to issuing the final report to the City. Issuance of the final report constitutes completion of the audit.

The cost for this service assumes a standard 12-month review period. The cost for a longer term shall be increased per each additional 6-month period (2 fiscal quarters). Pricing available upon request. This cost also assumes reasonable cooperation from the licensee. Noncooperation by the licensee may result in additional charges at HdL’s hourly rate, or in termination of the audit and potential enforcement action by the City. Any such action or additional charges would be determined in consultation with the City.

The cost does not include any review or revision to the audit after the final report has been issued to the City, nor does it include any assistance with collections or enforcement of audit findings, administrative appeals, litigation, cannabis tax policy questions or guidance, or other services not directly associated with preparing the revenue audit report. Any such additional services requested by the City would subject to agreement by HdL and would be billed at HdL’s standard hourly rate.

Objective 6: Compliance Inspections
HdL will conduct one or more on-site compliance inspections annually, as requested by the City, for each permitted cannabis business to determine compliance with State and/or local laws. If HdL identifies any non-compliant activities, we will provide the City with a recommended appropriate action to address the deficiency and to ensure future compliance by the permittee.

The cost for these services includes all of the following:
 Notifying permittee of pending inspection
 On-site inspection to ensure that each business complies with all State and local laws and regulatory protocols for all of the following:

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o Inventory management
o Cash handling procedures
o Access control
o Video surveillance
o Product safety
o Alarm system maintenance and safety
o Lock standards
o Packaging and labeling
o Waste management
o Transportation documentation
o Surveillance equipment maintenance
o Occupational badges
o Business records
o Other items as necessary to ensure compliance with laws  Preparation of a draft report detailing the findings of the inspection and providing recommendations for improvement where needed. If the inspection identifies any violations of law or other non-compliance issues, then HdL will prepare a notice to comply as an included part of the report.
 All travel costs associated with the inspection, assuming a minimum of four inspections per day. If fewer than four inspections are requested, HdL will charge for travel based upon hourly rates, or a flat fee to be determined in consultation with City.  All phone, email and other communications involved in preparing for, scheduling and coordinating the inspections and providing the report.

Facilities greater than 30,000 square feet will be subject to an additional cost at HdL’s hourly rate to account for the additional time involved in conducting inspections, documenting issues of non-compliance and preparing reports. HdL will notify the City in advance if additional hourly charges are necessary to complete the inspection.

Issuance of the inspection report constitutes completion of this service. The cost for this service does not include any follow-up re-inspection or review of any documents provided to address or contest any findings of non-compliance, nor does it include any assistance with administrative appeals, litigation, cannabis tax policy questions or guidance, or other services not directly associated with conducting the inspection. Any such additional services requested by the City would be subject to agreement by HdL and would be billed at HdL’s standard hourly rate.

Objective 7: Technical Assistance and Subject Matter Expertise HdL will provide up to 20 hours of general consulting to be utilized on an as-needed basis at the City’s request. Such assistance may include technical assistance, subject matter expertise, research and analysis, education, monitoring of changes to State laws and regulations, participation in conference calls, responding to staff inquires via phone and email, reviewing staff reports to the City Council, assisting with responses to inquiries from the public, or other issues as mutually agreed to by the City and HdL. Any such assistance will be billed at HdL’s

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8 Proposal for Cannabis Management Services
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standard hourly rate. These additional hours may also be used to provide any other standard cannabis services that HdL offers, which will be billed at the standard rate for that service.

Objective 8: Quality Assurance Permit Review
HdL staff shall screen all forms and documents submitted by applicants for cannabis business permits to ensure that they are complete based upon an objective checklist of required documentation. Once all required documents have been provided, HdL shall conduct a full review to ensure that they provide all required information and address all criteria established by the City. HdL’s reviewers shall evaluate whether the forms and documents provide all information necessary to meet the City’s requirements in each category. Applicants will be notified of any missing documents or information and will be given an opportunity to submit any missing information. Reviews shall be in conformance with the objective criteria established by the City’s regulatory ordinance and application procedures guidelines.

Each application evaluation shall be completed within 60 days of the City receiving the full application, assuming reasonable cooperation by the applicant. HdL will provide the City with a report for each application stating whether or not it meets all requirements and identifying any deficiencies or missing information that were not subsequently addressed by the applicant. The report may also include comments, observations or recommendations where warranted. The report will not include any numerical score nor will it provide any specific recommendation as to whether or not the business should be issued a license. Any such determination shall be solely at the discretion of the City.

The cost for this service may vary depending upon the specifics of the City’s application process.

Any change in cost shall be mutually agreed upon in consultation with the City prior to performance of the service. HdL’s participation in any application process shall require that the City agree to indemnify HdL from and against any and all claims resulting or arising from City’s use of the work products provided under the agreement. We have provided our preferred indemnification language below:

City shall indemnify, hold harmless, and defend Consultant (including its officers, agents and employees) from and against any and all claims (including all litigation, demands, damages, liabilities, costs, and expenses, and including court costs and attorney’s fees) resulting or arising from City’s use of the work products provided by Consultant under this Agreement.

Objective 9: Review Permit Renewal Documents
HdL shall review and evaluate all supporting documents for annual cannabis business permit renewals. The City shall notify HdL upon receipt of an application for a cannabis business permit renewal and shall forward all supporting documentation. HdL’s reviewers shall evaluate whether the forms and documents are complete and whether all necessary and requested information has been provided as required by the City. If any documents are missing or incomplete, the applicant shall be given an opportunity to submit supplemental information to address any deficiencies.

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HdL shall provide a report to the City noting whether all documentation was provided and noting any missing information that was not addressed by the applicant. Review of permit renewal documents shall be completed within 60 days of the HdL receiving all required supporting documentation, assuming reasonable cooperation by the applicant.

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10 Proposal for Cannabis Management Services
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III. COST
This proposal does not include any additional services that are not specifically enumerated herein. The proposal assumes that HdL will not be a part of any enforcement action, appeal, arbitration, or civil litigation resulting from the findings of an inspection and/or audit. Any such additional reports, documentation or assistance that may be required would be in addition to the costs shown in the table below and shall be billed at HdL’s hourly rate. This includes assistance with administrative hearings and/or civil litigation involving cannabis applicants or licensees.

Prices are valid for 90 days from the date of this proposal to allow time for consideration and negotiating a service agreement. Once under contract, prices shall be honored for the initial term of the agreement, with extensions subject to mutually agreeable pricing.

Scope of Service Objectives Estimated
Cost
Objective 1: Cost Recovery Fee Analysis
Assumes up to 40 hours at $300/hr (billed at hourly rate) $12,0001
Objective 2: Supplemental Background Checks
Cost paid directly to HdL by applicant
No charge
to City
Objective 3: Site and Security Plan Evaluations $600
Objective 4: Pre-License Site Visits $2,000
Objective 5: Annual Revenue Audits
Assumes standard 12-month review period
$11,000
per audit
Objective 6: Compliance Inspections
One or more inspections per year, as requested by the City $2,600
per inspection
Objective 7: Technical Assistance and Subject Matter Expertise As needed by the City, up to 20 hours at $300 p/hour
$6,000
Objective 8: Quality Assurance Permit Review $3,500
per application
Objective 9: Review Permit Renewal Documents $900
per application
Travel: As needed for site visits or in-person meetings Hourly Rate2 Plus Expenses

TOTAL NOT TO EXCEED TBD

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Prices Based on Hourly Rates
The prices in this proposal are calculated based on the hourly rates for each HdL staff member and the anticipated time involved. Any additional services requested by the client that are not specifically described in this proposal would be billed at HdL’s standard hourly rate of $300 per hour. HdL will not exceed the maximum estimated number of hours without first notifying the City and receiving written approval in advance.

Conflicts of Interest and Non-Disclosure
HdL Companies works for the benefit of public agencies and has no private-sector clients in the cannabis industry. All cannabis business information will be kept confidential by HdL and will not be shared internally beyond those HdL employees who are required to have access for purposes of conducting the work contemplated herein, or for administrative purposes as necessary.

Drafts and Final Work Products
All work products assume one initial draft for review and comment, one iterative draft to incorporate any desired changes, and one final draft for presentation or publication. Additional drafts requested by the client may result in additional charges at HdL’s hourly rate.

Delays
The ability to perform and complete our engagement consistent with the estimated fee included above depends upon the quality of client and business records and the timeliness of client and business personnel in providing information and responding to our requests. To assist with this process, HdL will provide itemized requests that identify the information clients and businesses will need to prepare and provide before and during our engagement, as well as the requested delivery date for those items. A lack of preparation, including not providing this information in an accurate and timely manner, unanticipated audit efforts, and/or untimely assistance by client and business personnel may result in an increase in our fees, billing our fees up front, and/or a delay in the completion of our engagement.

Cancellation Fee
In the event that the Client cancels any of the services described after that service has been initiated, HdL shall bill for time and expenses incurred up to that point. If a site visit or inspection is cancelled with less than 24 hours-notice, the service will be billed at the full cost. 1 Objective billed at hourly rate
2 Or at a flat rate to be determined in consultation with the City All City costs may be fully recoverable from applicants or permittees

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IV. OPTIONAL SERVICES
Optional services are described here for information purposes, only. No additional services will be provided without the expressed mutual agreement of both parties.

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V. EXPERIENCE AND RESOURCES
Company Profile
Founded in 1983, HdL is a consortium of three companies established to maximize local government revenues by providing audit, compliance, economic development, consulting services and software products. Our audit and consulting services include sales, use and transaction taxes, property taxes, transient occupancy taxes, and a Cannabis Management Program. The firm also provides a variety of enterprise software processing tools for business licensing, code enforcement, animal control, building permits and tracking/billing of false alarms.

HdL’s systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 600 agencies in six states. The firm currently serves 49 counties, 311 cities and 132 transactions tax districts in California.

HdL’s key staff has extensive experience serving local government and many have previously held positions in city management, finance, planning, economic development or revenue collection. HdL is a Corporate Partner of the League of California Cities and California State Association of Counties and works extensively with the County Auditor’s Association of California, California Society of Municipal Finance Officers (CSMFO) and California Municipal Revenue and Tax Association (CMRTA) on anticipation and planning of programs to strengthen local government revenues.

This close understanding of local government needs coupled with extensive databases and advanced methodology provides for the most relevant, productive and responsive revenue recovery; forecasting; and economic services available.

Our team of professionals has over 80 years of direct experience establishing and implementing cannabis regulatory and taxation programs, including outreach and education, research and analysis, ordinance development, application processes, cost recovery fees, structuring cannabis business taxes, regulatory compliance, financial audits, and law enforcement training.

Our team has conducted over 11,000 cannabis compliance inspections and investigations in California, Colorado and Nevada.

Key Personnel
Matt Eaton; Director of Cannabis Services
Matt Eaton is the Director of Cannabis Services at HdL and plays a critical role in implementing the Cannabis Compliance Program for local agencies. Prior to joining the firm, he was a progressive law enforcement professional with 30 years’ experience conducting criminal/regulatory investigations, and corporate/individual background investigations.

While working as a Supervisory Investigator at the Colorado Department of Revenue in the Marijuana Enforcement Division (MED), Matt managed criminal investigators and civilian staff in the Denver Metro and Longmont field offices. During his six-year tenure at the MED, he conducted approximately 10,000 criminal investigations and compliance reviews, including regulatory and financial investigations. He is a subject matter expert on track and trace systems

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and understands the complexity of reviewing data to ensure businesses are in compliance with state and local regulations. Matt was responsible for planning, developing and implementing report and field inspection protocols for the agency. He also played an instrumental role in recommending changes to current regulations and identifying essential language for new legislation in Colorado. Matt is well known for his ability to maintain working relationships with cannabis industry leaders and external stakeholders in resolving issues.

Matt received his Bachelor of Science Degree from Biola University and maintained Police Officer Service Training (POST) certification for over 30 years in California and Colorado. He has also served as an adjunct instructor teaching law enforcement principle related to criminology, correctional processes, procedural law, interviews, interrogations and criminal evidence at AIMS Community College in Greeley, Colorado.

Mark Lovelace; Senior Policy Advisor
Mark Lovelace has 23 years of broad experience in public policy, community engagement and advocacy and is recognized as a leader in advancing the statewide discussion of medical and recreational cannabis as a legitimate policy issue in California. Mark served on the Humboldt County Board of Supervisors from 2009 through 2016 where he was instrumental in developing a comprehensive approach to regulating cannabis, including a voter-approved tax on commercial cultivation and an innovative track and trace pilot program. Mark established and co-chaired the Cannabis Working Group for the California State Association of Counties (CSAC) and helped draft CSAC’s cannabis legislative platform.

Mark has worked extensively with public agencies and statewide organizations on cannabis issues and has led numerous presentations, workshops and panel discussions. Prior to his time on the Board, he worked for many years as a respected advocate on land use, planning, development, resource management and environmental issues. Mark received his Bachelor of Science degree in Industrial Design from San Jose State University.

Elizabeth Eumurian; Audit Manager
Elizabeth Eumurian manages the HdL cannabis audit team. In her role she oversees the development and refining of HdL's proprietary audit methodology to better identify reporting variances, discrepancies and outliers, and to ensure audit accuracy and consistency. She also reviews audit reports, evaluates cannabis business financial information and assists with special projects. Before becoming manager, Elizabeth conducted cannabis audits for HdL.

Elizabeth previously worked as a senior auditor in the entertainment industry. In this role, she executed testing procedures for targeted audit programs, analyzed findings and prepared audit and compliance reports. She also has experience working for a large financial institution analyzing data for reporting anomalies and performing internal audits.

Elizabeth earned her Bachelor of Arts degree from California State University Fullerton and holds a certificate in CannaBusiness from Oaksterdam University.

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Brad Schneider; Compliance Manager
Brad Schneider manages HdL’s team of cannabis compliance inspectors to ensure that licensed cannabis businesses are operating within state law and complying with all of their obligations under the terms of their local permit. He oversees the team to ensure that all inspections are conducted on a timely schedule in coordination with the local jurisdiction and that all reports are clear and fully-documented.

Brad brings 30 years of experience in law enforcement where he worked as a police officer, training officer, detective, background investigator and Sergeant. Following his law enforcement career, he worked in business development in the aviation industry where he managed contracts with state and local government agencies. Brad has broad experience in background investigations, regulatory compliance from both the public and private sector, ensuring alignment with industry regulations and standards and directing training, safety programs and operational procedures. Brad holds a Bachelor of Science degree in Business Management.

Kristi Lervold; Compliance Administrator
Kristi is the Compliance Administrator for HdL’s cannabis team. In this role she conducts prelicense site visits, compliance inspections and background checks while also supporting the cannabis team members, coordinating internal processes, and assisting with client requests, contracts, billing reconciliation and invoicing. Kristi’s 18-year career includes ten years as the administrative assistant to HdL’s CFO, handling various operational responsibilities and supporting financial functions, as well as experience in the occupational health industry, facilitating services for federal, state, and local government clients. Kristi holds a Bachelor’s of Science degree in Business Management with a minor in Business Administration.

Additional Cannabis Team Staff
HdL’s Key Personnel identified here are assisted by a team of 8 additional cannabis specialists who conduct compliance inspections, perform revenue audits, assist with background checks, and carry out other tasks as assigned.

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VI. REFERENCES
City of Maywood
Jennifer Vasquez
City Manager
Phone: 323.562.5721
Email: [email protected]
City of Perris
Matthew Schenk, CPA
Director of Finance
Phone: 951.973. 4610 Ext. 352
Email: [email protected]
City of Moreno Valley
Dena Heald
Chief Financial Officer/City Treasurer
Phone: 951.413.3027
Email: [email protected]
County of San Luis Obispo
Kari Lekvold, CPA
Internal Audit Division
Phone: 805.781.4846
Email: [email protected]
City of Redwood City
Alex Khojikian
Deputy City Manager
Phone: 650.780.7302
Email: [email protected]

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City of Hemet
City Council Meeting

STAFF REPORT
Meeting: City Council Meeting - Mar 10 2026
Department: Police Department
Submitted by: Mark Prestwich, City Manager
Josiah Douglas, Lieutenant;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:

A Resolution of the City Council of the City of Hemet, Adopting a Policy for the Expedited Settlement of Claims Arising from Law Enforcement Operations
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 “Expedited Settlement of Claims Arising from Law Enforcement Operations” policy and authorizing the City Manager to implement and enforce the policy.

BACKGROUND:

The City of Hemet periodically receives claims arising from law enforcement operations conducted by the Hemet Police Department. These claims may involve allegations related to arrests, searches, use of force, or other actions taken by department personnel in the performance of official duties.

Historically, the review and resolution of such claims has required coordination among the Police Department, City Manager’s Office, City Attorney, and Insurance Administers, which can result in delays even when claims are minor in scope or clearly appropriate for early resolution. Prolonged claim processing can increase administrative burden, delay closure for claimants, and potentially expose the City to increased legal costs.

To address these concerns, staff has developed a formal policy that establishes defined settlement authority levels for Police Command Staff, the Chief of Police, and the City Manager, while preserving appropriate oversight, documentation, and reporting requirements.

ANALYSIS:

The recommended policy provides a structured and transparent framework for resolving qualifying law enforcement-related claims in a timely and fiscally responsible manner. It authorizes any Police

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Captain and/or Lieutenant to resolve claims up to $5,000, allows the Chief of Police to settle claims up to $10,000, and permits settlements up to $25,000 with City Manager approval following consultation with the City Attorney.

By clearly defining authority thresholds and procedures, the policy promotes consistency, accountability, and risk management while reducing unnecessary delays in claim resolution. The policy also includes safeguards such as mandatory documentation, reporting to the City Manager and City Attorney, and limitations on non-monetary settlements or policy-driven remedies.

Adoption of this policy aligns with the City Council’s interest in efficient governance, fiscal oversight, and minimizing potential liability exposure, while ensuring that appropriate checks and balances remain in place.

DISCUSSION:

The recommended policy creates a clear and structured framework for resolving certain law enforcement-related claims efficiently while maintaining accountability and transparency.

Under the policy:
 Designated Police Command Staff may negotiate and settle claims up to $5,000.  The Chief of Police may settle claims up to $10,000.
 Claims exceeding $10,000 but not more than $25,000 require written approval from the City Manager following consultation with the City Attorney.

The policy includes safeguards requiring thorough claim review, documentation of all settlements, reporting to the City Manager and City Attorney, and formal record retention. It also expressly excludes non-monetary settlements or remedies that would require policy changes, which must be referred to the City Attorney.

By defining authority thresholds and procedures, the policy improves operational efficiency while preserving oversight. It allows the City to resolve appropriate claims in a timely manner, minimize administrative delays, and potentially reduce litigation costs and liability exposure.

PREVIOUS COUNCIL ACTION:

None.

STRATEGIC PLAN INTEGRATION:

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

Objective 1: Operate in a financially sustainable manner.

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

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

FISCAL IMPACT:

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There is no fiscal impact associated with this item. Claims related to law enforcement operations are reviewed and paid, if approved, under current processes regardless of this policy. This action simply changes how claims are processed and who has authority to approve them; it does not increase costs or authorize new spending. Any payments will continue to be made from existing budgeted funds.

ALTERNATIVE(S):

1. Do Not Adopt the Resolution. The City may continue processing all claims through existing procedures without defined delegated authority. This may result in longer processing times and increased administrative burden.

2. Modify the Proposed Policy. The City Council may direct the City Manager to revise settlement thresholds, reporting requirements, or procedural safeguards prior to adoption.

ATTACHMENT(S):

Attachment 1: Resolution - Police Settlements

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CITY COUNCIL RESOLUTUION NO. 2026-XXX

CITY OF HEMET
Hemet, California
RESOLUTION NO. 2026-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA, APPROVING THE POLICY

FOR EXPEDITED SETTLEMENT OF CLAIMS ARISING

FROM LAW ENFORCEMENT OPERATIONS
WHEREAS, the City of Hemet is committed to efficiently managing claims arising from law enforcement operations to protect the interests of the City and its residents; and
WHEREAS, the Hemet Police Department, in its operations, encounters situations where claims may be made against the City of Hemet, necessitating timely and effective resolution; and
WHEREAS, the City Council of the City of Hemet recognizes the importance of empowering the Hemet Police Department’s leadership to resolve such claims within certain financial limits to ensure a prompt resolution and minimize potential liabilities; and
WHEREAS, the City Council desires to establish clear guidelines and authority for the City Manager, Police Chief, and Police Command Staff to settle claims on behalf of the City within defined parameters; and
WHEREAS, the recommended policy includes procedures for the review, documentation, and reporting of settlements to maintain transparency and accountability in the management of claims; and
WHEREAS, the City Council has reviewed the recommended policy and finds that it is in the best interest of the City of Hemet to adopt such a policy to ensure efficient and effective handling of claims.

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CITY COUNCIL RESOLUTUION NO. 2026-XXX

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Findings and Incorporation. The City Council hereby finds that the above recitals are true and correct and incorporates the recitals into the body of this Resolution.

SECTION 2. City Council Actions.
(A) Approval of Policy. The City Council hereby approves and adopts the "Expedited Settlement of Claims Arising from Law Enforcement Operations" policy as attached hereto as Exhibit A.
(B) Authorization. The City Council authorizes the City Manager to implement and enforce the policy. Any amendments to the policy shall require approval by the City Council.

SECTION 3. Effective Date.

This Resolution shall take effect immediately upon adoption.

PASSED, APPROVED AND ADOPTED this ____ day of ________ 2026. ____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Jane Halstead, Interim City Clerk

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CITY COUNCIL RESOLUTUION NO. 2026-XXX
State of California )
County of Riverside )
City of Hemet )
I, Jane Halstead, Intriem City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the __ day of ________, 2026, and was passed by the following vote:

AYES: Council Member:

NOES: Council Member:

ABSTAIN: Council Member:

ABSENT: Council Member:
_________________________________
Jane Halstead, Interim City Clerk

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CITY OF HEMET
Policy Title: Expedited Settlement of Claims Arising from Law Enforcement Operations Effective Date:

Review Date:

Issued by: City Council
I. Purpose.

The purpose of this policy is to establish a clear and efficient process for the expedited settlement of claims against the City of Hemet that arise from law enforcement operations. This policy grants authority to the City Manager, Police Chief, and Police Command Staff to settle claims within specified limits, with the goal of minimizing potential liabilities and ensuring timely resolution.

II. Scope.

This policy applies to all claims arising from actions or omissions by the Hemet Police Department, its officials, officers, employees, agents and volunteers during the performance of official duties. It outlines the authority, procedures, and limitations for settling such claims.

III. Definitions.

Claim: A formal request for compensation or remedy submitted to the City of Hemet, alleging harm or loss caused by the actions of Hemet Police Department personnel.

Law Enforcement Operations: Any activity conducted by Hemet Police Department personnel as part of their official duties, including but not limited to arrests, searches, seizures, and the use of force.

Expedited Settlement: The process of resolving a claim quickly and efficiently through agreement, without prolonged litigation or legal proceedings.

IV. Authority.

Police Command Staff:

Any Police Captain and/or Lieutenant that has been designated in writing as authorized to resolve claims under this policy by the Police Chief shall be authorized to negotiate and settle claims up to $5,000, provided that the settlement is deemed to be in the best interest of the City of Hemet and is consistent with this policy.

For claims requiring settlement amounts greater than $5,000 but not exceeding $10,000, the Police Command Staff must obtain written approval from the Chief of Police before finalizing the settlement.

Chief of Police:

The Chief of Police is authorized to settle claims up to $10,000.

For claims where the proposed settlement exceeds $10,000 but not exceeding $25,000, the Chief of Police must obtain written approval from the City Manager after consultation with the City Attorney before finalizing the settlement.

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V. Procedures.

Initial Claim Review:

Upon receipt of a claim, the Police Command Staff shall conduct a thorough review of the facts and circumstances surrounding the claim, including relevant reports, witness statements, and other pertinent documentation. The Police Command Staff shall assess the validity of the claim and determine the potential liability of the Hemet Police Department.

Settlement Negotiation:

If a claim is determined to be valid and within the authorized settlement limits, the Police Command Staff or Chief of Police may engage in settlement negotiations with the claimant. Negotiations should aim to reach a fair and equitable resolution, balancing the interests of the claimant and the City of Hemet.

Documentation and Record-Keeping:

All settlements must be fully documented, including a detailed description of the claim, the amount settled, and the rationale for the settlement. A copy of the settlement documentation shall be forwarded to the City Manager, City Attorney, and City Clerk for inclusion in the official records and any necessary legal review.

Reporting Requirements:

The Chief of Police shall report all settlements to the City Manager and City Attorney.

The report shall include the nature of each claim, the settlement amount, and any relevant details.

VI. Limitations and Exclusions.

Non-Monetary Claims:

This policy does not authorize the settlement of claims that involve non-monetary remedies or require changes to Hemet Police Department policies or procedures. Such claims shall be referred to the City Attorney for further handling.

Claims Exceeding Authority Limits:

Any claim exceeding the financial authority granted by this policy must be referred to the City Manager and City Clerk for processing.

Confidentiality:

All settlements are to be treated with strict confidentiality. Information regarding the settlement should only be disclosed to authorized personnel or as required by law.

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City of Hemet
City Council Meeting

STAFF REPORT
Meeting: City Council Meeting - Mar 10 2026
Department: Information Technology
Submitted by: Mark Prestwich, City Manager
Kathye Caines, Library Manager, Scott Underwood, Information Technology Manager;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:

A Resolution of the City Council of the City of Hemet, California, for the Approval of the Public Library Server and Storage Replacement by Executing an Agreement with SHI International Corporation for a New Hyper-Converged Infrastructure (HCI) System, Veeam Backup Software, Networking Equipment and Uninterruptible Power Supply (UPS) in the amount of $463,945.39; Approve a Five Percent Contingency in the Amount of $23,197.27; Authorize the Administrative Services Director to Record a Supplemental Appropriation in the Amount of $487,142.66 in Fund 680 Information Technology; and Authorize the City Manager to Execute All Agreements, Purchase Orders, and all Other Supporting Documents Related to these Agreements
RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, for the Approval of the Public Library Server and Storage Replacement by Executing an Agreement with SHI International Corporation for a New Hyper-Converged Infrastructure (HCI) System, Veeam Backup Software, Networking Equipment and Uninterruptible Power Supply (UPS) in the amount of $463,945.39; Approve a Five Percent Contingency in the Amount of $23,197.27; Authorize the Administrative Services Director to Record a Supplemental Appropriation in the Amount of $487,142.66 in Fund 680 Information Technology; and Authorize the City Manager to Execute All Agreements, Purchase Orders, and all Other Supporting Documents Related to these Agreements.

BACKGROUND:

The Hemet Public Library utilizes a single Hewlett Packard Enterprise (HPE) ProLiant server to support its infrastructure and operations. This server was purchased in January 2019. For file backup and restoration, this server relies on Veeam Backup software and a separate networkattached storage appliance (NAS) for backup storage.

After 7 years of continuous operation, these systems have exceeded their life expectancy, support, warranty, and licensing. With their support and warranty exceeded, an otherwise normal hardware

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Hemet City CouncilMarch 10, 2026

Hemet City Council
March 10, 2026