Hemet City Council
April 28, 2026

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4921-6384-5994.1 Page 1 of 18

CITY OF HEMET KITCHEN GRANT PROGRAM

GRANT AGREEMENT

CITY OF HEMET

KITCHEN GRANT PROGRAM
THIS GRANT AGREEMENT is hereby entered into this day of (“Effective Date”), by and between the City of Hemet, a California municipal corporation (hereinafter referred to as “City”) and the following designated OWNER and/or LESSEE (collectively as “Grantee(s)”):

Owner Name:

Lessee’s Name:

Name of Business
(“Business”):

Address of Property to be
Improved:

RECITALS
A. As a way to revitalize the downtown of the City of Hemet and foster a thriving culinary scene, the City has created the Kitchen Grant Program (“Program”).

B. The Program is administered by the City with the advice of the City Council, is funded by the City General Fund for the purpose of stimulating economic growth and culinary business revitalization efforts in the Downtown Specific Plan area (“Program Area”). The amount of funds available each year is not guaranteed and are distributed on a first-come first-served basis.

C. Grantee(s) owns or leases property at the above-listed address in the Program Area, more particularly described in Exhibit “A,” attached hereto and incorporated herein (“Property”), and has submitted a Program application for certain improvements to the Property. In the event a Grantee(s) leases the Property, the legal Owner has joined as a signatory to the Regulatory Agreement and this Grant Agreement to evidence its irrevocable consent to the Project and to be bound by the terms and conditions set forth herein. For purposes of this Agreement, the final scope of work approved by the City for said improvements shall be referred to as the “Project.” D. Under the Program, the City will reimburse up to a maximum of Three Hundred Thousand Dollars ($300,000) to eligible property owners/lessees for the costs associated with building a restaurant kitchen, provided that the owners/lessees demonstrate a Twenty Percent (20%) matching contribution towards the Project prior to receiving any Grant Funds, are responsible for ongoing maintenance, keep their business open to the public, keep their property free of building code violations, and, in the case of property owners, keep their property free tax liens for a period of two (2) years after the Completion Date as defined herein.

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E. The Parties intend this Agreement to set forth Grantee(s)’ obligations with respect to the Project, including all terms and conditions of this Agreement and all Program guidelines established by the City, as may be amended from time to time (“Program Guidelines”).

NOW THEREFORE, in consideration of the mutual covenants and agreements obtained herein, the City and the Grantee(s) do hereby agree as follows:

SECTION 1. GRANT FUNDS.
a. Amount of Funding. Grantee(s) shall be reimbursed for Eligible Expenses, as defined below, up to a maximum amount of Three Hundred Thousand Dollars ($300,000) for building, improving, or expanding a restaurant kitchen. The total reimbursement amount per this Agreement shall not exceed the maximum amount of Three Hundred Thousand Dollars ($300,000) (hereafter referred to as “Grant Funds”). Grantee(s) acknowledges that payment to Grantee(s) is contingent upon funding allocation, and in the event of funding reduction, including elimination, the City may reduce the Grant Funds as a whole or in part. Any such change shall be reflected by written amendment to this Agreement or by notice provided pursuant to Section 7(k) of this Agreement, if applicable. All Grant Fund disbursements are subject to repayment if a Certificate of Occupancy is not obtained within thirty (30) days of the Project’s completion. The Grantee(s)' obligation to repay shall be secured by the Regulatory Agreement (attached under Exhibit "B" and recorded against the Property).
b. Eligible Expenses. Grant Funds shall only be used to reimburse the costs for labor and materials directly related to the Eligible Improvements (“Eligible Expenses”). “Eligible Improvements” shall mean restaurant kitchen development and/or improvement, as defined in the Program Guidelines including:
(i) Equipment:

1. Commercial-grade ranges and ovens

2. High-volume refrigerators and walk-in freezers

3. Commercial dishwashers

4. Kitchen hood and ventilation systems

5. Three-compartment sinks

6. Commercial-grade food processors

7. Commercial ice machines

8. Code-compliant grease traps

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CITY OF HEMET KITCHEN GRANT PROGRAM
(ii) The conditions apply towards the Eligible Improvements to qualify as an Eligible Expense:

1. The Project must be completed within eighteen (18) months of building permit issuance.

2. The City will reimburse the Eligible Expenses through one of the following methods:
(a) Standard Reimbursement: After the City deems the project completed and issues a Certificate of Occupancy, the City shall reimburse Grantee(s) within thirty (30) days of receiving complete documentation including detailed invoices and proof of
payment(s).
(b) Milestone Reimbursement: At the City Manager’s discretion, reimbursement may be provided upon completion of specific inspection milestones, not to exceed two reimbursements and be established in writing between the City and Grantee(s) prior to commencement of work. Such milestones shall be reasonable and consistent with standard construction practices.

If an extension beyond the required completion date is anticipated, prior City Manager’s approval is required to extend the performance period.

3. Grant Funds must be used for the Project’s kitchen improvements, rather than simple routine maintenance.

4. Improvements must be consistent with the City’s Downtown Specific Plan and the City’s General Plan 2030.

5. Building and improvements must adhere to all applicable building codes, ordinances, and development/design standards for the City.

6. Additional Eligible Improvements. The City Manager or Economic Development Director is hereby authorized to approve, in writing, items not expressly enumerated above as Eligible Improvements, provided that such items are:
(i) directly related to commercial kitchen operations;
(ii) consistent with the purposes of the Program, and
(iii) approved prior to purchase or installation.

Any such approval shall be documented in writing and incorporated into the applicable Grant Agreement by written amendment.
c. Prevailing Wage. All Project improvements are “public work,” as that term is used in Section 1720 of the California Labor Code. Grantee(s) and all contractors and subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday

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wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code. The Director’s determination is available on-line at www.dir.ca.gov/dlsr/DPreWageDetermination.htm and is referred to and made a part hereof. The wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein.

SECTION 2. TERM.
a. Grant Agreement. The term of this Agreement shall be from the Effective Date and shall terminate on the Completion Date, unless terminated earlier as provided herein. For purposes of this Agreement, "Completion Date" shall mean the date the City issues a Certificate of Occupancy for the Project. Notwithstanding the foregoing, the terms, covenants, conditions, and restrictions set forth in Section 6 & the general provisions in Section 7 shall survive the termination and expiration of this Agreement.
b. Regulatory Agreement. As consideration for the Grant Funds, Grantee(s) agrees to be bound by the covenants, conditions, and restrictions set forth in the Regulatory Agreement, attached hereto as Exhibit “B,” which shall be recorded in the Official Records of the County of Riverside as a condition precedent to the City’s disbursement of the Grant Funds.

SECTION 3. PROJECT TIMELINE.
a. Design Approval. After the City has approved the final scope of work for the Project, Grantee(s) shall submit to the City the design plans for the Project. Grantee(s) shall not undertake any improvement until the design for the Project has been submitted to and approved by the City.
b. Notice to Proceed. If the City approves of the design of the Project, the City shall issue to the Grantee(s) a Notice to Proceed. Expenses incurred prior to the issuance of the Notice to Proceed shall not be reimbursed.
c. Time for Completion. Following the City’s issuance of the Notice to Proceed, the Grantee(s) shall contract for the work, commence construction, and complete the Project within eighteen (18) months of building permit issuance.
d. Extensions. In the event the Grantee(s) anticipates that the Project will not be completed within eighteen (18) months of building permit issuance, the Grantee(s) shall, no less than thirty (30) days prior to the Completion Date, submit a written request to the City Manager for an extension detailing the circumstances giving rise to the delay and justification for the extension. It is within the City Manager’s sole and absolute discretion to grant such extension.

Notwithstanding the foregoing, the City Manager reserves the right to provide any length of extension as may be necessary and reasonable for the completion of the Project. e. Documentation. Upon completion of the work, the Grantee(s) shall submit to the City proof of all incurred expenses, including payments made to contractors and subcontractors, final lien waivers from all contractors and subcontractors, and an executed Regulatory Agreement signed by both Owner and Lessee (where applicable) as referenced in Section 2.

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f. Completion Date and Final Inspection. Upon receipt of the documentation set forth in Section 3(e), the City shall perform a final inspection to verify that construction is completed per approved plans and specifications. If approved and the requirement for a Certificate of Occupancy is satisfied, the City shall issue the Certificate of Occupancy to the Grantee(s) certifying that the Project has been completed, which formally authorizes the space to be occupied and open for business operations. The Certificate of Occupancy will not be issued unless:
(1) All construction work meets applicable building codes and safety requirements;
(2) The business owner has obtained all required permits, including a permit for permanent signage (temporary banners do not satisfy this requirement); and
(3) All other municipal requirements for business operation have been satisfied. g. Progress Payments and Final Reimbursement. At the City Manager's sole discretion, progress payments may be authorized based on successful completion of specific inspection milestones. Such milestone agreement shall be established after the Grantee(s) submits design plans for the Project and proposed milestone schedule, and must be approved in writing by both the City Manager and Grantee(s).
(1) Progress Payment Reimbursement Plan Requirements: Any progress payments shall:
(i) Not exceed 80% of total eligible expenses incurred to date; (ii) Require submission of paid invoices and lien waivers for completed work; (iii) Be subject to successful City inspection of the completed milestone; and (iv) Be contingent upon the Project's continued progress toward obtaining a Certificate of Occupancy.
(2) Final Payment: Regardless of reimbursement method selected, the final payment or, in the case of milestone reimbursement, the remaining Grant Funds (minimum 20% of total grant amount) shall be disbursed within thirty (30) days only upon:
(i) Issuance of the Certificate of Occupancy;
(ii) Submission of all final documentation including invoices and final lien waivers; and
(iii) Compliance with all terms of this Agreement.
h. Repayment Obligation: If (i) the Project remains incomplete and fails to obtain a Certificate of Occupancy within the timeframe specified in this Agreement (including any approved extensions) Grantee(s) or responsible party shall reimburse the City for all progress payments made, or (ii) the business ceases operations within two (2) years after the Completion

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Date, Grantee(s) or responsible party shall reimburse the City and the repayment amount shall be prorated based on the number of months remaining in the two (2) year period. All repayment obligations shall be secured by the recorded Regulatory Agreement.

SECTION 4. MONITORING.

The City has a right to periodically review the progress of work for the Project. Such inspections shall not replace any required permit inspection by Building Inspectors. All work that is not in conformance with the approved plans, design drawings, and specifications shall be immediately remedied by the Grantee(s). Grant Funds shall not be used to reimburse costs associated with correcting, replacing, or remedying any deficient or improper work, and such corrections shall be completed at the sole cost and expense of the responsible party.

SECTION 5. TERMINATION BY CITY.

The City may terminate this Agreement, immediately, if the Owner or Lessee (where applicable) fails to comply with their respective obligations as set forth in this Agreement, or if any party submits documentation that is incomplete, incorrect, or falsified. Notice of termination shall be given by the City to the Owner and Lessee (if applicable) by certified mail to the address listed above. Upon the date such notice is mailed, this Agreement shall terminate and the financial obligations on the part of the City shall cease and become null and void:

1. Non-emergency Defaults: the City shall provide both Owner and Lessee with written notice of default and fifteen (15) business days opportunity to cure, commencing upon receipt of notice, during which time the non-defaulting party shall have the right (but not obligation) to cure the other party's default to prevent termination of the entire Agreement. The notice shall specify the nature of the default and required cure actions.

2. If the Lessee cures an Owner’s default, the Lessee may seek reimbursement from the Owner and/or offset such costs against rent payments, subject to applicable laws.

3. If the Owner cures a Lessee’s default, the Owner shall have the right to offset such costs against any rent, security deposits, or other amounts owed to the Lessee. In the event of Lessee default or early lease termination, prior to completing the two (2) year operational period from the Completion Date, (i) the grant-funded improvements shall remain with and benefit the Property with no grant benefits transferred to Lessee and (ii) the Lessee shall reimburse the City for any unamortized Grant Funds over the two (2) year period from the Completion Date, calculated proportionally based on the time remaining in the compliance period.

4. Either party may cure the other party's default to prevent termination of this Agreement and may seek reimbursement for cure costs from the defaulting party and exercise any right available under the Grantee(s)’ lease agreement, subject to the applicable laws.

SECTION 6. GRANT CONDITIONS.

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a. Responsibilities of Owner(s) and Lessee(s). Where the Grantee(s) includes both an Owner and Lessee:

1. The Owner shall be solely responsible for: (i) keeping the Property free of tax liens; (ii) payment of all property taxes and assessments; and (iii) compliance with any ownership-related obligations under this Agreement.

2. The Lessee shall be responsible for: (i) business operations; (ii) maintenance of grant-funded improvements; and (iii) compliance with building, health, and safety codes related to the business operations.

3. Both Owner and Lessee shall be jointly responsible for ensuring the Property remains free of building code violations related to the Project improvements.
b. Owner’s Duty to Cooperate. The Owner acknowledges that the Lessee's ability to comply with this Agreement depends substantially on the Owner's cooperation and the continued viability of the Property for restaurant operations. Accordingly, the Owner agrees not to take any action that would prevent or hinder the Lessee from fulfilling their obligations under this Agreement, including but not limited to interfering with business operations, failing to maintain essential building systems at the Owner’s sole cost and expense, or creating conditions that would violate health or safety codes.
c. Lessee’s Duty to Cooperate. The Lessee agrees not to take any action that would damage the Property, violate building or safety codes in a manner that could result in liens or violations against the Property, or operate the business in a way that would jeopardize the Owner's property interests or violate the terms of this Agreement. The Lessee shall ensure all grant-funded improvements are properly maintained at the Lessee’s sole cost and expense, and shall not permit any liens related to business operations to be placed against the Property. d. Maintenance. From the Completion Date unless otherwise agreed upon by the parties in writing, the Grantee(s) agree to maintain and repair all Grant Funded infrastructure, equipment, and any improvements in good operating condition consistent with California Health and Safety Code standards and industry best practices for commercial kitchen operations at the Grantee(s)’ sole cost and expense.
e. Business Operations. For a period of two (2) years from the Completion Date unless otherwise agreed upon by the parties in writing, the Lessee agrees to keep the Business open as a fully-fixtured, fully-stocked, fully-staffed, and continuously operating business open to the public at the Property during regular business days and hours. f. Code Compliance. For a period of two (2) years from the Completion Date unless otherwise agreed upon by the parties in writing:

1. The Owner agrees to ensure the Property complies with all structural and property-related building codes and to keep the Property clear of such violations at the Owner’s sole cost and expense.

2. The Lessee agrees to comply with all health, safety, and operational codes related to business operations at Lessee’s sole cost and expense.

3. Both parties shall be jointly responsible for ensuring compliance with

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building codes specifically related to the grant-funded kitchen improvements and comply with all building, health, and safety standards.

Should any code violations occur related to any improvements made using Grant Funds and remain uncured beyond the cure period specified in a code enforcement citation, after reasonable notice and opportunity to cure, the responsible party (Owner and/or Lessee, as determined by their respective obligations under this Agreement) may be required to reimburse the City any unamortized Grant Funds over the two (2) year period from the Completion Date, calculated proportionally based on the time remaining in the compliance period.
g. Tax Liens. For a period of two (2) years from the Completion Date unless otherwise agreed upon by the parties in writing, the Owner agrees to keep the Property free of tax liens. h. Insurance. Without limiting or diminishing the Grantee(s)’ obligation to indemnify or hold the City harmless, the Owner at its sole cost and expense shall maintain property insurance and flood insurance. The Lessee at its sole cost and expense shall maintain business liability insurance and any insurance required for business operations. Both parties shall ensure their respective insurance policies name the City as an additional insured as it relates to the grant-funded improvements.
i. Non-Liability of Officials, Employees and Agents. No elected official, officer, employee, or agent of the City shall be personally liable to the Grantee(s) for any obligation created under the terms of this Agreement, unless such an obligation is made express and by written instrument.
j. Indemnity. Notwithstanding the insurance coverage required herein, the Grantee(s), and its successors, assigns, and heirs, shall indemnify, defend, and hold the City, its elected officials, officers, employees, and agents (“Indemnitees”) harmless from any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including attorneys’ fees) which the City may incur as a result of: (a) the City providing Grant Funds to the Grantee(s); (b) the Grantee(s)’ performance of or failure to perform any obligations as and when required by this Agreement; (c) a failure of any of the Grantee(s)’ representations or warranties to be true and complete in any material respect; (d) any act or omission by the Grantee(s) or any of Grantee(s)’ contractors, subcontractors, architects, engineers, or suppliers with respect to the Project or the Property; (e) failure of the Grantee(s), the Grantee(s)’ contractors, or subcontractors to comply with the covenants, conditions, and restrictions contained in this Agreement or the Regulatory Agreement or to comply with all other laws, rules, regulations, and restrictions related to the use of Grant Funds, and/or (f) any claim related to the Property, Project, or Grant Funds, except if the loss is caused by the sole negligence or willful misconduct of the City. The responsible party shall pay within thirty (30) days of the City’s written demand any amounts owing under this indemnity. The duty of the Grantee(s) to indemnify includes the duty to defend the City in any court action, administrative action, or other proceeding brought by any third party arising from the Project, the Agreement, the Regulatory Agreement, or the Property.

SECTION 7. GENERAL PROVISIONS.
a. Political Activity. None of the funds, materials, property, or services contributed

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by the City to the Grantee(s) under this Agreement shall be used for any partisan political activity or the election or defeat of any candidate for public office. b. Discrimination. The Grantee(s) covenants and agrees for itself and its successors and assigns, that all persons employed by or applying for employment by it, and all subcontractors, vendors, and volunteers are and will be treated equally and the Grantee(s) shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, genetic information, gender, gender identity, gender expression, or sexual orientation, or military and veteran status, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, the Grantee(s) agrees to conform to the requirements of the Americans with Disabilities Act.
c. Compliance with Laws. The Grantee(s) shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect the Grantee(s), the Property, or in any way affect the completion of the Project by the Grantee(s). The Grantee(s) shall at all times observe and comply with all such laws, ordinances and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations.

The City shall not be responsible for informing the Grantee(s) of such laws or changes to such laws.
d. Joint and Several Liability Limitations. Where both an Owner and Lessee are parties to this Agreement, their liability shall be limited to their respective areas of responsibility as set forth herein, except where otherwise required by California law. Neither party shall be liable for the other party's specific obligations, except where joint responsibility is explicitly stated in this Agreement or mandated by applicable law. e. Governing Law and Venue. This Agreement shall be governed and construed in accordance with the laws of the State of California. The parties agree that any action or proceeding arising out of or relating to this Agreement shall be tried and litigated only in the state and federal courts located in the County of Riverside, California, or the United States District Court for the Central District of California, and each party hereby consents to the jurisdiction of such courts and waives any objection to venue therein.
f. Attorneys’ Fees and Costs. In the event any legal or administrative action is brought to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover all reasonable attorneys’ fees and costs incurred in such action. g. Relationship of Parties. The relationship of the Grantee(s) with the City for this Project shall not be construed as a joint venture, equity venture, partnership, or any other relationship. City neither undertakes nor assumes any responsibility or duty to the Grantee(s) (except as provided for herein) or any third party with respect to the Project or the Property.

Except as City may specify in writing, Grantee(s) shall have no authority to act as an agent of the City or to bind the City to any obligation.
h. Waiver. Any waiver by the City of an obligation in this Agreement must be in

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writing. No waiver shall be implied from any delay or failure by the City to take action on any breach or default of the Grantee(s) or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to the Grantee(s) to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the City to any act or omission by the Grantee(s) shall not be construed to be a consent to any other act or omission or to waive the requirement for the City’s written consent to future waivers.
i. Integration. This Agreement, including exhibits, contain the entire agreement of the parties and supersede any prior negotiations.
j. Other Agreements. Grantee(s) represents that the Grantee(s) has not entered into any agreements that are inconsistent with the terms of this Agreement. Grantee(s) shall not enter into any agreements that are inconsistent with terms of this Agreement without an express waiver by the City in writing.
k. Amendments and Modification. Any amendments or modifications to this Agreement must be in writing and shall be effective only if executed by the Grantee(s) and the City.
l. Order of Priority. In the event of any conflict or inconsistency between the terms of this Grant Agreement, the Regulatory Agreement, and the Program Guidelines, the following order of priority shall govern the interpretation and enforcement of the parties' obligations: (i) first, this Grant Agreement; (ii) second, the Regulatory Agreement; and (iii) third, the Program Guidelines.
m. Severability. Every provision of this Agreement is intended to be severable. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired.
n. Counterparts. This Agreement and all other agreements executed pursuant to this Agreement may be executed in counterpart originals, each of which shall be deemed an original, but all of which, together shall constitute one and the same instrument. o. Opportunity to Inquire. The Grantee(s) represents and warrants to the City that it has: (a) received and thoroughly reviewed this Agreement and all documents incorporated herein; (b) been given the opportunity to ask the City questions regarding the meaning of any provision; and (c) been afforded the opportunity to consult with independent legal counsel of its own choosing prior to execution.
p. No Ambiguity. The Grantee(s) acknowledges that it has read and understands this Agreement and voluntarily accepts all terms and conditions. The Grantee(s) has had the opportunity to review this Agreement with counsel of its choice and understands the nature of its obligations. The Grantee hereby waives any future right to claim that any provision of this Agreement is ambiguous as a basis to avoid its performance hereunder.

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J. Exhibits. The following exhibits attached hereto are incorporated herein to this Agreement by this reference:

Exhibit “A” – Property
Exhibit “B” – Regulatory Agreement
Exhibit “C” – Program Guidelines
IN WITNESS THEREOF, the parties hereto have executed this Agreement on the date first appearing above.

PROPERTY OWNER(S) CITY OF HEMET
Name Mark Prestwich, City Manager
Signature
Name
Signature
LESSEE/BUSINESS OWNER Approved as to Form
Name Steven P. Graham, City Attorney
Signature

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EXHIBIT “A”

PROPERTY DESCRIPTION
(Attached)

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EXHIBIT “B”

REGULATORY AGREEMENT
SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE

REGULATORY AGREEMENT
(DOWNTOWN KITCHEN GRANT PROGRAM)
THIS REGULATORY AGREEMENT (“Regulatory Agreement”) is made and entered into this day of _ 202 , by _____ (“Owner”) and _____ (“Lessee”), collectively referred to as “GRANTEE(S),” and THE CITY OF HEMET, a California municipal corporation (“City”) with reference to the following facts:

RECITALS
Exempt from Recording Fees
Pursuant to Government Code § 6103
When Recorded Mail to:

City of Hemet
Economic Development Department
445 E Florida Ave
Hemet, CA 92543
Address:

APN:
_

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A. On September__, 2025, the City and Grantee(s) entered into that certain Kitchen Grant Program Agreement (“Grant Agreement”) for the City’s Downtown Kitchen Grant Program, pursuant to the City’s Downtown Kitchen Grant Program Guidelines which the City granted the Grantee(s) Three Hundred Thousand Dollars ($300,000.00) (“Grant Funds”) for certain property improvements at the property located at 135 E. Florida Ave., in the City of Hemet, identified as Assessor Parcel Number 443281004, more particularly described in the Legal Description attached hereto in Exhibit “B” (“Property”).

B. As consideration for the Grant Funds, the Grantee(s) agrees to comply and be bound by the covenants, conditions, and restrictions set forth in this Regulatory Agreement. Further, this Regulatory Agreement will serve to put future property owners on notice of the terms, conditions, restrictions, covenants and agreements.

C. The parties acknowledge that the detailed obligations, responsibilities, and definitions set forth in the Grant Agreement in Exhibit “A” are hereby incorporated herein by reference.

NOW, THEREFORE, the Grantee(s) covenants, agrees, and declares for itself, its successors, and its assigns that the Property shall be held, used, maintained, and transferred pursuant to the terms of this Regulatory Agreement and the conditions contained herein as follows.

COVENANTS AND RESTRICTIONS

1. Restrictions Run With the Land. The restrictions (“Restrictions”) set forth herein are limitations on the ownership and use of the land as provided in Civil Code § 784 made for the direct benefit of the Property and shall run with the land and be binding upon the Owner, Lessee, and their respective successors and assigns. These Restrictions may be enforced, by the City of Hemet and its respective successors or assigns. The Grantee(s) expressly acknowledges and agrees that these Restrictions and this Regulatory Agreement are reasonable restraints on Grantee(s)’ right to own, use, maintain, and transfer the Property and any estate or interest therein and are not and shall not be construed to be an unreasonable restraint their respective rights to own, use, maintain, and transfer the Property.

2. Kitchen Grant Agreement. The Owner and Lessee agree to comply with all terms and conditions, and obligations set forth in the Kitchen Grant Agreement dated [DATE], which is incorporated herein by reference. In the event of any conflict or inconsistency between the terms of the Grant Agreement, this Regulatory Agreement, and the Program Guidelines, the following order of priority shall apply: (i) first, the Grant Agreement; (ii) second, this Regulatory Agreement; and (iii) third, the Program Guidelines.

3. Use of the Property. The Property shall be used for the business purposes identified in the Grant Agreement and continuous operation of a lawful business during regular business days and hours. Such use shall not change without the written permission of the City.

4. Transfer of the Property. The Owner shall not transfer the Property or any portion thereof without written permission of the City. Lessee may assign their lease interest with

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written permission from both the City and the Owner, provided the assignee agrees to be bound by this Agreement.

5. Maintenance of the Property. The Grantee(s) covenants and agrees for itself and its successors and assigns, that it will, at its sole cost and expense: (i) maintain the appearance and safety of the Property (including all improvements and fixtures) in good order, condition, and repair; and (ii) remove all graffiti placed upon the Property (including all improvements, fixtures, and landscaping) within seventy-two (72) hours of its appearance.

6. Taxes, Assessments, Encumbrances, Charges, and Liens. The Owner shall pay, before delinquency, all taxes and assessments affecting the Property. The Lessee shall not permit any liens related to business operations to be placed against the Property. Both Owner and Lessee shall ensure no liens related to the grant-funded improvements are placed on the Property, and each party shall be responsible for liens arising from their respective obligations under this Agreement.

7. Notice and Right to Cure Defaults. Any defaults, cure procedures, and enforcement mechanisms shall be governed by the provisions set forth in the Grant Agreement.

The City shall have all remedies available at law or equity to enforce payment obligations, including but not limited to recording a lien against the Property and pursuing foreclosure in accordance with applicable law.

8. Nondiscrimination. The Grantee(s) covenants and agrees for itself and its successors and assigns, that all persons employed by or applying for employment by it, and all subcontractors, vendors, and volunteers are and will be treated equally and the Grantee(s) shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, genetic information, gender, gender identity, gender expression, or sexual orientation, or military and veteran status, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as permitted by Section 12940 of the California Government Code and other applicable laws. Further, the Grantee(s) agrees to conform to the requirements of the Americans with Disabilities Act.

9. Compliance with Laws. The Grantee(s) shall keep fully informed of and comply with federal, state and local laws and ordinances and regulations which in any manner affect the Grantee(s), the Property, or in any way affect the performance of services by the Grantee(s). The Grantee(s) shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations.

10. Annual Review. During the two (2) year term of this Agreement after Completion Date, annually, the City shall review the Grantee(s)’ compliance with this Regulatory Agreement. Grantee(s) are subject to the enforcement, procedures, penalties, and remedies set forth in the Grant Agreement, including repayment obligations for unamortized Grant Funds as specified therein. If the Grantee(s) fails to pay within the time provided, such costs shall be a lien upon the Property, as provided by California Civil Code § 2881.

18.C.

REGULATORY AGREEMENT – KITCHEN GRANT PROGRAM
4921-6384-5994.1 Page 4 of 18
REGULATORY AGREEMENT – KITCHEN GRANT PROGRAM

11. Duration. This Regulatory Agreement shall be effective from the date of its recordation with the Riverside County Recorder through a date that is two (2) years after the Completion Date, as defined in the Grant Agreement.

IN WITNESS THEREOF, the parties hereto have executed this Regulatory Agreement as of [DATE].

PROPERTY OWNER(S) CITY OF HEMET
Name Mark Prestwich, City Manager
Signature
Name
Signature
LESSEE/BUSINESS OWNER APPROVED AS TO FORM:

Name Steven P. Graham, City Attorney
Signature

18.C.

4921-6384-5994.1
EXHIBIT “A”

KITCHEN GRANT PROGRAM

18.C.

4921-6384-5994.1
EXHIBIT “B”

LEGAL DESCRIPTION

18.C.

City of Hemet
City Council Meeting

STAFF REPORT
Meeting: City Council Meeting - Apr 28 2026
Department: City Attorney
Submitted by: Mark Prestwich, City Manager
Steven Graham, City Attorney;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:

A Resolution of the City Council, of the City of Hemet, California, Approving the City of Hemet Remote Participation and Technology Disruption Policy
RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council, of the City of Hemet, California, approving the City of Hemet Remote Participation and Technology Disruption Policy.

BACKGROUND:

The Ralph M. Brown Act requires that meetings of legislative bodies of local agencies be open and public. Senate Bill 707 added Government Code section 54953.4, which imposes new remote public access requirements on “eligible legislative bodies,” including city councils meeting the statute’s population thresholds. Section 54953.4 requires covered bodies to provide the public with an opportunity to attend open meetings through a two-way telephonic service or a two-way audiovisual platform, subject to limited statutory exceptions, and further requires adoption of a policy addressing disruptions to telephonic or internet service during meetings. The statute is effective January 1, 2026, becomes operative July 1, 2026, and remains in effect until January 1, 2030, unless extended or amended by future legislation.

The attached resolution and Exhibit A policy are intended to position the City for compliance with these new Brown Act requirements before the operative date. The resolution recites the legal basis for adoption of the policy and authorizes implementation by the City Manager or designee. Exhibit A establishes the City’s framework for remote attendance, public comment through remote platforms, and procedures to address disruptions in telephonic or internet-based access during meetings.

ANALYSIS:

18.D.

Government Code Section 54953.4 requires that open and public meetings of an eligible legislative body include an opportunity for members of the public to attend remotely through either a two-way telephonic service or a two-way audiovisual platform, unless adequate telephonic or internet service is not operational at the meeting location. If the legislative body elects to use a two-way audiovisual platform, the statute also requires a call-in option and activation of any automatic captioning function included with the platform. In addition, remote attendees must be afforded the opportunity to provide public comment in real time with the same time allotment as in-person speakers. The proposed Policy incorporates these core statutory requirements.

A principal purpose of the proposed Policy is to satisfy the statutory requirement that, on or before July 1, 2026, an eligible legislative body adopt at a noticed public meeting in open session, and not on the consent calendar, a policy addressing disruption of telephonic or internet service occurring during covered meetings. The proposed Policy establishes procedures for recessing the open session if a disruption occurs, making a good-faith effort to restore service, delaying reconvening of the open session for at least one hour unless service is restored earlier, and allowing the legislative body to make the findings required by statute if the meeting must reconvene before remote service is restored. Those findings include that good-faith restoration efforts were made and that the public interest in continuing the meeting outweighs the public interest in remote public access. The proposed Policy also identifies the statutory exceptions under which the remote participation requirements do not apply.

Adoption of the resolution and Policy will provide the City with a formal governance framework for hybrid public access to City Council meetings beginning July 1, 2026, and will support orderly administration of meetings when technical disruptions occur. The proposed Policy is intended to supplement, and not supersede, the Brown Act, and it authorizes the City Manager or designee to implement administrative procedures needed for compliance. For these reasons, the staff recommends the adoption of the attached resolution and Exhibit A.

STRATEGIC PLAN INTEGRATION:

N/A
ATTACHMENT(S):

Attachment 1: SB 707 Resolution
Attachment 2: SB 707 Policy

18.D.

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, ADOPTING A REMOTE

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

WHEREAS, the Ralph M. Brown Act requires that the meetings of legislative bodies of local agencies be open and public, so that any member of the public may attend and participate in the democratic process; and
WHEREAS, Senate Bill 707 added Section 54953.4 to the Government Code, creating new requirements for "eligible legislative bodies" to provide real-time remote public access to meetings through two-way telephonic or audiovisual services; and WHEREAS, the City Council of the City of Hemet qualifies as an eligible legislative body; and
WHEREAS, SB 707 further mandates that the City adopt and maintain a formal policy addressing disruptions to telephonic or internet-based services that occur during public meetings; and
WHEREAS, such a policy must include established procedures for recessing and reconvening meetings, making good faith efforts to restore disrupted services, and providing an opportunity for remote public comment in real time; and

18.D.

CITY OF HEMET RESOLUTION NO. 2026-XXX 2
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WHEREAS, the City Council intends to ensure compliance with these state law mandates while maintaining the continuity of public business and establishing clear expectations for both the City and the public when technical disruptions occur; and WHEREAS, on this 28th day of April, 2026, the City Council held a noticed public meeting in open session, and not on the consent calendar, to consider the adoption of the City of Hemet Remote Participation and Technology Disruption Policy.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS, AND RESOLVES 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) Adoption of the Policy. The City Council hereby approves and adopts the "City of Hemet Remote Participation and Technology Disruption Policy," attached hereto as Exhibit A and incorporated herein by this reference. This Policy shall apply to all meetings of the City Council and any other legislative body of the City that qualifies as an eligible legislative body under applicable law, effective July 1, 2026. (B) City Manager Authority. The City Manager, or their designee, is authorized to implement any administrative procedures necessary to carry out the intent of this Policy, including technical protocols for service restoration.

18.D.

CITY OF HEMET RESOLUTION NO. 2026-XXX 3
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SECTION 3. Effective Date. This Resolution shall take effect immediately upon adoption.

SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this Resolution or the Policy is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions.

SECTION 5. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

18.D.

CITY OF HEMET RESOLUTION NO. 2026-XXX 4
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PASSED, APPROVED, AND ADOPTED this 28th day of April, 2026. ____________________________
Linda Krupa, Mayor
ATTEST:
_____________________________
Elodie Klug, Deputy City Clerk

18.D.

CITY OF HEMET RESOLUTION NO. 2026-XXX 5
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State of California )
County of Riverside )
City of Hemet )
I, Elodie Klug, Deputy City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 28th day of April, 2026, and was passed by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSTAIN: Council Members:

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

18.D.

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EXHIBIT A

CITY OF HEMET
Remote Participation and Technology Disruption Policy

1. INTENT AND PURPOSE
This Policy is adopted to implement Government Code section 54953.4, as added by Senate Bill 707, which requires eligible legislative bodies to provide real-time remote public access to meetings through two-way telephonic or audiovisual services and to adopt procedures addressing disruptions to such services.

2. APPLICABILITY
This Policy applies to all meetings of the City Council and any other legislative body of the City that qualifies as an “eligible legislative body” under Government Code section 54953.4(e)(2).

3. REMOTE PARTICIPATION REQUIREMENT
All open and public meetings shall include an opportunity for members of the public to attend via a two-way telephonic service or a two-way audiovisual platform, except where adequate telephonic or internet service is not operational at the meeting location. If such service is operational for only a portion of the meeting, remote participation shall be provided for that portion of the meeting.

4. PLATFORM REQUIREMENTS
If the City provides a two-way audiovisual platform, the City shall:
i. Provide a call-in option; and
ii. Activate any automatic captioning function available on the platform during the meeting.

If a two-way audiovisual platform is not provided, the City shall provide a two-way telephonic service.

5. PUBLIC COMMENT VIA REMOTE ACCESS
Members of the public participating remotely shall be provided an opportunity to provide public comment in real time, consistent with Government Code section 54954.3, and shall be afforded the same time allotment as members of the public attending in person.

6. REQUIRED DISRUPTION POLICY
Pursuant to Government Code section 54953.4(b)(1)(A)(i)(I)(ib)(Ia), the City shall maintain a policy addressing disruptions to telephonic or internet-based services occurring during meetings, including procedures for recessing and reconvening meetings and efforts to restore such services.

18.D.

2 | P a g e
For purposes of this Policy, a “disruption” means a disruption of telephonic or internet service that prevents members of the public from attending or observing the meeting via the two-way telephonic service or two-way audiovisual platform. A “disruption” does not include technical difficulties experienced by individual members of the public that are unrelated to the City’s systems or service providers, including issues with personal devices, software, internet connectivity, or cellular service.

7. PROCEDURE UPON DISRUPTION
If a disruption of telephonic or internet service occurs during a meeting that prevents members of the public from attending or observing the meeting via the two-way telephonic service or twoway audiovisual platform, the following procedures shall apply:

A. Recess and Restoration Efforts
i. The legislative body shall recess the open session of the meeting; and ii. The City shall make a good faith effort to restore telephonic or internet service.

B. Minimum Recess Period
The legislative body shall not reconvene the open session of the meeting until at least one (1) hour has elapsed following the disruption, or telephonic or internet service has been restored, whichever occurs earlier.

The legislative body may meet in closed session during the period of disruption, as permitted by law.

C. Reconvening Without Restoration
If telephonic or internet service has not been restored upon reconvening the open session, the legislative body shall adopt, by rollcall vote, a finding that:
i. Good faith efforts to restore telephonic or internet service have been made in accordance with this Policy; and
ii. The public interest in continuing the meeting outweighs the public interest in remote public access.

8. EXCEPTIONS TO REMOTE PARTICIPATION REQUIREMENTS
The remote participation requirements set forth in this Policy shall not apply to meetings held for any of the following purposes:
• Attending a judicial or administrative proceeding to which the City is a party; • Inspecting real or personal property where discussion is limited to that property; • Meeting with federal or state officials regarding legislative or regulatory issues; • Meeting at or near a City-owned facility regarding that facility;

18.D.

3 | P a g e
• Emergency meetings pursuant to Government Code section 54956.5.

9. ADMINISTRATION
The City Manager or designee is authorized to implement administrative procedures necessary to carry out this Policy, including procedures for restoring telephonic or internet service during a disruption.

10. SEVERABILITY
If any provision of this Policy is held invalid or unenforceable, such invalidity shall not affect the remaining provisions, which shall remain in full force and effect.

11. INTERPRETATION
This Policy shall be interpreted in a manner consistent with Government Code section 54953.4, as it may be amended from time to time, including any legislative extension, modification, or repeal of the current sunset date. The intent of this Policy is to ensure compliance with applicable law while maintaining public access to meetings and establishing procedures for addressing disruptions to telephonic or internet-based services.

12. SAVINGS CLAUSE
This Policy is intended to supplement and implement Government Code section 54953.4 and shall not be interpreted to conflict with, limit, or supersede any other provision of the Ralph M.

Brown Act, including any other teleconferencing provisions set forth in Government Code section 54953 or related statutes. In the event of any conflict between this Policy and the Brown Act, the Brown Act shall control.

13. ADOPTION
This Remote Participation and Technology Disruption Policy was adopted by the City Council of the City of Hemet at a noticed public meeting held in open session and was not adopted on the consent calendar.

Adopted: [Date]
Effective Date: July 1, 2026
Last Revised: [Date]

18.D.

City of Hemet
City Council Meeting

STAFF REPORT
Meeting: City Council Meeting - Apr 28 2026
Department: Administration
Submitted by: Mark Prestwich, City Manager
Mark Prestwich, City Manager;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:

Approval of Memorandum of Understanding with Riverside Transit Agency for Development of the Hemet Mobility Hub
RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Approve the Memorandum of Understanding (“MOU”) between the City of Hemet and Riverside Transit Agency (“RTA”) for the development, construction, and operation of the Hemet Mobility Hub; and Authorize the City Manager to execute the MOU and any non-substantive amendments necessary to implement the agreement.

BACKGROUND:

On March 12, 2024, the City and RTA entered into an AHSC Implementation and Cooperation Agreement. On August 22, 2024, the City, in partnership with Palm Communities, was awarded approximately $35.5 million in AHSC funding for the Palm Villas at State Project.

Of that award, $7 million is allocated to RTA for the construction of the Hemet Mobility Hub. The Hub will be located on a City-owned parcel on Devonshire Avenue (APN 443-140-024) in downtown Hemet. A parcel map is attached to the MOU as Exhibit A, and a Conceptual Site Plan (Option D) showing the Project, Project Site, and land for potential future private development is attached as Exhibit B.

This MOU defines the respective roles and responsibilities of the City and RTA to ensure the successful delivery, operation, and long-term sustainability of the project.

The proposed MOU establishes a formal partnership between the City of Hemet and RTA to deliver the Hemet Mobility Hub, a key component of the City’s downtown revitalization and transit-oriented development strategy. The project is partially funded through the State’s Affordable Housing and Sustainable Communities (AHSC) Program and is associated with the Palm Villas at State affordable housing development.

18.E.

The Mobility Hub will serve as a central transit facility integrating traditional bus service with emerging mobility options, pedestrian and bicycle infrastructure, and future economic development opportunities.

DISCUSSION:

The MOU establishes a clear framework for collaboration while protecting the City’s interests. Key provisions include:

RTA Responsibilities (Section 1):
 RTA will fund up to $13,800,000 toward the transit portion of the Hub (inclusive of the $7,000,000 AHSC grant). These funds cover pre-construction (architectural/engineering and environmental review, capped at $2,400,000), construction, project management, and contingency.
 RTA will complete design, engineering, and construction of the Hub and obtain all necessary City permits, paying applicable pass-through fees and reimbursing the City for third-party review costs.
 RTA will provide public bus transit service at the Hub and handle daily maintenance (trash removal, cleaning, landscaping, minor repairs) and 24/7 security.  Upon completion, RTA will maintain required insurance pursuant to the License Agreement.  In the event of cost overruns beyond $13.8 million, the Parties will meet and confer in good faith; unresolved disputes after 60 days allow either Party to terminate the MOU with 30 days’ notice.

City Responsibilities (Section 2):
 The City will serve as the lead agency for California Environmental Quality Act (CEQA) and National Environmental Protection Act (NEPA) review.
 The City will provide the Hub Site at no charge to RTA.  As a monetary contribution to the project, the City will waive approximately $12,573 in permitting and processing fees (listed in Exhibit C), plus any additional plan-check fees that may be approved separately by Council. All other fees will be paid by RTA at standard rates.  The City will grant RTA a recorded 40-year License (the minimum “useful life” per Federal Transit Administration guidelines) to use the Site, effective upon Hub operation. The City retains exclusive land-use, zoning, and permitting authority; RTA waives any contrary claims.  If the City revokes the License or materially interferes with Hub use (outside of police-power exceptions or RTA breach), the City must reimburse RTA for design/construction costs (less straight-line depreciation) and relocation expenses.
 Within five years of Hub operation, the City will initiate formation of a Community Facilities District (CFD) under the Mello-Roos Act to generate revenue covering at least 50% of reasonable maintenance and security costs for the Hub’s 40-year useful life. RTA will participate cooperatively in CFD formation.

Joint Responsibilities (Section 3):

The Parties will jointly pursue additional grant funding and coordinate public outreach and education materials.

18.E.

General Provisions (Section 4):

Standard provisions address notices, non-unreasonable withholding of approvals, severability, entire agreement, and mutual indemnification for negligent acts or breaches. The MOU was jointly prepared and will be construed fairly.

Benefits to the City:
 Leverages external grant funding to create a state-of-the-art transit hub that will enhance mobility, reduce vehicle miles traveled, and serve as a catalyst for downtown economic development and private investment.
 Aligns with the City’s General Plan and Downtown Specific Plan goals for sustainability, walkability, and revitalization.
 City retains full land-use control and receives a long-term revenue mechanism (CFD) to offset ongoing costs.
 Minimal direct City capital outlay beyond waived fees and CEQA leadership (with reimbursement for third-party costs).

Risk Mitigation:

Cost overruns, maintenance shortfalls, and disputes are addressed through good-faith meet-andconfer requirements, potential termination rights, third-party arbitration, and the future CFD.

STRATEGIC PLAN INTEGRATION:

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

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

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

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

One-time: The City will waive approximately $12,573 in fees (plus CEQA filing fees to be determined at filing). The City will incur no land rental or capital contribution costs for the transit Hub itself.

Ongoing: RTA bears primary responsibility for maintenance and security, offset by any future tax district revenues. The City will lead CFD formation (administrative costs expected to be minimal and recoverable). No General Fund impact is anticipated.

Long-term: The Hub is expected to generate positive economic benefits through increased transit ridership, downtown activity, and potential private development on adjacent City-controlled land shown in Exhibit B.

ATTACHMENT(S):

Attachment 1: Mobility Hub MOU - Post AHSC_ Final

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4918-8055-4074, v. 1
DRAFT 9/21/20 1

HEMET MOBILITY HUB

MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding (“MOU”) is entered into on this ____ day of __________, 2026 (“Effective Date”) by and between the CITY OF HEMET, a California municipal corporation, (“CITY”) and RIVERSIDE TRANSIT AGENCY, a California joint powers agency (“RTA”). CITY and RTA may be collectively referred to herein as the “Parties.”

RECITALS
A. On March 12, 2024, RTA and the CITY entered into the Affordable Housing and Sustainable Communities (AHSC) Implementation and Cooperation Agreement.

B. On August 22, 2024, the CITY and Palm Communities, a California corporation, acting as the affordable housing developer were awarded $35,494,215 in AHSC funding for the Palm Villas at State Project.

C. RTA will be receiving seven million dollars ($7,000,000) of the awarded AHSC funding to construct the Hemet Mobility Hub, where RTA will develop a transit hub in the City of Hemet that will include transit facilities designed to bring economic development, mobility technologies, new and emerging mobility options, traditional transportation services, and pedestrian, bicycle, and other nonmotorized mobility options, to the Hemet downtown area (hereafter referred to as “Hemet Mobility Hub” or “Hub”).

D. The Hub is proposed to be located on a CITY-owned parcel at Devonshire Avenue in Hemet, California, identified by Assessor’s Parcel Number 443-140-024 (“Hub Site”). A parcel map of the Hub Site is attached as Exhibit A and incorporated herein by reference.

E. The Project, Project Site and land for Potential Future Private Development are shown in the Conceptual Site Plan (Option D) attached hereto as Exhibit B and incorporated herein by reference.

F. This MOU is intended to outline the responsibilities and obligations of the Parties as it relates to the development, construction and maintenance of the Hub.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained here and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

1. RTA RESPONSIBILITIES.

1.1. RTA will contribute an amount not to exceed thirteen million, eight hundred thousand dollars ($13,800,000) toward the development of the Hub only. This amount is inclusive

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of the seven million dollars ($7,000,000) of awarded AHSC funding. This amount may be used to pay for any and all costs associated with the transit portion of the Hub, including but not limited to preconstruction costs such as architectural and engineering phases (“A&E”), environmental review costs associated with the Hub, and actual construction cost, including project management and a contingency. Of the $13.8 million, a maximum amount of two million, four hundred thousand dollars ($2,400,000) can be used towards A&E and environmental review costs for the Hub. In the event that total project costs exceed $13,800,000, the Parties shall meet and confer in good faith within thirty (30) days of receiving notice of such cost overrun to determine how to address the shortfall, which may include value engineering, scope reduction, identification of additional funding sources, or cost-sharing arrangements. If the Parties cannot reach agreement within sixty (60) days, either Party may terminate this MOU upon thirty (30) days' written notice, and neither Party shall have any further obligations hereunder except for costs already incurred.

1.2. RTA will be responsible for completing the A&E and construction of the Hub.

1.3. RTA will submit to CITY those applications for permits and approvals required by CITY for the Hub. RTA will pay for all pass-through fees collected by CITY on behalf of other agencies applicable to the Hub. RTA will reimburse CITY for any expenses it incurs from third-party vendors and contractors related to the review, approval and permitting of the Hub.

1.4. RTA will provide public bus transit service to the Hub. RTA in its sole discretion shall determine all schedules, times, routes, vehicles and any other matters related to its provision of public transit service within the Hub Site.

1.5. Upon completion of the Hub, RTA shall maintain insurance as may be required by CITY pursuant to the license agreement referenced in Section 2.4.

1.6. RTA will be responsible for daily maintenance and 24 hours a day, 7 days a week security at the Hub.. Daily maintenance shall mean, including but not limited to trash removal, cleaning, landscaping, and minor repairs. In the event that a local tax district, bond, or other funding mechanism is established and generates revenue for such purposes, such revenue shall be used to offset RTA's costs for maintenance and security. If no such funding mechanism is established within five (5) years of the Hub becoming operational, or if any such funding mechanism proves insufficient, the Parties shall meet and confer in good faith to determine an equitable allocation of maintenance and security costs

2. CITY RESPONSIBILITIES.

2.1. CITY will act as the lead agency for the purposes of conducting legally required environmental review for the Project under the California Environmental Quality Act and the National Environmental Protection Act.

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2.2. CITY will provide the Hub Site for the development of the Hub. CITY will not charge RTA for use of the land for the Hub.

2.3. All permits and approvals for the Hub shall be secured by RTA, and all such applications submitted to the CITY shall be processed in accordance with the then-current Hemet Municipal Code, including the timing provisions therein, and shall not be accorded separate and special treatment pursuant to this MOU. Except for those fees identified in Exhibit “C,” attached hereto and incorporated herein (“Waived Fees”), all permitting and processing fees shall be paid by RTA, and all CITY-imposed fees shall be in the amount prescribed by the Hemet Municipal Code or duly adopted City Council Resolution in effect at the time the fee is imposed. Notwithstanding the foregoing, as a monetary contribution toward the Hub, CITY shall be responsible for the payment of all Waived Fees and shall not charge RTA for payment thereof or otherwise delay the processing of entitlements for reason of nonpayment.

2.4. CITY shall grant to RTA a license (“License”) to use the Hub Site for a term of forty (40) years, effective on the date the Hub becomes operational (“License Term”), unless earlier terminated by mutual written agreement of the Parties or as otherwise provided in this MOU. The License shall be recorded against the Hub Site. During the License Term, CITY shall not take any action that would prevent or materially interfere with RTA’s use and operation of the Hub as contemplated by this MOU, except as necessary to exercise its police power to protect public health, safety, or welfare, or to comply with applicable federal or state law.

2.4.1 Exclusive City jurisdiction. Notwithstanding any present or future federal, state, or local statute, regulation, or ordinance, CITY shall retain the sole and exclusive authority to establish, interpret, administer, and enforce all land‑use, zoning, subdivision, general‑plan, environmental‑review, and building‑permit requirements applicable to the Hub Site and any improvements thereon.

2.4.2 Waiver of contrary rights. RTA expressly acknowledges and agrees that the License does not convey, and RTA hereby irrevocably waives, any right it might now or hereafter claim to act as the land‑use, permitting, or “objective‑standards” authority for the Hub Site pursuant to any present or future federal, state, or local statute, regulation, or ordinance; and no future change in law shall be construed to diminish or transfer CITY’s land‑use jurisdiction without CITY’s express written consent, which consent may be withheld in CITY’s sole and absolute discretion.

2.4.3 Cooperation with City processes. RTA shall comply with, and shall cause its contractors, tenants, sublicensees, and successors to comply with, all CITY land‑use and permitting requirements that are generally applicable to comparable public facilities, as such requirements may be amended from time to time by CITY in the lawful exercise of its police power.

2.5. If CITY revokes RTA’s license or if the use, or any portion thereof, of the Hub for transit is stopped or obstructed by CITY prior to the end of the License Term, which the Parties

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agree is at a minimum the useful life of the Hub, CITY will pay for removal and relocation of the transit amenities, if applicable, and will reimburse RTA for the cost to design and construct the Hub, or any portion thereof, minus any depreciation of the Hub's value over time; provided, however, that CITY shall have no obligation to reimburse RTA or pay for removal and relocation if such revocation, stoppage, or obstruction results from (i) RTA's material breach of this MOU or the License, (ii) safety violations or conditions at the Hub that pose an imminent threat to public health or safety, or (iii) RTA's failure to maintain required insurance, provided that provisions (i), (ii), (iii) are determined by a mutually agreed upon neutral third-party arbitrator. As used in this MOU, "useful life" means a period of at least forty (40) years from the date the Hub becomes operational, as required by FTA Circular 5010.F.

2.6. Within no more than five (5) years of the Hub becoming operational, CITY shall initiate proceedings to form a Community Facilities District ("CFD") pursuant to the Mello-Roos Community Facilities Act of 1982 (Gov. Code § 53311 et seq.) to help fund the maintenance and security at the Hub. The City and RTA agree that the CFD shall be structured to generate sufficient revenue to fund at least fifty percent (50%) of the reasonable costs related to maintenance and security of the Hub. RTA shall actively participate in discussions regarding the formation, boundaries, and special tax structure of the CFD and shall not unreasonably withhold agreement on matters within its authority.

The Parties shall cooperate in good faith to determine the appropriate boundaries and special tax rates for the CFD based on the required nexus between the properties to be taxed and the benefits they receive from the Hub to help fund the maintenance and security at the new Hub for the useful life of the project of at least 40 years per Federal Transit Administration (FTA) guidelines.

3. JOINT RESPONSIBILITIES.

3.1. The Parties will explore additional grant funding opportunities for the Hub as needed and cooperate as necessary in applying for identified opportunities.

3.2. The Parties will coordinate and cooperate in preparing and disseminating public outreach and education materials related to the Hub.

4. GENERAL PROVISIONS.

4.1. Any notices required to be given hereunder shall be in writing and shall be personally served or given by mail. Any notice given by mail shall be deemed given when deposited in the United States Mail, certified and postage prepaid, addressed to the party to be served as follows:

TO CITY: TO RTA:

City of Hemet Melissa Blankenship
Attn: Community Development Director Director of Contracts 445 E. Florida Ave 1825 Third Street
Hemet, California 92543 Riverside, California 92507

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4.2. Whenever review, consent, or approval of either party must be given, or where it can be withheld, that party must not unreasonably review or withhold such consent or approval.

4.3. As this MOU was jointly prepared by both parties, the language in all parts shall be construed according to its fair meaning and not for or against either party.

4.4. If any provision of this MOU is determined to be void by any court of competent jurisdiction, then such determination shall not affect any other provision of this MOU and all such other provisions shall remain in full force and effect so long as the material terms of this MOU can be reasonably implemented and the Parties shall negotiate in good faith to modify this MOU so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby can be consummated as originally contemplated to the greatest extent possible. It is the intention of the parties that if any provision of this MOU is capable of two constructions, one of which would render the provision void, and the other which would render the provision valid, then the provision shall have the meaning that would render it valid.

4.5. Each party acknowledges and represents that it has not relied on the promise, statement or representation of the other party or such other party’s employees, attorneys or agents that are not contained in this MOU. This MOU constitutes the entire understanding of the parties with respect to the subject matter hereof, and there are no other representations, promises, warranties, covenants or undertakings with respect thereto.

4.6. Each party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other party (the "Indemnified Party"), its officers, directors, employees and agents from and against any and all claims, demands, actions, suits, damages, liabilities, losses, settlements, judgments, costs and expenses (including reasonable attorneys' fees and costs) arising from or related to (i) the Indemnifying Party’s negligent acts or omissions or those of its officers, employees, agents, contractors or subcontractors in connection with this Agreement, construction of the Project, and operations of the Hub, or (ii) the Indemnifying Party's breach of any provision of this Agreement. As to any third-party claim, the Indemnified Party shall promptly notify the Indemnifying Party of any claim subject to indemnification, shall cooperate with the Indemnifying Party in the defense of such claim and the Indemnifying Party shall have the right to control the defense and settlement of any such claim, provided that no settlement affecting the Indemnified Party shall be entered into without the Indemnified Party's prior written consent.

In witness thereof, the parties have caused this MOU to be executed by their respective officers.

RIVERSIDE TRANSIT AGENCY THE CITY OF HEMET
Kristin Warsinski, Chief Executive Officer Mark Prestwich, City Manager

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Date: _____________________ Date: _____________________ APPROVED AS TO FORM: APPROVED AS TO FORM:

By: By:

Name: __________________________ Name: ____________________________ Date: _____________________ Date: _____________________

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EXHIBIT A

PARCEL MAP

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-8055-4074, v. 1
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EXHIBIT B

CONCEPTUAL SITE PLAN

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EXHIBIT C
Waived Fees include the following:

Conditional Use Permit $10,062
DRC Pre-Application Fee $1,693
CEQA Filing Fees $[To be determined based on actual filing fees at the time of application]
Public Hearing Newspaper $361
Public Hearing Mail $417
Scanning Fee $40
Total: $12,573 [plus CEQA Filing Fees to be determined] Additional plan check fees may be waived upon separate approval by the Hemet City Council, subject to review of final costs once those costs are known.

18.E.

City of Hemet
City Council Meeting

STAFF REPORT
Meeting: City Council Meeting - Apr 28 2026
Department: Administration
Submitted by: Mark Prestwich, City Manager
Mark Prestwich, City Manager;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:

Analysis of Current Rotating Mayor and Five-District Council Structure vs. a Directly Elected Mayor and Four-District Council Structure
RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

1. Receive and file this report; and,

2. Provide direction to the City Manager regarding City Council interest in transitioning to a directly elected Mayor and Four-District Council Structure, term length, and procedural approach.

BACKGROUND:

The City of Hemet is a general law city operating under the Council-Manager form of government.

Under this form of government, the City Council serves as the City’s legislative and policy-making body, and the City Manager is appointed by, and serves at the pleasure of, the City Council as the City’s chief administrative officer. The City currently elects five Council Members by district, and the office of Mayor rotates among the Council Members pursuant to Council action.

On February 10, 2026, the City Council discussed the possibility of transitioning to a directly elected Mayor and directed the City Manager to return with a more comprehensive report addressing the governance, electoral, legal, and procedural considerations associated with such a change.

For a general law city such as Hemet, a directly elected Mayor does not convert the City into a “strong mayor” form of government. The Mayor remains a member of the City Council and, absent some separate source of legal authority not proposed here, has the same powers and duties as any other Council Member. The City’s Council-Manager form of government would remain in place, and the City Manager would remain responsible for day-to-day administration and implementation of City Council policy. The principal effect of the change would be political and representational: the Mayor would be chosen by the voters citywide rather than selected by the City Council from among its members.

18.F.

Under California law, the City Council has two potential procedural paths to consider if it wishes to move to a four-district council structure with a citywide elected Mayor.

First, under Government Code sections 34900 and 34901, the City Council may submit to the voters the question of whether the City should thereafter elect a Mayor and four City Council Members, together with the question of whether the Mayor should serve a two-year or four-year term. That voter-approved path is the traditional method for establishing the elective office of Mayor in a general law city.

Second, Government Code section 34886 provides that a city may adopt an ordinance establishing election of its legislative body “by district or by district with an elective mayor,” without submitting the ordinance to the voters for approval, provided the ordinance complies with Elections Code section 21130 and includes a declaration that the change in the method of election is being made in furtherance of the purposes of the California Voting Rights Act of 2001 (“CVRA”). Because Hemet already uses district-based elections, this statute may provide a means to transition from five districts to four districts with an elective Mayor, but only if the City develops a sufficient legal and factual record to support the required findings and completes the associated districting process lawfully and on an accelerated schedule.

At this meeting, staff is not requesting adoption of a resolution calling an election or adoption of an ordinance implementing the change. Rather, staff seeks policy direction. If the City Council wishes to proceed, the City Manager and City Attorney would return at a future meeting with the appropriate implementing documents for consideration.

ANALYSIS:

The policy question before the City Council is not whether Hemet should adopt a different form of government, but whether Hemet should change the method by which its presiding and representative head is selected. Under either alternative considered in this report, Hemet would remain a general law, Council-Manager city. A directly elected Mayor would not become the City’s chief executive officer, independently administer City departments, or displace the authority of the City Manager. The principal differences between the current model and the proposed model relate to voter accountability, citywide representation, continuity of leadership, and the composition of the legislative body.

1. Current Structure: Five Districts with a Rotating Mayor Under the City’s current structure, each Council Member is elected by and represents a single district.

The Mayor is selected from among the sitting Council Members. This model maximizes district-level geographic representation, preserves parity among Council Members, and avoids creating a separate citywide elected office.

What the current model does not provide, however, is a citywide elected official who is directly accountable to all voters. Some communities prefer an identifiable citywide leader for regional advocacy, intergovernmental relations, ceremonial functions, and public accountability. Those considerations are policy matters for the City Council and, if the ballot-measure route is pursued, for the voters.

18.F.

2. Alternate Structure: Four Districts with a Citywide Elected Mayor A four-district council structure with a citywide elected Mayor would reduce the number of district seats from five to four and create one separately elected citywide office. As a general law city, the elected Mayor would act as a member of the City Council with the same voting power and legislative authority as Council Members. This structure would provide a citywide elected office while preserving district-based representation for the remaining four Council seats.

This structure may offer the benefit of a more visible and stable citywide representative, while still preserving district elections for the Council majority. However, it also reduces the number of districtspecific seats and therefore requires that district boundaries be redrawn while ensuring that communities of interest can continue to be effectively represented.

3. Ballot-Measure Alternative
If the City Council wishes to pursue a voter-approval path, the City Council could direct the City Manager and City Attorney return at a future meeting with a resolution placing the matter on the November 2026 General Municipal Election ballot. Under Government Code sections 34900 and 34901, the ballot would ask voters whether the City should thereafter elect a Mayor and four City Council Members, and whether the Mayor’s term should be two years or four years.

The ballot-measure route would incur costs of running a City-wide municipal election and does not provide the most efficient implementation. Government Code section 34902 provides that, if the proposition is approved, the office of Mayor becomes elective and, at the next succeeding general municipal election, one of the offices to be filled is designated as the office of Mayor. As a result, if the City places the structural question on the November 2026 ballot, and it passes, the first election for the office of Mayor would occur at the next succeeding general municipal election currently scheduled for November 2028.

4. Ordinance Alternative Under Government Code Section 34886 Government Code section 34886 authorizes a legislative body to adopt an ordinance requiring members of the legislative body to be elected “by district or by district with an elective mayor,” without voter approval, so long as the ordinance complies with Elections Code section 21130 and includes a declaration that the change is being made in furtherance of the purposes of the CVRA.

Unlike the Ballot-Measure Alternative above, the Ordinance Alternative has the advantage of an efficient implementation without the costs of a municipal election and implementation by November 2026. This pathway would require significant efforts to implement, specifically compliance with the districting statutes in time for the nomination period. The City Council should recognize that the presence of a citywide elected Mayor creates one at-large office. Although section 34886 expressly authorizes the “by district with an elective mayor” model, the City should not proceed by ordinance unless in its judgment, the factual record supports a conclusion that the revised four-district structure continues to further fair and effective district-based representation.

5. Term Length
If the City Council wishes to proceed, it should also provide policy direction regarding term length, either a two-year term or four-year term, which would balance frequent voter participation with the benefits of greater continuity, stronger regional representation, and reduced election frequency (and associated costs).

18.F.

6. Transition Mechanics
Any transition to a four-district / elected Mayor structure requires more than approval of the concept. It requires a detailed transition plan.

At a minimum, the implementing documents would need to specify when the current five-district map is superseded by the new four-district map; how and when the office of Mayor is first placed on the ballot; how existing staggered terms are preserved or adjusted consistent with law; which district seats are to be contested in 2026 and thereafter; and whether any one-time staggering adjustment is required under Government Code section 34906.

The City should also anticipate the need for conforming amendments to the Municipal Code, Council rules, election materials, candidate nomination materials, and public-facing descriptions of the Mayor’s role. Those implementing documents should make clear that the Mayor remains part of the City Council and that the City Manager remains the chief administrative officer of the City.

DISCUSSION:

If the City Council wishes to preserve an efficient implementation timeline by transitioning to an AtLarge Mayor and Four Districts by ordinance, the redistricting process would need to begin as soon as possible. Transitioning to four districts requires adoption of a new district map supported by a legally sufficient public process and a defensible record.

If the City Council chooses the ballot-measure route, the City would still need to begin redistricting promptly if it wishes to minimize the implementation gap after voter approval. However, as discussed above, the ballot-measure route likely would not result in the Mayor being elected at the November 2026 election itself because Government Code section 34902 contemplates election of the Mayor at the next succeeding general municipal election after approval of the proposition.

STRATEGIC PLAN INTEGRATION:

N/A
FISCAL IMPACT:

The City would likely need to engage the services of a professional demographer to support the redistricting process. The last demographer following the 2020 census performed their work in 2021- 2022, which had a cost of approximately $44,000. Staff estimates there may be some cost savings if the City re-engages the same demographer, but other costs have increased, so the City Council should anticipate approximately $50,000 in expenses.

18.F.