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1830 MacMillan Park Dr
Fort Mill, SC 29707
Karl Wendt, Procurement Manager
1305 E Walnut ST
Des Moines, IA 50319
June 26, 2024
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17.C.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jul 14 2026
Department: Public Works
Submitted by: Noah Rau, Interim City Manager
Travis Holyoak, Water/Waste Water Superintendent;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:
Approval of a Supplemental Appropriation for Groundwater Recharge Costs and Payment of Eastern Municipal Water District Recharge Water Invoice
RECOMMENDED ACTION:
It is respectfully recommended that the City Council adopt the following resolution (Attachment No. 1):
RESOLUTION NO. 2026-120 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEMET, CALIFORNIA, APPROVING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $428,457.13 FROM WATER UTILITY FUND 571 TO FY 2025-26 OPERATING BUDGET ACCOUNT NO. 571.10.9000.52410 TO FUND THE GROUNDWATER RECHARGE WATER INVOICE,
AUTHORIZING THE ADMINISTRATIVE SERVICES DIRECTOR TO PROCESS THE
APPROPRIATION, AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS
RELATED THERETO
EXECUTIVE SUMMARY:
The City of Hemet participates in the Hemet-San Jacinto Groundwater Management Plan and is required under the Hemet-San Jacinto Watermaster Judgment to fund its proportionate share of groundwater recharge activities that ensure the long-term sustainability of the Hemet-San Jacinto Groundwater Basin. Eastern Municipal Water District (EMWD) procures imported State Water Project water from the Metropolitan Water District of Southern California and invoices the participating agencies for their respective share of groundwater recharge costs.
The City annually budgets for groundwater recharge within the Water Utility Fund. During years when recharge water is unavailable, budgeted funds are carried forward to future fiscal years. When additional recharge water becomes available, the participating agencies have the opportunity to purchase and store water in the groundwater basin for future use, strengthening long-term water supply reliability and helping meet future recharge obligations.
During FY 2025-26, recharge water remained available longer than anticipated, resulting in an additional invoice from EMWD in the amount of $428,457.13 for the City's proportionate share of
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groundwater recharge costs. The current operating budget does not contain sufficient appropriations to cover the outstanding invoice.
Staff recommends that the City Council approve a supplemental appropriation of $428,457.13 from the Water Utility Fund (Fund 571) to FY 2025-26 Operating Budget Account No. 571.10.9000.52410, authorize the Administrative Services Director to process the appropriation, and authorize the City Manager to execute all documents necessary to complete the transaction. Approval of the proposed resolution will ensure the City meets its financial obligations under the Watermaster Judgment while continuing to protect the long-term reliability and sustainability of the region's groundwater supply.
BACKGROUND/ANALYSIS:
The City of Hemet, in partnership with the City of San Jacinto, the Eastern Municipal Water District (EMWD), and the Lake Hemet Municipal Water District, participates in the cooperative management of the Hemet-San Jacinto Groundwater Basin. Through this partnership, the agencies collectively monitor groundwater recharge and extraction to ensure the long-term sustainability of the basin.
The Hemet-San Jacinto Watermaster was established pursuant to a Stipulated Judgment entered by the Superior Court of California, County of Riverside, on April 18, 2013 (Riverside County Superior Court Case No. RIC1207274). The Watermaster is responsible for administering the Judgment, overseeing groundwater production and recharge activities, and ensuring compliance with the basin management requirements established by the Court.
Eastern Municipal Water District (EMWD), one of 26 member agencies of the Metropolitan Water District of Southern California (MWD), serves as the importing agency for supplemental water supplies. MWD provides imported water from both the State Water Project and the Colorado River Aqueduct in raw and treated forms. Water used for groundwater recharge is purchased by EMWD from MWD, with EMWD subsequently billing the participating agencies for their proportional share of the recharge costs.
In 2006, EMWD entered into an agreement with the California Department of Water Resources to construct groundwater recharge facilities known as the Hemet-San Jacinto Integrated Recharge and Recovery Program (IIRP). The City of Hemet, the City of San Jacinto, and the Lake Hemet Municipal Water District contributed funding toward the construction of these facilities. The IIRP recharge ponds receive imported State Water Project supplies and replenish the Hemet-San Jacinto Groundwater Basin. The facilities were developed to improve the long-term reliability of the region's groundwater supply, maintain basin sustainability, and fulfill water supply obligations established under the Watermaster Judgment, including ensuring groundwater availability for the Soboba Band of Luiseño Indians.
Pursuant to the Watermaster Judgment, a minimum of 7,500 acre-feet of water must be recharged into the basin annually. Recharge costs are allocated among the participating agencies based on the proportion of each agency's service area within the groundwater basin. Under this cost allocation methodology, the City of Hemet is responsible for 19.6 percent of the annual groundwater recharge costs.
DISCUSSION:
The City annually budgets funding within the Water Utility Fund Operating Budget (Fund 571) for the purchase of groundwater recharge water. During years when recharge water is unavailable due to
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hydrologic conditions or limitations in imported water supplies, the budgeted funds remain in the recharge water account and are carried forward for future groundwater recharge purchases.
When imported recharge water becomes available and the Metropolitan Water District of Southern California has sufficient capacity to deliver water in excess of the annual recharge requirement of 7,500 acre-feet, the participating agencies may purchase additional recharge water and store it within the Hemet-San Jacinto Groundwater Basin for future use. This practice allows the agencies to build groundwater reserves that can be utilized during dry years or periods when imported recharge water is unavailable, thereby improving long-term water supply reliability.
As of the date of this report, the participating agencies have fully satisfied the basin's required recharge obligations for calendar years 2026, 2027, 2028, and 2029. Additionally, 4,245 acre-feet of recharge water has already been credited toward the 2030 recharge obligation. Purchasing recharge water while it is available provides long-term operational and financial benefits by securing future groundwater supplies before imported water availability becomes constrained.
Historically, the recharge water account (Account No. 571.10.9000.2410) has maintained sufficient funding to satisfy the City's annual share of groundwater recharge costs. However, staff did not anticipate that imported recharge water would remain available through the end of Fiscal Year 2025-
26. As a result, Eastern Municipal Water District continued delivering recharge water beyond the period originally budgeted, requiring the City to pay its proportional share of the additional recharge costs.
Staff is requesting approval to pay the attached invoice from Eastern Municipal Water District in the amount of $428,457.13 for the City's share of recharge water purchased during the remainder of FY 2025-26. Approval of this payment will allow the City to continue meeting its obligations under the Hemet-San Jacinto Watermaster Judgment while taking advantage of available recharge capacity to strengthen the reliability of the City's long-term groundwater supply.
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.
FISCAL IMPACT:
The invoice from Eastern Municipal Water District totals $428,457.13 and represents the City's proportional share of groundwater recharge water purchased during the remainder of FY 2025-26.
Staff recommends the Council to authorize the Administrateive Servies Director to appropriate additional funding to Account No. 571.10.9000.2410 to fully fund the payment. Sufficient funds are available within the Water Utility Fund to support the requested budget adjustment. Approval of the recommended action will not impact the General Fund.
17.D.
ALTERNATIVE(S):
1. Do not approve the Supplemental Appropriations to cover the recharge water invoice.
2. Provide alternative direction to the City Manager.
ATTACHMENT(S):
Attachement No.1 - Resolution No. 2026-120
Attachement No.2-INVOICE-City of Hemet 104973 2026-06-15 2026-06-15
17.D.
CITY OF HEMET RESOLUTION NO. 2026-120 1
CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-120
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, APPROVING A
SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF
$428,457.13 FROM WATER UTILITY FUND 571 TO FY
2025-26 OPERATING BUDGET ACCOUNT NO.
571.10.9000.52410 TO FUND THE GROUNDWATER
RECHARGE WATER INVOICE, AUTHORIZING THE
ADMINISTRATIVE SERVICES DIRECTOR TO PROCESS
THE APPROPRIATION, AND AUTHORIZING THE CITY
MANAGER TO EXECUTE ALL DOCUMENTS RELATED
THERETO
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, the City of Hemet is part of the Hemet-San Jacinto Groundwater Management Plan which monitors the Hemet-San Jacinto Groundwater Basin. The City of Hemet along with the City of San Jacinto, Eastern Municipal Water District (EMWD) and Lake Hemet Water District to monitor the recharge and extraction of water into the Hemet-San Jacinto Basin; and
WHEREAS, the Hemet-San Jacinto Watermaster (Watermaster) is a judicial creation of the Superior Court of the State of California in and for the County of Riverside through the Stipulated Judgment entered on April 18, 2013 (Riverside County Superior Court Case No. RIC 1207274); and
WHEREAS, EMWD is one of twenty-six-member agencies of the Metropolitan Water District of Southern California (MWD) that has access to imported water directly
17.D.
CITY OF HEMET RESOLUTION NO. 2026-120 1
from MWD. MWD imports and sells State Water Project water from Northern California and Colorado River water as both raw water and treated water. Any recharge water received from MWD to recharge the basin is first charged to EMWD, which then invoices the Cities and Lake Hemet their share of the cost; and WHEREAS, the IIRP receives raw water from State Water Project to recharge the groundwater basin. This facility was established to ensure the stability of the water basin for the future of the valley, and also ensure groundwater to the Soboba Tribe.
Recharge of 7,500 acre feet per year is required by the judgement; and WHEREAS, staff budgets for recharge water every year in the Fiscal Year Operation Budget for the Water Utility Fund 571. During dry years, recharge may not be available, so funding is carried forward into subsequent fiscal year budgets for when recharge water becomes available; and
WHEREAS, when recharge water is available and MWD has the ability to send more than the obligated 7,500 ac/ft of water, the agencies have the ability to purchase the water at today’s price and store for future years, in anticipation dry years; and WHEREAS, the recharge water account for the City 571.10.9000.52410 has been able to fulfill the financial obligation for the recharge, however staff did not anticipate recharge water still being available. Additional funding is needed to cover the recent invoice (Attachment No.2) in the amount of four hundred twenty-eight thousand, four hundred fifty-seven dollars and thirteen cents ($428,457.13) for recharge water for the remainder of the FY 2025/2026 budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
17.D.
CITY OF HEMET RESOLUTION NO. 2026-120 1
SECTION 1. FINDINGS - The recitals set forth above are hereby adopted as findings in support of this Resolution.
SECTION 2. Approve a supplemental appropriation in the amount of four hundred twenty-eight thousand, four hundred fifty-eight dollars ($428,458.00) from Water Utility Fund 571 to FY 25/26 operation budget account 571.10.9000.52410 to cover the recharge water invoice.
SECTION 3. Authorize the Administrative Services Director to appropriate a supplemental appropriation in the amount of four hundred twenty-eight thousand, four hundred fifty-seven dollars and thirteen cents ($428,457.13) from the Water Utility Fund 571 to the FY 2025/2026 Operation Account 571.10.9000.52410.
SECTION 4. Authorize the City Manager to execute all documents related thereto.
SECTION 5. EFFECTIVE DATE - This Resolution shall become effective on July 14, 2026.
PASSED, APPROVED AND ADOPTED this 14th day of July, 2026.
___________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:
________________________ __________________________
Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk
17.D.
CITY OF HEMET RESOLUTION NO. 2026-120 1
State of California )
County of Riverside )
City of Hemet )
I, Rosalia A. Butler, MMC, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 14th day of July, 2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
Rosalia A. Butler, MMC, City Clerk
17.D.
Please return this stub with your payment to ensure proper credit to your account.
Please make your check payable to Eastern Municipal Water District and write your account number on your check or money order.
Payments by credit card are subject to a 2.75% convenience fee.
If you would like to pay your invoice online, please visit www.xxxxxxxxxxxx.com ACCOUNT INVOICE DUE DATE 07/15/2026
C-100021 104973 AMOUNT DUE $ 428,457.13
Remit To:
City of Hemet
445 E Florida Ave
Hemet, CA 92543-4209
Eastern Municipal Water District
Attention: Finance Department
PO Box 8300
Perris, CA 92572-8300
Eastern Municipal Water District
2270 Trumble Road
Perris, CA 92570
Telephone 951-928-3777 ext. 4225
Email [email protected]
INVOICE
Customer ID: C-100021
Invoice Number: 104973
Invoice Date: 06/15/2026
Due Date: 07/15/2026
Terms: Net 30
Amount Due: $ 428,457.13
Bill To:
City of Hemet
445 E Florida Ave
Hemet, CA 92543-4209
Remit To:
Eastern Municipal Water District
Attention: Finance Department
PO Box 8300
Perris, CA 92572-8300
Notes: May 2026 Soboba Settlement purchased water costs & associated O&M delivery charges.
Description Quantity UOM Unit
Price
Amount
422.3 AF @ $775.00 1 327,282.50 327,282.50
422.3 AF @$239.58 1 101,174.63 101,174.63
Sub Total 428,457.13
Tax 0.00
Invoice Total 428,457.13
17.D.
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City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jul 14 2026
Department: Public Works
Submitted by: Noah Rau, Interim City Manager
Travis Holyoak, Water/Waste Water Superintendent;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:
Approval of an Increase to the FY 2025-26 Purchase Order with OC Winwater for Water and Wastewater Pipeline Materials
RECOMMENDED ACTION:
It is respectfully recommended that the City Council adopt the following resolution (Attachment No. 1):
RESOLUTION NO. 2026-121 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEMET, CALIFORNIA, APPROVING AN INCREASE OF $15,000 TO THE FY 2025-26 PURCHASE ORDER WITH OC WINWATER FOR A TOTAL PURCHASE ORDER AMOUNT OF $207,500, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS RELATED THERETO EXECUTIVE SUMMARY:
The Public Works Department, Water and Wastewater Division, maintains the City's water distribution and wastewater collection systems, which serve more than 9,700 residential and commercial water connections and approximately 32,600 residents. Timely access to pipeline materials, repair parts, and maintenance supplies is essential to maintaining reliable utility services and responding to emergency repairs.
On June 24, 2025, the City Council approved a purchase order with OC Winwater for pipeline materials following a competitive solicitation conducted through PlanetBids. Since that time, the Division has experienced higher-than-anticipated usage of pipeline materials due to ongoing maintenance activities, emergency repairs, and the need to maintain adequate inventory levels for critical infrastructure.
Staff recommends increasing the existing purchase order by $15,000, for a revised total purchase order amount of $207,500. The additional funding will cover outstanding invoices through the remainder of FY 2025-26 and ensure uninterrupted procurement of essential materials necessary to maintain the City's water and wastewater infrastructure.
17.E.
BACKGROUND/ANALYSIS:
The Public Works Department, Water and Wastewater Division, operates and maintains the City's water distribution system and wastewater collection system. The Division provides potable water service to more than 9,700 residential and commercial accounts and maintains approximately 6.75 square miles of wastewater collection infrastructure.
Each fiscal year, the Division establishes annual purchase orders for commonly used materials to support routine maintenance, capital improvements, and emergency repairs. Establishing annual purchase orders improves operational efficiency by allowing staff to obtain materials as needed without initiating individual procurements for each purchase.
On May 5, 2025, the City issued a competitive solicitation through PlanetBids for pipeline materials for FY 2025-26. Bids were received on May 27, 2025, and on June 24, 2025, the City Council awarded a purchase order to OC Winwater as the lowest responsive and responsible bidder.
DISCUSSION:
During FY 2025-26, the Division experienced higher-than-anticipated expenditures for pipeline materials due to increased maintenance activities, emergency repairs, and the need to replenish inventory to maintain operational readiness.
Maintaining an adequate inventory of essential water and wastewater materials enables staff to respond quickly to main breaks, service line failures, valve replacements, and other emergency repairs that occur throughout the utility system. Without readily available materials, repairs could be delayed, increasing service interruptions and operational costs.
The existing purchase order is approaching its authorized limit prior to the end of the fiscal year.
Increasing the purchase order by $15,000 will provide sufficient funding to pay outstanding invoices and continue procuring critical pipeline materials through the remainder of FY 2025-26.
PREVIOUS COUNCIL ACTION:
On June 24, 2025, the City Council awarded a purchase order to OC Winwater as the lowest responsive and responsible bidder.
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.
FISCAL IMPACT:
The requested increase of $15,000 will raise the total FY 2025-26 purchase order with OC Winwater from $192,500 to $207,500. Funding is available within the adopted FY 2025-26 Water and
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Wastewater Operating Budget and no additional appropriation is required. Approval of the requested increase will not impact the General Fund.
ALTERNATIVE(S):
1. Do not authorize the increase in the Purchase Order amount.
2. Provide alternative direction to the Interim City Manager.
ATTACHMENT(S):
Attachment No.1 - Resolution No. 2026-121 OC Winwater PO Increase Attachment No. 2 - HEMET PURCHASE ORDER - 2600012_B
17.E.
CITY OF HEMET RESOLUTION NO. 2026-121 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-121
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, APPROVING AN INCREASE
OF $15,000 TO THE FY 2025-26 PURCHASE ORDER
WITH OC WINWATER FOR A TOTAL PURCHASE ORDER
AMOUNT OF $207,500, AND AUTHORIZING THE CITY
MANAGER TO EXECUTE ALL DOCUMENTS RELATED
THERETO
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, the Public Works Department, Water and Wastewater Division operates and maintains water distribution infrastructure serving over 9,700 residential and commercial water connections for a population of approximately 32,600 people along with a Sewer Collection system that covers 6.75 square miles within the City of Hemet; and
WHEREAS, the timely procurement of equipment, replacement parts, and supplies is critical to maintaining a safe and reliable water distribution system that operates 24 hours per day, and keeps the sewer collection system operational; and WHEREAS, an established annual purchase order allows staff to respond immediately, securing access to adequate inventory and saving staff time by eliminating the need for frequent bid solicitations; and
17.E.
CITY OF HEMET RESOLUTION NO. 2026-121 2
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WHEREAS, a solicitation for competitive pricing for Fiscal Year 2025/2026 pipeline materials was issued through PlanetBids on May 5, 2025 with bids accepted on May 27, 2025; and
WHEREAS, the City Council awarded a purchase order to OC Winwater on June 24, 2025; and
WHEREAS, the Public Works Department, Water and Wastewater Division, has experienced higher-than-anticipated expenditures for pipeline materials necessary to maintain the City's water distribution and wastewater collection systems and to maintain adequate inventory for emergency repairs; and
WHEREAS, staff recommends increasing the existing purchase order with OC Winwater by $15,000, for a revised total purchase order amount of $207,500, to cover outstanding invoices through the end of Fiscal Year 2025-26.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
SECTION 1. FINDINGS - The recitals set forth above are hereby adopted as findings in support of this Resolution
SECTION 2. Approve an increase in the amount of $15,000.00 to the Fiscal Year 2025/2026 Purchase Order to OC Winwater for Pipeline materials for a total amount of $207,500.00.
SECTION 3. Authorize the City Manager to execute all documents related to the Purchase Order.
SECTION 4. EFFECTIVE DATE - This Resolution shall become effective on July 14, 2026.
17.E.
CITY OF HEMET RESOLUTION NO. 2026-121 3
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PASSED, APPROVED AND ADOPTED this 14th day of July, 2026. ___________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:
________________________ __________________________
Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk
17.E.
CITY OF HEMET RESOLUTION NO. 2026-121 4
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State of California )
County of Riverside )
City of Hemet )
I, Rosalia A. Butler, MMC, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 14th day of July, 2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
Rosalia A. Butler, MMC, City Clerk
17.E.
CHANGE ORDER
Vendor
Bill To
Fiscal Year
Department
Purchase Order Date
Purchase Order Number
Payment Terms
Ship To
VENDOR PHONE NUMBER VENDOR EMAIL VENDOR NUMBER REQUISITION NUMBER REQUISITIONER NAME DELIVERY REFERENCE NOTES
ITEM # DESCRIPTION QUANTITY UOM UNIT PRICE EXTENDED PRICE GL SUMMARY
DUPLICATE COPY
Purchase Order
ORANGE COUNTY WINWATER WORKS
1617 EAST BALL RD
ANAHEIM, CA 92805
WATER DEPT.
CITY OF HEMET
3777 INDUSTRIAL AVENUE
HEMET, CA 92545
02600012-001
PW - WATER
07/03/2025 Expires: 06/30/2026
THIS NUMBER MUST APPEAR ON ALL INVOICES,
PACKAGES, AND SHIPPING PAPERS.
PLEASE SUBMIT ALL INVOICES TO [email protected]
30 Days
2026 Page 1 of 1
WATER DEPT.
CITY OF HEMET
3777 INDUSTRIAL AVENUE
HEMET, CA 92545
CITY OF HEMET
445 East Florida Avenue
Hemet, CA 92543-4209
951-765-2330
714-996-6299 2600021 TRAVIS HOLYOAK
[email protected]
M
99067
25/26 Water and Sewer Parts and Materials.
The Above Purchase Order Number Must Appear On All Correspondence - Packing Sheets And Bills Of Lading 1 Water Parts and Materials 1.0000 EACH $182,500.0000 $182,500.00 2 Sewer Parts and Materials 1.0000 EACH $10,000.0000 $10,000.00 254.10.4600.52450. $10,000.00
571.10.9000.52450. $182,500.00
Purchase Order Total
Total Ext. Price $192,500.00
$192,500.00
17.E.
TERMS AND CONDITIONS FOR PURCHASE ORDERS
1.PURCHASE OF GOODS & SERVICES. City agrees to purchase, and Vendor agrees to sell, the goods (“Goods”) and/or to provide the services (“Services”) set forth in (i) City’s Notice Inviting Bids or other written solicitation of bids by the Purchasing Agent (“City’s Bid Documents”) and (ii) Vendor’s Bid in response thereto (Vendor’s Bid”). City’s Bid Document and Vendor’s Bid shall be referred to collectively as the “Bid Documents.” The Goods shall be in compliance with all of the standards and specifications set forth in the Bid Documents, and the Services shall be provided in a manner consistent with that level of care and skill ordinarily exercised by members in the same profession, practicing in the same locality under similar conditions. In the event of any conflict, the order of precedent shall be as follows: (i) specifications set forth in this Purchase Order; (ii) City’s Bid Documents; and (iii) Vendor’s Bid. There shall be no substitution of Goods or Services, without written authorization of the Purchasing Agent. City is not obligated to any minimum purchase or future purchase obligations under this Purchase Order.
2.DELIVERY DATE. The Goods must be shipped and must arrive at the destination specified on the Purchase Order as “Ship/Bill To” and Services must be provided by Vendor by the request date specified therein (“Required Delivery Date”).
Any failure by Vendor to meet the Required Delivery Date will constitute a material default of this Purchase Order and City may cancel any Goods not delivered in a timely manner without liability. Vendor must notify City immediately if Vendor reasonably believes Vendor will not be able to meet the Required Delivery Date for any reason and provide the City with a schedule that Vendor reasonably it will be able to meet. It is within City’s discretion whether it will accept the revised schedule. If Vendor fails to deliver by the date specified and City has to purchase goods elsewhere, Vendor will be responsible for any costs City has to expend over and above the original purchase price.
3.PURCHASE PRICE. The purchase price for the Goods and Services shall be the amount set forth in this Purchase Order.
This Purchase Order shall indicate the agreed upon not to exceed amount. Vendor shall notify the City in writing no later than five (5) business days after invoicing for Goods or Services that have reached eighty percent (80%) of the total contract price.
This notification shall include a detailed breakdown of the total amount invoiced to date and the remaining balance of the Purchase Order price. Vendor represents that the prices quoted to or paid by City will not exceed current prices charged to any other customer by Vendor on the Execution Date for items that are the same or substantially similar to the Goods, taking into consideration the quantity under consideration, and the Vendor will forthwith refund any amounts paid by City in excess of the price. Unless otherwise provided, the Goods and Services stated herein will not be subject to any price increase from the date on which this order is accepted by Vendor. This price protection period shall at no time exceed twelve (12) months. If Vendor’s established price for any item upon the delivery date shall be lower than the price shown on this order, then City shall have the benefit of such lower price. In the event that City is entitled to a cash discount, the period of computation will commence on the date of delivery, or receipt of a correctly completed invoice, whichever is later. If an adjustment in payment is necessary due to damage, the cash discount period shall commence on the date final approval for payment is authorized. If a discount is part of the contract, but the invoice does not reflect the existence of a cash discount, City is entitled to a cash discount with the period commencing on the date it is determined by City that cash discount applies.
4.QUANTITY. If Vendor delivers less than fifty (50%) percent of the quantity of the Goods, City may reject all or any Goods, including without limitation all or any excess Goods. Any such rejected Goods shall be returned to Vendor at Vendor’s risk and expense. If City does not reject the Goods and instead accepts the delivery of the Goods at the reduced quantity, the price of the Goods shall be adjusted on a pro-rata basis.
5.CANCELLATION. City, by notifying Vendor in writing, shall have the right to terminate any portion of this Purchase Order prior to the delivery of Goods or at any time during the performance of Services. In the event of such termination, Vendor may submit Vendor’s final written statement of the amount of Vendor’s Services as of the date of such termination based upon the ratio that the work completed bears to the total work required to make the report complete. In ascertaining the work actually rendered through the termination date, City shall consider completed work, work in progress and complete and incomplete reports and their documents only after delivered to City. City shall give Vendor thirty (30) days written notice prior to termination, including where City decides not to pursue or to postpone the project for which the Goods and/or Services were procured. Notwithstanding the foregoing, City may terminate this Purchase Order upon fifteen (15) days written notice to Vendor in the event Vendor substantially fails to perform or materially breaches the Purchase Order terms and conditions.
6.DELIVERY RISK OF LOSS. All orders will be F.O.B. destination if not otherwise specified. Risk of loss or damage to the Goods will remain with the Vendor until the Goods have been delivered to and accepted by City.
7.INSPECTION AND REJECTION OF NONCONFIRMING GOODS. All Goods and Services will be received by City subject to its right of inspection, rejection, and revocation of acceptance under the Uniform Commercial Code. City will be allowed a reasonable period of time to inspect the Goods and Services and to notify Vendor of any nonconformance with the terms and conditions of the specifications. City may reject any Goods and Services that do not conform to the terms and conditions of this Bid Documents. Any Goods and Services rejected may be returned to Vendor at Vendor’s risk and expense.
8.INVOICES. An invoice must be mailed to City at the address specified in the Purchase Order as "Bill To" no later than the 5th day after shipment is made and be sent to [email protected]. Individual invoices must be issued for each shipment against each Purchase Order. Invoices must contain the Purchase Order number, description of Goods and Services, unit price, quantities billed, extended totals, and applicable taxes as set forth in this Purchase Order. Vendor must separately state on all invoices any taxes imposed by the local state or federal state government applicable to furnishing of Goods and Services; provided, however, where a tax exemption is available, the tax must be subtracted from the total price and identified. Unless otherwise set forth in the Purchase Order, the purchase price will be considered to include state and city sales or use tax.
9.PACKING AND SHIPPING. Deliveries must be made as specified, without charge, for boxing, crating, or storage, and secured at the lowest transportation costs, and in a manner to assure against damage from weather or transportation. City’s order numbers and symbols must be plainly marked on all invoices, packages, and shipping orders. Packing lists specifying the quantity, description, and Purchase Order Number must accompany each box or packing shipment. City’s count or weight will be final and conclusive on shipments not accompanied by packing lists.
10.WARRANTY. Vendor warrants that all Goods will conform to applicable specifications and samples, will be merchantable, of good workmanship in material, and free from defect. Unless manufactured pursuant to detailed design furnished by City, Vendor assumes design responsibility and warrants the Goods to be free from design defect and suitable for the purposes intended by City, and that such Goods if installed by Vendor shall conform to applicable specifications. Vendor warrants and represents that all Goods ordered herein are free and clear of the liens, claims, or encumbrances of any kind.
Vendor’s warranties, together with its service guarantees, must run to the City and its customers or users of the Goods and Services and must not be deemed exclusive. The City’s inspection, approval, acceptance, use of, and payment for all or any part of the Goods and Services must in no way affect its warranty rights whether or not a breach of warranty had become evident in time.
11.CHANGES. City has the right to change the quantity or specifications of the Goods and Services ordered and the terms of shipment or packaging of Goods. Upon receipt of any notice, Vendor will proceed promptly to make the changes in accordance with the terms of the notice. If any change causes an increase or decrease in the cost or performance or in the time required for performance, an equitable adjustment must be negotiated, promptly, and the contract modified in writing accordingly. Vendor must deliver to City as promptly as possible, and in any event within thirty (30) days after receipt of change notice, a statement showing the effect of any change in the delivery dates and prices; the statement must be supplemented within thirty (30) days by detailed specification of the amount of the price adjustment and supporting cost figures. Vendor’s failure to submit the statements within the time limits stated will constitute its consent to perform the change without an increase in price, without change in delivery schedules.
12.INTELLECTUAL PROPERTY RIGHTS ASSIGNMENT. For no additional compensation, Vendor hereby assigns to City all of Vendor’s rights, title, and interest in and to the content of all deliverable materials created by Vendor or its employees, agents, or sub consultants, including copyrights, in connection with the Services performed under this Purchase Order. Vendor shall promptly execute and deliver, and shall cause its employees, agents, and sub consultants to promptly execute and deliver, upon request by the City or any of its successors or assigns at any time and without further compensation of any kind, any power of attorney, assignment, application for copyright, patent, trademark or other intellectual property right protection, or other papers or instruments which may be necessary or desirable to fully secure, perfect or otherwise protect to or for the City, its successors, and assigns, all right, title and interest in and to the content of the deliverable materials. For purposes of this section, deliverable materials includes all works, tangible or not, created under this Purchase Order including, without limitation, documents, material, data, reports, manuals, specifications, artwork, drawings, sketches, computer programs, and databases, schematics, photographs, video and audiovisual recordings, sound recordings, marks, logos, graphic designs, notes, website, domain names, inventions, processes, formulas matters and combinations thereof, and all forms of intellectual property. The provisions of this section are binding on the successors, assigns, and heirs of Vendor and shall survive the termination of Vendor’s Services under this Purchase Order.
13.INDEMNITY. Except as to the sole negligence, active negligence, or willful misconduct of City, to the fullest extent permitted by law Vendor shall indemnify, protect, defend (with legal counsel reasonably acceptable to City), and hold harmless City, and any and all of its elected and appointed officials, officers, employees, representatives and agents from any and employee of Vendor) liabilities of every kind (including, without limitation, incidental and consequential damages, court costs, and litigation expenses, and fees of expert consultants or expert witnesses incurred in connection therewith and cost of investigation), damages, costs and expenses, including attorney’s fees and costs, which arises out of, pertain to, or relate to, or is in any manner connected with the Goods and Services provided pursuant this Purchase Order and/or the performance of work, activities, operations, representations, or duties of Vendor, or anyone employed by or working under Vendor, and from all claims by anyone employed by or working under Vendor for services rendered to Vendor in the performance of this Purchase Order, notwithstanding that City may have benefited from their services. The parties expressly agree that any payment, attorneys’ fees, costs or expense that City incurs or makes to or on behalf of an injured employee under City’s self-administered workers compensation is included as a loss, expense or cost for the purposes of this section, and that this section shall survive the expiration or early termination of the Purchase Order.
14.GOVERNING LAW; JURISDICTION. This Purchase Order shall be construed in accordance with and governed by the laws of the State of California. For any dispute arising from this Purchase Order, the parties consent to jurisdiction and venue in the Riverside County Superior Court.
15.SEVERABILITY. If any term, condition or covenant of this Purchase Order is declared or determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Purchase Order shall not be affected thereby and the Purchase Order shall be read and construed without the invalid, void or unenforceable provision(s).
16.ASSIGNMENT. Vendor shall not assign, transfer, delegate, or subcontract any of its rights or obligations under this Purchase Order without prior written consent of City, which may be withheld at City’s sole discretion. Any purported assignment or delegation in violation of this section shall be null and void and shall constitute a material breach of this Purchase Order entitling City to any and all remedies at law or in equity, including termination of this Purchase Order. No assignment or delegation shall relieve Vendor of any of its obligations hereunder.
17.WAIVER. Waiver by any party to this Purchase Order of any term, condition, or covenant of this Purchase Order shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Purchase Order shall not constitute a waiver of any other provision nor a waiver of any subsequent breach or violation of any provision of this Purchase Order. Acceptance by City of any work or Service by Vendor shall not constitute a waiver of any of the provisions of this Purchase Order.
18.COMPLIANCE WITH APPLICABLE LAW. Vendor shall keep fully informed of, and comply with, federal, state, and local laws and ordinances and regulations which in any manner affect those employed by Vendor, or in any way affect the Goods or Services provided by Vendor pursuant to this Purchase Order. Public Works shall be performed in accordance with the provisions of the current edition of the Standard Specifications for Public Works Construction ("Greenbook"), unless otherwise specified in the Bid Documents. Except as provided in Section 12940 of the California Government Code, during Vendor’s performance of this Purchase Order, Vendor shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical handicap, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex or sexual orientation, genetic information, gender, gender identity, or gender expression, in the selection and retention of employees and subcontractors and the procurement of materials and equipment. Vendor shall also comply with the requirements of the Americans with Disabilities Act in the performance of this Purchase Order. Vendor represents and warrants that Vendor has obtained all necessary licenses to provide the Goods or Services and that such licenses are in good standing. Vendor further represents and warrants that the Services provided herein shall conform to all ordinances, policies, and practices of the City.
19.INSURANCE. General Requirements. A. Minimum Coverage. Vendor must maintain the following types of insurance with coverage limits that meet the following minimum requirements (if applicable): (1) Commercial General Liability:
Coverage shall be at least as broad as ISO Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence/$4,000,000 general aggregate; (2) Business Automobile Liability: Coverage shall be at least as broad as ISO Form Number CA 0001 covering Code 1 (any auto), with limits no less than $2,000,000 combined single limit. If Vendor or Vendor’s employees will use personal autos in any way on this project, Vendor must provide evidence of hired and non-owned auto liability coverage; (3) Workers’ Compensation: $1,000,000 per accident or disease; (3) Professional Liability: $1,000,000 per occurrence/$2,000,000 general aggregate; (4) Pollution Legal Liability: $1,000,000 per occurrence/$2,000,000 general aggregate, maintained for a period no less than three (3) years after completion of the services. B. COI/Endorsements. Vendor must file with City Certificates of Insurance and Endorsements evidencing the existence of all insurance required by this Purchase Order, along with such other evidence of insurance or copies of policies as may reasonably be required by City. Each of the certificates must expressly provide that no material change in the policy, or termination thereof, will be effective except upon thirty (30) days prior written notice to City. C. Bonds. Vendor shall provide the following Surety Bonds: (1) bid bond, (2) performance bond, (3) payment bond, and (4) maintenance bond. The Payment Bond and the Performance Bond shall be in a sum equal to the Purchase Order price. If the Performance Bond provides for a one-year warranty a separate Maintenance Bond is not necessary. If the warranty period specified in the purchase order is for longer than one year a Maintenance Bond equal to 10% of this Purchase Order price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California. D.
Subcontractors. Vendor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Vendor shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage subcontractors shall provide coverage with a format least as broad as CG 20 38 04 13. E. Other Requirements.
Vendor may be required to obtain such other insurance coverage as may be required by applicable law or by City.
20.PREVAILING WAGE. If the Services to be provided pursuant to this Purchase Order is a “public work” as defined in California Labor Code Section 1720, this section shall apply. Vendor and all Subcontractors of any tier are required to pay all workers employed in the execution of the Services not less than the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations ("DIR") under Section 1720 et seq. of the California Labor Code. The Director’s determination of prevailing rates 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. Vendors and subcontractors on all public works projects shall submit electronic certified payrolls to the Labor Commissioner and City unless excused from this requirement. Vendor is aware of and stipulates that Vendor will also comply with the following sections of the California Labor Code: Section 1775 prescribing sanctions for failure to pay prevailing wage rates: A. Section 1776 requiring the making, keeping and disclosing of detailed payroll records and prescribing sanctions for failure to do so; B.
Section 1777.5 prescribing the terms and conditions for employing registered apprentices; C. Section 1810 providing that eight hours of labor shall be a day s work; D. Section 1813 prescribing sanctions for violations of the provisions concerning eight-hour work days; E. Sections 1725.5 and 1771.1 requiring all general contractors and subcontractors to be registered with DIR. Registration can be accomplished through the DIR website by using this link:https://www.dir.ca.gov/public-works/contractor-registration.html
21.INTEGRATION;AMENDMENT; AUTHORITY. This Purchase Order represents the entire understanding of City and Vendor as to those matters contained herein. No prior oral or written understanding will be of any force or effect with respect to the terms of this Purchase Order. The Purchase Order may not be modified except by Change Order or Addendum to Purchase Order. The individuals executing this Purchase Order and the instruments referenced herein on behalf of Vendor each represent and warrant that they have the legal power, right and actual authority to bind Vendor to the terms and conditions hereof and thereof.
17.E.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jul 14 2026
Department: Public Works
Submitted by: Noah Rau, Interim City Manager
Jilleen Ferris, Interim Public Works Director/City Engineer; ☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:
A Resolution Approving the Annexation of the All For Show project (CUP 16-002) to the City of Hemet Community Facilities District No. 2024-01 (Public Facilities Maintenance) as Zone 9 RECOMMENDED ACTION:
It is respectfully recommended that the City Council adopt the following resolution (Attachment No. 1):
RESOLUTION NO. 2026-118 - ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEMET, CALIFORNIA, APPROVING THE ANNEXATION OF THE ALL FOR SHOW PROJECT (CUP 16-002) TO THE CITY OF HEMET COMMUNITY FACILITIES DISTRICT NO. 2024-01 (PUBLIC FACILITIES MAINTENANCE) AS ZONE 9
EXECUTIVE SUMMARY:
The proposed resolution approves the annexation of the All For Show commercial project (CUP 16- 002) into City of Hemet Community Facilities District No. 2024-01 as Zone 9. This annexation allows the project to fund the ongoing maintenance of public improvements, including landscaping, irrigation, and street lighting, through a special tax levied on the property, with no impact to the City's General Fund.
BACKGROUND/ANALYSIS:
On September 10, 2024, the City adopted Resolution No. 2024-169 declaring its intention to establish Community Facilities District No. 2024-01 (Public Facilities Maintenance) (the “District” or “CFD 2024- 01”) and Future Annexation Area for maintenance of public facilities. On October 22, 2024, the City adopted Resolution No. 2024-191 (the “Resolution of Formation”) forming CFD No. 2024-01 pursuant to the Mello-Roos Community Facilities Act of 1982 (State of California Government Code Section 5311 et seq.) (the “Act”). The formation process also included the designation of a Future Annexation Area to allow future developments to be annexed into the CFD, with the unanimous vote of 100% of the property owners, with only a single City Council meeting action.
17.F.
The annexation process for projects within the future annexation area is streamlined by receipt of a petition and Unanimous Waiver from the property owner(s), included as Attachment No. 2, the City Council approval of the Annexation Boundary Map, included as Attachment No. 3, by resolution, followed by the recording of the Annexation Boundary Map and Amended Notice of Special Tax Lien, included as Attachment No. 5, by the City Clerk.
Adoption of the attached Resolution, included as Attachment No. 1, approves Annexation Boundary Map No. 7 for the All For Show project and directs the City Clerk to execute and record the Annexation Boundary Map and Notice of Amended Special Tax Lien for the project.
The owners/developers, GTR INV GROUP, requested that the City assist them in annexing their development into CFD 2024-01 as Annexation No. 7 in order to cover the costs associated with the maintenance of public improvements within the proposed commercial project area, which will become Zone 9 (CUP 16-002) (“Zone 9”) of the CFD. Zone 9 was created in order to fund the ongoing maintenance of the following items authorized by CFD 2024-01 (Public Facilities Maintenance) Rate & Method of Apportionment, included in Attachment No. 4:
Lighting: Maintenance of street lights and other lighting of parks, parkways, streets, roads, and open space, including, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures, and standards. Landscaping and Irrigation: Maintenance of landscape vegetation situated on or adjacent to parks, parkways, streets, roads, and open space, including maintenance and repair of irrigation facilities, parks, parkways, streets, roads, and open space, including maintenance and repair of irrigation facilities.
All other related services necessary or useful for, or in connection with, the authorized services listed above, including building a reserve fund for replacement; and listed above, including building a reserve fund for replacement; and
Levy and collect the special tax to fund these services.
DISCUSSION:
Approval of the attached Resolution is required under the Act to levy a special tax and fund services.
The attached Resolution declares the City Council's intention to annex the development to the CFD and to authorize the levy of a special tax in accordance with the attached Rate and Method of Apportionment of Special Tax. The attached Resolution is the only step in annexing the development into the CFD pursuant to the procedures prescribed by the Mello-Roos Community Facilities Act of 1982 (the "Act").
Annexation No. 7 - Special Tax Zone 9 will have a Maximum Special Tax rate of $18,912.00 per acre for Non-Residential property. APN 443-201-026 (All For Show) is composed of 0.18 acres will have a special tax of $3,404 (fiscal year 2026-27). The Maximum Special Tax rates shall increase annually based on the percentage increase in the Consumer Price Index each March, with a maximum annual increase of 6% and a minimum annual increase of 2%.
PREVIOUS COUNCIL ACTION:
On August 23, 2005, the City Council considered and approved goals and policies concerning Community Facility Districts.
17.F.
On October 22, 2024, the City Council adopted Resolution 2024-191, Resolution of Formation to establish City of Hemet Community Facilities District No. 2024-01 (Public Facilities Maintenance) STRATEGIC PLAN INTEGRATION:
GOAL ONE: QUALITY OF LIFE:
To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.
Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.
Objective 2: Explore and implement homelessness solutions for the City of Hemet.
Objective 3: Increase Public Safety visibility and response.
GOAL THREE: COMMUNITY ENGAGEMENT
To connect and participate in a constant dialogue between members of the community, City staff, and elected officials to promote togetherness and positivity.
Objective 1: Deliver messaging to the Community that connects, is consistent, and relevant.
Objective 2: Increase transparency for the public.
Objective 3: Increase the community's pride within the City.
GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.
Objective 1: Operate in a financially sustainable manner.
Objective 2: Evaluate existing practices to ensure continuity with industry best practices.
Objective 3: Provide Council with policies that are consistent while lessening liabilities.
Objective 4: Increase employee retention by training and creating a positive workplace.
Objective 5: Streamline fire prevention coordination efforts.
FISCAL IMPACT:
The property owners have filed a petition representing their willingness to move forward and have submitted a deposit to pay for the City costs incurred in connection with Annexation No. 7 (Zone 9).
After Annexation No. 7, an Amended Notice of Special Tax Lien will be recorded on the property within Annexation No. 7 (Zone 9) and the individual property owners will be responsible for the annual payments of the special taxes. The City will file the annual special tax to be collected with the County Auditor-Controller for placement on the property tax bills.
The City’s annual cost to administer Annexation No. 7 (Zone 9) of CFD 2024-01 will be reimbursed through the special taxes charged to the property owners. The revenue from the special tax will be deposited into a fund for CFD 2024-01 and will be used to pay said administrative expenses and for the maintenance services listed above.
Parcels in Annexation No. 7 (Zone 9) will not be taxed for fiscal year 2026-2027; therefore, it is expected that both the revenues and expenses will not be part of the City’s fiscal year 2026-2027 adopted budget. There is no anticipated impact to the General Fund in fiscal year 2026-2027.
Approval of the actions set forth in this staff report do not in any way commit the City to any financial contribution or liability by CFD 2024-01.
ALTERNATIVE(S):
17.F.
1. Do not adopt the Resolution Approving the Annexation No. 7 (Zone 9), All For Show project – (CUP 16-002) to the City of Hemet Community Facilities District No. 2024-01 (Public Facilities Maintenance).
2. Provide alternate directions to the Interim City Manager.
ATTACHMENT(S):
Attachment No. 1 - Resolution No. 2026-118 Approving Annexation No. 7 (All for Show Zone 9) to Community Facilities District No. 2024-01
Attachment No. 2 - Unanimous Waiver and Consent for Annexation No. 7 (All for Show Zone 9) to Community Facilities District No. 2024-01
Attachment No. 3 - Annexation No. 7 Boundary Map (All for Show Zone 9) Attachment No. 4 - Rate and Method of Apportionment (RMA) for Annexation No. 7 (All for Show Zone 9)
Attachment No. 5 - Notice of Special Tax (NST) for Annexation No. 7 (All for Show Zone 9)
17.F.
CITY OF HEMET RESOLUTION NO. 2026-118 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-118
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, APPROVING THE
ANNEXATION OF THE ALL FOR SHOW PROJECT (CUP
16-002) TO THE CITY OF HEMET COMMUNITY
FACILITIES DISTRICT NO. 2024-01 (PUBLIC FACILITIES
MAINTENANCE)
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, the Conditions of Approval for the All For Show project (CUP 16- 002) require the property owner/applicant to participate in the provision of funding to provide maintenance of all new public improvements associated with the project; and WHEREAS, on September 10, 2024, the City adopted Resolution No. 2024-169 declaring its intention to establish Community Facilities District No. 2024-01 (Public Facilities Maintenance) (the “District” or “CFD 2024-01”) and a future annexation area (the "Future Annexation Area") for maintenance of public facilities. On October 22, 2024, the City adopted Resolution No. 2024-191 (the “Resolution of Formation”) forming CFD No. 2024-01 pursuant to the Mello-Roos Community Facilities Act of 1982 (State of California Government Code Section 53311 et seq.) (the “Act”); and WHEREAS, the action defining the Future Annexation Area for the District provided for a more efficient process for the annexation of property when the property owners have provided for their unanimous consent such that the annexation process for
17.F.
CITY OF HEMET RESOLUTION NO. 2026-118 2
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projects within the Future Annexation Area has been reduced to receiving a petition, consent and waiver from the property owner; and
WHEREAS, in July 2026, the property owner executed a unanimous approval form which irrevocably consents to and votes in favor of the annexation of property to the District and the levy of the special tax on the property to finance the services of the District in accordance with the Rate and Method of Apportionment of the District (the "RMA"); and
WHEREAS, in the case of annexation proceedings, pursuant to Streets and Highways Code Section 3110.5 a separate map of the area proposed to be annexed is required to be prepared and adopted; and
WHEREAS, City staff has caused to be prepared the Annexation No. 7 Boundary Map for the property known as the All For Show project (CUP 16-002) and defined as Zone 9 of the District (the "Territory"), attached hereto as Exhibit A and incorporated herein by reference, for the annexation of the Territory to CFD No. 2024-01 (Public Facilities Maintenance); and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET DOES HEREBY FIND AND RESOLVE TO:
SECTION 1. Recitals. The City Council so finds and determines the above recitals are true and correct.
SECTION 2. Approval of Annexation. The City Council hereby approves the annexation of the All For Show project (CUP 16-002), defined as Zone 9 of the District Territory, to the City of Hemet Community Facilities District No. 2024-01 (Public
17.F.
CITY OF HEMET RESOLUTION NO. 2026-118 3
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Facilities Maintenance), and authorizes the levy of the special tax on the Territory in accordance with the RMA.
SECTION 3. Record Boundary Map. The City Clerk is directed to execute and record Annexation No. 7 Boundary Map in the office of the County Recorder of Riverside County no later than 15 days after the adoption of this Resolution.
SECTION 4. Notice of Special Tax Lien. Notice of Special Tax Lien. The City Clerk is directed to execute and record a Notice of Special Tax Lien, attached hereto as Exhibit B and incorporated herein by reference, in the office of the County Recorder of Riverside County no later than 15 days after recordation of the Annexation No. 7 Boundary Map.
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CITY OF HEMET RESOLUTION NO. 2026-118 4
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PASSED, APPROVED AND ADOPTED this 14th day of July, 2026. ___________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:
________________________ __________________________
Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk
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CITY OF HEMET RESOLUTION NO. 2026-118 5
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County of Riverside )
City of Hemet )
I, Rosalia A. Butler, MMC, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 14th day of July 2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
Rosalia A. Butler, MMC, City Clerk
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1 CITY OF HEMET
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
ANNEXATION NO. 7 (ZONE 9) (CUP 16-002)
UNANIMOUS APPROVAL
OF ANNEXATION TO A COMMUNITY FACILITIES DISTRICT
AND RELATED MATTERS
To the Honorable City Council,
City of Hemet
Members of the Council:
This constitutes the Unanimous Approval (the "Unanimous Approval”) of the All For Show, the record owner(s) (the "Property Owner”) of the fee title to the real property identified below (the “Property”) contemplated by Section 53339.3 et seq. of the MelloRoos Community Facilities Act of 1982, as amended (the “Act”) to annexation of the Property to the “City of Hemet Community Facilities District No. 2024-01 (Public Facilities Maintenance) (the “CFD”), and it states as follows:
1. Property Owner. This Unanimous Approval is submitted by the Property Owner (whether one or more) identified below as or for the recorded owner(s) of the Property identified below. The Property Owner warrants to the City of Hemet (the “City”) that they are such Property Owner or is legally authorized to execute this Unanimous Approval for and on behalf of such Property Owner.
2. Approval of Annexation. This Unanimous Approval constitutes the unanimous approval and unanimous vote by the Property Owner in favor of the annexation of the Property to the CFD. The CFD was formed to finance the municipal services (the "Services”) described in Exhibit A hereto and made a part hereof.
3. Approval of Special Tax and the Facilities. This Unanimous Approval constitutes the unanimous approval and unanimous vote by the Property Owner in favor of the levy of special taxes (the "Special Taxes”) on the Property to finance the Services according to the Rate and Method of Apportionment of Special Taxes for the CFD attached hereto as Exhibit B and made a part hereof (the ”Rate and Method”). Exhibit B describes the maximum special tax rate for the Services.
4. Approval of the Appropriations Limit. This Unanimous Approval constitutes the unanimous approval and unanimous vote by the Property Owner in favor of the appropriations limit established for the CFD.
5. Waivers and Vote. The Property Owner hereby confirms that this Unanimous Approval constitutes its approval and unanimous vote as described herein and as contemplated by Section 53339.3 et seq. of the Act and Article XIIIA of the California Constitution. The Property Owner hereby waives all other rights
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2 with respect to the annexation of the Property, the levy of the Special Taxes on the Property and the other matters covered in this Unanimous Approval.
6. Recordation of Amendment to Notice of Special Tax Lien. The original Notice of Special Tax Lien for the CFD was heretofore recorded November 12, 2024 as Instrument No. 2024-0344328, in the office of the County Recorder for the County of Riverside, State of California, which contains a list of the then existing owners and assessor tax parcel numbers in the District.
The First Amended Notice of Special Tax Lien with respect to the CFD was recorded on July 3, 2025, as Document No. 2025-0205481, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 1 (Zone 3) of the CFD.
The Second Amended Notice of Special Tax Lien with respect to the CFD was recorded on July 10, 2025, as Document No. 2025-0211669, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 2 (Zone 4) of the CFD.
The Third Amended Notice of Special Tax Lien with respect to the CFD was recorded on August 21, 2025, as Document No. 2025-0258339, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 3 (Zone 5) of the CFD.
The Fourth Amended Notice of Special Tax Lien with respect to the CFD was recorded on January 22, 2026, as Document No. 2026-0021229, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 4 (Zone 6) of the CFD.
The Fifth Amended Notice of Special Tax Lien with respect to the CFD was recorded on January 22, 2026, as Document No. 2026-0021256 in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 5 (Zone 7) of the CFD.
The Sixth Amended Notice of Special Tax Lien with respect to the CFD was recorded on May 21, 2026, as Document No. 2026-0155888 in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 6 (Zone 8) of the CFD.
The Property Owner hereby authorizes and directs the City Clerk to execute and
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3 cause to be recorded in the Office of the County Recorder of the County of Riverside an amendment to the Notice of Special Tax Lien for the CFD as required by Section 3117.5 of the California Streets and Highways Code. The amendment to the Notice of Special Tax Lien shall include the Rate and Method as an exhibit thereto.
7. City Warranted. The Property Owner warrants to the City that the presentation of this Unanimous Approval, any votes, consents or waivers contained herein, and other actions mandated by the City for the annexation of the Property to the CFD shall not constitute or be construed as events of default or delinquencies under any existing or proposed financing documents entered into or to be entered into by the Property Owner for the Property, including any “due-on-encumbrance" clauses under any existing security instruments secured by the Property. If requested by the City, the Property Owner agrees, at its own expense, to supply to the City, current title evidence so that the City may verify ownership for the annexation to the CFD.
8. Due Diligence and Disclosures. The Property Owner agrees to cooperate with the City and its attorneys and consultants and to provide all information and disclosures required by the City about the Special Taxes to purchasers of the Property or any part of it.
9. Agreements. The Property Owner further agrees to execute such additional or supplemental agreements as may be required by the City to provide for any of the actions and conditions described in this Unanimous Approval, including any cash deposit required to pay for the City’s costs in annexing the Property to the CFD.
10. The Property: The Property is identified as follows:
The property consists of a total of 0.18 gross acres
By executing this Unanimous Approval, the Property Owner agrees to all of the above.
Property Owner:
GTR INV GROUP By: GTR INV GROUP– its owner or authorized representative By:
Printed Name & Signature
Date:
Assessor Parcel
Number Gross Acres Owner
443-201-026 0.18 GTR INV GROUP
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A-1
EXHIBIT A
COMMUNITY FACILITIES DISRTICT 2024-01
(PUBLIC FACILITIES MAINTENANCE)
DESCRIPTION OF SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2024-01 (Public Facilities Maintenance) (“CFD 2024-01”), as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing facilities (may include reserves for replacement) in public street right-of-way, public lighting, public landscaping, public open spaces and other similar areas officially dedicated for public use. These services including the following:
a) Maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance of streets and roadways including slurry seal, asphalt overly and other similar maintenance; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and b) Maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, fossil fuel filters, infiltration basins, flood control channels and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements and flood control channel improvements; and c) Public street sweeping, on the segments of the arterials within the boundaries of CFD 2024-01; as well as local roads within residential subdivisions located within CFD 2024-01; and any portions adjacent to the properties within CFD 2024-01; and
d) In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
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B-1
EXHIBIT B
COMMUNITY FACILITIES DISRTICT 2024-01
(PUBLIC FACILITIES MAINTENANCE)
ANNEXATION NO. 7 – ZONE 9 (CUP 16-002)
RATE AND METHOD OF APPORTIONMENT SPECIAL TAX
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1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
OF THE CITY OF HEMET, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA A Special Tax (all capitalized terms are defined in Section A., “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2024-01 (Public Facilities Maintenance) (the CFD). The amount of Special Tax to be levied on a Parcel in each Fiscal Year, commencing in Fiscal Year 2024-2025, shall be determined by the City Council of the City of Hemet, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax as set forth in Sections B, C and D, below. All of the real property within the CFD, unless exempted by law or by the provisions of Section F. below, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit(s)” means a secondary attached or detached dwelling unit with complete independent living facilities for one or more persons. “Acre or Acreage” means the land area of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, condominium plan, other recorded County map, or the land area calculated to the reasonable satisfaction of the Administrator using the boundaries set forth on such map or plan. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (Sections 53311 - 53368).
“Administrative Expenses” means all actual or reasonably estimated costs and expenses of the CFD that are chargeable or allocable to carry out duties of the CFD as allowed by the Act. This may include, without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax (whether by the City, the Administrator or both), any litigation or appeal involving the CFD, and other administrative expenses of the City or Administrator directly related to the CFD.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD for attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure as a result of delinquent Special Taxes. “Administrator” means a person or firm designated by the CFD to administer the Special Tax.
“Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the
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2 Special Tax is being levied; and (ii) that have not been issued a Building Permit prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Assessor” means the Assessor of the County.
“Assessor’s Parcel(s)” or “Parcel(s)” means a lot or parcel within the CFD shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number valid as of July 1 st for the Fiscal Year for which the Special Tax is being levied. “Assessor’s Parcel Map” means an official map of the County Assessor of the County designating Parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means the number assigned to a lot or Parcel for purposes of identification as determined from an Assessor Parcel Map or the applicable assessment roll.
“Base Year” means the Fiscal Year ending June 30, 2024. Rates in this Rate and Method of Apportionment for the initial formation are based on FY 2024-25 costs which will be escalated beginning in FY 2025-26. Base Year for future annexations shall be the fiscal year the annexation was approved by the City Council of the City of Hemet. “Boundary Map” means a recorded map of the CFD that indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes, as may be amended due to future annexations of territory to the CFD. "Building Square Footage" or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of NonResidential Property and any Building Square Footage subsequently added to a building of such Non-Residential Property after issuance of a building permit for expansion or renovation of such building.
"Building Permit" means the first legal document issued by a local agency giving official permission for new construction.
“Capital Replacement” means to repair or replace improvements being maintained by the CFD.
“CFD” or “CFD 2024-01” means Community Facilities District No. 2024-01 (Public Facilities Maintenance) of the City of Hemet.
“City” means the City of Hemet, California
“Condominium Residential Property” means a Developed Parcel with an approved land use for residential condominiums (two or more attached units which can each be owned individually). Parcels that are open space, recreation, clubhouse, etc., owned by a condominium association, homeowner’s association or property owner’s association, are Exempt Property.
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3 “Consumer Price Index” or “CPI” means the Consumer Price Index published by the U.S. Bureau of Labor Statistic for “All Urban Consumers” in the Riverside-San Bernardino-Ontario area.
“Consumer Price Index Inflation Factor” means, for any Fiscal Year, the annual change in the Consumer Price Index which shall be measured from the month of March in the Calendar Year that ends in the previous Fiscal Year to the month of March preceding the Fiscal Year. The Maximum Special Tax Rates in Table 1 and Table 2 shall be increased by the amount of the Consumer Price Index Inflation Factor, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) of the Maximum Special Tax Rates in effect for the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario Area.
“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2024-01 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to the definition of Special Tax B (Contingent) that a POA fails to adequately provide such services.
“Council” means the City Council of the City acting as the legislative body of the CFD. “County” means the County of Riverside, California.
“Developed Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit for new construction has been issued prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means any Parcel that is exempt from Special Taxes pursuant to Section F., below.
“Final Map” means a subdivision of property by recordation of a map or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision.
“Fiscal Year” means the 12-month period starting on July 1 of any calendar year and ending the following June 30.
“Future Annexation Area” means the geographic area that, at the time of CFD formation, was considered potential annexation area for the CFD and which was, therefore, identified as “future annexation area” on the recorded Boundary Map. Such designation does not mean that any or all of the Future Annexation Area will annex into
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4 the CFD, but should property designated as Future Annexation Area choose to annex, the annexation may be processed pursuant to the annexation procedures in the Act for territory included in the Future Annexation Area, as well as the procedures established by the City.
“Land Use Class” or “LUC” means any of the classes listed in Table 1 or Table 2 of Section C. or Appendix A, below.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means, for each Parcel in each Fiscal Year, the greatest Special Tax A amount, determined in accordance with Section C., below, that may be levied on such Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means, for each Parcel in each Fiscal Year, the greatest Special Tax B (Contingent) amount, determined in accordance with Section C., below, that may be levied on such Parcel in such Fiscal Year. “Maximum Special Tax Rate (s)” means, for each Fiscal Year, the greatest Special Tax rate, determined in accordance with Section C., below, that may be levied on a Parcel in such Fiscal Year.
“Mixed Use Property” means all Parcels of Developed Property with more than one land use including residential, commercial, retail or other land uses. “Multifamily Residential Property” or “MFR” means all Parcels of Developed Property that consists of a building or buildings comprised of attached Residential Dwelling Units available for rental by the general public, not for sale to an end user, and under common management.
“Non-Residential Property” means all Parcels of Developed Property for which a Building Permit was issued, permitting the construction of one or more commercial, retail or other types of structure other than a residential structure. “Operating Reserves” means cash reserves to fund the Special Tax Requirement in the event of cash flow shortages or unexpected increases in operating, repair and maintenance costs (excluding capital improvements).
“Property Owner’s Association Property” means all Parcels that have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association (“POA”), including any master or sub-association, prior to April 1 preceding the Fiscal Year in which the Special Tax is being levied, within a Tax Zone. The Special Tax shall not be levied on Property Owner’s Association Property. If any Property Owner’s Association Property is converted to Taxable Property as the result of a sale of an Exempt Parcel to a private owner for residential or non-residential development, it shall become subject to the Special Tax in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D.
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5 “Proportionately” means for Parcels of Taxable Property that are (i) Developed Property, the ratio of the applied Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property; (ii) Approved Property, the ratio of the applied Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property; and (iii) Undeveloped Property, Public Property or Property Owner’s Association Property, the ratios of the applied Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Parcels of Undeveloped Property, Public Property and Property Owner’s Association Property.
“Public Property” means all Parcels which, as of April 1st preceding the Fiscal Year in which the Special Tax is being levied, are (i) used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State, the County, City or any other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement.
“Residential Dwelling Unit” or "RDU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued permitting the construction of one or more Residential Dwelling Units.
“Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2024-01 as set forth in the documents adopted by the City Council at the time the CFD was formed.
“Single Family Residential Property” or “SFR” means all Parcels of Residential Property, other than Accessory Dwelling Unit, Condominium Residential Property or Multifamily Residential Property.
“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Parcel of Taxable Property in accordance with Section D. “Special Tax A” means the special tax to be levied in each Fiscal Year on each Parcel of Taxable Property in accordance with Section D.1 to fund the Special Tax A Requirement.
“Special Tax Area A” means the parcels comprising Special Tax Area A as depicted and defined in the initial Boundary Map and as depicted and defined in the Boundary Map of each additional property annexed into CFD No. 2024-01. “Special Tax A Requirement” means for each Tax Zone for each Fiscal Year, the Special Tax A amount required to: (1) pay the estimated cost of Special Tax A Services including but not limited to (i) maintenance of landscaping and lighting of parks, parkways,
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6 streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) maintenance of streets and roadways, including but not limited to slurry seal, asphalt overlay, public street sweeping and similar roadway maintenance, for such Fiscal Year as determined by the City; (2) fund the Special Tax A Reserve Fund in an amount not to exceed 20% of the Special Tax A Reserve Fund Requirement; (3) pay Administrative Expenses; (4) pay for an actual or anticipated shortfall due to Special Tax A delinquencies in the current or prior Fiscal Year; and (5) provide a credit for funds that are available to reduce the annual Special Tax A levy, if any, as determined by the Administrator. The Special Tax A Authorized Services are defined in detail in Exhibit B of the Rate and Method of Apportionment.
“Special Tax A Reserve Fund” means a fund to be used for Capital Replacement and Operating Reserves related to the Special Tax A Services. “Special Tax A Reserve Fund Requirement” for each Zone equals 100% of the estimated cost of Special Tax A Services in the Base Year. The Special Tax A Reserve Fund Requirement shall be increased annually, commencing July 1, 2025, based on the Consumer Price Index Inflation Factor.
“Special Tax A Services” means those authorized services, permitted under the MelloRoos Community Facilities Act of 1982 as defined in Exhibit B of the Rate and Method of Apportionment, but limited to those services set forth in the documents adopted by the City Council at the time the CFD was formed as Special Tax A Services. “Special Tax B (Contingent)” or “Special Tax B” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property, in accordance with Section D.2, to fund the Special Tax B (Contingent) Requirement, if required.
Maintenance of the Special Tax B Improvements shall be the responsibility of the Property Owner’s Association as long as the Special Tax B Improvements are being maintained to a standard acceptable to the City. Special Tax B shall begin to be levied in the first year in which (i) the City determines that the Special Tax B Improvements have not been maintained to a standard acceptable to the City, (ii) the POA files for bankruptcy or (iii) the POA is dissolved. The City shall not levy Special Tax B without first giving notice to the Property Owner’s Association specifying the maintenance deficiency related to the Special Tax B Improvements and allowing a sufficient period, as determined by the City, for curing such deficiency.
“Special Tax Area B (Contingent)” means the parcels comprising Special Tax Area B as depicted and defined in the initial Boundary Map and as depicted and defined in the Boundary Map of each additional property annexed into CFD No. 2024-01. “Special Tax B (Contingent) Improvements” means the improvements that are maintained and operated as described in Special Tax B Services. “Special Tax B (Contingent) Requirement” means for each Tax Zone for each Fiscal Year, the Special Tax B amount required to: (1) pay the estimated cost of Special Tax B Services including but not limited to (i) maintenance of landscaping and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality
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7 improvements, (iii) maintenance of streets and roadways, including but not limited to slurry seal, asphalt overlay, public street sweeping and similar roadway maintenance, for such Fiscal Year as determined by the City; (2) fund the Special Tax B Reserve Fund in an amount not to exceed 20% of the Special Tax B Reserve Fund Requirement; (3) pay Administrative Expenses. The Special Tax B Authorized Services are defined in detail in Exhibit B of the Rate and Method of Apportionment.
“Special Tax B (Contingent) Reserve Fund” means a fund to be used for Capital Replacement and Operating Reserves related to the Special Tax B Services. “Special Tax B (Contingent) Reserve Fund Requirement” for each Tax Zone equals 100% of the estimated cost of Special Tax B (Contingent) Services in the Base Year. The Special Tax B Reserve Fund Requirement shall be increased annually, commencing July 1, 2025, based on the Consumer Price Index Inflation Factor. “Special Tax B (Contingent) Services” means those authorized services, permitted under the Mello-Roos Community Facilities Act of 1982 as defined in Exhibit B of the Rate and Method of Apportionment, but limited to those services, for each Tax Zone, as set forth in the documents adopted by the City Council at the time the CFD was formed as Special Tax B (Contingent) Services.
“State” means the State of California.
"Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Table 1, Table 2, Table 3 and Appendix A identify the initial Tax Zones created at formation of the CFD. Appendix A may be updated to include new Parcels or new Tax Zones added to the CFD as a result of future annexations. “Taxable Property” means all Parcels within the boundary of the CFD, inclusive of Special Tax Area A and Special Tax Area B (Contingent) pursuant to the Boundary Map that are not exempt from the Special Tax pursuant to Section F., below. “Taxable Unit” means either a RDU, BSF or an Acre, as shown in Table 1 or Table 2 of Section C.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owner’s Association Property.
B. ASSIGNMENT TO LAND USE CLASS
For each Fiscal Year, commencing Fiscal Year 2024-2025, all Parcels of Taxable Property shall be classified as either Developed Property, Approved Property, Undeveloped Property, Public Property, or Property Owner’s Association Property; and subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D.
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8 Parcels of Developed Property shall further be classified as Residential Property or NonResidential Property. Parcels of Residential Property shall further be classified as Single Family Residential Property, Condominium Residential Property or Multifamily Residential Property. The number of Residential Dwelling units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
For each Fiscal Year commencing Fiscal Year 2024-2025, Maximum Special Tax Rates shall be determined as described below:
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of RDUs constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multifamily building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of RDUs contained within the building or buildings, and the Special Tax A and or the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of RDUs by the Maximum Special Tax per RDU for the applicable Tax Zone shown in the Tables below or as included in Appendix A as each annexation occurs. For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the quantity of BSF or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual quantity of BSF or Acres for the Assessor’s Parcels, the Special Tax A and/or the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the quantity of BSF or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone shown in the Tables below or as included in Appendix A as each annexation occurs.
1. Developed Property
The Maximum Special Tax A and Maximum Special Tax B for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD.
When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A and Maximum Special Tax B for Developed Property for Fiscal Year 2024-25 within Tax Zone 1 and Tax Zone 2 are identified in Table 1 below and in Appendix A. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
17.F.
9 TABLE 1
Maximum Special Tax Rates for Developed Property
Fiscal Year 2024-2025
Tax Zone
Tract/Parcel
Map Land Use Class
Taxable
Unit
Maximum
Special Tax A
Per Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
1 PM 14318 Non-Residential Property Acre $2,493.00 $0.00 2 PM 36566 Non-Residential Property Acre $823.00 $0.00
Mixed Use Property
The Maximum Special Tax that may be levied on a Parcel of Mixed Use Property shall be the sum of the Maximum Special Tax for each of the Parcels land uses based on Table 1. The Maximum Special Tax Rate for Single Family Residential Property shall apply to any Residential Dwelling Units on the parcel. The Maximum Special Tax Rate for Acreage shall apply to the other land uses on the property, with Acreage for each land use determined by reference to the approved site plan for such Parcel. Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
2. Approved Property
The Maximum Special Tax A and Maximum Special Tax B for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A and/or Maximum Special Tax B, as applicable, for the Tax Zone annexed and included in Appendix A.
In determining the Maximum Special Tax A and Maximum Special Tax B for Approved Property for Fiscal Year 2024-25 within Tax Zone 1 and Tax Zone 2 for each Parcel of Approved Property, the Undeveloped Property Maximum Special Tax Rate from Section C.3 (Table 2) times the Acreage of such Parcel shall be applied; provided, however, that for a Parcel of Approved Property that is expected to become Single Family Residential Property, as reasonably determined by the Administrator based on the Final Map for such Parcel, the Maximum Special Tax for such Parcel of Approved Property shall be calculated utilizing Section C.1 (Table 1) as if such Parcel were already designated as Single Family Residential Property. Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
17.F.
10 3. Undeveloped Property
The Maximum Special Tax A and Maximum Special Tax B for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A and/or Maximum Special Tax B, as applicable, for the Tax Zone annexed and included in Appendix A.
The Maximum Special Tax A and Maximum Special Tax B for Undeveloped Property for Fiscal Year 2024-25 within Tax Zone 1 and Tax Zone 2 are identified in Table 2 below and in Appendix A. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
TABLE 2
Maximum Special Tax Rates for Undeveloped Property
Fiscal Year 2024-2025
Tax Zone
Tract/Parcel
Map Land Use Class
Taxable
Unit
Maximum
Special Tax A
Per Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
1 PM 14318 Non-Residential Property Acre $2,493.00 $0.00 2 PM 36566 Non-Residential Property Acre $823.00 $0.00
4. Taxable Public Property and Property Owner’s Association Property The Maximum Special Tax A and Maximum Special Tax B that may be levied for FY 2024-25 on each Parcel of Taxable Public Property or Taxable Property Owners Association Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax Rates for each Tax Zone shown in Appendix A multiplied by the Acreage of such Parcel. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
5. Increase in the Maximum Special Tax A and Maximum Special Tax B (Contingent)
On each July 1, commencing on July 1, 2025 the Maximum Special Tax A and Maximum Special Tax B for Developed Property, Approved Property, Undeveloped Property and Taxable Public Property and Property Owner’s Association Property shall increase by Consumer Price Index Inflation Factor.
17.F.
11 D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Administrator shall levy Special Tax A on all Taxable Property within Special Tax Area A up to the amount of the Special Tax A Requirement in accordance with the following steps:
First: The Special Tax A shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement; then Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement; then
Third: If additional moneys are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, Special Tax A shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, Special Tax A shall be levied Proportionately on each Parcel of Taxable Public Property and Property Owner’s Association Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement.
2. Special Tax B (Contingent)
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Administrator may levy Special Tax B on all Taxable Property within Special Tax Area B up to the amount of the Special Tax B Requirement in accordance with the following steps:
First: If levied, Special Tax B shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement; then Second: If additional moneys are needed to satisfy the Special Tax B Requirement after the first step has been completed, Special Tax B shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement; then
17.F.
12 Third: If additional moneys are needed to satisfy the Special Tax B Requirement after the first two steps have been completed, Special Tax B shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax B Requirement after the first three steps have been completed, Special Tax B shall be levied Proportionately on each Parcel of Taxable Public Property and Property Owner’s Association Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement.
Notwithstanding the above, under no circumstances will the Special Tax be levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2024-01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate existing Tax Zone or to a new Tax Zone with the appropriate Maximum Special Tax rates and will be included in an amended Appendix A.
F. EXEMPTIONS
The Special Tax shall not be levied on Public Property or Property Owner’s Association Property. If any Public Property or Property Owner’s Association Property is converted to Taxable Property as the result of a sale of an Exempt Parcel to a private owner for residential or non-residential development, it shall become subject to the Special Tax in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D.
G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax or may collect the Special Tax at a different time or in a different manner if necessary to meet the financial obligations of the CFD,
17.F.
13 and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.
H. APPEALS
Any taxpayer may file a written appeal of the Special Tax on their Parcel(s) with the Administrator, provided that the appellant is current in their payments of Special Taxes.
During pendency of an appeal, all Special Taxes must be paid on or before the payment due date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.
The Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.
I. PREPAYMENT
The Special Taxes may not be prepaid.
J. TERM OF THE SPECIAL TAX
Special Tax A shall be levied annually in perpetuity unless terminated earlier by the City.
Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-1
APPENDIX A
CITY OF HEMET
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
MAXIMUM TAX RATES
Maximum Special Tax Rates for Developed Property
Fiscal Year 2026-2027
Formation/
Annexation
No.
Tax Zone
Tract/Parcel
Map* Land Use Class
Taxable
Unit
Maximum
Special
Tax A Per
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
Formation 1 PM 14318 Non-Residential Property Acre $2,635.05 $0.00 Formation 2 PM 36566 Non-Residential Property Acre $869.89 $0.00 No. 1 3
SDR 23-002
(National
Tube Supply)
Non-Residential Property Acre $756.79 $0.00
No. 2 4
PM 37779
(Stetson
Corner)
Non-Residential Property Acre $5,754.20 $0.00
No. 3 5
SDR 21-002
(Eggleton
Trucking)
Non-Residential Property Acre $762.86 $0.00
No. 4 6
CUP 22-002
(Newland
Kirby
Warehouse)
Non-Residential Property Acre $697.91 $0.00
No. 5 7
SDR 22-013
(Quick Quack
Car Wash)
Non-Residential Property Acre $6,844.14 $0.00
No.6 8
SDR 20-014
(Go Car Wash) Non-Residential Property Acre $2,112.31 $0.00 No.7 9
CUP 16-002
(All For Show) Non-Residential Property Acre $18,912.00 $0.00
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-2
Formation/
Annexation
No.
Tax Zone
Tract/Parcel
Map* Land Use Class
Taxable
Unit
Maximum
Special
Tax A Per
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
Future
Annexation
Area Tract/PM
Single Family Residential
Property RDU $ per RDU
$ per
RDU
Multifamily Residential
Property RDU $ per RDU
$ per
RDU
Non-Residential Property Acre $ per
Acre
$ per
Acre
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-3
Maximum Special Tax Rates for Approved Property
Fiscal Year 2026-2027
Formation/
Annexation No.
Tax Zone Tract/Parcel
Map* Land Use Class
Taxable
Unit
Maximum
Special
Tax A Per
Taxable
Unit
Maximum
Special
Tax B Per
Taxable
Unit
Formation 1 PM 14318 Non-Residential Property Acre $2,635.05 $0.00 Formation 2 PM 36566 Non-Residential Property Acre $869.89 $0.00 No. 1 3
SDR 23-002
(National
Tube Supply)
Non-Residential Property Acre $756.79 $0.00
No. 2 4
PM 37779
(Stetson
Corner)
Non-Residential Property Acre $5,754.20 $0.00
No. 3 5
SDR 21-002
(Eggleton
Trucking)
Non-Residential Property Acre $762.86 $0.00
No. 4 6
CUP 22-002
(Newland
Kirby
Warehouse)
Non-Residential Property Acre $697.91 $0.00
No. 5 7
SDR 22-013
(Quick Quack
Car Wash)
Non-Residential Property Acre $6,844.14 $0.00
No.6 8
SDR 20-014
(Go Car
Wash)
Non-Residential Property Acre $2,112.31 $0.00
No.7 9
CUP 16-002
(All For Show) Non-Residential Property Acre $18,912.00 $0.00 Future
Annexation
Area Tract/PM
Single Family Residential
Property RDU $ per RDU
$ per
RDU
Multifamily Residential
Property RDU $ per RDU
$ per
RDU
Non-Residential Property Acre $ per
Acre
per
Acre
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-4
Maximum Special Tax Rates for Undeveloped Property
Fiscal Year 2026-2027
Formation/
Annexation
No. Tax Zone
Tract/Parcel
Map* Taxable Unit
Maximum
Special Tax
A Per
Taxable Unit
Maximum
Special Tax
B Per
Taxable Unit
Formation 1 PM 14318 Acre $2,635.05 $0.00
Formation 2 PM 36566 Acre $869.89 $0.00
No. 1 3
SDR 23-002
(National Tube
Supply)
Acre $756.79 $0.00
No. 2 4
PM 37779
(Stetson Corner) Acre
$5,754.20
$0.00
No. 3 5
SDR 21-002
(Eggleton
Trucking)
Acre $762.86 $0.00
No. 4 6
CUP 22-002
(Newland Kirby
Warehouse)
Acre $697.91 $0.00
No. 5 7
SDR 22-013
(Quick Quack
Car Wash)
Acre $6,844.14 $0.00
No. 6 8
SDR 20-014
(Go Car Wash) Acre $2,112.31 $0.00
No.7 9
CUP 16-002
(All For Show) Acre $18,912.00 $0.00
Future
Annexation
Area
Tract/PM
RDU $ per
RDU
$ per
RDU
RDU $ per
RDU
$ per
RDU
Acre $ per
Acre
$ per
Acre
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-5
Maximum Special Tax Rates for Taxable Public Property
and Property Owner’s Association Property
Fiscal Year 2026-2027
The Maximum Special Tax A and Maximum Special Tax B that may be levied for FY 2026-27 on each Parcel of Taxable Public Property or Taxable Property Owners Association Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax Rates for each Tax Zone shown in Appendix A multiplied by the Acreage of such Parcel. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-6
Increase in the Maximum Special Tax A and Special Tax B (Contingent) On each July 1, commencing on July 1, 2027 the Maximum Special Tax A and Maximum Special Tax B for Developed Property, Approved Property, Undeveloped Property and Taxable Public Property and Property Owner’s Association Property for each Tax Zone shall increase by Consumer Price Index Inflation Factor. * The property identified above shall remain part of the identified Tax Zone regardless of changes in the configuration of the parcels in future Fiscal Years. As APNs change, the City may update Appendix A to reflect the most current APNs and Tax Zones consistent with the Taxable Property categories set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2024-01.
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment B-1
APPENDIX B
CITY OF HEMET
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2024-01 (Public Facilities Maintenance) (“CFD 2024-01”), as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing facilities (may include reserves for replacement) in public street right-of-way, public lighting, public landscaping, public open spaces and other similar areas officially dedicated for public use. These services include the following:
a) Maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance of streets and roadways including slurry seal, asphalt overlay and other similar maintenance; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and b) Maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, fossil fuel filters, infiltration basins, flood control channels and similar facilities.
Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements and flood control channel improvements; and c) Public street sweeping, on the segments of the arterials within the boundaries of CFD 2024-01; as well as local roads within residential subdivisions located within CFD 2024- 01; and any portions adjacent to the properties within CFD 2024-01; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services may be financed by proceeds of the special tax of CFD 2024-01 only to the extent that they are in addition to those provided in the territory of CFD 2024-01 before CFD 2024- 01 was created or those provided in the territory annexed to CFD 2024-01 before the territory was annexed, as applicable.
17.F.
17.F.
PROPOSED BOUNDARY OF ANNEXATION NO. 7
CITY OF HEMET
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
ZONE 9
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
E Devonshire Ave
N 443-201-026
No Scale
2375 Northside Drive Suite 125, San Diego, CA 92108 p: 619.481.5011 www.WeAreHarris.com
CLERK'S MAP STATEMENT
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF HEMET THIS DAY OF , 2026. CITY CLERK OF THE CITY OF HEMET CLERK'S MAP STATEMENT I HEREBY CERTIFY THAT THE AREA SHOWN ON THIS MAP OF THE PROPOSED BOUNDARY OF ANNEXATION NO. 7 TO COMMUNITY FACILITIES DISTRICT NO. 2024-01 (PUBLIC FACIITIES MAINTENANCE) ZONE 9, CITY OF HEMET,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF HEMET AT A REGULARLY SCHEDULED MEETING THEREOF, HELD ON THE DAY OF , 2026 BY ITS RESOLUTION NO. . CITY CLERK OF THE CITY OF HEMET COUNTY RECORDER'S FILING STATEMENT FILED THIS DAY OF , 2026 AT THE HOUR OF O'CLOCK .M. IN BOOK OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS PAGE NO. IN THE OFFICE OF THE COUNTY RECORDER IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. PETER ALDANA COUNTY RECORDER OF THE COUNTY OF RIVERSIDE BY: DEPUTY FILE: THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL SHOWN ON THIS MAP SHALL BE THOSE LINES AND DIMENSIONS AS SHOWN ON THE RIVERSIDE COUNTY ASSESSOR’S MAPS.
Special Tax Boundary
Parcel Boundary
Legend
ASSESSOR PARCEL NUMBER LOCATED
WITHIN PROPOSED BOUNDARIES OF
ANNEXATION NO. 7 TO CFD 2024-01
(PUBLIC FACILITIES MAINTENANCE)
ZONE 9 AS OF FISCAL YEAR 2026-27
443-201-026
VICINITY MAP
NOT TO SCALE N Harvard St
DEVONSHIRE AVE N HARVARD ST
MEIRER ST N STATE ST
E LATHAM AVE N BUENA VISTA ST
Site Page 36 of 84
1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
OF THE CITY OF HEMET, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA A Special Tax (all capitalized terms are defined in Section A., “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2024-01 (Public Facilities Maintenance) (the CFD). The amount of Special Tax to be levied on a Parcel in each Fiscal Year, commencing in Fiscal Year 2024-2025, shall be determined by the City Council of the City of Hemet, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax as set forth in Sections B, C and D, below. All of the real property within the CFD, unless exempted by law or by the provisions of Section F. below, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit(s)” means a secondary attached or detached dwelling unit with complete independent living facilities for one or more persons. “Acre or Acreage” means the land area of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, condominium plan, other recorded County map, or the land area calculated to the reasonable satisfaction of the Administrator using the boundaries set forth on such map or plan. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (Sections 53311 - 53368).
“Administrative Expenses” means all actual or reasonably estimated costs and expenses of the CFD that are chargeable or allocable to carry out duties of the CFD as allowed by the Act. This may include, without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax (whether by the City, the Administrator or both), any litigation or appeal involving the CFD, and other administrative expenses of the City or Administrator directly related to the CFD.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD for attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure as a result of delinquent Special Taxes. “Administrator” means a person or firm designated by the CFD to administer the Special Tax.
“Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the
17.F.
2 Special Tax is being levied; and (ii) that have not been issued a Building Permit prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Assessor” means the Assessor of the County.
“Assessor’s Parcel(s)” or “Parcel(s)” means a lot or parcel within the CFD shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number valid as of July 1 st for the Fiscal Year for which the Special Tax is being levied. “Assessor’s Parcel Map” means an official map of the County Assessor of the County designating Parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means the number assigned to a lot or Parcel for purposes of identification as determined from an Assessor Parcel Map or the applicable assessment roll.
“Base Year” means the Fiscal Year ending June 30, 2024. Rates in this Rate and Method of Apportionment for the initial formation are based on FY 2024-25 costs which will be escalated beginning in FY 2025-26. Base Year for future annexations shall be the fiscal year the annexation was approved by the City Council of the City of Hemet. “Boundary Map” means a recorded map of the CFD that indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes, as may be amended due to future annexations of territory to the CFD. "Building Square Footage" or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of NonResidential Property and any Building Square Footage subsequently added to a building of such Non-Residential Property after issuance of a building permit for expansion or renovation of such building.
"Building Permit" means the first legal document issued by a local agency giving official permission for new construction.
“Capital Replacement” means to repair or replace improvements being maintained by the CFD.
“CFD” or “CFD 2024-01” means Community Facilities District No. 2024-01 (Public Facilities Maintenance) of the City of Hemet.
“City” means the City of Hemet, California
“Condominium Residential Property” means a Developed Parcel with an approved land use for residential condominiums (two or more attached units which can each be owned individually). Parcels that are open space, recreation, clubhouse, etc., owned by a condominium association, homeowner’s association or property owner’s association, are Exempt Property.
17.F.
3 “Consumer Price Index” or “CPI” means the Consumer Price Index published by the U.S. Bureau of Labor Statistic for “All Urban Consumers” in the Riverside-San Bernardino-Ontario area.
“Consumer Price Index Inflation Factor” means, for any Fiscal Year, the annual change in the Consumer Price Index which shall be measured from the month of March in the Calendar Year that ends in the previous Fiscal Year to the month of March preceding the Fiscal Year. The Maximum Special Tax Rates in Table 1 and Table 2 shall be increased by the amount of the Consumer Price Index Inflation Factor, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) of the Maximum Special Tax Rates in effect for the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario Area.
“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2024-01 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to the definition of Special Tax B (Contingent) that a POA fails to adequately provide such services.
“Council” means the City Council of the City acting as the legislative body of the CFD. “County” means the County of Riverside, California.
“Developed Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit for new construction has been issued prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means any Parcel that is exempt from Special Taxes pursuant to Section F., below.
“Final Map” means a subdivision of property by recordation of a map or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision.
“Fiscal Year” means the 12-month period starting on July 1 of any calendar year and ending the following June 30.
“Future Annexation Area” means the geographic area that, at the time of CFD formation, was considered potential annexation area for the CFD and which was, therefore, identified as “future annexation area” on the recorded Boundary Map. Such designation does not mean that any or all of the Future Annexation Area will annex into
17.F.
4 the CFD, but should property designated as Future Annexation Area choose to annex, the annexation may be processed pursuant to the annexation procedures in the Act for territory included in the Future Annexation Area, as well as the procedures established by the City.
“Land Use Class” or “LUC” means any of the classes listed in Table 1 or Table 2 of Section C. or Appendix A, below.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means, for each Parcel in each Fiscal Year, the greatest Special Tax A amount, determined in accordance with Section C., below, that may be levied on such Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means, for each Parcel in each Fiscal Year, the greatest Special Tax B (Contingent) amount, determined in accordance with Section C., below, that may be levied on such Parcel in such Fiscal Year. “Maximum Special Tax Rate (s)” means, for each Fiscal Year, the greatest Special Tax rate, determined in accordance with Section C., below, that may be levied on a Parcel in such Fiscal Year.
“Mixed Use Property” means all Parcels of Developed Property with more than one land use including residential, commercial, retail or other land uses. “Multifamily Residential Property” or “MFR” means all Parcels of Developed Property that consists of a building or buildings comprised of attached Residential Dwelling Units available for rental by the general public, not for sale to an end user, and under common management.
“Non-Residential Property” means all Parcels of Developed Property for which a Building Permit was issued, permitting the construction of one or more commercial, retail or other types of structure other than a residential structure. “Operating Reserves” means cash reserves to fund the Special Tax Requirement in the event of cash flow shortages or unexpected increases in operating, repair and maintenance costs (excluding capital improvements).
“Property Owner’s Association Property” means all Parcels that have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association (“POA”), including any master or sub-association, prior to April 1 preceding the Fiscal Year in which the Special Tax is being levied, within a Tax Zone. The Special Tax shall not be levied on Property Owner’s Association Property. If any Property Owner’s Association Property is converted to Taxable Property as the result of a sale of an Exempt Parcel to a private owner for residential or non-residential development, it shall become subject to the Special Tax in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D.
17.F.
5 “Proportionately” means for Parcels of Taxable Property that are (i) Developed Property, the ratio of the applied Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property; (ii) Approved Property, the ratio of the applied Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property; and (iii) Undeveloped Property, Public Property or Property Owner’s Association Property, the ratios of the applied Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Parcels of Undeveloped Property, Public Property and Property Owner’s Association Property.
“Public Property” means all Parcels which, as of April 1st preceding the Fiscal Year in which the Special Tax is being levied, are (i) used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State, the County, City or any other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement.
“Residential Dwelling Unit” or "RDU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued permitting the construction of one or more Residential Dwelling Units.
“Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2024-01 as set forth in the documents adopted by the City Council at the time the CFD was formed.
“Single Family Residential Property” or “SFR” means all Parcels of Residential Property, other than Accessory Dwelling Unit, Condominium Residential Property or Multifamily Residential Property.
“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Parcel of Taxable Property in accordance with Section D. “Special Tax A” means the special tax to be levied in each Fiscal Year on each Parcel of Taxable Property in accordance with Section D.1 to fund the Special Tax A Requirement.
“Special Tax Area A” means the parcels comprising Special Tax Area A as depicted and defined in the initial Boundary Map and as depicted and defined in the Boundary Map of each additional property annexed into CFD No. 2024-01. “Special Tax A Requirement” means for each Tax Zone for each Fiscal Year, the Special Tax A amount required to: (1) pay the estimated cost of Special Tax A Services including but not limited to (i) maintenance of landscaping and lighting of parks, parkways,
17.F.
6 streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) maintenance of streets and roadways, including but not limited to slurry seal, asphalt overlay, public street sweeping and similar roadway maintenance, for such Fiscal Year as determined by the City; (2) fund the Special Tax A Reserve Fund in an amount not to exceed 20% of the Special Tax A Reserve Fund Requirement; (3) pay Administrative Expenses; (4) pay for an actual or anticipated shortfall due to Special Tax A delinquencies in the current or prior Fiscal Year; and (5) provide a credit for funds that are available to reduce the annual Special Tax A levy, if any, as determined by the Administrator. The Special Tax A Authorized Services are defined in detail in Exhibit B of the Rate and Method of Apportionment.
“Special Tax A Reserve Fund” means a fund to be used for Capital Replacement and Operating Reserves related to the Special Tax A Services. “Special Tax A Reserve Fund Requirement” for each Zone equals 100% of the estimated cost of Special Tax A Services in the Base Year. The Special Tax A Reserve Fund Requirement shall be increased annually, commencing July 1, 2025, based on the Consumer Price Index Inflation Factor.
“Special Tax A Services” means those authorized services, permitted under the MelloRoos Community Facilities Act of 1982 as defined in Exhibit B of the Rate and Method of Apportionment, but limited to those services set forth in the documents adopted by the City Council at the time the CFD was formed as Special Tax A Services. “Special Tax B (Contingent)” or “Special Tax B” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property, in accordance with Section D.2, to fund the Special Tax B (Contingent) Requirement, if required.
Maintenance of the Special Tax B Improvements shall be the responsibility of the Property Owner’s Association as long as the Special Tax B Improvements are being maintained to a standard acceptable to the City. Special Tax B shall begin to be levied in the first year in which (i) the City determines that the Special Tax B Improvements have not been maintained to a standard acceptable to the City, (ii) the POA files for bankruptcy or (iii) the POA is dissolved. The City shall not levy Special Tax B without first giving notice to the Property Owner’s Association specifying the maintenance deficiency related to the Special Tax B Improvements and allowing a sufficient period, as determined by the City, for curing such deficiency.
“Special Tax Area B (Contingent)” means the parcels comprising Special Tax Area B as depicted and defined in the initial Boundary Map and as depicted and defined in the Boundary Map of each additional property annexed into CFD No. 2024-01. “Special Tax B (Contingent) Improvements” means the improvements that are maintained and operated as described in Special Tax B Services. “Special Tax B (Contingent) Requirement” means for each Tax Zone for each Fiscal Year, the Special Tax B amount required to: (1) pay the estimated cost of Special Tax B Services including but not limited to (i) maintenance of landscaping and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality
17.F.
7 improvements, (iii) maintenance of streets and roadways, including but not limited to slurry seal, asphalt overlay, public street sweeping and similar roadway maintenance, for such Fiscal Year as determined by the City; (2) fund the Special Tax B Reserve Fund in an amount not to exceed 20% of the Special Tax B Reserve Fund Requirement; (3) pay Administrative Expenses. The Special Tax B Authorized Services are defined in detail in Exhibit B of the Rate and Method of Apportionment.
“Special Tax B (Contingent) Reserve Fund” means a fund to be used for Capital Replacement and Operating Reserves related to the Special Tax B Services. “Special Tax B (Contingent) Reserve Fund Requirement” for each Tax Zone equals 100% of the estimated cost of Special Tax B (Contingent) Services in the Base Year. The Special Tax B Reserve Fund Requirement shall be increased annually, commencing July 1, 2025, based on the Consumer Price Index Inflation Factor. “Special Tax B (Contingent) Services” means those authorized services, permitted under the Mello-Roos Community Facilities Act of 1982 as defined in Exhibit B of the Rate and Method of Apportionment, but limited to those services, for each Tax Zone, as set forth in the documents adopted by the City Council at the time the CFD was formed as Special Tax B (Contingent) Services.
“State” means the State of California.
"Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Table 1, Table 2, Table 3 and Appendix A identify the initial Tax Zones created at formation of the CFD. Appendix A may be updated to include new Parcels or new Tax Zones added to the CFD as a result of future annexations. “Taxable Property” means all Parcels within the boundary of the CFD, inclusive of Special Tax Area A and Special Tax Area B (Contingent) pursuant to the Boundary Map that are not exempt from the Special Tax pursuant to Section F., below. “Taxable Unit” means either a RDU, BSF or an Acre, as shown in Table 1 or Table 2 of Section C.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owner’s Association Property.
B. ASSIGNMENT TO LAND USE CLASS
For each Fiscal Year, commencing Fiscal Year 2024-2025, all Parcels of Taxable Property shall be classified as either Developed Property, Approved Property, Undeveloped Property, Public Property, or Property Owner’s Association Property; and subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D.
17.F.
8 Parcels of Developed Property shall further be classified as Residential Property or NonResidential Property. Parcels of Residential Property shall further be classified as Single Family Residential Property, Condominium Residential Property or Multifamily Residential Property. The number of Residential Dwelling units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
For each Fiscal Year commencing Fiscal Year 2024-2025, Maximum Special Tax Rates shall be determined as described below:
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of RDUs constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multifamily building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of RDUs contained within the building or buildings, and the Special Tax A and or the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of RDUs by the Maximum Special Tax per RDU for the applicable Tax Zone shown in the Tables below or as included in Appendix A as each annexation occurs. For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the quantity of BSF or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual quantity of BSF or Acres for the Assessor’s Parcels, the Special Tax A and/or the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the quantity of BSF or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone shown in the Tables below or as included in Appendix A as each annexation occurs.
1. Developed Property
The Maximum Special Tax A and Maximum Special Tax B for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD.
When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A and Maximum Special Tax B for Developed Property for Fiscal Year 2024-25 within Tax Zone 1 and Tax Zone 2 are identified in Table 1 below and in Appendix A. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
17.F.
9 TABLE 1
Maximum Special Tax Rates for Developed Property
Fiscal Year 2024-2025
Tax Zone
Tract/Parcel
Map Land Use Class
Taxable
Unit
Maximum
Special Tax A
Per Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
1 PM 14318 Non-Residential Property Acre $2,493.00 $0.00 2 PM 36566 Non-Residential Property Acre $823.00 $0.00
Mixed Use Property
The Maximum Special Tax that may be levied on a Parcel of Mixed Use Property shall be the sum of the Maximum Special Tax for each of the Parcels land uses based on Table 1. The Maximum Special Tax Rate for Single Family Residential Property shall apply to any Residential Dwelling Units on the parcel. The Maximum Special Tax Rate for Acreage shall apply to the other land uses on the property, with Acreage for each land use determined by reference to the approved site plan for such Parcel. Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
2. Approved Property
The Maximum Special Tax A and Maximum Special Tax B for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A and/or Maximum Special Tax B, as applicable, for the Tax Zone annexed and included in Appendix A.
In determining the Maximum Special Tax A and Maximum Special Tax B for Approved Property for Fiscal Year 2024-25 within Tax Zone 1 and Tax Zone 2 for each Parcel of Approved Property, the Undeveloped Property Maximum Special Tax Rate from Section C.3 (Table 2) times the Acreage of such Parcel shall be applied; provided, however, that for a Parcel of Approved Property that is expected to become Single Family Residential Property, as reasonably determined by the Administrator based on the Final Map for such Parcel, the Maximum Special Tax for such Parcel of Approved Property shall be calculated utilizing Section C.1 (Table 1) as if such Parcel were already designated as Single Family Residential Property. Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
17.F.
10 3. Undeveloped Property
The Maximum Special Tax A and Maximum Special Tax B for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A and/or Maximum Special Tax B, as applicable, for the Tax Zone annexed and included in Appendix A.
The Maximum Special Tax A and Maximum Special Tax B for Undeveloped Property for Fiscal Year 2024-25 within Tax Zone 1 and Tax Zone 2 are identified in Table 2 below and in Appendix A. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
TABLE 2
Maximum Special Tax Rates for Undeveloped Property
Fiscal Year 2024-2025
Tax Zone
Tract/Parcel
Map Land Use Class
Taxable
Unit
Maximum
Special Tax A
Per Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
1 PM 14318 Non-Residential Property Acre $2,493.00 $0.00 2 PM 36566 Non-Residential Property Acre $823.00 $0.00
4. Taxable Public Property and Property Owner’s Association Property The Maximum Special Tax A and Maximum Special Tax B that may be levied for FY 2024-25 on each Parcel of Taxable Public Property or Taxable Property Owners Association Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax Rates for each Tax Zone shown in Appendix A multiplied by the Acreage of such Parcel. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
5. Increase in the Maximum Special Tax A and Maximum Special Tax B (Contingent)
On each July 1, commencing on July 1, 2025 the Maximum Special Tax A and Maximum Special Tax B for Developed Property, Approved Property, Undeveloped Property and Taxable Public Property and Property Owner’s Association Property shall increase by Consumer Price Index Inflation Factor.
17.F.
11 D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Administrator shall levy Special Tax A on all Taxable Property within Special Tax Area A up to the amount of the Special Tax A Requirement in accordance with the following steps:
First: The Special Tax A shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement; then Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement; then
Third: If additional moneys are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, Special Tax A shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, Special Tax A shall be levied Proportionately on each Parcel of Taxable Public Property and Property Owner’s Association Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement.
2. Special Tax B (Contingent)
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Administrator may levy Special Tax B on all Taxable Property within Special Tax Area B up to the amount of the Special Tax B Requirement in accordance with the following steps:
First: If levied, Special Tax B shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement; then Second: If additional moneys are needed to satisfy the Special Tax B Requirement after the first step has been completed, Special Tax B shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement; then
17.F.
12 Third: If additional moneys are needed to satisfy the Special Tax B Requirement after the first two steps have been completed, Special Tax B shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax B Requirement after the first three steps have been completed, Special Tax B shall be levied Proportionately on each Parcel of Taxable Public Property and Property Owner’s Association Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement.
Notwithstanding the above, under no circumstances will the Special Tax be levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2024-01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate existing Tax Zone or to a new Tax Zone with the appropriate Maximum Special Tax rates and will be included in an amended Appendix A.
F. EXEMPTIONS
The Special Tax shall not be levied on Public Property or Property Owner’s Association Property. If any Public Property or Property Owner’s Association Property is converted to Taxable Property as the result of a sale of an Exempt Parcel to a private owner for residential or non-residential development, it shall become subject to the Special Tax in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D.
G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax or may collect the Special Tax at a different time or in a different manner if necessary to meet the financial obligations of the CFD,
17.F.
13 and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.
H. APPEALS
Any taxpayer may file a written appeal of the Special Tax on their Parcel(s) with the Administrator, provided that the appellant is current in their payments of Special Taxes.
During pendency of an appeal, all Special Taxes must be paid on or before the payment due date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.
The Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.
I. PREPAYMENT
The Special Taxes may not be prepaid.
J. TERM OF THE SPECIAL TAX
Special Tax A shall be levied annually in perpetuity unless terminated earlier by the City.
Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-1
APPENDIX A
CITY OF HEMET
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
MAXIMUM TAX RATES
Maximum Special Tax Rates for Developed Property
Fiscal Year 2026-2027
Formation/
Annexation
No.
Tax Zone
Tract/Parcel
Map* Land Use Class
Taxable
Unit
Maximum
Special
Tax A Per
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
Formation 1 PM 14318 Non-Residential Property Acre $2,635.05 $0.00 Formation 2 PM 36566 Non-Residential Property Acre $869.89 $0.00 No. 1 3
SDR 23-002
(National
Tube Supply)
Non-Residential Property Acre $756.79 $0.00
No. 2 4
PM 37779
(Stetson
Corner)
Non-Residential Property Acre $5,754.20 $0.00
No. 3 5
SDR 21-002
(Eggleton
Trucking)
Non-Residential Property Acre $762.86 $0.00
No. 4 6
CUP 22-002
(Newland
Kirby
Warehouse)
Non-Residential Property Acre $697.91 $0.00
No. 5 7
SDR 22-013
(Quick Quack
Car Wash)
Non-Residential Property Acre $6,844.14 $0.00
No.6 8
SDR 20-014
(Go Car Wash) Non-Residential Property Acre $2,112.31 $0.00 No.7 9
CUP 16-002
(All For Show) Non-Residential Property Acre $18,912.00 $0.00
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-2
Formation/
Annexation
No.
Tax Zone
Tract/Parcel
Map* Land Use Class
Taxable
Unit
Maximum
Special
Tax A Per
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
Future
Annexation
Area Tract/PM
Single Family Residential
Property RDU $ per RDU
$ per
RDU
Multifamily Residential
Property RDU $ per RDU
$ per
RDU
Non-Residential Property Acre $ per
Acre
$ per
Acre
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-3
Maximum Special Tax Rates for Approved Property
Fiscal Year 2026-2027
Formation/
Annexation No.
Tax Zone Tract/Parcel
Map* Land Use Class
Taxable
Unit
Maximum
Special
Tax A Per
Taxable
Unit
Maximum
Special
Tax B Per
Taxable
Unit
Formation 1 PM 14318 Non-Residential Property Acre $2,635.05 $0.00 Formation 2 PM 36566 Non-Residential Property Acre $869.89 $0.00 No. 1 3
SDR 23-002
(National
Tube Supply)
Non-Residential Property Acre $756.79 $0.00
No. 2 4
PM 37779
(Stetson
Corner)
Non-Residential Property Acre $5,754.20 $0.00
No. 3 5
SDR 21-002
(Eggleton
Trucking)
Non-Residential Property Acre $762.86 $0.00
No. 4 6
CUP 22-002
(Newland
Kirby
Warehouse)
Non-Residential Property Acre $697.91 $0.00
No. 5 7
SDR 22-013
(Quick Quack
Car Wash)
Non-Residential Property Acre $6,844.14 $0.00
No.6 8
SDR 20-014
(Go Car
Wash)
Non-Residential Property Acre $2,112.31 $0.00
No.7 9
CUP 16-002
(All For Show) Non-Residential Property Acre $18,912.00 $0.00 Future
Annexation
Area Tract/PM
Single Family Residential
Property RDU $ per RDU
$ per
RDU
Multifamily Residential
Property RDU $ per RDU
$ per
RDU
Non-Residential Property Acre $ per
Acre
per
Acre
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-4
Maximum Special Tax Rates for Undeveloped Property
Fiscal Year 2026-2027
Formation/
Annexation
No. Tax Zone
Tract/Parcel
Map* Taxable Unit
Maximum
Special Tax
A Per
Taxable Unit
Maximum
Special Tax
B Per
Taxable Unit
Formation 1 PM 14318 Acre $2,635.05 $0.00
Formation 2 PM 36566 Acre $869.89 $0.00
No. 1 3
SDR 23-002
(National Tube
Supply)
Acre $756.79 $0.00
No. 2 4
PM 37779
(Stetson Corner) Acre
$5,754.20
$0.00
No. 3 5
SDR 21-002
(Eggleton
Trucking)
Acre $762.86 $0.00
No. 4 6
CUP 22-002
(Newland Kirby
Warehouse)
Acre $697.91 $0.00
No. 5 7
SDR 22-013
(Quick Quack
Car Wash)
Acre $6,844.14 $0.00
No. 6 8
SDR 20-014
(Go Car Wash) Acre $2,112.31 $0.00
No.7 9
CUP 16-002
(All For Show) Acre $18,912.00 $0.00
Future
Annexation
Area
Tract/PM
RDU $ per
RDU
$ per
RDU
RDU $ per
RDU
$ per
RDU
Acre $ per
Acre
$ per
Acre
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-5
Maximum Special Tax Rates for Taxable Public Property
and Property Owner’s Association Property
Fiscal Year 2026-2027
The Maximum Special Tax A and Maximum Special Tax B that may be levied for FY 2026-27 on each Parcel of Taxable Public Property or Taxable Property Owners Association Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax Rates for each Tax Zone shown in Appendix A multiplied by the Acreage of such Parcel. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-6
Increase in the Maximum Special Tax A and Special Tax B (Contingent) On each July 1, commencing on July 1, 2027 the Maximum Special Tax A and Maximum Special Tax B for Developed Property, Approved Property, Undeveloped Property and Taxable Public Property and Property Owner’s Association Property for each Tax Zone shall increase by Consumer Price Index Inflation Factor. * The property identified above shall remain part of the identified Tax Zone regardless of changes in the configuration of the parcels in future Fiscal Years. As APNs change, the City may update Appendix A to reflect the most current APNs and Tax Zones consistent with the Taxable Property categories set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2024-01.
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment B-1
APPENDIX B
CITY OF HEMET
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2024-01 (Public Facilities Maintenance) (“CFD 2024-01”), as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing facilities (may include reserves for replacement) in public street right-of-way, public lighting, public landscaping, public open spaces and other similar areas officially dedicated for public use. These services include the following:
a) Maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance of streets and roadways including slurry seal, asphalt overlay and other similar maintenance; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and b) Maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, fossil fuel filters, infiltration basins, flood control channels and similar facilities.
Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements and flood control channel improvements; and c) Public street sweeping, on the segments of the arterials within the boundaries of CFD 2024-01; as well as local roads within residential subdivisions located within CFD 2024- 01; and any portions adjacent to the properties within CFD 2024-01; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services may be financed by proceeds of the special tax of CFD 2024-01 only to the extent that they are in addition to those provided in the territory of CFD 2024-01 before CFD 2024- 01 was created or those provided in the territory annexed to CFD 2024-01 before the territory was annexed, as applicable.
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17.F.
1 RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
CITY OF HEMET
445 E. Florida Ave.
Hemet, CA 92543
Attention: City Clerk
SEVENTH AMENDED NOTICE OF SPECIAL TAX LIEN
CITY OF HEMET COMMUNITY FACILITIES DISTRICT NO. 2024-01 (PUBLIC FACILITIES MAINTENANCE)
Pursuant to the requirements of Section 3114.5 of the California Streets and Highways Code and the Mello-Roos Community Facilities Act of 1982 (California Government Code section 53311 et seq.), as amended, (the “Act”) specifically Section 53328.3 of the Act, the undersigned City Clerk of the City of Hemet, County of Riverside, State of California, hereby gives notice (the “Notice”) of the foregoing and that a lien to secure payment of a special tax is hereby imposed by the City Council of the City of Hemet, County of Riverside, State of California. The special tax secured by this lien is authorized to be levied for the purpose of providing the services, including incidental expenses, described in Exhibit “A” attached hereto and incorporated by this reference herein.
The special tax is authorized to be levied within the area of Annexation No. 7 (Zone 9) Boundary Map (“Annexed Area”) of the City of Hemet Community Facilities District No. 2024- 01 (Public Facilities Maintenance) (the “District”), which has now been officially annexed to the District and the lien of special tax is a continuing lien which shall secure each annual levy of the special tax and which shall continue in force and effect until the special tax ceases to be levied and a notice of cessation of special tax is recorded in accordance with the Section 53330.5 of the Act.
The rate, method of apportionment, and manner of collection of the authorized special tax is as set forth in the rate and method of apportionment of the special tax (the “Rate and Method”) attached hereto as Exhibit “B” and by this reference incorporated herein. The Rate and Method does not provide for prepayment of the special tax obligation.
Notice is further given that upon the recording of this Notice in the office of the County Recorder of the County of Riverside, the obligation to pay the special tax levy shall become a lien upon all nonexempt real property within the District, including the area of all current and prior annexations, in accordance with Section 3115.5 of the California Streets and Highways Code.
The names of the owners and the assessor’s parcel numbers of the real property included within the Annexed Area are as set forth in Exhibit “C” attached hereto and by this reference made a part hereof.
This Seventh Amended Notice of Special Tax Lien amends the Sixth Amended Notice of Special Tax Lien with respect to the District recorded on May 21, 2026, as Document No. 2026- 0155888, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of
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2 Annexation No. 6 (Zone 8) of the District.
The original Notice of Special Tax Lien with respect to the District was recorded on November 12, 2024, as Document No. 2024-0344328, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers of the original boundaries of the District.
The First Amended Notice of Special Tax Lien with respect to the District was recorded on July 3, 2025, as Document No. 2025-0205481, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 1 (Zone 3) of the District.
The Second Amended Notice of Special Tax Lien with respect to the District was recorded on July 10, 2025, as Document No. 2025-0211669, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 2 (Zone 4) of the District.
The Third Amended Notice of Special Tax Lien with respect to the District was recorded on August 21, 2025, as Document No. 2025-0258339, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 3 (Zone 5) of the District.
The Fourth Amended Notice of Special Tax Lien with respect to the District was recorded on January 22, 2026, as Document No. 2026-0021229, in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 4 (Zone 6) of the District.
The Fifth Amended Notice of Special Tax Lien with respect to the District was recorded on January 22, 2026, as Document No. 2026-0021256 in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 5 (Zone 7) of the District.
The Sixth Amended Notice of Special Tax Lien with respect to the District was recorded on May 21, 2026, as Document No. 2026-155888 in the office of the County Clerk & Recorder of the County of Riverside, California, which contains a list of the then existing owners and assessor parcel numbers within the boundaries of Annexation No. 6 (Zone 8) of the District.
Reference is made to the initial formation of CFD 2024-01 (Public Facilities Maintenance) boundary map - Zone 1 of the District recorded in Book 94 of Maps of Assessment and Community Facilities Districts on September 13, 2024, at Page 12 in the office of the County Recorder for the County of Riverside, State of California, as Document No. 2024-0277132 which map is the final boundary map of Zone 1 in the District.
Reference is made to the initial formation of CFD 2024-01 (Public Facilities Maintenance) boundary map - Zone 2 of the District recorded in Book 94 of Maps of Assessment and Community Facilities Districts on September 13, 2024, at Page 11 in the office of the County Recorder for the County of Riverside, State of California, as Document No. 2024-0277131 which map is the final boundary map of Zone 2 in the District.
Reference is made to the boundary map of Future Annexation Area into the District
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3 recorded in Book 94 of Maps of Assessment and Community Facilities Districts on September 13, 2024, at Page 13 in the office of the County Recorder for the County of Riverside, State of California, as Document No. 2024-0277133 which map is the final boundary map of Future Annexation Area in the District.
Reference is made to the boundary map of Annexation No. 1 (Zone 3) into the District recorded in Book 95 of Maps of Assessment and Community Facilities Districts on January 28, 2025, at Page 15 in the office of the County Recorder for the County of Riverside, State of California, as Document No. 2025-0027472.
Reference is made to the boundary map of Annexation No. 2 (Zone 4) into the District recorded in Book 96 of Maps of Assessment and Community Facilities Districts on June 25, 2025, at Page 63 in the office of the County Recorder for the County of Riverside, State of California, as Document No. 2025-0190246.
Reference is made to the boundary map of Annexation No. 3 (Zone 5) into the District recorded in Book 96 of Maps of Assessment and Community Facilities Districts on August 20, 2025, at Page 88 in the office of the County Recorder for the County of Riverside, State of California, as Document No. 2025-0256665.
Reference is made to the boundary map of Annexation No. 4 (Zone 6) into the District recorded in Book 98 of Maps of Assessment and Community Facilities Districts on January 16, 2026, at Page 62 in the office of the County Recorder for the County of Riverside, State of California, as Document No. 2025-0016331.
Reference is made to the boundary map of Annexation No. 5 (Zone 7) into the District recorded in Book 98 of Maps of Assessment and Community Facilities Districts on January 16, 2026, at Page 63 in the office of the County Recorder for the County of Riverside, State of California, as Document No. 2025-0016332.
Reference is made to the boundary map of Annexation No. 6 (Zone 8) into the District recorded in Book 99 of Maps of Assessment and Community Facilities Districts on May 20, 2026, at Page 54 in the office of the County Recorder for the County of Riverside, State of California, as Document No. 2026-0154467.
For further information concerning the current and estimated future tax liability of owners or purchasers of real property subject to this special tax lien, interested persons should contact the Finance Director at the City of Hemet, 445 E. Florida Ave., Hemet, CA 92543, phone (951) 765- 2300.
Dated: , 2026
By:
Rosalia Butler
City Clerk
City of Hemet
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A-1
EXHIBIT “A”
DESCRIPTION OF SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2024-01 (Public Facilities Maintenance) (“CFD 2024-01”), as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing facilities (may include reserves for replacement) in public street right-of-way, public lighting, public landscaping, public open spaces and other similar areas officially dedicated for public use. These services including the following:
a) Maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance of streets and roadways including slurry seal, asphalt overly and other similar maintenance; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and b) Maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, fossil fuel filters, infiltration basins, flood control channels and similar facilities.
Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements and flood control channel improvements; and c) Public street sweeping, on the segments of the arterials within the boundaries of CFD 2024- 01; as well as local roads within residential subdivisions located within CFD 2024-01; and any portions adjacent to the properties within CFD 2024-01; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment as well as the “Incidental Expenses”, as defined in the Resolution of Intention, as follows:
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A-2
INCIDENTAL EXPENSES
The cost of the Services shall include incidental expenses, including costs associated with formation of the District, determination of the amount of the Special Tax, collection of the Special Tax, payment of the Special Tax, costs incurred in order to carry out the authorized purposes of the District, and the costs of engineering, inspecting, coordinating, completing, planning and designing the Services, including the costs of environmental evaluations.
The following incidental expenses are examples of those that may be incurred in the formation of the District: • Engineering services, • Publishing, mailing and posting of notices, • Governmental notification and filing costs, • Election costs, and • Charges and fees of the City other than those waived.
The following incidental expenses are examples of those that may be incurred in each annual Special Tax levy: • Necessary consultant costs, • Costs of posting and collecting the special taxes, and Administrative costs of the City related to each annual Special Tax levy.
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B-1
EXHIBIT “B”
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
OF THE CITY OF HEMET, COUNTY OF RIVERSIDE
STATE OF CALIFORNIA
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1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
OF THE CITY OF HEMET, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA A Special Tax (all capitalized terms are defined in Section A., “Definitions”, below) shall be applicable to each Parcel of Taxable Property located within the boundaries of Community Facilities District No. 2024-01 (Public Facilities Maintenance) (the CFD). The amount of Special Tax to be levied on a Parcel in each Fiscal Year, commencing in Fiscal Year 2024-2025, shall be determined by the City Council of the City of Hemet, acting in its capacity as the legislative body of the CFD by applying the appropriate Special Tax as set forth in Sections B, C and D, below. All of the real property within the CFD, unless exempted by law or by the provisions of Section F. below, shall be taxed for the purposes, to the extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Accessory Dwelling Unit(s)” means a secondary attached or detached dwelling unit with complete independent living facilities for one or more persons. “Acre or Acreage” means the land area of a Parcel as indicated on the most recent Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area shown on the applicable Final Map, condominium plan, other recorded County map, or the land area calculated to the reasonable satisfaction of the Administrator using the boundaries set forth on such map or plan. “Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (Sections 53311 - 53368).
“Administrative Expenses” means all actual or reasonably estimated costs and expenses of the CFD that are chargeable or allocable to carry out duties of the CFD as allowed by the Act. This may include, without limitation, all costs and expenses arising out of or resulting from the annual levy and collection of the Special Tax (whether by the City, the Administrator or both), any litigation or appeal involving the CFD, and other administrative expenses of the City or Administrator directly related to the CFD.
Administrative Expenses shall also include amounts estimated or advanced by the City or CFD for attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure as a result of delinquent Special Taxes. “Administrator” means a person or firm designated by the CFD to administer the Special Tax.
“Approved Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the
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2 Special Tax is being levied; and (ii) that have not been issued a Building Permit prior to the April 1st preceding the Fiscal Year in which the Special Tax is being levied. “Assessor” means the Assessor of the County.
“Assessor’s Parcel(s)” or “Parcel(s)” means a lot or parcel within the CFD shown on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number valid as of July 1 st for the Fiscal Year for which the Special Tax is being levied. “Assessor’s Parcel Map” means an official map of the County Assessor of the County designating Parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means the number assigned to a lot or Parcel for purposes of identification as determined from an Assessor Parcel Map or the applicable assessment roll.
“Base Year” means the Fiscal Year ending June 30, 2024. Rates in this Rate and Method of Apportionment for the initial formation are based on FY 2024-25 costs which will be escalated beginning in FY 2025-26. Base Year for future annexations shall be the fiscal year the annexation was approved by the City Council of the City of Hemet. “Boundary Map” means a recorded map of the CFD that indicates by a boundary line the extent of the territory identified to be subject to the levy of Special Taxes, as may be amended due to future annexations of territory to the CFD. "Building Square Footage" or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of NonResidential Property and any Building Square Footage subsequently added to a building of such Non-Residential Property after issuance of a building permit for expansion or renovation of such building.
"Building Permit" means the first legal document issued by a local agency giving official permission for new construction.
“Capital Replacement” means to repair or replace improvements being maintained by the CFD.
“CFD” or “CFD 2024-01” means Community Facilities District No. 2024-01 (Public Facilities Maintenance) of the City of Hemet.
“City” means the City of Hemet, California
“Condominium Residential Property” means a Developed Parcel with an approved land use for residential condominiums (two or more attached units which can each be owned individually). Parcels that are open space, recreation, clubhouse, etc., owned by a condominium association, homeowner’s association or property owner’s association, are Exempt Property.
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3 “Consumer Price Index” or “CPI” means the Consumer Price Index published by the U.S. Bureau of Labor Statistic for “All Urban Consumers” in the Riverside-San Bernardino-Ontario area.
“Consumer Price Index Inflation Factor” means, for any Fiscal Year, the annual change in the Consumer Price Index which shall be measured from the month of March in the Calendar Year that ends in the previous Fiscal Year to the month of March preceding the Fiscal Year. The Maximum Special Tax Rates in Table 1 and Table 2 shall be increased by the amount of the Consumer Price Index Inflation Factor, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) of the Maximum Special Tax Rates in effect for the previous Fiscal Year. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario Area.
“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2024-01 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to the definition of Special Tax B (Contingent) that a POA fails to adequately provide such services.
“Council” means the City Council of the City acting as the legislative body of the CFD. “County” means the County of Riverside, California.
“Developed Property” means all Parcels of Taxable Property: (i) that are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax is being levied; and (ii) for which a Building Permit for new construction has been issued prior to April 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means any Parcel that is exempt from Special Taxes pursuant to Section F., below.
“Final Map” means a subdivision of property by recordation of a map or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which Building Permits may be issued without further subdivision.
“Fiscal Year” means the 12-month period starting on July 1 of any calendar year and ending the following June 30.
“Future Annexation Area” means the geographic area that, at the time of CFD formation, was considered potential annexation area for the CFD and which was, therefore, identified as “future annexation area” on the recorded Boundary Map. Such designation does not mean that any or all of the Future Annexation Area will annex into
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4 the CFD, but should property designated as Future Annexation Area choose to annex, the annexation may be processed pursuant to the annexation procedures in the Act for territory included in the Future Annexation Area, as well as the procedures established by the City.
“Land Use Class” or “LUC” means any of the classes listed in Table 1 or Table 2 of Section C. or Appendix A, below.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means, for each Parcel in each Fiscal Year, the greatest Special Tax A amount, determined in accordance with Section C., below, that may be levied on such Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means, for each Parcel in each Fiscal Year, the greatest Special Tax B (Contingent) amount, determined in accordance with Section C., below, that may be levied on such Parcel in such Fiscal Year. “Maximum Special Tax Rate (s)” means, for each Fiscal Year, the greatest Special Tax rate, determined in accordance with Section C., below, that may be levied on a Parcel in such Fiscal Year.
“Mixed Use Property” means all Parcels of Developed Property with more than one land use including residential, commercial, retail or other land uses. “Multifamily Residential Property” or “MFR” means all Parcels of Developed Property that consists of a building or buildings comprised of attached Residential Dwelling Units available for rental by the general public, not for sale to an end user, and under common management.
“Non-Residential Property” means all Parcels of Developed Property for which a Building Permit was issued, permitting the construction of one or more commercial, retail or other types of structure other than a residential structure. “Operating Reserves” means cash reserves to fund the Special Tax Requirement in the event of cash flow shortages or unexpected increases in operating, repair and maintenance costs (excluding capital improvements).
“Property Owner’s Association Property” means all Parcels that have been conveyed, dedicated to, or irrevocably offered for dedication to a property owner association (“POA”), including any master or sub-association, prior to April 1 preceding the Fiscal Year in which the Special Tax is being levied, within a Tax Zone. The Special Tax shall not be levied on Property Owner’s Association Property. If any Property Owner’s Association Property is converted to Taxable Property as the result of a sale of an Exempt Parcel to a private owner for residential or non-residential development, it shall become subject to the Special Tax in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D.
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5 “Proportionately” means for Parcels of Taxable Property that are (i) Developed Property, the ratio of the applied Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property; (ii) Approved Property, the ratio of the applied Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property; and (iii) Undeveloped Property, Public Property or Property Owner’s Association Property, the ratios of the applied Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all Parcels of Undeveloped Property, Public Property and Property Owner’s Association Property.
“Public Property” means all Parcels which, as of April 1st preceding the Fiscal Year in which the Special Tax is being levied, are (i) used for rights-of-way or any other purpose and is owned by, dedicated to, or irrevocably offered for dedication to the federal government, the State, the County, City or any other public agency, provided, however, that any property leased by a public agency to a private entity and subject to taxation under Section 53340.1 of the Act shall be taxed and classified according to its use; or (ii) encumbered by an unmanned utility easement making impractical its utilization for other than the purpose set forth in the easement.
“Residential Dwelling Unit” or "RDU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Parcels of Developed Property for which a Building Permit has been issued permitting the construction of one or more Residential Dwelling Units.
“Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2024-01 as set forth in the documents adopted by the City Council at the time the CFD was formed.
“Single Family Residential Property” or “SFR” means all Parcels of Residential Property, other than Accessory Dwelling Unit, Condominium Residential Property or Multifamily Residential Property.
“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Parcel of Taxable Property in accordance with Section D. “Special Tax A” means the special tax to be levied in each Fiscal Year on each Parcel of Taxable Property in accordance with Section D.1 to fund the Special Tax A Requirement.
“Special Tax Area A” means the parcels comprising Special Tax Area A as depicted and defined in the initial Boundary Map and as depicted and defined in the Boundary Map of each additional property annexed into CFD No. 2024-01. “Special Tax A Requirement” means for each Tax Zone for each Fiscal Year, the Special Tax A amount required to: (1) pay the estimated cost of Special Tax A Services including but not limited to (i) maintenance of landscaping and lighting of parks, parkways,
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6 streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) maintenance of streets and roadways, including but not limited to slurry seal, asphalt overlay, public street sweeping and similar roadway maintenance, for such Fiscal Year as determined by the City; (2) fund the Special Tax A Reserve Fund in an amount not to exceed 20% of the Special Tax A Reserve Fund Requirement; (3) pay Administrative Expenses; (4) pay for an actual or anticipated shortfall due to Special Tax A delinquencies in the current or prior Fiscal Year; and (5) provide a credit for funds that are available to reduce the annual Special Tax A levy, if any, as determined by the Administrator. The Special Tax A Authorized Services are defined in detail in Exhibit B of the Rate and Method of Apportionment.
“Special Tax A Reserve Fund” means a fund to be used for Capital Replacement and Operating Reserves related to the Special Tax A Services. “Special Tax A Reserve Fund Requirement” for each Zone equals 100% of the estimated cost of Special Tax A Services in the Base Year. The Special Tax A Reserve Fund Requirement shall be increased annually, commencing July 1, 2025, based on the Consumer Price Index Inflation Factor.
“Special Tax A Services” means those authorized services, permitted under the MelloRoos Community Facilities Act of 1982 as defined in Exhibit B of the Rate and Method of Apportionment, but limited to those services set forth in the documents adopted by the City Council at the time the CFD was formed as Special Tax A Services. “Special Tax B (Contingent)” or “Special Tax B” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property, in accordance with Section D.2, to fund the Special Tax B (Contingent) Requirement, if required.
Maintenance of the Special Tax B Improvements shall be the responsibility of the Property Owner’s Association as long as the Special Tax B Improvements are being maintained to a standard acceptable to the City. Special Tax B shall begin to be levied in the first year in which (i) the City determines that the Special Tax B Improvements have not been maintained to a standard acceptable to the City, (ii) the POA files for bankruptcy or (iii) the POA is dissolved. The City shall not levy Special Tax B without first giving notice to the Property Owner’s Association specifying the maintenance deficiency related to the Special Tax B Improvements and allowing a sufficient period, as determined by the City, for curing such deficiency.
“Special Tax Area B (Contingent)” means the parcels comprising Special Tax Area B as depicted and defined in the initial Boundary Map and as depicted and defined in the Boundary Map of each additional property annexed into CFD No. 2024-01. “Special Tax B (Contingent) Improvements” means the improvements that are maintained and operated as described in Special Tax B Services. “Special Tax B (Contingent) Requirement” means for each Tax Zone for each Fiscal Year, the Special Tax B amount required to: (1) pay the estimated cost of Special Tax B Services including but not limited to (i) maintenance of landscaping and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality
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7 improvements, (iii) maintenance of streets and roadways, including but not limited to slurry seal, asphalt overlay, public street sweeping and similar roadway maintenance, for such Fiscal Year as determined by the City; (2) fund the Special Tax B Reserve Fund in an amount not to exceed 20% of the Special Tax B Reserve Fund Requirement; (3) pay Administrative Expenses. The Special Tax B Authorized Services are defined in detail in Exhibit B of the Rate and Method of Apportionment.
“Special Tax B (Contingent) Reserve Fund” means a fund to be used for Capital Replacement and Operating Reserves related to the Special Tax B Services. “Special Tax B (Contingent) Reserve Fund Requirement” for each Tax Zone equals 100% of the estimated cost of Special Tax B (Contingent) Services in the Base Year. The Special Tax B Reserve Fund Requirement shall be increased annually, commencing July 1, 2025, based on the Consumer Price Index Inflation Factor. “Special Tax B (Contingent) Services” means those authorized services, permitted under the Mello-Roos Community Facilities Act of 1982 as defined in Exhibit B of the Rate and Method of Apportionment, but limited to those services, for each Tax Zone, as set forth in the documents adopted by the City Council at the time the CFD was formed as Special Tax B (Contingent) Services.
“State” means the State of California.
"Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Table 1, Table 2, Table 3 and Appendix A identify the initial Tax Zones created at formation of the CFD. Appendix A may be updated to include new Parcels or new Tax Zones added to the CFD as a result of future annexations. “Taxable Property” means all Parcels within the boundary of the CFD, inclusive of Special Tax Area A and Special Tax Area B (Contingent) pursuant to the Boundary Map that are not exempt from the Special Tax pursuant to Section F., below. “Taxable Unit” means either a RDU, BSF or an Acre, as shown in Table 1 or Table 2 of Section C.
“Undeveloped Property” means all Parcels of Taxable Property not classified as Developed Property, Approved Property, Public Property, or Property Owner’s Association Property.
B. ASSIGNMENT TO LAND USE CLASS
For each Fiscal Year, commencing Fiscal Year 2024-2025, all Parcels of Taxable Property shall be classified as either Developed Property, Approved Property, Undeveloped Property, Public Property, or Property Owner’s Association Property; and subject to the levy of Special Taxes in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D.
17.F.
8 Parcels of Developed Property shall further be classified as Residential Property or NonResidential Property. Parcels of Residential Property shall further be classified as Single Family Residential Property, Condominium Residential Property or Multifamily Residential Property. The number of Residential Dwelling units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
For each Fiscal Year commencing Fiscal Year 2024-2025, Maximum Special Tax Rates shall be determined as described below:
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of RDUs constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multifamily building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of RDUs contained within the building or buildings, and the Special Tax A and or the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of RDUs by the Maximum Special Tax per RDU for the applicable Tax Zone shown in the Tables below or as included in Appendix A as each annexation occurs. For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the quantity of BSF or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual quantity of BSF or Acres for the Assessor’s Parcels, the Special Tax A and/or the Special Tax B levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the quantity of BSF or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone shown in the Tables below or as included in Appendix A as each annexation occurs.
1. Developed Property
The Maximum Special Tax A and Maximum Special Tax B for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD.
When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A and Maximum Special Tax B for Developed Property for Fiscal Year 2024-25 within Tax Zone 1 and Tax Zone 2 are identified in Table 1 below and in Appendix A. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
17.F.
9 TABLE 1
Maximum Special Tax Rates for Developed Property
Fiscal Year 2024-2025
Tax Zone
Tract/Parcel
Map Land Use Class
Taxable
Unit
Maximum
Special Tax A
Per Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
1 PM 14318 Non-Residential Property Acre $2,493.00 $0.00 2 PM 36566 Non-Residential Property Acre $823.00 $0.00
Mixed Use Property
The Maximum Special Tax that may be levied on a Parcel of Mixed Use Property shall be the sum of the Maximum Special Tax for each of the Parcels land uses based on Table 1. The Maximum Special Tax Rate for Single Family Residential Property shall apply to any Residential Dwelling Units on the parcel. The Maximum Special Tax Rate for Acreage shall apply to the other land uses on the property, with Acreage for each land use determined by reference to the approved site plan for such Parcel. Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
2. Approved Property
The Maximum Special Tax A and Maximum Special Tax B for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A and/or Maximum Special Tax B, as applicable, for the Tax Zone annexed and included in Appendix A.
In determining the Maximum Special Tax A and Maximum Special Tax B for Approved Property for Fiscal Year 2024-25 within Tax Zone 1 and Tax Zone 2 for each Parcel of Approved Property, the Undeveloped Property Maximum Special Tax Rate from Section C.3 (Table 2) times the Acreage of such Parcel shall be applied; provided, however, that for a Parcel of Approved Property that is expected to become Single Family Residential Property, as reasonably determined by the Administrator based on the Final Map for such Parcel, the Maximum Special Tax for such Parcel of Approved Property shall be calculated utilizing Section C.1 (Table 1) as if such Parcel were already designated as Single Family Residential Property. Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
17.F.
10 3. Undeveloped Property
The Maximum Special Tax A and Maximum Special Tax B for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2024-01, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A and/or Maximum Special Tax B, as applicable, for the Tax Zone annexed and included in Appendix A.
The Maximum Special Tax A and Maximum Special Tax B for Undeveloped Property for Fiscal Year 2024-25 within Tax Zone 1 and Tax Zone 2 are identified in Table 2 below and in Appendix A. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
TABLE 2
Maximum Special Tax Rates for Undeveloped Property
Fiscal Year 2024-2025
Tax Zone
Tract/Parcel
Map Land Use Class
Taxable
Unit
Maximum
Special Tax A
Per Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
1 PM 14318 Non-Residential Property Acre $2,493.00 $0.00 2 PM 36566 Non-Residential Property Acre $823.00 $0.00
4. Taxable Public Property and Property Owner’s Association Property The Maximum Special Tax A and Maximum Special Tax B that may be levied for FY 2024-25 on each Parcel of Taxable Public Property or Taxable Property Owners Association Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax Rates for each Tax Zone shown in Appendix A multiplied by the Acreage of such Parcel. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
5. Increase in the Maximum Special Tax A and Maximum Special Tax B (Contingent)
On each July 1, commencing on July 1, 2025 the Maximum Special Tax A and Maximum Special Tax B for Developed Property, Approved Property, Undeveloped Property and Taxable Public Property and Property Owner’s Association Property shall increase by Consumer Price Index Inflation Factor.
17.F.
11 D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Administrator shall levy Special Tax A on all Taxable Property within Special Tax Area A up to the amount of the Special Tax A Requirement in accordance with the following steps:
First: The Special Tax A shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement; then Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, Special Tax A shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement; then
Third: If additional moneys are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, Special Tax A shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, Special Tax A shall be levied Proportionately on each Parcel of Taxable Public Property and Property Owner’s Association Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax A Requirement.
2. Special Tax B (Contingent)
Commencing with Fiscal Year 2024-2025 and for each following Fiscal Year, the Administrator may levy Special Tax B on all Taxable Property within Special Tax Area B up to the amount of the Special Tax B Requirement in accordance with the following steps:
First: If levied, Special Tax B shall be levied Proportionately on each Parcel of Developed Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement; then Second: If additional moneys are needed to satisfy the Special Tax B Requirement after the first step has been completed, Special Tax B shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement; then
17.F.
12 Third: If additional moneys are needed to satisfy the Special Tax B Requirement after the first two steps have been completed, Special Tax B shall be levied Proportionately on each Parcel of Undeveloped Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement.
Fourth: If additional moneys are needed to satisfy the Special Tax B Requirement after the first three steps have been completed, Special Tax B shall be levied Proportionately on each Parcel of Taxable Public Property and Property Owner’s Association Property at up to 100% of the applicable Maximum Special Tax for each Parcel as needed to satisfy the Special Tax B Requirement.
Notwithstanding the above, under no circumstances will the Special Tax be levied in any Fiscal Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than ten percent (10%) above the amount that would have been levied in that Fiscal Year had there never been any such delinquency or default.
E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2024-01 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate existing Tax Zone or to a new Tax Zone with the appropriate Maximum Special Tax rates and will be included in an amended Appendix A.
F. EXEMPTIONS
The Special Tax shall not be levied on Public Property or Property Owner’s Association Property. If any Public Property or Property Owner’s Association Property is converted to Taxable Property as the result of a sale of an Exempt Parcel to a private owner for residential or non-residential development, it shall become subject to the Special Tax in accordance with this Rate and Method of Apportionment as determined pursuant to Sections C. and D.
G. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes and shall be subject to the same penalties, the same procedure, sale and lien priority in the case of delinquency; provided, however, that the Administrator may directly bill the Special Tax or may collect the Special Tax at a different time or in a different manner if necessary to meet the financial obligations of the CFD,
17.F.
13 and provided further that the CFD may covenant to foreclose and may actually foreclose on Parcels having delinquent Special Taxes as permitted by the Act.
H. APPEALS
Any taxpayer may file a written appeal of the Special Tax on their Parcel(s) with the Administrator, provided that the appellant is current in their payments of Special Taxes.
During pendency of an appeal, all Special Taxes must be paid on or before the payment due date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The Administrator shall review the appeal, meet with the appellant if the Administrator deems necessary, and advise the appellant of its determination. If the Administrator agrees with the appellant, the Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s Parcel(s). No refunds of previously paid Special Taxes shall be made.
The Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual levy and administration of the Special Tax and any taxpayer who appeals, as herein specified.
I. PREPAYMENT
The Special Taxes may not be prepaid.
J. TERM OF THE SPECIAL TAX
Special Tax A shall be levied annually in perpetuity unless terminated earlier by the City.
Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-1
APPENDIX A
CITY OF HEMET
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
MAXIMUM TAX RATES
Maximum Special Tax Rates for Developed Property
Fiscal Year 2026-2027
Formation/
Annexation
No.
Tax Zone
Tract/Parcel
Map* Land Use Class
Taxable
Unit
Maximum
Special
Tax A Per
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
Formation 1 PM 14318 Non-Residential Property Acre $2,635.05 $0.00 Formation 2 PM 36566 Non-Residential Property Acre $869.89 $0.00 No. 1 3
SDR 23-002
(National
Tube Supply)
Non-Residential Property Acre $756.79 $0.00
No. 2 4
PM 37779
(Stetson
Corner)
Non-Residential Property Acre $5,754.20 $0.00
No. 3 5
SDR 21-002
(Eggleton
Trucking)
Non-Residential Property Acre $762.86 $0.00
No. 4 6
CUP 22-002
(Newland
Kirby
Warehouse)
Non-Residential Property Acre $697.91 $0.00
No. 5 7
SDR 22-013
(Quick Quack
Car Wash)
Non-Residential Property Acre $6,844.14 $0.00
No.6 8
SDR 20-014
(Go Car Wash) Non-Residential Property Acre $2,112.31 $0.00 No.7 9
CUP 16-002
(All For Show) Non-Residential Property Acre $18,912.00 $0.00
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-2
Formation/
Annexation
No.
Tax Zone
Tract/Parcel
Map* Land Use Class
Taxable
Unit
Maximum
Special
Tax A Per
Taxable
Unit
Maximum
Special Tax B
Per Taxable
Unit
Future
Annexation
Area Tract/PM
Single Family Residential
Property RDU $ per RDU
$ per
RDU
Multifamily Residential
Property RDU $ per RDU
$ per
RDU
Non-Residential Property Acre $ per
Acre
$ per
Acre
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-3
Maximum Special Tax Rates for Approved Property
Fiscal Year 2026-2027
Formation/
Annexation No.
Tax Zone Tract/Parcel
Map* Land Use Class
Taxable
Unit
Maximum
Special
Tax A Per
Taxable
Unit
Maximum
Special
Tax B Per
Taxable
Unit
Formation 1 PM 14318 Non-Residential Property Acre $2,635.05 $0.00 Formation 2 PM 36566 Non-Residential Property Acre $869.89 $0.00 No. 1 3
SDR 23-002
(National
Tube Supply)
Non-Residential Property Acre $756.79 $0.00
No. 2 4
PM 37779
(Stetson
Corner)
Non-Residential Property Acre $5,754.20 $0.00
No. 3 5
SDR 21-002
(Eggleton
Trucking)
Non-Residential Property Acre $762.86 $0.00
No. 4 6
CUP 22-002
(Newland
Kirby
Warehouse)
Non-Residential Property Acre $697.91 $0.00
No. 5 7
SDR 22-013
(Quick Quack
Car Wash)
Non-Residential Property Acre $6,844.14 $0.00
No.6 8
SDR 20-014
(Go Car
Wash)
Non-Residential Property Acre $2,112.31 $0.00
No.7 9
CUP 16-002
(All For Show) Non-Residential Property Acre $18,912.00 $0.00 Future
Annexation
Area Tract/PM
Single Family Residential
Property RDU $ per RDU
$ per
RDU
Multifamily Residential
Property RDU $ per RDU
$ per
RDU
Non-Residential Property Acre $ per
Acre
per
Acre
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-4
Maximum Special Tax Rates for Undeveloped Property
Fiscal Year 2026-2027
Formation/
Annexation
No. Tax Zone
Tract/Parcel
Map* Taxable Unit
Maximum
Special Tax
A Per
Taxable Unit
Maximum
Special Tax
B Per
Taxable Unit
Formation 1 PM 14318 Acre $2,635.05 $0.00
Formation 2 PM 36566 Acre $869.89 $0.00
No. 1 3
SDR 23-002
(National Tube
Supply)
Acre $756.79 $0.00
No. 2 4
PM 37779
(Stetson Corner) Acre
$5,754.20
$0.00
No. 3 5
SDR 21-002
(Eggleton
Trucking)
Acre $762.86 $0.00
No. 4 6
CUP 22-002
(Newland Kirby
Warehouse)
Acre $697.91 $0.00
No. 5 7
SDR 22-013
(Quick Quack
Car Wash)
Acre $6,844.14 $0.00
No. 6 8
SDR 20-014
(Go Car Wash) Acre $2,112.31 $0.00
No.7 9
CUP 16-002
(All For Show) Acre $18,912.00 $0.00
Future
Annexation
Area
Tract/PM
RDU $ per
RDU
$ per
RDU
RDU $ per
RDU
$ per
RDU
Acre $ per
Acre
$ per
Acre
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-5
Maximum Special Tax Rates for Taxable Public Property
and Property Owner’s Association Property
Fiscal Year 2026-2027
The Maximum Special Tax A and Maximum Special Tax B that may be levied for FY 2026-27 on each Parcel of Taxable Public Property or Taxable Property Owners Association Property shall be equal to the product of the applicable Undeveloped Property Maximum Special Tax Rates for each Tax Zone shown in Appendix A multiplied by the Acreage of such Parcel. These Maximum Special Tax Rates are subject to annual escalation in accordance with Section C. 5.
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment A-6
Increase in the Maximum Special Tax A and Special Tax B (Contingent) On each July 1, commencing on July 1, 2027 the Maximum Special Tax A and Maximum Special Tax B for Developed Property, Approved Property, Undeveloped Property and Taxable Public Property and Property Owner’s Association Property for each Tax Zone shall increase by Consumer Price Index Inflation Factor. * The property identified above shall remain part of the identified Tax Zone regardless of changes in the configuration of the parcels in future Fiscal Years. As APNs change, the City may update Appendix A to reflect the most current APNs and Tax Zones consistent with the Taxable Property categories set forth in the Rate and Method of Apportionment of Special Tax for CFD No. 2024-01.
17.F.
City of Hemet
CFD No. 2024-01 (Public Facilities Maintenance)
Rate and Method of Apportionment B-1
APPENDIX B
CITY OF HEMET
COMMUNITY FACILITIES DISTRICT NO. 2024-01
(PUBLIC FACILITIES MAINTENANCE)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2024-01 (Public Facilities Maintenance) (“CFD 2024-01”), as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing facilities (may include reserves for replacement) in public street right-of-way, public lighting, public landscaping, public open spaces and other similar areas officially dedicated for public use. These services include the following:
a) Maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance of streets and roadways including slurry seal, asphalt overlay and other similar maintenance; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and b) Maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, fossil fuel filters, infiltration basins, flood control channels and similar facilities.
Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements and flood control channel improvements; and c) Public street sweeping, on the segments of the arterials within the boundaries of CFD 2024-01; as well as local roads within residential subdivisions located within CFD 2024- 01; and any portions adjacent to the properties within CFD 2024-01; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services may be financed by proceeds of the special tax of CFD 2024-01 only to the extent that they are in addition to those provided in the territory of CFD 2024-01 before CFD 2024- 01 was created or those provided in the territory annexed to CFD 2024-01 before the territory was annexed, as applicable.
17.F.
EXHIBIT “C”
NAMES OF THE OWNERS AND ASSESSOR’S PARCEL NUMBERS
OF THE REAL PROPERTY WITHIN DISTRICT
ANNEXATION NO. 7 - ZONE 9
Owner Assessor's Parcel Number
GTR INV GROUP 443-201-026
17.F.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jul 14 2026
Department: Police Department
Submitted by: Noah Rau, Interim City Manager
Josiah Douglas, Lieutenant;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:
Approval of Measure U Funding and First Amendment to the Valley Auto Salvage Agreement for the Abandoned Recreational Vehicle and Motorhome Tow Rotation Program RECOMMENDED ACTION:
It is respectfully recommended that the City Council adopt the following resolution (Attachment No. 1):
RESOLUTION NO. 2026-119 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEMET, CALIFORNIA, AUTHORIZING THE ALLOCATION OF $100,000 FROM MEASURE U FUNDS FOR THE FISCAL YEAR 2026/27 TO FUND ABANDONED RECREATIONAL VEHICLE
AND MOTORHOME TOW ROTATION PROGRAM AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH VALLEY AUTO SALVAGE (ATTACHMENT NO. 2) INCREASING COMPENSATION FROM $50,000 TO $100,000 PER CITY FISCAL YEAR EXECUTIVE SUMMARY:
On November 12, 2025, the City Council adopted Ordinance No. 2065 establishing the Abandoned Recreational Vehicle and Motorhome Tow Rotation Program to address abandoned recreational vehicles (RVs) and motorhomes that create public nuisances and negatively impact neighborhood safety, aesthetics, and quality of life. The program provides a structured process for the removal, storage, dismantling, and disposal of abandoned RVs and motorhomes located throughout the City.
Since implementation, the program has proven to be an effective tool in addressing abandoned vehicles that often require specialized towing, environmental mitigation, and disposal services.
However, the costs associated with these services frequently exceed the amounts recoverable through lien sales or owner reimbursement, resulting in additional costs to the City.
To ensure the continued success of the program during Fiscal Year 2026-27, staff recommends allocating $100,000 in Measure U funding and approving the First Amendment to the agreement with Valley Auto Salvage to increase the annual compensation limit from $50,000 to $100,000. The recommended funding will provide sufficient resources to continue removing abandoned RVs and motorhomes while supporting the City's public safety and neighborhood beautification objectives.
17.G.
BACKGROUND/ANALYSIS:
Abandoned recreational vehicles and motorhomes present unique enforcement and operational challenges for municipalities. Unlike passenger vehicles, these oversized vehicles often contain hazardous materials, abandoned personal property, biohazards, and other environmental concerns that require specialized handling before disposal.
Recognizing these challenges, the City Council adopted Ordinance No. 2065 on November 12, 2025, establishing the Abandoned Recreational Vehicle and Motorhome Tow Rotation Program. The ordinance created a formal process for removing nuisance RVs and motorhomes while ensuring consistency, fairness, and compliance with applicable state and local regulations.
Following adoption of the ordinance, the City entered into an agreement with Valley Auto Salvage to provide towing, storage, dismantling, disposal, and related services. The agreement established a maximum annual compensation amount of $50,000.
DISCUSSION:
Since the program became operational, staff has utilized the services of Valley Auto Salvage to remove abandoned recreational vehicles and motorhomes that pose health and safety hazards throughout the City. The program has improved the City's ability to respond to nuisance complaints, restore public rights-of-way, and reduce blight within residential and commercial neighborhoods.
While property owners are responsible for reimbursement whenever possible, the specialized nature of abandoned RV removals frequently results in costs that cannot be fully recovered. Expenses associated with heavy-duty towing, secure storage, dismantling, environmental compliance, hazardous material handling, and disposal often exceed the proceeds generated through lien sales or owner reimbursement.
Based on program activity and projected service demands during FY 2026-27, staff anticipates that the current annual compensation limit of $50,000 will be insufficient to maintain program operations.
Increasing the agreement to $100,000 will ensure adequate funding remains available to continue responding to abandoned RV and motorhome incidents throughout the fiscal year.
Staff recommends utilizing Measure U funds for this purpose because the program directly supports voter-approved public safety and quality-of-life objectives by removing hazardous vehicles, reducing neighborhood blight, improving accessibility of public streets, and protecting the health and safety of residents.
PREVIOUS COUNCIL ACTION:
On October 14, 2025, the City Council introduced by title only and waived further reading of ordinance No. 20265 establishing the Abandoned Recreational Vehicle and Motorhome Tow Rotation Program.
On October 28, 2025, the City Council considered amendments to Ordinance No. 2065 and directed the item to be placed on a future agenda for adoption.
17.G.
On November 12, 2025, the City Council adopted Ordinance No. 2065 establishing the Abandoned Recreational Vehicle and Motorhome Tow Rotation Program.
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.
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 2: Develop concepts and programs to enhance the quality of life services.
FISCAL IMPACT:
Approval of the proposed resolution will allocate $100,000 from Measure U funds during FY 2026-27 to support the Abandoned Recreational Vehicle and Motorhome Tow Rotation Program. The First Amendment to the agreement with Valley Auto Salvage will increase the annual not-to-exceed compensation amount from $50,000 to $100,000.
The Administrative Services Director, or designee, will establish the appropriate budget account(s), issue the necessary purchase order(s), and process payments associated with the program. The funding is fully supported by Measure U revenues and will not impact the General Fund.
ALTERNATIVE(S):
1. Approve a different funding amount based on City Council direction.
2. Identify an alternative funding course for the program
3. Provide the City Manager with alternative direction.
ATTACHMENT(S):
Attachment No. 1 - Resolution No. 2026-119 RV Tow Rotation Funding.pdf Attachment No. 2 - Valley Auto Salvage - Abandoned RV Towing - First Amendment - 2026-047
17.G.
CITY OF HEMET RESOLUTION NO. 2026-119 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-119
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, APPROVING THE
ALLOCATION OF $100,000 IN MEASURE U FUNDS FOR
FISCAL YEAR 2026-27 TO FUND THE ABANDONED
RECREATIONAL VEHICLE AND MOTORHOME TOW
ROTATION PROGRAM AND APPROVING THE FIRST
AMENDMENT TO THE AGREEMENT WITH VALLEY
AUTO SALVAGE INCREASING COMPENSATION FROM
$50,000 TO $100,000 PER CITY FISCAL YEAR.
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, on November 12, 2025, the City Council adopted Ordinance No. 2065 establishing the Abandoned Recreational Vehicle and Motorhome Tow Rotation Program (“Program”); and
WHEREAS, the Program provides a framework for the removal, storage, dismantling, and disposal of abandoned recreational vehicles and motorhomes that constitute public nuisances and negatively impact public health, safety, and quality of life within the City; and
WHEREAS, the City contracted with Valley Auto Salvage for these services with a total compensation not to exceed fifty thousand dollars ($50,000) per City Fiscal Year; and
17.G.
CITY OF HEMET RESOLUTION NO. 2026-119 2
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WHEREAS, the program is currently operational and has demonstrated its value in addressing abandoned recreational vehicles and motorhomes throughout the community; and
WHEREAS, costs associated with towing, storage, dismantling, disposal, environmental compliance, and related services often exceed amounts recoverable through lien sale or owner reimbursement processes; and WHEREAS, Measure U funds are intended to support public safety and qualityof-life initiatives within the City of Hemet; and WHEREAS, the City Council finds that funding the Program serves a public purpose by reducing blight, improving public safety, enhancing neighborhood aesthetics, and maintaining access to public streets and rights-of-way.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
SECTION 1. The recitals set forth above are hereby adopted as findings in support of this Resolution.
SECTION 2. The City Council hereby approves the allocation of one hundred thousand dollars ($100,000) from Measure U funds during City Fiscal Year 2026/27 for the operation of the Abandoned Recreational Vehicle and Motorhome Tow Rotation Program.
SECTION 3. The City Council hereby approves the First Amendment to the Agreement with Valley Auto Salvage increasing the not to exceed compensation amount from fifty thousand dollars ($50,000) to one hundred thousand dollars ($100,000) per City Fiscal Year.
17.G.
CITY OF HEMET RESOLUTION NO. 2026-119 3
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SECTION 4. The approved funding may be utilized for towing, storage, dismantling, disposal, environmental mitigation, and other related vendor services necessary to implement the program.
SECTION 5. The Administrative Services Director, or their designee, is authorized to make any necessary budget adjustments and establish the appropriate budget account(s), if required, create the necessary purchase order(s), and process payments associated with the program.
SECTION 6. The City Manager, or their designee, is authorized to execute all documents and take all actions necessary to implement this Resolution and administer the approved funding.
SECTION 7. This Resolution shall become effective upon adoption.
17.G.
CITY OF HEMET RESOLUTION NO. 2026-119 4
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PASSED, APPROVED AND ADOPTED this 14th day of July, 2026. ____________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:
_____________________________ __________________________ Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk
17.G.
CITY OF HEMET RESOLUTION NO. 2026-119 5
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State of California )
County of Riverside )
City of Hemet )
I, Rosalia A. Butler, MMC, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 14th day of July,
2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
____________________________
Rosalia A. Butler, MMC, City Clerk
17.G.
00091753.1
FIRST AMENDMENT TO
AGREEMENT 2026-047
BY AND BETWEEN
THE CITY OF HEMET
A CALIFORNIA MUNICIPAL CORPORATION
AND
VALLEY AUTO SALVAGE, INC.
A CALIFORNIA CORPORATION
DATED: JULY 15, 2026
FIRST AMENDMENT TO AGREEMENT
17.G.
This First Amendment to the Goods and Services Agreement for the purpose of Abandoned Recreational Vehicle Towing and Dismantling Services is made and entered into as of this 15th day of July, 2026, by and between the City of Hemet (“City”), a California municipal corporation and Valley Auto Salvage, Inc., a 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 “Goods and Services Agreement” dated February 18, 2026 (“Agreement”) for the purpose of retaining services of Consultant to provide Abandoned Recreational Vehicle Towing and Dismantling Services.
B. Pursuant to Section 28 of the Agreement, the Parties desire to amend the Agreement to increase the not to exceed compensation amount.
C. Section 5(a) of the Agreement provides that the Compensation shall not exceed Fifty Thousand Dollars ($50,000.00) per City fiscal year.
D. This First Amendment amends Section 5(a) to provide that the Compensation shall not exceed One Hundred Thousand Dollars ($100,000.00) per City fiscal year.
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:
1. AMENDMENT. The Agreement is hereby modified and amended as follows:
1.1 [COMPENSATION]. Section 5(a) of the Agreement is hereby amended to increase the Not to Exceed Amount to One Hundred Thousand Dollars ($100,000.00) per City fiscal year.
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.
17.G.
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.
4. INTEGRATION. This Amendment consists of pages 1 through 3, 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. EFFECTIVE DATE. This Amendment shall not become effective until the date it has been executed by the appropriate authorities of the City and Consultant.
7. APPLICABLE LAW. The laws of the State of California shall govern the interpretation and enforcement of this Amendment.
8. 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]
17.G.
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to the Agreement on the date and year first written above.
CITY OF HEMET
___________________________
Noah Rau
Interim City Manager
ATTEST:
CITY CLERK
By: ___________________________
APPROVED AS TO FORM:
CITY ATTORNEY
By: ____________________________
CONSULTANT
By:
Its:
17.G.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jul 14 2026
Department: Fire Department
Submitted by: Noah Rau, Interim City Manager
Cameron Phillips, Interim Fire Chief, Lali Quinteros, Management Analyst; ☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:
A Resolution Authorizing Purchases with Fire Apparatus Solutions, Inc. dba Johnson Equipment Company in an Amount Not to Exceed $60,972.50 for Fiscal Year 2025–2026 RECOMMENDED ACTION:
It is respectfully recommended that the City Council adopt the following resolution (Attachment No. 1):
RESOLUTION NO. 2026-117 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEMET, CALIFORNIA, AUTHORIZING PURCHASES WITH FIRE APPARATUS SOLUTIONS, INC.
DBA JOHNSON EQUIPMENT COMPANY IN AN AMOUNT NOT TO EXCEED $60,972.50 AND
AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE ALL DOCUMENTS
RELATED THERETO
EXECUTIVE SUMMARY:
The proposed resolution authorizes purchases with Fire Apparatus Solutions, Inc. dba Johnson Equipment Company in an amount not to exceed $60,972.50 for Fiscal Year 2025-26. Johnson Equipment Company provides specialized fire apparatus equipment, maintenance, inspections, repairs, replacement parts, equipment installation, and manufacturer-supported services for the Hemet Fire Department's emergency response fleet.
During Fiscal Year 2025-26, the Hemet Fire Department's purchases from Johnson Equipment Company exceeded the City's $50,000 purchasing authority threshold due to ongoing maintenance requirements, apparatus repairs, inspections, equipment installation, and support associated with the Department's fleet, including the outfitting of two new fire engines and a Tractor Drawn Aerial Apparatus (TDA). City Council approval is therefore required to authorize total purchases up to $60,972.50.
Approval of this resolution will authorize the expenditures and allow the City to process the remaining outstanding vendor invoice.
17.H.
BACKGROUND/ANALYSIS:
Fire Apparatus Solutions, Inc. dba Johnson Equipment Company is a specialized provider of fire apparatus equipment, maintenance, inspections, repairs, replacement parts, and related services for fire departments throughout California. The company provides factory-authorized service and technical expertise necessary to maintain fire apparatus in accordance with manufacturer specifications and applicable safety standards.
On March 25, 2025, the City Council approved purchases associated with outfitting two new fire engines and a Tractor Drawn Aerial Apparatus. Since that time, the Hemet Fire Department has continued to utilize Johnson Equipment Company for equipment installation, warranty work, inspections, preventative maintenance, repairs, replacement parts, and other apparatus support services necessary to maintain the Department's emergency response fleet.
As operational needs evolved throughout the fiscal year, expenditures with Johnson Equipment Company exceeded the City's purchasing threshold requiring City Council authorization.
DISCUSSION:
Maintaining emergency response apparatus in safe and reliable operating condition is essential to the Fire Department's ability to provide emergency services to the community. Fire apparatus require specialized maintenance, inspections, repairs, and replacement components that are often manufacturer-specific and must be performed by qualified service providers.
Johnson Equipment Company possesses the specialized expertise, technical knowledge, and access to manufacturer-approved parts necessary to service the Department's apparatus fleet. Utilizing a qualified vendor helps maximize equipment reliability, reduce apparatus downtime, preserve warranty coverage, and ensure compliance with applicable safety standards.
The requested purchasing authority of $60,972.50 reflects actual and anticipated expenditures incurred during Fiscal Year 2025-26 for:
Preventative maintenance and inspection
Apparatus repairs
Equipment installation
Replacement parts
Manufacturer-supported service
Emergency repair services necessary to maintain operational readiness Approval of the proposed resolution will authorize purchases that have exceeded the City's purchasing threshold while allowing the Department to continue maintaining its emergency response fleet without interruption.
Total expenditures with Fire Apparatus Solutions, Inc. dba Johnson Equipment Company for Fiscal Year 2025–2026 have reached approximately sixty thousand, nine hundred seventy-two dollars and fifty cents ($60,972.50), exceeding the City's fifty thousand dollars ($50,000) purchasing threshold.
17.H.
City Council approval is required to authorize expenditures in excess of the purchasing threshold, allowing Finance to process the remaining outstanding invoice and complete fiscal year-end processing.
Approval of this request will authorize total expenditures with Johnson Equipment Company in an amount not to exceed sixty thousand, nine hundred seventy-two dollars and fifty cents ($60,972.50) for Fiscal Year 2025–2026.
PREVIOUS COUNCIL ACTION:
On March 25, 2025, the City Council approved purchases associated with outfitting two fire engines and a Tractor Drawn Aerial Apparatus. Apparatus-related expenditures with Johnson Equipment Company support the implementation, maintenance, and operational readiness of these Councilapproved assets.
STRATEGIC PLAN INTEGRATION:
GOAL ONE: QUALITY OF LIFE:
To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.
Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.
Objective 2: Explore and implement homelessness solutions for the City of Hemet.
Objective 3: Increase Public Safety visibility and response.
GOAL TWO: ECONOMIC OPPORTUNITY
To ensure that Hemet is a hub, with access to quality jobs, shopping options, and a varied and sustained tax base.
Objective 1: Develop business practices that welcome new development by streamlining processes.
Objective 2: Provide resources for new businesses to enhance the customer service experience.
GOAL THREE: COMMUNITY ENGAGEMENT
To connect and participate in a constant dialogue between members of the community, City staff, and elected officials to promote togetherness and positivity.
Objective 1: Deliver messaging to the Community that connects, is consistent, and relevant.
Objective 2: Increase transparency for the public.
Objective 3: Increase the community's pride within the City.
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:
Approval of the proposed resolution authorizes purchases with Fire Apparatus Solutions, Inc. dba Johnson Equipment Company in an amount not to exceed $60,972.50 for Fiscal Year 2025-26.
Funding for these purchases is available within the Fire Department's adopted Fiscal Year 2025-26 operating budget for Major Machinery & Equipment account 110.07.3241.65400. No additional appropriation is requested as part of this action.
17.H.
ALTERNATIVE(S):
The Fire Department would delay the purchase, which may impact operations.
ATTACHMENT(S):
Attachment 1_ Resolution No. 2026-117
17.H.
CITY OF HEMET RESOLUTION NO. 2026-117 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-117
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, AUTHORIZING PURCHASES
WITH FIRE APPARATUS SOLUTIONS, INC. DBA
JOHNSON EQUIPMENT COMPANY IN AN AMOUNT NOT
TO EXCEED $60,972.50 AND AUTHORIZING THE CITY
MANAGER, OR DESIGNEE, TO EXECUTE ALL
DOCUMENTS RELATED THERETO
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, Fire Apparatus Solutions, Inc. dba Johnson Equipment Company is a specialized provider of fire apparatus equipment, maintenance, repairs, inspections, replacement parts, and related services for fire service agencies throughout California; and
WHEREAS, on March 25, 2025, the City Council approved purchases associated with outfitting two new fire engines and a Tractor Drawn Aerial Apparatus ("TDA").
Since that time, the Hemet Fire Department has continued to utilize Fire Apparatus Solutions, Inc. dba Johnson Equipment Company to provide equipment installation, inspections, preventive maintenance, repairs, replacement parts, and related services necessary to maintain the Department's fire apparatus fleet; and WHEREAS, expenditures with Fire Apparatus Solutions, Inc. dba Johnson Equipment Company during Fiscal Year 2025–2026 have exceeded the City's $50,000 purchasing threshold; and
WHEREAS, pursuant to the City's Purchasing Policy, City Council approval is required for purchases exceeding $50,000; and
17.H.
CITY OF HEMET RESOLUTION NO. 2026-117 2
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WHEREAS, staff recommends the City Council approve purchases with Fire Apparatus Solutions, Inc. dba Johnson Equipment Company in an amount not to exceed $60,972.50 for Fiscal Year 2025–2026.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
SECTION 1. FINDS - Fire Apparatus Solutions, Inc. dba Johnson Equipment Company provides specialized fire apparatus equipment, maintenance, repairs, inspections, replacement parts, and related services necessary to support the operational readiness, reliability, and safety of the Hemet Fire Department's apparatus fleet.
SECTION 2. DETERMINES - Routine preventative maintenance, inspections, repairs, equipment installation, replacement parts, and manufacturer-supported services are essential to maintaining the Department's emergency response capabilities and ensuring the City's fire apparatus remain safe, reliable, and available for emergency response. These purchases support the Department's ability to provide reliable emergency response services to the community.
SECTION 3. ORDERS – The City Council hereby authorizes the Administrative Services Director to approve purchases with Fire Apparatus Solutions, Inc. dba Johnson Equipment Company in a total amount not to exceed $60,972.50 for Fiscal Year 2025– 2026.
SECTION 4. The City Manager, or designee, is hereby authorized to execute all documents necessary to implement this Resolution.
SECTION 5. EFFECTIVE DATE - This Resolution shall become effective on July 14, 2026.
17.H.
CITY OF HEMET RESOLUTION NO. 2026-117 3
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PASSED, APPROVED AND ADOPTED this 14th day of July, 2026. ___________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:
________________________ __________________________
Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk
17.H.
CITY OF HEMET RESOLUTION NO. 2026-117 4
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State of California )
County of Riverside )
City of Hemet )
I, Rosalia A. Butler, MMC, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 14th day of July, 2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
Rosalia A. Butler, MMC, City Clerk
17.H.
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jul 14 2026
Department: Public Works
Submitted by: Noah Rau, Interim City Manager
Gregg Holyoak, Public Works Operations Manager;
☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:
Approval of an Agreement with Tri-Star Contracting II, Inc. for the Lyon Avenue Trench ReCompaction Project and Approval of Supplemental Appropriations RECOMMENDED ACTION:
It is respectfully recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2026-114 - APPROVING AN AGREEMENT FOR SUBGRADE AND ROAD REPAIR SERVICES BETWEEN THE CITY OF HEMET AND TRI-STAR CONTRACTING II, INC.
FOR THE LYON AVENUE TRENCH RE-COMPACTION PROJECT IN THE AMOUNT OF $210,294.00, PLUS A 10% CONTINGENCY OF $21,029.40, FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $231,323.40, AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE TO
EXECUTE ALL DOCUMENTS RELATED TO THE AGREEMENT AND AUTHORIZING THE
ADMINISTRATIVE SERVICES DIRECTOR TO ESTABLISH SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $100,000 FROM THE BALANCE OF FUND 254 TO ACCOUNT 254.10.4650.52400 AND AN AMOUNT OF $131,323.40 FROM THE BALANCE OF FUND 221 TO ACCOUNT 221.10.4200.52400
EXECUTIVE SUMMARY:
The proposed resolution approves a construction agreement with Tri-Star Contracting II, Inc. for the Lyon Avenue Trench Re-Compaction Project following a competitive bidding process. The project will address pavement settlement that developed along southbound Lyon Avenue south of Acacia Avenue as a result of settlement within the backfill surrounding an existing City-maintained storm drain facility.
A geotechnical investigation determined that the pavement depressions were caused by settlement of the trench backfill beneath the roadway. Due to the specialized nature of the repair and the extent of the work required, staff determined that contracting with a qualified specialty contractor was the most efficient and cost-effective solution.
17.I.
Following a formal Invitation for Bid process, Tri-Star Contracting II, Inc. submitted the lowest responsive and responsible bid in the amount of $210,294.00. Staff recommends including a 10 percent construction contingency of $21,029.40 to address unforeseen field conditions, resulting in a total project authorization of $231,323.40.
The resolution also authorizes supplemental appropriations totaling $231,323.40 from available fund balances in Fund 254 and Fund 221 to fully fund the project.
BACKGROUND/ANALYSIS:
The Public Works Department maintains more than 330 centerline miles of roadway throughout the City, along with an extensive storm drain system consisting of underground pipelines, inlets, manholes, and related infrastructure.
City staff identified a series of pavement depressions on southbound Lyon Avenue immediately south of Acacia Avenue. An investigation determined that a City-owned storm drain pipeline was located beneath the affected roadway segment. To evaluate the cause of the settlement, the City retained Inland Foundation to perform a geotechnical investigation.
The geotechnical analysis concluded that the pavement settlement resulted from consolidation of the trench backfill surrounding the storm drain installation. Left unaddressed, continued settlement could further deteriorate the roadway surface and potentially affect the long-term performance of the underground infrastructure.
Staff evaluated several repair alternatives, including completing the work with City forces. Due to the specialized construction methods and equipment required to properly stabilize the trench and restore the roadway, staff determined that utilizing a qualified contractor would provide the safest, most efficient, and most durable repair.
DISCUSSION:
The City advertised the Lyon Avenue Trench Re-Compaction Project through a competitive Invitation for Bid (IFB) on May 11, 2026. There were 352 Vendors were notified and the project was advertised with the Press Enterprise on May 14, 2026. Bids were publicly opened on June 8, 2026, and four responsive bids were received. A bid summary is included in Attachment No.3 and all bids are included in Attachment No.4. The following table summarizes the bid results.
Bidder Total Bid
Tri-Star Contracting II, Inc $210,294.00
Giles Engineering $244,568.00
Scorpion Backhoe, Inc $262,362.00
J&L Constructors, Inc $540,000.00
Following review of the submitted bids, Tri-Star Contracting II, Inc. was determined to be the lowest responsive and responsible bidder. Tri-Star Contracting II, Inc is a general engineering contractor specializing in heavy construction, including excavation, grading, demolition, trucking and concrete work. They have performed similar facility repairs for the City of Desert Hot Spring, the City of Palm Desert, and the Desert Water Agency.
17.I.
The project will include excavation of the affected roadway, stabilization and re-compaction of the underlying trench backfill, restoration of the pavement section, and all associated work necessary to restore the roadway to safe operating conditions.
A construction contingency equal to ten percent of the contract amount is recommended to provide flexibility for unforeseen subsurface conditions that are common with underground utility and trench repair projects. Use of contingency funds will require appropriate administrative approval and will only be utilized if necessary.
Completion of this project will restore the structural integrity of the roadway, protect the City's storm drain infrastructure, improve public safety, and reduce the likelihood of more extensive and costly repairs in the future.
STRATEGIC PLAN INTEGRATION:
GOAL ONE: QUALITY OF LIFE:
To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.
Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.
Objective 2: Explore and implement homelessness solutions for the City of Hemet.
Objective 3: Increase Public Safety visibility and response.
GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.
Objective 1: Operate in a financially sustainable manner.
FISCAL IMPACT:
The construction contract with Tri-Star Contracting II, Inc. is in the amount of $210,294.00. Staff recommends approval of a 10 percent contingency of $21,029.40, resulting in a total project authorization not to exceed $231,323.40.
To fully fund the project, staff recommends the following supplemental appropriations:
Fund Account Number Amount
Fund 254 254.10.4650.52400 $100,000.00
Fund 221 221.10.4200.52400 $131,323.40
Total $231,323.40
Following these appropriations, Fund 254 will retain an approximate balance of $671,000 and Fund 221 will retain an approximate balance of $1,048,676.60. The remaining balances are sufficient to support anticipated operational and capital needs.
ALTERNATIVE(S):
1. Do not authorize the award to Tri-Star Contracting II, Inc. and associated appropriations.
2. Provide an alternate direction to the Interim City Manager.
17.I.
ATTACHMENT(S):
Attachment 1 - Resolution No. 2026-114
Attachment 2 - Tri-Star Contracting - Lyon Ave Recompaction - 2026-009 Attachment 3 - Bid Comparison
Attachment 4 - Bids Recieved
Attachment 5 - Bid Responsiveness
17.I.
CITY OF HEMET RESOLUTION NO. 2026-114 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2026-114
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, APPROVING AN AGREEMENT
FOR SUBGRADE AND ROAD REPAIR SERVICES
BETWEEN THE CITY OF HEMET AND TRI-STAR
CONTRACTING II, INC. FOR THE LYON AVENUE
TRENCH RE-COMPACTION PROJECT IN THE AMOUNT
OF $210,294.00, PLUS A 10% CONTINGENCY OF
$21,029.40, FOR A TOTAL NOT-TO-EXCEED AMOUNT
OF $231,323.40, AND AUTHORIZING THE CITY
MANAGER, OR DESIGNEE TO EXECUTE ALL
DOCUMENTS RELATED TO THE AGREEMENT AND
AUTHORIZING THE ADMINISTRATIVE SERVICES
DIRECTOR TO ESTABLISH SUPPLEMENTAL
APPROPRIATION IN THE AMOUNT OF $100,000 FROM
THE BALANCE OF FUND 254 TO ACCOUNT
254.10.4650.52400 AND AN AMOUNT OF $131,323.40
FROM THE BALANCE OF FUND 221 TO ACCOUNT
221.10.4200.52400
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, the City of Hemet Public Works Department maintains over 330 centerline miles of roadway and multiple storm drain facilities including the underground infrastructure of inlets, pipes, manholes, etc.; and
WHEREAS, City staff became aware of a series of pavement depressions in the asphalt area of southbound Lyon Avenue south of Acacia Avenue; and WHEREAS, after research it was determined that a City maintained storm drain pipe ran underneath the length of the depressions; and
17.I.
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WHEREAS, Inland Foundation was brought in to perform a geotechnical survey of the area, and their findings revealed the depressions were the result of settlement of the underlying soil related to the storm drain backfill; and WHEREAS, after researching various options for repairs including performing the work in house with City staff, it was determined that an outside contractor that specializes in this extensive type of repair was the best option; and WHEREAS, the City administered a competitive Invitation for Bid (IFB) on May 11, 2026 for the work; and
WHEREAS, on June 8, 2026 the City received four bids and determined that TriStar Contracting II, Inc. was the lowest responsive and responsible bidder; and WHEREAS, staff recommends the City Council authorize supplemental appropriations totaling $231,323.40 — consisting of $100,000.00 from Fund 254 and $131,323.40 from Fund 221 — to fund the base contract amount of $210,294.00 plus a 10% contingency of $21,029.40 for the repair work; and
WHEREAS, the current fund balance of Fund 254 is $771,000.00 and the fund balance for Fund 221 is $1,180,000.00.
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 Agreement, in substantially the form presented to the City Council, with Tri-Star Contracting II, Inc. for Lyon Avenue Trench Re-Compaction Project.
17.I.
CITY OF HEMET RESOLUTION NO. 2026-114 3
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SECTION 3. Authorizes the City Manager or designee to execute all documents related to this Agreement.
SECTION 4. Authorizes the Administrative Services Director to establish a supplemental appropriation in account 254.10.4650.52400 from Fund 254 in the amount of one hundred thousand dollars ($100,000.00) and in account 221.10.4200.52400 from Fund 221 in the amount of one hundred thirty-one thousand, three hundred twenty-three dollars and forty cents ($131,323.40), for a total of two hundred thirty-one thousand, three hundred twenty-three dollars and forty cents ($231,323.40), consisting of a base contract amount of two hundred ten thousand, two hundred ninety-four dollars ($210,294.00) plus a ten percent (10%) contingency of twenty-one thousand, twentynine dollars and forty cents ($21,029.40).
SECTION 5. EFFECTIVE DATE – This Resolution shall become effective upon adoption of this resolution.
PASSED, APPROVED AND ADOPTED this 14th day of July, 2026. ___________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:
________________________ __________________________
Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk
17.I.
CITY OF HEMET RESOLUTION NO. 2026-114 4
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State of California )
County of Riverside )
City of Hemet )
I, Rosalia A. Butler, MMC, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 14th day of July, 2026, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
Rosalia A. Butler, MMC, City Clerk
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MINOR PUBLIC WORKS AGREEMENT
BY AND BETWEEN
THE CITY OF HEMET,
A CALIFORNIA MUNICIPAL CORPORATION
AND
TRI-STAR CONTRACTING II, INC.
A CALIFORNIA CORPORATION
AGREEMENT # 2026-099
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MINOR PUBLIC WORKS AGREEMENT
BETWEEN THE CITY OF HEMET AND TRI-STAR CONTRACTING II, INC.
LYON AVENUE TRENCH RE-COMPACTION PROJECT
This MINOR PUBLIC WORKS AGREEMENT (“Contract”) is made and entered into this 15th day of July, 2026 (“Effective Date”), by and between the CITY OF HEMET (“City”), a California municipal corporation and Tri-Star Contracting II, Inc., A California corporation (“Contractor”). For the purposes of this Contract, City and Contractor are sometimes hereinafter referred to as “Party” and hereinafter collectively referred to as the “Parties.”
RECITALS
A. City is a public agency organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose.
B. City desires to engage Contractor for performance of the following public work of improvement Lyon Avenue Trench Re-Compaction Project (the "Project” or the “Work").
C. Contractor represents that it is a licensed contractor pursuant to section 7000 et seq. of the Business and Professions Code in the following classification: A, which it shall maintain for the duration of the Contract.
D. Contractor further represents that it has examined and is fully familiar with all of the provisions of the Contract Documents; that it has satisfied itself as to the nature and location of all Work, the general and local conditions to be encountered in the performance of any Work, and all other matters which can in any way affect the Work or the cost thereof.
E. Contractor has submitted a proposal to City, incorporated herein by this reference, to perform all work and furnish the labor, supervision, materials and equipment, and operations necessary and required to complete the Project in strict accordance with the provisions of the Contract Documents, and at the prices stated.
F. The Parties desire to enter into this Contract for the purpose of setting forth the terms and conditions upon which the Contractor shall complete the Project.
OPERATIVE PROVISIONS
NOW, THEREFORE, for and in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration,
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the value and adequacy of which are hereby acknowledged, the Parties agree as follows:
SECTION 1. SCOPE
A. Contractor shall furnish all necessary management, supervision, labor, materials, tools, supplies, equipment, plant, services, engineering, testing and/or any other act or thing required to diligently and fully perform and complete the Project in accordance with the Contract Documents, which is generally described as follows:
Lyon Avenue Trench Re-Compaction Project
Without limiting the foregoing description, Contractor’s scope of work includes, but is not limited to, the following:
1. Submit any required samples, product data, certificates, operations and maintenance instructions, guarantees, and other submittals no later than ten (10) working days after the date City issues a Notice to Proceed and before the preconstruction meeting.
2. Submit a list of any permits and licenses the Contractor shall obtain indicating the agency granting the permit, the expected date to submit the application, and the required date for the receipt of the permit.
3. Protect all materials to be used in the Work in accordance with the specifications.
4. Protect existing facilities and personal property.
5. Attend a preconstruction conference with City to discuss schedule, access, sequence of work, and other issues.
6. If requested by City, prepare and submit a written daily activity report to City for each day on which work is performed, including weekends and holidays when worked, and submit reports to City no later than the next business day. The daily reports shall, at a minimum, include the following information: construction activities and locations, construction crew sizes of general and subcontractors, start or completion of activities, progress on construction activities (including units or portions of work completed), tests or inspections performed, deliveries of material or equipment, delays or potential delays, visitors to the site, weather conditions, construction equipment used, and personal injuries or damage to property.
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7. The Contractor shall be responsible for unloading, hoisting and otherwise handling its own materials, supplies and equipment.
8. Coordinate with City-scheduled events.
9. The Contractor is responsible for researching and complying with all local codes, agencies and jurisdictions that regulate and govern the Work.
10. Contractor shall set up, identify, coordinate, provide safe access, and obtain all inspections for its work, as required by any authorized agency or applicable code, prior to covering up work.
B. The following documents are incorporated into and made part of this Contract by this reference:
1. Insurance Requirements (Exhibit A)
2. Designation of Subcontractors Form (Exhibit B)
3. Public Works Contractor Registration Certification (Exhibit C)
4. Payment and Performance Bonds (Exhibit D)
5. Change orders - issued in accordance with Contract
Documents (Exhibit E)
6. Contractor’s Proposal/Schedule of Pay Items (Exhibit F)
7. Standard Specifications for Public Works Construction (the “Green Book”), excluding Sections 1 through 9, most recent version
8. City Standard Specifications, most recent version
C. These documents shall be referred to collectively as the "Contract Documents." The Contract Documents are intended to be
complementary, and a requirement in one document is as effective as if it appeared in all of the Contract Documents. In the event of a conflict between any of the Contract Documents, the documents shall be given effect in the following order: Change Orders (most recent first), Addenda (most recent first), Contract, Insurance Requirements, Technical Specifications, Plans, Standard Specifications, Contractor’s Proposal/Schedule of Pay Items.
D. Contractor shall comply with all requirements of the Contract Documents. Where there is a conflict between the requirements of the Contract Documents, the more stringent requirements shall govern.