Hemet City Council
October 8, 2026

MAYOR AND CITY COUNCIL:

Linda Krupa
Mayor (District 5)
Joe Males
Mayor Pro Tem (District 4)
Connie Howard-Clark
Council Member (District 1)
Jaculin "Jackie" Peterson
Council Member (District 2)
Tom Lodge
Council Member (District 3)
CITY STAFF:

Noah Rau
Interim City Manager
Steven Graham Pacifico
City Attorney
Rosalia A. Butler
City Clerk

CITY COUNCIL AGENDA

CITY OF HEMET, CALIFORNIA
Thursday, October 8, 2026
City Council Chamber
450 E. Latham Ave., Hemet, California 92543
SPECIAL MEETING AT 2:00 P.M.

Council Chamber: In-person participation is available for all members of the public.

Live Stream: This meeting will be live-streamed on the City's website at hemetca.gov/agenda.

Public Comments: Members of the Public who wish to comment on matters before the Council, in lieu of attending in person, may submit comments on or before 2:00 p.m. the day of the meeting by using the following link: Online Comment Form. Comments will be recorded in the official meeting record.

Teleconference: POTENTIAL USE OF THE BROWN ACT JUST CAUSE PROVISIONS (SB 707) – In the event a City Councilmember joins the meeting virtually pursuant to the Brown Act's just cause teleconferencing provisions (Government Code Section 54953.8.3), members of the public may utilize the number below to participate via teleconference. If all participating Councilmembers are physically present, the call-in feature will be unavailable; however, the meeting may still be viewed at the link below:
https://www.zoomgov.com/j/1659323880
Webinar ID: 165 932 3880
Passcode: 745765
Telephone: Dial (for higher quality, dial a number based on your current location):

US: +1 669 254 5252 (EN) or +1 415 449 4000 (ES)
Translation Services: Live translation is available through Wordly. To access the service, please scan the QR code or use the link provided below, then select your preferred language:
https://attend.wordly.ai/join/OZMJ-1649

Notice Regarding the Americans with Disabilities Act
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting or if you need agenda documents provided in an alternate format, please contact the City Clerk’s Office at (951) 765-2395 at least 48 hours prior to the meeting to ensure that reasonable arrangements can be made (28CFR 35.102-35.104 ADA Title II) Page

1. SPECIAL MEETING – 2:00 P.M.

2. CALL TO ORDER

3. ROLL CALL

4. PLEDGE OF ALLEGIANCE

5. PUBLIC COMMENT PERIOD
At this time, members of the public may only comment on an item appearing on the Closed Session agenda. Please adhere to the following when addressing the Council:
 Comments will be limited to 3 minutes or less.
 Comments should be directed to the Council as a whole and not directed to individual Council Members.  Please follow the adopted rules of decorum: Resolution No. 4545 and Resolution No. 2026-043.

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

6. CONSENT CALENDAR
All Consent Calendar items will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration.

6.A. Approval of a Subdivision Improvement Agreement, Improvement Security, and Final Parcel Map No. 38450, Located at the Northwest Corner of State Street and Menlo Avenue
Staff Report #26-354 - Pdf
Recommendation:

It is respectfully recommended that the City Council adopt the following resolution (Attachment No. 1):

RESOLUTION NO. 2026-166 - A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HEMET, CALIFORNIA, APPROVING
FINAL PARCEL MAP 38450, LOCATED AT THE NORTHWEST

CORNER OF STATE STREET AND MENLO AVENUE
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7. DISCUSSION - ACTION ITEMS

7.A. Discussion and Adoption of a Resolution Providing for Separate Accounting of Measure Q Revenue, if Approved by Voters, Preserving the City’s Existing Measure U Public Safety Commitments, and Reserving Measure Q Funding Decisions to the City Council Through the Annual Public Budget Process
Staff Report #26-363 - Pdf
Recommendation:

It is respectfully recommended that the City Council:

1. Receive this report and discuss the proposed Measure Q policy framework; and
67 - 108

2. Adopt the following resolution (Attachment No. 1):

RESOLUTION NO. 2026-179 – A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF HEMET, CALIFORNIA, PROVIDING FOR

SEPARATE ACCOUNTING AND ANNUAL BUDGET

CONSIDERATION OF MEASURE Q REVENUE IF APPROVED BY
VOTERS AND REAFFIRMING THE CITY’S EXISTING MEASURE U

PUBLIC SAFETY COMMITMENTS

7.B. Zoning Ordinance Amendment (ZOA) 26-005, Industrial Development Standards – Introduction and first reading of an Ordinance of the City Council of the City of Hemet, California, Repealing and Restating Article XXX (Manufacturing Zones) of Chapter 90 (Zoning) of the Hemet Municipal Code
Staff Report #26-361 - Pdf
Recommendation:

It is respectfully recommended that the City Council:

1. Open the public hearing; receive the staff report and the recommendation of the Planning Commission; take public testimony; and close the public hearing;

2. Find, on the basis of the analysis in this staff report and the entire record of proceedings, that adoption of the proposed ordinance (a) is not a "project" within the meaning of Public Resources Code section 21065 and State CEQA Guidelines section 15378, and is therefore not subject to the California Environmental Quality Act (CEQA) under State CEQA Guidelines section 15060(c)(2) and (c)(3); and, independently and in the alternative, (b) is exempt from CEQA under the common sense exemption of State CEQA Guidelines section 15061(b)(3); and (c) is exempt under State CEQA Guidelines sections 15307 and 15308 (Classes 7 and 8), and that none of the exceptions in State CEQA Guidelines section 15300.2 applies;

3. Introduce, read by title only, and waive further reading of the following ordinance (Attachment No. 1):

ORDINANCE NO. 2084 - AN ORDINANCE OF THE CITY OF HEMET,

CALIFORNIA, REPEALING AND RESTATING ARTICLE XXX
(MANUFACTURING ZONES) OF CHAPTER 90 (ZONING) OF THE
HEMET MUNICIPAL CODE, INCLUDING A NEW DIVISION 2
(LOGISTICS, E-COMMERCE, AND WAREHOUSE USES), TO

ESTABLISH OBJECTIVE DEVELOPMENT, SITING, TRUCK

ACCESS, AND OPERATIONAL STANDARDS, A TIERED APPROVAL

PROCESS, AND A COMMUNITY BENEFIT AND INCENTIVE
FRAMEWORK FOR LOGISTICS USES IN THE B-P, M-1, AND M-2
ZONES; AMENDING THE MANUFACTURING ZONES LAND USE
MATRIX (SECTION 90-1043), THE DEFINITIONS OF SECTION 90-4, AND RELATED PROVISIONS OF CHAPTER 90; AUTHORIZING THE

RENUMBERING OF ARTICLE XXXI (SENIOR HOUSING
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DESIGNATION) OF CHAPTER 90; IMPLEMENTING AND
SUPPLEMENTING GOVERNMENT CODE SECTION 65098 ET SEQ.
(AB 98, STATS. 2024, CH. 931, AS AMENDED BY SB 415, STATS. 2025, CH. 316); AND FINDING THAT THE ORDINANCE IS NOT A

PROJECT UNDER, AND IS OTHERWISE EXEMPT FROM, THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT

4. Direct the City Clerk to schedule the ordinance for second reading and adoption at the regular City Council meeting of October 13, 2026, and, upon adoption, direct staff to file a Notice of Exemption with the Riverside County Clerk within five working days.

8. ADJOURNMENT

AFFIDAVIT OF POSTING
I, Rosalia A. Butler, City Clerk for the City of Hemet, declare under penalty of perjury that the foregoing agenda was posted at City Hall, located at 445 E. Florida Ave.; the Council Chamber, located at 450 E. Latham Ave., Hemet, CA; and the City Website.

Date & Time: October 7, 2026, at 1:55 p.m.

Meeting Schedule: The City Council of the City of Hemet regularly meets on the second and fourth Tuesdays of each month at 6:00 p.m., unless otherwise noted. Closed and Special Sessions will be duly noticed as needed.

Council Agendas: Agendas for Regular Meetings are available for public review on the City’s website at hemetca.gov and in the City Clerk’s Office, 445 E. Florida Ave., typically by 4:00 p.m. on the Thursday prior to the meeting, but no later than 72 hours prior to the meeting. Agendas for Closed and Special Sessions are made available at least 72 hours prior to the meeting when possible, but no later than 24 hours prior to the meeting.

Livestream: Regular City Council Meetings are available for viewing during the meeting at hemetca.gov.

Use of Equipment: Please contact the City Clerk’s Office if requesting to use the chamber equipment as part of a scheduled presentation 24 hours prior to the meeting at (951) 765-2395.

Disclosure of Campaign
Contributions (Levine
Act – Government Code
Section 84308):

Pursuant to Government Code Section 84308, members of the City Council are disqualified and not able to participate in any agenda item involving contracts (other than competitively bid contracts, labor contracts, or personal employment contracts with City employees), franchises, discretionary land use permits, and other entitlements if the Councilmember received more than $500 in campaign contributions from the applicant or contractor, an agent of the applicant or contractor, or any financially interested participant who actively supports or opposes the City’s decision on the agenda item in the previous 12 months. Government Code Section 84308 also requires disclosure of certain campaign contributions made to or received by a Councilmember in connection with the subject agenda item. Disclosures must include the amount of the campaign contribution and identify the recipient Councilmember and may be made either in writing to the City Clerk prior to the subject hearing or by verbal disclosure at the time of the hearing.

City of Hemet
City Council Meeting

STAFF REPORT
Meeting: Special City Council Meeting - Oct 08 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:

Approval of a Subdivision Improvement Agreement, Improvement Security, and Final Parcel Map No. 38450, Located at the Northwest Corner of State Street and Menlo Avenue RECOMMENDED ACTION:

It is respectfully recommended that the City Council adopt the following resolution (Attachment No. 1):

RESOLUTION NO. 2026-166 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HEMET, CALIFORNIA, APPROVING FINAL PARCEL MAP NO. 38450, A SUBDIVISION

IMPROVEMENT AGREEMENT, AND ASSOCIATED IMPROVEMENT SECURITY FOR PROPERTY

LOCATED AT THE NORTHWEST CORNER OF STATE STREET AND MENLO AVENUE EXECUTIVE SUMMARY:

Staff recommends approval of Final Parcel Map No. 38450, the associated Subdivision Improvement Agreement (SIA), and the required improvement security for the property located at the northwest corner of State Street and Menlo Avenue. The Final Parcel Map has been reviewed by the City’s contracted surveyor and City Engineer and has been determined to be technically correct and in substantial conformance with the approved Tentative Parcel Map, as modified. Because certain required public improvements have not yet been completed, the applicant will enter into an SIA with the City and provide the required security guaranteeing completion of those improvements. Upon City Council approval and execution of the required documents, the Final Parcel Map and SIA will be submitted for recordation.

BACKGROUND/ANALYSIS:

Tentative Parcel Map No. 38450 was initially approved by the Planning Commission on February 26, 2024, in conjunction with Site Development Review No. 23-008 and Variance No. 23-002 for the Palm Communities project, a 157-unit affordable housing development on approximately 7.84 gross acres.

6.A.

Tentative Parcel Map No. 38450 proposed the subdivision of six existing parcels (APNs 439-060-009, -010, -011, -014, -015, and 439-281-035) into two numbered parcels and three lettered lots. Lot C is intended for future dedication to the County of Riverside to address an existing building encroachment.

On April 21, 2026, the Planning Commission approved Site Development Review Modification No. 25-002, modifying the previously approved project to add two buildings, 48 residential units, a new community building, a manager's unit, two barbecue gathering areas, and 74 parking spaces. The modification also removed the previously approved flood control basins and replaced them with underground water retention basins.

In conjunction with the Site Development Review modification, the Planning Commission also approved a modification to Tentative Parcel Map No. 38450. The modification relocated parcel lines to accommodate the revised development and the removal of the previously approved flood control basins.

The applicant submitted a complete application for Final Parcel Map No. 38450 on July 7, 2026.

Since that time, the Final Parcel Map has proceeded through the City's review process and is now presented for City Council approval and subsequent recordation.

DISCUSSION:

The City’s contracted surveyor has reviewed Final Parcel Map No. 38450 (Attachment No. 2) and determined that the map is technically correct.

The City Engineer has reviewed Final Parcel Map No. 38450 and determined that it is in substantial conformance with the approved Tentative Parcel Map, as modified on April 21, 2026, and that the applicable requirements of the Subdivision Map Act and City of Hemet Ordinance No. 314, as amended, have been satisfied.

Additionally, the City Engineer has confirmed that the applicant has satisfied all conditions required prior to approval and recordation of the Final Parcel Map.

Because certain required public improvements have not yet been completed, the applicant will enter into a Subdivision Improvement Agreement (SIA) with the City (Attachment No. 3). Under the SIA, the applicant is responsible for constructing the required public improvements in accordance with the approved plans and applicable City requirements.

The applicant will provide improvement security for Faithful Performance and Labor and Materials, each in an amount equal to 100 percent of the City Engineer’s approved cost estimate. A cash deposit will also be provided as security for subdivision monumentation. The required securities provide financial assurance to the City that the public improvements and subdivision monumentation will be completed in accordance with the SIA.

Upon execution, the SIA will be recorded concurrently with Final Parcel Map No. 38450.

PREVIOUS COUNCIL ACTION:

There are no previous City Council actions related to this item.

6.A.

STRATEGIC PLAN INTEGRATION:

GOAL TWO: ECONOMIC OPPORTUNITY
To ensure that Hemet is a hub, with access to quality jobs, shopping options, and a varied and sustained tax base.

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

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

FISCAL IMPACT:

There is no anticipated impact to the General Fund. All costs associated with the required public improvements are the responsibility of the applicant.

ALTERNATIVE(S):

1. Do not approve Final Parcel Map 38450.

2. Provide alternative direction to the Interim City Manager.

ATTACHMENT(S):

Attachment No. 1- Reso. No. 2026-166
Attachment No. 2- Final Parcel Map 38450
Attachment No. 3- Subdivision Improvement Agreement

6.A.

CITY OF HEMET RESOLUTION NO. 2026-166 1
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CITY OF HEMET

HEMET, CALIFORNIA
RESOLUTION NO. 2026-166

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA, APPROVING FINAL PARCEL
MAP NO. 38450, A SUBDIVISION IMPROVEMENT

AGREEMENT, AND ASSOCIATED IMPROVEMENT

SECURITY FOR PROPERTY LOCATED AT THE

NORTHWEST CORNER OF STATE STREET AND MENLO
AVENUE
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:

WHEREAS, the property subject to Final Parcel Map No. 38450 is located at the northwest corner of State Street and Menlo Avenue; and
WHEREAS, Tentative Parcel Map No. 38450 was initially approved by the Planning Commission on February 26, 2024, in conjunction with Site Development Review No. 23-008 and Variance No. 23-002 for the Palm Communities project, a 157- unit affordable housing development on approximately 7.84 gross acres; and WHEREAS, Tentative Parcel Map No. 38450 proposed the subdivision of six existing parcels (APNs 439-060-009, -010, -011, -014, -015, and 439-281-035) into two numbered parcels and three lettered lots, with Lot C intended for future dedication to the County of Riverside to address an existing building encroachment; and WHEREAS, on April 21, 2026, the Planning Commission approved Site Development Review Modification No. 25-002, modifying the previously approved Palm Communities project to include additional residential units, buildings, parking, and

6.A.

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related site improvements, including replacement of the previously approved flood control basins with underground water retention basins; and WHEREAS, in conjunction with Site Development Review Modification No. 25- 002, the Planning Commission approved a modification to Tentative Parcel Map No. 38450 to relocate parcel lines to accommodate the revised development; and WHEREAS, the applicant submitted a complete application for Final Parcel Map No. 38450 on July 7, 2026, and the Final Parcel Map has subsequently proceeded through the City’s review process; and
WHEREAS, the City’s contracted surveyor has reviewed Final Parcel Map No. 38450 and determined that the map is technically correct; and WHEREAS, the City Engineer has reviewed Final Parcel Map No. 38450 and determined that it is in substantial conformance with Tentative Parcel Map No. 38450, as modified on April 21, 2026, and that the applicable requirements of the Subdivision Map Act and City of Hemet Ordinance No. 314, as amended, have been satisfied; and WHEREAS, certain public improvements required in connection with Final Parcel Map No. 38450 have not yet been completed, and the applicant has agreed to enter into a Subdivision Improvement Agreement with the City for the construction and completion of those improvements; and
WHEREAS, pursuant to the Subdivision Improvement Agreement, the applicant is required to provide improvement security guaranteeing the performance and completion of the required improvements and other obligations specified in the Agreement; and

6.A.

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WHEREAS, City staff recommends approval of Final Parcel Map No. 38450, the associated Subdivision Improvement Agreement, and the required improvement security.

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 Final Parcel Map No. 38450 for property located at the northwest corner of State Street and Menlo Avenue.

SECTION 3. The City Council hereby approves the Subdivision Improvement Agreement for Final Parcel Map No. 38450 and authorizes the City Manager to execute the Agreement on behalf of the City, subject to approval as to form by the City Attorney.

SECTION 4. The City Council hereby accepts the improvement security required pursuant to the Subdivision Improvement Agreement, subject to review and approval by the City Engineer and City Attorney as to form and sufficiency.

SECTION 5. The City Council authorizes the City Manager, City Engineer, and City Clerk, or their respective designees, to execute such documents and take such actions as may be necessary to implement this Resolution and facilitate the recordation of Final Parcel Map No. 38450 and the Subdivision Improvement Agreement.

SECTION 6. This Resolution shall become effective immediately upon its adoption.

6.A.

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PASSED, APPROVED AND ADOPTED this 8th day of October 2026. ___________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:
________________________ __________________________
Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk

6.A.

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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 8th day of October 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

6.A.

&
8/26/26

6.A.

& Page 10 of 61

6.A.

CL MENLO AVENUE

4.673 AC. NET
PARCEL 1

4.689 AC. GROSS

2.949 AC. NET
PARCEL 2

3.136 AC. GROSS

CL STATE STREET

CL ALESSANDRO STREET
LOT "A"
LOT "B"
LOT "C"

0.016 AC.

0.187 AC.

0.011 AC.
& Page 11 of 61

6.A.

FBT Comments
Page | 1

RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:

CITY OF HEMET

CITY CLERK
[CITY HALL ADDRESS]
______________________________________________________________________ Space above this line for Recorder’s Use Exempt from Fees Per Gov. Code § 6103

SUBDIVISION IMPROVEMENT AGREEMENT
Parcel Map No. 38450
THIS SUBDIVISION IMPROVEMENT AGREEMENT (“Agreement”) is made and entered into this [***] day of [***], 2026 (“Effective Date”) by and between the City of Hemet, a Municipal Corporation, hereinafter referred to as “City,” and Palm Communities a California corporation, hereinafter referred to as “Subdivider.” For the purposes of this Agreement the City and Subdivider are sometimes hereinafter referred to as “Party” and hereinafter referred to as the “Parties.”

RECITALS
A. Subdivider has presented to the City a parcel map or final map of a proposed subdivision of land located within the corporate limits of the City that has been prepared in accordance with the Subdivision Map Act of the State of California, the City of Hemet Municipal Code, and the tentative map of the Subdivision previously approved by the City.

B. The proposed subdivision of land is commonly known and described as Parcel Map No. 38450 and is hereinafter referred to as the "Subdivision” or the "Project." C. Subdivider has requested approval of a parcel map or final map prior to the construction and completion of the public improvements, which may include, but is not limited to streets, highways, public ways, sidewalks, curbs, gutters, storm drainage facilities, public utility facilities, landscaping, design standards which are part of the provisions for lot grading and drainage in or appurtenant to the Subdivision, and other public improvements that are required by the Subdivision Map Act, City Municipal Code, the tentative map (and approvals given in connection therewith), and final grading plan, if any, approved by the City. The foregoing improvements, for which the corresponding improvement plans are listed in Table 1 below, are hereinafter referred to as "the Required Improvements." D. Table 1: Plans for Required Improvements (Approved plans shall be incorporated herein by this reference)
Preliminary Plan to Accompany Subdivision Improvement Agreement (SIA) Plan No. 38450 Improvement Plans for Hemet Subdivision
NOW, THEREFORE, the Parties agree as follows:

6.A.

FBT Comments
Page | 2

1. Recitals. The foregoing recitals are true and correct and are incorporated herein by this reference.

2. Performance of Work. Subdivider agrees to furnish, construct and install at Subdivider's own expense the Required Improvements as shown on the plans and specifications of the Subdivision, a copy of which is on file in the office of the Director of Development Services, and is incorporated herein by this reference, along with any reasonable changes or modifications as may be required by the City Engineer due to errors, omissions, or changes in conditions, provided that such changes or modifications are consistent with the approved plans and specifications, applicable law, and the City’s improvement standards and standard specifications, and the City Engineer’s determination of what is reasonable shall be final and conclusive. The plans and specifications of the Required Improvements may be modified by the Subdivider as the development progresses, subject to the prior written approval of the City Engineer. The Subdivider also agrees to pay all City engineering fees and other City fees including overhead fees incurred during the performance of this Agreement, all of which are covered by the attached bonds. The total estimated cost of the Required Improvements, as determined by the City Engineer, is $526,000.00. Engineer’s estimate is attached hereto and incorporated as Exhibit “A-1”.

3. Work Shall Be To The Satisfaction of City Engineer. All of the work on the Required Improvements is to be done at the locations, with the materials, in the manner, and at the grades, as shown upon the approved plans and specifications and the City's improvement standards and standard specifications, to the reasonable satisfaction of the City Engineer, and the City Engineer’s determination of what constitutes reasonable satisfaction shall be final and conclusive. Subdivider shall protect, maintain and repair all work installed by Subdivider prior to acceptance of the Required Improvements, including but not limited to signing, striping, activation of all street lighting, traffic signals, and irrigation controllers.

Subdivider shall pay all utility costs associated with the Required Improvements until (i) the City agrees to take over payment of these costs OR (ii) one year has elapsed after the City accepts the Required Improvements, whichever occurs first. Subdivider shall maintain all landscaping within existing or future public right-of-ways and property (i.e., landscaping intended to be publicly maintained at a future date) until (i) the City agrees to take over maintenance of the landscaping OR (ii) three years has elapsed after the City accepts the Required Improvements, whichever occurs first. Subdivider shall maintain all landscaping within existing or future public right-of-ways and property (i.e., landscaping intended to be publicly maintained at a future date) until (i) the City agrees to take over maintenance of the landscaping OR (ii) three years has elapsed after the City accepts the Required Improvements, whichever occurs first.

4. Injury to Public Improvements, Public Property or Public Utilities Facilities. Subdivider shall replace or repair, or have replaced or repaired, all public improvements, public utility facilities, and surveying or subdivision monuments which are destroyed or damaged in the performance of any work under this Agreement. Subdivider shall bear the entire cost of replacement or repairs of any and all public or private utility property damaged or destroyed in the performance of any work done under this Agreement by Subdivider or its

6.A.

FBT Comments
Page | 3
contractors, subcontractors, agents, or any person acting on Subdivider’s behalf, whether such property is owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by the City or any public or private utility corporation or by any combination of such owners. Any repair or replacement shall be to the satisfaction of the City Engineer.

5. Inspection. Subdivider shall at all times maintain proper facilities and safe access for inspection of the Required Improvements and other public improvements by the City. Upon completion of the work, the Subdivider may make a written request a final inspection and acceptance of the Required Improvements by the City Engineer. Such request shall be made at least forty-five (45) days’ prior to the requested acceptance date and shall be accompanied by: (i) as-builts of the Required Improvements certified by the Subdivider’s professional engineer and (ii) written acceptance of those Required Improvements for other public agencies. The City Engineer shall then inspect the Required Improvements and if the City Engineer determines that the work has been completed in accordance with this Agreement, then the City Engineer shall submit the request for acceptance to the City Council. No Required Improvements shall be submitted to the City Council for final acceptance unless all aspects of the work have been inspected and determined to have been completed in accordance with the City’s improvement standards and standard specifications, including but not limited to providing the Required Improvements free and clear from liens. Subdivider shall bear all costs of plan check, inspection, certification and all City overhead costs. If the City Council accepts the Required Improvements, such acceptance shall be effective the date approved by the City Council or such other date as the City Council may direct.

6. Subdivider’s Obligation to Warn Public during Construction. Until final acceptance of the Required Improvements, Subdivider shall give good and adequate warning to the public of each and every dangerous condition existing in the Required Improvements area, and shall take reasonable actions to protect the public from such dangerous condition. In addition, any claims received by the City from third parties for damage from construction of the Required Improvements or improvements shall be tendered to Subdivider for addressing indemnification pursuant to Section 14, and potential payment at the City's request should the City determine such damage is the result of Subdivider or Subdivider contractor's work.

7. Superintendence by Subdivider. Subdivider shall require each contractor and subcontractor to have a competent foreman on the job at all times when that contractor or subcontractor, or any employee or agent thereof, is performing work on the Required Improvements. In addition, Subdivider shall maintain an office with a telephone and Subdivider or a person authorized to make decisions and to act for Subdivider in Subdivider's absence shall be available on the job site within three (3) hours of being called at such office by the City during the hours of 8:00 A.M. through 5:00 P.M., Monday through Friday, or any other day or time when work is being performed on the Required Improvements.

8. Work, Time for Commencement and Performance. Work on the Required Improvements shall be completed within twenty-four (24) months of execution of this Agreement;

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FBT Comments
Page | 4
provided, however, the Required Improvements shall not be deemed to be completed until accepted in writing by the City.

9. Time is of the Essence and Request for Extension.
(a) Time is of the essence in this Agreement. The date for completion of the Required Improvements may not be extended, except as provided in this paragraph. The City Engineer may extend the date for a maximum of three hundred and sixty-five (365) days due to delays in the work actually caused by inclement weather, riots, strikes, lockouts, fires, earthquakes, floods and conditions resulting therefrom, or for other reason beyond the control of the Subdivider. Extension of the date for any other cause or beyond three hundred and sixty-five (365) days shall be made only by the City Council. Extensions shall be granted only upon a showing of good cause by the Subdivider. The City Council or City Engineer, respectively specified in this paragraph shall be the sole and final judge as to whether good cause has been shown to grant the Subdivider to an extension.
(b) Requests for extension of the completion date shall be in writing and delivered to the City thirty (30) days prior to the expiration of the date specified in Section 8 in the manner hereinafter specified for service of notices. An extension of time, if any, shall be granted only in writing, and an oral extension shall not be valid or binding on the City.
(c) In the event the City extends the time of completion of the Required Improvements, such extension may be granted without notice by the City to the Subdivider's surety and shall in no way release any guarantee or security given by the Subdivider pursuant to this Agreement, or relieve or release those providing an improvement security pursuant to this Agreement. The surety or sureties, if any, in executing the securities shall be deemed to have expressly agreed to any such extension of time. (d) In granting any extension of time, the City may require new or amended improvement security in amounts increased to reflect increases in the costs of constructing the Required Improvements or impose other conditions to protect its interests and ensure the timely completion of the Required Improvements.

10. Utility Undergrounding and Relocation Costs. Subdivider shall assume all costs for utility and cable television undergrounding and/or relocation which is not the responsibility of the cable television, gas, electric, telephone, or other utility company under the terms of the franchises with the City or otherwise imposed upon the utility companies by law.

11. Improvement Security. Concurrently with the execution of this Agreement, the Subdivider shall furnish the City with:
(a) Faithful Performance. Subdivider shall provide faithful performance security as set forth in the City Municipal Code to secure faithful performance of this Agreement (the "Performance Security"). This Performance Security shall be in the amount of one

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hundred percent (100%) of the total estimated cost of the Required Improvements, as determined by the City Engineer, which total cost is in the amount of $526,000.00. (b) Payment Security. Subdivider shall also provide payment security as set forth in the City Municipal Code to secure payment to the contractor, subcontractors and to persons renting equipment or furnishing labor or materials to them for the work (the "Payment Security"). This Payment Security shall be in the amount of one hundred percent (100%) of the total estimated cost of the Required Improvements, as determined by the City Engineer, which total cost is in the amount of $526,000.00 and shall secure the obligations set forth in Section 8000 et seq. of the Civil Code of the State of California. (c) Guarantee and Warranty Security. Subdivider shall also file with this Agreement a guarantee and warranty security in the amount of one hundred percent (100%) of the total estimated cost of the Required Improvements (the "Warranty Security"), as determined by the City Engineer, which total cost is in the amount $526,000.00 to guarantee and warrant the Required Improvements for a period of one (1) year following their completion and acceptance against any defective work or labor done, or defective materials furnished. This Warranty Security shall also secure Subdivider’s obligation to pay all City engineering fees, overhead fees, and City fees incurred during the warranty period.
(d) Monument Security. Subdivider shall also file with this Agreement a "monument security" in the amount of one hundred percent (100%) of the total estimated cost of the installation of survey monuments (the "Monument Security") in the Subdivision, as determined by the City Engineer, which total cost is in the amount of $7,500.00, to guarantee and secure the placement of such monuments.
(e) Bonds. Any bonds submitted as security pursuant to this section shall be furnished by companies who are authorized and licensed by the Insurance Commissioner of the State of California as "admitted surety insurers," to act as surety upon bonds and undertakings. The company shall maintain in the state of California at least one office for the conduct of its business. Bonds must be approved by City. The bonds shall be furnished on the forms enclosed following this Agreement and shall be satisfactory to the City. All required securities shall be in a form approved by the City Attorney. The surety (or sureties) shall furnish reports as to its financial conditions from time to time as requested by the City. The premiums for said bonds shall be paid by Subdivider. (f) Changes to Agreement of Plans. No change, alteration, or addition to the terms of this Agreement or the plans and specifications incorporated herein shall in any manner affect the obligation of the sureties, except as otherwise provided by the Subdivision Map Act.
(g) Irrevocable. The securities shall be irrevocable, shall not be limited as to time and shall provide that they may be released, in whole or part, only upon the written approval of the City Engineer and as provided in Section 12. All securities provided pursuant to this Agreement shall expressly obligate the surety for any extension of time authorized

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by the City for Subdivider's completion of the Required Improvements, whether or not the surety is given notice of such an extension by the City. (h) Attorney-In-Fact. The Attorney-in-Fact (resident agent) who executes the securities on behalf of the surety company must attach a copy of his/her Power of Attorney as evidence of his/her authority. A notary shall acknowledge the power as of the date of the execution of the surety bond that it covers.

12. Release of Security.
(a) Guarantee and Warranty Security. Any unused portion of the Warranty Security may be released one (1) year after acceptance of the Required Improvements by the City.

The amount to be released shall first be reduced by the amount deemed necessary by the City to correct any defects in the Required Improvements that are known or believed by the City to exist at the end of the guarantee and warranty period. Any unreleased portion of the Warranty Security shall remain in full force and effect unless and until the City notifies Subdivider in writing that the necessary repairs have been made to the satisfaction of the City Engineer and that the warranty period has been successfully completed.
(b) Payment Security. The Payment Security may be released thirty- five (35) days after passage of the time within which claims of lien are required to be recorded pursuant to California Civil Code Section 8000 et. seq., but in no event shall such security be released prior to one hundred and twenty (120) days after acceptance of the Required Improvements by the City. The amount to be released shall first be reduced by the total of all claims on which an action has been filed and notice thereof given in writing to the City. City expressly may require the surety not to release the amount of the Payment Security deemed necessary by City to assure payment of reasonable expenses and fees, including reasonable attorney's fees.
(c) Faithful Performance Security.
i. The Performance Security shall be released upon final completion and acceptance of the Required Improvements by the City and in accordance with Government Code Section 66499.7. Partial release of the Performance Security shall be approved only as required by, and subject to the conditions and limitations set forth in Government Code Section 66499.7.
ii. If the City approves the partial release of the Performance Security, the City may accept replacement security at the required reduced level as a substitute for the original security, but the release of the original security shall not be effective until the City Engineer approves the form and amount of the replacement security. If the partial release is effected through a reduction in the amount of the existing security, the Subdivider shall provide to the City written acknowledgement by the issuer of the

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Performance Security that the existing Performance Security remains in full force and effect at the reduced level.
iii. A reduction in Performance Security under this section is not and shall not be deemed to be an acceptance by the City of the completed improvements, and the risk of loss or damage to the improvements and the obligation to maintain the improvements shall remain the sole responsibility of the Subdivider until all of the Required Improvements have been accepted in writing by the City and all other required improvements have been fully completed in accordance with the plans and specifications for the Required Improvements.
(d) Monument Security. The Monument Security may be released upon acceptance of the required monument installation by the City Engineer.

13. Inspection and Other Fees. The Subdivider shall pay to the City all fees imposed in connection with the design, construction and inspection of the Required Improvements including City overhead costs. These fees must be paid in full prior to the City's acceptance of the Required Improvements and are covered under the bonds of this Agreement. The fees referred to above are not necessarily the only City fees, charges or other costs that have been, or will be, imposed on the Subdivision and its development, and this Agreement shall in no way exonerate or relieve the Subdivider from paying such other applicable fees, charges, and/or costs.

14. Defense, Indemnification and Hold Harmless.
(a) The Subdivider shall defend, indemnify, and hold harmless the City, its officers, employees, agents, and elective and appointive boards from any and all claims, losses, damages, including property damage, personal injury, including death, costs, including attorney fees, and liability of any kind or nature, including without limitation, liabilities and/or penalties arising out of the Prevailing Wage laws, directly or indirectly arising out of or in any way connected with performance under this Agreement and/or the construction of the Required Improvements by the Subdivider, contractor or any subcontractor, or of any person directly or indirectly employed by, or acting as agent for the Subdivider, contractor or any subcontractor, except those matters arising from the sole active negligence or willful misconduct of the City, as determined by a court of competent jurisdiction unless and until such judicial determination is made, or as otherwise agreed by the Parties, Subdivider shall remain obligated to defend, indemnify, and hold harmless the City, its officers, employees, agents, and elective and appointed boards pursuant to this Agreement.
(b) This defense, indemnification and hold harmless provision shall extend to claims, losses, damage, injury, costs, including attorney fees, and liability for injuries occurring after completion of the construction of the Required Improvements as well as during construction, and shall apply regardless of whether or not the City has prepared, supplied or approved the plans and/or specifications for the Required Improvements or

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has inspected or accepted the same. Acceptance of insurance required under this Agreement shall not relieve Subdivider from liability under this section. (c) The Parties intend that this section shall be broadly construed to effectuate its purpose.

The provisions of this section shall survive termination or suspension of this Agreement.

15. Environmental Warranty.
(a) Prior to the acceptance of any dedications or Required Improvements by City, Subdivider shall certify and warrant that: neither the property to be dedicated nor Subdivider are in violation of any environmental law and neither the property to be dedicated nor the Subdivider are subject to any existing, pending, or threatened investigation by any federal, state or local governmental authority under or in connection with any environmental law. Neither Subdivider nor any third party will use, generate, manufacture, produce, or release, on, under, or about the property to be dedicated, any hazardous substance, except in compliance with all applicable environmental laws. Subdivider has not caused or permitted the release of, and has no knowledge of the release or presence of, any hazardous substance on the property to be dedicated or the migration of any hazardous substance from or to any other property adjacent to, or in the vicinity of, the property to be dedicated. Subdivider's prior and present use of the property to be dedicated has not resulted in the release of any hazardous substance on the property to be dedicated. Subdivider shall give prompt written notice to City at the address set forth herein of:
i. Any proceeding or investigation by any federal, state or local governmental authority with respect to the presence of any hazardous substance on the property to be dedicated or the migration thereof from or to any other property adjacent to, or in the vicinity of, the property to be dedicated;
ii. Any claims made or threatened by any third party against City or the property to be dedicated relating to any loss or injury resulting from any hazardous substance; and
iii. Subdivider's discovery of any occurrence or condition on any property adjoining or in the vicinity of the property to be dedicated that could cause the property to be dedicated or any part thereof to be subject to any restrictions on its ownership, occupancy, use for the purpose for which it is intended, transferability, or suit under any environmental law. (b) As used in this Agreement, the term "hazardous substance" includes any hazardous or toxic substance or material or waste, including but not limited to all types of gasoline, oil, and other petroleum hydrocarbons, asbestos, radon, polychlorinated biphenols (PCBs), or any other chemical, material, controlled substance, object, condition, waste, living organism or any combination thereof which is or may be hazardous to human

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health or safety or to the environment due to its radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity, carcinogenicity, mutagenicity, phytotoxicity, infectiousness or other harmful properties of effects, which is now, or in the future becomes, listed, defined or regulated in any manner by any federal, state, or local City based directly or indirectly upon such properties.

16. Subdivider's Insurance.
(a) Subdivider Shall Maintain Insurance. Subdivider shall not commence any work before obtaining, and shall maintain in force at all times during the duration and performance of this Agreement, the policies of insurance specified in this section. Such insurance must have the approval of the City as to limit, form, and amount, and shall be placed with insurers with an AM. Best rating of no less than A:VII. (b) Subdivider to Provide Evidence of Insurance. Prior to the execution of this Agreement and prior to the commencement of any work, the Subdivider or its insurance broker shall deliver the required proof of insurance compliance, consisting of Insurance Services Office (ISO) endorsement forms or their equivalent and the ACORD form 25- S certificate of insurance (or its equivalent), evidencing all required coverage to City.

City may designate an insurance certificate processor ("Processor") to accept and process Subdivider's proof of insurance. Subdivider shall deliver copies of the actual insurance policies, renewals, or replacements directly to City or Processor upon their request. Subdivider shall not allow any contractor or subcontractor to commence work until the same insurance is first obtained by such contractor or subcontractor.

Certificates shall be signed by a person authorized by the insurer, or insurers, to bind coverage on their behalf. As an alternative to providing the City with approved forms of certificates of insurance and endorsements, the Subdivider may provide complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by this section. At any time, at the written request of the City, Subdivider agrees to furnish one or more copies of each required policy including declarations pages, conditions, provisions, endorsements, and exclusions. Such copies shall be certified by an authorized representative of each insurer. (c) No Suspension of Insurance. The Subdivider shall serve the City notice, in writing by certified mail, within two (2) days of any notices received from any insurance carriers providing insurance coverage under this Agreement that concern the suspension, voidance, cancellation, termination, reduction in coverage or limits, non-renewal, or material changes of coverage proposed or otherwise.
(d) Deductibles. Any deductibles, or self-insured retentions, exceeding five thousand ($5,000) dollars must be declared to, and approved by, the City. Upon request by the City, Subdivider shall demonstrate financial capability for payment of such deductibles or self-insured retentions.
(e) Coverages Shall Not Limit Obligations. The requirement as to types, limits, and the City's approval of insurance coverage to be maintained by Subdivider are not intended

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to, and shall not in any manner, limit or qualify the liabilities and obligations assumed by Subdivider under the Agreement.
(f) Required Limits. Subdivider and its contractors and subcontractors shall, at their expense, maintain in effect at all times during the term of this Agreement, not less than the following coverage and limits of insurance, which shall be maintained with insurers and under forms of policy satisfactory to the City. The maintenance of Subdivider and its contractors and subcontractors of the following coverage and limit of insurance is a material element of the Agreement. The failure of Subdivider or of any of its contractors or subcontractors to maintain or renew coverage or to provide evidence of renewal may be treated by the City as a material breach of this Agreement. i. Workers' Compensation Insurance. Subdivider shall maintain, during the term of this Agreement, Workers' Compensation insurance for all of Subdivider's employees as required by Labor Code section 3700 of the State of California and Employer's Liability Act, including Longshoremen's and Harbor Workers' Act ("Acts"), if applicable. Employer's Liability limits shall not be less than one million ($1,000,000) dollars per occurrence. The Subdivider shall execute a certificate in compliance with Labor Code section 1861, on the form attached to this Agreement. The insurershall agree to waive all rights of subrogation against the City, its officers, officials, and employees for losses arising from work falling within the terms of this Agreement. Subdivider shall indemnify and hold harmlessthe City for any damage resulting to it, including attorney fees, from failure of either Subdivider or any contractor or subcontractor to take out and maintain such insurance.
ii. Commercial General Liability Insurance. Subdivider shall maintain during the term of this Agreement such commercial general liability insurance as shall insure the City, its elective and appointive boards and commissions, officers, agents and employees, Subdivider and any contractor or subcontractor performing work covered by this Agreement. The insurance shall include, but not be limited to, protection against claims arising from death, bodily or personal injury, or damage to property resulting from actions, failures to act, or operations of Subdivider, any contractor's or subcontractor's operations hereunder, whether such operations are by Subdivider or any contractor or subcontractor or by anyone directly or indirectly employed by either Subdivider or any contractor or subcontractor. The amount of insurance coverage shall not be less than one million ($1,000,000) dollars per occurrence and two million ($2,000,000) dollars per policy aggregate. As an alternative to the policy aggregate the Subdivider may have an aggregate limit of one million ($1,000,000) dollars per project apply. Coverage shall be at least as broad as Insurance Services Office "occurrence form CG 00 01 (ed. 10/01)" covering commercial general liability or its equivalent.

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iii. Endorsements. Subdivider shall see that the commercial general liability insurance shall include, or be endorsed to include, the following:
a. Provision or endorsement naming the City of Hemet, its officers, employees, agents, boards, commissions, and volunteers as Additional Insureds with respect to liability arising out of the performance of any work under this Agreement.
b. Provision or endorsement waiving any rights of subrogation against the City, its officers, officials, employees, agents, boards, commissions and volunteers.
c. Provision or endorsement stating that insurance is primary insurance with respect to the City, its officers, employees, agents, boards, commissions, and volunteers, to the extent the City is an additional insured. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, boards, commissions, and volunteers shall be in excess of the Subdivider's insurance and shall not contribute with it.
d. Provision or endorsement stating that the Subdivider's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability (cross-liability).
e. Provision or endorsement stating that any failure to comply with reporting or other provisions of the policies including breaches of representations shall not affect coverage provided to the City, its officers, employees, agents, boards, commissions, and volunteers.

17. Prevailing Wage. Required Improvements may be subject to the payment of prevailing wage under California Labor Code Section 1720. In the event Subdivider does not pay prevailing wages for the work performed under this Agreement, the Subdivider shall pay all penalties and wages as required by applicable law and defend, indemnify, and hold harmless the City pursuant to sections 13 and 14 of this Agreement.

18. Title to Required Improvements.
(a) The City shall not accept any real property to be dedicated or the Required Improvements unless they are constructed in conformity with the approved plans and specifications, approved modifications, if any, the approved final or parcel map, and the City’s improvement standards and specifications, to the satisfaction of the City Engineer. Until such time as the Required Improvements are accepted by the City, Subdivider shall retain title and shall be responsible for, and bear the risk of loss to, any of the improvements constructed or installed.

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(b) Title to and ownership of any real property to be dedicated and the Required Improvements constructed under this Agreement by Subdivider shall vest absolutely in the City upon completion and acceptance in writing of such Required Improvements by City. The City shall not accept the Required Improvements unless title to the Required Improvements is entirely free from liens. Prior to acceptance, Subdivider shall supply the City with appropriate lien releases, at no cost to and in a form acceptable to the City.

19. Repair or Reconstruction of Defective Work. If, within a period of one (1) year after final acceptance by the City of the Required Improvements, any Required Improvement or part of any Required Improvement furnished and/or installed or constructed, or caused to be installed or constructed by Subdivider, or any of the work done under this Agreement materially fails to fulfill any of the requirements of this Agreement or the specifications referred to herein, Subdivider shall without delay and without any cost to City, repair, replace or reconstruct any defective or otherwise unsatisfactory part or parts of the Required Improvements. If the Subdivider fails to act promptly or in accordance with this requirement, or if the exigencies of the situation require repairs or replacements to be made before the Subdivider can be notified, then the City may, at its option, make the necessary repairs or replacements or perform the necessary work, and Subdivider shall pay to City the actual cost of such repairs plus twenty-five (25%) percent for administrative costs within thirty (30) days of the date of billing for such work by City.

20. Subdivider Not Agent of City. Neither Subdivider nor any of Subdivider's agents, contractors, or subcontractors are or shall be considered to be agents of the City in connection with the performance of Subdivider's obligations under this Agreement.

21. Notice of Breach and Default.
(a) The following shall constitute a default under this Agreement:
i. If Subdivider refuses or fails to prosecute the work on the Required Improvements, or any part thereof, with such diligence as will ensure its completion within the time specified, or any extension thereof, or fails to complete the Required Improvements within such time, provided that a delay shall be excused only to the extent Subdivider has requested and been granted an extension of the completion date in accordance with Section 9; ii. If Subdivider should be adjudged a bankrupt, or Subdivider should make a general assignment for the benefit of Subdivider's creditors, or if a receiver should be appointed in the event of Subdivider's insolvency; iii. Or if Subdivider or any of Subdivider's contractors, subcontractors, agents or employees should materially violate any of the provisions of this Agreement; provided that any failure to complete the Required Improvements within the time required, to provide or maintain any security

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required under Section 11, or to pay any City fees when due shall be deemed a material violation.
(b) In the event of Subdivider's default, Subdivider shall be deemed to be in breach of this Agreement and the City may serve written notice upon Subdivider, Hemet PV Partners LP (the “Partnership”), the Partnership’s investor limited partner, and Subdivider's surety, if any, of the breach of this Agreement. Subdivider shall have fifteen (15) calendar days from receipt of written notice by City to cure any default. (c) The City reserves to itself all remedies available to it at law or in equity for breach of Subdivider's obligations under this Agreement. The City shall have the right, subject to this section, to draw upon or utilize the appropriate security to mitigate the City’s damages in event of default by Subdivider. The right of the City to draw upon or utilize the security is additional to and not in lieu of any other remedy available to the City. It is specifically recognized that the estimated costs and security amounts may not reflect the actual cost of construction or installation of the Required Improvements and, therefore, the City damages for Subdivider's default shall be measured by the cost of completing the Required Improvements. The sums provided by the Improvement Security may be used by the City for the completion of the Required Improvements in accordance with the improvement plans and specifications contained herein. The Improvement Security includes the Payment Security, Performance Security, Warranty Security, Monument Security and any other improvement security required by Section 11 of this Agreement.
(d) In the event of Subdivider's default under this Agreement, Subdivider authorizes the City to perform such obligation twenty (20) calendar days after mailing written notice of default to Subdivider and to Subdivider's Surety, and agrees to pay the entire cost of such performance by City.
(e) City may take over the work of the Required Improvements and prosecute the same to completion, by contract or by any other method the City may deem advisable, for the account and at the expense of Subdivider, and Subdivider's Surety shall be liable to the City for any excess cost or damages occasioned City thereby; and, in such event, the City, without liability for so doing, may take possession of, and utilize in completing the work, such materials, appliances, plants and other property belonging to Subdivider as may be on the site of the work and necessary for performance of the work. (f) Failure of Subdivider to comply with the terms of this Agreement shall constitute consent to the filing by the City of a notice of violation against all the lots in the Subdivision. The remedy provided by this section is in addition to and not in lieu of other remedies available to the City. Subdivider agrees that the choice of remedy or remedies for Subdivider's breach shall be within the discretion of the City. (g) In the event that Subdivider materially fails to perform any obligation hereunder, Subdivider agrees to pay all costs and expenses incurred by the City in securing performance of such obligations, including costs of suit and reasonable attorneys' fees.

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(h) The failure of the City to take an enforcement action with respect to a default, or to declare a breach, shall not be construed as a waiver of that default or breach or subsequent default or breach of Subdivider.
(i) Subdivider recognizes that by approval of the final map for the Subdivision, the City has conferred substantial rights upon Subdivider, including the right to sell, lease, or finance lots within the Subdivision, and has taken the final act necessary to subdivide the property within the Subdivision. As a result, the City will be damaged to the extent of the cost of installation of the Required Improvements by Subdivider's failure to perform its obligations under this Agreement, including, but not limited to, Subdivider's obligation to complete construction of the Required Improvements by the time established in this Agreement. The City shall be entitled to all remedies available to it pursuant to this Agreement and the Subdivision Laws in the event of a default by Subdivider.
(j) The Partnership and Partnership’s investor limited partner shall have the right, but not the obligation, to cure any default of Subdivider set forth in such notice, during any applicable cure period described in this Agreement, and the City will accept tender of such cure as if delivered by Subdivider.

22. Building Permit Sign-Off or Issuance of Certificate of Occupancy. The City will not final or sign off as complete any building permit or issue any final certificate of occupancy for any building constructed within the Subdivision unless and until all required streets have been paved and the City Engineer determines, in his/her sole discretion, that completion of the Required Improvements will not materially interfere with the intended uses of the properties within the Subdivision. The parties acknowledge that the City Engineer and Building Official may, in their discretion, issue Temporary Certificates of Occupancy prior to completion of the Required Improvements, provided that (i) all-weather paved access adequate for emergency and fire apparatus is in place to the applicable building, (ii) water supply and fire-protection facilities, including hydrants, serving the applicable building are installed and operational, and (iii) all life-safety improvements for the applicable building and its access are complete. Any Temporary Certificate of Occupancy shall be temporary and revocable, may be conditioned as the City Engineer and Building Official deem necessary, and shall be subject to a deadline for completion of the Required Improvements.

Issuance of a Temporary Certificate of Occupancy shall not constitute acceptance of any Required Improvements by the City, nor relieve Subdivider of any obligation to complete the Required Improvements or to provide or maintain any security required under this Agreement.

23. Notices. Notice shall be deemed effective on the date personally delivered or transmitted by facsimile or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service. All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, or sent by telecopier or certified mail, postage prepaid and return receipt requested, addressed as follows:

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To City: City of Hemet
Attn: City Engineer
[***Address Line***]
[***Address Line***]
To Subdivider: Palm Communities
7515 Irvine Center Drive, Suite 140
Irvine, California 92618
With a copy to the Partnership: Hemet PV Partners LP
c/o Palm Communities
7515 Irvine Center Dr., Suite 140
Irvine, California 92618
Attention: [______]
E-Mail Address: [_____]
With a copy to Partnership’s
Investor Limited Partner: R4 PSCA Acquisition LP
c/o R4 Capital LLC
780 Third Avenue, 16th Floor
New York, New York 10017
Attention: Marc Schnitzer
E-Mail Address: [email protected]

24. Waiver. The waiver by either Party of a breach by the other of any provision of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement.

25. Personal Nature of Subdivider's Obligations/Assignment. Notwithstanding section 31 of this Agreement, all of Subdivider's obligations under this Agreement shall remain the personal obligations of Subdivider notwithstanding a transfer of all or any part of the property within the Subdivision subject to this Agreement, and Subdivider shall not assign any of its obligations under this Agreement without the prior written consent of the City.

26. Acquisition and Dedication of Easements or Rights-of-Way. If any of the Required Improvements are to be constructed or installed on land not within the Subdivision or an already existing public right-of-way, no construction or installation shall be commenced before:
(a) The irrevocable offer of dedication or conveyance to City of appropriate rights-ofway, easements or other interests in real property, and appropriate authorization from the property owner to allow construction or installation of the Required Improvements, or

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(b) The issuance of an order of possession by a court of competent jurisdiction pursuant to the State Eminent Domain Law. Subdivider shall comply in all respects with any such order of possession.
(c) Nothing in this section shall be construed as authorizing or granting an extension of time to Subdivider for completion of the Required Improvements.

27. Compliance with Laws. Subdivider, its agents, employees, contractors, and subcontractors shall comply with all federal, state and local laws in the performance of the work required by this Agreement including, but not limited to, obtaining all applicable permits and licenses.

28. No Vesting of Rights. Entering into this Agreement shall not be construed to vest Subdivider 's rights with respect to any change in any zoning or building law or ordinance.

29. Approvals by City. Any approval or consent that is to be given by the City under this Agreement shall be in writing, and any approval or consent that is not in writing shall not be binding on the City.

30. Construction and Interpretation. It is agreed and acknowledged by Subdivider that the provisions of this Agreement have been arrived at through negotiation, and that Subdivider has had a full and fair opportunity to revise the provisions of this Agreement and to have such provisions reviewed by legal counsel. Therefore, the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not apply in construing or interpreting this Agreement.

31. Successors and Assigns -- Covenant Running With the Land. This Agreement shall inure to the benefit and burden of, and binding upon, the successors and assigns of the respective Parties. This Agreement shall be recorded in the Office of the Recorder of Riverside County concurrently with the final map or parcel map of the Subdivision. This Agreement shall constitute a covenant running with the land and an equitable servitude upon the real property within the Subdivision.

32. Severability. The provisions of this Agreement are severable. If any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by mutual written consent of the Parties.

33. Actions. Any action by any Party to this Agreement, or any action concerning a security furnished pursuant thereto, shall be brought in the appropriate court of competent jurisdiction within the County of Riverside, State of California, notwithstanding any other provision of law which may provide that such action may be brought in some other location. The law governing this Agreement is the law of the State of California.

34. Integration. This Agreement is a fully integrated Agreement. It supersedes all prior negotiations, representations, or agreements, either written or oral.

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35. Modification. This Agreement may be amended only by a written instrument signed by the Parties. Subdivider shall bear all costs of amendments to this Agreement that are requested by the Subdivider.

36. Release of Agreement. When all obligations of the Subdivider, as set forth in the Agreement, have been satisfied as determined by the City Engineer, or his or her designee, he or she shall have the authority to record with the Riverside County Recorder a Release of Recorded Document releasing the Agreement so as to have no further force and effect on the property chain of title. Section 14 shall continue to survive as previously laid out in said section.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

CITY OF HEMET

CITY MANAGER
By: _______________________________
ATTEST:

CITY CLERK
By: _______________________________
APPROVED AS TO FORM:

CITY ATTORNEY
By: _______________________________

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SUBDIVIDER

PALM COMMUNITIES, CORPORATION
By: _______________________________
Name: Danavon L. Horn
Title: President

ACKNOWLEDGMENT

STATE OF CALIFORNIA )
)
COUNTY OF _______________ )
On ____________________, before me, ______________________________, Notary Public, personally appeared ______________________________,Danavon L. Horn who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
______________________________________
Notary Public
(Seal)
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.

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FBT Comments
RIV #4830-8901-9593 v1 1

SUBDIVISION IMPROVEMENT AGREEMENT
EXHIBIT “A”

LEGAL DESCRIPTION OF PROPERTY
PARCEL MAP NO. 38450

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FBT Comments
RIV #4830-8901-9593 v1 2

SUBDIVISION IMPROVEMENT AGREEMENT
EXHIBIT “A-1”
ENGINEER’S ESTIMATE
PARCEL MAP NO. 38450

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FBT Comments
RIV #4830-8901-9593 v1 1

SUBDIVISION IMPROVEMENT AGREEMENT
EXHIBIT “B”

SURETY BONDS AND OTHER SECURITY
PARCEL MAP NO. 38450
As evidence of understanding the provisions contained in this Agreement, and of the Builder’s intent to comply with same, the Builder has submitted the below described security in the amounts required by this Agreement, and has affixed the appropriate signatures thereto:

PERFORMANCE BOND PRINCIPAL AMOUNT: $
Surety:

Attorney-in-fact:

Address:

MATERIAL AND LABOR BOND PRINCIPAL AMOUNT: $
Surety:

Attorney-in-fact:

Address:

CASH MONUMENT SECURITY: $
Amount deposited per Cash Receipt No. Date:

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FBT Comments
RIV #4830-8901-9593 v1 1

SUBDIVISION IMPROVEMENT AGREEMENT
BOND NO. ___________________
INITIAL PREMIUM: ___________________

SUBJECT TO RENEWAL

CITY OF HEMET
PARCEL MAP NO. 38450 IMPROVEMENTS

FORM OF PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:

WHEREAS the City of Hemet, California (“City”) and Palm Communities, a California corporation (“Principal”), have executed an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, water system, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Parcel Map No. 38450 (“Public Improvements”);
WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Subdivision Improvement Agreement dated September 4, 2026 (“Improvement Agreement”);
WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and
WHEREAS, Principal is required by the Improvement Agreement to provide a good and sufficient bond for performance of the Improvement Agreement, and to guarantee and warranty the Public Improvements constructed thereunder.

NOW, THEREFORE, Principal and _________________________________ (“Surety”), a corporation organized and existing under the laws of the State of California, and duly authorized to transact surety business under the laws of the State of California, are held and firmly bound unto City in the sum of Five Hundred Twenty-Six Thousand Dollars, ($526,000), said sum being not less than one hundred percent (100%) of the total cost of the Public Improvements as set forth in the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION is such, that if Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, agreements, guarantees, and warranties in the Improvement Agreement and any alteration thereof made as therein provided, to be kept and performed at the time and in the manner therein specified and in all respects according to their intent and meaning, and to indemnify and save harmless City, its officers, employees, and agents, as stipulated in the Improvement Agreement, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

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FBT Comments
RIV #4830-8901-9593 v1 2

SUBDIVISION IMPROVEMENT AGREEMENT
As part of the obligation secured hereby, and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition.

This bond is executed and filed to comply with Section 66499 et seq. of the Government Code of California as security for performance of the Improvement Agreement and security for the one-year guarantee and warranty of the Public Improvements.

IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at _______________________, this _____ day of _______________, ______.

Principal Surety
By: By:

Its: Managing Member Attorney-In-Fact
(print name) (print name)
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION

BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF

ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING
COMPANY MUST BE ATTACHED TO THIS BOND.

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FBT Comments
1 SUBDIVISION IMPROVEMENT AGREEMENT
BOND NO. ___________________
INITIAL PREMIUM: ___________________

SUBJECT TO RENEWAL

CITY OF HEMET
PARCEL MAP NO. 38450 IMPROVEMENTS

FORM OF LABOR AND MATERIAL BOND
KNOW ALL MEN BY THESE PRESENTS:

WHEREAS the City of Hemet California (“City”) and Palm Communities, a California corporation (“Principal”), have executed an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Parcel Map No. 38450 (“Public Improvements”);
WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Subdivision Improvement Agreement dated September 4, 2026 (“Improvement Agreement”);
WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and
WHEREAS, Principal is required to furnish a bond in connection with the Improvement Agreement providing that if Principal or any of its subcontractors shall fail to pay for any materials, provisions, or other supplies, or terms used in, upon, for, or about the performance of the Public Improvements, or for any work or labor done thereon of any kind, or for amounts due under the provisions of California Civil Code Sections 8000-9566, with respect to such work or labor, that the Surety on this bond will pay the same together with a reasonable attorney’s fee in case suit is brought on the bond.

NOW, THEREFORE, Principal and _________________________ (“Surety”), a corporation organized and existing under the laws of the State of California, and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto City and to any and all material men, persons, companies or corporations furnishing materials, provisions, and other supplies used in, upon, for or about the performance of the Public Improvements, and all persons, companies or corporations renting or hiring teams, or implements or machinery, for or contributing to the Public Improvements to be done, and all persons performing work or labor upon the same and all persons supplying both work and materials as aforesaid excepting the Principal, the sum of Five Hundred Twenty-Six Thousand Dollars, ($526,000), said sum being not less than 100% of the total cost of the Public Improvements under the terms of the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns jointly and severally, firmly by these presents.

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FBT Comments
2 SUBDIVISION IMPROVEMENT AGREEMENT
THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal, his or its subcontractors, heirs, executors, administrators, successors, or assigns, shall fail to pay for any materials, provisions, or other supplies or machinery used in, upon, for or about the performance of the Public Improvements, or for work or labor thereon of any kind, or fail to pay any of the persons named in California Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and his subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay the same in or to an amount not exceeding the sum specified herein.

As part of the obligation secured hereby, and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

This bond is executed and filed to comply with Section 66499 et seq. of the California Government Code as security for payment to contractors, subcontractors, and persons furnishing labor, materials, or equipment for construction of the Public Improvements or performance of the Improvement Agreement. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition.

IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at _____________________, this _____ day of _______________, ______.

Principal Surety
By: By:

Its: Managing Member Attorney-In-Fact
(print name) (print name)

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FBT Comments
3 SUBDIVISION IMPROVEMENT AGREEMENT
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION

BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF

ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING
COMPANY MUST BE ATTACHED TO THIS BOND.

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FBT Comments
4 SUBDIVISION IMPROVEMENT AGREEMENT

SURVEY OF MONUMENTS
Parcel Map No. 38450
(California Government Code §§ 66499 and 66499.1)
WHEREAS, the City Council of the City of Hemet, a municipal corporation and political subdivision of the State of California ("City") and Palm Communities ("Principal"), a California Corporation, have entered into an agreement pursuant to California Government Code Section 66462 whereby Principal agrees to install and complete certain designated improvements, which said agreement, dated _____________, and identified as Subdivision Improvement Agreement _______________ (“Agreement”), is hereby incorporated by this reference as though set forth at length, and have agreed pursuant to Section 66499 of the Government Code to execute this bond to secure the performance of the following obligation: Principal hereby agrees to install survey monuments in accordance with any terms and conditions set forth in the Agreement, permit and the requirements and specifications of all applicable laws and ordinances.

WHEREAS, we, the Principal and ____________________________, as surety (“Surety”), are held and firmly bound unto the City, in the penal sum of Seventy Five Hundred 0/100 ($7,500.00) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.

WHEREAS, should Principal fail to install survey monuments in accordance with any terms and conditions set forth in the Agreement, permit and the requirements and specifications of all applicable laws and ordinances and/or should Principal fail to complete said installation of survey monuments within the time period prescribed therein or otherwise provided by any lawful extension of time granted by the City Council, the City may, at its option, cause all required work to be done in the manner required herein, and the parties executing this bond shall be firmly bound for the payment of all necessary costs therefore.

NOW, THEREFORE, we, the Principal and Surety, are held and firmly bound unto the City, in the penal sum of __________ lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.

The condition of this obligation is such that if the above bounded Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the foregoing work, on his or their part, to be kept and performed at

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FBT Comments
5 SUBDIVISION IMPROVEMENT AGREEMENT
the time and in the manner specified above, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect, at least until the time City accepts the work required to be performed by Principal under the Agreement, notwithstanding whether or not Principal should abandon its obligations under the Agreement without having commenced construction of any improvements and whether such abandonment arises from foreclosure upon Principal’s property or otherwise.

As part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the work to be performed hereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the scope of work to be performed or to the specifications.
[THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK]

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FBT Comments
6 SUBDIVISION IMPROVEMENT AGREEMENT
IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at _____________________, this _____ day of _______________, ______.

Principal Surety
By: By:

Its: Managing Member Attorney-In-Fact
(print name) (print name)

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City of Hemet
City Council Meeting

STAFF REPORT
Meeting: Special City Council Meeting - Oct 08 2026
Department: Administration
Submitted by: Noah Rau, Interim City Manager
Noah Rau, Interim City Manager, Steven Graham, City Attorney; ☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:

Discussion and Adoption of a Resolution Providing for Separate Accounting of Measure Q Revenue, if Approved by Voters, Preserving the City’s Existing Measure U Public Safety Commitments, and Reserving Measure Q Funding Decisions to the City Council Through the Annual Public Budget Process
RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

1. Receive this report and discuss the proposed Measure Q policy framework; and

2. Adopt the following resolution (Attachment No. 1):

RESOLUTION NO. 2026-179 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEMET, CALIFORNIA, PROVIDING FOR SEPARATE ACCOUNTING AND ANNUAL BUDGET

CONSIDERATION OF MEASURE Q REVENUE IF APPROVED BY VOTERS AND REAFFIRMING THE CITY’S EXISTING MEASURE U PUBLIC SAFETY COMMITMENTS EXECUTIVE SUMMARY:

The proposed resolution provides a framework for transparent accounting and annual budget decisions. It recognizes the measure-specific purpose of the Maintenance of Effort provision adopted for Measure U and preserves the City’s existing commitments associated with that measure. Measure Q would be tracked separately, and the Council would determine each year where the funds would best serve the community.

The recommended approach establishes no fixed departmental percentage, project list, or commitment to use Measure Q exclusively for capital improvements or ongoing operations. It allows the Council to consider public safety, infrastructure, other municipal services, and financial stability together as part of each year’s public budget deliberations. Implementation would depend on voter approval and the ordinance becoming operative.

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A principal intended use of Measure Q is to close the City’s existing structural budget deficit and avoid reductions to existing municipal services. That objective would inform annual budget recommendations while leaving the Council flexibility to determine the mix of operating support, capital investment, and reserves appropriate for each year.

BACKGROUND/ANALYSIS:

On August 23, 2016, the City Council adopted Resolution No. 4703 (Attachment No. 2) concerning Measure U. Section 5 established a 72 percent public safety budget provision, commonly described as Maintenance of Effort. Its purpose was to demonstrate that Measure U would add resources for police and fire, rather than allow the City to substitute the new tax proceeds for the underlying General Fund support previously provided from other sources, such as property tax or transient occupancy tax.

Resolution No. 4731 (Attachment No. 2), adopted December 13, 2016, reaffirmed those commitments. The existing tax was subsequently continued by Measure H. The proposed Measure Q policy would preserve the commitments associated with Measure U and its continuation.

Measure Q is a separate supplemental general tax on the November 3, 2026 ballot. The proposed ordinance requires its proceeds to be deposited in the General Fund and allows their use for lawful municipal purposes. Separate accounting within that fund would identify the new revenue and its uses while allowing the Council to respond to changing community needs.

The Maintenance of Effort provision was a Council determination made in connection with Measure U. The proposed resolution recognizes that measure-specific purpose and does not extend the Measure U allocation policies to Measure Q. It treats Measure Q as a separately tracked revenue source whose annual allocation would be determined through public budget actions. It does not reduce or discontinue the City’s existing Measure U commitments.

Council has several policy approaches available for consideration. It could adopt a separate commitment for Measure Q, expressly apply the Measure U allocation policies to Measure Q, or provide for separate tracking and annual allocation decisions. The recommended resolution follows the third approach. Council could revisit that approach through a future public policy decision, consistent with applicable law.

Is the "1¢" in the Measure Q ballot question a typo?
No. It is intentional, and it is the standard way California ballot questions describe a local sales tax.

Measure Q is a one percent (1%) transactions and use tax, which most people simply call a sales tax.

A one percent rate is the same thing as one cent on every dollar: an extra penny on a $1 purchase.

The ballot question says “1¢ sales tax” because state law requires the question to state the rate of the tax in no more than 75 words, in plain language a voter can understand, and “one cent on the dollar" is the plainest way to say it. Other California cities and counties use the same convention, a half-cent measure, for example, often appears on the ballot as “½¢.” The City Attorney’s Impartial Analysis in the voter information guide says it directly: “A one percent (1%) rate equates to an extra 1¢ per $1 purchased of taxable goods.” Two things “1¢” does not mean. It is not a flat one cent per transaction, and it is not a one percent increase to the existing tax. It is one additional cent on each dollar of taxable sales, added to the

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current rate. As with all sales tax, unprocessed groceries, prescription medicine, rent, and services such as medical, dental, and legal are not taxed.

Community Priorities Identified in the Voter Feasibility Survey The City Council received a voter feasibility survey presentation on July 14, 2026. The survey was conducted May 19–28, 2026, among 439 likely November 2026 voters in Hemet, with a reported fullsample margin of sampling error of ±4.9 percentage points at the 95 percent confidence level. The study assessed voter views on a potential revenue measure and the importance of possible service and accountability provisions; it was not a financial feasibility analysis or an adopted expenditure plan.

The findings identified community priorities including public safety and emergency response, safe and clean public areas, safe drinking water, street and pothole repairs, support for local businesses, financial stability, and maintaining essential City services. Public spending disclosure and local control of funds were also identified as important. Financial stability and service continuity are relevant to the principal intended use of Measure Q to help close the existing structural budget deficit and avoid reductions to existing services.

The proposed resolution acknowledges these priorities as illustrative and nonexclusive considerations for annual budget decisions. It establishes no required spending sequence, departmental percentage, or project commitment, and does not require funding every category each year. Specific uses and amounts would be determined through the public budget process based on available revenues, community needs, financial sustainability, and public input. The survey tested draft ballot language; the final measure submitted to voters governs the tax. The survey does not amend that measure or predetermine appropriations.

DISCUSSION:

Addressing the structural deficit would be a central consideration in each year’s allocation discussion.

The deficit reflects an ongoing imbalance between recurring revenues and the cost of existing services. Measure Q could help sustain those services and reduce the need for cuts. The amount available for other priorities would depend on annual revenue projections, expenditure needs, and the Council’s broader financial plan; the resolution does not presume that Measure Q alone will eliminate the deficit.

Under the recommended approach, allocations could change from year to year. In one year, the Council might emphasize street paving; in another, a park improvement, a fire station, or other community facilities. The Council could also support ongoing public safety or other municipal services, maintain appropriate reserves, or use a combination of these approaches. These examples illustrate available choices and do not constitute project approvals or funding commitments.

Council may wish to discuss whether capital investments should receive particular emphasis. A capital emphasis could support visible improvements and limit reliance on new revenue for recurring costs. Operating allocations could help maintain service levels and address immediate needs. Either approach, or a combination, would involve tradeoffs to be evaluated in the budget process. The proposed resolution leaves those judgments to the Council rather than prescribing a preference in advance.

Each annual allocation would be based on projected resources, service and infrastructure needs, financial sustainability, and public input. Multi-year projects or obligations would require the usual

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Council approvals and disclosure of future costs. Annual allocation flexibility would remain subject to law and previously approved obligations.

The proposed resolution reaffirms the Measure U commitments, including Maintenance of Effort, and calls for separate presentation of the underlying General Fund support and Measure U and Measure Q activity. Measure Q-funded police and fire spending would not be counted as underlying General Fund support for purposes of demonstrating Maintenance of Effort. This would allow the public to see both the existing commitment and any additional Measure Q allocation.

Finance would separately identify Measure Q receipts, expenditures, transfers, attributable earnings, and balances within the General Fund. Annual budget materials would identify proposed uses and amounts, and public financial reports would show actual uses and remaining balances. Unspent amounts would remain separately identifiable and available for future Council appropriation, subject to approved obligations.

Measure Q activity would be included in annual independent financial audit coverage and applicable public reporting and oversight. Staff would return with any additional procedures or Council actions needed to implement the accounting, reporting, and independent citizens’ oversight framework.

Council would retain authority to approve expenditures; oversight would provide review and public accountability.

PREVIOUS COUNCIL ACTION:
 August 23, 2016 – Adopted Resolution No. 4703, stating the Council’s intention to expend all Measure U proceeds for the enhancement of public safety services.  December 13, 2016 – Adopted Resolution No. 4731, reaffirming Resolution No. 4703 in all respects.
 July 14, 2026 – Adopted Resolution No. 2026-129 (5-0), ordering the submission of Measure Q to the voters at the November 3, 2026 General Municipal Election, and received the May 2026 voter survey results.

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.

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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 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:

If approved, Measure Q could provide recurring revenue to help close the existing structural deficit and maintain current services. Finance would present updated deficit projections and the proposed use of Measure Q with each budget, including the effect on reserves and recurring revenues and expenditures.

The resolution establishes a policy framework and does not appropriate revenue or approve a project, contract, or staffing change. If Measure Q is approved, specific uses, amounts, and any administrative costs would be presented through subsequent budget actions. No additional appropriation is requested with this item.

ALTERNATIVE(S):

1. Adopt the resolution as presented (recommended).

2. Adopt the resolution with modifications to the priority areas or illustrative examples in Section

6. 3. Direct staff to prepare a resolution applying the Measure U maintenance-of-effort provision to Measure Q revenues.

4. Defer action until after the November 3, 2026 election.

ATTACHMENT(S):

Attachment 1 - Resolution No. 2026-179 _ Measure Q Accounting if Approved Attachment 2 - Resolution No. 4731, including Resolution No. 4703 as Exhibit A Attachment 3 - Resolution No 2026-129 submitting to voters and Measure Q proposed ordinance

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CITY OF HEMET RESOLUTION NO. 2026-179 1
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CITY OF HEMET

HEMET, CALIFORNIA
RESOLUTION NO. 2026-179

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA, PROVIDING FOR SEPARATE

ACCOUNTING AND ANNUAL BUDGET CONSIDERATION

OF MEASURE Q REVENUE IF APPROVED BY VOTERS
AND REAFFIRMING THE CITY’S EXISTING MEASURE U

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

WHEREAS, on August 23, 2016, the City Council adopted Resolution No. 4703 establishing policies concerning the use of Measure U proceeds for public safety; and WHEREAS, Section 5 of Resolution No. 4703 established a 72 percent public safety budget provision, commonly described as Maintenance of Effort, to maintain underlying General Fund support for police and fire as Measure U added resources for those services; and
WHEREAS, that Maintenance of Effort policy was adopted in connection with Measure U to demonstrate that the new revenue would supplement, rather than replace, the underlying support provided from other General Fund sources; and WHEREAS, Resolution No. 4731 reaffirmed the City’s Measure U commitments, and the existing tax was subsequently continued by Measure H; and WHEREAS, Measure Q proposes a separate supplemental general transactions and use tax for consideration by voters on November 3, 2026, with proceeds deposited in the General Fund and available for lawful municipal purposes; and

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CITY OF HEMET RESOLUTION NO. 2026-179 2
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WHEREAS, the City Council desires to preserve its existing Measure U commitments while separately identifying Measure Q revenue and considering its use in light of the community’s needs through each year’s public budget process; and WHEREAS, a principal intended use of Measure Q is to help close the City’s existing structural budget deficit and avoid reductions to existing municipal services, with the appropriate funding decisions made through the public budget process; and WHEREAS, on July 14, 2026, the City Council received a voter feasibility survey presentation identifying community priorities including public safety and emergency response, safe and clean public areas, safe drinking water, street repairs, support for local businesses, financial stability, maintaining essential City services, public spending disclosure, and local control of funds; and
WHEREAS, the City Council desires to consider those priorities as illustrative and nonexclusive information supporting annual budget deliberations, without establishing predetermined allocations or project commitments; and WHEREAS, the City Council desires to retain flexibility to consider capital investments, ongoing services, and financial stability without establishing a predetermined allocation of Measure Q revenue;

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

SECTION 1. PURPOSE.

The foregoing recitals are incorporated into this resolution. This resolution establishes a framework for separate accounting and annual Council consideration of

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CITY OF HEMET RESOLUTION NO. 2026-179 3
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Measure Q revenue, if approved by voters and legally operative. Its purpose is to provide transparency, preserve the existing Measure U public safety commitments, and allow the City Council to respond to community needs through public budget decisions.

SECTION 2. EXISTING MEASURE U COMMITMENTS.

The City Council reaffirms its commitments under Resolutions Nos. 4703 and 4731 concerning Measure U, including the Maintenance of Effort provision and the policies governing allocation of Measure U proceeds, as continued by Measure H. The Council recognizes the Maintenance of Effort provision as a measure-specific policy adopted to preserve underlying General Fund support for police and fire in connection with Measure U.

For purposes of administering this Council policy, Measure Q shall be tracked separately and shall not be included in the Maintenance of Effort calculation applicable to the underlying General Fund budget associated with Measure U. Expenditures financed by Measure Q, including separately tracked prior-year balances and attributable earnings, shall be identified separately from that underlying budget and its qualifying police and fire support. Measure Q allocations to police and fire shall not be used to demonstrate satisfaction of the underlying Maintenance of Effort commitment.

This resolution does not extend the Measure U departmental allocation policies to Measure Q. It does not reduce or discontinue the City’s existing Measure U commitments or alter any voter-approved tax ordinance. The Administrative Services Director shall present the Maintenance of Effort calculation and its accounting basis separately from Measure Q allocations, with consistent treatment of funding sources and no double counting.

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CITY OF HEMET RESOLUTION NO. 2026-179 4
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SECTION 3. SEPARATE ACCOUNTING.

Measure Q proceeds shall be deposited in the General Fund and separately identified through accounts, subaccounts, or accounting codes maintained by the Administrative Services Director. Records shall identify receipts, attributable earnings, appropriations, expenditures, transfers, and available balances. Unspent amounts shall remain separately identifiable for future Council appropriation, subject to approved obligations. Separate tracking shall not convert the revenue into a restricted special tax or remove it from the General Fund.

SECTION 4. ANNUAL BUDGET DECISIONS.

The City Council shall consider proposed uses of Measure Q revenue through the annual public budget process and may approve or revise appropriations through subsequent public budget actions. Decisions shall reflect available resources, community needs, financial sustainability, public input, and applicable legal and contractual obligations.

Helping close the existing structural budget deficit and maintaining existing services shall be a principal objective informing annual consideration of Measure Q. The Council shall determine the appropriate allocations in light of available resources and community needs, retaining flexibility to respond to changing circumstances.

In considering annual Measure Q appropriations, the City Council intends to consider maintaining existing municipal services and addressing the City’s structural deficit, together with community priorities identified through public input, including public safety and emergency response, safe and clean public areas, streets and infrastructure, safe drinking water, library and community services, and support for local businesses.

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CITY OF HEMET RESOLUTION NO. 2026-179 5
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These considerations are illustrative and nonexclusive and establish no required spending sequence, departmental percentage, or project commitment. They do not require funding every category each year. Specific uses and amounts shall be determined through the public budget process based on available revenues, community needs, financial sustainability, and public input.

No fixed percentage, dollar amount, departmental allocation, or project commitment is established by this resolution. The Council may allocate Measure Q revenue for any lawful municipal purpose, including capital improvements, ongoing services, public safety, or reserves, and may select different priorities or combinations of uses in different fiscal years. This resolution establishes no requirement to favor capital expenditures over operating expenditures, or operating expenditures over capital expenditures.

SECTION 5. COUNCIL AUTHORITY AND FUTURE CONSIDERATION.

The Council serving when funds become available, and future Councils, shall retain their lawful authority to determine appropriations. Multi-year commitments and projects shall be considered through the usual approval processes, with identification of future costs and obligations. Annual flexibility shall remain subject to those approved obligations and applicable law.

The Council may consider a separate Measure Q funding policy, expressly apply specified Measure U policies to Measure Q, or revise this framework through a future public Council action, consistent with applicable law. No expenditure, project, contract, or staffing change is approved by adoption of this resolution alone.

SECTION 6. REPORTING AUDIT AND OVERSIGHT.

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CITY OF HEMET RESOLUTION NO. 2026-179 6
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Annual budget materials shall separately identify proposed Measure Q allocations and amounts. Public financial reporting shall identify receipts, expenditures, transfers, attributable earnings, and available balances, allowing the public to compare approved uses with actual activity. The City’s reporting shall distinguish underlying General Fund support for police and fire from Measure U and Measure Q funding.

Measure Q activity shall be included in annual independent financial audit coverage and applicable public reporting and oversight. Staff shall present any additional procedures or Council actions needed for separate financial reporting and independent citizens’ oversight, consistent with the final ordinance and applicable law.

Oversight shall provide review and public accountability; appropriation authority shall remain with the City Council.

SECTION 7. IMPLEMENTATION AND EFFECTIVE DATE.

The City Manager and Administrative Services Director are directed to prepare the accounting and reporting procedures necessary to carry out this framework and return with any required Council actions or appropriations. Technical procedures shall implement, rather than change, the policy adopted by Council.

This resolution takes effect upon adoption for planning purposes. Its provisions governing Measure Q receipts, allocations, and their treatment in the Maintenance of Effort calculation apply only if Measure Q is approved by voters and becomes legally operative. If Measure Q is not approved or does not become operative, the existing Measure U policies shall continue without change. This resolution does not authorize collection of a tax or amend the ordinance submitted to voters.

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CITY OF HEMET RESOLUTION NO. 2026-179 7
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SECTION 8. CERTIFICATION.

The City Clerk shall certify the adoption of this resolution and retain it in the City’s official records.

PASSED, APPROVED AND ADOPTED this 8th day of October 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. 2026-179 8
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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 8th day of October 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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28 CITY OF HEMET
Hemet, California
RESOLUTION NO. 4731

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA REAFFIRMING RESOLUTION
NO. 4703 AND CONFIRMING ITS INTENTION TO
EXPEND ALL PROCEEDS OF THE MEASURE “U”

TRANSACTIONS FOR THE ENHANCEMENT OF PUBLIC

SAFETY SERVICES AS PROVIDED IN RESOLUTION
4703.

WHEREAS, the City Council of the City of Hemet adopted Resolution No. 470 on August 23, 2016 at a Regular meeting of the City Council thereby pleading to expend all proceeds of the Measure “U” general transaction and use tax for enhancement 0 Public Safety Services within the City of Hemet as provided therein ; and, WHEREAS, City of Hemet voters passed Measure “U”by the required margin a the municipal election held on November 8, 2016; and
WHEREAS, the Hemet City Council, having a new composition and ne members after the election, desires to reaffirm the prior Council’s pledge to th community to abide by the terms of Resolution 4703.

NOW, THEREFORE, the City Council of the City of Hemet does hereby resolve:

1. That the above-referenced recitals are true and correct and material to thi Resolution.

2. The City Council hereby reaffirms Resolution No. 4703 (a certified version 0 which is attached hereto as Exhibit “A")and again pledges to abide by the term and conditions of Resolution 4703 in all respects, including, without limitation, pleading to expend all proceeds of the Measure “U”general transaction and us tax for enhancement of Public Safety Services within the City of Hemet, a provided therein.

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28 PASSED, APPROVED, AND ADOPTED this 13thday of December, 2016.

Russell Brown , ncil Member
ATI'EST:

I.“‘Kit: a i);1111‘ 61W?)
Sarah McComas, City Clerk
Linda Kr pa, Mayor
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MchaelPerc . mayor ' 9 Tem
JIZVSKarlee Meyer, Council Member
%7%( ‘/t..r/L/
Paul Raver, Council Me ber
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-onnie Wright, Counc' Member
APPROVED AS TO FORM:

Eric S. Vail, City Attorney

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State of California
County of Riverside
City of Hemet
vvv
I, Sarah McComas, City Clerk of the City of Hemet, do hereby certify that th foregoing Resolution is the actual Resolution adopted by the City Council of the City 0 Hemet and was passed at a regular meeting of the City Council on the 13thday 0 December, 2016 by the following vote:
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14 AYES: Council Members Meyers, Raver and Wright, Mayor Pro Tem Perciful and Mayor Krupa
NOES:

ABSTAIN:

ABSENT:
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K‘Efbg )NKVQM
Sarah McComas, City Clerk
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EXHIBIT“A”
Certified Version of Resolution No. 4703

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28 CITYOF HEMET
Hemet, California
RESOLUTION NO. 4703

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HEMET, CALIFORNIA STATING ITS INTENTION TO

EXPENDALL PROCEEDS OF THE TRANSACTIONSAND
USE TAX PROPOSED BY MEASURE “U" FOR THE

ENHANCEMENTOF PUBLIC SAFETY SERVICES WITHIN
THE CITY OF HEMETIF MEASURE "U” IS APPROVED
BY THE VOTERS AT THE NOVEMBER 8, 2016
ELECTION.

WHEREAS, the City of Hemet seeks to maintain a safe community to live, work, and raise a family; and,
WHEREAS, since 2008, the City of Hemet has experienced a reduction in ta revenue that has resulted in reduction in police and ?re department staffing; and, WHEREAS, the City of Hemet Police Department reported that compounded b severe staf?ng reductions, Hemet has experienced a 51% increase in violent crime an a 21% increase in overall crime since 2010, which is re?ected in a recent communi survey in which over 60% of residents reported being fearful they would be the victim o a crime in Hemet and over 52% said they usually leave Hemet to shop or spend mone on entertainment; and
WHEREAS, increasing numbers of parolees and sex offenders are bein released from incarceration early because of state cuts to prisons and federal cou orders; and
WHEREAS, the amount of crime, drug traf?cking and homelessness in Hemet i hurting our local businesses and job market. People are going to other cities to do thei shopping and businesses do not want to be located in a city that cannot provid adequate public safety services; and
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WHEREAS, the State of California has taken more than six million dollars fro Hemet over the last five years and shifted responsibility for many programs back to loca cities like Hemet without the necessary funding to provide the criticalservices; and WHEREAS, the City of Hemet Fire Department experienced a 40% reduction i staffing as a result of the recession, and a recent community survey showed that 88% o Hemet citizens are opposed to making any cuts to 9-1-1/Paramedic services; and WHEREAS, due to the circumstances stated above, the City Council ha approved the placement of a general purpose transactions and use tax on th November 8, 2016 ballot, that, if approved by a majority of the voters, would be impose at a rate of 1% in accordance with state law and the proceeds of which would b collected by the State Board of Equalization and remitted to the City (hereinafter “la_x"); and
WHEREAS, the County Registrar of Voters has designated the Hemet genera 15 16
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purpose transactions and use tax as Measure “U”for the November 8, 2016 electio (hereinafter “Measure U”);and
WHEREAS, under the law, the Tax proposed by Measure U is a general purpos tax that may be used for all lawfulpurposes and general municipal services; and WHEREAS, receiving proceeds Tax would enable the City to:
add up to an estimated 39 new peace of?cers to the Hemet police force, 57% increase in peace officer staffing;
put more peace officers on the streets and fund anti-drug and gang team to improve safety in our city;
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0 add paramedics to all Hemet Fire Stations to improve emergency life saving response; and,
WHEREAS, the Hemet City Council commits to use all proceeds of that Tax a expressly stated in this Resolution if Measure U is passed by the voters at th November 8, 2016 election.

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NOW, THEREFORE, the City Council of the City of Hemet does hereby resolve:

1. That the above-referenced recitals are true and correct and material to thi Resolution.

2. That the City Council shall dedicate 100% of the Tax proceeds to enhancin public safety the City and increasing funding for such services a 10 11
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provided in this Resolution.
. That the City Council shall, as part of the City’s normal budget process, annuall prepare and adopt an expenditure plan for enhancing public safety service within the City, including application of the Tax proceeds. The expenditure pla shall be submitted to the citizens' oversight committee required by Measure U to their review and comment prior to the City Council’s consideration and adoptio of the expenditure plan. The expenditure plan shall be consistent with th requirements of this Resolution, including but not limitedto the following:
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a. Tax proceeds shall be used exclusively to pay for costs associated wit the citizens’ oversight committee, the independent audit, and fundin police protection and crime suppression services, fire protection an suppression services. and 9-1-1 / paramedic services within the City. Th proceeds of the Tax may be expended on any and all regular and specia expenses incurred for the operation and the provision of public safet services within the City and in response to mutual and automatic ai agreements, including, but not limited to: wages, benefits, and deferre compensation for police and ?re personnel and the pro rata shares of suc 23 24
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costs for other City personnel that support the police and fire service within the City; the purchase, operation and maintenance of vehicles an equipment including repairs, fuel and maintenance; the operation, maintenance, repair and retro?tting of existing property, buildings, improvements and other facilities necessary for police or ?re purposes RIV #48454564-9974 v1
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13 risk management and legal services in defense of claims and legal action against the City and public safety personnel, training, licensing an certification of police and fire personnel; and for utilizing contractors, subcontractors, consultants, and professional services directly related t enhancing police and ?re services.

4. That each ?scal year, the Tax proceeds shall be allocated two-thirds to the Cit of Hemet Police Department, and one-third to the City of Hemet Fire Department.

5. That the City will not, in any fiscal year, reduce the percentage of general fun revenues budgeted and appropriated for Hemet police and fire services belo 72% of the total general fund expenditure budget for the given fiscal year.

6. That prior to July 1, 2019, each expenditure plan and City of Hemet budget inclusive of Tax proceeds, shall provide adequate funding for the City to annually recruit, hire, equip, and support sworn peace officers and/or police academ 15 l6
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cadets, in such a manner, and considering estimated tax proceeds to be receive in each of these fiscal years, so that the City willattain a funded staffing ratio 0

1.2 full time equivalent sworn peace of?cers per 1,000 City of Hemet resident ("mandatory staf?ng ratio") by July 1, 2019. After July 1, 2019, and unti termination of the Tax, the City will budget for the mandatory staffing ratio an each expenditure plan and the City of Hemet budget shall provide adequat funding to maintain the mandatory staffing ratio.

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and until the voters voting at the November 8, 2016 election approve Measure by the legally required vote count, and Measure U is otherwise legally operative.

I////
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PASSED, APPROVED, ANDADOPTED this 23rdday of August. 2016.

Bonnie Wright, Mayo
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APPROVED AS TO FORM:

Eric S. Vail, City Attorney
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~»
.l
ATTEST
‘EGOINGlNSTRUMENT ISA CC
COPYOFgEORIG|NZ§ ON’CHIE FTHIS OFFL
CITYCLERK,CITYOFHEMET. CALIFORNIA
’\ __.._20L§o_——
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State of California
County of Riverside
City of Hemet
vvv
I, Sarah McComas, City Clerk of the City of Hemet, do hereby certify that th foregoing Resolution is the actual Resolution adopted by the City Council of the City 0 Hemet and was passed at a regular meeting of the City Council on the 23rdday 0 August, 2016 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Council Members Krupa and Youssef, Mayor Pro Tem Raver and Mayo Wright
Council Member Milne
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( \
2 M) £2”30!MM}3
Sarah McComas, City Clerk
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DRAFT8/15/16

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CITY OF HEMET ORDINANCE NO. ____ 1
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CITY OF HEMET

HEMET, CALIFORNIA
ORDINANCE NO. ____

AN ORDINANCE OF THE PEOPLE OF THE CITY OF HEMET,

CALIFORNIA, ADDING ARTICLE VII (SUPPLEMENTAL
TRANSACTIONS AND USE TAX) TO CHAPTER 74 (TAXATION)
IMPOSING AN ADDITIONAL 1% TRANSACTIONS AND USE TAX TO BE

ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND

FEE ADMINISTRATION
WHEREAS, the City of Hemet provides essential municipal services to residents, businesses, property owners, and visitors, including police protection, fire protection and emergency medical response, code enforcement, street and roadway maintenance, parks and recreation, homelessness response, economic development, planning and building services, and other general governmental services; and WHEREAS, the cost of providing municipal services, maintaining public infrastructure, responding to community needs, recruiting and retaining qualified personnel, and addressing deferred maintenance and service demands has continued to increase; and WHEREAS, locally generated revenue allows the City to maintain local control over local priorities and to respond to the needs of the Hemet community without relying solely on state, federal, or other outside funding sources that may be restricted, delayed, reduced, or unavailable; and
WHEREAS, Revenue and Taxation Code section 7285.9 authorizes the governing body of a city to levy, increase, or extend a transactions and use tax for general purposes, at a rate of 0.125 percent or a multiple thereof, if the ordinance proposing the tax is approved by a two-thirds vote of all members of the governing body and the tax is approved by a majority vote of the qualified voters of the city voting on the measure; and WHEREAS, Revenue and Taxation Code section 7285.9 further authorizes the governing body of a city to levy, increase, or extend more than one transactions and use tax under that section, provided that each such tax is adopted in the manner prescribed by that section and conforms to the Transactions and Use Tax Law, Part 1.6 of Division 2 of the Revenue and Taxation Code; and
WHEREAS, this Ordinance is proposed as a general tax for general governmental purposes within the meaning of Article XIII C of the California Constitution and Revenue and Taxation Code section 7285.9, and the proceeds of the tax imposed by this

EXHIBIT A

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Ordinance shall be deposited into the City’s General Fund and may be used for any lawful municipal purpose; and
WHEREAS, the City previously adopted Ordinance No. 1918, approved by the voters as Measure U at the November 8, 2016 election, establishing the existing City of Hemet Transactions and Use Tax Ordinance, and the voters subsequently approved Measure H to continue that existing one percent transactions and use tax until ended by the voters; and
WHEREAS, the tax imposed by this Ordinance is a separate supplemental general transactions and use tax, adopted under a separate Article VII of Chapter 74 of the Hemet Municipal Code, and is not an amendment, extension, increase, reenactment, or continuation of the transactions and use tax approved by Measure U, continued by Measure H, or codified in Article V of Chapter 74 of the Hemet Municipal Code; and WHEREAS, the proceeds of the tax imposed by this Ordinance may be used for any lawful general municipal purpose and the City will remain accountable for the receipt and expenditure of such proceeds through the City’s budget process, public financial reporting, and independent annual audits; and
WHEREAS, the tax imposed by this Ordinance shall be administered by the California Department of Tax and Fee Administration in accordance with the Transactions and Use Tax Law, thereby minimizing the cost of collection and the burden of administration on retailers, consumers, and the City; and
WHEREAS, pursuant to Elections Code section 9222, Government Code section 53724, and Revenue and Taxation Code section 7285.9, the City Council has authority to submit this Ordinance to the qualified voters of the City for approval; and WHEREAS, the People of the City of Hemet desire to adopt this Ordinance to establish a separate supplemental general transactions and use tax for general municipal purposes, to continue until ended by the voters as provided herein.

NOW THEREFORE, THE PEOPLE OF THE CITY OF HEMET DO HEREBY ORDAIN AS FOLLOWS:

Section 1. The Hemet Municipal Code is hereby amended to add Article VII to Chapter 74 to read as follows:

ARTICLE VII

SUPPLEMENTAL TRANSACTIONS AND USE TAX
74-200. TITLE. This ordinance shall be known as the Supplemental City of Hemet Transactions and Use Tax Ordinance. The City of Hemet hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.

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74-201. OPERATIVE DATE. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance.

For purposes of Revenue and Taxation Code section 7265, this ordinance shall be considered adopted on the date of the election in which it is approved by the qualified voters of the City.
74-202. PURPOSE. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.

D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.
74-203. SEPARATE GENERAL TAX. The tax imposed by this ordinance is a separate supplemental general transactions and use tax from the transactions and use tax approved by Measure U, continued by Measure H, and codified in Article V of Chapter 74 of the Hemet Municipal Code. Revenues collected pursuant to this ordinance shall be deposited in the City’s General Fund and may be used for any lawful general municipal purpose.

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74-204. CONTRACT WITH STATE. Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 74-205. TRANSACTIONS TAX RATE. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one percent (1.0%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.
74-206. PLACE OF SALE. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
74-207. USE TAX RATE. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one percent (1.0%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 74-208. ADOPTION OF PROVISIONS OF STATE LAW. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 74-209. LIMITATIONS ON ADOPTION OF STATE LAW AND COLLECTION OF USE TAXES. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

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1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;
b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.

1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
74-210. PERMIT NOT REQUIRED. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 74-211. EXEMPTIONS AND EXCLUSIONS.

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A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

7.A.

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C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.

5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code.

That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

7.A.

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D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 74-212. AMENDMENTS. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
74-213. ENJOINING COLLECTION FORBIDDEN. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 74-214. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
74-215. EFFECTIVE DATE. This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately. 74-216. TERMINATION DATE. The authority to levy the tax imposed by this ordinance shall continue until ended by an affirmative vote of not less than a majority of the voters of the city at a general municipal election.

PASSED, APPROVED AND ADOPTED by the voters this November 3, 2026. ___________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:
________________________ __________________________ Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk

7.A.

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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 ordinance was adopted by the voters of the City of Hemet at the general municipal election held on November 3, 2026 and was passed by the following vote:

YES:

NO:
_____________________________
Rosalia A. Butler, MMC, City Clerk

7.A.

City of Hemet
City Council Meeting

STAFF REPORT
Meeting: Special City Council Meeting - Oct 08 2026
Department: Community Development
Submitted by: Noah Rau, Interim City Manager
Emery Papp, Deputy Director of Community Development;
☐ Receive and File ☐ Consent Calendar ☐ Business Item ☐ Public Hearing TITLE:

Zoning Ordinance Amendment (ZOA) 26-005, Industrial Development Standards – Introduction and first reading of an Ordinance of the City Council of the City of Hemet, California, Repealing and Restating Article XXX (Manufacturing Zones) of Chapter 90 (Zoning) of the Hemet Municipal Code RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

1. Open the public hearing; receive the staff report and the recommendation of the Planning Commission; take public testimony; and close the public hearing;

2. Find, on the basis of the analysis in this staff report and the entire record of proceedings, that adoption of the proposed ordinance (a) is not a "project" within the meaning of Public Resources Code section 21065 and State CEQA Guidelines section 15378, and is therefore not subject to the California Environmental Quality Act (CEQA) under State CEQA Guidelines section 15060(c)(2) and (c)(3); and, independently and in the alternative, (b) is exempt from CEQA under the common sense exemption of State CEQA Guidelines section 15061(b)(3); and (c) is exempt under State CEQA Guidelines sections 15307 and 15308 (Classes 7 and 8), and that none of the exceptions in State CEQA Guidelines section 15300.2 applies;

3. Introduce, read by title only, and waive further reading of the following ordinance (Attachment No. 1):

ORDINANCE NO. 2084 - AN ORDINANCE OF THE CITY OF HEMET, CALIFORNIA, REPEALING AND RESTATING ARTICLE XXX (MANUFACTURING ZONES) OF CHAPTER 90 (ZONING) OF THE HEMET MUNICIPAL CODE, INCLUDING A NEW DIVISION 2 (LOGISTICS, E-COMMERCE,

AND WAREHOUSE USES), TO ESTABLISH OBJECTIVE DEVELOPMENT, SITING, TRUCK

ACCESS, AND OPERATIONAL STANDARDS, A TIERED APPROVAL PROCESS, AND A COMMUNITY BENEFIT AND INCENTIVE FRAMEWORK FOR LOGISTICS USES IN THE B-P, M-1, AND M-2 ZONES; AMENDING THE MANUFACTURING ZONES LAND USE MATRIX (SECTION 90-1043), THE DEFINITIONS OF SECTION 90-4, AND RELATED PROVISIONS OF CHAPTER 90;

AUTHORIZING THE RENUMBERING OF ARTICLE XXXI (SENIOR HOUSING DESIGNATION) OF CHAPTER 90; IMPLEMENTING AND SUPPLEMENTING GOVERNMENT CODE SECTION 65098

7.B.

ET SEQ. (AB 98, STATS. 2024, CH. 931, AS AMENDED BY SB 415, STATS. 2025, CH. 316); AND

FINDING THAT THE ORDINANCE IS NOT A PROJECT UNDER, AND IS OTHERWISE EXEMPT

FROM, THE CALIFORNIA ENVIRONMENTAL QUALITY ACT

4. Direct the City Clerk to schedule the ordinance for second reading and adoption at the regular City Council meeting of October 13, 2026, and, upon adoption, direct staff to file a Notice of Exemption with the Riverside County Clerk within five working days.

EXECUTIVE SUMMARY:

This item asks the City Council to introduce a permanent ordinance regulating warehouses, distribution centers, e-commerce fulfillment centers, parcel delivery hubs, cold storage facilities, truck terminals, and truck and trailer yards (together, "logistics uses") in the City’s business park (B-P) and manufacturing (M-1 and M-2) zones. The ordinance would replace the City’s temporary warehouse moratorium. The moratorium expires on December 10, 2026. State law does not allow it to be extended again.

The ordinance does three main things:
 It sorts logistics projects by size into three tiers. Review becomes more rigorous as projects get larger. Small, locally oriented projects that meet every objective standard may be approved by staff. Mid-size projects require Site Development Review by the Community Development Director or the Planning Commission. Every project of 250,000 square feet or more requires a conditional use permit and a development agreement approved by the City Council.
 It sets clear, measurable standards that protect neighbors. These cover building setbacks from homes and mobilehome parks, loading dock placement, landscaped buffers and walls, lighting, noise, nighttime loading, truck idling, truck queuing, and truck routes. They are written as objective rules so that applicants, residents, and decision-makers can all see in advance what is required.
 It creates a voluntary community benefit program. Developers may earn limited incentives, such as a modest floor-area or height bonus, only by making recorded, enforceable commitments to the community. Examples include local hiring efforts, point-of-sale designation for sales tax, zero-emission equipment, and funding for road repairs.

The ordinance also implements two state laws. Assembly Bill 98 (2024) and Senate Bill 415 (2025) took effect January 1, 2026 and set statewide design, siting, and truck-routing standards for warehouses near homes, schools, and other sensitive locations. The ordinance incorporates those standards, adds local protections where state law permits, and positions the City to meet the separate state requirement to adopt a truck route ordinance by January 1, 2028.

The ordinance does not rezone any property and does not approve any project. Existing warehouses may continue to operate. Except for the logistics provisions and two narrow reclassifications (paper products and textile manufacturing), the existing manufacturing zone rules are carried forward without change.

At a Glance
Where it applies B-P, M-1, and M-2 zones, and specific plans or overlays that use those zones’ standards.

What it regulates
New logistics uses, significant expansions, changes in
operation or tenant, and reoccupancy of logistics buildings vacant more than 12 months.

Tier 1 (small)
Up to 50,000 sq. ft. (B-P) or 100,000 sq. ft. (M-1/M-2); owner-user, local business, or small-bay multi-tenant; staff approval under objective standards only.

Tier 2 (mid-size) Larger than Tier 1 and under 250,000 sq. ft.; Site

7.B.

Development Review by the Director or Planning
Commission, with mailed notice to neighbors within 1,000 feet.

Tier 3 (large)
250,000 sq. ft. or more; conditional use permit and
development agreement approved by the City Council
after a Planning Commission hearing.

Neighbor protections
Setbacks of 100 to 200 feet from homes and mobilehome
parks; dock placement limits; 50-foot landscaped buffers; lighting, noise, and nighttime loading limits; air filtration offers to nearby homes and schools.

Trucks
Heavy trucks limited to designated truck routes; no access through local residential streets; truck routing plans; threeminute idling limit; on-site queuing.

Community benefits Voluntary and recorded; required to be enforceable before any incentive is granted.

Existing facilities May continue. The ordinance applies to future expansions, changes, and reoccupancies.

Pending applications
Complete applications are processed under prior rules
unless the applicant elects the new rules. State
exemptions apply independently.

Environmental review
Staff recommends findings that the ordinance is not a
CEQA "project" and is otherwise exempt, because it
restricts rather than expands logistics development.

Timing
Two readings required. Adoption by [November 10, 2026]
allows the ordinance to take effect by December 10, 2026, when the moratorium expires.

BACKGROUND/ANALYSIS:

A. Logistics Development and Community Concerns
The Inland Empire hosts one of the largest concentrations of warehouse and distribution facilities in the nation. As sites closer to Interstates 10 and 215 have been developed, logistics developers have increasingly sought sites in the San Jacinto Valley. Hemet is served principally by State Route 74 and State Route 79. It has no interstate highway within its limits. Heavy-duty truck traffic to and from logistics facilities in and near the City therefore travels on state highways and City arterials, several of which pass through or next to residential neighborhoods, mobilehome parks, senior housing, and schools.

During the City Council’s consideration of the warehouse moratorium and a specific warehouse project in 2024, 2025, and 2026, residents raised concerns about truck traffic, diesel emissions and air quality, noise, light, roadway deterioration, and the concentration of large facilities near homes.

Heavy-duty diesel trucks and diesel equipment emit diesel particulate matter, which the State Air Resources Board has identified as a toxic air contaminant, and oxides of nitrogen, which contribute to ozone and fine particulate pollution. Hemet has a substantial senior population, much of it living in mobilehome parks and senior housing near the City’s commercial and industrial corridors.

B. The City’s Interim Moratorium
The City Council responded by adopting an interim urgency moratorium under Government Code section 65858 while staff prepared permanent regulations:

Date Action
October 2024 Special meeting: City Council first considered a moratorium proposal and continued the item.

November 2024 City Council directed that the moratorium apply only to applications received after its effective date, and not to

7.B.

projects already in the entitlement review process.

December 2024 City Council adopted a 45-day interim urgency moratorium January 2025 City Council extended the moratorium by 10 months and 15 days
October 2025
City Council issued the Alleviation Report required by
Government Code section 65858(d) and adopted a final
12-month extension through December 10, 2026.

Section 65858 limits an interim moratorium to a total of two years, consisting of an initial 45 days and two extensions. The City’s moratorium has reached that limit and cannot be extended again. When it expires, the current Manufacturing Zones Land Use Matrix will govern unless a permanent ordinance is in effect. Under that matrix, warehouses and product fulfillment centers under 400,000 square feet are permitted uses in all three zones.

C. State Law: AB 98 and SB 415
Assembly Bill 98 (Stats. 2024, ch. 931), signed September 29, 2024, added Government Code section 65098 et seq. and amended Government Code section 65302.02. Senate Bill 415 (Stats. 2025, ch. 316), signed October 3, 2025, amended and clarified those provisions. Both took effect January 1, 2026. Together, they:
 Establish design, setback, loading-bay orientation, truck entrance, and buffering standards for "logistics use developments" located near "sensitive receptors." Sensitive receptors include residences (including mobilehome spaces and senior housing), schools, daycare facilities, parks used by children, hospitals, and nursing homes (Gov. Code §§ 65098, 65098.1, 65098.2).
 Require on-site truck stacking, anti-idling and truck-route signage, and a truck routing plan before occupancy (Gov. Code §§ 65098.2.5, 65098.3, 65098.4).  Since January 1, 2026, require new logistics use developments to be sited on arterial, collector, or major roads, or on local roads that predominantly serve commercial, agricultural, or industrial uses (Gov. Code § 65098.2.7).
 Require jurisdictions outside the "Warehouse Concentration Region" with more than 50,000 residents to adopt a truck route ordinance by January 1, 2028. From that date, all proposed logistics use developments must be accessible by arterial roads, major thoroughfares, or roads that predominantly serve commercial, agricultural, or industrial uses (Gov. Code § 65098.2.8).  Prohibit local rules that would prevent a logistics use development from providing the physical features state law requires. Cities keep their authority to deny projects and to regulate land use more strictly in other respects (Gov. Code § 65098.5).
 Exempt logistics use developments whose local entitlement process began before September 30, 2024, or that were approved before the law took effect (Gov. Code § 65098.1.6).

The Warehouse Concentration Region consists of the unincorporated areas of Riverside and San Bernardino Counties and twelve named cities. Hemet is not among them. Hemet is therefore subject to the statewide standards and to the January 1, 2028 truck route ordinance deadline, but not to the region-specific requirements, including the circulation element update required by Government Code section 65302.02. Regional efforts led by the Southern California Association of Governments (SCAG) and the Western Riverside Council of Governments (WRCOG) to develop guidance, regional truck routes, and model ordinances are ongoing. The proposed ordinance is designed to accommodate their results.

D. Current Regulations
Article XXX (Manufacturing Zones) of Chapter 90 establishes the B-P, M-1, and M-2 zones, the Manufacturing Zones Land Use Matrix (Section 90-1043), development standards (Sections 90-1045 and 90-1046), site development review requirements (Section 90-1047), performance standards (Section 90-1048), exterior color standards (Section 90-1049), and appeals (Section 90-1050).

Item H.37 of the current matrix permits "warehouses and product fulfillment centers" under 400,000 square feet in all three zones. Facilities of 400,000 square feet or more are conditionally permitted in

7.B.

B-P and administratively permitted in M-1 and M-2. The current code contains no logistics-specific standards for proximity to homes, truck routing, idling, loading operations, or community benefits.

DISCUSSION:

Structure of the Ordinance
The ordinance repeals Article XXX in its entirety and restates it as Exhibit A to the ordinance. The restated Article XXX has two divisions:

Division 1 (Manufacturing Zones Generally), Sections 90-1041 through 90-1050. This carries forward the existing text of Article XXX, with the limited amendments described in Section I below.

Division 2 (Logistics, E-Commerce, and Warehouse Uses), Sections 90-1051 through 90-1100.

This contains the new logistics regulations, organized into seven subdivisions: (I) General Provisions; (II) Zones, Tiers, and Approval Procedures; (III) Objective Development Standards; (IV) Truck Routes, Roadway Access, and Operational Standards; (V) Community Benefits and Economic Development Incentives; (VI) Compliance, Monitoring, and Enforcement; and (VII) Existing Uses, Transition, and Review.

Restating the article keeps all industrial zoning rules in one place. Because the new sections occupy numbers now used by Article XXXI (Senior Housing Designation), the ordinance directs the City Clerk to renumber Article XXXI to begin at Section 90-1110, without any change to its text. Section 2 of the ordinance also provides that unchanged Division 1 provisions are continuations of existing law, not new enactments, so existing permits and approvals are unaffected.

What Counts as a "Logistics Use"
The ordinance defines eight logistics use classes: Storage Warehouse; Distribution Center; ECommerce Fulfillment Center; Parcel Hub/Last-Mile Delivery Station; Cold Storage Facility; Truck Terminal/Cross-Dock; Truck and Trailer Parking/Storage Yard; and Small-Bay Flex Industrial (Section 90-1056). The Director classifies each proposal using objective information the applicant must provide: truck trips by vehicle class, fleet mix, hours of operation, dock ratio, and refrigerated area (Section 90-1057).

Speculative buildings. A building proposed without an identified tenant is evaluated as the most intensive use allowed in its zone and tier, unless the owner records a covenant limiting its use. This prevents a project from being approved as a low-impact warehouse and later occupied by a highimpact operation.

Manufacturing. A manufacturing business whose warehousing is no more than 40 percent of its floor area and serves its own production is not a logistics use. It continues to be regulated by the Land Use Matrix, consistent with SB 415’s focus on buildings "primarily used as a warehouse." Exclusions. Accessory storage for retail, office, or service uses (up to 25 percent of floor area), personal mini-storage, and public agency facilities are excluded (Section 90-1053(b)).

No piecemealing. Buildings in the same logistics park, on commonly controlled adjoining parcels, or proposed by the same or affiliated applicants within five years are counted together when determining size and tier (Section 90-1053(c)).

Three Tiers, Matched to Project Size
Tier 1 (Small) Tier 2 (Mid-Size) Tier 3 (Large)
Size
Up to 50,000 sq. ft. (B-P) or
100,000 sq. ft. (M-1/M-2),
plus other criteria
Above Tier 1 and under
250,000 sq. ft.
250,000 sq. ft. or more
(aggregated)
Permit Ministerial Logistics Site
Development Review
Logistics Site Development
Review
Logistics Conditional Use
Permit and Development
Agreement
Decision-maker Community Development
Director
Director, or Planning
Commission when specified
triggers apply
City Council, after Planning
Commission hearing and
recommendation

7.B.

Public notice None (objective standards
only)
Mailed notice to owners
and occupants, including
mobilehome residents,
within 1,000 feet; 10-day
comment period
Neighborhood meeting;
Planning Commission and
City Council public hearings
Environmental review Ministerial; exempt from
CEQA
CEQA review, tiering from
program-level documents
where available
Project-level CEQA review,
including a Health Risk
Assessment
Appeal
Planning Commission
(limited to correct
application of standards)
Planning Commission; then
City Council City Council decision is final
Tier 1 is limited to projects that meet all of the following: (1) the size limit; (2) no parcel hub, cold storage, truck terminal, or trailer yard; (3) no more than one loading bay per 10,000 square feet; (4) occupancy by an owner-user or established local business, or a small-bay multi-tenant building with no unit over 35,000 square feet; (5) no loading bays on the building face nearest a sensitive receptor within 900 feet; and (6) no need for a rezoning, General Plan amendment, variance, or adjustment (Section 90-1059(a)). Tier 1 projects receive limited by-right benefits: a 50 percent application fee reduction, priority plan check, and deferral of City impact fees to occupancy (Section 90-1062(c)).

Tier 2 projects are decided by the Director unless a referral trigger applies (Section 90-1061(b)). The triggers are:
the project is in the B-P zone and exceeds 100,000 square feet; the project includes a parcel hub or cold storage;
the project is near sensitive receptors and requires a rezoning; the applicant requests incentives outside the established menu, or deviations beyond allowed limits; or
the applicant does not elect Director-level review by offering voluntary commitments.

In those cases the Planning Commission decides.

Tier 3 projects require City Council approval of both a conditional use permit and a development agreement (Section 90-1064). A Tier 3 project may be approved in the B-P zone only on a site of at least 40 contiguous acres with direct access to a designated truck route, no sensitive receptor within 900 feet of any loading bay, and no heavy-truck access over local residential streets (Section 90- 1060(c)).

Use matrix highlights (Table 90-1060-1):

Parcel hubs and cold storage require Planning Commission review in B-P and M-1, and are prohibited at Tier 3 scale in B-P.

Truck terminals and cross-docks are prohibited in B-P and require a conditional use permit and development agreement in M-1 and M-2.

Stand-alone truck and trailer yards are prohibited in B-P and M-1 and require a conditional use permit in M-2.

Elevated review. A project with loading bays within 900 feet of a sensitive receptor that is on land not zoned for industry, or that requires a rezoning, may be approved only by the City Council (Section 90- 1059(d)).

Standards That Protect Neighbors
Division 2 incorporates the state standards by reference and adds local standards that are objective and measurable. Key standards include:

Topic Requirement
State proximity standards
Projects subject to Gov. Code § 65098.1 must meet the
applicable state design (21st Century or Tier 1 21st
Century warehouse), loading-bay setback and orientation, truck entrance, and buffer requirements (Sec. 90-1069(a)).

7.B.

Building setbacks
Minimum 100 feet (B-P), 150 feet (M-1), or 200 feet (M-2) from any residential zone or mobilehome park (Table 90- 1068-1).

Loading dock placement
In B-P and M-1, no loading bays on a building face that faces a residential zone or mobilehome park within 1,000 feet (Sec. 90-1069(d)).

Buffers and walls
State buffer where it applies; otherwise a 50-foot
landscaped buffer with a masonry wall and 36-inch-box
evergreen trees every 30 feet along residential and
mobilehome boundaries (Sec. 90-1070). 14-foot screen
walls where truck courts are visible from streets (Sec. 90- 1072(b)).

Truck queuing
Truck gates at least 150 feet (or three truck lengths) inside the property line; no queuing on public streets; one trailer space per loading bay (Sec. 90-1071).

Lighting
Full-cutoff fixtures; no more than 0.1 footcandle at a
sensitive receptor’s property line; dimming after 10:00 p.m. (Sec. 90-1074(a)).

Noise and night loading
The stricter of the City standard or 55 dBA (day) / 45 dBA (night) at sensitive receptors; no loading between 10:00 p.m. and 7:00 a.m. within 500 feet of a sensitive receptor unless a noise study demonstrates compliance (Sec. 90-
1074(b)-(c)).

Idling and equipment
Three-minute on-site idling limit; zero-emission yard
equipment for Tier 2 and Tier 3 projects where
commercially available; electrical hookups for refrigerated trucks (Secs. 90-1072(c), 90-1075(d), 90-1081).

Health risk and air filtration
Health Risk Assessment for Tier 3 projects and screening for Tier 2 projects near receptors. Offer to install and maintain MERV 13 air filtration, for five years, in homes (including mobilehomes) and schools within 1,000 feet of loading bays (Sec. 90-1082).

Clean energy
Rooftop solar sized to building demand or available roof area; passenger EV charging above state code; electrical readiness for future truck charging (Sec. 90-1075).

Airport compatibility
Projects near Hemet-Ryan Airport must comply with the
Airport Land Use Compatibility Plan; height and floor-area bonuses are unavailable where they would conflict with
that plan or FAA airspace surfaces (Sec. 90-1077).

Community liaison
Designated liaison, a 24-hour complaint line, written
responses, and an annual complaint log (Sec. 90-
1082(c)).

Truck Routes and Roads
State law requires the City to adopt a separate truck route ordinance by January 1, 2028 (Gov. Code § 65098.2.8). Staff will bring that ordinance forward as a companion amendment to Chapter 78 (Traffic and Vehicles). Division 2 is drafted to work with it:

Interim routes. Until the truck route ordinance takes effect, heavy trucks serving new logistics uses are limited to State Routes 74 and 79, the truck routes designated in Section 78-61, and expressways and specified arterial classifications. They may not use local residential streets (Section 90-1078(c)).

Roadway access. Tier 2 and Tier 3 projects, and Tier 1 projects with more than five loading bays, must take primary truck access from an expressway, a specified arterial, or a commercial-industrial local road, and must reach a designated truck route without traversing a local residential street (Section 90-1079). This local standard applies now and is in addition to the state siting and access requirements.

Truck routing plans. Every logistics use development must have a truck routing plan approved before occupancy, as state law requires. Larger projects must also identify prohibited streets, carrier distribution, and anti-queuing measures. Existing facilities with more than five loading bays must file

7.B.

plans within 12 months after the truck route ordinance takes effect (Sections 90-1080 and 90- 1097(d)).

Road impacts. Projects construct or pay their fair share of needed improvements. The City Council may adopt a Logistics Impact Fee by separate resolution after a nexus study, as the Mitigation Fee Act requires. Tier 2 and Tier 3 projects must fund ongoing street maintenance through a community facilities district or an equivalent covenant (Sections 90-1084 and 90-1085).

Community Benefits and Incentives
Division 2 keeps three legal channels separate (Section 90-1086):

Baseline mitigation is mandatory. Each requirement must be connected and proportional to the project’s impacts.

Voluntary commitments are offered by the applicant in exchange for incentives, scored on a points menu (Table 90-1090-1), and secured by recorded covenants with remedies.

Development agreement terms for Tier 3 projects are negotiated consideration for the vested rights a development agreement provides.

The ordinance states expressly that no voluntary commitment may be required as a condition of an approval the applicant is otherwise entitled to, aZZZnd that declining to offer one is not a ground for denial. Available incentives are modest:
up to 0.10 additional floor area ratio;
up to 10 feet (M-1) or 15 feet (M-2) of additional height, subject to airport limits; up to a 20 percent passenger parking reduction where justified; expedited plan check and impact fee deferral;
a 12-month entitlement extension; and
development agreement vesting.

No incentive may relax state standards, buffers, proximity standards, truck route or access requirements, or health protections (Section 90-1090(h)). Commitments that may earn points include:
point-of-sale designation for sales tax purposes;
jobs density of at least 10 full-time-equivalent positions per 100,000 square feet; first-source referral;
a 50 percent local hire goal pursued through defined good-faith efforts; zero-emission equipment and trucks;
additional solar;
expanded air filtration;
workforce training; and
road rehabilitation funding beyond the project’s fair share.

Tier 3 development agreements must include point-of-sale commitments, employment commitments, a Municipal Services Payment calibrated by a Fiscal Impact Analysis, clean-fleet commitments, reporting, and clawbacks (Sections 90-1087 through 90-1091). Any economic development subsidy is subject to the disclosure and hearing requirements of Government Code sections 53083 and 53083.1 (Section 90-1092).

Compliance and Enforcement
Operators of Tier 2 and Tier 3 projects, and of Tier 1 projects with voluntary commitments, must:
obtain approval of an Operational Compliance Plan before occupancy; file annual reports by March 1 covering employment, local hiring, point-of-sale status, fleet and equipment, complaints, truck-route compliance data, and air filtration offers; and for Tier 3 projects, obtain independent verification of the annual report.

New tenants or operational changes require 30 days’ notice, an updated truck routing plan, and, where the use intensifies, the approval required for the new use class and tier. New operators must assume recorded covenants before receiving a business license (Sections 90-1093 and 90-1094).

Remedies include administrative citations, permit modification or revocation after a hearing, development agreement default remedies, repayment of incentives, liquidated damages, and

7.B.

nuisance abatement (Section 90-1096). Monitoring costs are recoverable through fees adopted by resolution (Section 90-1095).

Existing Facilities, Pending Applications, and Vested Rights Lawfully established logistics uses may continue, subject to the City’s existing nonconforming use provisions (Article II, Division 2 of Chapter 90). Division 2 applies to an existing facility only upon:
an addition of 10 percent or 25,000 square feet, whichever is less; reoccupancy after more than 12 months of vacancy; or
a change of tenant or operation subject to Section 90-1094.

Owners of existing facilities may earn incentives for voluntary retrofits (Section 90-1097).

An application deemed complete before the ordinance takes effect is processed under the rules in effect when it was deemed complete, unless the applicant elects to proceed under Division 2. Rights vested under a vesting tentative map, development agreement, or building permit are preserved. The state exemptions for projects whose entitlement process began before September 30, 2024 apply independently (Section 90-1098).

Changes to Existing Article XXX (Division 1)
Division 1 restates current Sections 90-1041 through 90-1050 verbatim, except for the following:

Section 90-1043 introduction. The introductory paragraph is rewritten to explain the matrix symbols:
"P" uses are permitted by right; "A" uses require an Administrative Use Permit; "C" uses require a Conditional Use Permit; "X" uses are not permitted. It also adds a sentence providing that logistics uses are permitted, reviewed, and regulated under Division 2, which controls over any conflicting provision.

Matrix item H.37. "Warehouses and product fulfillment centers" and its two size categories are replaced with a single "Logistics uses" entry that refers to Table 90-1060-1 and Division 2.

Paper products manufacturing and textile manufacturing. These change from permitted (P) in all three zones to not permitted in B-P, conditionally permitted in M-1, and permitted in M-2. Any existing facility affected by this change may continue as a legal nonconforming use under Article II, Division 2.

Cross-references. A sentence referring to Division 2 is added to Section 90-1045 (introductory paragraph), Section 90-1046(e) (exterior lighting), Section 90-1046(g)(8) (loading areas), and Section 90-1048(1) (noise).

Section 3 of the ordinance also adds a definition cross-reference to Section 90-4, and a crossreference to Division 2 in Section 90-48 (site development review), Article XL (off-street parking), and Section 90-1702 (landscaping).

Relationship to State Law and Legal Framework
Division 2 is drafted to implement and supplement state law, not to frustrate it. Key features of the drafting:

State law incorporated. Government Code section 65098 et seq. is incorporated "as amended from time to time." Where state and local standards both apply, the more protective standard governs.

Non-frustration. No local standard may be applied to prevent a project from providing a physical feature state law requires (Section 90-1054(b); Gov. Code § 65098.5(b)).

WCR contingency. If the Legislature adds Hemet to the Warehouse Concentration Region, the region-specific requirements apply automatically, and staff must return with conforming amendments (Section 90-1055).

Several features address recognized legal constraints:

Objective standards. Tier 1 contains only objective, measurable standards, so that ministerial approval involves no discretionary judgment.

Exactions. Mandatory conditions and fees must have an essential nexus to, and be roughly proportional to, project impacts, including legislatively adopted fee. The Logistics Impact Fee therefore awaits a nexus study, and all other benefits are voluntary or contractual.

7.B.

Employment provisions. Local hiring is a good-faith goal, not a residency requirement. The ordinance imposes no wage, labor-relations, or benefit-plan requirements, which federal labor and benefits law may preempt.

Truck fleets. Commitments about truck fleet emissions beyond state and federal requirements are voluntary only, given Clean Air Act limits on local vehicle emission standards.

Planning Commission Recommendation
On October 6, 2026, the City of Hemet Planning Commission conducted a duly noticed public hearing to consider the proposed Ordinance. The Planning Commission considered the staff report, draft Ordinance, public testimony, and written comments submitted as part of the public hearing process.

Following publication of the agenda and prior to the public hearing, written comments were received from the following:

1. Jean Faenza, Hemet NOW

2. Jean Faenza, Hemet NOW (follow-up comments)

3. City Attorney

4. Consultant representing Hemet Industrial Business Park and Santa Fe Gateway

5. Paul W. Pintingaro, Esq. legal counsel for the Lansing Companies In addition to the written comments, members of the public addressed the Planning Commission regarding the proposed Ordinance. Their comments are generally summarized as follows:

1. Mitzi Carver expressed opposition to additional warehouse development in the City and concern regarding the potential visual impacts of industrial buildings on the surrounding area. She also expressed support for extending the existing moratorium.

2. Jean Faenza expressed concern regarding the level of community outreach conducted prior to the public hearing; the absence of an apparent maximum building size for Tier 3 developments; and the potential for projects to be divided into smaller buildings in a manner that could avoid requirements otherwise applicable to larger Tier 2 or Tier 3 projects.

3. Chris Hofeditz expressed opposition to warehouse and logistics development and stated his belief that this position is shared by many Hemet residents.

4. Harlo Lenning expressed concern regarding the potential effects of industrial logistics and warehouse development on sensitive populations, including elderly residents and individuals with chronic medical conditions.

5. Lori Van Arsdale discussed the effect of the Riverside County Multiple Species Habitat Conservation Plan on the availability of industrially designated property, stating that implementation of the plan removed a significant amount of previously designated industrial land from potential development.

6. Shaul Rosen-Rager requested that the Planning Commission continue the item to allow additional time for community input and expressed concern that the public hearing format did not provide an adequate opportunity for two-way discussion. He also urged the City to consider lessons from prior development decisions, including the Kirby project.

7. Ann Smith asked the Planning Commission to consider the County's proposed expressway plans and the potential implications of future regional transportation connections for industrial and logistics

7.B.

development. She stated that the proposed Ordinance could be more restrictive but represented an improvement over the City's existing regulations.

Following the close of the public hearing, the Planning Commission deliberated and considered the entirety of the public record. Commissioner Viramontes made a motion, seconded by Vice-Chair Wuerth, to recommend that the City Council approve the proposed Ordinance, subject to incorporation of the modifications recommended by the City Attorney. The motion carried by a 4-0 vote.

GENERAL PLAN CONSISTENCY:

As a general law city, Hemet must keep its zoning ordinances consistent with its General Plan (Gov.

Code § 65860). Staff has reviewed the ordinance against the Hemet General Plan 2030 and finds it consistent, for the following reasons:

Land Use. The ordinance implements the Business Park and Industrial land use designations through the zones that carry them out (B-P, M-1, and M-2). It does not change any land use designation or zoning map boundary, and it directs the most intensive logistics uses to the M-2 zone.

Circulation. The ordinance channels heavy-duty truck traffic onto state highways and designated arterial routes, prohibits truck access through local residential streets, requires truck routing plans, and establishes a framework for funding truck-route pavement and intersection improvements.

Environmental Justice. The ordinance reduces pollution exposure for residents near industrial corridors. It expressly protects mobilehome parks and senior housing, requires notice to their residents, offers air filtration to nearby homes and schools, and requires health risk assessment for larger projects near receptors. This furthers the element’s objectives of reducing pollution burdens and promoting meaningful public participation (Gov. Code § 65302(h)).

Community Design and economic development policies. The ordinance adds objective architectural, screening, and landscaping standards. It encourages local employment, point-of-sale designation, and workforce training through voluntary, enforceable commitments.

ENVIRONMENTAL REVIEW (CEQA):

Staff recommends three independent findings, supported by the following facts in the record.

Finding 1: The ordinance is not a "project" (Guidelines §§ 15060(c)(2), (c)(3), 15378) The ordinance does not approve, entitle, or authorize construction or operation of any logistics use or other development on any site. Each future project requires its own application and approval.

The ordinance does not amend the zoning map, rezone property, or increase the land area in which logistics uses may locate.

Under current law, warehouses and fulfillment centers under 400,000 square feet are permitted uses in all three zones. The ordinance subjects logistics uses to equal or more demanding review. It limits staff-level approval to small projects (50,000 or 100,000 square feet) that meet additional objective criteria, and it prohibits several logistics use classes in zones where they are currently allowed.

The ordinance adds siting, buffering, loading dock, truck access and routing, idling, lighting, noise, zero-emission equipment, health risk, and air filtration requirements that do not exist today. Each of these reduces, rather than increases, the environmental effects of logistics uses.

The two non-logistics changes to the Land Use Matrix (paper products and textile manufacturing) are restrictions that reduce where those uses may be established.

The ordinance implements state standards that apply statewide. Because comparable standards apply to logistics development in every other jurisdiction, any relocation of logistics development elsewhere as a result of this ordinance, and any resulting environmental effect, is speculative and not reasonably foreseeable.

Finding 2: Common sense exemption (Guidelines § 15061(b)(3)) Independently, it can be seen with certainty that there is no possibility the ordinance may have a significant effect on the environment, for the reasons stated in Finding 1. The California Supreme

7.B.

Court has upheld reliance on this exemption for land use regulations that restrict development and do not authorize new physical change, and has treated claims that such regulations would displace development to other locations as speculative.

The ordinance’s modest incentives do not change this conclusion, for three reasons:
they are available only in exchange for enforceable commitments; they cannot relax any environmental or health protection (Section 90-1090(h)); and they are subject to the environmental review required for each future discretionary project.

Finding 3: Classes 7 and 8 (Guidelines §§ 15307, 15308) Independently, the ordinance is an action by a regulatory agency, authorized by state law (Gov. Code § 65098 et seq.) and local ordinance, to assure the maintenance, enhancement, and protection of natural resources and the environment, including air quality and public health, through regulatory procedures that protect the environment. The ordinance does not relax environmental standards; it adds them. None of the exceptions in Guidelines section 15300.2 applies:
the ordinance applies prospectively and citywide, and does not authorize any particular project in any particular location;
there are no unusual circumstances creating a reasonable possibility of a significant effect; there is no cumulative impact from successive projects of the same type in the same place; and the ordinance does not affect any scenic highway, hazardous waste site, or historical resource.

Following adoption, staff will file a Notice of Exemption. Filing shortens the period to challenge the City’s CEQA determination to 35 days (Pub. Resources Code § 21167(d)).

PREVIOUS COUNCIL ACTION:

City Council, October 28, 2025, Agenda Item 15.A.
https://hemetca.civicweb.net/document/225291/_p%20style_textalign_justify;__Extension%20of%20an%20.pd?handle5BE09BDA39FA444C881B3C149AF776DC City Council, January 14, 2025, Agenda Item 15.C.
https://hemetca.civicweb.net/document/213803/_span%20style_textalign_justify;__Extension%20of%20.pd?handle0799282A6B974EECA882F1F0DE0F7576 City Council, December 10, 2024, Agenda Item 12.B.
https://hemetca.civicweb.net/document/210034/_p%20style_textalign_justify;___span%20style_tex.pd?handleF6EC1F796B7D4E219A6B5620EEF73F59 City Council, November 12, 2024, Agenda Item 16.A.
https://hemetca.civicweb.net/document/208894/_p%20style_textalign_justify;__Preliminary%20Over.pd?handleFE463789C60748E8A69CCAF381F32BDF City Council, October 12, 2024, Agenda Item 6.A.
https://hemetca.civicweb.net/document/208290/_p%20style_textalign_justify;__Adoption%20of%20an%20U.pd?handleF91EEFB5A9084EDEBF6FC9938B7813AB 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.

7.B.

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.

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

Objective 3: Develop programs to offer support to the community's businesses GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 1: Operate in a financially sustainable manner.

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

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

FISCAL IMPACT:

Introduction and adoption of the ordinance require no General Fund appropriation. Staff time to prepare the ordinance has been absorbed within the Community Development Department’s adopted budget. Implementation will involve the following:
 Application and monitoring fees. Staff will return with a resolution amending the master fee schedule to establish application fees for the new permit types, and monitoring and costrecovery fees and deposits, so that administration and enforcement costs are recovered from applicants and operators to the extent permitted by law (Section 90-1095; Gov. Code § 66014).
 Logistics Impact Fee. A nexus study must be prepared before the City Council may consider a Logistics Impact Fee.
 Project-specific revenues. Point-of-sale designations, Municipal Services Payments, and community facilities district special taxes would arise only from future project approvals. They are not estimated here.
 Tier 1 incentives. The 50 percent application fee reduction for Tier 1 projects is expected to have a minor effect on fee revenue.

ATTACHMENT(S):

Attachment No. 1 - Ordinance No. 2084

7.B.

CITY OF HEMET ORDINANCE NO. 2084 1
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CITY OF HEMET

HEMET, CALIFORNIA
ORDINANCE NO. 2084

AN ORDINANCE OF THE CITY OF HEMET, CALIFORNIA, REPEALING

AND RESTATING ARTICLE XXX (MANUFACTURING ZONES) OF
CHAPTER 90 (ZONING) OF THE HEMET MUNICIPAL CODE,
INCLUDING A NEW DIVISION 2 (LOGISTICS, E-COMMERCE, AND

WAREHOUSE USES), TO ESTABLISH OBJECTIVE DEVELOPMENT,

SITING, TRUCK ACCESS, AND OPERATIONAL STANDARDS, A

TIERED APPROVAL PROCESS, AND A COMMUNITY BENEFIT AND
INCENTIVE FRAMEWORK FOR LOGISTICS USES IN THE B-P, M-1, AND M-2 ZONES; AMENDING THE MANUFACTURING ZONES LAND
USE MATRIX (SECTION 90-1043), THE DEFINITIONS OF SECTION 90- 4, AND RELATED PROVISIONS OF CHAPTER 90; AUTHORIZING THE

RENUMBERING OF ARTICLE XXXI (SENIOR HOUSING
DESIGNATION) OF CHAPTER 90; IMPLEMENTING AND
SUPPLEMENTING GOVERNMENT CODE SECTION 65098 ET SEQ.
(AB 98, STATS. 2024, CH. 931, AS AMENDED BY SB 415, STATS. 2025, CH. 316); AND FINDING THAT THE ORDINANCE IS NOT A

PROJECT UNDER, AND IS OTHERWISE EXEMPT FROM, THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Hemet (“City”) is a general law city located in the San Jacinto Valley of western Riverside County, within the Inland Empire, which has experienced one of the most concentrated build-outs of warehouse, distribution, and fulfillment facilities in the United States, and the logistics sector continues to seek sites in the San Jacinto Valley; and
WHEREAS, the City is served principally by State Route 74 and State Route 79, and has no interstate highway within its limits, so that heavy-duty truck traffic generated by logistics uses in and near the City travels on state highways and City arterials, a number of which pass through or adjacent to residential neighborhoods, mobilehome parks, senior housing, and schools; and
WHEREAS, heavy-duty diesel trucks and diesel-powered equipment associated with logistics uses emit diesel particulate matter, which the State Air Resources Board has identified as a toxic air contaminant, and oxides of nitrogen, a precursor to ozone and fine particulate matter, and the South Coast Air Basin, in which the City is located, does not attain federal and state ozone standards; and
WHEREAS, residences, mobilehome parks, senior housing, schools, daycare facilities, parks used by children, and health care facilities located near loading bays,

7.B.

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truck courts, and truck routes experience disproportionate exposure to diesel emissions, noise, vibration, and light; and
WHEREAS, the City receives a limited share of the one-percent ad valorem property tax levied on property within its boundaries, and warehouse and distribution facilities generate limited local sales and use tax revenue unless the facility is designated as a place of sale for local tax purposes, while heavy-duty truck traffic imposes pavement and maintenance costs on City streets that are disproportionate to those of passenger vehicles; and
WHEREAS, the City has a jobs-housing imbalance with a high rate of outcommuting and locally based logistics employment can reduce commute distances and provide entry-level and skilled employment opportunities for City residents, although jobs density in logistics facilities is declining as automation increases; and WHEREAS, Assembly Bill 98 (Stats. 2024, ch. 931) added Government Code section 65098 et seq. and amended Government Code section 65302.02, and Senate Bill 415 (Stats. 2025, ch. 316) amended those provisions and added Government Code sections 65098.1.6, 65098.2.8, and other provisions, establishing, commencing January 1, 2026, statewide design, siting, buffering, signage, and truck routing standards for logistics use developments; and
WHEREAS, Government Code section 65098 defines the “warehouse concentration region” to include the unincorporated areas of the Counties of Riverside and San Bernardino and twelve named cities, and the City is not among the named cities, so that the City is not within the warehouse concentration region; and WHEREAS, because the City is not within the warehouse concentration region and its population exceeds 50,000 persons, Government Code section 65098.2.8 requires the City to adopt, on or before January 1, 2028, an ordinance establishing truck routes that avoid residential areas and sensitive receptors, and further provides that, on and after January 1, 2028, all proposed logistics use developments must be accessible via arterial roads, major thoroughfares, or local roads that predominantly serve commercial, agricultural, or industrial uses; and
WHEREAS, the City intends by this Ordinance to implement and supplement, and not to frustrate, the standards of Government Code section 65098 et seq., and this Ordinance expressly provides that no local standard shall be applied to prohibit or physically preclude any physical feature of a logistics use development required by the provisions identified in Government Code section 65098.5(b); and WHEREAS, the City Council finds that clear, objective, and predictable standards reduce entitlement risk, shorten processing times, and allow small-scale, locally focused, job-creating facilities to be approved ministerially, while scaling review to the size and intensity of larger facilities; and
WHEREAS, Government Code section 65302(h) requires the City’s General Plan to address environmental justice if the City has disadvantaged communities, and the

7.B.

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City has identified disadvantaged communities within its boundaries in and this Ordinance implements policies of that element; and
WHEREAS, on October 6, 2026, the Planning Commission of the City of Hemet held a duly noticed public hearing on this Ordinance, considered all written and oral testimony, and made recommendation to the City Council regarding the adoption of this Ordinance; and
WHEREAS, on October 13, 2026, the City Council held a duly noticed public hearing on this Ordinance, at which it considered the Planning Commission’s recommendation, the staff report, the environmental documentation described in Section 5, and all written and oral testimony presented; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

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

SECTION 1. Recitals and Findings. The City Council finds that the foregoing recitals are true and correct and incorporates them into this Ordinance as findings. The City Council further finds that this Ordinance is a proper exercise of the City’s police power; that the standards, procedures, and requirements established by this Ordinance bear a reasonable relationship to the protection of the public health, safety, and welfare; and that the Ordinance is consistent with the Hemet General Plan for the reasons stated in Section 4.

SECTION 2. Repeal and Restatement of Article XXX; Renumbering of Article XXXI.

A. Repeal and restatement. Article XXX (Manufacturing Zones) of Chapter 90 (Zoning) of the Hemet Municipal Code is hereby repealed in its entirety and restated to read as set forth in Exhibit A, which is attached to this Ordinance and incorporated into it by this reference. As restated, Article XXX consists of Division 1 (Manufacturing Zones Generally), Sections 90-1041 through 90-1050; Division 2 (Logistics, E-Commerce, and Warehouse Uses), Sections 90-1051 through 90- 1100; and reserved Sections 90-1101 through 90-1109.

B. Continuation of existing provisions. The provisions of Division 1 of Article XXX, as restated by this Ordinance, that are the same as provisions of Article XXX in effect immediately before the effective date of this Ordinance shall be construed as restatements and continuations of those provisions, and not as new enactments. Except as provided in Division 2 of Article XXX, nothing in this Ordinance affects any permit or approval issued, or any violation, proceeding, or obligation arising, under Article XXX before the effective date of this Ordinance.

7.B.

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C. Renumbering of Article XXXI. Sections 90-1081 through 90-1100 of Article XXX, as restated, overlap section numbers currently assigned to Article XXXI (Senior Housing Designation) of Chapter 90. Effective on the effective date of this Ordinance, the City Clerk is authorized and directed: (1) to renumber each section of Article XXXI, without any change to its text, by increasing its section number by twenty-nine (29), so that Section 90-1081 becomes Section 90-1110 and the remaining sections of Article XXXI follow sequentially in their existing order; (2) to renumber any reserved section range of Article XXXI correspondingly; and (3) to conform every reference to a renumbered section anywhere in the Hemet Municipal Code, including in any table, cross-reference, history note, or editor’s note. If a section number assigned under this subsection is already assigned to another section of the Code, the City Clerk shall assign the next available unused section numbers in sequence. The renumbering authorized by this subsection is not a substantive amendment of Article XXXI and does not affect the operation or effective date of any of its provisions.

D. Codification. The City Clerk and the City’s code publisher are authorized to make non-substantive changes necessary to codify this Ordinance, including supplying history notes and editor’s notes, correcting typographical errors and the numbering of tables and subsections, and conforming cross-references to the section numbers assigned by this Ordinance, without further action of the City Council.

SECTION 3. Conforming Amendments. Chapter 90 (Zoning) of the Hemet Municipal Code is further amended as follows:

A. Amendments within Article XXX. The following amendments to Division 1 of Article XXX are incorporated in Exhibit A: (1) item H.37 (“Warehouses and product fulfillment centers”) of the Manufacturing Zones Land Use Matrix in Section 90-1043, and its subitems, are replaced with item H.37 (“Logistics uses, including warehouses, distribution centers, product and e-commerce fulfillment centers, parcel hubs and last-mile delivery stations, cold storage facilities, truck terminals and cross-docks, truck and trailer parking/storage yards, and small-bay flex industrial buildings”), which refers to Table 90-1060-1 and Division 2 of Article XXX; (2) the first paragraph of Section 90-1043 is amended by adding at the end the sentence: “Logistics uses, as defined in Section 90-1056, are permitted, reviewed, and regulated as provided in Division 2 of this article, which controls over any conflicting provision of this article.”; and (3) the sentence “For logistics uses, see also Division 2 of this article; in the event of a conflict, Division 2 of this article controls.” is added at the end of the introductory paragraph of Section 90-1045, Section 90-1046, subsection (e) (exterior lighting), Section 90- 1046, subsection (g)(8) (loading areas), and Section 90-1048, subsection (1) (noise). No entries for truck terminals, cross-docks, or truck and trailer parking or storage yards appeared in the Manufacturing Zones Land Use Matrix.

B. Definitions. Section 90-4 is amended by adding the following definition in alphabetical order: “Logistics use, and each other term defined in Section 90-

7.B.

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1056, has the meaning given in Section 90-1056 for purposes of Division 2 of Article XXX and of each provision of this chapter that refers to Division 2 of Article XXX.”
C. Cross-references outside Article XXX. Each of the following is amended by adding, at the end of the section or subsection indicated, the sentence “For logistics uses, see also Division 2 of Article XXX; in the event of a conflict, Division 2 of Article XXX controls.”: (1) Section 90-48 (site development review); (2) Article XL (off-street parking); and (3) Article XLVIII (landscaping and irrigation), Section 90-1702.

D. Fees. The City Council directs staff to prepare, for consideration by resolution amending the City’s master fee schedule, (1) application fees for Ministerial Logistics Site Development Review, Logistics Site Development Review, and Logistics Conditional Use Permits; (2) monitoring and cost-recovery fees and deposits under Section 90-1095; and (3) a nexus study for a Logistics Impact Fee under Section 90-1084(b), to be established, if at all, by separate resolution in compliance with the Mitigation Fee Act.

SECTION 4. General Plan Consistency; Truck Routes.

A. Consistency. The City Council finds that this Ordinance is consistent with the Hemet General Plan, because it permits logistics uses only in zones that implement the General Plan’s business park and industrial land use designations, directs heavy-duty truck traffic to designated routes, protects sensitive receptors, and promotes local employment.

B. Truck route network. The truck route network required by Government Code section 65098.2.8 shall be established by an ordinance (the “Truck Route Ordinance”), amending Chapter 78 (Traffic and Vehicles) of the Hemet Municipal Code. The City Council intends that the Truck Route Ordinance take effect on or before January 1, 2028.

C. Conforming actions. The City Council directs staff (1) to prepare, for consideration by the Planning Commission and City Council, any amendment to the Circulation Element necessary to conform any truck route figure or policy of the Circulation Element to the Truck Route Ordinance; and (2) to publish the truck route network in geographic information system format and share it with warehouse operators, fleet operators, and truck drivers, as required by Government Code section 65098.2.8(e).

SECTION 5. California Environmental Quality Act.

A. Not a project. The City Council finds that the adoption of this Ordinance is not a “project” within the meaning of Public Resources Code section 21065 and section 15378 of the State CEQA Guidelines (California Code of Regulations, title 14, section 15000 et seq.), and is therefore not subject to the California Environmental Quality Act (“CEQA”) under section 15060(c)(2) and (c)(3) of the State CEQA Guidelines, because the Ordinance will not cause either a direct

7.B.

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physical change in the environment or a reasonably foreseeable indirect physical change in the environment. The City Council bases this finding on the following facts, each of which is supported by substantial evidence in the record, including the staff report:
(1) The Ordinance does not approve, entitle, or authorize the construction or operation of any logistics use or other development on any site. Each logistics use remains subject to a separate application and approval. (2) The Ordinance does not amend the zoning map, does not rezone any property, and does not increase the land area in which logistics uses may be located. Before this Ordinance, warehouses and product fulfillment centers of less than 400,000 square feet were permitted uses (P), and those of 400,000 square feet or more were administratively permitted (A) in the M-1 and M-2 zones and conditionally permitted (C) in the BP zone, under Section 90-1043. The Ordinance subjects those uses to the same or a more demanding level of review, and prohibits several classes of logistics uses in zones where they were previously permitted. (3) The Ordinance adds siting, design, buffering, loading bay, truck access, truck routing, idling, lighting, noise, zero-emission equipment, health risk assessment, and air filtration requirements that do not exist under Chapter 90 as it read before this Ordinance, and each of which reduces, rather than increases, the environmental effects of logistics uses. (4) The Ordinance implements and supplements Government Code section 65098 et seq., which applies statewide. Because comparable state standards apply to logistics use developments in every other jurisdiction, any relocation of logistics development from the City to other jurisdictions as a result of this Ordinance, and any environmental effect of such relocation, is speculative and not reasonably foreseeable.

B. Common sense exemption. Independently and in the alternative, the City Council finds that the Ordinance is exempt from CEQA under section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment, for the reasons stated in subsection A of this Section.

C. Regulatory protection of the environment. Independently and in the alternative, the City Council finds that the Ordinance is exempt from CEQA under sections 15307 and 15308 of the State CEQA Guidelines as an action by a regulatory agency, authorized by state law and local ordinance, to assure the maintenance, restoration, enhancement, or protection of natural resources and the environment, where the regulatory process involves procedures for protection of the environment, and that none of the exceptions in section 15300.2 of the State CEQA Guidelines applies.

D. Subsequent projects. Nothing in this Ordinance determines the environmental effect of any logistics use or other project. Each logistics use that requires a

7.B.

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discretionary approval shall be subject to environmental review under CEQA at the time of that approval.

E. Truck Route Ordinance. The determinations in this Section apply only to this Ordinance. The City Council will make a separate determination under CEQA for the Truck Route Ordinance described in Section 4(B).

G. Notice of Exemption. The City Council directs the Community Development Director to file a Notice of Exemption with the Clerk of the County of Riverside within five working days after adoption of this Ordinance, as provided in Public Resources Code section 21152(b) and section 15062 of the State CEQA Guidelines.

SECTION 6. Pending Applications. Applications for logistics uses that were determined or deemed complete before the effective date of this Ordinance shall be processed as provided in Section 90-1098(a), unless the applicant elects to proceed under Division 2 of Article XXX as provided in that section. Government Code sections 65098.1.5 and 65098.1.6 apply to such applications according to their terms, independently of this Ordinance.

SECTION 7. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance, or its application to any person or circumstance, is held invalid or unconstitutional by a court of competent jurisdiction, that holding shall not affect the validity of the remaining portions of this Ordinance or its application to other persons or circumstances. The City Council declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause, phrase, and portion of it, irrespective of the fact that any one or more of them is declared invalid or unconstitutional.

SECTION 8. Effective Date; Publication. This Ordinance shall take effect thirty (30) days after its adoption on second reading. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance, or a summary of it, to be published or posted in the manner required by Government Code section 36933.

INTRODUCED at the special meeting of Hemet City Council on October 8, 2026.

PASSED, APPROVED AND ADOPTED this 13th day of October, 2026. ___________________________
Linda Krupa, Mayor
APPROVED AS TO FORM: ATTEST:

7.B.

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________________________ __________________________
Steven Graham Pacifico, City Attorney Rosalia A. Butler, MMC, City Clerk

7.B.

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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 ordinance was adopted by the Hemet City Council on the 13th day of October, 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

7.B.

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EXHIBIT A
ORDINANCE NO. 2084
Restated Article XXX (Manufacturing Zones) of Chapter 90 (Zoning) of the Hemet Municipal Code
ARTICLE XXX. MANUFACTURING ZONES
DIVISION 1. MANUFACTURING ZONES GENERALLY
Sec. 90-1041. Purposes.

The manufacturing zones are established to:
(1) Provide properly located areas for industrial plants and related activities; protect industrial use areas from intrusion by residences and other incompatible uses; provide adequate space to meet the needs of modern industrial development, including off-street parking, loading and landscaping; provide sufficient open space around industrial structures to protect them from hazards of fire or explosion; minimize any detrimental impact on nearby residential or commercial properties; to minimize traffic congestion and to avoid overloading of utilities; and to provide opportunities for industrial plants to concentrate in mutually beneficial relationships to one another.
(2) Implement the industrial land use designations of the general plan: airport; business park, and industrial. The airport designation allows for airport operations and support services. The business park designation provides for single and multiple tenant light industrial, flex office, and office uses. The industrial designation accommodates a range of manufacturing, business office, assembly, fabrication, construction, transportation, logistics, and auto repair uses. (Ord. No. 1553, § 2, 1-28-97; Ord. No. 1875, § 1(Exh. 1A), 1-14-14) Sec. 90-1042. Zones established.

The industrial zones are established as follows:
(1) BP business park zone: To reserve appropriately located areas as shown on the zoning map to provide sites for single and multi-tenant light industrial, flex office, and office uses that include corporate and general business offices, medical uses, research and development, e-commerce, and new technology. Ancillary support commercial uses, restaurants, and hospitality uses that serve the business community may also be permitted. Businesses located with[in] the BP zone are generally located on large parcels in a campus like setting with attractive landscaping and architectural design. The BP zone is consistent with the business park, industrial, and certain identified mixed use designations of the general plan. (2) M-1 limited manufacturing zone: To reserve appropriately located areas as shown on the zoning map to provide sites for industries that can operate in close

7.B.

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proximity to commercial and residential uses with minimum adverse effects. The M-1 zone provides for a range of light manufacturing, assembly, fabrication, and woodworking uses. The M-1 zone is consistent with the Industrial designation of the general plan.
(3) M-2 heavy manufacturing zone: To reserve appropriately located areas as shown on the zoning map to provide sites for general manufacturing and industrial uses that will not adversely affect the residential character of the city. The M-2 zone provides for a range of manufacturing and processing uses, research and development, large single-tenant distribution and sales, and warehousing. The M2 zone is consistent with the industrial designation of the general plan. (Ord. No. 1553, § 2, 1-28-97; Ord. No. 1875, § 1(Exh. 1A), 1-14-14) Sec. 90-1043. Permitted uses.

The Table below identifies a "Land Use Matrix" for the BP, M-1, and M-2 zones. Within this matrix, uses identified with an “A” shall require approval of an Administrative Use Permit; uses identified with a “C” shall require approval of a Conditional Use Permit; uses identified with a “P” are permitted by right in the subject zone(s) subject to regulatory requirements at the time occupancy is requested; and uses identified with an “X” are not permitted within the subject zone(s). Whenever a business is conducted, a city business license is required pursuant to Chapter 18. Uses located within the Hemet-Ryan Airport Influence Area are subject to the requirements of the Riverside County Airport Land Use Plan, which may further limit structure heights or permitted uses depending upon the site location. All uses must be conducted indoors unless otherwise specified by the provisions of this article and are subject to performance standards pursuant to section 90-1048. Logistics uses, as defined in Section 90-1056, are permitted, reviewed, and regulated as provided in Division 2 of this article, which controls over any conflicting provision of this article.

MANUFACTURING ZONES LAND USE MATRIX
P = Permitted Use
A = Administratively Permitted Use
C = Conditionally Permitted Use
X = Not Permitted
Requirements: Additional or explanatory regulations or requirements ZONE BP M-1 M-2 Requirements
A. Agriculture and Natural Resources

1. Plant nurseries and greenhouses
a. Wholesale X A A
b. Retail X X X
B. Residential Uses—Not Permitted
C. Care Uses—Not Permitted
D. Education, Public Assembly, and Recreation Uses

1. Auditoriums, meeting halls, and conference
facilities—Public and Private
C C X

2. Churches, places of worship C X X

3. Commercial recreation facilities
a. Indoor (e.g., arcade, bowling, billiards, batting
cages, handball courts)
C C C

7.B.

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b. Outdoor (e.g., golf courses, lawn bowling,
baseball parks, basketball courts, sports
facilities, miniature golf)
C C C

4. Community Centers C X X

5. Educational facilities - private and public
a. Academic (Grades K-12) X X X
b. Colleges/Universities P X X
c. Commercial (trade) schools A A A

6. Studio such as art, music, design, recording, martial arts, dance or gymnastics.

P P X
E. Retail Trade Uses

1. Adult business X C C 18.352
90-18
90-4

2. General retail uses such banks, Financial Tech
Companies and personal services
P P P

3. Micro-brewery (brew-pub) that brews its own beer
for on-site consumption
C C X

4. Restaurants
a. Dining without sale of alcohol, live
entertainment or drive-through
P P X
b. Dining with sale of alcohol, live entertainment,
or drive-through
C C X

5. Retail sale of products manufactured on-site when
no more than 25 percent of floor area is used for
retail sales
P P P

6. Showroom design centers with limited retail sale of
products associated with home improvement and
decorating.

P P P
F. Service Uses

1. Ambulance services X P P

2. Animal services
a. Boarding/Training—Day only X A A
b. Boarding/Training—Overnight stays X C C
c. Grooming X A A
d. Veterinary clinic, animal hospital C C C

3. Biotechnology companies, laboratories, including
molecular biology, genomics, metabolomics,
proteomics, production of food and chemical, and
biofuels
C P P

4. Biotechnology companies, including laboratories
for medical and dental only
P P P

5. Business support services such as printing, copying, shipping, postal
P P P

6. Detention facility Sec. 90-83
a. Community detention facility for
unaccompanied minors
X X X Sec. 90-83
b. Private detention center X X X Sec. 90-83

7. Health and fitness centers
a. Small—Less than 3,000 sf P P P
b. Large—3,000 sf or greater A C C

8. Hotel C X X

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9. Laboratory for medical, dental, film, research and
similar uses
P P P

10. Medical and dental
a. Laboratories P P P
b. Offices and clinics P X X
c. Urgent care clinics with extended hours A A A

11. Mortuary with or without crematorium X C C

12. Offices—General
a. Professional P P P
b. Technological such as graphic design, GIS, film
editing
P P P

13. Research and development facilities such as
artificial intelligence, robotics, and computing
indoor only
P P P

14. Taxi, bus charter, dial-a-ride and other similar
transportation service
X P P
G. Vehicle Uses

1. Alternative fuels and recharging facilities A A A

2. Boat and marine equipment sales, rental, and repair C P P Sec. 90-897

3. Car rental services P P X

4. Car wash, full or self-serve X X X Exceptions Sec. 90- 1046

5. Electric recharging facilities P P P

6. Electric Battery Storage Technology, including
Electric Vehicle Battery Technology, stored,
developed or manufactured on-site.

C P P

7. Maintenance and repair services Sec. 90-897
a. Major repair/body work X P P
b. Minor maintenance, installation services, tire
services, smog certification
C P P

8. Service station, with or without allowable accessory uses
C C C Sec. 90-897

9. Truck scales X P P
H. Industrial Uses

1. Aircraft products P P P

2. Antique restoration P P P

3. Apparel manufacturing P P P

4. Beverage and tobacco products manufacturing C C C

5. Boat building C C P

6. Chemical product manufacture X C C

7. Commercial laundry, carpet cleaning, dying plant X C C

8. Electronics, electrical equipment, and appliance
manufacturing
P P P

9. Equipment manufacturing, assembly, service
(business, medical, scientific, musical)
P P P

10. Equipment rental X C P 90-1046(g)(2)

11. Food manufacturing C P P

12. Furniture and fixture manufacturing P P P

13. Leather products manufacturing P P P

7.B.

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14. Machinery manufacturing, heavy equipment C C P

15. Metal products manufacturing and fabrication P P P

16. Miscellaneous manufacturing—Light (e.g. jewelry,
office supplies, cosmetics, sporting goods)
P P P

17. Miscellaneous manufacturing—General (e.g. glass
and glass products, graphite and graphite products,
metal casting)
P P P

18. Mobile home and manufactured housing fabrication
and assembly
X X C

19. Paint manufacturing and paint shops X C C

20. Paper products manufacturing X C P

21. Petroleum products distribution and storage X X C

22. Pharmaceutical manufacturing P P P

23. Plastics and rubber products manufacturing;
injection molding
P P P

24. Printing and publishing P P P

25. Recycling Facilities 90-4
90-81
a. Donation box X X X
b. Reverse vending machine X X X
c. Collection facility X C C
d. Processing facility X C C

26. Research and development laboratories and
facilities
P P P

27. Scientific, optical, medical, dental, and similar uses equipment assembly
P P P

28. Scrap and dismantling yard X X C

29. Stationary battery facility indoor only P P P

30. Stone products manufacturing and processing X C C

31. Storage facility (personal, mini-storage) X C C 90-4 90-81

32. Storage yard for contractor equipment and materials X C A

33. Storage yard for off-site construction of mobile
units for sale and rental in conjunction with singletenant manufacturing and assembly facility X C C

34. Structural clay, pottery, and ceramic products C P P

35. Swap meet X X C Sec. 90-4
a. Indoor only X X C
b. Outdoor X X X

36. Textile manufacturing X C P

37. Logistics uses, including warehouses, distribution
centers, product and e-commerce fulfillment
centers, parcel hubs and last-mile delivery stations,
cold storage facilities, truck terminals and crossdocks, truck and trailer parking/storage yards, and small-bay flex industrial buildings
See Table
90-1060-1
See Table
90-1060-1
See Table
90-1060-1
Div. 2 of this article

38. Wholesale of goods and services (business to
business)
P P P

39. Wood products manufacturing P P P
I. Transportation, Communication and Infrastructure Uses

7.B.

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1. Parking facilities P P P Article XL

2. Recreational vehicle storage X C A 90-1046(g)(5)

3. Satellite dish antennas P P P

4. Solar energy systems - commercial or utility ground
mounted
X C C

5. Solar energy systems building mounted - noncommercial (serving the development site) A P P

6. Towing and impound service X C C

7. Transit stop shelter P P P

8. Utility facility C C C

9. Wireless communication facility
a. Minor facility A A A Article XLVI
b. Major facility C C C Article XLVI
J. Government Uses

1. Courthouse and associated facilities C C C

2. Office uses P P P

3. Post office P P P

4. Public safety facilities P P P

5. Public works facilities X P P
K. Metal Storage Containers

1. Temporary use per HMC 90-82 and 90-73 TUP TUP TUP 90-82 90-73

2. Permanent accessory structure - requires a metal
storage container permit per the requirements of
HMC 90-82
X P P 90-82
(Ord. No. 1553, § 2, 1-28-97; Ord. No. 1581, § 2, 2-24-98; Ord. No. 1591, § 1(4), 9-29-98; Ord.

No. 1601, § 1, 5-11-99; Ord. No. 1657, § 1, 2-12-02; Ord. No. 1875, § 1(Exh. 1A), 1-14-14; Ord.

No. 1909, § 1(Exh. E), 1-12-16; Ord. No. 1929, § 3(Exh. A-3), 6-13-17; Ord. No. 1943, § 1(Exh.

C), 2-27-18; Ord. No. 1949, § 11(Exh. A, 11), 9-25-18; Ord. No. 1969(2020-008), § 5, 5-12-20; Ord. No. 1972, § 2, 2-9-21; Ord. No. 1984, §§ 5—8, 12-14-21; Ord. No. 2030, § 3, 2-27-24; Ord.

No. 2043, § 3, 8-13-24)
Sec. 90-1044. Reserved.

Sec. 90-1045. General requirements.

Prior to the construction of any building or structure, a building permit shall be required in accordance with the latest city-adopted California Building Code. The following are minimum requirements, unless otherwise noted, and shall apply to all land, buildings and structures in their respective zones. All area dimensions are in square feet, unless otherwise noted. All linear dimensions are in feet, unless otherwise noted. For logistics uses, see also Division 2 of this article; in the event of a conflict, Division 2 of this article controls.

MANUFACTURING ZONE MINIMUM DEVELOPMENT STANDARDS
ZONE BP M-1 M-2 Requirements

1. Coverage (in percent) 65 60 60

2. Floor area ratio/FAR (total building area divided by total lot area), maximum

0.60 0.45 0.45

3. Net lot area 20,000 10,000 10,000

4. Lot width

7.B.

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a. Standard 100 65 65
b. Cul-de-sac/knuckle 65 40 40

5. Lot depth 150 150 150

6. Front yard setback to the building 20 15 15 Article XXXII Rear yard setback, landscaped
a. Adjacent to an alley or local street 10 10 10
b. Adjacent to a secondary street 15 15 15
c. Adjacent to residential zone 30 30 30 Sec. 1046(g)(1)

7. d. Not adjacent to an alley or street or residential zone
0 0 0
Side yard setback, landscaped
a. Interior side 0 0 0
b. Street side and corner 15 10 10

8. c. Adjacent to residential zone 30 30 30 Sec. 1046(g)(1)

9. Building and structure height 55 60 60 Sec. 1046(c)

10. Parking required Sec. 1046(g)(6)
Article XL

11. Signing permitted Sec. 1046(g)(7)
Article XXXVI

12. Landscaping requirements Sec. 1046(g)(6)
Article XLVIII
(Ord. No. 1553, § 2, 1-28-97; Ord. No. 1581, § 2, 2-24-98; Ord. No. 1875, § 1(Exh. 1A), 1-14- 14)
Sec. 90-1046. Site development requirements.
(a) Measurement of yards. A required yard or other open space around an existing or proposed building shall not be used to meet a required yard or other open space for any other building on an adjoining lot or building site.
(b) Building alterations. The director may allow additions to an existing, legally constructed structure, sited in accordance with the laws and setbacks in effect at the time of the construction, within the currently required front, side, and/or rear setback if the building addition does not exceed 20 percent of the floor area of the existing structure. The addition shall not exceed the coverage requirements of the zone. (c) Height exceptions and limitations.
(1) Structures permitted above a specified height limit may be erected as follows:
structures or walls for the housing of elevators, stairways, tanks, ventilating fans or similar structures, skylights, towers, steeples, flagpoles, chimneys, smokestacks, wireless masts, radio and television masts, water tanks, silos or similar structures, provided that no roof structure, as listed in this subsection, or any space above the height limit specifically prescribed for particular zones, shall be allowed or used for the purpose of providing usable floor space in excess of that reasonably required to maintain such structures and shall not be used for signage.

7.B.

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(2) Structures located within the Hemet-Ryan Airport Land Use Plan (ALUP) are subject to the provisions of ALUP, and the FAA regarding structure heights within the airport influence area.
(3) The reviewing authority may authorize a ten percent increase in the maximum building height for structures that are setback a minimum of 100 feet from a residential use or zone, not including signs.
(4) The placement of windows on upper floor levels shall be oriented towards the street if greater than 35 feet in height and the property abuts a residential use or zone.
(d) Accessory buildings.
(1) No accessory building shall be located without a permissive main building and must not exceed ten percent of the floor area of the permissive structure. Larger structures must be processed in accordance with section 90-1043. (2) Separation between buildings is subject to the requirements of the latest cityadopted California Building Code. (3) Accessory buildings shall meet the setback requirements of the zone. (e) Exterior lighting. All lighting shall be directed or shielded away from nearby residential zones and contained within the boundaries of the site. Adequate lighting shall be provided to maintain a safe, on-site environment consistent with California Building Code standards. For logistics uses, see also Division 2 of this article; in the event of a conflict, Division 2 of this article controls.
(f) Service and refuse areas. All service areas, refuse collection areas and trash bins shall conform with the setback requirements and shall be completely screened by a solid fence or wall, or shall be enclosed within a building in accordance with the adopted standards of the city.
(g) Walls, fencing, screening and landscaping. This section provides for the regulation of location and height of walls, fencing, screening and landscaping so as to allow the enjoyment of the use of property and for the safety of persons using sidewalks and streets related to the property. The community development director may approve alternate fence and wall materials due to safety or aesthetic considerations. (1) Fences generally.
a. The location of walls and fences is determined by the setback area for the zone in which the property is located pursuant to section 90-1045. b. Walls or wrought iron fencing within the front setback may be no higher than 42 inches in height, unless expressly permitted by other applicable sections of this chapter. Visual sight lines must be maintained for safety purposes.
c. A wall or fence of up to six feet in height may be located in the side and rear yards. When a site adjoins a residential zone, a solid masonry wall six

7.B.

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feet in height shall be located adjoining the property line and an area at least five feet in depth adjoining the property line shall be landscaped with live plant material, including trees.
d. Fences and walls adjacent to and visible from the street right-of-way shall be of decorative block or wrought iron. Walls shall be designed to blend with the site's architecture.
e. Internal fences or walls not visible from a street or adjacent to residential uses may be constructed of masonry, concrete, steel, vinyl panels, or slatted chain link. Wood fencing is prohibited. The fence materials shall be approved by the community development director, or the planning commission, if applicable, as part of the design review or site development review process for the property.
f. Gates in fences and walls shall be wrought iron, steel, or any other similar materials acceptable to the community development director. (2) Outdoor display and storage. All outdoor storage shall be screened from view.

Screening shall complement the architecture, color, and materials of the primary building.
a. Block walls or opaque fencing used for screening purposes in areas of public view and access shall also incorporate a landscaped edge of shrubs and trees to minimize the potential for graffiti and to enhance the aesthetics of the property.
b. All outdoor storage shall be screened by a six-foot high wall or fence and shall meet the requirements of this section. Slatted chain link fencing may be permitted if the outdoor storage area is not visible from a public street, subject to approval of the community development director. c. Outside storage shall not occupy more than 20 percent of the total lot area, obstruct required parking spaces, or obstruct drive aisles, except as determined otherwise by the community development director. d. Outdoor metal storage containers may be permitted subject to the requirements of section 90-82.
(3) Security fencing. Nothing in this section shall be deemed to set aside or reduce the requirements established for security fencing by either local, state or federal law, or by safety requirements of the board of education. The design, materials, and height of the security fencing shall be based upon a determination of need and design approval by the community development director. In general, security fencing shall not exceed eight feet in height.
(4) For recreational vehicle storage. Fences for recreational vehicle storage shall be eight-foot walls of wrought iron, masonry, concrete, steel, or vinyl panels. Wood fences are prohibited.

7.B.

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(5) Screening of roof-mounted equipment. All roof-mounted equipment shall be screened from general view by the public and from public streets. (6) Landscaping. Landscaping shall be pursuant to article XLVII except where otherwise specified in this article.
a. Parking lot landscaping in the business park zone shall cover ten percent of parking area.
b. Landscaping plans in the business park zone shall be consistent with the city's commercial development guidelines, unless otherwise indicated in applicable business park or industrial design guidelines. c. Where landscaping is required by this chapter, it shall consist predominantly of plant materials, except for necessary walks and drives.

Planted areas, where prescribed, shall be landscaped exclusively with live plant materials. Required landscaping shall be installed in accord with landscaping standards approved by the commission, and shall be of types and sizes prescribed in the standards.
d. All screening and landscaping shall be permanently maintained in an orderly condition. Plant materials shall be watered, weeded, pruned and replaced as necessary to screen or ornament the site.
e. Automatic irrigation shall be provided with adequate water coverage for all landscaped areas.
f. Designated landscaping areas shall be covered in a combination of lawn, ground cover, shrubs, and trees.
g. In addition to the required number of street trees, one tree shall be planted for every 500 square feet of landscaping in all other areas. All trees shall be a minimum of 15 gallon size with 25 percent planted at 24-inch box size.
h. A minimum of 25 percent of all landscaping areas shall be planted in shrubs. The shrub areas shall be inter-planted with non-aggressive type ground cover. Triangular spacing shall be used in row plantings of all ground cover and shrubs.
(7) Signage. Signage shall be pursuant to article XXXVI except where otherwise specified in this article.
a. A signage program is required for projects located within the business park zone subject to review and approval of the community development director, or planning commission, as appropriate, in conjunction with the site development review process.
(8) Loading areas. Adequate room shall be provided for truck access and maneuvering. For logistics uses, see also Division 2 of this article; in the event of a conflict, Division 2 of this article controls.

7.B.

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a. Loading doors and docks shall not be located at the front of buildings or next to main building entrances.
b. Loading doors or docks shall not be located adjacent to a street or residential use unless properly screened from public view. c. A minimum of 120 feet in front of the loading doors or docks shall be paved and kept free of obstacles including connecting walkways or required parking areas.
(9) Land use buffer. Industrial uses shall be buffered from adjacent land uses/zones through the use of setbacks, screening, landscaping, open space, or topographic features.
(10) Car wash—Self or full-service. No new car wash facility offering hand and/or mechanical washing shall be approved in any manufacturing zone at any time following the effective date of this section. This prohibition includes any selfservice or full-service commercial washing, detailing, waxing, or cleaning vehicles.

Any car wash that was lawfully constructed, or approved with a conditional use permit prior to the effective date of this section, shall be legal nonconforming. A valid previously approved car wash shall be allowed to submit amendments to the approved conditional use permit to modify the previously approved car wash, subject to the review and discretion of the planning commission. (Ord. No. 1553, § 2, 1-28-97; Ord. No. 1581, § 2, 2-24-98; Ord. No. 1591, § 1(6), 9-29-98; Ord.

No. 1657, § 1, 2-12-02; Ord. No. 1875, § 1(Exh. 1A), 1-14-14; Ord. No. 1909, § 1(Exh. B), 1- 12-16; Ord. No. 1985, § 3, 12-14-21; Ord. No. 2043, § 3, 8-13-24) Sec. 90-1047. Site development review requirements.

New projects in the industrial zones are subject to pre-application review as provided in section 90-49 and site development review as provided in section 90-48. Development of the site and structures shall be consistent with all applicable design guidelines. (Ord. No. 1875, § 1(Exh. 1A), 1-14-14; Ord. No. 1900, § 5(Exh. 2), 4-14-15) Sec. 90-1048. Performance standards.

All uses established or placed into operation shall comply at all times with the performance standards set out in this section. The director may require submission of evidence of ability to comply with the required conditions.
(1) Noise. No use, except a temporary construction operation, shall be permitted which creates noise of a maximum sound pressure level greater than the value established in the public safety element of the general plan, and adopted building codes, or as may be further determined by project specific mitigation measures.

The general plan specifies land use compatibility standards to ensure that stationary noise sources (e.g., industrial uses) do not adversely affect noisePage 33 of 75

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sensitive land uses and that community noise environments do not negatively affect land uses. For logistics uses, see also Division 2 of this article; in the event of a conflict, Division 2 of this article controls.
(2) Fire, toxic materials, and explosion hazards. The storage and handling of hazardous materials including flammable liquids, liquid petroleum gases and explosives shall comply with the state rules and regulations and with the ordinances of the city.
(3) Air contaminants. No use shall emit any air contaminant except in compliance with the rules and regulations of the south coast air management district and local regulations.
(4) Odor. No use shall be permitted which creates annoying odor in such quantities as to be readily detectable beyond the boundaries of the site. (5) Radioactivity and electrical disturbances. The use of radioactive materials shall be limited to measuring, gauging and calibration devices such as tracer elements, use in X-ray and like apparatus, and use in connection with the processing and preservation of food. No use shall emit dangerous radioactivity or produce electric or magnetic fields that adversely affect public health, safety, and welfare including interference with normal radio, telephone, or television reception offsite. (6) Dust, heat, cold, glare and electrical disturbance. No use, except a temporary construction operation, shall be permitted which creates dust, changes in temperature or direct or sky-reflecting glare detectable by the human senses without the aid of instruments beyond the boundaries of the site. No use shall be permitted which creates electrical disturbances that affect the operation of any equipment beyond the boundaries of the site.
(7) Vibration. No use, except a temporary construction operation, shall be permitted which creates vibration sufficient to cause a displacement of 0.003 inch beyond the boundaries of the site.
(8) Wastewater discharge. No liquids of any kind shall be discharged into a public or private sewage or drainage system, water course, body of water, or into ground except in compliance with federal, state, regional, and local laws, rules and regulations.
(9) Sustainable design. All new development proposals shall demonstrate best management practices in project design and implementation to maximum the efficient use of resources and reduce deleterious environmental impacts on the community.
(Ord. No. 1553, § 2, 1-28-97; Ord. No. 1875, § 1(Exh. 1A), 1-14-14) Sec. 90-1049. Exterior color.
(a) Color selection.

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(1) Exterior façade colors of structures developed within commercial and industrial zones shall be low reflectance, subtle, neutral or earth tone colors. The use of high-intensity or fluorescent colors is prohibited. The recommended color palette as adopted by the city council is maintained at the planning department. (2) Trim and accent areas up to a maximum of ten percent of the building façade may feature brighter, more intense colors, including primary colors. (3) The transition between base and accent colors shall relate to changes in building materials or the change of building surface planes. Colors should not meet or change without some physical change or definition to the surface plane. (b) Approval required. Except as specifically provided in this article, no person shall paint the exterior of any commercially zoned building owned by him or under his control within the city, without having first obtained an approval from the planning department regarding the color selected.
(c) Application. An application for an exterior paint permit shall provide the following information:
(1) The name, address and telephone number of the applicant. (2) The address of the subject property.
(3) Samples of colors that are to be used, indicating the manufacturer, the name of the color and serial number.
(d) Fee. There shall be no fee required for the exterior paint permit. (e) Compliance. The provisions of this section shall apply to all new construction and repainting proposed after the adopted ordinance. Existing structures shall be required to repaint to gain compliance within seven years of adoption of said ordinance. (Ord. No. 1646, § 1, 5-15-01; Ord. No. 1875, § 1(Exh. 1A), 1-14-14) Sec. 90-1050. Appeals.

Appeal of a decision of the community development director or designee may be made to the planning commission pursuant to section 90-43.6.
(Ord. No. 1875, § 1(Exh. 1A), 1-14-14)
DIVISION 2. LOGISTICS, E-COMMERCE, AND WAREHOUSE USES
SUBDIVISION I. GENERAL PROVISIONS
Sec. 90-1051. Title and authority.
(a) Short title. This division shall be known and may be cited as the “Hemet Logistics, ECommerce, and Warehouse Ordinance.” (b) Authority. This division is adopted pursuant to the police power of the City under article XI, section 7 of the California Constitution; the Planning and Zoning Law (Government

7.B.

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Code section 65000 et seq.); the Development Agreement Statute (Government Code section 65864 et seq.); the Mitigation Fee Act (Government Code section 66000 et seq.); Government Code section 65098 et seq., as may be amended from time to time; and Government Code section 65302.02, as may be amended from time to time.

Sec. 90-1052. Purpose and intent.

The purposes of this division are to:
(a) Establish objective and predictable standards for Logistics Uses in the B-P, M-1, and M-2 zones;
(b) Protect Sensitive Receptors, including residences, Mobilehome Parks, Senior Housing, schools, and daycare facilities, from the effects of Logistics Uses, and implement and supplement Government Code section 65098 et seq.;
(c) Require mitigation of the known effects of Logistics Uses, including effects on air quality, health risk, noise, light, traffic, and pavement; (d) Direct Heavy-Duty Truck traffic to Designated Truck Routes and away from Local Residential Streets;
(e) Secure Community Benefits proportionate to the scale of Logistics Uses through the legal channels established in Subdivision V of this division; (f) Offer Incentives only in exchange for enforceable Voluntary Commitments that advance the City’s economic development objectives;
(g) Streamline the approval of small-scale, locally focused, job-creating Logistics Uses; and (h) Scale the level of review and approval authority to the size and intensity of each Project, with 250,000 square feet of Gross Floor Area as the threshold for heightened review.

Sec. 90-1053. Applicability.
(a) Scope. This division applies to each of the following within the B-P, M-1, and M-2 zones, and within any specific plan, planned community development zone, or overlay zone that permits Logistics Uses by incorporating the uses or standards of the B-P, M-1, or M-2 zone:
(1) The establishment of a new Logistics Use;
(2) An Expansion of a Logistics Use, and any other addition of Gross Floor Area to a building or Project occupied by or designed for a Logistics Use that increases the Gross Floor Area of the Project by ten percent or more or by 25,000 square feet or more, whichever is less;
(3) A change of Tenant, Operator, or operation that is subject to Sec. 90-1094; and (4) The reoccupancy for a Logistics Use of a building designed for a Logistics Use that has been vacant for more than 12 consecutive months. (b) Exclusions. This division does not apply to:

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(1) Storage that is incidental and accessory to a retail, office, or service use on the same site and that occupies not more than 25 percent of the Gross Floor Area of that use, and Manufacturing with Accessory Warehousing that meets Sec. 90- 1057(d);
(2) A storage facility (personal, mini-storage) regulated by Sec. 90-81; and (3) A facility owned or operated by a public agency for a governmental purpose. (c) Aggregation. For purposes of determining whether this division applies and the Tier of a Logistics Use, Gross Floor Area shall be measured for the entire Project. A Project includes all buildings containing or designed for Logistics Uses that are:
(1) Located within the same Logistics Park;
(2) Located on contiguous parcels, or on parcels separated only by a street, alley, or easement, that are owned or controlled by the same person or by persons controlling, controlled by, or under common control with that person; or (3) Proposed in applications filed within five years of one another by the same applicant or by persons controlling, controlled by, or under common control with that applicant.
(d) State law applicability. Nothing in this section limits the applicability of Government Code section 65098 et seq. to any logistics use development to which that law applies by its own terms.

Sec. 90-1054. Relationship to state law and other provisions. (a) Incorporation of state law. Government Code section 65098 et seq., as may be amended from time to time, is incorporated into this division by reference. Each Logistics Use Development shall comply with Government Code section 65098 et seq. to the extent applicable by its terms. For purposes of applying a requirement of state law, a term defined in Government Code section 65098 has the meaning given by that section, and that meaning controls over any conflicting definition in this division. (b) Local overlay; no frustration of state standards. Where a standard of this division and a standard of state law both apply to the same feature or condition, the standard that is more protective of Sensitive Receptors governs. However, no provision of this division shall be interpreted, applied, or enforced to the extent that it would prohibit or have the effect of physically precluding any physical feature of a Logistics Use Development that is required by the provisions of state law identified in Government Code section 65098.5(b). Nothing in this subsection limits the authority of the City described in Government Code section 65098.5(c).
(c) Air district and State Air Resources Board requirements. Compliance with South Coast Air Quality Management District Rule 2305 (Warehouse Indirect Source Rule) and with regulations of the State Air Resources Board is required independently of this division.

Documentation of compliance with those requirements shall be accepted as evidence of compliance with a requirement of this division to the extent that the documentation

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establishes the same equipment, measure, or level of performance that this division requires.
(d) Conflicts with this chapter. For Logistics Uses, the provisions of this division control over any conflicting provision of this chapter. Where this division does not address a matter, the other provisions of this chapter apply, including Division 1 of this article, article XXXVI (Signs Generally), article XL (Off-Street Parking), and article XLVIII (Landscaping and Irrigation).
(e) Environmental review. Nothing in this division limits the authority or obligation of the City under the California Environmental Quality Act (Public Resources Code section 21000 et seq.) with respect to any discretionary approval, including the authority to impose mitigation measures.
(f) Airport land use compatibility. Where the ALUCP is more restrictive than this division, the ALUCP controls.
(g) Housing replacement and relocation. Each approval of a Logistics Use Development shall be conditioned as required by Government Code section 65098.6.

Sec. 90-1055. Warehouse Concentration Region status; contingent standards. (a) Declaration. As of the effective date of the ordinance adding this division, the City is not within the Warehouse Concentration Region.
(b) Contingent application. If the City becomes part of the Warehouse Concentration Region by amendment of Government Code section 65098 or any successor statute, every requirement of state law that applies to a jurisdiction, or to a logistics use development, within the Warehouse Concentration Region shall apply within the City by operation of law from the effective date of that requirement, without further action of the City Council. Within 90 days after the effective date of the amendment, the Director shall report to the City Council on amendments to this division, the Hemet General Plan, and the Truck Route Ordinance necessary to conform to the amendment. (c) Annexation areas.
(1) A Logistics Use on territory annexed to the City that was entitled by the County of Riverside before annexation remains subject to each condition imposed by the County, including any condition imposed because the territory was within the Warehouse Concentration Region, and upon annexation is subject to this division except to the extent that a vested right under a vesting tentative map, development agreement, or building permit on which substantial construction has been performed in good faith precludes its application.
(2) The staff report for any pre-zoning of unincorporated territory to the B-P, M-1, or M-2 zone shall state whether the pre-zoning constitutes a rezone for purposes of Government Code section 65098.1, including whether the territory satisfies both requirements of Government Code section 65098.1(e).

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(d) Rezonings for Logistics Uses. A Logistics Use Development on a site for which the City approves, after the effective date of the ordinance adding this division, a General Plan amendment or change of zone that newly permits a Tier 2 or Tier 3 Logistics Use on that site shall comply with the standards of Government Code section 65098.1(c) as though the City were within the Warehouse Concentration Region, regardless of the distance between the Logistics Use Development and any Sensitive Receptor. This subsection shall be applied consistent with Sec. 90-1054(b).

Sec. 90-1056. Definitions.

For purposes of this division, the following words and phrases have the meanings stated in this section. A word or phrase not defined in this section has the meaning given in Sec. 90-4.

References to a statute, regulation, or rule are to that statute, regulation, or rule as amended from time to time.
21st Century Warehouse has the meaning given in Government Code section 65098(a).

Administrative Adjustment means a deviation from a numeric standard approved under Sec. 90-1061(d).

Airport Influence Area means the airport influence area of Hemet-Ryan Airport established by the ALUCP.

ALUCP means the Riverside County Airport Land Use Compatibility Plan, including the compatibility policies applicable to Hemet-Ryan Airport, as adopted by the Riverside County Airport Land Use Commission.

Arterial Road means a roadway classified in the Circulation Element as an Arterial 6D, Major 4D-6D, Divided Secondary-A 4D, Divided Secondary-B 4D, or Secondary 4U.

Baseline Mitigation means a condition of approval, mitigation measure, fee, dedication, or improvement required by this division, by the California Environmental Quality Act, or by other law, each of which shall have an essential nexus to, and be roughly proportional to, the impacts of the Project on which it is imposed.

B-P, M-1, and M-2 mean, respectively, the BP business park zone, the M-1 limited manufacturing zone, and the M-2 heavy manufacturing zone established by Sec. 90-1042.

Circulation Element means the circulation element of the Hemet General Plan.

Cold Storage Facility means a Logistics Use in which more than 20 percent of the Gross Floor Area is designed or maintained at a temperature of 55 degrees Fahrenheit or lower for the storage of goods.

Commercial-Industrial Local Road means a local road that predominantly serves commercial, agricultural, or industrial uses, as determined under the fifty-percent test of Government Code section 65098.2.7(b)(2), applied to the properties fronting the road within 1,000 feet of each truck driveway of the Project.

7.B.

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Community Benefit means a benefit to the City or its residents provided through a Voluntary Commitment or a Development Agreement that is in addition to Baseline Mitigation.

Community Benefit Point means a point assigned to a Voluntary Commitment in Table 90-1090-1.

Designated Truck Route means a street or highway segment included in the truck route network described in Sec. 90-1078(a) and, until that network is adopted, a route permitted by Sec. 90-1078(c).

Development Agreement means a development agreement entered into under Government Code sections 65864 through 65869.5.

Director means the Community Development Director of the City or the Director’s designee.

Distribution Center means a Logistics Use in which goods are received, stored for less than 30 days on average, sorted, and shipped in bulk or in pallet-sized lots to retail stores, other businesses, or other distribution facilities, and which is not an E-Commerce Fulfillment Center, Parcel Hub/Last-Mile Delivery Station, or Cold Storage Facility.

Dock Ratio means the number of Loading Bays in a building or Project divided by its Gross Floor Area, expressed as one Loading Bay per a stated number of square feet of Gross Floor Area.

E-Commerce Fulfillment Center means a Logistics Use in which goods are stored and individual orders placed by consumers or businesses are picked, packed, and shipped directly to the purchaser or to a Parcel Hub/Last-Mile Delivery Station.

Expansion has the meaning given in Government Code section 65098(b).

First-Source Referral means a process under which an Operator, before advertising a job opening to the public, lists the opening with the City of Hemet or another referral source designated in the covenant or Development Agreement (such as the Riverside County Workforce Development Board), and considers qualified referred candidates for not less than the period stated in Sec. 90-1088(b).

Fiscal Impact Analysis means an analysis, prepared by a consultant retained by the City at the applicant’s expense, that estimates the annual revenues to and service costs of the City attributable to a Project over a period of not less than 20 years after issuance of a certificate of occupancy.

Full-Time Equivalent or FTE means 2,080 paid hours of work per year performed at the Project site, whether by employees of the Operator or by workers supplied by a staffing agency or contractor.

Gross Floor Area means the total floor area of all floors of a building, including mezzanines, office areas, and enclosed loading areas, measured from the exterior faces of the exterior walls.

7.B.

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Health Risk Assessment means an assessment of cancer risk, chronic hazard, and acute hazard prepared in accordance with the most recent Air Toxics Hot Spots Program Guidance Manual of the Office of Environmental Health Hazard Assessment and the guidance of the South Coast Air Quality Management District.

Heavy-Duty Truck has the meaning given in Government Code section 65098(c).

Incentive means a benefit listed in Sec. 90-1062(c) or Sec. 90-1090(a) through (g).

Loading Bay means a dock-high door, truck well, or other door position designed for the loading or unloading of a truck or trailer, including a “truck loading bay” as that term is used in Government Code section 65098.1. A grade-level door is a Loading Bay if its clear opening is 12 feet or more in width or 14 feet or more in height. “Dock Door” has the same meaning.

Local Business means a business entity that, on the date of application, has maintained its principal place of business within the City for not less than 12 consecutive months and holds a current City business license, or that employs Local Residents in not less than 50 percent of its FTE positions.

Local Resident means a natural person whose primary residence is within the City, the City’ sphere of influence, the City of San Jacinto, or within ZIP codes 92543, 92544, 92545, 92546, 92582, and 92583.

Local Residential Street means any local road or collector street that is not a CommercialIndustrial Local Road.

Logistics Conditional Use Permit means the permit described in Sec. 90-1064.

Logistics Impact Fee means the fee described in Sec. 90-1084(b).

Logistics Park has the meaning given in Government Code section 65098(i).

Logistics Site Development Review means the review described in Sec. 90-1063.

Logistics Use means any use within a Logistics Use Class, whether or not it is a Logistics Use Development.

Logistics Use Class means each of the following: Storage Warehouse; Distribution Center; E-Commerce Fulfillment Center; Parcel Hub/Last-Mile Delivery Station; Cold Storage Facility; Truck Terminal/Cross-Dock; Truck and Trailer Parking/Storage Yard; and Small-Bay Flex Industrial.

Logistics Use Development has the meaning given in Government Code section 65098(d).

Major Thoroughfare means a roadway classified in the Circulation Element as an Expressway or Arterial 6D, and any state highway.

Manufacturing with Accessory Warehousing means a manufacturing, assembly, fabrication, or processing use permitted by Sec. 90-1043 in which the storage and distribution of goods is accessory to on-site production.

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Ministerial Logistics Site Development Review means the review described in Sec. 90- 1062.

Mobilehome Park means a mobilehome park as defined in Health and Safety Code section 18214, and any lot within a zone established by article XX or article XXII of this chapter.

Municipal Services Payment means the payment described in Sec. 90-1089.

Objective Standard means a standard that involves no personal or subjective judgment by a public official and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the applicant and the public official before the application is submitted.

Operational Compliance Plan means the plan described in Sec. 90-1093(a).

Operator means the person that operates a Logistics Use, including a “logistics use development operator” as that term is used in Government Code section 65098.4.

Owner-User means an owner of a building, or a person controlling, controlled by, or under common control with the owner, that occupies not less than 75 percent of the Gross Floor Area of the building for its own operations.

Parcel Hub/Last-Mile Delivery Station means a Logistics Use in which parcels are received, sorted, and loaded primarily onto vans, box trucks, or other delivery vehicles for delivery to end customers, including a use commonly called a delivery station, sortation center, or parcel hub.

Project means all buildings and Gross Floor Area aggregated under Sec. 90-1053(c).

Public Works Director means the Public Works Director/City Engineer of the City or that official’s designee.

Residential Zone means any zone established by article XI, XIII, XVI, XX, XXI, or XXII of this chapter, and any residential land use district of a specific plan or planned community development zone.

Sales Tax Shortfall Payment means the payment described in Sec. 90-1087(c).

Senior Housing means housing designated under article XXXI of this chapter, a senior citizen housing development as defined in Civil Code section 51.3, or a residential care facility for the elderly as defined in Health and Safety Code section 1569.2.

Sensitive Receptor has the meaning given in Government Code section 65098(e). Each dwelling unit, each mobilehome space within a Mobilehome Park, and each unit of Senior Housing is a residence within the meaning of that section.

Small-Bay Flex Industrial means a multi-tenant building divided into separately leased units, none of which exceeds 35,000 square feet of Gross Floor Area, designed for any combination of storage, distribution, light industrial, service, or office use.

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Speculative Building means a building designed for a Logistics Use for which, at the time of application, the Operator has not been identified or a lease, purchase agreement, or use-restriction covenant identifying the Logistics Use Class has not been executed.

Storage Warehouse means a Logistics Use in which goods are stored for 30 days or more on average before shipment, and which is not a Cold Storage Facility.

Tenant means a person that occupies all or part of a building under a lease, license, or other agreement with the owner.

Tier; Tier 1; Tier 2; Tier 3 mean the categories of Projects established by Sec. 90-1059.

Tier 1 21st Century Warehouse has the meaning given in Government Code section 65098(g).

Truck and Trailer Parking/Storage Yard means a site or portion of a site, not accessory to a Logistics Use on the same site, used for the parking or storage of trucks, tractors, trailers, or shipping containers.

Truck Court means the paved area adjacent to Loading Bays used for truck maneuvering, docking, and trailer staging.

Truck Route Ordinance means an ordinance amending chapter 78 (Traffic and Vehicles) of this Code to establish truck routes under Government Code section 65098.2.8, and any ordinance amending or superseding it.

Truck Routing Plan means the plan required by Sec. 90-1080(a).

Truck Terminal/Cross-Dock means a Logistics Use in which goods are transferred between trucks or trailers with no storage or with storage of less than 48 hours, or in which trucks or tractors are dispatched, serviced, or parked as a base of operations.

Voluntary Commitment means a commitment listed in Table 90-1090-1, or a commitment described in Subdivision V of this division, that an applicant or owner offers voluntarily in exchange for an Incentive or for review under Sec. 90-1063(c), and that is secured by a recorded covenant or Development Agreement.

Warehouse Concentration Region has the meaning given in Government Code section 65098(h).

Sec. 90-1057. Classification of Logistics Uses.
(a) Classification. The Director shall classify each Logistics Use into a Logistics Use Class by applying the definitions in Sec. 90-1056 to the following information, which the applicant shall provide in the application: (1) projected daily truck trips by vehicle class, calculated using the trip rates of the most recent edition of the Institute of Transportation Engineers Trip Generation Manual for the corresponding land use code; (2) fleet mix, stated as the percentages of Heavy-Duty Trucks, other trucks, vans, and passenger vehicles; (3) hours of operation; (4) Dock Ratio; and (5) the Gross Floor Area to be refrigerated and the design temperature.

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(b) Speculative Buildings. A Speculative Building shall be classified, analyzed, and conditioned as the most intensive Logistics Use Class permitted for that zone and Tier by Table 90-1060-1, unless the owner records a use-restriction covenant, in a form approved by the City Attorney, limiting occupancy to one or more less intensive Logistics Use Classes. For purposes of this division, Logistics Use Classes are ranked from most to least intensive as follows: (1) Truck Terminal/Cross-Dock; (2) Truck and Trailer Parking/Storage Yard; (3) Parcel Hub/Last-Mile Delivery Station; (4) Cold Storage Facility; (5) E-Commerce Fulfillment Center; (6) Distribution Center; (7) Storage Warehouse; and (8) Small-Bay Flex Industrial.
(c) Mixed operations. A Logistics Use that includes operations within more than one Logistics Use Class shall be classified as the most intensive Logistics Use Class that occupies more than 20 percent of its Gross Floor Area. If no Logistics Use Class exceeds that percentage, the use shall be classified as the Logistics Use Class that occupies the largest share of its Gross Floor Area.
(d) Manufacturing with Accessory Warehousing. Manufacturing with Accessory Warehousing is not a Logistics Use if (1) the Gross Floor Area used for the storage and distribution of goods does not exceed 40 percent of the Gross Floor Area of the use, and (2) the goods stored are produced, assembled, or processed on the site or are materials or components used in production on the site. Manufacturing with Accessory Warehousing is regulated by Sec. 90-1043.
(e) Determination and appeal. The Director shall issue each classification in writing. A classification may be appealed to the Planning Commission in the manner provided in Sec. 90-43.6.

SUBDIVISION II. ZONES, TIERS, AND APPROVAL PROCEDURES
Sec. 90-1058. Zones governed; zone-specific intent.

The B-P, M-1, and M-2 zones are industrial zones established by Sec. 90-1042. Within those zones, Logistics Uses shall be permitted, located, and reviewed consistent with the following intent, as implemented by Table 90-1060-1:
(a) B-P. The B-P zone is intended for employment-dense Logistics Uses with lower truck intensity. Tier 3 Projects are permitted in the B-P zone only on sites that satisfy Sec. 90- 1060(c). Parcel Hub/Last-Mile Delivery Stations and Cold Storage Facilities are limited as provided in Table 90-1060-1.
(b) M-1. The M-1 zone is the primary zone for Tier 1 and Tier 2 Projects. Tier 3 Projects require a Logistics Conditional Use Permit and Development Agreement. (c) M-2. The M-2 zone is intended for the largest and most truck-intensive Logistics Uses, including Truck Terminal/Cross-Docks and Truck and Trailer Parking/Storage Yards.

Tier 3 Projects require a Logistics Conditional Use Permit and Development Agreement.

Sec. 90-1059. Logistics tiers.
(a) Tier 1 (Local/Small-Scale). A Project is a Tier 1 Project if it satisfies all of the following:

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(1) The Gross Floor Area of the Project does not exceed 50,000 square feet in the B-P zone or 100,000 square feet in the M-1 or M-2 zone;
(2) The Project contains no Parcel Hub/Last-Mile Delivery Station, Cold Storage Facility, Truck Terminal/Cross-Dock, or Truck and Trailer Parking/Storage Yard; (3) The Dock Ratio of the Project does not exceed one Loading Bay per 10,000 square feet of Gross Floor Area;
(4) Either (A) each building is occupied by an Owner-User or a Local Business, verified as provided in Sec. 90-1062(e); or (B) the Project is Small-Bay Flex Industrial and no unit exceeds 35,000 square feet of Gross Floor Area; (5) If any Loading Bay is within 900 feet of a Sensitive Receptor, measured as provided in Sec. 90-1069(b), no Loading Bay is located on the elevation of the building that is nearest to that Sensitive Receptor;
(6) The Project does not require a General Plan amendment, change of zone, variance, or Administrative Adjustment; and
(7) The Project is not subject to Sec. 90-1059(d).
(b) Tier 2 (Mid-Scale). A Project is a Tier 2 Project if it does not qualify as a Tier 1 Project and the Gross Floor Area of the Project is less than 250,000 square feet. (c) Tier 3 (Regional). A Project is a Tier 3 Project if the Gross Floor Area of the Project, aggregated under Sec. 90-1053(c), is 250,000 square feet or more. (d) Tier elevation. A Project any Loading Bay of which is within 900 feet of a Sensitive Receptor, measured as provided in Sec. 90-1069(b), and which either is located on land not zoned B-P, M-1, or M-2 or requires a General Plan amendment or change of zone to permit the Logistics Use, shall not be approved by any body other than the City Council, and is not eligible for Ministerial Logistics Site Development Review.

Sec. 90-1060. Use and permit matrix.
(a) Matrix. Logistics Uses are permitted, permitted subject to review, or prohibited in the BP, M-1, and M-2 zones as provided in Table 90-1060-1. The following symbols are used in the table:
(1) “P” means permitted subject to Ministerial Logistics Site Development Review by the Director (Tier 1).
(2) “A” means administratively permitted subject to Logistics Site Development Review by the Director (Tier 2), subject to referral to the Planning Commission under Sec. 90-1061(b).
(3) “A-PC” means permitted subject to Logistics Site Development Review, with the Planning Commission as the decision-maker.
(4) “C” means conditionally permitted subject to a conditional use permit issued by the Planning Commission under Sec. 90-42 and this division.

7.B.

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(5) “C-DA” means conditionally permitted subject to a Logistics Conditional Use Permit and Development Agreement approved by the City Council under Sec. 90- 1064.
(6) “X” means prohibited.
[Table 90-1060-1 Follows]
Table 90-1060-1. Logistics Use and Permit Matrix
Logistics Use Class Tier B-P M-1 M-2
Storage Warehouse 1 P P P
Storage Warehouse 2 A if Project GFA ≤
100,000 sq. ft.; A-PC if
> 100,000 sq. ft.

A A
Storage Warehouse 3 C-DA, only on sites
meeting Sec. 90-
1060(c)

C-DA C-DA
Distribution Center; ECommerce Fulfillment Center1 P P P Distribution Center; ECommerce Fulfillment Center2 A-PC A A Distribution Center; ECommerce Fulfillment Center3 C-DA, only on sites meeting Sec. 90-
1060(c)

C-DA C-DA
Parcel Hub/Last-Mile Delivery
Station
1–2 A-PC A-PC A
Parcel Hub/Last-Mile Delivery
Station
3 X C-DA C-DA
Cold Storage Facility 1–2 A-PC A-PC A
Cold Storage Facility 3 X C-DA C-DA
Truck Terminal/Cross-Dock Any X C-DA C-DA