Hesperia City Council
January 18, 2022

Tuesday, January 18, 2022
Meeting Agenda
Closed Session - 5:00PM

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HOUSING AUTHORITY

COMMUNITY DEVELOPMENT COMMISSION

WATER DISTRICT
City Council Chambers
9700 Seventh Ave., Hesperia CA, 92345
City Clerk's Office: (760) 947-1007
City Council Members
Brigit Bennington, Mayor
William J. Holland, Mayor Pro Tem
Larry Bird, Council Member
Cameron Gregg, Council Member
Rebekah Swanson, Council Member
Nils Bentsen, City Manager
Eric Dunn, City Attorney
See page (3) for details on public meeting guidelines during the COVID-19 (Coronavirus) Pandemic
Regular Meeting - 6:30PM
NOTE: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 947-1007 or (760) 947-1026. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility.

Camer
on Gregg, Mayor 9700 Seventh Avenue
Brigit Bennington, Mayor Pro Tem Hesperia, CA 92345 Larry Bird, Council Member
Bill Holland, Council Member 760-947-1000
Rebekah Swanson, Council Member TD 760-947-1119
Nils Bentsen, City Manager www.cityofhesperia.us
Gateway to the High Desert
City of Hesperia
Public Access to City Council Meetings:

City Council meetings are now open to the public within the guidelines provided by the State which may include wearing masks and socially distancing from other attendees.

Public Comments can be made in- person at City Council Meetings and/or can be submitted via telephone recording that will be played during the meeting.

City Council meetings may be viewed live or af ter the event on the City’s website at www.cityofhesperia.us.

Remote Public Comment:

Public Comments Made By-Telephone Process
Public comments will be accepted in advance until 5: 30 pm on the day of the scheduled meeting by calling and leaving a recorded message at (760) 947-1 056. Comments received past 5:30 pm will not
be included in the record. If you would like to comment remotely, please follow the protocols below:
• Call (760)947-1 0 56 to leave a detailed message of your public comment.
• Identify your name and the item you wish to comment on in your message.
• C
ontact information in your voicemail is optional, but will allow staff to easily follow up with you if necessary.
• E ach public comment received by voicemail will be played by a staff member for up to three (3) minutes for Consent Calendar/New Business items and up to five (5) minutes for Public Hearing items.

Remote public comments received outside of the comment period outlined above will not be included in the record.

January 18, 2022City Council Meeting Agenda

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT
9700 7th Avenue, Council Chambers, Hesperia, CA 92345
As a courtesy, please silence your cell phones and other electronic devices while the meeting is in session. Thank you.

Prior to action of the Council, any member of the audience will have the opportunity to address the legislative body on any item listed on the agenda, including those on the Consent Calendar.

Individuals wishing to speak during General Public Comments or on a particular numbered item must submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.

In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.

CLOSED SESSION - 5:00 PM
Roll Call
Mayor Brigit Bennington
Mayor Pro Tem William J. Holland
Council Member Larry Bird
Council Member Cameron Gregg
Council Member Rebekah Swanson
Conference with Legal Counsel - Potential Litigation:

Government Code Section 54956.9(d)2

1. Two (2) Cases
Conference with Legal Counsel – Existing Litigation
Government Code Section 54956.9(d)1

1. Nulevel Partners Inc. v City of Hesperia
CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag

January 18, 2022City Council Meeting Agenda
C. Roll Call
Mayor Brigit Bennington
Mayor Pro Tem William J. Holland
Council Member Larry Bird
Council Member Cameron Gregg
Council Member Rebekah Swanson
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports by City Attorney

ANNOUNCEMENTS/PRESENTATIONS

1. Presentation to Planning Commissioner Cody Leis by Mayor Pro Tem Holland
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Individuals wishing to speak during General Public Comments or on a particular numbered item are requested to submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the joint agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.

In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.

JOINT CONSENT CALENDAR

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, December 21, 2021.

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, December 21, 2021.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2021-12-21Attachments:

2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Commission - Water)
Recommended Action:

It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

January 18, 2022City Council Meeting Agenda
Staff Person: Director of Administrative Services Casey Brooksher SR Warrant Run 1-18-2022
Attachment 1 - Warrant Run
Attachments:

3. Treasurer’s Cash Report for the unaudited period ended October 31, 2021.

Recommended Action:

It
is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Staff Person: Director of Administrative Services Casey Brooksher SR Treasurer's Report 1-18-2022
Attachment 1 - Treasurer's Report
Attachments:

4. Treasurer’s Cash Report for the unaudited period ended November 30, 2021.

Recommended Action:

It
is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Hesperia Water District.

Staff Person: Director of Administrative Services Casey Brooksher SR Treasurer' Report 1-18-2022
Attachment 1 - Treasurer's Report
Attachments:

5. Audited Hesperia Housing Authority Financial Statements for Fiscal Year Ended June 30, 2021 and Housing Successor SB 341 Report
Recommended Action:

It
is recommended that the City Council and the Hesperia Housing Authority (HHA) Board receive and file the audited Hesperia Housing Authority - Component Unit Financial Statements for the Fiscal Year Ended June 30 , 2021 and Housing Successor SB 341 Report.

Staff Person: Director of Administrative Services Casey Brooksher SR HHA Audited Statements 1-18-2022
Attachment 1 - Component Unit Financial Statements HHA
Attachment 2 - SB 341 Housing Successor Report
Attachment 3 - Memo to Board of Directors
Attachments:

6. Receive and File the SB 165 Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2021 Recommended Action:

It is recommended that the City Council receive and file the Communities

January 18, 2022City Council Meeting Agenda
Facilities District (CFD) 2005-1 (Belgate Development Restructuring) Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2021.

Staff Person: Director of Administrative Services Casey Brooksher SR SB 165 Local Agency Report 1-18-2022
Attachment 1 - CFD 2005-1 SB 165 Annual Report
Attachments:

7. Fiscal Years 2015-2016 through 2020-2021 Annual and 5-Year Compliance Report for AB 1600 Development Impact Fees
Recommended Action:

It is recommended that the City Council receive and file the AB 1600 report on development fee activity that occurred during Fiscal Years (FY) 2015-2016 through 2020-2021.

Staff Person: Director of Administrative Services Casey Brooksher SR AB 1600 1-18-2022
Attachment 1 - AB 1600 Report
Attachments:

8. Network Security Detection and Response Services
Recommended Action:

It
is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to enter into a three (3) year agreement with Kroll, LLC (Kroll) in an amount not-to-exceed $78,000, to actively monitor the City’s network for cybersecurity intrusions and provide remediation.

Staff Person: Director of Administrative Services Casey Brooksher SR Network Security Detection and Response Services 1-18-2022Attachments:

9. GP Electric Motor Contract Amendment
Recommended Action:

It
is recommended that the City Council and Board Members of the Hesperia Water District (District) authorize the City Manager to execute an amendment to increase the existing contract with GP Electric Motor in the amount of $30,000 for a revised not-to-exceed amount of $100,000 for well and booster motor maintenance.

Staff Person: Director of Public Works Jeremy McDonald
SR GP Electric Motor Contract Amendment 1-18-2022Attachments:

10. Award of Contract for Engineering Plan Review and Inspection Services Recommended Action:

It
is recommended that the City Council approve the award of two (2) Professional Services Agreements (PSAs); one to HRGreen in the amount of $20,000 for a term of 1 year for Plan Check services and the other to Transtech

January 18, 2022City Council Meeting Agenda
in the amount of $10,000 for a term of 1 year for Engineering Inspection services.

Staff Person: Assistant City Manager Rachel Molina
SR Contract for Engineering Plan Review & Inspection Services 1-18-2022Attachments:

CONSENT ORDINANCES

WAIVE READING OF ORDINANCES
Approve the reading by title of all ordinances and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

11. Amendments to Title 14, Chapter 14.04 of the Hesperia Municipal Code related to water use, conservation and water shortage plan.

Recommended Action:

Place on second reading and adopt by title waiving the text of Ordinance No. 2021-08 regarding water use, water conservation and water shortage plan; amending Title 14, Chapter 14.04 of the Hesperia Municipal Code.

At the December 21, 2021 Council meeting the City Council and Board of Directors made a minor amendment to the verbiage of Stage 2, a. to reflect that mandatory consumption reduction methods may be in effect.

Staff Person: Management Analyst Tina Souza
SR Amendments to Title 14, Chapter 14.04 of HMC 12-21-2021 Ordinance 2021-08
Attachment 2 - Existing Hesperia Municipal Code
Attachment 3 - Previously Proposed Ordinance Redlines
Attachment 4 - Exhibit A Updated Municipal Code
Attachments:

PUBLIC HEARING
Individuals wishing to comment on public hearing items must submit a speaker slip to the City Clerk with the numbered agenda item noted. Speaker slips should be turned in prior to an agenda item being taken up.

Comments will be limited to five minutes for Public Hearing items.

WAIVE READING OF ORDINANCES
Approve the reading by title of all ordinances and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

12. Third Public Hearing - Redistricting due to 2020 Census and Review of Draft Maps
Recommended Action:

It is recommended that the City Council 1) Receive a presentation from National Demographics Corporation (NDC), the City’s redistricting consultant detailing the redistricting process and permissible criteria to be considered to create district boundaries; 2) Conduct the third public hearing to receive public input on the redistricting process and composition of districts; and 3) review and

Hearing item will commence at 7:15PM

January 18, 2022City Council Meeting Agenda
consider the three draft maps provided by National Demographics Corporation and any others that may have been submitted by the public for review.

Staff Person: Director of Government Services/City Clerk Melinda Sayre SR Redistricting due to 2020 Census and Review of Draft Maps 1-18-2022 Attachment 1 - NDC Map 101
Attachment 2 - NDC Map 102
Attachment 3 - NDC Map 103
Attachments:

NEW BUSINESS

13. National Opioid Settlements - Permitted Use of Settlement Funds Recommended Action:

It is recommended that the City Council receive and file this report.

Staff Person: City Attorney Eric Dunn
SR National Opioid Settlement1-18-2022
Attachment 1 - Exhibit E of the Master Settlement Agreements Attachments:

14. Capital Improvement Project Prioritization
Recommended Action:

It is recommended that the City Council receive and file this report.

Staff Person: Assistant City Manager Rachel Molina
SR Capital Improvement Project Prioritization 1-18-2022Attachments:

COUNCIL COMMITTEE REPORTS AND COMMENTS
The Council may report on their activities as appointed representatives of the City on various Boards and Committees and/or may make comments of general interest or report on their activities as a representative of the City.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
The City Manager, City Attorney or staff may make announcements or reports concerning items of interest to the Council and the public.

ADJOURNMENT

January 18, 2022City Council Meeting Agenda
I, Erin Baum, Assistant City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Thursday, January 13, 2022 at 5:30 p.m. pursuant to California Government Code §54954.2.
_____________________________
Erin Baum,
Assistant City Clerk
Documents produced by the City and distributed less than 72 hours prior to the meeting regarding items on the agenda will be made available in the City Clerk's Office during normal business hours.

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City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, December 21, 2021 6:30 PM

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT
December 21, 2021
9700 7th Avenue, Council Chambers, Hesperia, CA 92345

NO CLOSED SESSION
CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 5 - Council Member Gregg, Mayor Bennington, Council Member Bird, Mayor Pro Tem
Holland and Council Member Swanson
D. A genda Revisions and Announcements by City Clerk
Item #9 was moved from Public Hearings to New Business and there was a green sheet addition to attachment #3 on Item #10.

E. Closed Session Reports by City Attorney
There was no closed session.

The City attor
ney introduced green sheet item #13 for Council’s vote to include on the current agenda.

A motion was made by Swanson, seconded by Bird, that this item be approved. The motion carried by th
e following vote:

Aye: 5 - Gregg, Bennington, Bird, Holland and Swanson
Nay: 0
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) There were no public comments.

City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

City of Hesperia

JOINT CONSENT CALENDAR
A motion was made by Bird, seconded by Swanson, that this item be approved. The motion carried by the following vote:

Aye: 5 - Gregg, Bennington, Bird, Holland and Swanson
Nay: 0

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, November 16, 2021 and December 7, 2021.

Recommend
ed Action:

It is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, November 16, 2021 a
nd December 7, 2021.

Sponsors: Assistant City Clerk Erin Baum

2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Comm
ission - Water)
Recommended Action:

It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Co
mmunity Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Hesperia Water District.

Sponsors: Director of Administrative Services Casey Brooksher

3. Annual 2022-23 Recognized Obligation Payment Schedule Recommended Action:

It is recommended that the Successor Agency adopt Resolution No. SA 2021-02, approving the Annual 2022-23 Recognized Obl
igation Payment Schedule (ROPS), including the Successor Agency’s FY 2022-23
Administrative Budget and authorize staff to present the ROPS to the Oversight Board for its consideration a
nd approval.

Sponsors: Director of Administrative Services Casey Brooksher

4. Copier and Multi-Function Printer Lease
Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to enter i
nto a five-year lease agreement with Konica Minolta Business Solutions in an amount
not-to-exceed $277,480, to replace the City-wide copier multi-function printers (MFP) with current and supp
orted machines.

Sponsors: Director of Administrative Services Casey Brooksher

5. Approve an Amendment to the Professional Services Agreement for Engineering Design Services related to the Traffic Signal at Main
Street & Sultana Street/Timberlane Avenue (C.O. No. 7159) Recommended Action:

It is recommended that the City Council:

City of Hesperia

1. Approve an amendment to the existing Professional Services Agreement (PSA) with David Evans & Associates in the amount of $77,041 plus an additional 10% contingency amount of $7,704, for a total not-to-exceed revised amount of $84,745, for additional professional services related to the project identified as Traffic Signal at Main Street & Sultana Street/Timberl
ane Avenue (C.O. No. 7159), and authorize the City Manager to execute said amendm
ent.

2. Adopt Resolution 2021-060 amending the Fiscal Year 2021-22 Capital Improvement Program Budget by appropriating an additional $84,745 in Measure I Funds to the Traffic Signal at Main Street & Sultana Street/Timberlane Avenue Project (C.O. 7159).

Sponsors: Project Construction Manager David Burkett

6. Award Contract for FY 2019-20 CDBG Street Improvements - Phase II Recommended Action:

It is recommended that the City Council award a contract for the Fiscal Year (FY) 2019-20 CDBG Street Im
provement - Phase II (C.O. 7158) project to the lowest responsive/responsible bidder, Christensen Brothers General Engineering, Inc. for the bid amount of $1,273,128; approve an additional 10% contingency in the amount of $127,313, for a total construction budget of $1,400,441; approve the design of the project represented by the plans and specifications; and authorize the City Manager to execute the contract.

Sponsors: Project Construction Manager David Burkett
Green sheet item #13 was heard immediately after consent

13. City Participation in the National Opioid Settlements Recommended Action:

It is recommended that the City Council approve the City’s participation in the National Opioid Settlements and, further, authorize the City Manager, or his designee(s), to take all actions necessary and to execute all documents necessary in order for the City to participate in the National Opioid Settlements, including, but not limited to, the execution of the following documents:

1. Settlement Participation Form/Agreement for the City’s participation in the National Opioid Settlement with McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation.

2. Settlement Participation Form/Agreement for the City’s participation in the National Opioid Settlement with Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc.

3. California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Distributor Settlement.

4. California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Janssen Settlement.

Sponsors: City Attorney Eric Dunn
A motion was made by Holland, seconded by Swanson, that this item be approved. The motion carried by the following vote:

City of Hesperia

Aye: 4 - Bennington, Bird, Holland and Swanson
Nay: 1 - Gregg

PUBLIC HEARING

7. Amendments to Title 14, Chapter 14.04 of the Hesperia Municipal Code related to water use, conservation and w
ater shortage plan.

Recommended Action:

It is recommended that the City Council and the Board of Directors of the Hesperia Water District introduce and place on first reading Ordinance No. 2021-08 regarding water use, water conservation and w
ater shortage plan; amending Title 14, Chapter 14.04 of the Hesperia Municipa
l Code.

Sponsors: Management Analyst Tina Souza
A motion was made by Holland, seconded by Bird, that this item be approved as amended. The motion carried by the following vote:

Aye: 5 - Gregg, Bennington, Bird, Holland and Swanson
Nay: 0

8. Specific Plan Amendment SPLA21-00004; Applicant: Anastasi Properties; APNs: 0405-052-03 thru 07 Recommended Action:

The Planning Commission recommends that the City Council introduce and place on first reading
Ordinance No. 2021-11 ap
proving Specific Plan Amendment SPLA21-00004 to change approximately 35 gross acres
from Office Park (OP) to Low Density Residential (LDR) with a minimum lot size of 7,200 square feet.

Sponsors: Senior Planner Ryan Leonard
A motion was made by Gregg, seconded by Bird, that this item be continued. The mo tion carried by the follow
ing vote:

Aye: 5 - Gregg, Bennington, Bird, Holland and Swanson
Nay: 0

NEW BUSINESS

9. Consider Introduction and First Reading of an Ordinance for Organic Waste Disposal Reduction in Compliance with Senate B
ill 1383
Recommended Action:

It is recommended that the City Council introduce and read, by title only and with further reading waived:

Ordinance No. 2021-012, a
n Ordinance of the City Council of the City of Hesperia Amending the Hesperia Cit
y Municipal Code in Order to Enact Regulations in Compliance with Senate Bill (SB) 1383 for the Im
plementation of Food Recovery and Organics Recycling.

Sponsors: Management Analyst Jamie Carone
A motion was made by Bird, seconded by Holland, that this item be approved. The mo tion carried by the follow
ing vote:

City of Hesperia

Aye: 4 - Bennington, Bird, Holland and Swanson
Nay: 1 - Gregg

10. Adoption of a Resolution of Intention to Form Community Facilities District No. 2021-1 (Residential Mainte
nance and Services)
Recommended Action:

It is recommended that the City Council: 1) Adopt a Resolution of Intention (Resolution No. 2021-61) With Re
spect to the Formation of Proposed City of Hesperia Community Facilities District No. CFD 2021-1 (Resident
ial Maintenance and Services) (“CFD 2021-1”).

Sponsors: Assistant City Manager Rachel Molina
A motion was made by Holland, seconded by Gregg, that this item be approved. T he motion carried by th
e following vote:

Aye: 5 - Gregg, Bennington, Bird, Holland and Swanson
Nay: 0

11. Consideration of Ad-Hoc Committee for Recreation and Parks Recommend
ed Action:

It is recommended that the City Council give staff direction regarding the establishment of an Ad-Hoc Committee consisting of two Cit
y Council Members focused on areas of mutual interest with the Hesperia Recreation
and Park District as requested by Council Member Gregg at the December 7, 2021 Council Meetin
g.

Sponsors: Director of Government Services/City Clerk Melinda Sayre A motion was made by Holland, seconded by Bird, that this item be approved forming an A d Hoc Committee.

The motion carried by the following vote:

Aye: 5 - Gregg, Bennington, Bird, Holland and Swanson
Nay: 0
Mayor Pro Tem Holland and Council Member Gregg will be the appointed City Council representatives.

12. City Council Appointments to Outside Agencies
Recommended Action:

It is recommended that the City Council follow past practice and appoint liaisons (both primary and alternate) to
various outside agencies for a one-year period to commence in January 2022.

Sponsors: Director of Government Services/City Clerk Melinda Sayre A motion was made by Holland, seconded by Gregg, that this item be approved. T he motion carried by th
e following vote:

Aye: 5 - Gregg, Bennington, Bird, Holland and Swanson
Nay: 0
(See table next page)

City of Hesperia
Agency/Commission/Committee Name Primary
Rep.

Alternate Rep.

League of California Cities(LOCC) No appointment made No appointment made LOCC Inland Empire & Desert Mountain
Divisions
No appointment made No appointment made
Mojave Desert Air Quality Management District
(MDAQMD)
Brigit Bennington Cameron Gregg
San Bernardino County Transportation Authority
(SBCTA) Board of Commissioners &
Subcommittee – Mountain/Desert Measure I
Rebekah Swanson Larry Bird
San Bernardino County Solid Waste Task Force Staff appointment Cameron Gregg Victor Valley Economic Development Authority
(VVEDA)
Brigit Bennington Rebekah Swanson
Victor Valley Transit Authority (VVTA) Larry Bird Cameron Gregg Victor Valley Wastewater Reclamation Authority
(VVWRA)
Bill Holland Larry Bird
Greater High Desert Chamber of Commerce
Liaison
(no compensation, non-voting liaison)
Brigit Bennington Larry Bird
Tri Agency Committee
(no compensation)
Brigit Bennington
Larry Bird
Rebekah Swanson
City Council Advisory Committee - (no
compensation)
Brigit Bennington Cameron Gregg

COUNCIL COMMITTEE REPORTS AND COMMENTS
Council Member Bird wished everyone a Merry Christmas, recognized the Hearn family, and commented on school status, the Christmas break, the pandemic, the new year, spending time with family, school events, congratulated the Sultana Band and Softball state champions, thanked staff and wished everyone a Happy New Year.

Council Member Swanson thanked the Hearn family and commented on weather, the school break, the drought, organic waste disposal, attendance at Hesperia High School Winter Festival, wished everyone a Merry Christmas and a blessing on the community.

Council Member Gregg thanked the Hearn Family, and commented on the weather, road safety, Christmas lights in the community, the Farmer's market, the future opening of Raising Cane's, requested an update regarding vaccine passport ordinance and copies of the pharmaceutical settlement, thanked City staff, law enforcement and fire staff.

Mayor Pro Tem Holland extended a holiday invitation to Sheriff's and Fire staff, thanked City staff, thanked the Hearn Family, and commented on mask mandates.

Mayor Bennington stated she is honored to serve as mayor, and commented on public comments being moved to the beginning of the meeting, blood donations, the weather, recognized the Hearn family, thanked Sheriffs, Fire, and Jeremy in Public Works, celebrated the recent birth of her grandson, and wished staff and Council a Merry Christmas, and a Happy New year.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
None

ADJOURNMENT

City of Hesperia
The meeting was adjourned in honor of Mayor Bennington’s grandson Jayden at 9:51PM. _____________________________
Erin Baum,
Assistant City Clerk

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City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and Council Members
City Council, as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Rosa Roman, Accountant
SUBJECT: Warrant Run Report (City – Successor Agency – Housing Authority – Community Development Commission – Water)

RECOMMENDED ACTION
It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

BACKGROUND
The Warrant Run totals represented below are for th e period November 06 , 2021 through December 03, 2021.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $2,642,863.91 $463,150.11 $0.00 $3,106,014.02 Successor Agency 6,665.00 0.00 0.00 6,665.00
Housing Authority 555.45 0.00 0.00 555.45
Community Development Commission 0.00 0.00 0.00 0.00
Water 822,475.89 206,474.44 0.00 1,028,950.33
Totals $3,472,560.25 $669,624.55 $0.00 $4,142,184.80

YEAR-TO PRIOR FY YTD

W/E W/E W/E W/E WARRANT DATE DATE
FUND # FUND NAME 11/12/2021 11/19/2021 11/26/2021 12/3/2021 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 92,660.62$ 212,102.43$ 1,597,120.21$ 18,007.91$ 1,919,891.17$ -$ 13,124,896.19$ 11,407,656.87$ 204 MEASURE I - RENEWAL 1,717.50$ -$ 2,883.50$ -$ 4,601.00$ -$ 83,531.36$ 340,236.88$ 207 LOCAL TRANSPORT-SB 325 -$ -$ -$ -$ -$ -$ 25,000.00$ 16,902.70$ 209 GAS TAX-RMRA -$ -$ -$ -$ -$ -$ 67,468.24$ 2,086,913.29$ 210 HFPD (PERS) -$ -$ -$ -$ -$ -$ 1,007,746.00$ 975,994.00$ 251 CDBG 180.94$ 36,575.00$ -$ -$ 36,755.94$ -$ 569,500.42$ 582,888.02$ 254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT -$ 6,910.70$ 1.50$ -$ 6,912.20$ -$ 19,519.49$ 9,486.37$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ -$ -$ -$ -$ 5, 404.88$ 258 CDBG-CV CARES ACT -$ -$ -$ -$ -$ -$ -$ -$
260 DISASTER PREPARED GRANT -$ -$ -$ -$ -$ -$ -$ -$ 263 STREETS MAINTENANCE 29,132.06$ 11,071.60$ 7,433.79$ 318.87$ 47,956.32$ -$ 850,475.68$ 1,250,607.17$ 300 DEV. IMPACT FEES - STREET -$ -$ -$ -$ -$ -$ 32,543.33$ 248,576.05$ 301 DEV. IMPACT FEES - STORM DRAIN 12,145.00$ -$ -$ -$ 12, 145.00$ -$ 34,064.50$ 42,296.25$
302 DEV. IMPACT FEES - FIRE -$ -$ -$ -$ -$ -$ -$ -$ 303 DEV. IMPACT FEES - POLICE 6,282.00$ -$ -$ -$ 6,282.00$ -$ 23,330.00$ -$ 304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ -$ -$ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS 6,504.37$ -$ -$ -$ 6, 504.37$ -$ 44,755.11$ -$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ -$ -$ 6,888.17$ -$ 313 DIF A-04 DRAINAGE 1,050.00$ -$ -$ -$ 1,050.00$ -$ 960,099.00$ -$ 396 DEVELOPMENT IMPACT -$ -$ -$ -$ -$ -$ -$ -$
399 FEMA-1203-DR (DISASTER) -$ -$ -$ -$ -$ -$ -$ -$ 400 2004 STREETS -$ -$ -$ -$ -$ -$ -$ -$
401 CITY DEBT SERVICES -$ -$ -$ -$ -$ -$ -$ -$
402 WATER RIGHTS ACQUISITION -$ -$ -$ -$ -$ -$ 1,074,335.70$ 1,059,536.83$ 403 2013 REFUNDING LEASE REV BONDS -$ -$ -$ -$ -$ -$ 632,972.25$ -$ 501 CFD 91-3 BELGATE -$ -$ -$ -$ -$ -$ -$ -$
504 C
ITY WIDE STREETS - CIP 1,447.48$ -$ -$ -$ 1,447.48$ -$ 329,495.17$ 212,897.50$ 509 CITY FACILITIES CIP -$ -$ -$ -$ -$ -$ -$ -$
800 EMPLOYEE BENEFITS 194,102.76$ 73,735.05$ 102,201.50$ 70,404.72$ 440,444.03$ -$ 3,315,565.16$ 3,066,395.66$ 801 TRUST/AGENCY 204.73$ 153,583.92$ (85.25)$ -$ 153,703.40$ -$ 1,413,557.57$ 1,055,119.68$ 802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$ -$ -$
804 TRUST-INTEREST BEARING 4,955.00$ 216.00$ -$ -$ 5,171.00$ -$ 26,919.00$ 65.00$ 807 CFD 2005-1 -$ -$ -$ -$ -$ -$ 929,132.65$ 1,484,406.01$ 808 HFPD (TRANSITION) -$ -$ -$ -$ -$ -$ 369,875.18$ 349,739.56$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ -$ -$ -$ -$ CITY 350,382.46$ 494,194.70$ 1, 709,555.25$ 88, 731.50$ 2, 642,863.91$ -$ 24, 941,670.17$ 24, 195,122.72$ 163 REDEVELOP OBLIG RETIREMENT-2018 6,665.00$ -$ -$ -$ 6,665.00$ -$ 7,944,168.22$ 7,586,988.44$ SUCCESSOR AGENCY 6,665.00$ -$ -$ -$ 6, 665.00$ -$ 7, 944,168.22$ 7, 586,988.44$ 370 HOUSING AUTHORITY -$ 555.45$ -$ -$ 555.45$ -$ 7,344.63$ 29,882.35$ HOUSING AUTHORITY -$ 555.45$ -$ -$ 555. 45$ -$ 7, 344.63$ 29, 882.35$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ -$ 1,135.42$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ -$ 1, 135.42$ 700 WATER OPERATING 160,506.53$ 88,280.59$ 255,390.95$ 110.95$ 504,289.02$ -$ 4,594,841.45$ 11,065,441.91$ 701 WATER CAPITAL -$ -$ -$ -$ -$ -$ 22,438.15$ 521,767.17$ 710 SEWER OPERATING 4,477.39$ 3,680.48$ 308,634.76$ -$ 316,792.63$ -$ 2,231,563.82$ 1,790,006.44$ 711 SEWER CAPITAL -$ 1,312.00$ -$ -$ 1,312.00$ -$ 149,686.37$ 981,543.03$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ -$ -$ -$ 54,882.50$ 720 RECLAIMED WATER OPERATIONS -$ 82.24$ -$ -$ 82.24$ -$ 1,154.82$ -$ WATER 164,983.92$ 93,355.31$ 564, 025.71$ 110. 95$ 822, 475.89$ -$ 6, 999,684.61$ 14, 413,641.05$ ACCOUNTS PAYABLE TOTAL 522,031.38$ 588,105.46$ 2, 273,580.96$ 88, 842.45$ 3, 472,560.25$ -$ 39, 892,867.63$ 46, 226,769.98$ REG. PAYROLL
City 233,050.33$ -$ 230,099.78$ -$ 463,150.11$ -$ 2,620,917.09$ 2,340,090.29$ Housing Authority -$ -$ -$ -$ -$ -$ 745.24$ 1,873.18$ Water 103,452.96$ -$ 103,021.48$ -$ 206,474.44$ -$ 1,128,196.11$ 1,117,742.49$ PAYROLL TOTAL 336,503.29$ -$ 333, 121.26$ -$ 669, 624.55$ -$ 3, 749,858.44$ 3, 459,705.96$ City of Hesperia

WARRANT RUNS
11/06/2021 - 12/03/2021
* The year to date totals for this Warrant Report are for the 2021-22 fiscal year starting July 1, 2021; however, the year-to-date totals include a total of $219,412.79 in payments issued on 6/28/21 and 6/29/21.

Attachment 1

City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and Council Members
City Council, Serving as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Nichole Eddleman, Financial Analyst
SUBJECT: Treasurer’s Cash Report for the unaudited period ended October 31, 2021.

RECOMMENDED ACTION
It is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

BACKGROUND
This report is presented to the City Council pursuant to Government Co de Section 53646 (b) setting forth the City’s investment portfolio.

ISSUES/ANALYSIS
The Treasurer’s Cash Reports are presented on the following pages for each agency.

FISCAL IMPACT
These reports reflect unaudited cash balances as of October 31, 2021.

ALTERNATIVE(S)
Provide alternative direction to staff.

ATTACHMENT(S)

1. City of Hesperia Investment Report

2. Successor Agency to the Hesperia Community Redevelopment Agency Investment Report

3. Hesperia Housing Authority Investment Report

4. Community Development Commission Investment Report

5. Hesperia Water District Investment Report

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
January 18, 2022

FUND VALUE
General Fund (100 & 800) 9,512,316.35$
Fire District Fund (200) 321.00
HFPD (PERS) (210) 2,418,569.18
AB27666 - Transit (254) 23,904.39
AB3229 Supplemental Law (255) 145,773.87
AD No. 91-1 (802) 372,370.94
Beverage Recycling Grant (256) 213,319.35
CFD 2005-1 (807) 564,626.42
HFPD Transition (808) 22,723.06
City Wide-Capital Projects (504) (760,931.89)
Community Dev Block Grant (251, 252, & 253) 349,989.19
American Rescue Plan Grant (261) 11,704,022.47
Development Impact Fund (300-304) 5,576,492.67
Development Impact Fund 2018 (306-312) 9,547,626.51
Development Impact Fund A-04 Drainage (313) (10,003.56) CDBG-CV Cares Act (258) 0.00
Disaster (260) 44,156.39
Gas Tax Fund (205) 627,025.87
Gas Tax - RMRA (209) 1,205,801.03
Gas Tax Swap (206) 512,377.55
Local Transportation SB325 (207) 2,314,576.26
Measure I - Renewal (204) 6,930,034.66
Neighborhood Stabilization Prog (257) 2,876,235.92
Public Works Street Maint (263) 770,275.19
Trust Fund (801, 803-806, & 815) 1,866,512.13
2012 Water Rights Acquisition (402) 548,507.26
2013 Refunding Lease Rev Bonds (403) 1,460,617.13
TOTAL CITY FUNDS 58,837,239.34$

CITY OF HESPERIA

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
January 18, 2022

FUND VALUE
RORF Retention - (163) 326,051.63$

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

FUND VALUE
Hesperia Housing Authority Fund (370) 3,322,163.70$
VVEDA Housing Authority (371) 1,821,170.89
TOTAL HOUSING AUTHORITY FUNDS 5,143,334.59$

HESPERIA HOUSING AUTHORITY

FUND VALUE
Community Development Commission Fund (170) (600,672.50)$

COMMUNITY DEVELOPMENT COMMISSION

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
January 18, 2022

VALUE
Water Operating (700) 10,608,595.80$
Water Capital (701) (7,249,673.60)
Water Capital Rehab and Replace (703) 1,421,825.50
Water Contamination Mitigation (704) 1,916,497.05
Sewer Operating (710) 13,923,436.94
Sewer Capital (711) 3,236,145.94
Sewer Capital Rehab and Replace (713) 740,692.51
Reclaimed Water Operations (720) (235,632.09)
TOTAL WATER FUNDS 24,361,888.05$
1 WATER
FUND

City of Hesperia
Investment Report
Unaudited
October 31, 2021
Institution/ I nterest Date of Date of Par Value Book Market Type of Investment Fiscal Agent Rate Purchase Maturity at Maturity Value Value Investments under the direction of the C!n':

Local Agency Investment Funds State of Calif. 0.203% 31-Oct-21 Demand $ 55,563,307.23 $ 55,563,307.23 55,563,307.23 Local Bank Checking Accounts U.S. Bank n/a 31-Oct-21 Demand 3,273,932.01 3,273,932.01 3,273,932.01 Total Unaudited Investments under the direction of the City $ 58,837,239.24 $ 58,837,239.24 $ 58,837,239.24 Investments under the direction of fiscal agents:
2012 Lease Revenue Bonds US Bank 0.000% 31 -Oct-21 Demand 0.60 0.60 2012 Lease Revenue Bonds US Bank 0.000% 31 -Oct-21 Demand 120.74 120.74 2012 Lease Revenue Bonds US Bank 0.000% 31-Oct-21 Demand 1,452,137.35 1,452,137.35 2012 Lease Revenue Bonds US Bank 0.000% 31 -Oct-21 Demand 0.31 0.31 2013 Refunding Lease Revenue Bonds US Bank 0.000% 31 -Oct-21 Demand 1.42 1.42 2013 Refunding Lease Revenue Bonds US Bank 0.000% 3 1-Oct-21 Demand 1,149,850.42 1,149,850.42 2013 Refunding Lease Revenue Bonds US Bank 0.000% 31 -Oct-21 Demand 0.31 0.31 2014 CFD 2005-1 Refunding US Bank 0.000% 31-Oct-21 Demand 134.98 134.98 2014 CFD 2005-1 Refunding US Bank 0.000% 31 -Oct-21 Demand 0.77 0.77 2014 CFD 2005-1 Refunding US Bank 0.000% 31 -Oct-21 Demand 1,428,095.90 1,428,095.90 2014 CFD 2005-1 Refunding US Bank 0.000% 31 -Oct-21 Demand 23,889.82 23,889.82 Deposits - Workers' Comp PERMA n/a 31 -Oct-21 n/a 1 ,602,908.46 1,602,908.46 Total Unaudited Investments under the direction of fiscal agents $ 5,657,141.08 5,657,141.08 Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. • Note: 2005 Certificates of Participation began in May 2005 for the finacing of the Civic Plaza.

City.xlsx

0.60 120.74
1,452, 137.35

0.31 1.42
1,149,850.42

0.31 134.98

0.77 1,428,095.90
23,889.82
1,602,908.46
5,657,141.08
ATTACHMENT 1
Account
Description
2012 - Water Rights Revenue Fund
2012 - Water Rights Interest Fund
2012 - Water Rights Reserve Fund
2012 - Water Rights Surplus Revenue Fund
2005 Civic Plaza - Revenue Fund
2005 Civic Plaza - Reserve Fund
2005 Civic Plaza - Surplus Rev Fund
~ 2014 CFD 05-1 - Special Tax Fund
2014 CFD 05-1 - Bond Fund
2014 CFD 05-1 - Reserve Fund
2014 CFD 05-1 Administrative Expense Bonds 1
GL 1352

Issuer/
Type of Investment Institution
Investments under the direction of the Cit :

Successor Agency to the Redevelopment Agency
Investment Report
Unaudited
October 31, 2021
Interest Date of Date of Par Value Book
Rate Purchase Maturity at Maturity Value
Local Agency Investment Funds State of Calif. 31 -Oct-21 Demand $ 307,90:F--307,90~ Local Bank Checking Accounts U.S. Bank 31 -Oct-21 Demand 18,1 42.78 18,142.78 Total Unaudited Investments under the direction of the City $ 326,051.63 $ 326,051.63 $ Investments under the direction of fiscal a ents:
2018 Refunding Bonds US Bank 0.000% 31-Oct-21 Demand 0.03 0.03 2018 Refunding Bonds US Bank 0.020% 31 -Oct-21 Demand 39.52 39.52 2018 Refunding Bonds US Bank 0.000% 31 -Oct-21 Demand 9,799,443.76 1.00 Total Unaudited Investments under the direction of fiscal agents $ 9,799,483.31 $ 40.55 $ Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, ATTACHMENT 2
Market Account
Value Description
307,908.85 1
18,142.78
326,051.63

0.03 2018A & 20188 • Debt Service Account

39.52 2018A & 20188 - Interest Account
9,799,443.76 2018A & 20188. Reserve Account
9,799,483.31
as required by the California Government Code sections 53646(b)(2) and (3), respectively. ~ _ / - ~~---
* Note: The 2005 and 2007 Series Bonds were refinanced to 2018 Series Bonds in November 2018. ·v; gtma Villasenor, Senior Accountant Successor -RDA.xlsx

Type of Investment
Hesperia Housing Authority
Investment Report
Unaudited
October 31, 2021
Issuer/
Institution
Interest Date of Date of
Rate Purchase Maturity
Investments under the direction of the Ci~
[~ Local Agency Investment Funds T State of California 0.203% ~
L Local Bank Checking Accounts ~ U.S. Bank n/a
31-Oct-2
31-Oct-2
1 Demand
1 Demand
$
Par Value
at Maturity
4,857,139.52
286,195.07
ATTACHMENT 3
Book
Value
4,857,139.52
286,195.07
-
Market
Value
-
4,857,139.52
286,195.07
Total Unaudited Investments under the direction of the City $ 5,143,334.59 $ 5,143,334.59 $ 5,143,334.59 I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.

Housing Authority .xlsx

Hesperia Community Development Commission
Investment Report
Unaudited
Type of Investment
Issuer/
Institution
October 31, 2021
Interest
Rate
Date of Date of
Purchase Maturity
Investments under the direction of the City:

L Local Agency Investment Funds State of California -1----- 0.203% 31-Oct-2 L Local Bank Checking Accounts U.S. Bank n/a 31-Oct-2
-
1 Demand
1 Demand
$
Par Value
at Maturity
(567,248.75)
(33,423.75)
ATTACHMENT 4
Book
Value
(567,248.75)
(33,423.75)
Market
Value
(567,248.75)
(33,423.75)
Total Unaudited Investments under the direction of the City $ (600,672.50) $ (600,672.50) $ (600,672.50) I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. ~· ~~ ;I ,ri,n,aiasenor, emor ccoun an
Community Develop .xlsx

Type of Investment
Investments under the direction of the Cit :

Issuer/
Institution
Local Agency Investment Funds State of California
Local Bank Checking Accounts -~- U.S. Bank
Hesperia Water District
Investment Report
Unaudited
October 31, 2021
Interest Date of Date of
Rate Purchase Maturity
31-Oct-21 Demand $
31-Oct-21 Demand
Total Unaudited Investments under the direction of the City $ Investments under the direction of fiscal a ents:
[ Deposits - Workers' Comp PERMA =r::::r, ,a I 31-0ct-?fr n/a I Total Unaudited Investments under the direction of fiscal agents $ Par Value
at Maturity
23,006,298.19
1,355,589.86
24,361,888.05
832,144~
832,144.65
Book
Value
$ 23,006,298.19
1,355,589.86
$ 24,361,888.05
a32, 144.65 1
$ 832,144.65
Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.

Water.xlsx
$
$
ATTACHMENT 5
Market
Value
23,006,29~~
1,355,589.86
24,361,888.05
Account
Description
832,144.65}GL 1352
832,144.65

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and Council Members
City Council, Serving as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Nichole Eddleman, Financial Analyst
SUBJECT: Treasurer’s Cash Report for the unaudited period ended November 30, 2021.

RECOMMENDED ACTION
It is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

BACKGROUND
This report is presented to the City Council pursuant to Government Co de Section 53646 (b) setting forth the City’s investment portfolio.

ISSUES/ANALYSIS
The Treasurer’s Cash Reports are presented on the following pages for each agency.

FISCAL IMPACT
These reports reflect unaudited cash balances as of November 30, 2021.

ALTERNATIVE(S)
Provide alternative direction to staff.

ATTACHMENT(S)

1. City of Hesperia Investment Report

2. Successor Agency to the Hesperia Community Redevelopment Agency Investment Report

3. Hesperia Housing Authority Investment Report

4. Community Development Commission Investment Report

5. Hesperia Water District Investment Report

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
January 18, 2022

FUND VALUE
General Fund (100 & 800) 9,494,637.53$
Fire District Fund (200) 321.00
HFPD (PERS) (210) 2,499,485.85
AB27666 - Transit (254) 23,904.39
AB3229 Supplemental Law (255) 155,276.47
AD No. 91-1 (802) 372,370.94
Beverage Recycling Grant (256) 206,381.68
CFD 2005-1 (807) 742,514.07
HFPD Transition (808) 22,723.06
City Wide-Capital Projects (504) (763,797.32)
Community Dev Block Grant (251, 252, & 253) 313,789.36
American Rescue Plan Grant (261) 11,704,022.47
Development Impact Fund (300-304) 5,558,065.67
Development Impact Fund 2018 (306-312) 9,779,692.44
Development Impact Fund A-04 Drainage (313) (11,053.56) CDBG-CV Cares Act (258) 0.00
Disaster (260) 44,156.39
Gas Tax Fund (205) 789,123.39
Gas Tax - RMRA (209) 1,365,044.12
Gas Tax Swap (206) 625,789.17
Local Transportation SB325 (207) 2,314,576.26
Measure I - Renewal (204) 7,129,706.37
Neighborhood Stabilization Prog (257) 2,876,235.92
Public Works Street Maint (263) 689,799.84
Trust Fund (801, 803-806, & 815) 1,864,597.04
2012 Water Rights Acquisition (402) 548,507.26
2013 Refunding Lease Rev Bonds (403) 1,532,871.30
TOTAL CITY FUNDS 59,878,741.11$

CITY OF HESPERIA

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
January 18, 2022

FUND VALUE
RORF Retention - (163) 319,386.63$

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

FUND VALUE

Hesperia Housing Authority Fund (370) 3,618,668.40$
VVEDA Housing Authority (371) 1,821,170.89
TOTAL HOUSING AUTHORITY FUNDS 5,439,839.29$

HESPERIA HOUSING AUTHORITY

FUND VALUE
Community Development Commission Fund (170) (600,672.50)$

COMMUNITY DEVELOPMENT COMMISSION

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
January 18, 2022
VALUE
Water Operating (700) 11,739,102.58$
Water Capital (701) (6,943,944.60)
Water Capital Rehab and Replace (703) 1,421,825.50
Water Contamination Mitigation (704) 1,916,497.05
Sewer Operating (710) 13,728,085.47
Sewer Capital (711) 3,269,002.19
Sewer Capital Rehab and Replace (713) 740,692.51
Reclaimed Water Operations (720) (235,790.65)
TOTAL WATER FUNDS 25,635,470.05$
1 WATER
FUND

Institution/
Type of Investment Fiscal Agent
Investments under the direction of the Cit :

Interest
Rate
City of Hesperia
Investment Report
Unaudited
November 30, 2021
Date of
Purchase
Date of
Maturity
Par Value
at Maturity
Book
Value
Market
Value
Local Agency Investment Funds State of Calif. 0.203% -+-3_0-_N_ov_-2_1-+-_De_m_a_nd l ~-
$ 55,648,751 .42 55,648,751.42 55,648,751 .42
Local Bank Checking Accounts U.S. Bank n/a 30-Nov-21 Demand 4,229,989.69 4,229,989.69 4,229,989.69 Total Unaudited Investments under the direction of the City $ 59,878,741.11 $ 59,878,741.11 $ 59,878,741.11 Investments under the direction of fiscal agents:
2012 Lease Revenue Bonds
2012 Lease Revenue Bonds
2012 Lease Revenue Bonds
2012 Lease Revenue Bonds
2013 Refunding Lease Revenue Bonds
2013 Refunding Lease Revenue Bonds
2013 Refunding Lease Revenue Bonds
2014 CFO 2005-1 Refunding
2014 CFO 2005-1 Refunding
2014 CFO 2005-1 Refunding
2014 CFO 2005-1 Refunding
Deposits - Workers' Comp
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank ---
PERMA
·-~
-t-
-f-
f-
~
-

0.000% 30-Nov-21
-f-

0.000% 30-Nov-21

0.000% 30-Nov-21

0.000% 30-Nov-21

0.000% 30-Nov-21
f-

0.000% 30-Nov-21
-f-

0.000% 30-Nov-21

0.000% 30-Nov-21

0.000% 30-Nov-21

0.000% 30-Nov-21 -

0.000% 30-Nov-21 -~
n/a 30-Nov-21
Total Unaudited Investments under the direction of fiscal agents Demand 0.60 0.60 -
Demand 120.74 120.74
Demand 1,452,143.63 1,452,143.63
Demand 0.31 0.31 -- -
Demand 1.42 1.42 --
Demand 1,149,855~ 1,149,855.39 - - -
Demand 0.31 0.31 - f--
Demand 134.98 134.98
Demand 0.77 0.77 - - - ~
Demand 1,428,102.07 1,428,102.07 - -
Demand 23,889.92 23,889.92
n/a 1 ,602,908.46 1,602,908.46
$ 5,657, 158.60 5,657, 158.60
Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2} and (3), respectively. • Note: 2005 Certificates of Participation began in May 2005 for the finacing of the Civic Plaza.

City.xlsx

0.60 120.74
1,452,143.63

0.31 1.42
1,149,855.39

0.31 134.98

0.77 1,428,102.07
23,889 92_
1,602,908.46
5,657,158.60
ATTACHMENT 1
Account
Description
~
2012 - Water Right s Revenue Fund
2012 - Water Right s Interest Fund
2012 - Water Right s Reserve Fund -------,
2012 - Water Right s Surplus Revenue Fund
2005 Civic Plaza - Revenue Fund -
2005 Civic Plaza - Reserve Fund
2005 Civic Plaza - Surplus Rev Fund
2014 CFO 05-1 - S pecial Tax Fund
2014 CFO 05-1 - B ond Fund
2014 CFO 05-1 - R eserve Fund I
ministrative Expense Bonds ] 2014 CFO 05-1 Ad
GL 1352

Issuer/
Type of Investment Institution
Investments under the direction of the Cit :

Local Agency Investment Funds State of Calif.

Local Bank Checking Accounts U.S. Bank
Successor Agency to the Redevelopment Agency
Investment Report
Unaudited
November 30, 2021
Interest Date of Date of Par Value Book
Rate Purchase Maturity at Maturity Value

0.203% 30-Nov-21 Demand $ 296,824.33 $ 296,824.33
n/a 30-Nov-21 Demand 22,562.30 22,562.30
Total Unaudited Investments under the direction of the City $ 319,386.63 $ 319,386.63 nves men s un er e irec 10n o t t d th d' f 1sca agen s: ff t ATTACHMENT 2
Market Account
Value Description
296,824.33
22,562.30
$ 319,386.63
-
2018 Refunding Bonds US Bank 0.000% 30-Nov-21 Demand O.Q3 0.03 O.Q3 2018A & 2018B - Debt Service Account - ~ ~ 2018 Refunding Bonds US Bank 0.020% 30-Nov-21 Demand 39.52 39.52 39.52 2018A & 2018B - Interest Account 2018 Refunding Bonds US Bank 0.000% 30-Nov-21 Demand 9,799,443.76 1.00 9,799,443.76 2018A & 2018B - Reserve Account Total Unaudited Investments under the direction of fiscal agents $ 9,799,483.31 $ 40.55 $ 9,799,483.31 Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. ~ * Note: The 2005 and 2007 Series Bonds were refinanced to 2018 Series Bonds in November 2018. v/Fginialiiasenor,Senior Accountant Successor -RDA.xlsx
·-

Type of Investment
Investments under the d' 1rec 10n o f
F-
Funds Local Agency Investment
Local Bank Checking Acco unts
Hesperia Housing Authority
Investment Report
Unaudited
November 30, 2021
Issuer/
Institution
Interest Date of Date of
Rate Purchase Maturity
e 1:y: f th c·t
State of California 0.203% 30-Nov-21 Demand
U.S. Bank n/a 30-Nov-21 Demand
Total Unaudited Investments under the direction of the City $
Par Value
at Maturity
5,055,554.92
384,284.37
ATTACHMENT 3
Book
Value
-
5,055,554.92
384,284.37
Market
Value
5,055,554.92
384,284.37
$ 5,439,839.29 $ 5,439,839.29 $ 5,439,839.29
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. v:-~-~ t t 1rgm1a , asenor, emor ccoun an
Housing Authority .xlsx

Type of Investment
Hesperia Community Development Commission
Investment Report
Unaudited
Issuer/
Institution
November 30, 2021
Interest
Rate
Date of Date of
Purchase Maturity
Par Value
at Maturity
nves mens un er e 1rec 10n o t t d th d' f e 1:y: f th c·t Local Agency Investment Funds State of California 0.203% 30-Nov-21 Demand $ (558,239.44) Local Bank Checking Accounts U.S. Bank n/a 30-Nov-21 Demand (42,433.06) ATTACHMENT 4
Book
Value
(558,239.44)
(42,433.06)
Market
Value
-
(558,239.44)
(42,433.06)
Total Unaudited Investments under the direction of the City $ (600,672.50) $ (600,672.50) $ (600,672.50) I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.

Community Develop .xlsx

Type of Investment
Issuer/
Institution
Investments under the direction of the Cit
l
Local Agency Investment Funds State of California
Local Bank Checking Accounts U.S. Bank
Hesperia Water District
Investment Report
Unaudited
November 30, 2021
Interest Date of Date of
Rate Purchase Maturity
30-Nov-21 Demand $
30-Nov-21 Demand
Par Value
at Maturity
23,824,513.91
1,810,956.14
Book
Value
23,824,513.91
1,810,956.14
Total Unaudited Investments under the direction of the City $ 25,635,470.05 $ 25,635,470.05 Investments under the direction of fiscal a ents:
30-Nov-21 T n/a [peposits - Workers' Comp __,~ PERMA ~ /a_~ I a32,144.6s I Total Unaudited Investments under the direction of fiscal agents $ 832,144.65 $ Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.

Water.xlsx
832,144.65 I
832,144.65
$
$
ATTACHMENT 5
Market
Value
23,824,513.91
1,810,956.14
25,635,470.05
Account
Description
832,144.651 GL 1352
832,144.65

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and Council Members
Chair and Board Members, Hesperia Housing Authority
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne M. Duke, Deputy Finance Director
Victor Knight, Economic Development Manager
SUBJECT: Audited Hesperia Housing Authority Financial Statements for Fiscal Year Ended June 30, 2021 and Housing Successor SB 341 Report

RECOMMENDED ACTION
It is recommended that the City Council and the Hesperia Housing A uthority (HHA) Board receive and file the audited Hesperia Housing Authority - Component Unit Financial Statements for the Fiscal Year Ended June 30, 2021 and Housing Successor SB 341 Report.

BACKGROUND
State law requires city governments to be audited each fiscal year by an independent auditor.

City governments that receive Federal funding in excess of $750,000 in a fiscal year are also required by Federal law to be audited.

The State of California Health and Safety Code §34176.1(f) requires that the h ousing successor (HHA) shall conduct, and provide to its governing body, an independent financial audit of the Low and Moderate Income Housing Asset fund within six months after the end of each fiscal year. In addition, the housing successor shall provide to its governing body the SB 341 report, as a component of the HHA audit.

ISSUES/ANALYSIS
The Agency's independent auditor, CliftonLarsonAllen LLP (CLA) performed an audit of the HHA for Fiscal Year 2020-21. The document that comprises the Financial Statements, commonly referred to as the Audit for the Authority, is the Hesperia Housing Authority - Component Unit Financial Statements – June 30, 2021.

Additionally, on December 31, 20 21, the HHA provided the Board with the audited financial statements and SB 341 Report, which satisfies the legal requirement set forth by the State, refer to Attachment 3.

As in previous years, the Annual Comprehensive Financial Report, which reflects the Citywide Financial Statements, Component Unit Financial Statements for the Fire Protection District, Community Development Commission, HHA, and Water District, as well as the Single Audit, will be formally presented to the City Council in April of 2022.

Staff Report to the Mayor and Council Members and Board of Directors of the Hesperia Housing Authority Audited Hesperia Housing Authority Financial Statements for Fiscal Year Ended June 30, 2021 January 18, 2022

FISCAL IMPACT
None.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. June 30, 2021 Component Unit Financial Statements for the Hesperia Housing Authority

2. SB 341 Housing Successor Report

3. December 31, 2021 memo to the Board of Directors

HESPERIA HOUSING AUTHORIT
Y

COMPONENT UNIT

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2021
Attachment 1

HESPERIA HOUSING AUTHORITY

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 3

FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 8
STATEMENT OF ACTIVITIES 9
BALANCE SHEET 10

RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION – GOVERNMENTAL FUNDS
11 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS
12 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES TO THE STATEMENT OF
ACTIVITIES – GOVERNMENTAL FUNDS
13 NOTES TO FINANCIAL STATEMENTS 14

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE – HESPERIA HOUSING

AUTHORITY SPECIAL REVENUE FUND
25 BUDGETARY COMPARISON SCHEDULE – VVEDA HOUSING AUTHORITY

SPECIAL REVENUE FUND
26 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 27

CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member‐firm‐disclaimer for details. 1 CliftonLarsonAllen LLP
CLAconnect.com

INDEPENDENT
AUDITORS’ REPORT
Board of Directors
Hesperia Housing Authority
Hesperia, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each major fund of the Hesperia Housing Authority (the Authority) (a component unit of the City of Hesperia) as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Board of Directors
Hesperia Housing Authority
2 Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Hesperia Housing Authority as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison schedules identified as Required Supplementary Information (RSI) in the accompany ing table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financia l statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the RSI in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the informat ion because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our report dated December 30, 2021, on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Carlsbad, California
December 30, 2021

3 MANAGEMENT’S DISCUSSION AND ANALYSIS
Our discussion and analysis of the Hesperia Housing Authority’s (Authorit y) financial performance
provides an overview of the Authority’s financial activities for the fiscal year (FY) ending June 30, 2021. Please read it in conjunction with the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
During FY 2020-21, the Authority’s net position decreased by $1.8 million. This decrease is primarily the result of a $1.4 million reduction in the book value of land held for resale to reflect current market conditions, along with the recognition of $0.4 million in homebuyer assistance loans.

USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the Authority as a whole and present a longer-term view of the Authority’s finances. Fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the Authority’s operations in more detail than the government- wide statements by providing information about the Authority’s most significant funds.

REPORTING THE AUTHORITY AS A WHOLE
The discussion and analysis provided here are intended to serve as an introduction to the Authority’s basic financial statements. The basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements themselves.

Government-Wide Financial Statements
One of the most important questions asked about the Authority’s finances is, “Is the Authority as a whole better off or worse off as a result of this year’s activities?” The Government-Wide Statements – The Statement of Net Position and the Statement of Activities – report information about the Authority as a whole and about its activities in a way that helps answer this question.

These statements include all assets and liabilities using the accrual basis of accounting method, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

The statement of net position presents financial information on all of the Authority’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position.

Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating.

The statement of activities presents information showing how the Authority’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows .

Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

REPORTING THE AUTHORITY’S MOST SIGNIFICANT FUNDS
Fund Financial Statements – A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Authority, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The Authority uses a governmental fund to account for its operations.

4 Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.

By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

Notes to the Financial Statements – The notes provide additional information that is necessary to acquire a full understanding of the data provided in the government-wide and fund financial statements.

THE HESPERIA HOUSING AUTHORITY AS A WHOLE
Our analysis focuses on the Condensed Statement of Net Position (Table 1) and Changes in Net Position (Table 2) of the Authority. As noted earlier, net position over time, may serve as a useful indicator of a government’s financial position.

The following is a brief explanation for the changes in Table 1 above for the fiscal year ending June 30, 2021:
 Current and other assets in the amount of $12.6 million decreased by $1.4 million from the year ending June 30, 2020. This is a result of an adjustment to land held for resale to reflect current market conditions.
 Due to depreciation, capital assets decreased during the year by $459, and is now fully depreciated.
2020 2021 Amount Percentage
Current and other assets 13,983,324 $ 12,632,458 $ (1,350,866)$ -10% Capital assets 459 - (459) -100%
Total assets 13,983,783 12,632,458 (1,351,325) -10%
Total deferred outflow of resources - - - 0%
Current liabilities 12,395 429,708 417,313 3367%
Total liabilities 12,395 429,708 417,313 3367%
Total deferred inflow of resources - - - 0%
Net Position:

Investment in capital assets 459 - (459) -100%
Restricted 13,970,929 12,202,750 (1,768,179) -13%
Total Net Position 13,971,388 $ 12,202,750 $ (1,768,638)$ -13% Table 1
Condensed Statement of Net Position
Changes from 2020 to 2021

5  Current liabilities totaled $429,708 at June 30, 2021, an increase of $0.4 million, which is primarily attributed to a $428,554 obligation to reimburse the City of Hesperia’s Neighborhood Stabilization Program for homebuyer assistance loans authorized by the Authority.  Total Net Position is shown to decrease by $1.8 million; this is due to the reduction of land held for resale of $1.4 million and an increase in liabilities of $0.4 million, resulting from the Authority’s obligation to reimburse the City of Hesperia’s Neighborhood Stabilization Program for homebuyer assistance loans authorized by the Authority.

FINANCIAL ANALYSIS OF THE AUTHORITY’S FUNDS
At year-end, the Authority’s governmental funds reported combined fund balances of $12.2 million.
 The fund balance of the Hesperia Housing Authority Fund is $10.4 million, which is restricted for low and moderate income housing functions. The Fund balance has decreased by $1.8 million from June 30, 2020. As described, the decrease is primarily due to the $1.4 million reduction in land held for resale to reflect current market conditions, as well as the recognition of $0.4 million of homebuyer assistance loans.
 The Victor Valley Economic Development Agency (VVEDA) Housing Authority Fund balance is $1.8 million, which is a modest increase fr om June 30, 2020. The primary reason is that VVEDA funds must be utilized for low and moderate income housing functions in the VVEDA target area.
2020 2021 Amount Percentage
Revenues
General revenues:

Income from money and property 127,589 46,568 (81,021) -64% Other 119,840 92,208 (27,632) -23%
Total revenues 247,429 138,776 (108,653) -44% Expenses
Development Services 94,463 1,907,414 1,812,951 1919% Total expenses 94,463 1,907,414 1,812,951 1919% Change in net position 152,966 (1,768,638) (1,921,604) -1256% Net position at July 1 13,818,422 13,971,388 152,966 1% Net position at June 30 13,971,388 $ 12,202,750 $ (1,768,638)$ -13%

AUTHORITY ACTIVITIES
As shown in Table 2, the Authority’s expens es at June 30, 2021 total $1.9 million. The Fiscal Year
(FY) 2020-21 expenditures are $1.8 million more than the FY 2019-20 expenditures of $0.1 million. This year’s increase is primarily due to an adjustment in the value of land held for
resale of $1.4 million, as well as the recognition of $0.4 million of homebuyer assistance program
loans. The Authority’s revenue shows a decrease of $0.1 million, which is primarily the result
of $81,021 in reduced interest income due to lower interest rates in FY 2020-21, and a $30,218 home rehabilitation loan repayment that occurred in the prior fiscal year (FY 2019-20).

Table 2
Changes in Net Position Changes from 2020 to 2021

6 CAPITAL ASSETS
The capital assets of the Authority, as shown in Table 3, are those assets that are used in the performance of the Authority’s functions. As of June 30, 2021, capital assets of the Authority are fully depreciated.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
In Fiscal Year 2021-22, the Authority’s budget anticipates expenditures of approximately $66,650 to maintain current operations. The expenditures are offset by anticipated revenue of $0.2 million.

CONTACTING THE AUTHORITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general overview of the Authority’s finances and to show the Authority’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Authority’s Finance Department, at the City of Hesperia, 9700 Seventh Avenue, Hesperia, California 92345.

Balance at
July 1, 2020
Net of
Accumulated
Depreciation Increases Decreases
Current Year
Depreciation
Balance at
June 30, 2021
Net of
Accumulated
Depreciation
Governm ental A ctivities:

Equipment and vehicles 459 $ - $ - $ (459)$ - $
459 $ - $ - $ (459)$ - $
Table 3
Capital Assets at Year-end

7 FINANCIAL STATEMENTS

HESPERIA HOUSING AUTHORITY

STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Financial Statements.
8 ASSETS
Current Assets:

Cash and Cash Equivalents 5,460,766$
Receivables:

Accrued Interest 3,883
Land Held for Resale 7,158,001
Total Current Assets 12,622,650
Noncurrent Assets:

Other Noncurrent Assets:

Deposits 9,808
Notes Receivable 22,863,572
Allowance for Notes Receivable (22,863,572)
Total Other Noncurrent Assets 9,808
Capital Assets:

Equipment and Vehicles 6,596
Less: Accumulated Depreciation (6,596)
Total Capital Assets -
Total Noncurrent Assets 9,808
Total Assets 12,632,458

LIABILITIES
Current Liabilities:

Accounts Payable and Other Current Liabilities 1,154
Due to City of Hesperia 428,554
Total Current Liabilities 429,708

NET POSITION
Restricted for Low Income Housing 12,202,750
Total Net Position 12,202,750$
Governmental
Activities

HESPERIA HOUSING AUTHORITY

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
9 Net (Expense)
Revenue and
Changes in
Net Position
Operating Capital
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities Primary Government:

Governmental Activities:

Development Services 1,907,414$ -$ -$ -$ (1,907,414)$ Total Governmental Activities 1,907,414$ -$ -$ $ - (1,907,414)

GENERAL REVENUES
Income from Money and Property 46,568
Other 92,208
Total General Revenues 138,776
CHANGE IN NET POSITION (1,768,638)
Net Position - Beginning of Year 13,971,388
NET POSITION - END OF YEAR 12,202,750$
Program Revenues

HESPERIA HOUSING AUTHORITY

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2021
See accompanying Notes to Financial Statements.
10 Hesperia VVEDA Total Housing
Housing Housing Authority
Authority Authority Funds
ASSETS
Cash and Cash Equivalents 3,641,925$ 1,818,841$ 5,460,766$ Accrued Interest 2,587 1,296 3,883
Notes Receivable - 22,863,572
Allowance for Notes Receivable
22,863,572
(22,863,572) - (22,863,572)
Land Held for Resale 7,158,001 - 7,158,001
Total Assets 10,802,513$ 1,820,137$ 12,622,650$

LIABILITIES AND FUND BALANCES

LIABILITIES
Accounts Payable and Other Current Liabilities 1,154$ -$ 1,154$ Due to City of Hesperia 428,554 - 428,554
Total Liabilities 429,708 - 429,708

FUND BALANCES
Restricted:

Low Income Housing 10,372,805 1,820,137 12,192,942 Total Liabilities and Fund Balances 10,802,513$ 1,820,137$ 12,622,650$

HESPERIA HOUSING AUTHORITY

RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION

GOVERNMENTAL FUNDS
JUNE 30, 2021
See accompanying Notes to Financial Statements.
11 Total Fund Balances - Governmental Funds 12,192,942$ Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental therefore are not reported in the governmental funds balance sheet.

Cost 6,596$
Less: Accumulated depreciation (6,596) -
Deposits with insurance providers to pay for long-term liabilities are not current financial resources to the governmental funds. 9,808 Total Net Position 12,202,750$

HESPERIA HOUSING AUTHORITY

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
12 Hesperia VVEDA Total Housing
Housing Housing Authority
Authority Authority Funds

REVENUES
Use of Money and Property 37,535$ 9,033$ 46,568$ Other Revenues 92,208 - 92,208
Total Revenues 129,743 9,033 138,776

EXPENDITURES
Current:

Development Services 1,906,981 - 1,906,981

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,777,238) 9,033 (1,768,205) Fund Balances - Beginning of Year 12,150,043 1,811,104 13,961,147 FUND BALANCES - END OF YEAR 10,372,805$ 1,820,137$ 12,192,942$

HESPERIA HOUSING AUTHORITY

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
13 Net Change in Fund Balances - Total Governmental Funds (1,768,205)$ Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures; however, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation and disposal exceeded capital outlays in the current period.

Depreciation Expense (459)
Recording of long-term deposits are included in governmental activities in the government-wide Statement of Activities. 26 Change in Net Position of Governmental Activities (1,768,638)$

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
14 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity
The Hesperia Housing Authority (Authority), which is a subsidiary component unit of the City of Hesperia (City), was established on April 5, 2011 by Resolution No. 2011-022 of the City Council. The Hesperia Housing Authority was activated when the dissolution of the former Hesperia Community Redevelopment Agency occurred on February 1, 2012.

The Authority develops, manages, and promotes programs and projects that preserve and improve the supply of affordable housing in the City for low and moderate income persons.

B. Basis of Presentation
The accounting policies of the Authority conform to accounting principles generally accepted in the United States of America as they are applicable to governmental units.

The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles.

The more significant accounting policies reflected in the financial statements are summarized as follows:

Government-Wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the Hesperia Housing Authority. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Authority has no business-type activities.

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Governmental Fund Financial Statements
The accounting system of the Authority is organized and operated on the basis of two funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitu te its assets, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures.

Governmental resources are allocated to and accounted for in individual funds ba sed upon the pu rposes for which they are to be spent and the means by which spending activities are controlled.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
15 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Presentation (Continued)
Governmental Fund Financial Statements (Continued)
Fund financial statements for the Authority’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

The Authority’s Governmental Fund Balances are comprised of the following component:
 The restricted fund balance category includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

In the governmental fund statements, when expenditures are incurred, the Authority uses the most restrictive funds first. The Authority would use the appropriate funds in the following order: committed, assigned, and lastly unassigned amounts.

The Authority has two major funds described below:

Hesperia Housing Authority Fund is used to account for Low and Moderate Housing activity. The fund balance is set aside to provide for future low and moderate income housing.

Victor Valley Economic Development Authority (VVEDA) Housing Authority Fund is used to account for Low and Moderate Housing activi ty within the VVEDA project area that is located within the boundaries of the City.

C. Measurement Focus
Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements.

In the government-wide Statement of Net Position and the Statement of Activiti es, activities are presented using the economic resources measurement focus. Unde r the economic resources measurement focus, all (both current and long-term) econ omic resources and obligations of the government are reported.

In the fund financial statements, all governmental funds are accounted for on a spe nding or “financial flow” measurement focus. This means that only current assets and cu rrent liabilities ar e generally included on their balance sheets. Their reported fund ba lances (net current assets) are considered a measure of “available spendable resources”.

Governmental fund operating statements present increases (revenues and ot her financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and us es of available spendable resources during a period.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
16 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus (Continued)
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as a fund asset. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.

In the Statement of Net Position, the net position is classified in the following categories:
 Investment in capital assets – This am ount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction or improvement of the assets.  Restricted net position – This amount is re stricted by external creditors, grantors, contributors, or laws or regulations of other governments.  Unrestricted net position – This amount is the net position that does not meet the definition of “investment in capital assets, net of related debt” or “restricted net position”.

When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.

D. Basis of Accounting
Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied.

In the government-wide Statement of Net Position and Statement of Activities, the governmental activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used, regardless of the timing of related cash flows. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
17 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Basis of Accounting (Continued)
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The Authority considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange trans actions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.

E. Cash and Investments
Investments are stated at fair value (quoted market price or best available estimate thereof, see Note 2).

F. Claims and Judgments
When it is probable that a claim liability has been incurred at year end, and the amount of the loss can be reasonably estimated, the Authority records the estimated loss, net of any insurance coverage under its self-insurance program. At June 30, 2021, in the opinion of the Authority's Attorney, the Authority had no material unrecorded claims that would require loss provision in the financial statements, including losses for claims that are Incurred But Not Reported (IBNR). Small dollar claims and judgments are recorded as expenditures when paid.

The Authority participates in the insurance program of the City of Hesperia. Information relating to the insurance program can be found in the notes to the basic financial statements of the City of Hesperia.

G. Land Held for Resale
Land held for resale is carried at the lower of cost or estimated realizable value.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
18 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. Capital Assets
Capital assets, which include equipment, are depreciated and are reported in the government-wide financial statements. Authority policy has set the capitalization threshold for reporting capital assets at $5,000.

Capital assets have an estimated useful life greater than one year and are valued at historical cost or estimated cost if actual historical cost is not available. Donated capital assets are recorded at acquisition value at the date of acquisition. The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized.

Depreciation is charged to operations using the straight-line method based on the estimated useful life of an asset ranging from 5 - 30 years.

I. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority does not have any type of these items at June 30, 2021.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources . This separate financial statement element, deferred inflows of resources , represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Authority does not have any type of these items at June 30, 2021.

J. Receivables
All accounts, taxes, and service receivables are shown net of an allowance for uncollectibles.

K. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
19 NOTE 2 CASH AND INVESTMENTS
A. Equity in Cash and Investment Pool of the City of Hesperia The Authority does not have a separate bank account; however, the Authority’s cash and investments are maintained in an investment pool managed by the City. The Authority is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The Authority has not adopted an investment policy separate from that of the City. The fair value of the Authority’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Authority’s pro-rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded on an original cost basis.

B. Investments Authorized by the California Government Code and the Authority’s Investment Policy
The table below identifies the investment types that are authorized for the Authority by the California Government Code (or the Authority’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Authority’s investment policy, where more restrictive) that address interest rate risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer U.S. Treasury Obligations 5 Years Unlimited None
U.S. & State or Local Agency Securities 5 Years Unlimited None Banker's Acceptances 180 Days 25% 5%
Commercial Paper 270 Days 15% 10%
Negotiable Certificates of Deposit 5 Years 25% None
Repurchase Agreements 1 Year 20% None
Local Agency Investment Fund (LAIF) N/A Unlimited None
Medium-Term Notes 5 Years 30% None
Mutual & Money Market Funds 90 Days 20% 10%
Collateralized Bank Deposits 5 Years 10% None
Investment Pools N/A 30% None
Municipal Bonds 5 Years 10% None
Supranational Obligations 5 Years 30% None
C. Disclosures Related to Interest Rate Risk, Credit Risk and Custodial Credit Risk, and Fair Value Measurements
The Authority’s cash and cash equivalents are pooled with the City of Hesperia’s cash
and investments. Additional disclosures regarding the pooled investments related to interest rate risk, credit risk, custodial credit risk and fair value meas urements are available in the City of Hesperia’s Comprehensive Annual Financial Report.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
20 NOTE 3 CHANGES IN CAPITAL ASSETS
A summary of changes in capital assets at June 30, 2021 is as follows:

Balance at Balance
June 30, 2020 Increases Decreases June 30, 2021
Capital Assets Being Depreciated:

Equipment and Vehicles 6,596$ -$ -$ 6,596$ Less Accumulated Depreciation for:

Machinery and Equipment (6,137) (459) - (6,596)
Total Capital Assets Being
Depreciated, Net 459 (459) - -
Net Capital Assets 459$ (459)$ -$ -$ NOTE 4 NOTES RECEIVABLE
Notes receivable, totaling $22.8 million at June 30, 2021 consists of loans provided for low and moderate income housing, with interest between one percent (1%) and three percent (3%) and maturity of fifty-five (55) years. Payments on these notes are based on a percentage of the residual receipts. The Authority does not know the timing of the repayment of the notes, as there is not enough information on the receipt of residual receipts; therefore, the Authority has recorded an allowance for uncollectible for the outstanding balance of $22.3 million.

Notes receivable at June 30, 2021 include the following:

Outstanding Outstanding
June 30, 2020 Additions Deductions June 30, 2021
A. KDF VAH I, L.P. 3,169,098$ 29,000$ -$ 3,198,098$ B. KDF Hesperia, L.P. 1,888,747 24,458 - 1,913,205 C. KDF Hesperia II, L.P. 2,570,699 28,102 - 2,598,801 D. PDDC San Remo Hesperia, L.P. 4,356,520 39,557 - 4,396,077 E. PDDC San Remo Hesperia II, L.P. 6,166,110 57,557 (108,722) 6,114,945 F. Eagle Hesperia 55, L.P. 4,137,253 76,639 - 4,213,892 G. Homebuyer Assistance Program - 428,554 - 428,554
Totals 22,288,427$ 683,867$ $ (108,722) 22,863,572$ A. KDF VAH I, L.P.

In July 2006, the former Hesperia Community Redevelopment Agency ( HCRA) entered into an Owner Participat
ion Agreement (OPA) with KDF VAH I, L.P. (a California limited partnership) for the development, construction and operation of a 68-unit apartment complex of which certain units shall be available to very lo w income tenants, low income tenants, and moderate income tenants. Under the terms of the OPA, the HCRA loaned $2,900,000 of its low and moderate income housing funds toward the actual cost fo r the development, construction, and operation of the project. The loan is for a term of not more than fifty-five years and shall bear interest at a rate of one percent (1%). The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Author ity assumed responsibility of the HC RA notes receivable.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
21 NOTE 4 NOTES RECEIVABLE (CONTINUED)
A. KDF VAH I, L.P. (Continued)
Accrued interest on the note through June 30, 2021 is $298,098. The balance of the loan outstanding at June 30, 2021 was $3,198,098. Payments on the loan are based on a percentage of the Partnership’s positive cash flow. Any unpaid balance is due and payable at the maturity date.

B. KDF Hesperia, L.P.

In December 2005, the former HCRA entered into an OPA with KDF Hesperia, L.P. (a California limited partnership) for the development, construction and operation of a 110- unit apartment complex of which certain units shall be available to very low income tenants, low income tenants, and moderate income tenants. Under the terms of the OPA, the HCRA loaned $1,250,000 of its low and moderate income housing funds toward the actual cost for the development, construction, and operation of the project.

The loan is for a term of not more than fifty-five years and shall bear simple interest at a rate of one percent (1%). The agreement is secured by a deed of trust on the property.

Due to the dissolution of redevelopment agencies by AB 26x1, the Authority assumed responsibility of the HCRA notes receivable. On February 1, 2012, the Housing Authority issued a loan of $398,589, with an interest rate of three percent (3%), to assist with converting the construction loan to a permanent loan. Accrued interest on the combined notes through June 30, 2021 is $264,617. The balance of the loan outstanding at June 30, 2021 was $1,913,205. Payments on the loan are based on a percentage of the Partnership’s positive cash flow. Any unpaid balance is due and payable at the maturity date.

C. KDF Hesperia II, L.P.

In March 2006, the former HCRA entered into an OPA with KDF Hesperia II, L.P. (a California limited partnership) for the development, construction and operation of a 72- unit apartment complex of which certain units shall be available to very low income tenants, low income tenants, and moderate income tenants. Under the terms of the OPA, the HCRA loaned $2,000,000 of its low and moderate income housing funds toward the actual cost for the development, construction, and operation of the project.

The loan is for a term of not more than fifty-five years and shall bear interest at a rate of one percent (1%). The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Authority assumed responsibility of the HCRA notes receivable. On February 1, 2012, the Authority issued a loan of $270,070, with an interest rate of three percent (3%), to assist with converting the construction loan to a permanent loan. Accrued interest on the combined notes through June 30, 2021 is $328,731. The balance of the loan outstanding at June 30, 2021 was $2,598,801. Payments on the loan are based on a percentage of the Partnership’s positive cash flow. Any unpaid balance is due and payable at the maturity date.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
22 NOTE 4 NOTES RECEIVABLE (CONTINUED)
D. PDDC San Remo Hesperia, L.P.

On November 2007, the former HCRA entered into an OPA with PDDC San Remo Hesperia, L.P. (Palm Desert Development Company, a California limited partnership) for the development, construction, and operation of a 65-unit apartment complex of which certain units shall be available to very low-income tenants and low-income tenants.

Under the terms of the OPA, the HCRA loaned $3,955,711 of its low and moderate income housing funds toward the actual cost for the development, construction, and operation of the project. The loan is for a term of not more than fifty-five years and shall bear interest at a rate of one percent (1%). The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Authority assumed responsibility of the HCRA notes receivable. Accrued interest on the note through June 30, 2021 is $440,367. The balance of the loan outstanding at June 30, 2021 was $4,396,077. Payments on the loan are based on a percentage of the Partnership’s positive cash flow. Any unpaid balance is due and payable at the maturity date.

E. PDDC San Remo Hesperia II, L.P.

On October 5, 2010, the former HCRA entered into an OPA with PDDC San Remo Hesperia II, L.P. (Palm Desert Development Company, a California limited partnership) for the development, construction, and operation of a 58-unit apartment complex of which certain units shall be available to very low-income tenants and low-income tenants. Under the terms of the OPA, the HCRA loaned $6,613,620 of its low and moderate income housing funds toward the actual cost for the development, construction, and operation of the project. The loan is for a term of not more than fifty- five years and shall bear interest at a rate of one percent (1%). The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Authority assumed responsibility of the HCRA notes receivable. Accrued interest on the note through June 30, 2021 is $407,657 and principal payments received are $1,159,699. The balance of the loan outstanding at June 30, 2021 was $6,114,945.

F. Eagle Hesperia 55, L.P.

On February 16, 2016, the former HCRA entered into an OPA with Eagle Hesperia 55 L.P. (a California limited partnership) for the development, construction, and operation of a 96-unit apartment complex of which certain units shall be available to low income senior citizens. Under the terms of the OPA, the Authority loaned $3,831,975 of its low and moderate income housing funds toward the actual cost for the development, construction, and operation of the project. The loan is for a term of fifty-five years, with the option of extending the term up to twent y-five years; the option must be exercised between the fifty-third year and fifty-fourth year. The loan shall bear interest at a rate of two percent (2%). The agreement is secured by a deed of trust on the property. Accrued interest on the note through June 30, 2021 is $381,917. The balance of the loan outstanding at June 30, 2021 was $4,213,892. Any unpaid balance is due and payable at the maturity date.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
23 NOTE 4 NOTES RECEIVABLE (CONTINUED)
G. Homebuyer Assistance Program
On July 17, 2012 the City Council and Housing Authority adopted Joint Resolution No. 2012-061 and HHA 2012-010 approving implementation of the Seller Mortgage Carryback Program (SMCP) that carried back a portion of the sale price of properties as a second mortgage loan and; the SMCP will enable the City and HHA to fund the amount needed to make the purchase price of single family residential properties affordable to households whose income is fifty percent (50%) AMI or below, in the form of a thirty (30) year deferred, zero interest bearing loan. The SMCP loan is secured by a second deed of trust on the property. At June 30, 2021, there are five loans outstanding with total balance of $428,554.

NOTE 5 RISK MANAGEMENT
The Authority, through the City of Hesperia, is a member of the Public Entity Risk Management Authority (PERMA), a joint powers authority for the purpose of achieving savings on insurance premiums. Disclosures regarding these policies are available in the City of Hesperia’s Comprehensive Annual Financial Report.

24 REQUIRED SUPPLEMENTARY INFORMATION

HESPERIA HOUSING AUTHORITY

BUDGETARY COMPARISON SCHEDULE

HESPERIA HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Required Supplementary Information. 25 Variance with
Original Final Actual Final Budget
FUND BALANCE - BEGINNING OF YEAR 12,150,043$ 12,150,043$ 12,150,043$ -$

RESOURCES (INFLOWS)
Use of Money and Property 76,619 76,619 37,535 (39,084) Other Revenues 90,133 90,133 92,208 2,075 Amount Available for
Appropriations 166,752 166,752 129,743 (37,009)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Development Services 75,978 75,978 1,906,981 (1,831,003)
Total Charges to Appropriations 75,978 75,978 1,906,981 (1,831,003)

EXCESS OF RESOURCES
OVER
/(UNDER) CHARGES TO
APPROPRIATIONS 90,774 90,774 (1,777,238) (1,868,012) FUND BALANCE - END OF YEAR 12,240,817$ 12,240,817$ 10,372,805$ (1,868,012)$ Budgeted Amounts

HESPERIA HOUSING AUTHORITY

BUDGETARY COMPARISON SCHEDULE
VVEDA HOUSING AUTHORITY SPECIAL REVENUE FUND –
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Required Supplementary Information. 26 Variance with
Original Final Actual Final Budget
FUND BALANCE - BEGINNING OF YEAR 1,811,104$ 1,811,104$ 1,811,104$ -$

RESOURCES (INFLOWS)
Use of Money and Property 24,140 24,140 9,033 (15,107) FUND BALANCE - END OF YEAR 1,835,244$ 1,835,244$ 1,820,137$ (15,107)$ Budgeted Amounts

HESPERIA HOUSING AUTHORITY

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
27 NOTE 1 BUDGETARY DATA
In conjunction with the City of Hesperia’s budgeting process, the Authority adopts annual operating budgets for the governmental funds each year. The Authority’s Board approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The Board conducts public hearings prior to its adoption. Supplemental appropriations, when required during the period, are also approved by the Board. Increases in annual expenditures require approval by the Board. Interdepartmental budget changes are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the fund level for each fund. At fiscal year-end, all operating budget appropriations lapse.

However, encumbrances at year-end are reported as reservations of fund balance. Budgets for the governmental funds are adopted on a basis consistent with generally accepted accounting principles.

1 HOUSING SUCCESSOR ANNUAL REPORT

REGARDING THE

LOW AND MODERATE INCOME HOUSING ASSET FUND
FOR FISCAL YEAR 2020-21

PURSUANT TO
CALIFORNIA HEALTH AND SAFETY CODE SECTION 34176.1(f)

FOR THE

HESPERIA HOUSING AUTHORITY
This Housing Successor Annual Report (Report) regarding the Low and Moderate Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f) and is dated as of January 3, 2022. This Report sets forth certain details of the Hesperia Housing Authority (Housing Successor) activities during Fiscal Year 2020-21 (Fiscal Year). The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (Dissolution Law).

The following Report is based upon information prepared by Hou sing Successor staff and information contained within the independent financial audit of the Low and Moderate Income Housing Asset Fund for Fiscal Year 20 20-21 (Fiscal Year), as a part of the 202 1 Annual Comprehensive Financial Report, as prepared by Clifton Larson Allen (Audit), which Audit is separate from this annual summary Report; further, this Report conforms with and is organized into sections I. through XI., inclusive, pursuant to Section 34176.1(f) of the Dissolution Law.

I. Am
ount Deposited into LMIHAF: This section provides the total amount of funds deposited into the LMIHAF during the Fiscal Year. Any amounts deposits for items listed on the Recognized Obligation Payment Schedule (ROPS) must be distinguished from the other amounts deposited.

II. Ending Balance of LMIHAF: This section provides a statement of the balance in the LMIHAF as of the close of the Fiscal Year. Any amounts deposited for items listed on the ROPS must be distinguished from the other amounts deposited.

III. Description of Expenditur es from LMIHAF: This section provides a description of the expenditures made from the LMIHAF during the Fiscal Year. The expenditures are to be categorized.

IV. Statutory Value of Assets Owned by Housing Successor: This section provides the stator value of real property owned by the Housing Successor, the value of loans and grants receivables, and the sum of these two amounts.

V. Description of Transfers: This section describes transfers, if any, to another housing successor agency made in previous Fiscal Year(s), including whether the funds are unencumbered and the status of projects, if any, for which the transferred LMIHAF will be used. The sole purpose of the transfers must be for the development of transit prior ity projects, permanent supportive housing, housing for agricultural employees or special needs housing.

VI. Project Descriptions: This section describes any project for which the Housing Successor receives or holds property tax revenue pursuant to the ROPS and the status of that project.

Attachment 2

2 VII. Status of Compliance with Section 33334.16: This section provides a status update on compliance with Section 33334.16 for interests in real property acquired by the former redevelopment agency prior to February 1, 2012. For interests in real property acquired on or after February 1, 2012, provide a status update on the project.

VIII. Description of Outstanding Obligations under Section 33413: This section describes the outstanding inclusionary and replacement housing obligations, if any, under Section 33413 that remained outstanding prior to dissolution of the former redevelopment agency as of February 1, 2012 along with the Housing Successor’s progress in meeting those prior obligations, if any, of the former redevelopment agency and how the housing Successor’s plans to meet unmet obligations, if any.

IX. Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a
d
escription of expenditures by income restriction for five year period, with the time period beginning January 1, 2015 and whether the statutory thresholds have been met.

X. Senior Housing Test: This section provides the percentage of units of deed-restricted rental h
ousing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redevelopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deeds -restricted rental housing assisted individually or jointly by the housing successor, its former Redevelopment Agency and its host jurisdiction within the same time period. For this Report the ten -year period reviewed is July 1, 2011 to June 30, 2021.

XI. Excess Surplus Test: This section provides the amount of excess surplus in the LMIHAF, if any, and the length of time that the Hou sing Successor has had excess surplus, and the Housing Successor’s plan for eliminating the excess surplus.

This Report and the former redevelopment agency’s pre-dissolution Implementation Plans are to be made available to the public on the City’s website www.cityofhesperia.us .

I. AMOUNT DEPOSITED INTO LMIHAF
A total of $129,743 was deposited into the LMIHAF during the Fiscal Year. Of the total funds deposited into the LMIHAF, a total of $0 was held for items listed on the ROPS.

II. ENDING BALANCE OF LMIHAF
At the close of the Fiscal Year, the ending balance in the LMIHAF was $ 10,372,805 of which $0 is held for items listed on the ROPS.

3 III. DESCRIPTION OF EXPENDITURES FROM LMIHAF
The following is a description of expenditures from the LMIHAF by category:

Fiscal Year
Monitoring & Administration Expenditures $ 1,906,981
Homeless Prevention and Rapid Rehousing
Services Expenditures

0 Housing Development Expenditures
Expenditures on Low Income Units

0 Expenditures on Very-Low Income Units 0
Expenditures on Extremely-Low Income Units 0
Total Housing Development Expenditures 0
ADDITIONAL EXPENSE:

Loss on land held for resale

0 Total LMIHAF Expenditures in Fiscal Year $ 1,906,981 IV. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR IN LMIHAF Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former redevelopment agency as listed on the housing asset tran sfer schedule approved by the Department of Finance as listed in such schedule under Section 34176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of property(ies) purchased by the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF.

The following provides the statutory value of assets owned by the housing Successor.

As of End of
Fiscal Year
Statutory Value of Real Property Owned by Housing Authority $ - Value of Loans and Grants Receivable 22,863,572
Total Value of Housing Successor Assets
V. DESCRIPTION OF TRANSFERS

$ 22,863,572
The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c)(2) during the Fiscal Year.

VI. PROJECT DESCRIPTIONS
The Housing Successor does not receive or hold property tax revenue pursuant to the ROPS.

4 VII. STATUS OF COMPLIANCE WITH SECTION 33334.16
Section 34176.1 provides that Section 33334.16 does not apply to interests in real property acquired by the Housing Successor on or after February 1, 2012; however, this Report presents a status update on the project related to such real property.

With respect to interests in real property acquired by the former redevelopment agency prior to February 1, 2012, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the Department of Finance approved the property as a housing asset in the LMIHAF; thus, as to real property acquired by the former redevelopment agency now held by the Housing Successor in the LMIHAF, the Housing Successor must initiate activities consistent with the development of the real pro perty for the purpose for which it was acquired within five years of the date the DOF approved such property as a housing asset.

In furtherance thereof, the Housing Successor does not have any real property.

VIII. DESCRIPTION OF OUTSTANDING OBLIGATIONS PURSUANT TO SECTION 33413 Replacement Housing: According to the 2010 -2014 Implementation Plan for the former redevelopment agency, no Section 33413(a) replacement housing obligations were transferred to the Housing Successor. The former redevelopment agency’s implementation Plans are posted on the City’s website at www.cityofhesperia.us .

Inclusionary/Production Housing: According to the 2010-2014 Implementation Plan for the former redevelopment agency, no Section 334 13(b) inclusionary/production housing obligations were transferred to the Housing Successor. The former redevelopment agency’s Implementation Plans are posted on the City’s website at www.cityofhesperia.us .

IX. EXTREMELY-LOW INCOME TEST
Section 34176.1(a)(3)(B) requires that the Housing Successor must require at least 30% of the LMIHAF to be expended for development of rental housing affordable to and occupied by household earning 30% or less of the AMI. If the housing Successor fails to comply with the Extremely-Low Income requirement in any five-year report, then the Housing Successor must ensure that at least 50% of the funds remaining in the LMIHAF be expended in each fiscal year following the latest year following the report on households earning 30% or less of the AMI until the Housing Successor demonstrates compliance with the Extremely -Low Income requirement.

For informational purposes, the following provides the Housing Successor’s Extremely -Low Income Housing Test as of FY 2016-21.

Extremely-Low Income Test FY 2016-21
LMIHAF Spent on Extremely -Low Income Households $0
Total LMIHAF Spent (Five Year Total) $3,831,975
Extremely-Low Income Test 0%

5 X. SENIOR HOUSING TEST
The Housing Successor is to calculate the percentage of units of deed restricted rental housing restricted to seniors and assisted by the Housing Successor, the former redevelopment agency and/or the City within the previous 10 years in relati on to the aggregate number of units of deed-restricted rental housing assisted by the Housing Successor, the former redevelopment agency and/or City within the same time period. If this percentage exceeds 50%, then the Housing Successor cannot expend futur e funds in the LMIHAF to assist additional senior housing units until the Housing Successor or City assists and construction has commenced on a number of restricted rental units that is equal to 50% of the total amount of deed-restricted rental units.

The following provides the Housing Successor’s Senior Housing Test for the 10 year period of July 1, 2011 and June 30, 2021.

July 1, 2011 and
Senior Housing Test June 30, 2021
# of Assisted Senior Rental Units 96
# of Total Assisted Rental Units 474
Senior Housing Percentage 20.25%
XI. EXCESS SURPLUS TEST
The LMIHAF has a $0 Excess Surplus. The Housing Successor has three fiscal years to encumber, or transfer, the excess surplus, if any. The Housing Successor has not had an Excess Surplus since February 1, 2012.

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DATE:

TO:

FROM:

CC:

SUBJECT:

December 31, 2021
Ctty Ob ffiegpenia

MEMORANDUM
Chair and Board Members, Hesperia Housing Authority
Casey Brooksher, Director of Administrative Services �
Nils Bentsen, City Manager
June 30, 2021 Financial Statements - Hesperia Housing Authority Attached to this memo is the audited Hesperia Housing Authority (HHA) financial report for June 30, 2021 and the Housing Successor SB 341 report. Both of these items are required by California Health and Safety Code §34176.1 to be provided to the Board of Directors no later than December 31, 2021. While the HHA financial report details the financial health of the HHA, the purpose of the Housing Successor SB 341 report is to provide the governing body of the HHA an annual report on the housing assets and activities.

Should you have any questions or require any additional information, please feel welcome to contact me.

Attachment 3

HHA Memo to Council 12-31-21
Final Audit Report
Created:

Status:

Transaction ID:
2021-12-31
Lorraine Carmona ([email protected])
Signed
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i'HHA Memo to Council 12-31-21" History
f:l Document created by Lorraine Carmona ([email protected]) 2021-12-31 -4 :06:50 AM GMT- IP address: 24.182.14.182
2021-12-31
¼ Document emailed to Casey Brooksher ([email protected]) for signature 2021-12-31 - 4:07:44 AM GMT
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City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and City Council Members
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
SUBJECT: Receive and File the SB 165 Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2021

RECOMMENDED ACTION
It is recommended that the City Council receive and file the Communities Facilities District (CFD) 2005-1 (Belgate Development Restructuring) Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2021.

BACKGROUND
CFD 2005-1 is the r esult of a workout agreement to restruc ture the previously defaulted CFD 91-3 (Belgate Development Project) $10,000,000 Special Tax Bonds, 1992 Series A (1992 Bonds). These bonds were used to finance the construction of certain street, sewer, water, storm drain, and fire suppression improvements within CFD No. 91-3. The 1992 Bonds were in default because the properties were not built -out as expected, which resulted in the failure to pay the special taxes.

On August 10, 2003, the City entered into a Workout Agreement with Hesperia-ET Ventures, LLC to restructure the defaulted 1992 Bonds from CFD 91 -3. Because delinquent principal and interest on the 1992 Bonds continued to accrue since issuance, the amount to defease and redeem the 1992 Bonds exceeded $18 million. In order to extend the maturity of the bonds and implement a new development plan, a new CFD was formed for the purpose of refunding the 1992 Bonds. In 2005, CFD 2005 -1 was formed and the related CFD 2005 -1 (Belgate Development Restructuring) $ 18,554,508 Special Tax Bonds, 2005 Series A were issued to refinance and restructure the 1992 Bonds.

In December 2014, these bonds were refinanced into CFD 2005-1 Special Tax Refunding Bonds, Series 2014, achieving a net present value savings of $4.2 million. The refinancing lowered the special taxes by approximately 12% for the parcel owners within the District. The CFD 2005 -1 Bonds are secured by and payable solely from the proceeds of special taxes levied annually on the taxable property in the district.

ISSUES/ANALYSIS
Annually, a report is required of the CFD which includes information prepared in compliance with the Local Agency Special Tax and Bond Accountability Act (Accountability Act). The Accountability Act was enacted by the California S tate Legislature through SB 165 to provide accountability measures for any local special tax and/or bond measure subject to voter approval on or after January 1, 2001. According to the requirements of the Accountability Act (Section 53410 of the Government Code of the State of California), an annual report must be filed by the

Staff Report to the City Council
Receive and File the SB 165 Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2021
January 18, 2022
local agency levying the special tax and/or issuing a bond measure and shall contain a description of the following:

1. The amount of funds collected and expended.

2. The status of any pro ject required or authorized to be funded by the special tax and/or bond measure.

In compliance with SB 165, the CFD 2005-1 report for the Fiscal Year (FY) Ended June 30, 2021 was distributed to the City Council on December 31, 2021. The CFD 2005-1 SB 165 Report has also been attached to this staff report (Attachment 1) and includes information regarding the total amount of annual Special Taxes collected, as well as authorized expenditures for FY 2020-21.

FISCAL IMPACT
There is no fiscal impact associated with receiving and filing the SB 165 report.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. CFD 2005-1 Local Agency Special Tax and Bond Accountability Act Report (SB 165)

City of Hesperia
2021/22 Annual Report - CFD No. 2005-1 (Belgate Development Restructuring) 3 SENATE BILL 165
Senate Bill 165 enacted the Local Agency Special Tax and Bond Accountability Act. This Act requires that any local special tax/local bond measure subject to voter approval contain a statement indicating the specific purposes of the special tax, require that the proceeds of the special tax be applied to those purposes, require the creation of an account into which the proceeds shall be deposited, and require an annual report containing specified information concerning the use of the proceeds. The Act only applies to bonds issued on or after January 1, 2001 in accordance with Section 53410 of the California Government Code.

Some of the requirements of the Act are handled at the formation (bond issuance) of the Special Tax District and others are handled through annual reports. This Report intends to comply with Section 53411 of the California Government Code that states:
“The chief fiscal officer of the issuing local agency shall file a report with its governing body no later than January 1, 2002, and at least once a year thereafter. The Annual report shall contain all of the following:
(a) The amount of funds collected and expended.
(b) The status of any project required or authorized to be funded as identified in subdivision (a) of Section 53410.”
The requirements of the Act apply to the Funds of:

City of Hesperia
CFD No. 2005-1 (Belgate Development Restructuring)
Special Tax Refunding Bonds, Series 2014
December 18, 2014
Purpose of Special Tax
The original bonds were sold for the purpose of financing the construction and acquisition of certain street, sanitary sewer, water, storm drain, and fire suppression improvements. The 2005 CFD Bonds were issued to refinance the original bonds. The 2014 Bonds issued on December 18, 2014 were issued to refund the full outstanding series of bonds previously issued.

Reporting Requirements
Fund
12/18/2014
Initial Deposit
Amount
Collected
6/30/2021
Balance
Expended
Amount
Project
Status
Escrow Fund $17,826,791.11 $0.00 $0.00 $17,826,791.11 Closed Cost of Issuance Fund 148,549.94 0.00 0.00 148,549.94 148,549.94
Closed
Special Tax Fund 0.00 3,338,433.84(1) 1,569,805.92 3,282,477.24 Ongoing Administrative
Expense Fund 15,000.00 0.00 0.00 15,000.00 Ongoing
Reserve Fund 1,428,212.50 0.00 1,452,590.89 0.00 Ongoing (1) Total amount collected is from all sources.

Attachment 1

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City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and City Council Members
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services SUBJECT: Fiscal Years 2015 -2016 through 2020 -2021 Annual and 5 -Year Compliance Report for AB 1600 Development Impact Fees

RECOMMENDED ACTION
It is recommended that the City Council receive and file the AB 1600 report on development fee activity that occurred during Fiscal Years (FY) 2015-2016 through 2020-2021.

BACKGROUND
State of California Assembly Bill 1600 (AB 1600) – the Mitigation Fee Act (Gov ernment Code, Sections 66000 et seq.) sets forth the standards governing fees charged to address the impacts of development. The City Council adopted and updated various development impact fees applicable to new development within the City. The purpose of development impact fees is to finance the design, construction , and acquisition of facilities and equipment necessary to accommodate future development.

ISSUES/ANALYSIS
Development impact fees that are collected are segregated and placed in special funds or accounts, which earn in terest. Those funds are held for the facilities for which the fees are collected, in accordance with Government Code Section 66006. This report provides a summary of development fee activity and financial detail regarding each of the projects impacted during FY 2015-16 through FY 2020-21 (July 1, 2015 through June 30, 2021). The summary of development fee activity and detail regarding each project is included as Attachment A to this report.

Annual Compliance Reporting for all Development Impact Fees Government Code Section 66006(b) sets forth that for each Development Impact Fee (DIF) the City shall, within 180 days after the last day of each fiscal year, make available to the public the following information:
 A brief description of the type of fee in the account or fund.  The amount of the fee.
 The beginning and ending balance of the account or fund.  The amount of the fees collected and interest earned.  An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.

Staff Report to the Mayor and City Council
Fiscal Years 2015-2016 through 2020-2021 Annual and 5-Year Compliance Report for AB 1600 Development Impact Fees
January 18, 2022
 An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement.  A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan.  The amount of refunds made due to sufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.

Stated below are the DIF Balances as of June 30, 2021. Please refer to Attachment A for the summary of Incomplete Projects to be funded in whole or partially by DIF and Capacity Fees.

Fund Fund Balance
as of 6/30/2021
Cost of Future
Projects
Transportation Facilities $15,192,602 $135,594,231
Citywide Drainage Facilities $3,603,171 $5,343,724
A-04 Drainage Facilities $948,687 $20,163,141
Fire Facilities $1,864,449 $19,173,000
Police Facilities $29,936 $128,567
Public and City Hall Facilities ($3,674,754)
1 $14,871,425
Animal Control Facilities $128,288 $12,600,000
Records Storage Facilities $17,478 $1,716,000
Note:

1. Reflects General Fund loan debt accumulated in order to cover the shortfall in the required

87.25% contribution from Impact Fees. The General Fund loan amount will increase annually until Impact Fees are sufficient to make the full 87.25% contribution.

The attached report provides all the required elements and details regarding balance, fees collected, and project expenditures. The purpose of the applicable legal requirements under the Mitigation Fee Act, as it applies to findings and compliance reporting, is to provide the community with information as to the status and use of impact fees collected. The report presented meets the requirements for the fiscal years ending June 30, 2021.

This is the required annual and 5-Year report per the Mitigation Fee Act.

In addition, per Section 66006(2), the City is required to review and accept the report not less than fifteen (15) days after the information has been made available to the public for review.

FISCAL IMPACT
There is no fiscal impact. This report provides a summary of transaction activity that has already occurred and expenditures on projects previously authorized by the City Council.

Staff Report to the Mayor and City Council
Fiscal Years 2015-2016 through 2020-2021 Annual and 5-Year Compliance Report for AB 1600 Development Impact Fees
January 18, 2022

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENTS

1. Attachment 1 – AB 1600 Report

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Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds

GOVERNMENT CODE
SECTIONS 66001 AND 66006

ANNUAL AND FIVE -YEAR

REPORTS
FISCAL YEARS 201 5-2016
THROUGH 20 20-2021

CITY OF HESPERIA
December 22, 2021
Attachment 1

www.FinanceDTA.com 5000 Birch Street, Suite 3000
Newport Beach, CA 92660

CITY OF HESPERIA
GOVERNMENT CODE SECTIONS 66001 AND 66006

ANNUAL AND FIVE -YEAR REPORT S
FISCAL YEARS 201 5-2016 THROUGH 20 20-2021
Prepared for:

City of Hesperia
9700 Seventh Avenue
Hesperia, CA 92345

TABLE

OF CONTENTS

SECTION PAGE
I EXECUTIVE SUMMARY ................................ ................... 1 A Purpose of the Report ................................ ........................ 1 II FISCAL YEARS 2015 -2016 THROUG H 2020-2021
ANNUAL REPORT ................................ ............................ 3 A Transportation Facilities ................................ ................... 3 B Citywide Drainage Facilities ................................ ............. 5 C A-04 Drainage Facilities ................................ .................... 6 D Fire Facilities ................................ ................................ ........ 8 E Police Facilities ................................ ................................ ..10 F Public and City Hall Facilities ................................ ......... 11 G Animal Control Facilities ................................ ................. 14 H Records Storage Facilities ................................ ............... 15 III FISCAL YEAR 2020 -2021 FIVE -YEAR REPORT ......... 17

APPENDICES

APPENDIX A TRANSPORTATION FACILITIES FEE

FINANCIAL SUMMARY REPORT

APPENDIX B CITYWIDE DRAINAGE FACILITIES FEE

FINANCIA L SUMMARY REPORT
APPENDIX C A-04 DRAINAGE FACILITIES FEE

FINANCIAL SUMMARY REPORT

APPENDIX D FIRE FACILITIES FEE FINANCIAL

SUMMARY REPORT

APPENDIX E POLICE FACILITIES FEE FINANCIAL

SUMMARY REPO RT

APPENDIX F PUBLIC AND CITY HALL FACILITIES FEE

FINANCIAL SUMMARY REPORT

APPENDIX G ANIMAL CONTROL FACILITIES FEE

FINANCIAL SUMMARY REPORT

APPENDIX H RECORDS STORAGE FACILITIES FEE

FINANCIAL SUMMARY REPORT

APPENDIX I SUMMARY OF INCOMPLETE PROJECTS

1 SECTION I

EXECUTIVE SUMMARY
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com

I EXECUTIVE SUMMARY
A Purpose of the Report
Sections 66001 and 66006 of the Government Code provide that the City ofHesperia ("City") shall make available to the public certain information and adopt described findings relative to development impact fees ("Impact Fees") collected pursuant to Section 66000 et seq . of the Gov ernment Code . The described information and findings relate to Impact Fees received, expended or to be expended in connection with public facilities to accommodate new development.

Section 66006(b) of the Government Code requires that for each Impact Fee the City shall, within 180 days after the last day of each Fiscal Year, make available to the public the following information for the Fiscal Year:

A brief description of the type of fee in the account or fund; The amount of the fee;
The beginning and ending fund balance of the account or fund; The amount of the fees collected and interest earned;
An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees; An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement; A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan; and The amount of refunds made due to sufficient funds being collected to complete financing on incomplete public improvements and volume of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.

Section 66001(d) of the Government Code requires that for each Impact Fee, the City shall make all of the following findings every fifth year with respect to that portion of the account remaining unexpended, whether committed or uncommitted:

Identify the purpose to which the fee is to be put;
Demonstrate a reasonable relationship between the fee and purpose for which it is charged;

2 SECTION I

EXECUTIVE SUMMARY
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements; and
Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.

The Impact Fees of the City for Fiscal Year 2020-2021 fund the following types of facilities:

1. Transportation Facilities;

2. Citywide Drainage Facilities;

3. A-04 Drainage Facilities;

4. Fire Facilities;

5. Police Facilities;

6. Public and City Hall Facilities;

7. Animal Control Facilities; and

8. Records Storage Facilities.

The Impact Fees were originally adopted by Ordinance No. 180 on September 16, 1993 (the “Ordinance”). The dollar amounts of the fees are adopted by resolution . The Impact Fees were last updated by Resolution Nos. 2018-26 and 2020 -69 on May 15, 2018, and November 17, 2020, respectively.

The following Annual Report for Fiscal Years 2015-2016 through 2020-2021 and Five-Year Report for Fiscal Year 2020-2021 include the information and proposed findings the City intends to review a nd adopt in accordance with Sections 66001 and 66006 of the Government Code.

3 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
II FISCAL YEARS 201 5-2016 THROUGH 20 20-2021 ANNUAL REPORT A Transportation Facilities

1. Description of the type of Impact Fees in the account or sub-account(s) of the City.

Transportation Facilities includes infrastructure necessary to provide safe and efficient vehicular access throughout the City. In order to meet the transportation demand of new development through build out, the City identified the need for new roadways and transit facility.

2. Amount of the Impact Fees.

Table II-1: Transportation Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 300 )
Land Use Fee Amount
Single Family $9,781.00 per unit
Multiple Family $6,259.00 per unit
Hotel/Motel $7,238.00 per unit
Non-Residential $2.12 per sq. ft.

Table II-2: Transportation Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 306 )
Land Use Fee Amount
Single Family $9,952.00 per unit
Multi-Family $6,895.00 per unit
Commercial/Office/Retail $6,000.00 per 1,000 bldg. sq. ft.

Industrial $1,500.00 per 1,000 bldg. sq. ft.

Hotel/Motel $7,001.00 per room

3. Beginning and ending fund balance of account and sub-account(s).

Tables 1 and 2 in Appendix A list the beginning and ending fund balances for the Transportation Facilities Fee Accounts from Fiscal Year 2015-2016 through Fiscal Year 2020-2021.

4. Amount of the Impact Fees collected and interest earned.

Tables 1 and 2 in Appendix A show the amount of Transportation Facilities Fee collected, interest earned, and miscellaneous income during Fiscal Years 2015-2016 through 2020-2021.

5. Identification of each improvement on which Impact Fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the City that was funded with Impact Fees.

4 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
Table II-3: Fiscal Years 201 5-2016 through 20 20-2021
Transportation Facilities Fee Expenditures
Project Amount
Percentage of
Project Funded
by Fees
Ranchero Road Improvements $1,400,877 16%
Aqueduct Cross Improvements $11,179 1%
Street Improvements $125,066 8%
SBCTA Loan Payments 1 $6,662,169 100%
Total $8,199,291 N/A
Note:

1. In April 2014, the City entered into an agreement with San Bernardino County Transportation Authority (SBCTA) for the construction and financing of the Ranchero Road Interchange . The agreement specified that at completion of the project, any unpaid amounts would be converted to a loan to the City by SBCTAand payable with Impact Fees . The ten -year loan includes interest calculated at the Local Agency Investment Fund (LAIF) rate . The original principal amount was $18,762,403. As of June 30, 2021, the outstanding principal balance was $13,133,682.

6. Identification of an approximate date by which the construction of project(s) of the City will commence if the City determines that sufficient funds have been collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of subdivision (A) of Section 66001, and the project of the City remains incomplete.

The City’s currently incomplete transportation facilities projects and their approximate commencement dates are shown in Appendix I . The City has determined that it has or will obtain sufficient funds to finance such projects.

7. Description of each interfund transfer or loan made from the account or sub-account(s), including project(s) of the City on which the transferred or loaned Impact Fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of Interest that the account or sub-account(s) will receive on the loan.

No transfers or loans were made from the Transportation Facilities Fee Accounts in Fiscal Years 2015-2016 through 2020-2021.

8. The amount of refunds made or revenues allocated for other purposes if the administrative costs of refunding unexpended revenues exceed the amount to be refunded.

No refunds were made from the Transportation Facilities Fee Accounts in Fiscal Years 2015-2016 through 2020-2021.

5 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
B Citywide Drainage Facilities

1. Description of the type of Impact Fees in the account or sub-account(s) of the City.

The Citywide Drainage Facilities will serve the residents of Hesperia by providing new drainage systems and improvements to existing drainage facilities in order to mitigate the impacts of new development on the existing drainage facilities. The drainage facilities to be financed include components for new detention basins, storm drain systems, street crossings, and flood control basins.

2. Amount of the Impact Fees.

Table II-4: Citywide Drainage Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 301 ) Land Use Fee Amount
Single Family $1,284.00 per unit
Multiple Family $821.00 per unit
Hotel/Motel $937.00 per unit
Non-Residential $0.28 per sq. ft.

Table II-5: Citywide Drainage Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 307 )
Land Use Fee Amount
Single Family $963.00 per unit
Multi-Family $367.00 per unit
Commercial/Office/Retail $300.00 per 1,000 bldg. sq. ft.

Industrial $632.00 per 1,000 bldg. sq. ft.

Hotel/Motel $213.00 per room

3. Beginning and ending fund balance of account and sub-account(s).

Tables 1 and 2 in Appendix B list the beginning and ending fund balances for the Citywide Drainage Facilities Fee Account s from Fiscal Year 2015-2016 through Fiscal Year 2020-2021.

4. Amount of the Impact Fees collected and interest earned.

Tables 1 and 2 in Appendix B show the amount ofCitywide Drainage Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2015-2016 through 2020-2021.

5. Identification of each improvement on which Impact Fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the City that was funded with Impact Fees.

6 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
Table II-6: Fiscal Years 2015-2016 through 2020-2021
Citywide Drainage Facilities Fee Expenditures
Project Amount
Percentage of
Project Funded
by Fees
H-01 Drainage Facility – Sect 3A $111,457 100%
Temecula Ave – C-01 Retention Basin $120,968 3%
Walnut Street – H-01 Retention Basin $132,235 8%
Escondido Ave – A-04 Retention Basin $33,930 1%
A-04 Drainage Program $135,763 100%
Property Acquisition Costs $171,297 100%
Total $705,650 N/A

6. Identification of an approximate date by which the construction of project(s) of the City will commence if the City determines that sufficient funds have been collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of s ubdivision (A) of Section 66001, and the project of the Cit y remains incomplete.

The City’s currently incomplete Citywide drainage facilities projects and their approximate commencement dates are shown in Appendix I . The City has determined that it has or will obtain sufficient funds to finance such projects.

7. Description of each interfund transfer or loan made from the account or sub-account(s), including project(s) of the City on which the transferred or loaned Impact Fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of Interest that the account or sub-account(s) will receive on the loan.

No transfers or loans were made from the Citywide Drainage Facilities Fee Accounts in Fiscal Years 2015-2016 through 2020-2021.

8. The amount of refunds made or revenues allocated for other purposes if the administrative costs of refunding unexpended revenues exceed the amount to be refunded.

No refunds were made from the Citywide Drainage Facilities Fee Account s in Fiscal Years 2015-2016 through 2020-2021.

C A-04 Drainage Facilities

1. Description of the type of Impact Fees in the account or sub-account(s) of the City.

The A-04 Drainage Facilities will serve the residentsof Hesperia by providing new drainage systems and improvements to existing drainage facilities in the area

7 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
identified by the City asthe A-04 drainage area in order to mitigate the impacts of new development on the existing drainage facilities. The A-04 drainage facilities to be financed include components for new detention basins, storm drain systems, street crossings, and flood control basins.

In 2020, development pressure within the A -04 drainage area caused the City to look specifically at the demographics and facility costs within the A -04 drainage area for the purpose of considering an Impact Fee specific to this area. As a result, improvements relating to the A-04 drainage area were removed from the Citywide needs list and an Impact Fee specific to the A -04 drainage area was adopted.

Projects within the A-04 drainage area are still subject to Citywide Impact Fees.

2. Amount of the Impact Fees.

Table II-7: A-04 Drainage Fa cilities Fee by Land Use (Fund 313) Land Use Fee Amount
Single Family $10,539.00 per unit
Multi-Family $5,018.63 per unit
Non-Residential $2,462.65 per 1,000 bldg. sq. ft.

3. Beginning and ending fund balance of account and sub-account(s).

Table 1 in Appendix C lists the beginning and ending fund balances for the A-04 Drainage Facilities Fee Accounts from Fiscal Year 2015-2016 through Fiscal Year 2020-2021.

4. Amount of the Impact Fees collected and interest earned.

Table 1 in Appendix C shows the amount of A-04 Drainage Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2015-2016 through 2020-2021.

5. Identification of each improvement on which Impact Fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the City that was funded with Impact Fees.

Table II-8: Fiscal Years 2015 -2016 through 2020 -2021
A-04 Drainage Faci lities Fee Expenditures
Project Amount
Percentage of
Project Funded
by Fees
A-04 Drainage Program $11,448 100%
Total $11,448 N/A

6. Identification of an approximate date by which the construction of project(s) of the City will commence if the City determines that sufficient funds have been

8 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of s ubdivision (A) of Section 66001, and the project of the City remains incomplete.

The City’s currently incomplete A-04 drainage facilities projects and their approximate commencement dates are shown in Appendix I . The City has determined that it has or will obtain sufficient funds to finance such projects.

7. Description of each interfund transfer or loan made from the account or sub-account(s), including project(s) of the City on which the transferred or loaned Impact Fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of Interest that the account or sub-account(s) will receive on the loan.

No transfers or loans were made from the A-04 Drainage Facilities Fee Accounts in Fiscal Years 2015-2016 through 2020-2021.

8. The amount of refunds made or revenues allocated for other purposes if the administrative costs of refunding unexpended revenues exceed the amount to be refunded.

No refunds were made from the A-04 Drainage Facilities Fee Accounts in Fiscal Years 2015-2016 through 2020-2021.

D Fire Facilities

1. Description of the type of Impact Fees in the account or sub-account(s) of the City.

The Fire Facilities includes those facilities used by the City to protect life and property. The City identifies the need for additional fire protection facilities as build out of the community occurs. In order to serve new development through build out in Hesperia, the City identified the need for one new fire station and expansion of existing fire stations.

2. Amount of the Impact Fees.

Table II-9: Fire Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 302)
Land Use Fee Amount
Single Family $1,425.00 per unit
Multiple Family $912.00 per unit
Hotel/Motel $1,054.00 per unit
Non-Residential $0.31 per sq. ft.

9 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
Table II-10: Fire Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 308)
Land Use Fee Amount
Single Family $648.00 per unit
Multi-Family $491.00 per unit
Commercial/Office/Retail $187.00 per 1,000 bldg. sq. ft.

Industrial $908.00 per 1,000 bldg. sq. ft.

Hotel/Motel $88.00 per room

3. Beginning and ending fund balance of account and sub-account(s).

Tables 1 and 2 in Appendix D list the beginning and ending fund balances for the Fire Facilities Fee Accounts from Fiscal Year 2015-2016 through Fiscal Year 2020- 2021.

4. Amount of the Impact Fees collected and interest earned.

Tables 1 and 2 in Appendix D show the amount of Fire Facilities Fees collected, interest earned, and miscellaneous income duringFiscal Years 2015-2016 through 2020-2021.

5. Identification of each improvement on which Impact Fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the City that was funded with Impact Fees.

No projects were funded by the Fire Facilities Fees in Fiscal Years 201 5-2016 through 2020-2021.

6. Identification of an approximate date by w hich the construction of project(s) of the City will commence if the City determines that sufficient funds have been collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of s ubdivision (A) of Section 66001, a nd the project of the City remains incomplete.

The City’s currently incomplete fire projects and their approximate commencement dates are shown in Appendix I. The City has determined that it has or will obtain sufficient funds to finance such projects.

7. Description of each interfund transfer or loan made from the account or sub-account(s), including project(s) of the City on which the transferred or loaned Impact Fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of Interest that the account or sub-account(s) will receive on the loan.

No transfers or loans were made from the Fire Facilities Fee Account s in Fiscal Years 2015-2016 through 2020-2021.

10 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com

8. The amount of refunds made or revenue s allocated for other purposes if the administrative costs of refunding unexpended revenues exceed the amount to be refunded.

No refunds were made from the Fire Facilities Fee Account s in Fiscal Years 2015-2016 through 2020-2021.

E Police Facilities

1. Description of the type of Impact Fees in the account orsub-account(s) of the City.

The Police Facilities includes those facilities used by the City . In order to serve new development through build out, the City identified the need for additional equipment, specifically fixed and mobile police cameras.

2. Amount of the Impact Fees.

Table II-11: Police Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 303 )
Land Use Fee Amount
Single Family $423.00 per unit
Multiple Family $272.00 per unit
Hotel/Motel $313.00 per unit
Non-Residential $0.09 per sq. ft.

Table II-12: Police Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 312)
Land Use Fee Amount
Single Family $10.00 per unit
Multi-Family $8.00 per unit
Commercial/Office/Retail $4.00 per 1,000 bldg. sq. ft.

Industrial $16.00 per 1,000 bldg. sq. ft.

Hotel/Motel $2.00 per room

3. Beginning and ending fund balance of account and sub-account(s).

Tables 1 and 2 in Appendix E list the beginning and ending fund balances for the Police Facilities Fee Account s from Fiscal Year 2015-2016 through Fiscal Year 2020-2021.

4. Amount of the Impact Fees collected and interest earned.

Tables 1 and 2 in Appendix E show the amount of Policies Facilities Fees collected, interest earned, and miscellaneous income duringFiscal Years 2015-2016 through 2020-2021.

11 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com

5. Identification of each improvement on which Impact Fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the City that was funded with Impact Fees.

Table II-13: Fiscal Years 2015-2016 through 2020-2021
Police Facilities Fee Expenditures
Project Amount
Percentage of
Project Funded
by Fees
Automatic License Plate Reader (ALPR)
Fixed Cameras $404,528 90%
Total $404,528 N/A

6. Identification of an approximate date by which the construction of project(s) of the City will commence if the City determines that sufficient funds have been collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of s ubdivision (A) of Section 66001, and the project of the City remains incomplete.

The City’s currently incomplete police facilities projects and their approximate commencement dates are shown in Appendix I. The City has determined that it has or will obtain sufficient funds to finance such projects.

7. Description of each interfund transfer or loan made from the account or sub - account(s), including p roject(s) of the City on which the transferred or l oaned Impact Fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of Interest that the account or sub - account(s) will receive on the loan.

No transfers or loans were made from the Police Facilities Fee Account s in Fiscal Years 2015-2016 through 2020-2021.

8. The amount of refunds made or revenues allocated for other purposes if the administrative costs of refunding unexpended revenues exceed the amount to be refunded.

No refunds were made from the Police Facilities Fee Account s in Fiscal Years 2015-2016 through 2020-2021.

F Public and City Hall Facilities

1. Description of the type of Impact Fees in the account or sub-account(s) of the City.

The Public and City Hall Facilities includes those facilities used by the City to provide a range of administrative duties and public services, exclusive of public safety.

12 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com

2. Amount of the Impact Fees.

Table II-14: Public Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 30 4)
Land Use Fee Amount
Single Family $1,109.00 per unit
Multiple Family $710.00 per unit
Hotel/Motel $810.00 per unit
Non-Residential $0.24 per sq. ft.

Table II-15: City Hall Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 309)
Land Use Fee Amount
Single Family $530.00 per unit
Multi-Family $424.00 per unit
Commercial/Office/Retail $194.00 per 1,000 bldg. sq. ft.

Industrial $837.00 per 1,000 bldg. sq. ft.

Hotel/Motel $81.00 per room

3. Beginning and ending fund balance of account and sub-account(s).

Tables 1 and 2 in Appendix F list the beginning and ending fund balances for the Public and City Hall Facilities Fee Accounts from Fiscal Year 2015-2016 through Fiscal Year 2020-2021.

4. Amount of the Impact Fees collected and interest earned.

Tables 1 and 2 in Appendix F show the amount of Public and City Hall Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2015-2016 through 2020-2021.

5. Identification of each improvement on which Impact Fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the City that was funded with Impact Fees.

Table II-16: Fiscal Years 2015-2016 through 2020-2021
Public and City Hall Facilities Fee Ex penditures
Project Amount
Percentage of
Project Funded
by Fees
General Fund Loan Interest Payments 1 $173,061 100%
Total $173,061 N/A

13 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
Note:

1. In October 2013, the Hesperia Joint Public Finance Authority issued the 2013 Refunding Lease Revenue Bonds to refinance the previous 2005 Civic Plaza Certificates of Participation. As with the prior 2005 Certificates of Participation, Impact Fees would continue to fund 87.25% of the annual debt service, with the General Fund contr ibuting the remaining 12.75%. The bonds interest rates are fixed, ranging from 2.00% to 5.00%. The original principal amount was $12,445,000. As of June 30, 2021, the outstanding principal balance was $10,430,000. Beginning in Fiscal Year 2014 -2015, Impact Fees were insufficient to fully fund the 87.25% contribution. As a result, a loan from the General Fund was issued so that the required contribution for the annual bond debt service payment could be made. The loan amount will increase annually until Impact Fees are sufficient to make the full 87.25% contribution and includes interest calculated at the Local Agency Investment Fund (LAIF) rate.

6. Identification of an approximate date by which the const ruction of project(s) of the City will commence if the City determines that sufficient funds have been collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of s ubdivision (A) of Section 66001, and the project of the City remains incomplete.

The City’s currently incomplete public and city hall facilities projects and their approximate commencement dates are shown in Appendix I . The City has determined that it has or will obtain sufficient funds to finance such projects.

7. Description of each interfund transfer or loan made from the account or sub-account(s), including project(s) of the City on which the transferred or loaned Impact Fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of Interest that the account or sub-account(s) will receive on the loan.

Table II-17: Fiscal Years 2015 -2016 through 2020 -2021 Public and City Hall Facilities Interfund Transfers
Description of Project for which
Interfund Transfer will be Used
Funds(s) from
Which Fees were
Transferred
Fund(s) to Which
Fees were
Transferred
Total Amount
Transferred
2013 Bonds Debt Service Payments Fund 304 Fund 403 $3,409,686 General Fund Loan 1 Fund 309 Fund 304 $3,304,783
2013 Bonds Debt Service Payments Fund 309 Fund 403 $711,419 Total N/A N/A $7,425,888
Note:

1. The amount shown above includes$3,304,783 in funds transferred from Fund 309 to Fund 304. This was done in order to move the City's General Fundloan debt accumulated under Fund 304 to Fund 309 so that Fund 304 can be closed.

No loans were made from thePublic and City Hall Facilities Fee Accounts in Fiscal Years 2015-2016 through 2020-2021.

14 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com

8. The amount of refunds made or revenues allocated for other purposes if the administrative costs of refunding unexpended revenues exceed the amount to be refunded.

No refunds were made from the Public and City Hall Facilities Fee Account s in Fiscal Years 2015-2016 through 2020-2021.

G Animal Control Facilities

1. Description of the type of Impact Fees in the account or sub-account(s) of the City.

The Animal Control Facilities includes those facilities used by the City to provide basic animal control services. In order to serve new development through build out in Hesperia, the City identified the need for a new animal control facility.

2. Amount of the Impact Fees.

Table II-18: Animal Control Facilities Fee by Land Use (Fund 310 ) Land Use Fee Amount
Single Family $223.00 per unit
Multi-Family $176.00 per unit
Commercial/Office/Retail $0.00 per 1,000 bldg. sq. ft.

Industrial $0.00 per 1,000 bldg. sq. ft.

Hotel/Motel $0.00 per room

3. Beginning and ending fund balance of account and sub-account(s).

Table 1 in Appendix G lists the beginning and endingfund balances for the Animal Control Facilities Fee Account from Fiscal Year 2015-2016 through Fiscal Year 2020-2021.

4. Amount of the Impact Fees collected and interest earned.

Table 1 in Appendix G shows the amount of Animal Control Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2015-2016 through 2020-2021.

5. Identification of each improvement on which Impact Fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the City that was funded with Impact Fees.

No projects were funded by the Animal Control Facilities Fees in Fiscal Years 2015-2016 through 2020-2021.

6. Identification of an approximate date by which the construction of project(s) of the City will commence if the City determines that sufficient funds have been collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of s ubdivision (A) of Section 66001, and the project of the City

15 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
remains incomplete.

The City’s currently incomplete animal control facilities projects and their approximate commencement dates are shown in Appendix I . The City has determined that it has or will obtain sufficient funds to finance such projects.

7. Description of each interfund transfer or loan made from the account or sub - account(s), including p roject(s) of the City on which the transferred or l oaned Impact Fees will be expended, and, in the cas e of an interfund loan, the date on which the loan will be repaid, and the rate of Interest that the account or sub - account(s) will receive on the loan.

No transfers or loans were made from the Animal Control Facilities Fee Account in Fiscal Years 2015-2016 through 2020-2021.

8. The amount of refunds made or revenues allocated for other purposes if the administrative costs of refunding unexpended revenues exceed the amount to be refunded.

No refunds were made from the Animal Control Facilities Fee Account in Fiscal Years 2015-2016 through 2020-2021.

H Records Storage Facilities

1. Description of the type of Impact Fees in the account or sub-account(s) of the City.

The Records Storage Facilities includes those facilities used by the City to provide additional storage services. In order to serve new development through build out in Hesperia, the City identified the need for a new records storage facility.

2. Amount of the Impact Fees.

Table II-19: Records Storage Facilities Fee by Land Use (Fund 31 1) Land Use Fee Amount
Single Family $26.00 per unit
Multi-Family $20.00 per unit
Commercial/Office/Retail $9.00 per 1,000 bldg. sq. ft.

Industrial $41.00 per 1,000 bldg. sq. ft.

Hotel/Motel $4.00 per room

3. Beginning and ending fund balance of account and sub-account(s).

Table 1 in Appendix H lists the beginning and ending fund balances for the Records Storage Facilities Fee Account from Fiscal Year 2015-2016 through Fiscal Year 2020-2021.

4. Amount of the Impact Fees collected and interest earned.

Table 1 in Appendix H shows the amount of Records Storage Facilities Fees

16 SECTION II
FISCAL YEARS 2015 -2016
THROUGH 2020 -2021 ANNUAL
REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
collected, interest earned, and miscellaneous income during Fiscal Years 2015-2016 through 2020-2021.

5. Identification of each improvement on which Impact Fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the City that was funded with Impact Fees.

No projects were funded by the Records Storage Facilities Fees in Fiscal Years 2015-2016 through 2020-2021.

6. Identification of an approximate date by which the constructionof project(s) of the City will commence if the City determines that sufficient funds have been collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of subdivision (A) of Section 66001, and the project of theCity remains incomplete.

The City’s currently incomplete records storage facilities projects and their approximate commencement dates are shown in Appendix I . The City has determined that it has or will obtain sufficient funds to finance such projects.

7. Description of each interfund transfer or loan made from the account or sub - account(s), including project(s) of the City on which the transferred or loaned Impact Fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of Interest that the account or sub - account(s) will receive on the loan.

No transfers or loans were made from the Records Storage Facilities Fee Account in Fiscal Years 2015-2016 through 2020-2021.

8. The amount of refunds made or revenues allocated for other purposes if the administrative costs of refunding unexpended revenues exceed the amount to be refunded.

No refunds were made from the Records Storage Facilities Fee Account in Fiscal Years 2015-2016 through 2020-2021.

17 SECTION III
FISCAL YEAR 2020 -2021 FIVE -

YEAR REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
III FISCAL YEAR 2020-2021 FIVE-YEAR REPORT
In accordance with Government Code Section 66001, the City provides the following information with respect to that portion of the Impact Fee accounts or sub -account(s) remaining unexpended, whether committed or uncommitted:

Identification of the purpose to which the Impact Fees are to be put.

The purpose of the Impact Fees imposed and collected on new development within the City during Fiscal Year 2020-2021 was to fund the additional public facilities needed to serve new development within the City.

Demonstration of a reasonable relationship between the Impact Fees and the purposes for which they are charged.

There is a roughly proportional, reasonable relationship between the new development upon which the Impact Fees are charged and the need for additional public facilities by reason of the fact that additional residents and employees will be generated by additional development within the City and the City does not have capacity in its existing public facilities to accommodate these new residents and employees. Furthermore, the Impact Fees charged on new development will be used to fund additional public facilities which will be used to serve the residents and employees generated from new development.

Identification of all sources and amounts of funding ant icipated to complete financing of the public facilities the City has identified in the City's reports.

Table III-1 below is a summary of the fund balance in each fund as of June 30, 2021, as well as the costs of the pending public facility projects currently identified by the City as shown in further detail in Appendix I. As indicated in the table below, the current fee fund balances are needed to complete the pending projects.

18 SECTION III
FISCAL YEAR 2020 -2021 FIVE -

YEAR REPORT
City of Hesperia December 22, 2021
AB 1600 Annual and Five-Year Reports
www.FinanceDTA.com
Table III-1: Fund Balance for Each Fund as of June 30, 20 21 Fund Fund Balance
as of 6/30/20 21
Cost of Future
Projects
Transportation Facilities $15,192,602 $135,594,231
Citywide Drainage Facilities $3,603,171 $5,343,724
A-04 Drainage Facilities $948,687 $20,163,141
Fire Facilities $1,864,449 $19,173,000
Police Facilities $29,936 $128,567
Public and City Hall Facilities ($3,674,754) 1 $14,871,425 Animal Control Facilities $128,288 $12,600,000
Records Storage Facilities $17,478 $1,716,000
Note:

1. Reflects General Fund loan debt accumulated in order to cover the shortfall in the required 87.25% contribution from Impact Fees. The General Fund loan amount will increase annually until Impact Fees are sufficient to m ake the full 87.25% contribution.

Identification of the approximate dates on which the funding referred to in Table III-1 is expected to be deposited into the appropriate account or fund.

Appendix I shows the approximate dates on which the funds are expected to be available for the Public Facility projects presently identified by the City.

APPENDIX A
City of Hesperia
Government Code Sections 66001 and 66006 Annual and Five-Year Reports Fiscal Years 2015-2016 Through 2020-2021

TRANSPORTATION

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

12/21/2021

APPENDIX A

CITY OF HESPERIA
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEARS 2015-2016 THROUGH 2020-2021

TRANSPORTATION FACILITIES
Table 1: Transportation Facilities Transaction Detail (Fund 300)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $7,222,997 $8,166,511 $9,836,945 $12,472,017 $12,288,836 $10,710,591 $7,222,997 Sources of Funds
Fee Revenues $1,108,102 $1,777,451 $3,389,227 $2,052,777 $379,945 $212,400 $8,919,902 Interest Income $1,058 $9,047 $51,434 $118,684 $75,413 $12,119 $267,755 Other Income $8,749 $0 $0 $0 $350,000 $0 $358,749 [2]
Total Sources of Funds $1,117,909 $1,786,498 $3,440,661 $2,171,461 $805,358 $224,519 $9,546,406 Uses of Funds
Capital Improvement Projects ($174,395) ($116,064) ($805,589) ($47,695) ($91,119) ($302,260) ($1,537,122) Loan Interest and Principal Payments $0 $0 $0 ($2,306,947) ($2,292,484) ($2,062,738) ($6,662,169) Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds ($174,395) ($116,064) ($805,589) ($2,354,642) ($2,383,603) ($2,364,998) ($8,199,291) Ending Fund Balance (6/30) $8,166,511 $9,836,945 $12,472,017 $12,288,836 $10,710,591 $8,570,112 $8,570,112 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [2] Includes the return of the Army Corps of Engineers habitat deposit related to the completion of the Ranchero Road Interchange project.

Table 2: Transportation Facilities Transaction Detail (Fund 306)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $0 $0 $0 $0 $790,110 $4,092,581 $0 Sources of Funds
Fee Revenues $0 $0 $0 $783,151 $3,264,329 $2,504,287 $6,551,767 Interest Income $0 $0 $0 $6,959 $38,142 $25,622 $70,723 Other Income $0 $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $0 $0 $790,110 $3,302,471 $2,529,909 $6,622,490 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0 $0
Loan Interest and Principal Payments $0 $0 $0 $0 $0 $0 $0 Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0 $0
Ending Fund Balance (6/30) $0 $0 $0 $790,110 $4,092,581 $6,622,490 $6,622,490 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Page A-1

APPENDIX B
City of Hesperia
Government Code Sections 66001 and 66006 Annual and Five-Year Reports Fiscal Years 2015-2016 Through 2020-2021

CITYWIDE DRAINAGE

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

12/21/2021

APPENDIX B

CITY OF HESPERIA
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEARS 2015-2016 THROUGH 2020-2021

CITYWIDE DRAINAGE FACILITIES
Table 1: Citywide Drainage Facilities Transaction Detail (Fund 301)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $2,341,697 $2,448,262 $2,515,552 $2,927,323 $3,185,411 $3,058,712 $2,341,697 Sources of Funds
Fee Revenues $146,821 $233,321 $469,190 $272,358 $48,619 $29,708 $1,200,017 Interest Income $8,604 $14,309 $34,522 $66,279 $55,206 $14,649 $193,569 Other Income $0 $0 $0 $18 $0 $18,280 $18,298 [2]
Total Sources of Funds $155,425 $247,630 $503,712 $338,655 $103,825 $62,637 $1,411,884 Uses of Funds
Capital Improvement Projects $0 ($113,457) ($36,387) ($80,567) ($230,524) ($73,418) ($534,353) Property Acquisition Costs ($48,860) ($66,883) ($55,554) $0 $0 $0 ($171,297) Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds ($48,860) ($180,340) ($91,941) ($80,567) ($230,524) ($73,418) ($705,650) Ending Fund Balance (6/30) $2,448,262 $2,515,552 $2,927,323 $3,185,411 $3,058,712 $3,047,931 $3,047,931 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [2] Includes a $18,115 reimbursement from a developer for Southern California Edison license fees paid by the City and $183 in property tax refunds for land purchases.

Table 2: Citywide Drainage Facilities Transaction Detail (Fund 307)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $0 $0 $0 $0 $76,152 $337,065 $0 Sources of Funds
Fee Revenues $0 $0 $0 $75,481 $257,608 $216,074 $549,163 Interest Income $0 $0 $0 $671 $3,305 $2,101 $6,077
Other Income $0 $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $0 $0 $76,152 $260,913 $218,175 $555,240 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0 $0
Property Acquisition Costs $0 $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0 $0
Ending Fund Balance (6/30) $0 $0 $0 $76,152 $337,065 $555,240 $555,240 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Page B-1

APPENDIX C
City of Hesperia
Government Code Sections 66001 and 66006 Annual and Five-Year Reports Fiscal Years 2015-2016 Through 2020-2021
A-04 DRAINAGE

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

12/21/2021

APPENDIX C

CITY OF HESPERIA
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEARS 2015-2016 THROUGH 2020-2021
A-04 DRAINAGE FACILITIES
Table 1: A-04 Drainage Facilities Transaction Detail (Fund 313)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $0 $0 $0 $0 $0 $0 $0
Sources of Funds
Fee Revenues $0 $0 $0 $0 $0 $0 $0
Interest Income $0 $0 $0 $0 $0 $1,086 $1,086
Other Income $0 $0 $0 $0 $0 $959,049 $959,049 [2]
Total Sources of Funds $0 $0 $0 $0 $0 $960,135 $960,135 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 ($11,448) ($11,448) Property Acquisition Costs $0 $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 ($11,448) ($11,448)
Ending Fund Balance (6/30) $0 $0 $0 $0 $0 $948,687 $948,687 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [2] A developer with plans to build residential properties within the City secured a tax-exempt bond through a Statewide Community Infrastructure Program (SCIP) in which the developer and City both participated, but for which the City has no repayment obligation in any form. The bonds were issued to finance development impact fees due from the developer of the project to the City. As a result of the bond issue which closed during Fiscal Year 2021-2022, $959,049 in development impact fees received during Fiscal Year 2020-2021 were subsequently required to be transferred to the bond trustee during Fiscal Year 2021-2022; therefore, deferred revenue was recorded as of 6/30/2021. Draws against bond proceeds will begin during Fiscal Year 2021-2022, as progress is made on capital improvements within the A-04 drainage area. www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Page C-1

APPENDIX D
City of Hesperia
Government Code Sections 66001 and 66006 Annual and Five-Year Reports Fiscal Years 2015-2016 Through 2020-2021

FIRE FACILITIES FEE

FINANCIAL SUMMARY
REPORT

12/21/2021

APPENDIX D

CITY OF HESPERIA
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEARS 2015-2016 THROUGH 2020-2021

FIRE FACILITIES
Table 1: Fire Facilities Transaction Detail (Fund 302)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $889,165 $911,060 $941,012 $1,152,851 $1,349,407 $1,406,317 $889,165 Sources of Funds
Fee Revenues $18,676 $24,683 $198,235 $169,543 $32,588 $26,438 $470,163 Interest Income $3,219 $5,269 $13,604 $27,013 $24,322 $6,763 $80,190 Other Income $0 $0 $0 $0 $0 $0 $0
Total Sources of Funds $21,895 $29,952 $211,839 $196,556 $56,910 $33,201 $550,353 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0 $0
Ending Fund Balance (6/30) $911,060 $941,012 $1,152,851 $1,349,407 $1,406,317 $1,439,518 $1,439,518 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

Table 2: Fire Facilities Transaction Detail (Fund 308)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $0 $0 $0 $0 $51,488 $263,389 $0 Sources of Funds
Fee Revenues $0 $0 $0 $51,035 $209,576 $159,892 $420,503 Interest Income $0 $0 $0 $453 $2,325 $1,650 $4,428
Other Income $0 $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $0 $0 $51,488 $211,901 $161,542 $424,931 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0 $0
Ending Fund Balance (6/30) $0 $0 $0 $51,488 $263,389 $424,931 $424,931 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Page D-1

APPENDIX E
City of Hesperia
Government Code Sections 66001 and 66006 Annual and Five-Year Reports Fiscal Years 2015-2016 Through 2020-2021

POLICE FACILITIES FEE

FINANCIAL SUMMARY
REPORT

12/21/2021

APPENDIX E

CITY OF HESPERIA
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEARS 2015-2016 THROUGH 2020-2021

POLICE FACILITIES
Table 1: Police Facilities Transaction Detail (Fund 303)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $271,279 $277,712 $286,542 $349,539 $408,017 $21,082 $271,279 Sources of Funds
Fee Revenues $5,452 $7,225 $58,870 $50,304 $9,657 $8,017 $139,525 Interest Income $981 $1,605 $4,127 $8,174 $1,808 $91 $16,786 Other Income $0 $0 $0 $0 $0 $0 $0
Total Sources of Funds $6,433 $8,830 $62,997 $58,478 $11,465 $8,108 $156,311 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 ($398,400) ($6,128) ($404,528) Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 ($398,400) ($6,128) ($404,528) Ending Fund Balance (6/30) $277,712 $286,542 $349,539 $408,017 $21,082 $23,062 $23,062 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

Table 2: Police Facilities Transaction Detail (Fund 312)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $0 $0 $0 $0 $795 $4,316 $0 Sources of Funds
Fee Revenues $0 $0 $0 $788 $3,483 $2,531 $6,802
Interest Income $0 $0 $0 $7 $38 $27 $72
Other Income $0 $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $0 $0 $795 $3,521 $2,558 $6,874 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0 $0
Ending Fund Balance (6/30) $0 $0 $0 $795 $4,316 $6,874 $6,874 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Page E-1

APPENDIX F
City of Hesperia
Government Code Sections 66001 and 66006 Annual and Five-Year Reports Fiscal Years 2015-2016 Through 2020-2021

PUBLIC AND CITY HALL

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

12/21/2021

APPENDIX F

CITY OF HESPERIA
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEARS 2015-2016 THROUGH 2020-2021

PUBLIC AND CITY HALL FACILITIES
Table 1: Public Facilities Transaction Detail (Fund 304)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) ($116,480) ($781,477) ($1,459,043) ($1,985,395) ($2,564,368) ($3,328,253) ($116,480) Sources of Funds
Fee Revenues $15,037 $20,266 $155,630 $133,800 $25,334 $23,470 $373,537 Interest Income $172 $334 $975 $22 $134 $0 $1,637
Other Income $0 $0 $0 $0 $0 $3,304,783 $3,304,783 [2]
Total Sources of Funds $15,209 $20,600 $156,605 $133,822 $25,468 $3,328,253 $3,679,957 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0 $0
Loan Interest and Principal Payments ($2,622) ($9,633) ($26,270) ($55,977) ($59,289) $0 ($153,791) Operating Transfers Out ($677,584) ($688,533) ($656,687) ($656,818) ($730,064) $0 ($3,409,686) [3] Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds ($680,206) ($698,166) ($682,957) ($712,795) ($789,353) $0 ($3,563,477) Ending Fund Balance (6/30) ($781,477) ($1,459,043) ($1,985,395) ($2,564,368) ($3,328,253) $0 $0 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [3] Includes $3,409,686 in annual debt service payments on the bonds transferred to Fund 403. Fund 403 is a City non-Impact Fee fund used to pay annual debt service on the 2013 Refunding Lease Revenue Bonds.

Table 2: City Hall Facilities Transaction Detail (Fund 309)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $0 $0 $0 $0 $42,135 $225,952 $0 Sources of Funds
Fee Revenues $0 $0 $0 $41,764 $181,847 $133,575 $357,186 Interest Income $0 $0 $0 $371 $1,970 $1,191 $3,532
Other Income $0 $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $0 $0 $42,135 $183,817 $134,766 $360,718 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0 $0
Loan Interest and Principal Payments $0 $0 $0 $0 $0 ($19,270) ($19,270) Operating Transfers Out $0 $0 $0 $0 $0 ($4,016,202) ($4,016,202) [2] Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 ($4,035,472) ($4,035,472) Ending Fund Balance (6/30) $0 $0 $0 $42,135 $225,952 ($3,674,754) ($3,674,754) [3] [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [2] Includes $711,419 in annual debt service payments on the bonds transferred to Fund 403 and $3,304,783 in funds transferred to Fund 304. [2] Beginning in Fiscal Year 2014-2015, Impact Fees were insufficient to fully fund the 87.25% contribution. As a result, a loan from the General Fund was issued so that the required contribution for the annual bond debt service payment could be made. The amount shown above includes $3,304,783 in funds transferred from Fund 309 to Fund 304. This was done in order to move the City's General Fund loan debt accumulated under Fund 304 to Fund 309 so that Fund 304 can be closed. [3] Reflects General Fund loan debt accumulated in order to cover the shortfall in the required 87.25% contribution from Impact Fees. The General Fund loan amount will increase annually until Impact Fees are sufficient to make the full 87.25% contribution.
www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Page F-1

APPENDIX G
City of Hesperia
Government Code Sections 66001 and 66006 Annual and Five-Year Reports Fiscal Years 2015-2016 Through 2020-2021

ANIMAL CONTROL

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

12/21/2021

APPENDIX G

CITY OF HESPERIA
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEARS 2015-2016 THROUGH 2020-2021

ANIMAL CONTROL FACILITIES
Table 1: Animal Control Facilities Transaction Detail (Fund 310)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $0 $0 $0 $0 $17,726 $74,663 $0 Sources of Funds
Fee Revenues $0 $0 $0 $17,570 $56,249 $52,977 $126,796
Interest Income $0 $0 $0 $156 $688 $648 $1,492
Other Income $0 $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $0 $0 $17,726 $56,937 $53,625 $128,288 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0 $0
Ending Fund Balance (6/30) $0 $0 $0 $17,726 $74,663 $128,288 $128,288 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Page G-1

APPENDIX H
City of Hesperia
Government Code Sections 66001 and 66006 Annual and Five-Year Reports Fiscal Years 2015-2016 Through 2020-2021

RECORDS STORAGE

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

12/21/2021

APPENDIX H

CITY OF HESPERIA
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEARS 2015-2016 THROUGH 2020-2021

RECORDS STORAGE FACILITIES
Table 1: Records Storage Facilities Transaction Detail (Fund 311)

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 [1] TOTAL Beginning Fund Balance (7/1) $0 $0 $0 $0 $2,066 $10,923 $0 Sources of Funds
Fee Revenues $0 $0 $0 $2,048 $8,761 $6,487 $17,296
Interest Income $0 $0 $0 $18 $96 $68 $182
Other Income $0 $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $0 $0 $2,066 $8,857 $6,555 $17,478 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0 $0
Ending Fund Balance (6/30) $0 $0 $0 $2,066 $10,923 $17,478 $17,478 [1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Page H-1

APPENDIX I
City of Hesperia
Government Code Sections 66001 and 66006 Annual and Five-Year Reports Fiscal Years 2015-2016 Through 2020-2021

SUMMARY OF

INCOMPLETE

PROJECTS

12/21/2021

APPENDIX I

CITY OF HESPERIA
GOVERNMENT CODE SECTIONS 66001 AND 66006

ANNUAL AND FIVE-YEAR REPORTS
FISCAL YEAR 2020-2021

SUMMARY OF INCOMPLETE PROJECTS
Project Total Cost
Amount to be
Funded by
Impact Fees Source of Impact Fees
Amount to be
Funded by
Other Sources of
Funds Description of Other Sources of Funds Timeframe
Transportation Facilities
7046-Ranchero Road Undercrossing $31,910,895 $5,383,995 On Deposit/Future Collections $26,526,900 General Fund, Measure I, Redevelopment Agency, Ranchero Road Undercrossing Special Projects Fund thru FY 2025-26 7086-Ranchero Road & I-15 Interchange $38,853,753 $12,284,570 On Deposit/Future Collections $26,569,183 Ranchero/1-15 Interchange, State Transportation Improvement Program, Sewer Capital, SBCTA Interchange Loan TBD 7094-Ranchero Road Improve-Mariposa $37,320,583 $7,082,683 On Deposit/Future Collections $30,237,900 Measure I Renewal, Local Transportation Funds, Citywide Projects TBD 7096-Aqueduct Cross Widen @ Main $9,797,000 $18,028 On Deposit/Future Collections $9,778,972 Measure I Renewal, Local Transportation Funds, Redevelopment Agency TBD 7131-Traffic Signal @ Ranchero Road & Maple Ave $450,000 $261,770 On Deposit/Future Collections $188,230 Measure I, SBCTA Reimbursement, Local Transportation Fund TBD 7139-Ranchero Road Aqueduct Crossing $16,362,000 $6,034,623 On Deposit/Future Collections $10,327,377 Measure I Renewal, SBCTA Reimbursement, RMRA LPP Grant, Local Transportation Fund TBD 7146-Traffic Signal @ Ranchero Road/Cottonwood Ave $450,000 $260,297 On Deposit/Future Collections $189,703 Measure I Renewal TBD 7154-Traffic Signal @ Ranchero Road/Seventh Ave $450,000 $260,297 On Deposit/Future Collections $189,703 Measure I Renewal TBD Additional Transportation projects TBD TBD On Deposit/Future Collections TBD TBD TBD Subtotal $135,594,231 $31,586,263 $104,007,968
Citywide Drainage Facilities
7140-Temecula Ave - C01 Retention Basin $4,020,969 $4,020,969 On Deposit/Future Collections $0 NA TBD 7141-Walnut Street - H-01 Retention Basin $1,322,755 $572,755 On Deposit/Future Collections $750,000 Prop 1 Grant TBD Additional Drainage projects TBD TBD On Deposit/Future Collections TBD TBD TBD Subtotal $5,343,724 $4,593,724 $750,000
A-04 Drainage Facilities
7152-A-04 Drainage Program $20,163,141 $163,141 On Deposit/Future Collections $20,000,000 NA TBD Fire Facilities [1]
Tear Down and Rebuild Fire Station 301 $7,600,000 TBD On Deposit/Future Collections TBD TBD TBD Tear Down and Rebuild Fire Station 302 $9,240,000 TBD On Deposit/Future Collections TBD TBD TBD Fire Station 304 Expansion $2,333,000 TBD On Deposit/Future Collections TBD TBD TBD Subtotal $19,173,000 $0 $0
Police Facilities
4 ALPR Traffic Cameras $128,567 $25,398 On Deposit/Future Collections $103,169 General Fund FY 2021-22 Public and City Hall Facilities
2013 Civic Plaza Bonds (Refinancing of 2005 COP) $14,871,425 $12,975,318 On Deposit/Future Collections $1,896,107 General Fund thru 2035 Additional Facilities TBD TBD On Deposit/Future Collections TBD TBD TBD Subtotal $14,871,425 $12,975,318 $1,896,107
Animal Control Facilities
Construct new Animal Control Facility $12,600,000 TBD On Deposit/Future Collections TBD TBD TBD Records Storage Facilities
Construct new Records Storage Facility $1,716,000 TBD On Deposit/Future Collections TBD TBD TBD [1] The former Hesperia Fire Protection District was annexed into the San Bernardino County Fire Protection District (SBCFP) in 2018. The City will work with SBCFP for possibilities for future site expansion or possible construction of a new fire station. www.FinanceDTA.com
5000 Birch Street, Suite 3000
Newport Beach, CA 92660
Page I-1

5000 BIRCH STREET, SUITE 3000
NEWPORT BEACH, CA 92660
PHONE: (800) 969 -4DTA
Public Finance
Public-Private Partnerships
Development Economics
Clean Energy Bonds
www.FinanceDTA.com

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and Council Members
Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Victor Knight, Economic Development Manager
SUBJECT: Network Security Detection and Response Services

RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to enter into a three (3) year agreement with Kroll, LLC (Kroll) in an amount not-to-exceed $78,000, to actively monitor the City’s network for cybersecurity intrusions and provide remediation.

BACKGROUND
The City’s existing cybersecurity measures provide a moderate level of protection against cybersecurity attacks and prevention; however, improvement can be made utilizing a third party service.

Augmenting existing measures with security analyst expertise and monitoring the City’s network activity 24 hours a day, seven days a week will further ensure the City’s security, integrity and ability to operate un-interrupted.

ISSUES/ANALYSIS
Kroll would provide the City w ith a security operation center staffed with security professionals that are able to respond to potentially malicious behavior at all hours. In the City’s current state, attacks that are executed against the City during off hours do not always receive an immediate response, and analysis by a security analyst is not a resource that can be deployed.

In the case of a potential cyberattack, Kroll’s security analysts will review City network activity using third party software licensed through Kroll. If suspicious activity is observed, Kroll security analysts will remotely triage, investigate, and respond using the third party software in an effort to contain and remediate identified threat s on actively monitored servers and devices . The City would then be notified of the incident and following analysis by Kroll. Kroll will provide the City with a description of actions taken to stop an attack and provide guidance on how to prevent similar attacks if applicable.

Staff Report to the City Council and Hesperia Water District Board Members Network Security Detection and Response Services
January 18, 2022

FISCAL IMPACT
Funding from budgetary savings in the Fiscal Year (FY) 2021-22 Budget will be utilized .

Prospectively, annual funding of $ 26,000 will be included in the annual budget by staff for the duration of the contract (FY 2022-23 through FY 2023-24).

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)
None

City of Hesperia

STAFF REPORT
DATE: January 18, 2021
TO: Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Jeremy McDonald, Director of Public Works
Marc Morales, Management Analyst
SUBJECT: GP Electric Motor Contract Amendment

RECOMMENDED ACTION
It is recommended that the City Council and Board Members of the Hesperia Water District (District) authorize the City Manager to execute an amendment to increase the existing contract with GP Electric Motor in the amount of $30,000, for a revised not-to-exceed amount of $100,000 for well and booster motor maintenance.

BACKGROUND
Electric motors that operate the water pumps require proactive or reactive (emergency) repairs throughout the year to continue to have water pumped at the well and booster sites in order to maintain positive water pressure in the distribution system to serve homes and businesses. The proactive and reactive repairs will also greatly reduce the possibility of a water se rvice outage through the City.

ISSUES/ANALYSIS
The current contract with GP Electric Motor is for a not-to-exceed amount of $70,000 and due to unforeseen repairs to the electric motors has resulted in utilizing the contract amount. Based on the historical trend of repairs performed by the contractor, staff estimates an additional $ 30,000 for the amended not -to-exceed amount of $100,000 will be sufficient for the remainder of the contract term.

FISCAL IMPACT
Sufficient funding exists in the Fiscal Year 2021-22 Budget. If unforeseen repairs arise, a budget amendment will be requested if budget savings are not otherwise available.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENTS
None

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City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Mark McKinley, Assistant Engineer
SUBJECT: Award of Contract for Engineering Plan Review and Inspection Services

RECOMMENDED ACTION
It is recommended that the City Council approve the award of two (2) Professional Services Agreements (PSAs); one to HRGreen in the amount of $20,000 for a term of 1 year for Plan Check services and the other to Transtech in the amount of $10,000 for a term of 1 year for Engineering Inspection services.

BACKGROUND
Coordination of plan review and inspection activities between Engineering, Building and Safety, and Public Works, is conducted on all construction projects in the City to ensure compliance with code requirements. During extremely busy periods in the development community, it becomes necessary to contract for plan review and inspection services in order to provide and maintain a high level of customer service to the development community. These services include, but are not limited to, the performance of plan review and inspection of residential, commercial, and industrial projects.

ISSUES/ANALYSIS
Due to the City’s need for professional engineering services, City staff has elected to seek Contract Plan Review and Inspection Services to keep pace with development in the City in lieu of hiring additional staff. The contract would provide the flexibility to increase or decrease the volume and frequency of contracted services depending on the fluctuating project workloads.

During September 2021, the City issued a Request for Proposal (RF P) for City Engineering Plan Check and Inspection Services was released. During the RFP proposal acceptance timeframe, a total of thirty -three (33) engineering firms were contacted either through e -mail, City’s Public Purchase or the City’s website to reach a broad range of engineering firms in the hopes of receiving a multitude of proposal submissions. The deadline for submitting proposals was Tuesday, October 12, 2021 and a total of eight (8) firms responded to the RFP by submitting a proposal. A review panel consisting of three City staff reviewed and scored the proposals . Upon the panel’s completion of the proposal review, it was determined that HRGreen was the top ranked firm for Plan Check services and Transtech was the top ranked firm for Inspection services.

Once the ranking of the firms has been determined, the Fee Proposal of the top ranked firm will be opened by City staff. After review of the Fee Proposal, it allows City staff to negotiate with the top ranked firm.

Staff Report to the Mayor and Council Members
Contract for Engineering Plan Review and Inspection Services January 18, 2022
The review panel’s RFP scoring summary showing each firm’s total points at the conclusion of the RFP evaluation process has been provided below:

A comparison analysis was provided by Finance that allowed Engineering to view the final panel summary sheet to compare. Upon Engineering’s review of the comparison analysis, Finance began negotiation with the top ranked firms. Upon completion of the negotiat ions, Finance and the top ranked firm s were able to reach mutually agreeable terms based upon the top ranked firm’s competitive rates for each position of need.

FISCAL IMPACT
Funding of $30,000 for Engineering Plan Review and Inspection Services was not included in the Fiscal Year 2021-2022 Budget and an amendment will be presented to the City Council during the Mid-Year Budget Review.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)
None
Bureau
Veritas HRGreen
Transtech
Enginers,
Inc.

KOA GK &
Associates RMA Group
CASC
Engineering
&
Consulting
InterWest
262 299 263 224 N/A N/A 259 259
3 1 2 6 N/A N/A 5 5
Firms
Total Available Points = 300
Total Score
REVIEW PANEL SUMMARY for Plan Check Services
Ranking
Bureau
Veritas HRGreen
Transtech
Enginers,
Inc.

KOA GK &
Associates RMA Group
CASC
Engineering
&
Consulting
InterWest
171 198 268 241 224 261 N/A N/A
6 5 1 3 4 2 N/A N/A
Total Score
Firms
Total Available Points = 300
REVIEW PANEL SUMMARY for Inspector Services
Ranking

City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and Council Members
Chair and Board Members, Water District
FROM: Nils Bentsen, City Manager SECOND READING AND ADOPTION

REVISED EXHIBIT A REFLECTS COUNCIL/BOARD DIRECTION
BY: Rachel Molina, Assistant City Manager
Tina Souza, Senior Management Analyst
SUBJECT: Amendments to Title 14, Chapter 14.04 of the Hesperia Municipal Code related to water use, conservation and water shortage plan.

RECOMMENDED ACTION
It is recommended that the City Council and the Board of Directors of the Hesperia Water District introduce and place on first reading Ordinance No. 202 1-08 regarding water use, water conservation and water shortage plan; amending Title 14, Chapter 1 4.04 of the Hesperia Municipal Code.

At the December 21, 2021 Council meeting the City Council and Board of Directors made a minor amendment to the wording of Stage 2, a. to reflect that mandatory consumption reduction methods may be in effect.

BACKGROUND
On January 17, 2014, California State Governor Edmund G. Brown Jr. issued drought emergency proclamation which was followed by further executive orders and emergency regulations enacting specific conservations requirements, prohibitions against wasteful water use practices , and requirements for water purveyors to report to the state monthly.

The drought restrictions were repealed in part February 17, 2017, with the remaining requirements expiring on November 25, 2017. However , the long -term framework to establish permanent conservation standards and improve urban wa ter management planning had been placed into motion.

May 31, 2018, Governor Brown signed Assembly Bill (AB) 1668 and Senate Bill (SB) 606 which established guidelines for efficient water use and implementation of new standards intended to achieve long term conservation and provide water supply reliability to adapt to longer, more intense droughts experienced in California. In summary, the bills required the creation of new efficiency standards for indoor and outdoor use and leaks as well as establishes requirements for drought planning and water efficiency reporting. The plan for development and implementation of the new state regulations are collectively refer enced in a document prepared by the California Department of Water Resources and State Water Resources Control Board titled “Making Water Conservation A California Way of Life”.

Further, various components of water management planning are accomplished through an Urban Water Management Plan (UWMP) as required by the Urban Water Management Planning Act in

Staff Report to the Mayor and Council Members and Chair and Board Members of Hesperia Water District Amendments to Title 14, Chapter 14.04 of the Hesperia Municipal Code related to water use, conservation and water shortage plan.

December 21, 2021
connection with certain regulations from the above legislation . Development of the UWMP prepared by Tully & Young, Inc. that was accepted by the Board of Directors via Resolution No. 2021-013 on August 3, 2021prompted the need to evaluate and update Title 14, Chapter 14.04, Sections14.04.160 and 14.04.170 consist with current State regulations implemented subsequent to the Assembly and Senate Bills respectively.

Staff originally presented first reading of this ordinance to the Council and Board memb ers on November 2, 2021. Since then, additional revisions have been made to the ordinance resulting in the recurrence of first reading.

ISSUES/ANALYSIS
California Water Code (CWC) Section 350 et seq. authorizes Hesperia Water District (District) to restrict the use of District water during any emergency caused by drought, or other threatened or existing water shortage, and to prohibit the unreasonable use or waste of District water for any purpose other than household uses or such other restricted us es as may be determined to be necessary and may prohibit use of such water during such periods for specific uses which the District may from time to time find to be nonessential.

CWC Section 350 et seq. further authorizes the District to prescribe and define by ordinance those restrictions, prohibitions, and exclusions it may determine to be necessary in restricting the use of District water during threatened or existing water shortages.

CWC 16032 related to Urban Water Management Planning requires urban water suppliers to adopt a water shortage contingency plan containing certain elements such as six standard water shortage levels.

In comparison to State regulations related to water use and conservation, the existing Hesperia Municipal Code ( HMC) is generally more restrictiv e due to existing mandatory conservation requirements. However, consistent with AB 1668, SB 606, and CWC 16032, the water shortage plan should have six stages along with additional conservations efforts while the current ordinance has only three. Subsequently, this resulted in the need for modifications and reformatting of HMC, Title 14, Chapter 14.04, Sections 14.04.160 and 14.04.170. Working in conjunction with Tully & Young, Inc. these chapters were evaluated, and a new proposed ordinance developed.

14.04.160 – Wasting water
The title of this section is “Unreasonable and Wasteful Water Use.” This section was slightly modified to better clarify and identify the course of action that may be taken by the general manager for wasteful and unreasonable water use.

14.04.170 – Water conservation emergency plan
The new title of this section is “Water Conservation and Water Shortage Plan.” This section was modified considerably to reflect consistency with State regulations and to allow for three additional stages within the water shortage plan . Stage1 in the revised section is substantially consistent with HMC’s existing Stage 1 Normal Conditions -Mandatory conservation measures, with some of the measures being moved to Stage 2. Stage 6 in the revised ordinance is substantially consistent with the existing Stage 3 Water Shortage Emergency.

Staff Report to the Mayor and Council Members and Chair and Board Members of Hesperia Water District Amendments to Title 14, Chapter 14.04 of the Hesperia Municipal Code related to water use, conservation and water shortage plan.

December 21, 2021

Although almost all the existing language from these sections remain s. Because the reorganization and addition of new language is so significant, this is essentially a new ordinance.

Consequently, a red-line version of the existing ordinance is not provided. Instead, a copy of the existing version and the new version of theses sections of Chapter 14.04 have been provided for reference.

As a result of the comments received by the Council and Board members during the first reading of the revised ordinance on November 2, 2021, staff made further revisions to the proposed Ordinance No. 2021-08 as indicated by the red-line version of the new ordinance in Attachment

3. The State continues to develop regulations related to water use, conservation, and water supply management. Consequently, as further regulations are implemented, additional update s to the HMC may be warranted. Staff will continue to monitor the impacts of said regulations as they are carried out by the State and periodically revise the HMC as needed.

FISCAL IMPACT

There are no fiscal impacts associated with approval of the recommended action. However, it should be noted that in general, a reduction in water use through water conservation and the progression of the water shortage plan, subsequently results in a reduction of water sales revenue for the District.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Ordinance 2021-08

2. Attachment 2 – Existing Title 14, Chapter 14.04. Section 14.04.160 and 14.04.170

3. Attachment 3 – Redline Version with changes to New Ordinance 2021 -08 as presented November 2, 2021

4. Attachment 4 – Exhibit “A” Municipal Code Title 14, Chapter 14.04. Section 14.04.160 and

14.04.170

ORDINANCE NO. 2021-08

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA AND THE

BOARD OF DIRECTORS OF THE HESPERIA WATER DIST RICT, CALIF ORNIA, AMENDING TITLE 1 4, CHAPTER 1 4.02 OF THE HESPERIA MUNI CIPAL CODE,

RELATED TO WATER USE, WATER CON SERVATION AND WATER SHORTAGE PLAN
WHEREAS, Assembly Bill (AB) 1668 and S enate Bill (SB) 606 established guidelines for efficient water use and implementation of new standards intended to achieve long term conservation and provide water supply reliability to adapt to longer, more intense droughts experienced in California; and
WHEREAS, AB 1668 and S B 606 required the crea tion of new efficiency standards for indoor and outdoor use and leaks as well as establishes requirements for drought planning and water efficiency reporting; and
WHEREAS, various components of water management planning are accomplished through an Urban Water Management Plan (UWMP); and
WHEREAS, the Hesperia Water District (District) Board of Directors accepted the Hesperia Water District 2020 Urban Water Management Plan on August 3, 2021; and WHEREAS, California Water Code (CWC) Section 350 et seq. authorize s the District to restrict the use of District water during any emergency caused by drought, or other threatened or existing water shortage, and to prohibit the unreasonable use or waste of District water for any purpose other than household uses or such other restricted uses as may be determined to be necessary and may prohibit use of such water during such periods for specific uses which the District may from time to time find to be nonessential; and
WHEREAS, CWC Section 350 et seq. authorizes the Dist rict to prescribe and define by ordinance those restrictions, prohibitions, and exclusions it may determine to be necessary in restricting the use of District water during threatened or existing water shortages; and WHEREAS, in connection with AB 1668 a nd SB 606, CWC 16032 related to Urban Water Management Planning, requires urban water suppliers to adopt a water shortage contingency plan con taining certain elements such as consistency with six standard water shortage levels ; and
WHEREAS, Title 14, Chapter 14.04 , Section s 14.04.160 and 14.04.170 contains regulations related to water use, water conservation and water shortage plan; and WHEREAS, amendments to Chapter 14.04, Sections 14.04.160 and 14.04. 170 are required consistent with AB 1668, SB 606, and CWC 16032; and
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

NOW THEREFORE , THE HESPERIA CITY COUNCIL AND HESPERA WATER DISTRICT BOARD OF DIRECTORS DOES ORDAIN AS FOLLOWS:

Ordinance No. 2021-08

Section 1. All of the facts se t forth in the foregoing recitals are true, correct and are adopted as findings.

Section 2. Title 14, Chapter 14.04 of the Hesperia Municipal Code is hereby amended by replacing 14.04.160 and 14.04.170 as set forth in Exhibit “A,” attached hereto.

Section 3. Title 14, Chapter 14.04 containing the regulations related to Water Service shall remain in full force and effect, excepting any changes noted in E xhibit “A” attached hereto.

Section 4. The City Council of the City of Hesperia and the Board of Di rectors of the Hesperia Water District hereby declares that should any provision, section, paragr aph, sentence, or word of this Ordinance hereby adopted be rendered or declared invalid by any final court act ion in a court of competent jurisdiction, or by a ny reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, and words shall remain in full force and effect.

Section 5. This Ordinance shall take effect thirty (30) days from the date of adoption.

Section 6. The City Clerk shall certify to the adoptio n of the Ordinance and shall cause the same to be posted in three (3) public places within the City of Hesperia pursuant to the provisions of Resolution 2007-101.

ADOPTED AND APPROVED this 21st day of December 2021.

Brigit Bennington, Mayor
ATTEST:

Melinda Sayre
City Clerk

Attachment 2

14.04.160 Wasting water.

A. Wasting Water. No customer shall knowingly permit leaks or waste of water. Where water is wastefully or negligently used on a customer's premises seriously affecting the general service, the district may disconnect the service after giving the customer notice if such conditions are not immediately corrected. In such circumstances, the district shall not be liable to the customer or to any employee, licensee, invitee or permittee of the customer on account of any bodily injury or property damage alleged to have occurred on account of such action taken by the district.

B. Excessive Irrigation and Related Unreasonable Uses—Remedial Actions. No customer or other person acting on behalf of or under the direction of a customer shall cause or permit the use of water for irrigation of landscaping or other outdoor vegetation, plantings, lawns or other growth, to exceed the amount required to provide reasonable irrigation of same, and shall not cause or permit any waste of water from said irrigation activities or from watering devices or systems. If the general manager of the district or his designee finds that any customer or other person is in violation of the provisions in this section, in addition to any other remedies available, any one or more of the following actions may be taken by the general manager:

1. Request initiation of proceedings for prosecution by the district attorney or any other proper prosecuting officer of any violation of this section;

2. Disconnect water service either for said irrigation purposes (if a separate meter and turnoff facilities are available for those purposes) or to the entire premises served, as deemed appropriate under the circumstances by the general manager, after giving prior written notice to disconnect or service will be terminated if said violation is not immediately disconnected. Notice may be by delivery to the customer or person appearing to be in charge or the premises, or by placing said notice on the door handle, gate, or other conspicuous place on or about the property receiving the water service and immediately mailing a copy of said notice to the customer at the last known mailing address in the district's customer records; notice shall be given at least twenty-four (24) hours before turn-off by the general manager or his designee unless the general manager, or his designee, in his discretion, determines that a shorter period of notice is required in view of the nature of the violation and to protect the public health and safety, in which case the notice shall be given as expeditiously as said manager or his designee finds to be reasonable under the circumstances. (Ord. No. 2011-06, § 4(Exh. A), 7-19-11)

14.04.170 Water conservation emergency plan.

A. Purpose.

1. The district is authorized by California Water Code Section 350 et seq. to restrict the use of district water during any emergency caused by drought, or other threatened or existing water shortage, and to prohibit the waste of district water or the use of district water during such periods, for any purpose other than household uses or such other restricted uses as may be determined to be necessary by the district and may prohibit use of such water during such periods for specific uses which the district may from time to time find to be nonessential.

2. The district is further authorized by California Water Code Section 350 et seq. to prescribe and define by ordinance those restrictions, prohibitions and exclusions it may determine to be necessary pursuant to California Water Code Section 350 et seq. in restricting the use of district water during threatened or existing water shortages.

3. It is therefore the intent of the district to establish by this section those procedures required to maximize the beneficial use of its available water resources to the extent to which they are capable, and that the waste or unreasonable uses or unreasonable method of use of water be prevented and the conservation of such water is to be extended with a view to the reasonable and beneficial use thereof in the interests of the people of the community of Hesperia and for the public welfare.

B. Implementation and Termination. The general manager shall monitor the supply and demand for water on a daily basis to determine the level of conservation required by the water shortage emergency or to recommend termination of the water conservation plan stages, and shall notify the board of the necessity for the implementation or termination of each stage. Each declaration of the board implementing or terminating a water conservation stage shall be published at least once in a newspaper of general circulation and shall remain in effect until the board otherwise declares, as provided herein.

C. Water Supply Plan.

1. Stage No. 1. Normal Conditions—Mandatory conservation measures. Normal conditions shall be in effect when the district is able to meet all the water demands of its customers in the immediate future. During normal conditions, all water users must continue to use water wisely, to prevent the waste or unreasonable use of water, and to reduce water consumption to that necessary for ordinary domestic and commercial purposes.
a. Exterior Landscape Plans. Exterior landscape plans for all new multi-family; commercial and industrial development shall provide for timed irrigation systems and shall require the use of drought resistant varieties of plants, shrubs, and turf.

Such plans shall be presented to and approved prior to issuance of a water service letter.
b. Excess Irrigation and Related Waste. No customer of the district or other person acting on behalf of or under the direction of a customer shall cause or permit the use of water for irrigation of landscaping or other outdoor vegetation plantings, lawns or other growth, to exceed the amount required to provide reasonable irrigation of the same, and shall not cause or permit any unreasonable or excessive waste of water from said irrigation activities or from watering devices or systems. The free flow of water away from an irrigated site shall be presumptively considered excessive irrigation and waste. c. Agricultural Irrigation. Persons receiving water from the district who are engaged in agricultural practices, whether for the purpose of crop production or growing of commercial ornamental plants, shall provide, maintain and use irrigation equipment and practices which are the most efficient possible. The general manager may require the owner or operators of these systems to prepare a plan describing their irrigation practices and equipment, including but not limited to, an estimate of the efficiency of the use of water on their properties. d. Commercial Facilities. Commercial and industrial facilities shall, upon request of the general manager, provide the district with their plan to insure conservation of water at their facilities. The district will provide these facilities with information

regarding the average monthly water use by the facility for the last two-year period. The facility will be expected to provide the district with a plan to conserve or reduce the amount of water used by that percentage deemed to be necessary under the circumstances. After review and approval by the general manager, the water conservation plan shall be considered subject to inspection and enforcement by the district.
e. Swimming Pools. All residential, public and recreational swimming pools shall use evaporation resistant covers and shall recirculate water. Any swimming pool which does not have a cover installed during periods of nonuse shall be considered a waste of water.
f. Vehicle Washing. The washing of cars, trucks or other vehicles is not permitted, except with a hose equipped with an automatic shut-off device, or at a commercial facility designed and so designated on the district's billing records.

2. Stage No. 2. Threatened water supply shortage. In the event of a threatened water supply shortage which will affect the district's ability to provide water for ordinary domestic and commercial uses, the board shall hold a noticed public hearing after giving at least ten days' notice by publication in a newspaper of general circulation at which consumers of the water supply shall have the opportunity to testify concerning the pending water supply shortage and for the district to determine required conservation measures. Stage No. 2 requirements are in addition to those mandated by Stage No. 1.
a. Parks, Golf Courses, and School Grounds. Parks, golf courses (municipal and private) and school grounds which use water provided by the district shall be irrigated between the hours of eleven p.m. and five a.m., or such other times as may be determined appropriate by the district. Additionally, turf areas in excess of one thousand (1,000) square feet will be required to use soil moisture sensors and rain shut-off valves as part of their irrigation system. b. Irrigation. The district may determine that the irrigation of exterior vegetation shall be conducted only during specified hours and/or days, and may impose other restrictions on the use of water for such irrigation. The irrigation of exterior vegetation at other than these times shall be considered to be a waste of water. c. Run-Off and Wash-Down. No water provided by the district shall be used for the purposes of wash-down of hard surfaces such as driveways, sidewalks, and parking lot areas, except as specifically permitted by the district for public health and safety reasons such as wash-down of flammable or otherwise dangerous liquids or substances. Any water used on a premises that is allowed to escape the premises and run-off into gutters or storm drains shall be considered a waste of water.
d. Drinking Water Provided by Restaurants. Restaurants are requested not to provide drinking water to patrons except by request.
e. Construction Meter. No domestic water provided by the district may be used through construction meters between the hours of six a.m. and ten p.m.

3. Stage No. 3. Water Shortage Emergency—Mandatory Conservation Measures. In the event of an unforeseeable disaster or water emergency such as an earthquake or other major disruption in the water supply or any emergency that prevents the district from meeting the water demands of the community, the general manager is

authorized to implement the emergency provisions of this chapter as provided herein.

Public notice will follow enactment of said provision by publishing notice of said action in a newspaper of general circulation.

In the event of a foreseeable emergency such as extended drought conditions, the general manager may be authorized to implement the applicable provisions of this chapter as provided herein, after a public meeting is held before the board, after giving such public notice as the general manager determines is reasonable under the circumstances. After action of the board within seventy-two (72) hours of such declaration, adopting a resolution finding a Stage 3 water shortage emergency, the following rules and regulations shall be in effect immediately following such action:
a. Watering of parks, school grounds and golf courses is prohibited. b. Lawn watering and landscape irrigation is prohibited. c. Washing down of driveways, parking lots or other impervious surfaces is prohibited.
d. Washing of vehicles is prohibited, except when done by commercial car wash establishments with recycled or reclaimed water systems. e. Filling or adding water to swimming pools, wading pools, spas, ornamental ponds, fountains and artificial lakes is prohibited.
f. Restaurants shall not serve drinking water to patrons except by request. g. No new construction meter permits shall be issued by the district. h. All existing construction meters shall be removed and/or locked. i. Commercial nurseries shall discontinue all watering and irrigation. Watering of livestock is permitted as necessary.

D. Exceptions.

1. Application for Exception Permit. The general manager may grant permits for uses of water otherwise prohibited under the provisions of this chapter if he finds and determines that special circumstances make compliance impossible, or that restrictions herein would cause an emergency condition affecting the health, sanitation, fire protection or safety of the water use or of the public.

2. Such exceptions may be granted only upon written application therefor. Upon granting such exception permit, the general manager may impose any conditions he determines to be just and proper.
(Ord. No. 2011-06, § 4(Exh. A), 7-19-11)

Attachment 3

14.04.160 – Unreasonable and Wasteful Water Use.

A. Unreasonable and Wasteful Water Use. No customer shall unreasonably or wastefully use district’s water. Where water is unreasonably or wastefully used on a customer's premises, the district may fine the customer after giving the customer notice if such conditions are not immediately corrected. In the event the customer does not immediately correct the unreasonable or wasteful use of water identified in the notice, the district may fine the customer or disconnect the customer’s service. Unreasonable or wasteful use of water is presumed where a customer is not in compliance with section 14.04.170. In the event the district assesses fines or disconnects water service, the district shall not be liable to the customer or to any employee, licensee, invitee, lessee, or permittee of the customer on account of any bodily injury or property damage alleged to have occurred on account of such action taken by the district.

B. Unreasonable and Wasteful Water Use – Remedial Actions. No customer or other person acting on behalf of, or under the direction of, a customer shall cause or permit the unreasonable or wasteful use of water. If the general manager of the district or his designee finds that any customer or other person is in violation of the provisions in this section, in addition to any other remedies available, any one or more of the following actions may be taken by the general manager or his designee:

1. Impose a fine in accordance with this Chapter or Chapter 1.12 pursuant to the Administrative Fine Schedule for the unreasonable or wasteful water use violation not remedied by the customer after giving prior written notice of potential fine. Notice may be by delivery to the customer or person occupying the premises, or by placing the notice on the door handle, gate, or other conspicuous place on or about the property receiving the water service and mailing a copy of the notice to the customer at the last known mailing address in the district’s customer records. Notice shall be given at least twenty-four (24) hours by the general manager or his designee before fine assessment unless the general manager, or his designee, in his discretion, determines that a shorter period of notice is required in view of the nature of the violation and to protect the public health and safety, in which case the notice shall be given as expeditiously as the general manager or his designee finds to be reasonable under the circumstances.

2. Disconnect water service for unreasonable or wasteful water use (if separate meter and turnoff facilities are available for those purposes) or to the entire premises served, as deemed appropriate under the circumstances by the general manager or his designee, after giving prior written notice that service will be disconnected if the violation is not immediately corrected. Notice may be by delivery to the customer or person occupying the premises, or by placing the notice on the door handle, gate, or other conspicuous place on or about the property receiving the water service and mailing a copy of the notice to the customer at the last known mailing address in the district’s customer records. Notice shall be given at least twenty-four (24) hours by the general manager or his designee before disconnection unless the general manager, or his designee, in his discretion, determines that a shorter period of notice is required in view of the nature of the violation and to protect the public health and safety, in which case the notice shall be

Attachment 3
given as expeditiously as the general manager or his designee finds to be reasonable under the circumstances.

3. Request initiation of proceedings for prosecution by the district attorney or any other proper prosecuting officer of any violation of this section.

14.04.170 – Water Conservation and Water Shortage Plan.

A. Purpose.

1. The district is authorized by California Water Code Section 350 et seq. to restrict the use of district water during any emergency caused by drought, or other threatened or existing water shortage, and to prohibit the unreasonable use or waste of district water for any purpose other than household uses or such other restricted uses as may be determined to be necessary by the district and may prohibit use of such water during such periods for specific uses which the district may from time to time find to be nonessential.

2. The district is further authorized by California Water Code Section 350 et seq. to prescribe and define by ordinance those restrictions, prohibitions, and exclusions it may determine to be necessary pursuant to California Water Code Section 350 et seq. in restricting the use of district water during threatened or existing water shortages.

3. It is therefore the intent of the district to establish by this section those procedures required to maximize the beneficial use of its available water resources to the extent to which they are capable, and that the wasteful and unreasonable uses of water be prevented and the conservation of such water is to be extended with a view to the reasonable and beneficial use thereof in the interests of the people of the community of Hesperia and for the public welfare.

B. Implementation and Termination. The general manager or his designee shall monitor the water supply and demand daily to determine the level of conservation required by the water shortage emergency or to recommend implementation of the water conservation plan stages and shall notify the board of the necessity for the implementation or termination of each stage. Each declaration of the board implementing or terminating a water conservation stage shall be published at least once in a newspaper of general circulation and shall remain in effect until the board otherwise declares, as provided herein.

C. Water Shortage Plan.

1. Customer Use Baseline Water Use. Each customer’s baseline water use shall be calculated based upon unconstrained water use pursuant to a method as determined by the district. Unconstrained water use shall mean water use during a period or averaged across multiple periods absent any implementation of the water conservation stages in excess of Stage 1 identified in this chapter.

2. Public Notice and Public Hearing. In the event of a threatened or actual water supply shortage in excess of Stage No. 1 which will affect the district's ability to provide water

Attachment 3
for ordinary domestic, industrial, and commercial uses, the board shall hold a noticed public hearing after giving at least ten days’ notice by publication in a newspaper of general circulation at which district’s customers shall have the opportunity to testify concerning the pending water supply shortage and for the district to determine required conservation measures.

3. In addition to any other remedies available, the district may implement any one or more of the following actions to reduce water demands based on the characterization and severity of water shortage conditions, such as the percentage of reduction required, disasters, water emergency, or state policy directives:
a. Levy water use restrictions and prohibitions.
b. Perform water use audits.
c. Identify customers with high per capita water usage to achieve proportionally greater reduction than those with low use.
d. Enact water rationing with water use allocation limits.

D. Stages of Water Conservation
Current water shortage condition response measures will be updated based on board approvals and direction, state policy directives, emergency conditions, or to improve customer response.

1. Stage 1 – Water Alert: Savings up to 10%. Stage 1 shall be normal operating conditions in effect when the district is able to meet all the water demands of its customers in the immediate future. The district continuously operates under mandatory conservation.

Unreasonable use and waste of water is prohibited, and water conservation measures are mandatory. All water users must continue to use water reasonably, to prevent the unreasonable use or waste of water, and to reduce water consumption to that necessary for ordinary domestic and commercial purposes.
a. The following conservations measure shall be in effect at all times:
i. Exterior landscape plans for all new multi-family; commercial and industrial development shall provide for timed irrigation systems that provide options to irrigate landscapes after 8 p.m. but before 6 a.m. and shall require the use of drought resistant varieties of plants, shrubs, and turf. ii. No customer of the district or other person acting on behalf of or under the direction of a customer shall cause or permit the use of water for irrigation of landscaping or other outdoor vegetation plantings, lawns, or other growth to exceed the amount required to provide reasonable irrigation of the same and shall not cause or permit any unreasonable or excessive waste of water from said irrigation activities or from watering devices or systems. Landscape watering shall be confined to a user's property and shall not runoff onto adjacent properties, roadsides, or gutters. Free flow of water away from an irrigated site shall be presumptively considered excessive irrigation and waste.

Attachment 3
iii. Persons receiving water from the district who are engaged in agricultural practices, whether for the purpose of crop production or growing of commercial ornamental plants, shall provide, maintain, and use irrigation equipment and practices which are consistent with efficiency standards of irrigators in arid environments. The general manager or his designee may require the owner or operators of these systems to prepare a plan describing their irrigation practices and equipment, including but not limited to, an estimate of the efficiency of the use of water on their properties.
iv. Commercial and industrial facilities shall, upon request of the general manager or his designee, provide the district with its plan to ensure conservation of water at its facilities. The district will provide these facilities with information regarding the average monthly water use by the facility for the last two-year period. The facility will be expected to provide the district with a plan to conserve or reduce the amount of water used by that percentage deemed to be necessary under the circumstances. After review and approval by the general manager or his designee, the water conservation plan shall be considered subject to inspection and enforcement by the district.
v. The washing of cars, trucks or other vehicles is not permitted, except with a hose equipped with an automatic shut-off device, or at a commercial facility designed and so designated on the district's billing records. vi. All residential, public, and recreational swimming pools shall use evaporation resistant covers and shall recirculate water. Any swimming pool which does not have a cover installed during periods of nonuse shall be considered an unreasonable and wasteful use of water.
v. Unauthorized use of hydrants is prohibited. Authorization for use must be obtained from the district.
b. The district manager or his designee may also implement one or more of the following conservation instruments during this or any subsequent stage of water conservation:
i. Establish customer use baselines.
ii. Conduct a public information campaign that may consist of distribution of literature, speaking engagements, website updates, bill inserts, conservation messages printed in local newspapers, educational programs in area schools and/or other methods of disseminating information.
iii. Implement programs to assist customers in reducing water use. iv. Evaluate operations and make operational changes.

Attachment 3

2. Stage 2. Moderate Water Shortage: Savings up to 20%. Augmentation of water supply conditions requiring reduction in water use. All aspects of Stage 1, including conservation measures implemented, shall remain in effect. A reduction of water use by up to an additional 10% is anticipated. Water consumption reduction methods from Stage 1 shall may be intensified as needed. Additional voluntary conservation measures are encouraged.
a. The following additional mandatory consumption reduction methods shall be in effect:

i. Parks, golf courses (municipal and private) and school grounds which use water provided by the district shall be irrigated between the hours of 10 p.m. and 5 a.m., or such other times as may be determined appropriate by the district.

Additionally, turf areas in excess of one thousand (1,000) square feet will be required to use soil moisture sensors and rain shut-off valves as part of their irrigation system.

ii. Commercial, industrial, institutional equipment that uses water must be properly maintained and in full working order to eliminate unreasonable or wasteful uses of water.

iii. The washing of cars, trucks or other vehicles is not permitted, except with a hose equipped with an automatic shut-off device, or at a commercial facility designed and so designated on the district's billing records.

iv. All residential, public, and recreational swimming pools shall use evaporation resistant covers and shall recirculate water. Any swimming pool which does not have a cover installed during periods of nonuse shall be considered an unreasonable and wasteful use of water.

v. Utilize sweeping or other methods to clean impervious surfaces such as driveways, sidewalks, and parking lot. The use of water to clean impervious surfaces is prohibited unless for public health and safety purposes. b. Customers are encouraged to practice the following consumption reduction measures:

i. Fix leaks or faulty sprinklers promptly.

ii. Decorative water features (water fountains, etc.) must should recirculate water and be leak proof.

iii. Irrigate landscapes between the hours of 10 p.m. and 5 a.m. to reduce evaporation.

iv. Landscape watering should not occur during rain events.

v. Equip all hoses with a shut-off nozzle while using water for any purpose.

Attachment 3
vi. Wash only full loads when washing dishes or clothes. vii. Sweep to clean impervious surfaces such as driveways, sidewalks, and parking lot areas unless for public health and safety purposes. The use of water to clean impervious surfaces is prohibited unless for public health and safety purposes. vii. Restaurants - serve water to patrons upon request. viii. Hotels and motels – encourage guests to conserve water and limit hotel laundering of linens and towels.

3. Stage 3. Severe Water Shortage: Savings up to 30%. Increase of water supply conservation actions that require a reduction in water use. A reduction of water use by up to an additional 10% is anticipated. All conservation measures implemented in Stage 1 and 2 shall remain in effect. Water consumption reduction methods from Stage 1 and 2 shall may be intensified as needed and customer usage will may be assessed against established baseline.
a. One or more of the following additional mandatory restrictions shall be in effect as determined by the district:
i. The district may determine that the irrigation of exterior vegetation shall be conducted only during specified hours and days such as restricting irrigation to the hours between 10 p.m. and 5 a.m. limited to 3 days per week and may impose other restrictions on the use of water for such irrigation. The irrigation of exterior vegetation at other than the times and days specified by the district at the time of implementation shall be considered a waste of water. Outdoor plant containers, trees, shrubs, and vegetable gardens may be watered additional days using only drip irrigation or hand watering. The district may determine that this shall conform to the restrictions for other outdoor irrigation. ii. Restrictions may be implemented for domestic water provided by the district used for construction meters limiting use to only during specified hours. iii. Washing down impervious surfaces such as driveways, sidewalks, and parking lot areas is prohibited unless for extraordinary public health and safety purposes.

Any water used on a premises that is allowed to escape the premises and run-off into gutters or storm drains shall be considered a waste of water. iv. Leaks or faulty sprinklers shall be repaired within 7 days, or as directed by the district.
v. Restaurants shall serve water to patrons only upon request. vi. Hotels and motels shall have messaging in all guest rooms encouraging water conservation and limiting hotel laundering of linens and towels.

Attachment 3
b. The following consumption reduction measures shall also apply:
i. Non-essential potable water uses are strongly discouraged. ii. Customers are encouraged to continue implementing voluntary measures from prior stages, which are not mandatory under this stage. iii. There are no restrictions on landscape watering with non-potable water.

4. Stage 4. Critical Water Shortage: Savings up to 40%. Increase of water supply conservation actions that require a reduction in water use. A reduction of water use by up to an additional 10% is anticipated. All conservation measures implemented in Stage 1-3 shall remain in effect. Water consumption reduction methods from Stage 1-3 shall may be intensified as needed and customer usage will may be assessed against established baseline.
a. One or more of the following additional mandatory restrictions shall be in effect as determined by the district:
i. Outdoor irrigation of exterior vegetation shall be conducted only during specified hours and days and district may impose other restrictions on the use of water for such irrigation. The irrigation of exterior vegetation at other than these times and days shall be considered a waste of water. Outdoor plant containers, trees, shrubs, and vegetable gardens may be watered additional days using only drip irrigation or hand watering. The district may determine that this shall conform to the restrictions for other outdoor irrigation. During Warm/Dry Season: Turf shall be limited to hours and/or days determined by district when using potable water for irrigation. During Cool/Wet Season: Turf shall not be watered unless utilizing non-potable water during extended dry spells.
ii. Customer water usage in excess of baseline will be monitored and recorded. iii. All cConservation activities will be intensified, and production monitored daily for compliance with necessary reductions from customer baseline. iv. Water allocations and mandatory conservation may be implemented. Water usage in excess of allocation derived from water use baseline may be considered a waste of water.
v. Leaks or faulty sprinklers shall be repaired within 3 days or as directed by the district.
vi. Decorative water features that use potable water must be drained and kept dry. vii. Washing of vehicles is prohibited, except when using a commercial carwash establishments that use reclaimed water, recirculate water, or use high pressure/low volume wash systems.

Attachment 3

viii. A construction water use plan shall be submitted to the district that addresses how impacts to existing water users will be mitigated (such as dust control).

ix. With the exception of landscapes watered with non-potable water, installation of new turf or hydroseed is prohibited.

5. Stage 5. Water Shortage Crisis: Savings up to 50%. Increase of water supply conservation actions that require a reduction in water use. Source of supply for the water system is severely curtailed to the level that requires each customer to restrict their water use. All conservation measures implemented in Stage 1-4 shall remain in effect. Water consumption reduction methods from Stage 1-4 shall may be intensified as needed. Production will may be monitored daily for compliance with necessary reductions from customer baseline.

a. All cConsumption reduction methods shall be intensified as needed and one or more of the following mandatory restrictions shall be in effect:

i. District may impose further restrictions on outdoor irrigation of exterior vegetation, including complete cessation in irrigation on properties.

ii. Repair leaks or faulty sprinklers within 1 day.

iii. Existing pools shall not be emptied and refilled using potable water unless required for public health and safety purposes.

iv. Water use for new landscape installations or renovations is not authorized.

v. Previous waivers will be revoked.

vi. Water use may be restricted to human health and safety purposes.

vii. Customer rationing may be implemented as compared to a water use baseline determined by the district.

viii. Shortage condition measures shall be updated as needed.

ix. Catastrophic event actions may be deemed necessary (such as a boil water order and/or other actions).

6. Stage 6. Emergency Water Shortage: Savings greater than 50% requiring reduction in water use. Source of supply for the water system is severely curtailed to the level that requires each customer to restrict their water use for only human health and safety purposes.

In the event of an unforeseeable disaster or water emergency such as an earthquake or other major disruption in the water supply or any emergency that prevents the district from meeting the water demands of the community, the general manager is authorized

Attachment 3
to implement the emergency provisions of this chapter as provided herein. Public notice will follow enactment of said provision by publishing notice of said action in a newspaper of general circulation.

All measures implemented in Stages 1-5 shall remain in effect. Water consumption reduction methods from Stage 1-5 shall may be intensified as needed. Production will may be monitored continually for compliance with necessary reductions from customer baseline.
a. All cConsumption reduction methods shall be intensified as needed and the following mandatory restrictions shall be in effect:

i. Watering of parks, school grounds and golf courses is prohibited.

ii. Turf watering and landscape irrigation is prohibited.

iii. Washing down of driveways, parking lots or other impervious surfaces is prohibited.

iv. Filling or adding water to swimming pools, wading pools, spas, ornamental ponds, fountains, and artificial lakes is prohibited.

v. No nNew construction meter permits shall not be issued by the district.

vi. All existing construction meters shall be removed and/or locked.

vii. Commercial nurseries shall discontinue all watering and irrigation. Watering of domesticated animals and livestock is permitted as necessary.

viii. Watering of domesticated animals and livestock is permitted as necessary.

ix. Implement applicable actions for catastrophic events (such as a boil water order or other actions).

E. Exceptions to Water Shortage Stage Implementation.

1. Application for Exception Permit. The general manager may grant exception permits for uses of water otherwise prohibited under the provisions of this chapter if it is found and determined that special circumstances make compliance impossible, or that restrictions herein would cause an emergency condition affecting the health, sanitation, fire protection or safety of the water use or of the public.

2. Written Application. Such exceptions may be granted only upon written application for a permit addressed to the district’s general manager. Upon granting such exception

Attachment 3
permit, the general manager may impose any conditions determined to be just and proper.

3. Exception Denied. In the event the general manager denies an exception to a water shortage stage, the proponent of the exception may appeal the determination to the district’s board.

Exhibit A

14.04.160 – Unreasonable and Wasteful Water Use.

A. Unreasonable and Wasteful Water Use. No customer shall unreasonably or wastefully use district’s water. Where water is unreasonably or wastefully used on a customer's premises, the district may fine the customer after giving the customer notice if such conditions are not immediately corrected. In the event the customer does not immediately correct the unreasonable or wasteful use of water identified in the notice, the district may fine the customer or disconnect the customer’s service. Unreasonable or wasteful use of water is presumed where a customer is not in compliance with section 14.04.170. In the event the district assesses fines or disconnects water service, the district shall not be liable to the customer or to any employee, licensee, invitee, lessee, or permittee of the customer on account of any bodily injury or property damage alleged to have occurred on account of such action taken by the district.

B. Unreasonable and Wasteful Water Use – Remedial Actions. No customer or other person acting on behalf of, or under the direction of, a customer shall cause or permit the unreasonable or wasteful use of water. If the general manager of the district or his designee finds that any customer or other person is in violation of the provisions in this section, in addition to any other remedies available, any one or more of the following actions may be taken by the general manager or his designee:

1. Impose a fine in accordance with this Chapter or Chapter 1.12 pursuant to the Administrative Fine Schedule for the unreasonable or wasteful water use violation not remedied by the customer after giving prior written notice of potential fine. Notice may be by delivery to the customer or person occupying the premises, or by placing the notice on the door handle, gate, or other conspicuous place on or about the property receiving the water service and mailing a copy of the notice to the customer at the last known mailing address in the district’s customer records. Notice shall be given at least twenty-four (24) hours by the general manager or his designee before fine assessment unless the general manager, or his designee, in his discretion, determines that a shorter period of notice is required in view of the nature of the violation and to protect the public health and safety, in which case the notice shall be given as expeditiously as the general manager or his designee finds to be reasonable under the circumstances.

2. Disconnect water service for unreasonable or wasteful water use (if separate meter and turnoff facilities are available for those purposes) or to the entire premises served, as deemed appropriate under the circumstances by the general manager or his designee, after giving prior written notice that service will be disconnected if the violation is not immediately corrected. Notice may be by delivery to the customer or person occupying the premises, or by placing the notice on the door handle, gate, or other conspicuous place on or about the property receiving the water service and mailing a copy of the notice to the customer at the last known mailing address in the district’s customer records. Notice shall be given at least twenty-four (24) hours by the general manager or his designee before disconnection unless the general manager, or his designee, in his discretion, determines that a shorter period of notice is required in view of the nature of the violation and to protect the public health and safety, in which case the notice shall be

Exhibit A
given as expeditiously as the general manager or his designee finds to be reasonable under the circumstances.

3. Request initiation of proceedings for prosecution by the district attorney or any other proper prosecuting officer of any violation of this section.

14.04.170 – Water Conservation and Water Shortage Plan.

A. Purpose.

1. The district is authorized by California Water Code Section 350 et seq. to restrict the use of district water during any emergency caused by drought, or other threatened or existing water shortage, and to prohibit the unreasonable use or waste of district water for any purpose other than household uses or such other restricted uses as may be determined to be necessary by the district and may prohibit use of such water during such periods for specific uses which the district may from time to time find to be nonessential.

2. The district is further authorized by California Water Code Section 350 et seq. to prescribe and define by ordinance those restrictions, prohibitions, and exclusions it may determine to be necessary pursuant to California Water Code Section 350 et seq. in restricting the use of district water during threatened or existing water shortages.

3. It is therefore the intent of the district to establish by this section those procedures required to maximize the beneficial use of its available water resources to the extent to which they are capable, and that the wasteful and unreasonable uses of water be prevented and the conservation of such water is to be extended with a view to the reasonable and beneficial use thereof in the interests of the people of the community of Hesperia and for the public welfare.

B. Implementation and Termination. The general manager or his designee shall monitor the water supply and demand daily to determine the level of conservation required by the water shortage emergency or to recommend implementation of the water conservation plan stages and shall notify the board of the necessity for the implementation or termination of each stage. Each declaration of the board implementing or terminating a water conservation stage shall be published at least once in a newspaper of general circulation and shall remain in effect until the board otherwise declares, as provided herein.

C. Water Shortage Plan.

1. Customer Use Baseline Water Use. Each customer’s baseline water use shall be calculated based upon unconstrained water use pursuant to a method as determined by the district. Unconstrained water use shall mean water use during a period or averaged across multiple periods absent any implementation of the water conservation stages in excess of Stage 1 identified in this chapter.

2. Public Notice and Public Hearing. In the event of a threatened or actual water supply shortage in excess of Stage 1 which will affect the district's ability to provide water for

Exhibit A
ordinary domestic, industrial, and commercial uses, the board shall hold a noticed public hearing after giving at least ten days’ notice by publication in a newspaper of general circulation at which district’s customers shall have the opportunity to testify concerning the pending water supply shortage and for the district to determine required conservation measures.

3. In addition to any other remedies available, the district may implement any one or more of the following actions to reduce water demands based on the characterization and severity of water shortage conditions, such as the percentage of reduction required, disasters, water emergency, or state policy directives:
a. Levy water use restrictions and prohibitions.
b. Perform water use audits.
c. Identify customers with high per capita water usage to achieve proportionally greater reduction than those with low use.
d. Enact water rationing with water use allocation limits.

D. Stages of Water Conservation
Current water shortage condition response measures will be updated based on board approvals and direction, state policy directives, emergency conditions, or to improve customer response.

1. Stage 1 – Water Alert: Savings up to 10%. Stage 1 shall be normal operating conditions in effect when the district is able to meet all the water demands of its customers in the immediate future. The district continuously operates under mandatory conservation.

Unreasonable use and waste of water is prohibited, and water conservation measures are mandatory. All water users must continue to use water reasonably, to prevent the unreasonable use or waste of water, and to reduce water consumption to that necessary for ordinary domestic and commercial purposes.
a. The following conservations measure shall be in effect at all times:
i. Exterior landscape plans for all new multi-family; commercial and industrial development shall provide for timed irrigation systems that provide options to irrigate landscapes after 8 p.m. but before 6 a.m. and shall require the use of drought resistant varieties of plants, shrubs, and turf. ii. No customer of the district or other person acting on behalf of or under the direction of a customer shall cause or permit the use of water for irrigation of landscaping or other outdoor vegetation plantings, lawns, or other growth to exceed the amount required to provide reasonable irrigation of the same and shall not cause or permit any unreasonable or excessive waste of water from said irrigation activities or from watering devices or systems. Landscape watering shall be confined to a user's property and shall not runoff onto adjacent properties, roadsides, or gutters. Free flow of water away from an irrigated site shall be presumptively considered excessive irrigation and waste.

Exhibit A

iii. Persons receiving water from the district who are engaged in agricultural practices, whether for the purpose of crop production or growing of commercial ornamental plants, shall provide, maintain, and use irrigation equipment and practices which are consistent with efficiency standards of irrigators in arid environments. The general manager or his designee may require the owner or operators of these systems to prepare a plan describing their irrigation practices and equipment, including but not limited to, an estimate of the efficiency of the use of water on their properties.

iv. Commercial and industrial facilities shall, upon request of the general manager or his designee, provide the district with its plan to ensure conservation of water at its facilities. The district will provide these facilities with information regarding the average monthly water use by the facility for the last two-year period. The facility will be expected to provide the district with a plan to conserve or reduce the amount of water used by that percentage deemed to be necessary under the circumstances. After review and approval by the general manager or his designee, the water conservation plan shall be considered subject to inspection and enforcement by the district.

v. Unauthorized use of hydrants is prohibited. Authorization for use must be obtained from the district.
b. The district manager or his designee may also implement one or more of the following conservation instruments during this or any subsequent stage of water conservation:

i. Establish customer use baselines.

ii. Conduct a public information campaign that may consist of distribution of literature, speaking engagements, website updates, bill inserts, conservation messages printed in local newspapers, educational programs in area schools and/or other methods of disseminating information.

iii. Implement programs to assist customers in reducing water use.

iv. Evaluate operations and make operational changes.

2. Stage 2. Moderate Water Shortage: Savings up to 20%. Augmentation of water supply conditions requiring reduction in water use. All aspects of Stage 1, including conservation measures implemented, shall remain in effect. A reduction of water use by up to an additional 10% is anticipated. Water consumption reduction methods from Stage 1 may be intensified as needed. Additional voluntary conservation measures are encouraged.
a. The following additional mandatory consumption reduction methods shall may be in effect:

Exhibit A
i. Parks, golf courses (municipal and private) and school grounds which use water provided by the district shall be irrigated between the hours of 10 p.m. and 5 a.m., or such other times as may be determined appropriate by the district.

Additionally, turf areas in excess of one thousand (1,000) square feet will be required to use soil moisture sensors and rain shut-off valves as part of their irrigation system.
ii. Commercial, industrial, institutional equipment that uses water must be properly maintained and in full working order to eliminate unreasonable or wasteful uses of water.
iii. The washing of cars, trucks or other vehicles is not permitted, except with a hose equipped with an automatic shut-off device, or at a commercial facility designed and so designated on the district's billing records.
iv. All residential, public, and recreational swimming pools shall use evaporation resistant covers and shall recirculate water. Any swimming pool which does not have a cover installed during periods of nonuse shall be considered an unreasonable and wasteful use of water.
v. Utilize sweeping or other methods to clean impervious surfaces such as driveways, sidewalks, and parking lot. The use of water to clean impervious surfaces is prohibited unless for public health and safety purposes. b. Customers are encouraged to practice the following consumption reduction measures:
i. Fix leaks or faulty sprinklers promptly.
ii. Decorative water features (water fountains, etc.) should recirculate water and be leak proof.
iii. Irrigate landscapes between the hours of 10 p.m. and 5 a.m. to reduce evaporation.
iv. Landscape watering should not occur during rain events. v. Equip all hoses with a shut-off nozzle while using water for any purpose. vi. Wash only full loads when washing dishes or clothes. vii. Restaurants - serve water to patrons upon request. viii. Hotels and motels – encourage guests to conserve water and limit hotel laundering of linens and towels.

Exhibit A

3. Stage 3. Severe Water Shortage: Savings up to 30%. Increase of water supply conservation actions that require a reduction in water use. A reduction of water use by up to an additional 10% is anticipated. All conservation measures implemented in Stage 1 and 2 shall remain in effect. Water consumption reduction methods from Stage 1 and 2 may be intensified as needed and customer usage may be assessed against established baseline.

a. One or more of the following additional mandatory restrictions shall be in effect as determined by the district:

i. The district may determine that the irrigation of exterior vegetation shall be conducted only during specified hours and days such as restricting irrigation to the hours between 10 p.m. and 5 a.m. limited to 3 days per week and may impose other restrictions on the use of water for such irrigation. The irrigation of exterior vegetation at other than the times and days specified by the district at the time of implementation shall be considered a waste of water. Outdoor plant containers, trees, shrubs, and vegetable gardens may be watered additional days using only drip irrigation or hand watering. The district may determine that this shall conform to the restrictions for other outdoor irrigation.

ii. Restrictions may be implemented for domestic water provided by the district used for construction meters limiting use to only during specified hours.

iii. Washing down impervious surfaces such as driveways, sidewalks, and parking lot areas is prohibited unless for extraordinary public health and safety purposes.

Any water used on a premises that is allowed to escape the premises and run-off into gutters or storm drains shall be considered a waste of water.

iv. Leaks or faulty sprinklers shall be repaired within 7 days, or as directed by the district.

v. Restaurants shall serve water to patrons only upon request.

vi. Hotels and motels shall have messaging in all guest rooms encouraging water conservation and limiting hotel laundering of linens and towels. b. The following consumption reduction measures shall also apply:

i. Non-essential potable water uses are strongly discouraged.

ii. Customers are encouraged to continue implementing voluntary measures from prior stages, which are not mandatory under this stage.

iii. There are no restrictions on landscape watering with non-potable water.

4. Stage 4. Critical Water Shortage: Savings up to 40%. Increase of water supply conservation actions that require a reduction in water use. A reduction of water use by up to an additional 10% is anticipated. All conservation measures implemented in Stage

Exhibit A
1-3 shall remain in effect. Water consumption reduction methods from Stage 1-3 may be intensified as needed and customer usage may be assessed against established baseline.
a. One or more of the following additional mandatory restrictions shall be in effect as determined by the district:
i. Outdoor irrigation of exterior vegetation shall be conducted only during specified hours and days and district may impose other restrictions on the use of water for such irrigation. The irrigation of exterior vegetation at other than these times and days shall be considered a waste of water. Outdoor plant containers, trees, shrubs, and vegetable gardens may be watered additional days using only drip irrigation or hand watering. The district may determine that this shall conform to the restrictions for other outdoor irrigation. During Warm/Dry Season: Turf shall be limited to hours and/or days determined by district when using potable water for irrigation. During Cool/Wet Season: Turf shall not be watered unless utilizing non-potable water during extended dry spells.
ii. Customer water usage in excess of baseline will be monitored and recorded. iii. Conservation activities will be intensified, and production monitored daily for compliance with necessary reductions from customer baseline. iv. Water allocations and mandatory conservation may be implemented. Water usage in excess of allocation derived from water use baseline may be considered a waste of water.
v. Leaks or faulty sprinklers shall be repaired within 3 days or as directed by the district.
vi. Decorative water features that use potable water must be drained and kept dry. vii. Washing of vehicles is prohibited, except when using commercial carwash establishments that use reclaimed water, recirculate water, or use high pressure/low volume wash systems.
viii. A construction water use plan shall be submitted to the district that addresses how impacts to existing water users will be mitigated (such as dust control). ix. With the exception of landscapes watered with non-potable water, installation of new turf or hydroseed is prohibited.

5. Stage 5. Water Shortage Crisis: Savings up to 50%. Increase of water supply conservation actions that require a reduction in water use. Source of supply for the water system is severely curtailed to the level that requires each customer to restrict their water use. All conservation measures implemented in Stage 1-4 shall remain in effect. Water consumption reduction methods from Stage 1-4 may be intensified as

Exhibit A
needed. Production may be monitored daily for compliance with necessary reductions from customer baseline.
a. Consumption reduction methods shall be intensified as needed and one or more of the following mandatory restrictions shall be in effect:
i. District may impose further restrictions on outdoor irrigation of exterior vegetation, including complete cessation in irrigation on properties. ii. Repair leaks or faulty sprinklers within 1 day.
iii. Existing pools shall not be emptied and refilled using potable water unless required for public health and safety purposes.
iv. Water use for new landscape installations or renovations is not authorized. v. Previous waivers will be revoked.
vi. Water use may be restricted to human health and safety purposes. vii. Customer rationing may be implemented as compared to a water use baseline determined by the district.
viii. Shortage condition measures shall be updated as needed. ix. Catastrophic event actions may be deemed necessary (such as a boil water order and/or other actions).

6. Stage 6. Emergency Water Shortage: Savings greater than 50% requiring reduction in water use. Source of supply for the water system is severely curtailed to the level that requires each customer to restrict their water use for only human health and safety purposes.

In the event of an unforeseeable disaster or water emergency such as an earthquake or other major disruption in the water supply or any emergency that prevents the district from meeting the water demands of the community, the general manager is authorized to implement the emergency provisions of this chapter as provided herein. Public notice will follow enactment of said provision by publishing notice of said action in a newspaper of general circulation.

All measures implemented in Stages 1-5 shall remain in effect. Water consumption reduction methods from Stage 1-5 may be intensified as needed. Production may be monitored continually for compliance with necessary reductions from customer baseline. a. Consumption reduction methods shall be intensified as needed and the following mandatory restrictions shall be in effect:
i. Watering of parks, school grounds and golf courses is prohibited.

Exhibit A
ii. Turf watering and landscape irrigation is prohibited. iii. Washing down of driveways, parking lots or other impervious surfaces is prohibited.
iv. Filling or adding water to swimming pools, wading pools, spas, ornamental ponds, fountains, and artificial lakes is prohibited.
v. New construction meter permits shall not be issued by the district. vi. All existing construction meters shall be removed and/or locked. vii. Commercial nurseries shall discontinue all watering and irrigation. viii. Watering of domesticated animals and livestock is permitted as necessary. ix. Implement applicable actions for catastrophic events (such as a boil water order or other actions).

E. Exceptions to Water Shortage Stage Implementation.

1. Application for Exception Permit. The general manager may grant exception permits for uses of water otherwise prohibited under the provisions of this chapter if it is found and determined that special circumstances make compliance impossible, or that restrictions herein would cause an emergency condition affecting the health, sanitation, fire protection or safety of the water use or of the public.

2. Written Application. Such exceptions may be granted only upon written application for a permit addressed to the district’s general manager. Upon granting such exception permit, the general manager may impose any conditions determined to be just and proper.

3. Exception Denied. In the event the general manager denies an exception to a water shortage stage, the proponent of the exception may appeal the determination to the district’s board.

City of Hesperia

STAFF REPORT
DATE: January 18, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Melinda Sayre, Director of Government Services/City Clerk Erin Baum, Assistant City Clerk
SUBJECT: Third Public Hearing – Redistricting due to 2020 Census and Review of Draft Maps

RECOMMENDED ACTION
It is recommended that the City Council 1) Receive a presentation from National Demographics Corporation (NDC), the City’s redistricting consultant detailing the redistricting process and permissible criteria to be considered to create district boundaries ; 2) C onduct the third public hearing to receive public input on the redistricting process and composition of districts ; and 3) review and consider the three draft maps provided by National Demographics Corporation and any others that may have been submitted by the public for review.

BACKGROUND
Every ten years, local governments use new census data to Redistrict. Redistricting is the process of adjusting City Council voting districts so that each district has substantially the same number of voting-aged residents and reflect how local populations have changed. The legal deadline for the City to adopt new district maps is April 17, 2022. This meeting is the third of four public hearings required for the redistricting process to gain public input.

ISSUES/ANALYSIS
On June 6, 2017 the City Council approved Ordinance 2017-09 establishing a by-district election system including five (5) districts, each having one (1) City Council seat representative and each serving a four (4) year term with a rotating appointed mayo r. By -district elections were implemented in a staggered manner with the first by-district election held in 2018 for districts two (2), three (3) and four (4). In 2020, by-district elections were held for districts one (1) and five (5).

In July the City contracted National Demographic Corporation (NDC) to coordinate t he City’s redistricting process and required community outreach. Assembly Bill 849 , known as the “Fair and Inclusive Redistrict for Municipalities and Political Subdivisions (FAIR MAPS) Act i n 2019 requires cities to engage communities in the redistricting process by holding a minimum of four (4) public hearings and/or workshops. The purpose of this third public hearing is to gather public input and present the three (3) maps (attached) drafte d by the City’s consultant and any others that may have been submitted to the City.

On January 10, 2022, staff loaded interactive draft mapping tools to the City’s website for the public to utilize during the redistricting process. Paper map kits can als o be printed from the website or picked up from City Hall.